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HomeMy WebLinkAbout01-23-24 City Commission Agenda and Packet MaterialsA. Call to Order - 6:00 PM - Commission Room, City Hall, 121 North Rouse B. Pledge of Allegiance and a Moment of Silence C. Changes to the Agenda D. FYI E. Commission Disclosures F. Consent F.1 Accounts Payable Claims Review and Approval (Waters) F.2 Authorize the City Manager to sign a Notice of Award and contract documents, once received, to Stream Works, Inc. for the East Gallatin River Streambank Erosion Protection Project, CIP No. WW111(Nielsen) THE CITY COMMISSION OF BOZEMAN, MONTANA REGULAR MEETING AGENDA Tuesday, January 23, 2024 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 1 F.3 Authorize City Manager to Enter into Equipment Lease-Purchase Agreement with Caterpillar Financial Services for Two Road Graders and ApproveGovernmental Entity Resolution Authorizing Lease(Van Delinder) F.4 Authorize the City Manager to Sign the Building Code Enforcement Program Agreed Upon Procedures Engagement Letter for Fiscal Year 2022.(Hodnett) F.5 Authorize City Manager to Sign Professional Services Agreements for Facilities Contractors Term Contracts(Ziegler) F.6 Authorize the City Manager to Sign a Professional Services Agreement with Ayres Associates, Inc. for Digital Orthoimagery and LiDAR Acquisition project.(Jorgenson) F.7 Authorize the City Manager to sign Amendment No. 2 to Task Order No. 1 of the Professional Services Master Task Order Agreement with the firm of HDR Engineering, Inc. providing construction engineering services for the East Gallatin River Streambank Erosion Protection Project, CIP No. WW111(Nielsen) F.8 Resolution 5540 / Intent to Modify Special Improvement Lighting District 772 to include all phases of Blackwood Groves(Hodnett) F.9 Resolution 5554, Authorizing a Change Order Number One with Blanton Construction, LLC for the Aspen Street Bridge(DiTommaso) F.10 Resolution 5566 Authorizing Change Order No. 1 with Roset and Associates for the Sand Interceptor in the Equipment Storage Building – Solid Waste Building Remodel and Garage Addition Project(Handelin) F.11 Resolution 5571 Intent to Create a Special Improvement Lighting District 783 for Phases A & C of Sundance Minor Subdivision(Hodnett) F.12 Ordinance 2114 Final Adoption to Establish a 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) F.13 Ordinance 2120 Final 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) F.14 Ordinance 2135, Final Adoption to Establish an Initial Zoning Designation of REMU (Residential Emphasis Mixed-Use District) in Association with the Annexation of 86 Acres, the Project Eighty-6 Annexation, Application 22113( Rogers) G. Consent II: Items Acted Upon Without Prior Unanimous Approval G.1 Ordinance 2153, Final Adoption to Establish an Initial Zoning Designation of REMU (Residential Emphasis Mixed-Use District) in Association with the Annexation of 10.071 Acres, the 6730 Davis Lane Annexation, Application 22020( Rogers) H. Public Comment 2 I. Special Presentation I.1 Triannual Climate Plan Report (Meyer) J. Action Items J.1 Annual Comprehensive Financial Report (ACFR) for Fiscal Year 2023 and Audit Results(Hodnett / Hathcock (EB)) J.2 Annexation Application 23127 Requesting Annexation of Approximately 40.12 Acres and Adjacent Right of Way for Hidden Valley Road and Amendment to the City Zoning Map for the Establishment of a Zoning Designation of R-4 (Residential High Density District). Subject Site is Located East and South of Hidden Valley Road About One-Quarter Mile East of Harper Puckett Road, Application 23127.(Cramblet) K. Work Session K.1 Workshop – Gallatin Valley Water and Wastewater Regionalization Feasibility Study (Ross) L. Appointments L.1 Appointment to the Historic Preservation Advisory Board.(Newby) M. FYI / Discussion N. Adjournment This is the time to comment on any matter falling within the scope of the Bozeman City Commission. There will also be time in conjunction with each agenda item for public comment relating to that item but you may only speak once per topic. Please note, the City Commission cannot take action on any item which does not appear on the agenda. All persons addressing the City Commission shall speak in a civil and courteous manner and members of the audience shall be respectful of others. Please state your name and address in an audible tone of voice for the record and limit your comments to three minutes. Written comments can be located in the Public Comment Repository. 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: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:January 23, 2024 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 January 17, 2024 , as there was no commission meeting on January 16, 2024. UNRESOLVED ISSUES:None ALTERNATIVES:The City Commission could decide not to approve these claims or a portion of the claims presented. This alternative is not recommended as it may result in unbudgeted late fees assessed against the City. FISCAL EFFECTS:The total amount of the claims to be paid is presented at the bottom of the Expenditure Approval List posted on the City’s website at https://www.bozeman.net/departments/finance/purchasing. Report compiled on: January 11, 2024 4 Memorandum REPORT TO:City Commission FROM:Griffin Nielsen, Water Resource Engineer Brian Heaston, Interim Director of Utilities SUBJECT:Authorize the City Manager to sign a Notice of Award and contract documents, once received, to Stream Works, Inc. for the East Gallatin River Streambank Erosion Protection Project, CIP No. WW111 MEETING DATE:January 23, 2024 AGENDA ITEM TYPE:Agreement - Vendor/Contract RECOMMENDATION:Authorize the City Manager to sign a Notice of Award and contract documents, once received, to Stream Works, Inc. for the East Gallatin River Streambank Erosion Protection Project, CIP No. WW111. STRATEGIC PLAN:4.3 Strategic Infrastructure Choices: Prioritize long-term investment and maintenance for existing and new infrastructure. BACKGROUND:During the spring runoff of 2018, an avulsion event occurred along the East Gallatin River impacting a reach adjacent the City’s Water Reclamation Facility (WRF), specifically cutting off the channel receiving the facility’s outfall. The City took immediate steps to reestablish the channel and armor the streambank at the primary point of failure. Since the completion, a secondary location on the channel, partially destabilized during the original event, has begun to quickly erode. The City has identified the need to stabilize the bank at this location to protect the City’s outfall channel, reduce sediment load to the East Gallatin River, as well as improve the safety for individuals walking or wading the river at the given location. With the assistance of HDR Inc. design and permitting for the project have been completed. City Engineering staff prepared a limited solicitation to obtain bids from three local contractors who have performed similar work. Of the solicited contractors two provided signed quotes. After review, Stream Works Inc. was found to be the lowest responsible quote and is recommended for award. Attached is the Notice of Award and Contract Documents which includes a copy of the solicitation notice. UNRESOLVED ISSUES:None ALTERNATIVES:As suggested by the Commission FISCAL EFFECTS:The contract amount totals $33,709.50. Funding is provided from the FY24 5 Wastewater Fund from the CIP No. WW111 project budget (Budget Code 620-5610-445.80.90), set at $150,000. With $53,026.00 obligated from the project fund, this contract will bring the total to $86,73.50, as such adequate funding exists. Attachments: NoticeOfAward_East Gallatin Bank Rest.pdf E Gallatin Bank 2 Solicitation Packet.pdf Report compiled on: January 11, 2024 6 NOTICE OF AWARD Dated: __________________ TO: Stream Works Inc. ADDRESS: 4256 Berkshire Rd, East Helena, MT 59635 PROJECT: East Gallatin River Bank 2 Restoration Project CONTRACT FOR: East Gallatin River Bank 2 Restoration Project You are notified that your quote received by January 4th, 2024, for the above Contract has been considered. You are the apparent Successful Bidder and have been awarded a Contract for the: East Gallatin River Bank 2 Restoration Project The Contract Price of your Contract is: Thirty-three Thousand Sever Hundred and Nine Dollars & 50/100 ($33,709.50). Four (4) copies of each of the proposed Contract Documents (except Drawings) accompany this Notice of Award. Two (2) sets of the Drawings will be delivered separately or otherwise made available to you immediately. You must comply with the following conditions precedent within fifteen (15) days of the date you receive this Notice of Award: 1. You must deliver to the OWNER Four (4) fully executed counterparts of the Agreement including all the Contract Documents and Drawings. 2. You must deliver with the executed Agreement the Contract Security (Bonds) as specified the Construction Agreement Section 27.i. 3. List other conditions precedent: You must deliver with the Certificates of Insurance as specified in the Construction Agreement Section 27.h. Failure to comply with these conditions within the time specified will entitle OWNER to consider your Bid abandoned, to annul this Notice of Award. Within ten (10) days after you comply with these conditions, OWNER will return to you two fully signed counterpart of the Agreement with the Contract Documents attached. CITY OF BOZEMAN, MONTANA ATTEST: BY: __________________________________ BY: ____________________________ (CITY MANAGER) (CITY CLERK) DATE: _______________________________ 7 MEMORANDUM --------------------------------------------------------------------------------------------------------------------- TO: Stream Works Inc. 4256 Berkshire Rd East Helena, MT 59635 FROM: Griffin Nielsen, Water Resource Engineer CC: Dan March, PE, HDR Inc. RE: City of Bozeman East Gallatin River Bank 2 Restoration Project -Request for Quotes DATE: December 12, 2023 --------------------------------------------------------------------------------------------------------------------- Introduction: Since the spring runoff of 2018 following an avulsion event that occurred on the East Gallatin River impacting a section of bank adjacent the City’s Water Reclamation Facility (WRF) partially destabilized and has progressively been eroding. The City has identified the need to stabilize the bank at this location to protect the City’s outfall channel, reduce sediment load to the East Gallatin River, as well as improve the safety of individuals walking or wading the river at the given location. The City is requesting quotes from qualified contractors to complete the City’s East Gallatin River Bank 2 Restoration Project. Project Location and Details: This project is located on the left bank of the East Gallatin River approximately 350 ft downstream from the Springhill Road crossing. The site access and staging area are located at a the City’s Water Reclamation Facility property fishing access. Please see the attached plan set (Attachment B) for future details on the project location. The project will stabilize ~80’ of eroding East Gallatin River bank. Stabilization will be accomplished through laying the near vertical bank back and use of a buried woody material and cobble overlain by fabric-encapsulated soil wraps and willow cuttings in accordance with the plans and approved permits. The woody material in the embankment is a mechanism to resists lateral erosion. The biodegradable fabric will supply short-term erosion protection for the upper bank with vegetation supplying long-term protection. Schedule and Cost: The City would like to complete the work as soon as possible but must have the work completed prior to April 1th , 2024 before the start of peak runoff for the East Gallatin River. Please provide a cost quote for completing the stabilization work. The work will be completed on a per item basis, detailed below, and contracted through the City of Bozeman using the attached construction Contract. Please complete and sign the quote and attached 8 Nondiscrimination Form (Attachment A) and send to Dan March, PE, CFM. Of HDR electronically at daniel.march@hdrinc.com by January 4th, 2023. Questions regarding the work can be directed to Dan March @ daniel.march@hdrinc.com or by phone at (406) 417-6103. City of Bozeman East Gallatin Bank 2 Restoration Construction Cost Quote Item No. Item Description Units Quantity Unit Cost Cost 1 Mobilization, Bonds, and Insurance Lump Sum 1 2 Site Preparation / Clearing & Grubbing Lump Sum 1 3 Channel Streambed Material Cubic Yard 62 4 Category 2 & 3 Wood Lump Sum 1 5 Fabric Encapsulated Soil Wraps Linear Feet 80 6 Reseeding / Revegetation Lump Sum 1 7 Willow Cutting Lump Sum 1 8 Excavation of Channel Bank Cubic Yard 437 9 Miscellaneous Work Each 3000 $1.00 $3000 Total Cost $____________ * The item Miscellaneous Work has been provided in the proposal for any work and/or materials which may be encountered during construction, but which is not addressed elsewhere in the contract. Payment for Miscellaneous Work, measured as provided above, will be at agreed-upon prices or on force account basis. The number of units in dollars set down in the contract is an estimated amount only, which may be adjusted up or down by the Engineer in accordance with the needs of the project. Print Name: ________________________ Title: ________________________ Signature: __________________________ Date: _______________________ Enclosed: Attachment A: Nondiscrimination and Equal Pay Affirmation Form Attachment B: City of Bozeman East Gallatin River Bank 2 Restoration Plan Set Attachment C: City of Bozeman East Gallatin River Bank 2 Restoration Construction Contract 9 Attachment A NONDISCRIMINATION AND EQUAL PAY AFFIRMATION ____________________________________(name of entity submitting) hereby affirms it will not discriminate on the basis of race, color, religion, creed, sex, age, marital status, national origin, or because of actual or perceived sexual orientation, gender identity or disability and acknowledges and understands the eventual contract will contain a provision prohibiting discrimination as described above and this prohibition on discrimination shall apply to the hiring and treatments or proposer’s employees and to all subcontracts. In addition, ____________________________________(name of entity submitting) hereby affirms it will abide by the Equal Pay Act of 1963 and Section 39-3-104, MCA (the Montana Equal Pay Act), and has visited the State of Montana Equal Pay for Equal Work “best practices” website, https://equalpay.mt.gov/BestPractices/Employers, or equivalent “best practices publication and has read the material. ______________________________________ Name and title of person authorized to sign on behalf of submitter 10 ATTACHMENT B: CITY OF BOZEMAN OF BOZEMAN EAST GALLATIN RIVER BANK 2 RESTORATION PLAN SET 11 COLUMBIA FALLSKALISPELL WHITEFISH POLSON MISSOULA LOLO HAMILTON BOZEMAN HELENA BUTTE GREAT FALLS DEER LODGE MILES CITY GLENDIVE BILLINGS HAVRE HARDIN LEWISTOWN PROJECT LOCATION C o n t r a c t D r a w i n g s F o r: 100% DESIGN DOCUMENTS PROJECT LOCATION BANK STABILIZATION TREATMENT AREA CITY OF BOZEMAN WRF EAST GALLATIN RIVER I N D E X O F D R A W I N G S GENERAL COVER SHEET AND SHEET INDEX 00G-001 - GENERAL NOTES & CIVIL LEGEND SURVEY 00V-101 - SURVEY CONTROL PLAN CIVIL 00C-101 - SITE LAYOUT 00C-102 - CROSS-SECTIONS 00C-103 - TYPICAL DETAILS (1 OF 2) 00C-104 - TYPICAL DETAILS (2 OF 2) City of Bozeman, Montana SPRINGHILL ROADCity of Bozeman Project No. 10341591 Gallatin County, Montana December 2023 East Gallatin River Bank 2 Restoration 12 GENERAL NOTES & CIVIL LEGEND 00G-001.dwg NONE 00G-001 GENERAL NOTES: 1.EXISTING TOPOGRAPHIC AND SURVEY INFORMATION SHOWN ON PLANS ARE BASED ON SURVEY PERFORMED BY PIONEER TECHNICAL FOR THE EAST GALLATIN RIVER STREAM AVULSION RESTORATION IN 2019. 2.CONTRACTOR IS TO MAINTAIN SURVEY STATIONS AND CONTROL LOCATIONS. 3.THE CONTRACTOR SHALL APPLY FOR AND OBTAIN ALL PERMITS NECESSARY FROM APPLICABLE AGENCIES IN ORDER TO PERFORM WORK. 4.IT IS THE RESPONSIBILITY OF THE CONTRACTOR TO LOCATE ALL UTILITIES AND PROTECT THEM FROM DAMAGE. THE LOCATION OF ANY AERIAL OR UNDERGROUND UTILITIES SHOWN ARE APPROXIMATE AND SOME ITEMS MAY NOT BE INDICATED IN THE PLANS. UNDERGROUND UTILITIES, WHETHER INDICATED OR NOT, SHALL BE LOCATED AND FLAGGED BY THE UTILITIES AT THE REQUEST OF THE CONTRACTOR. THE CONTRACTOR MUST CALL 811 OR 1-800-424-5555 AT LEAST TWO (2) BUSINESS DAYS PRIOR TO DIGGING. ONLY UPON IDENTIFICATION AND LOCATION OF ALL UTILITIES SHALL THE CONTRACTOR BEGIN EXCAVATION IN THE AREA, THEN ONLY WITH EXTREME CAUTION TO AVOID ANY POSSIBILITY OF DAMAGE TO THE UTILITY FACILITY. THE CONTRACTOR SHALL BEAR THE TOTAL EXPENSE OF THE REPAIR OR REPLACEMENT OF SAID UTILITIES DAMAGED BY OPERATION IN CONNECTION WITH PROSECUTION OF THE WORK. THE CONTRACTOR SHALL COORDINATE CONSTRUCTION EFFORTS WITH CITY OF BOZEMAN AND ALL OTHER LOCAL UTILITY COMPANIES PERTINENT TO PROSECUTION OF WORK. 5.THE CONTRACTOR SHALL HAVE ONE (1) SIGNED COPY OF THE APPROVED PLANS AND A COPY OF ANY PERMITS AND EXTENSION AGREEMENTS NEEDED FOR THE JOB, ON-SITE AT ALL TIMES. 6.THE CONTRACTOR IS RESPONSIBLE FOR THE SAFETY OF ALL PERSONNEL, ALL SITE VISITORS, AND THE GENERAL PUBLIC WHO MAY BE AFFECTED BY THE CONSTRUCTION. THIS INCLUDES BUT IS NOT LIMITED TO GENERAL AND CHANNEL EXCAVATION, SHORING, TRAFFIC CONTROL, AND SECURITY. 7.IF DURING THE CONSTRUCTION PROCESS, CONDITIONS ARE ENCOUNTERED WHICH COULD INDICATE A SITUATION THAT IS NOT IDENTIFIED IN THE PLANS OR SPECIFICATIONS, THE CONTRACTOR SHALL CONTACT THE ENGINEER IMMEDIATELY. 8.THE CONTRACTOR IS RESPONSIBLE FOR PROVIDING ALL LABOR AND MATERIALS NECESSARY FOR THE COMPLETION OF THE INTENDED IMPROVEMENTS SHOWN ON THESE DRAWINGS, OR DESIGNATED TO BE PROVIDED, INSTALLED, OR CONSTRUCTED, UNLESS SPECIFICALLY NOTED OTHERWISE. 9.THE CONTRACTOR SHALL BE RESPONSIBLE FOR RECORDING AS-BUILT INFORMATION ON A SET OF RECORD DRAWINGS KEPT ON THE CONSTRUCTION SITE AND AVAILABLE TO THE ENGINEER AT ALL TIMES. 10.DIMENSIONS FOR LAYOUT AND CONSTRUCTION ARE NOT TO BE SCALED FROM ANY DRAWING. IF PERTINENT DIMENSIONS ARE NOT SHOWN, CONTACT THE CONSULTANT ENGINEER FOR CLARIFICATION AND ANNOTATE THE DIMENSION ON THE AS-BUILT RECORD DRAWINGS. 11.THROUGHOUT INSTALLATION OF THE CHANNEL STREAMBED MATERIAL, THE CONTRACTOR SHALL MIX SALVAGED ROCK FROM THE BANK AND TOPSOIL INTO VOIDS OF CHANNEL STREAMBED MATERIAL. MIXING IS TO BE CONFIRMED ENGINEER IN THE FIELD. 12.RIPRAP AND WILLOW CUTTINGS SHOULD BE INSTALLED AT LOWEST FLOW POSSIBLE WHILE WILLOWS ARE DORMANT DURING FALL AND WINTER SEASON. 13.THE CONTRACTOR SHALL BE RESPONSIBLE FOR SAVING AND PROTECTING ALL EXISTING TREES AND VEGETATION WHERE REMOVAL FOR CONSTRUCTION IS NOT MANDATORY. ALL TREES TO BE REMOVED OR RELOCATED WILL BE MARKED BY THE CONTRACTOR AND APPROVED BY THE OWNER AND CONSULTANT ENGINEER PRIOR TO REMOVAL. 14.IF WOUNDING OF SAVED TREES OCCUR, A NON-TOXIC WOUND DRESSING MUST BE APPLIED IMMEDIATELY. EXCAVATORS MUST HAVE A NON-TOXIC TREE WOUND DRESSING WITH THEM ON CONSTRUCTION SITES. 15.ALL REMOVED ITEMS SHALL BECOME THE CONTRACTOR'S PROPERTY TO BE DISPOSED OF IN AN APPROVED MANNER IN ACCORDANCE WITH REGULATION BY THE OWNER AT NO ADDITIONAL EXPENSE TO THE OWNERS, UNLESS SPECIFIED WITHIN THE PLANS. NO CONCRETE, RUBBLE, OR EXTRA MATERIALS SHALL BE BACKFILLED ON SITE. 16.MATERIALS STORED ON THE SITE WHICH MIGHT CONTRIBUTE POLLUTANTS TO RUNOFF SHALL BE LOCATED IN AN ENCLOSED, COVERED, AND LOCKABLE CONTAINER. THESE MATERIALS ARE EXPECTED TO CONSIST MAINLY OF FERTILIZERS, FUELS, AND MACHINERY LUBRICANTS. 17.THE CONTRACTOR SHALL BE RESPONSIBLE FOR THE CLEANUP OF THE PROJECT SITE AND SURROUNDING AREAS ON A DAILY BASIS OF ANY TRASH OR MUD ON THE SITE OR ADJACENT STREETS AS A RESULT OF CONSTRUCTION. 18.THE CONTRACTOR SHALL RESTORE ALL STAGING AND STOCKPILING AREAS TO THEIR ORIGINAL CONDITION OR BETTER THAN EXISTING UPON COMPLETION OF THE PROJECT. THE COST TO RESTORE THESE AREAS SHALL NOT BE MEASURED AND PAID FOR SEPARATELY BUT SHALL BE INCLUDED IN THE COST OF THE WORK. 19.THE CONTRACTOR SHALL MAINTAIN ALL HAUL ROUTES AND RESTORE THEM TO THEIR ORIGINAL CONDITION OR BETTER THAN EXISTING UPON COMPLETION OF USE AT NO EXPENSE TO THE OWNER. 20.ALL PAVED HAUL ROUTES SHALL BE MAINTAINED FREE OF MUD AND DEBRIS RESULTING FROM CONSTRUCTION OPERATIONS. 21.THE CONTRACTOR SHALL NOT DEVIATE FROM THE PLANS WITHOUT FIRST OBTAINING WRITTEN APPROVAL FROM THE OWNER AND THE DESIGN ENGINEER. THE CONTRACTOR SHALL CONTACT THE DESIGN ENGINEER IMMEDIATELY UPON DISCOVERY OF ANY ERRORS OR INCONSISTENCIES. 22.STREAMBANK HAS BEEN DESIGNED BASED ON THALWEG POINTS FROM 2019 EAST GALLATIN RIVER STREAM AVULSION RESTORATION. NOTABLE EROSION AND BANK DEGRADATION HAS OCCURRED SINCE 2019. THALWEG POINTS HAVE BEEN SUPPLEMENTED BY MT DNRC 2018 GALLATIN RIVER TRIBUTARY LIDAR. GENERAL NOTES & SURVEY DATA B 2 ISSUE DESCRIPTION PROJECT MANAGER PROJECT NUMBER 0 1"2"FILENAME SCALE SHEET DATE C D A 1 3 4 5 6 7 8 CITY OF BOZEMAN EAST GALLATIN RIVER BANK 2 RESTORATION D. MARCH 10341591 DESIGNER 1 DESIGNER 2 DRAWN BY D. MARCH J. WRIGHT H. NOLD SURVEY CONTROL COORDINATE TABLE MONTANA STATE PLANE NAD 83 NAVD 88 POINT NO. NORTHING (U.S.S.F.) EASTING (U.S.S.F.) ELEVATION (U.S.S.F)DESCRIPTION CP-01 541457.6228 1568458.1240 4624.35 TOP OF LIFT HOOK ON NW EDGE OF MANHOLE BOX EXCAVATION LIMITS EARTH (SECTION) PLAN TITLE GENERAL SYMBOLOGYMATERIALS IN PLAN/SECTION SECTION CUT MARKER DETAIL MARKER FOR REFERENCING DETAILS BOUND IN SPECIFICATIONS OR SEPARATE VOLUME. DETAIL MARKER SHEET WHERE SECTION IS LOCATED SHEET WHERE SECTION VIEW IS FIRST CUT * SHEET WHERE DETAIL IS LOCATED * SECTION TITLE * EXCEPTIONS WHERE THE SHEET NUMBER IS REPLACED BY A DASH (-). 1)FOR COMMON DETAILS, SECTIONS, ELEVATIONS OR DETAILS THAT ARE CUT OR CALLED OUT ON MULTIPLE SHEETS. 2)SECTIONS, ELEVATIONS OR DETAILS THAT ARE LOCATED ON THE SAME SHEET THEY ARE CUT OR CALLED OUT ON. FOR REFERENCING DETAILS INCLUDED IN DRAWING SET. DETAIL TITLE PLAN 1/4" = 1'-0" X XXX SECTION LETTER FLAG INDICATES DIRECTION OF SECTION CUT X XXX SECTION 3/8" = 1'-0" SECTION LETTER # XXX DETAIL NUMBER XXXXXX X XXX DETAIL 1/4" = 1'-0" SHEET WHERE DETAIL IS LOCATED * DETAIL NUMBER FULL BUILDING SECTION CUT MARKER SHEET WHERE SECTION IS LOCATED SECTION LETTER X XXX X XXX ARROW INDICATES DIRECTION OF SECTION CUT ARROW INDICATES DIRECTION OF PLAN NORTH NORTH ARROW CENTERLINE LIMITS OF DISTURBANCE NEW CONTOUR (MAJOR)4615 NEW CONTOUR (MINOR)4614 RIPRAP (PLAN AND/OR SECTION) LIDAR METADATA CAN BE FOUND AT THE FOLLOWING WEB ADDRESS: https://mslservices.mt.gov/Geographic_Information/Data/DataList/datalist_MetadataDetail.aspx?did={354b7afe-64b2-4d63-aa79-e6f8e01787d0} NATIVE FILL 13 CP-01 SPRINGHILL ROADCITY OF BOZEMAN WRF BANK STABILIZATION TREATMENT AREA STOCKPIPE MATERIAL HERE SITE ACCESS AND STAGING AREA SURVEY CONTROL COORDINATE TABLE POINT NO. CP-01 NORTHING (U.S.S.F.) 541457.6228 EASTING (U.S.S.F.) 1568458.1240 ELEVATION (U.S.S.F.) 4624.35 MONTANA STATE PLANE NAD 83 NAVD 88 DESCRIPTION TOP OF LIFT HOOK ON NW EDGE OF MANHOLE BOX B 2 ISSUE DESCRIPTION PROJECT MANAGER PROJECT NUMBER 0 1"2"FILENAME SCALE SHEET DATE C D A 1 3 4 5 6 7 8 CITY OF BOZEMAN EAST GALLATIN RIVER BANK 2 RESTORATION D. MARCH 10341591 DESIGNER 1 DESIGNER 2 DRAWN BY D. MARCH J. WRIGHT H. NOLD SURVEY SURVEY CONTROL PLAN 00V-101 00V-101.dwg 1" = 20' 20200 40 SCALE IN FEET 14 BANK STABILIZATION TREATMENT ALIGNMENT ALONG EXISTING TOE OF RIVER BANK EXISTING ALDER TO REMAIN IN PLACE 4620 4616 4617 4618 4619 4621 4612 4614 4615 461646174618461 9 4613 3 2:110%2:1 EXISTING WILLOW TO REMAIN IN PLACE 15'15' A 00C-102 0+00 0+10 0+20 0+30 0+40 0+50 0+600+700+76APPROXIMATE EXCAVATION LIMITS EAST GALLATIN RIVER2 1 4 REMOVE LARGE ROCK ANGLING FLOW TOWARD THE BANK. REMOVAL OF ROCK IS TO BE DIRECTED BY ENGINEER IN THE FIELD. B 2 ISSUE DESCRIPTION PROJECT MANAGER PROJECT NUMBER 0 1"2"FILENAME SCALE SHEET DATE C D A 1 3 4 5 6 7 8 CITY OF BOZEMAN EAST GALLATIN RIVER BANK 2 RESTORATION D. MARCH 10341591 DESIGNER 1 DESIGNER 2 DRAWN BY D. MARCH J. WRIGHT H. NOLD CIVIL SITE LAYOUT 00C-101 00C-101.dwg 1" = 10' 10100 20 SCALE IN FEET KEY NOTES: 1.DOWNSTREAM TIE-IN NOT TO ENCROACH ON EXISTING LARGE VEGETATION. 2.ON UPSTREAM END, TIE-IN AS CLOSE AS POSSIBLE TO EXISTING WILLOW WITHOUT DISTURBING EXISTING WILLOW. 3.LOCATION IS APPROXIMATE. LOCATION AND TIE-IN LOCATIONS TO BE CONFIRMED BY ENGINEER IN THE FIELD. RESTORED BANK IS APPROXIMATELY 76' LONG AS OF MAY OF 2022. AERIAL IMAGERY IS REFERENCED FROM 6/2021. DESIGN WAS INFORMED BY SURVEY FROM 2019 EAST GALLATIN RIVER STREAM AVULSION RESTORATION & 2018 EAST GALLATIN LIDAR. 4.SALVAGE AGGREGATE AND RIPRAP EXCAVATED FROM CHANNEL 1 2 3 4 15 4600 4610 4620 4630 4600 4610 4620 4630 0 10 20 300-10 EXISTING GROUND TOE OF BANK 1 KEY NOTES: 1.ELEVATIONS SHOWN ARE APPROXIMATE. FINAL CONSTRUCTED ELEVATIONS ARE TO BE CONFIRMED WITH ENGINEER IN THE FIELD. 1 BIODEGRADABLE FABRIC NORTH AMERICAN GREEN C125BN OR APPROVED EQUAL VARIES 0.0'EL 4611.06.8' REL 4615.311.8' REL 4615.86.6' R EL 4614.3 2.0' L2:1 10% 2:1 BANK STABILIZATION SECTION VIEW SCALE: 1/8" = 1' A 00C-101 5' STAKE FABRIC FROM FABRIC ENCAPSULATED SOIL LIFT B 2 ISSUE DESCRIPTION PROJECT MANAGER PROJECT NUMBER 0 1"2"FILENAME SCALE SHEET DATE C D A 1 3 4 5 6 7 8 CITY OF BOZEMAN EAST GALLATIN RIVER BANK 2 RESTORATION D. MARCH 10341591 DESIGNER 1 DESIGNER 2 DRAWN BY D. MARCH J. WRIGHT H. NOLD CIVIL CROSS-SECTIONS 00C-102 00C-102.dwg AS SHOWN 16 MATERIAL SCHEDULE PER LINEAR FOOT ITEM DIAMETER QUANTITY TYPE 2 2 CATEGORY 2 WOOD 6"-12"5-6 3 CATEGORY 3 WOOD 3"-6"2-4 4 WILLOW CUTTINGS 0.5"-1.5"6 5 FABRIC ENCAPSULATED SOIL (FES) LIFT REFERENCE SHEET 00C-104 6 CHANNEL STREAMBED MATERIAL 7" MINUS 0.2 CY CHANNEL STREAMBED MATERIAL SIZE INCHES REPRESENTATIVE SIZE CLASSING 7 D100 6 D85 4 D50 1 D15 STEP 1 STEP 2 STEP 3 STEP 4 STEP 5 CHANNEL BED ELEVATION PLACE CATEGORY 2 WOOD AT BED ELEVATION AND BACKFILL WITH CHANNEL STREAMBED MATERIAL INSTALL WILLOWS AT TOP OF BANK LINE AND BACKFILL WITH NATIVE MATERIAL PLACE CATEGORY 3 WOOD, BACKFILL WITH CHANNEL STREAMBED MATERIAL AND PRESS WITH BUCKET PLACE WINDROW OF CHANNEL STREAMBED MATERIAL AND PRESS WITH BUCKET TO FORM A POINT AT THE TOP OF BANK LINE RECOMMENDED VEGETATED WOOD MATRIX INSTALLATION SEQUENCE SCALE: NTS 2 - NOTES: 1.WILLOW CUTTINGS TO BE HARVESTED FROM DORMANT, LIVE ON-SITE WILLOWS. WILLOW CUTTINGS TO BE PLACED WITHIN 72 HOURS OF CUTTING. MINIMUM LENGTH IS 8'. DIAMETER BETWEEN 0.5" AND 1.5" WITH SMOOTH BARK. TRIM ALL SIDE BRANCHES SO THE CUTTING IS A SINGLE STEM. HARVEST NO MORE THAN 1/3 OF ANY INDIVIDUAL PLANT. SELECT BRANCHES THAT WILL NOT IMPAIR THE SOURCE WILLOWS HEALTH. REMOVE APICAL BUD (BUD AT TIP OF BRANCH) AND SEVERAL INCHES OFF OF THE CUTTING. SUBMERGE WILLOW FOR A MINIMUM OF 24 HOURS PRIOR TO INSTALLATION. MINIMUM OF 1/2 OF WILLOW TO BE IN THE SOIL. INSTALL AT SUCH ANGLE THAT BUTT END OF WILLOW IS BELOW WATER SURFACE ELEVATION AT TIME OF CONSTRUCTION. INSTALL 6 WILLOW STEMS PER LINEAL FOOT. 2.FABRIC ENCAPSULATED SOIL (FES) TO USE NORTH AMERICAN GREEN C700BN OR APPROVED EQUAL. WHEN NECESSARY OVERLAP FABRIC FROM UPSTREAM TO DOWN STREAM. STAKE FABRIC PER SHEET MANUFACTURER'S RECOMMENDATIONS. 3.BANKFULL ELEVATIONS ARE TO BE CONFIRMED WITH ENGINEER IN THE FIELD. 4.PLACEMENT OF WOODY MATERIAL IS TO BE DIRECTED BY ENGINEER IN THE FIELD. CATEGORY 2 WOOD IS TO BE COUNTER STABILIZED BY OTHER CATEGORY 2 WOOD PIECES AND BE PLACED PERPENDICULAR TO CHANNEL FLOW. WOODY MATERIAL IS TO BE PLACED AT A VERTICAL ANGLE BETWEEN 0-30 DEGREES TO HORIZONTAL. CATEGORY 2 WOOD IS TO BE PLACED WITH WOOD ROOT CROWN IN THE BANK. CATEGORY 2 WOOD IS TO BE EMBEDDED IN THE BANK WITH A MINIMUM 4' OF LENGTH OF MATERIAL. CATEGORY 2 WOOD IS TO EXTEND NO MORE THAN 2' INTO THE CHANNEL.1'-0"CHANNEL STREAMBED NATIVE BACKFILL NATIVE MATERIAL BANKFULL WATER SURFACE BANK GRADING DETAIL SCALE: NTS 1 - CATEGORY 3 WOOD CATEGORY 2 WOOD CHANNEL STREAMBED FABRIC ENCAPSULATED SOIL (FES) LIFT EMBED CATAGORY 2 WOOD AT BANK TOE A MINIMUM OF 1' IN NATIVE CHANNEL MATERIAL WILLOW CUTTINGS 2 MIN 1 2 1 FINISHED GRADE B 2 ISSUE DESCRIPTION PROJECT MANAGER PROJECT NUMBER 0 1"2"FILENAME SCALE SHEET DATE C D A 1 3 4 5 6 7 8 CITY OF BOZEMAN EAST GALLATIN RIVER BANK 2 RESTORATION D. MARCH 10341591 DESIGNER 1 DESIGNER 2 DRAWN BY D. MARCH J. WRIGHT H. NOLD CIVIL TYPICAL DETAILS (1 OF 2) 00C-103 00C-103.dwg NONE 17 F. E. SECTION VIEW STREAM SIDE CONSTRUCTION FORM BANK SIDE D. C. B. A. WOVEN COIR FABRIC EMBEDMENT LENGTH MIN. 3 FT. 1.0 FT. MIN. NON-WOVEN COIR FABRIC EMBEDMENT LENGTH FIRST LIFT OF TOPSOIL MOISTEN FABRIC AND APPLY SEED. NATIVE FILLSUGGESTED CONSTRUCTION SEQUENCE FOR FABRIC ENCAPSULATED SOIL LIFT OUTER WOVEN COIR FABRIC (GEOTEXTILE) INNER NON-WOVEN COIR FABRIC (GEOTEXTILE) GENERAL NOTES FOR CONSTRUCTING FABRIC ENCAPSULATED SOIL LIFTS: 1. BANKS MAY BE CONSTRUCTED IN EITHER AN UPSTREAM OR DOWNSTREAM DIRECTION, AS LONG AS THE FABRIC IS OVERLAPPED IN THE PROPER DIRECTION. 2. PLACE A SERIES OF THREE OR MORE FORMS ON THE SUBGRADE SO THAT THE FORMS FOLLOW THE PROPOSED STREAM BANK ALIGNMENT (FIGURE A). BUTT THE ENDS OF THE FORMS TIGHTLY TOGETHER. 3. UNROLL THE OUTER WOVEN COIR FABRIC, PARALLEL TO THE CHANNEL AND POSITION IT SO THAT AT LEAST 3 FT. EXTENDS FOR EMBEDMENT ON THE BANK SIDE OF THE FORMS (FIG B). DRAPE THE REMAINDER OF THE FABRIC OVER THE TOP OF THE FORMS ON THE STREAM SIDE (FIG B). 4. UNROLL THE INNER NON-WOVEN COIR FABRIC, OVER THE TOP OF THE OUTER FABRIC AND POSITION IT SO THAT AT LEAST 1 FT. OF THE INNER FABRIC EXTENDS AS AN EMBEDMENT LENGTH ON THE BANK SIDE OF THE FORMS (FIG C). DRAPE THE REMAINDER OF THE FABRIC OVER THE TOP OF THE FORMS ON THE STREAM SIDE AND ALIGN THE LONG EDGES OF THE INNER AND OUTER FABRICS. STRETCH AND PULL THE FABRIC LAYERS TO REMOVE WRINKLES. 5. PLACE TOPSOIL OVER THE FABRIC ON THE BANK SIDE OF THE FORMS THEN COMPACT. MOISTEN FABRIC AND SPRINKLE SEED ON FABRIC IN AREA INDICATED IN FIGURE D. LEVEL THE TOPSOIL AND COMPACT (FIG E). 6. FOLD THE LOOSE ENDS OF THE TWO FABRIC LAYERS BACK OVER THE COMPACTED TOPSOIL MATERIAL AND STRETCH TIGHTLY TO REMOVE WRINKLES (FIG F). SECURE WITH WOODEN STAKES AT A SPACING OF 3 FT OR AS DEFINED BY MANUFACTURER. ****NOTE THAT THE TWO LAYERS OF GEOTEXTILE FABRICS SHOWN CAN BE REPLACED WITH A SINGLE GEOTEXTILE THAT COMBINES WOVEN AND NON-WOMEN PRODUCTS. CONTRACTOR SHALL GET APPROVAL OF ENGINEER PRIOR TO USE. UPSTREAM FABRIC LAYER UPSTREAM FABRIC LAYER LAPS OVER TOP SECTION A-A' SECTION B-B' DIRECTION O F F L O W FABRIC FOLD BOTH FABRIC LAYERS STAKE THROUGH 3 FT. MIN. BOTTOM FABRIC LAYER SECTION C-C' DIRECTION OF FLOW STAKE THROUGH 4 FT. MAX.OVERLAP LAPS UNERNEATHDOWNSTREAM FABRIC LAYER LAPS OVER TOP PLAN VIEW SHEET FABRIC AT ANGLE FOLDING OF CONTINUOUS CONSTRUCTION FORM A' AT TRANSITIONS B 3 DEGREES, EXCEPTMAXIMUM ANGLE A B' CONSTRUCTION FORM DIRECTION OF FLOW CONSTRUCTION FORM TO DOWNSTREAM DIRECTION.LAPPED IN AN UPSTREAM ALL FABRIC WILL BE STAKES ON 3 FT. CENTERS (TYPICAL) 18 IN. ISOMETRIC DIRECTION OF FLOW FABRIC JOINING DETAIL OVERLAP4 FT. MAX. 3 FT. MIN. PLAN VIEW DIRECTION OF FLOW FABRIC UPSTREAM BOTTOM FABRIC LAYERSTAKES THROUGH DOWNSTREAM C 3 FT. BOTH FABRIC LAYERSSTAKES THROUGH DOWNSTREAM FABRIC BYUPSTREAM FABRIC OVERLAPS 3-4 ft. C' 1. FORMS MAY BE ANGLED TO CREATE BENDS IN THE LIFTS AS NEEDED. FABRIC SHALL BE FOLDED AT EACH BEND AS SHOWN IN PLAN VIEW. NO BEND SHALL EXCEED A 3 DEGREE ANGLE, EXCEPT AT TRANSITIONS. FOLDS SHALL BE MADE IN AN UPSTREAM TO DOWNSTREAM DIRECTION. STAKE THE FOLDS AS SHOWN IN SECTION B-B'. 2. OUTER FABRIC ENDS SHALL BE JOINED BY LAPPING THE UPSTREAM PIECE OF FABRIC OVER THE DOWNSTREAM PIECE AS SHOWN IN PLAN VIEW. OVERLAPS SHALL BE A MINIMUM OF 3 FT. INNER FABRIC ENDS SHALL BE BUTTED TOGETHER, NOT OVERLAPPED. OVERLAPS SHALL BE STAGGERED FROM LIFT TO LIFT BY A MINIMUM OF 15 FT. 3. SECURE THE BANK SIDE EDGE OF THE OUTER FABRIC (WOVEN), WITH A WOODEN STAKE THROUGH THE FABRIC ON 3 FT. CENTERS (SEE PLAN VIEWS). NOTE: THE HOLES FOR STAKES SHALL NOT BE PRECUT. ALLOW THE STAKE TO BREAK THE MINIMUM NUMBER OF STRANDS AS IT IS BEING DRIVEN. DRIVE STAKES SO THAT A MAXIMUM OF 2 IN. IS LEFT EXPOSED. DOWNSTREAM FABRIC LAYER LAPS UNERNEATH FABRIC TOPSOIL GENERAL NOTES ON SECURING FABRIC FOR FES LIFT TREATMENT: SUBGRADE B 2 ISSUE DESCRIPTION PROJECT MANAGER PROJECT NUMBER 0 1"2"FILENAME SCALE SHEET DATE C D A 1 3 4 5 6 7 8 CITY OF BOZEMAN EAST GALLATIN RIVER BANK 2 RESTORATION D. MARCH 10341591 DESIGNER 1 DESIGNER 2 DRAWN BY D. MARCH J. WRIGHT H. NOLD FABRIC STAKING DETAILS SCALE: NTS A - SUGGESTED FES LIFT CONSTRUCTION SEQUENCE SCALE: NTS B - CIVIL TYPICAL DETAILS (2 OF 2) 00C-104 00C-104.dwg NONE 18 ATTACHMENT C: CITY OF BOZEMAN OF BOZEMAN EAST GALLATIN RIVER BANK 2 RESTORATION CONSTRUCTION CONTRACT 19 Page 1 of 19 CONTRACT AGREEMENT THIS AGREEMENT is made and entered into this _____ day of ____________, 202__ (“Effective Date”), by and between the CITY OF BOZEMAN, MONTANA, a self-governing municipal corporation organized and existing under its Charter and the laws of the State of Montana, 121 North Rouse Street, Bozeman, Montana, with a mailing address of PO Box 1230, Bozeman, MT 59771, hereinafter referred to as “City,” and, ____________, _______________, hereinafter referred to as “Contractor.” The City and Contractor may be referred to individually as “Party” and collectively as “Parties.” In consideration of the covenants, agreements, representations, and warranties contained herein, the parties agree as follows: 1. Work to be Performed: The work to be performed for the City of Bozeman East Gallatin River Bank 2 Restoration Project (the “Work”) is as shown on the City of Bozeman East Gallatin River Bank 2 Restoration Plans (Attachment A) which is incorporated herein by this reference. Unless otherwise identified in Attachment A, Contractor shall furnish all the labor, materials, equipment, tools, and services necessary to perform and complete the Work. 2. Contract Documents: The Contract Documents which comprise the entire agreement between the City and Contractor as attached to or referenced in this Agreement, are made a part hereof by this reference and consist of the following: a. This Agreement. b. Attachment A – City of Bozeman East Gallatin River Bank 2 Restoration Plans c. Attachment B – City of Bozeman East Gallatin River Bank 2 Restoration Stream Protection Act (SPA 124) Permit d. Attachment C – City of Bozeman East Gallatin River Bank 2 Restoration USACE 404 Permit (PENDING) e. Attachment D – City of Bozeman East Gallatin River Bank 2 Restoration Floodplain Permit (PENDING) f. Proof of Insurance and Performance and Payment Bonds. g. Montana Public Works Standard Specifications, __6th__ Edition (MPWSS), and as further amended by the City of Bozeman Modifications to MPWSS. 20 Page 2 of 19 h. Notice of Award i. Notice to Proceed. There are no Contract Documents other than those listed above in this Section 2. The Contract Documents may not be altered, amended or repealed except by a modification (as defined in the MPWSS, General Conditions). 3. Time of Performance: Contractor shall begin the Work after receiving a Notice to Proceed from City and shall complete the Work no later than 30 calendar days. Time is of the essence of completion of all work and each phase of the Work. 4. Payment: a. Upon satisfactory final completion and acceptance of the Work, City shall pay to Contractor, and Contractor shall accept as full payment for the performance of this Agreement and the Work, the amount of _________________ dollars ($_____________). b. If work not included within the Attachment A is requested by City, such additional work and the related compensation shall be agreed to in writing by both parties prior to commencement of the additional work (“Change Order”). c. Contractor shall submit applications for payment in accordance with the Montana Public Works Standard Specification, __6th_ Edition General Conditions. Applications for payment will be processed as provided in the General Conditions. d. The City shall retain five percent (5%) of the total amount of compensation (“Retainage Amount") to be paid to the Contractor to ensure compliance with the terms and conditions of this Agreement including providing the warranty bond and any deficient items identified by the City or the City’s representative. The Retainage Amount shall be paid to the Contractor within thirty (30) days aft the City’s final acceptable, including the items noted above, of the Work. e. Upon acceptance of final payment and for other good and valuable consideration, Contractor shall and hereby does release and forever discharge City, its officers, agents, and employees of and from any and all claims, demands, actions, causes of action, obligations, and liabilities of every kind and character whatsoever, in law and in equity, whether now known or in the future discovered, arising from or related to this Agreement or the Work that Contractor may have or assert against City, its officers, agents, and employees. f. Contractor warrants and guarantees to City that all Work will be in accordance with the Contract Documents and will not be defective. Prompt notice of all defects shall be 21 Page 3 of 19 given to Contractor. All defective Work, whether or not in place, may be rejected, corrected or accepted as provided in the MPWSS. 5. Inspection and Testing: a. City has the right to inspect and test any and all Work performed by Contractor. Contractor shall allow City and its agents access to the Work at all times and shall provide every reasonable facility for the purpose of such inspection and testing, including temporarily discontinuing portions of the Work or uncovering or taking down portions of the finished Work. Any inspection and testing performed by the City and its agents is for the sole benefit of the City and shall not relieve the Contractor of its duty, responsibility, and obligation to ensure that the Work strictly complies with the Agreement terms and conditions and all applicable laws and building and safety codes. City’s inspection and testing shall not be deemed or considered acceptance by the City of any portion of the Work. City’s inspection and testing shall not serve to nullify, amend, or waive any warranties provided by the Contractor under this Agreement. b. Contractor shall, without charge, replace any material or correct any Work found by the City or its agents to be defective or otherwise not in compliance with the terms and conditions of this Agreement. In the event Contractor fails to replace or correct any defective work or materials after reasonable written notice by the City to do so, the City may take such corrective action, either with its own materials and employees or by retaining any third party to do so, and deduct the cost and expense of such corrective action from the Contractor’s compensation. 6. Contractor’s Representations and Warranties: In order to induce the City to enter into this Agreement, Contractor represents and warrants as follows: a. Contractor has familiarized himself with the nature and extent of the Contract Documents, Work, the Work site, and with all local conditions and federal, state and local laws, ordinances, rules and regulations that in any manner may affect cost, progress or performance of the Work. b. Contractor has studied carefully all reports of investigations and tests of subsurface and latent physical conditions at the site or otherwise affecting cost, progress or performance of the Work. c. Contractor has made or caused to be made examinations, and investigations as he deems necessary for the performance of the Work at the contract price, within the contract time and in accordance with the other terms and conditions of the Contract Documents, 22 Page 4 of 19 and no additional examinations, investigations, tests, reports or similar data are or will be required by Contractor for such purposes. d. Contractor has correlated the results of all such observations, examinations, investigations, tests, reports and data with the terms and conditions of the Contract Documents. e. Contractor and its sureties are liable for the satisfaction and full performance of all warranties. 7. General Requirements: a. Contractor Use of Premises. The Contractor shall confine their operations at site of the proposed work to wholly on the City’s property and within one hundred feet of the Bank Stabilization Treatment Area and Site Access and Staging Area as shown in Attachment A. b. Safekeeping of Equipment and Materials on Work Site. It shall be understood that the responsibility for protection and safekeeping of equipment and materials on or near the site will be entirely that of Contractor and that no claim shall be made against the City by reason of any act of an employee or trespasser. It shall be further understood that should any occasion arise necessitating access by the City to the sites occupied by these stored materials and equipment, the Contractor owning or responsible for the stored materials or equipment shall immediately remove same. No materials or equipment may be placed upon any private property until the property owner has agreed in writing to the location contemplated by the Contractor to be used for storage. c. Debris; Restoration. While performing the Work, and as part of the final completion of the Work, Contractor shall clean up the Work site, including the removal and satisfactory disposal of all waste, garbage, excess materials, and equipment, and the performance of any other work necessary to restore the site to at least as good order and condition as at the commencement of the Work. Any disturbed landscaped, parking, or pavement areas shall be properly restored. d. Work Sequence. The Contractor shall schedule the work to minimize inconvenience to the City and to adjacent property owners and to minimize interruptions to utility service. This shall include minimizing obstruction to local traffic especially on dead end streets. Work shall be scheduled so as to minimize disruptions to local mail delivery. e. Safety. Safety provisions must be entirely adequate and meet with City, County, State and Federal regulations to protect the public on affected streets roads, and trails. 1) Barricades and Lights. Prior to the start of construction across roads or walks, all construction permits shall be obtained, utility companies notified, and 23 Page 5 of 19 traffic patterns, signing, location of flagmen, barricades and other safety measures arranged. Providing and maintaining safety barricades, and other work site safety measures shall be the responsibility of the Contractor and shall be included in the contract price. 2) All open trenches and other excavations shall be provided with suitable barriers, signs, and lights to the extent that adequate protection is provided to the public. Obstructions, such as material piles and equipment, shall be provided with similar warning signs and lights. 3) All necessary barricades, signs, lights and other protective devices shall be installed and maintained in conformity with applicable statutory requirements and, where within railroad and highway right-of-way, as required by the authority having jurisdiction thereover. 4) Work performed within property under the City’s jurisdiction shall have all barricades, signs, lights and protective devices installed and maintained. g. Permits. The Contractor shall conduct their work in accordance with the stipulations and terms of the permits contained in Attachments, B, C, and D, obtained by the City to complete the Work. All other permits required to complete the work must be obtained by the contractor prior to the commencement of the Work. i. The Contractor must obtain a City of Bozeman Construction Stormwater Permit from the City’s Stormwater Division. h. Working hours. All Work at the site shall be performed during regular working hours of 7:00 am and 5:00 pm, Monday through Friday, excluding City recognized holidays unless authorized in writing by the City. 8. Delays and Extensions of Time: If Contractor’s performance of this Agreement is prevented or delayed by any unforeseen cause beyond the control of the Contractor, including acts or omissions of the City, Contractor shall, within ten (10) days of the commencement of any such delay, give the City written notice thereof. Further, Contractor shall, within ten (10) days of the termination of such delay, give the City written notice of the total actual duration of the delay. If the City is provided with these required notices and if the City determines that the cause of the delay was not foreseeable, was beyond the control of the Contractor, and was not a result of the fault or negligence of the Contractor, then the City will determine the total duration of the delay and extend the time for performance of the Agreement accordingly. Unless the delay is caused by the intentional interference of the City with the Contractor’s performance, Contractor shall make no claim for damages or any other claim other than for an extension of time as herein provided by reason of any delays. 24 Page 6 of 19 9. Suspension: a. The City may, by written notice to the Contractor and at its convenience for any reason, suspend the performance of all or any portion of the work to be performed on the Work (“Notice of Suspension”). The Notice of Suspension shall set forth the time of suspension, if then known to the City. During the period of suspension, Contractor shall use its best efforts to minimize costs associated with the suspension. b. Upon Contractor’s receipt of any Notice of Suspension, unless the notice requires otherwise, Contractor shall: (1) immediately discontinue work on the date and to the extent specified in the Notice of Suspension; (2) place no further orders or subcontracts for materials, services, or equipment; (3) promptly make every reasonable effort to obtain suspension upon terms satisfactory to City of all orders, subcontracts, and rental agreements to the extent that they relate to the performance of the work suspended; and (4) continue to protect and maintain the Work, including those portions on which work has been suspended. c. As compensation for the suspended Work, Contractor will be reimbursed for the following costs, reasonably incurred, without duplication of any item, and to the extent that such costs directly resulted from the suspension: (1) all reasonably incurred costs for the demobilization of Contractor’s and subcontractor’s crews and equipment; (2) an equitable amount to reimburse Contractor for the cost to protect and maintain the Work during the period of suspension; and (3) an equitable adjustment in the cost of performing the remaining portion of the work post-suspension if, as a direct result of the suspension, the cost to Contractor of subsequently performing the remaining work on the Work has increased or decreased. d. Upon receipt of written notice by the City to resume the suspended work (“Notice to Resume Work”), Contractor shall immediately resume performance of the suspended work as to the extent required in the Notice to Resume Work. Any claim by Contractor for time or compensation described in Section 9(c) shall be made within fifteen (15) days after receipt of the Notice to Resume Work and Contractor shall submit a revised Work Schedule for the City’s review and approval. Contractor’s failure to timely make such a claim shall result in a waiver of the claim. e. No compensation described in Section 9(c) shall be paid and no extension of time to complete the Work shall be granted if the suspension results from Contractor’s non- compliance with or breach of the terms or requirements of this Agreement. 25 Page 7 of 19 10. Termination for Contractor’s Fault: a. If Contractor refuses or fails to timely do the work, or any part thereof, or fails to perform any of its obligations under this Agreement, or otherwise breaches any terms or conditions of this Agreement, the City may, by written notice, terminate this Agreement and the Contractor’s right to proceed with all or any part of the Work (“Termination Notice Due to Contractor’s Fault”). The City may then take over the Work and complete it, either with its own resources or by re-letting the contract to any other third party, and may immediately take possession of and use such materials, appliances, tools, and equipment as may be on the site and which may be necessary for the completion of the Work. b. In the event of a termination pursuant to this Section 10, Contractor shall be entitled to payment only for those services Contractor actually rendered. In the case of a lump sum or unit price contract, Contractor shall not be entitled to any further payment until the Work has been completed. Upon completion of the Work, if the unpaid balance of the Contractor’s compensation exceeds the cost to the City of completing the work, including all costs paid to any subcontractors or third parties retained by the City to complete the Work and all administrative costs resulting from the termination (“City’s Cost for Completion”), such excess shall be paid to the Contractor. If the City’s Cost for Completion exceeds the unpaid balance of the Contractor’s compensation, then Contractor and its sureties shall be liable for and shall pay the difference, plus interest at the rate applicable to court judgments, to the City. c. Any termination provided for by this Section 10 shall be in addition to any other remedies to which the City may be entitled under the law or at equity. d. In the event of termination under this Section 10, Contractor shall, under no circumstances, be entitled to claim or recover consequential, special, punitive, lost business opportunity, lost productivity, field office overhead, general conditions costs, or lost profits damages of any nature arising, or claimed to have arisen, as a result of the termination. 11. Termination for City’s Convenience: a. Should conditions arise which, in the sole opinion and discretion of the City, make it advisable to the City to cease work on the Work, the City may terminate this Agreement by written notice to Contractor (“Notice of Termination for City’s Convenience”). The termination shall be effective in the manner specified in the Notice of Termination for City’s Convenience and shall be without prejudice to any claims that the City may otherwise have against Contractor. b. Upon receipt of the Notice of Termination for City’s Convenience, unless otherwise directed in the Notice, the Contractor shall immediately cease work on the Work, discontinue placing orders for materials, supplies, and equipment for the Work, and make 26 Page 8 of 19 every reasonable effort to cancel all existing orders or contracts upon terms satisfactory to the City. Contractor shall do only such work as may be necessary to preserve, protect, and maintain work already completed, in progress, or in transit to the construction site. c. In the event of a termination pursuant to this Section 11, Contractor is entitled to payment only for those services Contractor actually rendered and materials actually purchased or which Contractor has made obligations to purchase on or before the receipt of the Notice of Termination for City’s Convenience, and reasonably incurred costs for demobilization of Contractor’s and any subcontractor’s crews. It is agreed that any materials that City is obligated to purchase from Contractor will remain the City’s sole property. d. The compensation described in Section 11(c) is the sole compensation due to Contractor for its performance of this Agreement. Contractor shall, under no circumstances, be entitled to claim or recover consequential, special, punitive, lost business opportunity, lost productivity, field office overhead, general conditions costs, or lost profits damages of any nature arising, or claimed to have arisen, as a result of the termination. 12. Limitation on Contractor’s Damages; Time for Asserting Claim: a. In the event of a claim for damages by Contractor under this Agreement, Contractor’s damages shall be limited to contract damages and Contractor hereby expressly waives any right to claim or recover consequential, special, punitive, lost business opportunity, lost productivity, field office overhead, general conditions costs, or lost profits damages of any nature or kind. b. In the event Contractor wants to assert a claim for damages of any kind or nature, Contractor shall provide City with written notice of its claim, the facts and circumstances surrounding and giving rise to the claim, and the total amount of damages sought by the claim, within ten (10) days of the facts and circumstances giving rise to the claim. In the event Contractor fails to provide such notice, Contractor shall waive all rights to assert such claim. 13. Representatives and Notices: a. City’s Representative: The City’s Representative for the purpose of this Agreement shall be Griffin Nielsen, PE or such other individual as City shall designate in writing. Whenever approval or authorization from or communication or submission to City is required by this Agreement, such communication or submission shall be directed to the City’s Representative and approvals or authorizations shall be issued only by such Representative; provided, however, that in exigent circumstances when City’s 27 Page 9 of 19 Representative is not available, Contractor may direct its communication or submission to other designated City personnel or agents and may receive approvals or authorization from such persons. b. Contractor’s Representative: The Contractor’s Representative for the purpose of this Agreement shall be ____________________ or such other individual as Contractor shall designate in writing. Whenever direction to or communication with Contractor is required by this Agreement, such direction or communication shall be directed to Contractor’s Representative; provided, however, that in exigent circumstances when Contractor’s Representative is not available, City may direct its direction or communication to other designated Contractor personnel or agents. c. Notices: All notices required by this Agreement shall be in writing and shall be provided to the Representatives named in this Section. Notices shall be deemed given when delivered, if delivered by courier to Party’s address shown above during normal business hours of the recipient; or when sent, if sent by email or fax (with a successful transmission report) to the email address or fax number provided by the Party’s Representative; or on the fifth business day following mailing, if mailed by ordinary mail to the address shown above, postage prepaid. 14. Locating Underground Facilities: Contractor shall be responsible for obtaining and determining the location of any underground facilities, including but not limited to, the location of any pipelines or utility supply, delivery, or service lines in accordance with the provisions of §69-4-501, et seq., Montana Code Annotated (MCA). Contractor shall make every effort to avoid damage to underground facilities and shall be solely responsible for any damage that may occur. If City personnel assume responsibility for locating any underground facilities, this fact shall be noted in writing prior to commencement of such location work. 15. Permits: Contractor shall provide all notices, comply with all applicable laws, ordinances, rules, and regulations, obtain all necessary permits, licenses, including a City of Bozeman business license, and inspections from applicable governmental authorities, pay all fees and charges in connection therewith, and perform all surveys and locations necessary for the timely completion of the Work. 16. Ownership of Documents; Indemnification: All plans, designs, drawings, specifications, documents, sample results and data, in whatever medium or format, originated or prepared by or for Contractor in contemplation of, or in the course of, or as a result of this Agreement or work on the Work, shall be promptly furnished to the City (“City Documents and Information”). All City Documents and Information shall be the exclusive property of the City and shall be deemed to be works-for-hire. Contractor hereby assigns all right, title, and interest in and to the City Documents and Information, including but not limited to, all copyright and patent rights in and to the City Documents and Information. Neither party grants to the other any express 28 Page 10 of 19 or implied licenses under any patents, copyrights, trademarks, or other intellectual property rights, except to the extent necessary to complete its obligations to the other under this Agreement. 17. Laws and Regulations: Contractor shall comply fully with all applicable state and federal laws, regulations, and municipal ordinances including, but not limited to, Montana Contractor Registration requirements, Montana Contractors Gross Receipts Tax (Title 15, Chapter 50, MCA), 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. 18. Nondiscrimination and Equal Pay: The Contractor agrees that all hiring by Contractor of persons performing this Agreement shall be on the basis of merit and qualifications. The Contractor will have a policy to provide equal employment opportunity in accordance with all applicable state and federal anti-discrimination laws, regulations, and contracts. The Contractor will not refuse employment to a person, bar a person from employment, or discriminate against a person in compensation or in a term, condition, or privilege of employment because of race, color, religion, creed, political ideas, sex, age, marital status, national origin, actual or perceived sexual orientation, gender identity, physical or mental disability, except when the reasonable demands of the position require an age, physical or mental disability, marital status or sex distinction. The Contractor shall be subject to and comply with Title VI of the Civil Rights Act of 1964; Section 140, Title 2, United States Code, and all regulations promulgated thereunder. Contractor represents it is, and for the term of this Agreement will be, in compliance with the requirements of the Equal Pay Act of 1963 and Section 39-3-104, MCA (the Montana Equal Pay Act). Contractor must report to the City any violations of the Montana Equal Pay Act that Contractor has been found guilty of within 60 days of such finding for violations occurring during the term of this Agreement. Contractor shall require these nondiscrimination terms of its subcontractors providing services under this Agreement. 19. Intoxicants; DOT Drug and Alcohol Regulations: Contractor shall not permit or suffer the introduction or use of any intoxicants, including alcohol or illegal drugs, upon the site of the Work. Contractor acknowledges it is aware of and shall comply with its responsibilities and obligations under the U.S. Department of Transportation (DOT) regulations governing anti-drug and alcohol misuse prevention plans and related testing. City shall have the right to request proof of such compliance and Contractor shall be obligated to furnish such proof. 29 Page 11 of 19 The Contractor shall be responsible for instructing and training the Contractor's employees and agents in proper and specified work methods and procedures. The Contractor shall provide continuous inspection and supervision of the work performed. The Contractor is responsible for instructing its employees and agents in safe work practices. 20. Labor Relations: a. In the event that, during the term of this Agreement and throughout the course of Contractor’s performance of the Work, any labor problems or disputes of any type arise or materialize which in turn cause any work on the Work to cease for any period of time, Contractor specifically agrees to take immediate steps, at its own expense and without expectation of reimbursement from City, to alleviate or resolve all such labor problems or disputes. The specific steps Contractor shall take to resume work on the Work shall be left to the discretion of Contractor; provided, however, that Contractor shall bear all costs of any related legal action. Contractor shall provide immediate relief to the City so as to permit the work on the Work to resume and be completed within the time frames set forth in the Construction Schedule at no additional cost to City. b. Contractor shall indemnify, defend, and hold the City harmless from any and all claims, demands, costs, expenses, damages, and liabilities arising out of, resulting from, or occurring in connection with any labor problems or disputes or any delays or stoppages of work associated with such problems or disputes. 21. Subcontractors: a. Contractor may employ subcontractors for any part of the Work. Contractor shall provide City with a list of all subcontractors employed. b. Contractor remains fully responsible for the acts and omissions of any subcontractor, just as Contractor is for its own acts and omissions, and Contractor shall remain fully responsible and liable for the timely completion of the Work. c. Contractor is solely liable for any and all payments to subcontractors. Contractor shall hold all payments received from the City in trust for the benefit of subcontractors, and all such payments shall be used to satisfy obligations of the Work before being used for any other purpose. Contractor shall make any payments due to any subcontractor within seven (7) days of Contractor’s receipt of payment, including a proportional part of the retainage Contractor has received from the City. In the event of a dispute regarding any subcontractor’s invoice, Contractor shall promptly pay the undisputed amount to the subcontractor and notify the subcontractor in writing of the amount in dispute and the reasons for the dispute. Any withholding of payment must comply with the requirements of §28-2-2103, MCA. In the event Contractor is unwilling or unable to make timely and 30 Page 12 of 19 proper payment to any subcontractor, City may elect to withhold any payment otherwise due to Contractor and upon seven (7) days’ written notice to Contractor, may pay subcontractor by direct or joint payment. 24. Indebtedness and Liens: Before City may make any final payment to Contractor, Contractor shall furnish City with satisfactory proof that there are no outstanding debts or liens in connection with the Work. If the Contractor allows any indebtedness to accrue to subcontractors or others during the progress of the work, and fails to pay or discharge the same within five (5) days after demand, then City may either withhold any money due to Contractor until such indebtedness is paid or apply the same towards the discharge of the indebtedness. If any lien or claim is filed or made by any subcontractor, material supplier, or any other person, the Contractor shall immediately notify the City and shall cause the same to be discharged of record within thirty (30) days after its filing. 25. Indemnification and Insurance: a. Contractor agrees to release, defend, indemnify, and hold harmless the City, its agents, representatives, employees, and officers (collectively referred to for purposes of this Section as the City) from and against any and all claims, demands, actions, fees and costs (including attorney’s fees and the costs and fees of and expert witness and consultants), losses, expenses, liabilities (including liability where activity is inherently or intrinsically dangerous) or damages of whatever kind or nature connected therewith and without limit and without regard to the cause or causes thereof or the negligence of any party or parties that may be asserted against, recovered from or suffered by the City occasioned by, growing or arising out of or resulting from or in any way related to: (i) the negligent, reckless, or intentional misconduct of the Contractor; or (ii) any negligent, reckless, or intentional misconduct of any of the Contractor’s agents. b. Such obligations shall not be construed to negate, abridge, or reduce other rights or obligations of indemnity that would otherwise exist. The indemnification obligations of this Section must not be construed to negate, abridge, or reduce any common-law or statutory rights of the City as indemnitee(s) which would otherwise exist as to such indemnitee(s). c. Contractor’s indemnity under this Section shall be without regard to and without any right to contribution from any insurance maintained by City. d. Should the City be required to bring an action against the Contractor to assert its right to defense or indemnification under this Agreement or under the Contractor’s applicable insurance policies required below the City shall be entitled to recover reasonable costs and attorney fees incurred in asserting its right to indemnification or defense but only 31 Page 13 of 19 if a court of competent jurisdiction determines the Contractor was obligated to defend the claim(s) or was obligated to indemnify the City for a claim(s) or any portion(s) thereof. e. In the event of an action filed against City resulting from the City’s performance under this Agreement, the City may elect to represent itself and incur all costs and expenses of suit. f. Contractor also waives any and all claims and recourse against the City, including the right of contribution for loss or damage to person or property arising from, growing out of, or in any way connected with or incident to the performance of this Agreement except “responsibility for [City’s] own fraud, for willful injury to the person or property of another, or for violation of law, whether willful or negligent” as per 28-2-702, MCA. g. These obligations shall survive termination of this Agreement and the services performed hereunder. h. In addition to and independent from the above, Contractor shall at Contractor’s expense secure insurance coverage through an insurance company or companies duly licensed and authorized to conduct insurance business in Montana which insures the liabilities and obligations specifically assumed by the Contractor in this Section. The insurance coverage shall not contain any exclusion for liabilities specifically assumed by the Contractor in this Section. The insurance shall cover and apply to all claims, demands, suits, damages, losses, and expenses that may be asserted or claimed against, recovered from, or suffered by the City without limit and without regard to the cause therefore and which is acceptable to the City and Contractor shall furnish to the City an accompanying certificate of insurance and accompanying endorsements in amounts not less than as shown below: • Workers’ Compensation – not less than statutory limits; • Employers’ Liability - $1,000,000 per occurrence; $2,000,000 annual aggregate; • Commercial General Liability - $1,000,000 per occurrence; $2,000,000 annual aggregate; • Products and Completed Operations – $1,000,000; • Automobile Liability - $1,000,000 property damage/bodily injury; $2,000,000 annual aggregate (all owned, hired, non-owned vehicles); • Builder’s Risk/Property Insurance at least as broad as that provided by the ISO special causes of loss form (CP10 30) naming at a minimum the City in an amount equal to greater of Contractor’s compensation or full replacement value of the work (covering at a minimum all work, buildings, materials and equipment, whether on site or in transit, loss due to fire, lightening, theft, vandalism, malicious mischief, earthquake, collapse, debris removal, demolition occasioned by enforcement of laws, water damage, flood if site within a flood plain, repair or replacement costs, testing and start-up costs) on an all risk coverage basis. This 32 Page 14 of 19 insurance must include waivers of subrogation between the City and Contractor to the extent that damage to the Work or City Hall is covered by other insurance; • Owner’s and Contractor’s Protective Liability: one policy designating the City (including its agents, representatives, employees, and officers) as the insured and another independent policy designated the City’s Representative (including its consultants, consultants, agents and employees) as the insured on the declarations with both policies covering: (i) operations performed by the Contractor under this Agreement for the City; and (ii) the City’s and City’s Representatives acts or omissions, including negligent acts, in connection with its general supervision of the work of the Contractor’s and its subcontractors - $1,000,000 per occurrence; $2,000,000 aggregate; • Contractual Liability Insurance (covering the Contractor’s indemnity obligations described in this Agreement) - $1,000,000 per occurrence $2,000,000 aggregate The amounts of insurance provided shall be exclusive of defense costs. The City of Bozeman shall be endorsed as an additional or named insured on a primary non- contributory basis on both the Commercial General and Automobile Liability policies. The insurance and required endorsements must be in a form suitable to City and shall include no less than a thirty (30) day notice of cancellation or non-renewal. Contractor shall notify City within two (2) business days of Contractor’s receipt of notice that any required insurance coverage will be terminated or Contractor’s decision to terminate any required insurance coverage for any reason. The City must approve all insurance coverage and endorsements prior to the Contractor commencing work. 26. Bonds a. Performance and Payment Bonds: The Contractor shall furnish a Performance Bond and a Payment Bond in favor of the City each in an amount equal to one-hundred Percent (100%) of the Agreement amount. b. Warranty Bond: The Contract shall furnish a warranty bond in favor of the City and extending for a period of two years from the date of substantial completion. The bond amount shall be twenty percent (20%) of this Agreement amount. 27. Taxes: Contractor is obligated to pay all taxes of any kind or nature and make all appropriate employee withholdings. Contractor understands that all contractors or subcontractors working on a publicly funded project are required to pay or have withheld from earnings a license fee of one percent (1%) of the gross contract price if the gross contract price is Five Thousand Dollars ($5,000) or more. This license fee is paid to the Montana Department of Revenue. 33 Page 15 of 19 28. Dispute Resolution: a. Any claim, controversy, or dispute between the parties, their agents, employees, or representatives shall be resolved first by negotiation between senior-level personnel from each party duly authorized to execute settlement agreements. Upon mutual agreement of the parties, the parties may invite an independent, disinterested mediator to assist in the negotiated settlement discussions. b. If the parties are unable to resolve the dispute within thirty (30) days from the date the dispute was first raised, then such dispute shall be resolved in a court of competent jurisdiction in compliance with the Applicable Law provisions of this Agreement. 29. Attorney Fees and Costs: In the event it becomes necessary for either Party to retain an attorney to enforce any of the terms or conditions of this Agreement or to give any notice required herein, then the prevailing Party or the Party giving notice shall be entitled to reasonable attorney's fees and costs, including fees, salary, and costs of in-house counsel including the City Attorney’s Office staff.. 30. Survival: Contractor’s indemnification and warranty obligations shall survive the termination or expiration of this Agreement for the maximum period allowed under applicable law. 31. Headings: The headings used in this Agreement are for convenience only and are not be construed as a part of the Agreement or as a limitation on the scope of the particular paragraphs to which they refer. 32. Waiver: A waiver by City of any default or breach by Contractor of any covenants, terms, or conditions of this Agreement does not limit City’s right to enforce such covenants, terms, or conditions or to pursue City’s rights in the event of any subsequent default or breach. 33. Severability: If any portion of this Agreement is held to be void or unenforceable, the balance thereof shall continue in effect. 34. Applicable Law: The parties agree that this Agreement is governed in all respects by the laws of the State of Montana. 35. Binding Effect: This Agreement is binding upon and inures to the benefit of the heirs, legal representatives, successors, and assigns of the parties. 34 Page 16 of 19 36. Amendments: This Agreement may not be modified, amended, or changed in any respect except by a written document signed by all parties. 37. No Third-Party Beneficiary: This Agreement is for the exclusive benefit of the parties, does not constitute a third-party beneficiary agreement, and may not be relied upon or enforced by a third party. 38. Counterparts: This Agreement may be executed in counterparts, which together constitute one instrument. 39. Assignment: Contractor may not assign this Agreement in whole or in part without the prior written consent of the City. No assignment will relieve Contractor of its responsibility for the performance of the Agreement and the completion of the Work. Contractor may not assign to any third party other than Contractor’s subcontractors on the Work, the right to receive monies due from City without the prior written consent of City. 40. Authority: Each party represents that it has full power and authority to enter into and perform this Agreement and the person signing this Agreement on behalf of each party has been properly authorized and empowered to sign this Agreement. 41. Independent Contractor/Labor Relations: a. The parties agree and acknowledge that in the performance of this Agreement and the completion of the Work, Contractor shall render services as an independent contractor and not as the agent, representative, subcontractor, or employee of the City. The parties further agree that all individuals and companies retained by Contractor at all times will be considered the agents, employees, or independent contractors of Contractor and at no time will they be the employees, agents, or representatives of the City. b. Contractor shall comply with the applicable requirements of the Workers’ Compensation Act, Title 39, Chapter 71, MCA, and the Occupational Disease Act of Montana, Title 39, Chapter 71, MCA. Contractor shall maintain workers’ compensation coverage for all members and employees of Contractor’s business, except for those members who are exempted by law. c. Contractor shall furnish the City with copies showing one of the following: (1) a binder for workers’ compensation coverage by an insurer licensed and authorized to provide workers’ compensation insurance in the State of Montana; or (2) proof 35 Page 17 of 19 of exemption from workers’ compensation granted by law for independent contractors. d. Contractor shall post a legible statement of all wages and fringe benefits to be paid to the Contractor’s employees and the frequency of such payments (i.e., hourly wage employees shall be paid weekly). Such posting shall be made in a prominent and accessible location at the Contractor’s normal place of business and shall be made no later than the first day of services provided under this Agreement. Such posting shall be removed only upon expiration or termination of this Agreement. e. In performing the services under this Agreement, Contractor shall give preference to the employment of bona fide residents of Montana, as required by §18-2-403, MCA, as such term is defined by §18-2-401(1), MCA. When making assignments of work, Contractor shall use workers both skilled in their trade and specialized in their field of work for all work to which they are assigned. f. Pursuant to §§18-2-403 and 18-2-422, MCA, Contractor shall pay wages, fringe benefits, and expenses, including travel allowances as set forth in the current Montana Prevailing Wage Rate for Non Construction Services in effect and applicable to Gallatin County, Montana, which schedule is incorporated herein. Contractor shall pay all hourly wage employees on a weekly basis. Violation of the requirements set forth in the above State of Montana schedule of prevailing wage rates may subject the Contractor to the penalties set forth in §18-2-407, MCA. Contractor shall maintain payroll records during the term of this Agreement and for a period of three (3) years following termination of this Agreement. g. The Contractor shall ensure that any person, firm or entity performing any portion of the services under this Agreement for which the contractor, subcontractor or employer is responsible, is paid the applicable standard prevailing rate of wages. h. In the event that, during the term of this Agreement, any labor problems or disputes of any type arise or materialize which in turn cause any services to cease for any period of time, Contractor specifically agrees to take immediate steps, at its own expense and without expectation of reimbursement from City, to alleviate or resolve all such labor problems or disputes. The specific steps Contractor shall take shall be left to the discretion of Contractor; provided, however, that Contractor shall bear all costs of any related legal action. Contractor shall provide immediate relief to the City so as to permit the services to continue at no additional cost to City. 36 Page 18 of 19 i. Contractor shall indemnify, and hold the City harmless from any and all claims, demands, costs, expenses, damages, and liabilities arising out of, resulting from, or occurring in connection with any labor problems or disputes or any delays or stoppages of work associated with such problems or disputes and for any claims regarding underpaid prevailing wages 42. Integration: This Agreement and all Exhibits attached hereto constitute the entire agreement of the parties. Covenants or representations not contained therein or made a part thereof by reference, are not binding upon the parties. There are no understandings between the parties other than as set forth in this Agreement. All communications, either verbal or written, made prior to the date of this Agreement are hereby abrogated and withdrawn unless specifically made a part of this Agreement by reference. 43. Consent to Electronic Signatures: The Parties have consented to execute this Agreement electronically in conformance with the Montana Uniform Electronic Transactions Act, Title 30, Chapter 18, Part 1, MCA. **** END OF AGREEMENT EXCEPT FOR SIGNATURES **** 37 Page 19 of 19 IN WITNESS WHEREOF, Contractor and City have caused this Agreement to be executed, effective on the date written above, and intend to be legally bound thereby. CITY OF BOZEMAN, MONTANA CONTRACTOR By: _______________________________ By: Jeff Mihelich, City Manager Print Name: Title: APPROVED AS TO FORM: By: _______________________________ Greg Sullivan, City Attorney 38 39 40 41 42 43 44       TO: ADDRESS: PROJECT: NOTICE OF AWARD  Dated:  CONTRACT FOR: 2021 Pear Street Booster Station Main Repair Project     You are notified that your Bid opened on , for the above Contract has been considered. You are the apparent Successful Bidder and have been awarded a Contract for the: 2021 Pear Street Booster Station Main Repair Project.  The Contract Price of your Contract is:   ($ ).  Dollars     Four (4) copies of each of the proposed Contract Documents (except Drawings) accompany this Notice of Award. Two   (2) sets of the Drawings will be delivered separately or otherwise made available to you immediately.     You must comply with the following conditions precedent within fifteen (15) days of the date of this Notice of Award,   that is, by .   1. You must deliver to the OWNER Four (4) fully executed counterparts of the Agreement including all the  Contract Documents and Drawings.   2. You must deliver with the executed Agreement the Contract Security (Bonds) as specified in the Instruction to  Bidders (Article 20), and the General Conditions (paragraph 5.01).   3. List other conditions precedent:  You must deliver with the executed Agreement the Certificates of Insurance as specified in the General  Conditions (Article 5) and Supplementary Conditions (paragraphs SC-5.04 and SC-5.06).     Failure to comply with these conditions within the time specified will entitle OWNER to consider your Bid abandoned, to annul this Notice of Award, and to declare your Bid Security forfeited.     Within ten (10) days after you comply with these conditions, OWNER will return to you two fully signed counterpart of the Agreement with the Contract Documents attached.     CITY OF BOZEMAN, MONTANA ATTEST:     BY: BY: (CITY MANAGER) (CITY CLERK)     DATE: 45 46 Memorandum REPORT TO:City Commission FROM:John Van Delinder, Streets Superintendent Nicholas Ross, Director of Transportation and Engineering SUBJECT:Authorize City Manager to Enter into Equipment Lease-Purchase Agreement with Caterpillar Financial Services for Two Road Graders and Approve Governmental Entity Resolution Authorizing Lease MEETING DATE:January 23, 2024 AGENDA ITEM TYPE:Agreement - Vendor/Contract RECOMMENDATION:Authorize City Manager to Enter into Equipment Lease-Purchase Agreement with Caterpillar Financial Services for Two Road Graders and Approve Governmental Entity Resolution Authorizing Lease. STRATEGIC PLAN:4.3 Strategic Infrastructure Choices: Prioritize long-term investment and maintenance for existing and new infrastructure. BACKGROUND:The Street Maintenance Capital Improvement Program budget was approved to include $120,000 for an annual motor grader lease. Grading the residential streets is critical to safe travel of our citizens. Pulling the snow out from the curb so it can be blown into trucks and hauled away is important to parking in the downtown and other business areas. These graders will be all wheel drive, which increases our productivity. Newer equipment has fewer breakdowns and better fuel economy which means less time in the shop & fueling during a shift. The old graders would be traded in. UNRESOLVED ISSUES:None ALTERNATIVES:As suggested by the City Commission. FISCAL EFFECTS:This item is in the Street Maintenance Capital Improvement Program Budget (STR22) for $120,000 per year for the next 5 years. Attachments: Grader Lease Report compiled on: January 2, 2024 47 © 2022 Caterpillar. All Rights Reserved. CAT, CATERPILLAR, LET'S DO THE WORK, their respective logos, "Caterpillar Corporate Yellow", the "Power Edge" and Cat "Modern Hex" trade dress as well as corporate and product identity used herein, are trademarks of Caterpillar and may not be used without permission. Complete and sign all documents in this package. Submit completed and signed documents by clicking FINISH at the end of your documents. NEXT Complete these five items to get started. Open and review your executed document package after you receive your confirmation email confirming all parties have signed. Register for MyCatFinancial to manage your account anytime and anywhere via desktop or with the free mobile app. Enroll in Auto Pay for one less thing to worry about. Skip the hassle of manually paying your bill every month and focus on running your business. REGISTER FOR MYCATFINANCIAL ENROLL IN AUTO PAY 1. Visit mycatfinancial.com and select your country/language. You can also download the free app on your mobile device from the App Store or Google Play. 2. Click CREATE ACCOUNT in the white box 3. Input the required registration information 4. Click CONTINUE 5. Enter the code sent to your email 6. Click VERIFY 7. Create your password 8. Click CONTINUE 9. Click LINK A CONTRACT 1.Login to MyCatFinancial and click ENROLL/MANAGE AUTO PAY in account settings (located at the top right of your screen) 2.Select the contracts you want to enroll in Auto Pay and click ENROLL 3.Enter your banking information for the recurring payment 4.That's it. Your payment will be automatically withdrawn from your account every month a. Contract Number: 001-70130448 b. Serial/Customer Number: EB300875, EB300876 CONTACT US c. Commencement Date:__________________________ Apply for a Cat Card Make a payment Enroll in Auto Pay Request a payoff quote Review your contracts and invoices And more! ACCOUNT FEATURES Have questions about your account? We can help. Hours: Monday – Friday | 7 a.m. – 6 p.m. CST Phone: 1-800-651-0567 Email: NABC.CustomerService@cat.com CAT® CARD The fast, easy way to pay for equipment, parts, rentals, service, and attachments wherever the job takes you —with no annual fee, competitive rates, flexible payment terms and more. Use your Cat Card at participating Cat dealers and Cat Rental Stores to get what you need and get back to work. Learn more at catcard.com. 48 Document Checklist – Governmental Lease US Document Checklist Finance Lease Page 1 of 1 4635508 27/12/2023 03:51:30 PM Ref. 1882821 These documents were prepared especially for: CITY OF BOZEMAN, MONTANA P.O. BOX 1230 BOZEMAN, MT 59771-1230 Dealer: TRACTOR & EQUIPMENT CO., E400 Contract Number 001-70130448 Transaction Number: 4635508 Comments: Date: 12/27/2023 Time: 03:51:30 PM Dealer Executed Documents Purchase Agreement Dealer Invoice All Credit Conditions Met *If any of these documents are altered, or if the Lessee wishes to add or delete documents, please contact your CFSC Credit Analyst to obtain acceptance of any and all changes. If you have any questions concerning these documents please call and ask for Checklist completed and confirmed by: Print Name: Date: These Documents do not constitute any offer or commitment to offer financing by Caterpillar Financial Services Corporation without Caterpillar Financial Services Corporation's expressed written approval. Customer Executed Documents Comments Governmental Lease Document _____________________________________ Insurance-Liability and Physical Damage _____________________________________ Advance Payment (cross out if N/A)_____________________________________ Guaranty of Payment (cross out if N/A)_____________________________________ Tax Exemption Certif. (cross out if N/A)_____________________________________ Title applied for (cross out if N/A)_____________________________________ Customer Information Verification _____________________________________ Any necessary Riders/Amendments _____________________________________ CVA DOC ADDENDUM TO FINANCE LEASE (Multiple CVA offers at Doc Gen) _____________________________________ FINAL CVA AT ADDENDUM (Multiple CVA offers at Doc Gen) _____________________________________ FINAL CVA AT QUOTE (Customer Accepted CVA before Doc Gen) _____________________________________ Other __________________________________________________________ 8038G / CG Form _____________________________________ Request for Minutes _____________________________________ Opinion of Counsel _____________________________________ Governmental Resolution to Lease, Purchase and/or Finance _____________________________________ Governmental Buyback Agreement (cross out if N/A)_____________________________________ x Aaron Funk 49 Governmental Equipment Lease-Purchase Agreement Contract Number 001-70130448 US Governmental Equipment Lease-Purchase Agreement 4635508 27/12/2023 03:51:41 PM Ref. 1882821 In reliance on your selection of the equipment described below (each a “Unit”), we have agreed to acquire and lease the Units to you, subject to the terms of this Agreement.Until this Agreement has been signed by our duly authorized representative, it will constitute an offer by you to enter into this Agreement with us on the terms stated herein. 2. DESCRIPTION OF THE UNITS DESCRIPTION OF UNITSWhether the Unit is new or used, the modelnumber, the manufacturer, and the model name SERIAL/VINUnique ID number for thisUnit ANNUALLEASE PAYMENTThis is due per period, asstated below in section 3. FINAL LEASEPAYMENT DELIVERY DATEEnter date machine wasdelivered to you. empty 1 New 2023 Caterpillar 140-15AWD Motor Grader EB300875 SEE ATTACHMENT $123,440.00 _________________ empty empty 1 New 2023 Caterpillar 140-15AWD Motor Grader EB300876 SEE ATTACHMENT $123,440.00 _________________ empty TERMS AND CONDITIONS 3. Lease Payments; Current Expense You will pay us the lease payments, including the final lease payment set forth above (collectively, the "Lease Payments"). Lease Payments will be paid by you to us according to the attached payment schedule; provided that all amounts owing hereunder will be due by the final lease payment date. A portion of each Lease Payment constitutes interest and the balance of each Lease Payment is payment of principal. The Lease Payments will be due without demand. You will pay the Lease Payments to us at CATERPILLAR FINANCIAL SERVICES CORP., P.O. BOX 100647, PASADENA, CA 91189- 0647 or such other location that we designate in writing. Your obligations, including your obligation to pay the Lease Payments due in any fiscal year, will constitute a current expense of yours for such fiscal year and will not constitute an indebtedness of yours within the meaning of the constitution and laws of the State in which you are located (the "State"). Nothing in this Agreement will constitute a pledge by you of any taxes or other moneys, other than moneys lawfully appropriated from time to time for the payment of the “Payments” (as defined in the last sentence of this Section) owing under this Agreement. You agree that, except as provided in Section 7, your duties and liabilities under this Agreement and any associated documents are absolute and unconditional. Your payment and performance obligations are not subject to cancelation, reduction, or setoff for any reason. You agree to settle all claims, defenses, setoffs, counterclaims and other disputes you may have with the Supplier, the manufacturer of the Unit, or any other third party directly with the Supplier, the manufacturer or the third party, as the case may be. You will not assert, allege or make any such claim, defense, setoff, counterclaim or other dispute against us or with respect to the payments due us under this Agreement.As used in this Agreement, "Payments" will mean the Lease Payments and any other amounts required to be paid by you. The portion of the Lease Payments constituting principal will bear interest (computed on the basis of actual days elapsed in a 360 day year) at the rate of 1.51% per annum. 4. Late Charges If we do not receive a Payment on the date it is due, you will pay to us, on demand, a late payment charge equal to the lesser of five percent (5%) of such Payment or the highest charge allowed by law. 5. Security Interest To secure your obligations under this Agreement, you grant us a continuing first priority security interest in each Unit (including any Additional Collateral), including all attachments, accessories and optional features (whether or not installed on such Units) and all substitutions, replacements, additions, and accessions, and the proceeds of all the foregoing, including, but not limited to, proceeds in the form of chattel paper. You authorize the filing of such financing statements and will, at your expense, do any act and execute, acknowledge, deliver, file, register and record any document, which we deem desirable to protect our security interest in each Unit and our rights and benefits under this Agreement. You, at your expense, will protect and defend our security interest in the Units and will keep the Units free and clear of any and all claims, liens, encumbrances and legal processes however and whenever arising. 6. Disclaimer of Warranties WE HAVE NOT MADE AND DO NOT MAKE ANY WARRANTY, REPRESENTATION OR COVENANT OF ANY KIND, EXPRESS OR IMPLIED, AS TO THE UNITS. AS TO US, YOUR LEASE AND PURCHASE OF THE UNITS WILL BE ON AN "AS IS" AND "WHERE IS" BASIS AND "WITH ALL FAULTS”. Nothing in this Agreement is intended to limit, waive, abridge or otherwise modify any rights, claims, or causes of action that you may have against any person or entity other than us. 1. PARTIES LESSOR (“we”, “us”, or “our”):LESSEE (“you” or “your”): CATERPILLAR FINANCIAL SERVICES CORPORATION 2120 West End Avenue Nashville, TN 37203 CITY OF BOZEMAN, MONTANA P.O. BOX 1230 BOZEMAN, MT 59771-1230 50 US Governmental Equipment Lease-Purchase Agreement 4635508 27/12/2023 03:51:41 PM Ref. 1882821 7.Non-Appropriation You have an immediate need for, and expect to make immediate use of, the Units. This need is not temporary or expected to diminish during the term of this Agreement. To that end, you agree, to the extent permitted by law, to include in your budget for the current and each successive fiscal year during the term of this Agreement, a sufficient amount to permit you to discharge your obligations under this Agreement. Notwithstanding any provision of this Agreement to the contrary, we and you agree that, in the event that prior to the commencement of any of your fiscal years you do not have sufficient funds appropriated to make the Payments due under this Agreement for such fiscal year, you will have the option of terminating this Agreement as of the date of the commencement of such fiscal year by giving us sixty (60) days prior written notice of your intent to terminate. No later than the last day of the last fiscal year for which appropriations were made for the Payments (the "Return Date"), you will return to us all of the Units, at your sole expense, in accordance with Section 14, and this Agreement will terminate on the Return Date without penalty or expense to you and you will not be obligated to pay the Lease Payments beyond such fiscal year; provided, that you will pay all Payments for which moneys have been appropriated or are otherwise available; and provided further, that you will pay month-to-month rent at the rate set by us for each month or part of any month that you fail to return the Units. 8. Tax Warranty You will, at all times, do and perform all acts and things necessary and within your control to ensure that the interest component of the Lease Payments will, for the purposes of Federal income taxation, be excluded from our gross income. You will not permit or cause your obligations under this Agreement to be guaranteed by the Federal Government or any branch or instrumentality of the Federal Government. You will use the Units for the purpose of performing one or more of your governmental functions consistent with the scope of your authority and not in any trade or business carried on by a person other than you. You will report this Agreement to the Internal Revenue Service by filing Form 8038G, 8038GC or 8038, as applicable. Failure to do so will cause this Agreement to lose its tax exempt status. You agree that if the appropriate form is not filed, the interest rate payable under this Agreement will be raised to the equivalent taxable interest rate. If the use, possession or acquisition of the Units is determined to be subject to taxation, you will pay when due all taxes and governmental charges assessed or levied against or with respect to the Units. 9.Assignment You may not, without our prior written consent, by operation of law or otherwise, assign, transfer, pledge, hypothecate or otherwise dispose of your right, title and interest in and to this Agreement and/or the Units and/or grant or assign a security interest in this Agreement and/or the Units, in whole or in part. We may not transfer, sell, assign, pledge, hypothecate, or otherwise dispose of our right, title and interest in and to this Agreement and/or the Units and/or grant or assign a security interest in this Agreement and/or the Units, in whole or in part. 10. Indemnity To the extent permitted by law, you assume liability for, agree to and do indemnify, protect and hold harmless us and our employees, officers, directors and agents from and against any and all liabilities, obligations, losses, damages, injuries, claims, demands, penalties, actions, costs and expenses (including reasonable attorney's fees), of whatsoever kind and nature, arising out of the use, condition (including, but not limited to, latent and other defects and whether or not discoverable by you or us), operation, ownership, selection, delivery, storage, leasing or return of any item of Units, regardless of where, how and by whom operated, or any failure on your part to accept the Units or otherwise to perform or comply with any conditions of this Agreement. 11. 11. Insurance; Loss and Damage You bear the entire risk of loss, theft, destruction or damage to the Units from any cause whatsoever. No loss, theft, destruction or damage of the Units will relieve you of the obligation to make Lease Payments or to perform any obligation owing under this Agreement. You agree to keep the Units insured to protect all of our interests, at your expense, for such risks, in such amounts, in such forms and with such companies as we may require, including but not limited to fire and extended coverage insurance, explosion and collision coverage, and personal liability and property damage liability insurance. Any insurance policies relating to loss or damage to the Units will name us as loss payee as our interests may appear and the proceeds may be applied toward the replacement or repair of the Units or the satisfaction of the Payments due under this Agreement. You agree to use, operate and maintain the Units in accordance with all laws, regulations and ordinances and in accordance with the provision of any policies of insurance covering the Units, and will not rent the Units or permit the Units to be used by anyone other than you. You agree to keep the Units in good repair, working order and condition and house the Units in suitable shelter, and to permit us or our assigns to inspect the Units at any time and to otherwise protect our interests in the Units. If any Unit is customarily covered by a maintenance agreement, you will furnish us with a maintenance agreement by a party acceptable to us. 12. Default; Remedies An “Event of Default” will occur if (a) you fail to pay any Payment when due and such failure continues for ten (10) days after the due date for such Payment or (b) you fail to perform or observe any other covenant, condition, or agreement to be performed or observed by you under this Agreement and such failure is not cured within twenty (20) days after written notice of such failure from us. Upon an Event of Default, we will have all rights and remedies available under applicable law. In addition, we may declare all Lease Payments due or to become due during the fiscal year in which the Event of Default occurs to be immediately due and payable by you and/or we may repossess the Units by giving you written notice to deliver the Units to us in the manner provided in Section 14, or in the event you fail to do so within ten (10) days after receipt of such notice, and subject to all applicable laws, we may enter upon your premises and take possession of the Units. Further, if we financed your obligations under any extended warranty agreement such as an Equipment Protection Plan, Extended Service Contract, Extended Warranty, Customer Service Agreement, Total Maintenance and Repair Agreement or similar agreement, we may cancel such extended warranty agreement on your behalf and receive the refund of the extended warranty agreement fees that we financed but had not received from you as of the date of the Event of Default. 13. Miscellaneous This Agreement may not be modified, amended, altered or changed except by a written agreement signed by you and us. In the event any provision of this Agreement is found invalid or unenforceable, the remaining provisions will remain in full force and effect. This Agreement, together with exhibits, constitutes the entire agreement between you and us and supersedes all prior and contemporaneous writings, understandings, agreements, solicitations, documents and representations, expressed or implied. Any terms and conditions of any purchase order or other documents submitted by you in connection with this Agreement which are in addition to or inconsistent with the terms and conditions of this Agreement will not be binding on us and will not apply to this Agreement. You agree that we may correct patent errors in this Agreement and fill in blanks including, for example, correcting or filling in serial numbers, VIN numbers, and dates. Any notices required to be given under this Agreement will be given to the parties in writing and by certified mail at the address provided in this Agreement, or to such other addresses as each party may 51 US Governmental Equipment Lease-Purchase Agreement 4635508 27/12/2023 03:51:41 PM Ref. 1882821 substitute by notice to the other, which notice will be effective upon its receipt. 14. Title; Return of Units Notwithstanding our designation as “Lessor,” we do not own the Units. Legal title to the Units will be in you so long as an Event of Default has not occurred, and you have not exercised your right of non-appropriation. If an Event of Default occurs or if you non-appropriate, full and unencumbered title to the Units will pass to us without the necessity of further action by the parties, and you will have no further interest in the Units. If we are entitled to obtain possession of any Units or if you are obligated at any time to return any Units, then (a) title to the Units will vest in us immediately, and (b) you will, at your expense, promptly deliver the Unit to us properly protected and in the condition required by Section 11. You will deliver the Unit, at our option, (i) to the nearest Caterpillar dealer selling equipment of the same type as the Unit; or (ii) on board a carrier named by us and shipping the Unit, freight collect, to a destination designated by us. If the Unit is not in the condition required by Section 11, you must pay us, on demand, all costs and expenses incurred by us to bring the Unit into the required condition. Until the Units are returned as required above, all terms of this Agreement will remain in full force and effect including, without limitation, your obligation to pay Lease Payments and to insure the Units. 15. Other Documents In connection with the execution of this Agreement, you will cause to be delivered to us (i) either (A) a certified copy of your authorizing resolution substantially in the form attached as Attachment B and a copy of the minutes of the relevant meeting or (B) an opinion of your counsel substantially in the form attached as Attachment C; (ii) a copy of the signed Form filed with the Internal Revenue Service required in Section 8 above as Attachment D; and (iii) any other documents or items required by us. 16. Applicable Law This Agreement will be governed by the laws, excluding the laws relating to the choice of law, of the State in which you are located. SIGNATURES LESSOR CATERPILLAR FINANCIAL SERVICES CORPORATION LESSEE CITY OF BOZEMAN, MONTANA Signature ____________________________________ Signature ____________________________________ Name (Print) ____________________________________ Name (Print) ____________________________________ Title ____________________________________ Title ____________________________________ Date ____________________________________ Date ____________________________________ Jeff Mihelich City Manager 52 Attachment B Contract Number 001-70130448 US Government Resolution to Lease, Purchase and_or Finance 4635508 27/12/2023 03:51:40 PM Ref. 1882821 GOVERNMENTAL ENTITY RESOLUTION TO LEASE, PURCHASE AND/OR FINANCE WHEREAS,the laws of the State of Montana (the "State") authorize CITY OF BOZEMAN, MONTANA (the “Governmental Entity”), a duly organized political subdivision, municipal corporation or similar public entity of the State, to purchase, acquire and lease personal property for the benefit of the Governmental Entity and its inhabitants and to enter into any necessary contracts; and the Governmental Entity wants to lease, purchase and/or finance equipment (“Equipment”) from Caterpillar Financial Services Corporation and/or an authorized Caterpillar dealer (“Caterpillar”) by entering into that certain Governmental Equipment Lease-Purchase Agreement (the "Agreement") withCaterpillar; and the form of the Agreement has been presented to the governing body of the Governmental Entity at this meeting. RESOLVED,that: (i) the Agreement, including all schedules and exhibits attached to the Agreement, is approved in substantially the form presented at the meeting, with any Approved Changes (as defined below), (ii) the Governmental Entity enter into the Agreement with Caterpillar and (iii) the Agreement is adopted as a binding obligation of the Governmental Entity; and that changes may later be made to the Agreement if the changes are approved by the Governmental Entity’s counsel or members of the governing body of the Governmental Entity signing the Agreement (the “Approved Changes”) and that the signing of the Agreement and any related documents is conclusive evidence of the approval of the changes; and that the persons listed below, who are the incumbent officers of the Governmental Entity (the “Authorized Persons”): [PLEASE INSERT NAME AND TITLE OF EACH AUTHORIZED PERSON BELOW] Name (Print or Type)Title (Print or Type) ___________________________ ___________________________ ___________________________ ___________________________ ___________________________ ___________________________ be, and each is, authorized, directed and empowered, on behalf of the Governmental Entity, to (i) sign and deliver to Caterpillar, and its successors andassigns, the Agreement and any related documents, and (ii) take or cause to be taken all actions he/she deems necessary or advisable to acquire the Equipment, including the signing and delivery of the Agreement and related documents; and that the signatory below is authorized to attest to these resolutions and affix the seal of the Governmental Entity to the Agreement, these resolutions, and any related documents; and that nothing in these resolutions, the Agreement or any other document imposes a pecuniary liability or charge upon the general credit of the Governmental Entity or against its taxing power, except to the extent that the payments payable under the Agreement are special limited obligations of the Governmental Entity as provided in the Agreement; and that a breach of these resolutions, the Agreement or any related document will not impose any pecuniary liability upon the Governmental Entity or any charge upon its general credit or against its taxing power, except to the extent that the payments payable under the Agreement are speciallimited obligations of the Governmental Entity as provided in the Agreement; and that the authority granted by these resolutions will apply equally and with the same effect to the successors in office of the Authorized Persons. I, __________________________, ___________________ of CITY OF BOZEMAN, MONTANA, certify that the resolutions above are a full, true and correct copy of resolutions of the governing body of the Governmental Entity. I also certify that the resolutions were duly and regularly passed and adopted at a meeting of the governing body of the Governmental Entity. I also certify that such meeting was duly and regularly called and held in all respects as required by law, at the Governmental Entity’s office. I also certify that at such meeting, a majority of the governing body of the Governmental Entity was present and voted in favor of these resolutions. I also certify that these resolutions are still in full force and effect and have not been amended or revoked. IN WITNESS of these resolutions, the signatory named below executes this document on behalf of the Governmental Entity. SIGNATURE [To be signed by authorized individual.] Signature _________________________________________ Title _________________________________________ Date _________________________________________ Jeff Mihelich City Manager City Manager 53 Purchase Agreement Contract Number 001-70130448 US Purchase Agreement 4635508 27/12/2023 03:51:41 PM Ref. 1882821 This Purchase Agreement is between TRACTOR & EQUIPMENT CO.("Vendor") and Caterpillar Financial Services Corporation ("Cat Financial"). VendoragreestoselltoCatFinancialandCatFinancialagreestobuyfromVendortheequipmentdescribedbelow(the"Unit(s)"), subject to the terms and conditions set forth below and on the reverse side hereof. Description of Unit(s)Serial#VIN #Freight Total Price (1) 140-15AWD CATERPILLAR Motor Grader EB300875 $0.00 $307,903.19 (1) 140-15AWD CATERPILLAR Motor Grader EB300876 $0.00 $307,903.19 Lessee: CITY OF BOZEMAN, MONTANA P.O. BOX 1230 BOZEMAN, MT 59771-1230 Subtotal Federal Excise Tax Other Tax Total Purchase Price Unit(s) Delivery Point: VICINITY OF GALLATIN COUNTY BOZEMAN, MT 59771 $615,806.38 $0.00 $0.00 $615,806.38 See next page for additional terms and conditions. SIGNATURES CATERPILLAR FINANCIAL SERVICES CORPORATION TRACTOR & EQUIPMENT CO. Signature ______________________________________ Signature ______________________________________ Name (Print) ______________________________________ Name (Print) ______________________________________ Title ______________________________________ Title ______________________________________ Date ______________________________________ Date ______________________________________ 54 Additional Terms and Conditions Contract Number 001-70130448 US Purchase Agreement 4635508 27/12/2023 03:51:41 PM Ref. 1882821 1. The lessee named on the front hereof (the "Lessee") has selected the Unit(s), instructed Cat Financial to purchase the Unit(s) from Vendor, and agreed to lease the Unit(s) from Cat Financial. 2. Cat Financial (or its assignee) will have no obligation hereunder (and any sums previously paid by Cat Financial to Vendor with respect to the Unit(s) shall be promptly refunded to Cat Financial) unless (a) all of the conditions set forth in Section 1.3 (if a master lease agreement) or Section 1 (if a non-master lease agreement) of the lease with the Lessee covering the Unit(s) have been timely fulfilled and (b) the Lessee has not communicated to Cat Financial (or its assignee), prior to "Delivery" (as hereinafter defined) of the Unit(s), an intent not to lease the Unit(s) from Cat Financial. All conditions specified in this paragraph shall be deemed timely fulfilled unless prior to Delivery of the Unit(s), Cat Financial (or its assignee) shall notify Vendor to the contrary in writing. which shall include fax or email. "Delivery" shall mean the later of the time (a) Cat Financial executes this Purchase Agreement or (b) the Lessee or its agent takes control and/or physical possession of the Unit(s). 3. Upon timely satisfaction of the conditions specified in Paragraph 2 above, ownership, title and risk of loss to the Unit(s) shall transfer to Cat Financial (or its assignee) upon Delivery of the Unit(s). 4. Vendor warrants that (a) upon Delivery of the Unit(s), Cat Financial (or its assignee) will be the owner of and have absolute title to the Unit(s) free and clear of all claims, liens, security interests and encumbrances and the description of the Unit(s) set forth herein is correct and (b) the Unit Transaction Price set forth on the front hereof for each unit of Unit(s) leased under a lease is equal to such Unit(s)'s fair market value. 5. Vendor shall forever warrant and defend the sale of the Unit(s) to Cat Financial (or its assignee), its successors and assigns, against any person claiming an interest in the Unit(s). 6. Provided that no event of default exists under any agreement between Lessee and Cat Financial and upon timely satisfaction of the conditionsspecified in Paragraph 2 above, and unless otherwise agreed to in this Purchase Agreement, Cat Financial (orits assignee) shall payVendor the total Purchase Price set forth on the front hereof for the Unit(s)within three business days following (a) the receipt and approval by Cat Financial of all documentation deemed necessary by Cat Financial in connection with the lease transaction and (b) all credit conditions have been satisfied. 7. Vendor shall deliver the Unit(s) to the Lessee at the delivery point set forth on the front hereof. 8. This Purchase Agreement may be assigned by Cat Financial to a third party. Vendor hereby consents to any such assignment. 9. This Purchase Agreement shall become effective only upon execution by Cat Financial. 55 Payment Schedule Contract Number 001-70130448 US Payment Schedule 4635508 27/12/2023 03:51:40 PM Ref. 1882821 1. PARTIES LESSOR empty LESSEE empty CATERPILLAR FINANCIAL SERVICES CORPORATION empty CITY OF BOZEMAN, MONTANA 2. PAYMENT SCHEDULE PAYMENT NUMBER PAYMENT DATE PAYMENT AMOUNT 1 - 5 _______________________$79,778.94 6 _______________________$246,880.00 SIGNATURES CATERPILLAR FINANCIAL SERVICES CORPORATION CITY OF BOZEMAN, MONTANA Signature _________________________________________ Signature _________________________________________ Name (Print) _________________________________________ Name (Print) _________________________________________ Title _________________________________________ Title _________________________________________ Date _________________________________________ Date _________________________________________ Jeff Mihelich City Manager 56 Opinion of Counsel US Opinion of counsel 4635508 27/12/2023 03:51:50 PM Ref. 1882821 Re: Governmental Equipment Lease-Purchase Agreement (Contract Number 001-70130448) (the “Lease”) Between CITY OF BOZEMAN, MONTANA (“Lessee”) and Caterpillar Financial Services Corporation (“Lessor”) Sir/Madam: I am an attorney for Lessee, and in that capacity, I am familiar with the above-referenced transaction, the Lease, and all other documentspertaining to the Lease (the Lease and such other documents pertaining to the Lease being referred to as the “Lease Agreements”). Based on my examination of these and such other documents, records and papers and matters of fact and laws as I deemed to be relevant and necessary as the basis for my opinion set forth below, upon which opinion Lessor and any subsequent assignee of Lessor’s interest may rely, it is my opinion that: 1. Lessee is a fully constituted political subdivision or agency duly organized and existing under the Constitution and laws of the State of Montana (the “State”), and is authorized by such Constitution and laws (i) to enter into the transaction contemplated by the Lease Agreements and (ii) to carry out its obligations thereunder. 2. The Lease Agreements (i) have been duly authorized, executed and delivered by Lessee and (ii) constitute valid, legal and binding obligations and agreements of Lessee, enforceable against Lessee in accordance with their terms, assuming due authorization and execution thereof by Lessor. 3. No further approval, license, consent, authorization or withholding of objections is required from any federal, state or local governmental authority with respect to the entering into or performance by Lessee of the Lease Agreements and the transactions contemplated by the Lease Agreements. 4. Lessee has sufficient appropriations or other funds available to pay all amounts due under the Lease Agreements for the current fiscal year. 5. The interest payable to Lessor by Lessee under the Lease Agreements is exempt from federal income taxation pursuant to Section 103 of the Internal Revenue Code of 1986, as amended. 6. The entering into and performance of the Lease Agreements will not (i) conflict with, or constitute a breach or violation of, any judgment, consent decree, order, law, regulation, bond, indenture or lease applicable to Lessee, or (ii) result in any breach of, or constitute a default under, or result in the creation of, any lien, charge, security interest or other encumbrance upon any assets of Lessee or the Units (as defined in the Lease) pursuant to any indenture, mortgage, deed of trust, bank loan, credit agreement or other instrument to which Lessee is a party, or by which it or its assets may be bound. 7. No litigation or proceeding is pending or, to the best of my knowledge, threatened to, or which may, (a) restrain or enjoin the execution, delivery or performance by Lessee of the Lease Agreements, (b) in any way contest the validity of the Lease Agreements, (c) contest or question (i) the creation or existence of Lessee or its governing body or (ii) the authority or ability of Lessee to execute or deliver the Lease Agreements or to comply with or perform its obligations under the Lease Agreements. There is no litigation or proceeding pending or, to the best of my knowledge,threatened that seeks to or could restrain or enjoin Lessee from annually appropriating sufficient funds to pay the Lease Payments (as defined in the Lease) or other amounts contemplated by the Lease Agreements. In addition, I am not aware of any facts or circumstances which would give rise to any litigation or proceeding described in this paragraph. 8. The Units are personal property and, when subjected to use by Lessee, will not be or become fixtures under the laws of the State. 9. The authorization, approval and execution of the Lease Agreements, and all other proceedings related to the transactions contemplated by the Lease Agreements, have been performed in accordance with all applicable open meeting, public records, public bidding and all other applicable laws, rules and regulations of the State. 10. The appropriation of moneys to pay the Lease Payments coming due under the Lease and any other amounts contemplated by the LeaseAgreements does not and will not result in the violation of any constitutional, statutory or other limitation relating to the manner, form or amount of indebtedness which may be incurred by Lessee. 11. The Lessor will have a perfected security interest in the Units upon the filing of an executed UCC-1 or other financing statement at the time of acceptance of the Units with the Secretary of State for the State. SIGNATURE CITY OF BOZEMAN, MONTANA Name(Print): _____________________________________ Date:_____________________________________ Signature: _____________________________________ Address: _____________________________________ Title:__________________________________________________________________________ _____________________________________ Greg Sullivan City Attorney 57 CATERPILLAR INSURANCE COMPANY (CIC) SELECTION FORM US CAT INSURANCE SELECTION FORM 4635508 27/12/2023 03:51:51 PM Ref. 1882821 Before financing your equipment, you must arrange physical damage insurance on the equipment identified below. The insurance may be provided through an insurance agent or insurance company of your choice, provided the insurance company satisfies minimum financial requirements. As an alternative to obtaining your own insurance, you may elect to have your equipment insured under coverage arranged by Caterpillar Insurance Services Corporation, that has been designed specifically for the purchasers of Cat® equipment. Please complete this form if you elect to insure your equipment with Caterpillar Insurance Company (CIC). CIC Physical Damage Insurance Policy Summary Please note: This is only a brief description of the CIC Physical Damage Insurance Program. Contractual provisions contained in the policy will govern. Coverage CIC Physical Damage Insurance protects your equipment against physical damage losses, including collision, fire, theft, vandalism, upset or overturn, floods, sinking, earthquakes and other unfortunate acts of nature. The protection has been designed for owners of heavy equipment and provides superior benefits you most likely would not find in other plans. The CIC Physical Damage Insurance does include normal exclusions. Some important exclusions are wear and tear, rust, loss of income, war, nuclear damage, and mechanical breakdown, automobiles, watercraft, waterborne shipments, tires or tubes or mobile track belts damaged by blow-out, puncture, and road damage. Repairs When a covered loss occurs, this plan will pay for Cat® replacement parts on all your new or used Caterpillar equipment.On all equipment from other manufacturers, the plan will pay for comparable replacement parts. Transportation Your CIC plan will pay for round-trip transportation of covered damaged equipment to and from your Cat dealer’s repair facility, up to $2,500 limit. Rental Reimbursement The plan allows for rental costs up to $2,500 that you incur to rent similar equipment following a covered loss. You are automatically protected with up to $100,000 of coverage for damage to the similar equipment you rent. Claims In the event of a total loss, the policy will pay the greatest of the following: - The payoff value of the loan on the damaged parts or equipment as of the date of loss or - The actual cash value of that covered property; or - The cost of replacing that property with property of like kind and quality The policy will pay 10% of scheduled loss, up to a $10,000 maximum for debris removal. The policy will pay fire department service fees up to $5,000. Deductible $1,000 Construction and Agricultural Equipment Deductibles: $5,000 deductible all logging Equipment Customer Service If you have any questions or need additional details, see your Authorized Cat Dealer or call CIC toll free at 1-800-248-4228. You may also e-mail CIC at physicaldamage@cat.com POLICYHOLDER DISCLOSURENOTICE OF TERRORISM RISK INSURANCE ACT OF 2002 (as extended by the Terrorism Risk Insurance Extension Act of 2005, and as amended in 2007) You are hereby notified that under the Terrorism Risk Insurance Act, as amended in 2007, the definition of act of terrorism has changed. As defined in Section 102(1) of the Act: The term "act of terrorism" means any act that is certified by the Secretary of the Treasury - in concurrence with the Secretary of State, and the Attorney General of the United States - to be an act of terrorism; to be a violent act or an act that is dangerous to human life, property,orinfrastructure; to have resulted in damage within the United States, or outside the United States in the case of certain air carriers or vessels or the premises of a United States mission; and to have been committed by an individual or individuals as part of an effort to coerce the civilian population of the United States or to influence the policy or affect the conduct of the United States Government by coercion. Under your coverage, any losses resulting from certified acts of terrorism may be partially reimbursed by the United States Government under a formulaestablished by the Terrorism Risk Insurance Act, as amended in 2007. However, your policy may contain other exclusions, which might affect your coverage, such as an exclusion for nuclear events. Under the formula, the United States Government generally reimburses 85% of covered terrorism losses exceeding the statutorily established deductible paid by the insurance company providing the coverage. The Terrorism Risk Insurance Act, as amended, contains a $100 billion cap that limits U.S. Government reimbursement as well as insurers' liability for losses resulting from certified acts of terrorism when the amount of such losses exceeds $100 billion in any one calendar year. If the aggregate insured losses for all insurers exceed $100 billion, your coverage may be reduced. The portion of your premium that is attributable to coverage for terrorist acts certified under the Act is: $ 0.00 58 US CAT INSURANCE SELECTION FORM 4635508 27/12/2023 03:51:51 PM Ref. 1882821 APPLICATION FOR CIC PHYSICAL DAMAGE INSURANCE Model #Equipment Description Serial #VIN Value Including Total Tax Pymt Method-3 Total Premium Pymt Method-1 Finance Pymt 1. 140-15AWD Caterpillar Motor Grader EB300875 $307,903.19 $17,365.00 $3,957.41 1. 140-15AWD Caterpillar Motor Grader EB300876 $307,903.19 $17,365.00 $3,957.41 ___________________________________ Marsha Blaisdell, Authorized Insurance Producer 59 US CAT INSURANCE SELECTION FORM 4635508 27/12/2023 03:51:51 PM Ref. 1882821 Arranged by Caterpillar Insurance Services Corporation I understand that the total insurance premium for 60 months will be $34,730.00, which is $6946.00 per year based upon the total equipment value of $615,806.38. Method 1 I will finance the insurance premium, including finance charges, of $7,914.81 per scheduled equipment payment. The finance charge is calculated at 6.99% per annum on the total insurance premium covering the full term of the finance agreement. By choosing Method 1 and signing this document you are agreeing to finance the insurance along with the equipment payments with Caterpillar Financial Services Corporation. Method 2 I desire coverage for an initial 12 month term. I will pay the $6946.00 premium and return the payment with the signed equipment documents. Please make check payable to CIC. Method 3 I will pay the total premium and return the payment with the signed equipment documents. Please make check payable to CIC. Method 4 I decline Caterpillar Insurance. I elect to obtain my own commercial insurance on the equipment shown from an agent or insurance company of my choice. I understand that the quote I receive is not a binder of insurance. If I elect to obtain coverage from CIC, coverage will be effective in accordance with the terms and conditions of the issued Policy and that I may terminate the coverage at any time with advance written notice. I acknowledge that I have been notified that, under the TERRORISM RISK INSURANCE ACT of 2002 (as extended by the Terrorism Risk Insurance Extension Act of 2005), any losses caused by certified acts of terrorism under my policy will result in coverage under my policy that will be partially reimbursed by the United States as outlined in the attached policyholder disclosure notification. I also acknowledge I have been advised that, if I accept this insurance, an appointed licensed insurance producer will receive commission compensation. Customer Name: CITY OF BOZEMAN, MONTANA Dealer Name: TRACTOR & EQUIPMENT CO. Please note: If you would like a no obligation quote on your additional equipment, call 1-800-248-4228 extension 5754. Accepted By: _______________________________________ Name (PRINT): _______________________________________ Title:_______________________________________ Date:_______________________________________ x Jeff Mihelich City Manager 60 US CAT INSURANCE SELECTION FORM 4635508 27/12/2023 03:51:51 PM Ref. 1882821 Fraud Warning: Applicable in AL, AR, DC, LA, MD, NM, RI and WV: Any person who knowingly (or willfully)* presents a false or fraudulent claim for payment of a loss or benefit or knowingly (or willfully)* presents false information in an application for insurance is guilty of a crime and may be subject to fines and confinement in prison. *Applies in MD Only. Applicable in CO: It is unlawful to knowingly provide false, incomplete, or misleading facts or information to an insurance company for the purpose of defrauding or attempting to defraud the company. Penalties may include imprisonment, fines, denial of insurance and civil damages. Any insurance company or agent of an insurance company who knowingly provides false, incomplete, or misleading facts or information to a policyholder or claimant for the purpose of defrauding or attempting to defraud the policyholder or claimant with regard to a settlement or award payable from insurance proceeds shall be reported to the Colorado Division of Insurance within the Department of Regulatory Agencies. Applicable in FL and OK: Any person who knowingly and with intent to injure, defraud, or deceive any insurer files a statement of claim or an application containing any false, incomplete, or misleading information is guilty of a felony (of the third degree)*. *Applies in FL Only. Applicable in KS: Any person who, knowingly and with intent to defraud, presents, causes to be presented or prepares with knowledge or belief that it will be presented to or by an insurer, purported insurer, broker or any agent thereof, any written statement as part of, or in support of, an application for the issuance of, or the rating of an insurance policy for personal or commercial insurance, or a claim for payment or other benefit pursuant to an insurance policy for commercial or personal insurance which such person knows to contain materially false information concerning any fact materialthereto; or conceals, for the purpose of misleading, information concerning any fact material thereto commits a fraudulent insurance act. Applicable in KY, NY, OH and PA: Any person who knowingly and with intent to defraud any insurance company or other person files an application for insurance or statement of claim containing any materially false information or conceals for the purpose of misleading, information concerning any fact material thereto commits a fraudulent insurance act, which is a crime and subjects such person to criminal and civil penalties (not to exceed five thousand dollars and the stated value of the claim for each such violation)*. *Applies in NY Only. Applicable in ME, TN, VA and WA: It is a crime to knowingly provide false, incomplete or misleading information to an insurance company for the purpose of defrauding the company. Penalties (may)* include imprisonment, fines and denial of insurance benefits. *Applies in ME Only. Applicable in NJ:Any person who includes any false or misleading information on an application for an insurance policy is subject to criminal and civil penalties. Applicable in OR: Any person who knowingly and with intent to defraud or solicit another to defraud the insurer by submitting an application containing a false statement as to any material fact may be violating state law. Applicable in PR: Any person who knowingly and with the intention of defrauding presents false information in an insurance application, or presents,helps, or causes the presentation of a fraudulent claim for the payment of a loss or any other benefit, or presents more than one claim for the same damage or loss, shall incur a felony and, upon conviction, shall be sanctioned for each violation by a fine of not less than five thousand dollars ($5,000) and not more than ten thousand dollars ($10,000), or a fixed term of imprisonment for three (3) years, or both penalties. Should aggravating circumstances [be] present, the penalty thus established may be increased to a maximum of five (5) years, if extenuating circumstances are present, it may be reduced to a minimum of two (2) years. 61 INSURANCE SELECTION FORM-OUTSIDE INSURANCE CARRIER Form No. USINSUREOUTSIDE_610 Dealer Code: E400US Insurance Selection Form - Outside Carrier 4635508 27/12/2023 03:51:50 PM Ref. 1882821 Before funding your equipment, you must arrange physical damage insurance on the equipment identified below. The insurance may be provided through an insurance agent or insurance company of your choice, provided the insurance company satisfies minimum financial requirements. Physical Damage coverage must show that Caterpillar Financial Services Corporation has been named as loss payee for the equipment's replacement value. The deductible must be shown. Liability Coverage must be a minimum of $1,000,000 or combined coverage for bodily injury and property damage per occurrence. Caterpillar Financial Services Corporation must be named as additional insured. As an alternative to obtaining your own Physical Damage coverage, you may elect to have your equipment insured under coverage arranged by Caterpillar Financial Services Corporation designed specifically for the purchasers of Caterpillar equipment. If a quote is not included in your document package, please contact your Caterpillar Dealer, call 1-800-248-4228,or e-mail PhysicalDamage@cat.com. Please complete this form to provide contact information for your liability coverage, as well as your physical damage coverage if you did not elect Caterpillar Insurance for physical damage. Transaction Number:001-70130448 Dealer Name:TRACTOR & EQUIPMENT CO. Customer’s Name:CITY OF BOZEMAN, MONTANA Address:P.O. BOX 1230 BOZEMAN, MT 59771-1230 I have entered into the above agreement under which I am responsible for providing insurance against ALL RISKS of direct physical loss or damage for the actual cash value of the following equipment, subject to common exclusions such as damage caused by corrosion, rust, mechanical or electrical breakdown, etc. Model #Equipment Description Serial #VIN#Value Including Tax 1. 140-15AWD 2023 Caterpillar Motor Grader EB300875 $307,903.19 1. 140-15AWD 2023 Caterpillar Motor Grader EB300876 $307,903.19 _________________________________________________________________________________________ Insurance Agency Insurance Agent’s Name _________________________________________________________________________________________ Street Address _________________________________________________________________________________________ City State Zip _________________________________________________________________________________________ Agent’s Phone Number Fax Number E-mail Address TO CUSTOMER’S INSURANCE AGENT I hereby instruct you to add Caterpillar Financial Services Corporation as a Loss Payee for physical damage and as an Additional Insured for general liability: [ ] To my existing policy number(s)_____________________________________, which now provide the coverage required, or [ ] To a policy or policies which you are authorized to issue in the name listed above which will provide the coverage required. Signature _________________________________________ Name(Print) _________________________________________ Title _________________________________________ Date _________________________________________ PROCESSING OF THIS TRANSACTION MAY BE HELD PENDING RECEIPT OF THIS INFORMATION PLEASE FORWARD A COPY OF THE CERTIFICATE OR BINDER EVIDENCING COVERAGE TO: CATERPILLAR FINANCIAL SERVICES CORPORATION 2120 West End Avenue Nashville, TN 37203 PLEASE ATTACH A COPY OF THIS NOTICE TO PROOF OF INSURANCE 62 CUSTOMER INFORMATION VERIFICATIONContract Number 001-70130448 US Customer Information Verification Form 4635508 27/12/2023 03:51:50 PM Ref. 1882821 CUSTOMER INFORMATION CHANGES TO CUSTOMER INFORMATION The changes above apply to:Current Request for financing All active contracts TAX INFORMATION Tax Exempt** Non-Exempt Asset outside the City limits Yes ______ No _______ **A TaxExemption Certificateisrequired foralltaxexempt customer. If you are tax exempt – please enclose a current tax exemption certificate to be returned with your documents. AUTO PAY INFORMATION (Checking Account Information) I decline Auto Pay authorization at this time I request and authorize Caterpillar Financial Services Corporation ("Cat Financial") to begin debiting my account for the amounts due under the contract(s) indicated below, with debits made to my account and withdrawn by Cat Financial, provided my account has sufficient collected funds to pay the debit when presented. If my financial institution dishonors any debit for any reason, Cat Financial may issue another debit in substitution for the dishonored debit and will have no liability on account of a dishonored debit. I agree that Cat Financial's rights relating to each debit will be the same as if I had personally signed a check. I agree that I will be liable to make payment promptly, including any applicable late fees, if any debit is not paid, unless Cat Financial or its agents or affiliates are directly responsible for the nonpayment. I acknowledge that I may cancel this authorization at any time by written notice to Cat Financial, which notice will be effective 10 days after receipt; however, my cancellation of this authorization does not terminate, cancel or reduce my obligations under the contract(s). I understand that Cat Financial will not notify me in advance of any withdrawal and I agree to waive all pre-notification requirements in respect of all debits drawn under this authorization. Please use the information below to set up Auto Pay on: Bank Name Account Name (exactly as it appears on Check) Routing Number 9 digits Account Number 3-17 digits Re-Enter Account Number 3-17 digits Customer Name:CITY OF BOZEMAN, MONTANA Physical Address:P.O. BOX 1230 BOZEMAN, MT, 59771-1230 Mailing Address:P.O. BOX 1230 BOZEMAN, MT, 59771-1230 Equipment Location:VICINITY OF GALLATIN COUNTY BOZEMAN, MT, 59771 Business Phone:4065823200 Mobile Phone: E-mail Address:lduetsch@bozeman.net 63 US Customer Information Verification Form 4635508 27/12/2023 03:51:50 PM Ref. 1882821 CUSTOMER SIGNATURE The information above has been reviewed and is accurate to the best of my knowledge. For a joint account, all account holders must sign if more than one signature is required on checks issued against the account. _________________________________________ Name _________________________________________ Title _________________________________________ empty For questions or assistance with Auto Pay, or for information about your account, please contact Customer Service, 1-800-651-0567. Jeff Mihelich City Manager 64 Explanation of Content Contract Number 001-70130448 US Explanation of Content (GOV Lease - 8038G / 8038GC)4635508 27/12/2023 03:52:00 PM Ref.1882821 Thank you for selecting Caterpillar products and for allowing Caterpillar Financial Services Corporation to serve your financing needs. Included in this document package are all of the forms that will be needed for standard tax exempt lease purchase transactions. The forms have been designed to be clear, concise and user friendly. We have also provided a brief explanation of the purpose of each form. If you wish to discuss any of the forms or have any questions about any aspect of this transaction, we encourage you to contact your Caterpillar Dealer or Caterpillar Financial Services Corporation at 1- 866-263-3791 Option # 5. A. Governmental Equipment Lease-Purchase Agreement.The Governmental Lease-Purchase Agreement contains the terms that govern each transaction between us. It is the standard Caterpillar Financial Services Corporation tax exempt lease-purchase agreement, and provides that we will lease to you the equipment described therein pursuant to a full payout amortization schedule. A new Governmental Equipment Lease-Purchase Agreement will have to be signed in connection with each transaction. B. Lessee's Authorizing Resolution.The Authorizing Resolution is evidence you have taken the necessary governing body actions to approve the Governmental Equipment Lease-Purchase Agreement. Although the authorizing instrument is often a resolution, it may also take other forms such as an ordinance. We are agreeable to using your customary or standard form provided it contains specific approval for the lease-purchase agreement, designates persons who are authorized to sign on your behalf and either approves the document forms or delegates this authority to a named official C. Verification of Insurance.The Certificate of Insurance is intended to supply information regarding the insurance coverage for the equipment being lease-purchased. You will need to supply the requested information to us so we can verify coverage. D. Opinion of Counsel.An opinion of counsel is required in connection with each Governmental Equipment Lease-Purchase Agreement. The opinion is intended to confirm that you have complied with all open meeting laws, publication and notice requirements, procedural rules for governing body meetings, and any other relevant state or local government statutes, ordinances, rules or regulations. We would be unable to confirm compliance with these laws and regulations ourselves absent long delays and higher costs so we rely upon the opinion of your attorney since he/she may have been involved in the process to approve our transaction and is an expert in the laws and regulations to which you are subject. The opinion also confirms that you are an entity eligible to issue tax-exempt obligations and that the Governmental Equipment Lease-Purchase Agreement will be treated as tax-exempt as it is your obligation to ensure that you have complied with relevant tax law. E. Form of 8038G or GC.Form 8038 is required by the Internal Revenue Service in order to monitor the amount of tax-exempt obligations issued. You have to execute a Form 8038 for each Governmental Equipment Lease-Purchase Agreement. Whether a Form 8038 G or GC is required depends on the original principal amount of the Governmental Equipment Lease-Purchase Agreement. If the original principal amount isless than $100,000 Form 8038GC is filed with the IRS. If the original principal amount is $100,000 or more Form 8038G is filed with the IRS. Choose the appropriate 8038 form and complete according to IRS guidelines. Contact your TM or Sales Support Representative for assistance. IRS Form 8038G http://www.irs.gov/pub/irs-pdf/f8038g.pdf IRS Form 8038GC http://www.irs.gov/pub/irs- pdf/f8038gc.pdf This Explanation of Contents is prepared as an accommodation to the parties named herein. It is intended as an example of some of the documents that Caterpillar Financial Services Corporation, in its reasonable judgment, may require and is not intended to constitute legal advice. Please engage and use your own legal counsel. We understand that the laws of the various states are different so nothing herein shall be construed as a warranty or representation that the documents listed herein are the only documents that may be required in any particular transaction or that any particular transaction, if documented in accordance with this Explanation of Contents, will be a valid, binding and enforceable obligation enforceable against the parties named herein in accordance with the terms of the documents named herein. 65 Meeting Minutes US Meeting Minutes Request (GOV Lease - Purchase Deals)4635508 27/12/2023 03:52:01 PM Ref. 1882821 TRACTOR & EQUIPMENT CO. 1835 HARNISH BLVD BILLINGS, MT 59101-6293 Reference: CITY OF BOZEMAN, MONTANA We are requesting a copy of the minutes of the appropriation meeting during which the funds for this deal were allocated. A copy of this information is necessary to complete the documentation package and to fund the deal. Your ability to return a complete package will ensure timely payment to you. Thank you for your assistance. CATERPILLAR FINANCIAL SERVICES CORPORATION DOCUMENTATION DEPARTMENT 66 Caterpillar Financial Services Corporation US INVOICE (ADVANCE PAYMENT)4635508 27/12/2023 03:51:30 PM Ref. 1882821 INVOICE Page Date Invoice No. l 12/27/2023 001-70130448 CITY OF BOZEMAN, MONTANA P.O. BOX 1230 BOZEMAN, MT 59771-1230 Description Serial VIN Due Date Pmt. No.Amount (1) 2023 CATERPILLAR 140-15AWD MOTOR GRADER EB300876 Upon Receipt. 1 $39,889.47 WITHOUT THE APPROPRIATE TAX EXEMPTION CERTIFICATE, APPLICABLE SALES AND/OR USE TAX WILL BE CHARGED. PLEASE PAY THIS AMOUNT $ $39,889.47 Invoice No.Total Enclosed 001-70130448 - 1 $ CITY OF BOZEMAN, MONTANA P.O. BOX 1230 BOZEMAN, MT 59771-1230 Remit To: Caterpillar Financial Services Corporation 5th Floor Document Services Doc Specialist: TRACTOR & EQUIPMENT CO. 2120 West End Ave. Nashville, TN 37203 RETURN INVOICE AND CHECK FOR SPECIFIED PAYMENT(S) WITH SIGNED DOCUMENTS. Your check will be cashed by Caterpillar Financial Services Corporation (CFSC) upon receipt, but that act will not constitute acceptance by CFSC of the Loan, Lease or Schedule. If CFSC accepts and executes the Loan, Lease or Schedule, the proceeds of this check will be applied to the specified payments. If CFSC does not accept the Loan, Lease or Schedule, CFSC will return an amount equal to this check. 67 Caterpillar Financial Services Corporation US INVOICE (ADVANCE PAYMENT)4635508 27/12/2023 03:51:30 PM Ref. 1882821 INVOICE Page Date Invoice No. l 12/27/2023 001-70130448 CITY OF BOZEMAN, MONTANA P.O. BOX 1230 BOZEMAN, MT 59771-1230 Description Serial VIN Due Date Pmt. No.Amount (1) 2023 CATERPILLAR 140-15AWD MOTOR GRADER EB300875 Upon Receipt. 1 $39,889.47 WITHOUT THE APPROPRIATE TAX EXEMPTION CERTIFICATE, APPLICABLE SALES AND/OR USE TAX WILL BE CHARGED. PLEASE PAY THIS AMOUNT $ $39,889.47 Invoice No.Total Enclosed 001-70130448 - 1 $ CITY OF BOZEMAN, MONTANA P.O. BOX 1230 BOZEMAN, MT 59771-1230 Remit To: Caterpillar Financial Services Corporation 5th Floor Document Services Doc Specialist: TRACTOR & EQUIPMENT CO. 2120 West End Ave. Nashville, TN 37203 RETURN INVOICE AND CHECK FOR SPECIFIED PAYMENT(S) WITH SIGNED DOCUMENTS. Your check will be cashed by Caterpillar Financial Services Corporation (CFSC) upon receipt, but that act will not constitute acceptance by CFSC of the Loan, Lease or Schedule. If CFSC accepts and executes the Loan, Lease or Schedule, the proceeds of this check will be applied to the specified payments. If CFSC does not accept the Loan, Lease or Schedule, CFSC will return an amount equal to this check. 68 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 2022. MEETING DATE:January 23, 2024 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 2022. 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 an Agreed-Upon Procedures (AUP) engagement for compliance over the building code enforcement program. The AUP Engagement Letter and Service agreement for fiscal year 2022 is with the audit firm KCoe Isom, LLP. UNRESOLVED ISSUES:None. ALTERNATIVES:None. FISCAL EFFECTS:None, this engagement is included in the annual audit budget. Attachments: City of Bozeman 2023 KCoe Service Agreement (140775).pdf City of Bozeman AUP Engagement Letter 6.30.22 (140775).pdf Report compiled on: November 7, 2023 69 October 16, 2023 Aaron Funk City of Bozeman P.O. Box 1230 Bozeman, MT 59771-1230 1019 E Main Street, Suite 201 Bozeman, MT 59715 (406)556-6160 Dear Mr. Funk: This Agreement formalizes KCoe Isom, LLP’s (hereinafter “KCoe Isom,” “us,” “we,” “our”) engagement with The City of Bozeman (hereinafter ”you,” “your”) as we focus on delivering service to you. This Agreement confirms that we have agreed up front on the specific services we will provide and their worth to you—we believe that this helps position us both for success and provides the clarity you deserve. We have discussed your goals, needs, and wants with you to come to this Agreement. We intend to continue to engage in quality discussions with you throughout your service period to stay on track with your changing needs or shifting goals. Any modifications to our services based on these discussions will be confirmed in writing via an amendment to this Agreement. This agreement will cover services provided between (01/01/2023 through 12/31/2023). Professional Services KCoe Isom, LLP will perform the following services for the period listed above: June 30, 2022 Building Codes agreed-upon procedures We reserve the right to bill at our hourly rate for work performed by us that is outside the scope of this Agreement. Unlimited Access KCoe Isom provides unlimited access to the intellectual capital of our firm. This access enables you to regularly exchange ideas—by phone, email or in meetings—related to the services you selected, as well as receive initial consultations regarding issues or concerns that arise in the future, all at no additional cost to you. If work outside of that initial discussion (“homework” or “follow-on work”) is merited and desired by you, we will discuss it as a new project, before the work is performed. Payment Terms This documents our understanding that you agree to pay KCoe Isom the following amounts on the following dates: 70 Aaron Funk City of Bozeman 10/16/2023 Page 2 Agreed Payments and Timing The fee was included in the 6/30/2022 financial statement audit fee and contract. There is no separate fee for the agreed-upon procedures engagement. Your payment timing and terms are part of the flexibility we offer. This payment schedule has been agreed in advance so that you may budget and we can both plan for the timing of the work. The payment timing above may be roughly correlated to heavier work periods, but payment timing is not shifted if work is delayed at your request. The outstanding balance of amounts billed as payable within thirty (30) days from the date of each bill. KCoe Isom reserves the right to halt work when balances remain unpaid for sixty (60) days. Any balances remaining unpaid after thirty (30) days will be assessed a 1-1/2% finance charge per month until paid in full. If a bill remains unpaid for a period of more than ninety (90) days, KCoe Isom reserves the right to terminate services and will seek to collect the outstanding amounts as permitted by law. If our work is suspended or terminated, you agree that we will not be responsible for your failure to meet governmental and other deadlines, for any penalties or interest that may be assessed against you resulting from your failure to meet such deadlines, and for any other damages (including but not limited to CONSEQUENTIAL, INDIRECT, LOST PROFITS, OR PUNITIVE DAMAGES) incurred as a result of the suspension or termination of our services. As described in provision 2 of Attachment A, invoices for attest services will be issued from KCoe Isom, LLP while invoices for non-attest services may be issued from Pinion, however, in no event will you be double charged for the same services. If you have any questions, comments, or issues with any bill we submit to you for payment, we require that you notify us within ten (10) days. After the 10-day period has lapsed, the billing will be understood as accepted and payment will be required to be made in accordance with the other provisions of this Agreement. Automatic Payments For convenience and administrative ease, KCoe Isom can receive payments through the ACH system. We’re happy to assist you if you wish to establish automatic payments. Out-of-Pocket Expenses Our price does not include third-party costs of any entity formation, appraisal fees, attorney fees, trustee’s fees, or any other fees unless expressly agreed to by KCoe Isom. Our price includes expenses for travel, lodging, and out-of-pocket expenses related to onsite meetings at your operations. 71 Aaron Funk City of Bozeman 10/16/2023 Page 3 The price we quoted considers the following: •Information provided by you is delivered on time and complete to the degree indicated in our Service Options. •Your key management, finance, or accounting team members don’t change during our service period. •No newly arising or undisclosed complexities or significant transactions are occurring within your business impacting the service period. •No unspecified revisions to prior work performed by other service providers are discovered to be necessary before we can perform our agreed services. •No new tax or other reporting requirements are introduced between now and the end of our service period. KCoe Isom reserves the right to revise our pricing in light of the changing circumstances, above. We will discuss any revisions with you before proceeding with unforeseen work related to changes in the conditions above. Service and Price Guarantee As we approach the last 30-60 days of our service period, we will ask you to evaluate our performance against your expectation when we entered into this Agreement. If your experience is different from your original expectation, you have the option to adjust the price at your sole discretion, either by receiving a refund of a portion of the fees if we did not meet your expectations, or paying us a bonus if we exceeded your expectations. To maintain KCoe Isom’s professional independence as an auditing firm, this satisfaction guarantee cannot apply to the results or the opinions expressed by KCoe Isom for an Audit, Compilation, or Review. This satisfaction guarantee does not apply to the results of services performed under the U.S. Statements on Standards for Attestation Engagements, including but not limited to, applying agreed upon procedures or Compilations of prospective financial information, or the results of any other service for which professional standards or law require KCoe Isom to be "independent." Termination Unless we terminate this Agreement sooner, in accordance with these terms, final payment and the Agreement’s expiration date will be considered fulfillment of your expectations and the end of this Agreement. Either party may terminate this Agreement at any time, for any reason, with ten (10) days written notice to the other party, and any unpaid services outstanding at the date of termination are to be paid in full within ten (10) days of termination. If the above adequately sets forth your understanding of our mutual responsibilities, please authorize this Agreement and return it to our office. An extra copy is attached for you to keep. Please do not hesitate to contact us if you have any questions. We truly appreciate the opportunity to serve you. 72 Aaron Funk City of Bozeman 10/16/2023 Page 4 KCoe Isom, LLP By: ________________________________ Jessica Van Voast ACCEPTED AND ACKNOWLEDGED: The undersigned hereby acknowledges and agrees to this Agreement, the referenced Project Summary, and all of the additional provisions on Attachment A and represents that they have the full authority to bind all entities and/or individuals listed below. THIS AGREEMENT IS A CONTRACT AND CONTAINS A BINDING ARBITRATION PROVISION WHICH MAY BE ENFORCED BY THE PARTIES. ______________________________________ ________________________________ Client Name Date City of Bozeman 73 Attachment A - 1 ATTACHMENT A ADDITIONAL PROVISIONS This Attachment A, along with Project Summary document and this Agreement to which it is attached are, collectively, this “Agreement.” KCoe Isom, LLP (“KCoe Isom”) and Pinion, LLC (“Pinion”) practice as an alternative practice structure in accordance with the AICPA Code of Professional Conduct and applicable law, regulations, and professional standards. KCoe Isom is a licensed independent CPA firm that provides attest services to its clients, and Pinion and its subsidiary entities provide tax and business consulting services to their clients. Pinion and its subsidiary entities are not licensed CPA firms. The entities falling under the Pinion brand are independently owned and are not liable for the services provided by any other entity providing services under the Pinion brand. Our use of the terms “our firm” and “we”, “our” and “us” and terms of similar import denote the alternative practice structure conducted by KCoe Isom and Pinion and their respective subsidiaries and affiliates. 1.Services. You understand and agree that our firm’s services frequently include advice and recommendations, but all decisions in connection with the implementation of the advice and recommendations shall be your responsibility. In connection with our services, our firm, and its subsidiaries, affiliates, members, associates, employees, or agents shall be entitled to rely on all representations, decisions, and approvals made by you. 2.Alternative Practice Structure. KCoe Isom has a contractual arrangement with Pinion, whereby Pinion provides KCoe Isom with professional and support personnel, as well as administrative services, to perform professional services on behalf of KCoe Isom. Pinion is not a licensed CPA firm. KCoe Isom and Pinion have reasonable safeguards for the protection of your confidential information and shall comply with the Confidentiality terms herein. KCoe Isom shall at all times remain responsible for any attest services, and for the Pinion employees that perform such attest services. All invoices for attest services shall be issued solely from KCoe Isom. 3.Services not Completed by Our Firm. The Agreement does not extend to any services not provided by our firm. In the course of achieving the intended outcomes of the services described in the Agreement, we may refer you to other supplemental service providers; however, such referrals are provided as a courtesy only and you are not obligated in any way to work with the specific providers we refer. You understand that when you separately engage supplemental service providers referred by us or not (“Separately Engaged Providers”), unless specifically engaged in writing to do so, our firm shall have no obligation to oversee, supervise, or determine the quality of the work performed by Separately Engaged Providers and you expressly agree that our firm will not be held responsible in any way as it relates to their work product; further, our firm shall not be held responsible in any way for any services we perform that fail to meet intended outcomes as a result of relying on work completed by Separately Engaged Providers. 74 Attachment A - 2 4.Client Information and Confidentiality. In accordance with the AICPA Code of Professional Conduct and applicable federal, state and local rules, our firm will not disclose your confidential client information without your consent, except that our firm shall be permitted to disclose confidential client information (i) to any government agency or regulatory body to the extent and in the form or manner necessary or required to comply with any rule, regulation or order of such government agency or regulatory order, or (ii) pursuant to subpoena or other legal process. We use appropriate safeguards, policies and procedures to maintain the confidentiality of confidential client information. You hereby consent to our sharing your information with our firm for the purpose our performing the Services for which we are engaged. It is expressly understood that disclosure of your information among our firm will be limited to such information that is required for us and our employees to provide the Services covered by this Agreement. In the event our firm uses third-party service providers to assist in providing professional services, we may share confidential client information with those service providers. You hereby consent to disclosure of confidential client information to third-party service providers for the purpose of the third-party service provider assisting with the services provided pursuant to this Agreement. Our firm may transmit or receive information through electronic means, including through our firm’s secure portal. You shall at all times comply with the terms of use of our firm’s portal and shall only permit authorized users to access information through the portal. In the event that you create one or more user accounts to access documents transmitted through the portal, you shall notify us to disable any user account for which an individual(s) is no longer authorized to access your information transmitted through our client portal. You are solely responsible for maintaining their books and records and should not rely on us as your record- keeper or repository for any final work product for which our firm has been engaged. You agree to retrieve final work product from the portal within a reasonable period of time after the conclusion of this Agreement. We are committed to protecting the confidential and personal information entrusted to it and to ensuring that its vendors comply with applicable privacy laws. 5.Third-Party Service Providers or Subcontractors. In the interest of enhancing our availability to meet your professional service needs while maintaining service quality and timeliness, we may use a third-party service provider to assist us. As the paid provider of professional services, our firm remains responsible for exercising reasonable care in providing such services, and our work product will be subjected to our firm's customary quality control procedures. The use of this assistance may require the provision of your confidential information to a third-party service provider located outside the United States. We require our third-party service providers to have established procedures and controls designed to protect client confidentiality and maintain data security. By signing this Agreement, you are consenting to this disclosure and the duration of your consent will last so long as our firm is engaged. You may opt out from this disclosure by informing us of your request in writing. Opting out of the disclosure to third-party service providers or subcontracts may impact price or cost estimates previously provided to you by us. 75 Attachment A - 3 6.Information and Data. You shall be responsible for all financial information and statements provided with respect to any services performed hereunder. Our firm shall be entitled to assume, without independent verification, that all representations, assumptions, information and data supplied by you and your representatives will be complete and accurate to the best of your knowledge. Our firm may use information and data furnished by others; however, we shall not be responsible for, and we shall provide no assurance regarding, the accuracy of any such information or data. Our firm shall not assume any responsibility for any financial reporting with respect to the services provided hereunder, except as specifically provided. This paragraph shall not apply to the following services: Audits of Financial Statements, Reviews of Financial Statements, Compilations of Financial Statements, Services under the U.S. Statements on Standards for Attestation Engagements, including but not limited to, applying Agreed Upon Procedures or Compilations of Prospective Financial Information, or any other service for which professional standards or law require KCoe Isom to be "independent." 7.Tax Planning and Preparation. If it is included in the scope of services, tax planning and tax preparation will be done under state and federal law existing at the time services are delivered. Both federal and state laws are subject to change and subject to new and different interpretations. Tax planning and/or positions taken related to tax return preparation may be subject to contest by the Internal Revenue Service or other taxing authorities. Consequently, our firm does not guarantee any specific tax result. You should not rely on any advice from our firm that has not been issued in final form in writing or by electronic mail. 8.Legal Matters. Our firm is not licensed to practice law and we shall have no responsibility to address any legal matters or questions of law, subject to KCoe Isom’s potential responsibilities in paragraph 6 above. 9.Third Parties and Internal Use. Except as otherwise agreed, all services hereunder shall be solely for your internal purposes and use, and this Agreement does not create privity or any legal relationship or obligation between our firm and any person or party other than you (“Third Party”). This Agreement is not intended for the express or implied benefit of any unauthorized Third Party. In order to protect our firm from any unauthorized reliance or claims, you further agree that the advice, opinions and reports issued by our firm shall not be distributed, made available, circulated or quoted to or used by any Third Party without our prior written consent. However, nothing in this paragraph shall be construed as limiting or restricting disclosure of a transaction or any significant tax feature thereof for purposes of §6110, §6111, and §6112 of the Internal Revenue Code, as amended from time to time. This paragraph shall not apply to the following services: Audits of Financial Statements, Reviews of Financial Statements, Compilations of Financial Statements, Services under the U.S. Statements on Standards for Attestation Engagements, including but not limited to, applying Agreed Upon Procedures or Compilations of Prospective Financial Information, or any other service for which professional standards or law require KCoe Isom to be "independent." 76 Attachment A - 4 10.Foreign Owners and Accounts. If you have foreign owners, accounts, or activities, you may be required to file supplemental forms that carry substantial failure-to-file penalties if not timely filed. We emphasize the importance of notifying us if you are a party to international transactions. If we determine you must file additional forms with your federal and/or state tax return to report these activities, we may charge additional fees for this service. We will discuss this matter with you before proceeding. The terms of this Agreement shall apply to any current-year foreign asset reporting. If reporting for multiple years is necessary, a separate engagement letter will be provided. If you have an interest in or signature authority for a foreign financial account, it is your responsibility to provide us with this information so we can determine if separate reporting is required. If we determine separate reporting of foreign financial accounts is required, we may charge additional fees for this service. We will discuss this matter with you before proceeding. The terms of this Agreement shall apply to any current-year foreign financial account reporting. If reporting for multiple years is necessary, a separate engagement letter will be provided. 11.E-mail Communication. In connection with this Agreement, we may communicate with you or others via e-mail transmission. As e-mails can be intercepted and read, disclosed, or otherwise used or communicated by a third party, or may not be delivered to each of the parties to whom they are directed and only such parties, we cannot guarantee or warrant that e-mails from us and other personnel will be properly delivered and read only by the addressee. Therefore, the parties to this Agreement specifically disclaim and waive any liability or responsibility whatsoever for intercepted, disclosed or communicated e-mail transmissions, or with respect to the unauthorized use or failed delivery of e-mails transmitted in connection with the performance of this Agreement. All parties to this Agreement also specifically disclaim and waive, and expressly acknowledge and agree, that they shall have no liability or responsibility whatsoever for any loss or damage to any person or entity, resulting in whole or in part, from the use of e-mail transmissions, including, without limitation, any consequential, incidental, direct or indirect or special damages, such as loss of sales or anticipated profits or disclosure or communication of confidential or proprietary information. 12.Independent Contractor. Our firm and you acknowledge that the relationship between the parties to this Agreement is exclusively that of an independent contractor and that our firm's obligations to you are exclusively contractual in nature. This Agreement does not create an agency, employment, partnership, joint venture, trust, or other fiduciary relationship between the parties. Neither party shall have the right to bind the other to any Third Party nor otherwise act in any way as a representative or agent of the other, except as otherwise agreed in writing between the parties. 13.Management Responsibilities. You agree to accept responsibility for the results of services being provided and agree to perform the following functions in connection with this Agreement: a)Make all management decisions and perform all management functions. b)Designate a competent individual to oversee the services. c)Evaluate the adequacy and results of the services performed. d)Establish and maintain internal controls, including monitoring ongoing activities. 77 Attachment A - 5 14.Assignment. Neither party will assign this Agreement, in whole or in part, without the prior written consent of the other party, which written consent will not be unreasonably withheld. However, we reserve the right to assign all or any of its rights, title, and interests in and to this Agreement to any of its subsidiaries or affiliates, or to any of its Insurers, in accordance with any policies of insurance maintained by our firm, except for agreements to provide attest services entered into by KCoe Isom which shall not be assigned to Pinion or any of Pinion’s subsidiaries or affiliates. 15.Dispute Resolution Procedure. If any dispute, controversy or claim of any kind arises in connection with the performance or breach of this Agreement, either party may, upon written notice to the other party, request mediation. The parties shall employ the mediation rules and procedures of the American Arbitration Association (“AAA”) in effect at the time of the mediation and shall conclude the mediation within sixty (60) days from receipt of the written notice unless extended by mutual consent. If mediation fails, the dispute, controversy, or claim shall be settled by binding arbitration. The proceeding shall be governed by the law and provisions of the state in which the proceeding is to take place and conducted in accordance with the Rules for Professional Accounting and Related Disputes of the American Arbitration Association (“The AAA Rules”) in effect at the time of the arbitration. The parties acknowledge that this Agreement evidences a transaction involving interstate commerce. Notwithstanding the provision in the preceding paragraph with respect to applicable substantive law, any arbitration conducted pursuant to the terms of this Agreement shall be governed by the Federal Arbitration Act (9 U.S.C., Secs. 1-16). The award issued by the arbitration panel may be confirmed in a judgment by any federal or state court of competent jurisdiction. Unless the arbitration is being conducted pursuant to the AAA's expedited procedures, such arbitration shall be conducted before a panel of three neutral arbitrators, selected pursuant to The AAA Rules, at least one of whom shall be a Certified Public Accountant. The arbitration panel shall have no authority to award either party non-monetary or equitable relief, and any monetary award shall not include punitive damages. Any proceeding under this paragraph 15 shall take place in the city in which our firm’s office providing the relevant services exists unless the parties agree to a different location. Each party shall pay their own costs and shall share equally the fees and expenses of the mediator and/or the AAA and the arbitrators. The confidentiality provisions applicable to mediation shall also apply to arbitration. 16.Limitation of Liability. Our firm’s liability for all claims, damages, and costs arising from this engagement is limited to the total amount of fees paid by you to our firm for services rendered under this Agreement. Notwithstanding anything to the contrary in this Agreement, our firm shall not be liable for any LOST PROFITS, INDIRECT, SPECIAL, INCIDENTAL, PUNITIVE OR CONSEQUENTIAL DAMAGES of any nature. 78 Attachment A - 6 17.Governing Law and Severability. This Agreement shall be governed by, and construed in accordance with, the laws in the State in which our firm’s office providing the relevant services exists (without giving effect to the choice of law principles thereof). If any provision of this Agreement is found by a court of competent jurisdiction to be unenforceable, such provision shall not affect the other provisions, but such unenforceable provision shall be deemed modified to the extent necessary to render it enforceable, preserving to the fullest extent permissible the intent of the parties set forth in this Agreement. The parties acknowledge and agree that this Agreement allocates risk between them as authorized by any applicable law and that the amount of the fees charged for the services reflects this allocation of risk and other limitations of liability contained in this Agreement. If any remedy hereunder is determined to have failed of its essential purpose, all limitations of liability and exclusion of damages set forth in this Agreement will remain in full force and effect. 18.Entire Agreement. The Agreement and any separate Engagement Letter related to the subject matter herein (“Engagement Letter”), set forth the entire agreement between the parties with respect to the services described in the Agreement, superseding all prior agreements, negotiations or understandings, whether oral or written, with respect to such subject matter. To the extent that a any provisions are in conflict, the order of priority shall be as follows: Engagement Letter, Attachment A, this Agreement and the related signed Service Options document, paired. This Agreement may not be changed, modified or waived in whole or part except by an instrument in writing signed by both parties. 79 October 16, 2023 Management and City Commissioners City of Bozeman PO Box 1230 Bozeman, MT 59771-1230 1019 E. Main Street Suite 201 Bozeman, MT 59715 (406)556-6160 Dear Management and City Commissioners: This letter sets forth our understanding for applying agreed-upon procedures to the State Building Codes and Building Code Enforcement Program expenditures, collections, permits, vehicle maintenance allocation, and administrative cost allocation of City of Bozeman (the City) as of or for the year ended June 30, 2022. The City is responsible for complying with the financial related statutes and administrative rules relating to the state building code enforcement program. We understand the engagement is required in accordance with Administrative Rule (ARM) 24.301.208. This engagement is solely for the purpose of reporting our findings regarding the results of the procedures performed as compared to the prescribed procedures pursuant to the State of Montana Building Code Division. This report is intended for use by the City, the Montana State Department of Labor and Industry, Building Codes Bureau, and is not 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. We will apply the following procedures: a)Determine that 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 fiscal year. Based on the City’s accounting records, present a schedule of revenues, expenditures, and changes in fund balance of the Building Code Enforcement Fund for the fiscal year in Schedule A. b)Compare the financial information included in the “Fiscal Report” submitted to the State Building Codes Bureau to corresponding information in the City’s accounting records and verify that the information was the same. c)From selected building permit applications, compare permit fees charged to the permit fee schedule established by the City and approved by the State Building Codes Bureau, and verify that the fees were the same. d)From selected building permit applications, compare the total building permit fee paid to the amount credited to the Building Code Enforcement Program, and verify that amounts agreed and that no portion of the fee was diverted to other functions of the government. 80 Management and City Commissioners City of Bozeman October 16, 2023 Page 2 e) Examine selected expenditures and other charges made from Building Code Enforcement Program-related fees and 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 “g” and “h” below). (“Fixed charges” and prior period adjustments, if any, are itemized in Schedule B). f) Examine selected expenditures from the Building Code Enforcement Program and determine that no 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 of the Building Code Enforcement Program. If so, obtain documentation from the government that supports the performance of these direct services and that documents that these costs were properly charged to the Building Code Enforcement Program for specifically allowable services. (The costs related to fire departments, planning, zoning, or other activities are reported in detail in Schedule B). g) If indirect costs were allocated to the Building Code Enforcement Program, verify that 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 verify that indirect costs waived for any other proprietary fund of the City were also waived for the Building Code Enforcement Program. (Total indirect costs are itemized in Schedule B). h) If indirect costs were charged to the Building Code Enforcement Program, verify that they were limited to those costs allowed under 2 CFR Part 200. i) If there are transfers out of the Building Code Enforcement Program Fund, obtain detailed documentation from the City that describes the purposes and eventual uses of these transfers, and verify that these purposes and uses are in accordance with allowable expenditures, as addressed in the procedures performed above. (Transfers are itemized in Schedule B). j) Verify 0.5% of 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. k) Based on the financial information presented in Schedule A, determine whether the reserve account (fund balance) exceeded the amount needed to support the Building Code Enforcement Program for 12 months. If so, verify that the City had taken steps to reduce permit fees. 81 Management and City Commissioners City of Bozeman October 16, 2023 Page 3 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 (AICPA) and, if applicable, the standards applicable to attestation engagements contained in Government Auditing Standards issued by the Comptroller General of the United States, and/or any other standards or requirements to be followed. 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 City 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. As part of our engagement, we will request from management and, when appropriate, those charged with governance, written confirmation concerning representations made to us in connection with the agreed upon procedures. We will not assume management responsibilities on behalf of the City. However, we will provide advice and recommendations to assist management of the City in performing its responsibilities. Professional standards prohibit us from being the sole host and/or the sole storage for your financial and nonfinancial 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. With respect to any nonattest services we perform, the City’s management is responsible for: (a) making all management decisions and performing all management functions; (b) assigning a competent individual to oversee the services; (c) evaluating the adequacy of the services performed; (d) evaluating and accepting responsibility for the results of the services performed; and (e) establishing and maintaining internal controls, including monitoring ongoing activities. Our responsibilities and limitations with respect to the nonattest services include: (a) performing the services in accordance with the applicable professional standards; (b) performing only nonattest services that we are engaged to perform; and (c) reserving the right to refuse to do any procedure or take any action that could be construed as making management decisions or assuming management responsibilities, including determining account coding and approving journal entries. 