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HomeMy WebLinkAbout11-26-24 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 or Mindfulness C. Changes to the Agenda D. Authorize Absence D.1 Authorize the Absence of Commissioner Douglas Fischer (Maas) E. FYI F. Commission Disclosures G. Consent THE CITY COMMISSION OF BOZEMAN, MONTANA REGULAR MEETING AGENDA Tuesday, November 26, 2024 How to Participate: If you are interested in commenting in writing on items on the agenda please send an email to comments@bozeman.net or visit the Public Comment Page prior to 12:00 p.m. on the day of the meeting. At the direction of the City Commission, anonymous public comments are not distributed to the City Commission or staff. 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 Consider the Motion: I move to authorize the absence of Commissioner Douglas Fischer. 1 G.1 Accounts Payable Claims Review and Approval (Armstrong) G.2 Authorize the City Manager to Accept a Hazardous Materials Emergency Preparedness Grant through the State of Montana Disaster and Emergency Services Department to Provide Advanced Training for Four Hazardous Materials Technicians(Short) G.3 Authorize the City Manager to Sign a Master Task Order Professional Services Agreement with Echo Arts for Art Consulting Services, and Subsequent Task Orders within Budget(Ziegler) G.4 Authorize the City Manager to Sign a Professional Services Agreement with Dust Bunnies Inc. for Janitorial Services Citywide(Ziegler) G.5 Authorize the City Manager to Sign a Participation Agreement with Flume Inc. for a Flume Device Direct Distribution Program and End Uses of Water Dashboard(Ahlstrom) G.6 Resolution 5646, Adoption of the 2320 West Babcock Annexation, Annexing Approximately 2.705 acres and Adjacent Rights-of-Way, Application 24106(Rogers) G.7 Resolution 5661, Establish Compliance with IRS Reimbursement Bond Regulations (Hodnett) G.8 Ordinance 2171, Provisional Adoption, Establishing a Zoning Designation of REMU, Residential Emphasis Mixed-Use District, in Association with the Annexation of 2.705 Acres, the 2320 West Babcock Annexation, Application 24106(Rogers) H. Public Comment on Non-agenda Items Falling Within the Purview and Jurisdiction of the Commission I. Action Items I.1 Public Hearing on Resolution 5663 Approving the Bozeman Yards project in the Northeast Urban Renewal District as an Urban Renewal Project; Making Findings with Respect Thereto and Approving the Use of Tax Increment Revenues to Reimburse Eligible Costs Thereof and Approving a Related Development Agreement(Fine) I.2 Ordinance 2175, Provisional Adoption Amending the Bozeman Municipal Code to Include Gender Inclusive Language(Maas) 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 state whether you are a resident of the city or a property owner within the city 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. Consider the Motion: I move to approve Resolution 5663. Consider the Motion: I move to provisionally adopt Ordinance 2175 Amending the Bozeman Municipal Code to Include Gender Inclusive Language 2 J. FYI / Discussion K. Adjournment City Commission meetings are open to all members of the public. If you have a disability that requires assistance, please contact our ADA Coordinator, David Arnado, at 406.582.3232. Commission meetings are televised live on cable channel 190 and streamed live on our Meeting Videos Page. 3 Memorandum REPORT TO:City Commission FROM:Mike Maas, City Clerk SUBJECT:Authorize the Absence of Commissioner Douglas Fischer MEETING DATE:November 26, 2024 AGENDA ITEM TYPE:Administration RECOMMENDATION:Consider the Motion: I move to authorize the absence of Commissioner Douglas Fischer. STRATEGIC PLAN:1.1 Outreach: Continue to strengthen and innovate in how we deliver information to the community and our partners. BACKGROUND:Commissioner Douglas Fischer notified Mayor Cunningham of his intended absence. UNRESOLVED ISSUES:None ALTERNATIVES:None FISCAL EFFECTS:None Report compiled on: November 21, 2024 4 Memorandum REPORT TO:City Commission FROM: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:November 26, 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 November 27, 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: February 5, 2024 5 Memorandum REPORT TO:City Commission FROM:James Short, Battalion Chief Josh Waldo, Fire Chief SUBJECT:Authorize the City Manager to Accept a Hazardous Materials Emergency Preparedness Grant through the State of Montana Disaster and Emergency Services Department to Provide Advanced Training for Four Hazardous Materials Technicians MEETING DATE:November 26, 2024 AGENDA ITEM TYPE:Grant RECOMMENDATION:Authorize the City Manager to accept a Hazardous Materials Emergency Preparedness Grant through the State of Montana Disaster and Emergency Services Department to provide advanced training for four hazardous materials technicians. STRATEGIC PLAN:2.3 Workforce Development: Support education and workforce development initiatives to improve the skills of our citizens. BACKGROUND:This grant has been procured by the State DES office and Bozeman Fire is a sub-recipient. The grant shall be used as an effort to send a Montana contingent of Regional Hazardous Materials Team members to an advanced training symposium in Florida. The grant will cover all travel expenses and course fees. The match for the project will be the time and effort expense for the team members attending the symposium. UNRESOLVED ISSUES:None ALTERNATIVES:As recommended by City Commission. FISCAL EFFECTS:The Hazardous Materials Emergency Preparedness grant provides $7,200 to cover the costs associated with travel and course registration. The grant requires a soft-match of $1,800 from the City of Bozeman. The soft match provision is accounted for by the regular wages earned by the members attending the training. Attachments: HMEP FY25 Grant Agreement - Bozeman Fire - Florida Symposium.pdf Report compiled on: November 12, 2024 6 7 FY25 HMEP GRANT AGREEMENT AGREEMENT NUMBER: 25HMEPBZNFL AMENDMENT # SUB-RECIPIENT NAME AND ADDRESS: Bozeman Fire Department 300 East Oak Street Bozeman, MT 59715 ISSUING STATE OFFICE AND ADDRESS: Montana Disaster and Emergency Services P.O. Box 4789 1956 MT Majo Street Fort Harrison, MT 59636-4789 NAME OF SUB-RECIPIENT AUTHORIZED REPRESENTATIVE: POC: James Short Finance: Jamie Grabinski SUB-RECIPIENT AUTHORIZED REPRESENTATIVE CONTACT INFORMATION: 406-582-7420 jshort@bozeman.net NAME AND CONTACT INFORMATION OF MT DES PREPAREDNESS BRANCH MANAGER: Burke Honzel bhonzel@mt.gov (406) 417-9233 EFFECTIVE DATE OF THIS ACTION: 10/01/24 METHOD OF PAYMENT: EFT NAME AND CONTACT INFORMATION OF MT DES HMEP GRANT MANAGER: Amanda Avard Amanda.avard@mt.gov FEDERAL AWARD AMOUNT: $7,200.00 REQUIRED MATCH: $1,800.00 TOTAL AWARD: $9,000.00 PERIOD OF PERFORMANCE: From: To: 10/01/2024 09/30/2025 Budget Period: From: To: 10/01/2024 09/30/2025 ASSISTANCE ARRANGEMENT: Cost Reimbursement CFDA #: 20.703 SUB-RECIPIENT SIGNATORY OFFICIAL (Name and Title) Josh Waldo, Fire Chief, Bozeman Fire Department DATE SUB-RECIPIENT AUTHORIZED REPRESENTATIVE (Name and Title) James Short, Hazmat POC DATE MT DES SIGNATORY (Name and Title) Burke Honzel, Preparedness Bureau Chief, Authorized Organizational Representative DATE 8 Hazardous Materials Emergency Preparedness Grant Program Catalog of Federal Domestic Assistance Program No. 20.703 Administered by Montana Disaster and Emergency Services TERMS AND CONDITIONS – Fiscal Year 2025 General Terms and Conditions of Award 1. Effect of Award The sub-recipient, which is the organization named in the FY23 HMEP Grant Agreement, is legally responsible for, and accountable to Montana Disaster and Emergency Services (MT DES) for the funds provided. By acceptance of this award, which is accomplished by returning a Grant Agreement signed by the signatory official and authorized representative, the sub-recipient agrees to comply with the terms and conditions detailed or referenced below. This award my only be modified with the approval of MT DES Authorized Organization Representative (AOR), or any MT DES staff to whom the authority is delegated. See Section 18 for information on the process for requesting prior approval for amendments or modifications to the grant award. If the sub-recipient materially fails to comply with the terms and conditions of this award, whether stated in full text herein or incorporated by reference, the AOR or designated representative may suspend, terminate, or take other remedies as may be legally available and appropriate in the circumstances as provided in 2 CFR part 200. 2. Award Information The total amount of funding is shown in the Grant Agreement. The sub-recipient is responsible for any commitments or expenditures it incurs in excess of the funds provided by this award. 3. Incorporation of application by reference The sub-recipients application, including the narrative and budget as approved by the State Emergency Response Commission, is incorporated by reference in this award. Changes to the approved application are governed by 2 CFR § 200.308 and any applicable requirements outlined in this document of terms and conditions. See Section 18 of this document for more information on the types and actions that require prior approval, and how requests should be submitted. 4. Governing statutes and regulations Incorporated by reference The administration of this award by MT DES and the sub-recipient will be based on the following Federal statutory and regulatory requirements:  The authorizing language of 49 U.S.C. § 5116.  The regulations outlined at 49 CFR part 110.  2 CFR part 200 – Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards.  Any other applicable Federal statutes and regulations, including, but not limited to the following: o The Recipient must comply with 49 CFR part 20, Restrictions on Use of Funds for Lobbying, Support of Litigation, or Direct Advocacy.  The subrecipient and its contractors may not use grant funds for lobbying in direct support of litigation, or in direct advocacy for, or against, a pipeline construction or expansion project.  The subrecipient and its contractors may not conduct political lobbying, as 9 defined in the statutes, regulations, and 2 CFR 200.450 – “Lobbying,” within the Federally-supported project. The subrecipient and its contractors may not use Federal funds for lobbying specifically to obtain grants and cooperative agreements. The subrecipient and its contractors must comply with 49 CRR 20, US Department of Transportation “New Restrictions on Lobbying.”  49 CFR part 20 is incorporated by reference in this award o The Recipient must comply with Title VI of the Civil Right Act of 1964, which provides that no person in the United States shall, on the grounds of race, color, or national origin, be excluded from participation in, be denied benefits of, or be subject to discrimination under any program or activity receiving Federal financial assistance. The Recipient must comply with 49 CFR part 21, “Nondiscrimination in Federally-Assisted Programs of the Department of Transportation—Effectuation of Title VI of the Civil Rights Act of 1964.”  49 CFR part 21 is incorporated by reference into this award o The sub-recipient must comply with 49 CFR part 32, "Government-wide Requirements for Drug- Free Workplace (Financial Assistance),” which implements the requirements of Public Law 100-690, Title Subtitle D, "Drug-Free Workplace Act of 1988." 49 CFR part 32 is incorporated by reference in this award..  No term or condition of this award is intended to require the sub-recipient to violate any applicable State, Territorial or Tribal law.  The sub-recipient must immediately notify MT DES of any change in local law, conditions, or any other event, including any litigation challenging the validity of, or seeking interpretation of, any Federal law or regulation applicable to the Federal hazmat program, which may significantly affect the sub-recipient's ability to perform the program in accordance with the terms of this award. The sub-recipient must also immediately notify MT DES of any decision pertaining to the sub-recipient's conduct of litigation that may affect MT DES interests. 5. Order of precedence Any inconsistency or conflict in the terms and conditions specified in this award will be resolved according to the following order of precedence:  The Federal statute authorizing this award or any other Federal statutes, laws, regulations or directives directly affecting performance of this award.  General terms and conditions of this award. 6. General MT DES responsibilities The AOR is the individual who signed this award on behalf of MT DES and is the official with authority to obligate Federal Funds under this award. The AOR is Burke Honzel Preparedness Branch Manager Montana Disaster and Emergency Services 1956 Mt. Majo Street PO Box 4789 Fort Harrison, MT 59636-4789 Point of Contact for inquiries Ryan Lee ryanlee@mt.gov 406-417-9237 7. General sub-recipient responsibilities In accepting this award, the sub-recipient assumes all legal, financial, administrative, and 10 programmatic responsibility for administering the award in accordance with the current laws, rules, regulations, general terms and conditions, and any special conditions that may be applicable. The sub-recipient is responsible for ensuring compliance with federal requirements, failure to comply with these requirements may result in punitive action including but not limited to suspension or termination of the award and de-obligation of funds. 8. Sub-recipient Project Director (Authorized Representative) The Project Director or Authorized Representative (AR), is the individual designated by the sub-recipient who is responsible for the implementation of the project. Under the terms of this award the AR is responsible for:  Accomplishing the objectives and tasks specified in the approved application within the approved budget amounts (Federal plus matching); and  Providing required reports that are complete, accurate, and timely. 9. Sub-recipient’s Signatory Official The Signatory Official is a person with the sub-recipient organization who has authority to legally and financially bind the organization. It is the sub-recipient’s responsibility to follow their agency’s policies and procedures for ensuring that authorized officials sign the grant agreement, and endorse any prior approval actions. 10. Required Registration in the System for Award Management Unless exempted from this requirement under 2 CFR § 25.110, the recipient must maintain the information in SAM until the final financial report required under this award is submitted or the Recipient receives the final payment, whichever is later. This requires that the Recipient review and update the information at least annually after the initial registration, and more frequently if required by changes in your information or another award term. Sub-recipients must provide its unique entity identifier to MT DES before receiving an award. The Unique Entity ID is a 12-character alphanumeric ID assigned to an entity by SAM.gov. Entity registration, searching, and data entry in SAM.gov now require use of the new Unique Entity ID. Existing registered entities can find their Unique Entity ID by following the steps here. New entities can get their Unique Entity ID at SAM.gov and, if required, complete an entity registration. 11. Government-wide Debarment and Suspension (Non-procurement) In accordance with 2 CFR § 200.212 the sub-recipient and contractors are subject to the non-procurement debarment and suspension regulations implementing Executive Orders 12549 and 12689, and 2 CFR part 180. These regulations restrict awards, sub-awards, and contracts with certain parties that are debarred, suspended, or otherwise excluded from or ineligible for participation in Federal assistance programs or activities. The sub-recipient must also comply with 2 CFR part 1200, "Non-procurement Suspension and Debarment" which generally prohibits entities that have been debarred, suspended, or voluntarily excluded from participating in Federal non-procurement transactions either through primary or lower-tier covered transactions. Before entering into a subaward or contract under the grant, the Recipient must verify that the entity/individuals are not excluded or disqualified from participation in Federal non-procurement or procurement programs. This can be done by:  Performing a search by checking for Active Exclusions on the SAM website located at https://www.sam.gov/ or  Collecting a certification from that entity/individual or  Adding a clause or condition to the covered transaction with that entity/individual 12. Financial Management and Internal Controls 11 The sub-recipient’s financial management system, including records documenting compliance with Federal statutes, regulations, and the terms and conditions of the Federal award, must be sufficient to permit the preparation of reports required by general and program-specific terms and conditions; and the tracing of funds to a level of expenditures adequate to establish that such funds have been used according to the Federal statutes, regulations, and the terms and conditions of the Federal award. In accordance with 2 CFR § 200.302 and 2 CFR § 200.303 the sub-recipient’s financial management system must provide for the following:  Identification, in its accounts, of all Federal awards received and expended and the Federal programs under which they were received. Federal program and Federal award identification must include, as applicable, the CFDA title and number, Federal award identification number and year, name of the Federal agency, and name of the pass-through entity, if any.  Accurate, current, and complete disclosure of the financial results of each Federal award or program in accordance with the reporting requirements set forth in 2 CFR § 200.327 Financial reporting and § 200.328 Monitoring and reporting program performance.  Records that identify the source and application of funds for federally-funded activities. These records must contain information pertaining to Federal awards, authorizations, obligations, unobligated balances, assets, expenditures, income and interest and be supported by source documentation.  Effective control over, and accountability for, all funds, property, and other assets. The non-Federal entity must adequately safeguard all assets and assure that they are used solely for authorized purposes. For more information, see 2 CFR § 200.303 Internal controls.  Comparison of expenditures with budget amounts for each Federal award.  Written procedures to implement the requirements of § 200.305 Payment.  Written procedures for determining the allowability of costs in accordance with 2 CFR part 200 Subpart E—Cost Principles and the terms and conditions of this Federal award. 13. Payment Unless otherwise authorized, the HMEP grant program payment is under the reimbursement method. Sub-recipients must comply with all provisions located 2 CFR § 200.305 reflecting payment of grant funds from a Federal agency. The sub-recipient must maintain financial management systems that meet the standards for fund control and accountability as established in 2 CFR § 200.302. Payments for allowable costs to sub-recipients may be withheld during the period of performance if:  The sub-recipient has failed to comply with the project objectives, Federal statutes, regulations, or the terms and conditions of the Federal award.  The sub-recipient is delinquent in a debt to the United States as defined in OMB Guidance A-129, “Policies for Federal Credit Programs and Non-Tax Receivables.” While separate depository accounts for grant funds are not required, the sub-recipient must be able to account for the receipt, obligation and expenditure of funds. Advance payments of Federal funds must be deposited and maintained in insured accounts whenever possible.  The sub-recipient is delinquent in submitting required reports or responding to findings and corrective actions listed during the course of monitoring activities. Supporting Documentation for Payment Requests 12 Sub-recipients requesting reimbursement payment must submit the request using the MT DES Reimbursement form. Reimbursement requests must include supporting documentation may include but limited to accounting records (general ledger), receipts, invoices, match documentation (sign in roster, agenda, etc.). All documentation shall be kept on file according to the sub-recipients internal controls. MT DES reserves the right to request additional supporting documentation upon receipt of payment requests if necessary. These documents will be reviewed during the course of monitoring including site visits and desk reviews. 14. Allowable costs The allowability of costs incurred by the sub-recipient will be determined using the OMB cost principles located at 2 CFR part 200 – subpart E. If a sub-recipient has any questions regarding allowability of expenditures, contact MT DES prior to purchase. 