82 Management and City Commissioners City of Bozeman October 16, 2023 Page 4 KCoe Isom, LLP (KCoe Isom) practices as an alternative practice structure in accordance with the AICPA Code of Professional Conduct and applicable law, regulations and professional standards. KCoe Isom is a licensed CPA firm that provides attest services to its clients. KCoe Isom has a contractual arrangement with Pinion, LLC (Pinion) whereby Pinion provides KCoe Isom with professional and support personnel, as well as administrative services, to perform professional services on behalf of KCoe Isom. Pinion is not a licensed CPA firm. KCoe Isom and Pinion have commercially reasonable safeguards for the protection of client confidential information and shall comply with the confidentiality terms herein. KCoe Isom shall at all times remain responsible for the services, and for the Pinion employees that perform the services. KCoe Isom may transmit or receive information through electronic means, including through the firm’s secure portal. You shall at all times comply with the terms of use of KCoe Isom’s portal and shall only permit authorized users to access information through the portal. In the event that you create one or more user accounts to access documents transmitted through the portal, you shall notify KCoe Isom to disable any user account for which an individual(s) is no longer authorized to access client information transmitted through the KCoe Isom client portal. You agree to retrieve final work product from the portal within a reasonable period of time after the conclusion of the engagement. The firm’s secure portal will be deleted within a reasonable period of time after the final work product has been delivered. Our firm may transmit confidential information that you provided us to third parties in order to facilitate delivering our services to you. We have obtained confidentiality agreements with all our service providers to maintain the confidentiality of your information and 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. Our firm is committed to protecting the confidential and personal information entrusted to it and to ensure that third parties comply with applicable privacy laws. We will remain responsible for the work provided by any third-party service providers used under this agreement. By your signature below, you consent to having confidential information transmitted to entities outside the firm. Please feel free to inquire if you would like additional information regarding the transmission of confidential information to entities outside the firm. During the course of the engagement, we may communicate with you or with your personnel via fax or e-mail, and you should be aware that communication in those mediums contains a risk of misdirected or intercepted communications. 83 Management and City Commissioners City of Bozeman October 16, 2023 Page 5 The attest documentation for this engagement is the property of KCoe Isom and constitutes confidential information. KCoe Isom utilizes appropriate safeguards, policies and procedures to maintain the confidentiality of confidential client information. You hereby consent to KCoe Isom sharing client information with Pinion for the purposes of supporting KCoe Isom in performing the services for which KCoe Isom is engaged. It is expressly understood that disclosure of client information to Pinion will be limited to such information that is required for Pinion and its employees to provide the services covered by this engagement letter. However, we may be requested to make certain attest documentation available to Montana State Department of Labor and Industry – Building Codes Bureau (the local building code enforcement program) pursuant to authority given to it by law or regulation, subpoena or other legal process, or to peer reviewers. If requested, access to such attest documentation will be provided under the supervision of KCoe Isom’s personnel. Furthermore, upon request, we may provide copies of selected attest documentation to the local building code enforcement program. The Montana State Department of Labor and Industry – Building Codes Bureau may intend, or decide, to distribute the copies of information contained therein to others, including other governmental agencies. We expect to begin our engagement in October 2023 and issue our report no later than October 31, 2023. Jessica Van Voast is the engagement principal for the services specified in this letter. Responsibilities include supervising KCoe Isom’s services performed as part of this engagement and signing or authorizing another qualified firm representative to sign the agreed-upon procedures report. Our fees for the services set forth in this letter are included in the June 30, 2022 financial statement audit fees. 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 work papers for a period of eight years. This agreement is binding upon, and inures to the benefit of, the parties and their respective permitted successors and assigns. 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. If you have any questions, please let us know. 84 Management and City Commissioners City of Bozeman October 16, 2023 Page 6 Engagement File Room - 140775 We appreciate the opportunity to be of service to you and look forward to working with you and your staff. Very truly yours, KCoe Isom, LLP JVV:GGG:enc Enclosures Acknowledged: City of Bozeman Signature Title Date 85 86 Memorandum REPORT TO:City Commission FROM:Jon Henderson - Strategic Services Director Mike Gray - Facilities Superintendent Max Ziegler - Facilities Project Coordinator SUBJECT:Authorize City Manager to Sign Professional Services Agreements for Facilities Contractors Term Contracts MEETING DATE:January 23, 2024 AGENDA ITEM TYPE:Agreement - Vendor/Contract RECOMMENDATION:Authorize the City Manager to sign Professional Services Agreements for Facilities Contractors Term Contracts STRATEGIC PLAN:4.3 Strategic Infrastructure Choices: Prioritize long-term investment and maintenance for existing and new infrastructure. BACKGROUND:The Facilities Dept. regularly uses general contractors and specialty trades contractors for projects related to facilities management and maintenance. To attract a wider pool of contractors the Facilities Dept. published an RFQ for contractors of all trades on October 21st, 2023, with the intention of placing qualified respondents on a preferred contractor list and establishing agreements to provide contractor services at pre-negotiated rates. This will help minimize procurement delays in responding to future facilities projects as they arise. When responding to emergency maintenance needs, procurement delays can significantly increase building downtime resulting in impacts to the public and staff. Maintaining term contracts with general and specialty trade contractors positions the City to be able to adequately respond to facilities needs while also building stronger contractor relationships. A recent example of the benefits of having term contracts with general contractors and trade contractors was the 2022 emergency repairs at the Swim Center, where a general contractor under a term contract was able to immediately start work on the repairs without procurement delays. This reduced the duration of the facility closure for repairs by nearly two months, reducing impacts to the public and City operations. The contractors listed below responded to the Request for Qualifications and were evaluated by the review committee to be qualified to provide the services detailed in their statements of qualifications and their proposals. Term Contract proposals were extended to all responding contractors who 87 were evaluated as 'qualified' by the review committee. Contracts included in this item: Constructive Solutions - General Contractor, Architect Elkhorn Commissioning - Building Commissioning Services 3B Rehabilitation Services dba No Dig Team - Pipe Inspection and Lining Door Guys LLC - Pedestrian Door Maintenance and Service TD&H - Engineering, Consulting, Inspections, Materials Testing Standard Electric - Electrician Yellowstone Pavement Solutions - Pavement Maintenance, Service, and Painting Bozeman Operations - General Contractor S. Conley Sales Inc. - HVAC Sales/Install and Service UNRESOLVED ISSUES:None at this time. ALTERNATIVES:As suggested by City Commission FISCAL EFFECTS:Services provided under these term contracts will be provided at the pre- negotiated rates as stated in the Scope of Services for each contract. Services are to be provided on an 'as-needed' basis and individual project expenses are to be project specific with projects initiated via task order. Total contracted project costs are to be $79,999 or less per the City of Bozeman Purchasing Policy. Attachments: PSA - Master Task Order - 3B Rehabilitation Services - Compiled.pdf PSA - Master Task Order - Armitage Electric - Compiled.pdf PSA - Master Task Order - Bozeman Operations - Compiled.pdf PSA - Master Task Order - Constructive Solutions Inc - Compiled.pdf PSA - Master Task Order - Door Guys - Compiled.pdf PSA - Master Task Order - Elkhorn Commissioning - Compiled.pdf PSA - Master Task Order - S Conley Sales - Compiled.pdf PSA - Master Task Order - Standard Electric - Compiled.pdf PSA - Master Task Order - TD&H Engineering - Compiled.pdf PSA - Master Task Order - Yellowstone Pavement Solutions - Compiled.pdf Report compiled on: January 17, 2024 88 Professional Services Master Task Order Agreement for [____] Services Page 1 of 15 PROFESSIONAL SERVICES MASTER TASK ORDER AGREEMENT THIS AGREEMENT is made and entered into this _____ of January, 2024, 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, 3B Rehabilitation Services LLC dba No Dig Team, 920 Peosta Ave., Helena, MT 59601, hereinafter referred to as “Contractor.” In consideration of the mutual covenants and agreements herein contained, the receipt and sufficiency whereof being hereby acknowledged, the parties hereto agree as follows: 1. Purpose: City agrees to enter into this agreement with Contractor to provide Pipe Inspection and Repair Services as requested by the City through issuance of individual, consecutively numbered Task Orders on an as needed and requested basis. 2. Term/Effective Date: This Agreement is effective upon the date of its execution and will expire on January 1, 2029, unless extended or terminated as specifically provided for within the agreement. 3. Scope of Work: Contractor will perform the work and provide the services in accordance with the requirements of the Scope of Services. The Contractor will perform the specific services and schedule as mutually agreed upon by City and Contractor and included in each individual Task Order executed under the authority of this Agreement. Task Orders shall be in a format similar to EXHIBIT B, attached and made part of this Agreement. For conflicts between this Agreement and the Scope of Services the Agreement governs. 4. Payment: The terms of compensation to Contractor shall be agreed upon and included in each Task Order. The task order amount shall be based on the rates specified in EXHIBIT A. City agrees to pay Contractor the amount specified in the individual Task Orders. Any alteration or deviation from the described services that involves additional costs above the Agreement amount will be performed by Contractor after written request by the City, and will become an additional charge over and above the amount listed in EXHIBIT A. The City must agree in writing upon any additional charges. 89 Professional Services Master Task Order Agreement for [____] Services Page 2 of 15 5. Contractor’s Representations: To induce City to enter into this Agreement, Contractor makes the following representations: a. Contractor has familiarized itself with the nature and extent of this agreement, the Scope of Services and with all local conditions and federal, state and local laws, ordinances, rules, and regulations that in any manner may affect cost, progress or performance of the Scope of Services. b. For each individual Task Order, Contractor will familiarize itself with the nature and extent of the assignment, and with all local conditions and federal, state and local laws, ordinances, rules, and regulations that in any manner may affect cost, progress or performance of the Scope of Services and will provide a mutually agreeable Scope of Services for each Task Order. c. Contractor represents to City that it has the experience and ability to perform the services required by this Agreement; that it will perform said services in a professional, competent and timely manner and with diligence and skill ordinarily used by member in the same profession practicing at the same time and in the same locality; that it has the power to enter into and perform this Agreement and grant the rights granted in it; and that its performance of this Agreement shall not infringe upon or violate the rights of any third party, whether rights of copyright, trademark, privacy, publicity, libel, slander or any other rights of any nature whatsoever, or violate any federal, state and municipal laws. The City will not determine or exercise control as to general procedures or formats necessary to have these services meet this standard of care. 6. Independent Contractor Status/Labor Relations: a. The parties agree that Contractor is an independent contractor for purposes of this Agreement and is not to be considered an employee of the City for any purpose. Contractor is not subject to the terms and provisions of the City’s personnel policies handbook and may not be considered a City employee for workers’ compensation or any other purpose. Contractor is not authorized to represent the City or otherwise bind the City in any dealings between Contractor and any third parties. b. Contractor shall comply with the applicable requirements of the Workers’ Compensation Act, Title 39, Chapter 71, MCA, and the Occupational Disease Act of Montana, Title 39, Chapter 71, MCA. Contractor shall maintain workers’ compensation coverage for all members and employees of Contractor’s business, except for those members who are exempted by law. 90 Professional Services Master Task Order Agreement for [____] Services Page 3 of 15 c. Contractor shall furnish the City with copies showing one of the following: (1) a binder for workers’ compensation coverage by an insurer licensed and authorized to provide workers’ compensation insurance in the State of Montana; or (2) proof of exemption from workers’ compensation granted by law for independent contractors. d. Contractor shall post a legible statement of all wages and fringe benefits to be paid to the Contractor’s employees and the frequency of such payments (i.e., hourly wage employees shall be paid weekly). Such posting shall be made in a prominent and accessible location at the Contractor’s normal place of business and shall be made no later than the first day of services provided under this Agreement. Such posting shall be removed only upon expiration or termination of this Agreement. e. In performing the services under this Agreement, Contractor shall give preference to the employment of bona fide residents of Montana, as required by §18-2-403, MCA, as such term is defined by §18-2-401(1), MCA. When making assignments of work, Contractor shall use workers both skilled in their trade and specialized in their field of work for all work to which they are assigned. f. Pursuant to §§18-2-403 and 18-2-422, MCA, Contractor shall pay wages, fringe benefits, and expenses, including travel allowances as set forth in the current Montana Prevailing Wage Rate for Non Construction Services in effect and applicable to Gallatin County, Montana, which schedule is incorporated herein. Contractor shall pay all hourly wage employees on a weekly basis. Violation of the requirements set forth in the above State of Montana schedule of prevailing wage rates may subject the Contractor to the penalties set forth in §18-2-407, MCA. Contractor shall maintain payroll records during the term of this Agreement and for a period of three (3) years following termination of this Agreement. g. The Contractor shall ensure that any person, firm or entity performing any portion of the services under this Agreement for which the contractor, subcontractor or employer is responsible, is paid the applicable standard prevailing rate of wages. h. In the event that, during the term of this Agreement, any labor problems or disputes of any type arise or materialize which in turn cause any services to cease for any period of time, Contractor specifically agrees to take immediate steps, at its own expense and without expectation of reimbursement from City, to alleviate or resolve all such labor problems or disputes. The specific steps Contractor shall take shall be left to the discretion of Contractor; provided, however, that Contractor shall bear all costs of any 91 Professional Services Master Task Order Agreement for [____] Services Page 4 of 15 related legal action. Contractor shall provide immediate relief to the City so as to permit the services to continue at no additional cost to City. i. Contractor shall indemnify and hold the City harmless from any and all claims, demands, costs, expenses, damages, and liabilities arising out of, resulting from, or occurring in connection with any labor problems or disputes or any delays or stoppages of work associated with such problems or disputes and for any claims regarding underpaid prevailing wages. 7. Indemnity/Waiver of Claims/Insurance: a. For other than professional services rendered, to the fullest extent permitted by law, Contractor agrees to release, defend, indemnify, and hold harmless the City, its agents, representatives, employees, and officers (collectively referred to for purposes of this Section as the City) from and against any and all claims, demands, actions, fees and costs (including attorney’s fees and the costs and fees of and expert witness and consultants), losses, expenses, liabilities (including liability where activity is inherently or intrinsically dangerous) or damages of whatever kind or nature connected therewith and without limit and without regard to the cause or causes thereof or the negligence of any party or parties that may be asserted against, recovered from or suffered by the City occasioned by, growing or arising out of or resulting from or in any way related to: (i) the negligent, reckless, or intentional misconduct of the Contractor; (ii) any negligent, reckless, or intentional misconduct of any of the Contractor’s agents; b. For the services rendered, to the fullest extent permitted by law, Contractor agrees to indemnify and hold the City harmless against claims, demands, suits, damages, losses, and expenses, including reasonable defense attorney fees, to the extent caused by the negligence or intentional misconduct of the Contractor or Contractor’s agents or employees. c. Such obligations shall not be construed to negate, abridge, or reduce other rights or obligations of indemnity that would otherwise exist. The indemnification obligations of this Section must not be construed to negate, abridge, or reduce any common-law or statutory rights of the indemnitee(s) which would otherwise exist as to such indemnitee(s). d. Contractor’s indemnity under this Section shall be without regard to and without any right to contribution from any insurance maintained by City. 92 Professional Services Master Task Order Agreement for [____] Services Page 5 of 15 e. Should the City be required to bring an action against the Contractor to assert its right to defense or indemnification under this Agreement or under the Contractor’s applicable insurance policies required below, the City shall be entitled to recover reasonable costs and attorney fees incurred in asserting its right to indemnification or defense but only if a court of competent jurisdiction determines the Contractor was obligated to defend the claim(s) or was obligated to indemnify the City for a claim(s) or any portion(s) thereof. f. In the event of an action filed against City resulting from the City’s performance under this Agreement, the City may elect to represent itself and incur all costs and expenses of suit. g. Contractor also waives any and all claims and recourse against the City or its officers, agents or employees, including the right of contribution for loss or damage to person or property arising from, growing out of, or in any way connected with or incident to the performance of this Agreement except “responsibility for his own fraud, for willful injury to the person or property of another, or for violation of law, whether willful or negligent” as per 28-2-702, MCA. h. These obligations shall survive termination of this Agreement and the services performed hereunder. i. In addition to and independent from the above, Contractor shall at Contractor’s expense secure insurance coverage through an insurance company or companies duly licensed and authorized to conduct insurance business in Montana which insures the liabilities and obligations specifically assumed by the Contractor in this Section. The insurance coverage shall not contain any exclusion for liabilities specifically assumed by the Contractor in subsection (a) of this Section. j. The insurance shall cover and apply to all claims, demands, suits, damages, losses, and expenses that may be asserted or claimed against, recovered from, or suffered by the City without limit and without regard to the cause therefore and which is acceptable to the City and Contractor shall furnish to the City an accompanying certificate of insurance and accompanying endorsements in amounts not less than as follows:  Workers’ Compensation – statutory;  Employers’ Liability - $1,000,000 per occurrence and annual aggregate;  Commercial General Liability - $1,000,000 per occurrence; $2,000,000 annual aggregate; 93 Professional Services Master Task Order Agreement for [____] Services Page 6 of 15  Automobile Liability - $1,000,000 property damage/bodily injury; $1,000,000 annual aggregate; and  Professional Liability - $1,000,000 per claim; $2,000,000 annual aggregate k. The above amounts shall be exclusive of defense costs. The City of Bozeman, its officers, agents, and employees, shall be endorsed as an additional or named insured on a primary non-contributory basis on both the Commercial General and Automobile Liability policies. The insurance and required endorsements must be in a form suitable to City and shall include no less than a thirty (30) day notice of cancellation or non- renewal. The City must approve all insurance coverage and endorsements prior to the Contractor commencing work. Contractor shall notify City within two (2) business days of Contractor’s receipt of notice that any required insurance coverage will be terminated or Contractor’s decision to terminate any required insurance coverage for any reason. The City must approve all insurance coverage and endorsements prior to the Contractor commencing work. l. Pursuant to the City’s authority provided for in 18-2-201(4), the Contractor shall not be required to provide bonds as required by 18-2-201(1) for individual task orders under this Agreement. Bonds may be waived as allowed under 18-2-201(4) for individual task orders. 8. Inspection and Testing: a. City has the right to inspect and test any and all work performed by Contractor under a task order’s scope of services, referred to as the “Project”, executed under the authority of this Agreement. Contractor shall allow City and its agents access to the Project at all times and shall provide every reasonable facility for the purpose of such inspection and testing, including temporarily discontinuing portions of the work or uncovering or taking down portions of the finished work. Any inspection and testing performed by the City and its agents is for the sole benefit of the City and shall not relieve the Contractor of its duty, responsibility, and obligation to ensure that the work strictly complies with the Agreement terms and conditions and all applicable laws and building and safety codes. City’s inspection and testing shall not be deemed or considered acceptance by the City of any portion of the Project. City’s inspection and testing shall not serve to nullify, amend, or waive any warranties provided by the Contractor under this Agreement. 94 Professional Services Master Task Order Agreement for [____] Services Page 7 of 15 b. Contractor shall, without charge, replace any material or correct any work found by the City or its agents to be defective or otherwise not in compliance with the terms and conditions of this Agreement. In the event Contractor fails to replace or correct any defective work or materials after reasonable written notice by the City to do so, the City may take such corrective action, either with its own materials and employees or by retaining any third party to do so, and deduct the cost and expense of such corrective action from the Contractor’s compensation. 9. Partial Utilization of the Project: City shall have the right to use or occupy any portion of the Project that City and Contractor mutually agree is substantially completed and constitutes a separately functioning and usable part of the Project for its intended purpose without significant interference with Contractor’s performance of the remaining portions of the Project. In the event City takes possession of any portion of the Project, such possession shall not be deemed an acceptance of the Project, in whole or in part. City’s use of any portion of the Project shall not be grounds for extensions of any construction deadlines or a change in the Contractor’s compensation. Contractor’s warranties shall run from the completion of the total Project and not from the date the City may take possession of selected portions of the Project. 10. Related Work at the Site: Nothing in this Agreement shall prevent or preclude City, through its own employees or by contract with any third party, from performing other work related to the Project at the construction site; provided such related work is not otherwise addressed in this Agreement and provided such related work does not otherwise interfere with Contractor’s performance of this Agreement or the completion of the Project. Contractor shall afford any City employee, agent or representative, or any third party under contract with the City to perform the related work, proper and safe access to the construction site, a reasonable opportunity for the introduction and storage of materials and equipment, the opportunity to perform the related work, and shall properly coordinate the Contractor’s work on the Project with the related work. 11. Contractor’s Warranties: Contractor represents and warrants as follows: a. Unless otherwise specified by the terms of the Task Order, all materials and equipment used by Contractor on the Project shall be new and where not otherwise specified, of the most suitable grade for their intended uses. b. All workmanship and materials shall be of a kind and nature acceptable to the City. 95 Professional Services Master Task Order Agreement for [____] Services Page 8 of 15 c. All equipment, materials, and labor provided to, on, or for the Project must be free of defects and nonconformities in design, materials, and workmanship for a minimum period beginning with the commencement of the work on the Project and ending one (1) year from the final completion and acceptance by the City of the Project, regardless of whether such equipment, materials, or labor were supplied directly by Contractor or indirectly by Contractor’s subcontractors or suppliers. Other express warranties on materials that provide for a warranty period longer than one year apply for the period of that express warranty and are not reduced by this provision. Upon receipt of City’s written notice of a defective or nonconforming condition during the warranty period, Contractor shall take all actions, including redesign and replacement, to correct the defective or nonconforming condition within a time frame acceptable to the City and at no additional cost to the City. Contractor shall also, at its sole cost, perform any tests required by City to verify that such defective or nonconforming condition has been corrected. Contractor warrants the corrective action taken against defective and nonconforming conditions for a period of an additional one (1) year from the date of City’s acceptance of the corrective action. d. Contractor and its sureties are liable for the satisfaction and full performance of all warranties. e. Contractor shall give its personal attention to the faithful prosecution of the completion of the Project and Contractor, or its duly authorized representative assigned to serve as the Construction Project Manager, shall be personally present at the site of the Construction Project during working hours for the term of this Agreement until the completion of the Project. f. Contractor shall have a complete, accurate, and up-to-date set of construction plans, drawings, and specifications on site at all times. g. Contractor has examined all available records and made field examinations of the site of the Project. Contractor has knowledge of the field conditions to be encountered during the Project. Contractor has knowledge of the types and character of equipment necessary for the work, the types of materials needed and the sources of such materials, and the condition of the local labor market. h. Contractor is responsible for the safety of the work and shall maintain all lights, guards, signs, temporary passages, or other protections necessary for that purpose at all times. 96 Professional Services Master Task Order Agreement for [____] Services Page 9 of 15 i. All work must be performed at Contractor’s risk, and Contractor shall promptly repair or replace all damage and loss at its sole cost and expense regardless of the reason or cause of the damage or loss; provided, however, should the damage or loss be caused by an intentional or negligent act of the City, the risk of such loss shall be placed on the City. j. Contractor is responsible for any loss or damage to materials, tools, or other articles used or held for use in the completion of performance of the Project. k. Contractor’s performance must be without damage or disruption to any other work or property of the City or of others and without interference with the operation of existing machinery or equipment. l. Title to all work, materials, and equipment covered by any payment of Contractor’s compensation by City, whether directly incorporated into the Project or not, passes to City at the time of payment, free and clear of all liens and encumbrances. 12. Termination for Contractor’s Fault: a. If Contractor refuses or fails to timely do the work, or any part thereof, or fails to perform any of its obligations under this Agreement, or otherwise breaches any terms or conditions of this Agreement, the City may, by written notice, terminate this Agreement or any individual Task Order under this Agreement and the Contractor’s right to proceed with all or any part of the work (“Termination Notice Due to Contractor’s Fault”). The City may then take over the work and complete it, either with its own resources or by re-letting the contract to any other third party. b. In the event of a termination pursuant to this Section 8, Contractor shall be entitled to payment only for those services Contractor actually rendered. c. Any termination provided for by this Section 8 shall be in addition to any other remedies to which the City may be entitled under the law or at equity. d. In the event of termination under this Section 8, Contractor shall, under no circumstances, be entitled to claim or recover consequential, special, punitive, lost business opportunity, lost productivity, field office overhead, general conditions costs, or lost profits damages of any nature arising, or claimed to have arisen, as a result of the termination. 97 Professional Services Master Task Order Agreement for [____] Services Page 10 of 15 13. Termination for City’s Convenience: a. Should conditions arise which, in the sole opinion and discretion of the City, make it advisable to the City to cease performance under this Agreement; the City may terminate this Agreement or any Task Order under this Agreement by written notice to Contractor (“Notice of Termination for City’s Convenience”). The termination shall be effective in the manner specified in the Notice of Termination for City’s Convenience and shall be without prejudice to any claims that the City may otherwise have against Contractor. b. Upon receipt of the Notice of Termination for City’s Convenience, unless otherwise directed in the Notice, the Contractor shall immediately cease performance under this Agreement or any Task Order under this Agreement and make every reasonable effort to refrain from continuing work, incurring additional expenses or costs under this Agreement or any Task Order under this Agreement and shall immediately cancel all existing orders or contracts upon terms satisfactory to the City. Contractor shall do only such work as may be necessary to preserve, protect, and maintain work already completed or immediately in progress. c. In the event of a termination pursuant to this Section 9, Contractor is entitled to payment only for those services Contractor actually rendered on or before the receipt of the Notice of Termination for City’s Convenience. d. The compensation described in Section 9(c) is the sole compensation due to Contractor for its performance of this Agreement. Contractor shall, under no circumstances, be entitled to claim or recover consequential, special, punitive, lost business opportunity, lost productivity, field office overhead, general conditions costs, or lost profits damages of any nature arising, or claimed to have arisen, as a result of the termination. 14. Limitation on Contractor’s Damages; Time for Asserting Claim: a. In the event of a claim for damages by Contractor under this Agreement, Contractor’s damages shall be limited to contract damages and Contractor hereby expressly waives any right to claim or recover consequential, special, punitive, lost business opportunity, lost productivity, field office overhead, general conditions costs, or lost profits damages of any nature or kind. b. In the event Contractor wants to assert a claim for damages of any kind or nature, Contractor shall provide City with written notice of its claim, the facts and 98 Professional Services Master Task Order Agreement for [____] Services Page 11 of 15 circumstances surrounding and giving rise to the claim, and the total amount of damages sought by the claim, within thirty (30) days of the facts and circumstances giving rise to the claim. In the event Contractor fails to provide such notice, Contractor shall waive all rights to assert such claim. 15. Representatives: a. City’s Representative: The City’s Representative for the purpose of this Agreement shall be Max Ziegler, Facilities Project Coordinator, or such other individual as City shall designate in writing. Whenever approval or authorization from or communication or submission to City is required by this Agreement, such communication or submission shall be directed to the City’s Representative and approvals or authorizations shall be issued only by such Representative; provided, however, that in exigent circumstances when City’s Representative is not available, Contractor may direct its communication or submission to other designated City personnel or agents and may receive approvals or authorization from such persons. b. Contractor’s Representative: The Contractor’s Representative for the purpose of this Agreement shall be Edward Kerins, or such other individual as Contractor shall designate in writing. Whenever direction to or communication with Contractor is required by this Agreement, such direction or communication shall be directed to Contractor’s Representative; provided, however, that in exigent circumstances when Contractor’s Representative is not available, City may direct its direction or communication to other designated Contractor personnel or agents. c. Notices: All notices required by this Agreement shall be in writing and shall be provided to the Representatives named in this Section. Notices shall be deemed given when delivered, if delivered by courier to Party’s address shown above during normal business hours of the recipient; or when sent, if sent by email or fax (with a successful transmission report) to the email address or fax number provided by the Party’s Representative; or on the fifth business day following mailing, if mailed by ordinary mail to the address shown above, postage prepaid. 16. Permits: Contractor shall provide all notices, comply with all applicable laws, ordinances, rules, and regulations, obtain all necessary permits, licenses, including a City of Bozeman business license, and inspections from applicable governmental authorities, and pay all fees and charges in connection therewith. 99 Professional Services Master Task Order Agreement for [____] Services Page 12 of 15 17. Laws and Regulations: Contractor shall comply fully with all applicable state and federal laws, regulations, and municipal ordinances including, but not limited to, all workers’ compensation laws, all environmental laws including, but not limited to, the generation and disposal of hazardous waste, the Occupational Safety and Health Act (OSHA), the safety rules, codes, and provisions of the Montana Safety Act in Title 50, Chapter 71, MCA, all applicable City, County, and State building and electrical codes, the Americans with Disabilities Act, and all non-discrimination, affirmative action, and utilization of minority and small business statutes and regulations. 18. Nondiscrimination and Equal Pay: a. The Contractor agrees that all hiring by Contractor of persons performing this Agreement shall be on the basis of merit and qualifications. The Contractor will have a policy to provide equal employment opportunity in accordance with all applicable state and federal anti-discrimination laws, regulations, and contracts. The Contractor will not refuse employment to a person, bar a person from employment, or discriminate against a person in compensation or in a term, condition, or privilege of employment because of race, color, religion, creed, political ideas, sex, age, marital status, national origin, actual or perceived sexual orientation, gender identity, physical or mental disability, except when the reasonable demands of the position require an age, physical or mental disability, marital status or sex distinction. The Contractor shall be subject to and comply with Title VI of the Civil Rights Act of 1964; Section 140, Title 2, United States Code, and all regulations promulgated thereunder. b. 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. c. Contractor shall require these nondiscrimination terms of its subcontractors providing services under this Agreement. 19. Intoxicants; DOT Drug and Alcohol Regulations/Safety and Training: a. Contractor shall not permit or suffer the introduction or use of any intoxicants, including alcohol or illegal drugs, by any employee or agent engaged in services to the City under this Agreement while on City property or in the performance of any activities under this Agreement. Contractor acknowledges it is aware of and shall comply with its responsibilities and obligations under the U.S. Department of Transportation (DOT) regulations governing anti-drug and alcohol misuse prevention 100 Professional Services Master Task Order Agreement for [____] Services Page 13 of 15 plans and related testing. City shall have the right to request proof of such compliance and Contractor shall be obligated to furnish such proof. b. The Contractor shall be responsible for instructing and training the Contractor's employees and agents in proper and specified work methods and procedures. The Contractor shall provide continuous inspection and supervision of the work performed. The Contractor is responsible for instructing his employees and agents in safe work practices. 20. Modification and Assignability: This Agreement may not be enlarged, modified or altered except by written agreement signed by both parties hereto. The Contractor may not subcontract or assign Contractor’s rights, including the right to compensation or duties arising hereunder, without the prior written consent of City. Any subcontractor or assignee will be bound by all of the terms and conditions of this Agreement. 21. Reports/Accountability/Public Information: Contractor agrees to develop and/or provide documentation as requested by the City demonstrating Contractor’s compliance with the requirements of this Agreement. Contractor shall allow the City, its auditors, and other persons authorized by the City to inspect and copy its books and records for the purpose of verifying that the reimbursement of monies distributed to Contractor pursuant to this Agreement was used in compliance with this Agreement and all applicable provisions of federal, state, and local law. The Contractor shall not issue any statements, releases or information for public dissemination without prior approval of the City. 22. Non-Waiver: A waiver by either party any default or breach by the other party of any terms or conditions of this Agreement does not limit the other party’s right to enforce such term or conditions or to pursue any available legal or equitable rights in the event of any subsequent default or breach. 23. Attorney’s Fees and Costs: That 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 or the Party giving notice shall be entitled to reasonable attorney's fees and costs, including fees, salary, and costs of in-house counsel to include City Attorney. 24. Taxes: Contractor is obligated to pay all taxes of any kind or nature and make all appropriate employee withholdings. 25. Dispute Resolution: 101 Professional Services Master Task Order Agreement for [____] Services Page 14 of 15 a. Any claim, controversy, or dispute between the parties, their agents, employees, or representatives shall be resolved first by negotiation between senior-level personnel from each party duly authorized to execute settlement agreements. Upon mutual agreement of the parties, the parties may invite an independent, disinterested mediator to assist in the negotiated settlement discussions. b. If the parties are unable to resolve the dispute within thirty (30) days from the date the dispute was first raised, then such dispute may only be resolved in a court of competent jurisdiction in compliance with the Applicable Law provisions of this Agreement. 26. Survival: Contractor’s indemnification shall survive the termination or expiration of this Agreement for the maximum period allowed under applicable law. 27. Headings: The headings used in this Agreement are for convenience only and are not be construed as a part of the Agreement or as a limitation on the scope of the particular paragraphs to which they refer. 28. Severability: If any portion of this Agreement is held to be void or unenforceable, the balance thereof shall continue in effect. 29. Applicable Law: The parties agree that this Agreement is governed in all respects by the laws of the State of Montana. 30. Binding Effect: This Agreement is binding upon and inures to the benefit of the heirs, legal representatives, successors, and assigns of the parties. 31. 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. 32. Counterparts: This Agreement may be executed in counterparts, which together constitute one instrument. 33. Integration: This Agreement and all Exhibits attached hereto constitute the entire agreement of the parties. Covenants or representations not contained therein or made a part thereof by reference, are not binding upon the parties. There are no understandings between the parties other than as set forth in this Agreement. All communications, either verbal or written, made 102 Professional Services Master Task Order Agreement for [____] Services Page 15 of 15 prior to the date of this Agreement are hereby abrogated and withdrawn unless specifically made a part of this Agreement by reference. 34. Consent to Electronic Signatures: The Parties have consented to execute this Agreement electronically in conformance with the Montana Uniform Electronic Transactions Act, Title 30, Chapter 18, Part 1, MCA. **** END OF AGREEMENT EXCEPT FOR SIGNATURES **** IN WITNESS WHEREOF, the parties hereto have executed this instrument the day and year first above written. CITY OF BOZEMAN, MONTANA ____________________________________ CONTRACTOR (Type Name Above) By________________________________ By__________________________________ Jeff Mihelich, City Manager Print Name: Print Title: ____________________________ APPROVED AS TO FORM: By_______________________________ Greg Sullivan, Bozeman City Attorney 103 EXHIBIT A 104 Member of the Team 3B Rehabilitation Services LLC 920 Peosta Ave. Helena, MT 59601 (406) 594-1040 Nodigteam.com December 18, 2023 Max Zeigler Facilities Project Coordinator City of Bozeman 20 E. Olive Street, Office 0148 Bozeman, MT 59715 Dear Mr. Zeigler, I have attached a preliminary rate sheet to proceed with the negotiations for a term contract with the City of Bozeman for as-needed pipe restoration services. “The rate sheets can be updated at any time to account for changing market conditions.” The projects will include underground or in-structure pipe rehabilitation. We have built evaluation steps in the process since the installation of CIPP may not be the proper solution. Additionally, the site conditions may be favorable such that steps in the outlined process may not be applicable. This rate sheet may be revised and expanded as the application of the solution achieves more significant consideration. We understand this growth process. We appreciate the opportunity provided and look forward to the successful negotiation of a contract and the successful completion of projects. Sincerely, Edward C. Kerins President 3B Rehabilitation Services LLC dba No Dig Team 105 No Dig Team City of Bozeman December 2023 Rate sheet Proposed rate sheet for services offered to the City of Bozeman via Task Order contract Lump Sum/Minimum Unit Price Units Cost CCTV Cln/Dscl CIPP Site Preparation 1 Site Access N/C $100.00 incl 2 Site Assessment N/C incl incl 3 Pipeline access N/C Plumber incl Mobilization 4 Equipment set up $50.00 Extra Piece N/C $100.00 $250.00 CCTV of pipeline 5 Initial inspection 4"$4.00 Foot $350.00 6"$4.00 Foot $350.00 8"$5.00 Foot $350.00 6 Initial report incl 7 Project Evaluation $75.00 Hour $100.00 Cleaning and descaling of pipeline 106 8 Jetter Cleaning $17.50 Foot 9 Mechanical Cleaning and Descaling 4"$30.00 Foot 6"$35.00 Foot 8"$45.00 Foot CCTV of pipeline Minimum 10 Preline inspection 4"$3.00 Foot 6"$4.00 Foot 8"$5.00 Foot 11 PACP/LACP Report $1.50 Foot $150.00 12 Project Evaluation $75.00 Hour $100.00 Installation of CIPP Installation of CIPP Unit Price Units Cost 13 Resin Impregnated Liner 4"$185.00 Foot 6"$205.00 Foot 8"$225.00 Foot 14 Calibration Tube 4"incl 6"incl 8"incl 15 Branch line reinstatements 3"$500.00 ea 107 4"$750.00 ea 6"$100.00 ea 8"$1,250.00 ea Site Cleanup Minimum 16 Demobilization $50.00 Extra Piece $0.00 17 Exit conference $75.00 Hour $100.00 108 EXHIBIT B 109 City of Bozeman Term Contract: Task Order Number # PROJECT: Issued under the authority of City of Bozeman Term Contract Professional Services Agreement With: For: This Task Order is dated between: and The following representatives have been designated for the work performed under this Task Order City: Contractor: SCOPE OF WORK: COMPENSATION IN WITNESS WHEREOF, the parties authorized to commit resources of the parties have executed this Task Order: City of Bozeman 110 Professional Services Master Task Order Agreement for Electrician Services Page 1 of 16 PROFESSIONAL SERVICES MASTER TASK ORDER AGREEMENT THIS AGREEMENT is made and entered into this _____ of January, 2024, 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, Armitage Electric Inc., 7620 Shedhorn Dr., Suite B, Bozeman, MT 59718, hereinafter referred to as “Contractor.” In consideration of the mutual covenants and agreements herein contained, the receipt and sufficiency whereof being hereby acknowledged, the parties hereto agree as follows: 1. Purpose: City agrees to enter into this agreement with Contractor to provide Electrical Contracting Services as requested by the City through issuance of individual, consecutively numbered Task Orders on an as needed and requested basis. 2. Term/Effective Date: This Agreement is effective upon the date of its execution and will expire on January 1, 2029 unless extended or terminated as specifically provided for within the agreement. 3. Scope of Work: Contractor will perform the work and provide the services in accordance with the requirements of the Scope of Services. The Contractor will perform the specific services and schedule as mutually agreed upon by City and Contractor and included in each individual Task Order executed under the authority of this Agreement. Task Orders shall be in a format similar to EXHIBIT B, attached and made part of this Agreement. For conflicts between this Agreement and the Scope of Services the Agreement governs. 4. Payment: The terms of compensation to Contractor shall be agreed upon and included in each Task Order. The task order amount shall be based on the rates specified in EXHIBIT A. City agrees to pay Contractor the amount specified in the individual Task Orders. Any alteration or deviation from the described services that involves additional costs above the Agreement amount will be performed by Contractor after written request by the City, and will become an additional charge over and above the amount listed in EXHIBIT A. The City must agree in writing upon any additional charges. 111 Professional Services Master Task Order Agreement for Electrician Services Page 2 of 16 5. Contractor’s Representations: To induce City to enter into this Agreement, Contractor makes the following representations: a. Contractor has familiarized itself with the nature and extent of this agreement, the Scope of Services and with all local conditions and federal, state and local laws, ordinances, rules, and regulations that in any manner may affect cost, progress or performance of the Scope of Services. b. For each individual Task Order, Contractor will familiarize itself with the nature and extent of the assignment, and with all local conditions and federal, state and local laws, ordinances, rules, and regulations that in any manner may affect cost, progress or performance of the Scope of Services and will provide a mutually agreeable Scope of Services for each Task Order. c. Contractor represents to City that it has the experience and ability to perform the services required by this Agreement; that it will perform said services in a professional, competent and timely manner and with diligence and skill ordinarily used by member in the same profession practicing at the same time and in the same locality; that it has the power to enter into and perform this Agreement and grant the rights granted in it; and that its performance of this Agreement shall not infringe upon or violate the rights of any third party, whether rights of copyright, trademark, privacy, publicity, libel, slander or any other rights of any nature whatsoever, or violate any federal, state and municipal laws. The City will not determine or exercise control as to general procedures or formats necessary to have these services meet this standard of care. 6. Independent Contractor Status/Labor Relations: a. The parties agree that Contractor is an independent contractor for purposes of this Agreement and is not to be considered an employee of the City for any purpose. Contractor is not subject to the terms and provisions of the City’s personnel policies handbook and may not be considered a City employee for workers’ compensation or any other purpose. Contractor is not authorized to represent the City or otherwise bind the City in any dealings between Contractor and any third parties. b. Contractor shall comply with the applicable requirements of the Workers’ Compensation Act, Title 39, Chapter 71, MCA, and the Occupational Disease Act of Montana, Title 39, Chapter 71, MCA. Contractor shall maintain workers’ compensation coverage for all members and employees of Contractor’s business, except for those members who are exempted by law. 112 Professional Services Master Task Order Agreement for Electrician Services Page 3 of 16 c. Contractor shall furnish the City with copies showing one of the following: (1) a binder for workers’ compensation coverage by an insurer licensed and authorized to provide workers’ compensation insurance in the State of Montana; or (2) proof of exemption from workers’ compensation granted by law for independent contractors. d. Contractor shall post a legible statement of all wages and fringe benefits to be paid to the Contractor’s employees and the frequency of such payments (i.e., hourly wage employees shall be paid weekly). Such posting shall be made in a prominent and accessible location at the Contractor’s normal place of business and shall be made no later than the first day of services provided under this Agreement. Such posting shall be removed only upon expiration or termination of this Agreement. e. In performing the services under this Agreement, Contractor shall give preference to the employment of bona fide residents of Montana, as required by §18-2-403, MCA, as such term is defined by §18-2-401(1), MCA. When making assignments of work, Contractor shall use workers both skilled in their trade and specialized in their field of work for all work to which they are assigned. f. Pursuant to §§18-2-403 and 18-2-422, MCA, Contractor shall pay wages, fringe benefits, and expenses, including travel allowances as set forth in the current Montana Prevailing Wage Rate for Non Construction Services in effect and applicable to Gallatin County, Montana, which schedule is incorporated herein. Contractor shall pay all hourly wage employees on a weekly basis. Violation of the requirements set forth in the above State of Montana schedule of prevailing wage rates may subject the Contractor to the penalties set forth in §18-2-407, MCA. Contractor shall maintain payroll records during the term of this Agreement and for a period of three (3) years following termination of this Agreement. g. The Contractor shall ensure that any person, firm or entity performing any portion of the services under this Agreement for which the contractor, subcontractor or employer is responsible, is paid the applicable standard prevailing rate of wages. h. In the event that, during the term of this Agreement, any labor problems or disputes of any type arise or materialize which in turn cause any services to cease for any period of time, Contractor specifically agrees to take immediate steps, at its own expense and without expectation of reimbursement from City, to alleviate or resolve all such labor problems or disputes. The specific steps Contractor shall take shall be left to the discretion of Contractor; provided, however, that Contractor shall bear all costs of any 113 Professional Services Master Task Order Agreement for Electrician Services Page 4 of 16 related legal action. Contractor shall provide immediate relief to the City so as to permit the services to continue at no additional cost to City. i. Contractor shall indemnify and hold the City harmless from any and all claims, demands, costs, expenses, damages, and liabilities arising out of, resulting from, or occurring in connection with any labor problems or disputes or any delays or stoppages of work associated with such problems or disputes and for any claims regarding underpaid prevailing wages. 7. Indemnity/Waiver of Claims/Insurance: a. For other than professional services rendered, to the fullest extent permitted by law, Contractor agrees to release, defend, indemnify, and hold harmless the City, its agents, representatives, employees, and officers (collectively referred to for purposes of this Section as the City) from and against any and all claims, demands, actions, fees and costs (including attorney’s fees and the costs and fees of and expert witness and consultants), losses, expenses, liabilities (including liability where activity is inherently or intrinsically dangerous) or damages of whatever kind or nature connected therewith and without limit and without regard to the cause or causes thereof or the negligence of any party or parties that may be asserted against, recovered from or suffered by the City occasioned by, growing or arising out of or resulting from or in any way related to: (i) the negligent, reckless, or intentional misconduct of the Contractor; (ii) any negligent, reckless, or intentional misconduct of any of the Contractor’s agents; b. For the services rendered, to the fullest extent permitted by law, Contractor agrees to indemnify and hold the City harmless against claims, demands, suits, damages, losses, and expenses, including reasonable defense attorney fees, to the extent caused by the negligence or intentional misconduct of the Contractor or Contractor’s agents or employees. c. Such obligations shall not be construed to negate, abridge, or reduce other rights or obligations of indemnity that would otherwise exist. The indemnification obligations of this Section must not be construed to negate, abridge, or reduce any common-law or statutory rights of the indemnitee(s) which would otherwise exist as to such indemnitee(s). d. Contractor’s indemnity under this Section shall be without regard to and without any right to contribution from any insurance maintained by City. 114 Professional Services Master Task Order Agreement for Electrician Services Page 5 of 16 e. Should the City be required to bring an action against the Contractor to assert its right to defense or indemnification under this Agreement or under the Contractor’s applicable insurance policies required below, the City shall be entitled to recover reasonable costs and attorney fees incurred in asserting its right to indemnification or defense but only if a court of competent jurisdiction determines the Contractor was obligated to defend the claim(s) or was obligated to indemnify the City for a claim(s) or any portion(s) thereof. f. In the event of an action filed against City resulting from the City’s performance under this Agreement, the City may elect to represent itself and incur all costs and expenses of suit. g. Contractor also waives any and all claims and recourse against the City or its officers, agents or employees, including the right of contribution for loss or damage to person or property arising from, growing out of, or in any way connected with or incident to the performance of this Agreement except “responsibility for his own fraud, for willful injury to the person or property of another, or for violation of law, whether willful or negligent” as per 28-2-702, MCA. h. These obligations shall survive termination of this Agreement and the services performed hereunder. i. In addition to and independent from the above, Contractor shall at Contractor’s expense secure insurance coverage through an insurance company or companies duly licensed and authorized to conduct insurance business in Montana which insures the liabilities and obligations specifically assumed by the Contractor in this Section. The insurance coverage shall not contain any exclusion for liabilities specifically assumed by the Contractor in subsection (a) of this Section. j. The insurance shall cover and apply to all claims, demands, suits, damages, losses, and expenses that may be asserted or claimed against, recovered from, or suffered by the City without limit and without regard to the cause therefore and which is acceptable to the City and Contractor shall furnish to the City an accompanying certificate of insurance and accompanying endorsements in amounts not less than as follows:  Workers’ Compensation – statutory;  Employers’ Liability - $1,000,000 per occurrence and annual aggregate;  Commercial General Liability - $1,000,000 per occurrence; $2,000,000 annual aggregate; 115 Professional Services Master Task Order Agreement for Electrician Services Page 6 of 16  Automobile Liability - $1,000,000 property damage/bodily injury; $1,000,000 annual aggregate; and  Professional Liability - $1,000,000 per claim; $2,000,000 annual aggregate  Builder’s Risk/Property Insurance at least as broad as that provided by the ISO special causes of loss form (CP10 30) naming at a minimum the City in an amount equal to greater of Contractor’s compensation or full replacement value of the work (covering at a minimum all work, buildings, materials and equipment, whether on site or in transit, loss due to fire, lightening, theft, vandalism, malicious mischief, earthquake, collapse, debris removal, demolition occasioned by enforcement of laws, water damage, flood if site within a flood plain, repair or replacement costs, testing and start-up costs) on an all risk coverage basis. This insurance must include waivers of subrogation between the City and Contractor to the extent that damage to the Project or City Hall is covered by other insurance;  Owner’s and Contractor’s Protective Liability: one policy designating the City (including its agents, representatives, employees, and officers) as the insured and another independent policy designated the City’s Representative (including its consultants, consultants, agents and employees) as the insured on the declarations with both policies covering: (i) operations performed by the Contractor under this Agreement for the City; and (ii) the City’s and City’s Representatives acts or omissions, including negligent acts, in connection with its general supervision of the work of the Contractor’s and its subcontractors - $1,000,000 per occurrence; $2,000,000 aggregate;  Contractual Liability Insurance (covering the Contractor’s indemnity obligations described in this Agreement) - $1,000,000 per occurrence $2,000,000 aggregate k. The above amounts shall be exclusive of defense costs. The City of Bozeman, its officers, agents, and employees, shall be endorsed as an additional or named insured on a primary non-contributory basis on both the Commercial General and Automobile Liability policies. The insurance and required endorsements must be in a form suitable to City and shall include no less than a thirty (30) day notice of cancellation or non- renewal. The City must approve all insurance coverage and endorsements prior to the Contractor commencing work. Contractor shall notify City within two (2) business days of Contractor’s receipt of notice that any required insurance coverage will be terminated or Contractor’s decision to terminate any required insurance coverage for any reason. The City must approve all insurance coverage and endorsements prior to the Contractor commencing work. 116 Professional Services Master Task Order Agreement for Electrician Services Page 7 of 16 l. Pursuant to the City’s authority provided for in 18-2-201(4), the Contractor shall not be required to provide bonds as required by 18-2-201(1) for individual task orders under this Agreement. Bonds may be waived as allowed under 18-2-201(4) for individual task orders. 8. Inspection and Testing: a. City has the right to inspect and test any and all work performed by Contractor under a task order’s scope of services, referred to as the “Project”, executed under the authority of this Agreement. Contractor shall allow City and its agents access to the Project at all times and shall provide every reasonable facility for the purpose of such inspection and testing, including temporarily discontinuing portions of the work or uncovering or taking down portions of the finished work. Any inspection and testing performed by the City and its agents is for the sole benefit of the City and shall not relieve the Contractor of its duty, responsibility, and obligation to ensure that the work strictly complies with the Agreement terms and conditions and all applicable laws and building and safety codes. City’s inspection and testing shall not be deemed or considered acceptance by the City of any portion of the Project. City’s inspection and testing shall not serve to nullify, amend, or waive any warranties provided by the Contractor under this Agreement. b. Contractor shall, without charge, replace any material or correct any work found by the City or its agents to be defective or otherwise not in compliance with the terms and conditions of this Agreement. In the event Contractor fails to replace or correct any defective work or materials after reasonable written notice by the City to do so, the City may take such corrective action, either with its own materials and employees or by retaining any third party to do so, and deduct the cost and expense of such corrective action from the Contractor’s compensation. 9. Partial Utilization of the Project: City shall have the right to use or occupy any portion of the Project that City and Contractor mutually agree is substantially completed and constitutes a separately functioning and usable part of the Project for its intended purpose without significant interference with Contractor’s performance of the remaining portions of the Project. In the event City takes possession of any portion of the Project, such possession shall not be deemed an acceptance of the Project, in whole or in part. City’s use of any portion of the Project shall not be grounds for extensions of any construction deadlines or a change in the Contractor’s compensation. Contractor’s warranties shall run from the completion of the 117 Professional Services Master Task Order Agreement for Electrician Services Page 8 of 16 total Project and not from the date the City may take possession of selected portions of the Project. 10. Related Work at the Site: Nothing in this Agreement shall prevent or preclude City, through its own employees or by contract with any third party, from performing other work related to the Project at the construction site; provided such related work is not otherwise addressed in this Agreement and provided such related work does not otherwise interfere with Contractor’s performance of this Agreement or the completion of the Project. Contractor shall afford any City employee, agent or representative, or any third party under contract with the City to perform the related work, proper and safe access to the construction site, a reasonable opportunity for the introduction and storage of materials and equipment, the opportunity to perform the related work, and shall properly coordinate the Contractor’s work on the Project with the related work. 11. Contractor’s Warranties: Contractor represents and warrants as follows: a. Unless otherwise specified by the terms of the Task Order, all materials and equipment used by Contractor on the Project shall be new and where not otherwise specified, of the most suitable grade for their intended uses. b. All workmanship and materials shall be of a kind and nature acceptable to the City. c. All equipment, materials, and labor provided to, on, or for the Project must be free of defects and nonconformities in design, materials, and workmanship for a minimum period beginning with the commencement of the work on the Project and ending one (1) year from the final completion and acceptance by the City of the Project, regardless of whether such equipment, materials, or labor were supplied directly by Contractor or indirectly by Contractor’s subcontractors or suppliers. Other express warranties on materials that provide for a warranty period longer than one year apply for the period of that express warranty and are not reduced by this provision. Upon receipt of City’s written notice of a defective or nonconforming condition during the warranty period, Contractor shall take all actions, including redesign and replacement, to correct the defective or nonconforming condition within a time frame acceptable to the City and at no additional cost to the City. Contractor shall also, at its sole cost, perform any tests required by City to verify that such defective or nonconforming condition has been corrected. Contractor warrants the corrective action taken against defective and nonconforming conditions for a period of an additional one (1) year from the date of City’s acceptance of the corrective action. 118 Professional Services Master Task Order Agreement for Electrician Services Page 9 of 16 d. Contractor and its sureties are liable for the satisfaction and full performance of all warranties. e. Contractor shall give its personal attention to the faithful prosecution of the completion of the Project and Contractor, or its duly authorized representative assigned to serve as the Construction Project Manager, shall be personally present at the site of the Construction Project during working hours for the term of this Agreement until the completion of the Project. f. Contractor shall have a complete, accurate, and up-to-date set of construction plans, drawings, and specifications on site at all times. g. Contractor has examined all available records and made field examinations of the site of the Project. Contractor has knowledge of the field conditions to be encountered during the Project. Contractor has knowledge of the types and character of equipment necessary for the work, the types of materials needed and the sources of such materials, and the condition of the local labor market. h. Contractor is responsible for the safety of the work and shall maintain all lights, guards, signs, temporary passages, or other protections necessary for that purpose at all times. i. All work must be performed at Contractor’s risk, and Contractor shall promptly repair or replace all damage and loss at its sole cost and expense regardless of the reason or cause of the damage or loss; provided, however, should the damage or loss be caused by an intentional or negligent act of the City, the risk of such loss shall be placed on the City. j. Contractor is responsible for any loss or damage to materials, tools, or other articles used or held for use in the completion of performance of the Project. k. Contractor’s performance must be without damage or disruption to any other work or property of the City or of others and without interference with the operation of existing machinery or equipment. l. Title to all work, materials, and equipment covered by any payment of Contractor’s compensation by City, whether directly incorporated into the Project or not, passes to City at the time of payment, free and clear of all liens and encumbrances. 119 Professional Services Master Task Order Agreement for Electrician Services Page 10 of 16 12. Termination for Contractor’s Fault: a. If Contractor refuses or fails to timely do the work, or any part thereof, or fails to perform any of its obligations under this Agreement, or otherwise breaches any terms or conditions of this Agreement, the City may, by written notice, terminate this Agreement or any individual Task Order under this Agreement and the Contractor’s right to proceed with all or any part of the work (“Termination Notice Due to Contractor’s Fault”). The City may then take over the work and complete it, either with its own resources or by re-letting the contract to any other third party. b. In the event of a termination pursuant to this Section 8, Contractor shall be entitled to payment only for those services Contractor actually rendered. c. Any termination provided for by this Section 8 shall be in addition to any other remedies to which the City may be entitled under the law or at equity. d. In the event of termination under this Section 8, Contractor shall, under no circumstances, be entitled to claim or recover consequential, special, punitive, lost business opportunity, lost productivity, field office overhead, general conditions costs, or lost profits damages of any nature arising, or claimed to have arisen, as a result of the termination. 13. Termination for City’s Convenience: a. Should conditions arise which, in the sole opinion and discretion of the City, make it advisable to the City to cease performance under this Agreement; the City may terminate this Agreement or any Task Order under this Agreement by written notice to Contractor (“Notice of Termination for City’s Convenience”). The termination shall be effective in the manner specified in the Notice of Termination for City’s Convenience and shall be without prejudice to any claims that the City may otherwise have against Contractor. b. Upon receipt of the Notice of Termination for City’s Convenience, unless otherwise directed in the Notice, the Contractor shall immediately cease performance under this Agreement or any Task Order under this Agreement and make every reasonable effort to refrain from continuing work, incurring additional expenses or costs under this Agreement or any Task Order under this Agreement and shall immediately cancel all existing orders or contracts upon terms satisfactory to the City. Contractor shall do 120 Professional Services Master Task Order Agreement for Electrician Services Page 11 of 16 only such work as may be necessary to preserve, protect, and maintain work already completed or immediately in progress. c. In the event of a termination pursuant to this Section 9, Contractor is entitled to payment only for those services Contractor actually rendered on or before the receipt of the Notice of Termination for City’s Convenience. d. The compensation described in Section 9(c) is the sole compensation due to Contractor for its performance of this Agreement. Contractor shall, under no circumstances, be entitled to claim or recover consequential, special, punitive, lost business opportunity, lost productivity, field office overhead, general conditions costs, or lost profits damages of any nature arising, or claimed to have arisen, as a result of the termination. 14. Limitation on Contractor’s Damages; Time for Asserting Claim: a. In the event of a claim for damages by Contractor under this Agreement, Contractor’s damages shall be limited to contract damages and Contractor hereby expressly waives any right to claim or recover consequential, special, punitive, lost business opportunity, lost productivity, field office overhead, general conditions costs, or lost profits damages of any nature or kind. b. In the event Contractor wants to assert a claim for damages of any kind or nature, Contractor shall provide City with written notice of its claim, the facts and circumstances surrounding and giving rise to the claim, and the total amount of damages sought by the claim, within thirty (30) days of the facts and circumstances giving rise to the claim. In the event Contractor fails to provide such notice, Contractor shall waive all rights to assert such claim. 15. Representatives: a. City’s Representative: The City’s Representative for the purpose of this Agreement shall be Max Ziegler, Facilities Project Coordinator, or such other individual as City shall designate in writing. Whenever approval or authorization from or communication or submission to City is required by this Agreement, such communication or submission shall be directed to the City’s Representative and approvals or authorizations shall be issued only by such Representative; provided, however, that in exigent circumstances when City’s Representative is not available, 121 Professional Services Master Task Order Agreement for Electrician Services Page 12 of 16 Contractor may direct its communication or submission to other designated City personnel or agents and may receive approvals or authorization from such persons. b. Contractor’s Representative: The Contractor’s Representative for the purpose of this Agreement shall be Robert Cok or such other individual as Contractor shall designate in writing. Whenever direction to or communication with Contractor is required by this Agreement, such direction or communication shall be directed to Contractor’s Representative; provided, however, that in exigent circumstances when Contractor’s Representative is not available, City may direct its direction or communication to other designated Contractor personnel or agents. c. Notices: All notices required by this Agreement shall be in writing and shall be provided to the Representatives named in this Section. Notices shall be deemed given when delivered, if delivered by courier to Party’s address shown above during normal business hours of the recipient; or when sent, if sent by email or fax (with a successful transmission report) to the email address or fax number provided by the Party’s Representative; or on the fifth business day following mailing, if mailed by ordinary mail to the address shown above, postage prepaid. 16. Permits: Contractor shall provide all notices, comply with all applicable laws, ordinances, rules, and regulations, obtain all necessary permits, licenses, including a City of Bozeman business license, and inspections from applicable governmental authorities, and pay all fees and charges in connection therewith. 17. Laws and Regulations: Contractor shall comply fully with all applicable state and federal laws, regulations, and municipal ordinances including, but not limited to, all workers’ compensation laws, all environmental laws including, but not limited to, the generation and disposal of hazardous waste, the Occupational Safety and Health Act (OSHA), the safety rules, codes, and provisions of the Montana Safety Act in Title 50, Chapter 71, MCA, all applicable City, County, and State building and electrical codes, the Americans with Disabilities Act, and all non-discrimination, affirmative action, and utilization of minority and small business statutes and regulations. 18. Nondiscrimination and Equal Pay: a. 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 122 Professional Services Master Task Order Agreement for Electrician Services Page 13 of 16 discriminate against a person in compensation or in a term, condition, or privilege of employment because of race, color, religion, creed, political ideas, sex, age, marital status, national origin, actual or perceived sexual orientation, gender identity, physical or mental disability, except when the reasonable demands of the position require an age, physical or mental disability, marital status or sex distinction. The Contractor shall be subject to and comply with Title VI of the Civil Rights Act of 1964; Section 140, Title 2, United States Code, and all regulations promulgated thereunder. b. 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. c. Contractor shall require these nondiscrimination terms of its subcontractors providing services under this Agreement. 19. Intoxicants; DOT Drug and Alcohol Regulations/Safety and Training: a. Contractor shall not permit or suffer the introduction or use of any intoxicants, including alcohol or illegal drugs, by any employee or agent engaged in services to the City under this Agreement while on City property or in the performance of any activities under this Agreement. Contractor acknowledges it is aware of and shall comply with its responsibilities and obligations under the U.S. Department of Transportation (DOT) regulations governing anti-drug and alcohol misuse prevention plans and related testing. City shall have the right to request proof of such compliance and Contractor shall be obligated to furnish such proof. b. The Contractor shall be responsible for instructing and training the Contractor's employees and agents in proper and specified work methods and procedures. The Contractor shall provide continuous inspection and supervision of the work performed. The Contractor is responsible for instructing his employees and agents in safe work practices. 20. Modification and Assignability: This Agreement may not be enlarged, modified or altered except by written agreement signed by both parties hereto. The Contractor may not subcontract or assign Contractor’s rights, including the right to compensation or duties arising hereunder, without the prior written consent of City. Any subcontractor or assignee will be bound by all of the terms and conditions of this Agreement. 123 Professional Services Master Task Order Agreement for Electrician Services Page 14 of 16 21. Reports/Accountability/Public Information: Contractor agrees to develop and/or provide documentation as requested by the City demonstrating Contractor’s compliance with the requirements of this Agreement. Contractor shall allow the City, its auditors, and other persons authorized by the City to inspect and copy its books and records for the purpose of verifying that the reimbursement of monies distributed to Contractor pursuant to this Agreement was used in compliance with this Agreement and all applicable provisions of federal, state, and local law. The Contractor shall not issue any statements, releases or information for public dissemination without prior approval of the City. 22. Non-Waiver: A waiver by either party any default or breach by the other party of any terms or conditions of this Agreement does not limit the other party’s right to enforce such term or conditions or to pursue any available legal or equitable rights in the event of any subsequent default or breach. 23. Attorney’s Fees and Costs: That 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 or the Party giving notice shall be entitled to reasonable attorney's fees and costs, including fees, salary, and costs of in-house counsel to include City Attorney. 24. Taxes: Contractor is obligated to pay all taxes of any kind or nature and make all appropriate employee withholdings. 25. Dispute Resolution: a. Any claim, controversy, or dispute between the parties, their agents, employees, or representatives shall be resolved first by negotiation between senior-level personnel from each party duly authorized to execute settlement agreements. Upon mutual agreement of the parties, the parties may invite an independent, disinterested mediator to assist in the negotiated settlement discussions. b. If the parties are unable to resolve the dispute within thirty (30) days from the date the dispute was first raised, then such dispute may only be resolved in a court of competent jurisdiction in compliance with the Applicable Law provisions of this Agreement. 26. Survival: Contractor’s indemnification shall survive the termination or expiration of this Agreement for the maximum period allowed under applicable law. 124 Professional Services Master Task Order Agreement for Electrician Services Page 15 of 16 27. Headings: The headings used in this Agreement are for convenience only and are not be construed as a part of the Agreement or as a limitation on the scope of the particular paragraphs to which they refer. 28. Severability: If any portion of this Agreement is held to be void or unenforceable, the balance thereof shall continue in effect. 29. Applicable Law: The parties agree that this Agreement is governed in all respects by the laws of the State of Montana. 30. Binding Effect: This Agreement is binding upon and inures to the benefit of the heirs, legal representatives, successors, and assigns of the parties. 31. 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. 32. Counterparts: This Agreement may be executed in counterparts, which together constitute one instrument. 33. Integration: This Agreement and all Exhibits attached hereto constitute the entire agreement of the parties. Covenants or representations not contained therein or made a part thereof by reference, are not binding upon the parties. There are no understandings between the parties other than as set forth in this Agreement. All communications, either verbal or written, made prior to the date of this Agreement are hereby abrogated and withdrawn unless specifically made a part of this Agreement by reference. 34. Consent to Electronic Signatures: The Parties have consented to execute this Agreement electronically in conformance with the Montana Uniform Electronic Transactions Act, Title 30, Chapter 18, Part 1, MCA. **** END OF AGREEMENT EXCEPT FOR SIGNATURES **** IN WITNESS WHEREOF, the parties hereto have executed this instrument the day and year first above written. CITY OF BOZEMAN, MONTANA ____________________________________ 125 Professional Services Master Task Order Agreement for Electrician Services Page 16 of 16 CONTRACTOR (Type Name Above) By________________________________ By__________________________________ Jeff Mihelich, City Manager Print Name: Print Title: ____________________________ APPROVED AS TO FORM: By_______________________________ Greg Sullivan, Bozeman City Attorney 126 EXHIBIT A 127 7620 Shedhorn Drive, Suite B Bozeman, MT 59718 Phone 406-585-3371 Fax 406-585-2804 www.armitageelectric.com Service Rate Sheet: 1/11/2024 Description Rate per man hour Maintenance Electrician $100.00 General building wiring, maintenance & pre-engineered installations. Service Electrician $120.00 General investigation, troubleshooting, and assessments. After hours service call $220.00 Includes $40.00 trip charge. Journeyman Electrician $120.00 Advanced technical support, test and analysis. Recommends specific site- solutions. Estimates (Bids) $120.00 Minimum Service Call $160.00 One hour- includes $40.00 trip charge. Payment terms Net-30 (payment due within 30 days of invoice date) Or as otherwise arranged. Material Prices & other charges The cost of materials is priced at standard resale levels. Permits, rental equipment and shipping fees are charged at net cost. These are our current rates and are subject to change if necessary to cover costs. 128 EXHIBIT B 129 City of Bozeman Term Contract: Task Order Number # PROJECT: Issued under the authority of City of Bozeman Term Contract Professional Services Agreement With: For: This Task Order is dated between: and The following representatives have been designated for the work performed under this Task Order City: Contractor: SCOPE OF WORK: COMPENSATION IN WITNESS WHEREOF, the parties authorized to commit resources of the parties have executed this Task Order: City of Bozeman 130 Professional Services Master Task Order Agreement for General Contracting Services Page 1 of 16 PROFESSIONAL SERVICES MASTER TASK ORDER AGREEMENT THIS AGREEMENT is made and entered into this _____ of January, 2024, 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, Bozeman Operations, 408 South Tracy #1, Bozeman, MT 59715, hereinafter referred to as “Contractor.” In consideration of the mutual covenants and agreements herein contained, the receipt and sufficiency whereof being hereby acknowledged, the parties hereto agree as follows: 1. Purpose: City agrees to enter into this agreement with Contractor to General Contracting Services as requested by the City through issuance of individual, consecutively numbered Task Orders on an as needed and requested basis. 2. Term/Effective Date: This Agreement is effective upon the date of its execution and will expire on January 1, 2029, unless extended or terminated as specifically provided for within the agreement. 3. Scope of Work: Contractor will perform the work and provide the services in accordance with the requirements of the Scope of Services. The Contractor will perform the specific services and schedule as mutually agreed upon by City and Contractor and included in each individual Task Order executed under the authority of this Agreement. Task Orders shall be in a format similar to EXHIBIT B, attached and made part of this Agreement. For conflicts between this Agreement and the Scope of Services the Agreement governs. 4. Payment: The terms of compensation to Contractor shall be agreed upon and included in each Task Order. The task order amount shall be based on the rates specified in EXHIBIT A. City agrees to pay Contractor the amount specified in the individual Task Orders. Any alteration or deviation from the described services that involves additional costs above the Agreement amount will be performed by Contractor after written request by the City, and will become an additional charge over and above the amount listed in EXHIBIT A. The City must agree in writing upon any additional charges. 131 Professional Services Master Task Order Agreement for General Contracting Services Page 2 of 16 5. Contractor’s Representations: To induce City to enter into this Agreement, Contractor makes the following representations: a. Contractor has familiarized itself with the nature and extent of this agreement, the Scope of Services and with all local conditions and federal, state and local laws, ordinances, rules, and regulations that in any manner may affect cost, progress or performance of the Scope of Services. b. For each individual Task Order, Contractor will familiarize itself with the nature and extent of the assignment, and with all local conditions and federal, state and local laws, ordinances, rules, and regulations that in any manner may affect cost, progress or performance of the Scope of Services and will provide a mutually agreeable Scope of Services for each Task Order. c. Contractor represents to City that it has the experience and ability to perform the services required by this Agreement; that it will perform said services in a professional, competent and timely manner and with diligence and skill ordinarily used by member in the same profession practicing at the same time and in the same locality; that it has the power to enter into and perform this Agreement and grant the rights granted in it; and that its performance of this Agreement shall not infringe upon or violate the rights of any third party, whether rights of copyright, trademark, privacy, publicity, libel, slander or any other rights of any nature whatsoever, or violate any federal, state and municipal laws. The City will not determine or exercise control as to general procedures or formats necessary to have these services meet this standard of care. 6. Independent Contractor Status/Labor Relations: a. The parties agree that Contractor is an independent contractor for purposes of this Agreement and is not to be considered an employee of the City for any purpose. Contractor is not subject to the terms and provisions of the City’s personnel policies handbook and may not be considered a City employee for workers’ compensation or any other purpose. Contractor is not authorized to represent the City or otherwise bind the City in any dealings between Contractor and any third parties. b. Contractor shall comply with the applicable requirements of the Workers’ Compensation Act, Title 39, Chapter 71, MCA, and the Occupational Disease Act of Montana, Title 39, Chapter 71, MCA. Contractor shall maintain workers’ compensation coverage for all members and employees of Contractor’s business, except for those members who are exempted by law. 132 Professional Services Master Task Order Agreement for General Contracting Services Page 3 of 16 c. Contractor shall furnish the City with copies showing one of the following: (1) a binder for workers’ compensation coverage by an insurer licensed and authorized to provide workers’ compensation insurance in the State of Montana; or (2) proof of exemption from workers’ compensation granted by law for independent contractors. d. Contractor shall post a legible statement of all wages and fringe benefits to be paid to the Contractor’s employees and the frequency of such payments (i.e., hourly wage employees shall be paid weekly). Such posting shall be made in a prominent and accessible location at the Contractor’s normal place of business and shall be made no later than the first day of services provided under this Agreement. Such posting shall be removed only upon expiration or termination of this Agreement. e. In performing the services under this Agreement, Contractor shall give preference to the employment of bona fide residents of Montana, as required by §18-2-403, MCA, as such term is defined by §18-2-401(1), MCA. When making assignments of work, Contractor shall use workers both skilled in their trade and specialized in their field of work for all work to which they are assigned. f. Pursuant to §§18-2-403 and 18-2-422, MCA, Contractor shall pay wages, fringe benefits, and expenses, including travel allowances as set forth in the current Montana Prevailing Wage Rate for Non Construction Services in effect and applicable to Gallatin County, Montana, which schedule is incorporated herein. Contractor shall pay all hourly wage employees on a weekly basis. Violation of the requirements set forth in the above State of Montana schedule of prevailing wage rates may subject the Contractor to the penalties set forth in §18-2-407, MCA. Contractor shall maintain payroll records during the term of this Agreement and for a period of three (3) years following termination of this Agreement. g. The Contractor shall ensure that any person, firm or entity performing any portion of the services under this Agreement for which the contractor, subcontractor or employer is responsible, is paid the applicable standard prevailing rate of wages. h. In the event that, during the term of this Agreement, any labor problems or disputes of any type arise or materialize which in turn cause any services to cease for any period of time, Contractor specifically agrees to take immediate steps, at its own expense and without expectation of reimbursement from City, to alleviate or resolve all such labor problems or disputes. The specific steps Contractor shall take shall be left to the discretion of Contractor; provided, however, that Contractor shall bear all costs of any 133 Professional Services Master Task Order Agreement for General Contracting Services Page 4 of 16 related legal action. Contractor shall provide immediate relief to the City so as to permit the services to continue at no additional cost to City. i. Contractor shall indemnify and hold the City harmless from any and all claims, demands, costs, expenses, damages, and liabilities arising out of, resulting from, or occurring in connection with any labor problems or disputes or any delays or stoppages of work associated with such problems or disputes and for any claims regarding underpaid prevailing wages. 7. Indemnity/Waiver of Claims/Insurance: a. For other than professional services rendered, to the fullest extent permitted by law, Contractor agrees to release, defend, indemnify, and hold harmless the City, its agents, representatives, employees, and officers (collectively referred to for purposes of this Section as the City) from and against any and all claims, demands, actions, fees and costs (including attorney’s fees and the costs and fees of and expert witness and consultants), losses, expenses, liabilities (including liability where activity is inherently or intrinsically dangerous) or damages of whatever kind or nature connected therewith and without limit and without regard to the cause or causes thereof or the negligence of any party or parties that may be asserted against, recovered from or suffered by the City occasioned by, growing or arising out of or resulting from or in any way related to: (i) the negligent, reckless, or intentional misconduct of the Contractor; (ii) any negligent, reckless, or intentional misconduct of any of the Contractor’s agents; b. For the services rendered, to the fullest extent permitted by law, Contractor agrees to indemnify and hold the City harmless against claims, demands, suits, damages, losses, and expenses, including reasonable defense attorney fees, to the extent caused by the negligence or intentional misconduct of the Contractor or Contractor’s agents or employees. c. Such obligations shall not be construed to negate, abridge, or reduce other rights or obligations of indemnity that would otherwise exist. The indemnification obligations of this Section must not be construed to negate, abridge, or reduce any common-law or statutory rights of the indemnitee(s) which would otherwise exist as to such indemnitee(s). d. Contractor’s indemnity under this Section shall be without regard to and without any right to contribution from any insurance maintained by City. 134 Professional Services Master Task Order Agreement for General Contracting Services Page 5 of 16 e. Should the City be required to bring an action against the Contractor to assert its right to defense or indemnification under this Agreement or under the Contractor’s applicable insurance policies required below, the City shall be entitled to recover reasonable costs and attorney fees incurred in asserting its right to indemnification or defense but only if a court of competent jurisdiction determines the Contractor was obligated to defend the claim(s) or was obligated to indemnify the City for a claim(s) or any portion(s) thereof. f. In the event of an action filed against City resulting from the City’s performance under this Agreement, the City may elect to represent itself and incur all costs and expenses of suit. g. Contractor also waives any and all claims and recourse against the City or its officers, agents or employees, including the right of contribution for loss or damage to person or property arising from, growing out of, or in any way connected with or incident to the performance of this Agreement except “responsibility for his own fraud, for willful injury to the person or property of another, or for violation of law, whether willful or negligent” as per 28-2-702, MCA. h. These obligations shall survive termination of this Agreement and the services performed hereunder. i. In addition to and independent from the above, Contractor shall at Contractor’s expense secure insurance coverage through an insurance company or companies duly licensed and authorized to conduct insurance business in Montana which insures the liabilities and obligations specifically assumed by the Contractor in this Section. The insurance coverage shall not contain any exclusion for liabilities specifically assumed by the Contractor in subsection (a) of this Section. j. The insurance shall cover and apply to all claims, demands, suits, damages, losses, and expenses that may be asserted or claimed against, recovered from, or suffered by the City without limit and without regard to the cause therefore and which is acceptable to the City and Contractor shall furnish to the City an accompanying certificate of insurance and accompanying endorsements in amounts not less than as follows:  Workers’ Compensation – statutory;  Employers’ Liability - $1,000,000 per occurrence and annual aggregate;  Commercial General Liability - $1,000,000 per occurrence; $2,000,000 annual aggregate; 135 Professional Services Master Task Order Agreement for General Contracting Services Page 6 of 16  Automobile Liability - $1,000,000 property damage/bodily injury; $1,000,000 annual aggregate; and  Professional Liability - $1,000,000 per claim; $2,000,000 annual aggregate  Builder’s Risk/Property Insurance at least as broad as that provided by the ISO special causes of loss form (CP10 30) naming at a minimum the City in an amount equal to greater of Contractor’s compensation or full replacement value of the work (covering at a minimum all work, buildings, materials and equipment, whether on site or in transit, loss due to fire, lightening, theft, vandalism, malicious mischief, earthquake, collapse, debris removal, demolition occasioned by enforcement of laws, water damage, flood if site within a flood plain, repair or replacement costs, testing and start-up costs) on an all risk coverage basis. This insurance must include waivers of subrogation between the City and Contractor to the extent that damage to the Project or City Hall is covered by other insurance;  Owner’s and Contractor’s Protective Liability: one policy designating the City (including its agents, representatives, employees, and officers) as the insured and another independent policy designated the City’s Representative (including its consultants, consultants, agents and employees) as the insured on the declarations with both policies covering: (i) operations performed by the Contractor under this Agreement for the City; and (ii) the City’s and City’s Representatives acts or omissions, including negligent acts, in connection with its general supervision of the work of the Contractor’s and its subcontractors - $1,000,000 per occurrence; $2,000,000 aggregate;  Contractual Liability Insurance (covering the Contractor’s indemnity obligations described in this Agreement) - $1,000,000 per occurrence $2,000,000 aggregate k. The above amounts shall be exclusive of defense costs. The City of Bozeman, its officers, agents, and employees, shall be endorsed as an additional or named insured on a primary non-contributory basis on both the Commercial General and Automobile Liability policies. The insurance and required endorsements must be in a form suitable to City and shall include no less than a thirty (30) day notice of cancellation or non- renewal. The City must approve all insurance coverage and endorsements prior to the Contractor commencing work. Contractor shall notify City within two (2) business days of Contractor’s receipt of notice that any required insurance coverage will be terminated or Contractor’s decision to terminate any required insurance coverage for any reason. The City must approve all insurance coverage and endorsements prior to the Contractor commencing work. 136 Professional Services Master Task Order Agreement for General Contracting Services Page 7 of 16 l. Pursuant to the City’s authority provided for in 18-2-201(4), the Contractor shall not be required to provide bonds as required by 18-2-201(1) for individual task orders under this Agreement. Bonds may be waived as allowed under 18-2-201(4) for individual task orders. 8. Inspection and Testing: a. City has the right to inspect and test any and all work performed by Contractor under a task order’s scope of services, referred to as the “Project”, executed under the authority of this Agreement. Contractor shall allow City and its agents access to the Project at all times and shall provide every reasonable facility for the purpose of such inspection and testing, including temporarily discontinuing portions of the work or uncovering or taking down portions of the finished work. Any inspection and testing performed by the City and its agents is for the sole benefit of the City and shall not relieve the Contractor of its duty, responsibility, and obligation to ensure that the work strictly complies with the Agreement terms and conditions and all applicable laws and building and safety codes. City’s inspection and testing shall not be deemed or considered acceptance by the City of any portion of the Project. City’s inspection and testing shall not serve to nullify, amend, or waive any warranties provided by the Contractor under this Agreement. b. Contractor shall, without charge, replace any material or correct any work found by the City or its agents to be defective or otherwise not in compliance with the terms and conditions of this Agreement. In the event Contractor fails to replace or correct any defective work or materials after reasonable written notice by the City to do so, the City may take such corrective action, either with its own materials and employees or by retaining any third party to do so, and deduct the cost and expense of such corrective action from the Contractor’s compensation. 9. Partial Utilization of the Project: City shall have the right to use or occupy any portion of the Project that City and Contractor mutually agree is substantially completed and constitutes a separately functioning and usable part of the Project for its intended purpose without significant interference with Contractor’s performance of the remaining portions of the Project. In the event City takes possession of any portion of the Project, such possession shall not be deemed an acceptance of the Project, in whole or in part. City’s use of any portion of the Project shall not be grounds for extensions of any construction deadlines or a change in the Contractor’s compensation. Contractor’s warranties shall run from the completion of the 137 Professional Services Master Task Order Agreement for General Contracting Services Page 8 of 16 total Project and not from the date the City may take possession of selected portions of the Project. 10. Related Work at the Site: Nothing in this Agreement shall prevent or preclude City, through its own employees or by contract with any third party, from performing other work related to the Project at the construction site; provided such related work is not otherwise addressed in this Agreement and provided such related work does not otherwise interfere with Contractor’s performance of this Agreement or the completion of the Project. Contractor shall afford any City employee, agent or representative, or any third party under contract with the City to perform the related work, proper and safe access to the construction site, a reasonable opportunity for the introduction and storage of materials and equipment, the opportunity to perform the related work, and shall properly coordinate the Contractor’s work on the Project with the related work. 11. Contractor’s Warranties: Contractor represents and warrants as follows: a. Unless otherwise specified by the terms of the Task Order, all materials and equipment used by Contractor on the Project shall be new and where not otherwise specified, of the most suitable grade for their intended uses. b. All workmanship and materials shall be of a kind and nature acceptable to the City. c. All equipment, materials, and labor provided to, on, or for the Project must be free of defects and nonconformities in design, materials, and workmanship for a minimum period beginning with the commencement of the work on the Project and ending one (1) year from the final completion and acceptance by the City of the Project, regardless of whether such equipment, materials, or labor were supplied directly by Contractor or indirectly by Contractor’s subcontractors or suppliers. Other express warranties on materials that provide for a warranty period longer than one year apply for the period of that express warranty and are not reduced by this provision. Upon receipt of City’s written notice of a defective or nonconforming condition during the warranty period, Contractor shall take all actions, including redesign and replacement, to correct the defective or nonconforming condition within a time frame acceptable to the City and at no additional cost to the City. Contractor shall also, at its sole cost, perform any tests required by City to verify that such defective or nonconforming condition has been corrected. Contractor warrants the corrective action taken against defective and nonconforming conditions for a period of an additional one (1) year from the date of City’s acceptance of the corrective action. 138 Professional Services Master Task Order Agreement for General Contracting Services Page 9 of 16 d. Contractor and its sureties are liable for the satisfaction and full performance of all warranties. e. Contractor shall give its personal attention to the faithful prosecution of the completion of the Project and Contractor, or its duly authorized representative assigned to serve as the Construction Project Manager, shall be personally present at the site of the Construction Project during working hours for the term of this Agreement until the completion of the Project. f. Contractor shall have a complete, accurate, and up-to-date set of construction plans, drawings, and specifications on site at all times. g. Contractor has examined all available records and made field examinations of the site of the Project. Contractor has knowledge of the field conditions to be encountered during the Project. Contractor has knowledge of the types and character of equipment necessary for the work, the types of materials needed and the sources of such materials, and the condition of the local labor market. h. Contractor is responsible for the safety of the work and shall maintain all lights, guards, signs, temporary passages, or other protections necessary for that purpose at all times. i. All work must be performed at Contractor’s risk, and Contractor shall promptly repair or replace all damage and loss at its sole cost and expense regardless of the reason or cause of the damage or loss; provided, however, should the damage or loss be caused by an intentional or negligent act of the City, the risk of such loss shall be placed on the City. j. Contractor is responsible for any loss or damage to materials, tools, or other articles used or held for use in the completion of performance of the Project. k. Contractor’s performance must be without damage or disruption to any other work or property of the City or of others and without interference with the operation of existing machinery or equipment. l. Title to all work, materials, and equipment covered by any payment of Contractor’s compensation by City, whether directly incorporated into the Project or not, passes to City at the time of payment, free and clear of all liens and encumbrances. 139 Professional Services Master Task Order Agreement for General Contracting Services Page 10 of 16 12. Termination for Contractor’s Fault: a. If Contractor refuses or fails to timely do the work, or any part thereof, or fails to perform any of its obligations under this Agreement, or otherwise breaches any terms or conditions of this Agreement, the City may, by written notice, terminate this Agreement or any individual Task Order under this Agreement and the Contractor’s right to proceed with all or any part of the work (“Termination Notice Due to Contractor’s Fault”). The City may then take over the work and complete it, either with its own resources or by re-letting the contract to any other third party. b. In the event of a termination pursuant to this Section 8, Contractor shall be entitled to payment only for those services Contractor actually rendered. c. Any termination provided for by this Section 8 shall be in addition to any other remedies to which the City may be entitled under the law or at equity. d. In the event of termination under this Section 8, Contractor shall, under no circumstances, be entitled to claim or recover consequential, special, punitive, lost business opportunity, lost productivity, field office overhead, general conditions costs, or lost profits damages of any nature arising, or claimed to have arisen, as a result of the termination. 13. Termination for City’s Convenience: a. Should conditions arise which, in the sole opinion and discretion of the City, make it advisable to the City to cease performance under this Agreement; the City may terminate this Agreement or any Task Order under this Agreement by written notice to Contractor (“Notice of Termination for City’s Convenience”). The termination shall be effective in the manner specified in the Notice of Termination for City’s Convenience and shall be without prejudice to any claims that the City may otherwise have against Contractor. b. Upon receipt of the Notice of Termination for City’s Convenience, unless otherwise directed in the Notice, the Contractor shall immediately cease performance under this Agreement or any Task Order under this Agreement and make every reasonable effort to refrain from continuing work, incurring additional expenses or costs under this Agreement or any Task Order under this Agreement and shall immediately cancel all existing orders or contracts upon terms satisfactory to the City. Contractor shall do 140 Professional Services Master Task Order Agreement for General Contracting Services Page 11 of 16 only such work as may be necessary to preserve, protect, and maintain work already completed or immediately in progress. c. In the event of a termination pursuant to this Section 9, Contractor is entitled to payment only for those services Contractor actually rendered on or before the receipt of the Notice of Termination for City’s Convenience. d. The compensation described in Section 9(c) is the sole compensation due to Contractor for its performance of this Agreement. Contractor shall, under no circumstances, be entitled to claim or recover consequential, special, punitive, lost business opportunity, lost productivity, field office overhead, general conditions costs, or lost profits damages of any nature arising, or claimed to have arisen, as a result of the termination. 14. Limitation on Contractor’s Damages; Time for Asserting Claim: a. In the event of a claim for damages by Contractor under this Agreement, Contractor’s damages shall be limited to contract damages and Contractor hereby expressly waives any right to claim or recover consequential, special, punitive, lost business opportunity, lost productivity, field office overhead, general conditions costs, or lost profits damages of any nature or kind. b. In the event Contractor wants to assert a claim for damages of any kind or nature, Contractor shall provide City with written notice of its claim, the facts and circumstances surrounding and giving rise to the claim, and the total amount of damages sought by the claim, within thirty (30) days of the facts and circumstances giving rise to the claim. In the event Contractor fails to provide such notice, Contractor shall waive all rights to assert such claim. 15. Representatives: a. City’s Representative: The City’s Representative for the purpose of this Agreement shall be Max Ziegler, Facilities Project Coordinator, or such other individual as City shall designate in writing. Whenever approval or authorization from or communication or submission to City is required by this Agreement, such communication or submission shall be directed to the City’s Representative and approvals or authorizations shall be issued only by such Representative; provided, however, that in exigent circumstances when City’s Representative is not available, 141 Professional Services Master Task Order Agreement for General Contracting Services Page 12 of 16 Contractor may direct its communication or submission to other designated City personnel or agents and may receive approvals or authorization from such persons. b. Contractor’s Representative: The Contractor’s Representative for the purpose of this Agreement shall be Ian Dodds or such other individual as Contractor shall designate in writing. Whenever direction to or communication with Contractor is required by this Agreement, such direction or communication shall be directed to Contractor’s Representative; provided, however, that in exigent circumstances when Contractor’s Representative is not available, City may direct its direction or communication to other designated Contractor personnel or agents. c. Notices: All notices required by this Agreement shall be in writing and shall be provided to the Representatives named in this Section. Notices shall be deemed given when delivered, if delivered by courier to Party’s address shown above during normal business hours of the recipient; or when sent, if sent by email or fax (with a successful transmission report) to the email address or fax number provided by the Party’s Representative; or on the fifth business day following mailing, if mailed by ordinary mail to the address shown above, postage prepaid. 16. Permits: Contractor shall provide all notices, comply with all applicable laws, ordinances, rules, and regulations, obtain all necessary permits, licenses, including a City of Bozeman business license, and inspections from applicable governmental authorities, and pay all fees and charges in connection therewith. 17. Laws and Regulations: Contractor shall comply fully with all applicable state and federal laws, regulations, and municipal ordinances including, but not limited to, all workers’ compensation laws, all environmental laws including, but not limited to, the generation and disposal of hazardous waste, the Occupational Safety and Health Act (OSHA), the safety rules, codes, and provisions of the Montana Safety Act in Title 50, Chapter 71, MCA, all applicable City, County, and State building and electrical codes, the Americans with Disabilities Act, and all non-discrimination, affirmative action, and utilization of minority and small business statutes and regulations. 18. Nondiscrimination and Equal Pay: a. 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 142 Professional Services Master Task Order Agreement for General Contracting Services Page 13 of 16 discriminate against a person in compensation or in a term, condition, or privilege of employment because of race, color, religion, creed, political ideas, sex, age, marital status, national origin, actual or perceived sexual orientation, gender identity, physical or mental disability, except when the reasonable demands of the position require an age, physical or mental disability, marital status or sex distinction. The Contractor shall be subject to and comply with Title VI of the Civil Rights Act of 1964; Section 140, Title 2, United States Code, and all regulations promulgated thereunder. b. 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. c. Contractor shall require these nondiscrimination terms of its subcontractors providing services under this Agreement. 19. Intoxicants; DOT Drug and Alcohol Regulations/Safety and Training: a. Contractor shall not permit or suffer the introduction or use of any intoxicants, including alcohol or illegal drugs, by any employee or agent engaged in services to the City under this Agreement while on City property or in the performance of any activities under this Agreement. Contractor acknowledges it is aware of and shall comply with its responsibilities and obligations under the U.S. Department of Transportation (DOT) regulations governing anti-drug and alcohol misuse prevention plans and related testing. City shall have the right to request proof of such compliance and Contractor shall be obligated to furnish such proof. b. The Contractor shall be responsible for instructing and training the Contractor's employees and agents in proper and specified work methods and procedures. The Contractor shall provide continuous inspection and supervision of the work performed. The Contractor is responsible for instructing his employees and agents in safe work practices. 20. Modification and Assignability: This Agreement may not be enlarged, modified or altered except by written agreement signed by both parties hereto. The Contractor may not subcontract or assign Contractor’s rights, including the right to compensation or duties arising hereunder, without the prior written consent of City. Any subcontractor or assignee will be bound by all of the terms and conditions of this Agreement. 143 Professional Services Master Task Order Agreement for General Contracting Services Page 14 of 16 21. Reports/Accountability/Public Information: Contractor agrees to develop and/or provide documentation as requested by the City demonstrating Contractor’s compliance with the requirements of this Agreement. Contractor shall allow the City, its auditors, and other persons authorized by the City to inspect and copy its books and records for the purpose of verifying that the reimbursement of monies distributed to Contractor pursuant to this Agreement was used in compliance with this Agreement and all applicable provisions of federal, state, and local law. The Contractor shall not issue any statements, releases or information for public dissemination without prior approval of the City. 22. Non-Waiver: A waiver by either party any default or breach by the other party of any terms or conditions of this Agreement does not limit the other party’s right to enforce such term or conditions or to pursue any available legal or equitable rights in the event of any subsequent default or breach. 23. Attorney’s Fees and Costs: That 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 or the Party giving notice shall be entitled to reasonable attorney's fees and costs, including fees, salary, and costs of in-house counsel to include City Attorney. 24. Taxes: Contractor is obligated to pay all taxes of any kind or nature and make all appropriate employee withholdings. 25. Dispute Resolution: a. Any claim, controversy, or dispute between the parties, their agents, employees, or representatives shall be resolved first by negotiation between senior-level personnel from each party duly authorized to execute settlement agreements. Upon mutual agreement of the parties, the parties may invite an independent, disinterested mediator to assist in the negotiated settlement discussions. b. If the parties are unable to resolve the dispute within thirty (30) days from the date the dispute was first raised, then such dispute may only be resolved in a court of competent jurisdiction in compliance with the Applicable Law provisions of this Agreement. 26. Survival: Contractor’s indemnification shall survive the termination or expiration of this Agreement for the maximum period allowed under applicable law. 144 Professional Services Master Task Order Agreement for General Contracting Services Page 15 of 16 27. Headings: The headings used in this Agreement are for convenience only and are not be construed as a part of the Agreement or as a limitation on the scope of the particular paragraphs to which they refer. 28. Severability: If any portion of this Agreement is held to be void or unenforceable, the balance thereof shall continue in effect. 29. Applicable Law: The parties agree that this Agreement is governed in all respects by the laws of the State of Montana. 30. Binding Effect: This Agreement is binding upon and inures to the benefit of the heirs, legal representatives, successors, and assigns of the parties. 31. 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. 32. Counterparts: This Agreement may be executed in counterparts, which together constitute one instrument. 33. Integration: This Agreement and all Exhibits attached hereto constitute the entire agreement of the parties. Covenants or representations not contained therein or made a part thereof by reference, are not binding upon the parties. There are no understandings between the parties other than as set forth in this Agreement. All communications, either verbal or written, made prior to the date of this Agreement are hereby abrogated and withdrawn unless specifically made a part of this Agreement by reference. 34. Consent to Electronic Signatures: The Parties have consented to execute this Agreement electronically in conformance with the Montana Uniform Electronic Transactions Act, Title 30, Chapter 18, Part 1, MCA. **** END OF AGREEMENT EXCEPT FOR SIGNATURES **** IN WITNESS WHEREOF, the parties hereto have executed this instrument the day and year first above written. CITY OF BOZEMAN, MONTANA ____________________________________ 145 Professional Services Master Task Order Agreement for General Contracting Services Page 16 of 16 CONTRACTOR (Type Name Above) By________________________________ By__________________________________ Jeff Mihelich, City Manager Print Name: Print Title: ____________________________ APPROVED AS TO FORM: By_______________________________ Greg Sullivan, Bozeman City Attorney 146 EXHIBIT A 147 Ian Dodds - Owner (406) 589-7077 bozemanoperations@outlook.com 408 South Tracy #1 Bozeman, Mt 59715 2024 Rate Sheet and Price List Time and Materials Contract Rates General Hourly Rate $82.00 Shop Hourly Rate $105.00 Materials Mark Up 10% Vendor Mark Up 10% General Contracting Rates Cost of Work plus a Fee 10% Materials Mark Up 10% Vendor Mark Up 10% On-Site Project Manager Hourly Rate $77.00 Sub-Contracting Rates Concrete flatwork, not including earth work $8.00 - $12.00 / square foot Concrete walls, 4’ not including earth work $100.00 - $120.00 / linear foot Steel Handrail Fabrication $120.00 - $240.00 / linear foot Earth Work, not including Import / Export $225.00 / hour Carpentry, Shop Rate $105.00 / hour 148 EXHIBIT B 149 City of Bozeman Term Contract: Task Order Number # PROJECT: Issued under the authority of City of Bozeman Term Contract Professional Services Agreement With: For: This Task Order is dated between: and The following representatives have been designated for the work performed under this Task Order City: Contractor: SCOPE OF WORK: COMPENSATION IN WITNESS WHEREOF, the parties authorized to commit resources of the parties have executed this Task Order: City of Bozeman 150 Professional Services Master Task Order Agreement for General Contracting, Consulting, and Architectural Services Page 1 of 16 PROFESSIONAL SERVICES MASTER TASK ORDER AGREEMENT THIS AGREEMENT is made and entered into this _____ of January, 2024, 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, Constructive Solutions Inc., P.O. Box 11529, Bozeman, MT 59719, hereinafter referred to as “Contractor.” In consideration of the mutual covenants and agreements herein contained, the receipt and sufficiency whereof being hereby acknowledged, the parties hereto agree as follows: 1. Purpose: City agrees to enter into this agreement with Contractor to provide General Contracting, Consulting, and Architectural Services as requested by the City through issuance of individual, consecutively numbered Task Orders on an as needed and requested basis. 2. Term/Effective Date: This Agreement is effective upon the date of its execution and will expire on January 1, 2029, unless extended or terminated as specifically provided for within the agreement. 3. Scope of Work: Contractor will perform the work and provide the services in accordance with the requirements of the Scope of Services. The Contractor will perform the specific services and schedule as mutually agreed upon by City and Contractor and included in each individual Task Order executed under the authority of this Agreement. Task Orders shall be in a format similar to EXHIBIT B, attached and made part of this Agreement. For conflicts between this Agreement and the Scope of Services the Agreement governs. 4. Payment: The terms of compensation to Contractor shall be agreed upon and included in each Task Order. The task order amount shall be based on the rates specified in EXHIBIT A. City agrees to pay Contractor the amount specified in the individual Task Orders. Any alteration or deviation from the described services that involves additional costs above the Agreement amount will be performed by Contractor after written request by the City, and will become an 151 Professional Services Master Task Order Agreement for General Contracting, Consulting, and Architectural Services Page 2 of 16 additional charge over and above the amount listed in EXHIBIT A. The City must agree in writing upon any additional charges. 5. Contractor’s Representations: To induce City to enter into this Agreement, Contractor makes the following representations: a. Contractor has familiarized itself with the nature and extent of this agreement, the Scope of Services and with all local conditions and federal, state and local laws, ordinances, rules, and regulations that in any manner may affect cost, progress or performance of the Scope of Services. b. For each individual Task Order, Contractor will familiarize itself with the nature and extent of the assignment, and with all local conditions and federal, state and local laws, ordinances, rules, and regulations that in any manner may affect cost, progress or performance of the Scope of Services and will provide a mutually agreeable Scope of Services for each Task Order. c. Contractor represents to City that it has the experience and ability to perform the services required by this Agreement; that it will perform said services in a professional, competent and timely manner and with diligence and skill ordinarily used by member in the same profession practicing at the same time and in the same locality; that it has the power to enter into and perform this Agreement and grant the rights granted in it; and that its performance of this Agreement shall not infringe upon or violate the rights of any third party, whether rights of copyright, trademark, privacy, publicity, libel, slander or any other rights of any nature whatsoever, or violate any federal, state and municipal laws. The City will not determine or exercise control as to general procedures or formats necessary to have these services meet this standard of care. 6. Independent Contractor Status/Labor Relations: a. The parties agree that Contractor is an independent contractor for purposes of this Agreement and is not to be considered an employee of the City for any purpose. Contractor is not subject to the terms and provisions of the City’s personnel policies handbook and may not be considered a City employee for workers’ compensation or any other purpose. Contractor is not authorized to represent the City or otherwise bind the City in any dealings between Contractor and any third parties. b. Contractor shall comply with the applicable requirements of the Workers’ Compensation Act, Title 39, Chapter 71, MCA, and the Occupational Disease Act of Montana, Title 39, Chapter 71, MCA. Contractor shall maintain workers’ 152 Professional Services Master Task Order Agreement for General Contracting, Consulting, and Architectural Services Page 3 of 16 compensation coverage for all members and employees of Contractor’s business, except for those members who are exempted by law. c. Contractor shall furnish the City with copies showing one of the following: (1) a binder for workers’ compensation coverage by an insurer licensed and authorized to provide workers’ compensation insurance in the State of Montana; or (2) proof of exemption from workers’ compensation granted by law for independent contractors. d. Contractor shall post a legible statement of all wages and fringe benefits to be paid to the Contractor’s employees and the frequency of such payments (i.e., hourly wage employees shall be paid weekly). Such posting shall be made in a prominent and accessible location at the Contractor’s normal place of business and shall be made no later than the first day of services provided under this Agreement. Such posting shall be removed only upon expiration or termination of this Agreement. e. In performing the services under this Agreement, Contractor shall give preference to the employment of bona fide residents of Montana, as required by §18-2-403, MCA, as such term is defined by §18-2-401(1), MCA. When making assignments of work, Contractor shall use workers both skilled in their trade and specialized in their field of work for all work to which they are assigned. f. Pursuant to §§18-2-403 and 18-2-422, MCA, Contractor shall pay wages, fringe benefits, and expenses, including travel allowances as set forth in the current Montana Prevailing Wage Rate for Non Construction Services in effect and applicable to Gallatin County, Montana, which schedule is incorporated herein. Contractor shall pay all hourly wage employees on a weekly basis. Violation of the requirements set forth in the above State of Montana schedule of prevailing wage rates may subject the Contractor to the penalties set forth in §18-2-407, MCA. Contractor shall maintain payroll records during the term of this Agreement and for a period of three (3) years following termination of this Agreement. g. The Contractor shall ensure that any person, firm or entity performing any portion of the services under this Agreement for which the contractor, subcontractor or employer is responsible, is paid the applicable standard prevailing rate of wages. h. In the event that, during the term of this Agreement, any labor problems or disputes of any type arise or materialize which in turn cause any services to cease for any period of time, Contractor specifically agrees to take immediate steps, at its own expense and 153 Professional Services Master Task Order Agreement for General Contracting, Consulting, and Architectural Services Page 4 of 16 without expectation of reimbursement from City, to alleviate or resolve all such labor problems or disputes. The specific steps Contractor shall take shall be left to the discretion of Contractor; provided, however, that Contractor shall bear all costs of any related legal action. Contractor shall provide immediate relief to the City so as to permit the services to continue at no additional cost to City. i. Contractor shall indemnify and hold the City harmless from any and all claims, demands, costs, expenses, damages, and liabilities arising out of, resulting from, or occurring in connection with any labor problems or disputes or any delays or stoppages of work associated with such problems or disputes and for any claims regarding underpaid prevailing wages. 7. Indemnity/Waiver of Claims/Insurance: a. For other than professional services rendered, to the fullest extent permitted by law, Contractor agrees to release, defend, indemnify, and hold harmless the City, its agents, representatives, employees, and officers (collectively referred to for purposes of this Section as the City) from and against any and all claims, demands, actions, fees and costs (including attorney’s fees and the costs and fees of and expert witness and consultants), losses, expenses, liabilities (including liability where activity is inherently or intrinsically dangerous) or damages of whatever kind or nature connected therewith and without limit and without regard to the cause or causes thereof or the negligence of any party or parties that may be asserted against, recovered from or suffered by the City occasioned by, growing or arising out of or resulting from or in any way related to: (i) the negligent, reckless, or intentional misconduct of the Contractor; (ii) any negligent, reckless, or intentional misconduct of any of the Contractor’s agents; b. For the services rendered, to the fullest extent permitted by law, Contractor agrees to indemnify and hold the City harmless against claims, demands, suits, damages, losses, and expenses, including reasonable defense attorney fees, to the extent caused by the negligence or intentional misconduct of the Contractor or Contractor’s agents or employees. c. Such obligations shall not be construed to negate, abridge, or reduce other rights or obligations of indemnity that would otherwise exist. The indemnification obligations of this Section must not be construed to negate, abridge, or reduce any common-law or statutory rights of the indemnitee(s) which would otherwise exist as to such indemnitee(s). 154 Professional Services Master Task Order Agreement for General Contracting, Consulting, and Architectural Services Page 5 of 16 d. Contractor’s indemnity under this Section shall be without regard to and without any right to contribution from any insurance maintained by City. e. Should the City be required to bring an action against the Contractor to assert its right to defense or indemnification under this Agreement or under the Contractor’s applicable insurance policies required below, the City shall be entitled to recover reasonable costs and attorney fees incurred in asserting its right to indemnification or defense but only if a court of competent jurisdiction determines the Contractor was obligated to defend the claim(s) or was obligated to indemnify the City for a claim(s) or any portion(s) thereof. f. In the event of an action filed against City resulting from the City’s performance under this Agreement, the City may elect to represent itself and incur all costs and expenses of suit. g. Contractor also waives any and all claims and recourse against the City or its officers, agents or employees, including the right of contribution for loss or damage to person or property arising from, growing out of, or in any way connected with or incident to the performance of this Agreement except “responsibility for his own fraud, for willful injury to the person or property of another, or for violation of law, whether willful or negligent” as per 28-2-702, MCA. h. These obligations shall survive termination of this Agreement and the services performed hereunder. i. In addition to and independent from the above, Contractor shall at Contractor’s expense secure insurance coverage through an insurance company or companies duly licensed and authorized to conduct insurance business in Montana which insures the liabilities and obligations specifically assumed by the Contractor in this Section. The insurance coverage shall not contain any exclusion for liabilities specifically assumed by the Contractor in subsection (a) of this Section. j. The insurance shall cover and apply to all claims, demands, suits, damages, losses, and expenses that may be asserted or claimed against, recovered from, or suffered by the City without limit and without regard to the cause therefore and which is acceptable to the City and Contractor shall furnish to the City an accompanying certificate of insurance and accompanying endorsements in amounts not less than as follows: 155 Professional Services Master Task Order Agreement for General Contracting, Consulting, and Architectural Services Page 6 of 16  Workers’ Compensation – statutory;  Employers’ Liability - $1,000,000 per occurrence and annual aggregate;  Commercial General Liability - $1,000,000 per occurrence; $2,000,000 annual aggregate;  Automobile Liability - $1,000,000 property damage/bodily injury; $1,000,000 annual aggregate; and  Professional Liability - $1,000,000 per claim; $2,000,000 annual aggregate  Builder’s Risk/Property Insurance at least as broad as that provided by the ISO special causes of loss form (CP10 30) naming at a minimum the City in an amount equal to greater of Contractor’s compensation or full replacement value of the work (covering at a minimum all work, buildings, materials and equipment, whether on site or in transit, loss due to fire, lightening, theft, vandalism, malicious mischief, earthquake, collapse, debris removal, demolition occasioned by enforcement of laws, water damage, flood if site within a flood plain, repair or replacement costs, testing and start-up costs) on an all risk coverage basis. This insurance must include waivers of subrogation between the City and Contractor to the extent that damage to the Project or City Hall is covered by other insurance;  Owner’s and Contractor’s Protective Liability: one policy designating the City (including its agents, representatives, employees, and officers) as the insured and another independent policy designated the City’s Representative (including its consultants, consultants, agents and employees) as the insured on the declarations with both policies covering: (i) operations performed by the Contractor under this Agreement for the City; and (ii) the City’s and City’s Representatives acts or omissions, including negligent acts, in connection with its general supervision of the work of the Contractor’s and its subcontractors - $1,000,000 per occurrence; $2,000,000 aggregate;  Contractual Liability Insurance (covering the Contractor’s indemnity obligations described in this Agreement) - $1,000,000 per occurrence $2,000,000 aggregate k. The above amounts shall be exclusive of defense costs. The City of Bozeman, its officers, agents, and employees, shall be endorsed as an additional or named insured on a primary non-contributory basis on both the Commercial General and Automobile Liability policies. The insurance and required endorsements must be in a form suitable to City and shall include no less than a thirty (30) day notice of cancellation or non- 156 Professional Services Master Task Order Agreement for General Contracting, Consulting, and Architectural Services Page 7 of 16 renewal. The City must approve all insurance coverage and endorsements prior to the Contractor commencing work. Contractor shall notify City within two (2) business days of Contractor’s receipt of notice that any required insurance coverage will be terminated or Contractor’s decision to terminate any required insurance coverage for any reason. The City must approve all insurance coverage and endorsements prior to the Contractor commencing work. l. Pursuant to the City’s authority provided for in 18-2-201(4), the Contractor shall not be required to provide bonds as required by 18-2-201(1) for individual task orders under this Agreement. Bonds may be waived as allowed under 18-2-201(4) for individual task orders. 8. Inspection and Testing: a. City has the right to inspect and test any and all work performed by Contractor under a task order’s scope of services, referred to as the “Project”, executed under the authority of this Agreement. Contractor shall allow City and its agents access to the Project at all times and shall provide every reasonable facility for the purpose of such inspection and testing, including temporarily discontinuing portions of the work or uncovering or taking down portions of the finished work. Any inspection and testing performed by the City and its agents is for the sole benefit of the City and shall not relieve the Contractor of its duty, responsibility, and obligation to ensure that the work strictly complies with the Agreement terms and conditions and all applicable laws and building and safety codes. City’s inspection and testing shall not be deemed or considered acceptance by the City of any portion of the Project. City’s inspection and testing shall not serve to nullify, amend, or waive any warranties provided by the Contractor under this Agreement. b. Contractor shall, without charge, replace any material or correct any work found by the City or its agents to be defective or otherwise not in compliance with the terms and conditions of this Agreement. In the event Contractor fails to replace or correct any defective work or materials after reasonable written notice by the City to do so, the City may take such corrective action, either with its own materials and employees or by retaining any third party to do so, and deduct the cost and expense of such corrective action from the Contractor’s compensation. 157 Professional Services Master Task Order Agreement for General Contracting, Consulting, and Architectural Services Page 8 of 16 9. Partial Utilization of the Project: City shall have the right to use or occupy any portion of the Project that City and Contractor mutually agree is substantially completed and constitutes a separately functioning and usable part of the Project for its intended purpose without significant interference with Contractor’s performance of the remaining portions of the Project. In the event City takes possession of any portion of the Project, such possession shall not be deemed an acceptance of the Project, in whole or in part. City’s use of any portion of the Project shall not be grounds for extensions of any construction deadlines or a change in the Contractor’s compensation. Contractor’s warranties shall run from the completion of the total Project and not from the date the City may take possession of selected portions of the Project. 10. Related Work at the Site: Nothing in this Agreement shall prevent or preclude City, through its own employees or by contract with any third party, from performing other work related to the Project at the construction site; provided such related work is not otherwise addressed in this Agreement and provided such related work does not otherwise interfere with Contractor’s performance of this Agreement or the completion of the Project. Contractor shall afford any City employee, agent or representative, or any third party under contract with the City to perform the related work, proper and safe access to the construction site, a reasonable opportunity for the introduction and storage of materials and equipment, the opportunity to perform the related work, and shall properly coordinate the Contractor’s work on the Project with the related work. 11. Contractor’s Warranties: Contractor represents and warrants as follows: a. Unless otherwise specified by the terms of the Task Order, all materials and equipment used by Contractor on the Project shall be new and where not otherwise specified, of the most suitable grade for their intended uses. b. All workmanship and materials shall be of a kind and nature acceptable to the City. c. All equipment, materials, and labor provided to, on, or for the Project must be free of defects and nonconformities in design, materials, and workmanship for a minimum period beginning with the commencement of the work on the Project and ending one (1) year from the final completion and acceptance by the City of the Project, regardless of whether such equipment, materials, or labor were supplied directly by Contractor or indirectly by Contractor’s subcontractors or suppliers. Other express warranties on materials that provide for a warranty period longer than one year apply for the period of that express warranty and are not reduced by this provision. Upon receipt of City’s 158 Professional Services Master Task Order Agreement for General Contracting, Consulting, and Architectural Services Page 9 of 16 written notice of a defective or nonconforming condition during the warranty period, Contractor shall take all actions, including redesign and replacement, to correct the defective or nonconforming condition within a time frame acceptable to the City and at no additional cost to the City. Contractor shall also, at its sole cost, perform any tests required by City to verify that such defective or nonconforming condition has been corrected. Contractor warrants the corrective action taken against defective and nonconforming conditions for a period of an additional one (1) year from the date of City’s acceptance of the corrective action. d. Contractor and its sureties are liable for the satisfaction and full performance of all warranties. e. Contractor shall give its personal attention to the faithful prosecution of the completion of the Project and Contractor, or its duly authorized representative assigned to serve as the Construction Project Manager, shall be personally present at the site of the Construction Project during working hours for the term of this Agreement until the completion of the Project. f. Contractor shall have a complete, accurate, and up-to-date set of construction plans, drawings, and specifications on site at all times. g. Contractor has examined all available records and made field examinations of the site of the Project. Contractor has knowledge of the field conditions to be encountered during the Project. Contractor has knowledge of the types and character of equipment necessary for the work, the types of materials needed and the sources of such materials, and the condition of the local labor market. h. Contractor is responsible for the safety of the work and shall maintain all lights, guards, signs, temporary passages, or other protections necessary for that purpose at all times. i. All work must be performed at Contractor’s risk, and Contractor shall promptly repair or replace all damage and loss at its sole cost and expense regardless of the reason or cause of the damage or loss; provided, however, should the damage or loss be caused by an intentional or negligent act of the City, the risk of such loss shall be placed on the City. 159 Professional Services Master Task Order Agreement for General Contracting, Consulting, and Architectural Services Page 10 of 16 j. Contractor is responsible for any loss or damage to materials, tools, or other articles used or held for use in the completion of performance of the Project. k. Contractor’s performance must be without damage or disruption to any other work or property of the City or of others and without interference with the operation of existing machinery or equipment. l. Title to all work, materials, and equipment covered by any payment of Contractor’s compensation by City, whether directly incorporated into the Project or not, passes to City at the time of payment, free and clear of all liens and encumbrances. 12. Termination for Contractor’s Fault: a. If Contractor refuses or fails to timely do the work, or any part thereof, or fails to perform any of its obligations under this Agreement, or otherwise breaches any terms or conditions of this Agreement, the City may, by written notice, terminate this Agreement or any individual Task Order under this Agreement and the Contractor’s right to proceed with all or any part of the work (“Termination Notice Due to Contractor’s Fault”). The City may then take over the work and complete it, either with its own resources or by re-letting the contract to any other third party. b. In the event of a termination pursuant to this Section 8, Contractor shall be entitled to payment only for those services Contractor actually rendered. c. Any termination provided for by this Section 8 shall be in addition to any other remedies to which the City may be entitled under the law or at equity. d. In the event of termination under this Section 8, Contractor shall, under no circumstances, be entitled to claim or recover consequential, special, punitive, lost business opportunity, lost productivity, field office overhead, general conditions costs, or lost profits damages of any nature arising, or claimed to have arisen, as a result of the termination. 13. Termination for City’s Convenience: a. Should conditions arise which, in the sole opinion and discretion of the City, make it advisable to the City to cease performance under this Agreement; the City may terminate this Agreement or any Task Order under this Agreement by written notice 160 Professional Services Master Task Order Agreement for General Contracting, Consulting, and Architectural Services Page 11 of 16 to Contractor (“Notice of Termination for City’s Convenience”). The termination shall be effective in the manner specified in the Notice of Termination for City’s Convenience and shall be without prejudice to any claims that the City may otherwise have against Contractor. b. Upon receipt of the Notice of Termination for City’s Convenience, unless otherwise directed in the Notice, the Contractor shall immediately cease performance under this Agreement or any Task Order under this Agreement and make every reasonable effort to refrain from continuing work, incurring additional expenses or costs under this Agreement or any Task Order under this Agreement and shall immediately cancel all existing orders or contracts upon terms satisfactory to the City. Contractor shall do only such work as may be necessary to preserve, protect, and maintain work already completed or immediately in progress. c. In the event of a termination pursuant to this Section 9, Contractor is entitled to payment only for those services Contractor actually rendered on or before the receipt of the Notice of Termination for City’s Convenience. d. The compensation described in Section 9(c) is the sole compensation due to Contractor for its performance of this Agreement. Contractor shall, under no circumstances, be entitled to claim or recover consequential, special, punitive, lost business opportunity, lost productivity, field office overhead, general conditions costs, or lost profits damages of any nature arising, or claimed to have arisen, as a result of the termination. 14. Limitation on Contractor’s Damages; Time for Asserting Claim: a. In the event of a claim for damages by Contractor under this Agreement, Contractor’s damages shall be limited to contract damages and Contractor hereby expressly waives any right to claim or recover consequential, special, punitive, lost business opportunity, lost productivity, field office overhead, general conditions costs, or lost profits damages of any nature or kind. b. In the event Contractor wants to assert a claim for damages of any kind or nature, Contractor shall provide City with written notice of its claim, the facts and circumstances surrounding and giving rise to the claim, and the total amount of damages sought by the claim, within thirty (30) days of the facts and circumstances giving rise to the claim. In the event Contractor fails to provide such notice, Contractor shall waive all rights to assert such claim. 161 Professional Services Master Task Order Agreement for General Contracting, Consulting, and Architectural Services Page 12 of 16 15. Representatives: a. City’s Representative: The City’s Representative for the purpose of this Agreement shall be Max Ziegler, Facilities Project Coordinator, or such other individual as City shall designate in writing. Whenever approval or authorization from or communication or submission to City is required by this Agreement, such communication or submission shall be directed to the City’s Representative and approvals or authorizations shall be issued only by such Representative; provided, however, that in exigent circumstances when City’s Representative is not available, Contractor may direct its communication or submission to other designated City personnel or agents and may receive approvals or authorization from such persons. b. Contractor’s Representative: The Contractor’s Representative for the purpose of this Agreement shall be Rob Evans or such other individual as Contractor shall designate in writing. Whenever direction to or communication with Contractor is required by this Agreement, such direction or communication shall be directed to Contractor’s Representative; provided, however, that in exigent circumstances when Contractor’s Representative is not available, City may direct its direction or communication to other designated Contractor personnel or agents. c. Notices: All notices required by this Agreement shall be in writing and shall be provided to the Representatives named in this Section. Notices shall be deemed given when delivered, if delivered by courier to Party’s address shown above during normal business hours of the recipient; or when sent, if sent by email or fax (with a successful transmission report) to the email address or fax number provided by the Party’s Representative; or on the fifth business day following mailing, if mailed by ordinary mail to the address shown above, postage prepaid. 16. Permits: Contractor shall provide all notices, comply with all applicable laws, ordinances, rules, and regulations, obtain all necessary permits, licenses, including a City of Bozeman business license, and inspections from applicable governmental authorities, and pay all fees and charges in connection therewith. 162 Professional Services Master Task Order Agreement for General Contracting, Consulting, and Architectural Services Page 13 of 16 17. Laws and Regulations: Contractor shall comply fully with all applicable state and federal laws, regulations, and municipal ordinances including, but not limited to, all workers’ compensation laws, all environmental laws including, but not limited to, the generation and disposal of hazardous waste, the Occupational Safety and Health Act (OSHA), the safety rules, codes, and provisions of the Montana Safety Act in Title 50, Chapter 71, MCA, all applicable City, County, and State building and electrical codes, the Americans with Disabilities Act, and all non-discrimination, affirmative action, and utilization of minority and small business statutes and regulations. 18. Nondiscrimination and Equal Pay: a. The Contractor agrees that all hiring by Contractor of persons performing this Agreement shall be on the basis of merit and qualifications. The Contractor will have a policy to provide equal employment opportunity in accordance with all applicable state and federal anti-discrimination laws, regulations, and contracts. The Contractor will not refuse employment to a person, bar a person from employment, or discriminate against a person in compensation or in a term, condition, or privilege of employment because of race, color, religion, creed, political ideas, sex, age, marital status, national origin, actual or perceived sexual orientation, gender identity, physical or mental disability, except when the reasonable demands of the position require an age, physical or mental disability, marital status or sex distinction. The Contractor shall be subject to and comply with Title VI of the Civil Rights Act of 1964; Section 140, Title 2, United States Code, and all regulations promulgated thereunder. b. 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. c. Contractor shall require these nondiscrimination terms of its subcontractors providing services under this Agreement. 19. Intoxicants; DOT Drug and Alcohol Regulations/Safety and Training: a. Contractor shall not permit or suffer the introduction or use of any intoxicants, including alcohol or illegal drugs, by any employee or agent engaged in services to the City under this Agreement while on City property or in the performance of any activities under this Agreement. Contractor acknowledges it is aware of and shall comply with its responsibilities and obligations under the U.S. Department of 163 Professional Services Master Task Order Agreement for General Contracting, Consulting, and Architectural Services Page 14 of 16 Transportation (DOT) regulations governing anti-drug and alcohol misuse prevention plans and related testing. City shall have the right to request proof of such compliance and Contractor shall be obligated to furnish such proof. b. The Contractor shall be responsible for instructing and training the Contractor's employees and agents in proper and specified work methods and procedures. The Contractor shall provide continuous inspection and supervision of the work performed. The Contractor is responsible for instructing his employees and agents in safe work practices. 20. Modification and Assignability: This Agreement may not be enlarged, modified or altered except by written agreement signed by both parties hereto. The Contractor may not subcontract or assign Contractor’s rights, including the right to compensation or duties arising hereunder, without the prior written consent of City. Any subcontractor or assignee will be bound by all of the terms and conditions of this Agreement. 21. Reports/Accountability/Public Information: Contractor agrees to develop and/or provide documentation as requested by the City demonstrating Contractor’s compliance with the requirements of this Agreement. Contractor shall allow the City, its auditors, and other persons authorized by the City to inspect and copy its books and records for the purpose of verifying that the reimbursement of monies distributed to Contractor pursuant to this Agreement was used in compliance with this Agreement and all applicable provisions of federal, state, and local law. The Contractor shall not issue any statements, releases or information for public dissemination without prior approval of the City. 22. Non-Waiver: A waiver by either party any default or breach by the other party of any terms or conditions of this Agreement does not limit the other party’s right to enforce such term or conditions or to pursue any available legal or equitable rights in the event of any subsequent default or breach. 23. Attorney’s Fees and Costs: That 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 or the Party giving notice shall be entitled to reasonable attorney's fees and costs, including fees, salary, and costs of in-house counsel to include City Attorney. 24. Taxes: Contractor is obligated to pay all taxes of any kind or nature and make all appropriate employee withholdings. 164 Professional Services Master Task Order Agreement for General Contracting, Consulting, and Architectural Services Page 15 of 16 25. Dispute Resolution: a. Any claim, controversy, or dispute between the parties, their agents, employees, or representatives shall be resolved first by negotiation between senior-level personnel from each party duly authorized to execute settlement agreements. Upon mutual agreement of the parties, the parties may invite an independent, disinterested mediator to assist in the negotiated settlement discussions. b. If the parties are unable to resolve the dispute within thirty (30) days from the date the dispute was first raised, then such dispute may only be resolved in a court of competent jurisdiction in compliance with the Applicable Law provisions of this Agreement. 26. Survival: Contractor’s indemnification shall survive the termination or expiration of this Agreement for the maximum period allowed under applicable law. 27. Headings: The headings used in this Agreement are for convenience only and are not be construed as a part of the Agreement or as a limitation on the scope of the particular paragraphs to which they refer. 28. Severability: If any portion of this Agreement is held to be void or unenforceable, the balance thereof shall continue in effect. 29. Applicable Law: The parties agree that this Agreement is governed in all respects by the laws of the State of Montana. 30. Binding Effect: This Agreement is binding upon and inures to the benefit of the heirs, legal representatives, successors, and assigns of the parties. 31. 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. 32. Counterparts: This Agreement may be executed in counterparts, which together constitute one instrument. 33. Integration: This Agreement and all Exhibits attached hereto constitute the entire agreement of the parties. Covenants or representations not contained therein or made a part thereof by 165 Professional Services Master Task Order Agreement for General Contracting, Consulting, and Architectural Services Page 16 of 16 reference, are not binding upon the parties. There are no understandings between the parties other than as set forth in this Agreement. All communications, either verbal or written, made prior to the date of this Agreement are hereby abrogated and withdrawn unless specifically made a part of this Agreement by reference. 34. Consent to Electronic Signatures: The Parties have consented to execute this Agreement electronically in conformance with the Montana Uniform Electronic Transactions Act, Title 30, Chapter 18, Part 1, MCA. **** END OF AGREEMENT EXCEPT FOR SIGNATURES **** IN WITNESS WHEREOF, the parties hereto have executed this instrument the day and year first above written. CITY OF BOZEMAN, MONTANA ____________________________________ CONTRACTOR (Type Name Above) By________________________________ By__________________________________ Jeff Mihelich, City Manager Print Name: Print Title: ____________________________ APPROVED AS TO FORM: By_______________________________ Greg Sullivan, Bozeman City Attorney 166 EXHIBIT A 167 CSI Rate Sheet.doc 1 December 14, 2023 P.O. BOX 11529 Bozeman, Montana 59719 (406) 404-1560 Rates for Constructive Solutions services are as follows: CSI Principal = $175/hour Licensed Architect = $175/hour Senior Project Administrator = $150/hour Architectural Designer = $150/hour Architectural Intern II = $125/hour Project Administrator = $125/hour Drafter = $90/hour Architectural Intern I = $90/hour Research/Support/Admin = $90/hour Construction Labor = $90/hour Emergency Construction Service = $150/hour All other costs will be billed with a 20% markup over the actual cost. 168 EXHIBIT B 169 City of Bozeman Term Contract: Task Order Number # PROJECT: Issued under the authority of City of Bozeman Term Contract Professional Services Agreement With: For: This Task Order is dated between: and The following representatives have been designated for the work performed under this Task Order City: Contractor: SCOPE OF WORK: COMPENSATION IN WITNESS WHEREOF, the parties authorized to commit resources of the parties have executed this Task Order: City of Bozeman 170 Professional Services Master Task Order Agreement for Door Maintenance and Service Page 1 of 15 PROFESSIONAL SERVICES MASTER TASK ORDER AGREEMENT THIS AGREEMENT is made and entered into this _____ of January, 2024, 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, Door Guys LLC, PO Box 25, Clyde Park, MT 59018, hereinafter referred to as “Contractor.” In consideration of the mutual covenants and agreements herein contained, the receipt and sufficiency whereof being hereby acknowledged, the parties hereto agree as follows: 1. Purpose: City agrees to enter into this agreement with Contractor to provide Pedestrian Door Contracting and Service as requested by the City through issuance of individual, consecutively numbered Task Orders on an as needed and requested basis. 2. Term/Effective Date: This Agreement is effective upon the date of its execution and will expire on January 1, 2029, unless extended or terminated as specifically provided for within the agreement. 3. Scope of Work: Contractor will perform the work and provide the services in accordance with the requirements of the Scope of Services. The Contractor will perform the specific services and schedule as mutually agreed upon by City and Contractor and included in each individual Task Order executed under the authority of this Agreement. Task Orders shall be in a format similar to EXHIBIT B, attached and made part of this Agreement. For conflicts between this Agreement and the Scope of Services the Agreement governs. 4. Payment: The terms of compensation to Contractor shall be agreed upon and included in each Task Order. The task order amount shall be based on the rates specified in EXHIBIT A. City agrees to pay Contractor the amount specified in the individual Task Orders. Any alteration or deviation from the described services that involves additional costs above the Agreement amount will be performed by Contractor after written request by the City, and will become an additional charge over and above the amount listed in EXHIBIT A. The City must agree in writing upon any additional charges. 171 Professional Services Master Task Order Agreement for Door Maintenance and Service Page 2 of 15 5. Contractor’s Representations: To induce City to enter into this Agreement, Contractor makes the following representations: a. Contractor has familiarized itself with the nature and extent of this agreement, the Scope of Services and with all local conditions and federal, state and local laws, ordinances, rules, and regulations that in any manner may affect cost, progress or performance of the Scope of Services. b. For each individual Task Order, Contractor will familiarize itself with the nature and extent of the assignment, and with all local conditions and federal, state and local laws, ordinances, rules, and regulations that in any manner may affect cost, progress or performance of the Scope of Services and will provide a mutually agreeable Scope of Services for each Task Order. c. Contractor represents to City that it has the experience and ability to perform the services required by this Agreement; that it will perform said services in a professional, competent and timely manner and with diligence and skill ordinarily used by member in the same profession practicing at the same time and in the same locality; that it has the power to enter into and perform this Agreement and grant the rights granted in it; and that its performance of this Agreement shall not infringe upon or violate the rights of any third party, whether rights of copyright, trademark, privacy, publicity, libel, slander or any other rights of any nature whatsoever, or violate any federal, state and municipal laws. The City will not determine or exercise control as to general procedures or formats necessary to have these services meet this standard of care. 6. Independent Contractor Status/Labor Relations: a. The parties agree that Contractor is an independent contractor for purposes of this Agreement and is not to be considered an employee of the City for any purpose. Contractor is not subject to the terms and provisions of the City’s personnel policies handbook and may not be considered a City employee for workers’ compensation or any other purpose. Contractor is not authorized to represent the City or otherwise bind the City in any dealings between Contractor and any third parties. b. Contractor shall comply with the applicable requirements of the Workers’ Compensation Act, Title 39, Chapter 71, MCA, and the Occupational Disease Act of Montana, Title 39, Chapter 71, MCA. Contractor shall maintain workers’ compensation coverage for all members and employees of Contractor’s business, except for those members who are exempted by law. 172 Professional Services Master Task Order Agreement for Door Maintenance and Service Page 3 of 15 c. Contractor shall furnish the City with copies showing one of the following: (1) a binder for workers’ compensation coverage by an insurer licensed and authorized to provide workers’ compensation insurance in the State of Montana; or (2) proof of exemption from workers’ compensation granted by law for independent contractors. d. In the event that, during the term of this Agreement, any labor problems or disputes of any type arise or materialize which in turn cause any services to cease for any period of time, Contractor specifically agrees to take immediate steps, at its own expense and without expectation of reimbursement from City, to alleviate or resolve all such labor problems or disputes. The specific steps Contractor shall take shall be left to the discretion of Contractor; provided, however, that Contractor shall bear all costs of any related legal action. Contractor shall provide immediate relief to the City so as to permit the services to continue at no additional cost to City. e. Contractor shall indemnify and hold the City harmless from any and all claims, demands, costs, expenses, damages, and liabilities arising out of, resulting from, or occurring in connection with any labor problems or disputes or any delays or stoppages of work associated with such problems or disputes and for any claims regarding underpaid prevailing wages. 7. Indemnity/Waiver of Claims/Insurance: a. For other than professional services rendered, to the fullest extent permitted by law, Contractor agrees to release, defend, indemnify, and hold harmless the City, its agents, representatives, employees, and officers (collectively referred to for purposes of this Section as the City) from and against any and all claims, demands, actions, fees and costs (including attorney’s fees and the costs and fees of and expert witness and consultants), losses, expenses, liabilities (including liability where activity is inherently or intrinsically dangerous) or damages of whatever kind or nature connected therewith and without limit and without regard to the cause or causes thereof or the negligence of any party or parties that may be asserted against, recovered from or suffered by the City occasioned by, growing or arising out of or resulting from or in any way related to: (i) the negligent, reckless, or intentional misconduct of the Contractor; (ii) any negligent, reckless, or intentional misconduct of any of the Contractor’s agents; b. For the services rendered, to the fullest extent permitted by law, Contractor agrees to indemnify and hold the City harmless against claims, demands, suits, damages, losses, and expenses, including reasonable defense attorney fees, to the extent caused by the 173 Professional Services Master Task Order Agreement for Door Maintenance and Service Page 4 of 15 negligence or intentional misconduct of the Contractor or Contractor’s agents or employees. c. Such obligations shall not be construed to negate, abridge, or reduce other rights or obligations of indemnity that would otherwise exist. The indemnification obligations of this Section must not be construed to negate, abridge, or reduce any common-law or statutory rights of the indemnitee(s) which would otherwise exist as to such indemnitee(s). d. Contractor’s indemnity under this Section shall be without regard to and without any right to contribution from any insurance maintained by City. e. Should the City be required to bring an action against the Contractor to assert its right to defense or indemnification under this Agreement or under the Contractor’s applicable insurance policies required below, the City shall be entitled to recover reasonable costs and attorney fees incurred in asserting its right to indemnification or defense but only if a court of competent jurisdiction determines the Contractor was obligated to defend the claim(s) or was obligated to indemnify the City for a claim(s) or any portion(s) thereof. f. In the event of an action filed against City resulting from the City’s performance under this Agreement, the City may elect to represent itself and incur all costs and expenses of suit. g. Contractor also waives any and all claims and recourse against the City or its officers, agents or employees, including the right of contribution for loss or damage to person or property arising from, growing out of, or in any way connected with or incident to the performance of this Agreement except “responsibility for his own fraud, for willful injury to the person or property of another, or for violation of law, whether willful or negligent” as per 28-2-702, MCA. h. These obligations shall survive termination of this Agreement and the services performed hereunder. i. In addition to and independent from the above, Contractor shall at Contractor’s expense secure insurance coverage through an insurance company or companies duly licensed and authorized to conduct insurance business in Montana which insures the liabilities and obligations specifically assumed by the Contractor in this Section. The 174 Professional Services Master Task Order Agreement for Door Maintenance and Service Page 5 of 15 insurance coverage shall not contain any exclusion for liabilities specifically assumed by the Contractor in subsection (a) of this Section. j. The insurance shall cover and apply to all claims, demands, suits, damages, losses, and expenses that may be asserted or claimed against, recovered from, or suffered by the City without limit and without regard to the cause therefore and which is acceptable to the City and Contractor shall furnish to the City an accompanying certificate of insurance and accompanying endorsements in amounts not less than as follows:  Workers’ Compensation – statutory;  Employers’ Liability - $1,000,000 per occurrence and annual aggregate;  Commercial General Liability - $1,000,000 per occurrence; $2,000,000 annual aggregate;  Automobile Liability - $1,000,000 property damage/bodily injury; $1,000,000 annual aggregate; and  Professional Liability - $1,000,000 per claim; $2,000,000 annual aggregate k. The above amounts shall be exclusive of defense costs. The City of Bozeman, its officers, agents, and employees, shall be endorsed as an additional or named insured on a primary non-contributory basis on both the Commercial General and Automobile Liability policies. The insurance and required endorsements must be in a form suitable to City and shall include no less than a thirty (30) day notice of cancellation or non- renewal. The City must approve all insurance coverage and endorsements prior to the Contractor commencing work. Contractor shall notify City within two (2) business days of Contractor’s receipt of notice that any required insurance coverage will be terminated or Contractor’s decision to terminate any required insurance coverage for any reason. The City must approve all insurance coverage and endorsements prior to the Contractor commencing work. l. Pursuant to the City’s authority provided for in 18-2-201(4), the Contractor shall not be required to provide bonds as required by 18-2-201(1) for individual task orders under this Agreement. Bonds may be waived as allowed under 18-2-201(4) for individual task orders. 8. Inspection and Testing: a. City has the right to inspect and test any and all work performed by Contractor under a task order’s scope of services, referred to as the “Project”, executed under the 175 Professional Services Master Task Order Agreement for Door Maintenance and Service Page 6 of 15 authority of this Agreement. Contractor shall allow City and its agents access to the Project at all times and shall provide every reasonable facility for the purpose of such inspection and testing, including temporarily discontinuing portions of the work or uncovering or taking down portions of the finished work. Any inspection and testing performed by the City and its agents is for the sole benefit of the City and shall not relieve the Contractor of its duty, responsibility, and obligation to ensure that the work strictly complies with the Agreement terms and conditions and all applicable laws and building and safety codes. City’s inspection and testing shall not be deemed or considered acceptance by the City of any portion of the Project. City’s inspection and testing shall not serve to nullify, amend, or waive any warranties provided by the Contractor under this Agreement. b. Contractor shall, without charge, replace any material or correct any work found by the City or its agents to be defective or otherwise not in compliance with the terms and conditions of this Agreement. In the event Contractor fails to replace or correct any defective work or materials after reasonable written notice by the City to do so, the City may take such corrective action, either with its own materials and employees or by retaining any third party to do so, and deduct the cost and expense of such corrective action from the Contractor’s compensation. 9. Partial Utilization of the Project: City shall have the right to use or occupy any portion of the Project that City and Contractor mutually agree is substantially completed and constitutes a separately functioning and usable part of the Project for its intended purpose without significant interference with Contractor’s performance of the remaining portions of the Project. In the event City takes possession of any portion of the Project, such possession shall not be deemed an acceptance of the Project, in whole or in part. City’s use of any portion of the Project shall not be grounds for extensions of any construction deadlines or a change in the Contractor’s compensation. Contractor’s warranties shall run from the completion of the total Project and not from the date the City may take possession of selected portions of the Project. 10. Related Work at the Site: Nothing in this Agreement shall prevent or preclude City, through its own employees or by contract with any third party, from performing other work related to the Project at the construction site; provided such related work is not otherwise addressed in this Agreement and provided such related work does not otherwise interfere with Contractor’s performance of this Agreement or the completion of the Project. Contractor shall afford any City employee, agent or representative, or any third party under contract with the City to perform the related work, proper and safe access to the construction site, a reasonable opportunity for the introduction and storage of materials and equipment, the opportunity to 176 Professional Services Master Task Order Agreement for Door Maintenance and Service Page 7 of 15 perform the related work, and shall properly coordinate the Contractor’s work on the Project with the related work. 11. Contractor’s Warranties: Contractor represents and warrants as follows: a. Unless otherwise specified by the terms of the Task Order, all materials and equipment used by Contractor on the Project shall be new and where not otherwise specified, of the most suitable grade for their intended uses. b. All workmanship and materials shall be of a kind and nature acceptable to the City. c. All equipment, materials, and labor provided to, on, or for the Project must be free of defects and nonconformities in design, materials, and workmanship for a minimum period beginning with the commencement of the work on the Project and ending one (1) year from the final completion and acceptance by the City of the Project, regardless of whether such equipment, materials, or labor were supplied directly by Contractor or indirectly by Contractor’s subcontractors or suppliers. Other express warranties on materials that provide for a warranty period longer than one year apply for the period of that express warranty and are not reduced by this provision. Upon receipt of City’s written notice of a defective or nonconforming condition during the warranty period, Contractor shall take all actions, including redesign and replacement, to correct the defective or nonconforming condition within a time frame acceptable to the City and at no additional cost to the City. Contractor shall also, at its sole cost, perform any tests required by City to verify that such defective or nonconforming condition has been corrected. Contractor warrants the corrective action taken against defective and nonconforming conditions for a period of an additional one (1) year from the date of City’s acceptance of the corrective action. d. Contractor and its sureties are liable for the satisfaction and full performance of all warranties. e. Contractor shall give its personal attention to the faithful prosecution of the completion of the Project and Contractor, or its duly authorized representative assigned to serve as the Construction Project Manager, shall be personally present at the site of the Construction Project during working hours for the term of this Agreement until the completion of the Project. f. Contractor shall have a complete, accurate, and up-to-date set of construction plans, drawings, and specifications on site at all times. 177 Professional Services Master Task Order Agreement for Door Maintenance and Service Page 8 of 15 g. Contractor has examined all available records and made field examinations of the site of the Project. Contractor has knowledge of the field conditions to be encountered during the Project. Contractor has knowledge of the types and character of equipment necessary for the work, the types of materials needed and the sources of such materials, and the condition of the local labor market. h. Contractor is responsible for the safety of the work and shall maintain all lights, guards, signs, temporary passages, or other protections necessary for that purpose at all times. i. All work must be performed at Contractor’s risk, and Contractor shall promptly repair or replace all damage and loss at its sole cost and expense regardless of the reason or cause of the damage or loss; provided, however, should the damage or loss be caused by an intentional or negligent act of the City, the risk of such loss shall be placed on the City. j. Contractor is responsible for any loss or damage to materials, tools, or other articles used or held for use in the completion of performance of the Project. k. Contractor’s performance must be without damage or disruption to any other work or property of the City or of others and without interference with the operation of existing machinery or equipment. l. Title to all work, materials, and equipment covered by any payment of Contractor’s compensation by City, whether directly incorporated into the Project or not, passes to City at the time of payment, free and clear of all liens and encumbrances. 12. Termination for Contractor’s Fault: a. If Contractor refuses or fails to timely do the work, or any part thereof, or fails to perform any of its obligations under this Agreement, or otherwise breaches any terms or conditions of this Agreement, the City may, by written notice, terminate this Agreement or any individual Task Order under this Agreement and the Contractor’s right to proceed with all or any part of the work (“Termination Notice Due to Contractor’s Fault”). The City may then take over the work and complete it, either with its own resources or by re-letting the contract to any other third party. 178 Professional Services Master Task Order Agreement for Door Maintenance and Service Page 9 of 15 b. In the event of a termination pursuant to this Section 8, Contractor shall be entitled to payment only for those services Contractor actually rendered. c. Any termination provided for by this Section 8 shall be in addition to any other remedies to which the City may be entitled under the law or at equity. d. In the event of termination under this Section 8, Contractor shall, under no circumstances, be entitled to claim or recover consequential, special, punitive, lost business opportunity, lost productivity, field office overhead, general conditions costs, or lost profits damages of any nature arising, or claimed to have arisen, as a result of the termination. 13. Termination for City’s Convenience: a. Should conditions arise which, in the sole opinion and discretion of the City, make it advisable to the City to cease performance under this Agreement; the City may terminate this Agreement or any Task Order under this Agreement by written notice to Contractor (“Notice of Termination for City’s Convenience”). The termination shall be effective in the manner specified in the Notice of Termination for City’s Convenience and shall be without prejudice to any claims that the City may otherwise have against Contractor. b. Upon receipt of the Notice of Termination for City’s Convenience, unless otherwise directed in the Notice, the Contractor shall immediately cease performance under this Agreement or any Task Order under this Agreement and make every reasonable effort to refrain from continuing work, incurring additional expenses or costs under this Agreement or any Task Order under this Agreement and shall immediately cancel all existing orders or contracts upon terms satisfactory to the City. Contractor shall do only such work as may be necessary to preserve, protect, and maintain work already completed or immediately in progress. c. In the event of a termination pursuant to this Section 9, Contractor is entitled to payment only for those services Contractor actually rendered on or before the receipt of the Notice of Termination for City’s Convenience. d. The compensation described in Section 9(c) is the sole compensation due to Contractor for its performance of this Agreement. Contractor shall, under no circumstances, be entitled to claim or recover consequential, special, punitive, lost business opportunity, 179 Professional Services Master Task Order Agreement for Door Maintenance and Service Page 10 of 15 lost productivity, field office overhead, general conditions costs, or lost profits damages of any nature arising, or claimed to have arisen, as a result of the termination. 14. Limitation on Contractor’s Damages; Time for Asserting Claim: a. In the event of a claim for damages by Contractor under this Agreement, Contractor’s damages shall be limited to contract damages and Contractor hereby expressly waives any right to claim or recover consequential, special, punitive, lost business opportunity, lost productivity, field office overhead, general conditions costs, or lost profits damages of any nature or kind. b. In the event Contractor wants to assert a claim for damages of any kind or nature, Contractor shall provide City with written notice of its claim, the facts and circumstances surrounding and giving rise to the claim, and the total amount of damages sought by the claim, within thirty (30) days of the facts and circumstances giving rise to the claim. In the event Contractor fails to provide such notice, Contractor shall waive all rights to assert such claim. 15. Representatives: a. City’s Representative: The City’s Representative for the purpose of this Agreement shall be Max Ziegler, Facilities Project Coordinator, or such other individual as City shall designate in writing. Whenever approval or authorization from or communication or submission to City is required by this Agreement, such communication or submission shall be directed to the City’s Representative and approvals or authorizations shall be issued only by such Representative; provided, however, that in exigent circumstances when City’s Representative is not available, Contractor may direct its communication or submission to other designated City personnel or agents and may receive approvals or authorization from such persons. b. Contractor’s Representative: The Contractor’s Representative for the purpose of this Agreement shall be Greg Ward or such other individual as Contractor shall designate in writing. Whenever direction to or communication with Contractor is required by this Agreement, such direction or communication shall be directed to Contractor’s Representative; provided, however, that in exigent circumstances when Contractor’s Representative is not available, City may direct its direction or communication to other designated Contractor personnel or agents. 180 Professional Services Master Task Order Agreement for Door Maintenance and Service Page 11 of 15 c. Notices: All notices required by this Agreement shall be in writing and shall be provided to the Representatives named in this Section. Notices shall be deemed given when delivered, if delivered by courier to Party’s address shown above during normal business hours of the recipient; or when sent, if sent by email or fax (with a successful transmission report) to the email address or fax number provided by the Party’s Representative; or on the fifth business day following mailing, if mailed by ordinary mail to the address shown above, postage prepaid. 16. Permits: Contractor shall provide all notices, comply with all applicable laws, ordinances, rules, and regulations, obtain all necessary permits, licenses, including a City of Bozeman business license, and inspections from applicable governmental authorities, and pay all fees and charges in connection therewith. 17. Laws and Regulations: Contractor shall comply fully with all applicable state and federal laws, regulations, and municipal ordinances including, but not limited to, all workers’ compensation laws, all environmental laws including, but not limited to, the generation and disposal of hazardous waste, the Occupational Safety and Health Act (OSHA), the safety rules, codes, and provisions of the Montana Safety Act in Title 50, Chapter 71, MCA, all applicable City, County, and State building and electrical codes, the Americans with Disabilities Act, and all non-discrimination, affirmative action, and utilization of minority and small business statutes and regulations. 18. Nondiscrimination and Equal Pay: a. The Contractor agrees that all hiring by Contractor of persons performing this Agreement shall be on the basis of merit and qualifications. The Contractor will have a policy to provide equal employment opportunity in accordance with all applicable state and federal anti-discrimination laws, regulations, and contracts. The Contractor will not refuse employment to a person, bar a person from employment, or discriminate against a person in compensation or in a term, condition, or privilege of employment because of race, color, religion, creed, political ideas, sex, age, marital status, national origin, actual or perceived sexual orientation, gender identity, physical or mental disability, except when the reasonable demands of the position require an age, physical or mental disability, marital status or sex distinction. The Contractor shall be subject to and comply with Title VI of the Civil Rights Act of 1964; Section 140, Title 2, United States Code, and all regulations promulgated thereunder. b. 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 181 Professional Services Master Task Order Agreement for Door Maintenance and Service Page 12 of 15 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. c. Contractor shall require these nondiscrimination terms of its subcontractors providing services under this Agreement. 19. Intoxicants; DOT Drug and Alcohol Regulations/Safety and Training: a. Contractor shall not permit or suffer the introduction or use of any intoxicants, including alcohol or illegal drugs, by any employee or agent engaged in services to the City under this Agreement while on City property or in the performance of any activities under this Agreement. Contractor acknowledges it is aware of and shall comply with its responsibilities and obligations under the U.S. Department of Transportation (DOT) regulations governing anti-drug and alcohol misuse prevention plans and related testing. City shall have the right to request proof of such compliance and Contractor shall be obligated to furnish such proof. b. The Contractor shall be responsible for instructing and training the Contractor's employees and agents in proper and specified work methods and procedures. The Contractor shall provide continuous inspection and supervision of the work performed. The Contractor is responsible for instructing his employees and agents in safe work practices. 20. Modification and Assignability: This Agreement may not be enlarged, modified or altered except by written agreement signed by both parties hereto. The Contractor may not subcontract or assign Contractor’s rights, including the right to compensation or duties arising hereunder, without the prior written consent of City. Any subcontractor or assignee will be bound by all of the terms and conditions of this Agreement. 21. Reports/Accountability/Public Information: Contractor agrees to develop and/or provide documentation as requested by the City demonstrating Contractor’s compliance with the requirements of this Agreement. Contractor shall allow the City, its auditors, and other persons authorized by the City to inspect and copy its books and records for the purpose of verifying that the reimbursement of monies distributed to Contractor pursuant to this Agreement was used in compliance with this Agreement and all applicable provisions of federal, state, and local law. The Contractor shall not issue any statements, releases or information for public dissemination without prior approval of the City. 22. Non-Waiver: A waiver by either party 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 182 Professional Services Master Task Order Agreement for Door Maintenance and Service Page 13 of 15 conditions or to pursue any available legal or equitable rights in the event of any subsequent default or breach. 23. Attorney’s Fees and Costs: That 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 or the Party giving notice shall be entitled to reasonable attorney's fees and costs, including fees, salary, and costs of in-house counsel to include City Attorney. 24. Taxes: Contractor is obligated to pay all taxes of any kind or nature and make all appropriate employee withholdings. 25. Dispute Resolution: a. Any claim, controversy, or dispute between the parties, their agents, employees, or representatives shall be resolved first by negotiation between senior-level personnel from each party duly authorized to execute settlement agreements. Upon mutual agreement of the parties, the parties may invite an independent, disinterested mediator to assist in the negotiated settlement discussions. b. If the parties are unable to resolve the dispute within thirty (30) days from the date the dispute was first raised, then such dispute may only be resolved in a court of competent jurisdiction in compliance with the Applicable Law provisions of this Agreement. 26. Survival: Contractor’s indemnification shall survive the termination or expiration of this Agreement for the maximum period allowed under applicable law. 27. Headings: The headings used in this Agreement are for convenience only and are not be construed as a part of the Agreement or as a limitation on the scope of the particular paragraphs to which they refer. 28. Severability: If any portion of this Agreement is held to be void or unenforceable, the balance thereof shall continue in effect. 29. Applicable Law: The parties agree that this Agreement is governed in all respects by the laws of the State of Montana. 30. Binding Effect: This Agreement is binding upon and inures to the benefit of the heirs, legal representatives, successors, and assigns of the parties. 183 Professional Services Master Task Order Agreement for Door Maintenance and Service Page 14 of 15 31. 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. 32. Counterparts: This Agreement may be executed in counterparts, which together constitute one instrument. 33. Integration: This Agreement and all Exhibits attached hereto constitute the entire agreement of the parties. Covenants or representations not contained therein or made a part thereof by reference, are not binding upon the parties. There are no understandings between the parties other than as set forth in this Agreement. All communications, either verbal or written, made prior to the date of this Agreement are hereby abrogated and withdrawn unless specifically made a part of this Agreement by reference. 34. Consent to Electronic Signatures: The Parties have consented to execute this Agreement electronically in conformance with the Montana Uniform Electronic Transactions Act, Title 30, Chapter 18, Part 1, MCA. **** END OF AGREEMENT EXCEPT FOR SIGNATURES **** IN WITNESS WHEREOF, the parties hereto have executed this instrument the day and year first above written. CITY OF BOZEMAN, MONTANA ____________________________________ CONTRACTOR (Type Name Above) By________________________________ By__________________________________ Jeff Mihelich, City Manager Print Name: Print Title: ____________________________ APPROVED AS TO FORM: By_______________________________ 184 Professional Services Master Task Order Agreement for Door Maintenance and Service Page 15 of 15 Greg Sullivan, Bozeman City Attorney 185 EXHIBIT A 186 ESTIMATE SHEET DOOR GUYS PARTS AND LABOR PART NUMBER QTY UNIT COST INSP/CERT 01 AAADM INSPECTION/CERTIFICATION FLAT RATE FEE LESS ANY PARTS/LABOR - SLIDING AUTO DOOR 100.00$ INSP/CERT 02 AAADM INSPECTION/CERTIFICATION FLAT RATE FEE LESS ANY PARTS/LABOR - SINGLE SWING DOOR 50.00$ INSP/CERT 03 AAADM INSPECTION/CERTIFICATION FLAT RATE FEE LESS ANY PARTS/LABOR - PAIR SWING DOOR 100.00$ Total Insp/Cert -$ GP%:33.3330%=-$ Class I Cost + GP: =-$ Total class II Mater. Cost:-$ GP%:33.3333%=-$ Class II Cost + GP: =-$ Total Class III Mater. Cost:20.00$ GP%:33.3333%=30.00$ Class III Cost + GP: =30.00$ Total Material + Applicable Insp/Cert:30.00$ ONE MAN PWH STANDARD Labor Rate (COST)@ Rate:55.00$ 55.00$ GREY CELLS ARE EDITABLE ONE MAN O/T Holiday Labor rate (COST)@ Rate:82.50$ -$ EXTRA MAN PWH STANDARD LABOR RATE (COST)@ Rate:45.00$ -$ EXTRA MAN O/T HOLIDAY LABOR RATE (COST)@ Rate:67.50$ -$ Round Trip Travel Cost:@ Rate:55.00$ 27.50$ Labor Cost: =82.50$ Labor/Travel Cost =82.50$ GP %:50.00%=165.00$ Labor/Travel cost + GP: =165.00$ Freight on Class II Materials:1 Rate:7%-$ Total Materials & Labor:195.00$ Total Freight:-$ TOTAL COST OF SERVICE 195.00$ SPECIAL NOTES, INSTRUCTIONS AND EXCLUSIONS 0Total Hours: Total Hours:0.5 Total Hours:0.5 Total Hours:0 Total Hours:0 DETAILED DESCRIPTION OF CLASS II MATERIALS Total Hours:1 TOTAL Class II Material COST: Total AAADM inspection/certification CLASS II MATERIALS DEFINED AS ANY/ALL SERVICE PARTS REQUIRED FOR JOB COMPLETION CLASS III MATERIALS DEFINED AS MISC. FASTERNERS, ANCHORS,CAULKING ETC. ETC. ALL LABOR PERFORMED WILL INCLUDE A 90 DAY WARRANTY PART WARRANTIES VARY AND WILL BE COVERED BASED ON PART MANUFACTURER'S WARRANTY. ALL RATES ARE IN US DOLLARS.187 \\ #VALUE! ALL RATES ARE IN US DOLLARS. The following labor rates are applicable during Primary Working Hours (PWH) defined as between 8:00 A.M. and 5:00 P.M. Monday through Friday, excluding national and recognized holidays. STANDARD PWH HOURLY RATE IS $110.00. WITH A 1 HOUR MINIMUM AND SUBSEQUENTLY BILLEDBIN 1/2 HOUR INCREMENTS ROUNDED UP TO NEXT 1/2 HOUR. EXTRA MAN STANDARD PWH HOURLY RATE IS $90.00. WITH A 1 HOUR MINIMUM AND SUBSEQUENTLY BILLED IN 1/2 HOUR INCREMENTS ROUNDED UP TO NEXT 1/2 HOUR. The following labor rates are applicable during O/T & HOLIDAY hours defined as BEFORE 8:00 A.M. and AFTER 5:00 P.M. Monday through Friday, weekends as well as national and recognized holidays AS LISTED BELOW. O/T & HOLIDAY HOURLY RATE IS $165.00. WITH A 1 HOUR MINIMUM AND SUBSEQUENTLY BILLED IN 1/2 HOUR INCREMENTS ROUNDED UP TO NEXT 1/2 HOUR. EXTRA MAN O/T & HOLIDAY HOURLY RATE IS $135.00. WITH A 1 HOUR MINIMUM AND SUBSEQUENTLY BILLED IN 1/2 HOUR INCREMENTS ROUNDED UP TO NEXT 1/2 HOUR. TRAVEL RATE IS FIXED AT 1/2 HOUR ROUND TRIP WITHIN A 20 MILE RADIUS OF DOWNTOWN BOZEMAN AT AN HOURLY RATE OF $110.00 AND LIMITED TO THE INITIAL CALL. IF A RETURN TRIP IS REQUIRED, TRAVEL RATE TO BE WAIVED. PARTS ARE SOLD AT COST PLUS 50% AND WILL INCLUDE 7% FOR STANDARD SHIPPING/FREIGHT AND HANDLING FEES. REQUESTED EXPEDITED SHIPPING WILL BE CHARGED AS QUOTED BY DOOR GUYS AND APPROVED BY CUSTOMER. 2024 DOOR GUYS HOLIDAY SCHEDULE Monday, January 1 -New Year’s Day Monday, May 27 -Memorial Day Thursday, July 4 -Independence Day Monday, September 2 -Labor Day Thursday, November 28-Thanksgiving Friday, November 29-Day after Thanksgiving Tuesday, December 24 -Christmas Eve Wednesday, December 25 -Christmas Day Condition of Service: Chargeable time includes time spent at the client’s facility, round trip travel and the time for all the other activities required on the client’s behalf. A minimum of one (1) hour is charged for any service call to a client’s facility in addtion to the applicable travel charge. Stand by Time If a person is requested by the customer to standby on or in the vicinity of the customer site, standby hours will be billed using applicable rates above. 188 ESTIMATE SHEET DOOR GUYS PARTS AND LABOR EXTENDED COST -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ GREY CELLS ARE EDITABLE SPECIAL NOTES, INSTRUCTIONS AND EXCLUSIONS 189 #VALUE! 190 EXHIBIT B 191 City of Bozeman Term Contract: Task Order Number # PROJECT: Issued under the authority of City of Bozeman Term Contract Professional Services Agreement With: For: This Task Order is dated between: and The following representatives have been designated for the work performed under this Task Order City: Contractor: SCOPE OF WORK: COMPENSATION IN WITNESS WHEREOF, the parties authorized to commit resources of the parties have executed this Task Order: City of Bozeman 192 Professional Services Master Task Order Agreement for [____] Services Page 1 of 14 PROFESSIONAL SERVICES MASTER TASK ORDER AGREEMENT THIS AGREEMENT is made and entered into this _____ of January, 2024, 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, Elkhorn Commissioning Group, PO Box 11825, Bozeman, MT 59719, hereinafter referred to as “Contractor.” In consideration of the mutual covenants and agreements herein contained, the receipt and sufficiency whereof being hereby acknowledged, the parties hereto agree as follows: 1. Purpose: City agrees to enter into this agreement with Contractor to provide Building Commissioning, Consulting, and Service, as requested by the City through issuance of individual, consecutively numbered Task Orders on an as needed and requested basis. 2. Term/Effective Date: This Agreement is effective upon the date of its execution and will expire on January 1, 2029, unless extended or terminated as specifically provided for within the agreement. 3. Scope of Work: Contractor will perform the work and provide the services in accordance with the requirements of the Scope of Services. The Contractor will perform the specific services and schedule as mutually agreed upon by City and Contractor and included in each individual Task Order executed under the authority of this Agreement. Task Orders shall be in a format similar to EXHIBIT B, attached and made part of this Agreement. For conflicts between this Agreement and the Scope of Services the Agreement governs. 4. Payment: The terms of compensation to Contractor shall be agreed upon and included in each Task Order. The task order amount shall be based on the rates specified in EXHIBIT A. City agrees to pay Contractor the amount specified in the individual Task Orders. Any alteration or deviation from the described services that involves additional costs above the Agreement amount will be performed by Contractor after written request by the City, and will become an additional charge over and above the amount listed in EXHIBIT A. The City must agree in writing upon any additional charges. 193 Professional Services Master Task Order Agreement for [____] Services Page 2 of 14 5. Contractor’s Representations: To induce City to enter into this Agreement, Contractor makes the following representations: a. Contractor has familiarized itself with the nature and extent of this agreement, the Scope of Services and with all local conditions and federal, state and local laws, ordinances, rules, and regulations that in any manner may affect cost, progress or performance of the Scope of Services. b. For each individual Task Order, Contractor will familiarize itself with the nature and extent of the assignment, and with all local conditions and federal, state and local laws, ordinances, rules, and regulations that in any manner may affect cost, progress or performance of the Scope of Services and will provide a mutually agreeable Scope of Services for each Task Order. c. Contractor represents to City that it has the experience and ability to perform the services required by this Agreement; that it will perform said services in a professional, competent and timely manner and with diligence and skill ordinarily used by member in the same profession practicing at the same time and in the same locality; that it has the power to enter into and perform this Agreement and grant the rights granted in it; and that its performance of this Agreement shall not infringe upon or violate the rights of any third party, whether rights of copyright, trademark, privacy, publicity, libel, slander or any other rights of any nature whatsoever, or violate any federal, state and municipal laws. The City will not determine or exercise control as to general procedures or formats necessary to have these services meet this standard of care. 6. Independent Contractor Status/Labor Relations: a. The parties agree that Contractor is an independent contractor for purposes of this Agreement and is not to be considered an employee of the City for any purpose. Contractor is not subject to the terms and provisions of the City’s personnel policies handbook and may not be considered a City employee for workers’ compensation or any other purpose. Contractor is not authorized to represent the City or otherwise bind the City in any dealings between Contractor and any third parties. b. Contractor shall comply with the applicable requirements of the Workers’ Compensation Act, Title 39, Chapter 71, MCA, and the Occupational Disease Act of Montana, Title 39, Chapter 71, MCA. Contractor shall maintain workers’ compensation coverage for all members and employees of Contractor’s business, except for those members who are exempted by law. 194 Professional Services Master Task Order Agreement for [____] Services Page 3 of 14 c. Contractor shall furnish the City with copies showing one of the following: (1) a binder for workers’ compensation coverage by an insurer licensed and authorized to provide workers’ compensation insurance in the State of Montana; or (2) proof of exemption from workers’ compensation granted by law for independent contractors. d. In the event that, during the term of this Agreement, any labor problems or disputes of any type arise or materialize which in turn cause any services to cease for any period of time, Contractor specifically agrees to take immediate steps, at its own expense and without expectation of reimbursement from City, to alleviate or resolve all such labor problems or disputes. The specific steps Contractor shall take shall be left to the discretion of Contractor; provided, however, that Contractor shall bear all costs of any related legal action. Contractor shall provide immediate relief to the City so as to permit the services to continue at no additional cost to City. e. Contractor shall indemnify and hold the City harmless from any and all claims, demands, costs, expenses, damages, and liabilities arising out of, resulting from, or occurring in connection with any labor problems or disputes or any delays or stoppages of work associated with such problems or disputes and for any claims regarding underpaid prevailing wages. 7. Indemnity/Waiver of Claims/Insurance: a. For other than professional services rendered, to the fullest extent permitted by law, Contractor agrees to release, defend, indemnify, and hold harmless the City, its agents, representatives, employees, and officers (collectively referred to for purposes of this Section as the City) from and against any and all claims, demands, actions, fees and costs (including attorney’s fees and the costs and fees of and expert witness and consultants), losses, expenses, liabilities (including liability where activity is inherently or intrinsically dangerous) or damages of whatever kind or nature connected therewith and without limit and without regard to the cause or causes thereof or the negligence of any party or parties that may be asserted against, recovered from or suffered by the City occasioned by, growing or arising out of or resulting from or in any way related to: (i) the negligent, reckless, or intentional misconduct of the Contractor; (ii) any negligent, reckless, or intentional misconduct of any of the Contractor’s agents; b. For the services rendered, to the fullest extent permitted by law, Contractor agrees to indemnify and hold the City harmless against claims, demands, suits, damages, losses, and expenses, including reasonable defense attorney fees, to the extent caused by the 195 Professional Services Master Task Order Agreement for [____] Services Page 4 of 14 negligence or intentional misconduct of the Contractor or Contractor’s agents or employees. c. Such obligations shall not be construed to negate, abridge, or reduce other rights or obligations of indemnity that would otherwise exist. The indemnification obligations of this Section must not be construed to negate, abridge, or reduce any common-law or statutory rights of the indemnitee(s) which would otherwise exist as to such indemnitee(s). d. Contractor’s indemnity under this Section shall be without regard to and without any right to contribution from any insurance maintained by City. e. Should the City be required to bring an action against the Contractor to assert its right to defense or indemnification under this Agreement or under the Contractor’s applicable insurance policies required below, the City shall be entitled to recover reasonable costs and attorney fees incurred in asserting its right to indemnification or defense but only if a court of competent jurisdiction determines the Contractor was obligated to defend the claim(s) or was obligated to indemnify the City for a claim(s) or any portion(s) thereof. f. In the event of an action filed against City resulting from the City’s performance under this Agreement, the City may elect to represent itself and incur all costs and expenses of suit. g. Contractor also waives any and all claims and recourse against the City or its officers, agents or employees, including the right of contribution for loss or damage to person or property arising from, growing out of, or in any way connected with or incident to the performance of this Agreement except “responsibility for his own fraud, for willful injury to the person or property of another, or for violation of law, whether willful or negligent” as per 28-2-702, MCA. h. These obligations shall survive termination of this Agreement and the services performed hereunder. i. In addition to and independent from the above, Contractor shall at Contractor’s expense secure insurance coverage through an insurance company or companies duly licensed and authorized to conduct insurance business in Montana which insures the liabilities and obligations specifically assumed by the Contractor in this Section. The 196 Professional Services Master Task Order Agreement for [____] Services Page 5 of 14 insurance coverage shall not contain any exclusion for liabilities specifically assumed by the Contractor in subsection (a) of this Section. j. The insurance shall cover and apply to all claims, demands, suits, damages, losses, and expenses that may be asserted or claimed against, recovered from, or suffered by the City without limit and without regard to the cause therefore and which is acceptable to the City and Contractor shall furnish to the City an accompanying certificate of insurance and accompanying endorsements in amounts not less than as follows:  Workers’ Compensation – statutory;  Employers’ Liability - $1,000,000 per occurrence and annual aggregate;  Commercial General Liability - $1,000,000 per occurrence; $2,000,000 annual aggregate;  Automobile Liability - $1,000,000 property damage/bodily injury; $1,000,000 annual aggregate; and  Professional Liability - $1,000,000 per claim; $2,000,000 annual aggregate k. The above amounts shall be exclusive of defense costs. The City of Bozeman, its officers, agents, and employees, shall be endorsed as an additional or named insured on a primary non-contributory basis on both the Commercial General and Automobile Liability policies. The insurance and required endorsements must be in a form suitable to City and shall include no less than a thirty (30) day notice of cancellation or non- renewal. The City must approve all insurance coverage and endorsements prior to the Contractor commencing work. Contractor shall notify City within two (2) business days of Contractor’s receipt of notice that any required insurance coverage will be terminated or Contractor’s decision to terminate any required insurance coverage for any reason. The City must approve all insurance coverage and endorsements prior to the Contractor commencing work. 8. Inspection and Testing: a. City has the right to inspect and test any and all work performed by Contractor under a task order’s scope of services, referred to as the “Project”, executed under the authority of this Agreement. Contractor shall allow City and its agents access to the Project at all times and shall provide every reasonable facility for the purpose of such inspection and testing, including temporarily discontinuing portions of the work or uncovering or taking down portions of the finished work. Any inspection and testing performed by the City and its agents is for the sole benefit of the City and shall not relieve the Contractor of its duty, responsibility, and obligation to ensure that the work 197 Professional Services Master Task Order Agreement for [____] Services Page 6 of 14 strictly complies with the Agreement terms and conditions and all applicable laws and building and safety codes. City’s inspection and testing shall not be deemed or considered acceptance by the City of any portion of the Project. City’s inspection and testing shall not serve to nullify, amend, or waive any warranties provided by the Contractor under this Agreement. b. Contractor shall, without charge, replace any material or correct any work found by the City or its agents to be defective or otherwise not in compliance with the terms and conditions of this Agreement. In the event Contractor fails to replace or correct any defective work or materials after reasonable written notice by the City to do so, the City may take such corrective action, either with its own materials and employees or by retaining any third party to do so, and deduct the cost and expense of such corrective action from the Contractor’s compensation. 9. Partial Utilization of the Project: City shall have the right to use or occupy any portion of the Project that City and Contractor mutually agree is substantially completed and constitutes a separately functioning and usable part of the Project for its intended purpose without significant interference with Contractor’s performance of the remaining portions of the Project. In the event City takes possession of any portion of the Project, such possession shall not be deemed an acceptance of the Project, in whole or in part. City’s use of any portion of the Project shall not be grounds for extensions of any construction deadlines or a change in the Contractor’s compensation. Contractor’s warranties shall run from the completion of the total Project and not from the date the City may take possession of selected portions of the Project. 10. Related Work at the Site: Nothing in this Agreement shall prevent or preclude City, through its own employees or by contract with any third party, from performing other work related to the Project at the construction site; provided such related work is not otherwise addressed in this Agreement and provided such related work does not otherwise interfere with Contractor’s performance of this Agreement or the completion of the Project. Contractor shall afford any City employee, agent or representative, or any third party under contract with the City to perform the related work, proper and safe access to the construction site, a reasonable opportunity for the introduction and storage of materials and equipment, the opportunity to perform the related work, and shall properly coordinate the Contractor’s work on the Project with the related work. 11. Contractor’s Warranties: Contractor represents and warrants as follows: 198 Professional Services Master Task Order Agreement for [____] Services Page 7 of 14 a. Unless otherwise specified by the terms of the Task Order, all materials and equipment used by Contractor on the Project shall be new and where not otherwise specified, of the most suitable grade for their intended uses. b. All workmanship and materials shall be of a kind and nature acceptable to the City. c. All equipment, materials, and labor provided to, on, or for the Project must be free of defects and nonconformities in design, materials, and workmanship for a minimum period beginning with the commencement of the work on the Project and ending one (1) year from the final completion and acceptance by the City of the Project, regardless of whether such equipment, materials, or labor were supplied directly by Contractor or indirectly by Contractor’s subcontractors or suppliers. Other express warranties on materials that provide for a warranty period longer than one year apply for the period of that express warranty and are not reduced by this provision. Upon receipt of City’s written notice of a defective or nonconforming condition during the warranty period, Contractor shall take all actions, including redesign and replacement, to correct the defective or nonconforming condition within a time frame acceptable to the City and at no additional cost to the City. Contractor shall also, at its sole cost, perform any tests required by City to verify that such defective or nonconforming condition has been corrected. Contractor warrants the corrective action taken against defective and nonconforming conditions for a period of an additional one (1) year from the date of City’s acceptance of the corrective action. d. Contractor and its sureties are liable for the satisfaction and full performance of all warranties. e. Contractor shall give its personal attention to the faithful prosecution of the completion of the Project and Contractor, or its duly authorized representative assigned to serve as the Construction Project Manager, shall be personally present at the site of the Construction Project during working hours for the term of this Agreement until the completion of the Project. f. Contractor shall have a complete, accurate, and up-to-date set of construction plans, drawings, and specifications on site at all times. g. Contractor has examined all available records and made field examinations of the site of the Project. Contractor has knowledge of the field conditions to be encountered during the Project. Contractor has knowledge of the types and character of equipment 199 Professional Services Master Task Order Agreement for [____] Services Page 8 of 14 necessary for the work, the types of materials needed and the sources of such materials, and the condition of the local labor market. h. Contractor is responsible for the safety of the work and shall maintain all lights, guards, signs, temporary passages, or other protections necessary for that purpose at all times. i. All work must be performed at Contractor’s risk, and Contractor shall promptly repair or replace all damage and loss at its sole cost and expense regardless of the reason or cause of the damage or loss; provided, however, should the damage or loss be caused by an intentional or negligent act of the City, the risk of such loss shall be placed on the City. j. Contractor is responsible for any loss or damage to materials, tools, or other articles used or held for use in the completion of performance of the Project. k. Contractor’s performance must be without damage or disruption to any other work or property of the City or of others and without interference with the operation of existing machinery or equipment. l. Title to all work, materials, and equipment covered by any payment of Contractor’s compensation by City, whether directly incorporated into the Project or not, passes to City at the time of payment, free and clear of all liens and encumbrances. 12. Termination for Contractor’s Fault: a. If Contractor refuses or fails to timely do the work, or any part thereof, or fails to perform any of its obligations under this Agreement, or otherwise breaches any terms or conditions of this Agreement, the City may, by written notice, terminate this Agreement or any individual Task Order under this Agreement and the Contractor’s right to proceed with all or any part of the work (“Termination Notice Due to Contractor’s Fault”). The City may then take over the work and complete it, either with its own resources or by re-letting the contract to any other third party. b. In the event of a termination pursuant to this Section 8, Contractor shall be entitled to payment only for those services Contractor actually rendered. c. Any termination provided for by this Section 8 shall be in addition to any other remedies to which the City may be entitled under the law or at equity. 200 Professional Services Master Task Order Agreement for [____] Services Page 9 of 14 d. In the event of termination under this Section 8, Contractor shall, under no circumstances, be entitled to claim or recover consequential, special, punitive, lost business opportunity, lost productivity, field office overhead, general conditions costs, or lost profits damages of any nature arising, or claimed to have arisen, as a result of the termination. 13. Termination for City’s Convenience: a. Should conditions arise which, in the sole opinion and discretion of the City, make it advisable to the City to cease performance under this Agreement; the City may terminate this Agreement or any Task Order under this Agreement by written notice to Contractor (“Notice of Termination for City’s Convenience”). The termination shall be effective in the manner specified in the Notice of Termination for City’s Convenience and shall be without prejudice to any claims that the City may otherwise have against Contractor. b. Upon receipt of the Notice of Termination for City’s Convenience, unless otherwise directed in the Notice, the Contractor shall immediately cease performance under this Agreement or any Task Order under this Agreement and make every reasonable effort to refrain from continuing work, incurring additional expenses or costs under this Agreement or any Task Order under this Agreement and shall immediately cancel all existing orders or contracts upon terms satisfactory to the City. Contractor shall do only such work as may be necessary to preserve, protect, and maintain work already completed or immediately in progress. c. In the event of a termination pursuant to this Section 9, Contractor is entitled to payment only for those services Contractor actually rendered on or before the receipt of the Notice of Termination for City’s Convenience. d. The compensation described in Section 9(c) is the sole compensation due to Contractor for its performance of this Agreement. Contractor shall, under no circumstances, be entitled to claim or recover consequential, special, punitive, lost business opportunity, lost productivity, field office overhead, general conditions costs, or lost profits damages of any nature arising, or claimed to have arisen, as a result of the termination. 14. Limitation on Contractor’s Damages; Time for Asserting Claim: 201 Professional Services Master Task Order Agreement for [____] Services Page 10 of 14 a. In the event of a claim for damages by Contractor under this Agreement, Contractor’s damages shall be limited to contract damages and Contractor hereby expressly waives any right to claim or recover consequential, special, punitive, lost business opportunity, lost productivity, field office overhead, general conditions costs, or lost profits damages of any nature or kind. b. In the event Contractor wants to assert a claim for damages of any kind or nature, Contractor shall provide City with written notice of its claim, the facts and circumstances surrounding and giving rise to the claim, and the total amount of damages sought by the claim, within thirty (30) days of the facts and circumstances giving rise to the claim. In the event Contractor fails to provide such notice, Contractor shall waive all rights to assert such claim. 15. Representatives: a. City’s Representative: The City’s Representative for the purpose of this Agreement shall be Max Ziegler, Facilities Project Coordinator, or such other individual as City shall designate in writing. Whenever approval or authorization from or communication or submission to City is required by this Agreement, such communication or submission shall be directed to the City’s Representative and approvals or authorizations shall be issued only by such Representative; provided, however, that in exigent circumstances when City’s Representative is not available, Contractor may direct its communication or submission to other designated City personnel or agents and may receive approvals or authorization from such persons. b. Contractor’s Representative: The Contractor’s Representative for the purpose of this Agreement shall be Kevin Smith, or such other individual as Contractor shall designate in writing. Whenever direction to or communication with Contractor is required by this Agreement, such direction or communication shall be directed to Contractor’s Representative; provided, however, that in exigent circumstances when Contractor’s Representative is not available, City may direct its direction or communication to other designated Contractor personnel or agents. c. Notices: All notices required by this Agreement shall be in writing and shall be provided to the Representatives named in this Section. Notices shall be deemed given when delivered, if delivered by courier to Party’s address shown above during normal business hours of the recipient; or when sent, if sent by email or fax (with a successful transmission report) to the email address or fax number provided by the Party’s 202 Professional Services Master Task Order Agreement for [____] Services Page 11 of 14 Representative; or on the fifth business day following mailing, if mailed by ordinary mail to the address shown above, postage prepaid. 16. Permits: Contractor shall provide all notices, comply with all applicable laws, ordinances, rules, and regulations, obtain all necessary permits, licenses, including a City of Bozeman business license, and inspections from applicable governmental authorities, and pay all fees and charges in connection therewith. 17. Laws and Regulations: Contractor shall comply fully with all applicable state and federal laws, regulations, and municipal ordinances including, but not limited to, all workers’ compensation laws, all environmental laws including, but not limited to, the generation and disposal of hazardous waste, the Occupational Safety and Health Act (OSHA), the safety rules, codes, and provisions of the Montana Safety Act in Title 50, Chapter 71, MCA, all applicable City, County, and State building and electrical codes, the Americans with Disabilities Act, and all non-discrimination, affirmative action, and utilization of minority and small business statutes and regulations. 18. Nondiscrimination and Equal Pay: a. The Contractor agrees that all hiring by Contractor of persons performing this Agreement shall be on the basis of merit and qualifications. The Contractor will have a policy to provide equal employment opportunity in accordance with all applicable state and federal anti-discrimination laws, regulations, and contracts. The Contractor will not refuse employment to a person, bar a person from employment, or discriminate against a person in compensation or in a term, condition, or privilege of employment because of race, color, religion, creed, political ideas, sex, age, marital status, national origin, actual or perceived sexual orientation, gender identity, physical or mental disability, except when the reasonable demands of the position require an age, physical or mental disability, marital status or sex distinction. The Contractor shall be subject to and comply with Title VI of the Civil Rights Act of 1964; Section 140, Title 2, United States Code, and all regulations promulgated thereunder. b. 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. c. Contractor shall require these nondiscrimination terms of its subcontractors providing services under this Agreement. 203 Professional Services Master Task Order Agreement for [____] Services Page 12 of 14 19. Intoxicants; DOT Drug and Alcohol Regulations/Safety and Training: a. Contractor shall not permit or suffer the introduction or use of any intoxicants, including alcohol or illegal drugs, by any employee or agent engaged in services to the City under this Agreement while on City property or in the performance of any activities under this Agreement. Contractor acknowledges it is aware of and shall comply with its responsibilities and obligations under the U.S. Department of Transportation (DOT) regulations governing anti-drug and alcohol misuse prevention plans and related testing. City shall have the right to request proof of such compliance and Contractor shall be obligated to furnish such proof. b. The Contractor shall be responsible for instructing and training the Contractor's employees and agents in proper and specified work methods and procedures. The Contractor shall provide continuous inspection and supervision of the work performed. The Contractor is responsible for instructing his employees and agents in safe work practices. 20. Modification and Assignability: This Agreement may not be enlarged, modified or altered except by written agreement signed by both parties hereto. The Contractor may not subcontract or assign Contractor’s rights, including the right to compensation or duties arising hereunder, without the prior written consent of City. Any subcontractor or assignee will be bound by all of the terms and conditions of this Agreement. 21. Reports/Accountability/Public Information: Contractor agrees to develop and/or provide documentation as requested by the City demonstrating Contractor’s compliance with the requirements of this Agreement. Contractor shall allow the City, its auditors, and other persons authorized by the City to inspect and copy its books and records for the purpose of verifying that the reimbursement of monies distributed to Contractor pursuant to this Agreement was used in compliance with this Agreement and all applicable provisions of federal, state, and local law. The Contractor shall not issue any statements, releases or information for public dissemination without prior approval of the City. 22. Non-Waiver: A waiver by either party any default or breach by the other party of any terms or conditions of this Agreement does not limit the other party’s right to enforce such term or conditions or to pursue any available legal or equitable rights in the event of any subsequent default or breach. 23. Attorney’s Fees and Costs: That 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 204 Professional Services Master Task Order Agreement for [____] Services Page 13 of 14 or to give any notice required herein, then the prevailing Party or the Party giving notice shall be entitled to reasonable attorney's fees and costs, including fees, salary, and costs of in-house counsel to include City Attorney. 24. Taxes: Contractor is obligated to pay all taxes of any kind or nature and make all appropriate employee withholdings. 25. Dispute Resolution: a. Any claim, controversy, or dispute between the parties, their agents, employees, or representatives shall be resolved first by negotiation between senior-level personnel from each party duly authorized to execute settlement agreements. Upon mutual agreement of the parties, the parties may invite an independent, disinterested mediator to assist in the negotiated settlement discussions. b. If the parties are unable to resolve the dispute within thirty (30) days from the date the dispute was first raised, then such dispute may only be resolved in a court of competent jurisdiction in compliance with the Applicable Law provisions of this Agreement. 26. Survival: Contractor’s indemnification shall survive the termination or expiration of this Agreement for the maximum period allowed under applicable law. 27. Headings: The headings used in this Agreement are for convenience only and are not be construed as a part of the Agreement or as a limitation on the scope of the particular paragraphs to which they refer. 28. Severability: If any portion of this Agreement is held to be void or unenforceable, the balance thereof shall continue in effect. 29. Applicable Law: The parties agree that this Agreement is governed in all respects by the laws of the State of Montana. 30. Binding Effect: This Agreement is binding upon and inures to the benefit of the heirs, legal representatives, successors, and assigns of the parties. 31. 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. 205 Professional Services Master Task Order Agreement for [____] Services Page 14 of 14 32. Counterparts: This Agreement may be executed in counterparts, which together constitute one instrument. 33. Integration: This Agreement and all Exhibits attached hereto constitute the entire agreement of the parties. Covenants or representations not contained therein or made a part thereof by reference, are not binding upon the parties. There are no understandings between the parties other than as set forth in this Agreement. All communications, either verbal or written, made prior to the date of this Agreement are hereby abrogated and withdrawn unless specifically made a part of this Agreement by reference. 34. Consent to Electronic Signatures: The Parties have consented to execute this Agreement electronically in conformance with the Montana Uniform Electronic Transactions Act, Title 30, Chapter 18, Part 1, MCA. **** END OF AGREEMENT EXCEPT FOR SIGNATURES **** IN WITNESS WHEREOF, the parties hereto have executed this instrument the day and year first above written. CITY OF BOZEMAN, MONTANA ____________________________________ CONTRACTOR (Type Name Above) By________________________________ By__________________________________ Jeff Mihelich, City Manager Print Name: Print Title: ____________________________ APPROVED AS TO FORM: By_______________________________ Greg Sullivan, Bozeman City Attorney 206 EXHIBIT A 207 January 17, 2024 To: Elkhorn Commissioning Group T&M Customers Commissioning Fee Schedue: Rate for Commissioning Authority: $180.00/ Hr. Rate for Commissioning Engineer: $155.00/Hr Rate for Commissioning Technician: $130.00/ Hr. Expenses will be billed at actual cost +10% Company vehicles will be charged at $.67/ mile for travel over 25 miles from office. Quoted rates are good through December 2024 Kevin Smith Commissioning Authority 208 EXHIBIT B 209 City of Bozeman Term Contract: Task Order Number # PROJECT: Issued under the authority of City of Bozeman Term Contract Professional Services Agreement With: For: This Task Order is dated between: and The following representatives have been designated for the work performed under this Task Order City: Contractor: SCOPE OF WORK: COMPENSATION IN WITNESS WHEREOF, the parties authorized to commit resources of the parties have executed this Task Order: City of Bozeman 210 Professional Services Master Task Order Agreement for HVAC Sales and Service Page 1 of 15 PROFESSIONAL SERVICES MASTER TASK ORDER AGREEMENT THIS AGREEMENT is made and entered into this _____ of January, 2024, 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, S. Conley Sales Inc., 384 Gallatin Park Dr., Suite 201, Bozeman, MT 59715, hereinafter referred to as “Contractor.” In consideration of the mutual covenants and agreements herein contained, the receipt and sufficiency whereof being hereby acknowledged, the parties hereto agree as follows: 1. Purpose: City agrees to enter into this agreement with Contractor to provide HVAC Sales, Installation, and Service, as requested by the City through issuance of individual, consecutively numbered Task Orders on an as needed and requested basis. 2. Term/Effective Date: This Agreement is effective upon the date of its execution and will expire on January 1, 2029, unless extended or terminated as specifically provided for within the agreement. 3. Scope of Work: Contractor will perform the work and provide the services in accordance with the requirements of the Scope of Services. The Contractor will perform the specific services and schedule as mutually agreed upon by City and Contractor and included in each individual Task Order executed under the authority of this Agreement. Task Orders shall be in a format similar to EXHIBIT B, attached and made part of this Agreement. For conflicts between this Agreement and the Scope of Services the Agreement governs. 4. Payment: The terms of compensation to Contractor shall be agreed upon and included in each Task Order. The task order amount shall be based on the rates specified in EXHIBIT A. City agrees to pay Contractor the amount specified in the individual Task Orders. Any alteration or deviation from the described services that involves additional costs above the Agreement amount will be performed by Contractor after written request by the City, and will become an 211 Professional Services Master Task Order Agreement for HVAC Sales and Service Page 2 of 15 additional charge over and above the amount listed in EXHIBIT A. The City must agree in writing upon any additional charges. 5. Contractor’s Representations: To induce City to enter into this Agreement, Contractor makes the following representations: a. Contractor has familiarized itself with the nature and extent of this agreement, the Scope of Services and with all local conditions and federal, state and local laws, ordinances, rules, and regulations that in any manner may affect cost, progress or performance of the Scope of Services. b. For each individual Task Order, Contractor will familiarize itself with the nature and extent of the assignment, and with all local conditions and federal, state and local laws, ordinances, rules, and regulations that in any manner may affect cost, progress or performance of the Scope of Services and will provide a mutually agreeable Scope of Services for each Task Order. c. Contractor represents to City that it has the experience and ability to perform the services required by this Agreement; that it will perform said services in a professional, competent and timely manner and with diligence and skill ordinarily used by member in the same profession practicing at the same time and in the same locality; that it has the power to enter into and perform this Agreement and grant the rights granted in it; and that its performance of this Agreement shall not infringe upon or violate the rights of any third party, whether rights of copyright, trademark, privacy, publicity, libel, slander or any other rights of any nature whatsoever, or violate any federal, state and municipal laws. The City will not determine or exercise control as to general procedures or formats necessary to have these services meet this standard of care. 6. Independent Contractor Status/Labor Relations: a. The parties agree that Contractor is an independent contractor for purposes of this Agreement and is not to be considered an employee of the City for any purpose. Contractor is not subject to the terms and provisions of the City’s personnel policies handbook and may not be considered a City employee for workers’ compensation or any other purpose. Contractor is not authorized to represent the City or otherwise bind the City in any dealings between Contractor and any third parties. b. Contractor shall comply with the applicable requirements of the Workers’ Compensation Act, Title 39, Chapter 71, MCA, and the Occupational Disease Act of 212 Professional Services Master Task Order Agreement for HVAC Sales and Service Page 3 of 15 Montana, Title 39, Chapter 71, MCA. Contractor shall maintain workers’ compensation coverage for all members and employees of Contractor’s business, except for those members who are exempted by law. c. Contractor shall furnish the City with copies showing one of the following: (1) a binder for workers’ compensation coverage by an insurer licensed and authorized to provide workers’ compensation insurance in the State of Montana; or (2) proof of exemption from workers’ compensation granted by law for independent contractors. d. In the event that, during the term of this Agreement, any labor problems or disputes of any type arise or materialize which in turn cause any services to cease for any period of time, Contractor specifically agrees to take immediate steps, at its own expense and without expectation of reimbursement from City, to alleviate or resolve all such labor problems or disputes. The specific steps Contractor shall take shall be left to the discretion of Contractor; provided, however, that Contractor shall bear all costs of any related legal action. Contractor shall provide immediate relief to the City so as to permit the services to continue at no additional cost to City. e. Contractor shall indemnify and hold the City harmless from any and all claims, demands, costs, expenses, damages, and liabilities arising out of, resulting from, or occurring in connection with any labor problems or disputes or any delays or stoppages of work associated with such problems or disputes and for any claims regarding underpaid prevailing wages. 7. Indemnity/Waiver of Claims/Insurance: a. For other than professional services rendered, to the fullest extent permitted by law, Contractor agrees to release, defend, indemnify, and hold harmless the City, its agents, representatives, employees, and officers (collectively referred to for purposes of this Section as the City) from and against any and all claims, demands, actions, fees and costs (including attorney’s fees and the costs and fees of and expert witness and consultants), losses, expenses, liabilities (including liability where activity is inherently or intrinsically dangerous) or damages of whatever kind or nature connected therewith and without limit and without regard to the cause or causes thereof or the negligence of any party or parties that may be asserted against, recovered from or suffered by the City occasioned by, growing or arising out of or resulting from or in any way related to: (i) the negligent, reckless, or intentional misconduct of the 213 Professional Services Master Task Order Agreement for HVAC Sales and Service Page 4 of 15 Contractor; (ii) any negligent, reckless, or intentional misconduct of any of the Contractor’s agents; b. For the services rendered, to the fullest extent permitted by law, Contractor agrees to indemnify and hold the City harmless against claims, demands, suits, damages, losses, and expenses, including reasonable defense attorney fees, to the extent caused by the negligence or intentional misconduct of the Contractor or Contractor’s agents or employees. c. Such obligations shall not be construed to negate, abridge, or reduce other rights or obligations of indemnity that would otherwise exist. The indemnification obligations of this Section must not be construed to negate, abridge, or reduce any common-law or statutory rights of the indemnitee(s) which would otherwise exist as to such indemnitee(s). d. Contractor’s indemnity under this Section shall be without regard to and without any right to contribution from any insurance maintained by City. e. Should the City be required to bring an action against the Contractor to assert its right to defense or indemnification under this Agreement or under the Contractor’s applicable insurance policies required below, the City shall be entitled to recover reasonable costs and attorney fees incurred in asserting its right to indemnification or defense but only if a court of competent jurisdiction determines the Contractor was obligated to defend the claim(s) or was obligated to indemnify the City for a claim(s) or any portion(s) thereof. f. In the event of an action filed against City resulting from the City’s performance under this Agreement, the City may elect to represent itself and incur all costs and expenses of suit. g. Contractor also waives any and all claims and recourse against the City or its officers, agents or employees, including the right of contribution for loss or damage to person or property arising from, growing out of, or in any way connected with or incident to the performance of this Agreement except “responsibility for his own fraud, for willful injury to the person or property of another, or for violation of law, whether willful or negligent” as per 28-2-702, MCA. 214 Professional Services Master Task Order Agreement for HVAC Sales and Service Page 5 of 15 h. These obligations shall survive termination of this Agreement and the services performed hereunder. i. In addition to and independent from the above, Contractor shall at Contractor’s expense secure insurance coverage through an insurance company or companies duly licensed and authorized to conduct insurance business in Montana which insures the liabilities and obligations specifically assumed by the Contractor in this Section. The insurance coverage shall not contain any exclusion for liabilities specifically assumed by the Contractor in subsection (a) of this Section. j. The insurance shall cover and apply to all claims, demands, suits, damages, losses, and expenses that may be asserted or claimed against, recovered from, or suffered by the City without limit and without regard to the cause therefore and which is acceptable to the City and Contractor shall furnish to the City an accompanying certificate of insurance and accompanying endorsements in amounts not less than as follows:  Workers’ Compensation – statutory;  Employers’ Liability - $1,000,000 per occurrence and annual aggregate;  Commercial General Liability - $1,000,000 per occurrence; $2,000,000 annual aggregate;  Automobile Liability - $1,000,000 property damage/bodily injury; $1,000,000 annual aggregate; and  Professional Liability - $1,000,000 per claim; $2,000,000 annual aggregate k. The above amounts shall be exclusive of defense costs. The City of Bozeman, its officers, agents, and employees, shall be endorsed as an additional or named insured on a primary non-contributory basis on both the Commercial General and Automobile Liability policies. The insurance and required endorsements must be in a form suitable to City and shall include no less than a thirty (30) day notice of cancellation or non- renewal. The City must approve all insurance coverage and endorsements prior to the Contractor commencing work. Contractor shall notify City within two (2) business days of Contractor’s receipt of notice that any required insurance coverage will be terminated or Contractor’s decision to terminate any required insurance coverage for any reason. The City must approve all insurance coverage and endorsements prior to the Contractor commencing work. 215 Professional Services Master Task Order Agreement for HVAC Sales and Service Page 6 of 15 l. Pursuant to the City’s authority provided for in 18-2-201(4), the Contractor shall not be required to provide bonds as required by 18-2-201(1) for individual task orders under this Agreement. Bonds may be waived as allowed under 18-2-201(4) for individual task orders. 8. Inspection and Testing: a. City has the right to inspect and test any and all work performed by Contractor under a task order’s scope of services, referred to as the “Project”, executed under the authority of this Agreement. Contractor shall allow City and its agents access to the Project at all times and shall provide every reasonable facility for the purpose of such inspection and testing, including temporarily discontinuing portions of the work or uncovering or taking down portions of the finished work. Any inspection and testing performed by the City and its agents is for the sole benefit of the City and shall not relieve the Contractor of its duty, responsibility, and obligation to ensure that the work strictly complies with the Agreement terms and conditions and all applicable laws and building and safety codes. City’s inspection and testing shall not be deemed or considered acceptance by the City of any portion of the Project. City’s inspection and testing shall not serve to nullify, amend, or waive any warranties provided by the Contractor under this Agreement. b. Contractor shall, without charge, replace any material or correct any work found by the City or its agents to be defective or otherwise not in compliance with the terms and conditions of this Agreement. In the event Contractor fails to replace or correct any defective work or materials after reasonable written notice by the City to do so, the City may take such corrective action, either with its own materials and employees or by retaining any third party to do so, and deduct the cost and expense of such corrective action from the Contractor’s compensation. 9. Partial Utilization of the Project: City shall have the right to use or occupy any portion of the Project that City and Contractor mutually agree is substantially completed and constitutes a separately functioning and usable part of the Project for its intended purpose without significant interference with Contractor’s performance of the remaining portions of the Project. In the event City takes possession of any portion of the Project, such possession shall not be deemed an acceptance of the Project, in whole or in part. City’s use of any portion of the Project shall not be grounds for extensions of any construction deadlines or a change in 216 Professional Services Master Task Order Agreement for HVAC Sales and Service Page 7 of 15 the Contractor’s compensation. Contractor’s warranties shall run from the completion of the total Project and not from the date the City may take possession of selected portions of the Project. 10. Related Work at the Site: Nothing in this Agreement shall prevent or preclude City, through its own employees or by contract with any third party, from performing other work related to the Project at the construction site; provided such related work is not otherwise addressed in this Agreement and provided such related work does not otherwise interfere with Contractor’s performance of this Agreement or the completion of the Project. Contractor shall afford any City employee, agent or representative, or any third party under contract with the City to perform the related work, proper and safe access to the construction site, a reasonable opportunity for the introduction and storage of materials and equipment, the opportunity to perform the related work, and shall properly coordinate the Contractor’s work on the Project with the related work. 11. Contractor’s Warranties: Contractor represents and warrants as follows: a. Unless otherwise specified by the terms of the Task Order, all materials and equipment used by Contractor on the Project shall be new and where not otherwise specified, of the most suitable grade for their intended uses. b. All workmanship and materials shall be of a kind and nature acceptable to the City. c. All equipment, materials, and labor provided to, on, or for the Project must be free of defects and nonconformities in design, materials, and workmanship for a minimum period beginning with the commencement of the work on the Project and ending one (1) year from the final completion and acceptance by the City of the Project, regardless of whether such equipment, materials, or labor were supplied directly by Contractor or indirectly by Contractor’s subcontractors or suppliers. Other express warranties on materials that provide for a warranty period longer than one year apply for the period of that express warranty and are not reduced by this provision. Upon receipt of City’s written notice of a defective or nonconforming condition during the warranty period, Contractor shall take all actions, including redesign and replacement, to correct the defective or nonconforming condition within a time frame acceptable to the City and at no additional cost to the City. Contractor shall also, at its sole cost, perform any tests required by City to verify that such defective or nonconforming condition has been corrected. Contractor warrants the corrective action taken against defective and 217 Professional Services Master Task Order Agreement for HVAC Sales and Service Page 8 of 15 nonconforming conditions for a period of an additional one (1) year from the date of City’s acceptance of the corrective action. d. Contractor and its sureties are liable for the satisfaction and full performance of all warranties. e. Contractor shall give its personal attention to the faithful prosecution of the completion of the Project and Contractor, or its duly authorized representative assigned to serve as the Construction Project Manager, shall be personally present at the site of the Construction Project during working hours for the term of this Agreement until the completion of the Project. f. Contractor shall have a complete, accurate, and up-to-date set of construction plans, drawings, and specifications on site at all times. g. Contractor has examined all available records and made field examinations of the site of the Project. Contractor has knowledge of the field conditions to be encountered during the Project. Contractor has knowledge of the types and character of equipment necessary for the work, the types of materials needed and the sources of such materials, and the condition of the local labor market. h. Contractor is responsible for the safety of the work and shall maintain all lights, guards, signs, temporary passages, or other protections necessary for that purpose at all times. i. All work must be performed at Contractor’s risk, and Contractor shall promptly repair or replace all damage and loss at its sole cost and expense regardless of the reason or cause of the damage or loss; provided, however, should the damage or loss be caused by an intentional or negligent act of the City, the risk of such loss shall be placed on the City. j. Contractor is responsible for any loss or damage to materials, tools, or other articles used or held for use in the completion of performance of the Project. k. Contractor’s performance must be without damage or disruption to any other work or property of the City or of others and without interference with the operation of existing machinery or equipment. 218 Professional Services Master Task Order Agreement for HVAC Sales and Service Page 9 of 15 l. Title to all work, materials, and equipment covered by any payment of Contractor’s compensation by City, whether directly incorporated into the Project or not, passes to City at the time of payment, free and clear of all liens and encumbrances. 12. Termination for Contractor’s Fault: a. If Contractor refuses or fails to timely do the work, or any part thereof, or fails to perform any of its obligations under this Agreement, or otherwise breaches any terms or conditions of this Agreement, the City may, by written notice, terminate this Agreement or any individual Task Order under this Agreement and the Contractor’s right to proceed with all or any part of the work (“Termination Notice Due to Contractor’s Fault”). The City may then take over the work and complete it, either with its own resources or by re-letting the contract to any other third party. b. In the event of a termination pursuant to this Section 8, Contractor shall be entitled to payment only for those services Contractor actually rendered. c. Any termination provided for by this Section 8 shall be in addition to any other remedies to which the City may be entitled under the law or at equity. d. In the event of termination under this Section 8, Contractor shall, under no circumstances, be entitled to claim or recover consequential, special, punitive, lost business opportunity, lost productivity, field office overhead, general conditions costs, or lost profits damages of any nature arising, or claimed to have arisen, as a result of the termination. 13. Termination for City’s Convenience: a. Should conditions arise which, in the sole opinion and discretion of the City, make it advisable to the City to cease performance under this Agreement; the City may terminate this Agreement or any Task Order under this Agreement by written notice to Contractor (“Notice of Termination for City’s Convenience”). The termination shall be effective in the manner specified in the Notice of Termination for City’s Convenience and shall be without prejudice to any claims that the City may otherwise have against Contractor. 219 Professional Services Master Task Order Agreement for HVAC Sales and Service Page 10 of 15 b. Upon receipt of the Notice of Termination for City’s Convenience, unless otherwise directed in the Notice, the Contractor shall immediately cease performance under this Agreement or any Task Order under this Agreement and make every reasonable effort to refrain from continuing work, incurring additional expenses or costs under this Agreement or any Task Order under this Agreement and shall immediately cancel all existing orders or contracts upon terms satisfactory to the City. Contractor shall do only such work as may be necessary to preserve, protect, and maintain work already completed or immediately in progress. c. In the event of a termination pursuant to this Section 9, Contractor is entitled to payment only for those services Contractor actually rendered on or before the receipt of the Notice of Termination for City’s Convenience. d. The compensation described in Section 9(c) is the sole compensation due to Contractor for its performance of this Agreement. Contractor shall, under no circumstances, be entitled to claim or recover consequential, special, punitive, lost business opportunity, lost productivity, field office overhead, general conditions costs, or lost profits damages of any nature arising, or claimed to have arisen, as a result of the termination. 14. Limitation on Contractor’s Damages; Time for Asserting Claim: a. In the event of a claim for damages by Contractor under this Agreement, Contractor’s damages shall be limited to contract damages and Contractor hereby expressly waives any right to claim or recover consequential, special, punitive, lost business opportunity, lost productivity, field office overhead, general conditions costs, or lost profits damages of any nature or kind. b. In the event Contractor wants to assert a claim for damages of any kind or nature, Contractor shall provide City with written notice of its claim, the facts and circumstances surrounding and giving rise to the claim, and the total amount of damages sought by the claim, within thirty (30) days of the facts and circumstances giving rise to the claim. In the event Contractor fails to provide such notice, Contractor shall waive all rights to assert such claim. 15. Representatives: 220 Professional Services Master Task Order Agreement for HVAC Sales and Service Page 11 of 15 a. City’s Representative: The City’s Representative for the purpose of this Agreement shall be Max Ziegler, Facilities Project Coordinator, or such other individual as City shall designate in writing. Whenever approval or authorization from or communication or submission to City is required by this Agreement, such communication or submission shall be directed to the City’s Representative and approvals or authorizations shall be issued only by such Representative; provided, however, that in exigent circumstances when City’s Representative is not available, Contractor may direct its communication or submission to other designated City personnel or agents and may receive approvals or authorization from such persons. b. Contractor’s Representative: The Contractor’s Representative for the purpose of this Agreement shall be Ryan DeBruycker or such other individual as Contractor shall designate in writing. Whenever direction to or communication with Contractor is required by this Agreement, such direction or communication shall be directed to Contractor’s Representative; provided, however, that in exigent circumstances when Contractor’s Representative is not available, City may direct its direction or communication to other designated Contractor personnel or agents. c. Notices: All notices required by this Agreement shall be in writing and shall be provided to the Representatives named in this Section. Notices shall be deemed given when delivered, if delivered by courier to Party’s address shown above during normal business hours of the recipient; or when sent, if sent by email or fax (with a successful transmission report) to the email address or fax number provided by the Party’s Representative; or on the fifth business day following mailing, if mailed by ordinary mail to the address shown above, postage prepaid. 16. Permits: Contractor shall provide all notices, comply with all applicable laws, ordinances, rules, and regulations, obtain all necessary permits, licenses, including a City of Bozeman business license, and inspections from applicable governmental authorities, and pay all fees and charges in connection therewith. 221 Professional Services Master Task Order Agreement for HVAC Sales and Service Page 12 of 15 17. Laws and Regulations: Contractor shall comply fully with all applicable state and federal laws, regulations, and municipal ordinances including, but not limited to, all workers’ compensation laws, all environmental laws including, but not limited to, the generation and disposal of hazardous waste, the Occupational Safety and Health Act (OSHA), the safety rules, codes, and provisions of the Montana Safety Act in Title 50, Chapter 71, MCA, all applicable City, County, and State building and electrical codes, the Americans with Disabilities Act, and all non-discrimination, affirmative action, and utilization of minority and small business statutes and regulations. 18. Nondiscrimination and Equal Pay: a. The Contractor agrees that all hiring by Contractor of persons performing this Agreement shall be on the basis of merit and qualifications. The Contractor will have a policy to provide equal employment opportunity in accordance with all applicable state and federal anti-discrimination laws, regulations, and contracts. The Contractor will not refuse employment to a person, bar a person from employment, or discriminate against a person in compensation or in a term, condition, or privilege of employment because of race, color, religion, creed, political ideas, sex, age, marital status, national origin, actual or perceived sexual orientation, gender identity, physical or mental disability, except when the reasonable demands of the position require an age, physical or mental disability, marital status or sex distinction. The Contractor shall be subject to and comply with Title VI of the Civil Rights Act of 1964; Section 140, Title 2, United States Code, and all regulations promulgated thereunder. b. 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. c. Contractor shall require these nondiscrimination terms of its subcontractors providing services under this Agreement. 19. Intoxicants; DOT Drug and Alcohol Regulations/Safety and Training: a. Contractor shall not permit or suffer the introduction or use of any intoxicants, including alcohol or illegal drugs, by any employee or agent engaged in services to the City under this Agreement while on City property or in the performance of any activities under this Agreement. Contractor acknowledges it is aware of and shall 222 Professional Services Master Task Order Agreement for HVAC Sales and Service Page 13 of 15 comply with its responsibilities and obligations under the U.S. Department of Transportation (DOT) regulations governing anti-drug and alcohol misuse prevention plans and related testing. City shall have the right to request proof of such compliance and Contractor shall be obligated to furnish such proof. b. The Contractor shall be responsible for instructing and training the Contractor's employees and agents in proper and specified work methods and procedures. The Contractor shall provide continuous inspection and supervision of the work performed. The Contractor is responsible for instructing his employees and agents in safe work practices. 20. Modification and Assignability: This Agreement may not be enlarged, modified or altered except by written agreement signed by both parties hereto. The Contractor may not subcontract or assign Contractor’s rights, including the right to compensation or duties arising hereunder, without the prior written consent of City. Any subcontractor or assignee will be bound by all of the terms and conditions of this Agreement. 21. Reports/Accountability/Public Information: Contractor agrees to develop and/or provide documentation as requested by the City demonstrating Contractor’s compliance with the requirements of this Agreement. Contractor shall allow the City, its auditors, and other persons authorized by the City to inspect and copy its books and records for the purpose of verifying that the reimbursement of monies distributed to Contractor pursuant to this Agreement was used in compliance with this Agreement and all applicable provisions of federal, state, and local law. The Contractor shall not issue any statements, releases or information for public dissemination without prior approval of the City. 22. Non-Waiver: A waiver by either party any default or breach by the other party of any terms or conditions of this Agreement does not limit the other party’s right to enforce such term or conditions or to pursue any available legal or equitable rights in the event of any subsequent default or breach. 23. Attorney’s Fees and Costs: That 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 or the Party giving notice shall be entitled to reasonable attorney's fees and costs, including fees, salary, and costs of in-house counsel to include City Attorney. 223 Professional Services Master Task Order Agreement for HVAC Sales and Service Page 14 of 15 24. Taxes: Contractor is obligated to pay all taxes of any kind or nature and make all appropriate employee withholdings. 25. Dispute Resolution: a. Any claim, controversy, or dispute between the parties, their agents, employees, or representatives shall be resolved first by negotiation between senior-level personnel from each party duly authorized to execute settlement agreements. Upon mutual agreement of the parties, the parties may invite an independent, disinterested mediator to assist in the negotiated settlement discussions. b. If the parties are unable to resolve the dispute within thirty (30) days from the date the dispute was first raised, then such dispute may only be resolved in a court of competent jurisdiction in compliance with the Applicable Law provisions of this Agreement. 26. Survival: Contractor’s indemnification shall survive the termination or expiration of this Agreement for the maximum period allowed under applicable law. 27. Headings: The headings used in this Agreement are for convenience only and are not be construed as a part of the Agreement or as a limitation on the scope of the particular paragraphs to which they refer. 28. Severability: If any portion of this Agreement is held to be void or unenforceable, the balance thereof shall continue in effect. 29. Applicable Law: The parties agree that this Agreement is governed in all respects by the laws of the State of Montana. 30. Binding Effect: This Agreement is binding upon and inures to the benefit of the heirs, legal representatives, successors, and assigns of the parties. 31. 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. 32. Counterparts: This Agreement may be executed in counterparts, which together constitute one instrument. 224 Professional Services Master Task Order Agreement for HVAC Sales and Service Page 15 of 15 33. Integration: This Agreement and all Exhibits attached hereto constitute the entire agreement of the parties. Covenants or representations not contained therein or made a part thereof by reference, are not binding upon the parties. There are no understandings between the parties other than as set forth in this Agreement. All communications, either verbal or written, made prior to the date of this Agreement are hereby abrogated and withdrawn unless specifically made a part of this Agreement by reference. 34. Consent to Electronic Signatures: The Parties have consented to execute this Agreement electronically in conformance with the Montana Uniform Electronic Transactions Act, Title 30, Chapter 18, Part 1, MCA. **** END OF AGREEMENT EXCEPT FOR SIGNATURES **** IN WITNESS WHEREOF, the parties hereto have executed this instrument the day and year first above written. CITY OF BOZEMAN, MONTANA ____________________________________ CONTRACTOR (Type Name Above) By________________________________ By__________________________________ Jeff Mihelich, City Manager Print Name: Print Title: ____________________________ APPROVED AS TO FORM: By_______________________________ Greg Sullivan, Bozeman City Attorney 225 EXHIBIT A 226 S. Conley Support - Service technician rates Labor Rate $179.00 Weekend or Overtime labor rate $268.50 Holiday labor rate $358.00 Truck Charges per trip within 35 mile radius of Bozeman $50/trip 227 EXHIBIT B 228 City of Bozeman Term Contract: Task Order Number # PROJECT: Issued under the authority of City of Bozeman Term Contract Professional Services Agreement With: For: This Task Order is dated between: and The following representatives have been designated for the work performed under this Task Order City: Contractor: SCOPE OF WORK: COMPENSATION IN WITNESS WHEREOF, the parties authorized to commit resources of the parties have executed this Task Order: City of Bozeman 229 Professional Services Master Task Order Agreement for Electrical Contracting Services Page 1 of 16 PROFESSIONAL SERVICES MASTER TASK ORDER AGREEMENT THIS AGREEMENT is made and entered into this _____ of January, 2024, 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, Standard Electric LLC, PO Box 3134, Bozeman, MT 59772, hereinafter referred to as “Contractor.” In consideration of the mutual covenants and agreements herein contained, the receipt and sufficiency whereof being hereby acknowledged, the parties hereto agree as follows: 1. Purpose: City agrees to enter into this agreement with Contractor to provide Electrical Contracting Services as requested by the City through issuance of individual, consecutively numbered Task Orders on an as needed and requested basis. 2. Term/Effective Date: This Agreement is effective upon the date of its execution and will expire on January 1, 2029, unless extended or terminated as specifically provided for within the agreement. 3. Scope of Work: Contractor will perform the work and provide the services in accordance with the requirements of the Scope of Services. The Contractor will perform the specific services and schedule as mutually agreed upon by City and Contractor and included in each individual Task Order executed under the authority of this Agreement. Task Orders shall be in a format similar to EXHIBIT B, attached and made part of this Agreement. For conflicts between this Agreement and the Scope of Services the Agreement governs. 4. Payment: The terms of compensation to Contractor shall be agreed upon and included in each Task Order. The task order amount shall be based on the rates specified in EXHIBIT A. City agrees to pay Contractor the amount specified in the individual Task Orders. Any alteration or deviation from the described services that involves additional costs above the Agreement amount will be performed by Contractor after written request by the City, and will become an additional charge over and above the amount listed in EXHIBIT A. The City must agree in writing upon any additional charges. 230 Professional Services Master Task Order Agreement for Electrical Contracting Services Page 2 of 16 5. Contractor’s Representations: To induce City to enter into this Agreement, Contractor makes the following representations: a. Contractor has familiarized itself with the nature and extent of this agreement, the Scope of Services and with all local conditions and federal, state and local laws, ordinances, rules, and regulations that in any manner may affect cost, progress or performance of the Scope of Services. b. For each individual Task Order, Contractor will familiarize itself with the nature and extent of the assignment, and with all local conditions and federal, state and local laws, ordinances, rules, and regulations that in any manner may affect cost, progress or performance of the Scope of Services and will provide a mutually agreeable Scope of Services for each Task Order. c. Contractor represents to City that it has the experience and ability to perform the services required by this Agreement; that it will perform said services in a professional, competent and timely manner and with diligence and skill ordinarily used by member in the same profession practicing at the same time and in the same locality; that it has the power to enter into and perform this Agreement and grant the rights granted in it; and that its performance of this Agreement shall not infringe upon or violate the rights of any third party, whether rights of copyright, trademark, privacy, publicity, libel, slander or any other rights of any nature whatsoever, or violate any federal, state and municipal laws. The City will not determine or exercise control as to general procedures or formats necessary to have these services meet this standard of care. 6. Independent Contractor Status/Labor Relations: a. The parties agree that Contractor is an independent contractor for purposes of this Agreement and is not to be considered an employee of the City for any purpose. Contractor is not subject to the terms and provisions of the City’s personnel policies handbook and may not be considered a City employee for workers’ compensation or any other purpose. Contractor is not authorized to represent the City or otherwise bind the City in any dealings between Contractor and any third parties. b. Contractor shall comply with the applicable requirements of the Workers’ Compensation Act, Title 39, Chapter 71, MCA, and the Occupational Disease Act of Montana, Title 39, Chapter 71, MCA. Contractor shall maintain workers’ compensation coverage for all members and employees of Contractor’s business, except for those members who are exempted by law. 231 Professional Services Master Task Order Agreement for Electrical Contracting Services Page 3 of 16 c. Contractor shall furnish the City with copies showing one of the following: (1) a binder for workers’ compensation coverage by an insurer licensed and authorized to provide workers’ compensation insurance in the State of Montana; or (2) proof of exemption from workers’ compensation granted by law for independent contractors. d. Contractor shall post a legible statement of all wages and fringe benefits to be paid to the Contractor’s employees and the frequency of such payments (i.e., hourly wage employees shall be paid weekly). Such posting shall be made in a prominent and accessible location at the Contractor’s normal place of business and shall be made no later than the first day of services provided under this Agreement. Such posting shall be removed only upon expiration or termination of this Agreement. e. In performing the services under this Agreement, Contractor shall give preference to the employment of bona fide residents of Montana, as required by §18-2-403, MCA, as such term is defined by §18-2-401(1), MCA. When making assignments of work, Contractor shall use workers both skilled in their trade and specialized in their field of work for all work to which they are assigned. f. Pursuant to §§18-2-403 and 18-2-422, MCA, Contractor shall pay wages, fringe benefits, and expenses, including travel allowances as set forth in the current Montana Prevailing Wage Rate for Non Construction Services in effect and applicable to Gallatin County, Montana, which schedule is incorporated herein. Contractor shall pay all hourly wage employees on a weekly basis. Violation of the requirements set forth in the above State of Montana schedule of prevailing wage rates may subject the Contractor to the penalties set forth in §18-2-407, MCA. Contractor shall maintain payroll records during the term of this Agreement and for a period of three (3) years following termination of this Agreement. g. The Contractor shall ensure that any person, firm or entity performing any portion of the services under this Agreement for which the contractor, subcontractor or employer is responsible, is paid the applicable standard prevailing rate of wages. h. In the event that, during the term of this Agreement, any labor problems or disputes of any type arise or materialize which in turn cause any services to cease for any period of time, Contractor specifically agrees to take immediate steps, at its own expense and without expectation of reimbursement from City, to alleviate or resolve all such labor problems or disputes. The specific steps Contractor shall take shall be left to the discretion of Contractor; provided, however, that Contractor shall bear all costs of any 232 Professional Services Master Task Order Agreement for Electrical Contracting Services Page 4 of 16 related legal action. Contractor shall provide immediate relief to the City so as to permit the services to continue at no additional cost to City. i. Contractor shall indemnify and hold the City harmless from any and all claims, demands, costs, expenses, damages, and liabilities arising out of, resulting from, or occurring in connection with any labor problems or disputes or any delays or stoppages of work associated with such problems or disputes and for any claims regarding underpaid prevailing wages. 7. Indemnity/Waiver of Claims/Insurance: a. For other than professional services rendered, to the fullest extent permitted by law, Contractor agrees to release, defend, indemnify, and hold harmless the City, its agents, representatives, employees, and officers (collectively referred to for purposes of this Section as the City) from and against any and all claims, demands, actions, fees and costs (including attorney’s fees and the costs and fees of and expert witness and consultants), losses, expenses, liabilities (including liability where activity is inherently or intrinsically dangerous) or damages of whatever kind or nature connected therewith and without limit and without regard to the cause or causes thereof or the negligence of any party or parties that may be asserted against, recovered from or suffered by the City occasioned by, growing or arising out of or resulting from or in any way related to: (i) the negligent, reckless, or intentional misconduct of the Contractor; (ii) any negligent, reckless, or intentional misconduct of any of the Contractor’s agents; b. For the services rendered, to the fullest extent permitted by law, Contractor agrees to indemnify and hold the City harmless against claims, demands, suits, damages, losses, and expenses, including reasonable defense attorney fees, to the extent caused by the negligence or intentional misconduct of the Contractor or Contractor’s agents or employees. c. Such obligations shall not be construed to negate, abridge, or reduce other rights or obligations of indemnity that would otherwise exist. The indemnification obligations of this Section must not be construed to negate, abridge, or reduce any common-law or statutory rights of the indemnitee(s) which would otherwise exist as to such indemnitee(s). d. Contractor’s indemnity under this Section shall be without regard to and without any right to contribution from any insurance maintained by City. 233 Professional Services Master Task Order Agreement for Electrical Contracting Services Page 5 of 16 e. Should the City be required to bring an action against the Contractor to assert its right to defense or indemnification under this Agreement or under the Contractor’s applicable insurance policies required below, the City shall be entitled to recover reasonable costs and attorney fees incurred in asserting its right to indemnification or defense but only if a court of competent jurisdiction determines the Contractor was obligated to defend the claim(s) or was obligated to indemnify the City for a claim(s) or any portion(s) thereof. f. In the event of an action filed against City resulting from the City’s performance under this Agreement, the City may elect to represent itself and incur all costs and expenses of suit. g. Contractor also waives any and all claims and recourse against the City or its officers, agents or employees, including the right of contribution for loss or damage to person or property arising from, growing out of, or in any way connected with or incident to the performance of this Agreement except “responsibility for his own fraud, for willful injury to the person or property of another, or for violation of law, whether willful or negligent” as per 28-2-702, MCA. h. These obligations shall survive termination of this Agreement and the services performed hereunder. i. In addition to and independent from the above, Contractor shall at Contractor’s expense secure insurance coverage through an insurance company or companies duly licensed and authorized to conduct insurance business in Montana which insures the liabilities and obligations specifically assumed by the Contractor in this Section. The insurance coverage shall not contain any exclusion for liabilities specifically assumed by the Contractor in subsection (a) of this Section. j. The insurance shall cover and apply to all claims, demands, suits, damages, losses, and expenses that may be asserted or claimed against, recovered from, or suffered by the City without limit and without regard to the cause therefore and which is acceptable to the City and Contractor shall furnish to the City an accompanying certificate of insurance and accompanying endorsements in amounts not less than as follows:  Workers’ Compensation – statutory;  Employers’ Liability - $1,000,000 per occurrence and annual aggregate;  Commercial General Liability - $1,000,000 per occurrence; $2,000,000 annual aggregate; 234 Professional Services Master Task Order Agreement for Electrical Contracting Services Page 6 of 16  Automobile Liability - $1,000,000 property damage/bodily injury; $1,000,000 annual aggregate; and  Professional Liability - $1,000,000 per claim; $2,000,000 annual aggregate  Builder’s Risk/Property Insurance at least as broad as that provided by the ISO special causes of loss form (CP10 30) naming at a minimum the City in an amount equal to greater of Contractor’s compensation or full replacement value of the work (covering at a minimum all work, buildings, materials and equipment, whether on site or in transit, loss due to fire, lightening, theft, vandalism, malicious mischief, earthquake, collapse, debris removal, demolition occasioned by enforcement of laws, water damage, flood if site within a flood plain, repair or replacement costs, testing and start-up costs) on an all risk coverage basis. This insurance must include waivers of subrogation between the City and Contractor to the extent that damage to the Project or City Hall is covered by other insurance;  Owner’s and Contractor’s Protective Liability: one policy designating the City (including its agents, representatives, employees, and officers) as the insured and another independent policy designated the City’s Representative (including its consultants, consultants, agents and employees) as the insured on the declarations with both policies covering: (i) operations performed by the Contractor under this Agreement for the City; and (ii) the City’s and City’s Representatives acts or omissions, including negligent acts, in connection with its general supervision of the work of the Contractor’s and its subcontractors - $1,000,000 per occurrence; $2,000,000 aggregate;  Contractual Liability Insurance (covering the Contractor’s indemnity obligations described in this Agreement) - $1,000,000 per occurrence $2,000,000 aggregate k. The above amounts shall be exclusive of defense costs. The City of Bozeman, its officers, agents, and employees, shall be endorsed as an additional or named insured on a primary non-contributory basis on both the Commercial General and Automobile Liability policies. The insurance and required endorsements must be in a form suitable to City and shall include no less than a thirty (30) day notice of cancellation or non- renewal. The City must approve all insurance coverage and endorsements prior to the Contractor commencing work. Contractor shall notify City within two (2) business days of Contractor’s receipt of notice that any required insurance coverage will be terminated or Contractor’s decision to terminate any required insurance coverage for any reason. The City must approve all insurance coverage and endorsements prior to the Contractor commencing work. 235 Professional Services Master Task Order Agreement for Electrical Contracting Services Page 7 of 16 l. Pursuant to the City’s authority provided for in 18-2-201(4), the Contractor shall not be required to provide bonds as required by 18-2-201(1) for individual task orders under this Agreement. Bonds may be waived as allowed under 18-2-201(4) for individual task orders. 8. Inspection and Testing: a. City has the right to inspect and test any and all work performed by Contractor under a task order’s scope of services, referred to as the “Project”, executed under the authority of this Agreement. Contractor shall allow City and its agents access to the Project at all times and shall provide every reasonable facility for the purpose of such inspection and testing, including temporarily discontinuing portions of the work or uncovering or taking down portions of the finished work. Any inspection and testing performed by the City and its agents is for the sole benefit of the City and shall not relieve the Contractor of its duty, responsibility, and obligation to ensure that the work strictly complies with the Agreement terms and conditions and all applicable laws and building and safety codes. City’s inspection and testing shall not be deemed or considered acceptance by the City of any portion of the Project. City’s inspection and testing shall not serve to nullify, amend, or waive any warranties provided by the Contractor under this Agreement. b. Contractor shall, without charge, replace any material or correct any work found by the City or its agents to be defective or otherwise not in compliance with the terms and conditions of this Agreement. In the event Contractor fails to replace or correct any defective work or materials after reasonable written notice by the City to do so, the City may take such corrective action, either with its own materials and employees or by retaining any third party to do so, and deduct the cost and expense of such corrective action from the Contractor’s compensation. 9. Partial Utilization of the Project: City shall have the right to use or occupy any portion of the Project that City and Contractor mutually agree is substantially completed and constitutes a separately functioning and usable part of the Project for its intended purpose without significant interference with Contractor’s performance of the remaining portions of the Project. In the event City takes possession of any portion of the Project, such possession shall not be deemed an acceptance of the Project, in whole or in part. City’s use of any portion of the Project shall not be grounds for extensions of any construction deadlines or a change in the Contractor’s compensation. Contractor’s warranties shall run from the completion of the 236 Professional Services Master Task Order Agreement for Electrical Contracting Services Page 8 of 16 total Project and not from the date the City may take possession of selected portions of the Project. 10. Related Work at the Site: Nothing in this Agreement shall prevent or preclude City, through its own employees or by contract with any third party, from performing other work related to the Project at the construction site; provided such related work is not otherwise addressed in this Agreement and provided such related work does not otherwise interfere with Contractor’s performance of this Agreement or the completion of the Project. Contractor shall afford any City employee, agent or representative, or any third party under contract with the City to perform the related work, proper and safe access to the construction site, a reasonable opportunity for the introduction and storage of materials and equipment, the opportunity to perform the related work, and shall properly coordinate the Contractor’s work on the Project with the related work. 11. Contractor’s Warranties: Contractor represents and warrants as follows: a. Unless otherwise specified by the terms of the Task Order, all materials and equipment used by Contractor on the Project shall be new and where not otherwise specified, of the most suitable grade for their intended uses. b. All workmanship and materials shall be of a kind and nature acceptable to the City. c. All equipment, materials, and labor provided to, on, or for the Project must be free of defects and nonconformities in design, materials, and workmanship for a minimum period beginning with the commencement of the work on the Project and ending one (1) year from the final completion and acceptance by the City of the Project, regardless of whether such equipment, materials, or labor were supplied directly by Contractor or indirectly by Contractor’s subcontractors or suppliers. Other express warranties on materials that provide for a warranty period longer than one year apply for the period of that express warranty and are not reduced by this provision. Upon receipt of City’s written notice of a defective or nonconforming condition during the warranty period, Contractor shall take all actions, including redesign and replacement, to correct the defective or nonconforming condition within a time frame acceptable to the City and at no additional cost to the City. Contractor shall also, at its sole cost, perform any tests required by City to verify that such defective or nonconforming condition has been corrected. Contractor warrants the corrective action taken against defective and nonconforming conditions for a period of an additional one (1) year from the date of City’s acceptance of the corrective action. 237 Professional Services Master Task Order Agreement for Electrical Contracting Services Page 9 of 16 d. Contractor and its sureties are liable for the satisfaction and full performance of all warranties. e. Contractor shall give its personal attention to the faithful prosecution of the completion of the Project and Contractor, or its duly authorized representative assigned to serve as the Construction Project Manager, shall be personally present at the site of the Construction Project during working hours for the term of this Agreement until the completion of the Project. f. Contractor shall have a complete, accurate, and up-to-date set of construction plans, drawings, and specifications on site at all times. g. Contractor has examined all available records and made field examinations of the site of the Project. Contractor has knowledge of the field conditions to be encountered during the Project. Contractor has knowledge of the types and character of equipment necessary for the work, the types of materials needed and the sources of such materials, and the condition of the local labor market. h. Contractor is responsible for the safety of the work and shall maintain all lights, guards, signs, temporary passages, or other protections necessary for that purpose at all times. i. All work must be performed at Contractor’s risk, and Contractor shall promptly repair or replace all damage and loss at its sole cost and expense regardless of the reason or cause of the damage or loss; provided, however, should the damage or loss be caused by an intentional or negligent act of the City, the risk of such loss shall be placed on the City. j. Contractor is responsible for any loss or damage to materials, tools, or other articles used or held for use in the completion of performance of the Project. k. Contractor’s performance must be without damage or disruption to any other work or property of the City or of others and without interference with the operation of existing machinery or equipment. l. Title to all work, materials, and equipment covered by any payment of Contractor’s compensation by City, whether directly incorporated into the Project or not, passes to City at the time of payment, free and clear of all liens and encumbrances. 238 Professional Services Master Task Order Agreement for Electrical Contracting Services Page 10 of 16 12. Termination for Contractor’s Fault: a. If Contractor refuses or fails to timely do the work, or any part thereof, or fails to perform any of its obligations under this Agreement, or otherwise breaches any terms or conditions of this Agreement, the City may, by written notice, terminate this Agreement or any individual Task Order under this Agreement and the Contractor’s right to proceed with all or any part of the work (“Termination Notice Due to Contractor’s Fault”). The City may then take over the work and complete it, either with its own resources or by re-letting the contract to any other third party. b. In the event of a termination pursuant to this Section 8, Contractor shall be entitled to payment only for those services Contractor actually rendered. c. Any termination provided for by this Section 8 shall be in addition to any other remedies to which the City may be entitled under the law or at equity. d. In the event of termination under this Section 8, Contractor shall, under no circumstances, be entitled to claim or recover consequential, special, punitive, lost business opportunity, lost productivity, field office overhead, general conditions costs, or lost profits damages of any nature arising, or claimed to have arisen, as a result of the termination. 13. Termination for City’s Convenience: a. Should conditions arise which, in the sole opinion and discretion of the City, make it advisable to the City to cease performance under this Agreement; the City may terminate this Agreement or any Task Order under this Agreement by written notice to Contractor (“Notice of Termination for City’s Convenience”). The termination shall be effective in the manner specified in the Notice of Termination for City’s Convenience and shall be without prejudice to any claims that the City may otherwise have against Contractor. b. Upon receipt of the Notice of Termination for City’s Convenience, unless otherwise directed in the Notice, the Contractor shall immediately cease performance under this Agreement or any Task Order under this Agreement and make every reasonable effort to refrain from continuing work, incurring additional expenses or costs under this Agreement or any Task Order under this Agreement and shall immediately cancel all existing orders or contracts upon terms satisfactory to the City. Contractor shall do 239 Professional Services Master Task Order Agreement for Electrical Contracting Services Page 11 of 16 only such work as may be necessary to preserve, protect, and maintain work already completed or immediately in progress. c. In the event of a termination pursuant to this Section 9, Contractor is entitled to payment only for those services Contractor actually rendered on or before the receipt of the Notice of Termination for City’s Convenience. d. The compensation described in Section 9(c) is the sole compensation due to Contractor for its performance of this Agreement. Contractor shall, under no circumstances, be entitled to claim or recover consequential, special, punitive, lost business opportunity, lost productivity, field office overhead, general conditions costs, or lost profits damages of any nature arising, or claimed to have arisen, as a result of the termination. 14. Limitation on Contractor’s Damages; Time for Asserting Claim: a. In the event of a claim for damages by Contractor under this Agreement, Contractor’s damages shall be limited to contract damages and Contractor hereby expressly waives any right to claim or recover consequential, special, punitive, lost business opportunity, lost productivity, field office overhead, general conditions costs, or lost profits damages of any nature or kind. b. In the event Contractor wants to assert a claim for damages of any kind or nature, Contractor shall provide City with written notice of its claim, the facts and circumstances surrounding and giving rise to the claim, and the total amount of damages sought by the claim, within thirty (30) days of the facts and circumstances giving rise to the claim. In the event Contractor fails to provide such notice, Contractor shall waive all rights to assert such claim. 15. Representatives: a. City’s Representative: The City’s Representative for the purpose of this Agreement shall be Max Ziegler, Facilities Project Coordinator, or such other individual as City shall designate in writing. Whenever approval or authorization from or communication or submission to City is required by this Agreement, such communication or submission shall be directed to the City’s Representative and approvals or authorizations shall be issued only by such Representative; provided, however, that in exigent circumstances when City’s Representative is not available, 240 Professional Services Master Task Order Agreement for Electrical Contracting Services Page 12 of 16 Contractor may direct its communication or submission to other designated City personnel or agents and may receive approvals or authorization from such persons. b. Contractor’s Representative: The Contractor’s Representative for the purpose of this Agreement shall be Spencer Draper or such other individual as Contractor shall designate in writing. Whenever direction to or communication with Contractor is required by this Agreement, such direction or communication shall be directed to Contractor’s Representative; provided, however, that in exigent circumstances when Contractor’s Representative is not available, City may direct its direction or communication to other designated Contractor personnel or agents. c. Notices: All notices required by this Agreement shall be in writing and shall be provided to the Representatives named in this Section. Notices shall be deemed given when delivered, if delivered by courier to Party’s address shown above during normal business hours of the recipient; or when sent, if sent by email or fax (with a successful transmission report) to the email address or fax number provided by the Party’s Representative; or on the fifth business day following mailing, if mailed by ordinary mail to the address shown above, postage prepaid. 16. Permits: Contractor shall provide all notices, comply with all applicable laws, ordinances, rules, and regulations, obtain all necessary permits, licenses, including a City of Bozeman business license, and inspections from applicable governmental authorities, and pay all fees and charges in connection therewith. 17. Laws and Regulations: Contractor shall comply fully with all applicable state and federal laws, regulations, and municipal ordinances including, but not limited to, all workers’ compensation laws, all environmental laws including, but not limited to, the generation and disposal of hazardous waste, the Occupational Safety and Health Act (OSHA), the safety rules, codes, and provisions of the Montana Safety Act in Title 50, Chapter 71, MCA, all applicable City, County, and State building and electrical codes, the Americans with Disabilities Act, and all non-discrimination, affirmative action, and utilization of minority and small business statutes and regulations. 18. Nondiscrimination and Equal Pay: a. 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 241 Professional Services Master Task Order Agreement for Electrical Contracting Services Page 13 of 16 discriminate against a person in compensation or in a term, condition, or privilege of employment because of race, color, religion, creed, political ideas, sex, age, marital status, national origin, actual or perceived sexual orientation, gender identity, physical or mental disability, except when the reasonable demands of the position require an age, physical or mental disability, marital status or sex distinction. The Contractor shall be subject to and comply with Title VI of the Civil Rights Act of 1964; Section 140, Title 2, United States Code, and all regulations promulgated thereunder. b. 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. c. Contractor shall require these nondiscrimination terms of its subcontractors providing services under this Agreement. 19. Intoxicants; DOT Drug and Alcohol Regulations/Safety and Training: a. Contractor shall not permit or suffer the introduction or use of any intoxicants, including alcohol or illegal drugs, by any employee or agent engaged in services to the City under this Agreement while on City property or in the performance of any activities under this Agreement. Contractor acknowledges it is aware of and shall comply with its responsibilities and obligations under the U.S. Department of Transportation (DOT) regulations governing anti-drug and alcohol misuse prevention plans and related testing. City shall have the right to request proof of such compliance and Contractor shall be obligated to furnish such proof. b. The Contractor shall be responsible for instructing and training the Contractor's employees and agents in proper and specified work methods and procedures. The Contractor shall provide continuous inspection and supervision of the work performed. The Contractor is responsible for instructing his employees and agents in safe work practices. 20. Modification and Assignability: This Agreement may not be enlarged, modified or altered except by written agreement signed by both parties hereto. The Contractor may not subcontract or assign Contractor’s rights, including the right to compensation or duties arising hereunder, without the prior written consent of City. Any subcontractor or assignee will be bound by all of the terms and conditions of this Agreement. 242 Professional Services Master Task Order Agreement for Electrical Contracting Services Page 14 of 16 21. Reports/Accountability/Public Information: Contractor agrees to develop and/or provide documentation as requested by the City demonstrating Contractor’s compliance with the requirements of this Agreement. Contractor shall allow the City, its auditors, and other persons authorized by the City to inspect and copy its books and records for the purpose of verifying that the reimbursement of monies distributed to Contractor pursuant to this Agreement was used in compliance with this Agreement and all applicable provisions of federal, state, and local law. The Contractor shall not issue any statements, releases or information for public dissemination without prior approval of the City. 22. Non-Waiver: A waiver by either party any default or breach by the other party of any terms or conditions of this Agreement does not limit the other party’s right to enforce such term or conditions or to pursue any available legal or equitable rights in the event of any subsequent default or breach. 23. Attorney’s Fees and Costs: That 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 or the Party giving notice shall be entitled to reasonable attorney's fees and costs, including fees, salary, and costs of in-house counsel to include City Attorney. 24. Taxes: Contractor is obligated to pay all taxes of any kind or nature and make all appropriate employee withholdings. 25. Dispute Resolution: a. Any claim, controversy, or dispute between the parties, their agents, employees, or representatives shall be resolved first by negotiation between senior-level personnel from each party duly authorized to execute settlement agreements. Upon mutual agreement of the parties, the parties may invite an independent, disinterested mediator to assist in the negotiated settlement discussions. b. If the parties are unable to resolve the dispute within thirty (30) days from the date the dispute was first raised, then such dispute may only be resolved in a court of competent jurisdiction in compliance with the Applicable Law provisions of this Agreement. 26. Survival: Contractor’s indemnification shall survive the termination or expiration of this Agreement for the maximum period allowed under applicable law. 243 Professional Services Master Task Order Agreement for Electrical Contracting Services Page 15 of 16 27. Headings: The headings used in this Agreement are for convenience only and are not be construed as a part of the Agreement or as a limitation on the scope of the particular paragraphs to which they refer. 28. Severability: If any portion of this Agreement is held to be void or unenforceable, the balance thereof shall continue in effect. 29. Applicable Law: The parties agree that this Agreement is governed in all respects by the laws of the State of Montana. 30. Binding Effect: This Agreement is binding upon and inures to the benefit of the heirs, legal representatives, successors, and assigns of the parties. 31. 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. 32. Counterparts: This Agreement may be executed in counterparts, which together constitute one instrument. 33. Integration: This Agreement and all Exhibits attached hereto constitute the entire agreement of the parties. Covenants or representations not contained therein or made a part thereof by reference, are not binding upon the parties. There are no understandings between the parties other than as set forth in this Agreement. All communications, either verbal or written, made prior to the date of this Agreement are hereby abrogated and withdrawn unless specifically made a part of this Agreement by reference. 34. Consent to Electronic Signatures: The Parties have consented to execute this Agreement electronically in conformance with the Montana Uniform Electronic Transactions Act, Title 30, Chapter 18, Part 1, MCA. **** END OF AGREEMENT EXCEPT FOR SIGNATURES **** IN WITNESS WHEREOF, the parties hereto have executed this instrument the day and year first above written. CITY OF BOZEMAN, MONTANA ____________________________________ 244 Professional Services Master Task Order Agreement for Electrical Contracting Services Page 16 of 16 CONTRACTOR (Type Name Above) By________________________________ By__________________________________ Jeff Mihelich, City Manager Print Name: Print Title: ____________________________ APPROVED AS TO FORM: By_______________________________ Greg Sullivan, Bozeman City Attorney 245 EXHIBIT A 246 From:Spencer Draper To:Max Ziegler Subject:[EXTERNAL]RE: City of Bozeman Term Contract Date:Saturday, December 9, 2023 9:34:27 AM Attachments:image001.png CAUTION: This email originated from outside of the organization. Do not click links or open attachments unless you recognize the sender and know the content is safe. Hi Max, Please see our Q4 fully burdened prevailing wage rates below. Note that these wage rates include all overhead and profit and account for all prevailing wage fringes. I wasn’t sure how the city will structure the contract, so I left overhead and profit in each of the rates. If you want me to pull those values out, please let me know and I certainly can. Also, our apprenticeship rate is a blended rate for year 4 and 5 apprentices, because we don’t currently have year 1-3 apprentices, but if we bring a lower year apprentice on, we can adjust this table. I also assumed a 20% material and equipment markup to account for overhead and profit. Pickup rates include all fuel charges for work in 59718 and 59715. Please let me know if you have any questions. Labor Classification Fully Burdened - Hourly Rates Principal $ 116 Foreman $ 93 Journeyman $ 78 Apprentice $ 71 Material and Equipment Markup 20% Pickup Truck Hourly Rate $22.50/hour (four hour minimum) Thanks, Spencer Draper Co-Owner | Director of Business Development Standard Electric LLC | LIC #51584 PO Box 3134 Bozeman, Montana 59772 (406) 220-8697 247 sdraper@standardelectricmt.com | www.standardelectricmt.com Setting the Standard From: Max Ziegler <wziegler@BOZEMAN.NET> Sent: Thursday, December 7, 2023 10:14 AM To: Spencer Draper <SDraper@standardelectricmt.com> Subject: City of Bozeman Term Contract Good morning Spencer, Thank you for responding to our RFQ for facilities contractors. We have reviewed the submissions and would like to invite you to sign a term contract with the City for as-needed electrical work and other projects. If you could please submit a rate sheet or pricing matrix that you will use to price out jobs under this contract, I can get the documents pulled together. Rate sheets can be updated at any time to account for changing market conditions. Once the contract is in place, the City will be able to directly award projects to the contractor via task order without going through a formal bid/rfp process. Thanks, Max MAX ZIEGLER | FACILITIES PROJECT COORDINATORCity of Bozeman | 20 E. Olive Street, Office 014B | Bozeman, MT 59715P: 406.582.2439 | C: 406-595-8470 | E: wziegler@bozeman.net 248 EXHIBIT B 249 City of Bozeman Term Contract: Task Order Number # PROJECT: Issued under the authority of City of Bozeman Term Contract Professional Services Agreement With: For: This Task Order is dated between: and The following representatives have been designated for the work performed under this Task Order City: Contractor: SCOPE OF WORK: COMPENSATION IN WITNESS WHEREOF, the parties authorized to commit resources of the parties have executed this Task Order: City of Bozeman 250 Professional Services Master Task Order Agreement for Engineering Services Page 1 of 15 PROFESSIONAL SERVICES MASTER TASK ORDER AGREEMENT THIS AGREEMENT is made and entered into this _____ of January, 2024, 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, TD&H Engineering, 234 E. Babcock, Suite 3, Bozeman, MT 59715, hereinafter referred to as “Contractor.” In consideration of the mutual covenants and agreements herein contained, the receipt and sufficiency whereof being hereby acknowledged, the parties hereto agree as follows: 1. Purpose: City agrees to enter into this agreement with Contractor to Engineering, Consulting, Inspection, and Materials Testing Services as requested by the City through issuance of individual, consecutively numbered Task Orders on an as needed and requested basis. 2. Term/Effective Date: This Agreement is effective upon the date of its execution and will expire on January 1, 2029, unless extended or terminated as specifically provided for within the agreement. 3. Scope of Work: Contractor will perform the work and provide the services in accordance with the requirements of the Scope of Services. The Contractor will perform the specific services and schedule as mutually agreed upon by City and Contractor and included in each individual Task Order executed under the authority of this Agreement. Task Orders shall be in a format similar to EXHIBIT B, attached and made part of this Agreement. For conflicts between this Agreement and the Scope of Services the Agreement governs. 4. Payment: The terms of compensation to Contractor shall be agreed upon and included in each Task Order. The task order amount shall be based on the rates specified in EXHIBIT A. City agrees to pay Contractor the amount specified in the individual Task Orders. Any alteration or deviation from the described services that involves additional costs above the Agreement amount will be performed by Contractor after written request by the City, and will become an additional charge over and above the amount listed in EXHIBIT A. The City must agree in writing upon any additional charges. 251 Professional Services Master Task Order Agreement for Engineering Services Page 2 of 15 5. Contractor’s Representations: To induce City to enter into this Agreement, Contractor makes the following representations: a. Contractor has familiarized itself with the nature and extent of this agreement, the Scope of Services and with all local conditions and federal, state and local laws, ordinances, rules, and regulations that in any manner may affect cost, progress or performance of the Scope of Services. b. For each individual Task Order, Contractor will familiarize itself with the nature and extent of the assignment, and with all local conditions and federal, state and local laws, ordinances, rules, and regulations that in any manner may affect cost, progress or performance of the Scope of Services and will provide a mutually agreeable Scope of Services for each Task Order. c. Contractor represents to City that it has the experience and ability to perform the services required by this Agreement; that it will perform said services in a professional, competent and timely manner and with diligence and skill ordinarily used by member in the same profession practicing at the same time and in the same locality; that it has the power to enter into and perform this Agreement and grant the rights granted in it; and that its performance of this Agreement shall not infringe upon or violate the rights of any third party, whether rights of copyright, trademark, privacy, publicity, libel, slander or any other rights of any nature whatsoever, or violate any federal, state and municipal laws. The City will not determine or exercise control as to general procedures or formats necessary to have these services meet this standard of care. 6. Independent Contractor Status/Labor Relations: a. The parties agree that Contractor is an independent contractor for purposes of this Agreement and is not to be considered an employee of the City for any purpose. Contractor is not subject to the terms and provisions of the City’s personnel policies handbook and may not be considered a City employee for workers’ compensation or any other purpose. Contractor is not authorized to represent the City or otherwise bind the City in any dealings between Contractor and any third parties. b. Contractor shall comply with the applicable requirements of the Workers’ Compensation Act, Title 39, Chapter 71, MCA, and the Occupational Disease Act of Montana, Title 39, Chapter 71, MCA. Contractor shall maintain workers’ compensation coverage for all members and employees of Contractor’s business, except for those members who are exempted by law. 252 Professional Services Master Task Order Agreement for Engineering Services Page 3 of 15 c. Contractor shall furnish the City with copies showing one of the following: (1) a binder for workers’ compensation coverage by an insurer licensed and authorized to provide workers’ compensation insurance in the State of Montana; or (2) proof of exemption from workers’ compensation granted by law for independent contractors. d. In the event that, during the term of this Agreement, any labor problems or disputes of any type arise or materialize which in turn cause any services to cease for any period of time, Contractor specifically agrees to take immediate steps, at its own expense and without expectation of reimbursement from City, to alleviate or resolve all such labor problems or disputes. The specific steps Contractor shall take shall be left to the discretion of Contractor; provided, however, that Contractor shall bear all costs of any related legal action. Contractor shall provide immediate relief to the City so as to permit the services to continue at no additional cost to City. e. Contractor shall indemnify and hold the City harmless from any and all claims, demands, costs, expenses, damages, and liabilities arising out of, resulting from, or occurring in connection with any labor problems or disputes or any delays or stoppages of work associated with such problems or disputes and for any claims regarding underpaid prevailing wages. 7. Indemnity/Waiver of Claims/Insurance: a. For other than professional services rendered, to the fullest extent permitted by law, Contractor agrees to release, defend, indemnify, and hold harmless the City, its agents, representatives, employees, and officers (collectively referred to for purposes of this Section as the City) from and against any and all claims, demands, actions, fees and costs (including attorney’s fees and the costs and fees of and expert witness and consultants), losses, expenses, liabilities (including liability where activity is inherently or intrinsically dangerous) or damages of whatever kind or nature connected therewith and without limit and without regard to the cause or causes thereof or the negligence of any party or parties that may be asserted against, recovered from or suffered by the City occasioned by, growing or arising out of or resulting from or in any way related to: (i) the negligent, reckless, or intentional misconduct of the Contractor; (ii) any negligent, reckless, or intentional misconduct of any of the Contractor’s agents; b. For the services rendered, to the fullest extent permitted by law, Contractor agrees to indemnify and hold the City harmless against claims, demands, suits, damages, losses, and expenses, including reasonable defense attorney fees, to the extent caused by the 253 Professional Services Master Task Order Agreement for Engineering Services Page 4 of 15 negligence or intentional misconduct of the Contractor or Contractor’s agents or employees. c. Such obligations shall not be construed to negate, abridge, or reduce other rights or obligations of indemnity that would otherwise exist. The indemnification obligations of this Section must not be construed to negate, abridge, or reduce any common-law or statutory rights of the indemnitee(s) which would otherwise exist as to such indemnitee(s). d. Contractor’s indemnity under this Section shall be without regard to and without any right to contribution from any insurance maintained by City. e. Should the City be required to bring an action against the Contractor to assert its right to defense or indemnification under this Agreement or under the Contractor’s applicable insurance policies required below, the City shall be entitled to recover reasonable costs and attorney fees incurred in asserting its right to indemnification or defense but only if a court of competent jurisdiction determines the Contractor was obligated to defend the claim(s) or was obligated to indemnify the City for a claim(s) or any portion(s) thereof. f. In the event of an action filed against City resulting from the City’s performance under this Agreement, the City may elect to represent itself and incur all costs and expenses of suit. g. Contractor also waives any and all claims and recourse against the City or its officers, agents or employees, including the right of contribution for loss or damage to person or property arising from, growing out of, or in any way connected with or incident to the performance of this Agreement except “responsibility for his own fraud, for willful injury to the person or property of another, or for violation of law, whether willful or negligent” as per 28-2-702, MCA. h. These obligations shall survive termination of this Agreement and the services performed hereunder. i. In addition to and independent from the above, Contractor shall at Contractor’s expense secure insurance coverage through an insurance company or companies duly licensed and authorized to conduct insurance business in Montana which insures the liabilities and obligations specifically assumed by the Contractor in this Section. The 254 Professional Services Master Task Order Agreement for Engineering Services Page 5 of 15 insurance coverage shall not contain any exclusion for liabilities specifically assumed by the Contractor in subsection (a) of this Section. j. The insurance shall cover and apply to all claims, demands, suits, damages, losses, and expenses that may be asserted or claimed against, recovered from, or suffered by the City without limit and without regard to the cause therefore and which is acceptable to the City and Contractor shall furnish to the City an accompanying certificate of insurance and accompanying endorsements in amounts not less than as follows:  Workers’ Compensation – statutory;  Employers’ Liability - $1,000,000 per occurrence and annual aggregate;  Commercial General Liability - $1,000,000 per occurrence; $2,000,000 annual aggregate;  Automobile Liability - $1,000,000 property damage/bodily injury; $1,000,000 annual aggregate; and  Professional Liability - $1,000,000 per claim; $2,000,000 annual aggregate k. The above amounts shall be exclusive of defense costs. The City of Bozeman, its officers, agents, and employees, shall be endorsed as an additional or named insured on a primary non-contributory basis on both the Commercial General and Automobile Liability policies. The insurance and required endorsements must be in a form suitable to City and shall include no less than a thirty (30) day notice of cancellation or non- renewal. The City must approve all insurance coverage and endorsements prior to the Contractor commencing work. Contractor shall notify City within two (2) business days of Contractor’s receipt of notice that any required insurance coverage will be terminated or Contractor’s decision to terminate any required insurance coverage for any reason. The City must approve all insurance coverage and endorsements prior to the Contractor commencing work. l. Pursuant to the City’s authority provided for in 18-2-201(4), the Contractor shall not be required to provide bonds as required by 18-2-201(1) for individual task orders under this Agreement. Bonds may be waived as allowed under 18-2-201(4) for individual task orders. 8. Inspection and Testing: a. City has the right to inspect and test any and all work performed by Contractor under a task order’s scope of services, referred to as the “Project”, executed under the 255 Professional Services Master Task Order Agreement for Engineering Services Page 6 of 15 authority of this Agreement. Contractor shall allow City and its agents access to the Project at all times and shall provide every reasonable facility for the purpose of such inspection and testing, including temporarily discontinuing portions of the work or uncovering or taking down portions of the finished work. Any inspection and testing performed by the City and its agents is for the sole benefit of the City and shall not relieve the Contractor of its duty, responsibility, and obligation to ensure that the work strictly complies with the Agreement terms and conditions and all applicable laws and building and safety codes. City’s inspection and testing shall not be deemed or considered acceptance by the City of any portion of the Project. City’s inspection and testing shall not serve to nullify, amend, or waive any warranties provided by the Contractor under this Agreement. b. Contractor shall, without charge, replace any material or correct any work found by the City or its agents to be defective or otherwise not in compliance with the terms and conditions of this Agreement. In the event Contractor fails to replace or correct any defective work or materials after reasonable written notice by the City to do so, the City may take such corrective action, either with its own materials and employees or by retaining any third party to do so, and deduct the cost and expense of such corrective action from the Contractor’s compensation. 9. Partial Utilization of the Project: City shall have the right to use or occupy any portion of the Project that City and Contractor mutually agree is substantially completed and constitutes a separately functioning and usable part of the Project for its intended purpose without significant interference with Contractor’s performance of the remaining portions of the Project. In the event City takes possession of any portion of the Project, such possession shall not be deemed an acceptance of the Project, in whole or in part. City’s use of any portion of the Project shall not be grounds for extensions of any construction deadlines or a change in the Contractor’s compensation. Contractor’s warranties shall run from the completion of the total Project and not from the date the City may take possession of selected portions of the Project. 10. Related Work at the Site: Nothing in this Agreement shall prevent or preclude City, through its own employees or by contract with any third party, from performing other work related to the Project at the construction site; provided such related work is not otherwise addressed in this Agreement and provided such related work does not otherwise interfere with Contractor’s performance of this Agreement or the completion of the Project. Contractor shall afford any City employee, agent or representative, or any third party under contract with the City to perform the related work, proper and safe access to the construction site, a reasonable opportunity for the introduction and storage of materials and equipment, the opportunity to 256 Professional Services Master Task Order Agreement for Engineering Services Page 7 of 15 perform the related work, and shall properly coordinate the Contractor’s work on the Project with the related work. 11. Contractor’s Warranties: Contractor represents and warrants as follows: a. Unless otherwise specified by the terms of the Task Order, all materials and equipment used by Contractor on the Project shall be new and where not otherwise specified, of the most suitable grade for their intended uses. b. All workmanship and materials shall be of a kind and nature acceptable to the City. c. All equipment, materials, and labor provided to, on, or for the Project must be free of defects and nonconformities in design, materials, and workmanship for a minimum period beginning with the commencement of the work on the Project and ending one (1) year from the final completion and acceptance by the City of the Project, regardless of whether such equipment, materials, or labor were supplied directly by Contractor or indirectly by Contractor’s subcontractors or suppliers. Other express warranties on materials that provide for a warranty period longer than one year apply for the period of that express warranty and are not reduced by this provision. Upon receipt of City’s written notice of a defective or nonconforming condition during the warranty period, Contractor shall take all actions, including redesign and replacement, to correct the defective or nonconforming condition within a time frame acceptable to the City and at no additional cost to the City. Contractor shall also, at its sole cost, perform any tests required by City to verify that such defective or nonconforming condition has been corrected. Contractor warrants the corrective action taken against defective and nonconforming conditions for a period of an additional one (1) year from the date of City’s acceptance of the corrective action. d. Contractor and its sureties are liable for the satisfaction and full performance of all warranties. e. Contractor shall give its personal attention to the faithful prosecution of the completion of the Project and Contractor, or its duly authorized representative assigned to serve as the Construction Project Manager, shall be personally present at the site of the Construction Project during working hours for the term of this Agreement until the completion of the Project. f. Contractor shall have a complete, accurate, and up-to-date set of construction plans, drawings, and specifications on site at all times. 257 Professional Services Master Task Order Agreement for Engineering Services Page 8 of 15 g. Contractor has examined all available records and made field examinations of the site of the Project. Contractor has knowledge of the field conditions to be encountered during the Project. Contractor has knowledge of the types and character of equipment necessary for the work, the types of materials needed and the sources of such materials, and the condition of the local labor market. h. Contractor is responsible for the safety of the work and shall maintain all lights, guards, signs, temporary passages, or other protections necessary for that purpose at all times. i. All work must be performed at Contractor’s risk, and Contractor shall promptly repair or replace all damage and loss at its sole cost and expense regardless of the reason or cause of the damage or loss; provided, however, should the damage or loss be caused by an intentional or negligent act of the City, the risk of such loss shall be placed on the City. j. Contractor is responsible for any loss or damage to materials, tools, or other articles used or held for use in the completion of performance of the Project. k. Contractor’s performance must be without damage or disruption to any other work or property of the City or of others and without interference with the operation of existing machinery or equipment. l. Title to all work, materials, and equipment covered by any payment of Contractor’s compensation by City, whether directly incorporated into the Project or not, passes to City at the time of payment, free and clear of all liens and encumbrances. 12. Termination for Contractor’s Fault: a. If Contractor refuses or fails to timely do the work, or any part thereof, or fails to perform any of its obligations under this Agreement, or otherwise breaches any terms or conditions of this Agreement, the City may, by written notice, terminate this Agreement or any individual Task Order under this Agreement and the Contractor’s right to proceed with all or any part of the work (“Termination Notice Due to Contractor’s Fault”). The City may then take over the work and complete it, either with its own resources or by re-letting the contract to any other third party. 258 Professional Services Master Task Order Agreement for Engineering Services Page 9 of 15 b. In the event of a termination pursuant to this Section 8, Contractor shall be entitled to payment only for those services Contractor actually rendered. c. Any termination provided for by this Section 8 shall be in addition to any other remedies to which the City may be entitled under the law or at equity. d. In the event of termination under this Section 8, Contractor shall, under no circumstances, be entitled to claim or recover consequential, special, punitive, lost business opportunity, lost productivity, field office overhead, general conditions costs, or lost profits damages of any nature arising, or claimed to have arisen, as a result of the termination. 13. Termination for City’s Convenience: a. Should conditions arise which, in the sole opinion and discretion of the City, make it advisable to the City to cease performance under this Agreement; the City may terminate this Agreement or any Task Order under this Agreement by written notice to Contractor (“Notice of Termination for City’s Convenience”). The termination shall be effective in the manner specified in the Notice of Termination for City’s Convenience and shall be without prejudice to any claims that the City may otherwise have against Contractor. b. Upon receipt of the Notice of Termination for City’s Convenience, unless otherwise directed in the Notice, the Contractor shall immediately cease performance under this Agreement or any Task Order under this Agreement and make every reasonable effort to refrain from continuing work, incurring additional expenses or costs under this Agreement or any Task Order under this Agreement and shall immediately cancel all existing orders or contracts upon terms satisfactory to the City. Contractor shall do only such work as may be necessary to preserve, protect, and maintain work already completed or immediately in progress. c. In the event of a termination pursuant to this Section 9, Contractor is entitled to payment only for those services Contractor actually rendered on or before the receipt of the Notice of Termination for City’s Convenience. d. The compensation described in Section 9(c) is the sole compensation due to Contractor for its performance of this Agreement. Contractor shall, under no circumstances, be entitled to claim or recover consequential, special, punitive, lost business opportunity, 259 Professional Services Master Task Order Agreement for Engineering Services Page 10 of 15 lost productivity, field office overhead, general conditions costs, or lost profits damages of any nature arising, or claimed to have arisen, as a result of the termination. 14. Limitation on Contractor’s Damages; Time for Asserting Claim: a. In the event of a claim for damages by Contractor under this Agreement, Contractor’s damages shall be limited to contract damages and Contractor hereby expressly waives any right to claim or recover consequential, special, punitive, lost business opportunity, lost productivity, field office overhead, general conditions costs, or lost profits damages of any nature or kind. b. In the event Contractor wants to assert a claim for damages of any kind or nature, Contractor shall provide City with written notice of its claim, the facts and circumstances surrounding and giving rise to the claim, and the total amount of damages sought by the claim, within thirty (30) days of the facts and circumstances giving rise to the claim. In the event Contractor fails to provide such notice, Contractor shall waive all rights to assert such claim. 15. Representatives: a. City’s Representative: The City’s Representative for the purpose of this Agreement shall be Max Ziegler, Facilities Project Coordinator, or such other individual as City shall designate in writing. Whenever approval or authorization from or communication or submission to City is required by this Agreement, such communication or submission shall be directed to the City’s Representative and approvals or authorizations shall be issued only by such Representative; provided, however, that in exigent circumstances when City’s Representative is not available, Contractor may direct its communication or submission to other designated City personnel or agents and may receive approvals or authorization from such persons. b. Contractor’s Representative: The Contractor’s Representative for the purpose of this Agreement shall be Scott Mahurin, PE, or such other individual as Contractor shall designate in writing. Whenever direction to or communication with Contractor is required by this Agreement, such direction or communication shall be directed to Contractor’s Representative; provided, however, that in exigent circumstances when Contractor’s Representative is not available, City may direct its direction or communication to other designated Contractor personnel or agents. 260 Professional Services Master Task Order Agreement for Engineering Services Page 11 of 15 c. Notices: All notices required by this Agreement shall be in writing and shall be provided to the Representatives named in this Section. Notices shall be deemed given when delivered, if delivered by courier to Party’s address shown above during normal business hours of the recipient; or when sent, if sent by email or fax (with a successful transmission report) to the email address or fax number provided by the Party’s Representative; or on the fifth business day following mailing, if mailed by ordinary mail to the address shown above, postage prepaid. 16. Permits: Contractor shall provide all notices, comply with all applicable laws, ordinances, rules, and regulations, obtain all necessary permits, licenses, including a City of Bozeman business license, and inspections from applicable governmental authorities, and pay all fees and charges in connection therewith. 17. Laws and Regulations: Contractor shall comply fully with all applicable state and federal laws, regulations, and municipal ordinances including, but not limited to, all workers’ compensation laws, all environmental laws including, but not limited to, the generation and disposal of hazardous waste, the Occupational Safety and Health Act (OSHA), the safety rules, codes, and provisions of the Montana Safety Act in Title 50, Chapter 71, MCA, all applicable City, County, and State building and electrical codes, the Americans with Disabilities Act, and all non-discrimination, affirmative action, and utilization of minority and small business statutes and regulations. 18. Nondiscrimination and Equal Pay: a. The Contractor agrees that all hiring by Contractor of persons performing this Agreement shall be on the basis of merit and qualifications. The Contractor will have a policy to provide equal employment opportunity in accordance with all applicable state and federal anti-discrimination laws, regulations, and contracts. The Contractor will not refuse employment to a person, bar a person from employment, or discriminate against a person in compensation or in a term, condition, or privilege of employment because of race, color, religion, creed, political ideas, sex, age, marital status, national origin, actual or perceived sexual orientation, gender identity, physical or mental disability, except when the reasonable demands of the position require an age, physical or mental disability, marital status or sex distinction. The Contractor shall be subject to and comply with Title VI of the Civil Rights Act of 1964; Section 140, Title 2, United States Code, and all regulations promulgated thereunder. b. 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 261 Professional Services Master Task Order Agreement for Engineering Services Page 12 of 15 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. c. Contractor shall require these nondiscrimination terms of its subcontractors providing services under this Agreement. 19. Intoxicants; DOT Drug and Alcohol Regulations/Safety and Training: a. Contractor shall not permit or suffer the introduction or use of any intoxicants, including alcohol or illegal drugs, by any employee or agent engaged in services to the City under this Agreement while on City property or in the performance of any activities under this Agreement. Contractor acknowledges it is aware of and shall comply with its responsibilities and obligations under the U.S. Department of Transportation (DOT) regulations governing anti-drug and alcohol misuse prevention plans and related testing. City shall have the right to request proof of such compliance and Contractor shall be obligated to furnish such proof. b. The Contractor shall be responsible for instructing and training the Contractor's employees and agents in proper and specified work methods and procedures. The Contractor shall provide continuous inspection and supervision of the work performed. The Contractor is responsible for instructing his employees and agents in safe work practices. 20. Modification and Assignability: This Agreement may not be enlarged, modified or altered except by written agreement signed by both parties hereto. The Contractor may not subcontract or assign Contractor’s rights, including the right to compensation or duties arising hereunder, without the prior written consent of City. Any subcontractor or assignee will be bound by all of the terms and conditions of this Agreement. 21. Reports/Accountability/Public Information: Contractor agrees to develop and/or provide documentation as requested by the City demonstrating Contractor’s compliance with the requirements of this Agreement. Contractor shall allow the City, its auditors, and other persons authorized by the City to inspect and copy its books and records for the purpose of verifying that the reimbursement of monies distributed to Contractor pursuant to this Agreement was used in compliance with this Agreement and all applicable provisions of federal, state, and local law. The Contractor shall not issue any statements, releases or information for public dissemination without prior approval of the City. 22. Non-Waiver: A waiver by either party 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 262 Professional Services Master Task Order Agreement for Engineering Services Page 13 of 15 conditions or to pursue any available legal or equitable rights in the event of any subsequent default or breach. 23. Attorney’s Fees and Costs: That 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 or the Party giving notice shall be entitled to reasonable attorney's fees and costs, including fees, salary, and costs of in-house counsel to include City Attorney. 24. Taxes: Contractor is obligated to pay all taxes of any kind or nature and make all appropriate employee withholdings. 25. Dispute Resolution: a. Any claim, controversy, or dispute between the parties, their agents, employees, or representatives shall be resolved first by negotiation between senior-level personnel from each party duly authorized to execute settlement agreements. Upon mutual agreement of the parties, the parties may invite an independent, disinterested mediator to assist in the negotiated settlement discussions. b. If the parties are unable to resolve the dispute within thirty (30) days from the date the dispute was first raised, then such dispute may only be resolved in a court of competent jurisdiction in compliance with the Applicable Law provisions of this Agreement. 26. Survival: Contractor’s indemnification shall survive the termination or expiration of this Agreement for the maximum period allowed under applicable law. 27. Headings: The headings used in this Agreement are for convenience only and are not be construed as a part of the Agreement or as a limitation on the scope of the particular paragraphs to which they refer. 28. Severability: If any portion of this Agreement is held to be void or unenforceable, the balance thereof shall continue in effect. 29. Applicable Law: The parties agree that this Agreement is governed in all respects by the laws of the State of Montana. 30. Binding Effect: This Agreement is binding upon and inures to the benefit of the heirs, legal representatives, successors, and assigns of the parties. 263 Professional Services Master Task Order Agreement for Engineering Services Page 14 of 15 31. 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. 32. Counterparts: This Agreement may be executed in counterparts, which together constitute one instrument. 33. Integration: This Agreement and all Exhibits attached hereto constitute the entire agreement of the parties. Covenants or representations not contained therein or made a part thereof by reference, are not binding upon the parties. There are no understandings between the parties other than as set forth in this Agreement. All communications, either verbal or written, made prior to the date of this Agreement are hereby abrogated and withdrawn unless specifically made a part of this Agreement by reference. 34. Consent to Electronic Signatures: The Parties have consented to execute this Agreement electronically in conformance with the Montana Uniform Electronic Transactions Act, Title 30, Chapter 18, Part 1, MCA. **** END OF AGREEMENT EXCEPT FOR SIGNATURES **** IN WITNESS WHEREOF, the parties hereto have executed this instrument the day and year first above written. CITY OF BOZEMAN, MONTANA ____________________________________ CONTRACTOR (Type Name Above) By________________________________ By__________________________________ Jeff Mihelich, City Manager Print Name: Print Title: ____________________________ APPROVED AS TO FORM: By_______________________________ 264 Professional Services Master Task Order Agreement for Engineering Services Page 15 of 15 Greg Sullivan, Bozeman City Attorney 265 EXHIBIT A 266 234 E. Babcock,Suite 3 • Bozeman, MT 59715 • (406) 586-0277 2023 BOZEMAN RATE SCHEDULE Fee Compensation TD&H’s hourly billing rates for 2023 are provided in the adjacent table. We invoice for services rendered to a project to the nearest quarter hour. Direct project costs will be invoiced at cost plus 10%. Examples of these costs include airfare, ground transportation, lodging, meals, shipping and express mail, outside reproduction services, and other direct costs required for the project. Outside contract services including subconsultants, subcontractors and drilling services will be invoiced at cost plus 10% to cover additional insurance and administrative fees. DIRECT REIMBURSABLES Vehicle Use: Passenger Vehicle Mileage $0.75/mile Survey – Robotic Total Station Heavy Duty Vehicle Mileage $1.10/mile Hourly Rate: $30.00 Survey – Global Positioning Survey – Total Station with Data Collector Daily Rate: $500.00 Daily Rate: $100.00 Hourly Rate: $80.00 Hourly Rate: $20.00 Minimum Charge: $160.00 Reproduction Color (8.5x11) $1.50/page CAD Plotter (In-house) Color (11x17) $2.50/page Bond $0.90/SF B&W (8.5x11) $0.60/page Mylar $3.30/SF B&W (11x17) $1.20/page NOTES: 1) Construction Materials Testing per Separate Fee Schedule. *See Materials Testing Fee Schedule for Additional Information 2) Overtime work (above 40 hours per week, or weekends) increase hourly rates by 25%, or per quotation. 3) Annual rate adjustments occur in January of each year and typically range from 3% to 4%. DESCRIPTION HOURLY RATE AA Administrative Assistant $71.00 AM Administrative Manager $107.00 GA Grant Administrator $96.00 LS1 Surveyor’s Assistant $80.00 LS2 Surveyor $95.00 LS3 Survey Party Chief $111.00 LS4 Project Surveyor $128.00 LS5 Registered Land Surveyor $153.00 ENVS Environmental Scientist $119.00 IH1 Industrial Hygiene Technician I $84.00 IH2 Industrial Hygiene Technician II $109.00 LT1 Lab Technician I $74.00 LT2 Lab Technician II $82.00 CR1 Construction Representative I $101.00 CR2 Construction Representative II $121.00 CR3 Construction Representative III $143.00 CR4 Construction Representative IV $174.00 LA Landscape Architect $129.00 LP Land Planner $160.00 CLS CMT Lab Supervisor $120.00 CD1 CAD Designer I $84.00 CD2 CAD Designer II $110.00 CD3 CAD Manager $121.00 GC CAD/GIS Specialist $101.00 ET Engineering Technician $116.00 E1 Engineer I $109.00 E2 Engineer II $118.00 E3 Engineer III $137.00 E4 Engineer IV $160.00 E5 Engineer V $182.00 E6 Engineer VI $210.00 P Principal $234.00 DCT Deposition & Court Testimony $386.00 PMI Project Manager I $170.00 PMII Project Manager II $220.00 267 EXHIBIT B 268 City of Bozeman Term Contract: Task Order Number # PROJECT: Issued under the authority of City of Bozeman Term Contract Professional Services Agreement With: For: This Task Order is dated between: and The following representatives have been designated for the work performed under this Task Order City: Contractor: SCOPE OF WORK: COMPENSATION IN WITNESS WHEREOF, the parties authorized to commit resources of the parties have executed this Task Order: City of Bozeman 269 Professional Services Master Task Order Agreement for Pavement Maintenance Services Page 1 of 15 PROFESSIONAL SERVICES MASTER TASK ORDER AGREEMENT THIS AGREEMENT is made and entered into this _____ of January, 2024, 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, Yellowstone Pavement Solutions, 5150 Thorpe Rd, Belgrade, MT 59714, hereinafter referred to as “Contractor.” In consideration of the mutual covenants and agreements herein contained, the receipt and sufficiency whereof being hereby acknowledged, the parties hereto agree as follows: 1. Purpose: City agrees to enter into this agreement with Contractor to provide Asphalt and Pavement Maintenance, Repair, and Striping, as requested by the City through issuance of individual, consecutively numbered Task Orders on an as needed and requested basis. 2. Term/Effective Date: This Agreement is effective upon the date of its execution and will expire on January 1, 2029, unless extended or terminated as specifically provided for within the agreement. 3. Scope of Work: Contractor will perform the work and provide the services in accordance with the requirements of the Scope of Services. The Contractor will perform the specific services and schedule as mutually agreed upon by City and Contractor and included in each individual Task Order executed under the authority of this Agreement. Task Orders shall be in a format similar to EXHIBIT B, attached and made part of this Agreement. For conflicts between this Agreement and the Scope of Services the Agreement governs. 4. Payment: The terms of compensation to Contractor shall be agreed upon and included in each Task Order. The task order amount shall be based on the rates specified in EXHIBIT A. City agrees to pay Contractor the amount specified in the individual Task Orders. Any alteration or deviation from the described services that involves additional costs above the Agreement amount will be performed by Contractor after written request by the City, and will become an additional charge over and above the amount listed in EXHIBIT A. The City must agree in writing upon any additional charges. 270 Professional Services Master Task Order Agreement for Pavement Maintenance Services Page 2 of 15 5. Contractor’s Representations: To induce City to enter into this Agreement, Contractor makes the following representations: a. Contractor has familiarized itself with the nature and extent of this agreement, the Scope of Services and with all local conditions and federal, state and local laws, ordinances, rules, and regulations that in any manner may affect cost, progress or performance of the Scope of Services. b. For each individual Task Order, Contractor will familiarize itself with the nature and extent of the assignment, and with all local conditions and federal, state and local laws, ordinances, rules, and regulations that in any manner may affect cost, progress or performance of the Scope of Services and will provide a mutually agreeable Scope of Services for each Task Order. c. Contractor represents to City that it has the experience and ability to perform the services required by this Agreement; that it will perform said services in a professional, competent and timely manner and with diligence and skill ordinarily used by member in the same profession practicing at the same time and in the same locality; that it has the power to enter into and perform this Agreement and grant the rights granted in it; and that its performance of this Agreement shall not infringe upon or violate the rights of any third party, whether rights of copyright, trademark, privacy, publicity, libel, slander or any other rights of any nature whatsoever, or violate any federal, state and municipal laws. The City will not determine or exercise control as to general procedures or formats necessary to have these services meet this standard of care. 6. Independent Contractor Status/Labor Relations: a. The parties agree that Contractor is an independent contractor for purposes of this Agreement and is not to be considered an employee of the City for any purpose. Contractor is not subject to the terms and provisions of the City’s personnel policies handbook and may not be considered a City employee for workers’ compensation or any other purpose. Contractor is not authorized to represent the City or otherwise bind the City in any dealings between Contractor and any third parties. b. Contractor shall comply with the applicable requirements of the Workers’ Compensation Act, Title 39, Chapter 71, MCA, and the Occupational Disease Act of Montana, Title 39, Chapter 71, MCA. Contractor shall maintain workers’ compensation coverage for all members and employees of Contractor’s business, except for those members who are exempted by law. 271 Professional Services Master Task Order Agreement for Pavement Maintenance Services Page 3 of 15 c. Contractor shall furnish the City with copies showing one of the following: (1) a binder for workers’ compensation coverage by an insurer licensed and authorized to provide workers’ compensation insurance in the State of Montana; or (2) proof of exemption from workers’ compensation granted by law for independent contractors. d. Contractor shall post a legible statement of all wages and fringe benefits to be paid to the Contractor’s employees and the frequency of such payments (i.e., hourly wage employees shall be paid weekly). Such posting shall be made in a prominent and accessible location at the Contractor’s normal place of business and shall be made no later than the first day of services provided under this Agreement. Such posting shall be removed only upon expiration or termination of this Agreement. e. In performing the services under this Agreement, Contractor shall give preference to the employment of bona fide residents of Montana, as required by §18-2-403, MCA, as such term is defined by §18-2-401(1), MCA. When making assignments of work, Contractor shall use workers both skilled in their trade and specialized in their field of work for all work to which they are assigned. f. Pursuant to §§18-2-403 and 18-2-422, MCA, Contractor shall pay wages, fringe benefits, and expenses, including travel allowances as set forth in the current Montana Prevailing Wage Rate for Non Construction Services in effect and applicable to Gallatin County, Montana, which schedule is incorporated herein. Contractor shall pay all hourly wage employees on a weekly basis. Violation of the requirements set forth in the above State of Montana schedule of prevailing wage rates may subject the Contractor to the penalties set forth in §18-2-407, MCA. Contractor shall maintain payroll records during the term of this Agreement and for a period of three (3) years following termination of this Agreement. g. The Contractor shall ensure that any person, firm or entity performing any portion of the services under this Agreement for which the contractor, subcontractor or employer is responsible, is paid the applicable standard prevailing rate of wages. h. In the event that, during the term of this Agreement, any labor problems or disputes of any type arise or materialize which in turn cause any services to cease for any period of time, Contractor specifically agrees to take immediate steps, at its own expense and without expectation of reimbursement from City, to alleviate or resolve all such labor problems or disputes. The specific steps Contractor shall take shall be left to the discretion of Contractor; provided, however, that Contractor shall bear all costs of any 272 Professional Services Master Task Order Agreement for Pavement Maintenance Services Page 4 of 15 related legal action. Contractor shall provide immediate relief to the City so as to permit the services to continue at no additional cost to City. i. Contractor shall indemnify and hold the City harmless from any and all claims, demands, costs, expenses, damages, and liabilities arising out of, resulting from, or occurring in connection with any labor problems or disputes or any delays or stoppages of work associated with such problems or disputes and for any claims regarding underpaid prevailing wages. 