15. Matching Requirement Per 49 U.S.C § 5116(e) The sub-recipient must provide 20 percent of the allowable direct and indirect planning and training costs of activities covered under this award from non-Federal sources. Sub-recipients may either use cash (hard match), in-kind (soft-match) contributions, or a combination of both to meet this requirement. The types of contributions allowed are listed in 49 CFR § 110.60. Matching costs and contributions also must meet the requirements of 2 CFR § 200.306, including that the costs must meet the same requirements of allowability as apply to HMEP funds. Sub-recipients are required to maintain documentation of how the matching requirements have been met to include rosters, agendas, minutes, and/or receipts. This documentation will be reviewed during MT DES review of reimbursements or regular monitoring schedule of grants. A lack of documentation for the statutory requirements may result in the sub-recipient being designated high- risk, placed on a corrective action plan, or the recovery of disallowed costs. Federal funds may be expended before non-Federal matching funds, provided that total program costs at completion of the program year reflect the 80 percent Federal/20 percent non-Federal allocation of costs. The matching requirement is in addition to the maintenance of effort required of Recipients of HMEP awards under 49 U.S.C. § 5116(a)(2)(A) and (b)(2)(A) and 49 CFR § 110.30(b) (2) and (c)(2). 16. Programmatic Performance Report Requirements Sub-grantees are required to submit final performance report to provide the status and outcomes of the activities performed during the grant period. The final report must be submitted to MT DES on completion of the project. 17. Procurement Sub-recipients are to follow the procurement requirements at 2 CFR § 200.317-.326. When procuring property or services under a Federal award, a sub-recipient must follow the same policies and procedures it uses for procurements from it non-Federal funds in compliance with Federal, State, and local laws and regulations. Sub-recipients of HMEP funds must be aware of the procurement requirements required and have documented policies and procedures to ensure compliance with these requirements. Procurement documentation and processes may be requested as part of the monitoring process. 18. Changes to approved application and budget (prior approval actions) Sub-recipients are required to request prior approval from MT DES or PHMSA for the following program or budget related reasons: 13 1. Change in the scope or the objective of the project or program 2. Request for approval to engage in programmatic activities that were not detailed in the budget narrative and project narrative 3. Change in a key person specified in the application (Authorized Representative) 4. Transfer of funds among cost categories or programs, functions, and activities in which the cumulative amount of such transfers exceed 10% of the total budget. Any request for budget or programmatic changes shall be submitted to MT DES 30 days prior to the desired effective date of the requested changes. 19. Title to Equipment Title to equipment purchased or fabricated under this award vests in the sub-recipient, respectively, unless otherwise specified under 2 CFR § 200.313 Equipment or the special terms and conditions of the grant award. 20. Copyrights PHMSA reserves a royalty-free, nonexclusive, and irrevocable license to reproduce, publish or otherwise use, and to authorize others to use, for Federal government purposes:  The copyright in any work developed under a grant, sub-award, or contract under a grant or sub-award; and  Any rights of copyright to which a Recipient, sub-recipient or a contractor purchases ownership with grant support. 21. Audit Requirements As required by 2 CFR § 200.501 Audit requirements, sub-recipients that expend $750,000 or more during the non-Federal entity's fiscal year in Federal awards must have a single or program-specific audit conducted for that year in accordance with the provisions of the regulation. Sub-recipients are expected to review and fully comply with the audit requirements formerly located at A-133 and now located at 2 CFR part 200, subpart F. 22. Record retention and access to records The sub-recipient must comply with 2 CFR § 200.333 Retention requirements for records and 2 CFR § 200.336 Access to records. PHMSA, the Inspectors General, the Comptroller General of the United States, and the pass-through entity, or any of their authorized representatives, must have the right of access to any documents, papers, or other records of the sub-recipient which are pertinent to the Federal award, in order to make audits, examinations, excerpts, and transcripts. The right also includes timely and reasonable access to the sub-recipient’s personnel for the purpose of interview and discussion related to such documents. PHMSA, through its staff or authorized representatives, may make site visits, at reasonable times; to review project accomplishments, management control systems and provide guidance as may be requested or required. If a site visit is made on the premises of the sub-recipient, the sub-recipient must provide reasonable facilities and assistance to PHMSA representatives in the performance of their duties. If PHMSA requires access to the records of a sub-recipient or contractor under the grant, whether a part of a site visit or for another type of review, PHMSA will coordinate the request with the Recipient. All site visits and evaluations will be performed in a manner to not unduly delay work activity under the award or other activities of the Recipient, sub-recipient, or contractor. 23. Contracting with Small and Minority Firms, Women’s Business Enterprises, Veteran Owned, and Hub Zone Area Firms 14 In keeping with 2 CFR§ 200.321 the sub-recipient must take all necessary affirmative steps to assure that minority businesses, women's business enterprises, and labor surplus area firms are used when possible. DOT's policy is to award a fair share of contracts to small minority business, women-owned, veteran- owned and HUBZone firms. DOT is strongly committed to the objectives of this policy and encourages all sub-recipients of its grants and cooperative agreements to take affirmative steps to ensure such fairness on the awarding of any contracts under DOT grants or cooperative agreements. The Recipient and any sub-recipients are encouraged to take all necessary affirmative steps to assure that small, women-owned, minority disadvantaged businesses, veteran, and HUBZone business firms are used when possible. The Recipient shall include this award term in all sub-awards. Affirmative steps include:  Placing qualified small and minority-disadvantaged businesses, women owned business enterprises, veteran-owned and HUBZone business firms on solicitation lists;  Ensuring that small and minority businesses, women's business enterprises, veteran• owned and HUB Zone business firms are solicited whenever they are potential sources;  Dividing total requirements, when economically feasible, into small tasks or quantities to permit maximum participation by small and minority businesses, women's business enterprises, veteran-owned, and HUBZone business firms;  Establishing delivery schedules, when economically feasible, into small tasks or quantities to permit maximum participation by small and minority business, women's business enterprises, veteran-owned, and HUBZone business firms; and  Using the services and assistance of the Small Business Administration and the DOT Office of Small and Disadvantaged Business Utilization, as appropriate. 24. Seat Belt Use Policies and Programs In accordance with Executive Order 13043, the sub-recipient is encouraged to adopt on-the-job seat belt use policies and programs for its employees when operating government-owned, company-owned, rented, or personally-owned vehicles. The National Highway Traffic Safety Administration (NHTSA) is responsible for providing leadership and guidance in support of this presidential initiative. For information on how to implement such a program or for statistics on the potential benefits and cost-savings to your company or organization, please visit the Buckle up America section on NHTSA's website at www.nhtsa.dot.gov. Additional resources are available from the Network of Employers for Traffic Safety (NETS), a public-private partnership headquartered in Washington, D.C. dedicated to improving the traffic safety practices of employers and employees. NETS is prepared to help with technical assistance, a simple, user friendly program kit, and an award for achieving the President's goal of 85 percent seat belt use. NETS can be contacted at 1- 888-221-0045 or visit its website at www.trafficsafety.org. 25. Texting While Driving In accordance with Executive Order, 13513, recipients, sub-recipients, and their contractors are encouraged to adopt and enforce policies that ban text messaging while driving company owned or rented vehicles or government-owned vehicles, or while driving personally owned vehicles when on official Government business or when performing any work for or on behalf of the Government. These efforts may include conducting education, awareness, and other outreach for employees about the safety risks associated with texting while driving and should encourage voluntary compliance with the entity's text messaging policy while off duty. 26. Rights to Technical Data Rights to tangible property under this agreement are governed in accordance with 2 CFR 200.315 – “Intangible Property.” 15 27. Notice of News Releases, Public Announcements, and Presentations The subrecipient must have PHMSA prior approval for all press releases, formal announcements, or other planed written issuance containing news or information concerning this Agreement before issuance 28. 811, Call Before you Dig Program (PHMSA June 2014) Damage to pipelines during excavation is a leading cause of accidents resulting in serious injuries and fatalities, but these accidents are preventable, and you can help in preventing them. 811 is designated as the national call-before-you-dig number. Every state has a one-call law requiring excavators to have underground utilities marked before digging. There are five steps to safer digging: 1) Make a free call to 811 a few days prior to digging 2) Wait the required time – which is prescribed in state law but generally two to three days 3) Locate/mark the utilities accurately. (This step applies to underground facility/utility owners.) 4) Respect the marks 5) Dig with care The subrecipient is encouraged to adopt the “811, Call Before you Dig” program for its employees when digging on company-owned, leased, or personally-owned property. For more information on how to implement such a program please visit the 811-Call Before You Dig section of PHMSA’s website at www.phmsa.dot.gov. 29. Access to Electronic and Information Technology (PHMSA DEC 2013) Each Electronic and Information Technology (EIT) product or service, furnished under this award, must be in compliance with the Electronic and Information Technology Accessibility Standard (36 CFR 1194), which implements Section 508 of the Rehabilitation Act of 1973, codified at 29 U.S.C 794d. The PHMSA Office of Civil Rights will respond to any questions, and will certify Section 508 compliance for the requirement. You can reach the PHMSA Office of Civil Rights at phmsa.civilrights@dot.gov, or 202-366-9638. 30. Combating Trafficking in Persons (PHMSA July 2016) PHMSA may terminate grants, cooperative agreements, or take any of the other remedial actions authorized under 22 U.S.C. 7104(g), without penalty, if the grantee or any subgrantee, engages in, or uses labor recruiters, brokers, or other agents who engage in – a) Severe forms of trafficking in persons; b) The procurement of a commercial sex act during the period of time that the grant or cooperative agreement is in effect c) The use of forced labor in the performance of the grant or cooperative agreement d) Acts that directly support or advance trafficking in persons, including the following acts: i. Destroying, concealing, removing, confiscating, or otherwise denying an employee access to that employee’s identity or immigration documents. ii. Failing to provide return transportation or pay for return transportation cost to an employee from a country outside the United States to the country from which the employee was recruited upon the end of employment if requested by the employee, unless – 1. Exempted from the requirement to provide or pay for such return transportation by the Federal department or agency providing or entering into the grant, or cooperative agreement; or 2. The employee is a victim of human trafficking seeking victim services or legal redress in the country of employment or a witness in human trafficking enforcement action. iii. Soliciting a person for the purpose of employment, or offering employment, by means of materially false or fraudulent pretenses, representations, or promises regarding that employment. iv. Charging recruited employees unreasonable placement or recruitment fees, such as fees equal to or greater than the employee’s monthly salary, or recruitment fees that violate the laws of the 16 country from which an employee is recruited. v. Providing or arranging housing that fails to meet the host country housing and safety standards. 31. Prohibition on Awarding to Entities that Require Certain Internal Confidentiality Agreements (PHMSA FEB 2015) a) The subrecipient shall not require employees or subcontractors seeking to report fraud, waste, or abuse to sign or comply with internal confidentiality agreements or statements prohibiting or otherwise restricting such employees or subcontractors from lawfully reporting such waste, fraud, or abuse to a designated investigative or law enforcement representative of a federal department or agency authorized to receive such information. b) The subrecipient shall notify employees that the prohibitions and restrictions of any internal confidentiality agreements covered herein are no longer in effect c) The prohibition in paragraph (a) above does not contravene requirements applicable to Standard Form 312, Form 4414, or any other form issued by a Federal department or agency governing the nondisclosure of classified information. d) In accordance with section 743 of Division E, Title VII, of the Consolidated and Further Continuing Resolution Appropriations Act, 2015 (P.L. 113-235), use of funds appropriated (or otherwise made available) under that or any other Act may be prohibited, if the Government determines that the recipient is not in compliance with the provisions herein. 32. American Materials Required (PHMSA 2017) If articles, materials, or supplies are required: Only unmanufactured articles, materials, and supplies that have been mined or produced in the United States, and only manufactured articles, materials, and supplies that have been manufactured in the United States substantially all from articles, materials, or supplies mined, produced, or manufactured in the United States, shall be acquired under this award unless PHMSA determines there acquisition to be inconsistent with the public interest or the cost to be unreasonable. This requirement does not apply: 1. To articles, materials, or supplies for use outside the United States; 2. If articles, materials, or supplies of the class or kind to be used, or the articles, materials, or supplies from which they are manufactured, are not mined, produced, or manufactured in the United States in sufficient and reasonably available commercial quantities and are not a satisfactory quality; and 3. To manufactured articles, materials, or supplies procured under any contract with an award value that is not more than the micro-purchase threshold. 33. Violation of Award Terms If the subrecipient has materially failed to comply with any term of the award, MT DES may suspend, terminate, or take other remedies as may be legally available and appropriate in the circumstances. 34. Fraud, Waste, or Abuse The DOT Inspector General maintains a toll-free hotline for receiving information concerning fraud, waste, or abuse under grants and cooperative agreements. Such reports are kept confidential and callers may decline to give their names if they choose to remain anonymous. The telephone number is: (800) 424-9071. The mailing address is: DOT Inspector General 1200 New Jersey Avenue, SE West Bldg. 7th Floor Washington, DC 20590 Phone: 1.800.424.9071 Email: hotline@oig.dot.gov Web: http://www.oig.dot.gov/Hotline 35. Accruals 17 As established within the Montana Operations Manual (MOM) policy, accruals are valid obligations incurred but unpaid as of the end of the state fiscal year. MOM Policy 375 requires that accrual documentation be submitted from all sub-recipients funded through MT DES as directed. Accrual information is generally due no later than the second week of June. 18 Memorandum REPORT TO:City Commission FROM:Max Ziegler, Facilities Assistant Superintendent David Arnado, Facilities Superintendent SUBJECT:Authorize the City Manager to Sign a Master Task Order Professional Services Agreement with Echo Arts for Art Consulting Services, and Subsequent Task Orders within Budget MEETING DATE:November 26, 2024 AGENDA ITEM TYPE:Agreement - Vendor/Contract RECOMMENDATION:Authorize the City Manager to Sign a Master Task Order Professional Services Agreement with Echo Arts for Art Consulting Services, and Subsequent Task Orders within Budget STRATEGIC PLAN:5.2 Support for Public Art: Encourage and support partnerships for public art and other arts and cultural initiatives in the city. BACKGROUND:On December 11, 2022, the City of Bozeman published a Request for Qualifications seeking Art Consultants to assist with the procurement of artwork under the Percent for Art Program, Ordinance 2056. Several consultants replied to the RFQ with a Statement of Qualifications. From this RFQ the top scoring firm, NINE dot ARTS, was selected and has provided consulting services on Percent for Art projects at the Bozeman Public Library, Fire Station 2, and the Bozeman Swim Center. While NINE dot ARTS has been a strong partner with the City of Bozeman on Percent for Art projects, they do not have the capacity to provide their services on smaller projects with limited art budgets. As a result, the Facilities Department has decided to contract with a second Art Consultant to provide consulting services on smaller Percent for Art projects. Reviewing the responses to the 2022 Request for Qualifications, City staff found submitter ECHO Arts of Bozeman, MT to be qualified to provide Art Consulting Services to the City of Bozeman. ECHO Arts was requested to provide a proposal for Art Consulting Services, and their proposal was substantially similar to the terms agreed to with our primary Art Consultant (NINE dot ARTS). By contracting with a second Art Consultant the Facilities Department will be able to ensure the ability to meet the requirements of Ordinance 2056. Additionally, working with a local art consulting firm will better enable to City to identify and include local artists in Percent for Art projects. 19 UNRESOLVED ISSUES:None at this time. ALTERNATIVES:As suggested by City Commission FISCAL EFFECTS:Fiscal Effects of this contract will be on a per-project basis, with a fee equal to 25% of the art procurement budget. Attachments: Master Task Order PSA - Echo Arts - Art Consulting Services.pdf Art Consultant-1% for Art Program, Echo Arts, 12023_2PM.pdf RFQ - Art Consultant - 1% for Art Program.pdf Report compiled on: November 15, 2024 20 Professional Services Master Task Order Agreement for Art Consulting Services Page 1 of 11 PROFESSIONAL SERVICES MASTER TASK ORDER AGREEMENT THIS AGREEMENT is made and entered into this _____ of , 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, STETTIE RUTH dba ECHO ARTS, 615 East Peach St., Unit C, 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 Art Consulting 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 December 31st, 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. 21 Professional Services Master Task Order Agreement for Art Consulting Services Page 2 of 11 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. 22 Professional Services Master Task Order Agreement for Art Consulting Services Page 3 of 11 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. 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. 23 Professional Services Master Task Order Agreement for Art Consulting Services Page 4 of 11 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 insurance coverage shall not contain any exclusion for liabilities specifically assumed by the Contractor in subsection (a) of this Section. 24 Professional Services Master Task Order Agreement for Art Consulting Services Page 5 of 11 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. 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. 25 Professional Services Master Task Order Agreement for Art Consulting Services Page 6 of 11 c. Any termination provided for by this Section 8 shall be in addition to any other remedies to which the City may be entitled under the law or at equity. d. In the event of termination under this Section 8, Contractor shall, under no circumstances, be entitled to claim or recover consequential, special, punitive, lost business opportunity, lost productivity, field office overhead, general conditions costs, or lost profits damages of any nature arising, or claimed to have arisen, as a result of the termination. 9. Termination for City’s Convenience: a. Should conditions arise which, in the sole opinion and discretion of the City, make it advisable to the City to cease performance under this Agreement; the City may terminate this Agreement 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. 