7. Indemnity/Waiver of Claims/Insurance: a. For other than professional services rendered, to the fullest extent permitted by law, Contractor agrees to release, defend, indemnify, and hold harmless the City, its agents, representatives, employees, and officers (collectively referred to for purposes of this Section as the City) from and against any and all claims, demands, actions, fees and costs (including attorney’s fees and the costs and fees of and expert witness and consultants), losses, expenses, liabilities (including liability where activity is inherently or intrinsically dangerous) or damages of whatever kind or nature connected therewith and without limit and without regard to the cause or causes thereof or the negligence of any party or parties that may be asserted against, recovered from or suffered by the City occasioned by, growing or arising out of or resulting from or in any way related to: (i) the negligent, reckless, or intentional misconduct of the Contractor; (ii) any negligent, reckless, or intentional misconduct of any of the Contractor’s agents; b. For the services rendered, to the fullest extent permitted by law, Contractor agrees to indemnify and hold the City harmless against claims, demands, suits, damages, losses, and expenses, including reasonable defense attorney fees, to the extent caused by the negligence or intentional misconduct of the Contractor or Contractor’s agents or employees. c. Such obligations shall not be construed to negate, abridge, or reduce other rights or obligations of indemnity that would otherwise exist. The indemnification obligations of this Section must not be construed to negate, abridge, or reduce any common-law or statutory rights of the indemnitee(s) which would otherwise exist as to such indemnitee(s). d. Contractor’s indemnity under this Section shall be without regard to and without any right to contribution from any insurance maintained by City. 273 Professional Services Master Task Order Agreement for Pavement Maintenance Services Page 5 of 15 e. Should the City be required to bring an action against the Contractor to assert its right to defense or indemnification under this Agreement or under the Contractor’s applicable insurance policies required below, the City shall be entitled to recover reasonable costs and attorney fees incurred in asserting its right to indemnification or defense but only if a court of competent jurisdiction determines the Contractor was obligated to defend the claim(s) or was obligated to indemnify the City for a claim(s) or any portion(s) thereof. f. In the event of an action filed against City resulting from the City’s performance under this Agreement, the City may elect to represent itself and incur all costs and expenses of suit. g. Contractor also waives any and all claims and recourse against the City or its officers, agents or employees, including the right of contribution for loss or damage to person or property arising from, growing out of, or in any way connected with or incident to the performance of this Agreement except “responsibility for his own fraud, for willful injury to the person or property of another, or for violation of law, whether willful or negligent” as per 28-2-702, MCA. h. These obligations shall survive termination of this Agreement and the services performed hereunder. i. In addition to and independent from the above, Contractor shall at Contractor’s expense secure insurance coverage through an insurance company or companies duly licensed and authorized to conduct insurance business in Montana which insures the liabilities and obligations specifically assumed by the Contractor in this Section. The insurance coverage shall not contain any exclusion for liabilities specifically assumed by the Contractor in subsection (a) of this Section. j. The insurance shall cover and apply to all claims, demands, suits, damages, losses, and expenses that may be asserted or claimed against, recovered from, or suffered by the City without limit and without regard to the cause therefore and which is acceptable to the City and Contractor shall furnish to the City an accompanying certificate of insurance and accompanying endorsements in amounts not less than as follows:  Workers’ Compensation – statutory;  Employers’ Liability - $1,000,000 per occurrence and annual aggregate;  Commercial General Liability - $1,000,000 per occurrence; $2,000,000 annual aggregate; 274 Professional Services Master Task Order Agreement for Pavement Maintenance Services Page 6 of 15  Automobile Liability - $1,000,000 property damage/bodily injury; $1,000,000 annual aggregate; and  Professional Liability - $1,000,000 per claim; $2,000,000 annual aggregate k. The above amounts shall be exclusive of defense costs. The City of Bozeman, its officers, agents, and employees, shall be endorsed as an additional or named insured on a primary non-contributory basis on both the Commercial General and Automobile Liability policies. The insurance and required endorsements must be in a form suitable to City and shall include no less than a thirty (30) day notice of cancellation or non- renewal. The City must approve all insurance coverage and endorsements prior to the Contractor commencing work. Contractor shall notify City within two (2) business days of Contractor’s receipt of notice that any required insurance coverage will be terminated or Contractor’s decision to terminate any required insurance coverage for any reason. The City must approve all insurance coverage and endorsements prior to the Contractor commencing work. l. Pursuant to the City’s authority provided for in 18-2-201(4), the Contractor shall not be required to provide bonds as required by 18-2-201(1) for individual task orders under this Agreement. Bonds may be waived as allowed under 18-2-201(4) for individual task orders. 8. Inspection and Testing: a. City has the right to inspect and test any and all work performed by Contractor under a task order’s scope of services, referred to as the “Project”, executed under the authority of this Agreement. Contractor shall allow City and its agents access to the Project at all times and shall provide every reasonable facility for the purpose of such inspection and testing, including temporarily discontinuing portions of the work or uncovering or taking down portions of the finished work. Any inspection and testing performed by the City and its agents is for the sole benefit of the City and shall not relieve the Contractor of its duty, responsibility, and obligation to ensure that the work strictly complies with the Agreement terms and conditions and all applicable laws and building and safety codes. City’s inspection and testing shall not be deemed or considered acceptance by the City of any portion of the Project. City’s inspection and testing shall not serve to nullify, amend, or waive any warranties provided by the Contractor under this Agreement. 275 Professional Services Master Task Order Agreement for Pavement Maintenance Services Page 7 of 15 b. Contractor shall, without charge, replace any material or correct any work found by the City or its agents to be defective or otherwise not in compliance with the terms and conditions of this Agreement. In the event Contractor fails to replace or correct any defective work or materials after reasonable written notice by the City to do so, the City may take such corrective action, either with its own materials and employees or by retaining any third party to do so, and deduct the cost and expense of such corrective action from the Contractor’s compensation. 9. Partial Utilization of the Project: City shall have the right to use or occupy any portion of the Project that City and Contractor mutually agree is substantially completed and constitutes a separately functioning and usable part of the Project for its intended purpose without significant interference with Contractor’s performance of the remaining portions of the Project. In the event City takes possession of any portion of the Project, such possession shall not be deemed an acceptance of the Project, in whole or in part. City’s use of any portion of the Project shall not be grounds for extensions of any construction deadlines or a change in the Contractor’s compensation. Contractor’s warranties shall run from the completion of the total Project and not from the date the City may take possession of selected portions of the Project. 10. Related Work at the Site: Nothing in this Agreement shall prevent or preclude City, through its own employees or by contract with any third party, from performing other work related to the Project at the construction site; provided such related work is not otherwise addressed in this Agreement and provided such related work does not otherwise interfere with Contractor’s performance of this Agreement or the completion of the Project. Contractor shall afford any City employee, agent or representative, or any third party under contract with the City to perform the related work, proper and safe access to the construction site, a reasonable opportunity for the introduction and storage of materials and equipment, the opportunity to perform the related work, and shall properly coordinate the Contractor’s work on the Project with the related work. 11. Contractor’s Warranties: Contractor represents and warrants as follows: a. Unless otherwise specified by the terms of the Task Order, all materials and equipment used by Contractor on the Project shall be new and where not otherwise specified, of the most suitable grade for their intended uses. b. All workmanship and materials shall be of a kind and nature acceptable to the City. 276 Professional Services Master Task Order Agreement for Pavement Maintenance Services Page 8 of 15 c. All equipment, materials, and labor provided to, on, or for the Project must be free of defects and nonconformities in design, materials, and workmanship for a minimum period beginning with the commencement of the work on the Project and ending one (1) year from the final completion and acceptance by the City of the Project, regardless of whether such equipment, materials, or labor were supplied directly by Contractor or indirectly by Contractor’s subcontractors or suppliers. Other express warranties on materials that provide for a warranty period longer than one year apply for the period of that express warranty and are not reduced by this provision. Upon receipt of City’s written notice of a defective or nonconforming condition during the warranty period, Contractor shall take all actions, including redesign and replacement, to correct the defective or nonconforming condition within a time frame acceptable to the City and at no additional cost to the City. Contractor shall also, at its sole cost, perform any tests required by City to verify that such defective or nonconforming condition has been corrected. Contractor warrants the corrective action taken against defective and nonconforming conditions for a period of an additional one (1) year from the date of City’s acceptance of the corrective action. d. Contractor and its sureties are liable for the satisfaction and full performance of all warranties. e. Contractor shall give its personal attention to the faithful prosecution of the completion of the Project and Contractor, or its duly authorized representative assigned to serve as the Construction Project Manager, shall be personally present at the site of the Construction Project during working hours for the term of this Agreement until the completion of the Project. f. Contractor shall have a complete, accurate, and up-to-date set of construction plans, drawings, and specifications on site at all times. g. Contractor has examined all available records and made field examinations of the site of the Project. Contractor has knowledge of the field conditions to be encountered during the Project. Contractor has knowledge of the types and character of equipment necessary for the work, the types of materials needed and the sources of such materials, and the condition of the local labor market. h. Contractor is responsible for the safety of the work and shall maintain all lights, guards, signs, temporary passages, or other protections necessary for that purpose at all times. 277 Professional Services Master Task Order Agreement for Pavement Maintenance Services Page 9 of 15 i. All work must be performed at Contractor’s risk, and Contractor shall promptly repair or replace all damage and loss at its sole cost and expense regardless of the reason or cause of the damage or loss; provided, however, should the damage or loss be caused by an intentional or negligent act of the City, the risk of such loss shall be placed on the City. j. Contractor is responsible for any loss or damage to materials, tools, or other articles used or held for use in the completion of performance of the Project. k. Contractor’s performance must be without damage or disruption to any other work or property of the City or of others and without interference with the operation of existing machinery or equipment. l. Title to all work, materials, and equipment covered by any payment of Contractor’s compensation by City, whether directly incorporated into the Project or not, passes to City at the time of payment, free and clear of all liens and encumbrances. 12. Termination for Contractor’s Fault: a. If Contractor refuses or fails to timely do the work, or any part thereof, or fails to perform any of its obligations under this Agreement, or otherwise breaches any terms or conditions of this Agreement, the City may, by written notice, terminate this Agreement or any individual Task Order under this Agreement and the Contractor’s right to proceed with all or any part of the work (“Termination Notice Due to Contractor’s Fault”). The City may then take over the work and complete it, either with its own resources or by re-letting the contract to any other third party. b. In the event of a termination pursuant to this Section 8, Contractor shall be entitled to payment only for those services Contractor actually rendered. c. Any termination provided for by this Section 8 shall be in addition to any other remedies to which the City may be entitled under the law or at equity. d. In the event of termination under this Section 8, Contractor shall, under no circumstances, be entitled to claim or recover consequential, special, punitive, lost business opportunity, lost productivity, field office overhead, general conditions costs, or lost profits damages of any nature arising, or claimed to have arisen, as a result of the termination. 278 Professional Services Master Task Order Agreement for Pavement Maintenance Services Page 10 of 15 13. Termination for City’s Convenience: a. Should conditions arise which, in the sole opinion and discretion of the City, make it advisable to the City to cease performance under this Agreement; the City may terminate this Agreement or any Task Order under this Agreement by written notice to Contractor (“Notice of Termination for City’s Convenience”). The termination shall be effective in the manner specified in the Notice of Termination for City’s Convenience and shall be without prejudice to any claims that the City may otherwise have against Contractor. b. Upon receipt of the Notice of Termination for City’s Convenience, unless otherwise directed in the Notice, the Contractor shall immediately cease performance under this Agreement or any Task Order under this Agreement and make every reasonable effort to refrain from continuing work, incurring additional expenses or costs under this Agreement or any Task Order under this Agreement and shall immediately cancel all existing orders or contracts upon terms satisfactory to the City. Contractor shall do only such work as may be necessary to preserve, protect, and maintain work already completed or immediately in progress. c. In the event of a termination pursuant to this Section 9, Contractor is entitled to payment only for those services Contractor actually rendered on or before the receipt of the Notice of Termination for City’s Convenience. d. The compensation described in Section 9(c) is the sole compensation due to Contractor for its performance of this Agreement. Contractor shall, under no circumstances, be entitled to claim or recover consequential, special, punitive, lost business opportunity, lost productivity, field office overhead, general conditions costs, or lost profits damages of any nature arising, or claimed to have arisen, as a result of the termination. 14. Limitation on Contractor’s Damages; Time for Asserting Claim: a. In the event of a claim for damages by Contractor under this Agreement, Contractor’s damages shall be limited to contract damages and Contractor hereby expressly waives any right to claim or recover consequential, special, punitive, lost business opportunity, lost productivity, field office overhead, general conditions costs, or lost profits damages of any nature or kind. b. In the event Contractor wants to assert a claim for damages of any kind or nature, Contractor shall provide City with written notice of its claim, the facts and 279 Professional Services Master Task Order Agreement for Pavement Maintenance Services Page 11 of 15 circumstances surrounding and giving rise to the claim, and the total amount of damages sought by the claim, within thirty (30) days of the facts and circumstances giving rise to the claim. In the event Contractor fails to provide such notice, Contractor shall waive all rights to assert such claim. 15. Representatives: a. City’s Representative: The City’s Representative for the purpose of this Agreement shall be Max Ziegler, Facilities Project Coordinator, or such other individual as City shall designate in writing. Whenever approval or authorization from or communication or submission to City is required by this Agreement, such communication or submission shall be directed to the City’s Representative and approvals or authorizations shall be issued only by such Representative; provided, however, that in exigent circumstances when City’s Representative is not available, Contractor may direct its communication or submission to other designated City personnel or agents and may receive approvals or authorization from such persons. b. Contractor’s Representative: The Contractor’s Representative for the purpose of this Agreement shall be Luke Surma, Owner, or such other individual as Contractor shall designate in writing. Whenever direction to or communication with Contractor is required by this Agreement, such direction or communication shall be directed to Contractor’s Representative; provided, however, that in exigent circumstances when Contractor’s Representative is not available, City may direct its direction or communication to other designated Contractor personnel or agents. c. Notices: All notices required by this Agreement shall be in writing and shall be provided to the Representatives named in this Section. Notices shall be deemed given when delivered, if delivered by courier to Party’s address shown above during normal business hours of the recipient; or when sent, if sent by email or fax (with a successful transmission report) to the email address or fax number provided by the Party’s Representative; or on the fifth business day following mailing, if mailed by ordinary mail to the address shown above, postage prepaid. 16. Permits: Contractor shall provide all notices, comply with all applicable laws, ordinances, rules, and regulations, obtain all necessary permits, licenses, including a City of Bozeman business license, and inspections from applicable governmental authorities, and pay all fees and charges in connection therewith. 280 Professional Services Master Task Order Agreement for Pavement Maintenance Services Page 12 of 15 17. Laws and Regulations: Contractor shall comply fully with all applicable state and federal laws, regulations, and municipal ordinances including, but not limited to, all workers’ compensation laws, all environmental laws including, but not limited to, the generation and disposal of hazardous waste, the Occupational Safety and Health Act (OSHA), the safety rules, codes, and provisions of the Montana Safety Act in Title 50, Chapter 71, MCA, all applicable City, County, and State building and electrical codes, the Americans with Disabilities Act, and all non-discrimination, affirmative action, and utilization of minority and small business statutes and regulations. 18. Nondiscrimination and Equal Pay: a. The Contractor agrees that all hiring by Contractor of persons performing this Agreement shall be on the basis of merit and qualifications. The Contractor will have a policy to provide equal employment opportunity in accordance with all applicable state and federal anti-discrimination laws, regulations, and contracts. The Contractor will not refuse employment to a person, bar a person from employment, or discriminate against a person in compensation or in a term, condition, or privilege of employment because of race, color, religion, creed, political ideas, sex, age, marital status, national origin, actual or perceived sexual orientation, gender identity, physical or mental disability, except when the reasonable demands of the position require an age, physical or mental disability, marital status or sex distinction. The Contractor shall be subject to and comply with Title VI of the Civil Rights Act of 1964; Section 140, Title 2, United States Code, and all regulations promulgated thereunder. b. 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. c. Contractor shall require these nondiscrimination terms of its subcontractors providing services under this Agreement. 19. Intoxicants; DOT Drug and Alcohol Regulations/Safety and Training: a. Contractor shall not permit or suffer the introduction or use of any intoxicants, including alcohol or illegal drugs, by any employee or agent engaged in services to the City under this Agreement while on City property or in the performance of any activities under this Agreement. Contractor acknowledges it is aware of and shall comply with its responsibilities and obligations under the U.S. Department of Transportation (DOT) regulations governing anti-drug and alcohol misuse prevention 281 Professional Services Master Task Order Agreement for Pavement Maintenance Services Page 13 of 15 plans and related testing. City shall have the right to request proof of such compliance and Contractor shall be obligated to furnish such proof. b. The Contractor shall be responsible for instructing and training the Contractor's employees and agents in proper and specified work methods and procedures. The Contractor shall provide continuous inspection and supervision of the work performed. The Contractor is responsible for instructing his employees and agents in safe work practices. 20. Modification and Assignability: This Agreement may not be enlarged, modified or altered except by written agreement signed by both parties hereto. The Contractor may not subcontract or assign Contractor’s rights, including the right to compensation or duties arising hereunder, without the prior written consent of City. Any subcontractor or assignee will be bound by all of the terms and conditions of this Agreement. 21. Reports/Accountability/Public Information: Contractor agrees to develop and/or provide documentation as requested by the City demonstrating Contractor’s compliance with the requirements of this Agreement. Contractor shall allow the City, its auditors, and other persons authorized by the City to inspect and copy its books and records for the purpose of verifying that the reimbursement of monies distributed to Contractor pursuant to this Agreement was used in compliance with this Agreement and all applicable provisions of federal, state, and local law. The Contractor shall not issue any statements, releases or information for public dissemination without prior approval of the City. 22. Non-Waiver: A waiver by either party any default or breach by the other party of any terms or conditions of this Agreement does not limit the other party’s right to enforce such term or conditions or to pursue any available legal or equitable rights in the event of any subsequent default or breach. 23. Attorney’s Fees and Costs: That 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 or the Party giving notice shall be entitled to reasonable attorney's fees and costs, including fees, salary, and costs of in-house counsel to include City Attorney. 24. Taxes: Contractor is obligated to pay all taxes of any kind or nature and make all appropriate employee withholdings. 25. Dispute Resolution: 282 Professional Services Master Task Order Agreement for Pavement Maintenance Services Page 14 of 15 a. Any claim, controversy, or dispute between the parties, their agents, employees, or representatives shall be resolved first by negotiation between senior-level personnel from each party duly authorized to execute settlement agreements. Upon mutual agreement of the parties, the parties may invite an independent, disinterested mediator to assist in the negotiated settlement discussions. b. If the parties are unable to resolve the dispute within thirty (30) days from the date the dispute was first raised, then such dispute may only be resolved in a court of competent jurisdiction in compliance with the Applicable Law provisions of this Agreement. 26. Survival: Contractor’s indemnification shall survive the termination or expiration of this Agreement for the maximum period allowed under applicable law. 27. Headings: The headings used in this Agreement are for convenience only and are not be construed as a part of the Agreement or as a limitation on the scope of the particular paragraphs to which they refer. 28. Severability: If any portion of this Agreement is held to be void or unenforceable, the balance thereof shall continue in effect. 29. Applicable Law: The parties agree that this Agreement is governed in all respects by the laws of the State of Montana. 30. Binding Effect: This Agreement is binding upon and inures to the benefit of the heirs, legal representatives, successors, and assigns of the parties. 31. 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. 32. Counterparts: This Agreement may be executed in counterparts, which together constitute one instrument. 33. Integration: This Agreement and all Exhibits attached hereto constitute the entire agreement of the parties. Covenants or representations not contained therein or made a part thereof by reference, are not binding upon the parties. There are no understandings between the parties other than as set forth in this Agreement. All communications, either verbal or written, made 283 Professional Services Master Task Order Agreement for Pavement Maintenance Services Page 15 of 15 prior to the date of this Agreement are hereby abrogated and withdrawn unless specifically made a part of this Agreement by reference. 34. Consent to Electronic Signatures: The Parties have consented to execute this Agreement electronically in conformance with the Montana Uniform Electronic Transactions Act, Title 30, Chapter 18, Part 1, MCA. **** END OF AGREEMENT EXCEPT FOR SIGNATURES **** IN WITNESS WHEREOF, the parties hereto have executed this instrument the day and year first above written. CITY OF BOZEMAN, MONTANA ____________________________________ CONTRACTOR (Type Name Above) By________________________________ By__________________________________ Jeff Mihelich, City Manager Print Name: Print Title: ____________________________ APPROVED AS TO FORM: By_______________________________ Greg Sullivan, Bozeman City Attorney 284 EXHIBIT A 285 2024 Pricing Summary City of Bozeman Tack Coat - Per SF (SS-1H) Sealcoat - Per SF Sealcoat 2nd Coat - Per SF Crack Repair - Per LF Crack Repair - Roung Per LF Line Striping - Per LF Handicapped Symbols - EA Small Arrow Symbols - EA Curb Painng - Per LF Leer/Number Stencil - EA Crosswalk Painng - Per Block Street Sweeping - Per Hour Street Cleaning - Per Hour Thermoplasc Crosswalks - Per $0.11 $0.24 $0.15 $1.67 $2.50 $1.05 $35.64 $25.92 $1.69 $14.77 $70.00 $200.00 $250.00 $300.00 286 EXHIBIT B 287 City of Bozeman Term Contract: Task Order Number # PROJECT: Issued under the authority of City of Bozeman Term Contract Professional Services Agreement With: For: This Task Order is dated between: and The following representatives have been designated for the work performed under this Task Order City: Contractor: SCOPE OF WORK: COMPENSATION IN WITNESS WHEREOF, the parties authorized to commit resources of the parties have executed this Task Order: City of Bozeman 288 Memorandum REPORT TO:City Commission FROM:Gail Jorgenson, GIS Program Manager Jon Henderson, Strategic Services Director SUBJECT:Authorize the City Manager to Sign a Professional Services Agreement with Ayres Associates, Inc. for Digital Orthoimagery and LiDAR Acquisition project. MEETING DATE:January 23, 2024 AGENDA ITEM TYPE:Agreement - Vendor/Contract RECOMMENDATION:Authorize the City Manager to Sign a Professional Services Agreement with Ayres Associates, Inc. for Digital Orthoimagery and LiDAR Acquisition project. STRATEGIC PLAN:2.2 Infrastructure Investments: Strategically invest in infrastructure as a mechanism to encourage economic development. BACKGROUND:The City of Bozeman regularly uses aerial photography and planimetric information to support regulatory, land management, planning, and engineering projects. This project will update all aerial imagery and LiDAR information for the entire 78.7 square mile planning boundary. The desired flight dates are between April 1st and April 30th, 2024. The desired project completion date is 90 days from data acquisition. Ayres Associates, Inc. was selected through a competitive RFP process for professional services. UNRESOLVED ISSUES:None ALTERNATIVES:As suggested by the City Commission. FISCAL EFFECTS:The total project cost to the City will be $130,000. Adequate funding exists for this project with $130,000 currently allocated within the FY24 Strategic Services CIP budget (CIP Items GIS04 and GIS09). Attachments: Attachment A - Digital Orthoimagery and LiDAR Acquisition RFP.pdf Attachment B - Professional Services Agreement with Proposal and Budget.pdf Report compiled on: January 8, 2024 289 REQUEST FOR PROPOSALS (RFP) DIGITAL ORTHOIMAGERY AND LIDAR ACQUISITION CITY OF BOZEMAN Bozeman, MT City of Bozeman PO Box 1230 Bozeman, MT 59771-1230 NOVEMBER 2023 290 NOTICE IS HEREBY given that the City of Bozeman (City) is seeking proposals from firms qualified to provide aerial photography and planimetric information to support regulatory, land management, planning and engineering projects. This project is to update all aerial imagery for the entire 78.7 square planning boundary in addition to collecting LiDAR data to update a variety of planimetric information (image included in Attachment B of this RFP shows the area of interest). This document defines the technical, cost and time scope for developing a portion of the City’s GIS database. The desired flight dates are between April 1st and April 30th 2024. The desired project completion date is 90 days from photo acquisition. Final deliverables will be mailed to the City of Bozeman on an external hard drive that allows import to the city GIS database. Copies of the Request for Proposals are available on the City’s website. All proposals must be provided as a single, searchable PDF document file and be submitted digitally as an email attachment to the RFP Recipient email address below. Respondents are advised that Recipient’s email attachment size limit is 25MB and that only one PDF file will be allowed per response. The subject line of the transmittal email shall clearly identify the RFP title, company name and due date/time. File sizes greater than 25MB in size may be uploaded to bzncloud.bozeman.net upon special arrangement of the Recipient; however, it is the respondent’s sole responsibility to ensure the file upload is completed, and that the Recipient is separately notified via email of same, prior to the given deadline. Deliver RFPs via email to the City Clerk by Thursday November 30th at 5:00 p.m. MST. It is the sole responsibility of the proposing party to ensure that proposals are received prior to the closing time as late submittals will not be accepted and will be returned unopened. The email address for submission is: agenda@bozeman.net NON-DISCRIMINATION AND EQUAL PAY The City of Bozeman is an Equal Opportunity Employer. Discrimination in the performance of any agreement awarded under this RFP on the basis of race, color, religion, creed, sex, age, marital status, national origin, or actual or perceived sexual orientation, gender identity or disability is prohibited. This prohibition shall apply to the hiring and treatment of the awarded entity’s employees and to all subcontracts. As such, each entity submitting under this notice shall include a provision wherein the submitting entity, or entities, affirms in writing it will not discriminate on the basis of race, color, religion, creed, sex, age, marital status, national origin, or because of actual or perceived sexual orientation, gender identity or disability and which also recognizes the eventual contract will contain a provision prohibiting discrimination as described above and that this prohibition on discrimination shall apply to the hiring and treatment of the submitting entity’s employees and to all subcontracts. 291 In addition, pursuant to City Commission Resolution 5169, the entity awarded a contract under this RFP and any subcontractors must abide by the Equal Pay Act of 1963 and Section 39-3-104, MCA (the Montana Equal Pay Act), and affirm it will abide by the above and that it has visited the State of Montana Equal Pay for Equal Work “best practices” website, or equivalent “best practices” publication and has read the material. Any administrative questions regarding proposal procedures should be directed to: Mike Maas, City Clerk (406) 582-2321, agenda@bozeman.net. Questions relating to the RFP should be directed to: Gail Jorgenson, GIS Program Manager, (406) 582-2972, gjorgenson@bozeman.net. DATED at Bozeman, Montana, this November 8th, 2023. Mike Maas City Clerk City of Bozeman For publication on: Saturday November 11th, 2023 Saturday November 18th, 2023 292 I. INTRODUCTION The City of Bozeman (Owner), is seeking proposals from firms to provide digital orthoimagery for the greater Bozeman area. The Owner intends to enter into a contract with the selected firm that will include but is not limited to the following deliverables: • Digital Orthoimagery: 1”=100’ map scale (i.e., 1”=600’ photo scale), 3” pixel, 4-band (RGB & NIR), true color, orthorectified digital imagery o Survey Control and Quality Check Shots o Digital Orthoimagery (4-band, 3” pixels, mosaic) o Public Sidewalks centerline (within city limits only) o Seamless mosaic at 1-foot (Optional: 0.5-foot) pixel resolution. • LiDAR: o Hydrography (streams & water bodies) o Building Footprints (extruded with height) o Digital Terrain Model (DTM) & Digital Elevation Model (DEM) & Hillshade (grayscale) o Breaklines & Point Cloud (raw & classified) o 1 ft Contours • Project Reports & Metadata • External hard drive with deliverables to be imported to the city Enteprise GIS This RFP shall not commit the Owner to enter into an agreement, to pay any expenses incurred in preparation of any response to this request, or to procure or contract for any supplies, goods or services. The Owner reserves the right to accept or reject all responses received as a result of this RFP if it is in the Owner’s best interest to do so. This procurement is governed by the laws of the State of Montana and venue for all legal proceedings shall be in the 18th Judicial District Court, Gallatin County. By offering to perform services under this RFP, all Submitters agree to be bound by the laws of the State of Montana and of the Owner, including, but not limited to, applicable wage rates, payments, gross receipts taxes, building codes, equal opportunity employment practices, safety, non-discrimination, etc. II. PROJECT BACKGROUND AND DESCRIPTION The City of Bozeman regularly uses aerial photography, LiDAR and planimetric information to support regulatory, land management, planning, and engineering projects. This project will update all aerial imagery for the entire 78.7 square mile planning boundary in addition to building footprints (image included in Attachment B of this RFP shows the area of interest). This documents defines the technical, cost, and time scope for developing a portion of the City’s GIS database. The desired flight dates are between April 1st and April 30th 2024. The desired project completion date is 90 days from photo and LiDAR acquisition. 293 III. SCOPE OF SERVICES The preliminary scope of work involved for this project is outlined below. Additional tasks and work elements may be added during contract negotiations. It is also possible that tasks or elements could be deleted through negotiation. In its proposal, the Consultant may recommend addition/deletion of tasks or modification of tasks in describing its particular understanding and approach for the project. Proposals must clearly identify any elements of the proposed scope of work that would not be provided by the prime Consultant. Any sub-Consultants which comprise the overall Consultant team must be identified along with a description of past working history between the firms. The City desires to complete the proposed work in a diligent manner. Proposals must clearly indicate the Consultant’s anticipated schedule given their staffing and current and projected work load commitments. The proposal shall include a proposed schedule of events necessary to complete the work. The schedule shall include a process and schedule for the submittal of draft products for City review prior to final submittals. Prior to receiving notice to proceed after negotiations, before any data collection the Consultant must submit a project plan. The project plan will include the following: 1) A map showing the study area boundaries and flight path at a reasonable scale (approx. 1:150,000) 2) Documentation specifying altitude, air speed, scan angle, scan rate, and other flight and equipment information deemed appropriate. 3) A chart of areas of high Position Dilution of Precision (PDOP), or a list showing the time of the beginning and end of high PDOP. 4) The proposed ground control plan containing Airborne GPS support. If necessary, the Consultant shall obtain all rights of entry, be responsible for all GPS control information and show all National Spatial Reference System (NSRS) monuments that will be used for the GPS base stations for airborne GPS control. Failure to comply with any of these provisions may result in the rejection of the proposal. Digital Imagery Specifications: Orthoimagery shall be acquired only on clear days, leaf-off conditions, with no snow and minimal puddling of rain water or other weather-related effects obscuring the ground surface. At a minimum, National Map Accuracy Standards for the production of the Orthoimagery must be adhered to. The camera and magazines shall meet or exceed the most recent USGS specifications for aerial camera systems. Aerotriangulation/bundle adjustment shall be performed by the current state-of-the-art analysis software to maximize accuracy of the data. o Photographic Conditions • Tree Cover. Photography shall be undertaken while the leaves are off the deciduous trees. • Clouds. Clouds or cloud shadows must not appear on the imagery. High, thin overcast is permitted above the flying altitude if it does not cause ground mottling or a discernable reduction in light levels and/or ground object shadows. 294 • Well-Defined Images. Collect imagery to obtain well-defined images. Do not attempt imagery acquisition where the ground is obscured by haze, smoke, smog, dust, or falling snow, sleet, rain, or other obscuring phenomena. Do not collect imagery when ground is covered by water (flood), snow, or ice. • Visibility. The minimum visibility at the time of exposure must be 10 miles or greater. • Sun Angle. The majority of the project area will be collected when the sun angle is not less than 40°. In areas with tall trees or areas with significant urban development with buildings 3 stories or taller (such as downtown Bozeman), increase the minimum sun-to-horizon angle to acquire the photography during the times of minimal shadow. • Tilt will not exceed four degrees for any photographic frame and will average not more than two degrees for any ten consecutive frames. Relative tilt exceeding six degrees between any two successive frames may be cause for rejecting that portion of the flight lines. • Crab angle as measured from the average line of flight will not exceed five degrees. The course- heading differential between any two successive exposures will not exceed five degrees. • Forward overlap will be at least 55 percent between consecutive exposures. The average sidelap will be at least 20 percent. o Image Quality/Radiometry • There shall be no areas of an orthophoto where the process was incomplete due to image gaps or lack of data. • All digital orthophotos shall be radiometrically adjusted as necessary so that adjacent digital orthophotos can be displayed simultaneously without an obvious visual edge seam between them. Localized adjustment of the brightness values shall be performed to minimize tonal differences between the join areas. For this adjustment, the orthophoto judged by visual inspection to have the better contrast shall be used as the reference orthophoto. Localized brightness values of the adjacent orthophoto shall be adjusted to that of the reference orthophoto. When possible and feasible, the area adjusted should be bounded by a tonal break ground feature such as a road, field line, shadow line, etc. The radiometric adjustment should not compromise the accuracy, clarity, or resolution of the orthophoto. • Prior to undertaking full digital orthophoto production, the Consultant shall furnish the City with sample digital images to evaluate and accept as examples of overall image quality. The City will select one image, which will become the standard to which all subsequent digital orthophotos will be compared for acceptance/rejection relative to image quality. LiDAR Specifications: The Contractor shall acquire aerial fixed wing LiDAR data collected to meet or exceed QL1 guidelines established in the U. S. Geological Survey National Geospatial Program Lidar Base Specifications Version 2023 rev. A., with vertical accuracy assessment procedures to comply with FEMA Guidelines and Specifications for Flood Hazard Mapping Partners. The DEM will have inland water bodies and streams hydro-flattened as defined in the USGS National Geospatial Program Base LiDAR Specification. The DTM will be of such precision and quality to support projects such as slope analysis; develop perspective plots; perform hydrographic and hydrologic analyses; generate cross-sections; regenerate contours; as the control network in the development of orthoimagery of the mapped areas; and other products requiring continuous contours of mapped areas. The selection and spacing of DTM points shall be defined by the contractor to be appropriate for the generation of 1-foot contours for 50ft scale to meet or exceed National Map Accuracy Standards. 295 The City requires that digital image and LiDAR data be acquired simultaneously captured during one flight to ensure consistency between image and LiDAR datasets. Control: All horizontal and vertical control necessary to provide the deliverables requested in the proposal; digital orthoimagery, and planimetrics meeting the standards specified herein shall be completed by the Consultant. Ground control must be adequate to support the accuracy specifications identified herein. Some existing vertical and horizontal control may be available for this area. The Consultant shall review all horizontal and vertical control for accuracy and completeness. If the existing control is not deemed sufficient, then the Consultant shall describe any additional control work necessary to provide a DTM meeting the specified standards. The Consultant shall provide in the proposal, a draft control plan. The City will not perform any surveying for this project. Any survey work performed by the Consultant shall be done in conformance with Montana survey laws, regulations and administrative rules. For survey control work performed by the Consultant (or sub-Consultants) the following requirements will pertain: A brief survey control report in PDF and/or other digital format shall be delivered that contains: • One digital copy of the control diagram (the survey network scheme). • One copy of all field notes, horizontal and vertical computations, and control network adjustments, with the connections to the National Spatial Reference System shall be clearly shown. • A digital copy of the new control points established to control the photogrammetry with all observations and ties, a point description, digital photograph of the monument and the control point location context, and coordinate values in geographic coordinates and in both UTM Zone 12 NAD83 (2011) meters, NAVD88 meters and Montana State Plane NAD83 (2011) meters, NAVD88 meters. • Survey party personnel, equipment, software, and procedures used. Deliverables: The respondent shall submit a delivery schedule. The Consultant shall deliver to the City for acceptance the following items: 1) Flight Plan and Logs: The flight plan shall be distributed to and approved by the City prior to acquisition. a. Project flight lines on a map displaying the project area and distributed as a feature class or Shapefile suitable for inclusion in ESRI ArcGIS software. Flight lines shall include flight line numbers within the feature attribution, and metadata shall describe the software used to generate the flight plan. b. Approximate number of exposures for the intended coverage area. 296 c. Image centers of each exposure with date and time of acquired photo included. The data shall be distributed as a feature class or Shapefile suitable for inclusion in ESRI ArcGIS software. d. Upon completion of acquisition the Contractor shall provide a collection report summarizing the flight and logs. 2) Calibration Reports: Camera and digital sensor calibration reports along with a product characterization report validating USGS Digital Aerial Type standards shall be provided. 3) Survey Control Report: The following information shall be provided in a final survey report. a. Positional AGPS data and a statistical summary of the AGPS adjustment results. b. IMS sensor orientation and a statistical summary describing the overall accuracy of adjusted IMU data. c. Differentially corrected GPS ground control data used to supplement the AGPS data and a narrative describing all aspects of the ground survey including locations and extent of the network. d. The results and analysis of the constrained least squares adjustment, tables summarizing GPS misclosures, and a description of equipment and software used. 4) Aerial Triangulation Report: An aerial triangulation report shall be provided upon completion of all adjustments. This report shall include, a. An executive summary of the Aerotriangulation solution and its results. b. A detailed narrative of the adjustment process and quality checks for accuracy. c. A description of the software and equipment used to perform the adjustments. d. A listing of the final adjusted coordinates in a spreadsheet or format agreed upon during contract negotiations. 5) Digital Orthoimagery Images: a. 1”=50’ map scale (i.e., 1”=300’ photo scale), 3” pixel, 4-band (RGB and NIR), true color, orthorectified digital imagery b. Seamless mosaic at 1-foot (Optional: 0.5-foot) pixel resolution. c. Edge-matched, non-overlapping tiles based on the tile scheme provided by the City and shall register to the existing City orthophotography database. d. Images with edge artifacts, mismatch, or voids will be rejected. e. Breaklines used to correct bridge and overpass distortion shall be provided in a feature class or Shapefile suitable for inclusion in ESRI ArcGIS software. f. Public Sidewalks (centerline): Within city limits only. 6) LiDAR Data: a. Hydrography: Streams and water bodies throughout the planning area. b. Building Footprints: Extracted with maximum height above ground as an attribute. c. Digital Terrain Model (DTM): Elevation data points shall be delivered as either a regular or irregular DTM in an ESRI geodatabase compatible format. d. Digital Elevation Model (DEM): Gridded raster representation in an ESRI geodatabase compatible format (a TIN is not being requested under this solicitation). e. Hillshade: Grayscale 3D representation of the bare-earth surface. f. Breaklines: ESRI feature class, same reference system as LiDAR point. The Consultant will produce hydro-enforced / hydro-flattened breaklines at NSSDA accuracy standards for 1:2,400-scale maps. o Breaklines will allow water to flow from the tops of hills all the way down the stream network o Breaklines will cut through culverts and bridges to allow water to flow downstream network o Elevation values for the breaklines will be derived from the bare-earth LiDAR o Single line stream centerlines for streams <2 meters wide will be created at channel bottom o For streams >2 meters wide, double breaklines will be digitized only at the bottom of both sides of the channel at the land/water interface (but not at the top of bank) 297 o Drainage ditches (single line <2 meters wide) o Drainage ditches (double line >2 meters wide at bottom of channel) o Water bodies (ponds, lakes, reservoirs) greater than ¼ acre in size g. Point Cloud – Raw: Data shall be delivered in LAS files compatible with the most current ASPRS LAS Specification format and must meet the requirements identified within this specification. The point cloud data shall not contain any data voids and overlap between flight lines shall be removed. h. Point Cloud – Classified: Fully compliant ASPRS LAS v1 1.4 classifications. i. Tiling: Single schema for tiling, no overlap, tile-based .prj files, edgematch seamlessly in horizontal & vertical. j. Contours – 1 ft intervals 7) Progress Reports: Progress reports shall be provided by e-mail on a weekly basis for aerial photography acquisition until delivery of the pilot project, and bi-weekly thereafter until the project is complete. These informal reports shall consist of a summary of production status, major activities completed during the most recent reporting period, description of issues and corrections, and associated status maps or acquired flight lines. 8) Metadata: Complete FGDC-compliant metadata shall be provided for all data in an XML format. The metadata shall provide a complete description of identification, data quality, spatial data organization, spatial reference, and entity and attribute information. The metadata for orthorectified imagery shall also include acquisition dates. 9) Project Report: A final project report summarizing the flight acquisition, orthorectification process and data collection, quality control and assurance, and deliverables provided shall be provided upon completion of the project. This report shall include a detailed narrative of the analysis, accuracy assessment, and validation of all deliverables. 10) External Hard Drive: An external hard drive will be delivered to the city with all of the deliverables available to upload into the city GIS. All final data shall become sole property of the City with no restrictions on use or dissemination. Final deliverables will be stored in the City’s ArcGIS SQL database and will be made available to internal and external customers through various client applications and downloadable data files. All data shall be delivered in both UTM Zone 12 NAD83 (2011) meters, NAVD88 meters and Montana State Plane NAD83 (2011) meters, NAVD88 meters. For more information on the National Adjustment of 2011, please visit the following website: http://www.ngs.noaa.gov/web/surveys/NA2011/. Respondents shall indicate in their proposal a description of the internal quality control processes they will utilize throughout the various phases of the project to assure that the contract deliverables will be acceptable. The Consultant may provide forms, flow charts, or other materials to document the quality control process. The City retains the sole right to determine contract adherence to quality control requirements. Judgment that the Consultant is in breach of the quality control requirements may require suspension of any phase of the contract until such time as the City can determine that such problem(s) have been remedied. 298 IV. PROPOSAL REQUIREMENTS Firms interested in providing the services described above are requested to submit the following information. Responses to each item should appear in the same order as in this RFP and should identifythe item to which the responses applies. a) Executive Summary And executive summary that provides a high level review of the proposed proposal. b) Firm/Inidvidual Profile Consultant’s legal name, address, telephone number, website (if any), and email address. c) Description of Proposed Solution A narrative describing the Consultant’s proposed approach to provide digital orthoimagery for the greater Bozeman area. d) Scope of Project A summary of the proposed products or documents that will be provided at the completion of this project. e) Related Experience with Projects Similar to the Scope of Services Descriptions of similar projects completed. f) Statement of Qualifications Include the Consultant’s professional credentials, experience, and qualifications in providing the Scope of Services stated in this Request for Proposal. g) References List of no more than three municipal organizations you have worked for and whom we may contact for recommendations. h) Present and Projected Workloads A description of the firm’s current work activities and how these would be coordinated with the project, as well as specific current workloads of the project team members. i) Key Personnel Identify each principal of the firm and other key personnel who will be professionally associated with this contract. Describe their respective areas of expertise and contract role. Include personalized resumes, which identify the qualifications, training, and experience of each key personnel. j) Additional Information Submit any other additional information, which would assist the City of Bozeman in the evaluation of the proposal. The City of Bozeman reserves the right to make any investigation 299 and solicit additional information or submittals as it deems necessary to determine the ability of any Consultant to perform the Scope of Services stated within this Request for Proposals. k) Affirmation of Nondiscrimination & Equal Pay (see Attachment A) Non-completion of the Affirmation of Nondiscrimination is cause for disqualification of firms. V. TIMELINES, DELIVERY DEADLINE, AND INSTRUCTIONS EVENT DATE/TIME Publication dates of RFP Saturday, November 11, 2023 Saturday, November 18, 2023 Deadlines for Questions 3:00 p.m. MST November 20, 2023 Deadline for receipt of proposals 5:00 p.m. MST November 30, 2023 Evaluation of proposals December 4, 2023 Notice of Interviews December 8, 2023 Interviews (if necessary) December 15, 2023 Selection of consultants December 18, 2023 With the exception of the advertising dates and advertised due date, the City reserves the right to modify the above timeline. Deliver RFPs via email to the City Clerk (agenda@bozeman.net) by November 30, 2023 at 5:00 p.m. MST. It is the sole responsibility of the proposing party to ensure that proposals are received prior to the closing time as late submittals will not be accepted and will be returned unopened. All proposals must be provided as a single, searchable PDF document file and be submitted digitally as an email attachment to the RFP Recipient email address agenda@bozeman.net. Respondents are advised that Recipient’s email attachment size limit is 25MB and that only one PDF file will be allowed per response. The subject line of the transmittal email shall clearly identify the RFP title, company name and due date/time. File sizes greater than 25MB in size may be uploaded to bzncloud.bozeman.net upon special arrangement of the Recipient; however, it is the respondent’s sole responsibility to ensure the file upload is completed, and that the Recipient is separately notified via email of same, prior to the given deadline. VI. AMENDMENTS TO SOLICITATION Any interpretation or correction of this request will be published on the City’s webpage. The deadline for questions related to this document is 3:00 p.m. MST on November 20, 2023. VII. CONTACT INFORMATION Any administrative questions regarding proposal procedures should be directed to: Mike Maas, City Clerk, (406) 582-2321, agenda@bozeman.net. 300 Questions relating to scope of services should be directed to: Gail Jorgenson, GIS Program Manager, gjorgenson@bozeman.net, 406-582-2972. VIII. SELECTION PROCEDURE A review committee will evaluate all responses to the RFP that meet the submittal requirements and deadline. Submittals that do not meet the requirement or deadline will not be considered. The review committee will rank the proposals and may arrange interviews with the finalist(s) prior to selection. Selection may be made directly based on the written RFP submission. If interviews occur, the selection of finalists to be interviewed will be made by a selection committee representing the City of Bozeman. The selection of interview candidates will be based on an evaluation of the written responses to the RFPs. All submitted proposals must be complete and contain the information required as stated in the "Request for Proposals.” IX. SELECTION CRITERIA Proposals will be evaluated on the following criteria and the requirements of MCA 18-8-204 et seq. • The Consultant’s specific project approach and understanding; • Qualifications of professional personnel to be assigned to the project; • Capability to meet project time and budget requirements; • Location of the Consultant in relation to project; • Present and projected workloads; • Related experience on similar projects; • Recent and current work for the City. X. FORM OF AGREEMENT The Contractor will be required to enter into a contract with the City in substantially the same form as the professional services agreement attached as Attachment C. XI. CITY RESERVATION OF RIGHTS / LIABILITY WAIVER All proposals submitted in response to this RFP become the property of the City and public records and, as such, may be subject to public review. 301 A SUBMISSION IN RESPONSE TO THIS REQUEST FOR QUALIFICATIONS CONFERS NO RIGHTS UPON ANY RESPONDENTS AND SHALL NOT OBLIGATE THE CITY IN ANY MANNER WHATSOEVER. THE CITY RESERVES THE RIGHT TO MAKE NO AWARD AND TO SOLICIT ADDITIONAL REQUEST FOR QUALIFICATIONS AT A LATER DATE. A. This RFP may be canceled or any or all responses may be rejected in whole or in part, as specified herein, when it is in the best interests of the City. If the City cancels or revises this RFP, all Respondents who submitted will be notified using email. B. The City reserves the right to accept or reject any and all proposals; to add or delete items and/or quantities; to amend the RFP; to waive any minor irregularities, informalities, or failure to conform to the RFP; to extend the deadline for submitting proposals; to postpone award for up to 60 days; to award one or more contracts, by item or task, or groups of items or tasks, if so provided in the RFP and if multiple awards or phases are determined by the City to be in the public interest. C. The City of Bozeman reserves the right to reject the proposal of any person/firm who previously failed to perform properly to the satisfaction of the City of Bozeman, or complete on time agreements of similar nature, or to reject the proposal of any person/firm who is not in a position to perform such an agreement satisfactorily as determined by the City of Bozeman. D. The City of Bozeman reserves the right to determine the best qualified Contractor and negotiate a final scope of service and cost, negotiate a contract with another Contractor if an agreement cannot be reached with the first selected Contractor, or reject all proposals. E. The professional services contract between the City of Bozeman and the successful Contractor will incorporate the Contractor's scope of service and work schedule as part of the agreement (see Attachment C for form of professional services agreement. The professional services agreement presented to the Contractor may differ from this form as appropriate for the scope of services). F. This RFP does not commit the City to award a contract. The City assumes no liability or responsibility for costs incurred by firms in responding to this request for proposals or request for interviews, additional data, or other information with respect to the selection process, prior to the issuance of an agreement, contract or purchase order. The Contractor, by submitting a response to this RFP, waives all right to protest or seek any legal remedies whatsoever regarding any aspect of this RFP. G. The City reserves the right to cancel, in part or in its entirety, this RFP including, but not limited to: selection procedures, submittal date, and submittal requirements. If the City 302 cancels or revises this RFP, all Contractors who submitted proposals will be notified using email. H. Projects under any contract are subject to the availability of funds. XII. NONDISCRIMINATION AND EQUAL PAY POLICY The City of Bozeman requires each entity submitting under this notice shall affirm, on a separate form provided, that it will not discriminate on the basis of race, color, religion, creed, sex, age, marital status, national origin, or because of actual or perceived sexual orientation, sexual preference, gender identity, or disability in fulfillment of a contract entered into for the services identified herein and that this prohibition on discrimination shall apply to the hiring and treatment of the submitting entity’s employees and to all subcontracts it enters into in the fulfillment of the services identified herein. Failure to comply with this requirement shall be cause for the submittal to be deemed nonresponsive. The City also requires each entity submitting under this notice shall affirm it will abide by the Equal Pay Act of 1963 and Section 39-3-104, MCA (the Montana Equal Pay Act), and has visited the State of Montana Equal Pay for Equal Work “best practices” website, https://equalpay.mt.gov/BestPractices/Employers, or equivalent “best practices publication and has read the material. XIII. MISCELLANEOUS A. No Oral Agreements. No conversations or oral agreements with any officer, employee, or agent of the City shall affect or modify any term of this solicitation. Oral communications or any written/email communication between any person and City officer, employee or agent shall not be considered binding. B. No Partnership/Business Organization. Nothing in this solicitation or in any subsequent agreement, or any other contract entered into as a result of this solicitation, shall constitute, create, give rise to or otherwise be recognized as a partnership or formal business organization of any kind between or among the respondent and the City. C. Employment Restriction and Indemnity. No person who is an owner, officer, employee, contractor, or consultant of a respondent shall be an officer or employee of the City. No rights of the City’s retirement or personnel rules accrue to a respondent, its officers, employees, contractors, or consultants. Respondents shall have the responsibility of all salaries, wages, bonuses, retirement, withholdings, worker’s compensation and occupational disease compensation, insurance, unemployment compensation other benefits and taxes and premiums appurtenant thereto concerning its officers, employees, contractors, and consultants. Each Respondent shall save and 303 hold the City harmless with respect to any and all claims for payment, compensation, salary, wages, bonuses, retirement, withholdings, worker’s compensation and occupational disease compensation, insurance, unemployment compensation other benefits and taxes and premiums in any way related to each respondent’s officers, employees, contractors and consultants. D. Accessibility. Upon reasonable notice, the City will provide assistance for those persons with sensory impairments. For further information please contact the ADA Coordinator Mike Gray at 406-582-3232 or the City’s TTY line at 406-582-2301. E. Procurement. When discrepancies occur between words and figures in this solicitation, the words shall govern. No responsibility shall attach to a City employee for the premature opening of an RFP not properly addressed and identified in accordance with these documents. F. Governing Law. This solicitation and any disputes arising hereunder or under any future agreement shall be governed and construed and enforced in accordance with the laws of the State of Montana, without reference to principles of choice or conflicts of laws. XIV. ATTACHMENTS The following exhibits are incorporated in this RFP: Attachment A: Non-Discrimination Affirmation Attachment B: 2023 Bozeman Aerial Flight Boundary (Area of Interest) Attachment C: Professional Services Agreement END OF RFP 304 Attachment A NONDISCRIMINATION AND EQUAL PAY AFFIRMATION ____________________________________(name of entity submitting) hereby affirms it will not discriminate on the basis of race, color, religion, creed, sex, age, marital status, national origin, or because of actual or perceived sexual orientation, gender identity or disability and acknowledges and understands the eventual contract will contain a provision prohibiting discrimination as described above and this prohibition on discrimination shall apply to the hiring and treatments or proposer’s employees and to all subcontracts. In addition, ____________________________________(name of entity submitting) hereby affirms it will abide by the Equal Pay Act of 1963 and Section 39-3-104, MCA (the Montana Equal Pay Act), and has visited the State of Montana Equal Pay for Equal Work “best practices” website, https://equalpay.mt.gov/BestPractices/Employers, or equivalent “best practices publication and has read the material. ______________________________________ Name and title of person authorized to sign on behalf of submitter 305 Esri, NASA, NGA, USGS, FEMA, Montana State University, Bozeman GIS, Montana State Library, Esri, HERE, Garmin, SafeGraph, GeoTechnologies, Inc, METI/NASA, USGS, Bureau of Land Management, EPA, NPS, USDA Attachment B ¯ 0 1 20.5 Miles 2024 Bozeman Aerial Imagery and LiDAR Flight Boundary 306 Attachment C Professional Services Agreement for Digital Ortho Imagery and LiDAR Acquisition FY 2024 Page 1 of 12 PROFESSIONAL SERVICES AGREEMENT THIS AGREEMENT is made and entered into this _____ day of ____________, 202__ (“Effective Date”), by and between the CITY OF BOZEMAN, MONTANA, a self-governing municipal corporation organized and existing under its Charter and the laws of the State of Montana, 121 North Rouse Street, Bozeman, Montana, with a mailing address of PO Box 1230, Bozeman, MT 59771, hereinafter referred to as “City,” and, ____________, _______________, hereinafter referred to as “Contractor.” The City and Contractor may be referred to individually as “Party” and collectively as “Parties.” In consideration of the mutual covenants and agreements herein contained, the receipt and sufficiency whereof being hereby acknowledged, the parties hereto agree as follows: 1. Purpose: City agrees to enter this Agreement with Contractor to perform for City services described in the Scope of Services attached hereto as Exhibit A and by this reference made a part hereof. 2. Scope of Services: Contractor will perform the work and provide the services in accordance with the requirements of the Scope of Services. For conflicts between this Agreement and the Scope of Services, unless specifically provided otherwise, the Agreement governs. 4. Payment: City agrees to pay Contractor the amount specified in the Scope of Services. Any alteration or deviation from the described services that involves additional costs above the Agreement amount will be performed by Contractor after written request by the City, and will become an additional charge over and above the amount listed in the Scope of Services. The City must agree in writing upon any additional charges. 5. Contractor’s Representations: To induce City to enter into this Agreement, Contractor makes the following representations: a. Contractor has familiarized itself with the nature and extent of this Agreement, the 307 Attachment C Professional Services Agreement for Digital Ortho Imagery and LiDAR Acquisition FY 2024 Page 2 of 12 Scope of Services, and with all local conditions and federal, state and local laws, ordinances, rules, and regulations that in any manner may affect cost, progress or performance of the Scope of Services. b. Contractor represents and warrants to City that it has the experience and ability to perform the services required by this Agreement; that it will perform the services in a professional, competent and timely manner and with diligence and skill; that it has the power to enter into and perform this Agreement and grant the rights granted in it; and that its performance of this Agreement shall not infringe upon or violate the rights of any third party, whether rights of copyright, trademark, privacy, publicity, libel, slander or any other rights of any nature whatsoever, or violate any federal, state and municipal laws. The City will not determine or exercise control as to general procedures or formats necessary to have these services meet this warranty. 6. Independent Contractor Status/Labor Relations: The parties agree that Contractor is an independent contractor for purposes of this Agreement and is not to be considered an employee of the City for any purpose. Contractor is not subject to the terms and provisions of the City’s personnel policies handbook and may not be considered a City employee for workers’ compensation or any other purpose. Contractor is not authorized to represent the City or otherwise bind the City in any dealings between Contractor and any third parties. Contractor shall comply with the applicable requirements of the Workers’ Compensation Act, Title 39, Chapter 71, Montana Code Annotated (MCA), and the Occupational Disease Act of Montana, Title 39, Chapter 71, MCA. Contractor shall maintain workers’ compensation coverage for all members and employees of Contractor’s business, except for those members who are exempted by law. Contractor shall furnish the City with copies showing one of the following: (1) a binder for workers’ compensation coverage by an insurer licensed and authorized to provide workers’ compensation insurance in the State of Montana; or (2) proof of exemption from workers’ compensation granted by law for independent contractors. In the event that, during the term of this Agreement, any labor problems or disputes of any type arise or materialize which in turn cause any services to cease for any period of time, Contractor specifically agrees to take immediate steps, at its own expense and without expectation of reimbursement from City, to alleviate or resolve all such labor problems or disputes. The specific steps Contractor shall take shall be left to the discretion of Contractor; provided, however, that 308 Attachment C Professional Services Agreement for Digital Ortho Imagery and LiDAR Acquisition FY 2024 Page 3 of 12 Contractor shall bear all costs of any related legal action. Contractor shall provide immediate relief to the City so as to permit the services to continue at no additional cost to City. Contractor shall indemnify, defend, and hold the City harmless from any and all claims, demands, costs, expenses, damages, and liabilities arising out of, resulting from, or occurring in connection with any labor problems or disputes, or any delays or stoppages of work associated with such problems or disputes. 7. Indemnity/Waiver of Claims/Insurance: For other than professional services rendered, to the fullest extent permitted by law, Contractor agrees to release, defend, indemnify, and hold harmless the City, its agents, representatives, employees, and officers (collectively referred to for purposes of this Section as the City) from and against any and all claims, demands, actions, fees and costs (including attorney’s fees and the costs and fees of expert witness and consultants), losses, expenses, liabilities (including liability where activity is inherently or intrinsically dangerous) or damages of whatever kind or nature connected therewith and without limit and without regard to the cause or causes thereof or the negligence of any party or parties that may be asserted against, recovered from or suffered by the City occasioned by, growing or arising out of or resulting from or in any way related to: (i) the negligent, reckless, or intentional misconduct of the Contractor; or (ii) any negligent, reckless, or intentional misconduct of any of the Contractor’s agents. For the professional services rendered, to the fullest extent permitted by law, Contractor agrees to indemnify and hold the City harmless against claims, demands, suits, damages, losses, and expenses, including reasonable defense attorney fees, to the extent caused by the negligence or intentional misconduct of the Contractor or Contractor’s agents or employees. Such obligations shall not be construed to negate, abridge, or reduce other rights or obligations of indemnity that would otherwise exist. The indemnification obligations of this Section must not be construed to negate, abridge, or reduce any common-law or statutory rights of the City as indemnitee(s) which would otherwise exist as to such indemnitee(s). Contractor’s indemnity under this Section shall be without regard to and without any right to contribution from any insurance maintained by City. Should the City be required to bring an action against the Contractor to assert its right to 309 Attachment C Professional Services Agreement for Digital Ortho Imagery and LiDAR Acquisition FY 2024 Page 4 of 12 defense or indemnification under this Agreement or under the Contractor’s applicable insurance policies required below, the City shall be entitled to recover reasonable costs and attorney fees incurred in asserting its right to indemnification or defense but only if a court of competent jurisdiction determines the Contractor was obligated to defend the claim(s) or was obligated to indemnify the City for a claim(s) or any portion(s) thereof. In the event of an action filed against the City resulting from the City’s performance under this Agreement, the City may elect to represent itself and incur all costs and expenses of suit. Contractor also waives any and all claims and recourse against the City, including the right of contribution for loss or damage to person or property arising from, growing out of, or in any way connected with or incident to the performance of this Agreement except “responsibility for [City’s] own fraud, for willful injury to the person or property of another, or for violation of law, whether willful or negligent” as per 28-2-702, MCA. These obligations shall survive termination of this Agreement and the services performed hereunder. In addition to and independent from the above, Contractor shall at Contractor’s expense secure insurance coverage through an insurance company or companies duly licensed and authorized to conduct insurance business in Montana which insures the liabilities and obligations specifically assumed by the Contractor in this Section. The insurance coverage shall not contain any exclusion for liabilities specifically assumed by the Contractor in this Section. The insurance shall cover and apply to all claims, demands, suits, damages, losses, and expenses that may be asserted or claimed against, recovered from, or suffered by the City without limit and without regard to the cause therefore and which is acceptable to the City. Contractor shall furnish to the City an accompanying certificate of insurance and accompanying endorsements in amounts not less than as follows: • Workers’ Compensation – statutory; • Employers’ Liability - $1,000,000 per occurrence; $2,000,000 annual aggregate; • Commercial General Liability - $1,000,000 per occurrence; $2,000,000 annual aggregate; 310 Attachment C Professional Services Agreement for Digital Ortho Imagery and LiDAR Acquisition FY 2024 Page 5 of 12 • Automobile Liability - $1,000,000 property damage/bodily injury per accident; and • Professional Liability - $1,000,000 per claim; $2,000,000 annual aggregate. The above amounts shall be exclusive of defense costs. The City shall be endorsed as an additional or named insured on a primary non-contributory basis on the Commercial General, Employer’s Liability, and Automobile Liability policies. The insurance and required endorsements must be in a form suitable to City and shall include no less than a thirty (30) day notice of cancellation or non-renewal. Contractor shall notify City within two (2) business days of Contractor’s receipt of notice that any required insurance coverage will be terminated or Contractor’s decision to terminate any required insurance coverage for any reason. The City must approve all insurance coverage and endorsements prior to the Contractor commencing work. 8. Termination for Contractor’s Fault: a. If Contractor refuses or fails to timely do the work, or any part thereof, or fails to perform any of its obligations under this Agreement, or otherwise breaches any terms or conditions of this Agreement, the City may, by written notice, terminate this Agreement and the Contractor’s right to proceed with all or any part of the work (“Termination Notice Due to Contractor’s Fault”). The City may then take over the work and complete it, either with its own resources or by re-letting the contract to any other third party. b. In the event of a termination pursuant to this Section 8, Contractor shall be entitled to payment only for those services Contractor actually rendered. c. Any termination provided for by this Section 8 shall be in addition to any other remedies to which the City may be entitled under the law or at equity. d. In the event of termination under this Section 8, Contractor shall, under no circumstances, be entitled to claim or recover consequential, special, punitive, lost business opportunity, lost productivity, field office overhead, general conditions costs, or lost profits damages of any nature arising, or claimed to have arisen, as a result of the termination. 311 Attachment C Professional Services Agreement for Digital Ortho Imagery and LiDAR Acquisition FY 2024 Page 6 of 12 9. Termination for City’s Convenience: a. Should conditions arise which, in the sole opinion and discretion of the City, make it advisable to the City to cease performance under this Agreement, the City may terminate this Agreement by written notice to Contractor (“Notice of Termination for City’s Convenience”). The termination shall be effective in the manner specified in the Notice of Termination for City’s Convenience and shall be without prejudice to any claims that the City may otherwise have against Contractor. b. Upon receipt of the Notice of Termination for City’s Convenience, unless otherwise directed in the Notice, the Contractor shall immediately cease performance under this Agreement and make every reasonable effort to refrain from continuing work, incurring additional expenses or costs under this Agreement and shall immediately cancel all existing orders or contracts upon terms satisfactory to the City. Contractor shall do only such work as may be necessary to preserve, protect, and maintain work already completed or immediately in progress. c. In the event of a termination pursuant to this Section 9, Contractor is entitled to payment only for those services Contractor actually rendered on or before the receipt of the Notice of Termination for City’s Convenience. d. The compensation described in Section 9(c) is the sole compensation due to Contractor for its performance of this Agreement. Contractor shall, under no circumstances, be entitled to claim or recover consequential, special, punitive, lost business opportunity, lost productivity, field office overhead, general conditions costs, or lost profits damages of any nature arising, or claimed to have arisen, as a result of the termination. 10. Limitation on Contractor’s Damages; Time for Asserting Claim: a. In the event of a claim for damages by Contractor under this Agreement, Contractor’s damages shall be limited to contract damages and Contractor hereby expressly waives any right to claim or recover consequential, special, punitive, lost business opportunity, lost productivity, field office overhead, general conditions costs, or lost profits damages of any nature or kind. 312 Attachment C Professional Services Agreement for Digital Ortho Imagery and LiDAR Acquisition FY 2024 Page 7 of 12 b. In the event Contractor wants to assert a claim for damages of any kind or nature, Contractor shall provide City with written notice of its claim, the facts and circumstances surrounding and giving rise to the claim, and the total amount of damages sought by the claim, within thirty (30) days of the facts and circumstances giving rise to the claim. In the event Contractor fails to provide such notice, Contractor shall waive all rights to assert such claim. 11. Representatives and Notices: a. City’s Representative: The City’s Representative for the purpose of this Agreement shall be Gail Jorgenson, GIS Program Manager or such other individual as City shall designate in writing. Whenever approval or authorization from or communication or submission to City is required by this Agreement, such communication or submission shall be directed to the City’s Representative and approvals or authorizations shall be issued only by such Representative; provided, however, that in exigent circumstances when City’s Representative is not available, Contractor may direct its communication or submission to other designated City personnel or agents as designated by the City in writing and may receive approvals or authorization from such persons. b. Contractor’s Representative: The Contractor’s Representative for the purpose of this Agreement shall be _____________________ or such other individual as Contractor shall designate in writing. Whenever direction to or communication with Contractor is required by this Agreement, such direction or communication shall be directed to Contractor’s Representative; provided, however, that in exigent circumstances when Contractor’s Representative is not available, City may direct its direction or communication to other designated Contractor personnel or agents. c. Notices: All notices required by this Agreement shall be in writing and shall be provided to the Representatives named in this Section. Notices shall be deemed given when delivered, if delivered by courier to Party’s address shown above during normal business hours of the recipient; or when sent, if sent by email or fax (with a successful transmission report) to the email address or fax number provided by the Party’s Representative; or on the fifth business day following mailing, if mailed by ordinary mail to the address shown above, postage prepaid. 313 Attachment C Professional Services Agreement for Digital Ortho Imagery and LiDAR Acquisition FY 2024 Page 8 of 12 12. Permits: Contractor shall provide all notices, comply with all applicable laws, ordinances, rules, and regulations, obtain all necessary permits, licenses, including a City of Bozeman business license, and inspections from applicable governmental authorities, and pay all fees and charges in connection therewith. 13. Laws and Regulations: Contractor shall comply fully with all applicable state and federal laws, regulations, and municipal ordinances including, but not limited to, all workers’ compensation laws, all environmental laws including, but not limited to, the generation and disposal of hazardous waste, the Occupational Safety and Health Act (OSHA), the safety rules, codes, and provisions of the Montana Safety Act in Title 50, Chapter 71, MCA, all applicable City, County, and State building and electrical codes, the Americans with Disabilities Act, and all non-discrimination, affirmative action, and utilization of minority and small business statutes and regulations. If Contractor’s Scope of Services includes the production of digital content, documents, or web applications for the City, Contractor must use both the City style guide when creating a design, and, as per recommendations found in Section 508 of the Rehabilitation Act, the content must also adhere to level A and AA Success Criteria and Conformance Requirements as defined by the current Web Content Accessibility Guidelines (WCAG). The City will not accept digital content that does not comply with WCAG A and AA guidelines. If the City refuses digital content because it is non-compliant with the City style guide, Section 508 of the Rehabilitation Act, and/or WCAG, Contractor will be required to make the digital content compliant and redelivered at no additional cost to the City. 15. Nondiscrimination and Equal Pay: The Contractor agrees that all hiring by Contractor of persons performing this Agreement shall be on the basis of merit and qualifications. The Contractor will have a policy to provide equal employment opportunity in accordance with all applicable state and federal anti-discrimination laws, regulations, and contracts. The Contractor will not refuse employment to a person, bar a person from employment, or discriminate against a person in compensation or in a term, condition, or privilege of employment because of race, color, religion, 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 314 Attachment C Professional Services Agreement for Digital Ortho Imagery and LiDAR Acquisition FY 2024 Page 9 of 12 require an age, physical or mental disability, marital status or sex distinction. The Contractor shall be subject to and comply with Title VI of the Civil Rights Act of 1964; Section 140, Title 2, United States Code, and all regulations promulgated thereunder. Contractor represents it is, and for the term of this Agreement will be, in compliance with the requirements of the Equal Pay Act of 1963 and Section 39-3-104, MCA (the Montana Equal Pay Act). Contractor must report to the City any violations of the Montana Equal Pay Act that Contractor has been found guilty of within 60 days of such finding for violations occurring during the term of this Agreement. Contractor shall require these nondiscrimination terms of its subcontractors providing services under this Agreement. 16. Intoxicants; DOT Drug and Alcohol Regulations/Safety and Training: Contractor shall not permit or suffer the introduction or use of any intoxicants, including alcohol or illegal drugs, by any employee or agent engaged in services to the City under this Agreement while on City property or in the performance of any activities under this Agreement. Contractor acknowledges it is aware of and shall comply with its responsibilities and obligations under the U.S. Department of Transportation (DOT) regulations governing anti-drug and alcohol misuse prevention plans and related testing. City shall have the right to request proof of such compliance and Contractor shall be obligated to furnish such proof. The Contractor shall be responsible for instructing and training the Contractor's employees and agents in proper and specified work methods and procedures. The Contractor shall provide continuous inspection and supervision of the work performed. The Contractor is responsible for instructing its employees and agents in safe work practices. 17. Modification and Assignability: This Agreement may not be enlarged, modified or altered except by written agreement signed by both parties hereto. The Contractor may not subcontract or assign Contractor’s rights, including the right to compensation or duties arising hereunder, without the prior written consent of the City. Any subcontractor or assignee will be bound by all of the terms and conditions of this Agreement. 18. Reports/Accountability/Public Information: Contractor agrees to develop and/or provide documentation as requested by the City demonstrating Contractor’s compliance with the 315 Attachment C Professional Services Agreement for Digital Ortho Imagery and LiDAR Acquisition FY 2024 Page 10 of 12 requirements of this Agreement. Contractor shall allow the City, its auditors, and other persons authorized by the City to inspect and copy its books and records for the purpose of verifying that the reimbursement of monies distributed to Contractor pursuant to this Agreement was used in compliance with this Agreement and all applicable provisions of federal, state, and local law. The Contractor shall not issue any statements, releases or information for public dissemination without prior approval of the City. 19. Non-Waiver: A waiver by either party of any default or breach by the other party of any terms or conditions of this Agreement does not limit the other party’s right to enforce such term or conditions or to pursue any available legal or equitable rights in the event of any subsequent default or breach. 20. Attorney’s Fees and Costs: In the event it becomes necessary for either Party to retain an attorney to enforce any of the terms or conditions of this Agreement or to give any notice required herein, then the prevailing Party or the Party giving notice shall be entitled to reasonable attorney's fees and costs, including fees, salary, and costs of in-house counsel including the City Attorney’s Office staff. 21. Taxes: Contractor is obligated to pay all taxes of any kind or nature and make all appropriate employee withholdings. 22. Dispute Resolution: a. Any claim, controversy, or dispute between the parties, their agents, employees, or representatives shall be resolved first by negotiation between senior-level personnel from each party duly authorized to execute settlement agreements. Upon mutual agreement of the parties, the parties may invite an independent, disinterested mediator to assist in the negotiated settlement discussions. b. If the parties are unable to resolve the dispute within thirty (30) days from the date the dispute was first raised, then such dispute may only be resolved in a court of competent jurisdiction in compliance with the Applicable Law provisions of this Agreement. 23. Survival: Contractor’s indemnification shall survive the termination or expiration of this Agreement for the maximum period allowed under applicable law. 316 Attachment C Professional Services Agreement for Digital Ortho Imagery and LiDAR Acquisition FY 2024 Page 11 of 12 24. Headings: The headings used in this Agreement are for convenience only and are not to be construed as a part of the Agreement or as a limitation on the scope of the particular paragraphs to which they refer. 25. Severability: If any portion of this Agreement is held to be void or unenforceable, the balance thereof shall continue in effect. 26. Applicable Law: The parties agree that this Agreement is governed in all respects by the laws of the State of Montana. 27. Binding Effect: This Agreement is binding upon and inures to the benefit of the heirs, legal representatives, successors, and assigns of the parties. 28. No Third-Party Beneficiary: This Agreement is for the exclusive benefit of the parties, does not constitute a third-party beneficiary agreement, and may not be relied upon or enforced by a third party. 29. Counterparts: This Agreement may be executed in counterparts, which together constitute one instrument. 30. Integration: This Agreement and all Exhibits attached hereto constitute the entire agreement of the parties. Covenants or representations not contained herein or made a part thereof by reference, are not binding upon the parties. There are no understandings between the parties other than as set forth in this Agreement. All communications, either verbal or written, made prior to the date of this Agreement are hereby abrogated and withdrawn unless specifically made a part of this Agreement by reference. 31. Consent to Electronic Signatures: The Parties have consented to execute this Agreement electronically in conformance with the Montana Uniform Electronic Transactions Act, Title 30, Chapter 18, Part 1, MCA. **** END OF AGREEMENT EXCEPT FOR SIGNATURES **** 317 Attachment C Professional Services Agreement for Digital Ortho Imagery and LiDAR Acquisition FY 2024 Page 12 of 12 IN WITNESS WHEREOF, the parties hereto have executed this Agreement the day and year first above written or as recorded in an electronic signature. CITY OF BOZEMAN, MONTANA ____________________________________ CONTRACTOR (Type Name Above) By________________________________ By__________________________________ Jeff Mihelich, City Manager Print Name: ___________________________ Print Title: ____________________________ APPROVED AS TO FORM: By_______________________________ Greg Sullivan, Bozeman City Attorney 318 Attachment C Professional Services Agreement for Digital Ortho Imagery and LiDAR Acquisition FY 2024 Page 1 of 12 PROFESSIONAL SERVICES AGREEMENT THIS AGREEMENT is made and entered into this _____ day of ____________, 202__ (“Effective Date”), by and between the CITY OF BOZEMAN, MONTANA, a self-governing municipal corporation organized and existing under its Charter and the laws of the State of Montana, 121 North Rouse Street, Bozeman, Montana, with a mailing address of PO Box 1230, Bozeman, MT 59771, hereinafter referred to as “City,” and, __Ayres Associates, Inc.__, __5201 E Terrace Drive, Suite 200, Madison, WI 53718__, hereinafter referred to as “Contractor.” The City and Contractor may be referred to individually as “Party” and collectively as “Parties.” In consideration of the mutual covenants and agreements herein contained, the receipt and sufficiency whereof being hereby acknowledged, the parties hereto agree as follows: 1. Purpose: City agrees to enter this Agreement with Contractor to perform for City services described in the Scope of Services attached hereto as Exhibit A and by this reference made a part hereof. 2. Scope of Services: Contractor will perform the work and provide the services in accordance with the requirements of the Scope of Services. For conflicts between this Agreement and the Scope of Services, unless specifically provided otherwise, the Agreement governs. 4. Payment: City agrees to pay Contractor the amount specified in the Scope of Services. Any alteration or deviation from the described services that involves additional costs above the Agreement amount will be performed by Contractor after written request by the City, and will become an additional charge over and above the amount listed in the Scope of Services. The City must agree in writing upon any additional charges. 5. Contractor’s Representations: To induce City to enter into this Agreement, Contractor makes the following representations: a.Contractor has familiarized itself with the nature and extent of this Agreement, the 319 Attachment C Professional Services Agreement for Digital Ortho Imagery and LiDAR Acquisition FY 2024 Page 2 of 12 Scope of Services, and with all local conditions and federal, state and local laws, ordinances, rules, and regulations that in any manner may affect cost, progress or performance of the Scope of Services. b. Contractor represents and warrants to City that it has the experience and ability to perform the services required by this Agreement; that it will perform the services in a professional, competent and timely manner and with diligence and skill; that it has the power to enter into and perform this Agreement and grant the rights granted in it; and that its performance of this Agreement shall not infringe upon or violate the rights of any third party, whether rights of copyright, trademark, privacy, publicity, libel, slander or any other rights of any nature whatsoever, or violate any federal, state and municipal laws. The City will not determine or exercise control as to general procedures or formats necessary to have these services meet this warranty. 6. Independent Contractor Status/Labor Relations: The parties agree that Contractor is an independent contractor for purposes of this Agreement and is not to be considered an employee of the City for any purpose. Contractor is not subject to the terms and provisions of the City’s personnel policies handbook and may not be considered a City employee for workers’ compensation or any other purpose. Contractor is not authorized to represent the City or otherwise bind the City in any dealings between Contractor and any third parties. Contractor shall comply with the applicable requirements of the Workers’ Compensation Act, Title 39, Chapter 71, Montana Code Annotated (MCA), and the Occupational Disease Act of Montana, Title 39, Chapter 71, MCA. Contractor shall maintain workers’ compensation coverage for all members and employees of Contractor’s business, except for those members who are exempted by law. Contractor shall furnish the City with copies showing one of the following: (1) a binder for workers’ compensation coverage by an insurer licensed and authorized to provide workers’ compensation insurance in the State of Montana; or (2) proof of exemption from workers’ compensation granted by law for independent contractors. In the event that, during the term of this Agreement, any labor problems or disputes of any type arise or materialize which in turn cause any services to cease for any period of time, Contractor specifically agrees to take immediate steps, at its own expense and without expectation of reimbursement from City, to alleviate or resolve all such labor problems or disputes. The specific steps Contractor shall take shall be left to the discretion of Contractor; provided, however, that 320 Attachment C Professional Services Agreement for Digital Ortho Imagery and LiDAR Acquisition FY 2024 Page 3 of 12 Contractor shall bear all costs of any related legal action. Contractor shall provide immediate relief to the City so as to permit the services to continue at no additional cost to City. Contractor shall indemnify, defend, and hold the City harmless from any and all claims, demands, costs, expenses, damages, and liabilities arising out of, resulting from, or occurring in connection with any labor problems or disputes, or any delays or stoppages of work associated with such problems or disputes. 7. Indemnity/Waiver of Claims/Insurance: For other than professional services rendered, to the fullest extent permitted by law, Contractor agrees to release, defend, indemnify, and hold harmless the City, its agents, representatives, employees, and officers (collectively referred to for purposes of this Section as the City) from and against any and all claims, demands, actions, fees and costs (including attorney’s fees and the costs and fees of expert witness and consultants), losses, expenses, liabilities (including liability where activity is inherently or intrinsically dangerous) or damages of whatever kind or nature connected therewith and without limit and without regard to the cause or causes thereof or the negligence of any party or parties that may be asserted against, recovered from or suffered by the City occasioned by, growing or arising out of or resulting from or in any way related to: (i) the negligent, reckless, or intentional misconduct of the Contractor; or (ii) any negligent, reckless, or intentional misconduct of any of the Contractor’s agents. For the professional services rendered, to the fullest extent permitted by law, Contractor agrees to indemnify and hold the City harmless against claims, demands, suits, damages, losses, and expenses, including reasonable defense attorney fees, to the extent caused by the negligence or intentional misconduct of the Contractor or Contractor’s agents or employees. Such obligations shall not be construed to negate, abridge, or reduce other rights or obligations of indemnity that would otherwise exist. The indemnification obligations of this Section must not be construed to negate, abridge, or reduce any common-law or statutory rights of the City as indemnitee(s) which would otherwise exist as to such indemnitee(s). Contractor’s indemnity under this Section shall be without regard to and without any right to contribution from any insurance maintained by City. Should the City be required to bring an action against the Contractor to assert its right to 321 Attachment C Professional Services Agreement for Digital Ortho Imagery and LiDAR Acquisition FY 2024 Page 4 of 12 defense or indemnification under this Agreement or under the Contractor’s applicable insurance policies required below, the City shall be entitled to recover reasonable costs and attorney fees incurred in asserting its right to indemnification or defense but only if a court of competent jurisdiction determines the Contractor was obligated to defend the claim(s) or was obligated to indemnify the City for a claim(s) or any portion(s) thereof. In the event of an action filed against the City resulting from the City’s performance under this Agreement, the City may elect to represent itself and incur all costs and expenses of suit. Contractor also waives any and all claims and recourse against the City, including the right of contribution for loss or damage to person or property arising from, growing out of, or in any way connected with or incident to the performance of this Agreement except “responsibility for [City’s] own fraud, for willful injury to the person or property of another, or for violation of law, whether willful or negligent” as per 28-2-702, MCA. These obligations shall survive termination of this Agreement and the services performed hereunder. In addition to and independent from the above, Contractor shall at Contractor’s expense secure insurance coverage through an insurance company or companies duly licensed and authorized to conduct insurance business in Montana which insures the liabilities and obligations specifically assumed by the Contractor in this Section. The insurance coverage shall not contain any exclusion for liabilities specifically assumed by the Contractor in this Section. The insurance shall cover and apply to all claims, demands, suits, damages, losses, and expenses that may be asserted or claimed against, recovered from, or suffered by the City without limit and without regard to the cause therefore and which is acceptable to the City. Contractor shall furnish to the City an accompanying certificate of insurance and accompanying endorsements in amounts not less than as follows: • Workers’ Compensation – statutory; • Employers’ Liability - $1,000,000 per occurrence; $2,000,000 annual aggregate; • Commercial General Liability - $1,000,000 per occurrence; $2,000,000 annual aggregate; 322 Attachment C Professional Services Agreement for Digital Ortho Imagery and LiDAR Acquisition FY 2024 Page 5 of 12 • Automobile Liability - $1,000,000 property damage/bodily injury per accident; and • Professional Liability - $1,000,000 per claim; $2,000,000 annual aggregate. The above amounts shall be exclusive of defense costs. The City shall be endorsed as an additional or named insured on a primary non-contributory basis on the Commercial General, Employer’s Liability, and Automobile Liability policies. The insurance and required endorsements must be in a form suitable to City and shall include no less than a thirty (30) day notice of cancellation or non-renewal. Contractor shall notify City within two (2) business days of Contractor’s receipt of notice that any required insurance coverage will be terminated or Contractor’s decision to terminate any required insurance coverage for any reason. The City must approve all insurance coverage and endorsements prior to the Contractor commencing work. 8. Termination for Contractor’s Fault: a. If Contractor refuses or fails to timely do the work, or any part thereof, or fails to perform any of its obligations under this Agreement, or otherwise breaches any terms or conditions of this Agreement, the City may, by written notice, terminate this Agreement and the Contractor’s right to proceed with all or any part of the work (“Termination Notice Due to Contractor’s Fault”). The City may then take over the work and complete it, either with its own resources or by re-letting the contract to any other third party. b. In the event of a termination pursuant to this Section 8, Contractor shall be entitled to payment only for those services Contractor actually rendered. c. Any termination provided for by this Section 8 shall be in addition to any other remedies to which the City may be entitled under the law or at equity. d. In the event of termination under this Section 8, Contractor shall, under no circumstances, be entitled to claim or recover consequential, special, punitive, lost business opportunity, lost productivity, field office overhead, general conditions costs, or lost profits damages of any nature arising, or claimed to have arisen, as a result of the termination. 323 Attachment C Professional Services Agreement for Digital Ortho Imagery and LiDAR Acquisition FY 2024 Page 6 of 12 9. Termination for City’s Convenience: a. Should conditions arise which, in the sole opinion and discretion of the City, make it advisable to the City to cease performance under this Agreement, the City may terminate this Agreement by written notice to Contractor (“Notice of Termination for City’s Convenience”). The termination shall be effective in the manner specified in the Notice of Termination for City’s Convenience and shall be without prejudice to any claims that the City may otherwise have against Contractor. b. Upon receipt of the Notice of Termination for City’s Convenience, unless otherwise directed in the Notice, the Contractor shall immediately cease performance under this Agreement and make every reasonable effort to refrain from continuing work, incurring additional expenses or costs under this Agreement and shall immediately cancel all existing orders or contracts upon terms satisfactory to the City. Contractor shall do only such work as may be necessary to preserve, protect, and maintain work already completed or immediately in progress. c. In the event of a termination pursuant to this Section 9, Contractor is entitled to payment only for those services Contractor actually rendered on or before the receipt of the Notice of Termination for City’s Convenience. d. The compensation described in Section 9(c) is the sole compensation due to Contractor for its performance of this Agreement. Contractor shall, under no circumstances, be entitled to claim or recover consequential, special, punitive, lost business opportunity, lost productivity, field office overhead, general conditions costs, or lost profits damages of any nature arising, or claimed to have arisen, as a result of the termination. 10. Limitation on Contractor’s Damages; Time for Asserting Claim: a. In the event of a claim for damages by Contractor under this Agreement, Contractor’s damages shall be limited to contract damages and Contractor hereby expressly waives any right to claim or recover consequential, special, punitive, lost business opportunity, lost productivity, field office overhead, general conditions costs, or lost profits damages of any nature or kind. 324 Attachment C Professional Services Agreement for Digital Ortho Imagery and LiDAR Acquisition FY 2024 Page 7 of 12 b. In the event Contractor wants to assert a claim for damages of any kind or nature, Contractor shall provide City with written notice of its claim, the facts and circumstances surrounding and giving rise to the claim, and the total amount of damages sought by the claim, within thirty (30) days of the facts and circumstances giving rise to the claim. In the event Contractor fails to provide such notice, Contractor shall waive all rights to assert such claim. 11. Representatives and Notices: a. City’s Representative: The City’s Representative for the purpose of this Agreement shall be Gail Jorgenson, GIS Program Manager or such other individual as City shall designate in writing. Whenever approval or authorization from or communication or submission to City is required by this Agreement, such communication or submission shall be directed to the City’s Representative and approvals or authorizations shall be issued only by such Representative; provided, however, that in exigent circumstances when City’s Representative is not available, Contractor may direct its communication or submission to other designated City personnel or agents as designated by the City in writing and may receive approvals or authorization from such persons. b. Contractor’s Representative: The Contractor’s Representative for the purpose of this Agreement shall be _____________________ or such other individual as Contractor shall designate in writing. Whenever direction to or communication with Contractor is required by this Agreement, such direction or communication shall be directed to Contractor’s Representative; provided, however, that in exigent circumstances when Contractor’s Representative is not available, City may direct its direction or communication to other designated Contractor personnel or agents. c. Notices: All notices required by this Agreement shall be in writing and shall be provided to the Representatives named in this Section. Notices shall be deemed given when delivered, if delivered by courier to Party’s address shown above during normal business hours of the recipient; or when sent, if sent by email or fax (with a successful transmission report) to the email address or fax number provided by the Party’s Representative; or on the fifth business day following mailing, if mailed by ordinary mail to the address shown above, postage prepaid. 325 Attachment C Professional Services Agreement for Digital Ortho Imagery and LiDAR Acquisition FY 2024 Page 8 of 12 12. Permits: Contractor shall provide all notices, comply with all applicable laws, ordinances, rules, and regulations, obtain all necessary permits, licenses, including a City of Bozeman business license, and inspections from applicable governmental authorities, and pay all fees and charges in connection therewith. 13. Laws and Regulations: Contractor shall comply fully with all applicable state and federal laws, regulations, and municipal ordinances including, but not limited to, all workers’ compensation laws, all environmental laws including, but not limited to, the generation and disposal of hazardous waste, the Occupational Safety and Health Act (OSHA), the safety rules, codes, and provisions of the Montana Safety Act in Title 50, Chapter 71, MCA, all applicable City, County, and State building and electrical codes, the Americans with Disabilities Act, and all non-discrimination, affirmative action, and utilization of minority and small business statutes and regulations. If Contractor’s Scope of Services includes the production of digital content, documents, or web applications for the City, Contractor must use both the City style guide when creating a design, and, as per recommendations found in Section 508 of the Rehabilitation Act, the content must also adhere to level A and AA Success Criteria and Conformance Requirements as defined by the current Web Content Accessibility Guidelines (WCAG). The City will not accept digital content that does not comply with WCAG A and AA guidelines. If the City refuses digital content because it is non-compliant with the City style guide, Section 508 of the Rehabilitation Act, and/or WCAG, Contractor will be required to make the digital content compliant and redelivered at no additional cost to the City. 15. Nondiscrimination and Equal Pay: The Contractor agrees that all hiring by Contractor of persons performing this Agreement shall be on the basis of merit and qualifications. The Contractor will have a policy to provide equal employment opportunity in accordance with all applicable state and federal anti-discrimination laws, regulations, and contracts. The Contractor will not refuse employment to a person, bar a person from employment, or discriminate against a person in compensation or in a term, condition, or privilege of employment because of race, color, religion, 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 326 Attachment C Professional Services Agreement for Digital Ortho Imagery and LiDAR Acquisition FY 2024 Page 9 of 12 require an age, physical or mental disability, marital status or sex distinction. The Contractor shall be subject to and comply with Title VI of the Civil Rights Act of 1964; Section 140, Title 2, United States Code, and all regulations promulgated thereunder. Contractor represents it is, and for the term of this Agreement will be, in compliance with the requirements of the Equal Pay Act of 1963 and Section 39-3-104, MCA (the Montana Equal Pay Act). Contractor must report to the City any violations of the Montana Equal Pay Act that Contractor has been found guilty of within 60 days of such finding for violations occurring during the term of this Agreement. Contractor shall require these nondiscrimination terms of its subcontractors providing services under this Agreement. 16. Intoxicants; DOT Drug and Alcohol Regulations/Safety and Training: Contractor shall not permit or suffer the introduction or use of any intoxicants, including alcohol or illegal drugs, by any employee or agent engaged in services to the City under this Agreement while on City property or in the performance of any activities under this Agreement. Contractor acknowledges it is aware of and shall comply with its responsibilities and obligations under the U.S. Department of Transportation (DOT) regulations governing anti-drug and alcohol misuse prevention plans and related testing. City shall have the right to request proof of such compliance and Contractor shall be obligated to furnish such proof. The Contractor shall be responsible for instructing and training the Contractor's employees and agents in proper and specified work methods and procedures. The Contractor shall provide continuous inspection and supervision of the work performed. The Contractor is responsible for instructing its employees and agents in safe work practices. 17. Modification and Assignability: This Agreement may not be enlarged, modified or altered except by written agreement signed by both parties hereto. The Contractor may not subcontract or assign Contractor’s rights, including the right to compensation or duties arising hereunder, without the prior written consent of the City. Any subcontractor or assignee will be bound by all of the terms and conditions of this Agreement. 18. Reports/Accountability/Public Information: Contractor agrees to develop and/or provide documentation as requested by the City demonstrating Contractor’s compliance with the 327 Attachment C Professional Services Agreement for Digital Ortho Imagery and LiDAR Acquisition FY 2024 Page 10 of 12 requirements of this Agreement. Contractor shall allow the City, its auditors, and other persons authorized by the City to inspect and copy its books and records for the purpose of verifying that the reimbursement of monies distributed to Contractor pursuant to this Agreement was used in compliance with this Agreement and all applicable provisions of federal, state, and local law. The Contractor shall not issue any statements, releases or information for public dissemination without prior approval of the City. 19. Non-Waiver: A waiver by either party of any default or breach by the other party of any terms or conditions of this Agreement does not limit the other party’s right to enforce such term or conditions or to pursue any available legal or equitable rights in the event of any subsequent default or breach. 20. Attorney’s Fees and Costs: In the event it becomes necessary for either Party to retain an attorney to enforce any of the terms or conditions of this Agreement or to give any notice required herein, then the prevailing Party or the Party giving notice shall be entitled to reasonable attorney's fees and costs, including fees, salary, and costs of in-house counsel including the City Attorney’s Office staff. 21. Taxes: Contractor is obligated to pay all taxes of any kind or nature and make all appropriate employee withholdings. 22. Dispute Resolution: a. Any claim, controversy, or dispute between the parties, their agents, employees, or representatives shall be resolved first by negotiation between senior-level personnel from each party duly authorized to execute settlement agreements. Upon mutual agreement of the parties, the parties may invite an independent, disinterested mediator to assist in the negotiated settlement discussions. b. If the parties are unable to resolve the dispute within thirty (30) days from the date the dispute was first raised, then such dispute may only be resolved in a court of competent jurisdiction in compliance with the Applicable Law provisions of this Agreement. 23. Survival: Contractor’s indemnification shall survive the termination or expiration of this Agreement for the maximum period allowed under applicable law. 328 Attachment C Professional Services Agreement for Digital Ortho Imagery and LiDAR Acquisition FY 2024 Page 11 of 12 24. Headings: The headings used in this Agreement are for convenience only and are not to be construed as a part of the Agreement or as a limitation on the scope of the particular paragraphs to which they refer. 25. Severability: If any portion of this Agreement is held to be void or unenforceable, the balance thereof shall continue in effect. 26. Applicable Law: The parties agree that this Agreement is governed in all respects by the laws of the State of Montana. 27. Binding Effect: This Agreement is binding upon and inures to the benefit of the heirs, legal representatives, successors, and assigns of the parties. 28. No Third-Party Beneficiary: This Agreement is for the exclusive benefit of the parties, does not constitute a third-party beneficiary agreement, and may not be relied upon or enforced by a third party. 29. Counterparts: This Agreement may be executed in counterparts, which together constitute one instrument. 30. Integration: This Agreement and all Exhibits attached hereto constitute the entire agreement of the parties. Covenants or representations not contained herein or made a part thereof by reference, are not binding upon the parties. There are no understandings between the parties other than as set forth in this Agreement. All communications, either verbal or written, made prior to the date of this Agreement are hereby abrogated and withdrawn unless specifically made a part of this Agreement by reference. 31. Consent to Electronic Signatures: The Parties have consented to execute this Agreement electronically in conformance with the Montana Uniform Electronic Transactions Act, Title 30, Chapter 18, Part 1, MCA. **** END OF AGREEMENT EXCEPT FOR SIGNATURES **** 329 Attachment C Professional Services Agreement for Digital Ortho Imagery and LiDAR Acquisition FY 2024 Page 12 of 12 IN WITNESS WHEREOF, the parties hereto have executed this Agreement the day and year first above written or as recorded in an electronic signature. CITY OF BOZEMAN, MONTANA ____________________________________ CONTRACTOR (Type Name Above) By________________________________ By__________________________________ Jeff Mihelich, City Manager Print Name: ___________________________ Print Title: ____________________________ APPROVED AS TO FORM: By_______________________________ Greg Sullivan, Bozeman City Attorney 330 www.AyresAssociates.com Ingenuity, Integrity, and Intelligence. City of Bozeman, MT November 30, 2023 Digital Orthoimagery and Lidar Acquisition 331 608.443.1200 | 5201 E. Terrace Drive, Suite 200 | Madison, WI 53718 www.AyresAssociates.com November 30, 2023 Mike Maas, City Clerk Gail Jorgenson, GIS Progam Manager City of Bozeman 121 N. Rouse Ave., Suite 202 Bozeman, MT 59715 Re: Digital Orthoimagery and Lidar Acquisition Dear Mr. Maas, Ms. Jorgenson, and Selection Committee members: Ayres is pleased to provide this proposal for aerial digital orthoimagery and lidar services. Ayres has a long history of services to counties and municipalities throughout the country and looks forward to bringing our expertise and experience to the City of Bozeman on this project. Ayres has a proven track record of providing high-quality aerial imagery and mapping in the Western U.S., and we hope this proposal exemplifies our unrivaled approach to your important project. We bring an experienced team of professional land surveyors, geographers, remote sensing experts, project managers, and engineers who are accustomed to completing complex, large-scale aerial mapping projects around the country. Our proven track record of successful aerial mapping projects, completed on time and on budget, has been a platform for our success in this industry over the past 45 years. Our approach to developing high-accuracy lidar, imagery, and mapping products is cost-effective and supports expedited production schedules. Ayres is very familiar with the area; we have offices in Wyoming and Colorado and recently completed a similar project for the City of Loveland, Colorado, and are currently performing land use and land cover mapping for the City of Bozeman. For your project we plan to have 95West as our flight partner and KLJ Engineering and Planning as our survey partner. We understand that the City of Bozeman is interested in acquiring updated aerial imagery and lidar, along with enhanced lidar derivatives for the 78.7 square mile City planning boundary, and sidewalk centerlines within the City limits of 21 square miles. We understand the importance of meeting the needs of multiple departments when designing cost-effective solutions, and we’ll certainly do the same for the City. It’s important to note that all the work we do for this project will occur within the United States. Our team of talented survey staff, orthoimagery and lidar technicians, remote sensing specialists, mapping and GIS specialists have completed thousands of square miles of orthoimagery and lidar processing and planimetric mapping in the past couple of years. We believe our dynamic, client-focused approach will result in a successful orthoimagery and lidar project for the City of Bozeman. 332 www.AyresAssociates.com 608.443.1200 | 5201 E. Terrace Drive, Suite 200 | Madison, WI 53718 City of Bozeman November 30, 2023 Page 2 of 2 We are dedicated to providing the City of Bozeman with high-quality service and custom solutions in imagery, classification and mapping. Our team can provide the full complement of expertise needed for your project and will take the time to consult with you to ensure the best approach is taken, not only for this project but with your overall goals in mind. When we are done, we will meet with your staff to walk through the data to answer your questions and ensure you hit the ground running. Completing projects means more than just delivering final products. We are committed to understanding your spatial data needs and hope to further discuss how we can meet your goals. In the meantime, please contact me if you have questions or would like additional information. Sincerely, Ayres Associates Inc Tyler Kaebisch Project Manager – Geospatial Services 414.467.8891 I KaebischT@AyresAssociates.com “Services from Ayres have been excellent. Every time I’ve had a problem, they’ve offered solutions for us to look at. A lot of the issues have been more with our own software, but they’ve given us ideas to look at and avenues to go down.” Scott Hand Supervisor of GIS Services, Wisconsin Public Service 333 4AYRES | DIGITAL ORTHOIMAGERY AND LIDAR ACQUISITION | CITY OF BOZEMAN, MT Ingenuity, Integrity, and Intelligence. Since beginning to provide aerial imagery services in 1978, Ayres’ Geospatial Division has completed thousands of projects, from film-based imagery to rectification of historical imagery to today’s digital imagery (including data outside the visible spectrum) with advanced sensors and processing techniques. Lidar has also long been an area of Ayres’ expertise – in 2024, Ayres will have been offering airborne lidar services for 20 years. Regardless of the medium or content, Ayres’ project planning and performance are built on two elements: selecting the best approach for the client’s needs and problems, and expert understanding and application of the principles of orthophotography and photogrammetry. Ayres’ proposed approach relies on both. For example, meeting your needs includes working within the City’s budget and schedule requirements; Ayres is comfortable that we will be able to perform the necessary work for the budgeted amount and within the City’s time frame. Furthermore, Ayres will provide effective communication throughout the life- cycle of the project and will be available to answer any questions or concerns along the way. Project Team and Key Personnel The Ayres team is led by Ayres Associates Inc, a national engineering and geospatial firm with a large presence in the Rocky Mountain region. Ayres will serve as the prime consultant, responsible for project management; direct communication with City personnel; quality process definition, tracking, and enforcement; project planning and scheduling; all imagery, lidar, planimetric and hydrographic processing; and delivery of all products. Ayres’ project manager will be Tyler Kaebisch, a geospatial data expert with deep experience in the western U.S. in both private and public sector work and a reputation for innovative approaches to aerial mapping projects. Tyler also has extensive previous experience as a remote sensing specialist for the USDA Forest Service, the US Bureau of Reclamation, and Minnesota DNR. Ayres has over 60 people in its Geospatial Division. Approximately half of these are in the Aerial Mapping group, and include GISPs, certified photogrammetrists, and certified mapping scientists. Many of them have worked on the Bozeman Land Use/Land Cover project. This means Ayres has the knowledge, capacity and broad expertise to complete the project on-time and with excellent quality. Most of the remaining personnel within Ayres’ Geospatial Division are land surveyors. Ayres holds Montana land survey licensure at the individual and firm levels. This means that we are qualified to provide expert project management for the survey portion of this project. KLJ, a national engineering firm with four locations in Montana, including Bozeman, will serve as our subconsultant responsible for survey control and aerial control targeting. They have provided similar services on other Ayres projects in the past, including the City of Bozeman’s Land Use/Land Cover project and the Montana DOT’s Bridge Scour Study. Justin Stefanik, the survey lead for KLJ, has spent his entire career in Montana and has worked in Bozeman. 95West of Grand Forks, North Dakota, will perform aerial lidar and imagery data acquisition. Through its predecessor firm, KBM Geospatial, 95West has been offering aerial data acquisition for nearly 60 years. They specialize in simultaneous acquisition of lidar and imagery and performed precisely that service as a subconsultant to Ayres for the Rapid City (South Dakota) MPO project performed in 2023. Their experience and familiarity with working in the western U.S. makes them an ideal partner for the Bozeman project. Miles Strain, the project lead for 95West, is well known in the aerial mapping industry and has led projects for municipalities throughout the Upper Midwest and West Project Understanding and Overview The City requires updated aerial imagery and lidar along with planimetric and hydrographic data to support the operation of various City departments as well as making available a common, accurate set of geospatial data to businesses and members of the public. As a fast-growing community in the Rocky Mountain region, Bozeman is subject to continuous change created by human and natural forces. For example, in the past 12 months, Ayres has identified 14 new subdivision plats recorded with Gallatin County. Developed areas, drainage, the street network, and land cover are all changing, and the City government and the community require current, accurate data to inform plans and budgeting, to assess and manage growth, and to best display the attractions of Bozeman to businesses, travelers, and prospective residents. A) EXECUTIVE SUMMARY 334 5AYRES | DIGITAL ORTHOIMAGERY AND LIDAR ACQUISITION | CITY OF BOZEMAN, MT Ingenuity, Integrity, and Intelligence. In the Request for Proposal, the City has listed several government functions that the data created under this contract will support. Ayres understands the benefits that will be gained by these groups, including: • Regulatory: confirm and quantify compliance or non-compliance with regulations and permits such as building height, vegetation or other encroachments, impervious surfaces, setbacks from water or roadways, and zoning.• Land Management: identify conflicting uses; use landform and hydrography data to predict fire and flood risk and behavior; assess appropriateness of land for use restrictions, reservation, or withdrawal; and support acquisition and sale of properties.• Planning: assess transportation system and service changes needed due to planned development, imagery and data for grant application support, multimodal transportation planning, parking analysis, update land use plan, route and time analyses, determine viewsheds and the impact of new construction.• Engineering: high-level design, maintenance planning and estimating, supporting data for proposers and bidders, drainage around and within projects. Ayres proposes to provide 3-inch pixel resolution, 4-band digital orthoimagery collected simultaneously with QL1 lidar for the 78.7 square mile project area defined by the City. 3D building footprints, 2D sidewalk centerlines, 1-foot contours and hydrographic data will be produced from the newly acquired lidar and imagery. The lidar-derived DEM, Hydro-enforced DEM, DTM, and Hillshade layers will be produced at a 1-foot pixel resolution. Double lined hydro-breaklines will be created for streams greater than 2 meters wide and ponded water greater than ¼ acre in size. A culvert and bridge breakline dataset will be created as part of the hydro-breaklines process, which will allow for a streamlined Elevation Derived Hydrography (EDH) stream centerline network to be created for the project area. The imagery and lidar will be collected under leaf-off, snow- free conditions when the sun angle is at least 45 degrees above the horizon. Using a minimum sun angle of 45 degrees rather than the RFP’s requirement of 40 degrees will both improve image quality by reducing shadows and will save time and money by eliminating the need to organize flights to have a larger minimum sun angle in those areas of the city where tall trees, buildings, or steeper terrain occur. The imagery will meet National Map Accuracy standards for 1” = 50’ mapping throughout the project. The QL1 lidar will meet a vertical accuracy of 10cm RMSEz on hard surfaces. To meet these accuracy standards, all survey control will be established by KLJ, using existing control locations to the maximum extent possible. KLJ will confirm that all existing control is still acceptable for use, and will create new control points if it is not. KLJ will also establish additional control points as directed by Ayres to meet the promised accuracy across the entire project area. In addition, KLJ will establish quality check points to be used to verify the accuracy of the imagery and lidar. To comply with the FEMA Guidelines and Specifications for Flood Hazard Mapping Partners vertical accuracy assessment procedures, KLJ will collect 30 NVA/VVA check shots to assess the lidar vertical accuracy across terrain types. These check points will be independent and will not be used to perform aerotriangulation (AT) or calibration computations. The raw lidar data with be calibrated to the control points, and the imagery will be orthorectified based on the control points and a lidar derived DEM surface. Lidar will be classified to the standard USGS base specification. After the compliance of the AT solution has been verified, Ayres’ imagery analysts will review, and correct as needed, each image for tone balance between adjacent images and across the project. They will also perform manual correction of radial displacement of bridges and overpasses. Data will be tiled using the City’s tiling scheme and will be created from the completed images and fully classified lidar point cloud. As extra enhancement, Ayres will prepare three orthomosaic files for the City: the original source 3-inch pixel resolution for maximum quality and accuracy, and both 6-inch and 12-inch resolutions for ease of use for City staff and community members. Providing mosaics at the various resolutions will maximize the accessibility of the mosaic to the City’s user base, allowing selection of the most appropriate resolution based on user requirements and their available processing and rendering capabilities. The full list of proposed deliverables is shown in section D of this proposal, “Scope of Project.” 335 6AYRES | DIGITAL ORTHOIMAGERY AND LIDAR ACQUISITION | CITY OF BOZEMAN, MT Ingenuity, Integrity, and Intelligence. Ayres is a nationwide professional consulting firm providing services in photogrammetry, orthoimagery, lidar, and digital mapping; GIS; survey; civil, structural, transportation, river, levee, and water resources engineering; environmental science; planning; mechanical/electrical/plumbing engineering; and architecture. Incorporated in Eau Claire, Wisconsin, Ayres now employs over 375 people who provide services from a network of offices around the country. Geospatial Services Ayres’ geospatial services division is based in Madison, Wisconsin. The geospatial division originated as Alster & Associates Photogrammetric Engineering (founded in 1951) and merged with Ayres in 1978. The geospatial division consists of certified photogrammetrists, highly trained technicians, and project managers, all of whom have formal education in the discipline of geography. Nationally recognized for our skill and experience in aerial mapping, land surveying, and GIS, we deliver efficient and intelligent solutions. Our geospatial division provides a diverse range of mapping services to clients around the country: Aerial lidar (fixed wing, UAS, and helicopter) Ground-based lidar (Mobile and HD Scanning) Aerial imagery acquisition Digital orthoimagery Planimetric and topographic mapping GIS consulting, training, and development GPS and conventional survey Remote sensing Oblique aerial imagery Digital terrain modeling (DTM) Vendor Contact Information Company’s Full Legal Name Ayres Associates Inc Location of Principal Office Responsible for Contract Implementation 5201 E. Terrace Drive, Suite 200 Madison, WI 53718 Website AyresAssociates.com Contact Person’s Information Tyler Kaebisch, GISP T: 414.467.8891 KaebischT@AyresAssociates.com Year Established 1959 Type of Ownership Employee-owned corporation B) FIRM PROFILE AYRES OFFICE LOCATIONS 336 7AYRES | DIGITAL ORTHOIMAGERY AND LIDAR ACQUISITION | CITY OF BOZEMAN, MT Ingenuity, Integrity, and Intelligence. “All staff that GMRC had contact with were most accommodating. Anything we needed or asked for were supplied without question.” Faith Jones Director of Information Services, Georgia Mountains Regional Commission Production Based in the United States All of your work will be performed in the United States. Ayres possesses more than enough resources to accomplish this project with skilled professionals based in the United States. For reasons of efficient production, quality control, and security of data about critical infrastructure, it is important that the production is directly under the control of Ayres personnel at all times. There remain only a few geospatial firms that have their entire production staff within the country; Ayres is proud to be among them. Each member of our team is dedicated to quality products and services and has a personal stake in the satisfaction of our clients. Experienced Staff Ayres’ geospatial division includes certified photogrammetrists (CP) and certified mapping specialists (CMS). In addition, all of our mapping technicians have bachelor’s degrees in the discipline of geography and also have training in the latest photogrammetric equipment and software. Qualifications like these result in accurate, quality mapping products that follow project specifications closely. Commitment to Quality We respect our clients and understand that success is earned through cooperation and understanding the needs of our valued clients. Our technical and management staff make every effort to listen to clients and prepare mapping that meets client expectations. These efforts start at the receipt of the RFP and continue on to final delivery – and beyond. Project Manager Our approach to managing your project begins with a dedication to understanding your needs and designing solutions that address them. Too often firms propose technical approaches that fit the contractor better than they fit the client. We will commit ample management resources to the project, led by Project Manager Tyler Kaebisch. Tyler is experienced in project management and has a strong history of involvement in the West with over 14 years of experience in GIS, remote sensing, and other geospatial disciplines. As project manager, Tyler will update City of Bozeman personnel during the course of the project to discuss pertinent project issues as needed. Additionally, he will participate in weekly internal meetings with supervisors to assess the status of the project and address key technical issues, thereby maintaining high standards for product specifications and keeping the project on track to meet the timeframe agreed upon. 337 8AYRES | DIGITAL ORTHOIMAGERY AND LIDAR ACQUISITION | CITY OF BOZEMAN, MT Ingenuity, Integrity, and Intelligence. The City of Bozeman, Montana, requires the development of new lidar, orthoimagery, planimetric, and hydrographic mapping. These critical datasets will be used for land management, planning, zoning, and engineering. The aerial imagery will meet 3-inch resolution, and will support the development of updated planimetric mapping of sidewalk centerlines. The lidar data will be collected to USGS QL1 specifications, collected at a minimum of 8 pulses per square meter (ppsm). Lidar data will be processed to derive 1-foot contours, building footprints, hydro and culvert breaklines, DEM, hydro-enforced DEM, DTM and hillshade models. Along with lidar and orthimagery products, updated ground control survey, reports and metadata will also be provided. Our unique approach uses simultaneous lidar and imagery data acquisition, which will allow for consistency throughout all deliverables produced for this project. Our approach will also focus the collection efforts when the sun angle is not less than 45 degrees, throughout the project area, which will ensure minimal shadows in areas with tall trees or buildings greater than three stories tall. We are confident we have a dynamic, well-planned approach to work with the City to complete your project successfully. We have carefully estimated the capacity and resources needed – with a focus on maintaining the necessary resources to complete the project on schedule. Please note that all work for the City will be performed within the United States by the Ayres Associates team. Project Management Our approach to managing the project begins with a dedication to understanding your needs and designing solutions that address them. Too often, firms propose technical approaches that fit the contractor better than they fit the client. We will commit ample management resources to the project, led by our project manager, Tyler Kaebisch, who brings proven experience in managing projects involving aerial mapping, GIS, survey, and other geospatial disciplines. Tyler will update the City’s personnel during the project to discuss pertinent project issues as needed. Additionally, he will participate in weekly internal meetings with team supervisors to assess the status of the project and address key technical issues, thereby maintaining high standards for product specifications and keeping the project on track to meet the timeframe agreed upon. Initial Coordination Meeting. Before project initiation, we propose that Tyler and key staff from the City participate in a coordination meeting. During this meeting, we will review and refine the project schedule and scope, discuss the acquisition conditions and schedule, and establish a pilot project area. Quality Assurance and Quality Control Procedures. Ayres’ quality program defines quality as meeting client expectations. Therefore, quality performance requires consensus between the City and project team members regarding the requirements of the project and design of project strategies based on those requirements. Ayres’ quality program is dynamic and promotes continual improvement based on feedback from our clients, from our own project operations, and from opportunities created by changing technologies. Ayres and Tyler Kaebisch are ultimately responsible for the successful completion of quality products and services for each project. Tyler establishes the philosophy, organization, and policy that set Ayres’ quality assurance/quality control (QA/QC) program in place. Project managers or their designated project QA officers implement the QA/QC program on individual projects. We understand that only through consistent implementation of quality procedures can we complete projects to our clients’ satisfaction. Ayres and our partner 95West have formal, co-developed QA/QC checks in place and standard operating procedures designed so that all required information is collected accurately and that products meet or exceed project standards and specifications. Task-Specific QA/QC Procedures. QA/QC procedures and the supervisors responsible for their implementation C) PROPOSED SOLUTION 338 9AYRES | DIGITAL ORTHOIMAGERY AND LIDAR ACQUISITION | CITY OF BOZEMAN, MT Ingenuity, Integrity, and Intelligence. are included in the production phases outlined in this technical approach. Ayres will work with the City to develop additional QA/QC procedures tailored to the participants’ needs during this phase. Quality Monitoring. A QA/QC team will be assigned for each aspect of the project and will consist of photogrammetric, mapping, survey, and GIS specialists. The QA/QC reviews will include reviews of results and weekly progress meetings with each project group. Issues brought to the attention of the project manager will be addressed immediately. The project manager will coordinate the subcontractor’s efforts to ensure consistent results and ensure that all procedures implemented will be incorporated into QA/QC documentation. Ground Control Survey ABGPS. Our primary method of control for the project will be by Airborne GPS (ABGPS). All airborne cameras and sensors used for this project will use highly accurate geodetic-grade ABGPS systems. Location accuracy of the ABGPS capture points will range between .02 and .05 meter. To reduce control costs for the project, Ayres will use a combination of ground control points and ABGPS control. Ayres understands that we’ll be responsible for establishing ground control points for this project. Our survey partner, KLJ, is well known in the Montana survey community and has extensive experience with control networks and specifically around Bozeman. With its professional land surveyor crew based in Bozeman, the firm has local knowledge to give the ground survey the attention it deserves. Upon receiving the previously established control, KLJ will locate and determine if they are acceptable for use in the aerial flights. If KLJ determines any of the previously established points are compromised it will be reset or moved to a more ideal location. New control points will be monumented in locations determined by Ayres as optimal for the flight. The material used by the newly established control will be a 2-inch aluminum cap on a 5/8”x24” rebar, stamped with corresponding point naming convention. Sketches, ties, and photos of the new points will be documented for use in future flights. Each of the previously and newly established control points will be observed using static baselines from high accuracy reference networks (HARN). Each mark will be observed a minimum of two times, adjusting the height of the instrument to eliminate errors in measurements to the GPS unit. The static baselines will be imported in Trimble Business Center for a least square adjustment constrained to the HARN point coordinates. The coordinate values of the control will be in UTM Zone 12 and Montana State Plane Coordinates, both in meters. The resultant vectors establish the final coordinates of the ground control points. Targets will be placed at the center of the control point for identification during the flight. Photo-identifiable Targets. In addition to any established control points, Ayres will use photo- identifiable ground control targets; this does not require establishing and removing panels. Photo-identifiable targets will consist of easily distinguished ground features such as ends of paint lines, sidewalk corners, and corners where driveways meet road edge. Independent Vertical Accuracy Check Shots. KLJ will also establish additional control points as directed by Ayres to meet the promised accuracy across the entire project area. In addition, KLJ will establish quality check points to be used to verify the accuracy of the imagery and lidar. In order to comply with the FEMA Guidelines and Specifications for Flood Hazard Mapping Partners vertical accuracy assessment procedures, KLJ will collect 30 NVA/VVA check shots to assess the lidar vertical accuracy across terrain types. These check points will be independent and will not be used to perform aerotriangulation (AT) or calibration computations. 339 10AYRES | DIGITAL ORTHOIMAGERY AND LIDAR ACQUISITION | CITY OF BOZEMAN, MT Ingenuity, Integrity, and Intelligence. Aerial Imagery and Lidar Acquisition Ayres and our flight partner in this project, 95West, propose a simultaneous collection of lidar and imagery using the 1560ii-s lidar sensor and the UltraCam Eagle digital mapping camera. This system is versatile in its design, allowing for maximum efficiency for medium- and small- scale mapping projects. We have worked extensively with the staff at 95West over the years on projects both large and small, which will provide a seamless workflow for the City of Bozeman’s project. Details concerning the imagery and lidar acquisition technology are provided below. Digital Aerial Imagery. The UltraCam sensor supports aerial photogrammetric missions for the broadest range of GIS and remote sensing applications. The complete data acquisition system delivers small scale or large- scale images with high-quality resolution at engineering- scale accuracy, capable of supplying images with ground resolutions of less than 2.5cm. Designed with break- through technologies, the modular system consists of state-of-the-art components, centered on frame sensor technology, to advance all aspects of the digital workflow. The following are features and benefits associated with 95West’s UltraCam Eagle and peripheral equipment:• Simultaneous collection of panchromatic, true color (RGB), and near infrared bands (RGBIR).• Ground resolution of 13,080 pixels along track and 20,010 pixels across track• 12-bit radiometric resolution• FMC forward motion compensation • Gyro-stabilized mount• Applanix 510 POS/AV system with Litton 200 Inertial Measurement Unit (IMU)• Computer controlled navigation system Lidar Specifications We understand that the City’s current objective is to acquire updated lidar data for this project. Ayres has worked with tribes, municipalities, counties, utilities, and state and federal agencies on their lidar and topographic needs for years. Ayres’ work with the USGS 3-DEP program includes grant writing, federal data acceptance, and production of additional derivative products, such as culverts and feature extraction. Aerial lidar will be acquired simultaneously with the orthoimagery in the Spring of 2024. Aggregate nominal pulse density (ANPD) for the QL1 lidar acquisition will be ≥ 8 pulses per square meter (ppsm). Lidar acquisition will be conducted by 95West when the ground is free of snow and ice, and when the atmospheric conditions between the aircraft and the ground are free of clouds and fog. The calibrated lidar point cloud will support the development of a bare earth surface model (DEM) to meet the following vertical accuracy requirements: • RMSEz (non-vegetated) ≤ 10 cm (point cloud and DEM). • NVA ≤ 19.6 cm at 95% confidence level (point cloud and DEM). • VVA ≤ 30 cm at 95th percentile level (DEM only). Lidar Sensors. Not all lidar sensors are the same. Even when using current technology, different sensors may provide different results. Some sensors can be flown higher and faster, some can provide a higher pulse rate, some can provide more returns, and some can provide less noise. Ayres has been producing lidar data since the early 2000s, and we dedicate significant time to understand the benefits of each new generation of sensor on the market and modify our project planning and production workflow to adopt the benefits of new technologies to the appropriate projects. Given the large size and high-density requirement for the City of Bozeman’s project, Ayres recommends using Riegl’s 1560II. Among other benefits this system offers: • High laser pulse repetition rate up to 800 kHz. • Unrivaled scan pattern for best point spacing on the ground. • Innovative forward/backward looking capability for collecting data of vertical structures. 340 11AYRES | DIGITAL ORTHOIMAGERY AND LIDAR ACQUISITION | CITY OF BOZEMAN, MT Ingenuity, Integrity, and Intelligence. • Offers highly efficient data acquisition at a wide range of point densities. • Digitization electronics for full waveform data. • Enables Multiple-Time-Around (MTA) processing for resolving range ambiguities automatically. • Excellent suppression of atmospheric clutter. • Integrated inertial measurement unit and GNSS receiver. Additionally, this sensor is capable of collecting seven or more returns from each lidar pulse, allowing for better penetration of vegetation, less data voids, and better data for feature extraction. It is known to produce very little noise in the data. Flight Planning Quality Assurance. Ayres will take special care in designing an optimal flight plan that will achieve maximum coverage and efficiency for the QL1 lidar and the 3-inch orthoimagery. Upon notice to proceed, Ayres will present the flight plan to the City of Bozeman prior to any flights. For the imagery acquisition, there will be a total of 648 images over the 18 flight lines. For reference, the proposed simultaneous QL1 lidar and the 3-inch imagery flight plan is shown below. Data for the geographic extents of the project will be acquired using the correct mission profiles for the desired final products. Proper planning of flight lines promotes the success of this project (with minimal rework) – and proper planning optimizes lidar performance versus cost. Mission planning consists of several steps for proper flight preparation. First and foremost, the project boundaries are imported into the flight planning software. Following this, we review available information, such as elevation data, vegetation coverage data, and cultural feature extents of the area. General assessments are made by certified photogrammetrists to determine the proper lidar system settings, such as FOV (field of view) and GSD (ground sample distance). All lidar flight lines will be flown to ensure no data void exists between lines. Conditions During Acquisition. Imagery and lidar will be collected in stable weather conditions, e.i., cloud-free, low- moisture, leaf-off, snow-and-ice-free. Photography and lidar will not be captured when the ground is obscured by snow, haze, fog, dust, or cloud shadows in any one photo. Data will not be collected until all bodies of water in the project area are free of ice. Flight Management System. The aircraft is guided by a GPS-controlled flight management system. During the mission, the crew will monitor all functions involving the operations and guidance systems, allowing for continuous onboard QA. Freshwater Surface Hydrography Conditions. The lidar collection will target low-flow discharge conditions throughout the project area. No unusual flooding or water inundation will be present during the acquisition. Ayres will work closely with the City and local experts to determine the most suitable ground conditions for the flight mission. FAA Certification. All aircraft used in the performance of this contract will be maintained and operated in accordance with all regulations required by the U.S. Department of Transportation, Federal Aviation Administration (FAA). Positive Control Airspace. It will be Ayres’ responsibility to obtain all approvals necessary to ensure that required clearances are achieved for the flight missions. When the flight plan and location of any project area coverage fall within positive-control airspace, the aircraft must BOZEMAN FLIGHT PLAN 341 12AYRES | DIGITAL ORTHOIMAGERY AND LIDAR ACQUISITION | CITY OF BOZEMAN, MT Ingenuity, Integrity, and Intelligence. contain the appropriate equipment to operate in such positive-control areas within the purview of the federal aviation regulations. In addition to all FAA requirements, all flights requesting clearance in the vicinity of “VIP” type airspace with temporary flight restrictions (TFR) will notify the contracting officer before receiving FAA clearance for instructions. Acquisition Date. Imagery will be flown when deciduous foliage is under leaf-off conditions. The target flight window will be between April 1 and April 30, 2024, or as weather permits. Sun Angle. The sun angle for all flights will be at least 45 degrees above horizon. Stereoscopic Coverage. The entire area of the project will be stereoscopically covered by successive and adjacent overlaps of photographs within the usable portion of the field of the lens. Four Band Imagery. The UltraCam Eagle collects imagery in the standard three RGB color bands, as well as a fourth band for near infrared. Ayres will provide the City with all four-color bands at no additional cost to the City. Crab. Average crab for any flight line will not exceed 3 degrees. Crab will not exceed 3 degrees between any two consecutive flights. Tilt. Imagery collected with the optical axis of the aerial sensor in a vertical position is desired. Tilt is angular departure of the aerial sensor axis from a vertical line at the instant of exposure. Tilt will not average more than 1 degree for the entire project. End Lap/Side Lap. The end lap will average not less than 55% or more than 65%. End lap of less than 55% or more than 65% in one or more images will be cause for rejection. The side lap will average 30%. Any image having side lap less than 25% or more than 35% will be rejected. Reflights. Lack of acceptable imagery or gaps in swaths will be corrected by reflights, with no additional cost to the City. All reflights will be centered on the plotted flight lines and will be taken with the same camera system. Image Review. Immediately upon completion of the acquisition, the imagery will be forwarded for inspection to our digital orthoimagery supervisor, Aaron Sale. Once we confirm successful acquisition and image quality, the City will be notified. If any imagery does not meet the acceptance criteria, a reflight will be scheduled and the City notified. Digital Orthophotography Production As aerial data collection missions are completed, orthoimagery production will begin. Ayres has significant digital orthoimagery production capability and capacity. We invest heavily in our staff and hardware. Our production methodology is specifically designed to consistently produce high-quality products. Specialists at Ayres will be responsible for all orthoimagery production components of the project. Advancements in production software and our investments in infrastructure favor an increasingly aggressive schedule for the upcoming project; we are committed to meeting the City’s schedule expectations for this project. Ayres has trained and experienced staff running fully equipped Z/I Imaging digital workstations, NT orthoimagery workstations, and dedicated image editing stations. We’ve designed our complementary production methodologies to facilitate a completely digital workflow using all Z/I hardware and software environments, resulting in a consistent approach to orthoimagery production and a high-quality product. 342 13AYRES | DIGITAL ORTHOIMAGERY AND LIDAR ACQUISITION | CITY OF BOZEMAN, MT Ingenuity, Integrity, and Intelligence. Analytical Aerotriangulation (AT). To maintain an aggressive schedule, it will be critical to prepare for AT immediately upon the successful completion of each imagery mission. This is the first step in the orthoimagery production process and must be completed in efficiently for the rest of the ortho process to proceed on schedule. Planning for sufficient capacity in this area is critical to the project. Several important factors will contribute to the efficient AT processing under our approach. The first is the use of ABGPS and IMU data, which provide image orientation information to streamline AT production. The orientation data significantly reduces processing time and allows us to process large blocks of image data at a rapid rate. AT Solution. Although orientation data will be supplied from the IMU, we will still complete an AT solution to verify the ABGPS and IMU data. We will prepare the AT solution on a Z/I Imaging digital photogrammetric workstation using Z/I Imaging ISAT software. ISAT offers a complete softcopy aerotriangulation software suite that includes interior orientation, point mensuration, relative orientation, and a fully analytical simultaneous least squares adjustment with robust error detection. ISAT incorporates the capability to weigh control points on an individual basis and to correct for image deformation, atmospheric refraction, earth curvature, and lens distortion. Aerotriangulation QA/QC. When a block of aerotriangulation has been completed, all reports and supporting documentation will be examined for compliance with project specifications. This testing will include, at a minimum, the following: ‹Inspect ABGPS positions against AT-derived exposure coordinates ‹Compare AT-derived coordinates of independent QA points against ground survey ‹Inspect measurements, residuals, weights, RMSE in AT listings ‹Verify all AT support and measurement files are in archive ‹Verify metadata is complete and in proper format Rectification Type. We will use a cubic convolution resampling method for all orthoimagery rectification. This method preserves fine detail better than the common bilinear algorithm. Our imagery specialist will take extra caution around overpasses and bridges to ensure the correct horizontal location of these features holds true. Tone Balancing. Digital orthoimagery is subject to tonal imbalances due to several factors, including source photography (sun angle, illumination, atmospheric conditions, and date and time of exposure), image characteristics, and image processing. Our ortho specialists will not only tonal balance the individual images, but also will use tonal balancing techniques to the project. This process will eliminate the flight line effect and individual photo effect. Digital Terrain Model (DTM) A newly acquired lidar digital terrain model (DTM) will be employed to orthorectify the imagery. The data will be thoroughly reviewed by Aaron Sale, our orthoimagery supervisor, and he will report any inconsistencies to the lead lidar specialist, Adam Campbell. Radial Displacement. Our ortho production staff will also manually correct radial displacement and distortion of bridges and overpasses through a series of pre-rectification measures and post-processing edits. A thorough examination of these features will be conducted during the interim and final QA/QC checks. Mosaicking. To achieve consistent tone across the project area and to address the overlap between tiles, we will seamlessly mosaic the images. We will select imagery 343 14AYRES | DIGITAL ORTHOIMAGERY AND LIDAR ACQUISITION | CITY OF BOZEMAN, MT Ingenuity, Integrity, and Intelligence. in a way to use the most advantageous area of each photo to maximize color, tone, and contrast, and at the same time reduce building lean and “ghosting,” as well as glare in water bodies. Image mosaicking will be accomplished by a combination of automated tools and manual methods. All seam lines will be placed manually to eliminate the issues of noticeable seam lines through buildings, bridges, and other features. Following the completion of imagery production, a shapefile of seam line locations will be provided to the City. We will use manual editing procedures to provide QA/QC for every tile for visible seam lines in water bodies, warped bridges, and any anomalies that may affect the accuracy or aesthetics of the imagery. We will use photogrammetric software products such as Z/I Imaging’s Digital Ortho- Production Suite: ImageStation OrthoPro, PixelQue, IRAS/c, and Digital Image Analyst. Orthomosaics. Ayres will prepare the project wide mosaic imagery at the original 3-inch pixel resolution for maximum quality and accuracy. In addition to the 3-inch mosaic, both 6-inch and 12-inch resolution orthomosaics will be provided for ease of use for City staff and community members. Providing mosaics at the various resolutions will maximize the accessibility of the mosaic to the City’s user base, allowing selection of the most appropriate resolution based on user requirements and their available processing and rendering capabilities. The 3-inch and 6-inch resolution mosaics will be provided as additional deliverables at no added cost to the City. Accuracy. Resultant orthoimagery will be 3-inch orthos that will conform to National Map Accuracy Standards (NMAS) for 1”=50’ scale mapping; this translates to a horizontal accuracy of +/- 1.7 feet. Orthoimagery Tiling Scheme. Ayres will use the City- provided tiling scheme to deliver edge-matched, non- overlapping tiles. The same tile scheme will be used for the orthoimagery and the lidar. Should the City want to use a different scheme for their 2023 project, Ayres will work with the City to accommodate that request. Digital Orthoimagery Pilot Projects. Early in the imagery production phase, a pilot area consisting of geo-referenced TIF images can be provided to the City for review and feedback. We propose further discussion concerning the best area for review during the project kick-off meeting. Coordinate System/Datum. All mapping products associated with this project will be prepared and delivered in both Montana State Plane NAD83 (2011) meters, NAVD88 meters and UTM Zone 12 NAD83 (2011) meters, or another agreed upon coordinate system. Orthophotography Quality Control Project manager Tyler Kaebisch will be responsible for coordinating the final QA/QC of the orthoimagery. Our highly trained technicians will visually scour the imagery looking for anomalies or potential errors. If further editing is needed, a detailed edit call report will be returned to Ayres to perform corrections as needed. If the data meets specifications, the orthoimagery will be prepared for the final battery of checks. While overseeing the QA/QC, Tyler will work with the City to develop a check-in process for the imagery and a method by which edit calls can be recorded. If the City determines that the data needs further editing, Tyler will determine what action needs to be taken in the orthoimagery process. The Ayres team will conduct the following QC procedures: 1. Create an overview of each deliverable and combine the overviews to inspect overall radiometry, geographic accuracy, and complete coverage. 2. Orthoimagery QA technicians will perform QC on each image. QC forms will be submitted with the Project Planning Manual. 344 15AYRES | DIGITAL ORTHOIMAGERY AND LIDAR ACQUISITION | CITY OF BOZEMAN, MT Ingenuity, Integrity, and Intelligence. A thorough inspection of every ortho image tile will be conducted with an evaluation criteria based on: ‹Seamless geometry ‹Seamless radiometry ‹Appropriate dynamic range ‹Appropriate mean intensity ‹Appropriate contrast ‹Detection of data dropouts ‹Complete coverage ‹Appropriate resolution ‹Shadows, clouds, low sun angle ‹Bridge, overpass distortion Lidar Data Processing Ayres has extensive experience processing lidar data to meet strict specifications over large areas. Our technicians will use several software packages specifically designed for lidar processing. These software packages include GeoCue and the TerraSolid suite of processing components. The GeoCue software is a database management system for housing the lidar dataset (usually multiple gigabytes to terabytes in size). Additionally, the GeoCue program incorporates a thorough checklist of processing steps and QA/QC procedures that assist the technicians in the lidar workflow. Hydro-flattening Breaklines. We will collect new breaklines in a 3-D environment to support appropriate modeling and hydro-flattening of contours along water bodies. Whereas some geospatial firms take the approach of using existing hydro vectors or heads-up digitized “breaklines” as a means of cutting processing cost, our team collects new breaklines in a 3-D environment. Our approach will ultimately result in a much truer horizontal and vertical position of hydrographic features and will more accurately reflect conditions at the time of lidar acquisition. The result will be a more accurate surface model and cleaner contour generation across the entire project. Hydro breaklines are collected using lidargrammetry. This process involves manipulating the lidar data’s intensity information to create a metrically sound stereo environment. From this generated “imagery,” dependable breaklines can be photogrammetrically compiled. This capability allows us to offer high-accuracy terrain data from lidar without supplemental aerial imagery. Breakline polygons are formed to represent open water bodies, including lakes, and streams. While the current USGS 3-DEP base project standards call for hydro breaklines to be created for streams wider than 100 feet and ponded water of two (2) acres or greater, it is important to note that for the City of Bozeman project, we will be collecting hydro breaklines according to the following specifications:• Double-lined breaklines for streams and ditches greater than 2 meters wide• Water bodies (ponds, lakes, reservoirs) greater than ¼ acre in size Additional breaklines will be collected for bridges, culverts, and streams and ditches less than 2 meters wide for production of a hydro-enforced DEM and Elevation Derived Hydrography (EDH). Additional details for the below in the Hydrographic Mapping Services sections. Point Cloud Automated Classification. The TerraSolid suite of software is used to automate the initial classification of the lidar point cloud based on a set of predetermined parameters. It is at this point that we will refer to the ground cover research (natural and cultural features) within the project area. This will be very useful in determining the algorithms most appropriate for the initial automated lidar classification. (Some algorithms/filters recognize the ground in forests well, while others have greater capability in urban areas.) During this process each point is given an initial classification based on the point’s coordinates and its relation to its neighbors. The initial values offer a coarse and inexact dataset but are a good starting point. It is during this step that “overlap” points are automatically classified (those originating from neighboring flight lines). 345 16AYRES | DIGITAL ORTHOIMAGERY AND LIDAR ACQUISITION | CITY OF BOZEMAN, MT Ingenuity, Integrity, and Intelligence. This classification is based on information gathered from the AGPS and IMU data. Point Cloud Manual Classification. TerraSolid is also used for the subsequent manual classification of the lidar points. This software permits technicians to view the point cloud in a number of ways and within a number of contexts provided by other available datasets such as orthos or road centerline files. This combination of automated and manual processes provides a cost-effective approach to the tedious practice of point classification, while still allowing our talented technicians to review and confirm the results of automation. Current USGS base specifications require delivered point cloud in LAS v1.4 format. Classification includes: • Class 1: Processed, but unclassified • Class 2: Bare-earth ground • Class 6: Buildings (automated & manual, if necessary) • Class 7: Low noise • Class 9: Water • Class 17: Bridge decks • Class 18: High noise • Class 20: Ignored ground (breakline proximity) Surface Models. Once the hydro-breakines and point cloud classification are complete, Ayres will derive the following surface models:• 1-foot pixel resolution Digital Terrain Model (DTM): Elevation data points will be delivered as either a regular or irregular DTM in esri geodatabase compatible format• 1-foot pixel resolution Digital Elevation Model (DEM): Gridded raster representation in esri geodatabase compatible format • 1-foot pixel resolution Hillshade: Grayscale 3D representation of the bare-earth surface in esri geodatabase compatible format Contours. Ayres can deliver 1-foot contours processed from the lidar surface. After the DTM processing is complete, our GIS technicians will generate the final contours using Boeing-Autometric KDMS software, a TIN-based system. The index contours, intermediate contours, index depressions, and intermediate depressions will be clipped to the tile boundaries. Each contour line will be attributed with the elevation value. The contours will then be topologically cleaned to ensure a seamless dataset across the project area and translated to an .esri geodatabase. Lidar-Specific QC Quality control of lidar is a system of routine technical activities to measure and control the quality of the mapping deliverables and services as they are being performed. The QC system is designed to: • Provide routine and consistent checks to ensure data integrity, correctness, and completeness • Identify and address errors and omissions • Document and archive inventory material and record all QC activities Ayres’ lidar QA/QC specialist, Adam Campbell, CMS-Lidar, GISP; will lead the lidar QA/QC process. In that capacity, he will work with project manager Tyler Kaebisch, to fulfill our team’s commitment to providing quality products and services. In his supervisory role, Adam has a number of specific technical workflows at his disposal. The following highlights the primary steps in a lidar QC plan: 346 17AYRES | DIGITAL ORTHOIMAGERY AND LIDAR ACQUISITION | CITY OF BOZEMAN, MT Ingenuity, Integrity, and Intelligence. a. Review mission logs and examine mission parameters b. Vertical accuracy validation c. Automated edit of the raw data d. Visual inspection of data e. QC of lidar classification f. Systematic review of point clouds g. Surface model verification (a) Review Mission Logs and Parameters. The first step in the QC process is to review the mission parameters against the statement of work and the overall project objectives. Once the flight specifications are confirmed, the base station data sheets and AGPS data will be reviewed to determine that they meet required tolerance and minimum requirement for operation. Additionally, the raw data will be reviewed to verify project area coverage, individual swath overlap parameters, and appropriate point density. (b) Vertical Accuracy Validation. Using a “Z-probe” methodology, the lidar supervisor will compare surveyed ground control, independent check points, and published monuments against the lidar bare-earth surface. This statistical test will verify that the lidar acquisition and calibration has been completed to meet the accuracy objective of the project. (c) Automated Edits. This process will ensure the removal of extraneous points and artifacts. Additionally, it will determine that all desired features have been retained within the dataset. Filtered and edited data are subjected to semi-automated algorithms defined within our internal production manuals. (d) Visual Inspection. A series of quantitative and visual procedures is employed to validate the accuracy and consistency of the filtered and edited data. Importantly, human eyes will review every square mile of the project. A rigorous peer-to-peer system, in addition to the overall QA/QC process, results in a substantial focus on quality and precision. (e) QC of Lidar Classification. After querying specific tiles into their workspace, our technicians will begin scanning through the tile, searching for areas where the automated classification routine erred. They will view the datasets from numerous angles, generate triangulated irregular networks (TINs) or contours, and consult shaded relief models to fully understand the data model at each point of their analysis. Using this information and technical experience, our technicians will detect, investigate, and correct any areas that display anomalies – i.e., areas where the automated classifications show weakness. (f) Systematic Review of Point Clouds. The technicians will systematically work their way through anomalous areas – taking narrow swaths of data, viewing the swath from isometric and profile viewpoints, and reclassifying each point in accordance with their expertise. Technicians focus on eligible classifications, which include “unclassified” (buildings, vegetation, and other non-terrain/non-noise features), “ground,” and “noise.” Points falling under the “water” and “overlap” categories are weeded out effectively during automated procedures. (g) Surface Model Verification. After this process is complete for the area, the technician will generate new TINs and contours to determine that the anomaly has been fully addressed. If it has, the technician will continue scanning the tile for other anomalies. This procedure will continue until the tile has been determined to meet or exceed project specifications. At this point, the technician will query the adjacent tile and continue working. Planimetric Mapping Services We understand there is a need for new planimetric mapping features for the project area. New planimetric mapping of Sidewalk Centerlines will be collected for the 21 square mile City Limits project area, while Building Footprints with heights will be collected for the entire 78.7 square miles project area. Our process ensures feature alignment is congruent with coinciding features for provision of a seamless dataset. The final product for all planimetric features will be consistent with National Map Accuracy Standards for 1” = 50’ horizontal map scale. 347 18AYRES | DIGITAL ORTHOIMAGERY AND LIDAR ACQUISITION | CITY OF BOZEMAN, MT Ingenuity, Integrity, and Intelligence. Building Footprints. Ayres will collect 2D building footprints for the entire project area derived from the Lidar buildings classification collected for this project. Building footprints will be digitized at the building roof edge (drip line) for structures with a minimum size of 100’ x 100’. Buildings will be topologically structured and delivered as 2D flattened polygons in ESRI geodatabase format. In areas where buildings meet either pavement edge or impervious surface features, a topology will be run to ensure seamless line work between different feature types. Buildings will have a maximum height above ground as at attribute within the attribute table. Sidewalk Centerlines. Ayres will stereo-graphically compile all sidewalk centerlines within the City limits. All public sidewalk centerlines will be captured. Ayres will review any existing City polygon sidewalk inventories to aid in identifying potential areas of change. Sidewalk centerlines will be captured and prepared as polylines. The mapping will be delivered in ESRI geodatabase format. Hydrographic Mapping Services We understand there is a need for new hydrographic mapping features for the project area. Updating watercourse hydrography for the 78.7 square mile project area will greatly benefit any potential drainage and storm water studies the City intends to perform in the future. In order to correctly capture all drainage and depressions along the landscape, Ayres recommends collecting a culvert inventory dataset from the lidar and imagery to ensure water modeling will replicate the true flow of water within the project area. If the City already possesses a recent culvert inventory database, Ayres will use it to ensure proper representation of water flow. By using the lidar DEM surface and the culvert inventory, a hydro-enforced DEM will be created allowing all water conveyance features across the landscape to be captured. 3D Hydrographic Mapping from lidar. Ayres uses the ArcHydro toolset to derive intermediate lidar raster products and ultimately polylines representative of accumulated flow across the landscape. Using the hydro- modified DEM, an interative process of creating flow directions, contributing areas, and stream raster grids will be generated as part of hydrography processing. Elevation Derived Hydrography will replicate the flow of water at a 1 : 2,400 scale. Ayres will work with the City to determine the level of detail needed to capture the river, streams, drainages, and ditches within the project area. The following hyrdographic features will be captured: Culverts and Bridges• Breaklines will cut through culverts and bridges and will allow water to flow from the tops of hills all the way down through the stream network. A hydro- enforced DEM will be produced with the lidar DEM and culvert and bridge breakline datasets. Ponds and Lakes• Ponded water of 1/4 acre and larger will be captured as part of the hydrobreakline process within the standard lidar processing deliverables. Rivers, Streams, and Ditches• Rivers, streams, and ditches 2 meters and wider will be captured as part of the hydrobreakline process within the standard lidar processing deliverables.• Rivers, streams, and ditches less than 2 meters in width will be captured as polylines with the ArcHydro 3D Hydro mapping tools. 348 19AYRES | DIGITAL ORTHOIMAGERY AND LIDAR ACQUISITION | CITY OF BOZEMAN, MT Ingenuity, Integrity, and Intelligence. Deliverables D) SCOPE OF PROJECT • Project plan• Sample imagery for pilot area review• 4-band orthoimages by tile, GeoTIFF format• 4-band Orthomosaic for entire City provided at 3-inch, 6-inch and 12-inch resolution, MrSID format• Bridge and Overpass Breaklines, esri shapefile format• Raw and Classified Lidar Point Coulds, LAS version 1.4 format• Hydro-Breaklines, esri shapefile format• Culvert and Bridge Breaklines, esri shapefile format• Elevation Derived Hydrography Breaklines, esri shapefile format• Lidar DEM, DTM, Hillshade, Hydro-enforced DEM, 1-foot pixel, geotif or esri geodatabase compatible format • 1-foot Contours, esri shapefile format• Planimetric Mapping Features ‹Sidewalk Centerlines, within City Limits, esri shapefile format ‹ 2D Building footprints with height attributes, esri shapefile format• Reports ‹Flight plan and logs ‹Calibration report ‹Survey control report, with quality check shots ‹Aerial triangulation report ‹FGDC metadata, .xml format ‹Progress reports ‹Final project report Data Delivery An external hard drive will be delivered to the City with all of the deliverables available to upload into the City GIS. Ownership Ayres has always assigned ownership and copyright to our clients at the completion of a project and will do the same with this project. Schedule Ayres proposes the following schedule to complete the City’s project successfully. We are open to adjustments to this schedule based on input from the City of Bozeman, including expedited delivery of pilot areas and final deliverables. MILESTONE DATE Ground control survey April 1 to 30, 2024 Aerial imagery acquisition April 1 to 30, 2024 (as conditions permit) Lidar acquisition April 1 to 30, 2024 (as conditions permit) Delivery of pilot area June 1, 2024 Initial delivery of orthoimagery and lidar July 15, 2024 City review period of lidar and imagery July 15 to July 30, 2024 Final delivery of lidar and imagery products Approximately July 31, 2024 Initial delivery of building footprints, sidewalk centerlines, and hydrography products August 15, 2024 City review period of building footprints, sidewalk centerlines, and hydrography products August 15 to August 30, 2024 Final delivery of all product Approximately August 30, 2024 349 20AYRES | DIGITAL ORTHOIMAGERY AND LIDAR ACQUISITION | CITY OF BOZEMAN, MT Ingenuity, Integrity, and Intelligence. E) RELATED EXPERIENCE Wisconsin Regional Orthoimagery Consortium – Imagery and Lidar The WROC is a multi-entity group whose goal is to build and sustain a multiparticipant program to acquire elevation data and digital orthoimagery throughout Wisconsin for use in tasks ranging from tax assessment to emergency management. WROC 2020 marked the sixth time since 1995 that a regional consortium in Wisconsin has worked together with this goal. Ayres was selected to manage and facilitate again for the 2025 edition. During the 2020 cycle, 11,000 square miles of aerial lidar and 56,000 square miles of aerial imagery was acquired, with the Ayres team delivering customized datasets to more than 100 separate entities. In 2014 and 2015, this program resulted high-accuracy lidar for topographic mapping in 17 counties. The public has gained access to statewide aerial imagery coverage through this program. Over the years public and private partners have contributed significant funds toward imagery and lidar projects in exchange for access to these high-quality spatial datasets. Partners include utilities, electric cooperatives, tribes, municipalities, private industry, and state and federal agencies. Examples of diverse products within the WROC program include: • Lidar with 1-foot and 2-foot contours for floodplain studies • Detailed planimetric mapping for GIS • Multispectral imagery for environmental analysis and forestry• 6-inch or 12-inch resolution orthoimagery for countywide projects • 3-inch resolution for municipalities • 18-inch resolution derivative regional datasets To facilitate a cooperative approach for orthoimagery data acquisition, WROC and Ayres worked with the Wisconsin land information community to strengthen relationships among local, regional, state, and federal entities, as well as tribes and utilities. The program is designed to allow all participants to receive products and services tailored to their individual geospatial needs. Participants were given a range of orthoimagery options from 3-inch up to 12-inch resolution in addition to specialized formatting and coordinate system outputs. Customized photogrammetric and lidar services also make up a significant part of the WROC program. We collected countywide lidar in conjunction with new aerial imagery. Ayres was able to use the surveyed lidar data to process the orthoimagery to meet and exceed ASPRS Class 2 horizontal accuracy specifications. Lidar data was also collected in conjunction with an NSSDA survey to check its accuracy. Client Information North Central Wisconsin Regional Planning Commission 210 McClellan Street, Suite 210 Wausau, WI 54403 350 21AYRES | DIGITAL ORTHOIMAGERY AND LIDAR ACQUISITION | CITY OF BOZEMAN, MT Ingenuity, Integrity, and Intelligence. Bismark-Mandan MPO Orthoimagery and Lidar, 2020 The Bismarck-Mandan Metropolitan Planning Organization (MPO) kicked off its partnership with Ayres in 2009 to collect aerial imagery and lidar to modernize its base mapping data. The MPO has since acquired 6-inch imagery and 1-foot contours derived from lidar in 2013 and 2016. In 2020, Ayres provided the MPO with higher resolution data products, including 3-inch pixel orthos and lidar to support 1-foot contours and high accuracy surface modeling and change detection. At Ayres we’re big supporters of both formal and informal regional organizations banding together for aerial mapping services. Through programs such as this one, we’re able to facilitate collaboration among organizations in need of similar services, which becomes a mutually beneficial relationship. This approach is not only extremely cost effective but also allows for the growth of standardized, high-quality geospatial datasets across regional borders. Project Details (March to November 2020):• 395 square miles of high-resolution 3” orthoimagery• 395 square miles of lidar to support 1-foot contours Idaho Transportation Department Payette River Highway 21 Bridge Mapping 2019 Ayres acquired 20 ppsm aerial lidar and 3-inch imagery and provided a digital elevation model (DEM), InRoads digital terrain model (DTM), and orthoimagery for approximately 1 square mile surrounding the Highway 21 Bridge over the Payette River in Lowman, Idaho. Client Information Bismark-Mandan Metropolitan Planning Organization 221 N. 5th Street Bismark, ND 58506 Client Information Idaho Transportation Department 3311 W. State Street Boise, ID 83707 351 22AYRES | DIGITAL ORTHOIMAGERY AND LIDAR ACQUISITION | CITY OF BOZEMAN, MT Ingenuity, Integrity, and Intelligence. Schweitzer Mountain Resort Lidar, Orthoimagery, and Planimetric Mapping 2021 Ayres was retained by Schweitzer Mountain Properties and construction management agent OAC services of Seattle to acquire aerial imagery and high density lidar and to provide survey and mapping of the Schweitzer Mountain Resort near Sandpoint, Idaho. The 7,000-acre resort in the rugged Selkirk Mountains of the northern Idaho panhandle is considered to be one of the best family-friendly ski resorts in the Pacific Northwest. This mapping will support the initial planning and design stages of a 10-year expansion effort for the resort. Ayres performed the ground control targeting survey and acquired 3-inch color aerial imagery and high-density 20 ppsm lidar with a simultaneous collection aerial mission and provided our client with digital orthoimagery including large scale laminated color wall maps, colorized lidar point clouds, digital elevation model, contour mapping, and 50 scale planimetric mapping of roads, buildings and other pertinent infrastructure. City of Laramie, Wyoming, Aerial Imagery and Lidar 2017 The City of Laramie selected Ayres to provide aerial imagery, lidar, and planimetric mapping services through a quality-based selection process during spring 2017. The City wanted to collect a total of 97 square miles of data that not only covered the City but also some surrounding rural areas and a ranch property owned by the City. The City planned to update imagery and topographic data collected in 2009, which is widely used by City Engineering, Planning, Streets, Utilities, Parks, and GIS Departments. Included in the 2017 project was a combination of 3-inch and 6-inch imagery for urban and rural areas respectively, as well as the provision of lidar for the generation of 1-foot contours and a new surface model. The City also requested planimetric mapping for all hydrographic features and pavement striping throughout the project area. Client Information OAC 2200 1st Avenue South, Suite 200 Seattle, WA 98134 Client Information City of Laramie 406 Ivinson Street Laramie, WY 82070 352 23AYRES | DIGITAL ORTHOIMAGERY AND LIDAR ACQUISITION | CITY OF BOZEMAN, MT Ingenuity, Integrity, and Intelligence. City of Loveland Lidar and Orthoimagery In the spring of 2021, Ayres was selected to provide lidar and orthoimagery mapping services for the City of Loveland located in southeastern Larimer County, Colorado. For this project, Ayres used a calibrated lidar sensor and digital photogrammetric camera for a simultaneous collection of high-density aerial lidar and 3-inch photography to derive orthoimagery, 1-foot contours, and a detailed surface model. Lidar and aerial imagery were collected and processed for 70 square miles, which included the City of Loveland Growth Management Area and the Loveland Water Storage Area. Quality Level 1 lidar was collected at 8 pulses per square meter, and the calibrated lidar point cloud supports a bare earth surface model meeting a vertical accuracy of RMSEz of <= 10 cm, and NVA of <= 19.6 cm at the 95% confidence interval for the point cloud and digital elevation model (DEM). The 3-inch digital orthoimagery meets ASPRS Level 2 horizontal accuracy standards of 0.7 feet RMSE, which equates to 1.2 feet at the 95% confidence interval according to NSSDA standards. The calibrated lidar point cloud was classified to the USGS standardized base classification scheme. A DEM consisting of bare-earth ground points was also derived to support the interpolation of 1-foot interval contours to National Map Accuracy Standards. Additionally, Ayres complied hydro-flattened breaklines for ponded water that is two acres or greater and double line streams that are 20-feet in width or greater, which were used in the creation of the bare earth DEM and contours. Ayres collected all ground control survey points required to complete this project. Final deliverables to the City of Loveland included: ‹Raw and classified lidar point clouds in .Las format ‹A DEM surface in GeoTIFF format ‹1-foot contours in Esri file Geodatabase ‹3-inch color orthoimagery tiles in GeoTIFF and MrSID format ‹City-wide orthomosaics in GeoTIFF and MrSID format ‹FGDC-compliant metadata ‹Survey, control, and vertical accuracy reports The City again selected Ayres for work in the fall of 2022 using the stereo pairs from the digital aerial imagery to derive detailed planimetric mapping of the edge of asphalt for all streets within City of Loveland’s growth management area, approximately 66 square miles. The planimetric mapping features identified from the imagery are being mapped to 1” = 50’ scale mapping (1.0 feet RMSE using the National Standard for Spatial Data Accuracy [NSSDA] testing procedures). Client Information City of Loveland 500 E. 3rd Street Loveland, CO 80537 353 24AYRES | DIGITAL ORTHOIMAGERY AND LIDAR ACQUISITION | CITY OF BOZEMAN, MT Ingenuity, Integrity, and Intelligence. Illinois GIS Consortium: Lidar, Aerial Imagery, and Planimetric Mapping The Illinois-based GIS Consortium (GISC) represents one of Ayres’ most complex geospatial programs and exemplifies our background in performing large-scale mapping in urban environments. The GISC is a group of more than 30 communities in the Chicago region that work together to develop GIS solutions to support a wide range of applications, including municipal engineering, planning, forestry, and public safety. Ayres has been providing high-accuracy mapping and surveying services to member communities since the 1990s. The GISC continues to work with Ayres year after year; we are completing the 2023 mapping projects and are currently planning for the 2024 data collections and mapping initiatives.   The mapping performed for the GISC is designed primarily for daily use in municipal engineering. Annual aerial missions maintain up-to-date base mapping data, consisting of 3-inch resolution orthoimagery, 1” = 50’ scale planimetrics, and 1-foot interval contours derived from high-resolution lidar. Ancillary products have included leaf-on aerial imagery for urban forestry applications, 3-D modeling of structures, and tall building-lean mitigation in business districts. Most of the GISC falls within a 10-nautical-mile radius of Chicago’s O’Hare International Airport. This is one of the most difficult airspace environments in the United States and presents unique challenges during each flying season. Ayres has built strong relationships with the Federal Aviation Administration, Terminal Radar Approach Control Facilities, and the O’Hare Air Traffic Control Tower. Recurring temporary flight restrictions add another dimension to security restrictions in the area. Client Information GIS Consortium 188 A Skokie Valley Road Highland Park, IL 60035 354 25AYRES | DIGITAL ORTHOIMAGERY AND LIDAR ACQUISITION | CITY OF BOZEMAN, MT Ingenuity, Integrity, and Intelligence. MDT Bridge Scour Study, Multiple Locations in Montana This Montana Department of Transportation (MDT) project was a bridge scour study of 13 different bridge sites located throughout the state. KLJ worked with Ayres as a subconsultant providing surveying and hydrologic analysis support. A hydrological study of each site included surveying the bridge structure and river channel both directions for two-thirds of a mile. Two of the sites along the Yellowstone River required aerial lidar surveys for the upland areas. The first site was located in Livingston and the second near Custer. These locations did not have publicly available lidar to analyze the upland areas. KLJ laid ground control points and ground proofing points for each of these locations. For every site KLJ established MDT approved control points using static bases lines and network adjustments. Perma Curves (MT-200) STTP-F 6-1(36)83, Paradise, MT This MDT project is the design of a five-mile stretch of Highway 200 along the Flathead River east of Paradise. The highway traverses a dangerous corridor between rock cliff faces and the Flathead River. A portion of the project lies on the Flathead Indian Reservation and includes culturally sensitive areas to CSKT. The project corridor was flown with a helicopter enabled with a lidar sensor. Ground control panels were placed along the corridor. The crews coordinated access to private land to place that targets and operated GPS base stations during the flight. Cross-sections of the corridor were used to ground truthing the flights. Aeronautical Survey and Airport Airspace Analysis, Laurel, MT This Aeronautical Survey with Vertical Guidance for an Airport Layout Plan developed Instrument Procedure Development for the airport serving Laurel, Montana. Ground survey included establishing control points using GPS baselines, tie in photogrammetry control features, identify/measure vertical obstructions, and topographical survey of the runway and air traffic control apparatus. Using NGS established GPS control points and KLJ established aerial targets, photogrammetry and lidar was used to yield two-foot contour intervals. All the survey data was then transferred to AGIS as part of the final project report. Client Information Montana Department of Transportation 2701 Prospect Avenue Helena, MT 59620 KLJ PROJECT EXPERIENCE 355 26AYRES | DIGITAL ORTHOIMAGERY AND LIDAR ACQUISITION | CITY OF BOZEMAN, MT Ingenuity, Integrity, and Intelligence. City of Bozeman Experience (KLJ) NEURD Roadway Design and Construction Projects, Bozeman, MT – KLJ provided design and construction of more than 5,000 linear feet of street and utility reconstruction projects through the City of Bozeman’s Northeast Urban Renewal District (NEURD). The projects consist of complete removal and replacement of all public sanitary sewer and storm drain systems within the project corridor, removal and replacement of public water systems, and full-depth reconstruction of new urban street sections. Street reconstruction consisted of dedicated vehicular travel lanes with on-street parking, as well as shared-use travel lanes and dedicated bike lanes, traffic calming elements consisting of intersection bulb-outs, traffic circle, and a section of center-raised median. Construction also consisted of numerous drive approaches and pedestrian and Americans with Disabilities Act (ADA) facility improvements. KLJ led multiple neighborhood meetings to communicate construction requirements and schedules and coordinate resident concerns and business requirements. Permitting acquisition for these projects was required to secure six separate permits from four separate regulatory agencies. We also provided construction administration services and assisted with RPR services. North Wallace Avenue – The North Wallace Avenue project required a significant amount of coordination to minimize impacts to mature street trees and existing utilities. Design included 5,000 linear feet of new roadway pavement; new curbs and gutters; ADA facilities; an upsized 18-, 24-, and 30-inch storm drain trunk main and curb inlets; a storm retention pond; new stormwater pre-treatment structure; replacement of existing water and sanitary sewer systems, including upsizing Front Street interceptor sewer to a 24-inch main with 36-inch jack and bored cased crossing of Bozeman Creek; and a new concrete wingwall for the East Tamarack Street Bridge over Bozeman Creek. Extensive utility relocations were required with many undocumented and abandoned utilities dating back to the turn of the century. East Tamarack Street Reconstruction – KLJ provided roadway and sanitary sewer main improvements for a 0.20- mile urban roadway reconstruction project. KLJ was hired to design the reconstruction of one of the oldest streets in Bozeman. Included in the design are 0.20 miles of roadway reconstruction, upsizing the existing sanitary sewer main to a new 24-inch diameter sanitary sewer, storm drain improvements, new five-foot sidewalk on both sides of the street, numerous ADA facilities, a new dedicated bicycle lane, new roadway signage, new pavement markings, and utility coordination. East Peach Street Reconstruction – The project was a 0.25- mile urban roadway reconstruction project. KLJ designed reconstruction of one of the oldest streets in Bozeman. Included in the design were 0.25 miles of roadway reconstruction, new eight-inch water main, new eight-inch sanitary sewer main, storm drain improvements, new sidewalk, numerous ADA facilities, new roadway signage, new pavement markings, and utility coordination. 356 27AYRES | DIGITAL ORTHOIMAGERY AND LIDAR ACQUISITION | CITY OF BOZEMAN, MT Ingenuity, Integrity, and Intelligence. Ayres is a nationwide professional consulting firm providing services in photogrammetry, lidar, and digital mapping; GIS; survey; civil, structural, transportation, river, and water resources engineering; environmental science; planning; architecture; landscape architecture; and mechanical, electrical, and plumbing engineering. Our employee-owned firm was founded in 1959 by Owen Ayres, an engineer who instituted many of the practices we follow: working with clients as a partner; offering smart, creative solutions; conducting business with the utmost integrity; and providing employees challenges and the opportunity to advance and invest in their company. Incorporated in Eau Claire, Wisconsin, Ayres now employs over 350 people. Ayres has 11 offices in Wisconsin, Colorado, Wyoming, Florida, Minnesota, and California. Ayres’ geospatial division is based in Madison, Wisconsin. The geospatial division originated as Alster & Associates Photogrammetric Engineering (founded in 1951), who merged with Ayres in 1978. The geospatial division has over 60 people. Credentials held by these employees include multiple Certified Photogrammetrists, GISPs, Certified Mapping Scientists in several specialties, and Professional Land Surveyors. There are also many highly trained technicians and project managers, all of whom have formal education in the discipline of geography. As shown in the Related Experience section, Ayres’ staff has brought unparalleled experience providing geospatial and survey to municipalities throughout the nation. This breadth of expertise and deep capacity means that Ayres can simultaneously perform and complete a variety of projects on schedule and meeting or exceeding client needs and expectations. Ayres’ geospatial division provides a diverse range of mapping services to clients in the West and nationally, including: • Digital orthoimagery • Planimetric and topographic mapping • Digital terrain modeling (DTM) • Remote sensing • GIS consulting, training, and development • GPS and conventional survey • Aerial lidar (fixed wing and helicopter) • Oblique aerial imagery • Ground-based lidar (mobile and HD scanning) Ayres has been providing aerial imagery to local governments for over 25 years. Ayres helped launch and develop what is now known as the Wisconsin Regional Orthoimagery Consortium (WROC). Beginning in 1995 with one regional planning organization covering a handful of counties, Ayres helped recruit members and partners, manage funding participation and contracts, and grow the available products and services until WROC is now a statewide program that includes state agencies, county and municipal governments, utilities, and more. Ayres is the only firm that has ever held the contract throughout WROC’s history, delivering imagery, lidar, and related mapping products. In the past five years Ayres has completed nearly 700 aerial mapping projects. These projects took place in 24 states, including Montana and all its surrounding states. Ayres’ approach to managing the City of Bozeman’s project will begin with a dedication to understanding your needs and designing solutions that address them. For example, Bozeman is a very attractive area for relocation, ranking first in the Policom Economic Strength Rankings for Micropolitan Areas in 2023 for the fifth consecutive year. Due to the rapid rate of growth, there will be substantial updates to the building footprints and changes to the imagery. Ayres has designated a project manager who is experienced with municipalities experiencing rapid growth. Ayres’ proposed project manager, Tyler Kaebisch, will coordinate the data collection and processing efforts for the City of Bozeman project. Tyler has experience managing geospatial projects throughout the country, with a focus on the western United States. Tyler is experienced in project management and has a strong history of involvement in geospatial projects, with over 14 years of experience in GIS, remote sensing and project F) STATEMENT OF QUALIFICATIONS 357 28AYRES | DIGITAL ORTHOIMAGERY AND LIDAR ACQUISITION | CITY OF BOZEMAN, MT Ingenuity, Integrity, and Intelligence. management. Prior to joining Ayres, Tyler servced as a remote sensing specialist and an inventory and monitoring GIS specialist for the U.S. Bureau of Reclamation and the U.S. Forest Service in the Rocky Mountain region. He has also been involved in numerous projects using aerial mapping to support mitigation and recovery after natural disasters. As project manager, Tyler will update City of Bozeman personnel during the project to discuss pertinent project issues as needed. Additionally, he will participate in weekly internal meetings with Ayres supervisors to assess the status of the project and address key technical issues, thereby maintaining high standards for product specifications and keeping the project on track to meet the timeframe agreed upon. One important difference about Ayres compared to some geospatial firms is that all work is performed in the United States. Ayres possesses more than enough resources and uses efficient processes to allow us to accomplish this project with skilled professionals based in the United States. There remain only a few geospatial firms that have their entire production staff within the country; Ayres is proud to be among them. Ayres’ subconsultants are KLJ for control survey and 95West for aerial imagery acquisition. Ayres has a successful history with both firms. KLJ has four offices in Montana, including one in Bozeman, and has five surveyors who hold Professional Land Surveyor licensure with the State of Montana. KLJ’s survey lead, Justin Stefanik, began his surveying career in Bozeman and is familiar with the City’s requirements. KLJ has performed a number of projects for the City and served as a sub to Ayres on a contract with the Montana Department of Transportation to perform scour studies on 13 bridges. Under this project, KLJ provided survey control for aerial lidar data. 95West is a wholly owned subsidiary of Widseth Smith Nolting and Associates, Inc., which is incorporated under the State of Minnesota. For nearly 60 years 95West (formally KBM Geospatial) has been providing professional consulting services in aerial photography, geospatial mapping, civil and electrical engineering, orthophotography, GIS, lidar, and photogrammetric mapping services. 95West’s equipment positions them to provide the best leading-edge technology available in the geospatial industry. With a recent purchase of a Cessna Grand Caravan aircraft equipped with a Vexcel UltraCam Eagle Mark 3 imaging sensor and a Riegl VQ-1560 II-S Lidar scanning system, this allows 95West to offer high- resolution imagery and the highest density lidar data capture on the Riegl fixed-wing market. The UltraCam Eagle is a large format, frame-based imaging sensor capable of collecting four-band imagery. What sets 95West apart from other fixed-wing providers is they are the first company in the United States to offer large-format imagery and high-density lidar solutions to be acquired simultaneously. The plane and equipment are based in a hangar located at the Grand Forks International Airport in Grand Forks, ND. All services performed and products produced for the proposed contract will be performed under the direct supervision of an active ASPRS Certified Photogrammetrist or Certified Mapping Scientist. In addition, 95West acknowledges that all mapping will meet or exceed ASPRS Positional Accuracy Standards for Digital Geospatial Data. 95West provides aerial acquisition and geospatial services throughout North America. They are committed to offering unique solutions using cutting-edge equipment to deliver services that are tailored to the client’s needs. Detailed information on the key members of the Ayres team – and their availability during relevant time periods to the City of Bozeman’s project – can be found in the Key Personnel section of this submittal. 358 29AYRES | DIGITAL ORTHOIMAGERY AND LIDAR ACQUISITION | CITY OF BOZEMAN, MT Ingenuity, Integrity, and Intelligence. Our experience has shown us that close and open communication with our clients is the foundation for a successful working relationship. We place a high priority on understanding our clients’ needs, openly addressing issues, involving clients in decision-making, and resolving project concerns. In every project we undertake, our goal is always client satisfaction. We invite you to contact the references listed below – for whom our firm has provided similar services – for a firsthand account of our work. City of Loveland – Lidar, Aerial Imagery, and Planimetric Mapping Client: City of Loveland Address: 500 E. Third St., Loveland, CO 80537 Contact: Chris Carlson Phone: 970.962.2774 Email: Chris.Carlson@CityofLoveland.org Bismarck-Mandan Metropolitan Planning Organization Client: Bismarck-Mandan Metropolitan Planning Organization Address: 221 N. 5th Street, Bismarck, ND 58501 Contact: Rachel Lukaszewski Phone: 701.355.1852 Email: rlukaszewski@bismarcknd.gov Illinois GIS Consortium – Lidar, Aerial Imagery, and Planimetric Mapping Client: Municipal GIS Partners (MGP) Address: 701 Lee Street #1020, Des Plaines, IL 60016 Contact: Andrew Shuman Phone: 224.369.0635 Email: ashuman@mgpinc.com G) REFERENCES “I had really high expectations from the start because I knew we had an incredible team of professionals working on this project, and yet (Ayres) still exceeded my expectations.” Mark Sears Natural Areas Program Manager City of Fort Collins, CO 359 30AYRES | DIGITAL ORTHOIMAGERY AND LIDAR ACQUISITION | CITY OF BOZEMAN, MT Ingenuity, Integrity, and Intelligence. H) PRESENT & PROJECTED WORKLOADS The following table and chart represent our current capacity and workload projections to assist the City of Bozeman on its digital orthoimagery and lidar acquisition project. NAME % EST. CAPACITY % TIME TO PROJECT Tyler Kaebisch 80%15% Aaron Sale 40%25% Adam Campbell 40%30% Burt Lindquist 45%30% Amber Tomaras 60%30% Imagery Technicians 70%20% KLJ Survey Staff 40%25% 95West Flight Staff 30%15% “Ayres has consistently produced quality work in a timely manner, and with the highest degree of professionalism. They work closely with me ... to resolve issues and discuss ideas, and are always available when needed.” Jennifer Spinelli Assistant Planner City of Montrose, CO AYRES WORKLOAD PROJECTIONS 2024 March April May June July August September October CDOT Lidar Processing GISC: IL Lidar, Orthoimagery, & Plannimetric Mapping WROC: Wisconsin Lidar and Orthoimagery 360 31AYRES | DIGITAL ORTHOIMAGERY AND LIDAR ACQUISITION | CITY OF BOZEMAN, MT Ingenuity, Integrity, and Intelligence. “Ayres is a trusted commodity in our community. They’ve been very good to work with; they’ve provided everything they said they would and usually a little bit more.” Steve Tilton Former Assistant Village Manager, Village of Tinley Park, IL We know that every project we complete is really about people. That’s why we have assigned our best people to work with the City of Bozeman staff and project stakeholders to make sure your project meets your needs. Our team will be led by Tyler Kaebisch, a geospatial project manager with extensive experience in digital mapping. Tyler is proactive in identifying and addressing challenges to keep the project on schedule and is committed to keeping major stakeholders informed throughout the course of the project. Ayres’ staff members approach each project knowing the services we provide bring noticeable improvements for the communities for which we work and improve lives in the process. Through years of successful projects, we know that assigning qualified staff to your project and providing good communication are vital for maintaining trust and confidence. Resumes for key members of our team are included on the following pages. I) KEY PERSONNEL 361 32AYRES | DIGITAL ORTHOIMAGERY AND LIDAR ACQUISITION | CITY OF BOZEMAN, MT Tyler Kaebisch Geospatial Project Manager Tyler joined Ayres in 2019 as a project manager in the aerial mapping group. He has used his communication and organizational skills to manage large-scale statewide projects that apply remote sensing techniques to analyze features across the landscape. Tyler has worked in the federal and state agency sectors, where he has more than 14 years of experience with resource inventory and monitoring programs, working side by side with federal, state, county, and private sector partners. Tyler’s focus as a remote sensing specialist has included object-based image analysis, wetland flora and fauna, hydrography, aerial photography, and lidar (light detection and ranging). Tyler will seek opportunities to solve mapping problems for clients in sectors including local government, utilities, and telecom in the Midwest and West. Select Experience • Land Cover Dataset and Turf Layer, Bozeman, MT• Water Supply and Storage Company Ditch Mapping 2020, CO• Larimer County Fairgrounds Orthoimagery and Topographic/Planimetric Mapping 2020, Larimer County, CO• Greeley-Loveland Irrigation Canal Lake Drive Stabilization/UAS Aerial Orthophotography and Lidar, Loveland, CO• Larimer County Landfill Aerial Mapping 2020, Larimer County, CO• Estes Park Building Mapping 2021, Town of Estes Park, CO • City of Loveland Lidar and Orthoimagery 2021, Loveland, CO• Bismarck-Mandan Metropolitan Planning Organization 2020 Orthoimagery & Topographic Mapping, ND• Goodhue County Orthoimagery 2022, MN• 3-DEP QL0 Lidar 2020, Goodhue County, MN• Grand Forks - East Grand Forks MPO Ortho and Lidar 2021, MN• Grand Forks, ND Building Footprints• Lidar and Orthoimagery 2021, Loveland, CO• Georgia Site Lidar and Orthos 2021, Warrenton, GA• GISC Topo Lidar Mapping 2022, Northfield, IL• LA County UAS Lidar 2021, Los Angeles, CA• Lidar Processing 2021, Madison, WI• Mobile Lidar 2022, Davenport, IA• Washington State King County Lidar Processing, Sheboygan Falls, WI• GISC Lidar 2019, Wilmette, IL• WROC 2020 Waupaca County Lidar, WI• GISC Lidar 2020, Des Plaines, IL Total Experience 14 Years Education MS, Geospatial Information Science, University of Minnesota BS, Fisheries and Water Resources Management, University of Wisconsin - Stevens Point 362 33AYRES | DIGITAL ORTHOIMAGERY AND LIDAR ACQUISITION | CITY OF BOZEMAN, MT Adam Campbell, CMS-Lidar, GISP Lidar Lead Adam joined the Aerial Mapping Group in 2023, bringing 15 years of professional experience in the private sector geospatial industry. His ease in working with people has tuned him in to the needs of local and state government, utilities, and state departments of transportation. Adam has devoted his career to lidar projects, and he provides leadership in Ayres’ efforts to grow its lidar service offerings nationally. Adam has extensive knowledge of national lidar standards and specifications, along with developing industry trends. His lidar experience includes flight planning and execution, ground control layout, calibration, processing workflows, and quality assurance/ quality control oversight. Adam has experience in large national and statewide lidar programs, multi-county projects, and corridor mapping projects. Adam’s specializations include volumetric mapping, change detection, building footprint generation, utility vectorization and encroachment, hydrographic mapping, and forestry and biomass analysis. Select Experience• Montana State Library Lidar Classification 2023, Helena, MT• Rapid City, SD MPO Lidar & Ortho 2023, Rapid City, SD• GISC Lidar 2023, Oak Brook, IL• MNDOT Waseca Co 2023, Austin, MN Total Experience 15 Years Registrations Certified Mapping Scientist, Lidar, ASPRS, US Certified GIS Professional, US Education BA, Environmental Geography, University of Northern Iowa Aaron Sale Imagery Supervisor Aaron joined Ayres in 1996 as a digital orthophotography technician. His experience with Ayres is in the use and production of digital orthophotography and flight planning for geospatial projects. Aaron has led imagery development for major orthoimagery projects around the nation. His experience includes the award-winning Wisconsin Regional Orthoimagery Consortium project, which was the first statewide, leaf-off orthoimagery project in the state and included the development of 12-inch resolution imagery of the entire state as well as higher resolution imagery for a range of public and private entities. Select Experience • Land Cover Dataset and Turf Layer, Bozeman, MT• Schweitzer Mountain Resort Lidar, Orthoimagery, and Planimetric Mapping 2021, Sandpoint, ID• Idaho Transportation Department Payette River Highway 21 Bridge Mapping 2019, Boise, ID• Wisconsin Regional Orthoimagery Consortium (WROC), Statewide, WI• Northern Colorado Geospatial Consortium Lidar and Orthoimagery, Various Locations, CO• Colorado Department of Transportation US 34 Canyon Mapping Revision Lidar, Larimer County, CO• Bismarck-Mandan MPO Orthos and Topographic Mapping, Bismarck, ND Years of Experience 28 Years Education BS, Geography/Earth Sciences, University of Wisconsin- La Crosse 363 34AYRES | DIGITAL ORTHOIMAGERY AND LIDAR ACQUISITION | CITY OF BOZEMAN, MT Burton Lindquist Analytical Aerotriangulation Specialist Burton joined Ayres in 1989, bringing three years of experience in stereo plotter operation and analytical aerotriangulation, as well as additional skills in orthophoto production and digital file editing. Since 1998, Burton has been in charge of overseeing all phases of analytical aerotriangulation. He has an extensive background in conventional analytical aerotriangulation (AT) and is trained and experienced in the use of Z/I ISAT softcopy AT software. Select Experience • Land Cover Dataset and Turf Layer, Bozeman, MT• Schweitzer Mountain Resort Lidar, Orthoimagery, and Planimetric Mapping 2021, Sandpoint, ID• Idaho Transportation Department Payette River Highway 21 Bridge Mapping 2019, Boise, ID• Wisconsin Regional Orthoimagery Consortium (WROC), Statewide, WI• Lidar and Orthoimagery 2021, Loveland, CO • Colorado Department of Transportation US 34 Canyon Mapping Revision Lidar• MnDOT Spring 2019 Imagery, St. Paul, MN• CDOT US 85 & WCR44 Roadway Drainage Lidar & Imagery 2018, Various Locations, CO• Landfill Aerial Mapping 2020, Larimer County, CO• Larimer County Fairgrounds 2020, CO Amber Tomaras Planimetric Mapping Specialist Amber joined Ayres in 2001 as a stereo compilation technician. Her responsibilities include stereo compilation of planimetric and topographic map features on first order analytical and digital photogrammetric stereo compilation systems. Select Experience • Wisconsin Regional Orthoimagery Consortium (WROC), Statewide, WI• Bismarck-Mandan MPO 2020 Orthos and Topo Mapping, Bismarck, ND• GIS Consortium Mapping, Illinois• Texas Lidar Editing QSI 2015, Various Locations, Texas• Schweitzer Mountain Resort Lidar, Orthoimagery, and Planimetric Mapping 2021• Idaho Transportation Department Payette River Highway 21 Bridge Mapping 2019• Landfill Aerial Mapping 2020, Larimer County, CO• Larimer County Fairgrounds 2020, CO• Loveland Plan Mapping 2021, Loveland, CO• Planimetric Mapping 2020, Brookfield, WI• Lidar Enhancements 2020, Goodhue County, MN Total Experience 36 Years Education BS, Cartography/Geography, University of Wisconsin-Eau Claire Total Experience 22 Years Education BS, Geography, University of Wisconsin-Oshkosh 364 35AYRES | DIGITAL ORTHOIMAGERY AND LIDAR ACQUISITION | CITY OF BOZEMAN, MT Justin Stefanik Professional Land Surveyor, Certified Federal Surveyor, Engineering Intern – Helena, MT Justin is a Professional Land Surveyor (PLS) in Montana, a Certified Federal Surveyor (CFedS), and an Engineering Intern (EI). He has extensive experience providing cadastral, private land retracement, corridor, utility, and control surveys to public and private clients. Justin completes General Land Office (GLO) retracement surveys, section breakdowns, Certificate of Survey, topographical surveys, bathymetric surveys, construction stakeout, drafting, writing legal descriptions, courthouse research, data downloads and manipulations. His supervision of field surveys crews for more than 14 years brings an understanding of the correct procedures to provide an accurate survey and has completed surveys meeting the City of Bozeman protocols. Justin’s role for this project will be the planning and execution ground control and ground truthing surveys. Justin started his career in Bozeman, after finishing his Construction Engineering Technology from Montana State University he worked at a local engineering and surveying crew for two years before moving back to Helena. Justin has completed multiple ground control surveys on manned aerial flights throughout Montana. Chantry Myers Crew Chief, Drone Pilot – Helena, MT Chantry is a crew chief with experience involving GLO retracement surveys, section breakdowns, COS drafting, topographical surveys, construction stakeout, writing legal descriptions, and courthouse research. He has gained experience working on these types of projects for the last 3 years with KLJ and is knowledgeable in both survey field work and AutoCAD Civil 3D. Chanty is also a licensed drone pilot, passing his part 107 certification a year ago. He has operated drones on four different sites in Bozeman in the last 6 months. He planned, laid out the ground control, flew and processed the aerial flights for these four sites and multiple others around Montana. Chantry is Construction Engineering Technology graduate from Montana State University that started his survey career in Bozeman working for a contractor staking grades on heavy civil projects. Robert Hofer Crew Chief, Drone Pilot – Billings, MT Robert is a crew chief with experience involving General Land Office (GLO) retracement surveys, hydrologic surveys, section breakdowns, Certificate of Survey (COS) drafting, topographical surveys, construction stakeout, writing legal descriptions, and courthouse research, Stormwater Pollution Prevention Plans (SWPPP). He has gained experience working on these types of projects for the last four years. Robert is knowledgeable in both survey field work and AutoCAD Civil 3D. Robert is a licensed drone pilot that passed his part 107 certificate 18 months ago. Robert is a Civil Engineering graduate from Montana Tech and has performed ground control surveys on four different projects. He is currently laying ground control for a large power line project from Colstrip to the Montana/North Dakota state line. 365 36AYRES | DIGITAL ORTHOIMAGERY AND LIDAR ACQUISITION | CITY OF BOZEMAN, MT Miles Strain, CP, RPP, VP Aerial Services Manager / Vice President Miles brings decades of experience in the geospatial industry, working the past 35 years in supervisory and various management levels. Miles has extensive experience working on projects throughout the United States, ranging in size from 10 acres up to statewide programs. Miles’s project experience covers hundreds of corridor projects for transportation departments, various projects for natural resources departments, many large and small scale mining operations, and a wide range of state and local governments such as the cities of Duluth and Fargo, Grand Forks/East Grand Forks MPO, and rural and urban counties. His duties have included project management, account management, production management, estimating, planning, scheduling, QA/QC, personnel supervision, and reporting. Miles has managed numerous projects utilizing various imagery and lidar sensors from platforms such as fixed-wing aircraft, helicopter, mobile mapping units, and UAS. Select Experience • Managed multiple corridors totaling over 70 linear miles in 2020 for MnDOT requiring both Imagery and Lidar fixed-wing acquisition and complete downstream processing. Tasks included project management, estimating, flight planning, coordination, target layout, planimetric compilation, lidar breakline collection and draping, hydro flattening, digital orthos, terrain assembly and finalization, Final Graphics and Standards Review for compliance.• Managed over 30,000 square miles on a single task order for MNGEO requiring 50cm and 30cm imagery acquisition and digital ortho processing. Tasks included overall project management including sub-consultant acquisition management with strategic partners. Independent contracts were also initiated and managed for stakeholders requiring buy-ups to 15cm.• Oversight and management of numerous county-wide digital orthophotography projects throughout the Upper Midwest over the past 20 plus years. Tasks included account and project management, estimating, planning and preparation of work plans, flight layout, scheduling, staff supervision, ortho processing and final QC, and meta data preparation Andrew Werle Chief Pilot / Certified UAS Operator Andrew is a Commercial Pilot and Unmanned Aircraft Systems operator who has worked for 95West since graduating from the University of North Dakota in 2017. He is responsible for planning and executing manned and unmanned flight missions. Andrew manages the aircraft and equipment operated by 95West and assists with stereo compilation of planimetric features. He also specializes in Bentley MicroStation and AutoCAD (Civil 3D) platforms. Select Experience Certifications Certified Photogrammetrist American Society of Photogrammetry and Remote Sensing (ASPRS) Registered Professional Photogrammetrist Education Coursework, Augustana College, Sioux Falls, SD BS, Geography, UW-River Falls Certifications Remote Pilot Certification Commercial Pilot Certification Flight Instructor Certification Education BS, Aeronautics, University of North Dakota • Aerial and Visualization Survey (PCN 21841/21843) — Grand Forks, ND• Ground Survey-Intersections Curb Ramp (PCN 21842) — Grand Forks, ND • Aerial Survey — Mahnomen, MN• Aerial Survey — Providence, RI• Falkirk Mining Company Aerotriangulation — Underwood, ND • 2020 Aerial – lidar NDDOT New England N to 9th St — Dickinson, ND• City Aerial Photography and Lidar Survey — Grand Forks, ND • University of North Dakota Aerial Photography — Grand Forks, ND• City Aerial Photography and Lidar Survey — Fosston, MN Andrew piloted the fixed wing aircraft and also assisted with producing the planimetric features for the projects listed below. Aerial photography and lidar data were acquired simultaneously to later produce planimetric features from the aerial photography along with a lidar-derived surface from the 20 points per square meter lidar data. 366 37AYRES | DIGITAL ORTHOIMAGERY AND LIDAR ACQUISITION | CITY OF BOZEMAN, MT Casey Olstad Lidar Technician / Sensor Operator As a Lidar Technician/Sensor Operator, Casey’s responsibilities include working on specialized lidar surveys, digital orthophotography, and photogrammetry projects. Other tasks include assisting with data processing such as calibration, cleaning and classification, and producing highly accurate mapping for engineering and transportation design applications. Select Experience • City Aerial Photography and Lidar Survey — Brookings, SD• University of North Dakota Aerial Photography — Grand Forks, ND• Aerial Photography and Lidar Survey — NDDOT ND 14• City Aerial Photography and Lidar Survey — International Falls, MN• Aerial Photography and Lidar Survey, Fargo Landfill — Fargo, ND• Aerial Photography and Lidar Survey — MNDOT TH 38• Aerial Photography and Lidar Survey — NDDOT US 52• City Aerial Photography — Fosston, MN• Coteau Properties — Beulah, ND• Falkirk, Annual Orthophotography — Underwood, ND• Tabor Substation — East Grand Forks, ND• Fargo Landfill — Fargo, ND• Hudson Lidar Site — Hudson, WI Education Associate in Applied Science, Geospatial Intelligence Analysis, Northland Community and Technical College – Thief River Falls, “Ayres exhibits exceptional customer service and responsiveness. During the City’s hour of need, Ayres staff worked nights and weekends to assist in condition assessments, field solutions, and coordination of resources.” Chris Matkins Water Utilities Manager City of Loveland, CO 367 38AYRES | DIGITAL ORTHOIMAGERY AND LIDAR ACQUISITION | CITY OF BOZEMAN, MT Ingenuity, Integrity, and Intelligence. Ayres Advantages to the City of Bozeman Ayres’ is able to offer the City a unique combination of applicable experience and innovative approaches: 9 Project approach and understanding: Ayres has been providing lidar and imagery together to local governments for nearly 20 years. We have proven ourselves in hundreds of projects, and have brought new approaches and products such as Elevation Derived Hydrography (EDH). EDH makes use of lidar data and asset information, such as culverts and roads, to provide more accurate understanding of the expected behavior of water across the landscape 9 Personnel qualifications: Ayres’ key personnel have been with Ayres for many years – some for decades – and have personal knowledge of how the process of the creation of data products has evolved. They understand the reasons for the data specifications and how the data will be used. Ayres lead project personnel and the subconsultants all have significant Western experience, and the subconsultants have worked with Ayres in the past. 9 Ability to meet timeline and budget: The City’s budget aligns with recent Ayres projects that are comparable in size and complexity, so we are comfortable that we can perform the work within budget. In addition, the majority of aerial mapping is done in the spring every year, so Ayres has over 45 years of experience performing and delivering during periods of high demand. We make use of cross- trained personnel who can work on lidar or imagery as the workflow requires. 9 Location relative to project: Although headquartered in Wisconsin, Ayres is a national company, with approximately 60 employees in the Rocky Mountain region. Ayres is listed as a GIS contractor on the Montana Association of Geographic Information Professionals (MAGIP), and Ayres personnel holds membership in the organization. Ayres has performed aerial mapping work in Montana as well as Idaho, Wyoming, Colorado, North Dakota, and South Dakota. Additionally, KLJ, who is performing the control survey work, has an office in Bozeman, and 95 West, who is performing the aerial data acquisition, will be mobilizing from Grand Forks, ND, and has experience in the Western United States. Ayres is currently providing aerial mapping and processing services for both the City of Bozeman and the Montana State Library, and has completed work for the Montana DOT, so we are able to successfully perform work for Montana clients. 9 Related experience on similar projects: In the past five years, Ayres has performed 39 aerial mapping projects that used both lidar and imagery. During that same period, we have completed 81 aerial mapping projects for municipal governments, or approximately one project for a municipality every three weeks, year-round. We have the capacity and experience to successfully complete the City’s orthoimagery and lidar projects. 9 Recent and current work for the City: Ayres is nearing completion of the City’s Land Use/Land Cover mapping project, which was contracted in July, 2023. Ayres also worked with the City in 2018 to support an EPA brownfield grant application. J) ADDITIONAL INFORMATION Additional Options Ayres understands that the City of Bozeman is asking for cost-effective datasets, which we have responded to on the preceding pages. Ayres works with many municipalities on similar projects and has found several products that help increase the return on investment for these projects. We are excited to recommend several options to the City to help increase the value of your project. Ayres Lidar Online Ayres Lidar Online is a 3D, browser-based application used by a number of local governments to make lidar data publicly accessible. Users can take measurements between two points and see the separate horizontal and vertical distances, they can generate contours and select the contour interval, and they can view the point cloud to see features such as buildings and trees. 368 39AYRES | DIGITAL ORTHOIMAGERY AND LIDAR ACQUISITION | CITY OF BOZEMAN, MT Ingenuity, Integrity, and Intelligence. Optional data creation and hosting of layers can include:• Slope shade bare earth layer • Shaded relief bare earth layer • Hillshade bare earth layer • Elevation surface layer from lidar DEM • Ground lidar point cloud • High vegetation lidar point cloud layer colorized with imagery • High vegetation lidar point cloud layer colorized with 2021 NAIP imagery • Building lidar point cloud layer (includes bridge decks) colorized with imagery • 1-foot topographic contour layer • RGB Orthoimagery layer• NIR Orthoimagery layer • Base map streets layer • County boundaries • Municipal boundaries • Tax Parcels Additional Planimetric Mapping. Ayres can also extract a wide range of additional features from the aerial imagery. Below are some common features that can be extracted in addition to those listed above:• Gravel, dirt, and paved surfaces• Medians• Paths• Parks• Parking lots• Patios• Driveways• Pools• Railroad surfaces• Bridges• Walls• Curb and gutter• Utilities (manholes, vaults, etc.) Lidar Derived Enhancements. Ayres has derived a number of other data products from lidar for local governments. These can be added to the contract as possible, or provided in the future as the City is able to utilize them. A few examples of additional products are:• closed depressions where standing water may occur• road profiles for drainage and repair• slope of ditch banks to assess stability and erodibility• low points in pavement for potential standing water• slope of road banks for safety and stability assessment Ayres would welcome the chance to discuss and demonstrate these additional data products to the City. For Bozeman’s specific needs, the City needs to be confident in the ability of the consultant to perform to the highest quality standards, be responsive to its cost and timeline needs, and be accountable for the results. Through previous projects that Ayres completed for a number of cities, counties, and municipalities, our team has demonstrated that we are not only reliable, but that we are also professional in how we manage your projects. Because our projects start with education and communication, you can be assured that our team understands the goals of the City and know that we appreciate the importance of communication with all stakeholders throughout the life cycle of our projects. Ayres has an experienced team of professionals to address your project goals, including stakeholder outreach and education, grant writing, project planning, data processing, and delivery of enhanced products for specialized uses such as culverts and hydro-modified DEMs. We have a long history of project success and are able to handle projects of any size. Ayres handles thousands of square miles of lidar processing yearly, with a high degree of expertise. 369 40AYRES | DIGITAL ORTHOIMAGERY AND LIDAR ACQUISITION | CITY OF BOZEMAN, MT Ingenuity, Integrity, and Intelligence. K) NONDISCRIMINATION & EQUAL PAY Attachment 1 NONDISCRIMINATION AND EQUAL PAY AFFIRMATION Ayres Associates Inc (name of entity submitting) hereby affirms it will not discriminate on the basis of race, color, religion, creed, sex, age, marital status, national origin, or because of actual or perceived sexual orientation, gender identity or disability and acknowledges and understands the eventual contract will contain a provision prohibiting discrimination as described above and this prohibition on discrimination shall apply to the hiring and treatments or proposer's employees and to all subcontracts. In addition, Ayres Associates Inc (name of entity submitting) hereby affirms it will abide by the Equal Pay Act of 1963 and Section 39-3-104, MCA (the Montana Equal Pay Act), and has visited the State of Montana Equal Pay for Equal Work "best practices" website, https://equalpay.mt.gov/BestPractices/Employers, or equivalent "best practices publication and has read the material. HR Director Name and title of person authorized to sign on behalf of submitter 370 www.AyresAssociates.com Ingenuity, Integrity, and Intelligence. BUDGET Digital Orthoimagery and Lidar Acquisition City of Bozeman, MT January 2, 2024 371 1 Ingenuity, Integrity, and Intelligence. AYRES | DIGITAL ORTHOIMAGERY AND LIDAR ACQUISITION | CITY OF BOZEMAN, MT We propose to provide the requested services for the estimated fees as follows. DIGITAL ORTHOIMAGERY AND LIDAR ACQUISITION GEOSPATIAL SERVICES PROVIDED LUMP SUM FEES Aerial Imagery and Lidar Acquisition $46,000 Orthoimagery and Lidar Processing $55,100 $6,500 Elevation Derived Hydrography $7,600 Planimetric Mapping (Sidewalks and Buildings)$14,800 Lump Sum Total Fees:$130,000 BUDGET Ground Control Survey 372 Memorandum REPORT TO:City Commission FROM:Griffin Nielsen, Water Resource Engineer Brian Heaston, Interim Director of Utilities SUBJECT:Authorize the City Manager to sign Amendment No. 2 to Task Order No. 1 of the Professional Services Master Task Order Agreement with the firm of HDR Engineering, Inc. providing construction engineering services for the East Gallatin River Streambank Erosion Protection Project, CIP No. WW111 MEETING DATE:January 23, 2024 AGENDA ITEM TYPE:Agreement - Vendor/Contract RECOMMENDATION:Authorize the City Manager to sign Amendment No. 2 to Task Order No. 1 of the Professional Services Master Task Order Agreement with the firm of HDR Engineering, Inc. providing construction engineering services for the East Gallatin River Streambank Erosion Protection Project, CIP No. WW111. STRATEGIC PLAN:4.3 Strategic Infrastructure Choices: Prioritize long-term investment and maintenance for existing and new infrastructure. BACKGROUND:During the spring runoff of 2018, an avulsion event occurred along the East Gallatin River impacting a reach adjacent the City’s Water Reclamation Facility (WRF), specifically cutting off the channel receiving the facility’s outfall. The City took immediate steps to reestablish the channel and armor the streambank at the primary point of failure. Since the completion, a secondary location on the channel, partially destabilized during the original event, has begun to quickly erode. The City has identified the need to stabilize the bank at this location to protect the City’s outfall channel, reduce sediment load to the East Gallatin River, as well as improve the safety for individuals walking or wading the river at the given location. HDR Engineering provides professional engineering services on an on-call basis for the Bozeman Water Reclamation Facility (WRF) under a Master Task Order Agreement entered into on March 22, 2022. The City executed Task Order One on April 26, 2022 to design and permit the East Gallatin River Streambank Erosion Protection Project, CIP No. WW111. HDR completed the design and permitting for the project and the City has solicited quotes from three qualified contractors. Two quotes have been received and the City intends to award the contract and start construction as soon as possible. In preparation for construction, Amendment No. 2 increases the scope and fee with HDR to provide inspection and construction 373 engineering services to ensure the project is built per plan. UNRESOLVED ISSUES:None ALTERNATIVES:As suggested by the Commission FISCAL EFFECTS:The current task order totals $23,269. Amendment No. 2 adds a cost of $16,064.00 bringing the project total to $53,028.00. Funding is provided from the FY24 Wastewater Fund from the CIP No. WW111 project budget (Budget Code 620-5610-445.80.90), set at $150,000, as such adequate funding exists. Attachments: Amendment No 2_East Gallatin River Bank 2.pdf Report compiled on: January 11, 2024 374 AMENDMENT NO. 02 TASK ORDER NO. 01 FOR ENGINEERING SERVICES EAST GALLATIN RIVER RESTORATION- BANK 2 WHEREAS: HDR ENGINEERING, INC. ("HDR") entered into an Agreement on May 6, 2022 to perform engineering services for the City of Bozeman ("CITY"); The CITY desires to amend this Agreement in order for HDR to perform services beyond those previously contemplated; HDR is willing to amend the agreement and perform the additional engineering services. NOW, THEREFORE, HDR and the CITY do hereby agree: The Agreement and the terms and conditions therein shall remain unchanged other than those sections and exhibits listed below; See attached ATTACHMENT 2: East Gallatin River Restoration (Bank 2) Amendment No. 2. COMPENSATION: The anticipated level of effort for the task is increased by the attached hours spreadsheet, to be billed as time and materials, not to exceed. Original Compensation: $23,269.00 Amendment 01: $13,695.00 Amendment 02: $16,064.00 Total Compensation: $53,028.00 375 IN WITNESS WHEREOF, the parties hereto have executed this Amendment as of the day and year written below: HDR ENGINEERING, INC. ("HDR") City of Bozeman ("CITY") By:____________________________ By:_______________________________ Title: Vice President Title:______________________________ Date:_________________________ Date:_____________________________ 376 Amendment 2 | WRF On Call EAST GALLATIN RIVER RESTORATION January 10, 2024 1 of 3 Attachment 1 - East Gallatin River Restoration (Bank 2) Amendment No 2. Introduction The following amendment is to provide construction administration services to the City for the Bank 2 project. Project Schedule This amendment is built with the anticipated that construction will take place during March 2024 prior to the Spring runoff of 2024. If this timeframe is adjusted, an amendment may be needed. Assumptions: · Notice to Proceed (NTP) will be received by HDR in January 2024. · Contractor will reach construction substantial completion by April 1, 2024. Amendment No. 2 – Scope of Services Task 1: Project Management and Coordination of Work Description of Work: The scope, schedule, and budget will be monitored. Each deliverable will be reviewed to verify work products meet the standard of care. Sub Tasks: 1.1 PROJECT MANAGEMENT & COORDINATION OF WORK This task includes project management services during the life of the project, including: · Monthly invoicing and monthly reports · Project delivery administration: budget & schedule controls · Kickoff meeting to establish communication protocol, project understanding, available data, project schedule, and roles of COB and HDR. · Quality Assurance/Quality Control Services o Review of each deliverable according to HDR’s quality management procedures. o Quality assurance/quality control integrated into each deliverable’s budget. 1.2 PERMIT COORDINATION This task includes follow up to agency questions concerning environmental permits: · Address questions from regulators. · Provide documentation to regulators. 377 Amendment 2 | WRF On Call EAST GALLATIN RIVER RESTORATION January 10, 2024 2 of 3 Assumptions: · Project management effort is a function of the project duration and is based on the schedule included with this scope of services. NTP is anticipated in early January 2024, with effort assumed to be completed in April 2024. Additional project coordination or an extended project schedule may require a contract amendment. · Construction stormwater discharge permit is the responsibility of the contractor. Deliverables: · Monthly invoice and project status updates. · Technical memorandum stating project has been completed per plan. Task 4: Construction Administration Description of Work: For the Bank 2 project, construction observation is assumed to be required for 50% of construction the period. If a greater observation amount is required, an amendment will be required. Sub Tasks: 4.1 – BIDDING & CONTRACTOR SELECTION ASSISTANCE The City will administer the bid opening and prepare the bid tabulation. HDR will review the bid tabulation sheets and assist the City in evaluating bids and awarding the construction contract. Provide pdfs of bidding documents for issuing to 3 bidders directly. Drawings will be half size, 11 inches by 17 inches. Other documents will be 8 ½ inches by 11 inches. The design specifications are indicated on the drawings. HDR will respond to contractor request for information (RFI) during the bidding stage. HDR will review bids received by the City of Bozeman and make a recommendation for contractor selection. Assumptions: · Contractors will submit no more than 2 RFIs, each. Additional RFIs and coordination may require contract amendment. Deliverables: · Recommendation of contractor. 4.2 – CONSTRUCTION OBSERVATION HDR will perform the following construction observation duties: · Construction kickoff meeting attendance. Meeting led by HDR. · Construction observation at key times to document contractor adherence to approved plans. · Approval of construction materials. · Review and recommendation for payment of contractor invoices. 378 Amendment 2 | WRF On Call EAST GALLATIN RIVER RESTORATION January 10, 2024 3 of 3 · HDR will conduct a project close-out on site with the City of Bozeman staff and Contractor. Assumptions: · Responsibility for all means and methods for construction of the project resides with the Construction Contractor. · Any review, comment or recommendation made or implied by HDR cannot be construed as directing the Construction Contractor as it relates to means and methods nor does it imply any liability on the part of HDR for any construction issue that is a direct or indirect result of the work performed or actions of the individual construction contractors. · Construction will last one (1) week. HDR will be present on site for construction observation 50% of time. · HDR will be on site for the following milestones: o Removal of instream rock structure. o Placement of wood in bank. o Construction of cobble bank. o Initialization of fabric encapsulated soil lifts and willow placement. o Determination of finished grade. · It is assumed that the contractor will provide at least one (1) days’ notice of the milestones listed above. · HDR will provide a recommendation if construction of the proposed design is substantially complete. · No survey was collected during the design phase as directed by City of Bozeman. The proposed design is to be field fit and constructed as directed by field engineer. · For visual inspections, the Engineer makes no warranties or guarantees regarding any failure to detect hidden, covered, inaccessible, or internal structural or material defects or damages in components, embedment, reinforcing, anchorages and parts of equipment, structures, or mechanisms being inspected, that are not readily discernible by external visual inspection through reasonable efforts. Deliverables: · Recommendation of contractor. · Daily construction observation reports and photo logs. · Recommendations for contractor invoice payment. 379 3 - Program Manager - Coralynn Revis2 - Environmental Engineer Sr - Dan March1 - Engineer Water Resources - Heather Nold4 - Accountant Sr - Paden KaufmanTask Task Description Status PMG02 EEG30 EWR20 ACT04 1.1 Project Management and Coordination of Work .8 8 1.2 Permit Coordination 5 10 Subtotal (including optional) 0 13 10 8 4.1 Bidding & Contractor Selection Assistance .6 8 4.2 Construction Observation .16 50 Subtotal (including optional) 0 22 58 0 Total (including optional)0 35 68 8 Task 1 Project Management Task 4 Construction Administration 380 Memorandum REPORT TO:City Commission FROM:Bernie Massey, Assistant Treasurer Laurae Clark, City Treasurer Melissa Hodnett, Finance Director SUBJECT:Resolution 5540 / Intent to Modify Special Improvement Lighting District 772 to include all phases of Blackwood Groves MEETING DATE:January 23, 2024 AGENDA ITEM TYPE:Resolution RECOMMENDATION:Approve Commission Resolution 5540 / Intent to Modify Special Improvement Lighting District 772 to include all remaining phases of Blackwood Groves. STRATEGIC PLAN:7.5. Funding and Delivery of City Services: Use equitable and sustainable sources of funding for appropriate City services, and deliver them in a lean and efficient manner. BACKGROUND:Montana Code Annotated (MCA) 7-12-4301 authorizes special improvement districts to be created to pay for the cost of operating and maintaining streetlights and to assess costs to benefitted property owners. (MCA) 7-12- 4351 authorizes the major modification of an existing special improvement lighting district. Bozeman Municipal Code Sec.38.270.030 subsection A line 4 requires that prior to final plat approval, lighting must be installed or secured. Lighting District 772 was created in May of 2022 to include only phases 1 and 9 of the Blackwood Groves development. This modification expands the district to include all remaining phases. The provisions in MCA 7-12-4302 through 7-12-4305 for the content of the resolution, public notice, protest, and consideration of protest that apply to the creation of a special improvement lighting district also apply to the modification of an existing special improvement lighting district authorized by this section. UNRESOLVED ISSUES:None ALTERNATIVES:As suggested by the City Commission. FISCAL EFFECTS:As a result of modifying this lighting district, the City will pay the associated power bills and schedule system maintenance. We will recover these costs by billing property owners each year on their City Assessment bill. It is 381 estimated to cost $43.41 per acre within the district or $2,629.08 annually for the entire district. Attachments: Resolution 5540-Intent to Modify SILD 722-Blackwood Groves.docx Exhibit A.pdf Exhibit B.pdf Report compiled on: January 9, 2024 382 Page 1 of 10 RESOLUTION 5540 A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF BOZEMAN, MONTANA, DECLARING IT TO BE THE INTENTION OF THE CITY COMMISSION TO MODIFY LIGHTING DISTRICT NO. 772 (BLACKWOOD GROVES) TO INCLUDE ALL REMAINING PHASES TO THIS DISTRICT AND FOR ASSESSING THE COSTS FOR MAINTENTANCE AND ENERGY THEREFORE TO BENEFITTED PROPERTY BY THE LEVY OF SPECIAL ASSESSMENT. BE IT RESOLVED by the City Commission (the “Commission”) of the City of Bozeman (the “City”), Montana, as follows: Section 1 Intention to Modify District 772,Proposed Improvements. It is the intention of this Commission to modify and establish in the City under Montana Code Annotated, Title 7, Chapter 12, Part 43, as amended, a special improvement lighting district to serve Blackwood Groves (the “District”) for the purpose of, maintenance and energy costs. The city will maintain and pay energy costs for the modified district. The District will pay the maintenance and energy costs for fifteen (15) Signify Lumec RoadFocus large LED Cobrahead 77 watt single upsweep luminaires on round tapered steel poles which are hunter green, mounted at 35 feet per City of Bozeman standards; twenty-eight (28) Signify Lumec RoadFocus medium LED Cobrahead 37 watt single upsweep luminaires on round tapered black steel poles, mounted at 28 feet per City of Bozeman standards; three (3) Signify Lumec RoadFocus medium LED Cobrahead 37 watt single upsweep luminaires on round tapered hunter green steel poles, mounted at 28 feet per City of Bozeman standards; sixty-one (61) Signify Lumec RoadFocus medium LED Cobrahead 37 watt single upsweep luminaires on round tapered hunter green steel poles, mounted at 30 feet per City of Bozeman 383 Resolution 5540, Intent to Modify Lighting District 772 Page 2 of 10 standards; and ten (10) Signify Lumec RoadFocus medium LED Cobrahead 70 watt single upsweep luminaires on round tapered hunter green steel poles, mounted at 30 feet per City of Bozeman standards. The initial monthly charge per fixture per month (the “Monthly Charge”) is estimated as follows: $3.17 per 70- and 77-watt LED fixture or $79.25 total for all 70- and 77- wattfixtures, and $1.52 per 37-wattLED fixture or$139.84for all 37-wattfixtures. This calculates to $2,629.08 annually. Section 2 Number of District. The modified district is known and designated as Special Improvement Lighting District No.772 (Blackwood Groves) of the City of Bozeman, Montana. Section 3 Boundaries of District. The limits and boundaries of the District are depicted on a map attached as Exhibit A hereto (which is hereby incorporated herein and made a part hereof), which boundaries are designated and confirmed as the boundaries of the District. A listing of each of the properties in the District is shown on Exhibit B hereto (which is hereby incorporated herein and made a part hereof). Section 4 Benefited Property. The District and territory included within the limits and boundaries described in Section 3 and as shown on Exhibit A are hereby declared to be the special lighting district and the territory which will benefit and be benefited by the maintenance and energy and will be assessed for the energy costs and a portion of the maintenance as described in Section 1. The maintenance and energy, in the opinion of this Commission, are of more than local and ordinary benefit. The property included within said limits and boundaries is hereby declared to be the property benefited by the maintenance and energy provided. Section 5 384 Resolution 5540, Intent to Modify Lighting District 772 Page 3 of 10 Assessment Methods. All properties within the District are to be assessed for a portion of the maintenance and energy costs, as specified herein. The maintenance and energy costs shall be assessed against the property in the District benefiting, the actual area method of assessment described in Sections 7-12-4323, MCA, as particularly applied and set forth in this Section 5. The annual maintenance and energy costs are estimated at $2,629.08, and shall be assessed against each lot, tract or parcel of land in the District for that part of the costs that the area of such lot, tract or parcel bears to the total area of all lots, tracts or parcels of land in the District, exclusive of streets, avenues and alleys. The total area of the District to be assessed is 60.56 acres, or 2,637,981 square feet, exclusive of parks and open space. The initial costs of the Improvements per acre shall be $43.41 or $0.00100 per square foot annually. Section 6 Payment of Assessments. Special assessments for the annual maintenance and energy costs are estimated at $2,629.08, plus any increases, as may be permitted by the Public Service Commission, and any additional authorized charges shall be levied each year against all properties in the District and shall be payable in equal semiannual installments. The first year of special assessment billing will include an additional amount not to exceed $500 for publication and mailing associated with creation of the District which shall be assessed in the same manner as the Improvements resulting in a cost not to exceed $51.67 per acre, or $0.00119 per square foot. Section 7 Extraordinary Repair or Replacement. The maintenance and energy costs and assessments set forth in Section 1 and 5 are based on normal conditions and do not cover charges for repair and/or replacement. The City may make an additional charge to the District for costs of labor and actual material costs for repairs and/or replacement of the fixtures for damage caused by third parties and not paid by such third parties. The City will assess such costs and charges against the properties in the District in the same manner as the other assessment is made. Section 8 385 Resolution 5540, Intent to Modify Lighting District 772 Page 4 of 10 Discontinuation ofDistrict. If at any time after the initial term of the Districta petition is presented to the City Commission, signed by the owners or agents of more than three-fourths of the total amount of property within the District, asking that the maintenance and operation of the special lighting system and the furnishing of electrical current in the District be discontinued, or if a majority of the City Commission votes to discontinue the District, the City Commission shall, by resolution, provide for discontinuing the maintenance and operation of the lighting system. If the Commission has, prior to the presentation of a petition or by a majority vote of the Commission to discontinue the District, entered into any contract for the maintenance and operation of the lighting system, the maintenance and operation may not be discontinued until after the expiration of the contract. Section 9 Public Hearing; Protests. At any time within fifteen (15) days from and after the date of the first publication of the notice of the passage and approval of this resolution, any owner of real property within the District subject to assessment and taxation for the cost and expense of maintenance and energy may make and file with the Deputy City Clerk until 5:00 p.m., M.T., on the expiration date of said 15-day period (February 12, 2024) written protest against the proposed maintenance and energy costs, or against the extension or creation of the District or both, and this Commission will at its next regular meeting after the expiration of the fifteen (15) days in which such protests in writing can be made and filed, proceed to hear all such protests so made and filed; which said regular meeting will be held on Tuesday, February 27, 2024 in the Commission Room at City Hall, 121 N Rouse Avenue. Section 10 Notice of Passage of Resolution of Intention. The Deputy City Clerk is hereby authorized and directed to publish or cause to be published a copy of a notice of the passage of this resolution in the Bozeman Daily Chronicle, a newspaper of general circulation in the county on January 27, 2024 and February 3, 2024, in the form and manner prescribed by law, and to mail or cause to be mailed a copy of said notice to every person, firm, corporation, or the agent of such person, firm, or corporation having real property within the District listed in his or her name upon the last 386 Resolution 5540, Intent to Modify Lighting District 772 Page 5 of 10 completed assessment roll for state, county, and school district taxes, at his last-known address, on or before the same day such notice is first published. PASSED AND APPROVED by the City Commission of the City of Bozeman, Montana, at a regular session thereof held on the 23 rd day of January 2024. ___________________________________ TERENCE CUNNINGHAM Mayor ATTEST: ____________________________________ ALEX NEWBY Deputy City Clerk APPROVED AS TO FORM: ___________________________________ GREG SULLIVAN City Attorney 387 Resolution 5540, Intent to Modify Lighting District 772 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. 5540, entitled: “A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF BOZEMAN, MONTANA, DECLARING IT TO BE THE INTENTION OF THE CITY COMMISSION TO MODIFY LIGHTING DISTRICT NO. 772 (BLACKWOOD GROVES) TO INCLUDE ALL REMAINING PHASES AND FOR ASSESSING THE COSTS FOR MAINTENTANCE AND ENERGY THEREFORE TO BENEFITTED PROPERTY BY THE LEVY OF SPECIAL ASSESSMENT.” (the “Resolution”), on file in the original records of the City in my legal custody; that the Resolution was duly adopted by the City Commission of the City of Bozeman at a meeting on January 23, 2024, and that the meeting was duly held by the City Commission and was attended throughout by a quorum, pursuant to call and notice of such meeting given as required by law; and that the Resolution has not as of the date hereof been amended or repealed. I further certify that, upon vote being taken on the Resolution at said meeting, the following Commissioners voted in favor thereof: _____ ____________________ ; voted against the same: ___ ; abstained from voting thereon: ; or were absent: . WITNESS my hand officially this 23 rd day of January 2024. ___________________________________ Alex Newby Deputy City Clerk 388 Resolution 5540, Intent to Modify Lighting District 772 INTENT TO MODIFY SPECIAL IMPROVEMENT LIGHTING DISTRICT NO. 772 (BLACKWOOD GROVES) TO INCLUDE ALL REMAINING PHASES CITY OF BOZEMAN, MONTANA NOTICE IS HEREBY GIVEN that on January 23, 2024, the City Commission (the “Commission”) of the City of Bozeman, Montana (the “City”), adopted a Resolution No. 5540 to modify Special Improvement Lighting District No. 772 (the “District”) for the purpose of maintaining lighting and assessing the cost for maintenance and energy to Blackwood Groves, and paying maintenance and energy costs relating thereto. A complete copy of the Resolution of Intention (the “Resolution”) No. 5540 is on file with the City Clerk which more specifically describes the nature of the costs, the boundaries and the area included in the District, the location of the Improvements and other matters pertaining thereto and further particulars. A list of properties in the District and the amount of the initial assessment accompanies this notice. The Resolution and accompanying exhibits may be also viewed on the City’s website at www.bozeman.net. The District will pay the maintenance and energy costs for fifteen (15) Signify Lumec RoadFocus large LED Cobrahead 77 watt single upsweep luminaires on round tapered steel poles which are hunter green, mounted at 35 feet per City of Bozeman standards; twenty-eight (28) Signify Lumec RoadFocus medium LED Cobrahead 37 watt single upsweep luminaires on round tapered black steel poles, mounted at 28 feet per City of Bozeman standards; three (3) Signify Lumec RoadFocus medium LED Cobrahead 37 watt single upsweep luminaires on round tapered hunter green steel poles, mounted at 28 feet per City of Bozeman standards; sixty-one (61) Signify Lumec RoadFocus medium LED Cobrahead 37 watt single upsweep luminaires on round tapered hunter green steel poles, mounted at 30 feet per City of Bozeman standards; and ten (10) Signify Lumec RoadFocus medium LED Cobrahead 70 watt single upsweep luminaires on round tapered hunter green steel poles, mounted at 30 feet per City of Bozeman standards. The initial monthly 389 Resolution 5540, Intent to Modify Lighting District 772 charge per fixture per month (the “Monthly Charge”) is estimated as follows: $3.17 per 70- and 77-watt LED fixture or $79.25 total for all 70- and 77-watt fixtures, and $1.52 per 37-watt LED fixture or $139.84 for all 37-watt fixtures. This calculates to $2,629.08 annually. All properties in the District will be assessed for their proportionate share of the costs of the Improvements on an “area basis” annually and will be payable in equal semiannual installments. The annual costs of the Improvements are$2,629.08 for the entire District. The total area of the District to be assessed is 60.56 acres, or 2,637,981 square feet, exclusive of parks and open space. The initial costs of the Improvements per acre shall be $43.41 or $0.00100 per square foot annually.The annual assessments for costs of the Improvements may be increased as approved by the Public Service Commission and may be increased to cover extraordinary expenses of repair and maintenance. The first year of special assessment billing will include an additional amount not to exceed $500 for publication and mailing associated with creation of the District which shall be assess in the same manner as the Improvements resulting in a cost not to exceed $51.67 per acre, or $0.00119 per square foot. Written protests against the creation or modification of the District and the costs may be filed by an agent, person, firm or corporation owning real property within the proposed District whose property is liable to be assessed for the costs. Such protests must be delivered to the Deputy City Clerk at City Hall, 121 N Rouse Ave, Bozeman, Montana not later than 5:00 p.m., M.T., on Monday, February 12, 2024. If protests are received by the deadline, the City Commission will hear and pass upon all written protests against the creation or extension of the District, or the Improvements on Tuesday, February 27, 2024, at 6:00 p.m., in the Commission Room at City Hall 121 N Rouse Ave, Bozeman, Montana. If no protests are received, the City Commission may, on the same date, time and location, pass a Resolution authorizing the creation or modification of the district. Further information regarding the proposed District or other matters in respect thereof may be obtained from the City Clerk at City Hall, 121 N Rouse Ave, Bozeman, Montana or by 390 Resolution 5540, Intent to Modify Lighting District 772 telephone at (406) 582-2320. Dated:January 23, 2024 BY ORDER OF THE CITY COMMISSION OF THE CITY OF BOZEMAN, MONTANA _________________________________________ Alex Newby Deputy City Clerk Legal Ad Publication Dates: Saturday, January 27, 2024 Saturday, February 3, 2024 391 Resolution 5540, Intent to Modify Lighting District 772 COMMISSION RESOLUTION NO. 5540 Resolution of Intent to ModifySILD No. 772 for the purpose of maintaining lighting and assessing the cost for maintenance and energy to all phases of Blackwood Groves and paying maintenance and energy costs relating thereto. AFFIDAVIT OF MAILING STATE OF MONTANA ) : ss County of Gallatin ) Alex Newby, Deputy City Clerk, being first duly sworn, says: That I deposited a copy of the Notice in regard to the owners in Special Improvement Lighting District No. 772, as listed in Exhibit "B", in the U.S. Post Office at Bozeman, Montana, on Friday, January 26, 2024, directed to the owners at the addresses shown on Exhibit "B". ______________________________ Alex Newby Deputy City Clerk Subscribed and sworn before me this 26 th day of January 2024. (Notarial Seal) _______________________________ Printed name ___________________ Notary Public for the State of Montana Residing at: see seal My Commission expires: see seal 392 393 Phase Blk Lot Address Sq Ft Owner Owner Address City State Zip 1 2 1 1625 Cambridge Dr 6,499 Blackwood Land Fund LLC 115 W Kagy Blvd, Suite L Bozeman MT 59715 1 2 2 1621 Cambridge Dr 5,999 Blackwood Land Fund LLC 115 W Kagy Blvd, Suite L Bozeman MT 59715 1 2 3 1617 Cambridge Dr 5,999 Blackwood Land Fund LLC 115 W Kagy Blvd, Suite L Bozeman MT 59715 1 2 4 1613 Cambridge Dr 6,000 Blackwood Land Fund LLC 115 W Kagy Blvd, Suite L Bozeman MT 59715 1 2 5 1609 Cambridge Dr 6,000 Blackwood Land Fund LLC 115 W Kagy Blvd, Suite L Bozeman MT 59715 1 2 6 1605 Cambridge Dr 6,000 Blackwood Land Fund LLC 115 W Kagy Blvd, Suite L Bozeman MT 59715 1 3 1 1525 Cambridge Dr 5,500 Blackwood Land Fund LLC 115 W Kagy Blvd, Suite L Bozeman MT 59715 1 3 2 1521 Cambridge Dr 5,500 Blackwood Land Fund LLC 115 W Kagy Blvd, Suite L Bozeman MT 59715 1 3 3 1517 Cambridge Dr 5,500 Blackwood Land Fund LLC 115 W Kagy Blvd, Suite L Bozeman MT 59715 1 3 4 1513 Cambridge Dr 5,500 Collins Road LLC 2001 Stadium Dr, Ste A Bozeman MT 59715 1 3 5 1509 Cambridge Dr 5,500 Collins Road LLC 2001 Stadium Dr, Ste A Bozeman MT 59715 1 3 6 1505 Cambridge Dr 5,500 Minarik, Gregory 3307 Sundance Dr Bozeman MT 59715 1 4 1 1411 Cambridge Dr 7,700 Revisky, Sandy 1406 Alder Creek Dr Bozeman MT 59715 1 4 2 1405 Cambridge Dr 7,700 Blackwood Land Fund LLC 115 W Kagy Blvd, Suite L Bozeman MT 59715 1 4 3 1401 Cambridge Dr 7,700 Blackwood Land Fund LLC 116 W Kagy Blvd, Suite L Bozeman MT 59715 1 4 4 1317 Cambridge Dr 7,700 Blackwood Land Fund LLC 117 W Kagy Blvd, Suite L Bozeman MT 59715 1 4 5 1309 Cambridge Dr 7,700 Inspiratto LLC 311 Doney Way Bozeman MT 59718 1 4 6 1301 Cambridge Dr 8,500 Inspiratto LLC 311 Doney Way Bozeman MT 59718 1 5 1 1225 Cambridge Dr 8,570 Blackwood Land Fund LLC 115 W Kagy Blvd, Suite L Bozeman MT 59715 1 5 2 1205 Cambridge Dr 8,815 Berkram, Cory D & Kristi L 1132 Alder Creek Dr Bozeman MT 59715 1 5 3 1201 Cambridge Dr 10,566 Berkram, Cory D & Kristi L 1132 Alder Creek Dr Bozeman MT 59715 1 5 4 1115 Cambridge Dr 12,879 Blackwood Land Fund LLC 115 W Kagy Blvd, Suite L Bozeman MT 59715 1 5 5 1107 Cambridge Dr 21,728 Syth, Andrea 300 W Main St, Ste Q Bozeman MT 59715 1 6 1 1624 Cambridge Dr 5,600 Blackwood Land Fund LLC 115 W Kagy Blvd, Suite L Bozeman MT 59715 1 6 2 1620 Cambridge Dr 4,400 Blackwood Land Fund LLC 115 W Kagy Blvd, Suite L Bozeman MT 59715 1 6 3 1616 Cambridge Dr 4,400 Blackwood Land Fund LLC 115 W Kagy Blvd, Suite L Bozeman MT 59715 1 6 4 1612 Cambridge Dr 4,400 Blackwood Land Fund LLC 115 W Kagy Blvd, Suite L Bozeman MT 59715 1 6 5 1608 Cambridge Dr 4,400 Blackwood Land Fund LLC 115 W Kagy Blvd, Suite L Bozeman MT 59715 1 6 6 1604 Cambridge Dr 5,600 Blackwood Land Fund LLC 115 W Kagy Blvd, Suite L Bozeman MT 59715 1 6 7 1623 Scotch Pine Ln 5,600 Blackwood Land Fund LLC 115 W Kagy Blvd, Suite L Bozeman MT 59715 1 6 8 1619 Scotch Pine Ln 4,400 Blackwood Land Fund LLC 115 W Kagy Blvd, Suite L Bozeman MT 59715 1 6 9 1615 Scotch Pine Ln 4,400 Blackwood Land Fund LLC 115 W Kagy Blvd, Suite L Bozeman MT 59715 1 6 10 1611 Scotch Pine Ln 4,400 Blackwood Land Fund LLC 115 W Kagy Blvd, Suite L Bozeman MT 59715 1 6 11 1607 Scotch Pine Ln 4,400 Blackwood Land Fund LLC 115 W Kagy Blvd, Suite L Bozeman MT 59715 1 6 12 1603 Scotch Pine Ln 5,600 Blackwood Land Fund LLC 115 W Kagy Blvd, Suite L Bozeman MT 59715 1 7 1 1522 Cambridge Dr 5,520 Blackwood Land Fund LLC 115 W Kagy Blvd, Suite L Bozeman MT 59715 1 7 2 1518 Cambridge Dr 4,400 Blackwood Land Fund LLC 115 W Kagy Blvd, Suite L Bozeman MT 59715 1 7 3 1514 Cambridge Dr 4,400 Blackwood Land Fund LLC 115 W Kagy Blvd, Suite L Bozeman MT 59715 1 7 4 1510 Cambridge Dr 4,400 Blackwood Land Fund LLC 115 W Kagy Blvd, Suite L Bozeman MT 59715 1 7 5 1506 Cambridge Dr 4,400 Blackwood Land Fund LLC 115 W Kagy Blvd, Suite L Bozeman MT 59715 1 7 6 1502 Cambridge Dr 5,520 Blackwood Land Fund LLC 115 W Kagy Blvd, Suite L Bozeman MT 59715 1 7 7 1523 Scotch Pine Ln 5,520 Blackwood Land Fund LLC 115 W Kagy Blvd, Suite L Bozeman MT 59715 1 7 8 1519 Scotch Pine Ln 4,400 Blackwood Land Fund LLC 115 W Kagy Blvd, Suite L Bozeman MT 59715 1 7 9 1515 Scotch Pine Ln 4,400 Blackwood Land Fund LLC 115 W Kagy Blvd, Suite L Bozeman MT 59715 1 7 10 1511 Scotch Pine Ln 4,400 Blackwood Land Fund LLC 115 W Kagy Blvd, Suite L Bozeman MT 59715 1 7 11 1507 Scotch Pine Ln 4,400 Blackwood Land Fund LLC 115 W Kagy Blvd, Suite L Bozeman MT 59715 1 7 12 1503 Scotch Pine Ln 5,520 Blackwood Land Fund LLC 115 W Kagy Blvd, Suite L Bozeman MT 59715 1 8 1 1416 Cambridge Dr 6,218 Blackwood Land Fund LLC 115 W Kagy Blvd, Suite L Bozeman MT 59715 1 8 2 1412 Cambridge Dr 5,000 Blackwood Land Fund LLC 115 W Kagy Blvd, Suite L Bozeman MT 59715 1 8 3 1408 Cambridge Dr 5,000 Blackwood Land Fund LLC 115 W Kagy Blvd, Suite L Bozeman MT 59715 1 8 4 1404 Cambridge Dr 5,000 Blackwood Land Fund LLC 115 W Kagy Blvd, Suite L Bozeman MT 59715 1 8 5 1400 Cambridge Dr 5,000 Blackwood Land Fund LLC 115 W Kagy Blvd, Suite L Bozeman MT 59715 1 8 6 1318 Cambridge Dr 5,000 Blackwood Land Fund LLC 115 W Kagy Blvd, Suite L Bozeman MT 59715 1 8 7 1314 Cambridge Dr 5,000 Blackwood Land Fund LLC 115 W Kagy Blvd, Suite L Bozeman MT 59715 1 8 8 1310 Cambridge Dr 5,000 Blackwood Land Fund LLC 115 W Kagy Blvd, Suite L Bozeman MT 59715 BLACKWOOD GROVES SUBDIVISION PHASES 1, 2, 3a AND 9 Original Acct #274740 - 1500 S 15th Ave 394 1 8 9 1306 Cambridge Dr 5,000 Blackwood Land Fund LLC 115 W Kagy Blvd, Suite L Bozeman MT 59715 1 8 10 1302 Cambridge Dr 6,217 Blackwood Land Fund LLC 115 W Kagy Blvd, Suite L Bozeman MT 59715 1 8 11 1414 Arbor Way 6,218 Blackwood Land Fund LLC 115 W Kagy Blvd, Suite L Bozeman MT 59715 1 8 12 1410 Arbor Way 5,000 Blackwood Land Fund LLC 115 W Kagy Blvd, Suite L Bozeman MT 59715 1 8 13 1406 Arbor Way 5,000 Blackwood Land Fund LLC 115 W Kagy Blvd, Suite L Bozeman MT 59715 1 8 14 1402 Arbor Way 5,000 Blackwood Land Fund LLC 115 W Kagy Blvd, Suite L Bozeman MT 59715 1 8 15 1320 Arbor Way 5,000 Blackwood Land Fund LLC 115 W Kagy Blvd, Suite L Bozeman MT 59715 1 8 16 1316 Arbor Way 5,000 Blackwood Land Fund LLC 115 W Kagy Blvd, Suite L Bozeman MT 59715 1 8 17 1312 Arbor Way 5,000 Blackwood Land Fund LLC 115 W Kagy Blvd, Suite L Bozeman MT 59715 1 8 18 1308 Arbor Way 5,000 Blackwood Land Fund LLC 115 W Kagy Blvd, Suite L Bozeman MT 59715 1 8 19 1304 Arbor Way 5,000 Blackwood Land Fund LLC 115 W Kagy Blvd, Suite L Bozeman MT 59715 1 8 20 1302 Arbor Way 6,217 Grand Oaks QOZB LLC 3556 Stoner Ave Los Angeles CA 90066 1 10 1 3320 Canter Ave 43,740 Granite Owner LLC 115 W Kagy Blvd, Suite L Bozeman MT 59715 1 10 2 3325 Winterthur Ave 43,740 Granite Owner LLC 115 W Kagy Blvd, Suite L Bozeman MT 59715 1 11 1 3316 Winterthur Ave 43,497 Granite Owner LLC 115 W Kagy Blvd, Suite L Bozeman MT 59715 1 11 2 3327 S 15th Ave 43,497 Granite Owner LLC 115 W Kagy Blvd, Suite L Bozeman MT 59715 2 14 1 6861 Blackwood Rd 199,809 Blackwood Land Fund LLC 115 W Kagy Blvd, Suite L Bozeman MT 59715 2 15 1 1500 Victoria St 109458 Blackwood Land Fund LLC 115 W Kagy Blvd, Suite L Bozeman MT 59715 2 16 1 6911 Blackwood Rd 71979 Blackwood Land Fund LLC 115 W Kagy Blvd, Suite L Bozeman MT 59715 3A 9 1 1008 Arbor Way 41715 Blackwood Land Fund LLC 115 W Kagy Blvd, Suite L Bozeman MT 59715 3A 9 2 1170 Arbor Way 19470 Blackwood Land Fund LLC 115 W Kagy Blvd, Suite L Bozeman MT 59715 3A 9 3 1188 Cambridge Dr 5917 Blackwood Land Fund LLC 115 W Kagy Blvd, Suite L Bozeman MT 59715 3A 9 4 1184 Cambridge Dr 5680 Blackwood Land Fund LLC 115 W Kagy Blvd, Suite L Bozeman MT 59715 3A 9 5 1180 Cambridge Dr 5664 Blackwood Land Fund LLC 115 W Kagy Blvd, Suite L Bozeman MT 59715 3A 9 6 1176 Cambridge Dr 5000 Blackwood Land Fund LLC 115 W Kagy Blvd, Suite L Bozeman MT 59715 3A 9 7 1172 Cambridge Dr 5000 Blackwood Land Fund LLC 115 W Kagy Blvd, Suite L Bozeman MT 59715 3A 9 8 1168 Cambridge Dr 5000 Blackwood Land Fund LLC 115 W Kagy Blvd, Suite L Bozeman MT 59715 3A 9 9 1164 Cambridge Dr 4986 Blackwood Land Fund LLC 115 W Kagy Blvd, Suite L Bozeman MT 59715 3A 9 10 3407 S 11th Ave 3989 Blackwood Land Fund LLC 115 W Kagy Blvd, Suite L Bozeman MT 59715 3A 9 11 3403 S 11th Ave 2730 Blackwood Land Fund LLC 115 W Kagy Blvd, Suite L Bozeman MT 59715 3A 9 12 3399 S 11th Ave 2730 Blackwood Land Fund LLC 115 W Kagy Blvd, Suite L Bozeman MT 59715 3A 9 13 3395 S 11th Ave 2729 Blackwood Land Fund LLC 115 W Kagy Blvd, Suite L Bozeman MT 59715 3A 9 14 3391 S 11th Ave 2839 Blackwood Land Fund LLC 115 W Kagy Blvd, Suite L Bozeman MT 59715 3A 9 15 3387 S 11th Ave 2899 Blackwood Land Fund LLC 115 W Kagy Blvd, Suite L Bozeman MT 59715 3A 9 16 3383 S 11th Ave 2924 Blackwood Land Fund LLC 115 W Kagy Blvd, Suite L Bozeman MT 59715 3A 9 17 3379 S 11th Ave 2928 Blackwood Land Fund LLC 115 W Kagy Blvd, Suite L Bozeman MT 59715 3A 9 18 3375 S 11th Ave 2928 Blackwood Land Fund LLC 115 W Kagy Blvd, Suite L Bozeman MT 59715 3A 9 19 3367 S 11th Ave 2928 Blackwood Land Fund LLC 115 W Kagy Blvd, Suite L Bozeman MT 59715 3A 9 20 3363 S 11th Ave 2928 Blackwood Land Fund LLC 115 W Kagy Blvd, Suite L Bozeman MT 59715 3A 9 21 3359 S 11th Ave 3037 Blackwood Land Fund LLC 115 W Kagy Blvd, Suite L Bozeman MT 59715 9 1 1 3351 Canter Ave 211,275 Blackwood Land Fund LLC 115 W Kagy Blvd, Suite L Bozeman MT 59715 9 13 1 1800 Victoria St 130,612 Blackwood Land Fund LLC 115 W Kagy Blvd, Suite L Bozeman MT 59715 1,430,433.00 32.83822314 395 Memorandum REPORT TO:City Commission FROM:Jesse DiTommaso, Economic Development Specialist David Fine, Economic Development Program Manager Brit Fontenot, Economic Development Director SUBJECT:Resolution 5554, Authorizing a Change Order Number One with Blanton Construction, LLC for the Aspen Street Bridge MEETING DATE:January 23, 2024 AGENDA ITEM TYPE:Agreement - Vendor/Contract RECOMMENDATION:Resolution 5554, authorize a change order number one with Blanton Construction, LLC for the Aspen Street Bridge. STRATEGIC PLAN:2.2 Infrastructure Investments: Strategically invest in infrastructure as a mechanism to encourage economic development. BACKGROUND:The Aspen Street Bridge will provide for safe pedestrian connectivity through a trail extension and a non-vehicular crossing of Bozeman Creek. The project also includes sidewalk along one side of East Aspen Street between the creek and North Rouse Avenue. This will result in the improvements along yet another street within the Northeast Urban Renewal District and will tie into the new improvements to North Rouse Avenue. Specifically, the bridge will be located on East Aspen Street between the intersection of Rouse and the existing gravel trail along the east side of Bozeman Creek. This project has been included in the Northeast Urban Renewal District's work plan and budget since Fiscal Year 2011. The project was included in the FY23-FY24 Northeast Urban Renewal Board's Budget. The original bridge was designed as a custom suspension bridge. Due to permitting issues with the Army Corps of Engineers, the construction of the bridge will not occur until 2024. City staff considered the increased cost associated with the delay in construction as well as the long-term increased cost of maintenance on a suspension bridge and has elected to change the bridge superstructure to a prefabricated 10 foot by 45 foot steel bridge with a timber deck, similar to the bridge connecting the Library and Lindley Park. This change order reflects the reduction in cost associated with the change to a prefabricated bridge. Additionally, this change order reflects an extension of the contract with Blanton Construction through December 31, 2024. Please note an additional change order related to abutment required for the 396 new bridge is anticipated once the bridge abutment design is finalized. UNRESOLVED ISSUES:None. ALTERNATIVES:As recommended by the Commission. FISCAL EFFECTS:This change order reflects a decrease of $23,062 from the original bid price provided by Blanton Construction. Attachments: Resolution 5554 Change Order 1 - Aspen Street Ped Bridge.pdf Change Order 1 - Aspen Street Ped Bridge_20240105.pdf Report compiled on: January 8, 2024 397 Version February 2023 RESOLUTION 5554 A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF BOZEMAN, MONTANA, APPROVING ALTERATION / MODIFICATION OF CONTRACT WITH BLANTON CONSTRUCTION, LLC WHEREAS, the City Commission did on, March 24, 2023, authorize the award of the bid for the Aspen Street Pedestrian Bridge, to Blanton Construction, LLC, Belgrade, Montana; and WHEREAS, Section 7-5-4308, Montana Code Annotated, provides that any such alterations or modifications 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 or 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 alterations to the contract between the City of Bozeman, a municipal corporation, and Blanton Construction, LLC and Belgrade, Montana as contained in the Change Order 1, attached hereto, be and the same are hereby approved; and the City Manager is hereby authorized and directed to execute the contract change order for and on behalf of the City; and the City Clerk is authorized and directed to attest such signature. PASSED, ADOPTED, AND APPROVED by the City Commission of the City of Bozeman, Montana, at a regular session thereof held on the 23rd day of January, 2023. ___________________________________ Terry Cunningham Mayor 398 Version February 2023 ATTEST: ___________________________________ MIKE MAAS City Clerk APPROVED AS TO FORM: ___________________________________ GREG SULLIVAN City Attorney 399 Page 1 of 3 \\klj-solutions.com\dfs\Data\Projects\City\MT\Bozeman\2004_01034 Aspen Street Pedestrian Bridge\Construction\ChangeOrders\Change Order 1 - Aspen Street Ped Bridge_20240105.doc CHANGE ORDER No. 01 DATE OF ISSUANCE January 23, 2024 EFFECTIVE DATE January 23, 2024 OWNER City of Bozeman CONTRACTOR Blanton Construction, LLC Contract: May 11, 2020 Project: Aspen Street Pedestrian Bridge OWNER's Contract No. ENGINEER KLJ Engineering, LLC ENGINEER's Contract No. You are directed to make the following changes in the Contract Documents: Description: The city has elected to change the Bridge Superstructure to a prefabricated 10 ft x 45 ft steel bridge with a timber deck. The change will require the abutments to be redesigned based on calculations from the bridge supplier. Upon execution of the change order, a payment of 25% of the Bridge Superstructure price will be made to the contractor for design calculations and shop drawings to be provided by the bridge supplier. The remaining 75% will be paid upon the completion and placement of the Bridge Superstructure. A time extension is included. The original contract included 365 days from the date when the Contract Times Commenced (June 12, 2023). A time extension of 202 days will be included to extend the contract time to December 31, 2024. Note: An additional change order is anticipated once the abutment design is final to account for any changes to the other bid items. Reason for Change Order: Through conversations between the Owner, Engineer and the Contractor, a prefabricated bridge was identified as an alternative. Attachments: Proposal attached CHANGE IN CONTRACT PRICE: CHANGE IN CONTRACT TIMES: Original Contract Price $ 367,137.00 Original Contract Times: 365 Calendar Days Substantial Completion: 365 Calendar Days Ready for final payment: 365 Calendar Days (days or dates) Net Increase (Decrease) from previous Change Orders: $ 0.00 Net change from previous Change Orders Substantial Completion: 0 Ready for final payment: 0 (days) Contract Price prior to this Change Order: $ 367,137.00 Contract Times prior to this Change Order: Substantial Completion: 365 Calendar Days Ready for final payment: 365 Calendar Days (days or dates) Net (decrease) of this Change Order: $ (23,062.00) Net increase (decrease) this Change Order: Substantial Completion: 202 Calendar Days Ready for final payment: 202 Calendar Days (days) Contract Price with all approved Change Orders: $ 344,075.00 Contract Times with all approved Change Orders: Substantial Completion: 567 Calendar Days Dec 31, 2024 Ready for final payment: 567 Calendar Days Dec 31, 2024 (days or dates) 400 Page 2 of 3 \\klj-solutions.com\dfs\Data\Projects\City\MT\Bozeman\2004_01034 Aspen Street Pedestrian Bridge\Construction\ChangeOrders\Change Order 1 - Aspen Street Ped Bridge_20240105.doc Contractor certifies and agrees that there are no additional costs or claims for extra work, additional time, delays or omitted items, of any nature whatsoever, associated with the subject change order items, except as identified and set forth herein and unless expressly stated otherwise in the Change Order. And further, that the price agreed-upon herein represents the full cost and value for the subject work performed and the materials supplied under the terms of the contract and that the work quantities and value were properly determined and are correct. CONTRACTOR (Authorized Signature) Date RECOMMENDED BY: APPROVED BY: (ENGINEER - Signature) Date OWNER (Authorized Signature) Date EJCDC 1910-8-B (1996 Edition Prepared by the Engineers Joint Contract Documents Committee and endorsed by The Associated General Contractors of America and the Construction Specifications Institute. Change Order 1 Detail Item No. Description Unit Qty. Unit Price Scheduled Value 209 Bridge Superstructure LS (1.00) $127,028.00 $(127,028.00) 209 Bridge Superstructure LS 1.00 $103,966.00 $103,966 Schedule Total $(23,062.00) 401 Page 3 of 3 \\klj-solutions.com\dfs\Data\Projects\City\MT\Bozeman\2004_01034 Aspen Street Pedestrian Bridge\Construction\ChangeOrders\Change Order 1 - Aspen Street Ped Bridge_20240105.doc CHANGE ORDER INSTRUCTIONS A. GENERAL INFORMATION This document was developed to provide a uniform format for handling contract changes that affect Contract Price or Contract Times. Changes that have been initiated by a Work Change Directive must be incorporated into a subsequent Change Order if they affect Price or Times. Changes that affect Contract Price or Contract Times should be promptly covered by a Change Order. The practice of accumulating Change Orders to reduce the administrative burden may lead to unnecessary disputes. If Milestones have been listed in the Agreement, any effect of a Change Order thereon should be addressed. For supplemental instructions and minor changes not involving a change in the Contract Price or Contract Times, a Field Order should be used. B. COMPLETING THE CHANGE ORDER FORM Engineer normally initiates the form, including a description of the changes involved and attachments based upon documents and proposals submitted by Contractor, or requests from Owner, or both. Once Engineer has completed and signed the form, all copies should be sent to Owner or Contractor for approval, depending on whether the Change Order is a true order to the Contractor or the formalization of a negotiated agreement for a previously performed change. After approval by one contracting party, all copies should be sent to the other party for approval. Engineer should make distribution of executed copies after approval by both parties. 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QUOTE 10' x 45' Pre-fabricated Pedestrian Bridge DESCRIPTION * Hardware bolts and fasteners may include foreign/import content. It is TrueNorth Steel’s intent to maximize domestic sourcing of raw materials and hardware when available. • Hardware - Weathering steel splice bolts (if required) and bearing assemblies (includes (8) anchor bolts) * TrueNorth Steel will design the anchor bolts for shear and tension of the bolt only for lateral and uplift forces. Embedment and foundation checks by the foundation engineer of record. Any request for TNS to perform checks will be at the cost of the contractor. BOM Reference: 17782 Quote #: Page 1 of 4 405 Memorandum REPORT TO:City Commission FROM:Nicholas Ross, Director of Transportation and Engineering Kevin Handelin, Solid Waste Superintendent SUBJECT:Resolution 5566 Authorizing Change Order No. 1 with Roset and Associates for the Sand Interceptor in the Equipment Storage Building – Solid Waste Building Remodel and Garage Addition Project MEETING DATE:January 23, 2024 AGENDA ITEM TYPE:Agreement - Vendor/Contract RECOMMENDATION:Approve Resolution 5566 Authorizing Change Order No. 1 with Roset and Associates for the Sand Interceptor in the Equipment Storage Building – Solid Waste Building Remodel and Garage Addition Project. STRATEGIC PLAN:4.3 Strategic Infrastructure Choices: Prioritize long-term investment and maintenance for existing and new infrastructure. BACKGROUND:On April 4, 2023 Commission authorized award of a prime contract with Roset and Associates, Inc. to complete the Solid Waste Facility Office Remodel and Garage Expansion. Attached is a copy of Resolution 5566 and Change Order number 1 for the above referenced project. This change order will be adding a sand interceptor in the northwest interior of the truck storage area of the building. This area in the winter/spring season receives a considerable amount of water/sediment that collects on the floor from the overnight storage of equipment. Currently, there is no drainage system in place to collect and remove water/sediment in this area. This sand interceptor will also serve as a hub for collection of water/sediment of future equipment storage building additions. The new sand interceptor is adjacent to the approved garage addition project, thus requiring minimal tie-in to the drain system of the approved addition project. Completion of the work now will save substantial cost for the city in the future should anticipated facility expansions continue. UNRESOLVED ISSUES:None ALTERNATIVES:As suggested by the City Commission. FISCAL EFFECTS:Increase of $46,540.00 from $773,800.00 to $820,340.00 Project Number SW61. Attachments: 406 Change Order #1 Resolution 5566 Solid Waste Facility Remodel CO-1 Report compiled on: January 10, 2024 407 408 409 410 411 412 413 414 415 Version February 2023 RESOLUTION 5566 A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF BOZEMAN, MONTANA, WHEREAS, the City Commission did, on the 4th day of April 2023, authorize award of the bid for the Solid Waste Facility Office Remodel and Garage Addition Project to Roset and Associates, Inc., Bozeman, Montana; and WHEREAS, Section 7-5-4308, Montana Code Annotated, provides that any such alterations or modifications 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 or 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, to wit: the proposed modifications and/or alterations to the contract between the City of Bozeman, a municipal corporation, and Roset and Associates, Inc., as contained in Change Order No. 1, attached hereto, be and the same are hereby approved; and the City Manager is hereby authorized and directed to execute the contract change order for and on behalf of the City; and the City Clerk is authorized and directed to attest such signature. 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____. ___________________________________ Terry Cunningham Mayor 416 Version February 2023 ATTEST: ___________________________________ Alex Newby Deputy City Clerk APPROVED AS TO FORM: ___________________________________ GREG SULLIVAN City Attorney 417 Memorandum REPORT TO:City Commission FROM:Bernie Massey, Assistant Treasurer Laurae Clark, Treasurer Melissa Hodnett, Finance Director SUBJECT:Resolution 5571 Intent to Create a Special Improvement Lighting District 783 for Phases A & C of Sundance Minor Subdivision MEETING DATE:January 23, 2024 AGENDA ITEM TYPE:Resolution RECOMMENDATION:Intent to Create a Special Improvement Lighting District 783 for Phases A & C of Sundance Minor Subdivision 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: (1) The council of any city or town is authorized to: (a) create special improvement districts embracing any street or streets or public highway therein or portions thereof and property adjacent thereto or property which may be declared by said council to be benefited by the improvement to be made for the purpose of lighting such street or streets or public highway; (b) require that all or any portion of the cost of installing and maintaining such lighting system be paid by the owners of the property embraced within the boundaries of such districts; and (c) assess and collect such portion of such cost by special assessment against said property. (2) The governing body may create special lighting districts on any street or streets or public highway for the purpose of lighting them and assess the costs for installation and maintenance to property abutting thereto and collect the costs by special assessment against the property UNRESOLVED ISSUES:None ALTERNATIVES:As suggested by the City Commission. FISCAL EFFECTS:As a result of creating this lighting district, the City will pay the associated power bills and schedule system maintenance. We will recover these costs by billing property owners each year on their City Assessment bill. It is estimated to cost $56.08 per acre within the district or $884.64 annually for 418 the entire district, or on an average size lot of 229,053 square feet the annual estimated cost would be $294.79, which is payable semiannually. Attachments: Resolution 5571-Intent to Create SILD 783.docx Exhibit A.pdf Exhibit B.pdf Report compiled on: January 10, 2024 419 Page 1 of 10 RESOLUTION 5571 A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF BOZEMAN, MONTANA, RELATING TO SPECIAL IMPROVEMENT LIGHTING DISTRICT NO. 783 (PHASES A & C OF SUNDANCE MINOR SUBDIVISION)DECLARING IT TO BE THE INTENTION OF THE CITY COMMISSION TO CREATE THE DISTRICT FOR THE PURPOSE OF MAINTAINING LIGHTING IMPROVEMENTS AND ASSESSING THE COSTS OF MAINTENANCE AND ENERGY THEREFOR TO BENEFITTED PROPERTY BY THE LEVY OF SPECIAL ASSESSMENT. BE IT RESOLVED by the City Commission (the “Commission”) of the City of Bozeman (the “City”), Montana, as follows: Section 1 Intention to Create District; Proposed Improvements.It is the intention of this Commission to create and establish in the City under Montana Code Annotated, Title 7, Chapter 12, Part 43, as amended, a special improvement lighting district to serve Phases A & C of Sundance Minor Subdivision (the “District”) for the purpose of maintenance and energy costs.The district will pay the maintenance and energy costs for seven (7) ELA Lighting LED 75 watt single down swept luminaire on round tapered steel poles,mounted at 25 feet and five (5) ELA lighting LED 135 watt single down swept luminaire on round tapered steel poles, mounted at 30 feet per City of Bozeman standards. The poles will be black powder coated over steel. The initial monthly charge per fixture per month (the “Monthly Charge”) is estimated as follows: $6.15 per LED fixture. This calculates to $885.60 annually. Section 2 420 Resolution 5571, Intent to Create Lighting District 783 Page 2 of 10 Number of District. The District, if the same shall be created and established, shall be known and designated as Special Improvement Lighting District No. 783 (Phases A & C of Sundance Minor Subdivision) of the City of Bozeman, Montana. Section 3 Boundaries of District. The limits and boundaries of the District are depicted on a map attached as Exhibit A hereto (which is hereby incorporated herein and made a part hereof), which boundaries are designated and confirmed as the boundaries of the District. A listing of each of the properties in the District is shown on Exhibit B hereto (which is hereby incorporated herein and made a part hereof). Section 4 Benefited Property. The District and territory included within the limits and boundaries described in Section 3 and as shown on Exhibit A are hereby declared to be the special lighting district and the territory which will benefit and be benefited by the Improvements and will be assessed for the costs of the Improvements as described in Section 1. The Improvements, in the opinion of this Commission, are of more than local and ordinary benefit. The property included within said limits and boundaries is hereby declared to be the property benefited by the Improvements. Section 5 Assessment Methods. All properties within the District are to be assessed for a portion of the maintenance and energy costs, as specified herein. The maintenance and energy costs shall be assessed against the property in the District benefiting, based on the actual area method of assessment described in Sections 7-12-4323, MCA, as particularly applied and set forth in this Section 5.The annual maintenance and energycostsare estimated at $885.60, and shall be assessed against each lot, tract or parcel of land in the District for that part of the costs that the area of such lot, tract or parcel bears to the total area of all lots, tracts or parcels of land in the District, exclusive of streets, avenues and alleys. The total area of the District to be assessed is 15.775 acres, or 421 Resolution 5571, Intent to Create Lighting District 783 Page 3 of 10 687,159.00 square feet, exclusive of parks and open space. The initial costs of the Improvements per acre shall be $56.14 or $0.001289 per square foot annually. Section 6 Payment of Assessments. Special assessments for the annual maintenance and energy costs are estimated at $885.60, plus any increases, as may be permitted by the Public Service Commission, and any additional authorized charges shall be levied each year against all properties in the District and shall be payable in equal semiannual installments. The first year of special assessment billing will include an additional amount not to exceed $500 for publication and mailing associated with creation of the District which shall be assessed in the same manner as the Improvements resulting in a cost not to exceed $87.84 per acre, or $0.002016 per square foot. Section 7 Extraordinary Repair or Replacement. The maintenance and energy costs and assessments set forth in Section 1 and 5 are based on normal conditions and do not cover charges for repair and/or replacement. The City may make an additional charge to the District for costs of labor and actual material costs for repairs and/or replacement of the fixtures for damage caused by third parties and not paid by such third parties. The City will assess such costs and charges against the properties in the District in the same manner as the other assessment is made. Section 8 Discontinuation of District. If at any time after the initial term of the District a petition is presented to the City Commission, signed by the owners or agents of more than three-fourths of the total amount of property within the District, asking that the maintenance and operation of the special lighting system and the furnishing of electrical current in the district be discontinued, or if a majority of the City Commission votes to discontinue the District, the City Commission shall, by resolution, provide for discontinuing the maintenance and operation of the lighting system. If the Commission has, prior to the presentation of a petition or by a majority vote of the Commission to discontinue the District, entered into any contract for the maintenance and operation of the lighting 422 Resolution 5571, Intent to Create Lighting District 783 Page 4 of 10 system, the maintenance and operation may not be discontinued until after the expiration of the contract. Section 9 Public Hearing; Protests. At any time within fifteen (15) days from and after the date of the first publication of the notice of the passage and approval of this resolution, any owner of real property within the District subject to assessment and taxation for the cost and expense of maintenance and energy may make and file with the City Clerk until 5:00 p.m., M.T., on the expiration date of said 15-day period (February 12, 2024) written protest against the proposed maintenance and energy costs, or against the extension or creation of the District or both, and this Commission will at its next regular meeting after the expiration of the fifteen (15) days in which such protests in writing can be made and filed, proceed to hear all such protests so made and filed; which said regular meeting will be held on February 27, 2024 at 6 pm in BozemanCity Hall, City Commission Room, 121 N Rouse Ave. Section 10 Notice of Passage of Resolution of Intention. The CITY CLERK is hereby authorized and directed to publish or cause to be published a copy of a notice of the passage of this resolution in the Bozeman Daily Chronicle, a newspaper of general circulation in the county on January 27, 2024 and February 3, 2024 in the form and manner prescribed by law, and to mail or cause to be mailed a copy of said notice to every person, firm, corporation, or the agent of such person, firm, or corporation having real property within the District listed in his or her name upon the last completed assessment roll for state, county, and school district taxes, at his last-known address, on or before the same day such notice is first published. PASSED, ADOPTED, AND APPROVED by the City Commission of the City of Bozeman, Montana, at a regular session thereof held on the 23rd day of January 2024. ___________________________________ TERENCE CUNNINGHAM Mayor 423 Resolution 5571, Intent to Create Lighting District 783 Page 5 of 10 ATTEST: ____________________________________ ALEX NEWBY Deputy City Clerk APPROVED AS TO FORM: ___________________________________ GREG SULLIVAN City Attorney 424 Resolution 5571, Intent to Create Lighting District 783 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. 5571, entitled: A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF BOZEMAN, MONTANA, RELATING TO SPECIAL IMPROVEMENT LIGHTING DISTRICT NO. 783 (PHASES A & C OF SUNDANCE MINOR SUBDIVISION) DECLARING IT TO BE THE INTENTION OF THE CITY COMMISSION TO CREATE THE DISTRICT FOR THE PURPOSE OF MAINTAINING LIGHTING IMPROVEMENTS AND ASSESSING THE COSTS FOR MAINTENANCE AND ENERGY THEREFOR TO BENEFITTED PROPERTY BY THE LEVY OF SPECIAL ASSESSMENT,(the “Resolution”), on file in the original records of the City in my legal custody; that the Resolution was duly adopted by the City Commission of the City of Bozeman at a meeting on January 23, 2024 and that the meeting was duly held by the City Commission and was attended throughout by a quorum, pursuant to call and notice of such meeting given as required by law; and that the Resolution has not as of the date hereof been amended or repealed. I further certify that, upon vote being taken on the Resolution at said meeting, the following Commissioners voted in favor thereof: _____ ____________________ ; voted against the same: ___________ ___ ; abstained from voting thereon: ________________ ; or were absent: _______________ . WITNESS my hand officially this 23 rd day of January 2024. ___________________________________ ALEX NEWBY DEPUTY CITY CLERK 425 Resolution 5571, Intent to Create Lighting District 783 NOTICE OF PASSAGE OF RESOLUTION OF INTENTION TO CREATE SPECIAL IMPROVEMENT LIGHTING DISTRICT NO. 783 (PHASES A & C OF SUNDANCE MINOR SUBDIVISION) CITY OF BOZEMAN, MONTANA NOTICE IS HEREBY GIVEN that on January 23, 2024, the City Commission (the “Commission”) of the City of Bozeman, Montana (the “City”), adopted a Resolution of Intention No. 5571 to create Special Improvement Lighting District No. 783 (the “District”) for the purpose of maintaining lighting and assessing the cost for maintenance and energy to PHASES A & C OF SUNDANCE MINOR SUBDIVISION, and paying maintenance and energy costs relating thereto. A complete copy of the Resolution of Intention (the “Resolution”) No. 5571 is on file with the CITY CLERK which more specifically describes the nature of the costs, the boundaries and the area included in the District, the location of the Improvements and other matters pertaining thereto and further particulars. A list of properties in the District and the amount of the initial assessment accompanies this notice. The Resolution and accompanying exhibits may be also viewed on the City’s website at www.bozeman.net. The district will pay the maintenance and energy costs for seven (7) ELA Lighting LED 75 watt single down swept luminaire on round tapered steel poles, mounted at 25 feet and five (5) ELA lighting LED 135 watt single down swept luminaire on round tapered steel poles, mounted at 30 feet per City of Bozeman standards. The poles will be black powder coated over steel. The initial monthly charge per fixture per month (the “Monthly Charge”) is estimated as follows: $6.15 per LED fixture. This calculates to $885.60 annually. All properties in the District will be assessed for their proportionate share of the costs of the Improvements on an “area basis” annually and will be payable in equal semiannual installments. The annual costs of the Improvements at the initial Monthly Charge is $73.80 per year for the entire District. The total area of the District to be assessed is 15.775 acres, or 687,159.00 square feet, exclusive of parks and open space. The initial costs of the Improvements per acre shall be $56.16, or $0.001289 per square foot. The annual assessments for costs of the 426 Resolution 5571, Intent to Create Lighting District 783 Improvements may be increased as approved by the Public Service Commission and may be increased to cover extraordinary expenses of repair and maintenance. The first year of special assessment billing will include an additional amount not to exceed $500 for publication and mailing associated with creation of the District which shall be assess in the same manner as the Improvements resulting in a cost not to exceed $87.84 per acre, or $0.002016 per square foot. On Tuesday, February 27, 2024, at 6:00 p.m., in the Commission Room at City Hall 121 N Rouse Ave, Bozeman, Montana, the City Commission will conduct a public hearing to hear and pass upon all written protests against the creation or extension of the District, or the Improvements. Written protests against the creation or extension of the District and the costs may be filed by an agent, person, firm or corporation owning real property within the proposed District whose property is liable to be assessed for the costs. Such protests must be delivered to the City Clerk at City Hall, 121 N Rouse Ave, Bozeman, Montana not later than 5:00 p.m., M.T., on February 12, 2024. If protests are received by the deadline, the City Commission will hear and pass upon all written protests against the creation or extension of the District, or the Improvements on Tuesday, February 27, 2023, at 6:00 p.m., in the Commission Room at City Hall 121 N Rouse Ave, Bozeman, Montana. If no protests are received, the City Commission may, on the same date, time and location, pass a Resolution authorizing the creation or modification of the district. Further information regarding the proposed District or other matters in respect thereof may be obtained from the City Clerk at City Hall, 121 N Rouse Ave, Bozeman, Montana or by telephone at (406) 582-2320. Dated: January 23, 2024. BY ORDER OF THE CITY COMMISSION OF THE CITY OF BOZEMAN, MONTANA 427 Resolution 5571, Intent to Create Lighting District 783 _________________________________________ ALEX NEWBY Deputy City Clerk Legal Ad Publication Dates: Saturday, January 27, 2024 Saturday, February 3, 2024 428 Resolution 5571, Intent to Create Lighting District 783 RESOLUTION 5571 Resolution of Intent to create SILD No. 783 for the purpose of maintaining lighting and assessing the cost for maintenance and energy to PHASES A & C OF SUNDANCE MINOR SUBDIVISION and paying maintenance and energy costs relating thereto. AFFIDAVIT OF MAILING STATE OF MONTANA ) : ss County of Gallatin ) ALEX NEWBY, Deputy City Clerk, being first duly sworn, says: That I cause to be mailed first class the Notice in regards to the owners in Special Improvement Lighting District No. 783, as listed in Exhibit "B", on Friday, January 26, 2024, directed to the owners at the addresses shown on Exhibit "B". ______________________________ ALEX NEWBY Deputy City Clerk Subscribed and sworn before me this 26 th day of January, 2024. (Notarial Seal) _______________________________ Printed Name____________________ Notary Public for the State of Montana Residing at: see seal My Commission expires: see seal 429 N89°44'02"E 765.80'N00°16'28"W 666.60'N89°43'32"E 406.00'S00°16'16"W 1045.71'S89°43'38"W 615.34'S00°15'44"E 599.91'S89°43'23"W 385.05'N00°16'34"W 1039.07'S89°43'38"W 161.30'S00°16'22"E60.00'SURVEYED BY:QUALITY CHECK:JOB NO.FIELDBOOKDRAWN BY:DATE:Engineeringtdhengineering.comMONTANAWASHINGTONIDAHOGREAT FALLS-BOZEMAN-KALISPELL-SHELBYLEWISTONSPOKANENORTH DAKOTAWATFORD CITYB13-016430 SHEETDESIGNED BY:QUALITY CHECK:JOB NO.FIELDBOOKDRAWN BY:DATE:SUNDANCE MINOR SUBDIVISION PHASES A & C BOZEMAN, MONTANA B13-016XX7/31/18REV DATE REVISION Engineering 234 E. BABCOCK ST., SUITE 3 • BOZEMAN, MONTANA 59715 406.586.0277 • tdhengineering.com ANLE FNESSION GI TONMANEER AOPR7/31/181 12.4.18 DEQ REVIEW UPDATES 2 2.20.19 GALLOWAY SD & GRADE UPDATESB13-016-C7.0-LIGHTING PLANLIGHTING PLAN .DWGC7.0KJMACHCJCCALL BEFORE YOU DIG1 (800) 424-5555ONE CALL NUMBER48 HOUR NOTICE REQUIREDLEGEND CONSTRUCTION NOTES RECORD DRAWINGSAPPROVEDNAMETITLEDATETHOMAS, DEAN & HOSKINS, INC.ENGINEERING CONSULTANTSProject Manager 6.9.19431 ANLE FNESSION GI TONMANEER AOPRSHEETDESIGNED BY:QUALITY CHECK:JOB NO.FIELDBOOKDRAWN BY:DATE:B13-016N/A05.12.20REV DATE REVISION Engineering tdhengineering.com SUNDANCE MINOR SUBDIVISION EQUESTRIAN LN BOZEMAN, MONTANA LEGEND CONSTRUCTION NOTES B13-016-C5.0-LIGHTING AND STRIPING PLANLIGHTING AND STRIPING PLAN EQUESTRIAN LANEC5.0DWGMMOACHACHEQUESTRIAN LANE LIGHTING (PLAN)CONSTRUCTION NOTES EQUESTRIAN LANE STRIPING AND SIGNING (PLAN)RECORD DRAWINGSAPPROVEDNAMETITLEDATETHOMAS, DEAN & HOSKINS, INC.ENGINEERING CONSULTANTSProject Manager 2/18/21432 Phase Lot Address Sq Ft Owner Owner Address City State ZipA 2 3676 Galloway ST 400,273 Baxter Meadows Land Partners LLC C/O Brighton Crop Attn B Alder 2929 W Navigator Dr Ste 400 Meridian ID 83642C 3 3540 Galloway St 145,447 Big 406 LLC 4791 Victory St Bozeman MT 59718C 4 3350 Galloway St 141,439 Big 406 LLC 4791 Victory St Bozeman MT 59718687,159.0015.775Phases A & C of Sundance Subdivision433 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 Final Adoption to Establish a 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:January 23, 2024 AGENDA ITEM TYPE:Ordinance RECOMMENDATION:Finally 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 434 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 435 436 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 437 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; 438 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. 439 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. 440 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. ____________________________________ TERENCE CUNNINGHAM Deputy 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 ________________, 2024. The effective date of this ordinance is _____________, ____, 2024. _________________________________ TERENCE CUNNINGHAM Mayor ATTEST: _______________________________ MIKE MAAS City Clerk APPROVED AS TO FORM: _________________________________ GREG SULLIVAN City Attorney 441 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 Final 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:January 23, 2024 AGENDA ITEM TYPE:Ordinance RECOMMENDATION:Finally 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 442 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 22, 2023 443 444 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 445 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. 446 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. 447 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. 448 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. ____________________________________ TERENCE CUNNINGHAM Deputy 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 ________________, 2024. The effective date of this ordinance is _____________, ____, 2024. _________________________________ TERENCE CUNNINGHAM Mayor ATTEST: _______________________________ MIKE MAAS City Clerk APPROVED AS TO FORM: _________________________________ GREG SULLIVAN City Attorney 449 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 2135, Final Adoption to Establish an Initial Zoning Designation of REMU (Residential Emphasis Mixed-Use District) in Association with the Annexation of 86 Acres, the Project Eighty-6 Annexation, Application 22113 MEETING DATE:January 23, 2024 AGENDA ITEM TYPE:Ordinance RECOMMENDATION:Finally adopt Ordinance 2135 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 22113 on December 6, 2022 to annex 86 acres and establish an initial zoning designation of REMU (Residential Emphasis Mixed Use) subject to terms of annexation and contingencies for zoning. Final documents and easements were received by the Applicant on November 22, 2023. A signed annexation agreement was received on December 5, 2023. The property is bordered by Davis Lane to the east (a Bozeman classified minor arterial street). Upon future development the property will be bounded by an extension of Catamount Street, a minor arterial street, on the south, and North Ferguson Avenue to the west, a collector street, and a local street on the north side of the property. 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. Additional right of way is required with this annexation to accommodate the future construction of Catamount Street and Ferguson Avenue. The property is currently vacant with no existing development or city services on the parcel. The property is surrounded to the west with rural residential uses, to the south and north are still in agricultural uses, and to the east and across Davis Lane is the Cattail Lake Subdivision development. 450 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: 04_ProjectEighty-6Annexation_ZMAMap.pdf 22113 Project Eighty-6 ZMA Ordinance 2135.pdf Report compiled on: December 5, 2023 451 OHPOHPOHPOHPOHPOHPOHPOHPOHPOHPOHPOHPOHPOHPOHPOHPOHPOHPOHPOHPOHPOHP OHP OHP OHP OHP OHP OHP OHP OHP OHP OHP OHP 27''S 27''S 27''S 27''S 27''S 27''S 27''S 27''S 27''S 27''S 27''S 27''S 48''ST 48''ST 48''ST 48''ST 48''ST 48''ST 48''ST 48''ST 48''ST 48''ST 48''ST 48''ST 12''W 12''W 12''W 12''W0'100'200'300'1OF 1AS NOTEDPROJECT EIGHTY-6 ZONEMAP AMENDMENTCAKHEC Jun 15, 2023 - 2:00pmCAD FILE: M:\213715\Drawings\EXHIBITS\ZONING MAP.dwg REVISIONSDATEPROJECT NUMBERHYALITE Engineers, PLLC2304 N 7th Ave. Ste. LBozeman, MT 59715Tel: (406) 587.2781w w w . hyaliteeng. comFax: (406) 522.92252018PROJECT EIGHTY-6 BOZEMAN, MT06/15/202321371522x34 ORIGINALS DAVIS LANESCALESHEET TITLEDESIGN BYS&S Davis 86, LLCWETLANDS 1 = 2.09 ACRESWETLANDS 2 = 0.08 ACRES/(*(1'/(*$/'(S&5,3T,21TRACT 3 OF COS 3035, A PARCEL OF LAND LOCATED IN SECTION 27, TOWNSHIP 1 SOUTH,RANGE 5 EAST, P.M.M. GALLATIN COUNTY, MONTANA. THE PARCEL CONTAINS 86.0 ACRES(3,746,160 SQUARE FEET), MORE OR LESS AND IS SUBJECT TO ALL EASEMENTS OF RECORD ORAPPARENT ON THE GROUND.EXISTING ASZONINGEXISTING R-4ZONINGEXISTING R-3ZONINGPROPOSEDREMU ZONINGPROPOSED AREA OF ZMAAS TO REMUDAVIS LANECATAMOUNTSTREETTROUT MEADOWSROAD452 Ord 2135 Page 1 of 5 ORDINANCE 2135 AN ORDINANCE OF THE CITY COMMISSION OF THE CITY OF BOZEMAN, MONTANA AMENDING THE CITY OF BOZEMAN ZONING MAP TO INITIALLY DESIGNATE 86.0 ACRES AS REMU, RESIDENTIAL EMPHASIS MIXED USE DISTRICT, KNOWN AS THE PROJECT EIGHTY-6 ZONE MAP AMENDMENT, APPLICATION 22113. 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 REMU (Residential Emphasis Mixed Use) for approximately 86.0 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 November 21, 2022 to receive and review all written and oral testimony on the request for a zone map amendment; and 453 Ordinance No. 2135, Project Eighty-6 ZMA Page 2 of 5 WHEREAS, the Bozeman Zoning Commission recommended to the Bozeman City Commission that application No. 22113 the Project Eighty-6 Zone Map Amendment, be approved as requested by the applicant; and WHEREAS, after proper notice, the City Commission held its public hearing on December 6, 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 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 454 Ordinance No. 2135, Project Eighty-6 ZMA Page 3 of 5 requested REMU district. 7. The City Commission conducted a public hearing to provide all interested parties the opportunity to provide evidence and testimony regarding the proposed amendment prior to the City Commission acting on the application. 8. The City Commission considered the application materials, staff analysis and report, Zoning Commission recommendation, all submitted public comment, and all other relevant information. 9. The City Commission determines that, as set forth in the staff report and incorporating the staff findings as part of their decision, the required criteria for approval of the Project Eighty-6 Zone Map Amendment have been satisfied. Section 2 That the zoning district designation of the following-described property is hereby designated as REMU, Residential Emphasis Mixed Use District: An area of land comprised described as follows: A tract of land being Tract 3 of C.O.S. 3035, located in the Southeast Quarter of Section 27, Township 1 South, Range 5 East, Principal Meridian of Montana, Gallatin County, Montana, and being more particularly described as follows: Beginning at a point which is the Southeast Section Corner of said Section 27, said point being the Southeast corner of said Tract; thence South 89°48’21” West, along the South line of the Southeast Quarter of said Section 27, a distance of 2642.72 feet to the South Quarter Corner of said Section 27; thence North 00°43’24” East, along the west line of the Southeast Quarter of said Section 27, a distance of 1417.75 feet; thence North 89°48’21” East, a distance of 2642.61 feet to a point on the east line of the Southeast Corner of said Section 27; thence South 00°43’07” West, along the east line of the Southeast Quarter of said Section 27, a distance of 1417.75 feet to the point of beginning; Said tract of land being 86.00 acres (3,746,160 square feet), along with and subject to any existing easements. All as depicted on the Project Eighty-6 Annexation Map. 455 Ordinance No. 2135, Project Eighty-6 ZMA Page 4 of 5 Section 3 Repealer. All provisions of the ordinances of the City of Bozeman in conflict with the provisions of this ordinance are, and the same are hereby, repealed and all other provisions of the ordinances of the City of Bozeman not in conflict with the provisions of this ordinance shall remain in full force and effect. Section 4 Savings Provision. This ordinance does not affect the rights and duties that matured, penalties that were incurred or proceedings that were begun before the effective date of this ordinance. All other provisions of the Bozeman Municipal Code not amended by this Ordinance shall remain in full force and effect. Section 5 Severability. That should any sentence, paragraph, subdivision, clause, phrase or section of this ordinance be adjudged or held to be unconstitutional, illegal, or invalid, the same shall not affect the validity of this ordinance as a whole, or any part or provision thereof, other than the part so decided to be invalid, illegal or unconstitutional, and shall not affect the validity of the Bozeman Municipal Code as a whole. Section 6 Codification. This Ordinance shall not be codified but shall be kept by the City Clerk and entered into a disposition list in numerical order with all other ordinances of the City and shall be organized in a category entitled “Zone Map Amendments.” Section 7 Effective Date. This ordinance shall be in full force and effect thirty (30) days after final adoption. 456 Ordinance No. 2135, Project Eighty-6 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 19th day of December, 2023. ____________________________________ TERENCE CUNNINGHAM Deputy 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 ________________, 2024. The effective date of this ordinance is _____________, ____, 2024. _________________________________ TERENCE CUNNINGHAM Mayor ATTEST: _______________________________ MIKE MAAS City Clerk APPROVED AS TO FORM: _________________________________ GREG SULLIVAN City Attorney 457 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 2153, Final Adoption to Establish an Initial Zoning Designation of REMU (Residential Emphasis Mixed-Use District) in Association with the Annexation of 10.071 Acres, the 6730 Davis Lane Annexation, Application 22020 MEETING DATE:January 23, 2024 AGENDA ITEM TYPE:Ordinance RECOMMENDATION:Finally adopt Ordinance 2153. 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 (5:0) Application 22020 on August 2, 2022 to annex 10.071 acre. The associated zoning to establish an initial designation of REMU (Residential Emphasis Mixed-Use District) was approved 4: 1 with Comr. Coburn dissenting. The annexation was subject to terms of annexation and the zoning subject to contingencies. Final documents and easements were received by the Applicant on November 29, 2023. A signed annexation agreement was received on November 29, 2023. 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 REMU district as an implementing zoning district. The property currently hosts a detached single-household residential structure connected to an individual well and septic system. 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 458 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: 6730 Davis Lane Zone Map.pdf 22020 6730 Davis Lane ZMA Ordinance 2153.pdf Report compiled on: November 29, 2023 459 460 Ord 2153 Page 1 of 4 ORDINANCE 2153 AN ORDINANCE OF THE CITY COMMISSION OF THE CITY OF BOZEMAN, MONTANA AMENDING THE CITY OF BOZEMAN ZONING MAP TO INITIALLY DESIGNATE 10.071 ACRES AS REMU (RESIDENTIAL EMPHASIS MIXED-USE DISTRICT), KNOWN AS THE 6730 DAVIS LANE ZONE MAP AMENDMENT, APPLICATION 22020. 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 REMU (Residential Emphasis Mixed- Use District for approximately 10.071 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 July 18, 2022 to receive and review all written and oral testimony on the request for a zone map amendment; and 461 Ordinance No. 2153, 6730 Davis Lane ZMA Page 2 of 4 WHEREAS, the Bozeman Zoning Commission recommended to the Bozeman City Commission that application No. 22020 the 6730 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 August 2, 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 REMU (Residential Emphasis Mixed-Use District: An area of land comprised described as follows: The N ½, SW ¼, SW ¼, SW ¼, and the S ½, NW ¼, SW ¼, SW ¼, of Section 35, Township 1 South, Range 5 East, M.P.M., Gallatin County Montana, described as follows: Commencing at the Southwest Quarter Corner of said Section 35; thence N 01°25'04" E, assumed bearing, along the west line of the Southwest Quarter of said Section 35, a distance of 331.59 feet to the point of beginning of the property to be described; thence continuing N 01°25'04" E, along the west line of the Southwest Quarter of said Section 35, a distance of 663.15 feet; thence S 89°04'50" E a distance of 661.98 feet; thence S 01°26'49" W a distance of 662.65 feet; thence N 89°07'26" W a distance of 661.65 feet to the point of beginning. Area = 438,692 square feet, 10.071 acres. Subject to existing easements. 462 Ordinance No. 2153, 6730 Davis Lane ZMA Page 3 of 4 Section 2 Repealer. All provisions of the ordinances of the City of Bozeman in conflict with the provisions of this ordinance are, and the same are hereby, repealed and all other provisions of the ordinances of the City of Bozeman not in conflict with the provisions of this ordinance shall remain in full force and effect. Section 3 Savings Provision. This ordinance does not affect the rights and duties that matured, penalties that were incurred or proceedings that were begun before the effective date of this ordinance. All other provisions of the Bozeman Municipal Code not amended by this Ordinance shall remain in full force and effect. Section 4 Severability. That should any sentence, paragraph, subdivision, clause, phrase or section of this ordinance be adjudged or held to be unconstitutional, illegal, or invalid, the same shall not affect the validity of this ordinance as a whole, or any part or provision thereof, other than the part so decided to be invalid, illegal or unconstitutional, and shall not affect the validity of the Bozeman Municipal Code as a whole. Section 5 Codification. This Ordinance shall not be codified but shall be kept by the City Clerk and entered into a disposition list in numerical order with all other ordinances of the City and shall be organized in a category entitled “Zone Map Amendments.” Section 6 Effective Date. This ordinance shall be in full force and effect thirty (30) days after final adoption. 463 Ordinance No. 2153, 6730 Davis Lane ZMA Page 4 of 4 PROVISIONALLY ADOPTED by the City Commission of the City of Bozeman, Montana, on first reading at a regular session held on the 19th day of December 2023. ____________________________________ TERENCE CUNNINGHAM Deputy 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 ________________, 2024. The effective date of this ordinance is _____________, ____, 2024. _________________________________ TERENCE CUNNINGHAM Mayor ATTEST: _______________________________ MIKE MAAS City Clerk APPROVED AS TO FORM: _________________________________ GREG SULLIVAN City Attorney 464 Memorandum REPORT TO:City Commission FROM:Jon Henderson, Strategic Services Director SUBJECT:Triannual Climate Plan Report MEETING DATE:January 23, 2024 AGENDA ITEM TYPE:Plan/Report/Study RECOMMENDATION:Sustainability Program Manager, Natalie Meyer, will present an update on the 2020 Bozeman Climate Plan. STRATEGIC PLAN:6.3 Climate Action: Reduce community and municipal Greenhouse Gas (GHG) emissions, increase the supply of clean and renewable energy; foster related businesses. BACKGROUND:On December 22, 2020, the City Commission approved Resolution 5248 adopting the Bozeman Climate Plan. The Climate Plan identifies community goals and actions to reduce greenhouse gas emissions and prepare for the impacts of climate change. Sustainability Program Manager, Natalie Meyer, will present a summary of work accomplished throughout the organization over the past year. Triannual Climate Plan Reports are planned every four months on a triannual basis to provide both the City Commission and the community with regular progress updates. A community dashboard is also available providing a condensed view of current progress, updated twice yearly. UNRESOLVED ISSUES:None. ALTERNATIVES:As directed by the City Commission. FISCAL EFFECTS:None. Report compiled on: January 11, 2024 465 Memorandum REPORT TO:City Commission FROM:Melissa Hodnett, Finance Director Janeen Hathcock, Senior Audit Manager, Eide Bailly SUBJECT:Annual Comprehensive Financial Report (ACFR) for Fiscal Year 2023 and Audit Results MEETING DATE:January 23, 2024 AGENDA ITEM TYPE:Finance RECOMMENDATION:I move to approve the Fiscal Year 2023 Annual Comprehensive Financial Report, the accompanying Letter of Governance, and Corrective Action Plan. 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 2-7-503 MCA requires that a financial report be prepared for every fiscal year. This statute also requires a biannual audit of this report - including the accounts, financial records, and transactions of all administrative departments of the City - by independent certified public accountants selected by the City Commission. The City Commission and City Administration have historically believed that an annual audit provides a higher level of financial assurance and fiscal integrity than a biannual audit, and this intention is expressed in Section 5.09 of the City Charter. This policy, along with the State legal reporting requirement, has been followed for fiscal year 2023, and the clean unmodified opinion expressed by the audit firm of Eide Bailey LLC (EB) has been included in the accompanying Annual Comprehensive Financial Report (ACFR). One significant deficiency was noted during the single audit and a corrective action plan is attached for submittal to the State per MCA 2-7-521. The ACFR of the CITY OF BOZEMAN, MONTANA for the fiscal year ended JUNE 30, 2023 is hereby submitted to the Commission. Responsibility for both the accuracy of the data, and the completeness and fairness of the presentation, including all disclosures, rests with the City. To the best of our knowledge and belief, the enclosed data are accurate in all material respects and are reported in a manner designed to present fairly the financial position and results of operations of the various funds of the City. All disclosures necessary to enable the reader to gain an understanding of the City's financial activities have been included. 466 In addition to the financial audit, the City undertakes a single audit in conformance with the Single Audit Act Amendments of 1996 and the U.S. Office of Management and Budget (OMB) Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Audits. The results of the single audit, including a schedule of expenditures of federal awards, and the independent auditor's reports on the City's internal controls and compliance with legal requirements, are available in the City's single audit report. The ACFR is presented in three sections: The Introduction Section includes the letter of transmittal, the City's organization chart, and certificates of achievement. The Financial Section includes the report of the independent auditors, Management's Discussion and Analysis (MD&A), the basic financial statements, including the government wide financial statements comprised of the Statement of Net Position and the Statement of Activities, and the accompanying note disclosures to the financial statements. The Financial Section also includes the fund financial statements including the governmental funds financial statements, the proprietary funds financial statements, the fiduciary funds financial statements, and the combining individual funds financial statements for the nonmajor governmental and proprietary funds and the internal service funds. The Statistical Section includes selected financial and demographic information, on a multi-year basis. The transmittal letter read along with the MD&A provides an overview of the financial statements and the financial performance of the City for fiscal year 2023. UNRESOLVED ISSUES:None ALTERNATIVES:N/A FISCAL EFFECTS:An unmodified or "clean" audit opinion on the City's financial statements is viewed favorably by investment analysts and strengthens the City's ability to issue bonds or other debt at a lower interest cost. Attachments: 2023 Issued Governance Letter.pdf City of Bozeman ACFR_ISSUED 2023 06 30.pdf Management-Corrective Action Plan.pdf Report compiled on: January 31, 2023 467 1 December 21, 2023 To the Honorable Mayor and Members of the City Commission City of Bozeman, Montana We have audited the financial statements of City of Bozeman as of and for the year ended June 30, 2023, and have issued our report thereon dated December 21, 2023. Professional standards require that we advise you of the following matters relating to our audit. Our Responsibility in Relation to the Financial Statement Audit under Generally Accepted Auditing Standards and Government Auditing Standards and our Compliance Audit under the Uniform Guidance As communicated in our letter dated September 8, 2023, our responsibility, as described by professional standards, is to form and express an opinion about whether the financial statements that have been prepared by management with your oversight are presented fairly, in all material respects, in accordance with accounting principles generally accepted in the United States of America and to express an opinion on whether the City of Bozeman complied with the types of compliance requirements described in the OMB Compliance Supplement that could have a direct and material effect on each of the City of Bozeman major federal programs. Our audit of the financial statements and major program compliance does not relieve you or management of its respective responsibilities. Our responsibility, as prescribed by professional standards, is to plan and perform our audit to obtain reasonable, rather than absolute, assurance about whether the financial statements are free of material misstatement. An audit of financial statements includes consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control over financial reporting. Accordingly, as part of our audit, we considered the internal control of City of Bozeman solely for the purpose of determining our audit procedures and not to provide any assurance concerning such internal control. Our responsibility, as prescribed by professional standards as it relates to the audit of City of Bozeman major federal program compliance, is to express an opinion on the compliance for each of City of Bozeman major federal programs based on our audit of the types of compliance requirements referred to above. An audit of major program compliance includes consideration of internal control over compliance with the types of compliance requirements referred to above as a basis for designing audit procedures that are appropriate in the circumstances and to test and report on internal control over compliance in accordance with the Uniform Guidance, but not for the purpose of expressing an opinion on the effectiveness of internal control over compliance. Accordingly, as a part of our major program compliance audit, we considered internal control over compliance for these purposes and not to provide any assurance on the effectiveness of the City of Bozeman’s internal control over compliance. We are also responsible for communicating significant matters related to the audit that are, in our professional judgment, relevant to your responsibilities in overseeing the financial reporting process. However, we are not required to design procedures for the purpose of identifying other matters to communicate to you. What inspires you, inspires us. | eidebailly.com 401 N. 31st St., Ste. 1120 | P.O. Box 7112 | Billings, MT 59103-7112 | TF 800.824.9797 | T 406.896.2400 | F 406.252.8600 | EOE 468 2 We have provided our comments regarding internal controls during our audit in our Independent Auditor’s Report on Internal Control over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards dated December 21, 2023. We have also provided our comments regarding compliance with the types of compliance requirements referred to above and internal controls over compliance during our audit in our Independent Auditor’s Report on Compliance with Each Major Federal Program and Report on Internal Control Over Compliance Required by the Uniform Guidance dated December 21, 2023. Planned Scope and Timing of the Audit We conducted our audit consistent with the planned scope and timing we previously communicated to you. Compliance with All Ethics Requirements Regarding Independence The engagement team, others in our firm, as appropriate, our firm, and other firms utilized in the engagement, if applicable, have complied with all relevant ethical requirements regarding independence. Qualitative Aspects of the Entity’s Significant Accounting Practices Significant Accounting Policies Management has the responsibility to select and use appropriate accounting policies. A summary of the significant accounting policies adopted by the City is included in Note 1 to the financial statements. As described in Note 1, the City changed accounting policies related to accounting for right-to-use subscription assets to adopt the provisions of GASB Statement No. 96, Subscription-Based Information Technology Arrangements. Accordingly, the accounting change has been retrospectively applied to the financial statements beginning July 1, 2022. No matters have come to our attention that would require us, under professional standards, to inform you about (1) the methods used to account for significant unusual transactions and (2) the effect of significant accounting policies in controversial or emerging areas for which there is a lack of authoritative guidance or consensus. Significant Accounting Estimates Accounting estimates are an integral part of the financial statements prepared by management and are based on management’s current judgments. Those judgments are normally based on knowledge and experience about past and current events and assumptions about future events. Certain accounting estimates are particularly sensitive because of their significance to the financial statements and because of the possibility that future events affecting them may differ markedly from management’s current judgments. The most sensitive accounting estimates affecting the financial statements are: Management’s estimate of the compensated absences is based on a calculation using years of service and payout limits in accordance with City’s policies and the employment contracts. We evaluated the key factors and assumptions used to develop the compensated absences in determining that it is reasonable in relation to the basic financial statements taken as a whole. Management’s estimate of the claims liability incurred but not reported is based on a third party lag analysis. We evaluated the key factors and assumptions used to develop the claims liability incurred but not reported in determining that it is reasonable in relation to the basic financial statements taken as a whole. 469 3 Financial Statement Disclosures Certain financial statement disclosures involve significant judgment and are particularly sensitive because of their significance to financial statement users. The most sensitive disclosures affecting City of Bozeman’s financial statements relate to the disclosures of Retirement Plans in Note 11; Other Postemployment Benefits in Note 10; Risk Management in Note 17; and Commitments in Note 22. Significant Difficulties Encountered during the Audit We encountered no significant difficulties in dealing with management relating to the performance of the audit. Uncorrected and Corrected Misstatements For purposes of this communication, professional standards require us to accumulate all known and likely misstatements identified during the audit, other than those that we believe are trivial, and communicate them to the appropriate level of management. Further, professional standards require us to also communicate the effect of uncorrected misstatements related to prior periods on the relevant classes of transactions, account balances or disclosures, and the financial statements as a whole. Uncorrected misstatements or matters underlying those uncorrected misstatements could potentially cause future- period financial statements to be materially misstated, even though the uncorrected misstatements are immaterial to the financial statements currently under audit. There were no corrected misstatements that we identified as a result of our audit procedures. The following summarizes uncorrected financial statement misstatements whose effects in the current and prior periods, as determined by management, are immaterial, both individually and in the aggregate, to the financial statements taken as a whole. Government wide: DR. Pension expense $885,178 CR. Pension revenue $885,178 To adjust for economic resources measurement focus reporting of State pension contributions – Government-wide. Street Impact fee special revenue fund: DR. Impact fee revenue $165,520 CR. Accounts payable $165,520 To record projected revenue overstatement related to street impact fees. The effect of these uncorrected misstatements, including the effect of the reversal of prior year uncorrected misstatements as of and for the year ended June 30, 2023, is an overstatement of net position of approximately $165,120. Disagreements with Management For purposes of this letter, professional standards define a disagreement with management as a matter, whether or not resolved to our satisfaction, concerning a financial accounting, reporting, or auditing matter, which could be significant to the financial statements or the auditor’s report. No such disagreements arose during the course of the audit. 470 4 Circumstances that Affect the Form and Content of the Auditor’s Report For purposes of this letter, professional standards require that we communicate any circumstances that affect the form and content of our auditor’s report. We did not identify any circumstances that affect the form and content of the auditor’s report. Representations Requested from Management We have requested certain written representations from management which are included in the management representation letter dated December 21, 2023. Management’s Consultations with Other Accountants In some cases, management may decide to consult with other accountants about auditing and accounting matters. Management informed us that, and to our knowledge, there were no consultations with other accountants regarding auditing and accounting matters. Other Significant Matters, Findings, or Issues In the normal course of our professional association with City of Bozeman, we generally discuss a variety of matters, including the application of accounting principles and auditing standards, significant events or transactions that occurred during the year, operating conditions affecting the entity, and operating plans and strategies that may affect the risks of material misstatement. None of the matters discussed resulted in a condition to our retention as City of Bozeman’s auditors. Other Information Included in Annual Reports Pursuant to professional standards, our responsibility as auditors for other information, whether financial or nonfinancial, included in City of Bozeman’s annual reports, does not extend beyond the financial information identified in the audit report, and we are not required to perform any procedures to corroborate such other information. Our responsibility also includes communicating to you any information which we believe is a material misstatement of fact. Nothing came to our attention that caused us to believe that such information, or its manner of presentation, is materially inconsistent with the information, or manner of its presentation, appearing in the financial statements. The consolidated financial statements include the financial statements of the Bozeman Public Library Foundation (“the Foundation), which we considered to be significant components of the consolidated financial statements. The financial statements of the Foundation were audited by other auditors and we did not assume responsibility for the audit performed by the other auditors, rather have referred to their audit in our report. Our decision to refer to the report of the other auditor is based upon– (1) our evaluation of the materiality of the Foundation with respect to the consolidated financial statements as a whole; (2) the ability for group management to provide necessary audit evidence with respect to the Foundation; (3) our consideration of the timing requirements of the engagement. Our audit procedures with respect to the Foundation included required correspondence with the other auditor, obtaining and reading their auditor’s report and the related financial statements, and other procedures as considered necessary. Our audit procedures with respect to Rudd and Company, PLLC included obtaining an understanding of Rudd and Company, PLLC and its environment, including internal control, sufficient to assess the risks of material misstatement of the financial statements of Rudd and Company, PPLC and completion of further audit procedures. 471 5 This report is intended solely for the information and use of the members of the City Commission and management of City of Bozeman and is not intended to be, and should not be, used by anyone other than these specified parties. Billings, Montana 472 Annual Comprehensive Financial Report Year Ended June 30, 2023 City of Bozeman, Montana Prepared by the Finance Department 473 City of Bozeman, Montana Table of Contents June 30, 2023 Introductory Section Letter of Transmittal ..........................................................................................................................................I Listing of City Officials .................................................................................................................................... VII Organizational Chart ..................................................................................................................................... VIII Certificate of Achievement for Excellence in Financial Reporting ..................................................................... IX Financial Section Independent Auditor’s Report .......................................................................................................................... 1 Management’s Discussion and Analysis ............................................................................................................ 5 Basic Financial Statements Government-Wide Financial Statements Statement of Net Position ....................................................................................................................... 18 Statement of Activities ............................................................................................................................ 20 Fund Financial Statements Balance Sheet - Governmental Funds ...................................................................................................... 21 Reconciliation of the Governmental Funds Balance Sheet to the Statement of Net Position .................... 23 Statement of Revenues, Expenditures, and Changes in Fund Balances Governmental Funds ................... 24 Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund Balances of Governmental Funds to the Statement of Activities ............................................................................. 25 Proprietary Funds Statement of Net Position ....................................................................................................................... 26 Statement of Revenues, Expenses and Changes in Net Position ............................................................... 29 Statement of Cash Flows ......................................................................................................................... 31 Fiduciary Funds Statement of Fiduciary Net Position ........................................................................................................ 33 Statement of Changes in Fiduciary Net Position....................................................................................... 34 Notes to Financial Statements ........................................................................................................................ 35 Required Supplementary Information Schedule of Changes in Total OPEB Liability and Related Ratios .................................................................... 102 Notes to Schedule of Changes in Total OPEB Liability and Related Ratios ...................................................... 103 Schedules of Employer’s Share of Net Pension Liability and Schedules of Employer’s Contributions Montana Public Employees Retirement System Pension Plan .................................................................... 104 Montana Firefighters’ Unified Retirement System Pension Plan ................................................................ 105 Montana Municipal Police Officers’ Retirement System Pension Plan ....................................................... 106 Notes to the Schedules of Employer’s Share of Net Pension Liability and Schedules of Employer’s Contributions ............................................................................................................................................ 107 Schedules of Revenue, Expenditures, and Changes in Fund Balances – Budget to Actual – Budgetary Basis General Fund ............................................................................................................................................ 112 Major Special Revenue Funds ................................................................................................................... 113 Notes to the Schedules of Revenue, Expenditures, and Changes in Fund Balances – Budget to Actual – Budgetary Basis ........................................................................................................................................ 114 474 City of Bozeman, Montana Table of Contents June 30, 2023 Other Supplementary Information Combining and Individual Fund Statements and Schedules Statement of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual Major Debt Service Fund and Major Capital Projects Fund ................................................................................................... 115 Nonmajor Governmental Funds Description of Nonmajor Funds ............................................................................................................. 116 Combining Balance Sheet ...................................................................................................................... 119 Combining Statements of Revenues, Expenditures, and Changes in Fund Balances ............................... 126 Combining Statements of Revenues, Expenditures, and Changes in Fund Balances – Budget and Actual133 Nonmajor Enterprise Funds Description of Nonmajor Funds ............................................................................................................. 143 Combining Balance Sheet ...................................................................................................................... 144 Combining Statement of Revenues, Expenses and Changes in Net Position ........................................... 146 Combining Statement of Cash Flows ..................................................................................................... 147 Internal Service Funds Description of Internal Service Funds .................................................................................................... 149 Combining Balance Sheet ...................................................................................................................... 150 Combining Statement of Revenues, Expenses and Changes in Net Position ........................................... 152 Combining Statement of Cash Flows ..................................................................................................... 153 Custodial Funds Description of Funds ............................................................................................................................. 155 Combining Statement of Fiduciary Net Position ..................................................................................... 156 Combining Statement of Changes in Fiduciary Net Position ................................................................... 157 Statistical Section Introduction to Statistical Section ................................................................................................................. 158 Financial Trends Components of Net Position ..................................................................................................................... 160 Changes in Net Position ............................................................................................................................ 161 Fund Balances of Governmental Funds ..................................................................................................... 164 Changes in Fund Balances of Governmental Funds .................................................................................... 165 Revenue Capacity Assessed Value of Taxable Property .......................................................................................................... 166 City Taxable Market and Taxable Values ................................................................................................... 167 Tax Increment District Taxable Valuation Detail ........................................................................................ 168 Downtown Bozeman Improvement District & Comparison to City Taxable Value ...................................... 171 Property Tax Levies for Tax Increment/Urban Renewal Districts ................................................................ 172 Direct and Overlapping Property Tax Rates ............................................................................................... 173 Principal Property Taxpayers ..................................................................................................................... 174 Principal Property Taxpayers in Downtown Bozeman Improvement District .............................................. 175 Properties in the Bozeman Midtown Urban Renewal District .................................................................... 176 Principal Property Taxpayers in Downtown Bozeman Midtown Urban Renewal District ............................ 177 475 City of Bozeman, Montana Table of Contents June 30, 2023 Property Tax Levies and Collections .......................................................................................................... 178 Water Sold by Type of Customer ............................................................................................................... 179 Water and Sewer Rates ............................................................................................................................. 180 Debt Capacity Ratios of Outstanding Debt by Type .......................................................................................................... 181 Ratios of General Bonded Debt Outstanding ............................................................................................. 182 Computation of Direct and Overlapping Debt............................................................................................ 183 Legal Debt Margin Information ................................................................................................................. 184 Pledged Revenue Coverage – Governmental Activities .............................................................................. 185 Pledged Revenue Coverage – Business-Type Activities .............................................................................. 186 Debt Service Requirements and Coverage for Tax Increment Districts ....................................................... 187 Summary of Outstanding SIDs ................................................................................................................... 188 Revolving Fund Balance and Bond Secured Thereby .................................................................................. 189 Special Improvement District Assessment Billing and Collections .............................................................. 190 Demographic and Economic Information Demographic and Economic Statistics ....................................................................................................... 191 Principal Employers................................................................................................................................... 192 Operating Information Full-Time Equivalent City Government Employees by Function/Program ................................................... 193 Operating Indicators by Function/Program ............................................................................................... 194 Capital Assets Statistics by Function/Program ........................................................................................... 195 Single Audit Section Independent Auditor’s Report on Internal Control over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards ................................................................................................................................................. 196 Independent Auditor’s Report on Compliance for the Major Federal Program; Report on Internal Control Over Compliance; and Report on the Schedule of Expenditures of Federal Awards Required by the Uniform Guidance ..................................................................................................................................... 198 Schedule of Expenditures of Federal Awards................................................................................................. 201 Notes to Schedule of Expenditures of Federal Awards .................................................................................. 202 Schedule of Findings and Questioned Costs .................................................................................................. 203 476 Introductory Section Year Ended June 30, 2023 City of Bozeman, Montana 477 I December 21, 2023 To the Honorable Mayor, City Commission, and the Citizens of the City of Bozeman, Montana: The Annual Comprehensive Financial Report of the CITY OF BOZEMAN, MONTANA for the fiscal year ended JUNE 30, 2023 is hereby submitted. The financial statement and supporting schedules have been prepared in accordance with accounting principles generally accepted in the United States of America (GAAP) and meet the requirements of the standards as prescribed by the Secretary of State Audits Division. We believe the enclosed data, as presented, is accurate in all material respects and are reported in a manner designed to present fairly the financial position and results of operations of the various funds of the City. All disclosures necessary to enable the reader to gain an understanding of the City's financial activities have been included. Management assumes full responsibility for the completeness and reliability of the information contained in this report, based upon a comprehensive framework of internal control that it has established for this purpose. Because the cost of internal control should not exceed anticipated benefits, the objective is to provide reasonable, rather than absolute, assurance that the financial statements are free of any material misstatements. Eide Bailly LLP, Certified Public Accountants, have issued an unmodified or “clean” opinion on the City’s financial statements for the fiscal year ended June 30, 2023. The independent auditors report is located at the front of the Financial Section of this report. Management’s discussion and analysis (MD&A) immediately follows the independent auditor’s report and provides a narrative introduction, overview, and analysis of the basic financial statements. The MD&A complements this letter of transmittal and should be read in conjunction with it. In addition to the financial audit, the City undertakes a single audit in conformance with the Single Audit Act Amendments of 1996 and U.S. Office of Management and Budget (OMB) Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Audits. The results of this single audit, including a schedule of expenditures of federal awards, and the independent auditor’s reports on the City’s internal controls and compliance with legal requirements, with special emphasis on internal controls and legal requirements involving the administration of federal awards, are available in the City’s issued single audit report. 