10. Limitation on Contractor’s Damages; Time for Asserting Claim: 26 Professional Services Master Task Order Agreement for Art Consulting Services Page 7 of 11 a. In the event of a claim for damages by Contractor under this Agreement, Contractor’s damages shall be limited to contract damages and Contractor hereby expressly waives any right to claim or recover consequential, special, punitive, lost business opportunity, lost productivity, field office overhead, general conditions costs, or lost profits damages of any nature or kind. b. In the event Contractor wants to assert a claim for damages of any kind or nature, Contractor shall provide City with written notice of its claim, the facts and circumstances surrounding and giving rise to the claim, and the total amount of damages sought by the claim, within thirty (30) days of the facts and circumstances giving rise to the claim. In the event Contractor fails to provide such notice, Contractor shall waive all rights to assert such claim. 11. Representatives: a. City’s Representative: The City’s Representative for the purpose of this Agreement shall be Max Ziegler, Facilities Assistant Superintendent, 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 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 27 Professional Services Master Task Order Agreement for Art Consulting Services Page 8 of 11 transmission report) to the email address or fax number provided by the Party’s Representative; or on the fifth business day following mailing, if mailed by ordinary mail to the address shown above, postage prepaid. 12. Permits: Contractor shall provide all notices, comply with all applicable laws, ordinances, rules, and regulations, obtain all necessary permits, licenses, including a City of Bozeman business license, and inspections from applicable governmental authorities, and pay all fees and charges in connection therewith. 13. Laws and Regulations: Contractor shall comply fully with all applicable state and federal laws, regulations, and municipal ordinances including, but not limited to, all workers’ compensation laws, all environmental laws including, but not limited to, the generation and disposal of hazardous waste, the Occupational Safety and Health Act (OSHA), the safety rules, codes, and provisions of the Montana Safety Act in Title 50, Chapter 71, MCA, all applicable City, County, and State building and electrical codes, the Americans with Disabilities Act, and all non-discrimination, affirmative action, and utilization of minority and small business statutes and regulations. 14. 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. 28 Professional Services Master Task Order Agreement for Art Consulting Services Page 9 of 11 c. Contractor shall require these nondiscrimination terms of its subcontractors providing services under this Agreement. 15. 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. 16. Modification and Assignability: This Agreement may not be enlarged, modified or altered except by written agreement signed by both parties hereto. The Contractor may not subcontract or assign Contractor’s rights, including the right to compensation or duties arising hereunder, without the prior written consent of City. Any subcontractor or assignee will be bound by all of the terms and conditions of this Agreement. 17. Reports/Accountability/Public Information: Contractor agrees to develop and/or provide documentation as requested by the City demonstrating Contractor’s compliance with the requirements of this Agreement. Contractor shall allow the City, its auditors, and other persons authorized by the City to inspect and copy its books and records for the purpose of verifying that the reimbursement of monies distributed to Contractor pursuant to this Agreement was used in compliance with this Agreement and all applicable provisions of federal, state, and local law. The Contractor shall not issue any statements, releases or information for public dissemination without prior approval of the City. 18. Non-Waiver: A waiver by either party 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. 29 Professional Services Master Task Order Agreement for Art Consulting Services Page 10 of 11 19. 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. 20. Taxes: Contractor is obligated to pay all taxes of any kind or nature and make all appropriate employee withholdings. 21. Dispute Resolution: a. Any claim, controversy, or dispute between the parties, their agents, employees, or representatives shall be resolved first by negotiation between senior-level personnel from each party duly authorized to execute settlement agreements. Upon mutual agreement of the parties, the parties may invite an independent, disinterested mediator to assist in the negotiated settlement discussions. b. If the parties are unable to resolve the dispute within thirty (30) days from the date the dispute was first raised, then such dispute may only be resolved in a court of competent jurisdiction in compliance with the Applicable Law provisions of this Agreement. 22. Survival: Contractor’s indemnification shall survive the termination or expiration of this Agreement for the maximum period allowed under applicable law. 23. Headings: The headings used in this Agreement are for convenience only and are not be construed as a part of the Agreement or as a limitation on the scope of the particular paragraphs to which they refer. 24. Severability: If any portion of this Agreement is held to be void or unenforceable, the balance thereof shall continue in effect. 25. Applicable Law: The parties agree that this Agreement is governed in all respects by the laws of the State of Montana. 26. Binding Effect: This Agreement is binding upon and inures to the benefit of the heirs, legal representatives, successors, and assigns of the parties. 30 Professional Services Master Task Order Agreement for Art Consulting Services Page 11 of 11 27. No Third-Party Beneficiary: This Agreement is for the exclusive benefit of the parties, does not constitute a third-party beneficiary agreement, and may not be relied upon or enforced by a third party. 28. Counterparts: This Agreement may be executed in counterparts, which together constitute one instrument. 29. Integration: This Agreement and all Exhibits attached hereto constitute the entire agreement of the parties. Covenants or representations not contained 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. 30. Consent to Electronic Signatures: The Parties have consented to execute this Agreement electronically in conformance with the Montana Uniform Electronic Transactions Act, Title 30, Chapter 18, Part 1, MCA. **** 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__________________________________ Chuck Winn, Interim City Manager Print Name: Print Title: ____________________________ APPROVED AS TO FORM: By_______________________________ Greg Sullivan, Bozeman City Attorney 31 EXHIBIT A 32 hello@echoartsadvisory.com echoartsadvisory.com BOZEMAN | LISBON Dear Mr. Ziegler, Thank you for considering Echo Arts Advisory to facilitate art acquisition and installation withing the Percent for Art Program for the City of Bozeman. As an experienced art advisory firm, we have a proven track record of curating and sourcing artworks for municipalities, non-profit organizations, private collectors, and galleries. Our approach is built on transparency, collaboration, and a deep understanding of the art market. We are confident in our ability to deliver creative services that align with Bozeman’s vision and budget, while maintaining an inclusive and engaging process. Tiered Deliverables & Pricing Our creative services are offered on a tiered basis based on the overall 1% for Art Budget. The fee for creative services is 25% of the total budget after the maintenance fee (20%) is assessed, with the following breakdowns: 1) Budget: $5,000–$10,000 (Creative Services Fee: $1,000–$2,000) • Two 1-hour meetings for presentation and selections • All research and communications • One design deck summarizing selections 2) Budget: $11,000–$30,000 (Creative Services Fee: $2,200–$6,000) • Three 1-hour meetings for visioning, presentation, and selections • All research and communications • One visioning deck with up to 2 review and edit presentations 3) Budget: $31,000–$80,000 (Creative Services Fee: $6,200–$16,000) • Up to four 1-hour meetings for visioning, presentation, and selections • All research and communications • One visioning deck with up to 3 review and edit presentations PERCENT FOR ART PROGRAM Max Ziegler Facilities Project CoordinatorCity of Bozeman121 N. Rouse Ave. Bozeman, Montana 59715 Amy Ellingson | San Francisco International Airport Kent Roberts | Tree House Affordable Housing Andy Vogt | Moonlight Basin PAST PROJECTS 33 hello@echoartsadvisory.com echoartsadvisory.com BOZEMAN | LISBON 4) Budget: $80,000 and Above (Creative Services Fee: Starting at $16,000) • RFP (Request for Proposal) creation, release, and promotion in coordination with the City of Bozeman • Selection of 3–5 finalists per project, presented to the city using best practices established by the City of Bozeman • Once selection(s) have been approved, Echo Arts will create project-specific MOUs (Memorandums of Understanding) to assess additional responsibilities, including timelines, distribution of funds, and logistical considerations for processes and installation on a case-by-case basis Our Dedication to Transparency At Echo Arts Advisory, transparency is central to our process, particularly when working with municipal clients. For all artworks presented—whether sourced from within our gallery or externally—we disclose the full retail prices upfront. This ensures that you have a clear understanding of the value of each piece, as well as any relevant commissions and discounts. Our goal is to provide the City of Bozeman with complete visibility into the costs and processes associated with the art selection. Additional Services Framing and installation coordination fall outside the scope of our creative services. However, we can provide these services at an hourly rate of $75, ensuring they fit within the 11% allocation of the public art budget. Any additional creative services approved by the City of Bozeman beyond the designated scope will be billed at $175/hour. Next Steps & Conclusion We look forward to discussing the details of the program further and solidifying our partnership to enhance Bozeman’s public art collection. Please don’t hesitate to reach out with any questions or to schedule the next meeting. Thank you for the opportunity to collaborate with the City of Bozeman on this exciting initiative. Sincerely, Sahra Beaupre, Greta Hagg, and Eli Ridgway Echo Arts Advisory Various Artists | CLB Architects Bozeman Amy Ellingson | Sam Houston State University 34 EXHIBIT B 35 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 36 ART CONSULTING PROPOSAL FOR THE CITY OF BOZEMAN 1% FOR ART PROGRAM ECHOARTS.NET 37 P 2 ART CONSULTING PROPOSAL • CITY OF BOZEMAN • 1% FOR ART PROGRAM Who We Are Echo Arts was founded in 2019 by Sahra Beaupré and Greta Hagg, after one year of curating roving pop-up art productions called “Stettie Ruth”, in Bozeman. The community was growing and Beaupré and Hagg hoped to activate a contemporary arts dialogue between artists, new and old residents, visitors and non-profit organizations. Sahra Beaupré graduated from the University of Virginia with a degree in Art and Psychology in 2004. She curated the Virginia Fringe Festival, a response to the international Virginia Film Festival from the Arts and Architecture schools at the University. She spent several years in arts education and practicing art in the west. She moved to Bozeman in 2017 with her family. Greta Hagg graduated from the University of Minnesota with a BFA in 2010. She has utilized her degree as a curator at the Soap Factory in downtown Minneapolis, art inventory and conservation admin at MLG ART, gallery manager at Sundog Fine Art on Main Street and assistant producer for Mountain Time Arts programming. She moved to Bozeman in 2011. 38 P 3 ART CONSULTING PROPOSAL • CITY OF BOZEMAN • 1% FOR ART PROGRAM Our History Echo Arts came to fruition after two like-minded artists found a passion in curating exhibitions and arts experiences and promoting regional contemporary artists. In a period of exceptional growth and strain on the community, it seemed imperative to amplify the cultural attributes of Bozeman and Montana at large. The NE-side gallery space (1,500sqft on North Wallace Ave) opened mid-March of 2020 when the pandemic restrictions prevented in-person gathering and arts-related activities went mostly on-line, if they were occurring at all. Echo Arts leaned into providing opportunities for artists to create and continue to exhibit while also focusing on advising services, which could continue from a digital interface. In early 2022, after several residential advising projects, a few proposals for commercial projects and close collaboration with Mountain Time Arts as interim Executive Directors, Echo Arts landed the role of art advisors to The One and Only Resort in Moonlight Basin, slated completion end of 1Qtr 2024. In 2022, Echo Arts had 500K in sales, providing stability in the continued growth of our business. Heading into our fifth year of art exhibitions, advising projects and community arts engagements, Echo Arts is looking forward to growing with Bozeman and making powerful art happen here. 39 P 4 ART CONSULTING PROPOSAL • CITY OF BOZEMAN • 1% FOR ART PROGRAM Our Mission for Advising on Public Art Echo Arts believes in the power of art. Art imbues beauty, challenges normative ways of thinking and inspires creativity in the spaces it occupies. Public art is critical to the health of communities; most directly, in that artists are financially supported and given an opportunity for large public exposure, and most resoundingly, by aspiring to create beauty, spark dialogue and become a cultural touchstone for generations to come. Echo Arts adheres to the philosophy that public art should be generative from the community, in that every community member is a stakeholder and therefore, the art programming should reflect the myriad voices and experiences of the people. Additionally, artists should be selected who live, experience and have a presence here, including those that travel for residencies or maintain studio practices in the region. Our networks and collaborations with organizations, artists and diverse business owners and social communities in Bozeman help us produce thoughtful, well- vetted and personalized proposals for our clients. Echo Arts is a women-owned business. We adhere to and abide by the Montana Equal Pay Act.. We 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 recognizes that 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 our employees and to all subcontracts. 40 P 5 ART CONSULTING PROPOSAL • CITY OF BOZEMAN • 1% FOR ART PROGRAM Notable Projects & Collaborations 41 P 6 ART CONSULTING PROPOSAL • CITY OF BOZEMAN • 1% FOR ART PROGRAM Notable Projects + Collaborations 2018 LAUNCH The Art of Slow at the Rialto, a visual art installation with a three-person arts panel for a salon-style introduction to contemporary art in Bozeman. 42 P 7 ART CONSULTING PROPOSAL • CITY OF BOZEMAN • 1% FOR ART PROGRAM Notable Projects + Collaborations 2019 SHIFT At The Story Mill, a Visual, Performance, and interactive arts event open to the community with 30+ artists and 300+ attendees. 43 P 8 ART CONSULTING PROPOSAL • CITY OF BOZEMAN • 1% FOR ART PROGRAM Notable Projects + Collaborations 2019 PRINCE-TALLATION Dance and Art-making Community Event on a school bus during the Northside Stroll 44 P 9 ART CONSULTING PROPOSAL • CITY OF BOZEMAN • 1% FOR ART PROGRAM Notable Projects + Collaborations 2019 CHRONICLES OF A HEATWAVE CHAPTER ONE Greta Hagg co-produced the arts performance by Mountain Time Arts 45 P 10 ART CONSULTING PROPOSAL • CITY OF BOZEMAN • 1% FOR ART PROGRAM Notable Projects + Collaborations 2020 A CREEK BETWEEN US Facilitate/coordinate on the arts production by Mountain Time Arts 46 P 11 ART CONSULTING PROPOSAL • CITY OF BOZEMAN • 1% FOR ART PROGRAM Notable Projects + Collaborations 2021 SUPER FUN RACE FOR AFFORDABLE HOUSING An obstacle course race conceived of by artists in the NE neighborhood with proceeds going to HRDC 47 P 12 ART CONSULTING PROPOSAL • CITY OF BOZEMAN • 1% FOR ART PROGRAM Notable Projects + Collaborations 2021 SPUN|TISSÉ A pop-up art exhibition conceived of and curated by Echo Arts in Paris France in October 2021. 48 P 13 ART CONSULTING PROPOSAL • CITY OF BOZEMAN • 1% FOR ART PROGRAM Notable Projects + Collaborations 2020-21 MONTAGE ART SELECTIONS In Big Sky MT Subcontracted to propose art for the Montage Hotel in Big Sky. Coordinated artist commissions and inventory purchases as well as shipping and invoicing. 49 P 14 ART CONSULTING PROPOSAL • CITY OF BOZEMAN • 1% FOR ART PROGRAM 4+ Mood Board — “An enveloping sense of place” Notable Projects + Collaborations 2022 ART PROGRAM FOR THE ONE AND ONLY RESORT In Moonlight Basin Utilizing best practices for a discerning contemporary art program that reflects the many voices and stories of the west, with a 1.5m budget across 5 buildings in a resort in Big Sky, MT. 50 P 15 ART CONSULTING PROPOSAL • CITY OF BOZEMAN • 1% FOR ART PROGRAM How We Work 51 P 16 ART CONSULTING PROPOSAL • CITY OF BOZEMAN • 1% FOR ART PROGRAM Phase I Phase II Phase III Phase IV COMMUNICATIONS + COORDINATION RESEARCH + DEVELOPMENT RECRUITMENT + SELECTION DEVELOPMENT, INSTALLATION, ACTUALIZATION, DOCUMENTATION Early project coordination, defining parameters + scope. Research of sites historical + cultural attributes, public use of space and artist opportunities. Solicitation + Design Requests Art Development, Documentation, Check-ins Actualization, Installation, Documentation of entire project/process, Signage + recommendations for over-time care of art, Any joint coordination for marketing + public interface with City II IIII IIIIII IVIV Flow of Operations * Size of circle is an estimation of time and workload of each phase but varies by project. ** Timeline of advising operations adjusts to the scale of the project. 52 P 17 ART CONSULTING PROPOSAL • CITY OF BOZEMAN • 1% FOR ART PROGRAM Procedures COMMUNICATIONS + COORDINATION Echo Arts consults with the City and relevant project architects, engineers and managers to ascertain the parameters and scope of each project that qualifies for the City of Bozeman Percent for the Arts Program. RESEARCH + DEVELOPMENT Echo Arts researches the relevant historical and cultural site attributes, the functionality and best use of space for the public, the type of art installation (fixed) or experience (temporal), as well as opportunities for collaboration amongst arts organizations in town. Echo Arts solicits for and evaluates the proposals from artists. Best practices for solicitation include a multitude of outreach strategies (technological and in-person) that are mindful of diversity, equity and inclusion. Should more in-depth proposal designs be required amongst applicants, the City and Echo Arts will select the top proposals to proceed forward with, and an appropriate artist’s design fee is assessed to help them with costs associated with their time and efforts (as part of the overall budget). RECRUITMENT + SELECTION Echo Arts will provide our recommendations to the City for each specific project based on the aforementioned research and development stage that utilizes a wide swath of input from the community and the collaborators on each capital improvement project (engineers, architects, employees and administration within buildings). Our communications and design decisions will be in accordance with the City of Bozeman Purchasing Policy. Documentation of procedures leading up to selection as well as the overall concept and how it will be best represented by the selected artist’s commission proposal will be provided. Notification of selection outcome to applicants and contract development with selected artist that adheres to city will also occur in this stage. DEVELOPMENT, INSTALLATION, ACTUALIZATION, DOCUMENTATION Echo Arts will be hands-on in the process of commissioning an art work with studio visits and artist check-ins. We will manage all aspects of design, approval, fabrication and installation /or actualization of arts experience with the project team. Documentation will be created for installed artwork to include artist biography, pertinent details of artwork (concept, materiality, theme) and signage. Echo Arts has climate controlled storage and shipping and framing vendor relationships to coordinate large-scale projects. II IIII IIIIII IVIV 53 P 18 ART CONSULTING PROPOSAL • CITY OF BOZEMAN • 1% FOR ART PROGRAM The Details Echo Arts has one part-time gallery assistant and several contracted vendors for our on- going projects, currently. We would be able to negotiate a larger workload utilizing the talents already in place and supplementing as needed with a full-time employee(s) as we grow. Our company has never been assessed with, nor paid any damages after completion of a project under a contract with a public owner. Echo Arts charges an hourly rate of $175 for creative consulting services. We have offices downtown for receiving clients and exhibiting art. We have climate controlled storage, insurance and a list of reputable vendors we use for installations, packaging and shipping, and architectural design work. PROJECTED WORKLOAD & CLAIMS HOW WE WORK 54 P 19 ART CONSULTING PROPOSAL • CITY OF BOZEMAN • 1% FOR ART PROGRAM ERIC CHRISTENSEN EVP of Hospitality Lone Mountain Land Company echristensen@lonemountainland.com MATTHEW KIDD Managing Partner Cross Harbor Capital Partners mkidd@crossharborcapital.com HALLIE TERZOPOLOS Interior Design Lead Olson Kundig hallie@olsonkundig.com ALLISON BRYAN Owner Open Studio Collective allison@openstudiocollective.com JIM MADDEN Board Member Mountain Time Arts jim@mountaintimearts.org References 55 P 20 ART CONSULTING PROPOSAL • CITY OF BOZEMAN • 1% FOR ART PROGRAM ECHOARTS.NET Thank You! 56 Page 1 of 23 REQUEST FOR QUALIFICATIONS (RFQ) ART CONSULTANT – 1% FOR ART PROGRAM CITY OF BOZEMAN Bozeman, MT City of Bozeman PO Box 1230 Bozeman, MT 59771-1230 December 2022 57 Page 2 of 23 NOTICE IS HEREBY given that the City of Bozeman (City) is seeking qualifications from firms to provide art consulting services to support the City’s 1% for Art program. Copies of the Request for Qualifications are available on the City’s website at https://www.bozeman.net/government/city-clerk/bids-rfps-rfqs. 