478 II CITY OF BOZEMAN PROFILE The City of Bozeman sits in the center of Gallatin County, flanked by the Bridger Mountains and Custer Gallatin National Forest, just south of the Missouri River Headwaters. This diverse Rocky Mountain landscape creates easy access to year-round outdoor activities for Bozeman residents including hiking, mountain biking, climbing, camping, fishing, and downhill and cross-country skiing. The City encompasses an area of approximately 20 square miles with its next-closest municipality being the City of Belgrade, approximately seven miles from the City’s outermost boundary. Bozeman is the county seat of Gallatin County and is the home to Montana State University (MSU) – Bozeman, and the Fighting Bobcats. Bozeman is located 143 miles west of Billings and 200 miles east of Missoula. The City was incorporated in April of 1883 with a city council form of government, and later in January 1922 transitioned to its current city manager/city commission form of government. The population of Bozeman in the 2020 census is 53,293 – which is a total increase of 43% from April 2010 – which continues Bozeman’s standing as the fourth largest city in the state. The latest population estimate issued by the United States Census Bureau as of July 1, 2022 is 56,123. The government provides a full range of services. These services include police and fire protection; sanitation services; water, wastewater & storm water utilities; the construction and maintenance of streets and infrastructure; recreational activities; cultural events; planning and zoning; and general administrative services. The City, as a primary government, is supported or works closely with certain entities to provide these services to the citizens of the City of Bozeman. ECONOMIC OUTLOOK Bozeman has gained recognition as one of the most desirable places to live in the country, offering a wealth of recreational activities, including fishing, hiking, skiing, hunting, and an array of impressive outdoor experiences. Positioned as one of Montana's most populous cities, Downtown Bozeman serves as the vibrant urban hub of the area, featuring a lively nightlife scene, street festivals, farmers markets, and cultural establishments that cater to both residents and visitors. As the home to MSU Bozeman, this town with a collegiate atmosphere serves as a gateway for newcomers to discover the diverse offerings of Montana, serving as a pivotal economic force for both incoming residents and businesses in the region. In 2023, Bozeman was announced as the #1 Strongest Economy for fastest-growing micropolitan cities by POLICOM for the sixth consecutive year. Economic strength is defined as “the long-term tendency for an area to consistently grow in both size and quality.” Bozeman has a 2022 population estimated to be 56,123 residents. Between 2015-2019 the growth rate was 3.8% according to a Bozeman Economic Assessment conducted by Bridge Economic Development published in March 2023. Bozeman’s economy is most heavily concentrated in tourism and retail jobs that typically have lower wages than trade sector jobs. However, both Bozeman and Gallatin County are experiencing strong growth in knowledge- based industries (professional and technical services) and in manufacturing. Increased enrollment at MSU - Bozeman for in-demand tech and engineering degrees, along with substantial growth in company presence, is contributing significantly to population growth. 479 III The City's median home values fall within the midrange when compared to peers. Over the last decade, median household income in Bozeman has surged, experiencing an uptick of nearly $15,000. In fiscal year 2023, the City received 200 new single-family home applications and 112 multi-family residential building applications, up from 116 and 62 respectively in 2022. Despite this growth, the construction of new homes in the region has not matched the increasing demand. This continued growth increases the need for City services and infrastructure. BUDGET DEVELOPMENT PROCESS The City of Bozeman budget serves several purposes. For the citizens of the City of Bozeman, it presents a picture of the city government operations and intentions for the year. For the City Commission, it serves as a policy tool and as an expression of goals and objectives. For City Management, it is used as an operating guide and a control mechanism. The City Manager’s Recommended Budget is created and submitted to the City Commission annually. Public work sessions are then held by the Commissioners at which time the City Manager, Finance Director, and department staff explain the budget recommendations and underlying justification for the requests. During (or following) the work sessions, the Commissioners may adjust the proposed budget. Following any adjustments to the City Manager's budget recommendation, a tentative appropriation ordinance is prepared, and a public hearing is held. The Commission may make additional adjustments following the public hearing, after which time, the Commission passes the appropriation ordinance in final form. The legal level of budgetary control is established at the service area level. FINANCIAL POLICIES The overall goal of the City's financial policies is to establish and maintain effective management of the city's financial resources. Formal policy statements and major objectives provide the foundation for achieving this goal. The City avoids budgetary practices that balance current expenditures at the expense of meeting future years' expenses and seeks to maintain a diversified and stable revenue base that is estimated in a realistic and conservative manner. For one-time revenues, highest priority is given to the funding of capital assets or other non-recurring expenditures. On-going expenditures are limited to levels which can be supported by current revenues. Construction projects and capital purchases of $25,000 or more are included in the Capital Improvement Plan (CIP), with all capital purchases of $5,000 or more reported as capital outlays in the financial statements. Minor capital outlays of less than $5,000 are included in the regular operating budget. Long-term debt is limited to capital improvements which cannot be financed from current revenues and repays borrowed funds within a period that does not exceed the expected useful life of the project. The City does not use long-term debt for financing current operations and adheres to a policy of full public disclosure with regard to the issuance of debt. 480 IV The City updates its long-term financial projections on an on-going basis and identifies both current and long-term funding needs and challenges to ensure financial stability of the City into the future. The City maintains and updates long-term financial plans on at least an annual basis for the following funds and programs: General Fund (including Police and Fire), Water, Water Reclamation, Stormwater, Solid Waste, Parks & Trails District, Forestry District, and all Streets departments. A minimum level of General Fund reserve equal to 2 months of annual revenues, or 16.67%, is maintained in compliance with Bozeman Municipal Code. This reserve is committed to be used for: cash flow purposes, accrued employee payroll benefits which are not shown as a liability, unanticipated equipment acquisition and replacement, and to enable the city to meet unexpected expenditure demands or revenue shortfalls. The City manages and accounts for its financial activity in accordance with Generally Accepted Accounting Principles (GAAP), as set forth by the Governmental Accounting Standards Board (GASB). The Ccity maintains its accounting records for general governmental operations on a modified accrual basis, with revenues recorded when available and measurable, and expenditures recorded when services or goods are received and liabilities incurred. Accounting records for proprietary fund types and similar trust funds are maintained on an accrual basis, with all revenues recorded when earned and expenses recorded at the time liabilities are incurred, without regard to receipt or payment of cash. MAJOR INITIATIVES Strategic Plan With the adoption of the Strategic plan, the fiscal year 2023 budget incorporated efforts to implement each of the vision statements. The Commission set thirteen priorities along with strides towards the strategic plan. The highlights of the impact on the 2023 financials and 2024 budget include: An Engaged Community. The City continues to strive to foster a culture of civic engagement through the implementation and application of the City’s adopted communication plan. Emphasis has been and continues to be placed on successful collaboration through City-County Regional Planning. An Innovative Economy. The City Commission adopted the Economic Vitality Strategy in June 2023. In coordination with that plan, the City continues to support retention and growth of both traded and local business sectors. Additionally, many capital infrastructure investments helped leverage funds to encourage both residential and commercial economic development. A Safe, Welcoming Community. The City continues to work towards welcoming diversity through policies and public awareness by way of investment in the development of the City’s first Equity and Inclusion Plan, slated for presentation to City Commission in FY24. The Bozeman Public Safety Center opened in FY23, consolidating municipal court, police, and fire administration in one location. A Well‐Planned City. The City Commission adopted the Parks, Recreation and Active Transportation (PRAT) Plan on September 12, 2023. The plan provides and will inform actions towards facilitating and promoting recreational opportunities. In FY23, 8 mills were allocated to Community Housing in order to continue the implementation of its action plan to address the needs of community housing in Bozeman. The FY24 Budget includes appropriations for the acquisition of Light Detection and Ranging (LiDAR) data for land management, planning, and engineering projects which will aid in our efforts toward GIS Land Use & Infrastructure Development Tracking. 481 V A Creative, Learning Culture. The Percent for Art program has been incorporated into our Capital Improvement Plan and some projects are already underway. This program provides a guaranteed funding mechanism for the acquisition of artwork for new public facilities and civic spaces. Extensive improvements were made to the Bozeman Public Library in FY23 to create innovative spaces in order to provide new services, programming, and places for social gatherings. A Sustainable Environment. The FY24 Budget looks at Climate Action Plan Implementation and continues to increase the Sustainability Division’s budget from $870K in FY23 to approximately $1.1M in FY24. A High‐Performance Organization. We have completed the Advisory Board Consolidation. Throughout the organization, departments are working on collaborating and functioning as a high-performing and innovative team. Staff continues to look at rates and fees to ensure we are using equitable and sustainable sources of funding for appropriate City services with an emphasis on delivering them in a lean and efficient manner. Additionally, the FY24 budget includes funding for a Facility Condition Inventory and Facility Needs Assessment to inform future facility needs. OTHER INFORMATION Independent Audit The State of Montana requires a biannual audit of the books of accounts, financial records, and transactions of all administrative departments of the City by independent certified accountants selected by the City Commission. It is the belief of the City Commission and Executive staff that an annual audit assures a higher level of financial management and fiscal responsibility. This policy, along with the legal requirements, has been complied with and the auditors' opinion of Eide Bailly LLP, has been included in this report. Awards The Government Finance Officers' Association (GFOA) awarded a Certificate of Achievement for Excellence in Financial Reporting to the City of Bozeman for its annual comprehensive financial report for the fiscal year ended June 30, 2022. The Certificate of Achievement is a prestigious national award that is an important recognition of conformance with the highest standards for preparation of state and local government financial reports. This was the 39th consecutive year that the City has received this prestigious award. In order to be awarded a Certificate of Achievement, the City published an easily readable and efficiently organized annual comprehensive financial report that conforms to program standards and satisfies generally accepted accounting principles and applicable legal requirements. The City believes our current annual comprehensive financial report continues to meet the Certificate of Achievement Program's requirement and we are submitting it to the GFOA to determine its eligibility for another certificate. The City has also received the Distinguished Budget Presentation Award from the GFOA for 31 years. The award represents the City’s commitment to meeting the highest principles of governmental budgeting. The budget is rated in four major categories: as a policy document, an operations guide, a financial plan, and a communications device. Budget documents must be rated “proficient” in all four categories to receive the award. 482 VI Acknowledgements The preparation of the Annual Comprehensive Financial Report on a timely basis was made possible by the dedicated service of the entire staff of the Finance Department. Each member of the department has our sincere appreciation for the contributions made in the preparation of this report, with special thanks to Aaron Funk for his dedication and expertise in financial reporting. We would also like to express appreciation to the City Commission for their interest and support in planning and overseeing the operations of the City in a responsible and professional manner. Jeff Mihelich City Manager Melissa Hodnett Director of Finance 483 VII City of Bozeman, Montana Listing of City Officials June 30, 2023 Name Position Elected Officials Legislative Cynthia Andrus MayorTerence Cunningham Deputy MayorChristopher Coburn Commissioner Jennifer Madgic CommissionerI-Ho Pomeroy Commissioner JudicialKarl Seel Muncipal JudgeJ. Colleen Herrington Muncipal Judge Officers Executive Jeff Mihelich City Manager Chuck Winn Assistant City ManagerKira Peters Assitant City ManagerMichael Maas City Clerk Department of Law Gregory Sullivan City Attorney Department of Finance Melissa Hodnett, MBA Finance DirectorAaron Funk, CPA Controller Laurae Clark Treasurer Department of Economic Development Britt Fontenot Director of Economic Development Department of Information Technology Scott McMahan Information Technology Director Department of Human Resources Cassandra Tozer Human Resources Director Department of Public Safety James Veltkamp Chief of PoliceJosh Waldo Fire Chief Department of Public ServiceNicholas Ross Director of Public Service John Alston City EngineerJon Henderson Director of Strategic Services Department of Public WelfareMitch Overton Director of Parks and RecreationSusan Gregory Director of Bozeman Public Library Department of Planning and Community Development Anna Bentley Director of Planning and Community Development 484 VIII City of Bozeman, Montana Organizational Chart June 30, 2023 485 IX 486 Financial Section Year Ended June 30, 2023 City of Bozeman, Montana 487 1 Independent Auditor’s Report To the Honorable Mayor and City Council City of Bozeman Report on the Audit of the Financial Statements Opinions We have audited the financial statements of the governmental activities, the business-type activities, the aggregate discretely presented component units, each major fund, and the aggregate remaining fund information of the City of Bozeman (the City), as of and for the year ended June 30, 2023, and the related notes to the financial statements, which collectively comprise the City’s basic financial statements as listed in the table of contents. In our opinion, based on our audit and the report of the other auditor, the accompanying financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, the business-type activities, the aggregate discretely presented component units, each major fund, and the aggregate remaining fund information of the City of Bozeman, as of June 30, 2023, and the respective changes in financial position, and, where applicable, cash flows thereof for the year then ended in accordance with accounting principles generally accepted in the United States of America. We did not audit the financial statements of the Bozeman Public Library Foundation, which represent 100% of the net position and revenues of the discretely presented component unit as of June 30, 2023. Those statements were audited by other auditors whose report(s) has been furnished to us, and our opinion, insofar as it relates to the amounts included for the discretely presented component unit, is based solely on the report(s) of the other auditors. Basis for Opinions We conducted our audit in accordance with auditing standards generally accepted in the United States of America (GAAS) and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States (Government Auditing Standards). Our responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of the City, and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions. What inspires you, inspires us. | eidebailly.com 401 N. 31st St., Ste. 1120 | P.O. Box 7112 | Billings, MT 59103-7112 | TF 800.824.9797 | T 406.896.2400 | F 406.252.8600 | EOE 488 2 Responsibilities of Management for the Financial Statements Management is responsible for the preparation and fair presentation of the financial statements in accordance with accounting principles generally accepted in the United States of America, and for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, management is required to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the City‘s ability to continue as a going concern for twelve months beyond the financial statement date, including any currently known information that may raise substantial doubt shortly thereafter. Auditor’s Responsibilities for the Audit of the Financial Statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinions. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with GAAS and Government Auditing Standards will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Misstatements are considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the financial statements. In performing an audit in accordance with GAAS and Government Auditing Standards, we: •Exercise professional judgment and maintain professional skepticism throughout the audit. •Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. •Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the City‘s internal control. Accordingly, no such opinion is expressed. •Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the financial statements. •Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise substantial doubt about the City’s ability to continue as a going concern for a reasonable period of time. We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings, and certain internal control-related matters that we identified during the audit. 489 3 Required Supplementary Information Accounting principles generally accepted in the United States of America require that the management’s discussion and analysis, schedule of changes in total OPEB liability and related ratios, schedules of employer’s share of net pension liability, schedules of employer’s contributions, and schedules of revenue, expenditures, and changes in fund balance – budget to actual – budgetary basis for the general fund and major special revenue funds be presented to supplement the basic financial statements. Such information is the responsibility of management and, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with GAAS, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance. Supplementary Information Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the City’s basic financial statements. The combining fund financial statements, the individual budgetary comparison schedules, and schedule of expenditures of federal awards as required by Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards are presented for purposes of additional analysis and are not a required part of the basic financial statements. Such information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the basic financial statements. The information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with GAAS. In our opinion, the combining fund financial statements, the individual budgetary comparison schedules, and the schedule of expenditures of federal awards are fairly stated, in all material respects, in relation to the basic financial statements as a whole. Other Information Management is responsible for the other information included in the annual report. The other information comprises the introductory section and statistical section, but does not include the basic financial statements and our auditor’s report thereon. Our opinions on the basic financial statements do not cover the other information, and we do not express an opinion or any form of assurance thereon. In connection with our audit of the basic financial statements, our responsibility is to read the other information and consider whether a material inconsistency exists between the other information and the basic financial statements, or the other information otherwise appears to be materially misstated. If, based on the work performed, we conclude that an uncorrected material misstatement of the other information exists, we are required to describe it in our report. 490 4 Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated December 21, 2023, on our consideration of the City’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, and other matters. The purpose of that report is solely to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the City’s internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the City’s internal control over financial reporting and compliance. Billings, Montana December 21, 2023 491 5 City of Bozeman, Montana Management’s Discussion and Analysis June 30, 2023 Management of the City of Bozeman (the City) offers readers of the basic financial statements this narrative overview and analysis of the financial activities of the City for the fiscal year ended June 30, 2023. Readers are encouraged to consider the information presented here in conjunction with additional information that is furnished in the letter of transmittal. The focus of the information herein is on the primary government. OVERVIEW OF THE FINANCIAL STATEMENTS This discussion and analysis is intended as an introduction to the City’s basic financial statements. The basic financial statements comprise three components: 1) government-wide financial statements, 2) fund financial statements, and 3) notes to the basic financial statements. In addition to the basic financial statements, also provided are required and other supplementary information. Government-Wide Financial Statements The Statement of Net Position presents information on all of the City’s assets, liabilities, and deferred inflows/outflows of resources, with the difference reported as net position. Over time, increases or decreases in net position may serve as a useful indicator of whether the financial position of the City is improving or deteriorating. The Statement of Activities reports how the City’s net position changed during the most recent year. All changes in net position are reported as soon as the underlying event giving rise to the change occurs, regardless of the timing of related cash flows. Thus, revenues and expenses are reported in this statement for some items that will only result in cash flows in future fiscal periods (e.g., uncollected taxes and earned but unused vacation and sick leave). The governmental activities reflect the City’s basic services, including police, fire, public works, parks, and general administration. Property taxes, charges for services, state shared revenues, court fines, and recreation fees finance most of these activities. The business-type activities reflect private sector-type operations, such as water, wastewater, storm water, solid waste, and parking, where fees for services typically cover all or most of the cost of operations, including depreciation. The government-wide financial statements include not only the City itself (referred to as the primary government), but also other legally separate entities for which the City is financially accountable. Financial information for most of these component units are reported separately from the financial information presented for the primary government itself. A few component units, although legally separate, function essentially as an agency of the City and, therefore, are included as an integral part of the City. Fund Financial Statements A fund is a grouping of related accounts used to maintain control over resources that have been segregated for specific activities or objectives. The City uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements. All of the funds of the City can be divided into categories: governmental funds, proprietary funds, and fiduciary funds that use different accounting approaches. 492 6 City of Bozeman, Montana Management’s Discussion and Analysis June 30, 2023 Governmental funds are used for the City’s basic services and are reported in governmental funds, which focus on how money flows into and out of those funds and the balances left at year-end that are available for spending. These funds are reported using an accounting method called modified accrual accounting, which measures cash and all other financial assets that can readily be converted to cash. The governmental fund statements provide a detailed short-term view of the City’s general government operations and the basic services it provides. Governmental fund information helps you determine whether there are more or fewer financial resources that can be spent in the near future to finance the City’s programs. Because this information does not encompass the long-term focus of the government-wide statements, additional information is provided that reconciles the governmental fund financial statements to the government-wide statements explaining the relationship (or differences) between them. The City maintains individual governmental funds. Information is presented separately in the governmental funds balance sheet and in the governmental funds statement of revenues, expenditures, and changes in fund balances for the General Fund and major special revenue funds. Data from the other governmental funds are combined into a single aggregated presentation. Individual fund data for these non-major governmental funds is provided in the form of combining statements elsewhere in this report. The City adopts an annual appropriated budget for the General Fund. A budgetary comparison schedule has been provided to demonstrate compliance with these budgets for the General Fund in accordance with U.S. GAAP. The City maintains two different types of proprietary funds: enterprise funds and internal service funds. Enterprise funds are used to report the same functions presented as business-type activities in the government-wide financial statements. The City uses enterprise funds to account for water, wastewater, stormwater, solid waste and parking services. When the City charges customers for the services it provides, whether to outside customers or to other units of the City, these services are generally reported in proprietary funds. Proprietary funds are reported in the same way that all activities are reported in the Statement of Net Position and the Statement of Activities. In fact, the City’s enterprise funds (a component of the proprietary funds) are the same as the business-type activities we report in the government-wide statements but provide more detail and additional information, such as cash flows, for proprietary funds. We use internal service funds to report activities that provide supplies and services for the City’s other programs and activities, such as the Vehicle Maintenance Fund and Health Insurance Fund. Internal service fund activity is reported as governmental activity in the government- wide statements since this activity, the financing of goods and services for other funds of the government, is more governmental than business-type in nature. The City uses fiduciary funds to account for assets held on behalf of outside parties, including other governments. When these assets are held under the terms of a formal trust agreement, a private-purpose trust fund is used. The City is the trustee, or fiduciary, for other funds, including the Municipal Court Fund, the Montana Arts Council Fund (Montana Ballet, Bozeman Symphony Orchestra, and Big Sky Association for the Arts), and the CMC Bozeman Asbestos Site Remediation Fund. It is also responsible for other assets that, because of a trust arrangement, can be used only for the trust beneficiaries. The guidelines for the administration of these funds are contained in applicable financial agreements and/or City ordinances. These documents contain the rules governing the receipt, expenditure, and management of the City’s fiduciary funds. As the statements reflect, the financial activity during the year for these funds is nominal. We exclude these activities from the City’s other financial statements because the City cannot use these assets to finance its operations. The City is responsible for ensuring that the assets reported in these funds are used for their intended purposes. 493 7 City of Bozeman, Montana Management’s Discussion and Analysis June 30, 2023 Government-wide Financial Analysis Net Position Net position may serve over time as a useful indicator of a government’s financial position. In the case of the City, assets and deferred outflows exceeded liabilities and deferred inflows by $636.2 million at the close of the most recent fiscal year. Net position increased by $48.6 million this year as compared to a $43.3 million increase last year. Net position of the City includes $78.6 million (12.4%) of restricted net position. These are resources subject to external restrictions as to how they may be used by the City. The majority of the net position, 84.0%, is invested in capital assets (land, buildings, infrastructure, etc.) less any related outstanding debt used to acquire those assets. The City uses these capital assets to provide services to community members; consequently, these assets are not available for future spending. Although the City's investment in its capital assets is reported net of related debt, it should be noted that the resources needed to repay this debt must be provided from other sources since the capital assets themselves cannot be used to liquidate these liabilities. The following table presents condensed financial information on the City’s net position for the fiscal years ending June 30, 2023 and 2022. Governmental Activities Business-Type Activities Total 2023 2022 2023 2022 2023 2022 AssetsCurrent and other assets 108,097,028$ 103,200,397$ 61,772,593$ 57,951,745$ 169,869,621$ 161,152,142$ Capital assets 298,922,399 275,835,087 338,222,054 329,667,072 637,144,453 605,502,159 Total assets 407,019,427 379,035,484 399,994,647 387,618,817 807,014,074 766,654,301 Deferred Outflows of Resources 8,250,714 7,792,013 1,302,625 1,245,353 9,553,339 9,037,366 LiabilitiesOther liabilities 19,669,995 26,155,271 2,827,483 2,527,916 22,497,478 28,683,187 Long-term liabilities 101,721,336 95,447,522 52,757,557 53,831,562 154,478,893 149,279,084 Total liabilities 121,391,331 121,602,793 55,585,040 56,359,478 176,976,371 177,962,271 Deferred Inflows of Resources 2,500,575 8,369,794 933,712 1,794,124 3,434,287 10,163,918 Net positionNet investment in capital assets 236,885,005 217,241,690 297,691,119 286,461,913 534,576,124 503,703,603 Restricted 46,965,688 55,321,501 31,659,041 29,337,941 78,624,729 84,659,442 Unrestricted 7,527,542 (15,708,281) 15,428,360 14,910,714 22,955,902 (797,567) Total net position 291,378,235$ 256,854,910$ 344,778,520$ 330,710,568$ 636,156,755$ 587,565,478$ 494 8 City of Bozeman, Montana Management’s Discussion and Analysis June 30, 2023 The following table presents condensed financial information on the City’s changes in net position for the fiscal years ending June 30, 2023 and 2022. Governmental Activities Business-Type Activities Total 2023 2022 2023 2022 2023 2022 Revenues Program revenuesCharges for services 36,321,320$ 35,800,641$ 35,954,215$ 36,283,040$ 72,275,535$ 72,083,681$ Operating grants and contributions 12,843,761 7,707,580 1,435,529 1,511,436 14,279,290 9,219,016 Capital grants and contributions 14,514,120 12,153,695 11,084,423 13,064,462 25,598,543 25,218,157 General revenuesTaxes 39,860,197 29,432,001 - - 39,860,197 29,432,001 Unrestricted intergovernmental 5,370,015 5,099,529 - - 5,370,015 5,099,529 Unrestricted investment earnings (losses)1,118,619 (1,685,354) 833,995 (1,291,575) 1,952,614 (2,976,929) Miscellaneous 1,225,899 520,517 226,026 219,769 1,451,925 740,286 Gain (loss) on disposal of capital assets 2,726,201 (15,735) (13,856) 1,031 2,712,345 (14,704) Total revenues 113,980,132 89,012,874 49,520,332 49,788,163 163,500,464 138,801,037 ExpensesGeneral government 17,726,413 12,352,494 - - 17,726,413 12,352,494 Public safety 28,002,592 22,442,450 - - 28,002,592 22,442,450 Public service 14,646,742 12,176,141 - - 14,646,742 12,176,141 Public welfare 15,343,285 16,211,729 - - 15,343,285 16,211,729 Interest and fiscal charges 2,070,117 2,051,119 - - 2,070,117 2,051,119 Water - 13,882,728 11,604,238 13,882,728 11,604,238 Waste water - - 11,979,470 10,849,991 11,979,470 10,849,991 Solid waste - - 7,980,984 5,220,011 7,980,984 5,220,011 Parking - - 1,565,405 1,360,611 1,565,405 1,360,611 Stormwater - - 1,711,451 1,243,760 1,711,451 1,243,760 Total expenses 77,789,149 65,233,933 37,120,038 30,278,611 114,909,187 95,512,544 Excess before transfers 36,190,983 23,778,941 12,400,294 19,509,552 48,591,277 43,288,493 Transfers (1,667,658) (1,396,976) 1,667,658 1,396,976 - - Change in net position 34,523,325 22,381,965 14,067,952 20,906,528 48,591,277 43,288,493 Beginning net position 256,854,910 234,472,945 330,710,568 309,804,040 587,565,478 544,276,985 Ending net position 291,378,235$ 256,854,910$ 344,778,520$ 330,710,568$ 636,156,755$ 587,565,478$ Governmental Activities The net position of the City’s governmental activities increased by $34.5 million or 13.4% from $256.9 million last year to $291.4 million this year due to revenues exceeding expenses. Governmental activities revenues for the year increased $25.0 million or 28.0%, from $89.0 million in fiscal year 2022 (FY22) to $114.0 million in fiscal year 2023 (FY23), while total expenses increased by $12.6 million or 19.2%, from $65.2 million in FY22 to $77.8 million in FY23. 495 9 City of Bozeman, Montana Management’s Discussion and Analysis June 30, 2023 Property tax revenues increased by $10.4 million or 35.4% from $29.4 million to $39.9 million. Mill values for the City of Bozeman increased by 54.7% based on the latest assessments from the Department of Revenue. In addition, the number of total property tax mills levied increased to 204.5 from 154.12 in the prior year. Charges for services, which primarily includes street assessments, fire and street impact fees, and the park and trails assessments, increased by $0.5 million or 1.5% from $35.8 million in FY22 to $36.3 million in FY23. Street impact fees decreased by $3.2 million or 38.2% from $8.4 million in FY22 to $5.2 million in FY23 primarily due to a decline in new, large developments. This decrease was offset mainly by increases in General Fund charges for services, Parks & Trails, the Building Inspection Fund, and the Street Maintenance Assessment District Fund. General Fund charges for services increased by $1.7 million due to an increase in services paid for by other City departments, including expenditures for the City Manager’s Office, Legal, Human Resources, Information Technology, and Finance. Parks & Trails District assessments increased by approximately 16.7% from $5.0 million in FY22 to $5.8 million in FY23, due to a 15% increase in special assessments to pay for deferred maintenance and due to growth in the district. The Building Inspection Fund increased by $0.7 million or 30% from $2.4 million to $3.1 million primarily due to growth in total applications submitted for plan review. The Street Maintenance District assessment revenue increased by approximately $0.5 million due to a 6% increase in special assessments and growth in the district. Restricted operating grants and contributions increased by $5.1 million or 66.6% from $7.7 million in FY22 to $12.8 million in FY23 primarily due to the recognition of American Rescue Plan Act grants revenues toward revenue recovery for operations in the General Fund and Planning Fund. 496 10 City of Bozeman, Montana Management’s Discussion and Analysis June 30, 2023 Program expenses increased by $12.6 million or 19.2%, from $65.2 million in FY22 to $77.8 million in FY23. A combination of increased costs of contracted services and increases in personnel costs resulted in this increase. Contracted and agreed upon citywide salary increases were implemented in fiscal year 2023 to address increased inflation in the community. These salary increases also supported the City in reducing the large amount of vacancy savings that was baked into prior fiscal year actuals and resulted in an increase in expenses. General government expenses increased by $5.4 million or 43.5% from $12.4 million to $17.7 million. $2.2 million of the increase is attributed to the salary and benefits increases as described above. $1.8 million of the increase includes city-wide payments for insurance, and general fund grants to non-profits which were reclassified from miscellaneous expenses in fiscal year 2023. Remaining increases are attributed to the personnel services increases described above. Public safety expenses increased by $5.6 million or 24.8% from $22.4 million in FY22 to $28.0 million in FY23. Public service expenses increased by $2.5 million or 20.3% from $12.2 million in FY22 to $14.6 million in FY23. Both increases are attributed to the contracted services and personnel services increases described above. Public welfare expenses decreased by $0.9 million or 5.4% from $16.2 million in FY22 to $15.3 million in FY23 due to significant urban renewal contributions that were expensed in fiscal year 2022 and a decline in grant expenses for Community Housing. Interest and fiscal charges saw a trivial increase of approximately $19,000 or 0.9% from $2.05 million in FY22 to $2.07 million in FY23. The following graph illustrates how program revenues offset program expenses for the governmental activities. 497 11 City of Bozeman, Montana Management’s Discussion and Analysis June 30, 2023 Business-Type Activities The net position of the City’s business-type activities increased by $14.1 million, or 4.3%, from $330.7 million last year to $344.8 million this year. Overall, the revenues provided by charges for services continued to exceed total expenses, the details of which are discussed further below. Business-type net position cannot be used to make up for deficits reported by governmental activities in the event any such deficits were reported. The City generally can only use the net position of business-type activities to finance the continuing operations of the water, wastewater, solid waste, storm water, and parking funds. Business-type activities total revenues decreased by $0.3 million or 0.5% from $49.8 million in FY22 to $49.5 million in FY23, while expenses increased by $6.8 million or 22.6%, from $30.3 million in FY22 to $37.1 million in FY23. Capital grants and contributions decreased by $2.0 million or 15.2% from $13.1 million in FY22 to $11.1 million in FY23. Restricted capital grants & contributions consist primarily of privately constructed water, wastewater, and storm water infrastructure that was contributed to the city by developers. Infrastructure contributions will vary year to year depending on the amount of development as well as what stage in the process the development is in. In the current year the city saw a decrease compared to prior year. Charges for services revenue decreased by 0.9% or $0.3 million in total. Impact fees and cash in lieu of building infrastructure, which are contributions to the City by developers, declined by approximately $1.6 million. This decrease was offset by an increase in user rates and fees of $1.4 million made up of water, wastewater, solid waste, stormwater, and parking revenues. These decreases were offset by an increase of $2.1 million in unrestricted investment earnings. 498 12 City of Bozeman, Montana Management’s Discussion and Analysis June 30, 2023 Operating Expenses – Water expenses increased by $2.3 million or 19.6%, wastewater expenses increased by $1.1 million or 10.4%, solid waste expenses increased by $2.8 million or 52.9% parking expenses increased by $0.2 million or 15.1%, and stormwater expenses increased by $0.5 million or 37.6%. Consistent with governmental activities, a combination of increased costs of contracted services and increases in personnel costs resulted in this increase. Contracted and agreed upon citywide salary increases were implemented in fiscal year 2023 to address increased inflation in the community. These salary increases also supported the City in reducing the large amount of vacancy savings that was baked into prior fiscal year actuals and resulted in an increase in expenses. The significant increase in solid waste expenses was primarily due to an additional $1.4 million of estimated expenses for post-closure costs of the landfill to meet regulatory requirements. The following graph illustrates how program revenues offset program expenses for the business-type activities. Financial Analysis of the Government’s Funds As noted earlier, the City uses fund accounting to ensure and demonstrate compliance with financial related legal requirements. Governmental Funds The focus of the City’s governmental funds is to provide information on current year revenues, expenditures, and balances of spendable resources. Such information is useful in assessing the City’s near-term financing requirements. In particular, unassigned fund balance may serve as a useful measure of a government’s net resources available for spending at the end of the fiscal year. 499 13 City of Bozeman, Montana Management’s Discussion and Analysis June 30, 2023 As of June 30, 2023, the City’s governmental funds reported combined ending fund balances of $80.9 million, an increase of $11.8 million or 17.1% in comparison to the prior year. The General Fund is the main operating fund of the City. The City’s total general fund balance increased by $6.5 million or 75.3%, from $8.6 million in FY22 to $15.1 million in FY23. This increase is primarily due to transfers in from other funds. American Rescue Plan Act Funding was transferred in the amount of $3.2 million for revenue recovery purposes. In addition, $2.0 million was moved to the General Fund from the Special Improvement District (SID) expense fund. It was determined that this balance originally came from the General Fund, and the City has the ability to loan directly from the General Fund to support an SID. Total General Fund expenditures increased by approximately $8.6 million, from $35.4 million in FY22 to $44.0 million in FY23. Approximately $2.5 million of the increase is in capital outlay, which included work on the Swim Center, Westside Recreation Center, and Library. Capital outlay also includes approximately $0.6 million in subscription-based IT services that were capitalized to implement GASB Statement 96. In addition, contracted and agreed upon salary increases across the City were implemented in fiscal year 2023 to address increased inflation in the community. These salary increases also supported the City in reducing the large amount of vacancy savings that was baked into prior fiscal year actuals. Significant variances (variances over 10%) between the original budgets compared to the final budgets were as follows: • A budget amendment increased intergovernmental revenues by $1.1 million to include the state’s contribution to employee pensions for employees other than public safety in both revenues and expenditures. • Charges for services were increased to increase expected revenues received from other departments to support central services. The original budget amount was based on prior year actuals, and the amendment trued up central services expenditures and therefore revenues to cover the FY24 budget. • Transfers in was amended by $2.1 million to close out funds that accounted for Special Improvement Districts (SIDs) that were completed. $2.0 million was added to the budget to transfer from the SID Revolving Fund, which can only contain 10% of outstanding bonds/warrants. • The original budget accounted for non-cash state pension expenditures in other, however the actual expenditures hit the appropriate service area. The budget was amended to move $2.9 million from other to public safety. Other minor increases to public safety include an increase for body worn cameras which were originally budgeted in capital outlay, and a carry forward of capital projects originally budgeted in fiscal year 2022. • The capital outlay budget was amended to carry forward capital projects originally budgeted in fiscal year 2023. 500 14 City of Bozeman, Montana Management’s Discussion and Analysis June 30, 2023 Significant expenditures variances (variances over 10%) between the final budget compared to actual results were as follows: • Both general government and public welfare actuals came in 20% under budget due to significant vacancy savings. While vacancy rates have improved, there were a number of new positions in the FY23 budget to support these service areas that are still in the queue for posting. • The budget for other expenditures included a contingency amount of 1% of the total General Fund budget. This amount was not spent in the fiscal year resulting in a budget variance of 24%. • Capital outlay expenditures exceed budget due primarily to expenditures for the Swim Center that were budgeted in the Capital Projects Fund. In addition, $571k of the variance is related to recognizing subscription-based technology assets which are not included in the budget. • Actuals exceeded budget in debt principal and interest due to subscription-based technology arrangement non-cash adjustments that are not considered a disbursement, expenditure, or obligation per the Montana Local Government Budget Act. The Street Maintenance District Fund accounts for city-wide special assessments to pay for street maintenance expenditures. Fund balance decreased by $0.1 million or 6.0%, from $2.0 million in FY22 to $1.8 million in FY23. The fund balance should continue to decline in this fund. Special assessments can only be used to pay for street maintenance, and any remaining fund balance will be used to pay for delayed capital projects and to mitigate future assessment increases. Revenues increased from $7.8 million in FY22 to $8.7 million in FY23 due to a 6% increase in the billed assessment to support the approved budget and capital improvement plan, and an increase in miscellaneous refunds & reimbursement revenues. Major budget amendments in the Street Maintenance District include a carry forward from the prior year of planned capital outlay of $1.7 million. Budget to actual variances are due to some items which are in the Capital Improvement Plan and are budgeted in capital outlay but are actually expended in operations in the public works service area. In addition, some projects in capital outlay will be delayed until fiscal year 2024 and will be carried forward. The American Rescue Plan Act (ARPA) Fund accounts for the ARPA federal grant program. The City received the final installment of the ARPA funding in fiscal year 2022. Per the grantor expenditure guidelines, the funding was used primarily for revenue recovery in various General Fund and Planning Fund departments and utility related infrastructure projects. Fund balance at the end of the 2023 fiscal year is $54,789. The SID Debt Service Fund accounts for the accumulation of resources and payment of special assessment bond principal and interest related to general improvement, sidewalk, and curb construction projects. SIDs or Special Improvement Districts are authorized under Montana Code Annotated (MCA) in order to undertake certain local improvements to benefit specific property owners located within City limits, and to assess the cost of those improvements to benefitted property owners. Fund balance decreased by $2.9 million or 65.5% from $4.4 million in FY22 to $1.5 million in FY23. The decrease was primarily due to a transfer of excess funds originally loaned from the General Fund to finance special improvement districts. The Construction Capital Projects Fund accounts for the construction of general improvement projects financed by special assessments other than those financed by proprietary funds. Fund balance increased by $1.1 million or 12.2%, from $9.3 million to $10.5 million. The increase is primarily due to transfers in from the General Fund to support expenditures to build the Bozeman Public Safety Center (BPSC) and for the Swim Center over and above the amount funded by the general obligation bonds. 501 15 City of Bozeman, Montana Management’s Discussion and Analysis June 30, 2023 Capital Asset and Debt Administration Capital Assets At the end of FY23 the City had $637.1 million invested in a broad range of capital assets, including police and fire equipment, buildings, park facilities, roads, and water and sewer lines. This amount represents a net increase (including additions and deductions) of roughly $31.6 million or 5.2%, from $605.5 million in FY22 to $637.1 million in FY23. Major additions and capital projects during the year include: $3.5 million for the construction of the library expansion project; $2.6 million for the construction of the Sourdough Transmission Main Phase 2; $1.0 million for swim center repairs and improvements, $1.3 million for construction of Fire Station 2, and $1.9 million for the reconstruction of Bridger/Story Road. The following table presents a summary of capital assets, net of accumulated depreciation/amortization as of June 30, 2023 and 2022. Amounts are shown in thousands. Governmental Activities Business-Type Activities Total20232022202320222023 2022 Capital assets (net of accumulateddepreciation/amortization whereapplicable)Land 38,073$ 37,398$ 2,219$ 2,219$ 40,291$ 39,617$ Artwork 15 - - - 15 - Right of way/Intangibles - - 2,762 2,762 2,762 2,762 Construction in progress 19,467 46,800 6,576 24,053 26,042 70,853 Buildings 55,371 15,181 84,178 84,182 139,550 99,363 Improvements other than buildings - - 163 421 163 421 Machinery and equipment 9,028 7,273 3,206 3,335 12,234 10,608 Infrastructure 173,970 167,407 238,650 212,133 412,620 379,541 Vehicles 1,676 1,378 468 563 2,145 1,941 Right-of-use lease assets 306 397 - - 306 397 Subscription-based IT assets 1,016 - - - 1,016 - Total capital assets 298,922$ 275,835$ 338,222$ 329,667$ 637,144$ 605,502$ Additional information on the City of Bozeman’s capital assets can be found in Note 6 of this report. 502 16 City of Bozeman, Montana Management’s Discussion and Analysis June 30, 2023 Long Term Liabilities At fiscal year-end, the City had $154.5 million of bonds, notes, leases, and SBITAs payable outstanding compared to $149.3 million last year – an increase of $5.2 million or 3.5%. Of this amount, $45.8 million comprises general obligation debt backed by the full faith and credit of the city. Additional information on the City’s long-term debt for can be found in Note 7 in the notes to the basic financial statements. The following table presents a summary of long term debts as of June 30, 2023 and 2022. Amounts are shown in thousands. Governmental Activities Business-Type Activities Total20232022202320222023 2022 General obligation bonds 45,765$ 47,990$ -$ -$ 45,765$ 47,990$ Tax increment financing bonds 9,803 10,289 - - 9,803 10,289 Special assessment bonds 3,372 3,764 - - 3,372 3,764 Water revenue bonds - - 15,949 17,267 15,949 17,267 Wastewater revenue bonds - - 25,939 27,932 25,939 27,932 Storm water revenue bonds - - 1,196 1,280 1,196 1,280 Notes payable 2,046 2,323 - - 2,046 2,323 Unamortized premiums 4,230 4,485 - - 4,230 4,485 Financed purchases payable 873 210 - - 873 210 Leases payable 344 420 - - 344 420 Subscription-based IT agreements 853 - - - 853 - Landfill closure/postclosure - - 2,359 1,175 2,359 1,175 Pollution remediation - - 537 783 537 783 Compensated absences 3,939 3,226 680 555 4,619 3,781 Total OPEB liability 3,688 4,197 763 871 4,451 5,068 Net pension liability 26,808 18,544 5,335 3,969 32,143 22,513 Total long-term liabilities 101,721$ 95,448$ 52,758$ 53,832$ 154,479$ 149,280$ The City’s general obligation bonds have been assigned ratings of “Aa3” (TOP, Series 2013 and Series 2014), and “Aa1” (BPSC, Series 2019 and FS2, Series 2022) by Moody’s Investor Services (Moody’s). The City’s tax increment financing bonds have been assigned ratings of “BBB” (Downtown, Series 2020), and “AA” (Midtown, Series 2020) by Standard & Poor’s Rating Services (S&P). Pursuant to State law and except for special provisions concerning general obligation indebtedness incurred for purposes of providing sewer and water service, aggregate outstanding and unpaid general obligation indebtedness for cities cannot exceed 2.5% of the total assessed value of taxable property as ascertained by the last assessment for State and county taxes. The 2022/23 total assessed valuation for the City was $11,021,338,679. The total amount of debt the City may incur according to State law is $275,533,467. As of June 30, 2023, the City had general obligation debt outstanding in the amount of $45,765,000. The City has $209,974,023 of general obligation debt capacity remaining. 503 17 City of Bozeman, Montana Management’s Discussion and Analysis June 30, 2023 Economic Factors and Next Year’s Budgets and Rates Bozeman has a 2022 population estimated to be 56,123 residents by the US Census Bureau which is almost 50% of the total population of Gallatin County. Between 2015-2019 the growth rate was 3.8% according to a Bozeman Economic Assessment conducted by Bridge Economic Development published in March 2023. As noted in the Transmittal Letter, Bozeman continues to be one of the fastest growing cities in the country, with a population increase of 2.9% per year over 11 years. This level of growth continues to put a huge demand on City services and City resources. Budgets in recent years have tried to reduce the impact of increasing cost of services and growth on homeowners in Bozeman. However, those policies resulted in significant deferred maintenance and a lack of funding to address it. As a result, the 2024 adopted budget includes significant revenue increases including 12% rate increases for water and sewer, 8% rate increases for stormwater, street maintenance district, and street arterial & collector district, 7% for parks & trails district, and 4% for tree maintenance/forestry. Property taxes are estimated to increase approximately 14% due primarily to an increase in the mill value as new assessed properties come on the tax roll. In addition, debt has been issued for the voter approved Fire Station 2 General Obligation Bonds and mills to pay the debt service have been added to the mill levy. The economic outlook and budget projections for next year are conservative. Increases in personnel costs will range from 5.0-6.5% based on bargaining unit contracts. The cost of infrastructure, contracted services, and right of way has increased significantly over the past few years resulting in significant inflation to the Capital plan. The City developed its next budget with the goal of toward maintaining current services in spite of significant growth pressures, supporting City Commission priorities, and supporting the City’s basic infrastructure. Requests for Information This financial report is designed to provide our citizens, taxpayers, customers, and investors and creditors with a general overview of the City’s finances and to show the City’s accountability for the money it receives. Questions concerning the information provided in this report or requests for additional financial information should be addressed to: Finance Department P.O. Box 1230 Bozeman, MT 59771 This report is available online at https://www.bozeman.net/departments/finance 504 The Notes to Financial Statements are an integral part of this statement 18 City of Bozeman, Montana Statement of Net Position June 30, 2023 Discretely Presented Primary Government Component UnitGovernmentalBusiness-Type Bozeman Public Activities Activities Total Library Foundation AssetsCash and cash equivalents 69,395,002$ 26,671,788$ 96,066,790$ 278,855$ Receivables (net of allowance for uncollectibles):Interest 237,319 154,203 391,522 17,000 Taxes 3,641,340 - 3,641,340 - Accounts 1,811,890 2,697,544 4,509,434 44,250 Special assessments 3,929,858 2,303 3,932,161 - Intergovernmental 840,421 196,137 1,036,558 - Leases - 333,289 333,289 - Notes receivable 815,477 - 815,477 - Prepaid items 563,120 - 563,120 86,271 Other assets 8,657 - 8,657 271,139 Restricted assetsCash and cash equivalents 26,853,944 31,717,329 58,571,273 - Investments - - - 5,571,466 Capital assets, net of accumulated depreciation/amortization, where applicableLand 38,072,640 2,218,553 40,291,193 - Artwork 15,000 - 15,000 10,046 Intangible - water rights - 2,762,142 2,762,142 - Construction in progress 19,466,651 6,575,780 26,042,431 - Buildings 55,371,446 84,178,187 139,549,633 - Improvements other than buildings - 162,646 162,646 - Machinery and equipment 9,028,316 3,205,949 12,234,265 - Infrastructure 173,969,574 238,650,448 412,620,022 - Vehicles 1,676,339 468,349 2,144,688 - Right-of-use lease assets 306,101 - 306,101 - Subscription-based IT assets 1,016,332 - 1,016,332 - Total assets 407,019,427 399,994,647 807,014,074 6,279,027 Deferred Outflows of ResourcesOther postemployment benefits 832,263 190,293 1,022,556 - Pension plans 7,418,451 1,112,332 8,530,783 - Total deferred outflows of resources 8,250,714 1,302,625 9,553,339 - 505 The Notes to Financial Statements are an integral part of this statement 19 City of Bozeman, Montana Statement of Net Position June 30, 2023 Governmental Business-Type Bozeman PublicActivitiesActivitiesTotalLibrary Foundation LiabilitiesAccounts payable 14,481,072 2,467,624 16,948,696 10,168 Escheat property payable 169,120 - 169,120 - Retainage and other payables 555,447 163,379 718,826 - Accrued payroll 1,650 811 2,461 8,832 Accrued interest payable 22,531 - 22,531 - Unearned revenue 4,440,175 195,669 4,635,844 - DebtDue within one year, other than OPEBand pensions 6,746,376 4,099,354 10,845,730 - Due in more than one year, other than OPEBand pensions 64,478,403 42,560,770 107,039,173 - Total OPEB liability 3,688,009 762,549 4,450,558 - Net pension liability 26,808,548 5,334,884 32,143,432 - Total liabilities 121,391,331 55,585,040 176,976,371 19,000 Deferred Inflows of ResourcesOther postemployment benefits 1,063,147 216,794 1,279,941 - Pension plans 1,437,428 390,563 1,827,991 - Lease related - 326,355 326,355 - Total deferred outflows of resources 2,500,575 933,712 3,434,287 - Net PositionNet investment in capital assets 236,885,005 297,691,119 534,576,124 - Restricted forGeneral government 3,325,140 - 3,325,140 - Public safety 20,521,522 - 20,521,522 - Public service 5,097,597 - 5,097,597 - Public welfareExpendable 15,250,286 - 15,250,286 5,147,558 Nonexpendable 2,073,934 - 2,073,934 1,112,469 Debt service 697,209 3,263,510 3,960,719 - Capital improvements - 28,395,531 28,395,531 - Unrestricted 7,527,542 15,428,360 22,955,902 - Total net position 291,378,235$ 344,778,520$ 636,156,755$ 6,260,027$ Primary Government 506 The Notes to Financial Statements are an integral part of this statement 20 City of Bozeman, Montana Statement of Activities Year Ended June 30, 2023 Program Revenues Net (Expense) Revenue and Changes in Net Position Operating Capital Component UnitCharges for Grants and Grants and Governmental Business-Type Bozeman PublicFunctions/Programs Expenses Services Contributions Contributions Activities Activities Total Library Foundation Primary government Governmental activitiesGeneral government 17,726,413$ 7,128,575$ 10,184,404$ -$ (413,434)$ -$ (413,434)$ -$ Public safety 28,002,592 4,942,022 683,787 48,852 (22,327,931) - (22,327,931) - Public service 14,646,742 22,563,519 947,712 10,527,814 19,392,303 - 19,392,303 - Public welfare 15,343,285 1,687,204 1,027,858 3,937,454 (8,690,769) - (8,690,769) - Interest 2,070,117 - - - (2,070,117) - (2,070,117) - Total governmental activities 77,789,149 36,321,320 12,843,761 14,514,120 (14,109,948) - (14,109,948) - Business-type activities Water 13,882,728 14,886,895 1,343,403 4,965,344 - 7,312,914 7,312,914 - Waste water 11,979,470 12,343,552 44,223 4,625,847 - 5,034,152 5,034,152 - Solid waste 7,980,984 5,872,630 28,998 - - (2,079,356) (2,079,356) - Parking 1,565,405 968,042 7,029 - - (590,334) (590,334) - Stormwater 1,711,451 1,883,096 11,876 1,493,232 - 1,676,753 1,676,753 - Total business-type activities 37,120,038 35,954,215 1,435,529 11,084,423 - 11,354,129 11,354,129 - Total primary government 114,909,187$ 72,275,535$ 14,279,290$ 25,598,543$ (14,109,948) 11,354,129 (2,755,819) - Component Unit Bozeman Public Library FoundationGeneral government 2,446,482$ -$ 1,434,591$ -$ - - - (1,011,891) General revenuesProperty taxes 39,860,197 - 39,860,197 - Unrestricted intergovernmental 5,370,015 - 5,370,015 - Unrestricted investment earnings (losses)1,118,619 833,995 1,952,614 (557,166) Miscellaneous 1,225,899 226,026 1,451,925 26,393 Gain on disposal of assets 2,726,201 (13,856) 2,712,345 - Transfers (1,667,658) 1,667,658 - - Total general revenue and transfers 48,633,273 2,713,823 51,347,096 (530,773) Change in net position 34,523,325 14,067,952 48,591,277 (1,542,664) Net position - beginning 256,854,910 330,710,568 587,565,478 7,802,691 Net position - ending 291,378,235$ 344,778,520$ 636,156,755$ 6,260,027$ Primary Government 507 Governmental Fund Financial Statements Major Governmental Funds General Fund – This fund accounts for the financial operations of the City, which are not accounted for in any other fund. Principal sources of revenue are property taxes, state and local shared revenues, licenses and permits, and charges for services provided to other funds. Principal expenditures in the General Fund are made for police and fire protection, public welfare, and general government. Street Maintenance District Special Revenue Fund – This special revenue fund accounts for special assessment revenues levied, received, and expended for street maintenance provided to specific property owners. American Rescue Plan Act (ARPA) Special Revenue Fund – This fund accounts for the ARPA federal grant program. Grant funds must be used for the stated purpose of the grant and must meet grantor expenditure guidelines. Special Improvement District (SID) Debt Service – Accounts for the accumulation of resources and payment of special assessment bond principal and interest for general improvement, sidewalk, and curb construction projects. Construction Capital Projects Fund – Accounts for the construction of general improvement projects financed by special assessments and general obligation debt other than those financed by proprietary funds. 508 The Notes to Financial Statements are an integral part of this statement 21 City of Bozeman, Montana Balance Sheet - Governmental Funds June 30, 2023 Street Other Total Maintenance American SID Capital Governmental Governmental General District Rescue Plan Debt Service Projects Funds Funds Assets Cash 14,749,410$ 2,547,256$ 4,332,804$ 2,228,752$ 10,069,434$ 32,324,824$ 66,252,480$ Receivables (net of allowance for uncollectibles)Property taxes 2,431,051 - - - - 1,210,289 3,641,340 Accrued interest 38,856 6,570 11,386 5,088 25,259 140,578 227,737 Accounts 1,584,346 5,068 - - - 204,897 1,794,311 Special assessments - 131,914 - 3,677,271 - 120,673 3,929,858 Intergovernmental 45,633 400,050 - - - 394,738 840,421 Due from other funds 1,444,199 - - - - - 1,444,199 Advances to other funds - - - - - 641,763 641,763 Prepaid items 37,167 - - - - - 37,167 Notes receivable - - - - - 815,477 815,477 Restricted cash and investments 1,938,143 - - - 1,439,763 23,476,038 26,853,944 Total assets 22,268,805$ 3,090,858$ 4,344,190$ 5,911,111$ 11,534,456$ 59,329,277$ 106,478,697$ 509 The Notes to Financial Statements are an integral part of this statement 22 City of Bozeman, Montana Balance Sheet - Governmental Funds June 30, 2023 Street Other Total Maintenance American SID Capital Governmental Governmental General District Rescue Plan Debt Service Projects Funds Funds Liabilities, Deferred Inflows of Resources, and Fund Balance Liabilities Accounts payable 5,563,506$ 1,104,195$ -$ 84,340$ 790,819$ 6,492,594$ 14,035,454$ Escheat property payable 143,414 678 - - - 25,028 169,120 Accrued payroll - - - - - 1,650 1,650 Interest payable 9,206 - - - - 11,173 20,379 Retainage payable 37,601 63,029 - - 275,914 178,903 555,447 Advances from other funds - - - 641,763 - - 641,763 Due to other funds - - - - - 543,293 543,293 Unearned revenue 43,500 77,224 4,289,401 - - 30,050 4,440,175 Total liabilities 5,797,227 1,245,126 4,289,401 726,103 1,066,733 7,282,691 20,407,281 Deferred Inflows of Resources Unavailable revenue - property taxes 156,197 - - - - 102,938 259,135 Unavailable revenue - special assessments - - - 3,666,668 - - 3,666,668 Unavailable revenue - court fines 1,237,376 - - - - - 1,237,376 Total deferred inflows of resources 1,393,573 - - 3,666,668 - 102,938 5,163,179 Fund Balance Nonspendable 37,167 - - - - 1,804,399 1,841,566 Restricted - 1,845,732 54,789 1,518,340 10,467,723 46,910,898 60,797,482 Committed 6,087,489 - - - - 603,360 6,690,849 Assigned - - - - - 2,927,964 2,927,964 Unassigned 8,953,349 - - - - (302,973) 8,650,376 Total fund balance 15,078,005 1,845,732 54,789 1,518,340 10,467,723 51,943,648 80,908,237 Total liabilities, deferred inflowsof resources, and fund balances 22,268,805$ 3,090,858$ 4,344,190$ 5,911,111$ 11,534,456$ 59,329,277$ 106,478,697$ 510 The Notes to Financial Statements are an integral part of this statement 23 City of Bozeman, Montana Reconciliation of the Governmental Funds Balance Sheet to the Statement of Net Position June 30, 2023 Total Fund Balances - Governmental Funds 80,908,237$ Amounts reported for governmental activities in the statement of net position are different because: Capital assets used in governmental activities are not financial resources and, therefore, are not reported in the funds.298,922,399 Internal service funds are used by management to charge the costs of certain activities to individual funds. The assets and liabilities of the internal service funds are included in the governmental activities in the statement of net position.2,411,960 Other assets are not available to pay for current-period expenditures and, therefore, are either not recognized as a receivable or are unearned in the funds.5,163,179 Impact fee credits do not affect current financial resources and, therefore, are not reported in the governmental funds.(56,343) Deferred outflows and inflows of resources related to pensions and other postemployment benefits are applicable to future periods and, therefore, are not reported in the funds.5,750,139 Long-term liabilities are not due and payable in the current period and, therefore, are not reported in the funds.(101,721,336) Net Position of Governmental Activities 291,378,235$ 511 The Notes to Financial Statements are an integral part of this statement 24 City of Bozeman, Montana Statement of Revenues, Expenditures, and Changes in Fund Balances Governmental Funds Year Ended June 30, 2023 Street Other TotalMaintenanceAmericanSIDCapital Governmental GovernmentalGeneralDistrictRescue Plan Debt Service Projects Funds Funds RevenuesTaxes 25,578,352$ -$ -$ -$ -$ 14,078,675$ 39,657,027$ Special assessments - 17,716 - 569,231 - 706,403 1,293,350 Licenses and permits 381,922 37,033 - - - 3,123,233 3,542,188 Intergovernmental 9,434,058 35,762 6,751,994 - - 1,868,173 18,089,987 Charges for services 6,307,168 8,220,620 - - - 15,608,720 30,136,508 Fines and forfeitures 1,009,841 - - - - 59,429 1,069,270 Interest on investments 171,669 41,037 196,050 57,674 243,848 1,036,820 1,747,098 Change in fair market value of investments (220,926) (19,675) 56,661 11,625 (106,668) (375,922) (654,905) Interest on loans receivable - - - - - 30,346 30,346 Miscellaneous 351,367 433,264 - - - 1,246,521 2,031,152 Total revenues 43,013,451 8,765,757 7,004,705 638,530 137,180 37,382,398 96,942,021 ExpendituresCurrentGeneral government 11,578,604 - - - - 3,422,533 15,001,137 Public safety 20,849,308 - - - 680,334 4,004,809 25,534,451 Public works - 7,080,982 - - 1,943 1,371,736 8,454,661 Public welfare 6,587,267 - - - 5,213 6,703,745 13,296,225 Other 1,683,415 - - - - 152,877 1,836,292 Capital outlay 3,107,362 2,155,485 - - 4,059,642 8,595,970 17,918,459 Debt servicePrincipal 186,259 307,904 - 391,928 - 3,041,427 3,927,518 Interest and fiscal charges 13,946 14,613 - 128,795 - 2,146,781 2,304,135 Total expenditures 44,006,161 9,558,984 - 520,723 4,747,132 29,439,878 88,272,878 Excess (Deficiency) of Revenuesover (under) Expenditures (992,710) (793,227) 7,004,705 117,807 (4,609,952) 7,942,520 8,669,143 Other Financing Sources (Uses)Transfers in 10,854,877 - - - 6,520,862 6,112,215 23,487,954 Transfers out (6,798,407) (206,363) (6,751,994) (3,002,709) (771,342) (7,624,797) (25,155,612) Issuance of long-term debt 637,867 862,620 - - - 511,185 2,011,672 Sale of capital assets 2,774,759 18,712 - - - 6,600 2,800,071 Total other financing sources (uses)7,469,096 674,969 (6,751,994) (3,002,709) 5,749,520 (994,797) 3,144,085 Net Change in Fund Balance 6,476,386 (118,258) 252,711 (2,884,902) 1,139,568 6,947,723 11,813,228 Fund Balance (Deficit), Beginning of Year 8,601,619 1,963,990 (197,922) 4,403,242 9,328,155 44,995,925 69,095,009 Fund Balance, End of Year 15,078,005$ 1,845,732$ 54,789$ 1,518,340$ 10,467,723$ 51,943,648$ 80,908,237$ 512 The Notes to Financial Statements are an integral part of this statement 25 City of Bozeman, Montana Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund Balances of Governmental Funds to the Statement of Activities Year Ended June 30, 2023 Net Change in Fund Balances - Total Governmental Funds 11,813,228$ Amounts reported for governmental activities in the statement of activities are different because: Capital outlays are reported as expenditures in governmental funds. However, in the statement of activities the cost of capital assets is allocated over their estimated useful lives as depreciation/amortization expense. When capital assets are dipsosed, the net effect is to reduce net position.23,145,747 Revenues in the statement of activities that do not provide current financial resources are not reported as revenues in the funds.(370,455) Internal service funds are used by management to charge the costs of certain activities toindividual funds. The net revenue (expense) of the internal service funds is reported in the governmental activities.(371,368) In the statement of activities compensated absences are measured by the amounts earned during the year. In the governmental funds, however, expenditures for theseitems are measured by the amount of financial resources used.(596,725) In the statement of activities OPEB is measured by the amounts earned during the year. In the governmental funds, however, expenditures for these items are measured by the amount of financial resources used.(292,785) In the statement of activities the cost of pension benefits earned net of employee contributions is reported as pension expense. In the governmental funds, however, the contributions are reported as expense.(975,045) The issuance of long-term debt provides current financial resources to governmental funds, while the repayment of principal of long-term debt consumes the current financial resources of governmental funds. Neither transaction, however, has any effect on net position. Also, governmental funds report the effect of premiums whendebt is first issued, whereas these amounts are deferred and amortized in thestatement of activities. This amount is the net effect of these differences in the treatment of long-term debt and related items.2,170,728 Change in Net Position of Governmental Activities 34,523,325$ 513 Proprietary Fund Financial Statements Proprietary funds are used to account for activities that receive significant support from fees and charges. The City has two types of proprietary funds: enterprise funds and internal service funds. Major Enterprise Funds Water Fund – This fund accounts for the City's water utility operations and to collect and administer water impact fees. Waste Water Fund – This fund accounts for the City's sewer utility operations and to collect and administer waste water impact fees. Solid Waste Fund – This fund accounts for the City’s garbage collection service and recycling operations. Internal Service Funds Internal Service Funds are used to account for goods and services provided by one department to other departments of the City on a cost-reimbursement basis. The City’s internal service funds are aggregated and presented in one column in the proprietary fund financial statements. 514 The Notes to Financial Statements are an integral part of this statement 26 City of Bozeman, Montana Statement of Net Position Proprietary Funds June 30, 2023 Governmental Business-type Activities ActivitiesInternal Water Wastewater Solid Waste Nonmajor Funds Total Service Funds Assets Current Assets Cash and cash equivalents 18,274,858$ 4,937,213$ 305,666$ 3,154,051$ 26,671,788$ 3,142,522$ Receivables (net of allowance for uncollectibles):Interest 105,925 36,851 1,017 10,410 154,203 9,582 Accounts 935,658 983,691 592,963 185,232 2,697,544 17,579 Special assessments 1,802 142 293 66 2,303 - Intergovernmental 468 195,669 - - 196,137 - Leases 333,289 - - - 333,289 - Prepaid items - - - - - 525,953 Other current assets - - - - - 8,657 Total current assets 19,652,000 6,153,566 899,939 3,349,759 30,055,264 3,704,293 Noncurrent AssetsRestricted assetsInvestments 21,717,124 9,045,284 240,391 714,530 31,717,329 - Capital assets - Land 573,847 1,112,597 228,673 303,436 2,218,553 - Construction in progress 5,219,886 596,564 153,151 606,179 6,575,780 - Intangible water rights 2,762,142 - - - 2,762,142 - Buildings 40,717,384 63,113,469 769,975 11,962,292 116,563,120 1,546,120 Improvements other than buildings 13,646,910 14,745,401 2,155,300 - 30,547,611 - Machinery and equipment 2,069,741 3,765,557 7,031,970 1,244,358 14,111,626 746,036 Vehicles 665,045 723,533 548,499 384,670 2,321,747 213,395 Infrastructure 220,180,667 167,467,565 118,081 8,478,146 396,244,459 29,314 Right-of-use lease assets - - - - - 423,122 Less accumulated depreciation/amortization (122,668,171) (94,516,457) (8,595,222) (7,343,134) (233,122,984) (1,418,723) Total capital assets, net of accumulateddepreciation/amortization 163,167,451 157,008,229 2,410,427 15,635,947 338,222,054 1,539,264 Total noncurrent assets 184,884,575 166,053,513 2,650,818 16,350,477 369,939,383 1,539,264 Total assets 204,536,575 172,207,079 3,550,757 19,700,236 399,994,647 5,243,557 515 The Notes to Financial Statements are an integral part of this statement 27 City of Bozeman, Montana Statement of Net Position Proprietary Funds June 30, 2023 Governmental Business-type Activities Activities Internal Water Wastewater Solid Waste Nonmajor Funds Total Service Funds Deferred Outflows of ResourcesOther postemployment benefits 59,211 54,160 49,782 27,140 190,293 64,469 Pension plans 394,274 313,758 244,745 159,555 1,112,332 495,994 Total deferred outflows of resources 453,485 367,918 294,527 186,695 1,302,625 560,463 Liabilities Current Liabilities Accounts payable 581,017 861,389 891,642 132,037 2,466,085 389,275 Retainage payable 123,883 34,201 5,295 - 163,379 - Due to other funds - - - - - 900,906 Accrued payroll 2,132 - 218 - 2,350 - Accrued interest payable - - - - - 2,152 Current portion of long-term debt 1,592,614 2,207,799 140,034 158,907 4,099,354 - Unearned revenue - 195,669 - - 195,669 - Total current liabilities 2,299,646 3,299,058 1,037,189 290,944 6,926,837 1,292,333 Noncurrent LiabilitiesLandfill closure costs - - 2,359,259 - 2,359,259 - Solvent site remediation liabliity - 536,669 - - 536,669 - Long-term debt, net of current portion Bonds payable 14,593,000 23,888,000 - 1,109,000 39,590,000 - Leases payable - - - - - 381,167 Compensated absences 4,367 32,009 34,297 4,169 74,842 377,754 Total OPEB liability 223,958 245,638 198,508 94,445 762,549 262,234 Net pension liability 1,890,988 1,504,821 1,173,828 765,247 5,334,884 2,410,999 Total noncurrent liabilities 16,712,313 26,207,137 3,765,892 1,972,861 48,658,203 3,432,154 Total liabilities 19,011,959 29,506,195 4,803,081 2,263,805 55,585,040 4,724,487 516 The Notes to Financial Statements are an integral part of this statement 28 City of Bozeman, Montana Statement of Net Position Proprietary Funds June 30, 2023 GovernmentalBusiness-type Activities ActivitiesInternal Water Wastewater Solid Waste Nonmajor Funds Total Service Funds Deferred Inflows of Resources Other postemployment benefits 68,507 67,918 53,869 26,500 216,794 82,100 Pension plans 138,438 110,167 85,935 56,023 390,563 78,013 Lease related 326,355 - - - 326,355 - Total deferred inflows resources 533,300 178,085 139,804 82,523 933,712 160,113 Net Position Net investment in capital assets 147,756,553 133,243,140 2,265,098 14,426,328 297,691,119 1,158,097 Restricted for: Drought reserve 780,747 - - - 780,747 - Impact capital projects 19,451,114 6,680,373 - - 26,131,487 - Infrastructure capital projects 586,664 - - - 586,664 - Parking capital projects - - 240,391 656,242 896,633 - Debt service 898,599 2,364,911 - - 3,263,510 - Unrestricted 15,971,124 602,293 (3,603,090) 2,458,033 15,428,360 (238,677) Total net position 185,444,801$ 142,890,717$ (1,097,601)$ 17,540,603$ 344,778,520$ 919,420$ 517 The Notes to Financial Statements are an integral part of this statement 29 City of Bozeman, Montana Statement of Revenues, Expenses and Changes in Net Position Proprietary Funds Year Ended June 30, 2023 GovernmentalBusiness-type Activities ActivitiesInternalWater Wastewater Solid Waste Nonmajor Funds Total Service Funds Operating RevenuesCharges for services 12,314,794$ 10,787,474$ 5,872,630$ 2,851,138$ 31,826,036$ 13,756,060$ Operating ExpensesSalaries and benefits 3,257,504 2,520,272 1,932,368 1,371,002 9,081,146 4,967,049 Materials and supplies 1,262,658 511,150 529,600 50,433 2,353,841 1,211,511 Repairs and maintenance 162,772 240,171 578,840 104,295 1,086,078 36,610 Utilities 311,948 864,303 879,873 48,614 2,104,738 40,838 Administrative charges 3,595,486 2,432,739 1,033,892 571,075 7,633,192 838,823 Other services 1,560,407 1,053,316 1,092,815 493,647 4,200,185 6,945,342 Depreciation/amortization 3,253,430 3,624,466 529,985 606,315 8,014,196 235,383 Change in estimated closure and post-closurecare costs - - 1,403,611 - 1,403,611 - Total operating expenses 13,404,205 11,246,417 7,980,984 3,245,381 35,876,987 14,275,556 Operating Loss (1,089,411) (458,943) (2,108,354) (394,243) (4,050,951) (519,496) 518 The Notes to Financial Statements are an integral part of this statement 30 City of Bozeman, Montana Statement of Revenues, Expenses and Changes in Net Position Proprietary Funds Year Ended June 30, 2023 Governmental Business-type Activities ActivitiesInternalWater Wastewater Solid Waste Nonmajor Funds Total Service FundsNonoperating Revenues (Expenses)Gain (loss) on disposal of assets 157 - - (14,013) (13,856) 739 Interest income 847,904 305,935 8,498 84,920 1,247,257 64,885 Net (decrease) increase in fair market value of (303,157) (98,121) 2,054 (14,038) (413,262) (38,460) investmentsInterest expense and bond fees (478,523) (733,053) - (31,475) (1,243,051) (20,864) Intergovernmental revenues 1,343,403 44,223 28,998 18,905 1,435,529 70,789 Impact fees 2,572,101 1,556,078 - - 4,128,179 - Lease income 47,470 - - - 47,470 - Miscellaneous revenue 124,255 9,267 33,379 11,655 178,556 71,039 Total nonoperating revenues (expenses)4,153,610 1,084,329 72,929 55,954 5,366,822 148,128 Income (Loss) before Contributions and Transfers 3,064,199 625,386 (2,035,425) (338,289) 1,315,871 (371,368) - Transfers in 1,351,387 246,769 295,000 190,784 2,083,940 - Transfers out (278,855) (96,454) - (40,973) (416,282) - Capital contributions 4,965,344 4,625,847 - 1,493,232 11,084,423 - Change in Net Position 9,102,075 5,401,548 (1,740,425) 1,304,754 14,067,952 (371,368) Total Net Position, Beginning of Year 176,342,726 137,489,169 642,824 16,235,849 330,710,568 1,290,788 Total Net Position (Deficit), End of Year 185,444,801$ 142,890,717$ (1,097,601)$ 17,540,603$ 344,778,520$ 919,420$ 519 The Notes to Financial Statements are an integral part of this statement 31 City of Bozeman, Montana Statement of Cash Flows Proprietary Funds Year Ended June 30, 2023 GovernmentalBusiness-type Activities ActivitiesWater Wastewater Solid Waste Nonmajor Funds Total Funds Operating Activities Receipts from customers and users 12,058,639$ 10,791,055$ 5,771,707$ 2,934,611$ 31,556,012$ 13,758,791$ Payments to suppliers (3,499,723) (2,756,427) (2,817,712) (1,034,770) (10,108,632) (8,149,535) Payments to and on behalf of employees (3,118,368) (2,551,549) (1,975,795) (1,294,080) (8,939,792) (4,689,268) Payments to internal service funds and administration (3,595,486) (2,432,739) (1,033,892) (571,075) (7,633,192) (838,823) Net Cash from (Used for) Operating Activities 1,845,062 3,050,340 (55,692) 34,686 4,874,396 81,165 Noncapital Financing Activities Transfers to other funds (278,855) (96,454) - (40,973) (416,282) - Transfers from other funds 1,351,387 246,769 295,000 190,784 2,083,940 - Intergovernmental operating grants 2,186,176 115,620 28,998 18,905 2,349,699 70,789 Impact fees 2,572,101 1,556,078 - - 4,128,179 - Miscellaneous income 124,255 9,267 33,379 11,655 178,556 71,039 Lease payments received 40,536 - - - 40,536 109,099 Net Cash from Noncapital Financing Activities 5,995,600 1,831,280 357,377 180,371 8,364,628 250,927 Capital and Related Financing ActivitiesProceeds from sale of assets 184 - - - 184 - Acquisition of capital assets (3,470,701) (1,255,884) (279,311) (492,899) (5,498,795) (106,181) Debt servicePrincipal (1,318,000) (1,993,321) - (84,000) (3,395,321) (95,743) Interest (478,523) (733,053) - (31,475) (1,243,051) (18,712) Net Cash Used for Capitaland Related Financing Activities (5,267,040) (3,982,258) (279,311) (608,374) (10,136,983) (220,636) Investing ActivityInterest and dividends from investments 482,970 186,618 10,157 65,450 745,195 20,396 Change in Cash and Cash Equivalents 3,056,592 1,085,980 32,531 (327,867) 3,847,236 131,852 Cash and Cash Equivalents, Beginning of Year 36,935,390 12,896,517 513,526 4,196,448 54,541,881 3,010,670 Cash and Cash Equivalents, End of Year 39,991,982$ 13,982,497$ 546,057$ 3,868,581$ 58,389,117$ 3,142,522$ 520 The Notes to Financial Statements are an integral part of this statement 32 City of Bozeman, Montana Statement of Cash Flows Proprietary Funds Year Ended June 30, 2023 GovernmentalBusiness-type Activities Activities Internal ServiceWater Wastewater Solid Waste Nonmajor Funds Total Funds Reconciliation of Operating Loss toNet Cash from (Used for) Operating Activities Operating loss (1,089,411)$ (458,943)$ (2,108,354)$ (394,243)$ (4,050,951)$ (519,496)$ Adjustments to reconcile operating loss to net cash from (used for) operating activitiesDepreciation/amortization 3,253,430 3,624,466 529,985 606,315 8,014,196 235,383 Landfill closure/postclosure costs - - 1,403,611 1,403,611 - Changes in assets and liabilitiesAccounts receivable (254,375) (191,946) (100,977) 83,392 (463,906) 2,731 Special assessments receivable (1,780) (142) 54 81 (1,787) - Prepaid expenses - - - - - (59,417) Other assets - - - - - (8,657) Pension related deferred outflows (57,293) (18,581) (8,318) (30,648) (114,840) (95,730) OPEB related deferred outflows 20,599 16,036 13,754 7,179 57,568 26,190 Vouchers payable (231,390) 244,089 477,506 (337,781) 152,424 152,840 Retainage payable 29,452 (85,318) 5,295 - (50,571) - Payroll payable 253 1,793 - - 2,046 - Compensated absences 56,155 27,944 31,579 9,903 125,581 116,735 Unearned revenue - 195,669 - - 195,669 - Landfill closure accruals - - (219,385) - (219,385) - Solvent site remediation liablitiy - (246,258) - - (246,258) - Net pension liability 550,207 330,369 233,129 252,351 1,366,056 869,198 Total OPEB liability (38,752) (30,163) (25,871) (13,504) (108,290) (49,263) Pension related deferred inflows (434,895) (392,042) (316,319) (163,297) (1,306,553) (643,846) OPEB related deferred inflows 42,862 33,367 28,619 14,938 119,786 54,497 Net cash from (used for)operating activities 1,845,062$ 3,050,340$ (55,692)$ 34,686$ 4,874,396$ 81,165$ Supplemental Schedule of Noncash Investing and Financing Activities Acquisition of capital assets throughcapital contributions and donations 4,965,344$ 4,625,847$ -$ 1,493,232$ 11,084,423$ -$ Acquisition of capital assets through debt -$ -$ -$ -$ -$ 70,767$ 521 Fiduciary Fund Financial Statements Custodial Funds Custodial funds are used to account for assets held by the City as an agent for individuals, private organizations, and other governments. Custodial funds are used to report fiduciary activities that are not required to be reported in pension (or other employee benefit) trust funds, investment trust funds, or private-purpose trust funds. The following custodial funds are included in the Fiduciary Fund financial statements: Tourism Business Improvement District – Accounts for amounts collected from hotels on behalf of the District, a special-purpose government, whose purpose is to enhance the economic vitality of Bozeman by promoting tourism through sales and marketing strategies. Municipal Court – Accounts for monies held for appearance bonds and restitution to criminal arrests and reimbursement for damage caused. The custodial funds are aggregated and presented in one column in the fiduciary fund financial statements. 522 The Notes to Financial Statements are an integral part of this statement 33 City of Bozeman, Montana Statement of Fiduciary Net Position Fiduciary Funds Year Ended June 30, 2023 Custodial Funds AssetsCash and cash equivalents 625,446$ Receivables (net of allowance for uncollectibles): Accounts 2,692 Total assets 628,138 Liabilities Deposits payable 580,359 Net Position Restricted forOther organization or individuals 47,779$ 523 The Notes to Financial Statements are an integral part of this statement 34 City of Bozeman, Montana Statement of Changes in Fiduciary Net Position Fiduciary Funds Year Ended June 30, 2023 Custodial Funds Additions Miscellaneous 572$ DeductionsTotal deductions - Change in Net Position 572 Net Position, Beginning 47,207 Net Position, Ending 47,779$ 524 35 City of Bozeman, Montana Notes to Financial Statements June 30, 2023 Note 1 - Summary of Significant Accounting Policies The City of Bozeman of Gallatin County, Montana (the City) was incorporated as a municipal corporation in 1883. The present City Code of Ordinances was adopted October 3, 2011. Under the charter, the City is governed by a mayor and four commission members who comprise the City Commission. The day-to-day affairs of the City are conducted under the supervision of the City Manager, who is appointed by and serves at the pleasure of a majority of the City Commission. The accompanying financial statements of the City have been prepared in conformity with generally accepted accounting principles (GAAP) as prescribed by the Governmental Accounting Standards Board (GASB), the accepted standard-setting body for establishing governmental accounting and financial reporting principles. The accompanying financial statements present the financial position of the City and the various funds and fund types, the results of operations of the City and the various funds and fund types, and the cash flows of the proprietary funds. The financial statements are presented as of June 30, 2023, and for the year then ended. The more significant accounting policies of the City are described below. The following is a summary of the City’s significant accounting policies: Reporting Entity The City has considered all potential component units for which it is financially accountable and other organizations for which the nature and significance of their relationship with the City are such that exclusion would cause the City’s financial statements to be misleading or incomplete. The Governmental Accounting Standards Board has set forth criteria to be considered in determining financial accountability in Statement 14, The Financial Reporting Entity, and Statement 61, The Financial Reporting Entity: Omnibus – an Amendment of GASB Statements No. 14 and No. 34. These criteria include appointing a voting majority of an organization's governing body and (1) the ability of the City to impose its will on that organization or (2) the potential for the organization to provide specific financial benefits to, or impose specific financial burdens on the City. Determining whether certain organizations are component units, organizations that are legally separate, tax- exempt entities are required to be reported as a discretely presented component unit if the following criteria is met. • The economic resources received or held by the separate organization are entirely or almost entirely for the direct benefit of the City. • The City is entitled to, or has the ability to otherwise access, a majority of the economic resources received or held by the separate organization. • The economic resources received or held by the separate organization that the City is entitled to or otherwise has the ability to access are significant. Discretely Presented Component Unit – The Bozeman Public Library Foundation (the Foundation) is a nonprofit agency organized to support the Bozeman Public Library through raising, receiving, administering, and disbursing funds, grants, bequests, and gifts for the sole benefit of the library. The resources were deemed to be significant and therefore, the Foundation is included as a discretely presented component unit under GASB Statement 39. 525 36 City of Bozeman, Montana Notes to Financial Statements June 30, 2023 The Foundation was incorporated with the State of Montana on August 29, 1983, and subsequently amended on December 15, 1989. The governing board consists of an elected president and elected members of the board of directors. Separately issued internal financial statements of the Foundation may be obtained by contacting the Foundation’s offices at 626 East Main Street, Bozeman, MT. 59715. The fiscal year end of the Foundation is December 31. Basis of Accounting/Measurement Focus The accounts of the City are organized on the basis of funds, each of which is considered a separate accounting entity. The operations of each fund are accounted for with a separate set of self-balancing accounts that comprise its assets, liabilities, fund equity, revenues and expenditures, or expenses, as appropriate. Governmental resources are allocated to and accounted for in individual funds based upon the purposes for which they are to be spent and the means by which spending activities are controlled. Certain amounts presented in the prior year data in these notes have been reclassified to be consistent with the current year’s presentation. Government-Wide Financial Statements The Government-Wide Financial Statements (the Statement of Net Position and the Statement of Activities) present information of all the non-fiduciary activities of the primary government and its component units. These statements present summaries of Governmental and Business-Type Activities for the City accompanied by a total column. These statements are presented on an “economic resources” measurement focus and the accrual basis of accounting. Accordingly, all of the City’s assets and liabilities, including capital assets and long-term liabilities, are included in the accompanying Statement of Net Position. The Statement of Activities presents changes in Net Position. Under the accrual basis of accounting, revenues are recognized in the period in which they are earned while expenses are recognized in the period in which the liability is incurred. The types of transactions reported as program revenues for the City are reported in three categories: 1) charges for services, 2) operating grants and contributions, and 3) capital grants and contributions. Certain eliminations have been made as prescribed by GASB 34 in regards to inter-fund activities, payables, and receivables. All internal balances in the Statement of Net Position have been eliminated, except those representing balances between the governmental activities and the business-type activities, which are presented as internal balances and eliminated in the total primary government column. In the Statement of Activities, internal service fund transactions have been eliminated; however, those transactions between governmental and business-type activities have not been eliminated. The City applies all applicable GASB pronouncements including all National Council on Governmental Accounting Statements and Interpretations currently in effect. 526 37 City of Bozeman, Montana Notes to Financial Statements June 30, 2023 Governmental Fund Financial Statements Governmental Fund Financial Statements include a Balance Sheet and a Statement of Revenues, Expenditures, and Changes in Fund Balances for all major governmental funds and nonmajor funds aggregated. An accompanying schedule is presented to reconcile and explain the differences in fund balances and changes in fund balances as presented in these statements to the net position and changes in net position presented in the Government-Wide Financial Statements. The City has presented all major funds that met those qualifications. All governmental funds are accounted for on a spending or “current financial resources” measurement focus and the modified accrual basis of accounting. Accordingly, only current assets and current liabilities are included on the Balance Sheets. The Statement of Revenues, Expenditures, and Changes in Fund Balances present increases (revenues and other financing sources) and decreases (expenditures and other financing uses) in current net position. Under the modified accrual basis of accounting, revenues are recognized in the accounting period in which they become both measurable and available to finance expenditures of the current period. Accordingly, revenues are recorded when received in cash, except that revenues subject to accrual (generally 60 days after year-end) are recognized when due. The primary revenue sources which have been treated as susceptible to accrual by the City are property taxes, intergovernmental revenues, and other taxes. Expenditures are recorded in the accounting period in which the related fund liability is incurred. The City has elected to apply the early recognition option of recognizing debt services expenditures provided by GASB Interpretation No. 6, Recognition and Measurement of Certain Liabilities and Expenditures in Governmental Fund Financial Statements. Under this option, an expenditure and a liability are recorded in debt service funds in the current year for amounts due early in the following year, for which resources have been provided during the current year. The City reports the following major governmental funds: General Fund – This fund accounts for the financial operations of the City, which are not accounted for in any other fund. Principal sources of revenue are property taxes, state and local shared revenues, licenses and permits, and charges for services provided to other funds. Principal expenditures in the General Fund are made for police and fire protection, public welfare, and general government. Street Maintenance District Special Revenue Fund – This special revenue fund accounts for special assessment revenues levied, received, and expended for street maintenance provided to specific property owners. American Rescue Plan Act (ARPA) Special Revenue Fund – This fund accounts for the ARPA federal grant program. Grant funds must be used for the stated purpose of the grant and must meet grantor expenditure guidelines. Special Improvement District (SID) Debt Service – Accounts for the accumulation of resources and payment of special assessment bond principal and interest for general improvement, sidewalk, and curb construction projects. Construction Capital Projects Fund – Accounts for the construction of general improvement projects financed by special assessments and general obligation debt other than those financed by proprietary funds. 527 38 City of Bozeman, Montana Notes to Financial Statements June 30, 2023 Proprietary Fund Financial Statements Proprietary Fund Financial Statements include a Statement of Net Position, a Statement of Revenues, Expenses, and Changes in Net Position, and a Statement of Cash Flows for each major proprietary fund. A column representing internal service funds is also presented with the Proprietary Fund Financial Statements. Internal service balances and activities, however, have been combined with the governmental activities in the Government-Wide Financial Statements. Proprietary funds are accounted for using the “economic resources” measurement focus and the accrual basis of accounting. Accordingly, all assets and liabilities (whether current or noncurrent) are included on the Statement of Net Position. The Statement of Revenues, Expenses, and Changes in Net Position present increases (revenues) and decreases (expenses) in total net position. Under the accrual basis of accounting, revenues are recognized in the period in which they are earned while expenses are recognized in the period in which the liability is incurred. Operating revenues in the proprietary funds are those revenues that are generated from the primary operations of the fund. All other revenues are reported as non-operating revenues. Operating expenses are those expenses that are essential to the primary operations of the fund. All other expenses are reported as non-operating expenses. The City reports the following major proprietary funds: Water Fund – This fund accounts for the City's water utility operations and to collect and administer water impact fees. Waste Water Fund – This fund accounts for the City's sewer utility operations and to collect and administer waste water impact fees. Solid Waste Fund – This fund accounts for the City’s garbage collection service and recycling operations. Fiduciary Fund Financial Statements Fiduciary Fund Financial Statements include a Statement of Fiduciary Net Position and a Statement of Changes in Fiduciary Net Position. The City’s Fiduciary Funds represent custodial funds. Custodial funds are custodial in nature (assets equal liabilities) and use the economic resources measurement focus. These funds are accounted for using the accrual basis of accounting. The following custodial funds are included in the Fiduciary Fund financial statements: Tourism Business Improvement District – Accounts for amounts collected from hotels on behalf of the District, a special-purpose government, whose purpose is to enhance the economic vitality of Bozeman by promoting tourism through sales and marketing strategies. Municipal Court Fund – Accounts for monies held for appearance bonds and restitution related to criminal arrests and reimbursement for damage caused. 528 39 City of Bozeman, Montana Notes to Financial Statements June 30, 2023 Internal Service Funds Internal Service Funds are used to account for goods and services provided by one department to other departments of the City on a cost-reimbursement basis. These direct costs and certain indirect costs are included as part of the program expense reported for the individual functions and activities of these other departments. The following Internal Service Funds are included in the Proprietary Fund Financial Statements: Vehicle Maintenance Shop – Accounts for the maintenance and repair of vehicles used in the operation of City services. Medical Health Insurance – Accounts for insurance premium revenues received from the various City departments and retirees, and the related costs of health, vision, and dental insurance premiums incurred by City employees and retirees. Public Works Administration – Accounts for the professional level management, engineering, and GIS technical support provided to other Public Works divisions, including water, wastewater, solid waste, stormwater, in addition to support provided to other City departments. Cash and Cash Equivalents Cash and investments are under the management of the City's Treasurer and consist primarily of demand deposits and investments in U.S. Government Bonds. Interest income earned as a result of pooling of City deposits is distributed to the appropriate funds utilizing a formula based on the average balance of cash and investments of each fund. Montana State statutes authorize the City to invest in interest-bearing savings accounts, certificates of deposits, and time deposits insured up to $250,000 by the Federal Deposit Insurance Corporation or fully collateralized, U.S. government and U.S. agency obligations and repurchase agreements where there is a master repurchase agreement and collateral held by a third party. Restricted Cash and Investments Restricted cash and investments are those whose use is restricted to specific purposes by state statute, bond indenture, or otherwise. The City’s restricted cash and investments are primarily restricted for construction and maintenance of City infrastructure, debt service and urban renewal. Investments Fair Value The City categorizes its fair value measurements within the fair value hierarchy established by generally accepted accounting principles. The hierarchy is based on the valuation inputs used to measure the fair value of the asset. Level 1 inputs are quoted prices in active markets for identical assets (these investments are valued using prices quoted in active markets); Level 2 inputs are significant other observable inputs (these investments are valued using matrix pricing); Level 3 inputs are significant unobservable inputs (these investments are valued using consensus pricing). 529 40 City of Bozeman, Montana Notes to Financial Statements June 30, 2023 Property Taxes Real property taxes are assessed and collected each fiscal year according to the following property tax calendar: Lien Date: December 1st for the 1st installment and June 1st for the 2nd installment Levy Date: November 1st Due Dates: November 30th for the 1st installment and May 31 for the 2nd installment Personal property taxes are assessed on January 1 of each year and billed in May, with payment due within thirty days. Gallatin County collects all property taxes on behalf of the City and remits collections, including penalties and interest, on a monthly basis. The County assesses a delinquency penalty of 2%. If taxes become delinquent, the County tax collector may sell the property to collect taxes due plus 0.83% per month interest. In the fund financial statements, the City accrues as receivable all property taxes received during the first sixty (60) days of the new fiscal year from Gallatin County, in accordance with the modified accrual basis. In the government-wide financial statements, all taxes billed, but not yet collected are accrued in accordance with the full accrual basis of accounting, as described in Note 1. Special Assessments Special assessments receivable represents the uncollected amounts levied against benefited property for the cost of local improvements. Assessments are payable over a period of 18 to 20 years and bear interest of 2.5% to 5.75% per annum. Recognition of the revenues from these assessments has been deferred until both measurable and available in governmental funds. In the Government-Wide Financial Statements, however, these amounts are reported as revenues in the period they are levied. Once received, the monies will be used to meet the annual debt service requirements on related bonds and notes payable. Interfund Receivables and Payables All outstanding balances between funds are reported as “due to/from other funds” (current portion) or “advances to/from other funds” (non-current portion). Any residual balances outstanding between the governmental activities and business-type activities are reported in the government-wide financial statements as “internal balances”. Lease Receivables Lease receivables are recorded by the City as the present value of future lease payments expected to be received from the lessee during the lease term, reduced by any provision for estimated uncollectible amounts. Lease receivables are subsequently reduced over the life of the lease as cash is received in the applicable reporting period. The present value of future lease payments to be received are discounted based on the interest rate the City charges the lessee. 530 41 City of Bozeman, Montana Notes to Financial Statements June 30, 2023 Prepaid Items Certain payments to vendors reflect costs applicable to future accounting periods (consumption method) and are recorded as prepaid items in both government-wide and fund financial statements. Capital Assets The City’s assets are capitalized at historical cost or estimated historical cost. City policy has set the capitalization threshold for reporting capital assets at $5,000. Donated capital assets, donated works of art and similar items, and capital assets received in a service concession arrangement are reported at acquisition value. Depreciable capital assets are reported on the Statement of Net Position, net of applicable accumulated depreciation. Capital assets which are not depreciable such as land, works of art, and construction in progress, are reported separately. Depreciation expense is reported in the Statement of Activities and is calculated using the straight-line method based on the assets estimated useful life. Depreciation is recorded on a straight-line basis over the useful lives of the assets as follows: Buildings 20-80 yearsOther structures and improvements 10-100 years Infrastructure/flood control 25-100 yearsMachinery and equipment 5-30 years Vehicles 5-10 years The City defines infrastructure as the basic physical assets that allow the City to function. These assets include the street system, comprised of roads, sidewalks, curbs, and street lights; the water purification and distribution system; the sewer collection and treatment system; park and recreation lands and related improvements; stormwater conveyance system; and buildings and site amenities, including parking and landscaped areas. The costs of normal maintenance and repairs that do not add to the value of the asset or materially extend asset lives are not capitalized. Improvements are capitalized and depreciated over the remaining useful lives of the related capital assets, as applicable. Right-of-use lease assets are recognized at the lease commencement date and represent the City’s right to use an underlying asset for the lease term. Right-of-use lease assets are measured at the initial value of the lease liability plus any payments made to the lessor before commencement of the lease term, less any lease incentives received from the lessor at or before the commencement of the lease term, plus any initial direct costs necessary to place the lease asset into service. Right-of-use lease assets are amortized over the shorter of the lease term or useful life of the underlying asset using the straight-line method. The amortization period varies from 1 to 4 years. Right to use subscription IT assets are recognized at the subscription commencement date and represent the City’s right to use the underlying IT asset for the subscription term. Right to use subscription IT assets are measured at the initial value of the subscription liability plus any payments made to the vendor at the commencement of the subscription term, less any subscription incentives received from the vendor at or before the commencement of the subscription term, plus any capitalizable initial implementation costs necessary to place the subscription asset into service. Right to use subscription IT assets are amortized over the shorter of the subscription term or useful life of the underlying asset using the straight-line method. The amortization period varies from 2 to 5 years. 531 42 City of Bozeman, Montana Notes to Financial Statements June 30, 2023 Long-Term Obligations In the government-wide financial statements and proprietary fund types in the fund financial statements, long- term obligations are reported as liabilities in the applicable governmental activities, business-type activities or proprietary fund type statement of net position. Bond premiums and discounts are deferred and amortized over the life of the bonds on a straight-line basis over the term of the related issue. Bonds payable are reported net of the applicable bond premium or discount. In the fund financial statements, governmental fund types recognize bond premiums and discounts during the current period. The face amount of debt issued is reported as other financing sources. Premiums received on debt issuances are reported as other financing sources, while discounts on debt issuances are reported as other financing uses. Lease liabilities represent the City’s obligation to make lease payments arising from the lease. Lease liabilities are recognized at the lease commencement date based on the present value of future lease payments expected to be made during the lease term. The present value of lease payments is discounted based on a borrowing rate determined by the City. Subscription liabilities represent the City’s obligation to make subscription payments arising from the subscription contract. Subscription liabilities are recognized at the subscription commencement date based on the present value of future subscription payments expected to be made during the subscription term. The present value of subscription payments is discounted based on a borrowing rate determined by the City. Compensated Absences Earned but unpaid vacation and sick pay is included as a liability in the proprietary fund types and Government- Wide Financial Statements. The portion relating to the governmental fund types not expected to be paid with expendable, and available resources is not reported in the governmental fund statements unless the liability has matured (i.e., unused reimbursable leave still outstanding following an employee's resignation or retirement). On-Behalf Payments for Fringe Benefits On-behalf payments for fringe benefits are direct payments made by one entity to a third-party recipient for the employees of another legally separate entity. On-behalf payments include pension plan contributions. The State's pension contribution is recorded as intergovernmental revenue with an offsetting public safety or general government expenditure in the Pension Special Revenue Fund (see Note 11). Postemployment Benefits Other Than Pensions (OPEB) Under the provisions of the various employee and union contracts, the District provides certain postemployment benefits other than pensions to eligible retirees. These OPEB obligations are funded on a pay-as-you-go basis. The total OPEB liability, deferred outflows/inflows of resources, and OPEB expense were actuarially determined in accordance with GASB Statement No. 75. Additional information can be found in Note 10. 532 43 City of Bozeman, Montana Notes to Financial Statements June 30, 2023 Pensions Montana Public Employees’ Retirement Association (MPERA) prepared financial statements using the accrual basis of accounting. The same accrual basis was used by MPERA for the purposes of determining the Net Pension Liability (NPL); Deferred Outflows of Resources and Deferred Inflows of Resources related to pensions; Pension Expense; the Fiduciary Net Position; and Additions to or Deductions from Fiduciary Net Position. Member contributions are recognized in the period in which contributions are due. Employer contributions are recognized when due and the employer has made a formal commitment to provide the contributions. Revenues are recognized in the accounting period they are earned and become measurable. Benefit payments and refunds are recognized in the accounting period in which they are due and payable in accordance with the benefit terms. Expenses are recognized in the period incurred. Investments are reported at fair value. MPERA adhered to all accounting principles generally accepted by the United States of America. MPERA applied all applicable pronouncements of the Governmental Accounting Standards Board (GASB). Additional information can be found in Note 11. Deferred Outflows and Inflows of Resources In addition to assets, the statement of financial position will sometimes report a separate section for deferred outflows of resources. This separate financial statement element, deferred outflows of resources, represents a consumption of net position that applies to a future period(s) and so will not be recognized as an outflow of resources (expense/ expenditure) until then. The City has three items that qualify for reporting in this category. They are the contributions made to pension plans after the measurement date and prior to the fiscal year-end, changes in the net pension liability not included in pension expense, and changes in the total other post employments benefits liability not included in OPEB expense, reported in the district-wide statement of net position. In addition to liabilities, the statement of financial position will sometimes report a separate section for deferred inflows of resources. This separate financial statement element, deferred inflows of resources, represents an acquisition of net position that applies to a future period(s) and so will not be recognized as an inflow of resources (revenue) until that time. The City has four types of items that qualify for reporting in this category. The City reports unavailable revenues from property taxes, special assessments, and court fines on the governmental funds balance sheet. These amounts are deferred and recognized as an inflow of resources in the period that the amounts become available. The second item is deferred inflows related to leases where the City is the lessor and is reported in the governmental funds balance sheet and statement of net position. The deferred inflows of resources related to leases are recognized as an inflow of resources (revenue) on the straight-line basis over the term of the lease. The other items are changes in the net pension liability not included in pension expense and changes in the total other post-employment benefits liability not included in OPEB expense reported in the district-wide statement of net position. 533 44 City of Bozeman, Montana Notes to Financial Statements June 30, 2023 Net Position Net position represents the difference between (a) assets and deferred outflows of resources and (b) liabilities and deferred inflows of resources in the City’s financial statements. Net investment in capital assets consists of capital assets, net of accumulated depreciation/amortization, and unspent bond proceeds for capital purposes reduced by the outstanding balances of any long-term debt or lease attributable to the acquisition, construction, or improvement of those assets, retainage payable, and accounts payable related to capital asset construction. Net position is reported as restricted when there are limitations imposed on its use either through enabling legislation or through external restrictions imposed by creditors, grantors, or laws and regulations of other governments. Unrestricted net position is the net amount of assets and liabilities that are not included in the determination of net investment in capital assets or the restricted component of net position. When an expense is incurred for purposes for which both restricted and unrestricted net position are available, the City’s policy is to apply restricted net position first. As a nonprofit organization operating under the Financial Accounting Standards Board (FASB), the Foundation reports net position with restricted or unrestricted funds, in accordance with donor requests. Fund Balance In accordance with GASB Statement 54, the City reports fund balance for governmental funds in two general classifications, nonspendable and spendable. Nonspendable Fund Balance – represents the portion of fund balance that is not in spendable form, such as inventories, and, in the general fund, long-term notes and loans receivable. Spendable fund balance is further categorized as restricted, committed, assigned, and unassigned. Restricted Fund Balance – balances that can be spent only for the specific purposes stipulated by external parties or through enabling legislation. External parties include grantors, debt covenants, votes, and laws and regulations of other governments. Committed Fund Balance – amounts that can be used only for the specific purposes determined by a formal action of the government’s highest level of decision-making authority, the City Commission. The City Commission needs to formally adopt a Resolution in order to establish, modify, or rescind a fund balance commitment. Assigned Fund Balance – amounts intended to be used by the government for specific purposes but do not meet the criteria to be classified as restricted or committed. The City’s policy to authorize the assignment of fund balance is as follows: Assigned Fund Balance can be expressed and authorized directly by the City Commission or by an official to whom the Commission delegates the authority. The City Commission delegates this authority to the City Manager. Included in the assigned fund balance for the general fund are assignments for the portion of the current general fund balance that is projected to be used to fund expenditures and other cash outflows in excess of the expected revenues and other cash inflows projected for the next fiscal year. 534 45 City of Bozeman, Montana Notes to Financial Statements June 30, 2023 Unassigned Fund Balance – the residual classification for the government’s general fund and includes all spendable amounts not contained in the other classifications. In other funds, the unassigned classification should be used only to report a deficit balance resulting from overspending for specific purposes for which amounts had been restricted, committed, or assigned. When both restricted and unrestricted resources are available, spending will occur in the following order, for the identified fund types: General Fund: Restricted, Committed, Assigned, Unassigned Special Revenue Funds: Restricted, Committed, Assigned Debt Service Funds: Assigned, Committed, Restricted Capital Projects Funds: Restricted, Committed, Assigned Minimum General Fund – Fund Balance The City does not maintain a stabilization fund. However, the City’s Charter requires an established minimum level of “General Fund Unreserved Fund Balance,” in accordance with the Government Finance Officers’ Association (GFOA) Best Practices, of 2 months or 16.67%, of operating revenues. Implementation of GASB Statement No. 96 As of July 1, 2022, the City adopted GASB Statement No. 96, Subscription‐Based Information Technology Arrangements (SBITAs). The implementation of this standard establishes that a SBITA results in a right to use subscription IT asset -an intangible asset - and a corresponding liability. The standard provides the capitalization criteria for outlays other than subscription payments, including implementation costs of a SBITA. The Statement requires recognition of certain SBITA assets and liabilities for SBITAs that previously were recognized as outflows of resources based on the payment provisions of the contract. There was no change to beginning balances of the right to use subscription asset and subscription liability as a result of implementing this standard. As a result of these adjustments there was no effect on beginning net position. The additional disclosures required by this standard are included in Notes 6 and 9. 535 46 City of Bozeman, Montana Notes to Financial Statements June 30, 2023 Note 2 - Reconciliation of Government-Wide and Fund Financial Statements Explanation of Certain Differences between the Governmental Fund Balance Sheet and the Government-Wide Statement of Net Position The governmental fund balance sheet includes reconciliation between fund balance – total governmental funds and net position – governmental activities as reported in the government – wide statement of net position. One element of that reconciliation explains that “long-term liabilities are not due and payable in the current period and, therefore, are not reported in the funds.” The details of this difference are as follows: Bonds payable 58,940,056$ Notes payable 2,045,505 Unamortized premium 4,230,082 Financed purchases payable 872,674 Leases payable 343,801 SBITAs 853,425 Compensated absences 3,939,236 Total OPEB liability 3,688,009 Net pension liability 26,808,548 Net adjustment to reduce fund balance - total governmentalfunds to arrive at net position - governmental activities 101,721,336$ Explanation of Certain Differences Between the Governmental Fund Statement of Revenues, Expenditures, and Changes in Fund Balances and the Government-Wide Statement of Activities The governmental fund statement of revenues, expenditures, and changes in fund balances includes a reconciliation between net changes in fund balances – total governmental funds and changes in net position of governmental activities as reported in the government-wide statement of activities. One element of that reconciliation explains that “Capital outlays are reported as expenditures in governmental funds. However, in the statement of activities the cost of capital assets is allocated over their estimated useful lives and reported as depreciation/amortization expense.” 536 47 City of Bozeman, Montana Notes to Financial Statements June 30, 2023 The details of this difference are as follows: Capital outlay reported in fund financial statements 17,918,459$ Plus: donated/contributed assets 14,514,120 Plus: assets purchased by internal service funds 176,948 Plus: prior year construction in progress added as asset in current year 40,982,806 Capital asset increases per Note 6 73,592,333$ Less: assets transferred out to enterprise funds (21,909) Less: assets disposed (931,647) Less: prior year construction in progress added as asset in current year (40,982,806) Capital asset decreases per Note 6 (41,936,362) Depreciation/amortization expense (9,447,606) Accumulated depreciation/amortization increases per Note 6 (9,447,606) Less: accumulated depreciation on assets transferred out to enterprise funds 21,909 Less: accumulated depreciation/amortization on assets disposed 857,038 Accumulated depreciation/amortization decreases per Note 6 878,947 Capital assets purchased by internal service funds (176,948) Depreciation/amortization expense included in net expense of internal service funds 235,383 Net adjustment to increase net changes in fund balances - total governmental funds to arrive at changes in net position of governmental activities 23,145,747$ Another element of that reconciliation states that “The issuance of long-term debt provides current financial resources to governmental funds, while the repayment of the principal of long-term debt consumes the current financial resources of governmental funds. Neither transaction, however, has any effect on net position. Also, governmental funds report the effect of premiums when debt is first issued, whereas these amounts are deferred and amortized in the statement of activities. This amount is the net effect of these differences in the treatment of long-term debt and related items.” The details of this difference are as follows: Principal payments on bonded debt 3,102,731$ Principal payments on notes payable 277,077 Amortization of premium on bonded debt 254,882 Issuance of financed purchases payable (929,222) Principal payments on financed purchases payable 266,172 Principal payments on leases payable 77,489 Issuance of SBITAs (1,153,217) Principal payments on SBITA 299,792 Issuance of debt recorded in internal service funds 70,767 Principal payments recorded in internal service funds (95,743) Net adjustment to net changes in fund balances - total governmental funds to arrive at changes in net position of governmental activities 2,170,728$ 537 48 City of Bozeman, Montana Notes to Financial Statements June 30, 2023 Note 3 - Stewardship, Compliance, and Accountability Budgets Each year, the City Manager must submit to the City Commission a proposed operating budget for all budget units within the City for the fiscal year commencing July 1. This operating budget includes proposed expenditures and the means of financing them. Public hearings are conducted to obtain citizen comments on the proposed budget. The budget is then legally adopted through passage of the appropriation resolution by the City Commission. The City adopts a final budget each June and amends the budget in August if the initial taxable value estimates were significantly different from the final Certified Values received from the State. Budgets are legally required for all governmental fund types. These budgets are prepared on the same basis and using the same accounting practices as are used to account and prepare financial reports for the funds. Budgets presented in this report for comparison to actual amounts are presented in accordance with GAAP. Annual appropriated budgets are adopted for all funds and all appropriations lapse at year-end. The level of budgetary control (that is the level at which expenditures cannot legally exceed the appropriated amount) is established at the service area level. The City Commission may amend the budget during the course of the fiscal year. Montana state statute provides a number of different ways to amend the budget. The first involves a reallocation of existing appropriations among the line items within a specific fund. The second defines a series of scenarios where the governing body has authority to amend the budget without a hearing for donations, land sales, and fee-based budgets. All other increases in appropriation authority that are not specifically permitted by statute must be approved through a public hearing process. Any accruing revenue of the municipality not appropriated and any balance at any time remaining after the purpose of an appropriation has been satisfied or abandoned, may from time to time be appropriated to other uses that do not conflict with any uses for which specifically the revenue was accrued. A public hearing is required for an overall increase in appropriation authority, except in the case of an emergency. In its annual appropriation resolution, the City Commission delegated budget amendment authority to the City Manager for the expenditure of funds from any or all of the following: debt service funds, enterprise funds, internal service funds, trust funds, federal and state grants accepted and approved by the governing body, special assessments, and donations. In all other funds, the City Manager may, without approval from the City Commission, make budget amendments as long as the total appropriation for the department is not exceeded. Spending control is established by the total amount of expenditures budgeted for each service area, but management may exercise control at budgetary line items. 538 49 City of Bozeman, Montana Notes to Financial Statements June 30, 2023 Deficit Fund Balance/Net Position The following funds had a deficit fund balance/net position at December 31, 2023: Governmental FundsNonmajor Funds General Obligation Bonds 290,217$ Proprietary FundsEnterprise Funds Solid Waste 1,097,601 Internal Service FundsVehicle Maintenance Shop 723,685 The deficit fund balance in General Obligation Bonds fund is due to a timing difference between the debt payment related to Fire Station 2 bonds and tax collections. The city elects to pay debt payments due on July 1st on or just before June 30th each fiscal year. The taxes related to the July 1st payment will be collected in fiscal year 2024. The deficit fund balance in the Solid Waste fund resulted from rates for solid waste services not increasing with the costs of operations. The city had not increased residential solid waste rates in over three years. Based on a thorough rate setting analysis the city implemented new solid waste rates in fiscal year 2024 that incorporates funding for the fund balance deficit. The deficit fund balance in Vehicle Maintenance Shop fund is due to an increase in the materials and supplies and salaries and benefits expenses. The City will re-evaluate the internal allocations to keep pace with increasing costs as well as recover the fund balance deficit that has accumulated over the last two fiscal years. Note 4 - Cash and Investments At June 30, 2023, the carrying amount of the City's deposits in local banks and investments was $5,403,616. Interest bearing account balances are covered by the Federal Depository Insurance Corporation (FDIC) up to $250,000 per bank, per depositor. In addition, all noninterest bearing transaction account balances are fully insured by FDIC coverage. Interest bearing account balances not insured by FDIC coverage is $5,158,704. This remaining balance is covered by collateral held by the pledging bank's agent in the City's name. 539 50 City of Bozeman, Montana Notes to Financial Statements June 30, 2023 The City’s cash and investments are reported as follows: Cash and cash equivalents Statement of net position 96,066,790$ Statement of fiduciary net position 625,446 Restricted cash and cash equivalentsStatement of net position 58,571,273 155,263,509$ Deposits 1,853,665$ Investments 153,409,844 155,263,509$ Custodial Credit Risk – Custodial credit risk for deposits is the risk that in the event of a financial institution failure, the City’s deposits may not be returned or the City will not be able to recover the collateral securities in the possession of the outside party. The City minimizes custodial credit risk by restrictions set forth in City policy and state law. The City’s policy requires deposits to be 104 percent secured by collateral valued at market value. The City Treasurer maintains a listing of financial institutions, which are approved for investment purposes. Types of securities that may be pledged as collateral are detailed in Section 17-6-103 of the Montana Code Annotated (MCA). City policy requires that specific safeguards against risk of loss be evidenced when the City does not physically hold the securities. Interest Rate Risk – Interest rate risk is the risk that changes in interest rates will adversely affect the fair value of an investment. The City’s investment policy limits investing funds primarily in short- and intermediate-term liquid securities of high credit quality to ensure adequate liquidity and minimize the impact of changes in interest rates. Portfolios are structured so that securities mature concurrent with cash needs to meet anticipated demands. Credit Risk – Credit risk is defined as the risk that an issuer or other counterpart to an investment that will not fulfill its obligation. The above credit risk rating indicates the probability that the issuer may default in making timely principal and interest payments. The credit ratings presented in the following table are provided by Standard and Poor’s Corporation (S&P). The City’s investment policy is to hold investments to maturity with the contractual understanding that these investments are low risk, locked in to a guaranteed rate of return, and are, therefore, not impacted significantly by changes in short term interest rates. 540 51 City of Bozeman, Montana Notes to Financial Statements June 30, 2023 On June 30, 2023, the following interest rate and credit risks and valuation inputs were associated with the City’s deposits and investments. Maturities (in Years)Investment Type Credit Rating Fair Value Not Applicable < 1 1 - 5 Primary GovernmentU.S. Government bonds S&P AA+88,859,930$ -$ 15,639,940$ 73,219,990$ Corporate Bonds S&P AA+994,870 - - 994,870 Certificates of Deposit N/A 1,200,000 1,200,000 - - MMIA Account N/A 2,355,044 2,355,044 - - State of Montana Short Term Investment Pool N/A 60,000,000 60,000,000 - 153,409,844$ 63,555,044$ 15,639,940$ 74,214,860$ The City voluntarily participates in the STIP (Short Term Investment Pool) administered by the Montana Board of Investments (MBOI). A local government’s STIP ownership is represented by shares, the prices of which are fixed at $1.00 per share, and participants may buy or sell shares with one business days’ notice. STIP administrative expenses are charged daily against the STIP income, which is distributed on the first calendar day of each month. Shareholders have the option to automatically reinvest their distribution income in additional shares. STIP is not registered with the Securities and Exchange Commission. STIP is not FDIC insured or otherwise insured or guaranteed by the federal government, the State of Montana, the Montana Board of Investments (MBOI) or any other entity against investment losses and there is no guaranteed rate of return on funds invested in STIP shares. The MBOI maintains a reserve fund to offset possible losses and limit fluctuations in STIP’s valuation. The STIP investment portfolio consists of securities with maximum maturity of 2 years. Information on investments held in the STIP can be found in the Annual Report on the MBOI website at https://investmentmt.com/Annual-Reports. Concentration of Credit Risk – Concentration of credit risk is the risk of loss attributed to the magnitude of a government’s investment in a single issuer. The City’s investment policy diversifies the portfolios by limiting investments to avoid overconcentration in securities from a specific issuer or business sector (excluding U.S. Treasury securities and the State of Montana Investment Pool). No more than 40% of the total portfolio may be with any one financial institution, excluding the State of Montana Investment Pool. The City’s investment policy also has limits on the following allowable deposits and investments: repurchase agreements shall not exceed 25 percent of the City’s portfolio or $3,000,000, certificates of deposit issued by commercial banks shall not exceed 25% of the City’s portfolio, and certificates of deposit issued by savings and loan associations shall not exceed 5% of the City’s portfolio. No more than 30% of the total portfolio may be invested in certificates of deposit with any one financial institution, and each financial institution must be a member of the FDIC. None of the established limits were exceeded as of June 30, 2023. Fair Value – The framework for measuring fair value provides a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1) and the lowest priority to unobservable inputs. The three levels of the fair value hierarchy are described as follows: Level 1 – Inputs to the valuation methodology are unadjusted quoted prices for identical assets in active markets that the City has the ability to access. 541 52 City of Bozeman, Montana Notes to Financial Statements June 30, 2023 Level 2 – Inputs to the valuation methodology include: Quoted prices for similar assets or liabilities in active markets: Quoted prices for identical or similar assets or liabilities in active markets; Inputs other than quoted prices that are observable for the asset or liability; Inputs that are derived principally from or corroborated by observable market data by correlation or other means. Level 3 – Inputs to the valuation methodology that are unobservable and significant to the fair value measurement. The asset’s fair value measurement level within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement. Valuation techniques used need to maximize the use of observable inputs and minimize the use of unobservable inputs. The following table presents the assets measure at fair value on a recurring basis, except those measured at net asset value (NAV) and cost as identified below, at June 30, 2023: Total Level 1 Level 2 Level 3Primary Government US Government Bonds 88,859,930$ -$ 88,859,930$ -$ Corporate Bonds 994,870 - 994,870 - 89,854,800$ -$ 89,854,800$ -$ U.S. Government and Agency securities, money market mutual funds, and certificates of deposit classified in Level 1 of the fair value hierarchy are valued using prices quoted in active markets for these securities. Corporate bonds, municipal bonds, corporate commercial paper, bond and equity mutual funds classified in Level 2 of the fair value hierarchy are valued using techniques such as quoted prices for similar investments in active and inactive markets as well as inputs other than quoted prices that are observable for these assets. Investments with the STIP totaling $60,000,000 are measured at net asset value (NAV) and are not subject to GASB 72 leveling. Investments in certificates of deposit and MMIA accounts are measured at cost and are not subject to GASB 72 leveling. The Foundation reports its cash and investments at December 31, 2022, as follows. Investments are considered to be Level 1. Cash and InvestmentsCash and cash equivalents 278,855$ Restricted investments 5,571,466 Total Cash and Investments 5,850,321$ 542 53 City of Bozeman, Montana Notes to Financial Statements June 30, 2023 Note 5 - Notes Receivable Loans receivable as of June 30, 2023, were as follows: Loan Program Interest Rate Maturity Date Amount Economic Development Loan Fund 3.0-8.0% 2024-2028 797,979$ Community Housing Fund 0%2026 17,498 815,477$ Note 6 - Capital Assets Governmental activities capital asset activity for the year ended June 30, 2023, was as follows: Beginning EndingBalance Increases Decreases Balance Governmental ActivitiesCapital assets, not being depreciated/amortizedLand 37,398,008$ 674,632$ -$ 38,072,640$ Artwork - 15,000 - 15,000 Construction in progress 46,799,648 13,649,809 40,982,806 19,466,651 Total capital assets, not beingdepreciated/amortized 84,197,656 14,339,441 40,982,806 57,554,291 Capital assets, being depreciated/amortizedBuildings 35,527,210 41,635,817 299,963 76,863,064 Machinery and equipment 20,410,289 3,503,550 547,733 23,366,106 Infrastructure 265,265,236 12,349,705 - 277,614,941 Vehicles 4,890,181 609,818 105,860 5,394,139 Right-of-use lease building 423,122 - - 423,122 Right-of-use lease vehicles 19,833 - - 19,833 Subscription-based IT assets - 1,154,002 - 1,154,002 Total capital assets, being depreciated/amortized 326,535,871 59,252,892 953,556 384,835,207 Less accumulated depreciation/amortization forBuildings 20,345,822 1,411,373 265,577 21,491,618 Machinery and equipment 13,136,904 1,707,871 506,985 14,337,790 Infrastructure 97,857,844 5,787,523 - 103,645,367 Vehicles 3,512,252 311,933 106,385 3,717,800 Right-of-use lease assets 45,618 91,236 - 136,854 Subscription-based IT assets - 137,670 - 137,670 Total accumulated depreciation/amortizatio 134,898,440 9,447,606 878,947 143,467,099 Total capital assets, being depreciated/amortized, net 191,637,431 49,805,286 74,609 241,368,108 Governmental Activities Capital Assets, Net 275,835,087$ 64,144,727$ 41,057,415$ 298,922,399$ 543 54 City of Bozeman, Montana Notes to Financial Statements June 30, 2023 Depreciation/amortization expense was charged to functions/programs of the government as follows: Governmental activitiesGeneral government 435,502$ Public safety 1,618,276 Public works 5,737,326 Public health and welfare 1,656,502 Total depreciation/amortization expense -governmental activities 9,447,606$ Business-type activities capital asset activity for the year ended June 30, 2023, was as follows: Beginning EndingBalance Increases Decreases Balance Business-Type ActivitiesCapital assets, not being depreciatedLand 2,218,553$ -$ -$ 2,218,553$ Intangible water rights 2,762,142 - - 2,762,142 Construction in progress 24,053,162 3,970,767 21,448,149 6,575,780 Total capital assets, not being depreciated 29,033,857 3,970,767 21,448,149 11,556,475 Capital assets, being depreciatedBuildings 113,909,343 2,659,559 5,783 116,563,119 Improvements other than buildings 30,547,611 - - 30,547,611 Machinery and equipment 13,399,592 719,256 7,223 14,111,625 Infrastructure 365,552,192 30,692,267 - 396,244,459 Vehicles 2,325,217 - 3,470 2,321,747 Total capital assets, being depreciated 525,733,955 34,071,082 16,476 559,788,561 Less accumulated depreciation forBuildings 29,727,515 2,661,318 3,906 32,384,927 Improvements other than buildings 30,126,930 257,634 - 30,384,564 Machinery and equipment 10,065,031 847,870 7,223 10,905,678 Infrastructure 153,418,794 4,175,621 - 157,594,415 Vehicles 1,762,470 93,663 2,735 1,853,398 Total accumulated depreciation 225,100,740 8,036,106 13,864 233,122,982 Total capital assets, being depreciated, net 300,633,215 26,034,976 2,612 326,665,579 Business-Type Activities Capital Assets, Net 329,667,072$ 30,005,743$ 21,450,761$ 338,222,054$ Depreciation increases include $21,910 of accumulated depreciation on assets transferred from governmental activities. 544 55 City of Bozeman, Montana Notes to Financial Statements June 30, 2023 Depreciation expense was charged to functions/programs of the government as follows: Business-type activitiesWater 3,253,430$ Waste Water 3,624,466 Solid Waste 529,985 Parking 400,734 Storm Water 205,581 Total depreciation expense - business-type activities 8,014,196$ Note 7 - Long-Term Debt The following is a summary of changes in long-term debt of the City for the year ended December 31, 2023: Beginning Ending Due WithinBalanceAdditions Reductions Balance One Year Governmental ActivitiesBonds payableGeneral obligation bonds 47,990,000$ -$ 2,225,000$ 45,765,000$ 2,300,000$ Tax increment financingbonds 10,288,570 - 485,803 9,802,767 501,468 Special assessment bonds 3,764,217 - 391,928 3,372,289 204,722 Total bonds payable 62,042,787 - 3,102,731 58,940,056 3,006,190 Notes payableNotes payable 1,886,950 - 167,627 1,719,323 285,104 Intercap notes payable 435,632 - 109,450 326,182 44,371 Total notes payable 2,322,582 - 277,077 2,045,505 329,475 Unamortized premium 4,484,964 - 254,882 4,230,082 254,882 Financed purchases payable 209,624 929,222 266,172 872,674 157,210 Leases payable 421,290 - 77,489 343,801 85,131 Subscription IT agreements - 1,153,217 299,792 853,425 254,988 Compensated absences 3,225,776 3,371,915 2,658,455 3,939,236 2,658,500 72,707,023$ 5,454,354$ 6,936,598$ 71,224,779$ 6,746,376$ Business-Type ActivitiesBonds payableWater revenue bonds 17,267,000$ -$ 1,318,000$ 15,949,000$ 1,356,000$ Waste water revenue bonds 27,932,321 1,993,321 25,939,000 2,051,000 Stormwater revenue bonds 1,280,000 - 84,000 1,196,000 87,000 Total bonds payable 46,479,321 - 3,395,321 43,084,000 3,494,000 Landfill closure/postclosure 1,175,032 1,184,227 - 2,359,259 - Pollution remediation obligation 782,927 - 246,258 536,669 - Compensated absences 554,615 743,869 618,288 680,196 605,354 48,991,895$ 1,928,096$ 4,259,867$ 46,660,124$ 4,099,354$ 545 56 City of Bozeman, Montana Notes to Financial Statements June 30, 2023 Bonds Payable At June 30, 2023, the City had the following bond issuances outstanding: PrincipalFinal Maturity Interest Rate Original Issue Outstanding Governmental Activities:General obligation bondsTOP Bonds, Series 2013 2034 2.00 - 4.00%9,900,000$ 6,270,000$ TOP Bonds, Series 2014 2035 2.00 - 4.00%5,100,000 3,470,000 BPSC Bonds, Series 2019 2039 2.00 - 4.00%34,405,000 29,500,000 Refunding Bonds, Series 2022 2042 4.00 - 5.00%25,640,000 6,525,000 Total general obligation bonds 75,045,000$ 45,765,000$ Tax increment financing bondsRefunding Bonds, Series 2020 2032 2.44%3,689,000$ 2,657,000$ Series 2017 2042 4.10%1,446,000 1,185,767 Series 2020 2044 2.00 - 4.00%6,325,000 5,960,000 Total sales tax revenue bonds 11,460,000$ 9,802,767$ Special assessment bondsSpecial Improvement District No. 747, Series 2020 2040 3.175%4,001,000$ 3,333,789$ Note payable to Department of Natural Resources and Conservation, #WRF-05067 2024 3.750%94,000 18,000 Note payable to Department of Natural Resources and Conservation, #SRF-05132 2024 3.750%400,000 20,500 Total taxable appropriation bonds 4,495,000$ 3,372,289$ Total governmental activities 91,000,000$ 58,940,056$ Business-Type ActivitiesWater revenue bonds Series 2011A 2032 3.00%9,491,000$ 5,009,000$ Series 2011B 2033 3.00%9,552,000 5,257,000 Series 2017 2037 2.50%7,573,000 5,683,000 Total water revenue bonds 26,616,000$ 15,949,000$ Waste water revenue bondsSeries 2010B 2030 1.75%359,300$ 131,000$ Series 2010D 2030 3.00%8,308,000 3,767,000 Series 2010F 2030 3.00%729,000 345,000 Series 2010C 2031 3.00%885,081 436,000 Series 2010G 2031 3.00%3,605,565 1,354,000 Series 2010H 2031 3.00%8,692,000 4,284,000 Sereis 2020D 2040 2.50%2,807,000 2,469,000 Series 2020B 2040 2.50%7,786,000 6,850,000 Series 2020C 2041 2.50%6,693,321 6,003,000 Series 2020A 2040 0.00%300,000 300,000 Total water revenue bonds 40,165,267$ 25,939,000$ Stormwater revenue bondsSeries 2015 2035 2.50%1,815,000$ 1,196,000$ Total business-type activities 135,377,534$ 43,084,000$ 546 57 City of Bozeman, Montana Notes to Financial Statements June 30, 2023 There are a number of limitations and restrictions contained in the various bond indentures. The City is in compliance with all significant limitations and restrictions. General Obligation Bonds – The City issues general obligation bonds to provide funds for the acquisition and construction of major capital assets. General obligation bonds are direct obligations of the City and are backed by the full faith and credit of the City. General obligation bonds are recorded in the governmental activities in the government-wide statement. Principal and interest on these bonds are payable from the debt service funds. Tax Increment Financing (TIF) Bonds – Tax Increment Financing (TIF) Bonds are not general obligations, but are special limited obligations of the City. TIF bonds are recorded in the governmental activities in the government- wide statement. The bonds are payable solely, and equally and ratably from the tax increment revenues received by the City from its Downtown Bozeman Improvement District, Northeast Improvement District, and Midtown Improvement District. If the incremental revenues are insufficient to pay the principal and interest due on the TIF bonds when due, such payment shortfall shall not constitute a default under the TIF agreement. If and when the incremental revenues are sufficient, the City shall pay the amount of any shortfall to the paying agent and registrar without any penalty interest or premium thereon. Due to the uncertainty of the future tax increment receipts, future payments on the TIF bonds may vary from the summary of debt service requirements. Principal and interest on these bonds are payable from the TIF debt service fund. Special Assessment Bonds – Special assessment bonds are payable from the collection of special assessments levied against benefited property owners within each special improvement district. To the extent that such special assessment collections are not sufficient to make the required debt service payments, the City is obligated to levy and collect a general property tax on all taxable property in the City to provide additional funding for the debt service payments. The cash balance in the SID Revolving Fund must equal at least 5% of the principal amount of bonds outstanding. If the cash balance is less than 5%, a levy is required to bring the cash balance to the required minimum. Principal and interest on these bonds are payable from the SID debt service fund. Revenue Bonds -The City also issues bonds where the City pledges income derived from the acquired or constructed assets to pay debt service. The revenue bond ordinances specify that the City shall establish various restricted asset accounts and distribute the net revenues for the water fund to the restricted asset accounts and set user rates at levels which will generate minimum net revenues, as defined. The revenue bond ordinances specify that City management and/or the City Commission shall take corrective actions to bring the City into compliance with the revenue bond ordinances, if necessary, and that bondholders shall have the right to institute proceedings, judicial or otherwise, to enforce the covenants of the revenue bond ordinances. The City is in compliance with applicable covenants as of June 30, 2023. 547 58 City of Bozeman, Montana Notes to Financial Statements June 30, 2023 The annual requirements to amortize the bonded debt outstanding for the governmental activities as of June 30, 2023, are as follows: Years Ending General Obligation Bonds Tax Increment Financing Bonds June 30, Principal Interest Principal Interest 2,300,000$ 1,658,650$ 501,468$ 334,613$ 2,390,000 1,573,675 517,401 320,441 2,475,000 1,483,125 531,215 304,068 2,575,000 1,384,250 545,171 287,104 2,675,000 1,280,000 564,152 269,745 2029-2033 15,140,000 4,659,850 2,773,715 1,066,961 2034-2038 14,060,000 1,770,494 1,854,832 655,719 2039-2043 4,150,000 245,150 2,114,813 264,466 2044-2047 - - 400,000 12,000 45,765,000$ 14,055,194$ 9,802,767$ 3,515,117$ Years Ending Special Assessment Bonds Total Governmental Activities June 30, Principal Interest Principal Interest 204,722$ 105,129$ 3,006,190$ 2,098,392$ 171,541 99,219 3,078,942 1,993,335 177,031 93,730 3,183,246 1,880,923 182,696 88,064 3,302,867 1,759,418 188,543 82,218 3,427,695 1,631,963 2029-2033 1,037,177 316,624 18,950,892 6,043,435 2034-2038 1,214,103 139,700 17,128,935 2,565,913 2039-2043 196,476 4,139 6,461,289 513,755 2044-2047 - - 400,000 12,000 3,372,289$ 928,823$ 58,940,056$ 18,499,134$ 2024 202520262027 2028 2024 202520262027 2028 548 59 City of Bozeman, Montana Notes to Financial Statements June 30, 2023 The annual requirements to amortize the bonded debt outstanding for the business-type activities as of June 30, 2023, are as follows: Years Ending Water Revenue Bonds Waste Water Revenue BondsJune 30, Principal Interest Principal Interest 1,356,000$ 312,250$ 2,051,000$ 531,968$ 1,395,000 284,930 2,111,000 489,298 1,435,000 256,840 2,171,000 445,388 1,477,000 227,930 2,234,000 400,265 1,520,000 198,170 2,298,000 353,798 2029-2033 6,936,000 523,840 7,562,000 1,146,061 2034-2038 1,830,000 83,550 4,874,000 558,598 2039-2043 - - 2,638,000 71,838 15,949,000$ 1,887,510$ 25,939,000$ 3,997,214$ Years Ending Stormwater Revenue Bonds Total Business-Type Activities June 30, Principal Interest Principal Interest 87,000$ 23,490$ 3,494,000$ 867,708$ 89,000 21,740 3,595,000 795,968 90,000 19,950 3,696,000 722,178 94,000 18,130 3,805,000 646,325 96,000 16,240 3,914,000 568,208 2029-2033 515,000 51,450 15,013,000 1,721,351 2034-2038 225,000 5,640 6,929,000 647,788 2039-2043 - - 2,638,000 71,838 1,196,000$ 156,640$ 43,084,000$ 6,041,364$ 20242025 202620272028 20242025 202620272028 Industrial Revenue and Private Activity Bonds The City issues tax exempt industrial revenue and private activity bonds to finance construction of facilities within the City, which it sells on installment contracts to the facilities' users. The bonds and the interest payable thereon are not obligations of the City and do not constitute or give rise to a pecuniary liability or contingent liability of the City or a charge against the general credit or taxing power of the City. The bonds are issued under and collateralized by the indentures and are payable solely from the payments to be made pursuant to the loan agreements between the City and the facilities users. The bonds are not a lien on any of the City’s properties or revenues, other than the facilities for which they were issued. To provide financial assistance for the acquisition and improvements of the building occupied by a private elementary school, the City has issued a Private Activity Revenue Bond. This bond is secured by the property financed and is payable solely from payments received on the underlying mortgage loan. Upon repayment of the bond, ownership of the acquired facility transfers to the private-sector entity served by the bond issuance. Neither the City nor any political subdivision thereof is obligated in any manner for repayment of the bond. Accordingly, the bond is not reported as a liability in the accompanying financial statements. As of June 30, 2023, the Revenue Bond outstanding had an aggregate principal amount payable of $114,671. 549 60 City of Bozeman, Montana Notes to Financial Statements June 30, 2023 Notes Payable At June 30, 2023, the City had the following notes payable outstanding: PrincipalFinal Maturity Interest Rate Original Issue Outstanding Governmental Activities: Notes payableSports Park Loan 2039 3.74%1,700,000 1,504,323 Pete's Hill Loan 2024 3.75%315,000 215,000 Total notes payable 2,015,000$ 1,719,323$ Intercap notes payableUpgrade Street Lighting 2030 1.55 - 5.75%199,231$ 110,035$ Sports Park-Bronken Park Improvements 2029 1.00 - 5.75%314,559 216,147 Total intercap notes payable 513,790$ 326,182$ Total governmental activities 4,030,000$ 2,045,505$ Future payments on notes payable are as follows: Governmental Activities Years Ending June 30, Principal Interest 329,475$ 78,510$ 118,478 52,893 122,399 50,216 126,433 47,363 130,755 44,463 2029-2033 547,381 173,485 2034-2038 548,135 80,840 2039-2043 122,349 3,446 2,045,405$ 531,216$ 20242025202620272028 Financed Purchases Payable Financed purchases payable consists of direct borrowing financing agreements for the purchase of various pieces of machinery and equipment. Financed purchases payable of the governmental activities are paid by the General Fund and Street Maintenance Fund. 550 61 City of Bozeman, Montana Notes to Financial Statements June 30, 2023 Future payments on financed purchases payable are as follows: Governmental ActivitiesYears Ending June 30, Principal Interest 157,210$ 56,811$ 123,070 49,926 113,913 41,340 121,664 33,489 356,817 26,745 872,674$ 208,311$ 2024 2025 202620272028 Leases Payable Leases payable consists of long-term leases as described in Note 8. Leases payable of the governmental activities are liquidated by the General Fund and the Public Works Administration Fund. Subscription IT Agreements Subscription IT agreements consists of long-term software contracts as described in Note 9. Subscriptions payable of the governmental activities are liquidated by the General Fund, City Planning Fund, and Public Works Administration Fund. Landfill Closure/Postclosure Landfill Closure/Postclosure liability consists of expected future obligations relating to the municipal landfill. See Note 20 for additional information. Pollution Remediation Liability Pollution remediation liability consists of expected future obligations relating to remediation of the Bozeman Solvent Site. See Note 21 for additional information. Compensated Absences The entire portion of accumulated unpaid vacation is considered short term for the reason that historically, unpaid vacation is utilized within one year either through vacation payouts when employees terminate their service with the City or with the use of annual leave throughout the year. Within the governmental activities, the General Fund has typically been used in prior years to liquidate the liability for compensated absences. Compensated absences for the business-type activities are liquidated from the fund in which they are earned. 551 62 City of Bozeman, Montana Notes to Financial Statements June 30, 2023 Note 8 - Leases Lessor Activities The City has accrued a receivable for a land lease. The remaining receivable for this lease was $333,289 for the year ended June 30, 2023. Deferred inflows related to these leases were $326,355 as of June 30, 2023. Interest revenue recognized on these leases was $17,801 for the year ended June 30, 2023. Principal receipts of $22,735 were recognized during the fiscal year. The interest rate used to value the lease was 5%. Final receipt is expected in fiscal year 2033. Lessee Activities The City has entered into various lease agreements for a vehicle and office space. The City is required to make principal and interest payments through February 2028. The lease agreements have interest rates between 6.61% and 8.09%. For lease agreements with no specified interest rate, the lease liability was valued using a discount rate of 5% based on the City’s incremental borrowing rate at the inception of the leases. The future principal and interest lease payments as of June 30, 2023, are as follows: Years Ending Governmental ActivitiesJune 30,Principal Interest 85,131$ 15,274$ 87,877 10,922 94,477 6,413 76,316 1,599 343,801$ 34,208$ 2024 2025 2026 2027 Note 9 - Subscription-Based Information Technology Arrangements (SBITAs) The City has entered into SBITA contracts for various operating software. The City is required to make principal and interest payments through January 2029. The SBITA contracts have interest rates of 5% which was determined based on the City’s incremental borrowing rate at the inception of the subscriptions. 552 63 City of Bozeman, Montana Notes to Financial Statements June 30, 2023 The future principal and interest payments as of June 30, 2023, are as follows: Years Ending Governmental Activities June 30,Principal Interest 254,988$ 35,936$ 268,981 22,501 140,943 14,121 91,905 7,714 96,608 2,913 853,425$ 83,185$ 2024 2025 20262027 2028 Note 10 - Other Post-Employments Benefit Plan The City provides other post-employment benefits (OPEB) allowing its retired employees to continue their medical, dental, and vision care coverage through the City's group health plan until death (Retiree Health Plan). The single-employer defined benefit post-employment health care plan allows retirees to participate, as a group, at a rate that does not cover all of the related costs. This results in the reporting of an implied rate subsidy in the financial statements and footnotes. The City's contract with Allegiance Benefits details the plan eligibility. MMIA is the administrator of the plan, which covers both active and retired members. In accordance with MCA 2-18-704, the City’s retirees may continue coverage for themselves and their covered eligible dependents, if they are eligible for public employees' retirement by virtue of their employment with the City of Bozeman. The City's current labor contracts do not include any obligations for payments to retirees. The City also allows terminated employees to continue their health care coverage for 18 months past the date of termination as required by the Consolidated Omnibus Budget Reconciliation Act of 1985 (COBRA). OPEB is recorded on an accrual basis for all enterprise and internal service funds. OPEB is recorded on a modified accrual basis for the governmental funds. Plan contributions are recognized in the period in which the contributions are made. Benefits and refunds are recognized when due and payable in accordance with the terms of the plan. No assets are accumulated in a trust that meets the criteria in paragraph 4 of Statement 75. Funding Policy The plan is unfunded by the City and plan members receiving benefits contribute 100 percent of their cost of the benefits on a pay-as-you-go basis. The City plan’s administratively established retiree medical, dental, and vision premiums vary between $41 and $2,313 per month depending on the medical plan selected, family coverage, and Medicare eligibility. The plan provides different coinsurance amounts depending on whether members use preferred, non-preferred, or other hospitals. Depending on the plan, for a single individual, after an annual deductible of $500 to $2,800 for non-Medicare-eligible retirees, the plan reimburses 60% to 80% of allowed charges after deductible and up to the out-of-pocket maximum, and then 100%. Depending on the plan, for a family, after an annual deductible of $1,000 to $5,600 for non-Medicare-eligible retirees, the plan reimburses 60% to 80% of allowed charges after deductible and up to the out-of-pocket maximum, and then 100%. 553 64 City of Bozeman, Montana Notes to Financial Statements June 30, 2023 Employees Covered by Benefit Terms At July 1, 2022, the census valuation date, the following employees were covered by the benefit terms: Inactive employees or beneficiaries currently receiving benefit payments 23 Inactive employees entitled to but not yet receiving benefit payments - Active employees 412 435 Contributions Benefit contributions are paid by the City as they come due. Total OPEB Liability (TOL) The City’s total OPEB liability of $4,450,558 for the June 30, 2023, reporting date was measured as of June 30, 2022, and was determined by an actuarial valuation as of July 1, 2022. Changes in the TOL for the year ended June 30, 2023, are as follows: Balance at July 1, 2022 5,067,116$ Changes from the Prior Year: Service cost 386,864 Interest cost 116,219 Assumption changes (862,570) Differences between expected and actual experience (110,114) Benefit payments (146,957) Net Change (616,558) Balance at June 30, 2023 4,450,558$ 554 65 City of Bozeman, Montana Notes to Financial Statements June 30, 2023 There is sensitivity of the TOL to changes in the discount rate. The TOL of the City as well as what the City’s TOL would be if it were calculated using a discount rate that is one percentage point lower (2.69%) or one percentage point higher (4.69%) follows: 1% Decrease in 1% Increase in Discount Rate Discount Rate Discount Rate Discount rate 2.69%3.69%4.69% Total OPEB Liability 5,031,129$ 4,450,558$ 3,948,856$ There is also sensitivity of the TOL to changes in the healthcare cost rates. The TOL of the City as well as what the City’s TOL would be if it were recalculated using healthcare cost trend rates that are one percentage point lower or one percentage point higher than the current healthcare cost trend rate follows: 1% Decrease in 1% Increase in Trend Rates Trend Rates Trend Rates Trend rate 6.50%, grading to 7.50%, grading to 8.50%, grading to 3.50% over 20 years 4.50% over 20 years 5.50% over 20 years Total OPEB Liability 3,872,715$ 4,450,558$ 5,144,076$ For the year ended June 30, 2023, the City recognized OPEB expense of $540,230. At June 30, 2023, the City reported deferred outflows of resources and deferred inflows of resources related to OPEB from the following sources: Deferred Deferred Outflows Inflows of Resources of Resources Differences between actual and expected experience -$ 239,534$ Assumption changes 1,022,556 1,040,407 1,022,556$ 1,279,941$ 555 66 City of Bozeman, Montana Notes to Financial Statements June 30, 2023 Amounts reported as deferred outflows of resources and deferred inflows of resources related to OPEBs will be recognized in OPEB expense as follows: OPEBYears Ended June 30, Expense Amount 2024 37,147$ 2025 37,149 2026 76,687 2027 (146,063) 2028 (217,466) Thereafter (44,839) The June 30, 2023, year-end OPEB cost is reported in the City’s funds as follows: Functions/Programs Governmental Activities General government 92,687$ Public safety 157,567 Public works 67,634 Public health and welfare 127,463 Total governmental activities 445,351 Business-type Activitie Water 33,950 Wastewater 26,429 Solid waste 22,668 Parking 4,417 Stormwater 7,415 Total business-type activities 94,879 Total 540,230$ 556 67 City of Bozeman, Montana Notes to Financial Statements June 30, 2023 Actuarial Methods and Assumptions The City’s actuarial valuation is completed on a biennial frequency, provided no significant events have occurred warranting new measurement. The City completed the valuation for fiscal year 2023. As of July 1, 2022, the most recent valuation date, the City’s total OPEB liability was determined using the following actuarial assumptions: The following key assumptions were chosen by the City: • Discount Rate: 3.69% for determining fiscal 2023 liability and expense. • Inflation Rate: 2.5% long-term. • Expected Real Rate of Return on Assets: N/A • Health Care Claim and Contribution Trend Rates: 7.50% initial in fiscal 2023 and 4.50% ultimate in fiscal 2043. • Average Salary Increase: Not applicable. • Retirement Rates: Based on actuarial valuation for statewide retirement systems as of June 30, 2022 • Retiree Participation Rate: 35% of future eligible retirees are assumed to participate in the Plan upon retirement. 80% of retirees are assumed to elect the same medical plan upon retirement that they have while being employed and 20% are assumed to elect the HDHP plan. • Lapse Rate: 15% per year • Marriage Assumption: 60% of all future eligible retired employees are assumed to be married at retirement and elect spousal coverage. Husbands are assumed to be three years older than their wives. The discount rate was based on a yield or index rate for a 20-year, tax-exempt, general obligation municipal bond with an average rating of AA/Aa or higher. Rates were taken from the Bond Buyer 20-Bond GO index as of the measurement date. Mortality rates were based on the Pub-2010 Public Retirement Plan Public Safety mortality table projected generationally with Scale MP-2021 for MPORS and FURS (Police and Fire, respectively) and Pub-2010 Public Retirement Plans General mortality table projected generationally with Scale MP-2021 for PERS (all other employees). The medical trend rate table was reset in fiscal 2023. This report constitutes the only analysis and presentation of the City’s post-employment benefit plan. There is no separate, audited GAAP-basis post-employment benefit plan report. 557 68 City of Bozeman, Montana Notes to Financial Statements June 30, 2023 Note 11 - Defined Benefit Pension Plans All City of Bozeman full-time employees participate in one of three statewide, cost-sharing, multiple-employer, retirement benefit plans administered by the Public Employees Retirement Division (PERD). Contributions to the three plans are as required by State statute. Fiscal years 2023 and 2022 total payroll and covered payroll for all retirement plans were $31,950,316 and $25,726,854, respectively. Financial information for all three plans is reported in the Public Employees' Retirement Board's published Annual Comprehensive Financial Report for the fiscal year-end. It is available from the PERD at 100 North Park Avenue, Suite 220, P.O. Box 200131, Helena, MT 59620-0131. The authority to establish, amend, and provide cost of living adjustments to all three plans is assigned to the State legislature. The authority to establish and amend contribution rates to all three plans is also assigned to the State legislature. For the year ended December 31, 2023 the City reported its proportionate share of net pension liabilities, deferred outflows of resources, deferred inflows of resources, and pension expense for each of the plans as follows: Deferred DeferredOutflows of Net Pension Inflows of Resources Liability Resources Pension Expense PERS 4,488,592$ 21,527,855$ 1,576,037$ 2,570,071$ FURS 2,115,919 3,494,798 77,968 687,199 MPORS 1,926,272 7,120,779 173,986 1,261,458 Total all plans 8,530,783$ 32,143,432$ 1,827,991$ 4,518,728$ Public Employees’ Retirement System (PERS) In accordance with GASB Statement 68, Accounting and Financial Reporting for Pensions, employers and the non- employer contributing entity are required to recognize and report certain amounts associated with participation in the Public Employees’ Retirement System Defined Benefit Retirement Plan (the Plan). This includes the proportionate share of the collective Net Pension Liability; Pension Expense; and Deferred Outflows and Deferred Inflows of Resources associated with pensions. Employers are provided guidance in GASB Statement 68, paragraph 74, where pension amounts must be combined as a total or aggregate for reporting, whether provided through cost-sharing, single-employer, or agent plans. These disclosures provide information for employers who are using a June 30, 2022, measurement date for the 2023 reporting. 558 69 City of Bozeman, Montana Notes to Financial Statements June 30, 2023 Summary of Significant Accounting Policies The Montana Public Employee Retirement Administration (MPERA) prepares its financial statements using the accrual basis of accounting. The same accrual basis was used by MPERA for the purposes of determining the Net Pension Liability (TPL); Deferred Outflows of Resources and Deferred Inflows of Resources related to pensions; Pension Expense; the Fiduciary Net Position; and Additions to or Deductions from Fiduciary Net Position. Member contributions are recognized in the period in which contributions are due. Employer contributions are recognized when due and the employer has made a formal commitment to provide the contributions. Revenues are recognized in the accounting period they are earned and become measurable. Benefit payments and refunds are recognized in the accounting period in which they are due and payable in accordance with the benefit terms. Expenses are recognized in the period incurred. Investments are reported at fair value. MPERA adhered to all accounting principles generally accepted by the United States of America. MPERA applied all applicable pronouncements of the Governmental Accounting Standards Board (GASB). General Information about the Pension Plan Plan Description The PERS-Defined Benefit Retirement Plan (DBRP), administered by the Montana Public Employee Retirement Administration (MPERA), is a multiple-employer, cost-sharing plan established July 1, 1945, and governed by Title 19, chapters 2 & 3, Montana Code Annotated (MCA). This plan provides retirement benefits to covered employees of the State, and local governments, and certain employees of the Montana University System, and school districts. Benefits are established by state law and can only be amended by the Legislature. All new members are initially members of the PERS-DBRP and have a 12-month window during which they may choose to remain in the PERSDBRP or join the PERS-DCRP by filing an irrevocable election. Members may not be participants of both the defined benefit and defined contribution retirement plans. All new members from the universities also have a third option to join the university system’s Montana University System Retirement Program (MUS-RP). Benefits Provided The PERS-DBRP provides retirement, disability, and death benefits to plan members and their beneficiaries. Benefits are based on eligibility, years of service, and highest average compensation (HAC). Member rights are vested after five years of service. Retirement benefits are as follows: Service retirement: • Hired prior to July 1, 2011: ο Age 60, 5 years of membership service ο Age 65, regardless of membership service ο Any age, 30 years of membership service • Hired on or after July 1, 2011: ο Age 65, 5 years of membership service ο Age 70, regardless of membership service 559 70 City of Bozeman, Montana Notes to Financial Statements June 30, 2023 Early Retirement: • Hired prior to July 1, 2011: ο Age 50, 5 years of membership service ο Any age, 25 years of membership service • Hired on or after July 1, 2011: ο Age 55, 5 years of membership service Second Retirement (requires returning to PERS-covered employer or PERS service): • Retired before January 1, 2016, and accumulate less than 2 years additional service credit or retired on or after January 1, 2016, and accumulate less than 5 years additional service credit: ο A refund of member’s contributions plus return interest (currently 2.02% effective July 1, 2018). ο No service credit for second employment. ο Start the same benefit amount the month following termination; and ο Guaranteed Annual Benefit Adjustment (GABA) starts again in the January immediately following the second retirement. • Retired before January 1, 2016, and accumulate at least 2 years of additional service credit: ο A recalculated retirement benefit based on provisions in effect after the initial retirement; and ο GABA starts on the recalculated benefit in the January after receiving the new benefit for 12 months. • Retired on or after January 1, 2016, and accumulate 5 or more years of service credit: ο The same retirement as prior to the return to service. ο A second retirement benefit as prior to the second period of service based on laws in effect upon the rehire date; and ο GABA starts on both benefits in the January after receiving the original and the new benefit for 12 months. Member’s highest average compensation (HAC) • Hired prior to July 1, 2011, highest average compensation during any consecutive 36 months. • Hired on or after July 1, 2011 – highest average compensation during any consecutive 60 months. Compensation Cap • Hired on or after July 1, 2013 – 110% annual cap on compensation considered as a part of a member’s highest average compensation. Monthly benefit formula • Members hired prior to July 1, 2011 ο Less than 25 years of membership service: 1.785% of HAC per year of service credit; ο 25 years of membership service or more: 2% of HAC per year of service credit. • Members hired on or after July 1, 2011 ο Less than 10 years of membership service: 1.5% of HAC per year of service credit; ο 10 years or more, but less than 30 years of membership service: 1.785% of HAC per year of service credit; ο 30 years or more of membership service: 2% of HAC per year of service credit. 560 71 City of Bozeman, Montana Notes to Financial Statements June 30, 2023 Guaranteed Annual Benefit Adjustment (GABA) – After the member has completed 12 full months of retirement, the member’s benefit increases by the applicable percentage (provided below) each January, inclusive of all other adjustments to the member’s benefit. • 3.0% for members hired prior to July 1, 2007 • 1.5% for members hired between July 1, 2007, and June 30, 2013 • Members hired on or after July 1, 2013: ο 1.5% for each year PERS is funded at or above 90%; ο 1.5% reduced by 0.1% for each 2.0% PERS is funded below 90%; and ο 0% whenever the amortization period for PERS is 40 years or more. Contributions The State Legislature has the authority to establish and amend contribution rates. Member and employer contribution rates are specified by Montana Statute and are a percentage of the member’s compensation. Contributions are deducted from each member’s salary and remitted by participating employers. Special Funding: The state of Montana, as the non-employer contributing entity, paid to the Plan, additional contributions that qualify as special funding. Those employers who received special funding are all participating employers. Not Special Funding: Per Montana law, state agencies and universities paid their own additional contributions. The employer paid contributions are not accounted for as special funding for state agencies and universities but are reported as employer contributions. Member and employer contribution rates are shown in the table below. State & University Fiscal Year Hired <07/01/2011 Hired >07/01/2011 Employer Employer State Employer State 2023 7.900%7.900%9.070%8.970%0.100%8.700%0.370% 2022 7.900%7.900%8.970%8.870%0.100%8.600%0.370% 2021 7.900%7.900%8.870%8.770%0.100%8.500%0.370% 2020 7.900%7.900%8.770%8.670%0.100%8.400%0.370%2019 7.900%7.900%8.670%8.570%0.100%8.300%0.370%2018 7.900%7.900%8.570%8.470%0.100%8.200%0.370%2017 7.900%7.900%8.470%8.370%0.100%8.100%0.370%2016 7.900%7.900%8.370%8.270%0.100%8.000%0.370%2015 7.900%7.900%8.270%8.170%0.100%7.900%0.370%2014 7.900%7.900%8.170%8.070%0.100%7.800%0.370%2012-2013 6.900%7.900%7.170%7.070%0.100%6.800%0.370%2010-2011 6.900%N/A 7.170%7.070%0.100%6.800%0.370%2008-2009 6.900%N/A 7.035%6.935%0.100%6.800%0.235%2000-2007 6.900%N/A 6.900%6.800%0.100%6.800%0.100% Member Local Government Local Government Member contributions to the system of 7.9% are temporary and will be decreased to 6.9% on January 1 following actuary valuation results that show the amortization period has dropped below 25 years and would remain below 25 years following the reduction of both the additional employer and additional member contribution rates. 561 72 City of Bozeman, Montana Notes to Financial Statements June 30, 2023 Employer contributions to the system: • Effective July 1, 2014, following the 2013 Legislative session, PERS-employer contributions increase an additional 0.1% a year and will continue over 10 years through 2024. The additional employer contributions including the 0.27% added in 2007 and 2009, will terminate on January 1 following actuary valuation results that show the amortization period has dropped below 25 years and would remain below the 25 years following the reduction of both the additional employer and additional member contributions rates. • Effective July 1, 2013, employers are required to make contributions on working retirees’ compensation. Member contributions for working retirees are not required. • The portion of employer contributions allocated to the Plan Choice Rate (PCR) are included in the employers reporting. The PCR was paid off effective March 2016 and the contributions previously directed to the PCR are now directed to member accounts. Non-Employer Contributions: Special Funding • The state contributed 0.1% of members’ compensation on behalf of local government entities. • The state contributed 0.37% of members’ compensation on behalf of school district entities. • The state contributed a Statutory Appropriation from the General Fund of $34,633,570. Pension Liabilities, Pension Expense, and Deferred Outflows of Resources and Deferred Inflows of Resources Related to Pensions GASB Statement 68 allows a measurement date of up to 12 months before the employer’s fiscal year-end. The basis for the Total Pension Liability (TPL) as of June 30, 2022, is on an actuarial valuation performed by the Plan’s actuary as of June 30, 2022. The Total Pension Liability (TPL) minus the Fiduciary Net Position equals the Net Pension Liability (NPL). The proportionate shares of the employer’s and the State of Montana’s NPL for June 30, 2023 and 2022 reporting dates, are displayed below. The employer’s proportionate share equals the ratio of the employer’s contributions to the sum of all employer and non-employer contributions during the measurement period. The state’s proportionate share for a particular employer equals the ratio of the contributions for the particular employer to the total state contributions paid. The employer recorded a liability of $21,527,855 and the employer’s proportionate share was 0.905336 percent. Change in June 30, 2023 June 30, 2022 June 30, 2023 June 30, 2022 Percent of Reporting Date Reporting Date Reporting Date Reporting Date Collective NPL City Proportionate Share 21,527,855$ 15,249,847$ 0.905336% 0.841036% 0.064300% State of Montana Proportionate Share associated with the City 6,454,277$ 4,507,680$ 0.271429% 0.248601% 0.022828% Total 27,982,132$ 19,757,527$ 1.176765% 1.089637% 0.087128% Net Pension Liability as of Percent of Collective NPL as of 562 73 City of Bozeman, Montana Notes to Financial Statements June 30, 2023 Changes in actuarial assumptions and methods: The following changes in assumptions or other inputs were made that affected the measurement of the TPL. • The discount rate was increased from 7.06% to 7.30%. • The investment rate of return was increased from 7.06% to 7.30%. • Updated all mortality tables to the PUB2010 tables for general employees. • Updated the rates of withdrawal, retirement, and disability. • Lowered the payroll growth assumption from 3.50% to 3.25%. • The inflation rate was increased from 2.40% to 2.75%. Changes in benefit terms: There have been no changes in benefit terms since the previous measurement date. Changes in proportionate share: There were no changes to the Plan between the measurement date of the collective NPL and the employer’s reporting date that are expected to have a significant effect on the employer’s proportionate share of the collective NPL. Pension Expense: At June 30, 2023, the reporting date, the employer recognized a Pension Expense of $2,570,071 for its proportionate share of the Plan’s pension expense. The employer also recognized grant revenue of $668,990 for the support provided by the State of Montana for its proportionate share of the pension expense associated with the employer. At June 30, 2023, the reporting date, the employer reported its proportionate share of the Plan’s deferred outflows of resources and deferred inflows of resources from the following sources: Deferred Outflows Deferred Inflows of Resources of Resources Expected vs actual experience 274,436$ -$ Project investment earnings vs. actual investment earnings 632,695 - Changes in assumptions 802,259 1,576,037 Changes in proportion and differences between employer contributions and proportionate share of contributions 890,101 - City contributions subsequent to the measurement date 1,889,101 - 4,488,592$ 1,576,037$ The $1,889,101 reported as deferred outflows of resources related to pensions resulting from City contributions subsequent to the measurement date will be recognized as a reduction of the net pension liability in the year ended June 30, 2024. 563 74 City of Bozeman, Montana Notes to Financial Statements June 30, 2023 Other amounts reported as deferred outflows of resources and deferred inflows of resources related to pensions will be recognized in pension expense as follows: For the Reporting Recognition of Deferred Outflows and Deferred Inflows in Year Ended June 30, Future Years as an Increase (Decrease) to Pension Expense 2024 638,429$ 2025 (373,095) 2026 (682,393) 2027 1,440,513 Actuarial Assumptions: The total pension liability measured as of June 30, 2022, for the June 30, 2023, reporting date, was determined on the results of an actuarial valuation date of June 30, 2022, using the following actuarial assumptions, applied to all periods included in the measurement. Among those assumptions were the following: Investment return (net of pension plan 7.30%investment expense, including inflation) General wage growth*3.50%*includes inflation at 2.75% Merit increases 0% to 4.80% Postretirement Benefit Increases Guaranteed Annual Benefit Adjustment (GABA) each January After the member has completed 12 full months of retirement,the member's benefit increases by the applicable percentage (below) each January, inclusive of all other adjustments to the member's benefit. Members hired prior to July 1, 2007 3.00% Members hired between July 1, 2007, and June 30, 2013 1.50% Members hired on or after July 1, 2013 For each year PERS is funded at or above 90%1.50% For each year PERS is funded below 90%1.50%, reduced by 0.1% for each 2.0% PERS is funded below 90% Whenver the amortization period for PERS is 40 years or more 0.00% For active members, mortality rates were based on PUB-2010 General Amount Weighted Employer Mortality projected to 2021 for males and females, projected generationally using MP-2021. For disabled retirees, the mortality rates were based on PUB-2010 General Amount Weighted Disabled Retiree Mortality table, projected to 2021, set forward one year for both males and females. For contingent survivors, mortality rates were based on PUB-2010 General Amount Weighted Contingent Survivor Mortality projected to 2021 with ages set forward one year for males and females, projected generationally using MP-2021. For healthy retirees, morality rates were based on PUB-2010 General Amount Weighted Healthy Retiree Mortality table projected to 2021, with ages set forward one year and adjusted 104% for males and 103% for females, projected generationally using MP-2021. 564 75 City of Bozeman, Montana Notes to Financial Statements June 30, 2023 The actuarial assumptions and methods utilized in the June 30, 2022 valuation, were developed in the five-year experience study for the period ending 2021. Discount Rate: The discount rate used to measure the TPL was 7.30%. The projection of cash flows used to determine the discount rate assumed that contributions from participating plan members, employers, and non- employer contributing entities would be made based on the Board’s funding policy, which established the contractually required rates under the Montana Code Annotated. The state contributed 0.10% of the salaries paid by local governments and 0.37% paid by school districts. In addition, the state contributed a statutory appropriation from the general fund. Based on those assumptions, the Plan’s fiduciary net position was projected to be adequate to make all the projected future benefit payments of current plan members through the year 2126. Therefore, the long-term expected rate of return on pension plan investments was applied to all periods of projected benefit payments to determine the TPL. A municipal bond rate was not incorporated in the discount rate. Target Allocations: The long-term expected rate of return on pension plan investments is reviewed as part of regular experience studies prepared for the Plan about every five years. The long-term rate of return as of June 30, 2022, is based on analysis in the experience study report dated May 2, 2022, without consideration for the administrative expense analysis shown. Several factors are considered in evaluating the long-term rate of return assumption including long-term historical data, estimates inherent in current market data, and an analysis in which best-estimate ranges of expected future real rates of return (expected returns, net of investment expense and inflation), along with estimates of variability and correlations for each asset class. These ranges were combined to develop the long-term expected rate of return by weighting the expected future real rates of return by the target asset allocation percentage and then adding expected inflation. The assumption is intended to be a long-term assumption (30 to 50 years) and is not expected to change absent a significant change in the asset allocation, a change in the underlying inflation assumption, or a fundamental change in the market that alters expected returns in future years. The target asset allocation and best estimates of arithmetic real rates of return for each major asset class as of the most recent experience study, are summarized in the following table. Long-Term Expected Real Target Asset Rate of Return Asset Class Allocation Arithmetic Basis Cash 3.0%-0.33%Domestic Equity 30.0%5.90% International Equity 17.0%7.14% Private Investments 15.0%9.13% Real Assets 5.0%4.03% Real Estate 9.0%5.41% Core Fixed Income 15.0%1.14% Non-Core Fixed Income 6.0%3.02% Total 100.0% 565 76 City of Bozeman, Montana Notes to Financial Statements June 30, 2023 Sensitivity of the proportionate share of the net pension liability to changes in the discount rate: The following presents the employer’s sensitivity of the NPL to the discount rate in the table below. A small change in the discount rate can create a significant change in the liability. The NPL was calculated using the discount rate of 7.30%, as well as what the TPL would be if it were calculated using a discount rate 1.00% lower or 1.00% higher than the current rate. 1% Decrease Current Discount 1% Increase (6.30%)Rate (7.30%)(8.30%) City's proportionate share of the net pension liability 31,033,407$ 21,527,855$ 13,552,811$ PERS Disclosure for the defined contribution plan The City contributed to the state of Montana Public Employee Retirement System Defined Contribution Retirement Plan (PERS-DCRP) for employees that have elected the DCRP. The PERS-DCRP is administered by the PERB and is reported as a multiple employer plan established July 1, 2002, and governed by Title 19, chapters 2 & 3, MCA. All new PERS members are initially members of the PERS-DBRP and have a 12-month window during which they may choose to remain in the PERS-DBRP or join the PERS-DCRP by filing an irrevocable election. Members may not be participants of both the defined benefit and defined contribution retirement plans. Member and employer contribution rates are specified by state law and are a percentage of the member’s compensation. Contributions are deducted from each member’s salary and remitted by participating employers. The state Legislature has the authority to establish and amend contribution rates. Benefits are dependent upon eligibility and individual account balances. Participants are vested immediately in their own contributions and attributable income. Participants are vested after 5 years of membership service for the employer’s contributions to individual accounts and the attributable income. Non-vested contributions are forfeited upon termination of employment per 19-3-2117(5), MCA. Such forfeitures are used to cover the administrative expenses of the PERS-DCRP. At the plan level for the measurement period ended June 30, 2022, the PERS-DCRP employer did not recognize any net pension liability or pension expense for the defined contribution plan. Plan level non-vested forfeitures for the 344 employers that have participants in the PERS-DCRP totaled $1,681,603. Pension Plan Fiduciary Net Position The stand-alone financial statements of the Montana Public Employees Retirement Board (PERB) Annual Comprehensive Financial Report (ACFR) and the GASB 68 Report disclose the Plan’s fiduciary net position. These reports, as well as the actuarial valuations and experience study, are available from the PERB at PO Box 200131, Helena MT 59620-0131, (406) 444-3154 or are available on the MPERA website at https://mpera.mt.gov/about/annualreports1/annualreports. 566 77 City of Bozeman, Montana Notes to Financial Statements June 30, 2023 Firefighters’ Unified Retirement System (FURS) In accordance with GASB Statement 68, Accounting and Financial Reporting for Pensions, employers and the non-employer contributing entity are required to recognize and report certain amounts associated with participation in the Firefighters’ Unified Retirement System (the Plan). This includes the proportionate share of the collective Net Pension Liability; Pension Expense; and Deferred Outflows and Deferred Inflows of Resources associated with pensions. Employers are provided guidance in GASB Statement 68, paragraph 74, where pension amounts must be combined as a total or aggregate for reporting, whether provided through cost-sharing, single- employer, or agent pension plans. These disclosures provide information for employers who are using a June 30, 2022, measurement date for the 2023 reporting. Summary of Significant Accounting Policies MPERA prepared financial statements using the accrual basis of accounting. The same accrual basis was used by MPERA for the purposes of determining the Net Pension Liability (TPL); Deferred Outflows of Resources and Deferred Inflows of Resources related to pensions; Pension Expense; the Fiduciary Net Position; and Additions to or Deductions from Fiduciary Net Position. Member contributions are recognized in the period in which contributions are due. Employer contributions are recognized when due and the employer has made a formal commitment to provide the contributions. Revenues are recognized in the accounting period they are earned and become measurable. Benefit payments and refunds are recognized in the accounting period in which they are due and payable in accordance with the benefit terms. Expenses are recognized in the period incurred. Investments are reported at fair value. MPERA adhered to all accounting principles generally accepted by the United States of America. MPERA applied all applicable pronouncements of the Governmental Accounting Standards Board (GASB). General Information about the Pension Plan Plan Description: The Firefighters’ Unified Retirement System (FURS), administered by the Montana Public Employee Retirement Administration (MPERA), is a multiple-employer, cost-sharing defined benefit plan established in 1981, and governed by Title 19, chapters 2 & 13, Montana Code Annotated (MCA). This plan provides retirement benefits to firefighters employed by first- and second-class cities, other cities and rural fire district departments that adopt the plan, and to firefighters hired by the Montana Air National Guard on or after October 1, 2001. Benefits are established by state law and can only be amended by the Legislature. Benefits provided: The FURS provides retirement, disability, and death benefits to plan members and their beneficiaries. Benefits are based on eligibility, years of service, and highest average compensation (HAC). Member rights are vested after five years of service. 567 78 City of Bozeman, Montana Notes to Financial Statements June 30, 2023 Service retirement and monthly benefit formula: • Hired on or after July 1, 1981, or member has elected to be covered by GABA: ο 20 years of membership service, regardless of age ο 2.5% of HAC times years of service credit • Hired prior to July 1, 1981, and not elected to be covered by GABA, the greater of above or: ο If membership service is less than 20 years: 2% of the highest monthly compensation (HMC) for each year of service credit; ο If membership service is greater than or equal to 20 years: 50% of HMC plus 2% of HMC for each year of service credit in excess of 20 • Early retirement: Age 50 with 5 years of membership service - Normal retirement benefit calculated using HAC and service credit Second Retirement (applies to retirement system members re-employed in a FURS position on or after July 1, 2017): • If the member works more than 480 hours in a calendar year and accumulates less than 5 years of service credit before terminating again, the member: ο is not awarded service credit for the period of reemployment; ο is refunded the accumulated contributions associated with the period of reemployment; ο starting the first month following termination of service, receives the same retirement benefit previously paid to the member; and ο does not accrue post-retirement benefit adjustments during the term of reemployment but receives a Guaranteed Annual Benefit Adjustment (GABA) in January immediately following second retirement. • If the member works more than 480 hours in a calendar year and accumulates at least 5 years of service credit before terminating again, the member: ο is awarded service credit for the period of reemployment; ο starting the first month following termination of service, receives:  the same retirement benefit previously paid to the member; and  a second retirement benefit for the period of reemployment calculated based on the laws in effect as of the members’ rehire date, and ο does not accrue post-retirement benefit adjustments during the term of reemployment but receives a GABA:  on the initial retirement benefit in January immediately following second retirement, and  on the second retirement benefit starting in January after receiving that benefit for at least 12 months. • A member who returns to covered service is not eligible for a disability benefit. Member’s compensation period used in benefit calculation: • Hired prior to July 1, 1981, and not electing GABA: highest monthly compensation (HMC); • Hired after June 30, 1981, and those electing GABA: highest average compensation (HAC) during any consecutive 36 months (or shorter period of total service). • Part-time firefighter: 15% of regular compensation of a newly confirmed full-time firefighter. Compensation Cap • Hired on or after July 1, 2013 – 110% annual cap on compensation considered as a part of a member’s highest average compensation. 568 79 City of Bozeman, Montana Notes to Financial Statements June 30, 2023 Guaranteed Annual Benefit Adjustment (GABA) • Hired on or after July 1, 1997, or those electing GABA, and has been retired for at least 12 months – the member’s benefit increases by 3.0% each January. Minimum Benefit Adjustment (non‐GABA) • A member with 10 or more years of membership service who has not elected to be covered under GABA – the minimum benefit provided may not be less than 50% of the monthly compensation paid to a newly confirmed active firefighter of the employer that last employed the member as a firefighter in the current fiscal year. Contributions: The State Legislature has the authority to establish and amend contribution rates to the plan. Member and employer contribution rates are specified by Montana Statute and are a percentage of the member’s compensation. Contributions are deducted from each member’s salary and remitted by participating employers. Special Funding: MCA 19-13-604 requires the State of Montana to contribute a percentage of total compensation directly to the Plan annually after the end of each fiscal year. Member, Employer and State contribution rates are shown in the table below. Member Fiscal Year Non-GABA GABA Employer State 1998-2023 9.500%1.700%14.360% 32.610% 1997 7.800%N/A 14.360% 32.610% Pension Liabilities, Pension Expense, and Deferred Outflows of Resources and Deferred Inflows of Resources Related to Pensions GASB Statement 68 allows a measurement date of up to 12 months before the employer’s fiscal year-end. The basis for the Total Pension Liability (TPL) as of June 30, 2022, is on an actuarial valuation performed by the Plan’s actuary as of June 30, 2022. The Total Pension Liability (TPL) minus the Fiduciary Net Position equals the Net Pension Liability (NPL). The proportionate shares of the employer’s and the State of Montana’s NPL for June 30, 2023 and 2022 reporting dates are displayed below. The employer’s proportionate share equals the ratio of the employer’s contributions to the sum of all employer and non-employer contributions during the measurement period. Due to the existence of the special funding situation, the state is required to report a proportionate share of a local government’s collective NPL that is associated with the non-state employer. The state’s proportionate share for a particular employer equals the ratio of the contributions for the particular employer to the total state contributions paid. The employer recorded a liability of $3,494,798 and the employer’s proportionate share was 2.2000 percent. 569 80 City of Bozeman, Montana Notes to Financial Statements June 30, 2023 Change inJune 30, 2023 June 30, 2022 June 30, 2023 June 30, 2022 Percent of Reporting Date Reporting Date Reporting Date Reporting Date Collective TPL City Proportionate Share 3,494,798$ 1,935,764$ 2.2000% 2.2620% -0.0620% State of Montana Proportionate Share associated with the City 7,906,822$ 4,393,566$ 4.9775% 5.1341% -0.1566% Total 11,401,620$ 6,329,330$ 7.1775% 7.3961% -0.2186% Net Pension Liability as of Percent of Collective NPL as of Changes in actuarial assumptions and methods: The following changes in assumptions or other inputs were made that affected the measurement of the TPL. • The discount rate was increased from 7.06% to 7.30%. • The investment rate of return was increased from 7.06% to 7.30%. • The payroll growth rate was reduced from 3.50% to 3.25%. • All mortality tables were updated to the PUB2010 tables for public safety employees. • Updated the rates of withdrawal, retirement, disability and merit increase scales. • The inflation rate was increased from 2.40% to 2.75%. Changes in benefit terms: There have been no changes in benefit terms since the previous measurement date. Changes in proportionate share: There were no changes to the Plan between the measurement date of the collective NPL and the employer’s reporting date that are expected to have a significant effect on the employer’s proportionate share of the collective NPL. Pension Expense: At June 30, 2023, the reporting date, the employer recognized its proportionate share of the Plan’s pension expense of $687,199. The employer also recognized grant revenue of $1,617,904 for the support provided by the State of Montana for its proportionate share of the pension expense that is associated with the employer. Recognition of Deferred Inflows and Outflows: At June 30, 2023, the reporting date, the employer reported its proportionate share of the Plan’s deferred outflows of resources and deferred inflows of resources from the following sources: Deferred Outflows Deferred Inflows of Resources of Resources Expected vs actual experience 304,800$ 6,829$ Project investment earnings vs. actual investment earnings 219,493 - Changes in assumptions 908,214 - Changes in proportion and differences between employer contributions and proportionate share of contributions - 71,139 City contributions subsequent to the measurement date 683,412 - 2,115,919$ 77,968$ 570 81 City of Bozeman, Montana Notes to Financial Statements June 30, 2023 The $683,412 reported as deferred outflows of resources related to pensions resulting from City contributions subsequent to the measurement date will be recognized as a reduction of the net pension liability in the year ended June 30, 2024. Other amounts reported as deferred outflows of resources and deferred inflows of resources related to pensions will be recognized in pension expense as follows: For the Reporting Recognition of Deferred Outflows and Deferred Inflows in Year Ended June 30, Future Years as an Increase (Decrease) to Pension Expense 2024 310,314$ 2025 210,951 2026 138,702 2027 554,162 2028 140,410 Actuarial Assumptions: The total pension liability measured as of June 30, 2022, for the June 30, 2023, reporting date, was determined on the results of an actuarial valuation date of June 30, 2022, using the following actuarial assumptions, applied to all periods included in the measurement. Among those assumptions were the following: Investment return (net of pension plan 7.3% investment expense, including inflation) General wage growth*3.5% *includes inflation at 2.75% Merit increases 1.00% to 6.40% Postretirement Benefit Increases Guaranteed Annual Benefit Adjustment (GABA) each January Members hired on or after July 1, 1997, or those electing GABA (requires 12 full months of retirement before GABA 3% will be made) Minimum Benefit Adjustment (non-GABA)Members with 10 or more yars of membership service The minimum benefit provided shouldand member did not elect GABA not be less than 50% of the current base compensation of a newly confirmed active firefighter of the employer that last employed the member as a fire fighter. 571 82 City of Bozeman, Montana Notes to Financial Statements June 30, 2023 For active members, mortality rates were based on PUB-2010 Safety Amount Weighted Healthy Retiree Mortality projected to 2021 for males and females, projected generationally using MP-2021. For healthy retirees, morality rates were based on PUB-2010 Safety Amount Weighted Healthy Retiree Mortality table projected to 2021, with ages set forward one year for males, adjusted 105% for males and 100% for females, projected generationally using MP-2021. For contingent survivors, mortality rates were based on PUB-2010 Safety Amount Weighted Contingent Survivor Mortality projected to 2021 with ages set forward one year for males, projected generationally using MP-2021. For disabled retirees, the mortality rates were based on PUB-2010 Safety Amount Weighted Disabled Retiree Mortality table, projected to 2021, set forward one year for males. The actuarial assumptions and methods utilized in the June 30, 2022, valuation, were developed in the five-year experience study for the period ending 2021. Discount Rate: The discount rate used to measure the TPL was 7.30%. The projection of cash flows used to determine the discount rate assumed that contributions from participating plan members, employers, and non- employer contributing entities would be made based on the Board’s funding policy, which established the contractually required rates under the Montana Code Annotated. The state contributed 32.61% of the salaries paid by employers. Based on those assumptions, the Plan’s fiduciary net position was projected to be adequate to make all the projected future benefit payments of current plan members through the year 2133. Therefore, the long-term expected rate of return on pension plan investments was applied to all periods of projected benefit payments to determine the TPL. A municipal bond rate was not incorporated in the discount rate. Target Allocations: The long-term expected rate of return on pension plan investments is reviewed as part of regular experience studies prepared for the Plan about every five years. The long-term rate of return as of June 30, 2022, is based on analysis in the experience study report dated May 2, 2022, without consideration for the administrative expense analysis shown. Several factors are considered in evaluating the long-term rate of return assumption including long-term historical data, estimates inherent in current market data, and an analysis in which best-estimate ranges of expected future real rates of return (expected returns, net of investment expense and inflation), along with estimates of variability and correlations for each asset class. These ranges were combined to develop the long-term expected rate of return by weighting the expected future real rates of return by the target asset allocation percentage and then adding expected inflation. The assumption is intended to be a long-term assumption (30 to 50 years) and is not expected to change absent a significant change in the asset allocation, a change in the underlying inflation assumption, or a fundamental change in the market that alters expected returns in future years. 572 83 City of Bozeman, Montana Notes to Financial Statements June 30, 2023 The target asset allocation and best estimates of arithmetic real rate of return for each major asset class as of the most recent experience study, are summarized in the following table. Long-TermExpected Real Target Asset Rate of Return Asset Class Allocation Arithmetic Basis Cash 3.0%-0.33% Domestic Equity 30.0%5.90% International Equity 17.0%7.14% Private Investments 15.0%9.13% Real Assets 5.0%4.03% Real Estate 9.0%5.41% Core Fixed Income 15.0%1.14% Non-Core Fixed Income 6.0%3.02% Total 100.0% Sensitivity of the proportionate share of the net pension liability to changes in the discount rate: The following presents the employer’s sensitivity of the NPL to the discount rate in the table below. A small change in the discount rate can create a significant change in the liability. The NPL was calculated using the discount rate of 7.30%, as well as what the NPL would be if it were calculated using a discount rate 1.00% lower or 1.00% higher than the current rate. 1% Decrease Current Discount 1% Increase (6.30%)Rate (7.30%)(8.30%) City's proportionate share of the net pension liability 6,057,049$ 3,494,798$ 1,448,854$ Pension plan fiduciary net position: The stand-alone financial statements (76d) of the Montana Public Employees Retirement Board (PERB) Annual Comprehensive Financial Report (ACFR) and the GASB 68 Report disclose the Plan’s fiduciary net position. The reports, as well as the actuarial valuations and experience study, are available from the PERB at PO Box 200131, Helena MT 59620-0131, (406) 444-3154 or are available on the MPERA website at https://mpera.mt.gov/about/annualreports1/annualreports. Municipal Police Officers’ Retirement System (MPORS) In accordance with GASB Statement 68, Accounting and Financial Reporting for Pensions, employers and the non- employer contributing entity are required to recognize and report certain amounts associated with participation in the Municipal Police Officers’ Retirement System (the Plan). This includes the proportionate share of the collective TotalPension Liability; Pension Expense; and Deferred Outflows and Deferred Inflows of Resources associated with pensions. Employers are provided guidance in GASB Statement 68, paragraph 74, where pension amounts must be combined as a total or aggregate for reporting, whether provided through cost-sharing, single- employer, or agent plans. This report provides information for employers who are using a June 30, 2022, measurement date for the 2023 reporting. 573 84 City of Bozeman, Montana Notes to Financial Statements June 30, 2023 Summary of Significant Accounting Policies MPERA prepared financial statements using the accrual basis of accounting. The same accrual basis was used by MPERA for the purposes of determining the Net Pension Liability (NPL); Deferred Outflows of Resources and Deferred Inflows of Resources related to pensions; Pension Expense; the Fiduciary Net Position; and Additions to or Deductions from Fiduciary Net Position. Member contributions are recognized in the period in which contributions are due. Employer contributions are recognized when due and the employer has made a formal commitment to provide the contributions. Revenues are recognized in the accounting period they are earned and become measurable. Benefit payments and refunds are recognized in the accounting period in which they are due and payable in accordance with the benefit terms. Expenses are recognized in the period incurred. Investments are reported at fair value. MPERA adhered to all accounting principles generally accepted by the United States of America. MPERA applied all applicable pronouncements of the Governmental Accounting Standards Board (GASB).General Information about the Pension Plan General Information about the Pension Plan Plan Description: The Municipal Police Officers’ Retirement System (MPORS), administered by the Montana Public Employee Retirement Administration (MPERA), is a multiple-employer, cost-sharing defined benefit plan established in 1974 and governed by Title 19, chapters 2 & 9, Montana Code Annotated (MCA). This plan provides retirement benefits to all municipal police officers employed by first- and second-class cities and other cities that adopt the plan. Benefits are established by state law and can only be amended by the Legislature. Deferred Retirement Option Plan (DROP): Beginning July 2002, eligible members of MPORS can participate in the DROP by filing a one-time irrevocable election with the Board. The DROP is governed by Title 19, Chapter 9, Part 12, MCA. A member must have completed at least twenty years of membership service to be eligible. They may elect to participate in the DROP for a minimum of one month and a maximum of 60 months and may only participate in the DROP once. A participant remains a member of the MPORS but will not receive membership service or service credit in the system for the duration of the member’s DROP period. During participation in the DROP, all mandatory contributions continue to the retirement system. A monthly benefit is calculated based on salary and years of service to date as of the beginning of the DROP period. The monthly benefit is paid into the member’s DROP account until the end of the DROP period. At the end of the DROP period, the participant may receive the balance of the DROP account in a lump-sum payment or in a direct rollover to another eligible plan, as allowed by the IRS. If the participant continues employment after the DROP period ends, they will again accrue membership service and service credit. The DROP account cannot be distributed until employment is formally terminated. Benefits provided: MPORS provides retirement, disability, and death benefits to plan members and their beneficiaries. Benefits are based on eligibility, years of service, and compensation. Member rights are vested after five years of service. Service retirement and monthly benefit formula: • 20 years of membership service, regardless of age. • Age 50 with 5 years of membership service (Early Retirement). • 2.5% of FAC times years of service credit. 574 85 City of Bozeman, Montana Notes to Financial Statements June 30, 2023 Second retirement: Re-calculated using specific criteria for members who return to covered MPORS employment prior to July 1, 2017: • Less than 20 years of membership service, upon re-employment, repay benefits and subsequent retirement is based on total MPORS service. • More than 20 years of membership service, upon re-employment, receives initial benefit and a new retirement benefit based on additional service credit and FAC after re-employment. Applies to retirement system members re-employed in a MPORS position on or after July 1, 2017: • If the member works more than 480 hours in a calendar year and accumulates less than 5 years of service credit before terminating again, the member: ο is not awarded service credit for the period of reemployment; ο is refunded the accumulated contributions associated with the period of reemployment; ο starting the first month following termination of service, receives the same retirement benefit previously paid to the member; and ο does not accrue post-retirement benefit adjustments during the term of reemployment but receives a Guaranteed Annual Benefit Adjustment (GABA) in January immediately following second retirement. • If the member works more than 480 hours in a calendar year and accumulates at least 5 years of service credit before terminating again, the member: ο is awarded service credit for the period of reemployment; ο starting the first month following termination of service, receives:  the same retirement benefit previously paid to the member, and  a second retirement benefit for the period of reemployment calculated based on the laws in effect as of the members rehire date; and ο does not accrue post-retirement benefit adjustments during the term of reemployment but receives a GABA:  on the initial retirement benefit in January immediately following second retirement, and  on the second retirement benefit starting in January after receiving that benefit for at least 12 months. • A member who returns to covered service is not eligible for a disability benefit. Member’s final average compensation (FAC) • Hired prior to July 1, 1977 - average monthly compensation of final year of service; • Hired on or after July 1, 1977 - final average compensation (FAC) for last consecutive 36 months. Compensation Cap • Hired on or after July 1, 2013: 110% annual cap on compensation considered as a part of a member’s FAC. Guaranteed Annual Benefit Adjustment (GABA) • Hired on or after July 1, 1997, or those electing GABA, and has been retired for at least 12 months, a GABA will be made each year in January equal to 3%. Minimum benefit adjustment (non‐GABA) • The minimum benefit provided may not be less than 50% of the compensation paid to a newly confirmed police officer of the employer that last employed the member as a police officer in the current fiscal year. 575 86 City of Bozeman, Montana Notes to Financial Statements June 30, 2023 Contributions: The State Legislature has the authority to establish and amend contribution rates to the plan. Member and employer contribution rates are specified by Montana Statute and are a percentage of the member’s compensation. Contributions are deducted from each member’s salary and remitted by participating employers. Special Funding: MCA 19-9-702 requires the State of Montana to contribute a percentage of total compensation directly to the Plan annually after the end of each fiscal year. Member, Employer and State contribution rates are shown in the table below. MemberHired before Hired after Hired after Hired after Fiscal Year 7/1/1975 6/30/1975 6/30/1979 6/30/1997 GABA Employer State 2000-2023 5.800%7.000%8.500%9.000%14.410% 29.370% 1998-1999 7.800%9.000%10.500% 11.000% 14.410% 29.370%1997 7.800%9.000%10.500%N/A 14.360% 29.370% Pension Liabilities, Pension Expense, and Deferred Outflows of Resources and Deferred Inflows of Resources Related to Pensions GASB Statement 68 allows a measurement date of up to 12 months before the employer’s fiscal year-end. The basis for the Total Pension Liability (TPL) as of June 30, 2022, is on an actuarial valuation performed by the Plan’s actuary as of June 30, 2022. The Total Pension Liability (TPL) minus the Fiduciary Net Position equals the Net Pension Liability (NPL). The proportionate shares of the employer’s and the State of Montana’s NPL for June 30, 2023 and 2022 reporting dates are displayed below. The employer’s proportionate share equals the ratio of the employer’s contributions to the sum of all employer and non-employer contributions during the measurement period. Due to the existence of the special funding situation, the state is required to report a proportionate share of a local government’s collective TPL that is associated with the non-state employer. The state’s proportionate share for a particular employer equals the ratio of the contributions for the particular employer to the total state contributions paid. The employer recorded a liability of $7,120,779 and the employer’s proportionate share was 3.0145 percent. Change in June 30, 2023 June 30, 2022 June 30, 2023 June 30, 2022 Percent of Reporting Date Reporting Date Reporting Date Reporting Date Collective TPL City Proportionate Share 7,120,779$ 5,327,439$ 3.0145% 2.9306% 0.0839% State of Montana ProportionateShare associated with the City 14,472,724$ 10,828,332$ 6.1270% 5.9566% 0.1704% Total 21,593,503$ 16,155,771$ 9.1415% 8.8872% 0.2543% Net Pension Liability as of Percent of Collective NPL as of Changes in actuarial assumptions and methods: The following changes in assumptions or other inputs were made that affected the measurement of the TPL. • The discount rate was increased from 7.06% to 7.30%. • The investment rate of return was increased from 7.06% to 7.30%. • All mortality assumptions were updated to the PUB2010 tables for public safety employees. • Rates of withdrawal, retirement, disability retirement, and merit increases were updated. 576 87 City of Bozeman, Montana Notes to Financial Statements June 30, 2023 • Payroll growth assumption was lowered from 3.50% to 3.25%. • The inflation rate was increased from 2.40% to 2.75%. Changes in benefit terms: There have been no changes in benefit terms since the previous measurement date. Changes in proportionate share: There were no changes to the Plan between the measurement date of the collective NPL and the employer’s reporting date that are expected to have a significant effect on the employer’s proportionate share of the collective NPL. Pension Expense: At June 30, 2023, the reporting date, the employer recognized its proportionate share of the Plan’s pension expense of $1,261,458. The employer also recognized grant revenue of $2,481,326 for the support provided by the State of Montana for its proportionate share of the pension expense associated with the employer. Recognition of Deferred Inflows and Outflows: At June 30, 2023, the reporting date, the employer reported its proportionate share of the Plan’s deferred outflows of resources and deferred inflows of resources from the following sources: Deferred Outflows Deferred Inflows of Resources of Resources Expected vs actual experience 31,670$ 37,308$ Project investment earnings vs. actual investment earnings 259,365 - Changes in assumptions 628,407 136,678 Changes in proportion and differences between employer contributions and proportionate share of contributions 123,359 - City contributions subsequent to the measurement date 883,471 - 1,926,272$ 173,986$ The $883,471 reported as deferred outflows of resources related to pensions resulting from City contributions subsequent to the measurement date will be recognized as a reduction of the net pension liability in the year ended June 30, 2024. Other amounts reported as deferred outflows of resources and deferred inflows of resources related to pensions will be recognized in pension expense as follows: For the Reporting Recognition of Deferred Outflows and Deferred Inflows in Year Ended June 30, Future Years as an Increase (Decrease) to Pension Expense 2024 467,549$ 2025 158,069 2026 (142,191) 2027 385,388 577 88 City of Bozeman, Montana Notes to Financial Statements June 30, 2023 Actuarial Assumptions: The total pension liability measured as of June 30, 2022, for the June 30, 2023, reporting date, was determined on the results of an actuarial valuation date of June 30, 2022, using the following actuarial assumptions, applied to all periods included in the measurement. Among those assumptions were the following: Investment return (net of pension plan 7.3% investment expense, including inflation) General wage growth*3.5% *includes inflation at 2.75% Merit increases 1.00% to 6.40% Postretirement Benefit Increases Guaranteed Annual Benefit Adjustment (GABA) each January Members hired on or after July 1, 1997, or those electing GABA (requires 12 full months of retirement before GABA 3% will be made) Minimum Benefit Adjustment (non-GABA) Benefit for a retired member or member's survivor and The minimum benefit provided shouldmember did not elect GABA not be less than 50% of the monthlycompensation paid to a newly confirmed police officer of the employerthat last employed the member as a police officer. For active members, mortality rates were based on PUB-2010 Safety Amount Weighted Healthy Retiree Mortality projected to 2021 for males and females, projected generationally using MP-2021. For healthy retirees, morality rates were based on PUB-2010 Safety Amount Weighted Healthy Retiree Mortality table projected to 2021, with ages set forward one year for males, adjusted 105% for males and 100% for females, projected generationally using MP-2021. . For disabled retirees, the mortality rates were based on PUB-2010 Safety Amount Weighted Disabled Retiree Mortality table, projected to 2021, set forward one year for males. For contingent survivors, mortality rates were based on PUB-2010 Safety Amount Weighted Contingent Survivor Mortality projected to 2021 with ages set forward one year for males, projected generationally using MP-2021 578 89 City of Bozeman, Montana Notes to Financial Statements June 30, 2023 The actuarial assumptions and methods utilized in the June 30, 2022, valuation, were developed in the five-year experience study for the period ending 2021. Discount Rate: The discount rate used to measure the TPL was 7.30%. The projection of cash flows used to determine the discount rate assumed that contributions from participating plan members, employers, and non- employer contributing entities would be made based on the Board’s funding policy, which established the contractually required rates under the Montana Code Annotated. The state contributed 29.37% of the salaries paid by employers. Based on those assumptions, the Plan’s fiduciary net position was projected to be adequate to make all the projected future benefit payments of current plan members through the year 2134. Therefore, the long-term expected rate of return on pension plan investments was applied to all periods of projected benefit payments to determine the TPL. A municipal bond rate was not incorporated in the discount rate. Target Allocations: The long-term expected rate of return on pension plan investments is reviewed as part of regular experience studies prepared for the Plan about every five years. The long-term rate of return as of June 30, 2022 is based on analysis in the experience study report dated May 2, 2022, without consideration for the administrative expense analysis shown. Several factors are considered in evaluating the long-term rate of return assumption including long-term historical data, estimates inherent in current market data, and an analysis in which best-estimate ranges of expected future real rates of return (expected returns, net of investment expense and inflation), along with estimates of variability and correlations for each asset class. These ranges were combined to develop the longterm expected rate of return by weighting the expected future real rates of return by the target asset allocation percentage and then adding expected inflation. The assumption is intended to be a long-term assumption (30 to 50 years) and is not expected to change absent a significant change in the asset allocation, a change in the underlying inflation assumption, or a fundamental change in the market that alters expected returns in future years. The target asset allocation and best estimates of arithmetic real rates of return for each major asset class as of the most recent experience study, are summarized in the following table. Long-Term Expected Real Target Asset Rate of ReturnAsset Class Allocation Arithmetic Basis Cash 3.0%-0.33% Domestic Equity 30.0%5.90% International Equity 17.0%7.14% Private Investments 15.0%9.13% Real Assets 5.0%4.03% Real Estate 9.0%5.41%Core Fixed Income 15.0%1.14% Non-Core Fixed Income 6.0%3.02% Total 100.0% 579 90 City of Bozeman, Montana Notes to Financial Statements June 30, 2023 Sensitivity of the proportionate share of the net pension liability to changes in the discount rate: The following presents the employer’s sensitivity of the NPL to the discount rate in the table below. A small change in the discount rate can create a significant change in the liability. The NPL was calculated using the discount rate of 7.30%, as well as what the NPL would be if it were calculated using a discount rate 1.00% lower or 1.00% higher than the current rate. 1% Decrease Current Discount 1% Increase (6.30%)Rate (7.30%)(8.30%) City's proportionate share of the net pension liability 10,730,017$ 7,120,779$ 4,254,327$ Pension plan fiduciary net position: The stand-alone financial statements of the Montana Public Employees Retirement Board (PERB) Annual Comprehensive Financial Report (ACFR) and the GASB 68 Report disclose the Plan’s fiduciary net position. These reports, as well as the actuarial valuations and experience study, are available from the PERB at PO Box 200131, Helena MT 59620-0131, (406) 444-3154 or are available on the MPERA website at https://mpera.mt.gov/about/annualreports1/annualreports. Note 12 - Interfund Activity Interfund receivables/payables are used when a fund has a cash deficit, as well as for other short-term amounts owed between funds. Nonmajor Governmental InternalFundsService Funds TotalDue to:General Fund 543,293$ 900,906$ 1,444,199$ Due from: Interfund advances are used to account for long-term advances between funds. A summary of the City’s interfund advances is as follows: Advances to Advances fromother City funds other City Funds SID Debt Service -$ 641,763$ Nonmajor Governmental Funds 641,763 - 641,763$ 641,763$ 580 91 City of Bozeman, Montana Notes to Financial Statements June 30, 2023 Interfund Transfers Transfers are used to (1) move revenues from the fund that statute or budgets requires to collect them to the fund that statute or budgets require to expend them, (2) use unrestricted revenues collected in the general fund to finance various programs accounted for in other funds in accordance with budgetary authorizations, and (3) to transfer non-restricted interest income from the permanent fund to the general fund. The following interfund transfers occurred during the year ended June 30, 2023 Transfer InCapitalNonmajorGeneralProjectsGovernmental Water Fund Fund Funds FundTransfer outGeneral Fund -$ 4,963,542$ 1,349,081$ -$ Street Maintenance Fund - - 206,363 - American Rescue Plan 3,308,013 - 1,901,300 1,295,912 SID Debt Service 2,078,222 - 924,487 - Capital projects - - 771,342 - Nonmajor Governmental Funds 5,468,642 1,141,038 959,642 55,475 Water Fund - 278,855 - - Wastewater Fund - 96,454 - - Nonmajor Enterprise Funds - 40,973 - - Total 10,854,877$ 6,520,862$ 6,112,215$ 1,351,387$ Transfer in NonmajorWastewaterSolid Waste EnterpriseFundFundFunds Total Transfer outGeneral Fund -$ 295,000$ 190,784$ 6,798,407$ Street Maintenance Fund - - - 206,363 American Rescue Plan 246,769 - - 6,751,994 SID Debt Service - - - 3,002,709 Capital projects - - - 771,342 Nonmajor Governmental Funds - - - 7,624,797 Water Fund - - - 278,855 Wastewater Fund - - - 96,454 Nonmajor Enterprise Funds - - - 40,973 Total 246,769$ 295,000$ 190,784$ 25,571,894$ General Fund transfers in from the American Rescue Plan Act fund covered general government services expenses as allowable under the revenue recovery federal grant terms. General Fund transfers in from nonmajor governmental funds were for health insurance expenses. Excess money in the SID Debt Service Fund was transferred in the General Fund as allowed under Montana Code. 581 92 City of Bozeman, Montana Notes to Financial Statements June 30, 2023 Capital Project Fund transfers in from the General Fund, nonmajor governmental funds, Water Fund, and Wastewater Fund were primarily to cover overages in project costs. Nonmajor governmental funds transfers in from the General Fund covered payroll costs that exceed available grant funding and to finance a portion of community housing projects. Nonmajor governmental funds transfers in from the American Rescue Plan Act fund covered general government services expenses as allowable under the revenue recovery federal grant terms. Nonmajor governmental funds transfers in from SID Debt Service Fund were entered to close out paid special assessment districts. Nonmajor governmental funds transfers in from Capital Projects funds returned available cash upon project completion. Nonmajor governmental funds transfers in from other nonmajor governmental funds included funding for tax increment financing district debt payments and health insurance expenses. Water Fund and Wastewater Fund transfers in from the American Rescue Plan Act fund covered capital expenses for several infrastructure projects in accordance with federal grant terms. Solid Waste Fund and Nonmajor Enterprise Funds transfers in from the General Fund covers landfill monitoring costs and the landfill debt payments. 582 93 City of Bozeman, Montana Notes to Financial Statements June 30, 2023 Note 13 - Net Position/Fund Balances Net Investment in Capital Assets The amounts comprising the City’s net investment in capital assets on the government-wide statement of net position are as follows: Governmental Business-Type Activities Activities Capital Assets, Net of Accumulated Depreciation/Amortization 298,922,399$ 338,222,054$ Capital Related Debt (67,285,543) (43,689,354) Capital Debt Proceeds Not Yet Expended 6,041,524 - Capital Debt Reserve Balances - 3,321,798 Retainage Payable (241,479) (163,379) Accounts Payable Related to Capital Asset Acquisition (551,896) - Net Investment in Capital Assets 236,885,005$ 297,691,119$ The amounts comprising the City’s net investment in capital assets in the enterprise funds statement of net position are as follows: NonmajorWater Fund Waste Water Fund Solid Waste Fund Enterprise Funds Capital Assets, Net of Accumulated Depreciation/Amortization 163,167,451$ 157,008,229$ 2,410,427$ 15,635,947$ Capital Related Debt (16,185,614) (26,095,799) (140,034) (1,267,907) Capital Debt Reserve Balances 898,599 2,364,911 - 58,288 Retainage Payable (123,883) (34,201) (5,295) - Net Investment in Capital Assets 147,756,553$ 133,243,140$ 2,265,098$ 14,426,328$ 583 94 City of Bozeman, Montana Notes to Financial Statements June 30, 2023 Fund Balances The City classified fund balances within the governmental funds are as follows at June 30, 2023: Street OtherMaintenanceAmericanSIDGovernmentalGeneral Fund District Rescue Plan Debt Service Capital Projects Funds Total Fund BalancesNonspendableCemetary perpetual care -$ -$ -$ -$ -$ 1,804,399$ 1,804,399$ Prepaid items 37,167 - - - - - 37,167 Total nonspendable 37,167 - - - - 1,804,399 1,841,566 RestrictedGeneral governmentPlanning - - - - - 1,368,543 1,368,543 Health Insurance - - - - - 1,341,543 1,341,543 Other 54,789 560,265 615,054 Public safetyBuilding inspection - - - - - 1,021,673 1,021,673 Fire impact - - - - - 4,842,733 4,842,733 Victim witness - - - - - 345,883 345,883 Other 14,311,233 14,311,233 Public serviceGas tax - - - - - 241,522 241,522 Lighting districts - - - - - 504,862 504,862 Other - 1,845,732 4,351,213 6,196,945 Public welfareTax increment districts 4,553,485 4,553,485 Economic developmentloans - - - - - 987,246 987,246 Tree maintenance district - - - - - 617,190 617,190 Other - - - - - 11,166,299 11,166,299 Capital projects - - - - 10,467,723 - 10,467,723 Debt serviceSID Sinking - - - 1,518,340 - - 1,518,340 SID Revolving Fund - - - - - 697,208 697,208 Total restricted - 1,845,732 54,789 1,518,340 10,467,723 46,910,898 60,797,482 CommittedPublic welfare - - - - - 603,360 603,360 Capital projects 6,087,489 - - - - - 6,087,489 Total committed 6,087,489 - - - - 603,360 6,690,849 AssignedPublic welfare - - - - - 2,927,964 2,927,964 Unassigned 8,953,349 - - - - (302,973) 8,650,376 Total Fund Balances 15,078,005$ 1,845,732$ 54,789$ 1,518,340$ 10,467,723$ 51,943,648$ 80,908,237$ Note 14 - Deferred Compensation Plan The City offers its employees a defined contribution, deferred compensation plan created in accordance with Internal Revenue Code Section 457. The plan, available to all City employees, permits them to defer a portion of their salary until future years. The deferred compensation is not available to employees until termination, retirement, death, or unforeseeable emergency. The City does not contribute to the plan, and it does not report any balances related to the deferred compensation plan, as these amounts represent neither assets nor liabilities to the City, and the plan is administered by an independent third party, ICMA Retirement Corporation. 584 95 City of Bozeman, Montana Notes to Financial Statements June 30, 2023 Note 15 - Impact Fees On January 22, 1996, the City Commission adopted fire, water, waste water and street impact fees in Ordinance number 1414. The impact fees were first effective on March 23, 1996. Impact fees were set at a percentage of the cost of the impact, to be phased out over 5 years. Beginning on March 30, 2013, all impact fees are charged at 100% of the impact. An applicant may obtain an Impact Fee Credit by dedication of non-site-related land or construction of non-site- related improvements. Credits must be made before the beginning of improvement construction, must comply with the City’s Capital Improvements Program, and must be approved by the City Commission. Credits may be used only for like-type impact fees. The full provisions for impact fee credits are contained in Chapter 3.24 of the Bozeman Municipal Code. For proprietary type funds, the City records a liability for the impact fee credit and capitalizes the underlying asset. For governmental-type funds, the credits are only disclosed in the footnotes. For government-wide financial reporting, the outstanding credits are reported as unearned revenue. The Water Impact Fee Fund, Street Impact Fee Fund, and Wastewater Impact Fee Fund have recorded impact fee credits amounting to $0, $33,232, and $114,576, respectively, for the fiscal year ending June 30, 2023. The Fire Impact Fee Fund does not have any outstanding credits. The following impact fee revenues were collected and expensed/expended during fiscal year 2023: Expenses,Beginning Expenditures, EndingBalancesImpact Fees Other Income and Transfers Balances Fire 4,287,167$ 522,006$ 63,839$ (30,279)$ 4,842,733$ Water 15,281,920 2,572,101 2,791,567 (2,666,156) 17,979,432 Waste Water 9,793,026 1,556,078 120,908 - 11,470,012 Streets 13,218,872 5,205,583 222,127 (4,735,417) 13,911,165 Totals 42,580,985$ 9,855,768$ 3,198,441$ (7,431,852)$ 48,203,342$ Note 16 - Joint Venture Agreements Joint ventures are legal entities or other organizations that result in a contractual arrangement and that are owned, operated, or governed by two or more participants. Each participant retains both an ongoing financial interest and an ongoing financial responsibility. As of June 30, 2023, the City has entered into joint venture contractual arrangements, as follows: 911 Communication Center The City and Gallatin County, Montana (the County) have entered into an inter-local agreement for the purposes of establishment of the operation and financing of a 911 communication services division (the Division) for dispatch and records services, to define the relationship of the Administrative Board with the City and County, and to establish the line of authority for personnel furnishing the communication services to the City and County and others who may contract for the services. 585 96 City of Bozeman, Montana Notes to Financial Statements June 30, 2023 City-County Drug Forfeitures The City and County have entered into an inter-local agreement for the purposes of establishment of a joint drug forfeiture account funded from drug related forfeitures, seizures, and prosecutions of City and County law enforcement cases and to establish an equitable means of distributing those funds to continue drug interdiction activities. The goal of the agreement is to make the City and County Drug Enforcement operations less reliant on the general and public safety fund monies of the City and County. The original term of the agreement was for a period of one year, beginning September 20, 2004 and automatically renews for a period of one year until terminated by either party with written notice of intent to terminate. Financial information regarding the joint drug forfeiture account can be obtained by contacting the City of Bozeman Department of Finance, 411 East Main Street, Bozeman, MT 59715. The County and City have entered into various other joint venture contractual arrangements, memorandums of understanding and inter-local agreements to support the following programs and/or operations: Victim Witness, Hazardous Materials, Solid Waste (Disposal and Convenient Site), Fire Warden/Chief, Evidence Technician, Library Services, Board of Health, and rental of the Law and Justice Center. The financial interests are not material. Montana Municipal Interlocal Authority The City and Montana Municipal Interlocal Authority (MMIA) have entered into a 20-year agreement in December 2012 to share up to $1 million in profits from the sale of city-owned property known as the Mandeville Farm. The agreement came about as part of a settlement on legal claims from the City of Bozeman vs. MMIA litigation. A “profit” shall occur only when the City has recovered its total investment in the property, which includes the original purchase price together with all “costs of development” as defined in the settlement agreement. Note 17 - Risk Management The City faces a considerable number of risks of loss, including a) damage to and loss of property and contents, b) employee torts, c) professional liability (i.e., errors and omissions), d) environmental damage, e) workers' compensation (i.e., employee injuries), and f) medical insurance cost of employees. A variety of methods are used to provide insurance for these risks. Commercial policies, transferring all risks of loss except for small deductible amounts, are purchased for property and content damage and professional liabilities. The City participates in two state-wide public risk pools operated by the Montana Municipal Interlocal Authority (MMIA), for workers' compensation and for tort liability. Employee medical insurance is provided through a cost-sharing multiple- employer defined benefit plan administered by MMIA. The plan offers health, dental and vision benefits and flexible spending and health savings accounts. Given the lack of coverage available, the City has no coverage for potential losses from environmental damages. Commercial Policies Coverage limits and the deductibles on the commercial policies have stayed relatively constant for the last several years. The premiums for the policies are allocated between the City's Enterprise Funds and the General Fund. Premiums are subsidized through a special purpose property tax levy, based on total appropriations. Settled claims resulting from these risks did not exceed commercial insurance coverage during the three years ended June 30, 2023, 2022, and 2021. 586 97 City of Bozeman, Montana Notes to Financial Statements June 30, 2023 Public Entity Risk Pools In 1986, the City joined together with other Montana cities to form the Montana Municipal Interlocal Authority, which established a workers' compensation plan and a tort liability plan. Both public entity risk pools currently operate as common risk management and insurance programs for the member governments. The liability limits for damages in tort action are $750,000 per claim and $1.5 million per occurrence, and $12.5 million per occurrence for any claim that is not subject to the limitations on governmental liability, as described in Montana Code Annotated Section 2-9-108 (the Statute) or any successor statute, either as matter of law, by operation of the Statute, or by a judicial determination that the Statute is inapplicable or is otherwise invalid, with $11,250 deductible per occurrence. State tort law limits the City's liability to $1.5 million. The City pays premiums for its employee injury insurance coverage, which is allocated to the employer funds based on total salaries and wages. The agreements for formation of the pools provide that they will be self-sustaining through member premiums. The tort liability plan and workers' compensation program issued debt of $4.41 million and $6.155 million, respectively, to immediately finance the necessary insurance reserves. All members signed a contingent note for a pro rata share of this liability in case operating revenues were insufficient to cover the debt service; the debt was retired in 2011. The City also owns a policy with MMIA for loss or damage to property. This is an all-risk policy, essentially all property owned by the City being insured for 100% of replacement cost, subject to a $5,000 deductible per occurrence. MMIA reinsures their property insurance with a national municipal pool, Public Entities’ Property Insurance. Note 18 - Litigation The City generally follows the practice of recording liabilities resulting from claims and legal actions only when they become fixed or determinable in amount. In the opinion of City Counsel and management, such claims against the City not covered by insurance, would not materially affect the financial condition of the City at June 30, 2023. Note 19 - Contingencies Various claims and lawsuits involving the City can be pending at any given time. These claims are either covered by insurance or are the types which are normal in City operations and do not present any material risk of financial disruption. City management believes that the total amount of liability, if any, which may arise from such claims and lawsuits beyond that which is covered by insurance would not have a material effect on the City's financial condition or its ability to carry out its activities. 587 98 City of Bozeman, Montana Notes to Financial Statements June 30, 2023 Note 20 - Municipal Landfill Closure and Post-Closure Care Costs The City has a municipal solid waste landfill. State and Federal laws and regulations require the City to place a final cover on its landfill site when it stops accepting waste and to perform certain maintenance and monitoring functions at the site for 30 years after final closure. The City stopped accepting waste effective June 30, 2008. The final capping of the cells is still pending. The City has accrued a liability for $2,359,259, which is its estimate of future landfill closure and post-closure care costs as of June 30, 2023 This amount is based on a Corrective Measures Assessment completed in September 2014 by a third-party engineering firm, from which a remediation plan has been adopted by the City and has been approved by the Montana Department of Environmental Quality. The cost of post closure care is an estimate and is subject to changes resulting from inflation, deflation, technology, or changes in applicable laws or regulations. The Solid Waste Fund accounts for the City’s solid waste collection, recycling, and disposal utility operation – including assets, liabilities, and post-closure costs associated with the closed Story Mill landfill. Segment information for the landfill is as follows: Condensed Statement of Net Position Restricted cash and cash equivalents 240,391$ Capital assets, net of depreciation 752,832 Total assets 993,223 Current liabilities 314,898 Closure and post-closure care cost 2,359,259 Total liabilities 2,674,157 Restricted for debt service (1,680,934)$ 588 99 City of Bozeman, Montana Notes to Financial Statements June 30, 2023 Condensed Statement of Revenues, Expenses and Changes in Net Position Operating revenues and expenses: Operating revenues -$ Operating expenses Depreciation 6,142 Change in post closure cost estimate 1,403,611 Other operating 269,991 Total operating expenses 1,679,744 Operating profit (1,679,744) Non-operating revenues (expenses): Interest income 7,850 Transfers 295,000 Total non-operating revenues 302,850 Change in net position (1,376,894) Net position, beginning of year (304,040) Net position, end of year (1,680,934)$ Note 21 - Pollution Remediation Obligations Jewel v. City of Bozeman / State of Montana v. City of Bozeman This action was filed in the United States District Court for the District of Montana. The multi-count complaint reduced itself to a cost recovery action under the Federal Superfund (CERCLA) and State Superfund (CECRA). On July 8, 1999, the City, Jewel Food Stores, Inc. and the other parties reached a final settlement agreement in this action. The settlement, in part, required Jewel Food Stores, Inc. to pay the City of Bozeman $1,200,000, the City and Jewel to extend alternative water supply to businesses and residents in the North 19th Avenue area of the City; and Jewel and the City to share specified remediation costs on an equal basis (50% each) up to a cumulative amount of $4,000,000, and for eligible costs in excess of that amount, to be shared 70% by Jewel and 30% by the City. The City is reimbursed by insurers for 23% of the City’s expenditures for these purposes. 589 100 City of Bozeman, Montana Notes to Financial Statements June 30, 2023 The Montana Department of Environmental Quality (MDEQ) issued the Record of Decision (ROD) for the Bozeman Solvent Site (BSS) in August 2011. The Administrative Order of Consent (AOC) was finalized in January 2012. The ROD and AOC specifically delineate the remediation to be completed for the BSS. The AOC serves as the legal mechanism for the implementation of the selected remedies identified in the ROD. Though remediation is currently underway and may be completed relatively quickly, monitoring of the site will continue for a period of up to 30 years. Tasman Geosciences, Inc. serves as the contractor for the potentially liable parties (the City of Bozeman and CVS Pharmacy, Inc.). Based on the selected remedies identified in the ROD, Tasman has completed a long-term cost projection for the project in February 2016. The long-term cost projection was reviewed in September 2017, and, at that time, it was determined it was still an accurate projection. This cost projection includes all remediation and monitoring cost, as well as the MDEQ cost recovery associated with the BSS. The long-term cost projection for the City is $2,089,997 in remediation costs. Reduced by its insurer’s reimbursement, the amount is $536,669. This liability is recorded in the Wastewater Fund, is an estimate, and is subject to changes resulting from inflation, deflation, technology, or changes in applicable laws or regulations. CMC Asbestos Bozeman CECRA Facility In 2001, the City purchased property located within the CMC Asbestos Bozeman Facility (the “Facility”), a former asbestos ore storage and processing, recycling/salvage yard. In 2002, contractors for the City, under the Montana Voluntary Cleanup and Redevelopment Act (VCRA), submitted a Voluntary Cleanup Plan (VCP), which was approved by the Department of Environmental Quality (DEQ). Remediation work on City-owned property was completed in October 2003. On December 21, 2006, the City agreed to complete remedial actions at the remainder of the Facility, which included adjacent, private properties. The City submitted an Addendum to its original VCP, and cleanup work under the approved Addendum was completed in June 2009. On October 20, 2010, the City received notice from the DEQ stating that no further action is required at the facility and that the DEQ proposes removing the Facility from the CECRA priority list. Pursuant to an August 2007 Stipulated Agreement between the City and all other involved parties, additional cleanup after issuance of the DEQ’s closure letter may be required by DEQ based upon property use changes, modification of structures, or other factors. The City has an ongoing claim against the State orphan share for the orphan share funds’ proportional share of these post-closure clean-up costs. In addition, all other parties are still liable for their proportional share of the clean-up. The result is that should additional work be required at the Facility, the City will only be liable for 1% of the total post-closure clean-up costs. Note 22 - Commitments The City entered into a contract to repair and remodel the Bozeman Swim Center. The contract commitment for the project is $1,969,236. For the year ended June 30, 2023, the City had incurred $551,971 towards the project, which is reported as construction in progress in the Statement of Net Position. The City entered into various contracts for road and streetscape projects. The contract commitments for the projects are $19,150,165. For the year ended June 30, 2023, the City had incurred $10,215,705 towards the projects, which are reported as construction in progress in the Statement of Net Position. 590 101 City of Bozeman, Montana Notes to Financial Statements June 30, 2023 The City entered into a contract to construct the Library Renovation project. The contract commitment for the project is $3,797,555. For the year ended June 30, 2023, the City had incurred $2,819,364 towards the project, which is reported as construction in progress in the Statement of Net Position. The City entered into a contract to construct the Fire Station #2 project. The contract commitment for the project is $11,574,604. For the year ended June 30, 2023, the City had incurred $1,042,896.01 towards the project, which is reported as construction in progress in the Statement of Net Position. The City entered into a contract for construction services for the Sourdough Water Transmission Main, Phase 2 project. The contract commitment for the project is $4,105,303. For the year ended June 30, 2023, the City had incurred $4,047,285 towards the project, which is reported as construction in progress in the Statement of Net Position. The City entered into a contract for drilling services for the groundwater investigation project. The contract commitment for the project is $550,850. For the year ended June 30, 2023, the City had incurred $145,464 towards the project, which is reported as construction in progress in the Statement of Net Position. The City entered into a contract for construction services for the Solid Waste addition project. The contract commitment for the project is $773,800. For the year ended June 30, 2023, the City had incurred $105,900 towards the project, which is reported as construction in progress in the Statement of Net Position. The City entered into a contract for construction services for the Downtown Sewer Main project. The contract commitment for the project is $617,900. For the year ended June 30, 2023, the City had incurred $587,006 towards the project, which is reported as construction in progress in the Statement of Net Position. 591 Required Supplementary Information June 30, 2023 City of Bozeman, Montana 592 102 City of Bozeman, Montana Schedule of Changes in Total OPEB Liability and Related Ratios June 30, 2023 Schedule of Changes in Total OPEB Liability and Related Ratios Last 10 Fiscal Years* 2023 2022 2021 2020 2019 2018 Service cost 386,864$ 348,856$ 218,391$ 224,433$ 180,183$ 256,948$ Interest cost 116,219 101,891 105,950 105,809 88,126 81,562 Assumption changes (862,570) 428,413 1,270,632 86,882 225,374 (653,711) Differences between expected and actual experience (110,114) - (8,615) - (502,125) 431,737 Benefit payments (146,957) (147,232) (119,793) (116,330) (118,184) (431,737) Net change in total OPEB liability (616,558) 731,928 1,466,565 300,794 (126,626) (315,201) Total OPEB liability, beginning of year 5,067,116 4,335,188 2,868,623 2,567,829 2,694,455 3,009,656 Total OPEB liability, end of year 4,450,558$ 5,067,116$ 4,335,188$ 2,868,623$ 2,567,829$ 2,694,455$ Covered payroll 29,433,945$ 27,432,420$ 29,119,539$ 24,490,157$ 23,503,572$ 45,345,305$ City's total OPEB liability as a percentage ofcovered payroll 15.12%18.47%14.89%11.71%10.93%5.94% *GASB Statement No. 75 requires ten years of information to be presented in this table. However, until a full 10-year trend is compiled, the City will present information for those years for which information is available. 593 103 City of Bozeman, Montana Notes to Schedule of Changes in Total OPEB Liability and Related Ratios June 30, 2023 Notes to the Schedule of Changes in Total OPEB Liability and Related Ratios Assets are not accumulated in a trust that meets the criteria in GASB Statement No. 75, paragraph 4 to pay related benefits. Assumption Changes Changes of assumptions reflect the effects of changes in the discount rate used each period. The following are the discount rates used for each period presented: 6/30/2023 3.69% 6/30/2022 2.16% 6/30/2021 2.21% 6/30/2020 3.50% 6/30/2019 3.87% 6/30/2018 3.13% 594 104 City of Bozeman, Montana Schedule of Employer’s Share of Net Pension Liability and Schedule of Employer’s Contributions Montana Public Employees Retirement System Pension Plan June 30, 2023 Schedule of Employer’s Share of Net Pension Liability Last 10 Fiscal Years* Employer's Employer's State's Total ProportionateEmployer's Proportionate Proportionate Proportionate Share of the Total Plan FiduciaryProportionShare (Amount) Share (Amount) Share (Amount)Pension Liability Net Position as(Percentage)of the Net of the Net of the Net Employer's as a Percentage a Percentage ofMeasurementof the Net Pension Liability Pension Liability Pension Liability Covered-of its Covered-the Total PensionDatePension Liability (a)(b)(a+b)Payroll (c) Payroll (a/c)Liability 6/30/2022 0.905336% 21,527,855$ 6,454,277$ 27,982,132$ 15,910,277$ 135.31%73.66%6/30/2021 0.841036% 15,249,847$ 4,507,680$ 19,757,527$ 14,855,905$ 102.65%79.91%6/30/2020 0.852225% 22,483,506$ 7,096,303$ 29,579,809$ 14,298,930$ 157.24%68.90%6/30/2019 0.861979% 18,018,037$ 5,867,557$ 23,885,594$ 14,222,530$ 126.69%73.85%6/30/2018 0.833641% 17,399,265$ 5,822,595$ 23,221,860$ 13,764,340$ 126.41%73.47%6/30/2017 1.041883% 20,291,988$ 266,967$ 20,558,955$ 12,924,792$ 157.00%73.75%6/30/2016 1.021762% 17,404,143$ 212,659$ 17,616,802$ 12,238,920$ 142.20%74.71%6/30/2015 0.958835% 13,403,285$ 164,637$ 13,567,922$ 11,189,797$ 119.78%78.40%6/30/2014 0.915049% 11,401,613$ 139,231$ 11,540,844$ 10,479,122$ 108.80%79.90% *GASB Statement No. 68 requires ten years of information to be presented in this table. However, until a full 10- year trend in compiled, the City will present information for those years for which information is available. Schedule of Employer’s Contributions Last 10 Fiscal Years* Contributions inRelation to the Contributions asStatutorilyPlan Choice Rate Statutorily Contribution a Percentage of Reporting Required Required Required Deficiency Covered- Covered- Date Contribution (a) Contribution (b) Contribution (c)(Excess) (a+b-c)Payroll (d) Payroll (c/d) 6/30/2023 1,889,101$ -$ 1,889,101$ -$ 21,068,370$ 8.97%6/30/2022 1,414,999$ -$ 1,414,999$ -$ 15,910,277$ 8.89%6/30/2021 1,316,517$ -$ 1,316,517$ -$ 14,855,905$ 8.86%6/30/2020 1,252,776$ -$ 1,252,776$ -$ 14,298,930$ 8.76%6/30/2019 1,223,234$ -$ 1,223,234$ -$ 14,222,530$ 8.60%6/30/2018 1,161,210$ -$ 1,161,210$ -$ 13,764,340$ 8.44%6/30/2017 1,081,810$ -$ 1,081,810$ -$ 12,924,792$ 8.37%6/30/2016 1,022,996$ 28,892$ 1,051,888$ -$ 12,238,920$ 8.59%6/30/2015 922,084$ 52,151$ 974,235$ -$ 11,189,797$ 8.71% *GASB Statement No. 68 requires ten years of information to be presented in this table. However, until a full 10- year trend in compiled, the City will present information for those years for which information is available. 595 105 City of Bozeman, Montana Schedule of Employer’s Share of Net Pension Liability and Schedule of Employer’s Contributions Montana Firefighters’ Unified Retirement System Pension Plan June 30, 2023 Schedule of Employer’s Share of Net Pension Liability Last 10 Fiscal Years* Employer's Employer's State's Total ProportionateEmployer's Proportionate Proportionate Proportionate Share of the Net Plan FiduciaryProportionShare (Amount) Share (Amount) Share (Amount)Pension Liability Net Position as(Percentage)of the Net of the Net of the Net Employer's as a Percentage a Percentage ofMeasurementof the Net Pension Liability Pension Liability Pension Liability Covered-of its Covered-the Total PensionDatePension Liability (a)(b)(a+b)Payroll (c) Payroll (a/c)Liability 6/30/2022 2.2000%3,494,798$ 7,906,822$ 11,401,620$ 4,263,039$ 81.98%78.76%6/30/2021 2.2620%1,935,764$ 4,393,566$ 6,329,330$ 4,162,698$ 46.50%87.72%6/30/2020 2.3217%3,632,985$ 8,189,975$ 11,822,960$ 4,052,989$ 89.64%75.34%6/30/2019 2.1955%2,518,508$ 6,091,025$ 8,609,533$ 3,807,151$ 66.15%80.08%6/30/2018 2.3663%2,725,281$ 6,231,502$ 8,956,783$ 3,726,746$ 73.13%79.03%6/30/2017 2.3492%2,655,380$ 6,030,078$ 8,685,458$ 3,511,860$ 75.61%77.77%6/30/2016 2.3705%2,707,390$ 6,134,093$ 8,841,483$ 3,338,041$ 81.11%75.48%6/30/2015 2.4336%2,489,054$ 5,543,784$ 8,032,838$ 3,270,451$ 76.11%76.90%6/30/2014 2.4192%2,361,551$ 5,327,544$ 7,689,095$ 3,142,481$ 75.15%76.71% *GASB Statement No. 68 requires ten years of information to be presented in this table. However, until a full 10- year trend in compiled, the City will present information for those years for which information is available. Schedule of Employer’s Contributions Last 10 Fiscal Years* Contributions inRelation to the Contributions asStatutorily Statutorily Contribution a Percentage ofReporting Required Required Deficiency Covered- Covered- Date Contribution (a) Contribution (b)(Excess) (a-b)Payroll (c) Payroll (b/c) 6/30/2023 683,412$ 683,412$ -$ 4,759,139$ 14.36% 6/30/2022 616,605$ 616,605$ -$ 4,263,039$ 14.46%6/30/2021 595,510$ 595,510$ -$ 4,162,698$ 14.31%6/30/2020 596,564$ 596,564$ -$ 4,052,989$ 14.72%6/30/2019 524,670$ 524,670$ -$ 3,807,151$ 13.78%6/30/2018 548,518$ 548,518$ -$ 3,726,746$ 14.72%6/30/2017 504,303$ 504,303$ -$ 3,511,860$ 14.36%6/30/2016 477,250$ 477,250$ -$ 3,338,041$ 14.30%6/30/2015 478,776$ 478,776$ -$ 3,270,451$ 14.64% *GASB Statement No. 68 requires ten years of information to be presented in this table. However, until a full 10- year trend in compiled, the City will present information for those years for which information is available. 596 106 City of Bozeman, Montana Schedule of Employer’s Share of Net Pension Liability and Schedule of Employer’s Contributions Montana Municipal Police Officers’ Retirement System Pension Plan June 30, 2023 Schedule of Employer’s Share of Net Pension Liability Last 10 Fiscal Years* Employer's Employer's State's Total ProportionateEmployer's Proportionate Proportionate Proportionate Share of the Net Plan FiduciaryProportionShare (Amount) Share (Amount) Share (Amount)Pension Liability Net Position as(Percentage)of the Net of the Net of the Net Employer's as a Percentage a Percentage ofMeasurementof the Net Pension Liability Pension Liability Pension Liability Covered-of its Covered-the Total PensionDatePension Liability (a)(b)(a+b)Payroll (c) Payroll (a/c)Liability 6/30/2022 3.0145%7,120,779$ 14,472,724$ 21,593,503$ 5,623,538$ 126.62%69.67%6/30/2021 2.9306%5,327,439$ 10,828,332$ 16,155,771$ 5,303,838$ 100.44%75.76%6/30/2020 2.9892%7,311,248$ 14,746,046$ 22,057,294$ 5,120,608$ 142.78%64.84%6/30/2019 2.8699%5,712,381$ 11,632,402$ 17,344,783$ 4,729,931$ 120.77%68.84%6/30/2018 2.9325%5,022,189$ 10,266,345$ 15,288,534$ 4,628,804$ 108.50%70.95%6/30/2017 3.0402%5,408,979$ 11,024,418$ 16,433,397$ 4,555,121$ 118.75%68.34%6/30/2016 3.0842%5,552,007$ 11,020,975$ 16,572,982$ 4,353,897$ 127.52%65.62%6/30/2015 2.9746%4,920,638$ 9,969,680$ 14,890,318$ 4,116,930$ 119.52%66.90%6/30/2014 3.0209%4,746,933$ 9,589,371$ 14,336,304$ 3,142,481$ 151.06%67.01% *GASB Statement No. 68 requires ten years of information to be presented in this table. However, until a full 10- year trend in compiled, the City will present information for those years for which information is available. Schedule of Employer’s Contributions Last 10 Fiscal Years* Contributions inRelation to the Contributions asStatutorily Statutorily Contribution a Percentage ofReporting Required Required Deficiency Covered- Covered- Date Contribution (a) Contribution (b)(Excess) (a-b)Payroll (c) Payroll (b/c) 6/30/2023 883,471$ 883,471$ -$ 6,130,962$ 14.41% 6/30/2022 810,351$ 810,351$ -$ 5,623,538$ 14.41%6/30/2021 763,261$ 763,261$ -$ 5,303,838$ 14.39%6/30/2020 732,880$ 732,880$ -$ 5,120,608$ 14.31%6/30/2019 684,296$ 684,296$ -$ 4,729,931$ 14.47%6/30/2018 692,318$ 692,318$ -$ 4,628,804$ 14.96%6/30/2017 655,143$ 655,143$ -$ 4,555,121$ 14.38%6/30/2016 637,789$ 637,789$ -$ 4,353,897$ 14.65%6/30/2015 596,791$ 596,791$ -$ 4,116,930$ 14.50% *GASB Statement No. 68 requires ten years of information to be presented in this table. However, until a full 10- year trend in compiled, the City will present information for those years for which information is available. 597 107 City of Bozeman, Montana Notes to the Schedules of Employer’s Share of Net Pension Liability and Schedules of Employer’s Contributions June 30, 2023 Notes to the Schedule of Employer’s Share of Net Pension Liability and Schedule of Employer’s Contributions Change of Benefit Terms The following changes to the PERS, FURS, and MPORS plan provisions were made as identified: 2017 Legislative Changes – PERS: Working Retiree Limitations Effective July 1, 2017, if a PERS retiree returns as an independent contractor to what would otherwise be PERS- covered employment, general contractor overhead costs are excluded from PERS working retiree limitations. Refunds 1) Terminating members eligible to retire may, in lieu of receiving a monthly retirement benefit, refund their accumulated contributions in a lump sum. 2) Terminating members with accumulated contributions between $200 and $1,000 who wish to rollover their refund must do so within 90 days of termination of service. 3) Trusts, estates, and charitable organizations listed as beneficiaries are entitled to receive only a lump-sum payment. Interest Credited To Member Accounts Effective July 1, 2017, the interest rate credited to member accounts increased from 0.25% to 0.77%. Lump‐Sum Payouts Effective July 1, 2017, lump-sum payouts in all systems are limited to the member’s accumulated contributions rate than the present value of the member’s benefit. Disabled PERS Defined Contribution (DC) Members PERS members hired after July 1, 2011 have a normal retirement age of 65. PERS DC members hired after July 1, 2011 who became disabled were previously only eligible for a disability benefit until age 65. Effective July 1, 2017, these individuals will be eligible for a disability benefit until they reach 70, thus ensuring the same 5-year time period available to PERS DC disabled members hired prior to July 1, 2011 who have a normal retirement age of 60 and are eligible for a disability benefit until age 65. 598 108 City of Bozeman, Montana Notes to the Schedule of Employer’s Share of Net Pension Liability and Schedule of Employer’s Contributions Montana Public Employees Retirement System Pension Plan June 30, 2023 2017 Legislative Changes – FURS: Working Retiree Limitations Applies to retirement system members who return on or after July 1, 2017 to covered employment in the system from which they retired. • Members who return for less than 480 hours in a calendar year: ο May not become an active member in the system; and ο Are subject to a $1 reduction in their retirement benefit for each $3 earned in excess of $5,000 in the calendar year. • Members who return for 480 or more hours in a calendar year: ο Must become an active member of the system; ο Will stop receiving a retirement benefit from the system; and ο Will be eligible for a second retirement benefit if they earn 5 or more years of service credit through their second employment. • Employee, employer and state contributions, if any, apply as follows: ο Employer contributions and state contributions (if any) must be paid on all working retirees; ο Employee contributions must be paid on working retirees who return to covered employment for 480 or more hours in a calendar year. Second Retirement Benefit Applies to retirement system members who return on or after July 1, 2017 to active service covered by the system from which they retired. • If the member works more than 480 hours in a calendar year and accumulates less than 5 years of service credit before terminating again, the member: ο Is not awarded service credit for the period of reemployment; ο Is refunded the accumulated contributions associated with the period of reemployment; ο Starting the first month following termination of service, receives the same retirement benefit previously paid to the member; and ο Does not accrue post-retirement benefit adjustments during the term of reemployment but receives a Guaranteed Annual Benefit Adjustment (GABA) in January immediately following second retirement. • If the member works more than 480 hours in a calendar year and accumulates at least 5 years of service credit before terminating again, the member: ο Is awarded service credit for the period of reemployment; ο Starting the first month following termination of service, receives:  The same retirement benefit previously paid to the member, and  A second retirement benefit for the period of reemployment calculated based on the laws in effect as of the member’s rehire date; and 599 109 City of Bozeman, Montana Notes to the Schedule of Employer’s Share of Net Pension Liability and Schedule of Employer’s Contributions Montana Public Employees Retirement System Pension Plan June 30, 2023 ο Does not accrue post-retirement benefit adjustments during the term of reemployment but receives a GABA:  On the initial retirement benefit in January immediately following second retirement, and  On the second retirement benefit starting in January after receiving that benefit for at least 12 months. • A member who returns to covered service is not eligible for a disability benefit Refunds Terminating members eligible to retire may, in lieu of receiving a monthly retirement benefit, refund their accumulated contributions in a lump sum. Terminating members with accumulated contributions between $200 and $1,000 who wish to rollover their refund must do so within 90 days of termination of service. Trusts, estates, and charitable organizations listed as beneficiaries are entitled to receive only a lump-sum payment. Interest Credited to Member Accounts Effective July 1, 2017, the interest rate credited to member accounts increased from 0.25% to 0.77% Lump‐Sum Payouts Effective July 1, 2017, lump-sum payouts in all systems are limited to the member’s accumulated contributions rate than the present value of the member’s benefit. 2017 Legislative Changes – MPORS: Working Retiree Limitations Applies to retirement system members who return on or after July 1, 2017 to covered employment in the system from which they retired. • Members who return for less than 480 hours in a calendar year: ο May not become an active member in the system; and ο Are subject to a $1 reduction in their retirement benefit for each $3 earned in excess of $5,000 in the calendar year. • Members who return for 480 or more hours in a calendar year: ο Must become an active member of the system; ο Will stop receiving a retirement benefit from the system; and ο Will be eligible for a second retirement benefit if they earn 5 or more years of service credit through their second employment. 600 110 City of Bozeman, Montana Notes to the Schedule of Employer’s Share of Net Pension Liability and Schedule of Employer’s Contributions Montana Public Employees Retirement System Pension Plan June 30, 2023 • Employee, employer and state contributions, if any, apply as follows: ο Employer contributions and state contributions (if any) must be paid on all working retirees; ο Employee contributions must be paid on working retirees who return to covered employment for 480 or more hours in a calendar year. Second Retirement Benefit Applies to retirement system members who return on or after July 1, 2017 to active service covered by the system from which they retired. • If the member works more than 480 hours in a calendar year and accumulates less than 5 years of service credit before terminating again, the member: ο Is not awarded service credit for the period of reemployment; ο Is refunded the accumulated contributions associated with the period of reemployment; ο Starting the first month following termination of service, receives the same retirement benefit previously paid to the member; and ο Does not accrue post-retirement benefit adjustments during the term of reemployment but receives a Guaranteed Annual Benefit Adjustment (GABA) in January immediately following second retirement. • If the member works more than 480 hours in a calendar year and accumulates at least 5 years of service credit before terminating again, the member: ο Is awarded service credit for the period of reemployment; ο Starting the first month following termination of service, receives:  The same retirement benefit previously paid to the member, and  A second retirement benefit for the period of reemployment calculated based on the laws in effect as of the member’s rehire date; and ο Does not accrue post-retirement benefit adjustments during the term of reemployment but receives a GABA:  On the initial retirement benefit in January immediately following second retirement, and  On the second retirement benefit starting in January after receiving that benefit for at least 12 months. • A member who returns to covered service is not eligible for a disability benefit. Refunds Terminating members eligible to retire may, in lieu of receiving a monthly retirement benefit, refund their accumulated contributions in a lump sum. Terminating members with accumulated contributions between $200 and $1,000 who wish to rollover their refund must do so within 90 days of termination of service. Trusts, estates, and charitable organizations listed as beneficiaries are entitled to receive only a lump-sum payment. 601 111 City of Bozeman, Montana Notes to the Schedule of Employer’s Share of Net Pension Liability and Schedule of Employer’s Contributions Montana Public Employees Retirement System Pension Plan June 30, 2023 Interest Credited to Member Accounts Effective July 1, 2017, the interest rate credited to member accounts increased from 0.25% to 0.77% Lump‐sum payouts Effective July 1, 2017, lump-sum payouts in all systems are limited to the member’s accumulated contributions rate than the present value of the member’s benefit. Method and Assumptions used in Calculations of Actuarially Determined Contributions The following actuarial assumptions and methods were used to determine contribution rates reported for fiscal year ending June 30, 2022, which were based on the results of the June 30, 2021 actuarial valuation: PERS FURS MPORS General Wage Growth*3.50%3.50%3.50%Investment Rate of Return*7.65%7.65%7.65%*Includes inflation at 2.75%2.75%2.75% Merit increase 0% to 8.47%0% to 6.30%0% to 6.60% Asset valuation method Four-year smoothed market Four-year smoothed market Four-year smoothed marketActuarial cost method Entry age Normal Entry Age Normal Entry Age NormalAmortization method Level percentage of payroll, open Level percentage of pay, open Level percentage of pay, openMortality (Healthy members)For Males & Females: RP 2000 For Males & Females: RP 2000 For Males & Females: RP 2000 Combined Employee and Annuitant Combined Employee and Annuitant Combined Employee and Annuitant Mortality Table projected to 2020 Mortality Table projected to 2020 Mortality Table projected to 2020 using Scale BB, males set back using Scale BB, males set back using Scale BB, males set back1 year 1 year 1 yearMortality (Disabled members)For Males & Females: RP 2000 For Males & Females: RP 2000 For Males & Females: RP 2000 Combined Mortality Table, with no Combined Mortality Table Combined Mortality TableprojectionsAdmin Expense as a % of Payroll 0.29%0.13%0.17% Administrative expenses are recognized by an additional amount added to the normal cost contribution rate for the System. This amount varies from year to year based on the prior year’s actual administrative expenses. The actuarial assumptions and methods utilized in the June 30, 2021 valuation, were developed in the six-year experience study for the period ending 2016. 602 112 City of Bozeman, Montana Schedule of Revenue, Expenditures, and Changes in Fund Balances – Budget to Actual – Budgetary Basis General Fund June 30, 2023 Actual Variance WithOriginal Budget Final Budget Amounts Final Budget Budgetary Fund Balance, July 1 5,444,605$ 5,444,605$ 5,444,605$ -$ Resources (inflows):Taxes 24,370,654 24,370,654 25,578,352 1,207,698 Licenses and permits 364,300 364,300 381,922 17,622 Intergovernmental 8,962,890 10,073,490 9,434,058 (639,432) Charges for services 4,225,559 6,146,228 6,307,168 160,940 Fines and forfeitures 1,074,000 1,074,000 1,009,841 (64,159) Interest on investments 80,000 80,000 171,669 91,669 Change in fair market value of investments - - (220,926) (220,926) Miscellaneous 294,626 294,626 351,367 56,741 Transfers in 4,514,716 8,644,904 10,854,877 2,209,973 Issuance of long-term debt - - 637,867 637,867 Sale of capital assets 5,000 2,768,705 2,774,759 6,054 Amounts available for appropriation 49,336,350 59,261,512 62,725,559 3,464,047 Charges to Appropriations (outflows):CurrentGeneral government 13,333,611 14,393,635 11,578,604 2,815,031 Public safety 16,803,308 19,974,420 20,849,308 (874,888) Public welfare 7,656,222 8,218,466 6,587,267 1,631,199 Other 5,118,620 2,203,427 1,683,415 520,012 Capital outlay 1,026,000 1,936,533 3,107,362 (1,170,829) Debt service - Principal 39,932 39,932 186,259 (146,327) Interest and fiscal charges 3,760 3,760 13,946 (10,186) Transfers to other funds 874,977 3,538,682 6,798,407 (3,259,725) Total charges to appropriations 44,856,430 50,308,855 50,804,568 (495,713) Budgetary fund balance, June 30 4,479,920$ 8,952,657$ 11,920,991$ 2,968,334$ 603 113 City of Bozeman, Montana Schedule of Revenue, Expenditures, and Changes in Fund Balances – Budget to Actual – Budgetary Basis Major Special Revenue Funds June 30, 2023 Street Maintenance District Special Revenue Fund American Rescue Plan Special Revenue Fund Actual Variance With Actual Variance With Original Budget Final Budget Amounts Final Budget Original Budget Final Budget Amounts Final Budget Budgetary Fund Balance, July 1 1,963,990$ 1,963,990$ 1,963,990 -$ (197,922)$ (197,922)$ (197,922) -$ Resources (inflows): Special assessments 15,000 21,100 17,716 (3,384) - - - - Licenses and permits 18,000 18,000 37,033 19,033 - - - - Intergovernmental - - 35,762 35,762 6,734,581 6,734,581 6,751,994 17,413 Charges for services 6,768,463 6,768,463 8,220,620 1,452,157 - - - - Interest on investments 10,000 11,000 41,037 30,037 - - 196,050 196,050 Change in fair market value of investments - - (19,675) (19,675) - - 56,661 56,661 Miscellaneous 25,000 25,000 433,264 408,264 - - - - Transfers in 1,825,520 1,825,520 - (1,825,520) - - - - Issuance of long-term debt - - 862,620 862,620 - - - - Sale of capital assets - - 18,712 18,712 - - - - Amounts available for appropriation 10,625,973 10,633,073 11,611,079 978,006 6,536,659 6,536,659 6,806,783 270,124 Charges to Appropriations (outflows): Current Public works 6,097,170 6,268,058 7,080,982 (812,924) - - - - Capital outlay 2,470,990 4,159,894 2,155,485 2,004,409 - - - - Debt service Principal 88,973 174,840 307,904 (133,064) - - - - Interest and fiscal charges - - 14,613 (14,613) - - - - Transfers to other funds 738,101 738,101 206,363 531,738 11,267,081 11,267,081 6,751,994 4,515,087 Total charges to appropriations 9,395,234 11,340,893 9,765,347 1,575,546 11,267,081 11,267,081 6,751,994 4,515,087 Budgetary fund balance, June 30 1,230,739$ (707,820)$ 1,845,732$ 2,553,552$ (4,730,422)$ (4,730,422)$ 54,789$ 4,785,211$ 604 114 City of Bozeman, Montana Notes to the Schedules of Revenue, Expenditures, and Changes in Fund Balances – Budget to Actual – Budgetary Basis June 30, 2023 Street Maintenance American RescueGeneral Fund District Plan Act Sources/ inflows of resourcesActual amounts (budgetary basis) "available for appropriation" from the budgetary comparison schedule 62,725,559$ 11,611,079$ 6,806,783$ Differences - budget to GAAP: The fund balance at the beginning of the year is a budgetary resource but is not a current-year revenue for financial reporting purposes.(5,444,605) (1,963,990) 197,922 Transfers from other funds are inflows of budgetary resources but are not revenues for financial reporting purposes.(10,854,877) - - The proceeds from the issuance of long-term debt or a lease are a budgetary resource but are a other financing source forfinancial reporting purposes.(637,867) (862,620) - The proceeds from the sale of assets are budgetary resourcesbut are regarded as a special item, rather than revenue, for financial reporting purposes.(2,774,759) (18,712) - Total revenues as reported on the statement of revenues, expenditures, and changes in fund balances - governmental funds 43,013,451$ 8,765,757$ 7,004,705$ Uses/ outflows of resources Actual amounts (budgetary basis) "total charges to appropriations" from the budgetary comparison schedule 50,804,568$ 9,765,347$ 6,751,994$ Differences - budget to GAAP: Transfers to other funds are outflows of budgetary resources but are not expenditures for financial reporting purposes.(6,798,407) (206,363) (6,751,994) Total expenditures as reported on the statement of revenues,expenditures, and changes in fund balances - governmental funds 44,006,161$ 9,558,984$ -$ 605 Other Supplementary Information June 30, 2023 City of Bozeman, Montana 606 115 City of Bozeman, Montana Statement of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual Major Debt Service Fund and Major Capital Projects Fund June 30, 2023 SID Debt Service Capital Projects Final Actual Variance with Final Actual Variance withBudget Amounts Final Budget Budget Amounts Final Budget RevenuesTaxes 473,008$ 158,684$ (314,324)$ -$ 2,240,188$ 2,240,188$ Special assessments - - - - 220,642 220,642 Licenses and permits - - - - 500 500 Intergovernmental - 591,564 591,564 - 59,965 59,965 Charges for services - 39,685 39,685 - - - Interest on investments 28,345 42,389 14,044 84,000 124,889 40,889 Change in fair market value of investments - (9,121) (9,121) - (77,357) (77,357) Miscellaneous - 145,227 145,227 4,144,000 - (4,144,000) Total revenues 501,353 968,428 467,075 4,228,000 2,568,827 (1,659,173) ExpendituresCurrent Public safety - 345,568 (345,568) - - - Public welfare - 62,808 (62,808) - 686,511 (686,511) Other - 152,877 (152,877) - - - Capital outlay - 392,939 (392,939) 14,088,505 12,590 14,075,915 Debt servicePrincipal 317,693 67,627 250,066 - - - Interest and fiscal charges - 58,168 (58,168) - - - Total expenditures 317,693 1,079,987 (762,294) 14,088,505 699,101 13,389,404 Excess (Deficiency) of Revenuesover (under) Expenditures 183,660 (111,559) (295,219) (9,860,505) 1,869,726 11,730,231 Other Financing Sources (Uses)Transfers in - 369,895 369,895 4,401,806 - (4,401,806) Transfers out (3,211,524) (298,872) 2,912,652 - (330,150) (330,150) Total other financing sources (uses)(3,211,524) 71,023 3,282,547 4,401,806 (330,150) (4,731,956) Net Change in Fund Balance (3,027,864)$ (40,536) 2,987,328$ (5,458,699)$ 1,539,576 6,998,275$ Fund Balance, Beginning of Year 2,351,957 3,775,619 Fund Balance, End of Year 2,311,421$ 5,315,195$ 607 116 City of Bozeman, Montana Description of Nonmajor Funds Nonmajor Governmental Funds June 30, 2023 Special Revenue Funds Departmental Special Revenues – Accounts for monies received and expended for projects relating to various City departments. TIF Downtown Improvement District – In November 1995, the City adopted an Urban Renewal Plan for the downtown area. This fund accounts for the revenue and expenditures associated with this tax increment financing district and associated business improvement district. City Planning Board – Accounts for monies received from various sources including property taxes, fees, and County revenues. Expenditures are for short-term and long-term planning of City and adjacent County zones. Section 76-1-102 MCA provides that the purpose of City planning is to encourage local governments to improve the present health, safety, convenience, and welfare of the citizens. Health-Medical Insurance – Accounts for property tax revenues received and transferred to the general fund for premiums and deductibles on group insurance coverage for City employees. Gas Tax Apportionment – Accounts for revenues from State gasoline taxes apportioned from the State of Montana Department of Highways. Tree Maintenance – Accounts for special assessment revenues levied, received, and expended for tree maintenance provided to specific property owners. Fire Impact Fees Special Revenues – Accounts for the collection and expenditures associated with the fire impact fees. Street Impact Fee – Accounts for the collection and expenditures associated with the street impact fees. Building Inspection Fund – Accounts for all activity related to enforcing the building regulation adopted by the City. It includes all the money and staff associated with executing any aspect of the code enforcement program. Pole Yard TIF – In November 2020, the City created a tax increment financing district to eliminate conditions that contribute to blight substantially impairing sound growth of the City through investments in public infrastructure and efficient delivery of public services. The fund accounts for the revenue and expenditures associated with the district. Economic Development Revolving Loan Fund – Accounts for revenues received and expended relative to loans made in accordance with the Community Development Block Grant Program, for economic development purposes. Community Housing – Accounts for money set aside by the City Commission and related expenditure for the establishment of safe, decent, and affordable housing for low and moderate-income citizens. Street Arterial & Collector District – Accounts for special assessment revenues levied, received, and expended for necessary transportation infrastructure. 608 117 City of Bozeman, Montana Description of Nonmajor Funds Nonmajor Governmental Funds June 30, 2023 TIF N 7th Corridor – In August of 2005, the City created a Renewal Plan for the North 7th Avenue business district. This fund accounts for the revenue and expenditures associated with the district. TIF N.E. Urban Renewal – In August of 2005, the City created an Urban Renewal Plan for the Northeast Urban section of Bozeman. This fund accounts for the revenue and expenditures associated with the district. TIF Mandeville/Wheat Dr. – In December 2006, the City created a tax increment financing district to encourage the attraction and retention of value-adding farming industries. This fund accounts for the revenue and expenditures associated with the district. Victim/Witness Advocate – Accounts for monies collected through the Court system to assist with Victim and Witness Advocate Program. Fire Department Equipment– Accounts for Public Safety mill levy tax revenues for fire department capital and equipment. TIF South Bozeman Technology – In December 2012, the City created a tax increment financing district to improve existing infrastructure deficiencies on property adjacent to Montana State University and the Innovation Campus. This fund accounts for the revenue and expenditures associated with the district. Parks and Trails District Fund – In May 2020, the Citizens of Bozeman approved the creation of a Parks and Trails District. This fund accounts for the special assessment and rental revenues collected, and the operating and capital expenditures required to manage and maintain citywide parks and trails. Street Lighting – Accounts for special assessment revenues levied, received, and expended for street and public highway lighting provided to specific property owners. Park Land – Accounts for monies donated for the purpose of acquiring and developing City Parks. Municipal Court Restitution – Accounts for checks that were canceled on the restitution checking account, per MCA 46-18-250. Debt Service Funds Special Improvement District (SID) Revolving – Accounts for property tax revenues received and expended for the payment of special improvement district bond principal and interest. General Obligation Bonds Debt Service Fund – Accounts for the debt service payments associated with the Library and Transportation general obligation bonds. Tax Increment Financing Bonds Debt Service Fund – Accounts for the debt service payments associated with the Tax Increment Urban Renewal Revenue Bonds issued as partial funding for the construction of a Downtown Intermodal Parking Facility. 609 118 City of Bozeman, Montana Description of Nonmajor Funds Nonmajor Governmental Funds June 30, 2023 Permanent Funds Perpetual Cemetery Care – Accounts for 15% maintenance fee received from the sale of City cemetery plots, which is to be used for perpetual care. The interest income from the trust is transferred to the general fund for use in maintaining the City’s cemetery. 610 119 City of Bozeman, Montana Combining Balance Sheet Nonmajor Governmental Funds June 30, 2023 Special Revenue Funds DowntownImprovement Health-Medical Gas TaxDepartmentalDistrictCity Planning Insurance Apportionment Assets Cash and investments 2,367,398$ 7,906,849$ 1,469,418$ 1,109,091$ 567,950$ Receivables (Net of allowance for uncollectibles) Property taxes 11,822 245,158 23,789 252,568 - Accrued interest 4,901 20,756 3,748 2,912 1,492 Accounts 1,385 - - - - Special assessments - 1,474 - - - Intergovernmental 394,738 - - - - Advances to other funds - - - - - Notes receivable - - - - - Restricted cash and investments 25,000 - - - - Total assets 2,805,244$ 8,174,237$ 1,496,955$ 1,364,571$ 569,442$ Liabilities, Deferred Inflows of Resources, and Fund Balance LiabilitiesAccounts payable 492,745$ 2,859,042$ 123,332$ -$ 319,745$ Escheat property payable - - - - - Accrued employee benefits - - 764 - - Interest payable - - 2,152 - - Apperance bonds and other liabilities - - - - 8,175 Due to other funds - - - - - Unearned revenue - - - - - Total liabilities 492,745 2,859,042 126,248 - 327,920 Deferred Inflows of ResourcesUnavailable revenue - property taxes 1,078 - 2,164 23,028 - Fund BalanceNonspendable - - - - - Restricted 560,160 5,315,195 1,368,543 1,341,543 241,522 Committed 287,279 - - - - Assigned 1,463,982 - - - - Unassigned - - - - - Total fund balance 2,311,421 5,315,195 1,368,543 1,341,543 241,522 Total liabilities, deferred inflowsof resources, and fund balances 2,805,244$ 8,174,237$ 1,496,955$ 1,364,571$ 569,442$ 611 120 City of Bozeman, Montana Combining Balance Sheet Nonmajor Governmental Funds June 30, 2023 Special Revenue Funds Tree Bulding Pole YardMaintenanceFire Impact Fee Street Impact Fee Inspection TIF District Assets Cash and investments 696,715$ -$ -$ 1,223,518$ 317,319$ Receivables (Net of allowance for uncollectibles) Property taxes - - - - 17,568 Accrued interest 1,891 12,689 40,185 2,993 - Accounts - - - - - Special assessments 13,212 - - - - Intergovernmental - - - - - Advances to other funds - - - - - Notes receivable - - - - - Restricted cash and investments - 4,830,808 15,281,573 - - Total assets 711,818$ 4,843,497$ 15,321,758$ 1,226,511$ 334,887$ Liabilities, Deferred Inflows of Resources, and Fund Balance LiabilitiesAccounts payable 85,528$ 764$ 1,295,002$ 194,931$ -$ Escheat property payable - - - - - Accrued employee benefits - - - 886 - Interest payable - - - 9,021 - Apperance bonds and other liabilities - - 115,591 - - Due to other funds - - - - - Unearned revenue 9,100 - - - - Total liabilities 94,628 764 1,410,593 204,838 - Deferred Inflows of ResourcesUnavailable revenue - property taxes - - - - - Fund BalanceNonspendable - - - - - Restricted 617,190 4,842,733 13,911,165 1,021,673 334,887 Committed - - - - - Assigned - - - - - Unassigned - - - - - Total fund balance 617,190 4,842,733 13,911,165 1,021,673 334,887 Total liabilities, deferred inflowsof resources, and fund balances 711,818$ 4,843,497$ 15,321,758$ 1,226,511$ 334,887$ 612 121 City of Bozeman, Montana Combining Balance Sheet Nonmajor Governmental Funds June 30, 2023 Special Revenue Funds Econonomic Street Arterial North NortheastDevelopmentCommunityand Collector 7th Corridor Urban RenewalRevolving Loans Housing District TIF District TIF District Assets Cash and investments -$ 2,294,532$ 3,851,110$ 2,292,211$ 949,800$ Receivables (Net of allowance for uncollectibles) Property taxes - 95,033 - 188,140 47,339 Accrued interest - 5,673 9,998 7,365 2,495 Accounts 189,267 - - - - Special assessments - - 22,101 - - Intergovernmental - - - - - Advances to other funds - - - - - Notes receivable 797,979 17,498 - - - Restricted cash and investments - - 898,377 512,091 92,000 Total assets 987,246$ 2,412,736$ 4,781,586$ 2,999,807$ 1,091,634$ Liabilities, Deferred Inflows of Resources, and Fund Balance LiabilitiesAccounts payable -$ 63,993$ 376,047$ 18,456$ 36,153$ Escheat property payable - - - - - Accrued employee benefits - - - - - Interest payable - - - - - Apperance bonds and other liabilities - - 54,326 - 811 Due to other funds - - - - - Unearned revenue - - - - - Total liabilities - 63,993 430,373 18,456 36,964 Deferred Inflows of ResourcesUnavailable revenue - property taxes - 8,521 - 38,424 - Fund Balance (Deficit)Nonspendable - - - - - Restricted 987,246 572,915 4,351,213 2,942,927 1,054,670 Committed - 316,081 - - - Assigned - 1,463,982 - - - Unassigned - (12,756) - - - Total fund balance (deficit)987,246 2,340,222 4,351,213 2,942,927 1,054,670 Total liabilities, deferred inflowsof resources, and fund balances 987,246$ 2,412,736$ 4,781,586$ 2,999,807$ 1,091,634$ 613 122 City of Bozeman, Montana Combining Balance Sheet Nonmajor Governmental Funds June 30, 2023 Special Revenue Funds Mandeville/Wheat Drive Victim/Witness Fire Department South Bozeman Parks and TrailsTIF District Advocate Equipment TIF District District Assets Cash and investments 163,597$ 392,687$ 397,213$ 58,806$ 3,726,744$ Receivables (Net of allowance for uncollectibles) Property taxes 2,667 - 47,766 - - Accrued interest 430 1,031 1,044 - 10,359 Accounts - 4,694 - - 15 Special assessments - - - - 76,942 Intergovernmental - - - - - Advances to other funds - - - - - Notes receivable - - - - - Restricted cash and investments - - - - - Total assets 166,694$ 398,412$ 446,023$ 58,806$ 3,814,060$ Liabilities, Deferred Inflows of Resources, and Fund Balance LiabilitiesAccounts payable -$ 52,529$ 41,600$ 4,499$ 498,720$ Escheat property payable - - - - - Accrued employee benefits - - - - - Interest payable - - - - - Apperance bonds and other liabilities - - - - - Due to other funds - - - - - Unearned revenue - - - - - Total liabilities - 52,529 41,600 4,499 498,720 Deferred Inflows of ResourcesUnavailable revenue - property taxes - - 4,355 - - Fund Balance (Deficit)Nonspendable - - - - - Restricted 166,694 345,883 400,068 54,307 3,315,340 Committed - - - - - Assigned - - - - - Unassigned - - - - - Total fund balance (deficit)166,694 345,883 400,068 54,307 3,315,340 Total liabilities, deferred inflowsof resources, and fund balances 166,694$ 398,412$ 446,023$ 58,806$ 3,814,060$ 614 123 City of Bozeman, Montana Combining Balance Sheet Nonmajor Governmental Funds June 30, 2023 Special Revenue Funds Total NonmajorStreetMunicipal Court SpecialLightingPark Land Restitution Revenue Funds Assets Cash and investments 527,426$ 1,957,707$ -$ 32,270,091$ Receivables (Net of allowance for uncollectibles) Property taxes - - - 931,850 Accrued interest - 5,142 - 135,104 Accounts - - - 195,361 Special assessments 6,944 - - 120,673 Intergovernmental - - - 394,738 Advances to other funds - - - - Notes receivable - - - 815,477 Restricted cash and investments - - 25,133 21,664,982 Total assets 534,370$ 1,962,849$ 25,133$ 56,528,276$ Liabilities, Deferred Inflows of Resources, and Fund Balance LiabilitiesAccounts payable 29,508$ -$ -$ 6,492,594$ Escheat property payable - - 25,028 25,028 Accrued employee benefits - - - 1,650 Interest payable - - - 11,173 Apperance bonds and other liabilities - - - 178,903 Due to other funds - - - - Unearned revenue - - - 9,100 Total liabilities 29,508 - 25,028 6,718,448 Deferred Inflows of ResourcesUnavailable revenue - property taxes - - - 77,570 Fund BalanceNonspendable - - - - Restricted 504,862 1,962,849 105 46,213,690 Committed - - - 603,360 Assigned - - - 2,927,964 Unassigned - - - (12,756) Total fund balance 504,862 1,962,849 105 49,732,258 Total liabilities, deferred inflowsof resources, and fund balances 534,370$ 1,962,849$ 25,133$ 56,528,276$ 615 124 City of Bozeman, Montana Combining Balance Sheet Nonmajor Governmental Funds June 30, 2023 Debt Service Funds Total NonmajorSIDGeneral Obligation Debt ServiceRevolvingBondsTIF Bonds Funds Assets Cash and investments 54,728$ 5$ -$ 54,733$ Receivables (Net of allowance for uncollectibles) Property taxes - 278,439 - 278,439 Accrued interest 717 - - 717 Accounts - - - - Special assessments - - - - Intergovernmental - - - - Advances to other funds 641,763 - - 641,763 Notes receivable - - - - Restricted cash and investments - - - - Total assets 697,208$ 278,444$ -$ 975,652$ Liabilities, Deferred Inflows of Resources, and Fund Balance LiabilitiesAccounts payable -$ -$ -$ -$ Escheat property payable - - - - Accrued employee benefits - - - - Interest payable - - - - Apperance bonds and other liabilities - - - - Due to other funds - 543,293 - 543,293 Unearned revenue - - - - Total liabilities - 543,293 - 543,293 Deferred Inflows of ResourcesUnavailable revenue - property taxes - 25,368 - 25,368 Fund Balance (Deficit)Nonspendable - - - - Restricted 697,208 - - 697,208 Committed - - - - Assigned - - - - Unassigned - (290,217) - (290,217) Total fund balance (deficit)697,208 (290,217) - 406,991 Total liabilities, deferred inflowsof resources, and fund balances 697,208$ 278,444$ -$ 975,652$ 616 125 City of Bozeman, Montana Combining Balance Sheet Nonmajor Governmental Funds June 30, 2023 Permanent Fund Total Total NonmajorCemetaryGovernmentalPerpetual Care Funds Assets Cash and investments -$ 32,324,824$ Receivables (Net of allowance for uncollectibles) Property taxes - 1,210,289 Accrued interest 4,757 140,578 Accounts 9,536 204,897 Special assessments - 120,673 Intergovernmental - 394,738 Advances to other funds - 641,763 Notes receivable - 815,477 Restricted cash and investments 1,811,056 23,476,038 Total assets 1,825,349$ 59,329,277$ Liabilities, Deferred Inflows of Resources, and Fund Balance LiabilitiesAccounts payable -$ 6,492,594$ Escheat property payable - 25,028 Accrued employee benefits - 1,650 Interest payable - 11,173 Apperance bonds and other liabilities - 178,903 Due to other funds - 543,293 Unearned revenue 20,950 30,050 Total liabilities 20,950 7,282,691 Deferred Inflows of ResourcesUnavailable revenue - property taxes - 102,938 Fund Balance (Deficit)Nonspendable 1,804,399 1,804,399 Restricted - 46,910,898 Committed - 603,360 Assigned - 2,927,964 Unassigned - (302,973) Total fund balance (deficit)1,804,399 51,943,648 Total liabilities, deferred inflowsof resources, and fund balances 1,825,349$ 59,329,277$ 617 126 City of Bozeman, Montana Combining Statements of Revenues, Expenditures, and Changes in Fund Balances Nonmajor Governmental Funds Year Ended June 30, 2023 Special Revenue Funds DowntownImprovement Health-Medical Gas TaxDepartmentalDistrictCity Planning Insurance Apportionment RevenuesTaxes 158,684$ 2,240,188$ 319,372$ 3,390,016$ -$ Special assessments - 220,642 - - - Licenses and permits - 500 65,250 - - Intergovernmental 591,564 59,965 181,220 - 788,161 Charges for services 39,685 - 1,275,250 - - Fines and forfeits - - - - - Interest on on investments 42,389 124,889 9,872 11,552 9,193 Change in fair market value of investments (9,121) (77,357) (49,251) (13,036) 15,291 Interest on loans receivable - - - - - Miscellaneous 145,227 - 59,771 - - Total revenues 968,428 2,568,827 1,861,484 3,388,532 812,645 ExpendituresCurrent General government - - 3,299,875 - - Public safety 345,568 - - - - Public works - - - - 545,185 Public welfare 62,808 686,511 - - - Other 152,877 - - - - Capital outlay 392,939 12,590 90,570 - 1,088,063 Debt servicePrincipal 67,627 - 32,421 - - Interest and fiscal charges 58,168 - 2,915 - - Total expenditures 1,079,987 699,101 3,425,781 - 1,633,248 Excess (Deficiency) of Revenues Over (Under) Expenditures (111,559) 1,869,726 (1,564,297) 3,388,532 (820,603) Other Financing Sources (Uses) Transfers in 369,895 - 2,100,028 - - Transfers out (298,872) (330,150) - (3,072,283) - Issuance of long-term debt - - 89,785 - - Sale of capital assets - - - - - Total other financing sources (uses)71,023 (330,150) 2,189,813 (3,072,283) - Net Change in Fund Balances (40,536) 1,539,576 625,516 316,249 (820,603) Fund Balance, Beginning of Year 2,351,957 3,775,619 743,027 1,025,294 1,062,125 Fund Balances, End of Year 2,311,421$ 5,315,195$ 1,368,543$ 1,341,543$ 241,522$ 618 127 City of Bozeman, Montana Combining Statement of Revenues, Expenditures, and Changes in Fund Balances Nonmajor Governmental Funds Year Ended June 30, 2023 Special Revenue Funds Tree Building Pole YardMaintenanceFire Impact Fee Street Impact Fee Inspection TIF District RevenuesTaxes -$ -$ -$ -$ 187,994$ Special assessments 2,090 - - - - Licenses and permits - - - 3,057,483 - Intergovernmental 8,422 - - 159,792 5,897 Charges for services 889,983 522,006 5,205,583 32,400 - Fines and forfeits - - - - - Interest on on investments 14,228 101,857 311,234 25,806 - Change in fair market value of investments (4,532) (38,018) (91,627) 6,516 - Interest on loans receivable - - - - - Miscellaneous 26,014 - 2,520 2 - Total revenues 936,205 585,845 5,427,710 3,281,999 193,891 ExpendituresCurrent General government - - - - - Public safety - 30,279 - 3,530,445 - Public works - - 313,614 - - Public welfare 900,976 - - - - Other - - - - - Capital outlay 84,986 - 4,621,353 421,400 - Debt servicePrincipal - - - 130,576 - Interest and fiscal charges - - - 9,021 - Total expenditures 985,962 30,279 4,934,967 4,091,442 - Excess (Deficiency) of Revenues Over (Under) Expenditures (49,757) 555,566 492,743 (809,443) 193,891 Other Financing Sources (Uses) Transfers in - - 199,550 - - Transfers out - - - - - Issuance of long-term debt - - - 421,400 - Sale of capital assets 6,600 - - - - Total other financing sources (uses)6,600 - 199,550 421,400 - Net Change in Fund Balances (43,157) 555,566 692,293 (388,043) 193,891 Fund Balance, Beginning of Year 660,347 4,287,167 13,218,872 1,409,716 140,996 Fund Balances, End of Year 617,190$ 4,842,733$ 13,911,165$ 1,021,673$ 334,887$ 619 128 City of Bozeman, Montana Combining Statement of Revenues, Expenditures, and Changes in Fund Balances Nonmajor Governmental Funds Year Ended June 30, 2023 Special Revenue Funds Econonomic Street Arterial North NortheastDevelopmentCommunityand Collector 7th Corridor Urban RenewalRevolving Loans Housing District TIF District TIF District RevenuesTaxes -$ 1,277,713$ -$ 1,666,460$ 405,388$ Special assessments - - 3,936 - - Licenses and permits - - - - - Intergovernmental - 1,542 - 47,767 1,802 Charges for services - - 1,662,399 - - Fines and forfeits - - - - - Interest on on investments 802 22,939 85,529 52,288 18,692 Change in fair market value of investments - (53,553) (15,026) (32,165) (11,208) Interest on loans receivable 19,941 - - - - Miscellaneous - 134,153 - - - Total revenues 20,743 1,382,794 1,736,838 1,734,350 414,674 ExpendituresCurrent General government - - - - - Public safety - - - - - Public works - - 42,405 - - Public welfare 58,523 279,908 - 162,661 57,375 Other - - - - - Capital outlay - - 1,140,492 131,766 63,587 Debt servicePrincipal - - - - 41,803 Interest and fiscal charges - - - - 50,197 Total expenditures 58,523 279,908 1,182,897 294,427 212,962 Excess (Deficiency) of Revenues Over (Under) Expenditures (37,780) 1,102,886 553,941 1,439,923 201,712 Other Financing Sources (Uses) Transfers in - 1,000,000 - - - Transfers out - - (55,475) (409,950) - Issuance of long-term debt - - - - - Sale of capital assets - - - - - Total other financing sources (uses)- 1,000,000 (55,475) (409,950) - Net Change in Fund Balances (37,780) 2,102,886 498,466 1,029,973 201,712 Fund Balance, Beginning of Year 1,025,026 237,336 3,852,747 1,912,954 852,958 Fund Balances, End of Year 987,246$ 2,340,222$ 4,351,213$ 2,942,927$ 1,054,670$ 620 129 City of Bozeman, Montana Combining Statement of Revenues, Expenditures, and Changes in Fund Balances Nonmajor Governmental Funds Year Ended June 30, 2023 Special Revenue Funds Mandeville/Wheat Drive Victim/Witness Fire Department South Bozeman Parks and TrailsTIF District Advocate Equipment TIF District District RevenuesTaxes 21,643$ -$ 640,306$ 34,690$ -$ Special assessments - - - - 13,346 Licenses and permits - - - - - Intergovernmental - - - - 22,041 Charges for services - - - - 5,888,241 Fines and forfeits - 59,429 - - - Interest on on investments 3,381 8,831 18,926 681 62,884 Change in fair market value of investments (1,604) (906) 16,301 - (49,132) Interest on loans receivable - - - - - Miscellaneous - - - - 55,542 Total revenues 23,420 67,354 675,533 35,371 5,992,922 ExpendituresCurrent General government - 122,658 - - - Public safety - - 98,517 - - Public works - - - - - Public welfare - - - 4,803 4,470,034 Other - - - - - Capital outlay - - 78,182 - 467,028 Debt servicePrincipal - - - - - Interest and fiscal charges - - - - - Total expenditures - 122,658 176,699 4,803 4,937,062 Excess (Deficiency) of Revenues Over (Under) Expenditures 23,420 (55,304) 498,834 30,568 1,055,860 Other Financing Sources (Uses) Transfers in - - - - 375,977 Transfers out - - (1,141,038) - - Issuance of long-term debt - - - - - Sale of capital assets - - - - - Total other financing sources (uses)- - (1,141,038) - 375,977 Net Change in Fund Balances 23,420 (55,304) (642,204) 30,568 1,431,837 Fund Balance, Beginning of Year 143,274 401,187 1,042,272 23,739 1,883,503 Fund Balances, End of Year 166,694$ 345,883$ 400,068$ 54,307$ 3,315,340$ 621 130 City of Bozeman, Montana Combining Statement of Revenues, Expenditures, and Changes in Fund Balances Nonmajor Governmental Funds Year Ended June 30, 2023 Special Revenue Funds Total NonmajorStreetMunicipal Court SpecialLightingPark Land Restitution Revenue Funds Revenues Taxes -$ -$ -$ 10,342,454$ Special assessments 466,389 - - 706,403 Licenses and permits - - - 3,123,233 Intergovernmental - - - 1,868,173 Charges for services - - - 15,515,547 Fines and forfeits - - - 59,429 Interest on on investments 10,614 40,848 - 977,435 Change in fair market value of investments - (30,028) - (438,456) Interest on loans receivable - - - 19,941 Miscellaneous - 823,292 - 1,246,521 Total revenues 477,003 834,112 - 33,420,680 ExpendituresCurrent General government - - - 3,422,533 Public safety - - - 4,004,809 Public works 470,532 - - 1,371,736 Public welfare - 20,146 - 6,703,745 Other - - - 152,877 Capital outlay - 3,014 - 8,595,970 Debt servicePrincipal - 100,000 - 372,427 Interest and fiscal charges - - - 120,301 Total expenditures 470,532 123,160 - 24,744,398 Excess (Deficiency) of Revenues Over (Under) Expenditures 6,471 710,952 - 8,676,282 Other Financing Sources (Uses) Transfers in - - - 4,045,450 Transfers out - - - (5,307,768) Issuance of long-term debt - - - 511,185 Sale of capital assets - - - 6,600 Total other financing sources (uses)- - - (744,533) Net Change in Fund Balances 6,471 710,952 - 7,931,749 Fund Balance, Beginning of Year 498,391 1,251,897 105 41,800,509 Fund Balances, End of Year 504,862$ 1,962,849$ 105$ 49,732,258$ 622 131 City of Bozeman, Montana Combining Statement of Revenues, Expenditures, and Changes in Fund Balances Nonmajor Governmental Funds Year Ended June 30, 2023 Debt Service Funds Total NonmajorSIDGeneral Obligation Debt ServiceRevolvingBondsTIF Bonds Funds Revenues Taxes -$ 3,736,221$ -$ 3,736,221$ Special assessments - - - - Licenses and permits - - - - Intergovernmental - - - - Charges for services - - - - Fines and forfeits - - - - Interest on on investments 11,491 9,183 - 20,674 Change in fair market value of investments 74,123 - - 74,123 Interest on loans receivable 10,405 - - 10,405 Miscellaneous - - - - Total revenues 96,019 3,745,404 - 3,841,423 ExpendituresCurrent General government - - - - Public safety - - - - Public works - - - - Public welfare - - - - Other - - - - Capital outlay - - - - Debt servicePrincipal - 2,225,000 444,000 2,669,000 Interest and fiscal charges - 1,730,380 296,100 2,026,480 Total expenditures - 3,955,380 740,100 4,695,480 Excess (Deficiency) of Revenues Over (Under) Expenditures 96,019 (209,976) (740,100) (854,057) Other Financing Sources (Uses) Transfers in 1,326,665 - 740,100 2,066,765 Transfers out (2,188,757) (128,272) - (2,317,029) Issuance of long-term debt - - - - Sale of capital assets - - - - Total other financing sources (uses)(862,092) (128,272) 740,100 (250,264) Net Change in Fund Balances (766,073) (338,248) - (1,104,321) Fund Balance, Beginning of Year 1,463,281 48,031 - 1,511,312 Fund Balances, End of Year 697,208$ (290,217)$ -$ 406,991$ 623 132 City of Bozeman, Montana Combining Statement of Revenues, Expenditures, and Changes in Fund Balances Nonmajor Governmental Funds Year Ended June 30, 2023 Permanent Fund Total Total NonmajorCemetaryGovernmentalPerpetual Care Funds RevenuesTaxes -$ 14,078,675$ Special assessments - 706,403 Licenses and permits - 3,123,233 Intergovernmental - 1,868,173 Charges for services 93,173 15,608,720 Fines and forfeits - 59,429 Interest on on investments 38,711 1,036,820 Change in fair market value of investments (11,589) (375,922) Interest on loans receivable - 30,346 Miscellaneous - 1,246,521 Total revenues 120,295 37,382,398 ExpendituresCurrent General government - 3,422,533 Public safety - 4,004,809 Public works - 1,371,736 Public welfare - 6,703,745 Other - 152,877 Capital outlay - 8,595,970 Debt servicePrincipal - 3,041,427 Interest and fiscal charges - 2,146,781 Total expenditures - 29,439,878 Excess (Deficiency) of Revenues Over (Under) Expenditures 120,295 7,942,520 Other Financing Sources (Uses) Transfers in - 6,112,215 Transfers out - (7,624,797) Issuance of long-term debt - 511,185 Sale of capital assets - 6,600 Total other financing sources (uses)- (994,797) Net Change in Fund Balances 120,295 6,947,723 Fund Balance, Beginning of Year 1,684,104 44,995,925 Fund Balances, End of Year 1,804,399$ 51,943,648$ 624 133 City of Bozeman, Montana Combining Statements of Revenues, Expenditures, and Changes in Fund Balances – Budget and Actual Nonmajor Governmental Funds Year Ended June 30, 2023 Special Revenue FundsDepartmentalDowntown Improvement District City Planning Final Actual Variance with Final Actual Variance with Final Actual Variance with Budget Amounts Final Budget Budget Amounts Final Budget Budget Amounts Final Budget RevenuesTaxes 152,627$ 158,684$ 6,057$ 8,033,278$ 2,240,188$ (5,793,090)$ 305,254$ 319,372$ 14,118$ Special assessments - - - 185,100 220,642 35,542 - - - Licenses and permits - - - 2,000 500 (1,500) - 65,250 65,250 Intergovernmental 425,000 591,564 166,564 57,059 59,965 2,906 118,081 181,220 63,139 Charges for services 10,000 39,685 29,685 - - - 1,642,515 1,275,250 (367,265) Fines and forfeitures - - - - - - - - - Interest on investments 21,175 42,389 21,214 20,000 124,889 104,889 10,000 9,872 (128) Change in fair market value of investments - (9,121) (9,121) - (77,357) (77,357) - (49,251) (49,251) Interest on loans receivable - - - - - - - - - Miscellaneous 94,000 145,227 51,227 - - - 50,000 59,771 9,771 Total revenues 702,802 968,428 265,626 8,297,437 2,568,827 (5,728,610) 2,125,850 1,861,484 (264,366) ExpendituresCurrentGeneral government - - - - - - 4,410,310 3,299,875 1,110,435 Public safety 285,961 345,568 (59,607) - - - - - - Public works - - - - - - - - - Public welfare 426,600 62,808 363,792 5,165,785 686,511 4,479,274 - - - Other 152,877 152,877 - - - - - - - Capital outlay - 392,939 (392,939) - 12,590 (12,590) 40,000 90,570 (50,570) Debt servicePrincipal 125,795 67,627 58,168 - - - - 32,421 (32,421) Interest and fiscal charges - 58,168 (58,168) - - - - 2,915 (2,915) Total expenditures 991,233 1,079,987 (88,754) 5,165,785 699,101 4,466,684 4,450,310 3,425,781 1,024,529 Excess (Deficiency) of Revenuesover (under) Expenditures (288,431) (111,559) 176,872 3,131,652 1,869,726 (1,261,926) (2,324,460) (1,564,297) 760,163 Other Financing Sources (Uses)Transfers in 20,688 369,895 349,207 - - - 245,365 2,100,028 1,854,663 Transfers out (68,497) (298,872) (230,375) (330,150) (330,150) - - - - Issuance of long-term debt - - - - - - - 89,785 89,785 Sale of capital assets - - - - - - - - - Total other financing sources (uses)(47,809) 71,023 118,832 (330,150) (330,150) - 245,365 2,189,813 1,944,448 Net Change in Fund Balance (336,240)$ (40,536) 295,704$ 2,801,502$ 1,539,576 (1,261,926)$ (2,079,095)$ 625,516 2,704,611$ Fund Balance, Beginning of Year 2,351,957 3,775,619 743,027 Fund Balance, End of Year 2,311,421$ 5,315,195$ 1,368,543$ 625 134 City of Bozeman, Montana Combining Statement of Revenues, Expenditures, and Changes in Fund Balances– Budget and Actual Nonmajor Governmental Funds Year Ended June 30, 2023 Special Revenue FundsHealth-Medical Insurance Gas Tax Apportionment Tree Maintenance Final Actual Variance with Final Actual Variance with Final Actual Variance withBudget Amounts Final Budget Budget Amounts Final Budget Budget Amounts Final Budget RevenuesTaxes 3,300,689$ 3,390,016$ 89,327$ -$ -$ -$ -$ -$ -$ Special assessments - - - - - - 2,000 2,090 90 Licenses and permits - - - - - - - - - Intergovernmental - - - 1,734,520 788,161 (946,359) - 8,422 8,422 Charges for services - - - - - - 872,292 889,983 17,691 Fines and forfeitures - - - - - - - - - Interest on investments - 11,552 11,552 10,000 9,193 (807) 4,000 14,228 10,228 Change in fair market value of investments - (13,036) (13,036) - 15,291 15,291 - (4,532) (4,532) Interest on loans receivable - - - - - - - - - Miscellaneous - - - - - 6,000 26,014 20,014 Total revenues 3,300,689 3,388,532 87,843 1,744,520 812,645 (931,875) 884,292 936,205 51,913 ExpendituresCurrentGeneral government - - - - - - - - - Public safety - - - - - - - - - Public works - - - 1,358,350 545,185 813,165 - - - Public welfare - - - - - - 996,471 900,976 95,495 Other - - - - - - - - - Capital outlay - - - 80,000 1,088,063 (1,008,063) 235,000 84,986 150,014 Debt servicePrincipal - - - - - - - - - Interest and fiscal charges - - - - - - - - - Total expenditures - - - 1,438,350 1,633,248 (194,898) 1,231,471 985,962 245,509 Excess (Deficiency) of Revenuesover (under) Expenditures 3,300,689 3,388,532 87,843 306,170 (820,603) (1,126,773) (347,179) (49,757) 297,422 Other Financing Sources (Uses)Transfers in - - - - - - - - - Transfers out (3,300,689) (3,072,283) 228,406 (975,291) - 975,291 - - - Issuance of long-term debt - - - - - - - - - Sale of capital assets - - - - - - - 6,600 6,600 Total other financing sources (uses)(3,300,689) (3,072,283) 228,406 (975,291) - 975,291 - 6,600 6,600 Net Change in Fund Balance -$ 316,249 316,249$ (669,121)$ (820,603) (151,482)$ (347,179)$ (43,157) 304,022$ Fund Balance, Beginning of Year 1,025,294 1,062,125 660,347 Fund Balance, End of Year 1,341,543$ 241,522$ 617,190$ 626 135 City of Bozeman, Montana Combining Statement of Revenues, Expenditures, and Changes in Fund Balances– Budget and Actual Nonmajor Governmental Funds Year Ended June 30, 2023 Special Revenue FundsFire Impact Fee Street Impact Fee Building Inspection Final Actual Variance with Final Actual Variance with Final Actual Variance withBudget Amounts Final Budget Budget Amounts Final Budget Budget Amounts Final Budget RevenuesTaxes -$ -$ -$ -$ -$ -$ -$ -$ -$ Special assessments - - - - - - - - - Licenses and permits - - - - - - 2,129,880 3,057,483 927,603 Intergovernmental - - - - - - - 159,792 159,792 Charges for services 511,181 522,006 10,825 5,727,830 5,205,583 (522,247) 100 32,400 32,300 Fines and forfeitures - - - - - - - - - Interest on investments 8,800 101,857 93,057 60,000 311,234 251,234 12,000 25,806 13,806 Change in fair market value of investments - (38,018) (38,018) - (91,627) (91,627) - 6,516 6,516 Interest on loans receivable - - - - - - - - - Miscellaneous - - - 1,000 2,520 1,520 - 2 2 Total revenues 519,981 585,845 65,864 5,788,830 5,427,710 (361,120) 2,141,980 3,281,999 1,140,019 ExpendituresCurrentGeneral government - - - - - - - - - Public safety 25,560 30,279 (4,719) - - - 4,279,526 3,530,445 749,081 Public works - - - 343,392 313,614 29,778 - - - Public welfare - - - - - - - - - Other - - - - - - - - - Capital outlay 1,500,000 - 1,500,000 14,582,746 4,621,353 9,961,393 40,000 421,400 (381,400) Debt servicePrincipal - - - - - - - 130,576 (130,576) Interest and fiscal charges - - - - - - - 9,021 (9,021) Total expenditures 1,525,560 30,279 1,495,281 14,926,138 4,934,967 9,991,171 4,319,526 4,091,442 228,084 Excess (Deficiency) of Revenuesover (under) Expenditures (1,005,579) 555,566 1,561,145 (9,137,308) 492,743 9,630,051 (2,177,546) (809,443) 1,368,103 Other Financing SourcesTransfers in - - - - 199,550 199,550 - - - Transfers out - - - - - - - - - Issuance of long-term debt - - - - - - - 421,400 421,400 Sale of capital assets - - - - - - - - - Total other financing sources - - - - 199,550 199,550 - 421,400 421,400 Net Change in Fund Balance (1,005,579)$ 555,566 1,561,145$ (9,137,308)$ 692,293 9,829,601$ (2,177,546)$ (388,043) 1,789,503$ Fund Balance, Beginning of Year 4,287,167 13,218,872 1,409,716 Fund Balance, End of Year 4,842,733$ 13,911,165$ 1,021,673$ 627 136 City of Bozeman, Montana Combining Statement of Revenues, Expenditures, and Changes in Fund Balances– Budget and Actual Nonmajor Governmental Funds Year Ended June 30, 2023 Special Revenue FundsPole Yard TIF District Economic Development Revolving Loans Community Housing Final Actual Variance with Final Actual Variance with Final Actual Variance withBudget Amounts Final Budget Budget Amounts Final Budget Budget Amounts Final Budget RevenuesTaxes 260,180$ 187,994$ (72,186)$ -$ -$ -$ 1,221,016$ 1,277,713$ 56,697$ Special assessments - - - - - - - - - Licenses and permits - - - - - - - - - Intergovernmental - 5,897 5,897 - - - - 1,542 1,542 Charges for services - - - - - - - - - Fines and forfeitures - - - - - - - - - Interest on investments - - - - 802 802 5,000 22,939 17,939 Change in fair market value of investments - - - - - - - (53,553) (53,553) Interest on loans receivable - - - 25,000 19,941 (5,059) 900 - (900) Miscellaneous - - - - - - - 134,153 134,153 Total revenues 260,180 193,891 (66,289) 25,000 20,743 (4,257) 1,226,916 1,382,794 155,878 ExpendituresCurrentGeneral government - - - - - - - - - Public safety - - - - - - - - - Public works - - - - - - - - - Public welfare 80,000 - 80,000 31,000 58,523 (27,523) 1,228,728 279,908 948,820 Other - - - - - - - - - Capital outlay - - - - - - Debt service - - - Principal - - - - - - - - - Interest and fiscal charges - - - - - - - - - Total expenditures 80,000 - 80,000 31,000 58,523 (27,523) 1,228,728 279,908 948,820 Excess (Deficiency) of Revenuesover (under) Expenditures 180,180 193,891 13,711 (6,000) (37,780) (31,780) (1,812) 1,102,886 1,104,698 Other Financing UsesTransfers in - - - - - - - 1,000,000 1,000,000 Transfers out - - - - - - - - - Issuance of long-term debt - - - - - - - - - Sale of capital assets - - - - - - - - - Total other financing uses - - - - - - - 1,000,000 1,000,000 Net Change in Fund Balance 180,180$ 193,891 13,711$ (6,000)$ (37,780) (31,780)$ (1,812)$ 2,102,886 2,104,698$ Fund Balance, Beginning of Year 140,996 1,025,026 237,336 Fund Balance, End of Year 334,887$ 987,246$ 2,340,222$ 628 137 City of Bozeman, Montana Combining Statement of Revenues, Expenditures, and Changes in Fund Balances– Budget and Actual Nonmajor Governmental Funds Year Ended June 30, 2023 Special Revenue FundsStreet Arterial and Collector District North 7th Corridor TIF District Northeast Urban Renewal TIF District Final Actual Variance with Final Actual Variance with Final Actual Variance withBudget Amounts Final Budget Budget Amounts Final Budget Budget Amounts Final Budget RevenuesTaxes -$ -$ -$ 2,635,734$ 1,666,460$ (969,274)$ 647,632$ 405,388$ (242,244)$ Special assessments 3,500 3,936 436 - - - - - - Licenses and permits - - - - - - - - - Intergovernmental - - - 37,927 47,767 9,840 1,354 1,802 448 Charges for services 1,654,440 1,662,399 7,959 - - - - - - Fines and forfeitures - - - - - - - - - Interest on investments 6,472 85,529 79,057 10,000 52,288 42,288 3,000 18,692 15,692 Change in fair market value of investments - (15,026) (15,026) - (32,165) (32,165) - (11,208) (11,208) Interest on loans receivable - - - - - - - - - Miscellaneous 3,359 - (3,359) - - - - - - Total revenues 1,667,771 1,736,838 69,067 2,683,661 1,734,350 (949,311) 651,986 414,674 (237,312) ExpendituresCurrentGeneral government - - - - - - - - - Public safety - - - - - - - - - Public works 253,000 42,405 210,595 - - - - - - Public welfare - - - 4,239,813 162,661 4,077,152 1,045,624 57,375 988,249 Other - - - - - - - - - Capital outlay 5,485,000 1,140,492 4,344,508 - 131,766 (131,766) - 63,587 (63,587) Debt servicePrincipal - - - - - - 92,000 41,803 50,197 Interest and fiscal charges - - - - - - - 50,197 (50,197) Total expenditures 5,738,000 1,182,897 4,555,103 4,239,813 294,427 3,945,386 1,137,624 212,962 924,662 Excess (Deficiency) of Revenuesover (under) Expenditures (4,070,229) 553,941 4,624,170 (1,556,152) 1,439,923 2,996,075 (485,638) 201,712 687,350 Other Financing Sources (Uses)Transfers in 975,291 - (975,291) - - - - - - Transfers out (1,000,000) (55,475) 944,525 (409,950) (409,950) - - - - Issuance of long-term debt - - - - - - - - - Sale of capital assets - - - - - - - - - Total other financing sources (uses)(24,709) (55,475) (30,766) (409,950) (409,950) - - - - Net Change in Fund Balance (4,094,938)$ 498,466 4,593,404$ (1,966,102)$ 1,029,973 2,996,075$ (485,638)$ 201,712 687,350$ Fund Balance, Beginning of Year 3,852,747 1,912,954 852,958 Fund Balance, End of Year 4,351,213$ 2,942,927$ 1,054,670$ 629 138 City of Bozeman, Montana Combining Statement of Revenues, Expenditures, and Changes in Fund Balances– Budget and Actual Nonmajor Governmental Funds Year Ended June 30, 2023 Special Revenue FundsMandeville/Wheat Drive TIF District Victim/Witness Advocate Fire Department Equipment Final Actual Variance with Final Actual Variance with Final Actual Variance withBudget Amounts Final Budget Budget Amounts Final Budget Budget Amounts Final Budget RevenuesTaxes 54,701$ 21,643$ (33,058)$ -$ -$ -$ 610,508$ 640,306$ 29,798$ Special assessments - - - - - - - - - Licenses and permits - - - - - - - - - Intergovernmental - - - - - - - - - Charges for services - - - - - - - - - Fines and forfeitures - - - 70,000 59,429 (10,571) - - - Interest on investments - 3,381 3,381 3,500 8,831 5,331 5,000 18,926 13,926 Change in fair market value of investments - (1,604) (1,604) - (906) (906) - 16,301 16,301 Interest on loans receivable - - - - - - - - - Miscellaneous - - - - - - - - - Total revenues 54,701 23,420 (31,281) 73,500 67,354 (6,146) 615,508 675,533 60,025 ExpendituresCurrentGeneral government - - - 140,000 122,658 17,342 - - - Public safety - - - - - - - 98,517 (98,517) Public works - - - - - - - - - Public welfare 100,000 - 100,000 - - - - - - Other - - - - - - - - - Capital outlay - - - - - - 641,750 78,182 563,568 Debt servicePrincipal - - - - - - - - - Interest and fiscal charges - - - - - - - - - Total expenditures 100,000 - 100,000 140,000 122,658 17,342 641,750 176,699 465,051 Excess (Deficiency) of Revenuesover (under) Expenditures (45,299) 23,420 68,719 (66,500) (55,304) 11,196 (26,242) 498,834 525,076 Other Financing UsesTransfers in - - - - - - - - - Transfers out - - - - - - (1,000,000) (1,141,038) (141,038) Issuance of long-term debt - - - - - - - - - Sale of capital assets - - - - - - - - - Total other financing uses - - - - - - (1,000,000) (1,141,038) (141,038) Net Change in Fund Balance (45,299)$ 23,420 68,719$ (66,500)$ (55,304) 11,196$ (1,026,242)$ (642,204) 384,038$ Fund Balance, Beginning of Year 143,274 401,187 1,042,272 Fund Balance, End of Year 166,694$ 345,883$ 400,068$ 630 139 City of Bozeman, Montana Combining Statement of Revenues, Expenditures, and Changes in Fund Balances– Budget and Actual Nonmajor Governmental Funds Year Ended June 30, 2023 Special Revenue FundsSouth Bozeman TIF District Parks and Trails District Street Lighting Final Actual Variance with Final Actual Variance with Final Actual Variance withBudget Amounts Final Budget Budget Amounts Final Budget Budget Amounts Final Budget RevenuesTaxes 57,408$ 34,690$ (22,718)$ -$ -$ -$ -$ -$ -$ Special assessments - - - - 13,346 13,346 492,989 466,389 (26,600) Licenses and permits - - - - - - - - - Intergovernmental - - - - 22,041 22,041 - - - Charges for services - - - 5,449,453 5,888,241 438,788 - - - Fines and forfeitures - - - - - - - - - Interest on investments - 681 681 2,550 62,884 60,334 5,863 10,614 4,751 Change in fair market value of investments - - - - (49,132) (49,132) - - - Interest on loans receivable - - - - - - - - - Miscellaneous - - - - 55,542 55,542 - - - Total revenues 57,408 35,371 (22,037) 5,452,003 5,992,922 540,919 498,852 477,003 (21,849) ExpendituresCurrentGeneral government - - - - - - - - - Public safety - - - - - - - - - Public works - - - - - - 546,096 470,532 75,564 Public welfare 10,000 4,803 5,197 5,170,304 4,470,034 700,270 - - - Other - - - - - - - - - Capital outlay - - - 873,000 467,028 405,972 - - - Debt servicePrincipal - - - - - - - - - Interest and fiscal charges - - - - - - - - - Total expenditures 10,000 4,803 5,197 6,043,304 4,937,062 1,106,242 546,096 470,532 75,564 Excess (Deficiency) of Revenuesover (under) Expenditures 47,408 30,568 (16,840) (591,301) 1,055,860 1,647,161 (47,244) 6,471 53,715 Other Financing SourcesTransfers in - - - - 375,977 375,977 - - - Transfers out - - - - - - (25,520) - 25,520 Issuance of long-term debt - - - - - - - - - Sale of capital assets - - - - - - - - - Total other financing sources - - - - 375,977 375,977 (25,520) - 25,520 Net Change in Fund Balance 47,408$ 30,568 (16,840)$ (591,301)$ 1,431,837 2,023,138$ (72,764)$ 6,471 79,235$ Fund Balance, Beginning of Year 23,739 1,883,503 498,391 Fund Balance, End of Year 54,307$ 3,315,340$ 504,862$ 631 140 City of Bozeman, Montana Combining Statement of Revenues, Expenditures, and Changes in Fund Balances– Budget and Actual Nonmajor Governmental Funds Year Ended June 30, 2023 Special Revenue FundsPark Land Municipal Court Restitution Total Final Actual Variance with Final Actual Variance with Final Actual Variance withBudget Amounts Final Budget Budget Amounts Final Budget Budget Amounts Final Budget RevenuesTaxes -$ -$ -$ -$ -$ -$ 17,279,027$ 10,342,454$ (6,936,573)$ Special assessments - - - - - - 683,589 706,403 22,814 Licenses and permits - - - - - - 2,131,880 3,123,233 991,353 Intergovernmental - - - - - - 2,373,941 1,868,173 (505,768) Charges for services - - - - - - 15,867,811 15,515,547 (352,264) Fines and forfeitures - - - - - - 70,000 59,429 (10,571) Interest on investments 5,000 40,848 35,848 - - - 192,360 977,435 785,075 Change in fair market value of investments - (30,028) (30,028) - - - - (438,456) (438,456) Interest on loans receivable - - - - - - 25,900 19,941 (5,959) Miscellaneous 50,000 823,292 773,292 - - - 204,359 1,246,521 1,042,162 Total revenues 55,000 834,112 779,112 - - - 38,828,867 33,420,680 (5,408,187) ExpendituresCurrentGeneral government - - - - - - 4,550,310 3,422,533 1,127,777 Public safety - - - - - - 4,591,047 4,004,809 586,238 Public works - - - - - - 2,500,838 1,371,736 1,129,102 Public welfare 5,000 20,146 (15,146) - - - 18,499,325 6,703,745 11,795,580 Other - - - - - - 152,877 152,877 - Capital outlay 192,635 3,014 189,621 - - - 23,670,131 8,595,970 15,074,161 Debt service Principal 100,000 100,000 - - - - 317,795 372,427 (54,632) Interest and fiscal charges - - - - - - - 120,301 (120,301) - Total expenditures - 123,160 (123,160) - - - 54,282,323 24,744,398 29,537,925 Excess (Deficiency) of Revenuesover (under) Expenditures 55,000 710,952 655,952 - - - (15,453,456) 8,676,282 24,129,738 Other Financing UsesTransfers in - - - - - - 1,241,344 4,045,450 2,804,106 Transfers out - - - - - - (7,110,097) (5,307,768) 1,802,329 Issuance of long-term debt - - - - - - - 511,185 511,185 Sale of capital assets - - - - - - - 6,600 6,600 - Total other financing uses - - - - - - (5,868,753) (744,533) 5,124,220 Net Change in Fund Balance 55,000$ 710,952 655,952$ -$ - -$ (21,322,209)$ 7,931,749 29,253,958$ Fund Balance, Beginning of Year 1,251,897 105 41,800,509 Fund Balance, End of Year 1,962,849$ 105$ 49,732,258$ 632 141 City of Bozeman, Montana Combining Statement of Revenues, Expenditures, and Changes in Fund Balances– Budget and Actual Nonmajor Governmental Funds Year Ended June 30, 2023 Debt Service FundsSID Revolving General Obligation Bonds TIF Bonds Final Actual Variance with Final Actual Variance with Final Actual Variance withBudget Amounts Final Budget Budget Amounts Final Budget Budget Amounts Final Budget RevenuesTaxes -$ -$ -$ 3,599,755$ 3,736,221$ 136,466$ -$ -$ -$ Special assessments - - - - - - - - - Licenses and permits - - - - - - - - - Intergovernmental - - - - - - - - - Charges for services - - - - - - - - - Fines and forfeitures - - - - - - - - - Interest on investments 5,000 11,491 6,491 - 9,183 9,183 - - - Change in fair market value of investments - 74,123 74,123 - - - - - - Interest on loans receivable 5,000 10,405 5,405 - - - - - - Miscellaneous - - - - - - - - - Total revenues 10,000 96,019 86,019 3,599,755 3,745,404 145,649 - - - ExpendituresCurrentGeneral government - - - - - - - - - Public safety - - - - - - - - - Public works - - - - - - - - - Public welfare - - - - - - - - - Other - - - - - - - - - Capital outlay - - - - - - - - - Debt service Principal - - - 2,375,255 2,225,000 150,255 444,000 444,000 - Interest and fiscal charges - - - 1,580,125 1,730,380 (150,255) 296,100 296,100 - Total expenditures - - - 3,955,380 3,955,380 - 740,100 740,100 - Excess (Deficiency) of Revenuesover (under) Expenditures 10,000 96,019 86,019 (355,625) (209,976) 145,649 (740,100) (740,100) - Other Financing Sources (Uses)Transfers in - 1,326,665 1,326,665 - - - 740,100 740,100 - Transfers out (1,924,207) (2,188,757) (264,550) (128,272) (128,272) - - - - Issuance of long-term debt - - - - - - - - - Sale of capital assets - - - - - - - - - Total other financing sources (uses)(1,924,207) (862,092) 1,062,115 (128,272) (128,272) - 740,100 740,100 - Net Change in Fund Balance (1,914,207)$ (766,073) 1,148,134$ (483,897)$ (338,248) 145,649$ -$ - -$ Fund Balance, Beginning of Year 1,463,281 48,031 - Fund Balance (Deficit), End of Year 697,208$ (290,217)$ -$ 633 142 City of Bozeman, Montana Combining Statement of Revenues, Expenditures, and Changes in Fund Balances– Budget and Actual Nonmajor Governmental Funds Year Ended June 30, 2023 Debt Service Funds Permanent FundTotalCemetary Perpetual Care Total Final Actual Variance with Final Actual Variance with Final Actual Variance withBudget Amounts Final Budget Budget Amounts Final Budget Budget Amounts Final Budget RevenuesTaxes 3,599,755$ 3,736,221$ 136,466$ -$ -$ -$ 20,878,782$ 14,078,675$ (6,800,107)$ Special assessments - - - - - - 683,589 706,403 22,814 Licenses and permits - - - - - - 2,131,880 3,123,233 991,353 Intergovernmental - - - - - - 2,373,941 1,868,173 (505,768) Charges for services - - - 40,000 93,173 53,173 15,907,811 15,608,720 (299,091) Fines and forfeitures - - - - - - 70,000 59,429 (10,571) Interest on investments 5,000 20,674 15,674 20,000 38,711 18,711 217,360 1,036,820 819,460 Change in fair market value of investments - 74,123 74,123 - (11,589) (11,589) - (375,922) (375,922) Interest on loans receivable 5,000 10,405 5,405 - - - 30,900 30,346 (554) Miscellaneous - - - - - - 204,359 1,246,521 1,042,162 Total revenues 3,609,755 3,841,423 231,668 60,000 120,295 60,295 42,498,622 37,382,398 (5,116,224) ExpendituresCurrentGeneral government - - - - - - 4,550,310 3,422,533 1,127,777 Public safety - - - - - - 4,591,047 4,004,809 586,238 Public works - - - - - - 2,500,838 1,371,736 1,129,102 Public welfare - - - - - - 18,499,325 6,703,745 11,795,580 Other - - - - - - 152,877 152,877 - Capital outlay - - - - - - 23,670,131 8,595,970 15,074,161 Debt service - - Principal 2,819,255 2,669,000 150,255 - - - 3,137,050 3,041,427 95,623 Interest and fiscal charges 1,876,225 2,026,480 (150,255) - - - 1,876,225 2,146,781 (270,556) Total expenditures 4,695,480 4,695,480 - - - - - 29,439,878 (29,439,878) Excess (Deficiency) of Revenuesover (under) Expenditures (1,085,725) (854,057) 231,668 60,000 120,295 60,295 42,498,622 7,942,520 (34,556,102) Other Financing Sources (Uses)Transfers in 740,100 2,066,765 1,326,665 - - - 1,981,444 6,112,215 4,130,771 Transfers out (2,052,479) (2,317,029) (264,550) - - - (9,162,576) (7,624,797) 1,537,779 Issuance of long-term debt - - - - - - - 511,185 511,185 Sale of capital assets - - - - - - - 6,600 6,600 Total other financing sources (uses)(1,312,379) (250,264) 1,062,115 - - - (7,181,132) (994,797) 6,186,335 Net Change in Fund Balance (2,398,104)$ (1,104,321) 1,293,783$ 60,000$ 120,295 60,295$ 35,317,490$ 6,947,723 (28,369,767)$ Fund Balance, Beginning of Year 1,511,312 1,684,104 44,995,925 Fund Balance, End of Year 406,991$ 1,804,399$ 51,943,648$ 634 143 City of Bozeman, Montana Description of Nonmajor Funds Nonmajor Enterprise Funds June 30, 2023 The enterprise funds account for the operations that are financed and operated in a manner similar to private business enterprises where the intent of the City is that the costs (expenses, including depreciation) of providing goods and services to the general public on a continuing basis be financed or recovered primarily through user charges, or where the City has decided that periodic determination of the revenues earned, expenses incurred and/or net income is appropriate for capital maintenance, public policy, management control, accountability, or for other purposes. The City operates the following nonmajor enterprise funds: Parking Fund – Accounts for the City’s parking enforcement and facilities operations. Stormwater Fund – Accounts for the City’s stormwater management and mitigation operations. 635 144 City of Bozeman, Montana Combining Balance Sheet Nonmajor Enterprise Funds June 30, 2023 Parking Storm Water Total Assets Current Assets Cash and cash equivalents 1,286,323$ 1,867,728$ 3,154,051$ Receivables (net of allowance for uncollectibles):Interest 5,220 5,190 10,410 Accounts 1,602 183,630 185,232 Special assessments - 66 66 Total current assets 1,293,145 2,056,614 3,349,759 Noncurrent AssetsRestricted assets Investments 656,242 58,288 714,530 Capital assetsLand 303,436 - 303,436 Construction in progress 33,000 573,179 606,179 Buildings 11,938,077 24,215 11,962,292 Machinery and equipment 487,170 757,188 1,244,358 Vehicles 187,533 197,137 384,670 Infrastructure 47,058 8,431,088 8,478,146 Less accumulated depreciation (5,983,217) (1,359,917) (7,343,134) Total capital assets, net of accumulated depreciation 7,013,057 8,622,890 15,635,947 Total noncurrent assets 7,669,299 8,681,178 16,350,477 Total assets 8,962,444 10,737,792 19,700,236 Deferred Outflows of Resources OPEB 12,353 14,787 27,140 Pensions 59,326 100,229 159,555 Total deferred outflows of resources 71,679 115,016 186,695 636 145 City of Bozeman, Montana Combining Balance Sheet Nonmajor Enterprise Funds June 30, 2023 Parking Storm Water Total Liabilities Current Liabilities Accounts payable 80,501 51,536 132,037 Current portion of long-term debt 16,436 142,471 158,907 Total current liabilities 96,937 194,007 290,944 Noncurrent LiabilitiesLong-term debt, net of deferred refundings Bonds payable - 1,109,000 1,109,000 Compensated absences - 4,169 4,169 Total OPEB liability 58,266 36,179 94,445 Net pension liability 284,536 480,711 765,247 Total noncurrent liabilities 342,802 1,630,059 1,972,861 Total liabilities 439,739 1,824,066 2,263,805 Deferred Inflows of Resources OPEB plans 14,512 11,988 26,500 Pension plans 20,831 35,192 56,023 Total deferred inflows resources 35,343 47,180 82,523 Net PositionNet investment in capital assets 6,996,621 7,429,707 14,426,328 Restricted for:Parking capital projects 656,242 - 656,242 Unrestricted 906,178 1,551,855 2,458,033 Total net position 8,559,041$ 8,981,562$ 17,540,603$ 637 146 City of Bozeman, Montana Combining Statement of Revenues, Expenses and Changes in Net Position Nonmajor Enterprise Funds June 30, 2023 Parking Storm Water Total Operating Revenues Charges for services 968,042$ 1,883,096$ 2,851,138$ Operating ExpensesSalaries and benefits 510,504 860,498 1,371,002 Materials and supplies 27,760 22,673 50,433 Repairs and maintenance 86,907 17,388 104,295 Utilities 43,935 4,679 48,614 Administrative charges 127,499 443,576 571,075 Other expenses 368,066 125,581 493,647 Depreciation/amortization 400,734 205,581 606,315 Total operating expenses 1,565,405 1,679,976 3,245,381 Operating Income (Loss)(597,363) 203,120 (394,243) Nonoperating Revenues (Expenses)Loss on disposal of assets (14,013) - (14,013) Interest income 43,718 41,202 84,920 Net decrease in fair market value of investments (7,757) (6,281) (14,038) Interest expense and bond fees - (31,475) (31,475) Intergovernmental revenues 7,029 11,876 18,905 Miscellaneous revenue 11,655 - 11,655 Total nonoperatingrevenues (expenses)40,632 15,322 55,954 Income (Loss) before Contributions and Transfers (556,731) 218,442 (338,289) Transfers in - 190,784 190,784 Transfers out - (40,973) (40,973) Capital contributions from other governments - 1,493,232 1,493,232 Change in Net Position (556,731) 1,861,485 1,304,754 Total Net Position, Beginning of Year 9,115,772 7,120,077 16,235,849 Total Net Position, End of Year 8,559,041$ 8,981,562$ 17,540,603$ 638 147 City of Bozeman, Montana Combining Statement of Cash Flows Nonmajor Enterprise Funds June 30, 2023 Parking Storm Water Total Operating ActivitiesReceipts from customers and users 1,080,116$ 1,854,495$ 2,934,611$ Payments to suppliers (523,155) (511,615) (1,034,770) Payments to and on behalf of employees (495,140) (798,940) (1,294,080) Payments to internal service funds and administrat (127,499) (443,576) (571,075) Net cash from (used for) Operating Activities (65,678) 100,364 34,686 Noncapital Financing Activities Transfers to other funds - (40,973) (40,973) Transfers from other funds - 190,784 190,784 Intergovernmental operating grants 7,029 11,876 18,905 Miscellaneous income 11,655 - 11,655 Net Cash from Noncapital Financing Activities 18,684 161,687 180,371 Capital and Related Financing Activities Acquisition of capital assets (119,230) (373,669) (492,899) Debt service Principal - (84,000) (84,000) Interest - (31,475) (31,475) Net Cash Used for Capitaland Related Financing Activities (119,230) (489,144) (608,374) Investing ActivitiesInterest and dividends from investments 33,214 32,236 65,450 Change in Cash and Cash Equivalents (133,010) (194,857) (327,867) Cash and Cash Equivalents, Beginning of Year 2,075,575 2,120,873 4,196,448 Cash and Cash Equivalents, End of Year 1,942,565$ 1,926,016$ 3,868,581$ 639 148 City of Bozeman, Montana Combining Statement of Cash Flows Nonmajor Enterprise Funds June 30, 2023 Parking Storm Water Total Reconciliation of Operating Income (Loss) toNet cash from (used for) Operating ActivitiesOperating income (loss)(597,363)$ 203,120$ (394,243)$ Adjustments to reconcile operating income (loss) to net cash from (used for)operating activitiesDepreciation/amortization 400,734 205,581 606,315 Changes in assets and liabilities Accounts receivable 112,074 (28,682) 83,392 Special assessments receivable - 81 81 Pension related deferred outflows (9,401) (21,247) (30,648) OPEB related deferred outflows 2,680 4,499 7,179 Vouchers payable 3,513 (341,294) (337,781) Compensated absences (235) 10,138 9,903 Net pension liability 85,895 166,456 252,351 Total OPEB liability (5,042) (8,462) (13,504) Pension related deferred inflows (64,110) (99,187) (163,297) OPEB related deferred inflows 5,577 9,361 14,938 Net cash from (used for)Operating Activities (65,678)$ 100,364$ 34,686$ Supplemental Schedule of NoncashInvesting and Financing ActivitiesAcquisition of capital assets throughcapital contributions and donations -$ 1,493,232$ 1,493,232$ 640 149 City of Bozeman, Montana Description of Internal Service Funds Internal Service Funds June 30, 2023 Internal Service Funds are used to account for the goods or services provided by one department to other departments of the City on a cost-reimbursement basis. The City operates the following internal service funds: Vehicle Maintenance Shop – Accounts for the maintenance and repair of vehicles used in operation of City services. Medical Health Insurance – Accounts for insurance premiums received from the various City departments and retirees, and the related costs of health and dental premiums paid to the City’s insurance provider. Public Works Administration – Accounts for the professional level management, engineering, and GIS technical support provided to other Public Works divisions, including water, wastewater, solid waste, stormwater, in addition to support provided to other City departments. 641 150 City of Bozeman, Montana Combining Balance Sheet Internal Service Funds June 30, 2023 Vehicle MedicalMaintenanceHealth Public WorksShopInsuranceAdministration Total Assets Current Assets Cash and cash equivalents -$ -$ 3,142,522$ 3,142,522$ Receivables (net of allowance for uncollectibles):Interest - - 9,582 9,582 Accounts 1,912 15,667 - 17,579 Prepaid items - 525,953 - 525,953 Other assets - - 8,657 8,657 Total current assets 1,912 541,620 3,160,761 3,704,293 Noncurrent AssetsCapital assetsBuildings 1,424,215 - 121,905 1,546,120 Machinery and equipment 217,315 - 528,721 746,036 Vehicles 88,980 - 124,415 213,395 Infrastructure - - 29,314 29,314 Right-of-use lease assets - - 423,122 423,122 Less accumulated depreciation/amortization (873,198) - (545,525) (1,418,723) Total capital assets, net of accumulateddepreciation/amortization 857,312 - 681,952 1,539,264 Total noncurrent assets 857,312 - 681,952 1,539,264 Total assets 859,224 541,620 3,842,713 5,243,557 Deferred Outflows of ResourcesOther postemployment benefits 18,013 - 46,456 64,469 Pension plans 107,432 - 388,562 495,994 Total deferred outflows of resources 125,445 - 435,018 560,463 642 151 City of Bozeman, Montana Combining Balance Sheet Internal Service Funds June 30, 2023 Vehicle MedicalMaintenanceHealth Public WorksShopInsuranceAdministration Total Liabilities Current LiabilitiesAccounts payable 173,915 425 214,935 389,275 Due to other funds 880,942 19,964 - 900,906 Accrued interest payable - - 2,152 2,152 Total current liabilities 1,054,857 20,389 217,087 1,292,333 Noncurrent LiabilitiesLong-term debt, net of current portionLeases payable - - 381,167 381,167 Compensated absences 38,482 - 339,272 377,754 Total OPEB liability 64,711 - 197,523 262,234 Net pension liability 486,803 - 1,924,196 2,410,999 Total noncurrent liabilities 589,996 - 2,842,158 3,432,154 Total liabilities 1,644,853 20,389 3,059,245 4,724,487 Deferred Inflows of ResourcesOther postemployment benefits 16,998 - 65,102 82,100 Pension plans 46,503 - 31,510 78,013 Total deferred inflows resources 63,501 - 96,612 160,113 Net PositionNet investment in capital assets 857,312 - 300,785 1,158,097 Unrestricted (1,580,997) 521,231 821,089 (238,677) Total net position (723,685)$ 521,231$ 1,121,874$ 919,420$ 643 152 City of Bozeman, Montana Combining Statement of Revenues, Expenses and Changes in Net Position Internal Service Funds June 30, 2023 Vehicle MedicalMaintenanceHealth Public WorksShopInsuranceAdministration Total Operating RevenuesCharges for services 2,130,913$ 5,957,109$ 5,668,038$ 13,756,060$ Operating ExpensesSalaries and benefits 832,176 - 4,134,873 4,967,049 Materials and supplies 1,174,519 - 36,992 1,211,511 Repairs and maintenance 23,120 - 13,490 36,610 Utilities 32,276 - 8,562 40,838 Administrative charges 211,794 - 627,029 838,823 Other services 49,058 5,920,760 975,524 6,945,342 Depreciation/amortization 65,015 - 170,368 235,383 Total operating expenses 2,387,958 5,920,760 5,966,838 14,275,556 Operating Income (Loss)(257,045) 36,349 (298,800) (519,496) Nonoperating Revenues (Expenses)Gain (loss) on disposal of assets 12,134 - (11,395) 739 Interest income (13,185) 234 77,836 64,885 Net decrease in fair market value of investments - - (38,460) (38,460) Interest expense and bond fees - - (20,864) (20,864) Intergovernmental revenues 12,031 - 58,758 70,789 Miscellaneous revenue 380 17,659 53,000 71,039 Total nonoperatingrevenues (expenses)11,360 17,893 118,875 148,128 Change in Net Position (245,685) 54,242 (179,925) (371,368) Total Net Position, Beginning of Year (478,000) 466,989 1,301,799 1,290,788 Total Net Position, End of Year (723,685)$ 521,231$ 1,121,874$ 919,420$ 644 153 City of Bozeman, Montana Combining Statement of Cash Flows Internal Service Funds June 30, 2023 Vehicle MedicalMaintenanceHealth Public WorksShopInsuranceAdministration Total Operating ActivitiesReceipts from customers and users 2,129,920$ 5,960,833$ 5,668,038$ 13,758,791$ Payments to suppliers (1,186,744) (5,980,125) (982,666) (8,149,535) Payments to and on behalf of employees (787,050) - (3,902,218) (4,689,268) Payments to internal service funds and administrat (211,794) - (627,029) (838,823) Net Cash (Used for) from Operating Activities (55,668) (19,292) 156,125 81,165 Noncapital Financing Activities Intergovernmental operating grants 12,031 - 58,758 70,789 Miscellaneous income 380 17,659 53,000 71,039 Payments received on interfund borrowing 107,700 1,399 - 109,099 Net Cash from Noncapital Financing Activities 120,111 19,058 111,758 250,927 Capital and Related Financing ActivitiesAcquisition of capital assets (51,258) - (54,923) (106,181) Debt servicePrincipal - - (95,743) (95,743) Interest - - (18,712) (18,712) Net Cash Used for Capital and Related Financing Activities (51,258) - (169,378) (220,636) Investing ActivitiesInterest and dividends from investments (13,185) 234 33,347 20,396 Change in Cash and Cash Equivalents - - 131,852 131,852 Cash and Cash Equivalents, Beginning of Year - - 3,010,670 3,010,670 Cash and Cash Equivalents, End of Year -$ -$ 3,142,522$ 3,142,522$ 645 154 City of Bozeman, Montana Combining Statement of Cash Flows Internal Service Funds June 30, 2023 Vehicle MedicalMaintenanceHealth Public WorksShopInsuranceAdministration Total Reconciliation of Operating Income (Loss) toNet Cash (Used for) from Operating ActivitiesOperating income (loss)(257,045)$ 36,349$ (298,800)$ (519,496)$ Adjustments to reconcile operating income (loss) to net cash (used for) from operating activities Depreciation/amortization 65,015 - 170,368 235,383 Changes in assets and liabilities Accounts receivable (993) 3,724 - 2,731 Prepaid expenses - (59,417) - (59,417) Other assets - - (8,657) (8,657) Pension related deferred outflows (16,270) - (79,460) (95,730) OPEB related deferred outflows 4,820 - 21,370 26,190 Vouchers payable 92,229 52 60,559 152,840 Compensated absences 17,313 - 99,422 116,735 Net pension liability 147,724 - 721,474 869,198 Total OPEB liability (9,066) - (40,197) (49,263) Pension related deferred inflows (109,425) - (534,421) (643,846) OPEB related deferred inflows 10,030 - 44,467 54,497 Net cash (used for) fromoperating activities (55,668)$ (19,292)$ 156,125$ 81,165$ Supplemental Schedule of Noncash Investing and Financing Activities Acquisition of capital assets through debt -$ -$ 70,767$ 70,767$ 646 155 City of Bozeman, Montana Description of Funds Custodial Funds June 30, 2023 Custodial funds are used to account for assets held by the City as an agent for individuals, private organizations, and other governments. Custodial funds are used to report fiduciary activities that are not required to be reported in pension (or other employee benefit) trust funds, investment trust funds, or private-purpose trust funds. The City has the following custodial funds: Municipal Court Trust Fund – Accounts for monies held for appearance bonds and restitution to criminal arrests and reimbursement for damage caused. Tourism Business Improvement District – Accounts for amounts collected from hotels on behalf of the District, a special-purpose government, whose purpose is to enhance the economic vitality of Bozeman by promoting tourism through sales and marketing strategies. 647 156 City of Bozeman, Montana Combining Statement of Fiduciary Net Position Custodial Funds June 30, 2023 Tourism Business Municipal ImprovementCourtDistrict Total AssetsCash and investments 575,276$ 50,170$ 625,446$ Receivables (net of allowance for uncollectibles): Accounts 2,692 - 2,692 Total assets 577,968 50,170 628,138 LiabilitiesDeposits payable 580,359 - 580,359 Net PositionRestricted forOther organization or individuals (2,391)$ 50,170$ 47,779$ 648 157 City of Bozeman, Montana Combining Statement of Changes in Fiduciary Net Position Custodial Funds June 30, 2023 Tourism Business Municipal ImprovementCourtDistrict Total Additions Miscellaneous 572$ -$ 572$ Deductions Total deductions - - - Change in Net Position 572 - 572 Net Position, Beginning (2,963) 50,170 47,207 Net Position, Ending (2,391)$ 50,170$ 47,779$ 649 Statistical Section Year Ended June 30, 2023 City of Bozeman, Montana 650 158 City of Bozeman, Montana Introduction to Statistical Section For the Year Ended June 30, 2023 This part of the City of Bozeman's annual comprehensive financial report presents detailed information as a context for understanding what the information in the financial statements, note disclosures, and required supplementary information says about the City's overall financial health. Financial Trends – These schedules contain trend information to help the reader understand and assess how the government’s financial position has changed over time. Components of Net Position ......................................................................................................................... 160 Changes in Net Position ................................................................................................................................ 161 Fund Balances of Governmental Funds ......................................................................................................... 164 Changes in Fund Balances of Governmental Funds ....................................................................................... 165 Revenue Capacity – These schedules contain information to assist the reader in understanding and assessing the factors affecting the government’s ability to generate its own-source revenues. Assessed Value of Taxable Property .............................................................................................................. 166 City Taxable Market and Taxable Values ....................................................................................................... 167 Tax Increment District Taxable Valuation Detail ............................................................................................ 168 Downtown Bozeman Improvement District & Comparison to City Taxable Value .......................................... 171 Property Tax Levies for Tax Increment/Urban Renewal Districts ................................................................... 172 Direct and Overlapping Property Tax Rates ................................................................................................... 173 Principal Property Taxpayers ........................................................................................................................ 174 Principal Property Taxpayers in Downtown Bozeman Improvement District ................................................. 175 Properties in the Bozeman Midtown Urban Renewal District ........................................................................ 176 Principal Property Taxpayers in Downtown Bozeman Midtown Urban Renewal District ................................ 177 Property Tax Levies and Collections .............................................................................................................. 178 Water Sold by Type of Customer................................................................................................................... 179 Water and Sewer Rates ................................................................................................................................ 180 Debt Capacity – These schedules present information to help the reader assess the affordability of the government’s current levels of outstanding debt and the government’s ability to issue additional debt in the future. Ratios of Outstanding Debt by Type .............................................................................................................. 181 Ratios of General Bonded Debt Outstanding ................................................................................................. 182 Computation of Direct and Overlapping Debt ............................................................................................... 183 Legal Debt Margin Information ..................................................................................................................... 184 Pledged Revenue Coverage – Governmental Activities .................................................................................. 185 Pledged Revenue Coverage – Business-Type Activities .................................................................................. 186 Debt Service Requirements and Coverage for Tax Increment Districts........................................................... 187 Summary of Outstanding SIDs ....................................................................................................................... 188 Revolving Fund Balance and Bond Secured Thereby...................................................................................... 189 Special Improvement District Assessment Billing and Collections .................................................................. 190 651 159 City of Bozeman, Montana Introduction to Statistical Section For the Year Ended June 30, 2023 Demographic and Economic Information – These schedules offer demographic and economic information to (1) assist the reader in understanding the socioeconomic environment within which a government operates and (2) provide information that facilitates comparisons of financial statement information over time and among governments. Demographic and Economic Statistics ........................................................................................................... 191 Principal Employers ...................................................................................................................................... 192 Operating Information – These schedules contain service and infrastructure data to help the reader understand how the information in the government’s financial report relates to the services the government provides and the activities it performs. Full-Time Equivalent City Government Employees by Function/Program ...................................................... 193 Operating Indicators by Function/Program ................................................................................................... 194 Capital Assets Statistics by Function/Program ............................................................................................... 