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 January 20, 2023 at 2:00 PM MST. It is the sole responsibility of the proposing party to ensure that proposals are received prior to the closing time as late submittals will not be accepted and will be returned unopened. The email address for submission is: agenda@bozeman.net NON-DISCRIMINATION AND EQUAL PAY The City of Bozeman is an Equal Opportunity Employer. Discrimination in the performance of any agreement awarded under this RFQ on the basis of race, color, religion, creed, sex, age, marital status, national origin, or actual or perceived sexual orientation, gender identity or disability is prohibited. This prohibition shall apply to the hiring and treatment of the awarded entity’s employees and to all subcontracts. As such, each entity submitting under this notice shall include a provision wherein the submitting entity, or entities, affirms in writing it will not discriminate on the basis of race, color, religion, creed, sex, age, marital status, national origin, or because of actual or perceived sexual orientation, gender identity or disability and which also recognizes the eventual contract will contain a provision prohibiting discrimination as described above and that this prohibition on discrimination shall apply to the hiring and treatment of the submitting entity’s employees and to all subcontracts. In addition, pursuant to City Commission Resolution 5169, the entity awarded a contract under this RFQ and any subcontractors must abide by the Equal Pay Act of 1963 and Section 39-3-104, MCA (the Montana Equal Pay Act), and affirm it will abide by the above and that it has visited the State of Montana Equal Pay for Equal Work “best practices” website, https://equalpay.mt.gov/BestPractices/Employers, or equivalent “best practices publication and has read the material. Failure to comply with the above may be cause for the City to deem the submittal non-responsive. 58 Any administrative questions regarding proposal procedures should be directed to: Mike Maas, City Clerk (406) 582-2321, agenda@bozeman.net. Questions relating to the RFQ should be directed to: Max Ziegler, Facilities Project Coordinator, (406) 582- 2439, wziegler@bozeman.net. DATED at Bozeman, Montana, this December 11, 2022. Mike Maas City Clerk City of Bozeman For publication on: Sunday, December 11, 2022 Sunday, January 20, 2023 59 I. INTRODUCTION The City of Bozeman (Owner), is seeking qualifications from firms to provide art consulting services to support the City of Bozeman’s newly enacted 1% for Art program. The Owner intends to enter into a contract with the selected firm that will include providing art consulting and advising services related to the execution of the City of Bozeman’s 1% for Art program. Services to be provided include solicitation and procurement of public art, coordinating with project architects and managers to integrate public art into the design phases of construction projects, evaluating art proposals, and providing policy recommendations for the administration of the 1% for Art program. This RFQ shall not commit the Owner to enter into an agreement, to pay any expenses incurred in preparation of any response to this request, or to procure or contract for any supplies, goods or services. The Owner reserves the right to accept or reject all responses received as a result of this RFQ if it is in the Owner’s best interest to do so. This procurement is governed by the laws of the State of Montana and venue for all legal proceedings shall be in the 18th Judicial District Court, Gallatin County. By offering to perform services under this RFQ, all Submitters agree to be bound by the laws of the State of Montana and of the Owner, including, but not limited to, applicable wage rates, payments, gross receipts taxes, building codes, equal opportunity employment practices, safety, non-discrimination, etc. II. SCOPE OF PROJECT - PROJECT BACKGROUND AND DESCRIPTION Introduction The City of Bozeman established a municipal Percent for Art Program in December 2020 through the adoption of Ordinance No. 2056. The program seeks to include public works of art into city-funded capital improvement projects by allocating 1% of construction costs towards the purchase of public art. The goals of the City of Bozeman Percent for Art Program are: A. Develop a public art program that is unique to Bozeman. B. Increase the understanding and enjoyment of public art by Bozeman residents. C. Invite public participation in the interaction with public spaces. D. Provide challenging employment opportunities for artists. E. Encourage collaborations between artists and architects and engineers. F. Support artist participation on design teams for planning public projects. G. Encourage a variety of art forms: temporary and permanent, object and event, single or dispersed locations. H. Spread commissions among a wide number of artists and strive for overall diversity in style, scale and intent. 60 The first City capital improvement project that this program will apply to is the currently ongoing renovation of the Bozeman Public Library and will be followed by the construction of the new Fire Station No. 2, which is currently in the design phase. It is expected that there will be several additional projects in the coming fiscal years which will be subject to the Percent for Art program. The City seeks to enter a multi-year term contract with the selected Art Consultant in order to provide continuity in program execution across several projects. III. SCOPE OF SERVICES A. Project Coordination o Meet with City Staff / Project Team, Architects and Contractors to integrate public art into the preliminary design of the construction project. o Advise on possible ways to incorporate public art, including possible locations, formats, themes, and example of types of art within each project’s Percent for Art budget. o Develop budget breakdown for the art procurement, from design through installation of the art. B. Artist Recruitment o Create and administer RFPs / Call for Artists in accordance with the City of Bozeman’s purchasing policy, Percent for Art Ordinance, and design decisions made in the project coordination phase. o Employ outreach strategies to ensure diversity, equity and inclusion in the selection process. o Conduct site visits for artists if necessary C. Artist Selection o Design, communicate, document, and lead the process of artist selection in accordance with the City of Bozeman Purchasing Policy. o Pepare a shortlist of artists and works of art for presentation to the Project Team and/or City Management and lead the final selection process. o Notify artists of selection outcome and develop a contract with the selected artist. D. Art Creation and Installation o Manage all aspects of art design, approval, fabrication and installation in coordination with the Project Team and artists. o Create documentation for the installed artwork(s), including artist background information, details of the artwork such as concepts, themes and materials. o Develop signage for installed art. IV. TIMELINES, DELIVERY DEADLINE, AND INSTRUCTIONS As the initial submittal to the Owners, RFQs MUST BE DELIVERED NO LATER THAN 2:00 PM, MOUNTAIN TIME, January 20, 2023, in PDF format by email addressed to: 61 Art Consultant – 1% for Art Program Bozeman City Clerk The email address for submission is: agenda@bozeman.net RESPONSES THAT ARE UNSIGNED OR SUBMITTED BEYOND THE DEADLINE SHALL NOT BE CONSIDERED AND SHALL BE REJECTED. A. Contact Information ALL QUESTIONS AND CONTACTS REGARDING THIS RFQ MUST BE SUBMITTED IN WRITING TO: Max Ziegler Facilities Project Coordinator (406) 582-2250 wziegler@bozeman.net Amendments to Solicitation Any interpretation or correction of this request will be published on the City’s webpage. The deadline for questions related to this document is 12:00 PM MST on Monday, January 16, 2023. B. Selection Timeline Advertising dates: December 11, 2022 and January 8, 2023 Receipt of RFQs: No later than 2:00 p.m. MST January 20, 2023 RFQ Review Complete by Committee: January 27, 2023 Interviews: February 3, 2023 Selection: February 10, 2023 With the exception of the advertising dates and advertised due date, the City reserves the right to modify the above timeline. V. SELECTION PROCEDURE A. STATEMENT OF QUALIFICATIONS Respondents must comply with the mandatory requirements provided in this solicitation. The selection process shall be conducted pursuant to all applicable Montana law including those criteria set forth in §18-8-204, MCA and applicable City policy. 1. Evaluation of RFQs. The selection committee shall consist of no less than three persons representing the City. The selection committee will review 62 conforming RFQ responses using the criteria listed above. RFQ responses that do not contain the required documentation will be deemed nonresponsive to this solicitation and may be rejected. 2. Revisions. Responses will be accorded fair and equal treatment with respect to opportunity for discussion and revision of responses, and such revisions may be permitted, after submissions and prior to award for the purpose of obtaining best and final responses. 3. Evaluation & Elimination. After evaluating all conforming responses based on the criteria herein the selection committee may eliminate one or more or all Respondents from further review if they do not meet the qualification criteria specified herein. Any Respondents eliminated by the selection committee, at any time, or for any reason, shall have no opportunity to make revisions or participate further in the selection process. 4. Interviews. After reviewing conforming RFQ responses, the selection committee may decide to schedule interviews with qualified respondents. Interviews will be held on February 3, 2023 at the Professional Building, 20 East Olive Street, Bozeman MT 59715. Each firm selected for interview will be notified of the specific time for their interview. The format of the interview will be left up to the proposing firm; however, interviews will be [45] minutes inclusive of questions from the selection committee, with 15 minutes between interviews for transitions and set up between Respondents. 5. Selection and Final Recommendation. The selection committee will tally the scores for the RFQ. At that time contract negotiations will take place between the City and successful Respondent. The City may negotiate a contract with the next highest ranked Respondent if a contract cannot be made. B. RFQ – FORM AND CONTENTS Deliver one (1) original digital copy (via email in PDF format), prepared as follows: i. General Instructions: a. RFQ responses must be signed by an officer or principal of your firm. b. RFQ responses must be contained in a single searchable PDF document not to exceed 20 pages total including whatever pictures, charts, graphs, tables, and text the firm deems appropriate to be part of the review of the firm's qualifications. A separate transmittal letter, cover page, cover sheets, and dividers are exempted from the page limit. c. Schedules may be submitted in addition to the page limit. ii. Firm Information: a. Experience. Respondent must demonstrate successful experience and capacity to act as a contractor on projects of similar size, type and complexity. Provide the name and location of each project, the client, and the contact person and phone number. Describe experience and qualifications of the professional 63 personnel to be assigned to this project. Describe your recent and current work for the City of Bozeman, if any. b. Firm Background. Provide information about the firm, including location. Describe the firm’s history. Include information identifying the firm’s annual volume of business, financial/bonding capacities, and speak to the firm’s stability in the marketplace. Information identifying the firm’s strengths and weaknesses along with special capabilities that may be appropriate to the Project will assist in the evaluation. c. Firm Workload. Provide the status of current and anticipated work within the firm in terms of time and magnitude for the anticipated Project schedule as it relates to availability of key personnel and your firm. Describe the firm’s capability to meet time and project budget requirements. d. Claims. At any time in the last ten (10) years has your firm been assessed and paid liquidated damages after completion of a project under a contract with a public owner? e. References. Provide detailed contact information for the Owner for at least five (5) project undertaken by your firm within the past five years. C. EVALUATION CRITERIA Qualifications will be evaluated by the Selection Committee who will individually score them out of a total of 100 possible points based on the criteria below.The scoring criteria and possible point values are: 1. Respondent’s experience with projects of similar size and design: Possible Points: 45 2. Firm’s Qualifications: Possible Points: 20 3. Capabilities to meet time schedule and project budget requirements. Possible Points: 15 4. Present and projected workloads: Possible Points: 5 64 5. Past projects/experience working with the City of Bozeman: Possible Points: 5 6. Office(s) location: Possible Points: 10 VI. FORM OF AGREEMENT The contractor will be required to enter into a contract with the City in substantially the same for as the professional services agreement attached as Attachment B. VII. CITY RESERVATION OF RIGHTS All proposals submitted in response to this RFQ become the property of the City and public records and, as such, may be subject to public review. A SUBMISSION IN RESPONSE TO THIS REQUEST FOR QUALIFICATIONS CONFERS NO RIGHTS UPON ANY RESPONDENTS AND SHALL NOT OBLIGATE THE CITY IN ANY MANNER WHATSOEVER. THE CITY RESERVES THE RIGHT TO MAKE NO AWARD AND TO SOLICIT ADDITIONAL REQUEST FOR QUALIFICATIONS AT A LATER DATE. A. This RFQ may be canceled or any or all responses may be rejected in whole or in part, as specified herein, when it is in the best interests of the City. If the City cancels or revises this RFQ, all Respondents who submitted will be notified using email. B. The City reserves the right to accept or reject any and all submissions; to add or delete items and/or quantities; to amend the RFQ; to waive any minor irregularities, informalities, or failure to conform to the RFQ; to extend the deadline for submitting proposals; to postpone award for up to 60 days; to award one or more contracts, by item or task, or groups of items or tasks, if so provided in the RFQ and if multiple awards are determined by the City to be in the public interest. C. The City reserves the right to reject the submission of any person/firm who previously failed to perform properly to the satisfaction of the City, or complete on time agreements of similar nature, or to reject the submission of any person/firm who is not in a position to perform such an agreement satisfactorily as determined by the City. D. The City reserves the right to determine the best qualified Respondents and negotiate a final scope of service and cost, negotiate a contract with another Respondents if an agreement cannot be reached with the first selected Respondents, or reject all proposals. 65 E. The successful Respondents will be required to enter into a contract with the City, which will incorporate the Respondents' scope of service and work schedule as part of the agreement. F. This RFQ does not commit the City to award a contract. The City assumes no liability or responsibility for costs incurred by Respondents in responding to this request for qualifications or request for interviews, additional data, or other information with respect to the selection process, prior to the issuance of an agreement, contract or purchase order. The Respondents, by submitting a response to this RFQ, waives all right to protest or seek any legal remedies whatsoever regarding any aspect of this RFQ. G. This project is subject to the availability of funds. VIII. NONDISCRIMINATION AND EQUAL PAY POLICY The City of Bozeman requires each entity submitting under this notice shall affirm, on a separate form provided, that it will not discriminate on the basis of race, color, religion, creed, sex, age, marital status, national origin, or because of actual or perceived sexual orientation, sexual preference, gender identity, or disability in fulfillment of a contract entered into for the services identified herein and that this prohibition on discrimination shall apply to the hiring and treatment of the submitting entity’s employees and to all subcontracts it enters into in the fulfillment of the services identified herein. Failure to comply with this requirement shall be cause for the submittal to be deemed nonresponsive. The City also requires each entity submitting under this notice shall affirm it will abide by the Equal Pay Act of 1963 and Section 39-3-104, MCA (the Montana Equal Pay Act), and has visited the State of Montana Equal Pay for Equal Work “best practices” website, https://equalpay.mt.gov/BestPractices/Employers, or equivalent “best practices publication and has read the material. IX. MISCELLANEOUS A. No Oral Agreements. No conversations or oral agreements with any officer, employee, or agent of the City shall affect or modify any term of this solicitation. Oral communications or any written/email communication between any person and City officer, employee or agent shall not be considered binding. B. No Partnership/Business Organization. Nothing in this solicitation or in any subsequent agreement, or any other contract entered into as a result of this solicitation, shall constitute, create, give rise to or otherwise be recognized as a partnership or formal business organization of any kind between or among the respondent and the City. C. Employment Restriction and Indemnity. No person who is an owner, officer, employee, 66 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 hold the City harmless with respect to any and all claims for payment, compensation, salary, wages, bonuses, retirement, withholdings, worker’s compensation and occupational disease compensation, insurance, unemployment compensation other benefits and taxes and premiums in any way related to each respondent’s officers, employees, contractors and consultants. D. Accessibility. Upon reasonable notice, the City will provide assistance for those persons with sensory impairments. For further information please contact the ADA Coordinator Mike Gray at 406-582-3232 or the City’s TTY line at 406-582-2301. E. Procurement. When discrepancies occur between words and figures in this solicitation, the words shall govern. No responsibility shall attach to a City employee for the premature opening of an SOQ not properly addressed and identified in accordance with these documents. F. Governing Law. This solicitation and any disputes arising hereunder or under any future agreement shall be governed and construed and enforced in accordance with the laws of the State of Montana, without reference to principles of choice or conflicts of laws. X. ATTACHMENTS The following exhibits are incorporated in this RFQ: Appendix A: Non-Discrimination Affirmation Appendix B: Sample Form of Public Services Agreement Contract Appendix C: Ordinance 2056 – Establishing Municipal Percent for Art Program END OF RFQ 67 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 68 Attachment B PROFESSIONAL SERVICES AGREEMENT THIS AGREEMENT is made and entered into this _____ day of ____________, 202__ (“Effective Date”), by and between the CITY OF BOZEMAN, MONTANA, a self-governing municipal corporation organized and existing under its Charter and the laws of the State of Montana, 121 North Rouse Street, Bozeman, Montana, with a mailing address of PO Box 1230, Bozeman, MT 59771, hereinafter referred to as “City,” and, ____________, _______________, hereinafter referred to as “Contractor.” The City and Contractor may be referred to individually as “Party” and collectively as “Parties.” In consideration of the mutual covenants and agreements herein contained, the receipt and sufficiency whereof being hereby acknowledged, the parties hereto agree as follows: 1. Purpose: City agrees to enter this Agreement with Contractor to perform for City services described in the Scope of Services attached hereto as Exhibit A and by this reference made a part hereof. 