195 Sources: Unless otherwise noted, the information in these schedules is derived from the annual comprehensive financial reports for the relevant year. 652 160 City of Bozeman, Montana Components of Net Position Last Ten Fiscal Years (Accrual Basis of Accounting) 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 Governmental ActivitiesNet investment in capital assets 89,267,076$ 93,409,850$ 104,342,191$ 115,696,956$ 137,058,945$ 155,191,911$ 118,577,368$ 196,931,242$ 217,241,690$ 236,885,005$ Restricted 35,621,803 41,755,126 42,829,320 41,583,992 36,522,195 21,202,050 69,208,376 68,458,112 55,321,501 46,965,688 Unrestricted 12,127,224 (5,137,642) (3,923,466) (4,839,467) (5,514,909) 4,799,426 27,280,681 (31,383,436) (15,708,281) 7,527,542 Total Governmental Activities Net Position 137,016,103 130,027,334 143,248,045 152,441,481 168,066,231 181,193,387 215,066,425 234,005,918 256,854,910 291,378,235 Business-Type ActivitiesNet investment in capital assets 205,501,357 211,419,777 221,385,655 229,372,281 239,254,236 245,190,586 260,124,896 271,812,360 286,461,913 297,691,119 Restricted 3,372,927 4,977,984 4,990,635 8,866,951 13,070,517 12,671,931 12,307,565 14,839,596 29,337,941 31,659,041 Unrestricted 8,723,353 6,619,399 10,582,408 9,154,014 12,923,470 21,053,523 25,801,918 23,152,084 14,910,714 15,428,360 Total Business-Type Activities Net Position 217,597,637 223,017,160 236,958,698 247,393,246 265,248,223 278,916,040 298,234,379 309,804,040 330,710,568 344,778,520 Primary GovernmentNet investment in capital assets 294,768,433 304,829,627 325,727,846 345,069,237 376,313,181 400,382,497 378,702,264 468,743,602 503,703,603 534,576,124 Restricted 38,994,730 46,733,110 47,819,955 50,450,943 49,592,712 33,873,981 81,515,941 83,297,708 84,659,442 78,624,729 Unrestricted 20,850,577 1,481,757 6,658,942 4,314,547 7,408,561 25,852,949 53,082,599 (8,231,352) (797,567) 22,955,902 Total Primary Government Net Position 354,613,740$ 353,044,494$ 380,206,743$ 399,834,727$ 433,314,454$ 460,109,427$ 513,300,804$ 543,809,958$ 587,565,478$ 636,156,755$ Fiscal Year 653 161 City of Bozeman, Montana Changes in Net Position Last Ten Fiscal Years (Accrual Basis of Accounting) 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 Expenses Governmental ActivitiesGeneral government 6,989,830$ 7,417,644$ 8,058,925$ 9,415,702$ 9,896,366$ 10,310,075$ 9,854,245$ 11,517,404$ 12,352,494$ 17,726,413$ Public safety 15,297,088 17,023,578 18,391,357 17,689,004 18,637,422 19,699,377 20,664,687 22,698,030 22,442,450 28,002,592 Public works 6,031,768 6,458,930 6,861,939 7,857,917 8,615,272 9,850,802 9,781,345 11,018,661 12,176,141 14,646,742 Public health and welfare 7,417,158 7,579,653 7,994,697 9,210,264 9,476,010 9,658,817 10,354,632 13,429,890 16,211,729 15,343,285 Interest and fiscal charges 179,280 824,266 893,470 771,714 781,255 786,236 1,763,155 2,105,985 2,051,119 2,070,117 Total governmental activities expenses 35,915,124 39,304,071 42,200,388 44,944,601 47,406,325 50,305,307 52,418,064 60,769,970 65,233,933 77,789,149 Business-Type ActivitiesWater 6,869,870 7,995,910 9,273,395 9,740,629 9,832,508 9,984,114 9,807,970 10,687,976 11,604,238 13,882,728 Waste water 8,955,592 6,940,983 8,163,312 8,590,477 8,548,138 9,291,509 9,209,689 10,209,279 10,849,992 11,979,470 Solid waste 6,958,209 3,308,441 4,570,884 4,262,650 4,535,865 4,739,710 4,665,613 4,991,829 5,220,011 7,980,984 Parking 805,274 789,186 830,869 897,278 1,133,777 1,119,466 1,304,465 1,183,693 1,360,611 1,565,405 Stormwater 161,180 309,585 469,743 930,444 878,173 924,282 1,051,497 985,732 1,243,760 1,711,451 Total business-type activities expenses 23,750,125 19,344,105 23,308,203 24,421,478 24,928,461 26,059,081 26,039,234 28,058,509 30,278,612 37,120,038 Total Primary Government Expenses 59,665,249$ 58,648,176$ 65,508,591$ 69,366,079$ 72,334,786$ 76,364,388$ 78,457,298$ 88,828,479$ 95,512,545$ 114,909,187$ Fiscal Year 654 162 City of Bozeman, Montana Changes in Net Position (continued) Last Ten Fiscal Years (Accrual Basis of Accounting) Program Revenues Governmental ActivitiesCharges for servicesGeneral government 2,453,015$ 1,947,445$ 2,530,474$ 2,683,016$ 3,139,427$ 3,777,184$ 3,546,689$ 4,380,033$ 5,472,678$ 7,128,575$ Public safety 3,290,573 3,211,911 3,347,859 3,175,257 2,234,994 4,158,560 4,020,453 4,260,366 4,317,541 4,942,022 Public works 7,623,178 8,784,447 9,310,147 10,342,921 15,531,304 12,189,258 16,522,229 18,836,107 19,176,512 22,563,519 Public health and welfare 613,322 1,097,845 1,213,526 1,414,394 1,593,025 1,724,864 1,567,557 5,294,909 6,833,910 1,687,204 Operating grants and contributions 457,354 2,254,052 2,494,244 2,715,986 3,021,400 5,419,871 7,622,415 12,156,812 7,707,580 12,843,761 Capital grants and contributions 4,762,416 2,960,051 5,018,559 2,667,352 7,651,008 6,593,221 15,429,642 4,518,830 12,153,695 14,514,120 Total governmental activities program revenues 19,199,858 20,255,751 23,914,809 22,998,926 33,171,158 33,862,958 48,708,985 49,447,057 55,661,916 63,679,201 Business-Type ActivitiesCharges for servicesWater 9,842,699 9,969,058 11,935,016 11,166,944 12,915,454 11,438,495 11,913,879 13,970,784 15,431,185 14,886,895 Waste water 8,852,738 9,008,247 9,283,600 9,668,524 10,686,506 10,445,185 10,671,361 11,691,165 12,684,974 12,343,552 Solid waste 2,725,465 2,953,414 2,617,243 3,613,721 3,926,123 4,228,099 4,631,523 4,969,868 5,431,005 5,872,630 Parking 602,838 576,357 597,238 878,458 958,378 958,504 1,028,036 1,005,788 1,062,010 968,042 Stormwater 262,781 304,906 943,621 1,293,941 1,324,461 1,349,678 1,429,449 1,519,994 1,673,866 1,883,096 Operating grants and contributions 9,596 123,439 134,946 169,509 134,523 83,264 104,868 243,536 1,511,436 1,435,529 Capital grants and contributions 5,898,923 6,385,418 11,287,654 7,774,707 9,944,719 8,324,760 13,312,504 5,427,166 13,064,462 11,084,423 Total business-type activitiesprogram revenues 28,195,040 29,320,839 36,799,318 34,565,804 39,890,164 36,827,985 43,091,620 38,828,301 50,858,938 48,474,167 Total Primary Government Program Revenues 47,394,898$ 49,576,590$ 60,714,127$ 57,564,730$ 73,061,322$ 70,690,943$ 91,800,605$ 88,275,358$ 106,520,854$ 112,153,368$ Net Revenue (Expense) Governmental Activities (16,715,266)$ (19,048,320)$ (18,285,579)$ (21,945,675)$ (14,235,167)$ (16,442,349)$ (3,709,079)$ (11,322,913)$ (9,572,017)$ (14,109,948)$ Business-Type Activities 4,444,915 9,976,734 13,491,115 10,144,326 14,961,703 10,768,904 17,052,386 10,769,792 20,580,326 11,354,129 Total Primary Government Net Revenue (Expense)(12,270,351)$ (9,071,586)$ (4,794,464)$ (11,801,349)$ 726,536$ (5,673,445)$ 13,343,307$ (553,121)$ 11,008,309$ (2,755,819)$ 655 163 City of Bozeman, Montana Changes in Net Position (continued) Last Ten Fiscal Years (Accrual Basis of Accounting) 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 General Revenues and Other Changes in Net Position Governmental ActivitiesProperty taxes 17,561,022$ 20,203,718$ 21,234,288$ 21,708,812$ 22,532,724$ 23,823,994$ 28,308,301$ 27,115,391$ 29,432,001$ 39,860,197$ Unrestricted intergovernmental 7,436,419 7,699,711 7,992,180 8,372,625 6,171,297 4,658,177 4,859,238 4,956,187 5,099,529 5,370,015 Unrestricted investment earnings (losses)355,790 403,152 519,637 554,870 64,058 1,490,286 1,604,365 428,653 (1,685,354) 1,118,619 Miscellaneous 293,884 374,966 418,215 1,317,137 2,320,536 1,009,437 1,128,061 (1,722,976) 520,517 1,225,899 Gain (loss) on disposal of capital asset 236,688 - 123,934 (71,335) 28,861 167,291 16,862 20,072 (15,735) 2,726,201 Transfers (10,000) (410,016) 1,218,036 (742,999) (758,084) (475,000) (546,353) (534,921) (1,396,976) (1,667,658) Total governmental activities 25,873,803 28,271,531 31,506,290 31,139,110 30,359,392 30,674,185 35,370,474 30,262,406 31,953,982 48,633,273 Business-Type ActivitiesUnrestricted investment earnings - - - 304,231 3,389 1,010,849 846,331 38,987 (1,291,575) 833,995 Miscellaneous 390,700 - - 1,256,284 2,529,824 362,631 518,162 233,508 219,770 226,026 (Loss) gain on disposal of capital asset - - - (2,013,292) 10,005 (172,428) 4,012 17,918 1,031 (13,856) Transfers 10,000 380,347 (1,218,036) 742,999 758,084 475,000 546,353 534,921 1,396,976 1,667,658 Total business-type activities 400,700 380,347 (1,218,036) 290,222 3,301,302 1,676,052 1,914,858 825,334 326,202 2,713,823 Total Primary Government 26,274,503$ 28,651,878$ 30,288,254$ 31,429,332$ 33,660,694$ 32,350,237$ 37,285,332$ 31,087,740$ 32,280,184$ 51,347,096$ Change in Net Position Governmental Activities 9,158,537$ 9,223,211$ 13,220,711$ 9,193,435$ 16,124,225$ 14,231,836$ 31,661,395$ 18,939,493$ 22,381,965$ 34,523,325$ Business-Type Activities 4,845,615 10,357,081 12,273,079 10,434,548 18,263,005 12,444,956 18,967,244 11,595,126 20,906,528 14,067,952 Total Primary Government Change in Net Position 14,004,152$ 19,580,292$ 25,493,790$ 19,627,983$ 34,387,230$ 26,676,792$ 50,628,639$ 30,534,619$ 43,288,493$ 48,591,277$ Fiscal Year 656 164 City of Bozeman, Montana Fund Balances of Governmental Funds Last Ten Fiscal Years (Modified Accrual Basis of Accounting) 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 General FundNonspendable -$ -$ -$ -$ -$ -$ -$ -$ -$ 37,167$ Committed - - - - - - - - - 6,087,489 Assigned 6,420,760 6,061,965 5,541,841 6,402,882 7,739,020 7,739,582 8,110,313 9,313,580 8,708,695 - Unassigned 193,534 - 979,258 87,274 (274,252) - 1,030,550 (130,315) (107,076) 8,953,349 Total General Fund 6,614,294$ 6,061,965$ 6,521,099$ 6,490,156$ 7,464,768$ 7,739,582$ 9,140,863$ 9,183,265$ 8,601,619$ 15,078,005$ All Other Governmental FundsNonspendable 1,269,557$ 2,061,790$ 1,426,575$ 1,533,338$ 1,623,816$ 1,735,591$ 1,796,174$ 1,884,479$ 1,919,979$ 1,804,399$ Restricted 19,927,526 12,546,935 39,856,356 38,938,127 34,403,744 23,129,241 65,273,723 61,818,904 55,582,529 60,797,482 Committed 3,075,505 3,088,936 3,528,263 3,901,694 3,856,238 4,279,091 4,328,163 3,621,644 3,168,927 603,360 Assigned 229,602 - 7,425,398 7,259,749 1,868,485 1,293,436 578,852 96,473 134,135 2,927,964 Unassigned (184,101) (97,173) 914,535 107,103 (42,648) 8,731,534 (125,584) 662,773 (312,180) (302,973) Total All Other Governmental Funds 24,318,089$ 17,600,488$ 53,151,127$ 51,740,011$ 41,709,635$ 39,168,893$ 71,851,328$ 68,084,273$ 60,493,390$ 65,830,232$ Fiscal Year 657 165 City of Bozeman, Montana Changes in Fund Balances of Governmental Funds Last Ten Fiscal Years (Modified Accrual Basis of Accounting) Fiscal Year 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 RevenuesTaxes 17,385,371$ 20,404,236$ 21,303,074$ 21,682,667$ 22,553,972$ 23,788,018$ 28,321,349$ 26,973,106$ 29,607,197$ 39,657,027$ Special assessments 2,011,944 1,578,855 1,265,954 1,163,275 1,137,103 1,116,925 1,390,355 1,676,909 1,616,318 1,293,350 Licenses and permits 1,784,282 1,827,842 2,112,090 2,092,673 2,541,727 2,392,081 2,524,368 2,902,616 2,850,060 3,542,188 Intergovernmental 8,208,770 8,562,937 8,920,424 8,956,044 9,419,104 10,488,662 12,600,824 15,297,152 12,638,682 18,089,987 Charges for services 9,656,123 10,629,791 12,283,683 13,743,830 17,885,529 16,987,622 20,142,910 24,847,833 30,095,236 30,136,508 Fines and forfeitures 1,411,162 1,305,166 1,253,705 1,256,525 1,240,154 1,234,324 1,199,601 1,168,880 1,053,196 1,069,270 Investment income (losses)329,086 370,305 479,699 520,690 34,709 1,439,743 1,343,201 155,647 (1,885,520) 1,092,193 Loan repayments 63,980 94,989 38,552 31,837 25,827 31,695 44,930 38,276 53,539 30,346 Miscellaneous 287,089 363,274 415,646 1,307,668 2,313,097 995,553 1,790,144 1,766,620 2,712,894 2,031,152 Total revenues 41,137,807 45,137,395 48,072,827 50,755,209 57,151,222 58,474,623 69,357,682 74,827,039 78,741,602 96,942,021 ExpendituresGeneral government 6,138,575 6,594,474 7,318,539 7,643,886 8,268,285 8,782,078 9,280,183 10,449,026 11,891,184 15,001,137 Public safety 14,637,886 15,086,695 16,485,549 16,812,131 17,602,966 18,005,944 19,598,592 19,778,375 22,104,511 25,534,451 Public works 3,498,770 3,786,283 3,840,405 4,422,771 4,955,559 5,774,783 5,376,499 5,868,383 6,977,080 8,454,661 Public health & welfare 6,678,347 7,366,955 7,245,425 7,654,059 7,975,354 8,339,885 9,046,331 11,690,142 14,598,944 13,296,225 Other 1,046,712 1,113,340 418,431 506,169 655,532 728,642 665,517 3,500,760 2,204,370 1,836,292 Capital outlay 8,053,456 9,905,333 9,337,470 12,468,020 18,420,501 19,106,110 24,265,809 32,608,736 30,801,575 17,918,459 Debt servicePrincipal 1,482,142 1,121,593 1,345,250 1,422,555 1,500,687 1,635,369 6,639,947 3,188,603 2,969,165 3,927,518 Interest and fiscal charges 380,950 824,266 893,470 771,714 718,597 786,238 1,763,155 2,105,985 2,051,119 2,304,135 Total expenditures 41,916,838 45,798,939 46,884,539 51,701,305 60,097,481 63,159,049 76,636,033 89,190,010 93,597,948 88,272,878 Excess (Deficiency) ofRevenues over (under)Expenditures (779,031) (661,544) 1,188,288 (946,096) (2,946,259) (4,684,426) (7,278,351) (14,362,971) (14,856,346) 8,669,143 Other Financing Sources (Uses)Transfers in 3,103,787 4,816,671 6,483,413 3,950,059 4,394,277 4,202,825 8,867,568 5,976,400 10,802,182 23,487,954 Transfers out (3,113,787) (5,197,018) (5,496,492) (4,693,058) (5,152,361) (4,677,825) (9,413,920) (6,511,321) (12,199,158) (25,155,612) Bonds issued 10,012,647 5,619,361 47,406 234,702 1,103,586 2,859,598 41,878,844 10,501,000 7,045,000 - Premium (discount) on bonds - - - - - - - 649,009 515,591 - Leases and other debt issued - - - - - - - - 19,833 2,011,672 Sale of capital assets 243,092 64,855 227,984 43,277 35,144 33,898 29,567 23,744 34,836 2,800,071 Total other financingsources (uses)10,245,739 5,303,869 1,262,311 (465,020) 380,646 2,418,496 41,362,059 10,638,832 6,218,284 3,144,085 Net Change inFund Balances 9,466,708$ 4,642,325$ 2,450,599$ (1,411,116)$ (2,565,613)$ (2,265,930)$ 34,083,708$ (3,724,139)$ (8,638,062)$ 11,813,228$ 658 166 City of Bozeman, Montana Assessed Value of Taxable Property Last Ten Fiscal Years AssessedTaxable ValueFiscal Year Commercial as a PercentageEndedResidentialand Industrial Total Taxable Total Direct Total Market of Total MarketJune 30,Property Property Other Property Assessed Value*Tax Rate Value**Value 2023 89,925,341$ 58,735,884$ 11,120,831$ 159,782,056$ 204.50 11,021,338,679$ 1.450% 2022 87,432,389 57,107,580 10,812,534 155,352,503 154.12 10,724,564,866 1.449% 2021 72,903,489 47,617,844 9,015,783 129,537,116 169.48 8,875,762,356 1.459% 2020 70,588,175 46,105,567 8,729,455 125,423,197 188.45 8,596,253,775 1.459% 2019 58,712,093 38,348,553 7,260,771 104,321,417 191.24 6,981,943,409 1.494% 2018 56,952,419 37,199,199 7,043,156 101,194,774 187.33 6,745,351,312 1.500% 2017 52,777,954 30,966,657 6,013,815 89,758,426 205.30 5,870,738,906 1.529% 2016 50,899,738 29,864,642 5,799,800 86,564,180 210.16 5,698,588,679 1.519% 2015 50,978,520 31,641,840 5,273,640 87,894,000 188.76 3,598,269,877 2.443% 47,956,720 32,542,060 5,138,220 85,637,000 173.08 3,386,295,608 2.529%2014 Source: Based on information provided by Gallatin County and Montana Department of Revenue Note: Property in Gallatin County is reassessed by the State Department of Revenue every two years. * Includes tax-exempt property ** Sales price of property is not public record in the State of Montana, so the Total Market Value was used instead 659 167 City of Bozeman, Montana City Taxable Market and Taxable Values Last Ten Fiscal Years Net Taxable Value (Excludes Incremental Tax Increment Fiscal Year Value for All Districts Taxable ValueEndedTaxableFullTax Increment Incremental for Open SpaceJune 30,Market Value Taxable Value Districts Values) Purposes 2023 11,021,338,679$ 171,848,662$ 12,066,606$ 159,782,056$ 172,444,905$ 2022 10,724,564,866 166,838,141 11,485,638 155,352,503 164,979,565 2021 8,875,762,356 137,983,427 8,446,311 129,537,116 137,765,762 2020 8,596,253,775 133,582,036 8,158,839 125,423,197 133,391,037 2019 6,981,943,409 109,713,782 5,392,365 104,321,417 191,152,592 2018 6,745,351,312 106,224,806 5,030,032 101,194,774 105,727,520 2017 5,870,738,906 94,102,761 4,344,335 89,758,426 93,212,816 2016 5,698,588,679 90,787,797 4,223,617 86,564,180 91,973,923 2015 3,598,269,877 92,081,322 4,187,322 87,894,000 90,735,030 3,386,295,608 89,650,917 4,013,917 85,637,000 85,615,328 2014 Source: Based on information provided by Gallatin County and Montana Department of Revenue Note: Property is assessed by the State Department of Revenue every two years. 660 168 City of Bozeman, Montana Tax Increment District Taxable Valuation Detail Last Ten Fiscal Years Fiscal YearEnded Incremental Incremental IncrementalJune 30,Base Taxable Taxable Total Taxable Base Taxable Taxable Total Taxable Base Taxable Taxable Total Taxable 2023 1,328,695$ 8,245,319$ 9,574,014$ 423,054$ 660,471$ 1,083,525$ 3,507,723$ 2,751,885$ 6,259,608$ 2022 1,328,695 7,893,562 9,222,257 423,054 636,368 1,059,422 3,507,723 2,589,893 6,097,616 2021 1,328,695 6,247,663 7,576,358 423,054 477,252 900,306 3,507,723 1,707,571 5,215,294 2020 1,328,695 5,987,410 7,316,105 423,054 457,274 880,328 3,507,723 1,714,155 5,221,878 2019 1,328,695 4,159,996 5,488,691 423,054 229,047 652,101 3,507,723 982,574 4,490,297 2018 1,328,695 3,769,917 5,098,612 423,054 223,765 646,819 3,507,723 948,746 4,456,469 2017 1,328,695 3,068,902 4,397,597 423,054 193,281 616,335 3,473,127 1,003,546 4,476,673 2016 1,328,695 2,898,551 4,227,246 423,054 214,470 637,524 2,886,997 1,055,385 3,942,382 2015 1,328,695 2,718,220 4,046,915 423,054 190,579 613,633 2,886,997 1,225,604 4,112,601 1,328,695 2,586,963 3,915,658 423,054 172,608 595,662 2,886,997 1,193,297 4,080,294 2014 Bozeman Downtown Northeast Renewal District Bozeman Midtown* Source: Based on information provided by Gallatin County and Montana Department of Revenue Note: Property is assessed by the State Department of Revenue every two years. *Previously North 7th Corridor 661 169 City of Bozeman, Montana Tax Increment District Taxable Valuation Detail (continued) Last Ten Fiscal Years Fiscal YearEnded Incremental Incremental IncrementalJune 30,Base Taxable Taxable Total Taxable Base Taxable Taxable Total Taxable Base Taxable Taxable Total Taxable 2023 244,332$ 37,133$ 281,465$ 417$ 56,410$ 56,827$ 1,137,056$ 315,388$ 1,452,444$ 2022 244,332 53,750 298,082 417 56,410 56,827 1,137,056 255,655 1,392,711 2021 244,332 13,824 258,156 417 - 417 - - - 2020 244,332 - 244,332 417 - 417 - - - - 2019 244,332 20,749 265,081 417 - 417 - - - 2018 - - - 417 - 417 - - - 2017 - - - 417 - 417 - - - - 2016 - - - 417 - 417 - - - 2015 - - - 417 3 420 - - - - - - 417 - 417 - - - 2014 Pole Yard Urban Renewal***Bozeman TechnologyNorth Park Urban Renewal** Source: Based on information provided by Gallatin County and Montana Department of Revenue Note: Property is assessed by the State Department of Revenue every two years. **New District created in fiscal year 2019 ***New District created in fiscal year 2022 662 170 City of Bozeman, Montana Tax Increment District Taxable Valuation Detail (continued) Last Ten Fiscal Years Fiscal Year TotalEndedIncrementalJune 30,Base Taxable Taxable Total Taxable 2023 6,641,277$ 12,066,606$ 18,707,883$ 2022 6,641,277 11,485,638 18,126,915 2021 5,504,221 8,446,310 13,950,531 2020 5,504,221 8,158,839 13,663,060 2019 5,504,221 5,392,366 10,896,587 2018 5,259,889 4,942,428 10,202,317 2017 5,225,293 4,265,729 9,491,022 2016 4,639,163 4,168,406 8,807,569 2015 4,639,163 4,134,406 8,773,569 4,639,163 3,952,868 8,592,031 2014 Source: Based on information provided by Gallatin County and Montana Department of Revenue Note: Property is assessed by the State Department of Revenue every two years. 663 171 City of Bozeman, Montana Downtown Bozeman Improvement District & Comparison to City Taxable Value Last Ten Fiscal Years City Taxable The District'sValue Incremental Taxable (Excluding ALL Taxable ValueFiscal Year Market Value of Taxable Value Tax Increment as a PercentageEndedProperty in the of Property Incremental District of the City's June 30,District in the District Taxable Value Valuations)Taxable Value 2023 607,434,219$ 9,574,014$ 8,245,319$ 159,782,056$ 5.16% 2022 580,867,055 9,222,257 7,893,562 155,352,503 5.08% 2021 465,530,358 7,576,358 6,247,663 129,537,116 4.82% 2020 447,565,041 7,316,105 5,987,410 125,423,197 4.77% 2019 319,728,707 5,488,691 4,159,996 104,321,417 3.99% 2018 297,005,720 5,098,612 3,769,917 101,194,774 3.73% 2017 265,793,431 4,397,597 3,068,902 89,758,426 3.42% 2016 259,138,001 4,227,246 2,898,551 86,564,180 3.35% 2015 190,128,511 4,046,915 2,718,220 87,894,000 3.09% 153,063,721 3,915,658 2,586,963 85,637,000 3.02%2014 Downtown Bozeman Improvement District Source: Based on information provided by Gallatin County and Montana Department of Revenue Note: Property is assessed by the State Department of Revenue every two years. 664 172 City of Bozeman, Montana Property Tax Levies for Tax Increment/Urban Renewal Districts Last Ten Fiscal Years Fiscal Year Taxing Entity 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 Statewide School Equalization 40.00 40.00 40.00 40.00 40.00 40.00 40.00 40.00 40.00 40.00 Gallatin County Operating and Bond 88.38 89.55 99.77 100.41 91.23 98.87 91.17 99.09 93.48 95.05 Open Space Bond 4.90 4.95 5.03 5.85 5.13 4.69 3.90 4.04 3.74 2.30 County-Wide School 101.28 99.94 106.85 105.39 99.67 102.44 96.45 96.74 91.29 89.58 Bozeman High School Distrct 73.16 72.97 76.76 77.25 73.10 108.95 92.77 97.61 84.86 86.05 Bozeman Elemenatary School District 145.25 143.70 151.15 154.81 146.92 142.63 125.90 121.74 101.99 102.09 City of Bozeman 173.08 188.76 210.16 205.30 187.33 191.24 187.70 163.62 152.12 204.50 Total revenues 626.05 639.87 689.72 689.01 643.38 688.82 637.89 622.84 567.48 619.57 Exempt from Tax Increment University Millage 6.00 6.00 6.00 6.00 6.00 6.00 6.00 6.00 6.00 6.00 Gallatin Conservation District 0.97 0.95 1.05 1.01 0.89 0.91 0.77 - - - County-Wide Planning 2.39 2.35 2.39 2.39 2.48 2.50 2.22 1.48 2.18 2.23 Source: Based on information provided by Gallatin County and Montana Department of Revenue Note: Property is assessed by the State Department of Revenue every six years and beginning in 2017 every two years. 665 173 City of Bozeman, Montana Direct and Overlapping Property Tax Rates Last Ten Fiscal Years Fiscal Year GeneralEndedObligation Total Direct Bozeman School Gallatin State ofJune 30,Basic Rate Debt Service Tax Rate District County Montana 2023 181.15 23.35 204.50 254.11 179.89 93.48 2022 131.89 22.23 154.12 219.35 195.83 46.00 2021 140.73 28.75 169.48 218.67 191.52 46.00 2020 162.82 25.63 188.45 251.58 206.00 46.00 2019 178.22 13.02 191.24 220.02 223.33 46.00 2018 173.92 13.41 187.33 232.06 241.69 46.00 2017 190.17 15.13 205.30 227.91 241.69 46.00 2016 194.51 15.65 210.16 216.67 215.78 46.00 2015 177.52 11.24 188.76 218.41 221.00 46.00 164.83 8.25 173.08 203.26 215.10 46.00 2014 Source: Based on information provided by Gallatin County and Department of Revenue 666 174 City of Bozeman, Montana Principal Property Taxpayers Current Year and Nine Years Ago Percentage of Percentage ofTotal City Total CityTaxableTaxableTaxableTaxableAssessedAssessedAssessedAssessedTaxpayerValuationRankValuation Valuation Rank Valuation Northwestern Energy - T & D 8,620,846$ 1 5.40%3,668,602$ 1 4.28% Plato MT I Propco LLC 1,080,146 2 0.68%- N/A N/A Charter Communications Inc 745,534 3 0.47%- N/A N/A GKT Bozeman Gateway LLC 623,384 4 0.39%- N/A N/A Verizon Inc 605,249 5 0.38%555,252 4 0.65% Billings Clinic 593,261 6 0.37%- N/A N/A Cannery District Partners LLC 571,306 7 0.36%- N/A N/A Bozeman Apartment Group LLC 560,417 8 0.35%- N/A N/A Springs VII at Bozeman LLC 546,620 9 0.34%- N/A N/A GKT Gallatin Shopping Center VM LLC 507,025 10 0.32%- N/A N/A Qwest Corporation - N/A N/A 1,040,298 2 1.21% Bresnan Communications - N/A N/A 813,246 3 0.95% Harry Daum - Gallatin Mall - N/A N/A 500,755 5 0.58% Stone Ridge Partners LLC - N/A N/A 468,297 6 0.55% J & D Family LLLP - N/A N/A 350,638 7 0.41% Bridger Peaks Holding LLC - N/A N/A 350,440 8 0.41% First Security Bank - N/A N/A 349,000 9 0.41% Wal-Mart Stores Inc - N/A N/A 338,929 10 0.40% Total attributable to top taxpayers 14,453,788 9.05%8,435,457 9.85% Total of all other properties 145,328,268 90.95%77,201,543 90.15% 159,782,056$ 100.00%85,637,000$ 100.00% 2023 2014 Source: Gallatin County Treasurer 667 175 City of Bozeman, Montana Principal Property Taxpayers in Downtown Bozeman Improvement District Current Year and Prior Year Percentage of Percentage ofTotal City Total CityTaxableTaxableTaxableTaxableAssessedAssessedAssessedAssessedTaxpayerBusinessValuationRankValuation Valuation Rank Valuation ETHA Hotel LLC Property Investor/Developer 479,342$ 1 5.01%479,342$ 1 5.20% Straight Away Bozeman Investo Commercial 401,588 2 4.19%- N/A N/A G25 Holdings LLC Property Investor/Developer 332,967 3 3.48%332,967 2 3.61% First Security Bank Bank 283,859 4 2.96%282,549 3 3.06% 106 East Babcock LLC Multi-Tenant Commercial/Residential Building 216,271 5 2.26%192,174 4 2.08% 5 West LLC Multi-Tenant Commercial/Residential Building 185,489 6 1.94%185,489 5 2.01% Osborne Building LLC Multi-Tenant Commercial/Residential Building 166,700 7 1.74%149,770 8 1.62% 104 East Main LLC Multi-Tenant Commercial/Residential Building 161,377 8 1.69%161,377 6 1.75% Downtowner Group LLC Business Support Services 150,146 9 1.57%150,146 7 1.63% Moose Point LP Commercial Property Developer 142,399 10 1.49%142,399 9 1.54% F&H, LLC Property Investor/Developer - N/A N/A 136,985 10 1.49% Total attributable to top taxpayers 2,520,138 26.32%2,213,198 24.00% Total of all other properties 7,053,876 73.68%7,009,059 76.00% 9,574,014$ 100.00%9,222,257$ 100.00% 2023 2022 Source: Gallatin County Treasurer 668 176 City of Bozeman, Montana Properties in the Bozeman Midtown Urban Renewal District Current Year and Prior Year Percentage of Percentage ofTotal City Total City Taxable Taxable Taxable TaxableAssessed Assessed Assessed Assessed Property Type/Property Tax Classification Valuation Valuation Valuation Valuation 3 agricultural land 16,239$ 803$ 16,897$ 903$ 4 residential 48,687,693 652,961 41,516,680 556,166 4 commercial 290,738,314 5,494,952 286,476,924 5,414,414 5 pollution control, electric and telephone cooperative 4,215 126 - - 8 business equipment 2,602,716 39,042 3,463,777 51,957 9 pipelines and non-electric generatingproperty of electric utility 411,219 49,346 387,383 46,487 13 eletrical generation and telecommunication 372,962 22,378 461,501 27,689 342,833,358$ 6,259,608$ 332,323,162$ 6,097,616$ 2022/2023 2021/2022 Source: Montana Department of Revenue 669 177 City of Bozeman, Montana Principal Property Taxpayers in Downtown Bozeman Midtown Urban Renewal District Current Year and Prior Year Percentage of Percentage ofTotal City Total CityTaxableTaxableTaxableTaxableAssessedAssessedAssessedAssessedTaxpayerValuationRankValuation Valuation Rank Valuation TCIP Partnership 264,335$ 1 4.22%264,335$ 2 4.34% Walmart Stores Inc.247,136 2 3.95%247,136 3 4.05% Rocky Mountain Retail LLC 220,308 3 3.52%- N/A N/A Grantree Hotels LP 219,618 4 3.51%219,618 4 3.60% Buffalo Ventures LLC 213,835 5 3.42%213,835 5 3.51% Westlake, George 187,745 6 3.00%300,665 1 4.93% Bozeman Hospitality LLC 167,963 7 2.68%169,344 6 2.78% Aspen Land Co LLC 163,602 8 2.61%- N/A N/A Oak Street Partnership 146,997 9 2.35%146,997 8 2.41% RSVP Motel LLC 136,794 10 2.19%- N/A N/A Murdoch Family LP - 7 N/A 164,113 7 2.69% Gallatin Hospitality LLC - 9 N/A 117,399 9 1.93% Universal Athletic Services Inc.- 10 N/A 112,693 10 1.85% Total attributable to top taxpayers 1,968,333 31.44%1,956,135 16.58% Total of all other properties 4,291,275 68.56%4,141,481 67.92% 6,259,608$ 100.00%6,097,616$ 84.50% 2022/2023 2021/2022 670 178 City of Bozeman, Montana Property Tax Levies and Collections Last Ten Fiscal Years Fiscal Year Taxes Levied Collections inEndedfor the Percentage Subsequent PercentageJune 30,Fiscal Year Amount of Levy Years Amount of Levy 2023 32,675,419$ 32,618,261$ 99.83%-$ 32,618,261$ 99.83% 2022 23,793,072 23,777,644 99.94%37,940 23,815,584 100.09% 2021 21,454,058 21,017,696 97.97%62,741 21,080,437 98.26% 2020 23,589,506 23,381,671 99.12%207,835 23,589,506 100.00% 2019 19,950,675 19,940,784 99.95%9,891 19,950,675 100.00% 2018 18,956,357 18,791,653 99.13%59,070 18,850,723 99.44% 2017 18,338,501 18,069,230 98.53%100,003 18,169,233 99.08% 2016 18,191,892 18,009,556 99.00%74,809 18,084,365 99.41% 2015 16,590,871 16,559,270 99.81%31,601 16,590,871 100.00% 2014 14,821,724 14,482,502 97.71%227,481 14,709,983 99.25% Collected Within theFiscal Year of the Levy Total Collections to Date Source: Gallatin County City Manager's Final Adopted Budget 671 179 City of Bozeman, Montana Water Sold by Type of Customer (in hundreds of cubic feet [HCF]) Last Ten Fiscal Years Fiscal Year 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 Residential 1,433,833 1,385,140 1,493,192 1,601,439 1,623,881 1,556,249 1,546,308 1,788,984 1,612,932 1,583,076 Government 52,448 53,165 51,923 56,956 75,001 54,270 103,536 73,416 82,308 110,364 MSU 213,698 210,107 208,618 225,394 217,967 238,968 178,368 171,840 199,080 202,164 Commercial 607,444 599,193 610,741 620,761 618,398 627,116 506,868 590,076 578,688 600,456 Total 2,307,423 2,247,605 2,364,474 2,504,550 2,535,247 2,476,603 2,335,080 2,624,316 2,473,008 2,496,060 Total direct rate per 1,000 HCF 3,053.40$ 3,105.14$ 3,175.41$ 3,256.72$ 3,337.92$ 3,508.94$ 3,575.07$ 3,697.72$ 4,001.23$ 4,054.42$ Source: City of Bozeman Finance Department 672 180 City of Bozeman, Montana Water and Sewer Rates Last Ten Fiscal Years Water*Sewer*Fiscal YearEnded Monthly Rate per Monthly Rate per June 30,Base Rate 1,000 Gallons Base Rate 1,000 Gallons 2023 16.17$ 25.33$ 19.58$ 32.45$ 2022 16.17$ 25.33$ 19.58$ 32.45$ 2021 16.17$ 25.33$ 19.58$ 32.45$ 2020 16.17$ 25.33$ 19.58$ 32.45$ 2019 16.17$ 25.33$ 19.58$ 32.45$ 2018 15.70$ 24.60$ 19.01$ 31.50$ 2017 15.39$ 24.11$ 18.63$ 30.87$ 2016 15.02$ 23.53$ 18.09$ 29.98$ 2015 14.65$ 22.95$ 17.56$ 29.10$ 2014 14.65$ 22.95$ 17.56$ 29.10$ * For Residential Customers, using 5/8 inch meter size. Sources: City of Bozeman, Montana Commission Resolution 4327 City of Bozeman, Montana Commission Resolution 4328 City of Bozeman, Montana Commission Resolution 4454 City of Bozeman, Montana Commission Resolution 4626 & 4627 City of Bozeman, Montana Commission Resolution 4819 & 4820 City of Bozeman, Montana Commission Resolution 4927 & 4928 City of Bozeman, Montana Commission Resolution 5065 & 5066 City of Bozeman, Montana Commission Resolution 5273 & 5274 673 181 City of Bozeman, Montana Ratios of Outstanding Debt by Type Last Ten Fiscal Years General Tax Increment Special Water Wastewater Stormwater Total PercentageObligationFinancingAssessmentNotesLeasesUnamortizedRevenue Revenue Revenue Leases Primary of Personal PerYearBonds Bonds Bonds Payable Payable Premium Year Bonds Bonds Bond Payable Government Income (1)Capita (2) 2023 45,765,000$ 9,802,767$ 3,372,289$ 2,045,505$ 343,801$ 4,230,082$ 2023 15,949,000$ 25,939,000$ 1,196,000$ -$ 108,641,421$ 5.56%1,936$ 2022 47,990,000 10,288,570 3,764,217 2,322,582 630,917 4,484,963 2022 17,267,000 27,932,231 1,280,000 - 115,960,480 6.82%2,126 2021 43,240,000 10,763,655 3,948,216 2,246,694 310,270 4,198,474 2021 18,547,000 24,582,587 1,362,000 434,598 109,633,494 7.87%2,057 2020 45,445,000 4,733,238 139,500 2,481,079 404,043 3,778,566 2020 19,791,000 14,057,000 1,442,000 363,749 92,635,175 7.24%1,859 2019 12,940,000 5,338,811 171,500 2,637,009 651,453 208,593 2019 21,001,000 15,229,000 1,520,000 290,538 59,987,904 5.73%1,236 2018 13,835,000 5,018,931 406,000 763,588 463,535 222,051 2018 19,107,497 16,368,000 1,292,430 214,887 57,691,919 5.80%1,238 2017 14,710,000 4,425,000 501,000 902,500 270,492 235,509 2017 15,760,000 17,856,000 1,367,430 183,591 56,211,522 6.12%1,242 2016 15,570,000 4,630,000 662,500 884,844 249,501 248,967 2016 16,567,000 18,930,565 1,440,430 71,077 59,254,884 6.97%1,365 2015 16,320,000 4,825,000 890,500 963,274 295,912 262,425 2015 17,365,000 19,972,565 229,750 10,585 61,135,011 7.20%1,467 2014 11,685,000 5,015,000 1,185,500 1,086,396 94,176 - 2014 18,140,000 21,025,565 - - 58,231,637 6.83%1,498 Governmental Activities Business-type Activities Sources: City Manager's Final Adopted Budget City of Bozeman Finance Department 674 182 City of Bozeman, Montana Ratios of General Bonded Debt Outstanding Last 10 Fiscal Years General Tax Increment Percentage ofObligationFinancing Market Value Per Year Bonds District Bonds Total of Property Capita 2023 45,765,000$ 9,802,767$ 55,567,767$ 34.78% 990.11$ 2022 47,990,000 10,288,570 58,278,570 37.51% 1,068.45$ 2021 43,240,000 10,763,655 54,003,655 41.69% 1,013.33$ 2020 45,445,000 4,733,238 50,178,238 40.01% 1,006.97$ 2019 12,940,000 5,338,811 18,278,811 17.52% 376.63$ 2018 13,835,000 4,926,931 18,761,931 18.54% 402.65$ 2017 14,710,000 4,425,000 19,135,000 21.32% 422.87$ 2016 15,570,000 4,630,000 20,200,000 23.34% 465.38$ 2015 16,320,000 4,825,000 21,145,000 24.06% 507.56$ 2014 11,685,000 5,015,000 16,700,000 19.50% 429.75$ Source: City Manager's Final Adopted Budget Debt Outstanding is reduced by cash held for bond reserves for the purposes of this table 675 183 City of Bozeman, Montana Computation of Direct and Overlapping Debt Last Ten Fiscal Years Estimated Estimated ShareDebtPercentageof OverlappingTaxing Entity Outstanding Applicable (1)Debt City of Bozeman 67,285,543$ 100.00% 67,285,543$ Gallatin County 49,080,000 36.98% 18,151,439 Bozeman School District #7 164,724,114 61.81% 101,812,563 Subtotal overlapping debt 213,804,114 119,964,002 Total Direct and Overlapping Debt 281,089,657$ 187,249,545$ Note: Overlapping governments are those that coincide, at least in part, with the geographic boundaries of the City. This schedule estimates the portion of the outstanding debt of those overlapping governments that is borne by the residents and businesses of Bozeman. This process recognizes that, when considering the City's ability to issue and repay long-term debt, the entire debt burden borne by the residents and businesses should be taken into account. However, this does not imply that every taxpayer is a resident, and therefore responsible for repaying the debt, of each overlapping government. (1) The percentage of overlapping debt applicable is estimated using taxable assessed property values. Applicable percentages were estimated by determining the portion of another governmental unit's taxable assessed value that is within the City's boundaries and dividing it by each entity's total taxable assessed value. Sources: City of Bozeman Finance Department Gallatin County Assessor's Office Bozeman School District #7 676 184 City of Bozeman, Montana Legal Debt Margin Information Last Ten Fiscal Years Fiscal Year 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 Debt limit*84,657,000$ 84,500,000$ 142,464,717$ 147,500,000$ 168,633,783$ 174,548,585$ 214,906,344$ 221,894,059$ 268,114,122$ 275,533,467$ Total net debt applicable to limit 19,066,072 23,557,111 22,245,812 21,044,501 20,709,105 21,947,366 56,981,426 64,707,309 69,481,249 65,559,444 Legal debt margin 65,590,928$ 60,942,889$ 120,218,905$ 126,455,499$ 147,924,678$ 152,601,219$ 157,924,918$ 157,186,750$ 198,632,873$ 209,974,023$ Total net debt applicable to the limitas a percentage of debt limit 22.52%27.88%15.61%14.27%12.28%12.57%26.51%29.16%25.91%23.79% *2.5% of total market value of taxable property of $8.6 Billion per MCA 2019 7-7-4201 Source: City Manager's Final Adopted Budget 677 185 City of Bozeman, Montana Pledged Revenue Coverage – Governmental Activities Last Ten Fiscal Years Special Assessment Year Collections Principal Interest Total Coverage 2023 569,231$ 391,928$ 128,795$ 520,723$ 1.09 2022 901,483 183,999 135,136 319,135 2.82 2021 975,387 192,284 135,114 327,398 2.98 2020 775,230 32,000 26,434 58,434 13.27 2019 518,351 234,500 18,740 253,240 2.05 2018 506,819 95,000 23,221 118,221 4.29 2017 558,988 161,500 30,335 191,835 2.91 2016 705,143 228,000 39,343 267,343 2.64 2015 586,116 295,000 50,070 345,070 1.70 2014 1,054,483 474,000 73,760 547,760 1.93 Special Assessment Bonds Debt Service 678 186 City of Bozeman, Montana Pledged Revenue Coverage – Business-Type Activities Last Ten Fiscal Years Water Less:Net AvailableYearRevenue Expenditures Revenue Principal Interest Total Coverage 2023 12,314,794$ 10,150,775$ 2,164,019$ 1,318,000$ 478,523$ 1,796,523$ 1.20 2022 11,613,448 7,868,703 3,744,745 1,280,000 515,842 1,795,842 2.09 2021 11,027,542 6,878,458 4,149,084 1,244,000 552,156 1,796,156 2.31 2020 9,852,377 6,848,489 3,003,888 1,210,000 587,350 1,797,350 1.67 2019 9,396,171 6,525,730 2,870,441 1,176,000 578,954 1,754,954 1.64 2018 10,157,888 6,494,121 3,663,767 1,141,000 530,881 490,890 7.46 2017 9,281,821 6,589,396 2,692,425 822,000 490,890 1,312,890 2.05 2016 8,414,870 6,176,752 2,238,118 798,000 515,010 1,313,010 1.70 2015 7,748,913 4,973,926 2,774,987 775,000 538,425 1,313,425 2.11 2014 7,871,386 4,405,464 3,465,922 751,000 429,438 1,180,438 2.94 Water Revenue Bonds Debt Service Water Less:Net AvailableYearRevenue Expenditures Revenue Principal Interest Total Coverage 2023 10,787,474$ 7,621,951$ 3,165,523$ 1,993,321$ 733,053 2,726,374$ 1.16 2022 10,389,216 6,607,192 3,782,024 1,951,000 729,704 2,680,704 1.41 2021 9,926,730 6,329,624 3,597,106 1,760,000 581,214 2,341,214 1.54 2020 9,441,675 6,592,798 2,848,877 1,172,000 446,064 1,618,064 1.76 2019 9,336,007 6,348,468 2,987,539 1,139,000 479,859 1,618,859 1.85 2018 8,876,017 5,158,989 3,717,028 1,104,000 513,009 1,617,009 2.30 2017 8,566,893 5,496,164 3,070,729 1,074,565 545,267 1,619,832 1.90 2016 7,927,692 5,139,029 2,788,663 1,042,000 552,269 1,594,269 1.75 2015 7,631,117 3,914,454 3,716,663 1,053,000 632,268 1,685,268 2.21 2014 7,204,486 5,895,751 1,308,735 1,084,854 660,771 1,745,625 0.75 Waste Water Revenue BondsDebt Service 679 187 City of Bozeman, Montana Debt Service Requirements and Coverage for Tax Increment Districts Last Ten Fiscal Years Downtown Improvement District Northeast Urban Renewal District*Midtown Improvement District** Revenues Annual Revenues Annual Revenues Annual Available for Debt Service Available for Debt Service Available for Debt Service Year Debt Service Payment Coverage Debt Service Payment Coverage Debt Service Payment Coverage 2023 2,347,685$ 330,150$ 7.11 414,674$ 92,000$ 4.51 1,734,350$ 409,950$ 4.23 2022 1,483,518 332,372 4.46 397,037 92,000 4.32 1,701,529 408,550 4.16 2021 1,847,752 332,448 5.56 470,096 92,000 5.11 1,118,930 401,893 2.78 2020 1,803,534 447,987 4.03 289,196 92,000 3.14 - - N/A 2019 2,150,531 423,573 5.08 164,252 95,000 1.73 - - N/A 2018 2,430,377 422,288 5.76 149,580 92,000 1.63 - - N/A 2017 2,160,187 425,488 5.08 - - N/A - - N/A 2016 2,066,749 423,288 4.88 - - N/A - - N/A 2015 1,853,725 425,888 4.35 - - N/A - - N/A 2014 1,644,960 423,088 3.89 - - N/A - - N/A *$863,000 Bond issuance for the Northeast Urban Renew al District on 7/20/2017 **$6,500,000 Bond issuance for the Northeast Urban Renewal District on 7/9/2020 680 188 City of Bozeman, Montana Summary of Outstanding SIDs Last Ten Fiscal Years Bonds Assessments DelinquentOriginal Amount Maturity Date Outstanding Cash Balance Outstanding Assessments SID 674 494,000$ 7/1/2024 38,500$ 1,185$ 24,306$ -$ SID 747 4,001,000 7/1/2040 3,333,789 4,441 2,781,020 5,420 Total 4,495,000$ 3,372,289$ 5,626$ 2,805,326$ 5,420$ Bond Issue 681 189 City of Bozeman, Montana Revolving Fund Balance and Bond Secured Thereby Last Ten Fiscal Years Revolving Fund Principal Fiscal Year Ended June 30, Cash Balance Amount of Debt 2023 54,728$ 680,263 2022 766,881 766,510 2021 2,555,927 1,152,898 2020 2,173,692 1,537,286 2019 3,020,315 643,983 2018 2,903,817 916,503 2017 2,874,013 1,040,533 2016 2,924,604 1,120,708 2015 2,948,129 1,295,224 2014 2,474,971 1,317,226 682 190 City of Bozeman, Montana Special Improvement District Assessment Billing and Collections Last Ten Fiscal Years Assessment Total Annual Fiscal Year Ended June 30, Billing Collections 2023 567,476$ 569,230 2022 578,154 599,831 2021 594,719 649,643 2020 642,408 703,796 2019 476,212 518,351 2018 505,481 506,819 2017 528,622 558,988 2016 543,351 705,143 2015 538,697 586,116 2014 676,613 1,054,484 683 191 City of Bozeman, Montana Demographic and Economic Statistics Last Ten Fiscal Years Percentage Residents (ageChange in Per Capita 25 and over)Pre K-12Estimated Estimated Personal Personal with Bachelor's School Unemployment Year Population Population Income Income Median Age Degree or Higher Enrollment Rate 2023 56,123 2.89% 1,952,338,137$ 39,939$ 28.0 63.8%7,357 1.9% 2022 54,545 2.35% 1,700,066,144 36,526 29.0 63.1%7,308 2.1% 2021 53,293 6.95% 1,393,673,190 32,865 28.0 58.7%6,893 3.2% 2020 49,831 2.68% 1,279,025,432 30,268 28.0 56.8%7,152 4.5% 2019 48,532 4.15% 1,047,804,618 29,097 28.0 56.9%7,015 3.8% 2018 46,596 2.97% 993,940,022 28,748 27.9 55.6%6,908 2.8% 2017 45,250 4.25% 918,565,430 26,506 27.7 56.5%6,770 2.8% 2016 43,405 4.19% 849,682,100 26,350 27.5 54.4%6,533 2.8% 2015 41,660 7.21% 849,198,410 26,335 27.3 53.6%6,294 2.9% 2014 38,860 0.30% 852,165,042 26,427 26.8 53.3%6,216 3.5% Sources: Bozeman Public Schools U.S. Bureau of Labor Statistics U.S. Census Bureau 684 192 City of Bozeman, Montana Principal Employers Current Year and Nine Years Ago Employer EmployerPrivate Employers by Class Class Size Private Employers by Class Class Size Bozeman Deaconess Hospital 9 Bozeman Deaconess Hospital 9Oracle America 7 Oracle America 7 Kenyon Noble Lumber & Hardware 7 Wal Mart 7 Town Pump Convenience Stores 7 Albertson's 6Wal Mart 7 Bridger Bowl 6Albertson's 6 Community Food Co-Op 6 Bridger Bowl 6 Costco 6Community Food Co-Op 6 Federal Premium Ammunition 6Costco6First Security Bank 6First Student 6 First Student 6 Glacier Bancorp 6 GranTree Inn 6McDonalds6Kenyon Noble Lumber & Hardware 6Murdoch's Ranch & Home Supply 6 Korman Marketing Group 6Ressler Motors 6 Martel Construction 6 Rosauers Food & Drug 6 McDonalds 6Target6Murdoch's Ranch & Home Supply 6Town & Country Foods 6 Ressler Motor 6 UPS 6 Town & Country Foods 6Williams Plumbing & Heating 6 Town Pump Convenience Stores 6Zoot Enterprises 6 Zoot Enterprises 6 Employer EmployerPublic Employers by Class Class Size Public Employers by Class Class Size Montana State University 9 Montana State University 9 Belgrade School District 8 School District #7 9Bozeman School District 8 Belgrade School District 8Gallatin County 8 City of Bozeman 7 City of Bozeman 7 Department of Agriculture 7Gallatin County 7 2023 2014 Source: Montana Department of Labor & Industry Class 6 - 100 to 249 Employees Class 7 - 250 to 499 Employees Class 8 - 500 to 999 Employees Class 9 - 1,000+ Employees 685 193 City of Bozeman, Montana Full-Time Equivalent City Government Employees by Function/Program Last Ten Fiscal Years 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 General GovernmentCity Commission 2.10 2.10 2.10 2.10 0.10 2.10 2.10 2.10 2.10 2.10 City Manager 5.00 5.00 6.00 6.00 9.00 9.00 9.00 9.00 9.00 9.00 Municipal Court 8.50 9.00 8.50 8.50 9.50 9.50 9.60 9.98 11.23 11.23 City Attorney 7.00 9.00 10.20 10.20 10.70 10.70 11.70 12.70 12.70 13.70 Administrative Services *19.00 21.00 21.50 23.50 - - - - - - Human Resources *- - - - 4.00 5.00 5.00 5.00 5.00 6.00 Finance *- - - - 12.50 13.50 13.50 15.00 14.00 14.00 Information Technology *- - - - 6.00 7.00 7.00 7.00 8.00 8.50 Community Development 8.00 12.60 11.60 13.00 13.00 14.25 15.25 15.25 18.25 19.50 Facilities Management 3.50 3.50 3.50 3.50 4.50 5.00 5.00 6.00 7.00 8.00 Total general government 53.10 62.20 63.40 66.80 69.30 76.05 78.15 82.03 87.28 92.03 Public safety Police Department 72.75 72.25 71.70 72.70 72.70 74.55 75.55 76.95 80.95 81.95 Fire Department 45.75 45.00 46.00 46.00 46.00 47.00 50.00 50.00 50.00 57.00 Building Inspection 12.55 14.00 18.50 18.50 19.50 19.75 19.75 19.75 19.75 20.75 Parking 5.50 6.00 6.00 6.00 6.00 6.00 6.00 6.00 6.00 6.00 Total public safety 136.55 137.25 142.20 143.20 144.20 147.30 151.30 152.70 156.70 165.70 Public servicesPublic Services Admin/Engineering 12.00 6.58 10.25 11.50 11.50 16.25 18.25 22.25 26.25 29.25 Streets 18.62 16.20 18.85 19.85 21.85 21.35 22.30 22.30 22.30 24.70 Storm Water 1.00 4.00 6.25 6.50 7.50 7.50 8.50 9.50 9.50 10.25 Water Conservation 2.25 3.00 3.00 3.00 3.00 Water Treatment Plant 11.27 12.75 10.50 10.50 10.00 10.00 10.00 10.00 10.00 10.00 Water Operations 15.62 17.33 14.45 14.45 14.50 14.50 15.70 15.65 16.65 17.65 Wastewater Operations 11.25 13.09 13.30 14.05 12.00 12.50 13.55 14.55 14.55 14.55 Wastewater Plant 17.47 15.50 14.75 14.75 15.00 15.00 16.00 16.00 16.00 16.00 Solid Waste Collection/Recycling 15.74 15.90 15.15 16.15 17.15 17.15 18.75 19.75 19.75 20.75 Vehicle Maintenance 5.00 5.00 6.50 6.50 7.50 7.50 8.50 8.50 9.50 10.50 Total public services 107.97 106.35 110.00 114.25 117.00 124.00 134.55 141.50 147.50 156.65 Public WelfareCemetery (numerous short terms)3.33 4.90 5.04 5.04 4.75 4.25 4.25 4.55 4.55 4.55 Parks (numerous short terms)11.77 15.40 14.51 14.51 14.90 18.00 18.00 19.75 19.75 29.65 Forestry 4.60 5.95 5.65 6.65 5.20 6.00 6.00 6.65 6.65 6.65 Library 23.11 23.41 26.02 28.02 28.02 28.02 28.02 26.53 26.53 27.53 Recreation (numerous short terms)16.83 16.83 23.55 24.26 23.41 24.80 24.80 21.90 21.90 23.10 Economic Development 4.00 3.50 3.50 3.50 2.00 2.00 3.00 3.00 3.00 3.00 Sustainability 1.50 1.50 1.50 1.50 1.50 1.50 1.50 1.50 3.00 3.00 Total public services 65.14 71.49 79.77 83.48 79.78 84.57 85.57 83.88 85.38 97.48 Total 362.76 377.29 395.37 407.73 410.28 431.92 449.57 460.11 476.86 511.86 Source: City Manager's Final Adopted Budget * Administrative Services consists of Finance, Information Technology and Human Resources. Beginning in fiscal year 2018, these programs are reported separately. 686 194 City of Bozeman, Montana Operating Indicators by Function/Program Last Ten Fiscal Years 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 FinanceSID Statements 16,424 16,506 16,893 17,200 17,463 18,185 18,552 18,895 19,655 20,001 Utility Bills 155,000 162,000 166,000 169,000 172,000 168,280 176,263 180,720 205,092 208,259Accounts Payable Checks Processed 10,453 11,098 11,000 11,800 12,350 11,762 11,800 12,488 10,543 9,846 PoliceNumber of Officers 63 61 60 61 60 60 60 60 60 61Calls for Service 48,542 46,290 47,400 48,200 47,136 50,548 48,099 48,560 69,857 49,182Arrests2,165 2,195 2,078 2,427 2,314 2,618 2,017 2,118 1,936 2,402Misdemeanor Citations Issued - includes traffic 6,045 6,169 6,390 5,886 4,940 5,430 4,800 4,058 4,012 5,460 Traffic Stops 8,210 7,757 7,482 7,900 7,675 9,600 8,410 8,736 8,062 5,991Traffic Crashes 1,469 1,601 1,792 1,850 1,958 1,840 1,813 1,351 1,452 1,707 Fire*Fires, Hazardous Conditions, Rupture/Explosions 340 296 349 445 564 522 340 304 319 367 Emergency Medical Services/ Rescue 2,051 2,032 2,424 3,062 3,320 3,073 3,154 3,005 2,716 2,714Service Calls 212 202 244 334 438 406 239 170 311 282 Building InspectionCommercial Permits:Number 1,165 1,560 1,628 1,731 883 768 702 707 548 1,014 Value (Millions)44.50$ 98.02$ 164.47$ 65.00$ 216.00$ 249.00$ 302.00$ 237.00$ 201.00$ 271.00$ Residential Permits: Number 2,911 2,836 3,937 3,905 3,222 2,307 2,094 2,674 1,947 2,354Value (Millions)130.68$ 191.97$ 200.00$ 130.00$ 340.00$ 311.00$ 176.00$ 233.00$ 479.00$ 444.00$ WaterNew Service Main Taps 57 70 60 72 65 101 96 100 60 25 Meter Replacement/ Repair 479 1,006 978 1,500 994 1,042 528 1,273 1,285 645Water Main Breaks/ Repairs 7 5 7 6 7 5 11 14 9 5WastewaterMain Line Flushing (in Miles)30.0 90.0 50.0 30.9 50.0 37.5 48.0 33.3 73.7 55.1New Infrastructure TV (in Miles)2.00 8.00 2.60 9.90 7.00 2.80 3.30 7.40 6.77 3.70 New Service Taps 37 44 20 30 30 56 25 34 19 19Solid Waste Collection & Recycling Residential Accounts 7,869 8,369 8,878 9,695 10,384 10,884 11,321 11,841 12,317 12,379Commercial Customers 258 265 461 449 515 573 566 520 612 649 Recycling Customers 1,601 2,100 2,663 3,386 3,854 4,434 4,867 5,526 6,025 6,231Annual Tonnage Collected: Collections Program 10,960 11,457 11,691 12,490 17,657 18,880 19,815 19,955 21,369 23,530Vehicle MaintenanceWork Orders Processed 1,717 1,549 1,453 1,509 2,592 2,392 2,057 3,718 1,802 1,845Gallons of Oil Disposed 8,740 8,969 7,395 6,475 5,007 5,522 4,900 5,787 2,925 4,676 ParksPark Reservations 400 400 400 400 425 493 423 912 1,433 938 Sources: City Manager's Final Adopted Budget, City of Bozeman Finance Department *Statistics are based on calendar year 687 195 City of Bozeman, Montana Capital Assets Statistics by Function/Program Last Ten Fiscal Years 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 PoliceStations 1 1 1 1 1 1 1 1 1 1 Patrol Units (Cars)*20 22 21 21 22 21 21 24 20 22 Patrol Units (Motorcycles)4 2 3 3 3 3 3 3 3 3 FireStations 3 3 3 3 3 3 3 3 3 3Fire Trucks 7 7 7 7 7 7 7 7 7 9StreetsStreet & Alley Mileage 259 262 266 267 271 275 280 282 286 297Lane Miles Painted 35 49 50 50 52 48 53 51 51 53Number of Signs Installed/Repaired 798 600 600 600 708 394 1,107 1,270 273 467WaterWater Mains (Miles)267.28 268.57 274.89 276.92 283.95 286.68 297.10 299.52 304.53 307.58Fire Hydrants 2,406 2,419 2,511 2,573 2,618 2,668 2,758 2,782 2,835 3,008WastewaterSanitary Sewers (Miles)211.51 212.53 219.14 224.28 234.64 236.04 239.00 242.43 254.14 251.07Number of Manholes 4,185 4,219 4,360 4,492 4,614 4,677 4,828 5,023 5,051 5,457Solid WasteNumber of Collection Vehicles 8 8 8 8 8 8 6 6 8 9Number of Roll-off Trucks 4 4 4 4 5 5 5 5 5 5Number of Recycling Trucks 2 2 2 2 2 2 2 2 2 2Number of Compost Collection Trucks 2 2 2 2 1 1 1 1 1 1ParksFormal Turf Acres 125 126 140 140 172 192 192 192 196 475Natural Parkland Acres 220 220 220 220 323 343 388 413 413 436Miles of Trails 61 63 63 63 63 65 65 65 71 79 *Patrol cars determined by Vehicle & Equipment Master List-Fire Extinguishers tab-Total of "Utility" & "Interceptor" vehicles 206 Sources: City Manager's Final Adopted Budget City of Bozeman Finance Department City of Bozeman GIS Department City of Bozeman Police Department 688 Federal Awards Reports in Accordance with the Uniform Guidance June 30, 2023 City of Bozeman, Montana 689 196 Independent Auditor’s Report on Internal Control over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards The City Commission City of Bozeman, Montana We have audited, in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States (Government Auditing Standards), the financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of City of Bozeman, Montana (the City), as of and for the year ended June 30, 2023, and the related notes to the financial statements, which collectively comprise the City’s basic financial statements and have issued our report thereon dated December 21, 2023. Report on Internal Control over Financial Reporting In planning and performing our audit of the financial statements, we considered the City’s internal control over financial reporting (internal control) as a basis for designing audit procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the City’s internal control. Accordingly, we do not express an opinion on the effectiveness of the City’s internal control. A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the entity’s financial statements will not be prevented, or detected and corrected on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance. Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies. Given these limitations, during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses. We identified certain deficiencies in internal control, described in the accompanying Schedule of Findings and Questioned Costs as item 2023-001 that we consider to be a significant deficiency. What inspires you, inspires us. | eidebailly.com 401 N. 31st St., Ste. 1120 | P.O. Box 7112 | Billings, MT 59103-7112 | TF 800.824.9797 | T 406.896.2400 | F 406.252.8600 | EOE 690 197 Report on Compliance and Other Matters As part of obtaining reasonable assurance about whether the City’s financial statements are free from material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and material effect on the financial statements. However, providing an opinion on compliance with those provisions was not an objective of our audit and, accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards. City’s Response to Finding Government Auditing Standards requires the auditor to perform limited procedures on the City’s response to the finding identified in our audit and described in the accompanying Schedule of Findings and Questioned Costs. The City’s response was not subjected to the other auditing procedures applied in the audit of the financial statements and, accordingly, we express no opinion on the response. Purpose of this Report The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the result of that testing, and not to provide an opinion on the effectiveness of the entity’s internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the entity’s internal control and compliance. Accordingly, this communication is not suitable for any other purpose. Billings, Montana December 21, 2023 691 198 Independent Auditor’s Report on Compliance for the Major Federal Program; Report on Internal Control Over Compliance; and Report on the Schedule of Expenditures of Federal Awards Required by the Uniform Guidance The City Commission City of Bozeman, Montana Report on Compliance for the Major Federal Program Opinion on the Major Federal Program We have audited City of Bozeman, Montana’s (the City) compliance with the types of compliance requirements identified as subject to audit in the OMB Compliance Supplement that could have a direct and material effect on the City’s major federal program for the year ended June 30, 2023. The City’s major federal program is identified in the summary of auditor’s results section of the accompanying schedule of findings and questioned costs. In our opinion, the City complied, in all material respects, with the compliance requirements referred to above that could have a direct and material effect on its major federal program for the year ended June 30, 2023. Basis for Opinion on the Major Federal Program We conducted our audit of compliance in accordance with auditing standards generally accepted in the United States of America (GAAS); the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States (Government Auditing Standards); and the audit requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Our responsibilities under those standards and the Uniform Guidance are further described in the Auditor’s Responsibilities for the Audit of Compliance section of our report. We are required to be independent of the City and to meet our other ethical responsibilities, in accordance with relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion on compliance for the major federal program. Our audit does not provide a legal determination of the City’s compliance with the compliance requirements referred to above. Responsibilities of Management for Compliance Management is responsible for compliance with the requirements referred to above and for the design, implementation, and maintenance of effective internal control over compliance with the requirements of laws, statutes, regulations, rules and provisions of contracts or grant agreements applicable to the City‘s federal programs. What inspires you, inspires us. | eidebailly.com 401 N. 31st St., Ste. 1120 | P.O. Box 7112 | Billings, MT 59103-7112 | TF 800.824.9797 | T 406.896.2400 | F 406.252.8600 | EOE 692 199 Auditor’s Responsibilities for the Audit of Compliance Our objectives are to obtain reasonable assurance about whether material noncompliance with the compliance requirements referred to above occurred, whether due to fraud or error, and express an opinion on the City’s compliance based on our audit. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with GAAS, Government Auditing Standards, and the Uniform Guidance will always detect material noncompliance when it exists. The risk of not detecting material noncompliance resulting from fraud is higher than for that resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Noncompliance with the compliance requirements referred to above is considered material, if there is a substantial likelihood that, individually or in the aggregate, it would influence the judgment made by a reasonable user of the report on compliance about the City’s compliance with the requirements of each major federal program as a whole. In performing an audit in accordance with GAAS, Government Auditing Standards, and the Uniform Guidance, we: •Exercise professional judgment and maintain professional skepticism throughout the audit. •Identify and assess the risks of material noncompliance, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the City’s compliance with the compliance requirements referred to above and performing such other procedures as we considered necessary in the circumstances. •Obtain an understanding of the City’s internal control over compliance relevant to the audit in order to design audit procedures that are appropriate in the circumstances and to test and report on internal control over compliance in accordance with the Uniform Guidance, but not for the purpose of expressing an opinion on the effectiveness of the City’s internal control over compliance. Accordingly, no such opinion is expressed. We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and any significant deficiencies and material weaknesses in internal control over compliance that we identified during the audit. Report on Internal Control over Compliance A deficiency in internal control over compliance exists when the design or operation of a control over compliance does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, noncompliance with a type of compliance requirement of a federal program on a timely basis. A material weakness in internal control over compliance is a deficiency, or a combination of deficiencies, in internal control over compliance, such that there is a reasonable possibility that material noncompliance with a type of compliance requirement of a federal program will not be prevented, or detected and corrected, on a timely basis. A significant deficiency in internal control over compliance is a deficiency, or a combination of deficiencies, in internal control over compliance with a type of compliance requirement of a federal program that is less severe than a material weakness in internal control over compliance, yet important enough to merit attention by those charged with governance. 693 200 Our consideration of internal control over compliance was for the limited purpose described in the Auditor’s Responsibilities for the Audit of Compliance section above and was not designed to identify all deficiencies in internal control over compliance that might be material weaknesses or significant deficiencies in internal control over compliance. Given these limitations, during our audit we did not identify any deficiencies in internal control over compliance that we consider to be material weaknesses, as defined above. However, material weaknesses or significant deficiencies in internal control over compliance may exist that were not identified. Our audit was not designed for the purpose of expressing an opinion on the effectiveness of internal control over compliance. Accordingly, no such opinion is expressed. The purpose of this report on internal control over compliance is solely to describe the scope of our testing of internal control over compliance and the results of that testing based on the requirements of the Uniform Guidance. Accordingly, this report is not suitable for any other purpose. Billings, Montana December 21, 2023 694 201 City of Bozeman, Montana Schedule of Expenditures of Federal Awards Year Ended June 30, 2023 Federal Financial Pass-throughAssistanceEntity IdentifyingListingNumber Expenditures Department of AgriculturePassed through Montana Department of Natural Resourcesand Conservation:Cooperative Forestry Assistance 10.664 FHE-21-101 3,718$ Department of InteriorPassed through Montana Historcial Society:Historic Preservation Fund Grants-in-Aid 15.904 P21AF10470 12,400 Department of JusticeDirect Program:Edward Byrne Memorial Justice Assistance Grant Program 16.738 6,288 Passed through Gallatin County:2990-000-42-420 Edward Byrne Memorial Justice Assistance Grant Program 16.738 142-000-400-790 73,204 Total CFDA 16.738 79,492 Direct Program:Bulletproof Vest Partnership Program 16.607 3,294 Total Department of Justice 82,786 Department of Transportation Passed through Montana Department of Transportation: State and Community Highway Safety 20.600 00-03-09-02 521 National Priority Safety Programs 20.616 00-03-09-02 1,064 Total Department of Transportation 1,585 Department of Treasury Direct Program: COVID-19 Coronavirus State and Local Fiscal Recovery Funds 21.027 6,751,994 Passed through Montana Department of Natural Resources and Conservation: COVID-19 Coronavirus State and Local Fiscal Recovery Funds 21.027 Various 1,494,522 Total Department of Treasury 8,246,516 Department of Homeland SecurityPassed through Montana Disaster and Emergency Services: Homeland Security Grant Program 97.067 22HSBZMNV 392,939 Total Federal Financial Assistance 8,739,944$ Federal Grantor/Pass-ThroughGrantor/Program or Cluster Title 695 202 City of Bozeman, Montana Notes to Schedule of Expenditures of Federal Awards Year Ended June 30, 2023 Note 1 - Basis of Presentation The accompanying schedule of expenditures of federal awards (the schedule) includes the federal award activity of the City of Bozeman, Montana (the City) under programs of the federal government for the year ended June 30, 2023. The information is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Because the schedule presents only a selected portion of the operations of the City, it is not intended to and does not present the financial position, changes in net position or fund balance, or cash flows of the City. Note 2 - Significant Accounting Policies Expenditures reported in the Schedule are reported on the accrual basis of accounting. When applicable, such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. No federal assistance has been provided to a subrecipient. Note 3 - Indirect Cost Rate The City has not elected to use the 10% de minimus cost rate. 696 203 City of Bozeman, Montana Schedule of Findings and Questioned Costs Year Ended June 30, 2023 Section I – Summary of Auditor’s Results FINANCIAL STATEMENTS Type of auditor's report issued:Unmodified Internal control over financial reporting:Material weaknesses identified NoSignificant deficiencies identified not considered to be material weaknesses Yes Noncompliance material to financial statements noted?No FEDERAL AWARDS Internal control over major program: Material weaknesses identified NoSignificant deficiencies identified notconsidered to be material weaknesses None reported Type of auditor's report issued on compliance for major programs:Unmodified Any audit findings disclosed that are required to be reported in accordance with Uniform Guidance 2 CFR 200.516:No Identification of major programs: Name of Federal Program Federal Financial Assistance Listing COVID-19 - Coronavirus State and Local Fiscal Recovery Funds 21.027 Dollar threshold used to distinguish between Type A and Type B programs: $ 750,000 Auditee qualified as low-risk auditee?Yes 697 204 City of Bozeman, Montana Schedule of Findings and Questioned Costs Year Ended June 30, 2023 Section II – Financial Statement Findings 2023-001: Street Impact Fees – Assessment Significant Deficiency Criteria: Management is responsible for establishing and maintaining an effective system of internal control over financial reporting. Ensuring street impact fees are assessed and recorded appropriately is a key component of effective internal control over financial reporting. Condition: We tested 40 separate street impact fee calculations that were assessed during fiscal year 2023. Through testing these transactions, we noted inconsistencies with assessment practices and rate schedules being applied to various transactions tested, and as a result, we found several discrepancies between our recalculation of fees and the amount that was charged for 16 of the 40 items tested. Total street impact fees charged totaled ~5.2M during the fiscal year, and the errors noted within our sample projected to an overall discrepancy of ~162k. This difference represents an estimated amount that revenue was overstated during the fiscal year as a result of the testing performed. Various differences are the result of information that could not be provided to support various inputs into the calculations as they were not maintained in a manner that would allow us to accurately recalculate the fees charged. Cause: The City of Bozeman (City) did not have adequate internal controls to ensure impact fees were assessed and recorded consistently and that adequate documentation was maintained to support the amounts that were charged. Effect: Inconsistent documentation, inability to quickly replicate fee calculations, and possibility that some customers may have been overcharged or undercharged for street impact fees. Testing resulted in an immaterial misstatement in street impact fee revenues. Recommendation: We recommend the City enhance internal controls to ensure street impact fees are consistently assessed and appropriately recorded and that documentation is maintained to support the inputs into the calculations performed. Views of Responsible Officials: Management agrees with this finding. 698 205 City of Bozeman, Montana Schedule of Findings and Questioned Costs Year Ended June 30, 2023 Section III – Federal Award Findings and Questioned Costs No current year findings reported. 699 Management’s Response to Auditor’s Findings: Summary Schedule of Prior Audit Findings and Corrective Action Plan June 30, 2023 Prepared by Management of City of Bozeman 700 Finding 2023-001 Finding Summary: Impact fee calculation is a complex, multi-step process developed in accordance with state statute and court case findings. Through testing of street impact fees, Eide Bailly LLP noted inconsistencies in street impact fee transactions due to (a) procedural complexity, (b) specificity of measurements required for inputs, and (c) absence of readily available and accessible transaction-specific documentation. These inconsistencies prevented replication of fee calculations but did not necessarily in all instances conclude errors according to state statute and court case findings in calculating impact fees. Eide Bailly LLP determined the estimated differences may have resulted in an overstatement of revenue by an immaterial amount during the fiscal year. Responsible Individuals: Melissa Hodnett, Finance Director Anna Bentley, Director of Community Development Corrective Action Plan: Staff will perform or has performed the following corrective actions: Completed on 1/16/24: • Reviewed calculation procedures, and • Revised calculation and documentation tools. To complete prior to 6/30/24: • Review and update internal procedure manual, • Create internal at-a-glance reference document, • Administer annual refresher training for staff, and • Perform internal audit of revenue transactions year to date. Ongoing: • Periodically review and adjust procedures and tools, as needed. • Internal audits of revenue transactions for fiscal year 2024 and in the future. 701 Memorandum REPORT TO:City Commission FROM:Elizabeth Cramblet, Associate Planner Chris Saunders, Community Development Manager Erin George, Deputy Director of Community Development Anna Bentley, Director of Community Development SUBJECT:Annexation Application 23127 Requesting Annexation of Approximately 40.12 Acres and Adjacent Right of Way for Hidden Valley Road and Amendment to the City Zoning Map for the Establishment of a Zoning Designation of R-4 (Residential High Density District). Subject Site is Located East and South of Hidden Valley Road About One-Quarter Mile East of Harper Puckett Road, Application 23127. MEETING DATE:January 23, 2024 AGENDA ITEM TYPE:Community Development - Legislative RECOMMENDATION:City Commission Recommended Annexation Motion: Having reviewed and considered the staff report, application materials, public comment, and all information presented, I hereby adopt the findings presented in the staff report for application 23127 and move to approve the Harper's Corner Annexation subject to the terms of annexation and direct staff to prepare an annexation agreement. City Commission Recommended Zoning Motion: Having reviewed and considered the staff report, application materials, public comment, recommendation of the Zoning Commission, and all information presented, I hereby adopt the findings presented in the staff report for application 23127 and move to approve the Harper's Corner Zone Map Amendment with contingencies of approval necessary to complete adoption of an implementing ordinance. 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 proposed application includes annexing two parcels totaling approximately 40.12 acres into the City limits plus adjacent right-of-way and establish initial zoning of R-4, Residential High Density District. The property is currently zoned “Agriculture Suburban” (AS) within the county. Zoning north, south, and west of the site is within the county. South of the site is zoned Agriculture Suburban (AS), west of the site is unzoned, and north is 702 zoned Residential Manufactured Home (R-MH). On the eastern side of the project site is an 86-acre vacant parcel that just received final approval to annex into the city with an initial zone district of Residential Emphasis Mixed-Use (REMU). Nearby municipal zoning to the north about a quarter mile is REMU (Silo Annexation), Residential Emphasis Mixed-Use. East of the site about a half mile is zoned R-4 (Residential High Density) and south about a half mile is R- 1, R-3, R-4 and R-5. The Future Land Use Map in the Bozeman Community Plan (BCP) 2020 designates the property as “Urban Neighborhood” which includes the R-4 district as an implementing zoning district. The property is bordered by Hidden Valley Road to the west and north. The proposed annexation would bring in additional right of way to build out Hidden Valley Road to the City’s collector standard adjacent to the subject property as would be required with future development. Additionally, the project will bring in additional right of way to align and eventually connect with Catamount Street (classified as a Minor Arterial in the Bozeman Transportation Master Plan-TMP) that will eventually run along the southern border of the project site and additional right of way to align and eventually connect with Ferguson Avenue (classified as a Collector Street in the TMP) that is approximately one half mile south of the subject site. For analysis of the project see the attached staff report. This application was heard by the Community Development Board on September 11, 2023. The applicant originally requested an initial zone district of R-5 (Residential Mixed Use High Density District). At the September 11, 2023 public hearing, the Community Development Board, acting in their capacity as the Zoning Commission, voted 5-1 to recommend denial of the requested R-5 zoning to the City Commission. In response to public comment and comments from the Community Development Board members, the applicant has changed the requested initial zone district to R-4 (Residential High Density) in lieu of R-5 (Residential Mixed Use High Density). Application information is available on the Laserfiche archive [External Link}. UNRESOLVED ISSUES:There are no identified conflicts on this application at this time. ALTERNATIVES:1. Recommend approval of the application; 2. Recommend modifications to the requested zoning; 3. Recommend deny the application based on findings of non-compliance with the applicable criteria contained within the staff report; or 4. Open and continue the public hearing on the application, with specific direction to staff or the applicant to supply additional information or to address specific items. FISCAL EFFECTS:No unusual fiscal effects have been identified. No presently budgeted funds will be changed by this Annexation or Zone Map Amendment. 703 Attachments: 23127 Harper's Corner Annx-CC SR.pdf Report compiled on: January 10, 2024 704 Page 1 of 34 23127 Staff Report for the Harper’s Corner Annexation and ZMA Public Hearing Dates: Zoning Commission – September 11, 2023 City Commission – January 23, 2024 Project Description: Annexation application 23127 requesting annexation of approximately 40.12 acres and adjacent right of way for Hidden Valley Road and amendment to the City Zoning Map for the establishment of a zoning designation of R-4 (Residential High Density District). Project Location: East and south of Hidden Valley Road about one quarter mile east of Harper Puckett Road and legally described as Tracts 1 and 2 equaling approximately 40.12 acres on COS No. 408A as the SE ¼ of the SW ¼ of Section 27, Township 1 South, Range 5 East, Principal Meridian, Gallatin County, Montana. Recommendation: Meets standards for approval with terms of annexation and contingencies. Zoning Commission Motion: Having reviewed and considered the staff report, application materials, public comment, and all information presented, I hereby adopt the findings presented in the staff report for application 23127 and move to recommend approval of the Harper’s Corner Zone Map Amendment, with contingencies required to complete the application processing. Recommended City Commission Annexation Motion: Having reviewed and considered the staff report, application materials, public comment, and all information presented, I hereby adopt the findings presented in the staff report for application 23127 and move to approve the Harper’s Corner Annexation subject to the terms of annexation and direct staff to prepare an annexation agreement. Recommended City Commission Zoning Motion: Having reviewed and considered the staff report, application materials, public comment, recommendation of the Zoning Commission, and all information presented, I hereby adopt the findings presented in the staff report for application 23127 and move to approve the Harper’s Corner Zone Map Amendment with contingencies of approval necessary to complete adoption of an implementing ordinance. Report: January 10, 2024 Staff Contact: Elizabeth Cramblet, Associate Planner Lance Lehigh, City Engineer Agenda Item Type: Action - Legislative 705 Staff Report for the Harper’s Corner Annexation and ZMA, Application 23127 Page 2 of 34 EXECUTIVE SUMMARY This report is based on the application materials submitted and public comment received to date. This report addresses both the zoning amendment for Zoning Commission as well as the annexation and the zoning amendment for the City Commission. Application materials available at Harper’s Corner, Application 23127. Unresolved Issues There are no identified conflicts on this application at this time. Project Summary The proposed application includes annexing two parcels totaling approximately 40.12 acres into the City limits plus adjacent right-of-way and establish initial zoning of R-4, Residential High Density District. The property is currently zoned “Agriculture Suburban” (AS) within the county. Zoning north, south, and west of the site is within the county. South of the site is zoned Agriculture Suburban (AS), west of the site is unzoned, and north is zoned Residential Manufactured Home (R-MH). On the eastern side of the project site is an 86-acre vacant parcel that just received final approval to annex into the city with an initial zone district of Residential Emphasis Mixed-Use (REMU). Nearby municipal zoning to the north about a quarter mile is REMU (Silo Annexation), Residential Emphasis Mixed-Use. East of the site about a half mile is zoned R-4 (Residential High Density) and south about a half mile is R-1, R-3, R-4 and R-5. The Future Land Use Map in the Bozeman Community Plan (BCP) 2020 designates the property as “Urban Neighborhood” which includes the R-4 district as an implementing zoning district. The property is bordered by Hidden Valley Road to the west and north. The proposed annexation would bring in additional right of way to build out Hidden Valley Road to the City’s collector standard adjacent to the subject property as would be required with future development. Additionally, the project will bring in additional right of way to align and eventually connect with Catamount Street (classified as a Minor Arterial in the Bozeman Transportation Master Plan-TMP) that will eventually run along the southern border of the project site and additional right of way to align and eventually connect with Ferguson Avenue (classified as a Collector Street in the TMP) that is approximately one half mile south of the subject site. There is currently an existing single household dwelling with associated outbuildings and a septic system on each parcel. Directly north of the subject site is a mobile home park located in the county. Further north and west of the site are rural residential uses, and vacant land directly south and east of the subject site. The vacant 86-acre acre parcel east of the site received final approval on December 6, 2022 to annex into the city with an initial zone district of REMU (Project Eighty-6, Application 22113)[External Link]. 706 Staff Report for the Harper’s Corner Annexation and ZMA, Application 23127 Page 3 of 34 In determining whether the criteria applicable to this application are met, Staff considers the entire body of plans and regulations for land development. Standards which prevent or mitigate possible negative impacts are incorporated in many locations in the municipal code but are principally in Chapter 38, Unified Development Code. References in the text of this report to Articles, Divisions, or in the form xx.xxx.xxx are to the Bozeman Municipal Code. Community Development Board (Zoning Commission) Summary This application was heard by the Community Development Board on September 11, 2023. The applicant originally requested an initial zone district of R-5 (Residential Mixed Use High Density District). At the September 11, 2023 public hearing, the Community Development Board, acting in their capacity as the Zoning Commission, voted 5-1 to recommend denial of the requested R-5 zoning to the City Commission. In general the five members recommending denial of the zoning request were not in favor of establishing an R-5, Residential Mixed Use High Density district at this location. One member suggested REMU would be a more appropriate district to allow for some neighborhood commercial with residential uses. Several members suggested a lower density district would be more appropriate at this location given the surrounding rural and agricultural character. Below is a video link to the September 11th Community Development Board meeting. The item begins about one hour, seven minutes into the meeting. Video Link for CDB meeting (External Link) Revisions to Application Materials In response to public comment and comments from the Community Development Board members, the applicant has changed the requested initial zone district to R-4 (Residential High Density) in lieu of R-5 (Residential Mixed Use High Density). This staff report and analysis reflects this proposed change from the applicant. An additional notice for this change in the application was published in the Bozeman Daily Chronicle on December 23rd and December 30th, 2023. The notice was posted on site and notices mailed by the applicant as required by 38.220 (External Link) and the required confirmation provided to the Planning Office. Notice was provided at least 15 and not more than 45 days prior to any public hearing. Alternatives 1. Recommend approval of the application; 2. Recommend modifications to the requested zoning; 3. Recommend deny the application based on findings of non-compliance with the applicable criteria contained within the staff report; or 4. Open and continue the public hearing on the application, with specific direction to staff or the applicant to supply additional information or to address specific items. 707 Staff Report for the Harper’s Corner Annexation and ZMA, Application 23127 Page 4 of 34 TABLE OF CONTENTS EXECUTIVE SUMMARY ................................................................................................ 2 Unresolved Issues ........................................................................................................ 2 Project Summary.......................................................................................................... 2 Alternatives.................................................................................................................. 3 SECTION 1 - MAP SERIES: ............................................................................................. 5 SECTION 2 - RECOMMENDED TERMS OF ANNEXATION ........................................10 SECTION 3 - RECOMMENDED CONTINGENCIES OF ZONE MAP AMENDMENT ...14 SECTION 4 - RECOMMENDATION AND FUTURE ACTIONS .....................................15 Annexation .................................................................................................................15 Zone Map Amendment ................................................................................................15 SECTION 5 - ANNEXATION STAFF ANALYSIS AND FINDINGS...............................15 SECTION 6 - ZONE MAP AMENDMENT STAFF ANALYSIS AND FINDINGS ...........23 PROTEST NOTICE FOR ZONING AMENDMENTS ......................................................30 APPENDIX A - NOTICING AND PUBLIC COMMENT..................................................31 APPENDIX B - PROJECT GROWTH POLICY AND PROPOSED ZONING ...................31 APPENDIX C - OWNER INFORMATION AND REVIEWING STAFF ...........................34 FISCAL EFFECTS ...........................................................................................................34 ATTACHMENTS ............................................................................................................34 708 Staff Report for the Harper’s Corner Annexation and ZMA, Application 23127 Page 5 of 34 SECTION 1 - MAP SERIES: Map 1: Project Vicinity Map Hidden Valley Rd Community Commercial Mixed Use Public Institutions E Valley Center Rd Project Site Project Eighty-6 Silo Catamount St Project Site Silo Project Eighty-6 E Valley Center Rd Hidden Valley Rd Hidden Valley Rd 709 Staff Report for the Harper’s Corner Annexation and ZMA, Application 23127 Page 6 of 34 Map 2: BCP 2020 Future Land Use Map Project Site Urban Neighborhood Residential Mixed Use Traditional Core Public Institutions Public Institutions Community Commercial Mixed Use 710 Staff Report for the Harper’s Corner Annexation and ZMA, Application 23127 Page 7 of 34 Map 3: Existing City Zoning Project Site B-2 REMU REMU B-2 B-2 R-1 R-S R-O Catamount St Hidden Valley Rd 711 Staff Report for the Harper’s Corner Annexation and ZMA, Application 23127 Page 8 of 34 Map 4: Existing County Zoning (grey and labeled areas are within city) Agriculture Suburban City Zoning Project Site City Zoning City Zoning (Silo) City Zoning- Project Eighty-6 City Zoning Unzoned Catamount St 712 Staff Report for the Harper’s Corner Annexation and ZMA, Application 23127 Page 9 of 34 Map 5: Applicant Proposed Zoning REMU B-2 B-2 R-S R-1 R-1 REMU REMU Project Site Hidden Valley Rd Catamount St 713 Staff Report for the Harper’s Corner Annexation and ZMA, Application 23127 Page 10 of 34 SECTION 2 - RECOMMENDED TERMS OF ANNEXATION The following terms of annexation are recommended to enable the application to comply with the City’s Annexation Policy and the requirements of state law for the provision of services. Recommended terms of annexation: 1. The documents and exhibits to formally annex the subject property must be identified as the Harper’s Corner Annexation. 2. An Annexation Map, titled Harper’s Corner Annexation Map with a legal description of the property and including any adjoining un-annexed rights-of-way and/or street access easements must be submitted by the applicant for use with the Annexation Agreement. The map must be supplied as a PDF for filing with the Annexation Agreement at the County Clerk & Recorder, and a digital copy for the City Engineer’s Office. This map must be acceptable to the Director of Transportation and Engineering and City Engineers Office, and must be submitted with the signed Annexation Agreement. 3. Ferguson Avenue is classified as a Collector in the Bozeman Transportation Master Plan (TMP), which has a minimum right-of-way ROW width of 90 feet. The applicant must provide their respective portion of the ROW necessary to follow the alignment shown in the transportation plan as a public street and utility easement where Ferguson Avenue is adjacent to or crosses the property. The City is in agreement with the proposed easement alignment presented in the application. The applicant is advised the easement must be provided and executed by the landowner prior to the adoption of Resolution of Annexation. 4. Catamount Street is classified as a Minor Arterial in the Bozeman Transportation Master Plan (TMP), which has a minimum right-of-way ROW width of 100 feet. The applicant must provide their respective portion of the ROW necessary to follow the alignment shown in the transportation plan as a public street and utility easement where Catamount Street is adjacent to or crosses the property. The City is in agreement with the proposed easement alignment presented in the application. The applicant is advised the easement must be provided and executed by the landowner prior to the adoption of Resolution of Annexation. 5. Hidden Valley Road is classified as a Collector in the Bozeman Transportation Master Plan (TMP), which has a minimum right-of-way ROW width of 90 feet. The applicant must provide their respective portion of the ROW necessary to follow the alignment shown in the transportation plan as a public street and utility easement where Hidden Valley Road is adjacent to or crosses the property. The City is in agreement with the proposed easement alignment presented in the application. The applicant is advised the easement must be provided and executed by the landowner prior to the adoption of Resolution of Annexation. 6. The applicant must execute all contingencies and terms of said Annexation Agreement with the City of Bozeman within 60 days of the distribution of the annexation agreement from the City to the applicant or annexation approval shall be null and void. 714 Staff Report for the Harper’s Corner Annexation and ZMA, Application 23127 Page 11 of 34 7. The Annexation Agreement must include the following notices: a. The Annexation Agreement must include notice that, prior to development, the applicant will be responsible for preparing a storm water master plan in conjunction with future development. The storm water master plan shall address maintenance and operations until and unless the City affirmatively assumes responsibility for maintenance and operations of stormwater facilities within the area of the annexation. Easements for stormwater facilities may be required with future development. b. The Annexation Agreement must include notice the City will, upon annexation, make available to the Property existing City services only to the extent currently available, or as provided in the Agreement. c. The Annexation Agreement must include notice that, prior to future final development approval, the applicant will be responsible for transfer of water rights or a payment in lieu as required by the Bozeman Municipal Code. d. The Annexation Agreement must include notice that there is no right, either granted or implied, for Landowner to further develop any of the Property until it is verified by the City that the necessary municipal services are available to the property. e. The Annexation Agreement must include notice that, prior to development, the applicant will be responsible for installing any facilities required to provide full municipal services to the properties in accordance with the City of Bozeman's infrastructure master plans and all City policies that may be in effect at the time of development. f. The Annexation Agreement must include notice that utility easements may be required to be provided by the landowner at the time of development to ensure necessary municipal services are available to the property. g. The Annexation Agreement must include notice that charges and assessments may be required after completion of annexation to ensure necessary municipal services are available to the property. h. The Annexation Agreement must include notice that the City will assess system development and impact fees in accordance with Montana law and Chapter 2, Article 6, Division 9, Bozeman Municipal Code. 8. The applicant must contact Griffin Nielsen with the City’s Engineering Department to obtain an analysis of cash-in-lieu water rights for the proposed annexation. The determined amount must be paid prior to the adoption of Resolution of Annexation, if applicable. 9. All procedural terms necessary to establish the Annexation Agreement in conformance with state law and municipal practice will be included with the final Annexation Agreement. 10. The applicant must properly abandon the existing on-site septic tank and leach field prior to connection to the City sanitary sewer system. The applicant must report the abandonment to the City Water and Sewer Superintendent for inspection, and the applicant 715 Staff Report for the Harper’s Corner Annexation and ZMA, Application 23127 Page 12 of 34 must report the abandonment to the Gallatin 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. 11. The applicant must completely disconnect the on-site well from the house prior to connection to the City water system to protect the City’s system from cross contamination. The applicant must contact the City Water and Sewer Superintendent to inspect the disconnection prior to connection of water service from future development to the City water system. 12. If they do not already exist the applicant must provide and file with the County Clerk and Recorder's office executed Waivers of Right to Protest Creation of Special Improvement Districts (SIDs) for the following as part of the Annexation Agreement: a. Street improvements to Catamount Street from Davis Lane to Harper Puckett including lighting, signalization, paving, curb/gutter, sidewalk, and storm drainage, b. Street improvements to Ferguson Avenue from E. Valley Center to Cattail Street including lighting, signalization, paving, curb/gutter, sidewalk, and storm drainage, c. Street improvements to Hidden Valley Road from E. Valley Center to Catamount Street including lighting, signalization/channelization, paving, curb/gutter, sidewalk, and storm drainage. d. Intersection improvements at Harper Puckett Road and Catamount Street including lighting, signalization/channelization, paving, curb/gutter, sidewalk, and storm drainage. e. Intersection improvements at Davis Lane and Catamount Street including lighting, signalization/channelization, paving, curb/gutter, sidewalk, and storm drainage, f. Intersection improvements at Catamount Street and Ferguson Avenue including lighting, signalization/channelization, paving, curb/gutter, sidewalk, and storm drainage, g. Intersection improvements at Hidden Valley Road and Catamount Street including lighting, signalization/channelization, paving, curb/gutter, sidewalk, and storm drainage, The document filed must specify that in the event an SID is not utilized for the completion of these improvements, the developer agrees to participate in an alternate financing method for the completion of the improvements on a fair share, proportionate basis as determined by square footage of property, taxable valuation of the property, traffic contribution from the development, or a combination thereof. The waivers will be included as part of the annexation agreement. 13. The land owners and their successors must pay all fire, street, water, and sewer impact fees at the time of connection; and for future development, as required by Chapter 2. Bozeman Municipal Code, or as amended at the time of application for any permit listed herein. 716 Staff Report for the Harper’s Corner Annexation and ZMA, Application 23127 Page 13 of 34 Advisory Comments for Applicant and Owner for Future Development 1. The subject property is located within the City’s identified Baxter Creek Sewer Drainage Basin, which currently does not have any wastewater infrastructure to service the proposed annexation. The applicant is advised that the City does not allow private lift stations or sanitary sewer basin jumps. Therefore, all sanitary sewer flows must be routed to the drainage basin that serves the area as identified in the City of Bozeman Wastewater Collection Facilities Plan. The applicant is advised that the City’s wastewater facility plan identified the need for a future sanitary lift station (Hidden Valley Lift Station) and force main to service the Baxter Creek Sewer Basin. Upon future development, the applicant is advised all wastewater generated by the development must flow into the Hidden Valley Lift Station, and that a use of private lift stations will not be permitted. Municipal sanitary sewer improvements must be designed in coordination with any road improvements, if applicable. Specific sanitary sewer infrastructure improvements will be reviewed with future development applications. The applicant is advised to closely coordinate any future development and sanitary sewer infrastructure improvements with the City’s engineering department (Bob Murray, Senior City of Bozeman Capital Engineer), as the new Valley Center Lift Station and force main is in the early phases of design. The applicant is advised that the Valley Center Lift Station may be incorporated into a City payback district, in which the subject property would reside. 2. The subject property is located outside of the City’s current service area for municipal water. In addition, the subject property is located within a new pressure zone as identified within the City’s adopted water facility plan. Upon future development, water main extension along with pressure reduction, such as pressure reducing valves, would be required to service the subject development. The applicant is advised a minimum of two points of service must be in place to satisfy City standards. Municipal water improvements must be designed in coordination with any road improvements. Specific water infrastructure improvements will be reviewed with future development applications. See Bozeman WFPU for more information. Bozeman Water Facility Plan Update 3. To facilitate traffic movement, the provision of emergency services and the placement of utility easements, all developments must be provided with a second means of access. If, in the judgement of the development review committee (DRC), a second dedicated right-of- way cannot be provided for reasons of topography or other physical conditions, the developer must provide an emergency access, built to the standards detailed in these regulations. The applicant is advised that the surrounding arterial and collector street infrastructure network that would service the subject property has not yet been constructed. Additional development of the arterial and collector street network in the vicinity of the subject property will be required to accommodate proposed traffic demands anticipated within an R-4 zoned district in order to provide adequate, safe, and sufficient access for 717 Staff Report for the Harper’s Corner Annexation and ZMA, Application 23127 Page 14 of 34 vehicular, pedestrian, emergency, and multi-modal forms of transportation upon future development of the property. Given the present conditions, multiple options for offsite improvements to the arterial and collector street network could be employed to satisfy City requirements and cannot be predicted at the time of annexation and will be reviewed with future development applications. 4. Half streets are prohibited except when they are essential to the development, are beneficial to the City, or when the review authority is satisfied that the half street will be dedicated to the public after the adjoining property is developed. The applicant is advised that upon future development both Catamount Street and North Ferguson Avenue would need to be constructed to satisfy City standards as defined within the transportation master plan. Any required right-of-way ROW or public street and utility easement acquisition from offsite property owners is the applicant’s responsibility. 5. The proposed project is located in an area that is known to have seasonally high groundwater. The applicant must demonstrate that seasonal high groundwater will not impact the function or maintenance of future proposed facilities. Industry guidance recommends a three-foot minimum separation from the bottom of the proposed facility to the underlying groundwater table. The applicant must provide local seasonal high groundwater elevations to support the future development designs. SECTION 3 - RECOMMENDED CONTINGENCIES OF ZONE MAP AMENDMENT Please note that these contingencies are necessary for the City to complete the process of the proposed amendment. These contingencies only apply in the event that the related annexation request has previously been approved. Recommended Contingencies of Approval: 1. The applicant must submit a zone amendment map, titled Harper’s Corner Annexation Zone Map Amendment, acceptable to the Director of Transportation and Engineering, as a PDF which will be utilized in the preparation of the Ordinance to officially amend the City of Bozeman Zoning Map. Said map shall contain a metes and bounds legal description of the perimeter of the subject property including adjacent rights-of-way for Hidden Valley Road, and total acreage of the property. 2. The Ordinance for the Zone Map Amendment shall not be drafted until the applicant provides an editable metes and bounds legal description prepared by a licensed Montana surveyor. 3. That all documents and exhibits necessary to establish the amended municipal zoning designation of R-4 (Residential High Density District) shall be identified as the Harper’s Corner Annexation Zone Map Amendment. 718 Staff Report for the Harper’s Corner Annexation and ZMA, Application 23127 Page 15 of 34 4. All required materials shall be provided to the Department of Community Development within 60 days of a favorable action of the City Commission or any approval shall be null and void. SECTION 4 - RECOMMENDATION AND FUTURE ACTIONS Annexation Having considered the criteria established for an annexation, the Development Review Committee (DRC) recommends approval of the requested annexation. The City Commission will hold a public meeting on the annexation on January 23, 2024. The meeting will begin at 6 p.m. Instructions on joining the meeting will be included on the meeting agenda. Zone Map Amendment Having considered the criteria established for a zone map amendment, the Staff rec ommends approval as submitted. The Zone Map Amendment (ZMA) is in conjunction with an annexation request. Staff’s recommendation and staff responses are predicated on approval of the annexation, application 23127. The Development Review Committee (DRC) considered the amendment. The DRC did not identify any infrastructure or regulatory constraints that would impede the approval of the application. The Community Development Board acting in their capacity as the Zoning Commission held a public hearing on this ZMA on September 11, 2023. A brief summary of their recommendation is on page three of this staff report. The City Commission will hold a public hearing on the zone map amendment on January 23, 2024. The meeting will begin at 6 p.m. Instructions on joining the meeting will be included on the meeting agenda. SECTION 5 - ANNEXATION STAFF ANALYSIS AND FINDINGS In considering applications for approval of the requested annexation, the advisory boards and City Commission shall consider the following: Commission Resolution No. 5076 Criteria Commission Resolution No. 5076 Goals 719 Staff Report for the Harper’s Corner Annexation and ZMA, Application 23127 Page 16 of 34 Goal 1: The City of Bozeman encourages annexations of land contiguous to the City. Goal Met. The property in question is contiguous to the City limits on the east that is approximately 1,323 lineal feet. Goal 2: The City encourages all areas that are totally surrounded by the City to annex. Goal Not Met. The subject property is not wholly surrounded in its entirety. This goal encourages annexation of wholly surrounded areas, it does not limit annexation of other areas. Goal 3: The City encourages all properties currently contracting with the City for City services such as water, sanitary sewer, and/or fire protection to annex. Goal Neutral. The subject property is currently occupied. It is not currently contracting with the City for water, sewer or fire protection services. Future development will be required to connect with City services. Goal 4: The City of Bozeman requires annexation of all land proposed for development lying within the existing and planned service area of the municipal water and sewer systems as depicted in their respective facility plans, any land proposed for development that proposes to utilize municipal water or sewer systems. Goal Met. The subject property lies within the planned service area of the municipal water and sewer services. Future proposed developments will be required to utilize municipal water and sewer systems as discussed in Recommended Terms of Annexation #7.e. above. The location of existing sewer and water services is shown on the two maps below. Existing sewer and water lines are located at Catamount and Davis Lane about one half mile from the southeast corner of the subject site. Both services are planned for future expansion that will include the Harper’s Corner property on Hidden Valley Road and Ferguson Avenue. 720 Staff Report for the Harper’s Corner Annexation and ZMA, Application 23127 Page 17 of 34 Map of wastewater collection system (dark green) within the city Map of water distribution system (blue) within the city Project Site Project Site Project Eighty-6 Project Eighty-6 721 Staff Report for the Harper’s Corner Annexation and ZMA, Application 23127 Page 18 of 34 Goal 5: The City encourages annexations within the urban area identified on the future land use map in the current Bozeman Growth Policy. Goal Met. As shown in Section 1, the subject property is planned as ‘Urban Neighborhood’ and is within the urban area of the growth policy. See the discussion under Criterion A of Section 6 of the report for more information on the growth policy. Goal 6: The City of Bozeman encourages annexations to make the City boundaries more regular rather than creating irregular extensions which leave unannexed gaps between annexed areas or islands of annexed or unannexed land. Goal Neutral. The proposed annexation will create a peninsula to the west similar to the Silo and Project Eighty-6 Annexation recently approved. However, this property in conjunction with the Silo and Project Eighty-6 properties begins infilling un-annexed area between existing city boundary to the south and the extension of the city boundary to the north and across I-90 with the annexation of the Nelson Meadows property (see Map Image 5 above). Goal 7: The City of Bozeman encourages annexations which will enhance the existing traffic circulation system or provide for circulation systems that do not exist at the present time. Goal Met. The subject property will provide additional right of way for Hidden Valley Road to the west which is designated by the City as a Collector street. Easements or future easements for Ferguson Avenue and Catamount Street are required by the terms of annexation (see Terms of Annexation #3, #4, #5 above). Although the improvements will not happen at the time of annexation, future development will be required to install these improvements as their frontage requirements. Connection of Ferguson Avenue and Catamount Street will advance the Transportation Master Plan and its depicted major street network, providing important connections in the NW part of the community. Upon future development, Hidden Valley Road will need to be constructed to the City’s adopted standards adjacent to the subject property. Future development within the annexing area will create a local street network to provide local services and will also provide connections back to the existing street network to the east connecting to Catamount Street. Goal 8: The City prefers annexation of parcels of land larger than five (5) acres in size, but will allow annexation of smaller parcels if factors such as topographic limitations, sanitary disposal needs, fire access, maintenance of public facilities, etc., justify a smaller annexation. Goal Met. The subject property is approximately 40 acres 722 Staff Report for the Harper’s Corner Annexation and ZMA, Application 23127 Page 19 of 34 Goal 9: The City seeks to obtain water rights adequate for future development of the property with annexation. Goal Met. After annexation, the subject property will be bound to the provisions of 38.410.130 which requires evaluation of water adequacy and provision of water as needed at time of development. The municipal code section requires water rights or an equivalent to be provided. Exact timing and amounts will be evaluated during development review. There are several methods to address the requirements of 38.410.130. The annexation agreement will provide notice of this requirement, see Recommended Terms of Annexation #7. The landowner will consent to this requirement by signature on the annexation agreement. Goal 10: The City of Bozeman encourages annexations for City provision of clean treated water and sanitary sewer. Goal Met. The subject property is located within the City’s planned water and sewer service area. See Goal 4 above. Any future development will be required to connect to the City systems. Per Term of Annexation 7.e., the Annexation Agreement required to finalize the annexation requires the applicant to design extensions of services to meet the City’s adopted infrastructure standards. These include provisions for minimum water pressure and volumes, adequate sewer flows by volume, gravity flow of sewers, and other standards necessary to protect public health and safety and ensure functional utilities. Resolution No. 5076 Policies Policy 1: Annexations must include dedication of all easements for rights-of-way for collector and arterial streets, adjacent local streets, public water, sanitary sewer, or storm or sewer mains, and Class I public trails not within the right of way for arterial or collector streets. Annexations must also include waivers of right to protest the creation of special or improvement districts necessary to provide the essential services for future development of the City. Criterion Met. As discussed in Section 5, Goal 7, additional right of way is being included for Hidden Valley Road, Catamount Street, and Ferguson Avenue. The Recommended Terms of Annexation include requirements for this right of way provision. See Terms of Annexation #3, #4 & #5. Additional easements may be required at the time of development as required to provide services. Policy 2: Issues pertaining to master planning and zoning must be addressed prior to or in conjunction with the application for annexation. Criterion Met. The subject property is planned for Urban Neighborhood. No change to the growth policy is required. The application includes a request for initial zoning of R-4. See the zone map amendment section of this report for analysis of the zone map amendment criteria. 723 Staff Report for the Harper’s Corner Annexation and ZMA, Application 23127 Page 20 of 34 Policy 3: The application for annexation must be in conformance with the current Bozeman Growth Policy. If a Growth Policy Amendment is necessary to accommodate anticipated uses, the amendment process must be initiated by the property owner and completed prior to any action for approval of the application for annexation. Criterion Met. The property is designated “Urban Neighborhood” on the future land use map. No growth policy amendment is required. See discussion under zone map amendment Criterion A. Policy 4: Initial zoning classification of the property to be annexed will be determined by the City Commission, in compliance with the Bozeman Growth Policy and upon a recommendation of the City Zoning Commission, simultaneously with review of the annexation petition. The City Zoning Commission will review the requested zoning district designation on January 23, 2024. The Community Development Board’s recommendation, acting in their capacity as the Zoning Commission, will be passed along to the City Commission for review and consideration along with the annexation request on January 23, 2024. Policy 5: The applicant must indicate their preferred zoning classification as part of the annexation petition. Criterion Met. The applicant initially requested R-5. As noted in the executive summary, the applicant has changed the requested zoning designation to R-4, Residential High Density district. See Section 6 of this report for analysis of the requested zoning. Policy 6: Fees for annexation processing will be established by the City Commission. Criterion Met. The appropriate application processing and review fees accompanied the application. Policy 7: It is the policy of the City that annexations will not be approved where unpaved county roads will be the most commonly used route to gain access to the property unless the landowner propos es a method to provide for construction of the road to the City’s street standards. Criterion Met. The subject property is accessed on the west by Hidden Valley Road which is a collector street and paved to the edge of the subject property. Upon future development, Hidden Valley Road will need to be constructed to the City’s standards adjacent to the subject property. Extensions of Ferguson Avenue and Catamount Street will be extended with future development and developed to the City’s paving standards. 724 Staff Report for the Harper’s Corner Annexation and ZMA, Application 23127 Page 21 of 34 Policy 8: Prior to annexation of property, the City will require the property owner to acquire adequate and usable water rights, or an appropriate fee in lieu thereof, in accordance with Section 38.410.130 of the municipal code, as amended. Criterion Met. The property owner shall provide usable water rights, or cash in-lieu of water rights thereof, in an amount to be determined by the Director of Transportation and Engineering, as outlined by Section 38.410.130 of the municipal code. The calculated amount will be determined by the Director of Transportation and Engineering, and based on the zoning designation approved by the City Commission. Terms of annexation #7 & #8 requires notice of this requirement to be part of the annexation agreement. Satisfaction of this requirement will occur with future development. Policy 9: Infrastructure and emergency services for an area proposed for annexation will be reviewed for the health, safety and welfare of the public and conformance with the City’s adopted facility plans. If the City determines adequate services cannot be provided to ensure public health, safety and welfare, the City may require the property owner to provide a written plan for accommodation of these services, or the City may reject the petition for annexation. Additionally, the parcel to be annexed may only be provided sanitary sewer service via the applicable drainage basin defined in the City Wastewater Collection Facilities Plan. Criterion Met. The area proposed for annexation will be adjacent to the City. City infrastructure and emergency services can be extended to the subject property. The property is located in the existing service areas of the Central Valley Fire District and Gallatin County Sherriff. The property is located within a half mile of the City’s water and sewer service areas by Davis Lane and Catamount Street. Expansion of municipal utility and park facilities to serve the development will occur during the development process. As noted above, the annexation agreement will require future development to meet municipal standards. Policy 10: The City may require annexation of any contiguous property for which city services are requested or for which city services are currently being provided. In addition, any person, firm, or corporation receiving water or sewer service outside of the City limits is required as a condition of initiating or continuing such service, to consent to annexation of the property serviced by the City. The City Manager may enter into an agreement with a property owner for connection to the City’s sanitary sewer or water system in an emergency conditioned upon the submittal by the property owner of a petition for annexation and filing of a notice of consent to annexation with the Gallatin County Clerk and Recorder’s Office. The contract for connection to city sewer and/or water must require the property owner to annex or consent to disconnection of the services. Connection for purposes of obtaining City sewer services in an emergency requires, when feasible as determined by the City, the connection to City water services. 725 Staff Report for the Harper’s Corner Annexation and ZMA, Application 23127 Page 22 of 34 Criterion Met. Currently there is an existing single household dwelling with outhouses serviced by an existing septic system. City services are not currently being provided to this property. Future development will be required to hook up to City services and the owner will need to abandon the existing septic and well (see Terms of Annexation #10 and #11). This annexation is not a result of an emergency condition requiring connection. Policy 11: The annexation application shall be accompanied by mapping to meet the requirements of the Director of Transportation and Engineering (formerly Public Works). Where an area to be annexed can be entirely described by reference to a certificate of survey or subdivision plat on file with the Gallatin County Clerk and Recorder the mapping may be waived by the Director of Transportation and Engineering. Criterion Met. A draft map was provided with the initial application. A final map reflecting the decision of the City Commission and which meets the requirements of the Director of Transportation and Engineering must be provided with the Annexation Agreement. Mapping requirements are addressed in Recommended Term of Annexation 2. The map must include adjacent right of way and therefore cannot be described solely by reference to platted lands. Policy 12: The City will assess system development/ impact fees in accordance with Montana law and Chapter 2, Article 6, Division 9, Bozeman Municipal Code. Neutral. The annexation does not require immediate payment of fees. The annexation agreement will provide notice of obligations to pay impact fees at times of triggers as required in ordinance. Policy 13: Public notice requirements: Notice for annexation of property must be coordinated with the required notice for the zone map amendment required with all annexation. The zone map amendment notice must contain the materials required by 38.220.410, BMC. Criterion Met. Notices of the public hearing have been mailed, published in the Bozeman Daily Chronicle twice, and posted on the site as required. Due to the change in requested zoning district a second notice was provided. See Appendix A for more details. Policy 14: Annexation agreements must be executed and returned to the City within 60 days of distribution of the annexation agreement by the City, unless another time is specifically identified by the City Commission. Criterion Met. This policy will be implemented only if the Commission acts to grant approval. If the application is denied then no annexation agreement will be necessary. Policy 15: When possible, the use of Part 46 annexations is preferred. Criterion Met. This annexation is being processed under Part 46 provisions. 726 Staff Report for the Harper’s Corner Annexation and ZMA, Application 23127 Page 23 of 34 Policy 16: Where a road improvement district has been created, the annexation does not repeal the creation of the district. The City will not assume operations of the district until the entirety of the district has been annexed. Any funds held in trust for the district will be used to benefit the district after transfer to the City. Inclusion within a district does not lessen the obligation to participate in general city programs that address the same subject. Neutral. No road improvement district is associated with this application. Policy 17: The City will notify the Gallatin County Planning Department and Fire District providing service to the area of applications for annexation. Criterion Met. The necessary agencies were notified and provided copies of the annexation and zoning application information. Policy 18: The City will require connection to and use of all City services upon development of annexed properties. The City may establish a fixed time frame for connection to municipal utilities. Upon development, unless otherwise approved by the City, septic systems must be properly abandoned and the development connected to the City sanitary sewer system. Upon development, unless otherwise approved by the City, water wells on the subject property may be used for irrigation, but any potable uses must be supplied from the City water distribution system and any wells disconnected from structures. The property owner must contact the City Water and Sewer Superintendent to verify disconnects of wells and septic systems. Criterion Met. Terms of annexation #11 requires full compliance with this policy. There is an existing home onsite. If approved and prior to any new development, all septic systems and water use for human consumption will be severed and abandoned. All future development will be required to connect to city services. SECTION 6 - ZONE MAP AMENDMENT STAFF ANALYSIS AND FINDINGS In considering applications for approval under this title, the advisory boards and City Commission must consider the following criteria (letters A-K). As an amendment is a legislative action, the Commission has broad latitude to determine a policy direction. The burden of proof that the application should be approved lies with the applicant. A zone map amendment must be in accordance with the growth policy (criteria A) and be designed to secure safety from fire and other dangers (criteria B), promote public health, public safety, and general welfare (criteria C), and facilitate the provision of transportation, water, sewerage, schools, parks and other public requirements (criteria D). Therefore, to approve a zone map amendment the Commission must find Criteria A-D are met. 727 Staff Report for the Harper’s Corner Annexation and ZMA, Application 23127 Page 24 of 34 In addition, the Commission must also consider criteria E-K, and may find the zone map amendment to be positive, neutral, or negative with regards to these criteria. To approve the zone map amendment, the Commission must find the positive outcomes of the amendment outweigh negative outcomes for criteria E-K. In determining whether the criteria are met, Staff considers the entire body of plans and regulations for land development. Standards which prevent or mitigated negative impacts are incorporated throughout the entire municipal code but are principally in Chapter 38, Unified Development Code. Section 76-2-304, MCA (Zoning) Criteria A. Be in accordance with a growth policy. Criterion Met. The Bozeman Community Plan (BCP) 2020, Chapter 5, p. 73, in the section titled Review Criteria for Zoning Amendments and Their Application, discusses how the various criteria in 76-2-304 MCA are applied locally. Application of the criteria varies depending on whether an amendment is for the zoning map or for the text of Chapter 38, BMC. The first criterion for a zoning amendment is accordance with a growth policy. Future Land Use Map The proposed amendment is a change to the zoning map. Therefore, it is necessary to analyze compliance with the future land use map. Chapter 3 of the BCP 2020 addresses the future land use map. The introduction to that chapter discusses the importance of the chapter. Following are some excerpts. “Future land use is the community’s fundamental building block. It is an illustration of the City’s desired outcome to accommodate the complex and diverse needs of its residents.” “The land use map sets generalized expectations for what goes where in the community. Each category has its own descriptions. Understanding the future land use map is not possible without understanding the category descriptions.” The area of this application is within the anticipated growth area of the City. As shown on the maps in Section 1, on the excerpt of the current future land use map, the property is designated as Urban Neighborhood. The Urban Neighborhood designation description reads: “This category primarily includes urban density homes in a variety of types, shapes, sizes, and intensities. Large areas of any single type of housing are discouraged. In limited instances, an area may develop at a lower gross density due to site constraints and/or natural features such as floodplains or steep slopes. Complementary uses such as parks, home-based occupations, fire stations, churches, schools, and some neighborhood-serving commerce provide activity centers for community gathering and services. The Urban Neighborhood designation indicates that development is expected 728 Staff Report for the Harper’s Corner Annexation and ZMA, Application 23127 Page 25 of 34 to occur within municipal boundaries. This may require annexation prior to development. Applying a zoning district to specific parcels sets the required and allowed density. Higher density residential areas are encouraged to be, but are not required or restricted to, proximity to commercial mixed use areas to facilitate the provision of services and employment opportunities without requiring the use of a car.” The correlation between the future land use map of the growth policy and the zoning districts is presented in Table 4 of the Bozeman Community Plan 2020. As shown in the following Correlation with Zoning Table excerpt, the R-4 district is an implementing district of the Urban Neighborhood category. Goals and Policies A zoning amendment is also evaluated against the goals and policies of the BCP 2020. Most of the goals and policies are not applicable to this application. Relevant goals and objectives have been identified by staff. Conflict with the text of the growth policy hasn’t been identified. The Short Term Action list on page 63 of the BCP 2020 describes 14 items to implement the growth policy. The first two relate to direct changes to the zoning map in support of listed goals and objectives. These include increasing the intensity of zoning districts in already developed areas. Beginning on page 71 of the BCP 2020 in the section titled Zoning Amendment Review, the document discusses how the City implements zoning for new a reas, amendments to areas, and revisions to existing text. This section includes a discussion of when the City may initiate a zoning change to a more intensive district to increase development opportunities. This section demonstrates that the City, as a matter of policy, is supportive of more intensive zoning districts and development. It is inconsistent with this approach to zone at annexation for lower intensities than what infrastructure and planning documents will support. This policy approach does not specify any individual district but does lean towards the more intensive portion of the zoning district spectrum. N-1.1 Promote housing diversity, including missing middle housing. N-1.3 Revise the zoning map to lessen areas exclusively zoned for single-type housing. Goal N-3: Promote a diverse supply of quality housing units. 729 Staff Report for the Harper’s Corner Annexation and ZMA, Application 23127 Page 26 of 34 The requested R-4 district supports all three of the above as it authorizes a wide range of housing types, lot sizes, and services to create a mix of housing, including “Missing Middle” housing as one of the critical components of affordable housing. Goal DCD-1: Support urban development within the City. The proposed zoning is occurring in conjunction with an annexation. Any future development will be required to occur at urban densities and will be within the City. If the City Commission declines the annexation then the requested R-4 zoning will not occur. DCD-1.11 Pursue annexations consistent with the future land use map and adopted facility plans for development at urban intensity. The proposed zoning is consistent with the future land use map and is within the current facilities plans. Goal RC-3: Collaborate with Gallatin County regarding annexation and development patterns adjacent to the City to provide certainty for landowners and taxpayers. Gallatin County has been notified of the proposed annexation. RC-3.3 Prioritize annexations that enable the incremental expansion of the City and its utilities. The property in question is contiguous to the City limits on the east on over 1,320 lineal feet. It adds approximately 40 acres to the City limits that is available for urban development. B. Secure safety from fire and other dangers. Criterion Met. The existing buildings are constructed of unknown quality, fire, and safety measures. Any removal and replacement must meet the development standards of the City. Fire protection water supply will be provided by the City of Bozeman water system. The property is not within any delineated floodplain nor does it have other known natural hazards. Upon annexation the subject property will be provided with City emergency services includin g police, fire and ambulance. Future development of the property will be required to conform to all City of Bozeman public safety, building, and land use requirements. The City provide s emergency services to adjacent properties and no obstacles have been identified in extending service to this parcel. C. Promote public health, public safety, and general welfare . Criterion Met. The proposed zoning designation will promote general welfare by implementing the future land use map and identified policies in the BCP 2020. Public health and safety will be positively affected by requiring new development to connect to municipal sanitary sewer and water systems, which will prevent groundwater pollution and depletion by wells and septic systems. 730 Staff Report for the Harper’s Corner Annexation and ZMA, Application 23127 Page 27 of 34 As noted in Criterion B, further development and redevelopment must be in accordance with modern building, access, stormwater, pedestrian circulation, ingress and egress to the site, and full connection to the greater transportation network for users ensuring the promotion of public health, safety and general welfare. D. Facilitate the provision of transportation, water, sewerage, schools, parks and other public requirements. Criterion Met. This property is included in future planning areas for transportation, parks, sewer, and water. The City conducts extensive planning for municipal transportation, water, sewer, parks, and other facilities and services provided by the City. The adopted plans allow the City to consider existing conditions and identify enhancements needed to provide additional service needed by new development. The City implements these plans through its capital improvements program that identifies individual projects, project construction scheduling, and financing of construction. As stated in 38.300.020.C, the designation of a zoning district does not guarantee approval of new development until the City verifies the availability of needed infrastructure. All zoning districts in Bozeman enable a wide range of uses and intensities. At time of future subdivision or site plan review the need for individual services can be more precisely determined. No subdivision or site plan is approved without demonstration of adequate capacity. 38.300.020.C, “Placement of any given zoning district on an area depicted on the zoning map indicates a judgment on the part of the city that the range of uses allowed within that district are generally acceptable in that location. It is not a guarantee of approval for any given use prior to the completion of the appropriate review procedure and compliance with all of the applicable requirements and development standards of this chapter and other applicable policies, laws and ordinances. It is also not a guarantee of immediate infrastructure availability or a commitment on the part of the city to bear the cost of extending services.” See also comments under Criterion C. The applicant has been advised that the subject property is located within the Baxter Creek Sewer Drainage Basin, which currently does not have any wastewater infrastructure to service the subject site and that prior to any future development, the applicant is advised all wastewater generated by the development must flow into the Hidden Valley Lift Station, which is currently in the early phases of design and is not yet developed. All future construction must extend services in conjunction with subdivision and site development. Those extensions must meet current standards and will advance this standard. E. Reasonable provision of adequate light and air. Criterion Met. The R-4 zoning designation has requirements for setbacks, height, and lot coverage in Table 38.320.030A [External Link] of the UDC which address the reasonable 731 Staff Report for the Harper’s Corner Annexation and ZMA, Application 23127 Page 28 of 34 provision of adequate light and air. Any future development of the property will be required to conform to City standards for setbacks, height, lot coverage, and buffering. Park dedication will also be required with future development as required by state law (76-3-621 MCA) and city ordinance (38.420.020 BMC). The criterion is not about personal preferences but about protection of public health and safety. The adopted standards address protection of public health and safety. In addition to the zoning standards, adopted building codes contain more detailed requirements for air circulation, window placement, and building separation that further ensure the intent of this criterion is satisfied. F. The effect on motorized and non-motorized transportation systems. Criterion Met. The proposed zoning will allow for a higher density of uses than is currently allowed under Gallatin County zoning. The Gallatin County zoning now in place is an agricultural protection zone which requires 20 acres per home. The site is presently occupied by a single household dwelling with outhouses on each parcel. Any development under Bozeman R-4 zoning will generate more traffic, on foot, bicycle, or vehicle, than the existing single family lot. To meet the adopted standards of 38.400, [External Link] when a development is proposed, it will be responsible for frontage improvements along Hidden Valley Road as well as Catamount Street and Ferguson Avenue when triggered. Improvements to Hidden Valley Road will allow future residents easy access to I-90 that lies just over a half mile from the subject site. Future development will be required to provide these improvements which will enhance the city’s motorized and non-motorized transportation systems. Local streets will be laid out and constructed as development proceeds. Sidewalks and bike facilities are minimum standards and will be constructed as needed. Easements for all the roads mentioned by name are required as part of the Terms of Annexation. G. Promotion of compatible urban growth. Criterion Met. The intent of the R-4 zone is to provide for mixed-use and high density residential development through a variety of housing types to serve the varying housing needs of the community’s residents. The subject property is adjacent to low-density residential uses to the southwest and west. There is an undeveloped parcel, within the city limits zoned REMU, and a mobile home park directly north of the site. The R-4 district allows for a wide range of residential uses which allows for consideration of existing development to the north and west. In addition, the proposed zoning is in accordance with the Bozeman Community Plan’s future land use designation of Urban Neighborhood. Use of high density residential is appropriate for areas adjacent to a variety of land uses and can stand along to develop its own neighborhood character, as described in residential intent and purpose statement. Surrounding county zoning and unzoned properties to the north, west and south include low to medium residential density, and vacant land. East of project site is 732 Staff Report for the Harper’s Corner Annexation and ZMA, Application 23127 Page 29 of 34 now zoned Residential Emphasis Mixed Use (REMU) that will contain a wide mix of housing types. The site is at the intersection of current and future arterial and collector streets which will provide physical separation from adjacent existing development to the west and south. H. Character of the district. Criterion Met. Section 76-2-302, MCA says “…legislative body may divide the municipality into districts of the number, shape, and area as are considered best suited to carry out the purposes [promoting health, safety, morals, or the general welfare of the community] of this part.” Emphasis added. This proposal amends the zoning map and not the text. Therefore, no element of this amendment modifies the standards of any zoning district. The character of the districts as created by those standards remains intact. As noted above, the City Commission has latitude in considering the geographical extents of a zoning district. Application of any municipal zoning district to the subject property will alter the existing agricultural character of the subject property. It is not expected that zoning freeze the character of an area in perpetuity. Rather, it provides a structured method to consider changes to the character. The intent and purpose of the R-4 district is available in 38.300.100.E [External Link] and in Appendix B of this report. The City has defined compatible development as: “The use of land and the construction and use of structures which is in harmony with adjoining development, existing neighborhoods, and the goals and objectives of the City's adopted growth policy. Elements of compatible development include, but are not limited to, variety of architectural design; rhythm of architectural elements; scale; intensity; materials; building siting; lot and building size; hours of operation; and integration with existing community systems including water and sewer services, natural elements in the area, motorized and non-motorized transportation, and open spaces and parks. Compatible development does not require uniformity or monotony of architectural or site design, density or use.” The City has adopted many standards to identify and avoid or mitigate demonstrable negative impacts of development. These will support the ability of future development in R-4 to be compatible with adjacent development and uphold the residential character of the area. As noticed in the growth policy under discussion of this criterion a local street is considered an adequate separation between different uses and districts to minimize impacts, see page 77. The existing character of the site is a single household large lot. Any change in zoning will modify the essential character of the property. To the east is a vacant lot recently annexed zoned REMU, which will allow a variety of high density housing. To the west is low density housing in the county and north is a mobile home park. Directly south is a vacant lot within 733 Staff Report for the Harper’s Corner Annexation and ZMA, Application 23127 Page 30 of 34 the county. Therefore, there is a diversity of character in the specifics but a general character of residential uses which is consistent with the R-4 zone. The zoning amendment is in conjunction with annexation of the property. Annexation and urban zoning will change the character of the application site. However, the requested zoning is consistent with adjacent urban zoning. The urban zoning will be separated by a public street from the low density, unzoned area to the west. It will not be separated from the mobile home park to the north and vacant lot to the south. It is appropriate to zone the annexing area consistent with the current growth policy and other standards of the City. The amendment does not alter the allowed uses or standards within the adjacent unzoned low density subdivision or the mobile home park to the north. I. Peculiar suitability for particular uses. Criterion Met. The property is within the City’s planning area for land use and utility extensions. There is frontage on Hidden Valley Road, a collector street. Upon future development, Hidden Valley Road will be constructed to municipal Street Standard adjacent to the property. Municipal utilities and emergency services can be extended to the area. The proposed R-4 zoning designation is suitable for the property’s location and adjacent uses. J. Conserving the value of buildings. Criterion Met. There is one single family dwelling with associated outbuildings on each of the two subject properties. The amendment is for the zoning map and does not alter allowed uses on adjacent properties. K. Encourage the most appropriate use of land throughout the jurisdictional area. Criterion Met. The proposed R-4 zoning designation will encourage the most appropriate use of land as the property is near residential uses. Upon future development, there will be access to the city’s services, including streets, thus the site is able to support a higher intensity of uses as allowed within the R-4 zoning district. Furthermore, the proposed R-4 zoning designation is consistent with the BCP 2020 future land use map designation of “Urban Neighborhood”. PROTEST NOTICE FOR ZONING AMENDMENTS IN THE CASE OF WRITTEN PROTEST AGAINST SUCH CHANGES SIGNED BY THE OWNERS OF 25% OR MORE OF THE AREA OF THE LOTS WITHIN THE AMENDMENT AREA OR THOSE LOTS OR UNITS WITHIN 150 FEET FROM A LOT INCLUDED IN A PROPOSED CHANGE, THE AMENDMENT SHALL NOT BECOME EFFECTIVE EXCEPT BY THE FAVORABLE VOTE OF TWO-THIRDS OF THE PRESENT AND VOTING MEMBERS OF THE CITY COMMISSION. The City will accept written protests from property owners against the proposal described in this report until the close of the public hearing before the City Commission. 734 Staff Report for the Harper’s Corner Annexation and ZMA, Application 23127 Page 31 of 34 Pursuant to 76-2-305, MCA, a protest may only be submitted by the owner(s) of real property within the area affected by the proposal or by owner(s) of real property that lie within 150 feet of an area affected by the proposal. The protest must be in writing and must be signed by all owners of the real property. In addition, a sufficient protest must: (i) contain a description of the action protested sufficient to identify the action against which the protest is lodged; and (ii) contain a statement of the protestor's qualifications (including listing all owners of the property and the physical address), to protest the action against which the protest is lodged, including ownership of property affected by the action. Signers are encouraged to print their names after their signatures. A person may in writing withdraw a previously filed protest at any time prior to final action by the City Commission. Protests must be delivered to the Bozeman City Clerk, 121 North Rouse Ave., PO Box 1230, Bozeman, MT 59771-1230. APPENDIX A - NOTICING AND PUBLIC COMMENT Notice was originally published in the Bozeman Daily Chronicle on August 26th and September 2nd, 2023. Due to a delay in the City Commission hearing and a revision to the initial zone district from R-5 to R-4, an additional notice for this change in the application was published in the Bozeman Daily Chronicle on December 23rd and December 30th, 2023. The notice was posted on site and notices mailed by the applicant as required by 38.220 [External Link] and the required confirmation provided to the Planning Office. Notice was provided at least 15 and not more than 45 days prior to any public hearing. As of the writing of this report on January 10, 2024, written comments have been received on this application. Any received comments will be made available through the City’s Laserfiche system. APPENDIX B - PROJECT GROWTH POLICY AND PROPOSED ZONING Adopted Growth Policy Designation: The property is designated as “Urban Neighborhood” in the Bozeman Community Plan 2020. “This category primarily includes urban density homes in a variety of types, shapes, sizes, and intensities. Large areas of any single type of housing are discouraged. In limited instances, an area may develop at a lower gross density due to site constraints and/or natural features such as floodplains or steep slopes. Complementary uses such as parks, home-based occupations, fire stations, churches, schools, and some neighborhood-serving commerce provide activity centers for community gathering and services. The Urban Neighborhood designation indicates that development is expected to occur within municipal boundaries. This may require annexation prior to development. 735 Staff Report for the Harper’s Corner Annexation and ZMA, Application 23127 Page 32 of 34 Applying a zoning district to specific parcels sets the required and allowed density. Higher density residential areas are encouraged to be, but are not required or restricted to, proximity to commercial mixed use areas to facilitate the provision of services and employment opportunities without requiring the use of a car.” Proposed Zoning Designation and Land Uses: The applicant has requested zoning of R-4, Residential High Density district whose intent is to: Residential High Density District (R-4). The intent of the R-4 residential high density district is to provide for high-density residential development through a variety of housing types within the city with associated service functions. This purpose is accomplished by: 1. Providing for minimum lot sizes in developed areas consistent with the established development patterns while providing greater flexibility for clustering lots and mixing housing types in newly developed areas. 2. Providing for a variety of compatible housing types, including single and multi- household dwellings to serve the varying needs of the community’s residents. 3. Allowing office use as a secondary use, measured by percentage of total building area. Use of this zone is appropriate for areas adjacent to mixed-use districts, commercial districts, and/or served by transit to accommodate a higher density of residents in close proximity to jobs and services. The Zoning Correlation Table on Page 58 of the Bozeman Community Plan 2020 correlates zoning districts with the Growth Policy’s land use categories, demonstrating that the proposed zoning designation of R-4 correlates with the Growth Policy’s future land use designation of “Urban Neighborhood”. 736 Staff Report for the Harper’s Corner Annexation and ZMA, Application 23127 Page 33 of 34 737 Staff Report for the Harper’s Corner Annexation and ZMA, Application 23127 Page 34 of 34 APPENDIX C - OWNER INFORMATION AND REVIEWING STAFF Owner/Applicant: Russell Hosner LLC, PO Box 10190, Bozeman MT 59719 Representative: WGM Group, 109 E Main St. Suite B, Bozeman MT 59715 Report By: Elizabeth Cramblet, Associate Planner, Community Development Department FISCAL EFFECTS No unusual fiscal effects have been identified. No presently budgeted funds will be changed by this Annexation or Zone Map Amendment. ATTACHMENTS The full application and file of record was electronically submitted and can be viewed at the Community Development Department. Select ‘Project Documents’ and navigate to application 21442 to view the full application. Digital access is also available at the Community Development Department at 20 E. Olive Street, Bozeman, MT 59715. Application materials direct link: Application 23127, Harper’s Corner 738 Memorandum REPORT TO:City Commission FROM:Brian Heaston - Interim Director of Utilities Nicholas Ross - Director of Transportation and Engineering Shawn Kohtz - City Engineer SUBJECT:Workshop – Gallatin Valley Water and Wastewater Regionalization Feasibility Study MEETING DATE:January 23, 2024 AGENDA ITEM TYPE:Plan/Report/Study RECOMMENDATION:Workshop – Gallatin Valley Water and Wastewater Regionalization Feasibility Study. STRATEGIC PLAN:6.1 Clean Water Supplies: Ensure adequate supplies of clean water for today and tomorrow. BACKGROUND:The Gallatin Valley Water and Wastewater Regionalization Feasibility Study (Study) is a conceptual-level engineering analysis of large-scale water and wastewater infrastructure solutions capable of serving the projected long- range water supply and wastewater treatment needs of the rapidly growing Gallatin Valley. The Study is a partnership effort between the City of Bozeman (City), City of Belgrade, and Gallatin County since all three public agencies are experiencing rapid growth that is expected to continue into the future. The Study evaluates both water supply and wastewater infrastructure solutions, because the use of water necessarily requires the collection, treatment, and disposal of wastewater. The Study focuses its planning area on the geographic triangle between City of Bozeman, City of Belgrade, and Four Corners as this location represents the rapidly urbanizing core of the Gallatin Valley (note: the Four Corners County Water and Sewer District was approached to participate in this Study but declined.) A long-range population of 450,000 people is projected to fill this geographic planning area by the year 2070 at current urban densities and growth rates. To adequately serve a population of this magnitude, a new and significant municipal water supply source is required. Canyon Ferry Reservoir is a water supply source with existing municipal water rights that is capable of meeting the water needs of a population of this size. Canyon Ferry is a federal water project that is owned and operated by the Bureau of Reclamation. It was planned and constructed to provide the multi-purpose benefits of flood control, hydropower, and regional water supply storage for agricultural, municipal, and industrial uses. 739 The Study builds on previous planning efforts completed by the City, namely the 2013 Integrated Water Resources Plan (IWRP), 2017 Water Facility Plan (WFP), and 2020 Community Plan. The 2013 IWRP evaluated the Canyon Ferry water supply option, but at that time it did not rise to the level of inclusion in the City’s recommended long-range water supply alternatives. The IWRP projected a 50-year future population of 140,000 in the City, which proved too costly to support the Canyon Ferry supply option. The 2017 WFP evaluated water transmission and distribution infrastructure necessary to serve the ‘ultimate buildout’ of the City’s planning boundary; however, the amount of water required to meet this demand condition substantially exceeds the City’s current reliable water supply. The 2020 Community Plan calls on the City to engage in regional coordination of its land use and infrastructure plans with other public agency stakeholders. The majority of the future land use designation contained in the 2020 Community Plan is ‘Urban Neighborhood’, a designation that signals development is planned to be consistent with current urban patterns and densities. The Community Plan indicates approximately 23,000 acres of land designated as Urban Neighborhood. The Gallatin Valley Water and Wastewater Regionalization Feasibility Study is therefore a continuation of previous planning efforts and takes the necessary first step in evaluating the conceptual-level feasibility of regional water (and wastewater) infrastructure solutions. The Study finds that regional water and wastewater infrastructure solutions that utilize Canyon Ferry Reservoir as a water supply are technically feasible but come at a substantial cost, estimated at the conceptual level to range from $1.4 - $5.7 billion. Distributing the mid-range of this estimated cost amongst the projected population served of 450,000 equates to approximately $15,000 per residential connection. It must be understood that this cost is preliminary in nature but does provide a starting point for identifying the cost impact. $15,000 per residential connection infrastructure cost is about equivalent to that of installing an exempt domestic water well and onsite septic system for a single family home and is approximately 3 times the City’s current water and sewer impact fees paid for a typical new single family residence. Costs of the magnitude estimated in the Study are potentially too excessive for the City to grapple with alone and would thus require the participation of other government entities to create a regional water and sewer authority with a governance structure suitable to the forming parties. The formation of a regional authority requires a negotiated process that would take time and thoughtful consideration of all participating entities. Formation of a regional authority is only a potential next step in the pursuit of a regional water and sewer project and is not deterministic of such a project coming to fruition. A timeframe of greater than 20 years would be expected to deliver the water and wastewater regional infrastructure conceptualized in the Study. 740 At this work session, Staff requests that the City Commission advise: 1) Should the City begin a public engagement effort to educate the community about the Study’s purpose and findings and to collect community input?; and 2) Should the City begin a dialogue with local, State, and federal entities that explores the potential formation of a regional water and wastewater authority? Executive summary-level technical information regarding the Study’s basis of planning, water and wastewater infrastructure alternatives, financial and economic findings, and regional authority governance alternatives are provided as Attachment 1 to this memorandum. UNRESOLVED ISSUES:a. Should the City begin a public engagement effort to educate the community about the Study’s purpose and findings and to collect community input? b. Should the City begin a dialogue with local, State, and federal entities that explores the potential formation of a regional water and wastewater authority? ALTERNATIVES:As Suggested by the City Commission. FISCAL EFFECTS:Fiscal effects will be developed for actions directed by the City Commission and provided at future Commission Meetings. Attachments: Attachment 1 - Executive Summary Technical Information Report compiled on: November 17, 2023 741 ATTACHMENT 1 Introduction The population of Gallatin County has doubled in the last 25 years and is rapidly approaching 125,000 people based on data from the 2020 U.S. Census. If current growth rates continue, the County’s population has the potential to double again in just 18 years to nearly 250,000 people. This growth will come with a corresponding increased demand for water and wastewater service capacities. Water in the Gallatin Valley is relatively scarce due to the valley’s headwaters setting and location in a closed water rights basin. A closed basin means the State of Montana will not issue new surface water rights, and groundwater water rights must mitigate adverse effects to existing surface water rights. Given the high population growth rates and physical and legal water supply limitations, the City of Bozeman, City of Belgrade, and Gallatin County (Agencies) partnered on a feasibility study to evaluate, at the concept level, long-term and large-scale regional water and wastewater infrastructure solutions utilizing Canyon Ferry Reservoir as the water supply source. Regional sewage collection, treatment, and disposal alternatives were also evaluated since the use of water necessarily entails planning for wastewater utility infrastructure. The study is a feasibility-level analysis, meaning the concepts and information provided are broad in focus and intended to assess the practicality, or lack thereof, of water and wastewater regionalization. Cost estimates, funding strategies, and financial implications were analyzed for both water and wastewater regionalization. If a project is advanced, many more steps will be required to achieve a regional water and/or wastewater solution over a period of several decades. Basis of Planning Planning Area The cities of Bozeman and Belgrade are the largest urban areas in Gallatin County, and both have established future growth boundaries. If these areas develop at the densities currently being encouraged and constructed, the resulting populations will exceed currently available water supplies and treated wastewater disposal capacity. Given these growth patterns, the planning area was set by combining both cities’ growth boundaries to form a joint 134-square mile boundary. This resulted in an area approximately five times larger than what is occupied by the cities’ existing boundaries, but an area that is consistent with both community’s current growth planning boundaries. The planning area is indicated in Figure 1. Population Projections Over 100,000 people currently live in Gallatin County, with approximately three quarters of the population concentrated in and around the cities of Bozeman and Belgrade. The Study assessed three community growth scenarios to project future population within the planning area. A sustained 4% growth rate was assumed as the basis of planning and applied over a 50-year planning period. The result of this projection estimates that the cities of Belgrade and Bozeman would collectively have approximately 450,000 residents by 2070. 742 Figure 1. Planning Area Map 743 Population densities for several growing western U.S. communities (e.g. Boise, Bend, Fort Collins, etc.) were surveyed to cross-check the projected population estimate to verify that the 450,000-person estimate is realistic given the size of the planning area and future land-use designations. However, it is challenging to predict long- term future spatial and demographic characteristics given uncertain future growth conditions. The Water Supply Challenge Limited Water Supplies As of 2023, the cities of Bozeman and Belgrade have a combined legal water portfolio of approximately 23,000 acre-feet per year. The City of Bozeman has approximately 16,000 acre-feet of municipal water rights, which can reliably support a population of about 87,000 people. The City of Belgrade has existing groundwater rights of approximately 7,000 acre-feet, which can support approximately 50,000 people. Combined, the total population the existing cities’ water rights is estimated to serve is about a third of the study’s projected population of 450,000 people. Water Demand If the Planning Area is to grow to the projected population of 450,000 people, a new large-scale and long-range water supply will be required. The 2070 total water demand was estimated using a 120-gallon per capita per day (gpcd) assumption. The legal water volume currently available to the agencies was subtracted from the estimated 2070 demand to estimate the future water supply gap for the planning area. Figure 2 illustrates the water supply gap. Based on the growth scenario of 4% per year, the 2070 planning year, and current water usage volumes, the study identified a water supply gap of about 40,000 acre-feet per year for the planning area. Without a regional water solution, the water supply gap means that the cities will have to rely heavily on their own independent water supply solutions and compete for limited resources. Several short and medium range water supply options are viable, such as converting existing water rights to municipal use, expanding conservation programs, implementing wastewater reuse strategies, and securing water rights on the open market through purchase or annexation. This study is not the subject of those options. Regional Water Supply Solution Options Procuring, treating, and distributing approximately 40,000 acre-feet of water is a major and costly undertaking; however, this size of project has been and will continue to be completed in many areas of the Western United States that are grappling with similar community growth in water scarce areas. Successful implementation of such a project would require collaboration with local, state, and federal governmental agencies. Considering the scale, cost, and magnitude of the challenges associated with such a project, four alternative water supply options were reviewed, including accessing stored water in the Canyon Ferry Reservoir, pulling water from the Missouri River downstream of the Town of Three Forks, withdrawing water from the mainstem Gallatin River near the Town of Manhattan, and recharging and recovering water from the Gallatin Valley aquifer using spring runoff (Aquifer Storage and Recovery, or ASR). Figure 3 summarizes regional water supply options considered. 744 Figure 2. Water Supply Gap for the 50-Year Planning Horizon 745 Figure 3. Regional Water Supply Reaches 746 All three of the surface water withdrawal options would require use of the stored water rights in Canyon Ferry; however, withdrawing surface water further upstream in the watershed would require complex water right negotiations, but the reduction in infrastructure costs given shortened conveyance distances warrants consideration. However, withdrawing water from Canyon Ferry is in line with the reservoir’s intended use, the Bureau of Reclamation’s organizational goals, and the supply of water rights on the reservoir far exceeds the long- term demand estimates. Canyon Ferry Reservoir is a large-scale water supply option that can meet the long-term water supply needs for the planning area. The reservoir stores up to 1.9-million-acre feet of water and was constructed to provide water to the region. As of 2023, there is approximately 300,000 acre-feet (ac-ft) of water available for municipal use, which is well beyond the 40,000 acre-feet of additional water supply projected by this study. Regional Water Infrastructure Components Canyon Ferry Reservoir is a water source with few technical and legal barriers. Importantly, it is a reliable water source given its overall volume and water quality. The primary challenge with developing a Canyon Ferry Reservoir water supply is its distance and the resulting costs associated with an intake structure, approximately 50-miles of large diameter conveyance pipe, and associated infrastructure to transport and deliver water to the planning area. Figure 4 summarizes potential water facility locations and pipeline routes. Water Supply Pipeline Route Three distinct pipeline routes were analyzed: An eastern route through the Maudlow area, a route over the Horseshoe Hills, and a route using Highway 287 near the Town of Three Forks. The Highway 287 route is the most likely alternative, given its relatively moderate grades, primary land classifications in its path, and overall accessibility for construction and maintenance. Water Supply Pipeline Sizing To convey the amount of water needed by the Planning Area, a conveyance comprised of 54” to 72” diameter pipe would be required. Installation of a 50-mile pipe of this diameter would require over a decade to complete, including design, easement acquisition, funding, agency permitting, and construction. 747 Figure 4. Pipeline Routes and Key Project Components 748 The Wastewater Treatment and Discharge Challenge Wastewater treatment and discharge is challenging in the Gallatin Valley, due to the headwaters location, with relatively small streams, some of which have been deemed impaired for nitrogen and phosphorus (nutrients) as well as the hydraulic connection between shallow groundwater and the valley’s surface water bodies. City of Bozeman The City of Bozeman’s existing Water Resource Recovery Facility (WRF) discharges effluent to the East Gallatin River. The Montana Pollutant Discharge Elimination System (MPDES) permit (MT0022608) for the facility allows up to 783 pounds per day (lb/day) of total nitrogen and 160 lb/day of total phosphorus discharge, on an average monthly basis, to the East Gallatin River, during the nutrient season (June 1 – September 30). A Total Maximum Daily Load (TMDL) for the East Gallatin was adopted in 2013 by DEQ. The TMDL process utilizes waste load allocations (WLAs) for stretches of the East Gallatin, and the stretch that the City of Bozeman WRF is located on has a WLA of 34.8 lb/day of total nitrogen and 3.48 lb/day of total phosphorus, remarkably less than what the WRF currently discharges. The City has been conducting water quality studies on the stretch of the East Gallatin upstream and downstream of the WRF outfall, the results of which indicate that the stream’s algal blooms are phosphorus limited. Potentially, the City will be able to obtain a future waste load allocation that is scientifically defensible and reflective of this condition, with a “limit of technology” phosphorus limit but a more forgiving nitrogen limit. Additionally, the Montana Department of Environmental Quality (DEQ) is in the final stages of issuing new rulemaking and a permitting framework that will utilize narrative nutrient standards, that will be based on numeric response variables - direct measures of a receiving waterbody’s ecological health (e.g., variations in dissolved oxygen due to algal blooms, benthic algae coverage, Beck’s Biotic Index, and instream nutrient concentrations). Dischargers will have the option to work towards stream water quality criteria using an Adaptive Management Planning (AMP) approach if desired. The City of Bozeman’s historical and ongoing data collection efforts and studies could potentially inform a revision to the East Gallatin TMDL through a DEQ approved AMP. If collected response variable data indicate different target response variables and long-term ecoregional nutrient standards are more appropriate than those used in the current TMDL for achieving the narrative nutrient standards, the TMDL may be revised. The City’s WLA would also be revised and the MPDES permit limit would subsequently be modified to reflect the new WLA. The challenges for the City of Bozeman’s WRF, aside from the very challenging TMDL and MPDES situations, include potentially adding a phosphorus treatment facility that can reduce effluent phosphorus to “limit of technology” concentrations, and overall expansion of liquid and biosolids treatment and management facilities. The AMP approach, however, may offer other solutions to nutrient water quality standards compliance that may not necessarily require expensive limit of technology nutrient treatment improvements. Adaptive options generally come at a lower cost and may include nonpoint source nutrient controls, such as wetland treatment of major agricultural returns, as well as connecting residential neighborhoods utilizing individual septic systems to the municipal sewer system. 749 City of Belgrade The City of Belgrade currently discharges treated effluent to shallow groundwater through Rapid Infiltration Beds (RIBs), and turf irrigation near the Bozeman Yellowstone International Airport. Belgrade’s groundwater discharge is regulated by the Montana Groundwater Pollution Control System (MGWPCS, permit no. MTX000116). The MGWPCS permit specifies maximum daily loads for total nitrogen, which are intended to prevent exceedance of 10 milligrams nitrogen per liter (mg N/L) in groundwater at the down-gradient end of the mixing zone, 10 mg/L being the human health standard applied to groundwater in the State. The existing present nitrogen loading rates are 71 pounds per day (lbs./day) for IP-A, 72 lbs./day for IP-B, and 84 lbs./day for IP-C, which sums to a total average permitted TN discharge of 227 lbs./day. The City currently has no discharge limit for phosphorus, as the adsorptive capacity of the substrate has been deemed high enough to limit phosphorus migration through the groundwater. The challenges for the City of Belgrade’s wastewater treatment and disposal facilities are that irrigation at the airport is eventually going to be ceased, and more RIBs will need to be constructed to account for the reduced irrigation and the City’s rapidly growing population. Land is limited at the current Water Resource Recovery Facility site and long-term build-out capacity of groundwater discharge at the site has not been determined. The City completed a $36M liquids only upgrade and expansion in 2022. Long-term, biosolids treatment and management facilities will be needed, a second expansion of the WRRF liquid treatment facility will be necessary, and the City will need to obtain a new MGWPCS permit for the expanded facility, with associated new RIBs. Regional Wastewater Solution Options Wastewater treatment facility construction costs have escalated nationally and especially regionally in recent years, well beyond inflation rates for other economic endeavors. With both cities facing expensive challenges with near and long-term wastewater treatment and discharge, and biosolids treatment and management, the rapid development of the land between the two communities, and the already large economy of scale that exists with wastewater treatment facility construction, a regional wastewater treatment, effluent and biosolids management approach would appear to be a practical solution for both agencies. It would also provide economies of scale on operation and management of facilities, including the workforce challenge. Regional Wastewater Infrastructure The total wastewater treatment capacity needs for the 2070 planning area was estimated along with the probable caps on the individual cities treatment capacities to estimate the needed capacity from a regional WRRF. The result indicates a facility of 40 million gallons per day (MGD), on an average annual flow basis, would be needed. Disposal via surface water or groundwater discharge, or effluent reuse, is the critical of a determinant of wastewater treatment facility design and associated costs. Costs were developed for a shared water resource recovery facility northwest of Belgrade. This potential facility was discussed with Montana DEQ staff in light of effluent discharge and/or reuse challenges. The potential exists to reuse some effluent for agricultural purposes, discharge some effluent to groundwater, and discharge some effluent to the mainstem Gallatin River. To support any of these three effluent disposal approaches, the Facility would utilize limit of technology treatment for nutrients. Figure 5 provides an overview of a potential regional facility location. 750 Figure 5. Regional Facility Locations Financials and Economic Analysis The costs for a regional water and wastewater system capable of serving the projected population would be between $1.4 and $5.7 Billion. The broad range is the result of applying uncertainty ranges recommended by the American Association for the Advancement of Cost Engineering (AACE) and is a Class V estimate under these guidelines (0 to 2% design completion for concept screening), warranting use of bracketing of the project estimate from -50% on the low end and +100% on the high end. This wide estimate accuracy range is driven by project variables and risk mitigation for the low level of maturity of the project definition. Cost estimates are summarized in Figure 6 for both regional water supply and regional wastewater treatment. Figure 6. Estimated Regional System Costs 751 Regionalization projects can be phased to some degree, but the scope of this initial feasibility study was to evaluate cost from a full build-out perspective. Much of the raw water infrastructure would inherently need to be built at full-scale at the beginning of the project (for example, intake structures and the raw water pipeline). A detailed phasing plan was beyond the scope of this initial study. Impact (connection) fees are not likely to be sufficient to fund a project of this magnitude. Combined water and wastewater regional system connection fees would have to be on the order of $15,000 per residential unit. Substantial new funding sources would be necessary. These sources would likely include state and federal grants, and potentially federally authorized appropriations among other local funding sources. Governance Alternatives Several governance considerations exist when undertaking a regional infrastructure project that will serve numerous entities. There are multiple options and key questions that must be resolved for organizing and overseeing a regional entity, including: • Who owns and maintains the infrastructure? • What is the governing authority’s foundation and structure? • How many seats and votes do member agencies have on the governing Board? • How do decisions get made? In 1999, Montana’s legislature enacted the “Regional Water and Wastewater Authority Act” (Title 75, Ch. 6, Part 3), which clearly defines the process to establish a regional water authority and gives that authority “all the powers, privileges, and authority conferred… …upon a public agency.” The creation of a regional authority is not a commitment to a project, and it could be terminated at any time. The benefits of establishing a regional authority at this stage would be to facilitate regular communication between the agencies on the critical topics of regional water supply, wastewater treatment, and effluent management. In addition, the formation of a regional authority gives the agencies the ability to apply for funding to support subsequent studies and investigations. Although the legal mechanism to form a regional authority is relatively straightforward, forethought and early decisions are required to determine precise representation, composition, vote share, and other foundational elements, which would take time to negotiate. Governance structure can be amended by votes; however, establishing mutually agreed upon governance terms and a strong foundation early on is an important first step in the successful formation of a regional authority. In the lead up to this study, other water and sewer agencies in the Gallatin Valley were approached to assess their interest in participating in the study; however, the City of Bozeman, City of Belgrade and Gallatin County chose to participate in the study. If formed, the regional authority can bring on additional public agencies in the future with the consent of the signatories to the agreement establishing the authority. Timeline Regional projects require a substantial amount of time to develop. Such projects require decades to accomplish, which is why this study was prepared to inform decisions to proceed with early project steps, or not. Other smaller water supply options, such as those the cities are already pursuing, would be needed in the short and medium 752 term until a regional water supply could be developed. Figure 7 provides a conceptual roadmap and timeframe to develop projects on the scale and scope of this study. Figure 7. Conceptual Project Roadmap and Timeframe 753 Memorandum REPORT TO:City Commission FROM:Alex Newby, Deputy City Clerk Sarah Rosenberg, Associate Planner Erin George, Deputy Director of Community Development Anna Bentley, Director of Community Development SUBJECT:Appointment to the Historic Preservation Advisory Board. MEETING DATE:January 23, 2024 AGENDA ITEM TYPE:Citizen Advisory Board/Commission RECOMMENDATION:I move to appoint to appoint one member to the Historic Preservation Advisory Board to the at-large position with a term expiring June 30, 2025. STRATEGIC PLAN:1.2 Community Engagement: Broaden and deepen engagement of the community in city government, innovating methods for inviting input from the community and stakeholders. BACKGROUND:The Bozeman Historic Preservation Advisory Board was created under Chapter 2, Article 5, and Division 6 of the Bozeman Municipal Code. This chapter is designed as a measure to establish a local historic preservation program designed to promote the preservation of historic and prehistoric sites, structures, objects, buildings, and historic districts by addressing historic preservation issues at the local level and integrating them into local, state, and federal planning and decision-making processes. The historic preservation program includes identification, evaluation, and protection of historic resources within the city (Ordinance No. 1180, Section 2, 1985). The Bozeman Historic Preservation Advisory Board shall serve in an advisory capacity to the City Commission and other staff members or boards seeking advice on historic preservation issues (Ordinance No. 1454, Section 2, 1998; Ordinance No. 1180, Section 3, 1985). Members are appointed to staggered two-year terms comprised of up to seven members per Ordinance 1927 via any combination of the following: 1. At least three members shall meet the Secretary of the Interior's Professional Qualification Standards in the disciplines of history, planning, archaeology, architecture, architectural history, historic archaeology, or other historic preservation-related disciplines such as cultural geography or cultural anthropology. 2. At least one member shall be an architect holding state or NCARB registration. Retired professionals shall be given consideration equal to that of practicing professionals. Residency within the city shall not be a prerequisite for membership as a professional representative. 3. At least one member shall 754 live in or own property in a Bozeman historic district, on file at the city planning office. A member may be chosen from a locally or nationally designed district. 4. At least four members shall be at-large representatives who reside or own property within the city limits. This board currently has one vacancy. The City Clerk’s Office has received one application, with their relevant qualifications indicated below: Applicant: Ashley Wilson, At-Large Position with a term expiring June 30, 2025. Commissioner Coburn is the City Commission liaison for this board. Bozeman Historic Preservation Advisory Board appointments are Commission appointments. UNRESOLVED ISSUES:None ALTERNATIVES:As suggested by the City Commission FISCAL EFFECTS:None Attachments: 11-08-23 - CAB Applications - Ashley Wilson.pdf Report compiled on: January 9, 2024 755 WELCOME Thank you for your interest in joining a Citizen Advisory Board. The City of Bozeman elected officials and staff believe in the value of public participation and local governance in the decision-making process and encourage all interested members of our community to apply. As set forth in Resolution 5323, the City is committed to building Advisory Boards that advance the City’s goals of increasing diversity, equity, and inclusion. Because of this goal, the City is actively working to achieve membership that reflects, at the least, the demographics of our community. Women, minorities, individuals with disabilities, veterans, and other underrepresented groups are encouraged to apply. CONTACT INFORMATION The City will need to communicate with all board members via email for a number of annual communications, so a valid email address is required for all applicants. Please notify the City Clerks' Office if your email address changes for any reason. The City will need to communicate with all board members via email for a number of annual communications, so a valid email address is required for all applicants. Please notify the City Clerks' Office if your email address changes for any reason. Please note that your application will become public information. All required fields are marked with a red asterisk *. STANDARDS OF CONDUCT Each official and employee serving on a multimember agency is expected to devote the time and effort necessary to ensure the successful functioning of such agency (Bozeman Municipal Code, Section 2.03.490.C.). Additional standards of conduct and norms are included in Resolution 5323. Applicant Information * Full Name Ashley Wilson * Residential Address 1220 Hunters way Bozeman MT 59718 * Primary Phone (310) 701-9228 * Current Occupation Interior Designer * Employer Envi Interior Design Studio * Email ashleyharville@yahoo.com Which position are you applying for? Historic Preservation Board Do you live in City Limits? (Some positions do require you live within Bozeman city limits, while others do not.) Yes How long have you lived in the Bozeman Area? 11 years or more * Have you ever served on a City or County Board or Commission? No Where, how long, and what Board? **SKIPPED** * Please describe your professional and personal experiences, interest, and qualifications that make you a good fit for this board. I believe my professional experience combined with my education and passion make me a great candidate for this board seat. I spent 20 years in fashion design working for various companies. About 3 years ago I decided to take a new career path after moving home to Bozeman (I grew up here); I enrolled at Gallatin College and earned an AA in Interior Design. I believe I can bring a thoughtful and pragmatic approach to this position and I would love to be a part of this committee. Thank you! * The City of Bozeman strongly values diversity, equity and inclusion (DEI). Describe any efforts you have engaged in to expand your understanding of DEI. During my time designing apparel for Eddie Bauer, we were required to take diversity & Bias training courses. I found these incredibly rewarding- not only to expand my understanding of my own unconscious biases, but also found relief in how other coworkers modified their statements or behavior based on the training. Treating others with respect and professionalism is imperative for a successful organization. Page | 1 756 References Please provide name, phone, and email contact information for two references. * Reference #1 Full Name Kelsey Dyk * Phone (406) 209-5984 * Email kelsey@envidesign.com * Reference #2 Full Name Daniel Bontrop * Phone (917) 698-3694 * Email daniel@envidesign.com * The Bozeman City Charter, voted in by the citizens of Bozeman in 2008, requires annual ethics training. If appointed, do you understand you will be expected to take online and in person ethics training? Yes How did you hear about this board or vacancy? Sarah Rosenberg Is there any other information that you feel we need to know? One of my favorite courses in the Interior Design program was 'Enviromental' which was on sustainability in the building industry. It was fascinating to learn how communities in the US are approaching sustainability challenges, read case studies, and learn about LEED and Well design. It opened my eyes to the responsibility the building industry holds to society to care for the environment, and how we need to preserve/update our old historic places to be efficient for today. If you have a disability that requires assistance or need accommodations, please contact our ADA Coordinator, Mike Gray, at 406-582-3232 (TDD 406-582-2301). Please note that for most Citizen Advisory Boards, materials are distributed electronically for each meeting. Your application and all information submitted is considered a public record. All applications are included in the City Commission’s Meeting materials for consideration which are electronically archived and available to the public. Page | 2 757