2. Term/Effective Date: This Agreement is effective upon the Effective Date and will expire on the _____ day of ______________, 2022, unless earlier terminated in accordance with this Agreement. 3. Scope of Services: Contractor will perform the work and provide the services in accordance with the requirements of the Scope of Services. For conflicts between this Agreement and the Scope of Services, unless specifically provided otherwise, the Agreement governs. Contractor agrees to be bound by its responses to the City’s Cloud Questions, attached to this Agreement as Exhibit B and made part of this Agreement. Such responses constitute material consideration for the City to enter into this Agreement and the responses are material representations regarding the Contractor’s performance. 4. Payment: City agrees to pay Contractor the amount specified in the Scope of Services. Any alteration or deviation from the described services that involves additional costs above the Agreement amount will be performed by Contractor after written request by the City, and will become an additional charge over and above the amount listed in the Scope of Services. The City must agree in writing upon any additional charges. 69 5. Contractor’s Representations: To induce City to enter into this Agreement, Contractor makes the following representations: a. Contractor has familiarized itself with the nature and extent of this Agreement, the Scope of Services, and with all local conditions and federal, state and local laws, ordinances, rules, and regulations that in any manner may affect cost, progress or performance of the Scope of Services. b. Contractor represents and warrants to City that it has the experience and ability to perform the services required by this Agreement; that it will perform the services in a professional, competent and timely manner and with diligence and skill; that it has the power to enter into and perform this Agreement and grant the rights granted in it; and that its performance of this Agreement shall not infringe upon or violate the rights of any third party, whether rights of copyright, trademark, privacy, publicity, libel, slander or any other rights of any nature whatsoever, or violate any federal, state and municipal laws. The City will not determine or exercise control as to general procedures or formats necessary to have these services meet this warranty. 6. Independent Contractor Status/Labor Relations: The parties agree that Contractor is an independent contractor for purposes of this Agreement and is not to be considered an employee of the City for any purpose. Contractor is not subject to the terms and provisions of the City’s personnel policies handbook and may not be considered a City employee for workers’ compensation or any other purpose. Contractor is not authorized to represent the City or otherwise bind the City in any dealings between Contractor and any third parties. Contractor shall comply with the applicable requirements of the Workers’ Compensation Act, Title 39, Chapter 71, Montana Code Annotated (MCA), and the Occupational Disease Act of Montana, Title 39, Chapter 71, MCA. Contractor shall maintain workers’ compensation coverage for all members and employees of Contractor’s business, except for those members who are exempted by law. Contractor shall furnish the City with copies showing one of the following: (1) a binder for workers’ compensation coverage by an insurer licensed and authorized to provide workers’ compensation insurance in the State of Montana; or (2) proof of exemption from workers’ compensation granted by law for independent contractors. Contractor shall post a legible statement of all wages and fringe benefits to be paid to the Contractor’s employees and the frequency of such payments (i.e., hourly wage employees shall be paid weekly). Such posting shall be made in a prominent and accessible location at the Contractor’s normal place of business and shall be made no later than the first day of services provided under this Agreement. Such posting shall be removed only upon expiration or termination of this Agreement. 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. 70 Pursuant to §§18-2-403 and 18-2-422, MCA, Contractor shall pay wages, fringe benefits, and expenses, including travel allowances as set forth in the current Montana Prevailing Wage Rate for Non Construction Services in effect and applicable to Gallatin County, Montana, which schedule is incorporated herein. Contractor shall pay all hourly wage employees on a weekly basis. Violation of the requirements set forth in the above State of Montana schedule of prevailing wage rates may subject the Contractor to the penalties set forth in §18-2-407, MCA. Contractor shall maintain payroll records during the term of this Agreement and for a period of three (3) years following termination of this Agreement. The Contractor shall ensure that any person, firm or entity performing any portion of the services under this Agreement for which the contractor, subcontractor or employer is responsible, is paid the applicable standard prevailing rate of wages. In the event that, during the term of this Agreement, any labor problems or disputes of any type arise or materialize which in turn cause any services to cease for any period of time, Contractor specifically agrees to take immediate steps, at its own expense and without expectation of reimbursement from City, to alleviate or resolve all such labor problems or disputes. The specific steps Contractor shall take shall be left to the discretion of Contractor; provided, however, that Contractor shall bear all costs of any related legal action. Contractor shall provide immediate relief to the City so as to permit the services to continue at no additional cost to City. Contractor shall indemnify, defend, and hold the City harmless from any and all claims, demands, costs, expenses, damages, and liabilities arising out of, resulting from, or occurring in connection with any labor problems or disputes or any delays or stoppages of work associated with such problems or disputes and for any claims regarding underpaid prevailing wages. 7. Indemnity/Waiver of Claims/Insurance: For other than professional services rendered, to the fullest extent permitted by law, Contractor agrees to release, defend, indemnify, and hold harmless the City, its agents, representatives, employees, and officers (collectively referred to for purposes of this Section as the City) from and against any and all claims, demands, actions, fees and costs (including attorney’s fees and the costs and fees of expert witness and consultants), losses, expenses, liabilities (including liability where activity is inherently or intrinsically dangerous) or damages of whatever kind or nature connected therewith and without limit and without regard to the cause or causes thereof or the negligence of any party or parties that may be asserted against, 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. 71 Such obligations shall not be construed to negate, abridge, or reduce other rights or obligations of indemnity that would otherwise exist. The indemnification obligations of this Section must not be construed to negate, abridge, or reduce any common-law or statutory rights of the City as indemnitee(s) which would otherwise exist as to such indemnitee(s). Contractor’s indemnity under this Section shall be without regard to and without any right to contribution from any insurance maintained by City. Should the City be required to bring an action against the Contractor to assert its right to defense or indemnification under this Agreement or under the Contractor’s applicable insurance policies required below, the City shall be entitled to recover reasonable costs and attorney fees incurred in asserting its right to indemnification or defense but only if a court of competent jurisdiction determines the Contractor was obligated to defend the claim(s) or was obligated to indemnify the City for a claim(s) or any portion(s) thereof. In the event of an action filed against the City resulting from the City’s performance under this Agreement, the City may elect to represent itself and incur all costs and expenses of suit. Contractor also waives any and all claims and recourse against the City, including the right of contribution for loss or damage to person or property arising from, growing out of, or in any way connected with or incident to the performance of this Agreement except “responsibility for [City’s] own fraud, for willful injury to the person or property of another, or for violation of law, whether willful or negligent” as per 28-2-702, MCA. These obligations shall survive termination of this Agreement and the services performed hereunder. In addition to and independent from the above, Contractor shall at Contractor’s expense secure insurance coverage through an insurance company or companies duly licensed and authorized to conduct insurance business in Montana which insures the liabilities and obligations specifically 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; 72  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. 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 73 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. 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 _________________ 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 74 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. 12. Permits: Contractor shall provide all notices, comply with all applicable laws, ordinances, rules, and regulations, obtain all necessary permits, licenses, including a City of Bozeman business license, and inspections from applicable governmental authorities, and pay all fees and charges in connection therewith. 13 Laws and Regulations: Contractor shall comply fully with all applicable state and federal laws, regulations, and municipal ordinances including, but not limited to, all workers’ compensation laws, all environmental laws including, but not limited to, the generation and disposal of hazardous waste, the Occupational Safety and Health Act (OSHA), the safety rules, codes, and provisions of the Montana Safety Act in Title 50, Chapter 71, MCA, all applicable City, County, and State building and electrical codes, the Americans with Disabilities Act, and all non-discrimination, affirmative action, and utilization of minority and small business statutes and regulations. 14. Nondiscrimination and Equal Pay: The Contractor agrees that all hiring by Contractor of persons performing this Agreement shall be on the basis of merit and qualifications. The Contractor will have a policy to provide equal employment opportunity in accordance with all applicable state and federal anti-discrimination laws, regulations, and contracts. The Contractor will not refuse employment to a person, bar a person from employment, or discriminate against a person in compensation or in a term, condition, or privilege of employment because of race, color, religion, creed, political ideas, sex, age, marital status, national origin, actual or perceived sexual orientation, gender identity, physical or mental disability, except when the reasonable demands of the position require an age, physical or mental disability, marital status or sex distinction. The Contractor shall be subject to and comply with Title VI of the Civil Rights Act of 1964; Section 140, Title 2, United States Code, and all regulations promulgated thereunder. 75 Contractor represents it is, and for the term of this Agreement will be, in compliance with the requirements of the Equal Pay Act of 1963 and Section 39-3-104, MCA (the Montana Equal Pay Act). Contractor must report to the City any violations of the Montana Equal Pay Act that Contractor has been found guilty of within 60 days of such finding for violations occurring during the term of this Agreement. Contractor shall require these nondiscrimination terms of its subcontractors providing services under this Agreement. 15. Intoxicants; DOT Drug and Alcohol Regulations/Safety and Training: Contractor shall not permit or suffer the introduction or use of any intoxicants, including alcohol or illegal drugs, by any employee or agent engaged in services to the City under this Agreement while on City property or in the performance of any activities under this Agreement. Contractor acknowledges it is aware of and shall comply with its responsibilities and obligations under the U.S. Department of Transportation (DOT) regulations governing anti-drug and alcohol misuse prevention plans and related testing. City shall have the right to request proof of such compliance and Contractor shall be obligated to furnish such proof. The Contractor shall be responsible for instructing and training the Contractor's employees and agents in proper and specified work methods and procedures. The Contractor shall provide continuous inspection and supervision of the work performed. The Contractor is responsible for instructing its employees and agents in safe work practices. 16. Modification and Assignability: This Agreement may not be enlarged, modified or altered except by written agreement signed by both parties hereto. The Contractor may not subcontract or assign Contractor’s rights, including the right to compensation or duties arising hereunder, without the prior written consent of the City. Any subcontractor or assignee will be bound by all of the terms and conditions of this Agreement. 17. Reports/Accountability/Public Information: Contractor agrees to develop and/or provide documentation as requested by the City demonstrating Contractor’s compliance with the requirements of this Agreement. Contractor shall allow the City, its auditors, and other persons authorized by the City to inspect and copy its books and records for the purpose of verifying that the reimbursement of monies distributed to Contractor pursuant to this Agreement was used in compliance with this Agreement and all applicable provisions of federal, state, and local law. The Contractor shall not issue any statements, releases or information for public dissemination without prior approval of the City. 18. Non-Waiver: A waiver by either party of any default or breach by the other party of any terms or conditions of this Agreement does not limit the other party’s right to enforce such term or conditions or to pursue any available legal or equitable rights in the event of any subsequent default or breach. 76 19. Attorney’s Fees and Costs: In the event it becomes necessary for either Party to retain an attorney to enforce any of the terms or conditions of this Agreement or to give any notice required herein, then the prevailing Party or the Party giving notice shall be entitled to reasonable attorney's fees and costs, including fees, salary, and costs of in-house counsel including the City Attorney’s Office staff. 20. Taxes: Contractor is obligated to pay all taxes of any kind or nature and make all appropriate employee withholdings. 21. Dispute Resolution: a. Any claim, controversy, or dispute between the parties, their agents, employees, or representatives shall be resolved first by negotiation between senior-level personnel from each party duly authorized to execute settlement agreements. Upon mutual agreement of the parties, the parties may invite an independent, disinterested mediator to assist in the negotiated settlement discussions. b. If the parties are unable to resolve the dispute within thirty (30) days from the date the dispute was first raised, then such dispute may only be resolved in a court of competent jurisdiction in compliance with the Applicable Law provisions of this Agreement. 22. Survival: Contractor’s indemnification shall survive the termination or expiration of this Agreement for the maximum period allowed under applicable law. 23. Headings: The headings used in this Agreement are for convenience only and are not be construed as a part of the Agreement or as a limitation on the scope of the particular paragraphs to which they refer. 24. Severability: If any portion of this Agreement is held to be void or unenforceable, the balance thereof shall continue in effect. 25. Applicable Law: The parties agree that this Agreement is governed in all respects by the laws of the State of Montana. 26. Binding Effect: This Agreement is binding upon and inures to the benefit of the heirs, legal representatives, successors, and assigns of the parties. 27. No Third-Party Beneficiary: This Agreement is for the exclusive benefit of the parties, does not constitute a third-party beneficiary agreement, and may not be relied upon or enforced by a third party. 28. Counterparts: This Agreement may be executed in counterparts, which together constitute one instrument. 77 29. Integration: This Agreement and all Exhibits attached hereto constitute the entire agreement of the parties. Covenants or representations not contained herein or made a part thereof by reference, are not binding upon the parties. There are no understandings between the parties other than as set forth in this Agreement. All communications, either verbal or written, made prior to the date of this Agreement are hereby abrogated and withdrawn unless specifically made a part of this Agreement by reference. 30. Consent to Electronic Signatures: The Parties have consented to execute this Agreement electronically in conformance with the Montana Uniform Electronic Transactions Act, Title 30, Chapter 18, Part 1, MCA. 31. Extensions: this Agreement may, upon mutual agreement, be extended for a period of one year by written agreement of the Parties. In no case, however, may this Agreement run longer than - __________________________. **** END OF AGREEMENT EXCEPT FOR SIGNATURES **** IN WITNESS WHEREOF, the parties hereto have executed this Agreement the day and year first above written or as recorded in an electronic signature. CITY OF BOZEMAN, MONTANA ____________________________________ CONTRACTOR (Type Name Above) By________________________________ By__________________________________ Jeff Mihelich, City Manager Print Name: ___________________________ Print Title: ____________________________ APPROVED AS TO FORM: By_______________________________ Greg Sullivan, Bozeman City Attorney 78 Attachment C 79 Page 1 of 11 ORDINANCE NO. 2056 AN ORDINANCE OF THE CITY COMMISSION OF THE CITY OF BOZEMAN, MONTANA ESTABLISHING A PERCENT FOR ART PROGRAM AND AMENDING CHAPTER 2, ARTICLE 6 OF THE BOZEMAN MUNICIPAL CODE TO ADD DIVISION 11, PUBLIC ART. WHEREAS, the City of Bozeman (the “City”) is authorized by the City Charter and Montana law to establish administrative programs designed to enhance and protect the public welfare; and WHEREAS, the City finds it promotes and protects the public welfare to enhance the beauty of public areas of the City; and WHEREAS, the City finds that such enhancement adds to the quality of life of the City’s citizens, attracts tourism, and encourages businesses and other organizations to locate in the City, adding to the City’s economic vitality. NOW THEREFORE, BE IT ORDAINED BY THE CITY COMMISSION OF THE CITY OF BOZEMAN, MONTANA: Section 1 That the Bozeman Municipal Code be amended by adding a new division 11, Public Art, to Chapter 2, Administration, Article 6, Finance, as follows: 169 DocuSign Envelope ID: F417F015-F107-43B8-8320-38D7BDC49338 80 Ordinance 2056, Percent for Art Program Page 2 of 11 DIVISION 11. – PUBLIC ART 2.06.1960. – Title and purpose. This division shall be known as the “City of Bozeman Percent for Art Ordinance.” The purpose of this division is to establish a Percent for Art Program for city-funded capital improvement projects and to provide for the funding, selection, and maintenance of public art and establish responsibilities relating to administering the Percent for Art Program. The purpose of the Percent for Art Program is to include works of art within certain city capital improvement projects equal to one percent (1%) of construction costs of the project. 2.06.1970. – Percent for Art Program established. There is hereby established a Percent for Art Program. The city manager or their designee shall be responsible to administer the Percent for Art Program as described in this division and in 2.05.1420. The City shall endeavor to develop a collection of public art of high quality, encompassing a broad aesthetic range reflecting the city, in order to improve the quality of life in the area, be accessible to all individuals, and be a source of pride to residents. A. The Percent for Art Program shall apply to both new and remodeled city-owned public spaces and structures. B. The following categories of projects are exempt from the Percent for Art Program requirements: 1. Water, stormwater, or wastewater facilities, except for office buildings. 2. Street construction and repair; public right of way improvements, such as curb, sidewalk, trails, pedestrian pathways, and traffic control facilities; and landscaping. C. The Percent for Art Program requires one percent (1%) of eligible construction costs of city capital improvement projects over $500,000 to construct or remodel any public or city building, structure, park or any portion thereof, to be allocated for public art. No less than eighty percent (80%) of the one percent appropriation will be used for on-site artwork; up to twenty percent (20%) of this one percent shall be held in a public art operations fund to be used for program administration and maintenance of the art, as determined necessary by the city manager to carry out the provisions of this division. 170 DocuSign Envelope ID: F417F015-F107-43B8-8320-38D7BDC49338 81 Ordinance 2056, Percent for Art Program Page 3 of 11 D. The art may serve a function, express a theme, or commemorate an important person. It may underscore or provide a counterpoint to the architecture and surrounding site. It may serve as a landmark that adds definition to the city. E. The city manager is authorized to adopt such additional processes and policies by Administrative Order not inconsistent with this division 11 as they may deem necessary to implement the Percent for Art Program in accordance with the objectives of this division. 2.06.1980. – Objectives. The Percent for Art Program objectives include: A. Develop a public art program that is unique to Bozeman. B. Increase the understanding and enjoyment of public art by Bozeman residents. C. Invite public participation in the interaction with public spaces. D. Provide challenging employment opportunities for artists. E. Encourage collaborations between artists and architects and engineers. F. Support artist participation on design teams for planning public projects. G. Encourage a variety of art forms: temporary and permanent, object and event, single or dispersed locations. H. Spread commissions among a wide number of artists and strive for overall diversity in style, scale and intent. 2.06.1990. - Definitions. A. “Architect” is the person or firm designing the project to which the one percent (1%) funding applies. Where the architect is a firm, the term architect shall mean the principal of that firm in charge of designing the project for which the one percent (1%) funding applies. B. “Artist” is a practitioner in the visual arts, generally recognized by critics and peers as a professional of serious intent and recognized ability who produces artworks and is not a member of the project architectural/design firm. C. “Artwork” includes but is not limited to, paintings, murals, inscriptions, stained glass, fiber work, statues, reliefs or other sculpture, monuments, arches, or other structures 171 DocuSign Envelope ID: F417F015-F107-43B8-8320-38D7BDC49338 82 Ordinance 2056, Percent for Art Program Page 4 of 11 intended for ornament or commemoration. Also included are carvings, frescoes, mosaics, mobiles, photographs, drawings, collages, prints, crafts, both decorative and utilitarian in clay, fiber, wood, metal, glass, plastics and other materials. Landscape items include the artistic placement of natural materials or other functional art objects. Artwork may be portable as well as permanently sited. D. “Capital Improvement Plan” (CIP) means the annual capital improvement plan adopted for city-financed public improvement projects. E. “Capital Improvement Project” means any public works project undertaken by the city to construct or remodel any public or city building, structure, park or any portion thereof. F. “Construction Cost” is the contracted sum for construction of the designated project including any change orders included in the initial contract notice of award. Construction costs do not include costs such as professional fees, cost of land, rights of way and financing. G. “Contractor” is any firm, individual, joint venture or team of firms or individuals with which the city contracts for design, engineering, or construction services. H. “Deaccessioning” is a procedure for the withdrawal of an artwork from the public collection. I. “Eligible Construction Cost” is that portion of the construction cost of any capital improvement project paid for solely by the city to construct or remodel any building, decorative or commemorative structure, parking facility, park, recreational facility, or any portion thereof, located on city property, provided that the source of funds for such project(s) is not restricted by law or regulation as to its use for artworks. J. “Maintenance” is the periodic work on a facility or asset required to maintain its original functionality. K. “Remodel” is work required to substantially change or enhance the functionality of a facility. 2.06.2000. – Procedure to select public art for eligible projects. A. Upon adoption of the capital improvement plan the finance director will identify all projects for which the Percent for Art Ordinance applies. 172 DocuSign Envelope ID: F417F015-F107-43B8-8320-38D7BDC49338 83 Ordinance 2056, Percent for Art Program Page 5 of 11 B. All Percent for Art Program projects, whether they are permanent or temporary artworks, will be developed to respond to a specific site or building location, with the exception of artworks that are conceptually intended to circulate among various sites or facilities within the project area. C. The selection of artist(s) who will provide art integral to the project will be made as early in the conceptual design stage as practical, so artist(s) will be able to work with the contractor from the beginning of the project. D. The city manager or their designee is responsible for identifying, investigating, and selecting the artist(s) or artwork(s). For each project, the city manager or their designee will develop a formal structure in which to select, develop and maintain public art as well as further public accessibility to the arts in accordance with the objectives of the Percent for Art Program. The city manager may choose to work in cooperation with an independent contractor or nonprofit arts organization in the selection process. E. The city manager or their designee shall work with city staff and/or the independent contractor or nonprofit arts organization to analyze and discuss appropriate locations, suitable art forms, artists’ prerequisites, and specifics of artist/artwork selection process. F. A call for artists, request for proposals, or other form of advertisement as provided by the city’s procurement policy will be prepared by city staff and/or the independent contractor or nonprofit arts organization and advertised by the city clerk. The proposals will be evaluated by the city manager or their designee. The city manager may form a selection committee for this purpose. If the city manager has enlisted an independent contractor or nonprofit arts organization to assist in the selection process, that contractor or organization will evaluate the proposals and make a recommendation regarding the final selection to the city manager. The city manager will make the final selection determination. G. In the response to the city’s request for proposals, artists must include information relating to the proposed artwork’s lifecycle. H. The city manager is responsible for providing staff and other resources to meet the city’s obligations under this division. In the event of a disagreement as to whether an expense is eligible pursuant to 2.06.2020, the city manager shall make the final determination. 173 DocuSign Envelope ID: F417F015-F107-43B8-8320-38D7BDC49338 84 Ordinance 2056, Percent for Art Program Page 6 of 11 I. Contractors invited to submit a proposal for an applicable construction or renovation project shall be advised of the requirements of this division. The contractor shall work closely with the city manager or their designee on the designation of appropriate sites and shall incorporate the artist’s or artwork’s special requirements within the construction documents, including the time of delivery and installation of the artwork. The selected artwork must be placed so that it is the public view. J. Artists will be selected in accordance with the city’s procurement policy, on the basis of their qualifications as demonstrated by past work, appropriateness of the proposal to the particular project, and its probability of successful completion as determined by the selection committee. K. The city has the option of making no selection. If no proposal is accepted, the city has the right to reopen the competition or to propose other methods of selection. L. Upon the selection of an artwork, the artist shall enter into a contract with the city for the artist’s services or for the purchase and installation of the artwork. This contract shall require the artist to produce or deliver the artwork for a price guaranteed to be no greater than the maximum contracted cost, and shall require the transfer of all rights in and to the artwork to the city, including all intellectual property rights. The contract must be reviewed by the city attorney. M. Where the city manager determines that an expenditure for a specific artwork is inappropriate, the city manager may approve the transfer of those funds to another Percent for Art project. 2.06.2010. – Criteria for selection of artwork(s). A. In making the final selection, the city shall be guided by the goals and purposes of this ordinance and the criteria set forth in this document and any regulations promulgated to fulfill the criteria. B. Each proposed artwork will also be evaluated as to its artistic excellence, appropriateness in terms of scale, material and content relative to the immediate and general architectural, social and historic context; technical feasibility; and long term durability against vandalism, weather, and theft. Consideration must be given to materials, construction, durability, maintenance costs, public access and safety. 174 DocuSign Envelope ID: F417F015-F107-43B8-8320-38D7BDC49338 85 Ordinance 2056, Percent for Art Program Page 7 of 11 2.06.2020. – Conflict of interest. A. No artist sitting on a nonprofit arts organization’s board of directors may submit for Percent for Art projects over which that organization has approval authority or administrative responsibility during his/her tenure. B. No staff member of a nonprofit arts organization or member of a staff member’s household may submit for Percent for Art projects over which that organization has approval authority or administrative responsibility. C. No artist sitting on a selection committee may submit for the project for which the committee was formed. D. The selection process must comply with the Code of Ethics, article 3, division 4 of this chapter. 2.06.2030. - Eligible expenses for the Percent for Art Program. A. Appropriations for Percent for Art Program projects may be spent for: 1. The artwork itself, including but not limited to: a. Artist’s design fees. b. Additional labor and materials required for production and installation of the artwork. c. Artist’s operating costs. d. Travel related to the project. e. Transportation of the artwork to the site and installation. f. Any required permitting fees. 2. Identification plaques and labels. 3. Frames, mats, mountings, anchorages, containments, pedestals, or materials necessary for the installation, location or security of the artwork. 4. Photographs of completed artworks. 5. Communication and other indirect costs including insurance. 6. Expenses for special advisors or consultants. 7. Historical artifacts displaced by construction. 175 DocuSign Envelope ID: F417F015-F107-43B8-8320-38D7BDC49338 86 Ordinance 2056, Percent for Art Program Page 8 of 11 8. Expenses related to the administration of carrying out the directives of this division, including but not limited to: a. Technology services and subscriptions (e.g., a web-service for promoting an art- call). b. Advertising, publicity, promotion, and invitation expenses. c. Expenses related to public events related to artwork (e.g., rental of public address equipment and catering expenses). d. Due diligence expenses required for the responsible consideration of artwork (e.g., engineering or environmental consultation). e. Expenses related to augmenting artwork (e.g., addition of lighting, landscaping or general enhancements to artwork), if such components are not included in the artwork itself. B. Appropriations for Percent for Art Program projects may not be spent for: 1. Reproduction, by mechanical or other means, of original artworks, except in cases of film, video, photography, printmaking or other media arts. 2. Those elements generally considered to be components of a landscape architectural design or landscape gardening. 3. “Art objects” which are mass produced of standard design, such as playground sculptures. 4. Directional or other functional elements, such as supergraphics, signs, color coding, maps, etc. except where a recognized artist is employed. C. The city manager shall make the final determination of the eligibility of a particular expense. 2.06.2040. – Public Art Management/Maintenance. A. All artworks remain under the ownership of the city. Artworks will be insured for property damage in accordance with the city’s policies for insuring city property. B. The city will be responsible for the ongoing care and maintenance of all artworks purchased or commissioned pursuant to this division. C. The city manager or their designee shall inform the city attorney if an artwork is damaged or stolen. 176 DocuSign Envelope ID: F417F015-F107-43B8-8320-38D7BDC49338 87 Ordinance 2056, Percent for Art Program Page 9 of 11 D. Monies to maintain artworks shall come from the public art operations fund. 2.06.2050. – Deaccessioning. Deaccessioning will be considered only after a careful and impartial evaluation of the artwork within the context of the collection as a whole. At the beginning of the process, the city manager or their designee will make a reasonable effort to notify any living artist whose work is being considered for deaccessioning. The city manager may consider the deaccession of artwork for one or more of the following reasons in the event that it cannot be re-sited: A. The artwork has been damaged or has deteriorated and repair is impractical or unfeasible. B. The artwork endangers public safety. C. In the case of site-specific artwork, the artwork is destroyed by severely altering its relationship to the site. D. The artwork requires excessive maintenance or has faults of design or workmanship. 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. 177 DocuSign Envelope ID: F417F015-F107-43B8-8320-38D7BDC49338 88 Ordinance 2056, Percent for Art Program Page 10 of 11 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 be codified as indicated in Section 1. Section 6 Effective Date. This ordinance shall be in full force and effect 30 days after final passage and approval. PROVISIONALLY ADOPTED by the City Commission of the City of Bozeman, Montana, on first reading at a regular session held on the 27th day of October, 2020. ____________________________________ CYNTHIA L. ANDRUS Mayor ATTEST: _______________________________ MIKE MAAS City Clerk 178 DocuSign Envelope ID: F417F015-F107-43B8-8320-38D7BDC49338 89 Ordinance 2056, Percent for Art Program Page 11 of 11 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 10th day of November, 2020. The effective date of this ordinance is December 10, 2020. ________________________________ CYNTHIA L. ANDRUS Mayor ATTEST: _______________________________ MIKE MAAS City Clerk APPROVED AS TO FORM: ________________________________ GREG SULLIVAN City Attorney 179 DocuSign Envelope ID: F417F015-F107-43B8-8320-38D7BDC49338 90 Memorandum REPORT TO:City Commission FROM:Max Ziegler, Facilities Assistant Superintendent David Arnado, Facilities Superintendent SUBJECT:Authorize the City Manager to Sign a Professional Services Agreement with Dust Bunnies Inc. for Janitorial Services Citywide MEETING DATE:November 26, 2024 AGENDA ITEM TYPE:Agreement - Vendor/Contract RECOMMENDATION:Authorize the City Manager to Sign a Professional Services Agreement with Dust Bunnies Inc. for Janitorial Services Citywide STRATEGIC PLAN:4.3 Strategic Infrastructure Choices: Prioritize long-term investment and maintenance for existing and new infrastructure. BACKGROUND:The City of Bozeman Facilities Department provides after hours janitorial services to a number of City buildings, including City Hall, Bozeman Public Library, and the Stiff Professional Building in order to provide a high quality level of service to the public and City staff. To meet the needs of the various buildings the Facilities Department contracts with outside Janitorial Services Contractors, who perform overnight cleaning of public areas, restrooms and offices. In August 2024, the City of Bozeman published a Request for Proposals seeking a janitorial services contractor to provide janitorial services to 9 buildings across the City for Fiscal Years 2025-2029. A number of janitorial contractors attended a mandatory pre-submission walkthrough of all sites included in the contract. Proposals received were rigorously scored according to the criteria published in the RFP, and two top scoring finalists were interviewed before a final award was made. Based on the scoring of the proposals and subsequent interviews, Dust Bunnies Inc. was selected for award of the FY25-29 Citywide Janitorial Contract. Specifications for janitorial services and scopes of work for each building included in the contract are attached as Exhibits B and C. UNRESOLVED ISSUES:None at this time. ALTERNATIVES:As suggested by City Commission. FISCAL EFFECTS:This contract will incur an annual cost of $347,956 to be paid from the Facilities Department operating budget. 91 Attachments: PSA - Dust Bunnies Inc - Janitorial Services Citywide.pdf RFP - Janitorial Services 2025-2029.pdf Report compiled on: November 13, 2024 92 Professional Services Agreement for Janitorial Services Citywide FY25-FY29 Page 1 of 11 PROFESSIONAL SERVICES AGREEMENT THIS AGREEMENT is made and entered into this _____ day of ____________, 2024 (“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, Dust Bunnies Inc., 264 Coral Drive, Belgrade, MT 89714, hereinafter referred to as “Contractor.” The City and Contractor may be referred to individually as “Party” and collectively as “Parties.” In consideration of the mutual covenants and agreements herein contained, the receipt and sufficiency whereof being hereby acknowledged, the parties hereto agree as follows: 1. Purpose: City agrees to enter this Agreement with Contractor to perform for City services described in the Scope of Services attached hereto as Exhibit A and by this reference made a part hereof. 2. Term/Effective Date: This Agreement is effective upon the Effective Date and will expire on the 31st day of December, 2029, unless earlier terminated in accordance with this Agreement. 3. Scope of Services: Contractor will perform the work and provide the services in accordance with the requirements of the Scope of Services. For conflicts between this Agreement and the Scope of Services, unless specifically provided otherwise, the Agreement governs. 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: 93 Professional Services Agreement for Janitorial Services Citywide FY25-FY29 Page 2 of 11 a. Contractor has familiarized itself with the nature and extent of this Agreement, the Scope of Services, and with all local conditions and federal, state and local laws, ordinances, rules, and regulations that in any manner may affect cost, progress or performance of the Scope of Services. b. Contractor represents and warrants to City that it has the experience and ability to perform the services required by this Agreement; that it will perform the services in a professional, competent and timely manner and with diligence and skill; that it has the power to enter into and perform this Agreement and grant the rights granted in it; and that its performance of this Agreement shall not infringe upon or violate the rights of any third party, whether rights of copyright, trademark, privacy, publicity, libel, slander or any other rights of any nature whatsoever, or violate any federal, state and municipal laws. The City will not determine or exercise control as to general procedures or formats necessary to have these services meet this warranty. 6. Independent Contractor Status/Labor Relations: The parties agree that Contractor is an independent contractor for purposes of this Agreement and is not to be considered an employee of the City for any purpose. Contractor is not subject to the terms and provisions of the City’s personnel policies handbook and may not be considered a City employee for workers’ compensation or any other purpose. Contractor is not authorized to represent the City or otherwise bind the City in any dealings between Contractor and any third parties. Contractor shall comply with the applicable requirements of the Workers’ Compensation Act, Title 39, Chapter 71, Montana Code Annotated (MCA), and the Occupational Disease Act of Montana, Title 39, Chapter 71, MCA. Contractor shall maintain workers’ compensation coverage for all members and employees of Contractor’s business, except for those members who are exempted by law. Contractor shall furnish the City with copies showing one of the following: (1) a binder for workers’ compensation coverage by an insurer licensed and authorized to provide workers’ compensation insurance in the State of Montana; or (2) proof of exemption from workers’ compensation granted by law for independent contractors. 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. 94 Professional Services Agreement for Janitorial Services Citywide FY25-FY29 Page 3 of 11 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 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 95 Professional Services Agreement for Janitorial Services Citywide FY25-FY29 Page 4 of 11 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; • 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. 96 Professional Services Agreement for Janitorial Services Citywide FY25-FY29 Page 5 of 11 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. 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 97 Professional Services Agreement for Janitorial Services Citywide FY25-FY29 Page 6 of 11 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. 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 David Arnado, Facilities Superintendent, 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. 98 Professional Services Agreement for Janitorial Services Citywide FY25-FY29 Page 7 of 11 b. Contractor’s Representative: The Contractor’s Representative for the purpose of this Agreement shall be Heather Jacks, 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. 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. 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 99 Professional Services Agreement for Janitorial Services Citywide FY25-FY29 Page 8 of 11 require an age, physical or mental disability, marital status or sex distinction. The Contractor shall be subject to and comply with Title VI of the Civil Rights Act of 1964; Section 140, Title 2, United States Code, and all regulations promulgated thereunder. Contractor represents it is, and for the term of this Agreement will be, in compliance with the requirements of the Equal Pay Act of 1963 and Section 39-3-104, MCA (the Montana Equal Pay Act). Contractor must report to the City any violations of the Montana Equal Pay Act that Contractor has been found guilty of within 60 days of such finding for violations occurring during the term of this Agreement. Contractor shall require these nondiscrimination terms of its subcontractors providing services under this Agreement. 16. Intoxicants; DOT Drug and Alcohol Regulations/Safety and Training: Contractor shall not permit or suffer the introduction or use of any intoxicants, including alcohol or illegal drugs, by any employee or agent engaged in services to the City under this Agreement while on City property or in the performance of any activities under this Agreement. Contractor acknowledges it is aware of and shall comply with its responsibilities and obligations under the U.S. Department of Transportation (DOT) regulations governing anti-drug and alcohol misuse prevention plans and related testing. City shall have the right to request proof of such compliance and Contractor shall be obligated to furnish such proof. The Contractor shall be responsible for instructing and training the Contractor's employees and agents in proper and specified work methods and procedures. The Contractor shall provide continuous inspection and supervision of the work performed. The Contractor is responsible for instructing its employees and agents in safe work practices. 17. Modification and Assignability: This Agreement may not be enlarged, modified or altered except by written agreement signed by both parties hereto. The Contractor may not subcontract or assign Contractor’s rights, including the right to compensation or duties arising hereunder, without the prior written consent of the City. Any subcontractor or assignee will be bound by all of the terms and conditions of this Agreement. 18. Reports/Accountability/Public Information: Contractor agrees to develop and/or provide documentation as requested by the City demonstrating Contractor’s compliance with the requirements of this Agreement. Contractor shall allow the City, its auditors, and other persons authorized by the City to inspect and copy its books and records for the purpose of verifying that the reimbursement of monies distributed to Contractor pursuant to this Agreement was used in 100 Professional Services Agreement for Janitorial Services Citywide FY25-FY29 Page 9 of 11 compliance with this Agreement and all applicable provisions of federal, state, and local law. The Contractor shall not issue any statements, releases or information for public dissemination without prior approval of the City. 19. Non-Waiver: A waiver by either party of any default or breach by the other party of any terms or conditions of this Agreement does not limit the other party’s right to enforce such term or conditions or to pursue any available legal or equitable rights in the event of any subsequent default or breach. 20. Attorney’s Fees and Costs: In the event it becomes necessary for either Party to retain an attorney to enforce any of the terms or conditions of this Agreement or to give any notice required herein, then the prevailing Party or the Party giving notice shall be entitled to reasonable attorney's fees and costs, including fees, salary, and costs of in-house counsel including the City Attorney’s Office staff. 21. Taxes: Contractor is obligated to pay all taxes of any kind or nature and make all appropriate employee withholdings. 22. Dispute Resolution: a. Any claim, controversy, or dispute between the parties, their agents, employees, or representatives shall be resolved first by negotiation between senior-level personnel from each party duly authorized to execute settlement agreements. Upon mutual agreement of the parties, the parties may invite an independent, disinterested mediator to assist in the negotiated settlement discussions. b. If the parties are unable to resolve the dispute within thirty (30) days from the date the dispute was first raised, then such dispute may only be resolved in a court of competent jurisdiction in compliance with the Applicable Law provisions of this Agreement. 23. Survival: Contractor’s indemnification shall survive the termination or expiration of this Agreement for the maximum period allowed under applicable law. 24. Headings: The headings used in this Agreement are for convenience only and are not be construed as a part of the Agreement or as a limitation on the scope of the particular paragraphs to which they refer. 25. Severability: If any portion of this Agreement is held to be void or unenforceable, the 101 Professional Services Agreement for Janitorial Services Citywide FY25-FY29 Page 10 of 11 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. 32. Extensions: this Agreement may, upon mutual agreement, be extended for a period of one year by written agreement of the Parties. In no case, however, may this Agreement run longer than five years. **** END OF AGREEMENT EXCEPT FOR SIGNATURES **** 102 Professional Services Agreement for Janitorial Services Citywide FY25-FY29 Page 11 of 11 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__________________________________ Chuck Winn, Interim City Manager Print Name: ___________________________ Print Title: ____________________________ APPROVED AS TO FORM: By_______________________________ Greg Sullivan, Bozeman City Attorney 103 EXHIBIT A 104 City of Bozeman fanitorial City Wide- Bozeman, MT 59715 LICENSED . BONDED . INSURED 406.45 1.8 47 6 . DustBunniesMontana.com IANITORIAL SERVICE PROPOSAL pt Prepared By: Heather iacks on August3A,2A24 * II ; ** co. C L E A N I N G S E R V I C E," 105 SUBMITTAL FORM *THIS DOCIJMENT MUST BE COMPLETED, EXECUTED AND SUBMITTED WITH THE PROPOSAL* THE REPRESENTATIONS MADE HEREIN ARE MADE UNDER PENALW OF PERJURY NO PROPOSAL IS VALID UNLESS SUBMITTED ON THIS FORM AND SIGNED BYAUTHORIZEDAGENT FOR YOUR COMPANY. SUBMITTED BY: COMPANY NAME: Dust Bunnies Inc. ADDRESS: 264 Coral Drive CITY: Bel STATE: MT ZIP: 59714 TELEPHoNE : t406)451-847 6 EMAIL: SIGNATURE (Authorized NAME: Heather Jacks {Please Print} TITLE: Owner DATE: 8/30/2024 \-kw 106 Executive Summary Dust Bunnies Inc. City-Wide |anitorial Services Bid Proposal for The City of Bozeman Dust Bunnies Inc. is honored to submit our bid proposal for city-wide janitorial services for The City of Bozeman. Established in 2004, our company has been a trusted partner with The City of Bozeman since 2008, consistently delivering superior cleaning services tailored to municipal needs. Scope ofServices Our proposal encompasses a comprehensive range of janitorial services designed to maintain the cleanliness, hygiene, and functionality of all city buildings. This includes daily cleaning of office spaces, restrooms, and common areas; periodic deep-cleaning; waste management; and specialized cleaning services as required. We use advanced equipment and eco-friendly cleaning products to ensure both effectiveness and sustainability. Key Differentiators Proven Experience: With over 20 years of industry expertise and a long-standing partnership with The City of Bozeman, Dust Bunnies Inc. brings a deep understanding of municipal cleaning needs and standards. Established Partnership: Since 2008, we have successfully partnered with The City of Bozeman, demonstrating our reliability and commitment to exceptional service. Our familiarity with city facilities ensures a seamless and efficient service delivery. 264 Coral Drive . Belgrade, MT 5971,4 . 406.45L.8476. DustBunniesMontana@gmail.com D D CLEANING SERVICE'U 107 Staff: All of our staff undergo thorough screening, fingerprinting and CllN Information Network) training to ensure the highest level of security and This rigorous process helps guarantee that our team meets all necessary requirements for working in sensitive municipal environments. Adherence to Work Scope and Schedule: Dust Bunnies Inc. is committed to servicing all facilities in strict adherence to the provided work scope and schedule. We ensure that all tasks are completed as specified, maintaining consistenry and reliability in our service delivery. Current Workload and Capacity: Dust Bunnies Inc. currently provides janitorial services to various key facilities for The City of Bozeman, including City Hall, the Professional Building, the Water Treatment Plant, the Water Reclamation Facility, Vehicle Maintenance, City Shops, Bozeman Public Library Fire Department, Laurel Glen Annex, and Bozeman Public Safety Center. Additionally, we partner with Gallatin County, servicing the Detention Center; Judge Guenther Memorial Building Facility Records, Farm Buredu, Law & |ustice Building, and the new Courts Building. Our established staff and operational capacity are well-suited to manage these facilities efficiently, ensuring a seamless transition and continued high-quality service for The City of Bozeman. Customizable Solutions: We offer flexible cleaning schedules and service options tailored to the specific needs of various city facilities, from administrative offices to public spaces- Quality Assurance: Our stringent quality control program, including routine inspections and feedback mechanisms, guarantees consistent service quality and client satisfaction. 264 Coral Drive . Belgrade, MT 5971,4. 406.451..8476. DustBunniesMontana@gmail.com D B 108 Commitment: We are dedicated to reducing our environmental footprint the use of green cleaning products and sustainable practices that align with the city's sustainability obj ectives. Competitive Pricing: Our proposal offers high-quality services at a competitive rate, ensuring cost-efficiency while maintaining our rigorous standards. Benefits to The City of Bozeman Dust Bunnies Inc. provides reliable and high-quality janitorial services that enhance the cleanliness and safety of city facilities. Our established partnership with The City of Bozeman underscores our commitment to delivering exceptional service, contributing to a more pleasant and productive environment for city employees and visitors. Additionally, our focus on sustainability supports the city's environmental goals. We are enthusiastic about the opportunity to continue our partnership with The City of Bozeman and are confident that our proposal meets and exceeds your expectations. For more information or to discuss our proposal furtheC please contact: Heather |acks Dust Bunnies Inc. 406.+51..8476 DustBunniesM ontana@gmail.com Thank you for considering Dust Bunnies Inc. for this important contract. We look to continuing to provide exceptional service to The City of Bozeman. 264 Coral Drive . Belgrade, MT 5971,4 . 406,45L.8476. DustBunniesMontana@gmail.com D B 109 References City Of Bozeman City Wide ]anitorial Services Max Zeigler wziegler@bozeman.net 406.595.8470 2008- Current Gallatin County Law & Justice Campus Nick Borzak 406.582.3185 2009- Current Rocky Mountain Surgical Terminal Cleaning Service Candance Thornton CThornton@RM 406.556.9000 2018- Current 264 Coral Drive . Belgrad , MT 597 1,4 . 406.451,.847 6. DustBunniesMontana@gmail.com C L E A N I N G S E R V I C E'* 110 Barnard Construction General f anitorial Service Scott Lundberg Scott.Lunberg@Barnard-INC.com 406.8L3.0440 2019-Current 264 Coral Drive . Belgrade, MT 59774 . 406.451,.8476 o DustBunniesMontana@gmail.com D B CLEANING S E R V I C E'* 111 QU ESTI ON NAI RE/REQU I REM ENTS FOR JAN ITORIAL SERVICES ln addition to the written proposal that demonstrates the Offerors understanding of the RFB each offeror shall also provide the following information. Brochures and advertisements will not be accepted as a direct response to the questionnaire. A qualifying proposal must address all items. lncomplete proposals may be rejected. Use of additional paper as needed is acceptable. 1) What sets your company apart from the rest? Why should the City of Bozeman utilize the services from your organization? Dust Bunnies Inc. has been servicing Gallatin Valley since 2004. We are extremely responsive to our clients needs and feedback in a timely manner. We answer our phones and respond to emails promptly, creating a lasting repour. The City of Bozeman should secure our services because we've serviced City of Bozeman facilities, since 2008. We've partnered with outside vendors to save the City's funds getting new paper products, soap and bags, and have personally installed many of these dispensers. Dust Bunnies Inc has also help facilitate and decrease costs by coordinating the common receptacles trash bins. We have an extensive list of references from several of our long-term partners. We believe we'd be the right choice to award this bid, based on our long-term loyalty and reliability to The City of Bozeman for the last 16 years. Permanent staff is already in place at the current City Facilities that have been screened and have CflN certificates. 2) Describe your firm's qualifications to provide the service specified in this RFP? Dust Bunnies, Inc. has qualified staff that has gone through training and continuing education in the industry. We have been servicing similar sized buildings and similar work scopes. Two working owners, one CFO, three assistant managers, as well as several leads in other buildings. Our staffed is currently secure. 3) Examples of relevant prior proposals and current customers with similar attributes of the City of Bozeman. Currently we service, Law & Justice Cente4, Guenther Memorial Building Courts Building Farm Bureau, Detention Center; Bozeman Public Safety Cente4 Library, City Hall, Professional Building Water Treatment, Vehicle Maintenance Bus Barn, City Shops, Laurel Glen, Water Reclamation Plant for The City and The County. We have been contracted with Gallatin County since 201L. Since 2008 we have exceeded our job duties and expectations with The City of Bozeman. We will continue this service with any and all changes to this work scope if awarded this contract. 112 4) Numberoffull-time employees: Office-5- Field-23- 5) Has your organization ever failed to complete any work awarded to it? We have NEVER failed to complete any work awarded and have fulfilled every contract. 6) Are there any judgements, suits or claims pending against your firm? Absolutely Not 7) This contract will require a Tier 1 (SSN Address Trace, National Federal Criminal, National Sex Offender, Statewide/County Criminal History) staff background check, does your firm currently use a Tier I background check on your staff Yes-X- No-? Currently all our Background Screenings are being performed by The Gallatin County Sherriff's Department. 8) What will be the mode of communication between onsite staff, shift leads, management and City of Bozeman staff? Both owners are readily available to be reached by phone or email and respond to any requests or feedback by The City of Bozeman, same day response. Communication between leads, management on onsite staff could include a phone call, text or onsite visit to remedy any situation' g) What will be the corrective action procedure to ensure that problems are solved quickly and not repeated? Corrective action will take place the by the next scheduled service for any issues reported by The City of Bozeman. Owners or head management will visit with any employees on how to remedy the situation, and how to avoid or repeat any said issue. 113 10) How will your organization handle shortages in staffing levels as a result of vacations, illness, terminations, etc.? Dust Bunnies, Inc. has two working owners that are available 24f 7, one CFO, three assistant managers, as well as several leads in other buildings that are able to cover illness, vacations, or induced workload in the facility. 11) lnclude a summary of your firms training and injury/illness prevention and safety programs Dust Bunnies, Inc. has ongoing training and safety programs to ensure complete safety for all staff and clients. We have a current safety manual that can be provided upon request. We perform weekly meeting with our management and leads on a variety of subjects from basic training PPE, slip and fall, blood born pathogens, plus others that arise. L2) ls your firm planning to subcontract portions of the work? Yes_X_ No_. lf yes, indicate the name of the subcontractor(s) and the porfion of the work that will be subcontracted in each case. Wow Windows- Brett Barranger (Window ServiceJ Montana Building Maintenance- Brian Gilbert fFloor Care) 114 Building Address Monthly Labor Hours Monthly Cost Annual Cost City Hall 121 N. Rouse Ave 6B $ 3,332.00 $ 3e,984.00 Fire Station 2 575 W, Kagy t,$ 433.33 $ 5,200.00 Alfred Stiff Pro Building 20 E. Olive Street 7Z $ 3,456.00 $ 41,,472.0A Bozeman Public Library 626 E. Main Street 300 $ 14,500.00 $ 174,000.00 City Shops Complex 814 N. Bozeman Avenue 65 $ 3,120.00 $ 37,440.00 Laurel Glenn 5519 Saxon Way 5 $ 295.00 $ 3,540.00 Vehicle Maint Building 1812 N. Rouse Ave 30 $ 1,225.00 $ 14,700.00 Water Treatment (WTP)7024 Sourdough Canyon 30 $ 1,410.00 $ 16,920.00 Water Reclamation (WRF)2245 Spring Hill Road 25 $ 1,225.00 $ 14,700.00 Total 603 $ 28,996.33 $ 347,956.00 Emergency Call out Rate $75.00 Per Hour (2 Hour Minimum) Strip/Wax Bid Per Square Foot.75 Sq.Ft. Dust Bunnies Inc. ff & Heather Jacks DustBunniesMontana@ gmail.com 115 Name and title of {":"t t,ivLu.ln Appendix A NONDISCRIMINATION AND EQUAL PAY AFFIRMATION Dust Bunnies Inc._fname 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 propose/s employees and to all subcontracts. ln addition, Dust Bunnies Inc. (name of entity submitting) hereby affirms it will abide by the Equal Pay Act of 1963 and Section 39-3-1.04, MCA {the Montana Equal Pay Act), and has visited the State of Montana Equal Pay for Equal Work "best practices" website, XEpf"llSqVAigag6.gq!/EestPi"altic , or equivalent "best practices publication and has read the material. Heather lacks- Owner person ,authorized to sign on behalf of submitter 116 EXHIBIT B 117 City of Bozeman Janitorial Services Citywide Job Specifications & Definitions All work required under these specifications shall be in compliance with and meet industry standards. Product manufacturers' instructions shall be followed, and only the proper product will be used for the task. The Owner, at its option, may review the techniques employed by the Contractor, and require alternative methods if determined necessary. Administration • The Contractor will be notified of any errors or omissions when identified by the Owner. The Contractor will remedy the problem in a timely fashion. Periodic meetings, (at least quarterly), will be scheduled to review the performance of the Contractor and to resolve any items of concern to either party. Cleaning times will be established at the beginning of the contract term. • In the event a dispute arises between what is expected by the Owner and what is expected by the Contractor, representatives of both entities shall meet in an attempt to resolve the issue. In instances where an acceptable resolution cannot be attained, the Owner's position shall prevail. • The Contractor will supply the Owner with an annual calendar outlining the approximate dates for the quarterly, semi-annual and annual tasks. Notification of scheduling for monthly, quarterly, semi-annual and annual work items shall be submitted to the Owner at least one (1) week prior to performance of the work. • The Contractor will notify the Owner of any maintenance related issues beyond the scope of the contract. Such things as burned out lamps, vandalism, plumbing related problems or leaks, broken electrical receptacles and other building related problems that might hinder the Contractor from the efficient completion of their work. • The work frequencies shown in Attachment A, Frequency and Work Schedules, are minimum criteria. Additional work in some areas may be required in order to maintain the generally agreed upon standards for all buildings. Supplies and Equipment • The Contractor shall perform all work as specified. Products for Institutional and Commercial use as specified by the manufacturer will be properly stored and handled, following manufacturer's instructions. Contractor acquired chemicals or products stored in any Owner buildings are required to have a Safety Data Sheets (SDS) on site at all times. • The Contractor shall furnish all equipment and labor as specified for completing the work. Equipment shall be suitable for operation from existing electrical sources furnished by Owner. Equipment considered by the Owner to be improper or inadequate for the purpose will be removed from the job and replaced with satisfactory equipment by the Contractor. • For those buildings with specific cleaning requirements, such as green cleaning products, the Contractor agrees to use only approved products. 118 • The following institutional/commercial equipment at a minimum will be deemed acceptable: o Floor scrubber. o Commercial (heavy-duty) vacuum. o Commercial Shop Vacuum. Owner Equipment and Supplies • Owner equipment will not be made available to the Contractor. The Contractor shall provide all of the necessary equipment for performing the work in the Janitorial Agreement. • For those custodial products provided by the Owner, (paper products, hand soap, trash bags, etc.), the Contractor will keep an accurate inventory of products on hand. Contractor shall be responsible for placing restock orders to maintain inventory levels. Owner shall approve all orders placed by Contractor. • It shall be the Contractor’s responsibility to ensure that an adequate supply of these products is readily available in each of the restrooms. • Funds from the coin operated feminine products dispensers will be used to replace required product. Maintenance of Equipment • All tools and equipment used in the janitorial services shall receive proper care and maintenance and be kept in a good operating condition. All equipment shall be equipment with operable approved safety devices. Storage Areas and Traffic Areas • Storage Areas and Traffic Areas – If storage areas are provided to the Contractor by the Owner, the Contractor shall be responsible for the security, orderliness, and cleanliness. These facilities are subject to Owner inspection at all times. The Owner will not be responsible in any way for the Contractors supplies, materials, equipment or personal belongings that may be damaged or lost by fire, theft, accident or otherwise. • All Contractor supplies, equipment and machines shall be kept out of traffic lanes or other areas where they might pose a hazard and shall be secured or removed from the premises at the end of each work period. Contractor’s Log • Contractor shall maintain a daily log for each building showing the following information: o Date o Name of Contractor employee(s). o Tasks completed during shift. o Note any security concerns or abnormal concerns:  Unlocked doors  Unauthorized entrance or exit  Non-employed personnel in the building  Paraphernalia found in buildings. 119 • Items that requiring repair and maintenance by Owners Staff. • Contractor supervisor shall conduct a weekly inspection of the buildings serviced under this contract and shall complete and sign the weekly inspection form provided by the Owner, certifying that the work has been performed in compliance with contract documents. Inspection sheets will be available for inspection at all times. Complaints • Owner will be responsible for written documentation of complaints received regarding the service provided, forwarding any notice of deficiency in a timely manner. Contractor shall be expected to respond to the notice of deficiency at the earliest possible date. Services found to be incomplete, defective or not accomplished as scheduled will be reported to the Contractor for appropriate corrective action. If the existing problem constitutes a hazard or unsafe condition, corrective action shall be immediate, and at no additional expense to the Owner. Otherwise the Contractor shall take corrective action during the next work period. Repetitive nonconformity in any-one area or consistent overall nonconformance to workmanship and standards may result in termination of the contract and/or other punitive action as deemed necessary by the Owner. • Owner at its discretion may reduce payments for unsatisfactory work. Personnel • Owner requires that an accurate listing of personnel serving in each of the buildings, including name, work history and residency for past three (3) years, upon request. Any changes in personnel must be immediately reported to the Owner prior to their performance of any work. The Owner may require use of photo id badges issued by Owner. Training and Safety • Contractor shall be responsible for instructing and training their personnel in safe, proper and specified work methods and procedures. They shall direct, schedule and coordinate all janitorial services and functions to completely accomplish the work as required by contract and as specified herein. The Contractor’s manager shall on occasion or as requested by the Owner, provide inspection and supervision of the work performed. • City & Personal Property of City Personnel: Contractor shall direct their employees against the unauthorized reading and disclosing of materials and documents available in the facilities of the City and against unauthorized use of City and personal property, such as telephones, radios, copy machines, computers, fax machines, calculators etc., which may be in any of the City facilities. The Contractor shall be responsible to see that Contractor’s employees do not disturb papers on desks, tables, or cabinets and do not open desk drawers or cabinets. Found item(s) shall be turned in at the end of each shift to the Contractor’s supervisor. The supervisor shall return the item(s) to the City’s Facility Superintendent within (24) hours. • Telephones: Shall not be used by the Contractor or its employees for personal or business reasons with the following exception(s): to report need of emergency medical aid, fire or need of law enforcement (use ‘8-911’). Any calls to numbers other than those above will be considered a violation of this contract. 120 • Smoking is prohibited in building and only in designated smoking areas if applicable. Modifications • The Owner reserves the right to make additions or deletions to areas being serviced, the types of service and/or the scheduled frequency. The Contractor and Owner will adjust the pricing accordingly. Building Security • It shall be the Contractor’s responsibility to ensure that the buildings and offices are secured while performing their duties. Contractor shall not open doors after scheduled closing times to allow public in buildings. Unnecessary lighting should be turned off to conserve energy. • Contractor shall verify that all exterior doors that they access while performing their duties are secure when not in use. • Owner will strictly control all keys to Owner facilities. Contractor shall keep all keys/fobs on site with the exception of exterior door keys/fobs if authorized. Contractor will be liable for the cost of re-keying in the event a key issued to the Contractor is lost. Lost keys should be immediately be reported to Owner. Emergency Call-Out • In the event of an emergency, the Contractor may be requested to provide immediate assistance in clean-up. This work shall be performed at a cost not greater than one and one-half times the standard hourly rate. Hours of Work • The work under this contract is to be performed during non-business hours, preferably between closing and midnight, unless directed by building Point of Contact. The Contractor shall not disrupt the normal daily business while performing their services. The Contractor is expected to work on scheduled days determined by daily cleaning schedules. • Contractor will have action plan in place to ensure daily cleaning schedules are not impacted in event staff are not available for work. Action plan will be available to Owner upon request. Floor Cleaning and Maintenance Floors will be cleaned and maintained as specified below for each floor care operation. The janitorial services will be accomplished as specified and as required by the frequency schedule and the approved work schedules. • Vacuuming or Sweeping: Carpeting will be vacuumed and "spot cleaned" as required. Sweeping of asphalt tile, vinyl tile, rubber tile or ceramic tile floors must be accomplished in accordance with the frequency schedule. Care must be taken during these processes to ensure that all floor areas are cleaned including, but not limited to, under desks, and that the dirt is simply not transferred to corners. Any furniture, chairs, waste baskets, etc., moved to accommodate these processes will be returned to their original locations. In most buildings high traffic carpet areas are cleaned on a schedule basis. The schedule will be coordinated with the Contractor so that other cleaning activities can still occur. 121 • Damp Mopping: Floors, including stairways and landings will be damp mopped to remove dirt that remains on the floor surface and cannot be removed by sweeping or dust mopping. Damp mopping will not begin until after the floor has been thoroughly swept and loose soil has been removed. If there are any employees or members of the public in the building at the time of damp mopping, the appropriate "Caution, Wet Floor" signs shall be provided by the Contractor and posted until the floor is dry. • Light Waxing: Heavy traffic floor areas (entrances, lobbies, corridors, etc.) and those floors subject to excessive wear, will receive a very light coat or application of wax and be buffed to a uniform sheen at least once a month, and more frequently if determined necessary. Any wax residue on wall bases or unmovable furniture will be removed. This process is to be completed in conjunction with buffing. • Scrubbing: A floor that is satisfactory or acceptably scrubbed is without embedded dirt, cleaning solution, film, stains, marks or water. Floors, except restrooms, will be scrubbed only when they cannot be cleaned satisfactorily by damp mopping. • Wax Removal: Wax removal will be accomplished by applying a stripping or wax removing solution in warm water over the entire floor area exactly as recommended by the manufacturer of the product, to loosen embedded dirt and wax. Residue along floor edges near wall base, immovable furniture, equipment and in corners will be removed manually. • Waxing and Buffing: As soon as the wax removal has been satisfactorily accomplished, the floor will be waxed and buffed. A satisfactory or acceptable floor finish has a thin, even coating of wax. Floor will be clean and bright, under furniture as well as in other areas. Do not apply wax within six inches from walls or legs or bases of unmovable furniture. Dusting and Miscellaneous Cleaning A satisfactory or acceptably dusted surface is free of all dust, dust streaks, lint, cobwebs, dirt, or oily streaks. The dust must be removed completely, not scattered around. • Low Dusting: Includes surfaces less than six feet from the floor, which may include, but may not be limited to, ledges, support braces, window sills, doors, stair rails, chair rails, base boards. Typewriters, computers, business machines, consoles, plotting boards and equipment of similar nature will not be dusted. No desks are to be included in individual offices, except by specific request, but reception areas, common area tables and desks, (such as those in the library or reading areas in various city buildings), will be dusting on the regular schedule. • High Dusting: High dusting includes areas over windows and doors, overhead pipes, exposed ducts, ceilings and walls which are six feet or more from the floor. High dusting will be performed before floors are cleaned and before low dusting is undertaken. • Dusting Heating and Air Conditioning Equipment: All accessible portions of unit heaters, air conditioning grills, convectors, diffusers, fans, ceiling vents and radiators will be dusted or vacuumed. If the grills cannot be cleaned by dusting or vacuuming, they shall be removed and washed. 122 • Entryway and Vestibules: Areas around all exterior entryway doors will be swept free of all gravel, dirt, sand, sticks, and debris for a minimum of 10 feet from the entrance door in order to minimize the amount of material tracked into the building. The Contractor will not be responsible for the removal of snow or ice. Restrooms Acceptably clean restrooms have a clean and bright appearance and no objectionable odors. Disinfectant shall be used on all surfaces and fixtures on a daily basis. • Restroom Floor Cleaning: Restroom floors will be (if concrete, tile, or vinyl) swept and scrubbed once a day. The immediate areas around urinals will be well scrubbed, using an all-purpose detergent with a small amount of disinfectant. This process will result in thorough removal of soiling with no residue left in joints, crevices or corners. • Toilets: When cleaning the bowls, wash and wipe bowl inside and out. If deposits are difficult to remove, use appropriate cleaning methods to remove deposits. Wash seat, top and bottom with detergent solution, and wipe dry. Wipe tank and cover or flush mechanism and hardware with clean, damp cloth. • Urinals: When cleaning the urinals, wash and wipe inside and out. If deposits are difficult to remove, use appropriate cleaner and method to remove deposits. Care must be taken to ensure that the underside of the urinal fixture rim and holes in the bottom and back of all urinals are cleaned. • Sinks: A satisfactory or acceptably clean sink is free of grease, dirt, soap film and streaks. Chrome plated hardware will be cleaned with a clean, damp cloth. • Deodorants and Disinfectants: Various types of disinfectants will be used on toilet bowls, floors, partitions and similar fixtures as necessary. Solid crystal deodorants will not be used in urinals. Proper cleaning and ventilation eliminates the need for deodorants in toilet rooms. • Toilet Room Walls, Partitions and Woodwork: The accumulation of dirt on walls and partitions will not be allowed. A restroom that is acceptably clean shall include clean joints in the tile, and be free of film streaks, deposits and soiling. A disinfectant shall be used as necessary. • Shower Stalls: The accumulation of dirt on floors and walls will not be allowed. A restroom that is acceptably clean shall include clean joints in the tile, and be free of film streaks, deposits and soiling. A disinfectant shall be used as necessary. • Toilet Room Dispensers: Paper towels, toilet tissue and soap dispensers and feminine hygiene dispensers will be checked and refilled daily. An adequate daily supply of materials will be kept available. • Waste Baskets and "Special" Waste Baskets in Women's Restrooms: Waste baskets in all restrooms will be emptied daily into the main receptacle, immediately prior to emptying of the main receptacle into the outside dumpster. 123 Miscellaneous Cleaning and Maintenance • Drinking Fountains: All drinking fountains will be cleaned daily. Appropriate cleaners shall be used when cleaning surfaces to ensure no damage occurs, while removing water spots and stains. • Kitchen/Breakrooms: Pick up trash, empty all waste receptacles, reline receptacle with liner. Clean countertops, tabletops, chairs, and sinks. Stock paper products if needed, spot clean front of cabinets and major appliances. Clean in-side of microwave ovens if present weekly. • Glass Cleaning: All glass will be cleaned with a mild glass cleaning solution. Adjacent trim will be wiped clean with a damp cloth where soiled by spillage or by smears in the glass cleaning operation. • All glass, including mirrors, glass cabinets, display cases, and partitions (glass or plastics) will be cleaned in accordance with the frequency schedule. • All glass windows and doors will be spotted and cleaned in accordance with the frequency schedule. • Spot Cleaning: Walls, wainscoting, doors and trim will be cleaned when necessary to remove small or spot areas of dirt, grease stains or friction marks. Care will be taken to perform spot cleaning without damage to the surface finish and to provide an overall uniform appearance substantially free of cleaning marks after spot cleaning. • Cleaning and Polishing Furniture in Public Areas: All finished surfaces will be cleaned and receive an adequate application of furniture polish to remove dirt, and leave a gloss or sheen. Polish shall not leave surface oily, sticky, or injure varnish and enamel. All furniture, metal, wooden or upholstered, will be free of all wax, scuff marks, water marks and cobwebs. Metal surfaces will be cleaned. Care must be taken not to damage the finished surfaces. • Emptying and Cleaning Waste and Recycling Receptacles: The main waste receptacles and recycle receptacles in common areas will be emptied daily and deposited in collection containers provided for that purpose. Receptacles will be kept free of deposits, dirt streaks, and odors. Individual office recycling and trash receptacle will be emptied by staff members. Contractor will supply trash bags for office trash receptacles. The common office paper recycling and cardboard storage containers will be emptied as needed or at least every other week and deposited in the collection containers provided for that purpose on site. • Blinds: All blinds in compliance with the attached schedule. Acceptably clean blinds will be free of dust, dirt, deposits and film. Paint coatings, plastics and fabrics will not be damaged. • Light Fixtures: All exposed light fixtures and accessible components including lenses, louvers and housings, will be cleaned with a clean damp cloth and appropriate cleaners. Lenses shall be removed once a year to remove dead flies, bugs, etc. and to clean the inside of the lens. Burned out lamps will be documented in the weekly report. • Cleaning Mats: All entrance mats will be vacuumed daily. All dirt and dust deposits underneath the mats will be removed and the mats replaced after cleaning. 124 • Ash Trays/Receptacles: All ash trays/receptacles will be emptied on a weekly basis or more often as need. 125 EXHIBIT C 126 Building: Alfred Stiff Professional Building Location: 20 East Olive Street Size of Building: 23,040 square feet • Lower Floor: o Common Area: 3,283 square foot o Office Space: 940 square foot • Main Floor: o Common Area: 4,560 square foot o Office Space: 1,822 square foot • Second Floor: o Common Area: 3,184 square foot o Office Space: 3,092 square foot Hours of Operation: Monday – Friday, 8:00am to 5:00pm Additional Information: Additional evening meetings scheduled during week. Building shall be cleaned 5 nights per week. This building will require the use of green cleaning products that meet the approval of the green building council. Scope of Service & Frequency Alfred Stiff Professional Building Item Performance Requirements Timeline S M T W T F S 1 Maintain Required Records Daily X X X X X 2 Common Areas/Reception Areas Vacuum carpeted areas, including entry areas and entry mats Daily X X X X X Sweep hard floors including entry areas, and common area stairs Daily X X X X X Wet mop hard floors with cleaner including under mats. This includes any common area stairs. Daily X X X X X Pick up trash, empty all common area waste receptacles, place liner in receptacle, pick up trash Daily X X X X X Empty recycling receptacles, place in large building containers Weekly X Clean entry glass – inside and out, (weather permitting) Daily X X X X X Spot clean interior glass, light switches, doors, door frames, general areas as needed Daily X X X X X Disinfect and polish drinking fountains Daily X X X X X Dust and spot clean glass display cases Weekly 127 Dust and wipe chairs, desks, tables, counters, artwork, reachable partitions Weekly Clean and polish furniture in public areas Monthly Clean all glass furniture and display cases in public areas (horizontal and vertical) Monthly Dust heating, ventilation, air conditioning and exhaust fan grills Monthly Spot clean carpet As Needed High Dusting Monthly 3 Restrooms Sweep, scrub, wet mop, and disinfect floors Daily X X X X X Clean and disinfect toilets and urinals, interior and exterior of units Daily X X X X X Clean and disinfect counters, sinks, faucets, and soap dispenser Daily X X X X X Clean and polish mirrors, dispensers, and chrome fixtures Daily X X X X X Dust and wipe surfaces within reach including partitions, changing stations, and shelving Daily X X X X X Empty waste receptacle(s), place liner in receptacle Daily X X X X X Stock all toilet paper, paper towel, seat covers, feminine hygiene products, and soap dispensers Daily or as needed X X X X X Clean and disinfect shower stall, include walls and floor if applicable Weekly Dust heating, ventilation, air conditioning and exhaust fan grills Monthly 4 Breakroom/Kitchen Sweep, scrub, wet mop, hard floors Daily X X X X X Clean counters, table tops, and sinks Daily X X X X X Wipe clean tables and chairs Daily X X X X X Spot clean front of cabinets and major appliances Daily X X X X X Pick up trash, empty waste receptacle(s), place liner in receptacle(s) Daily X X X X X Vacuum carpeted areas if applicable Daily X X X X X Empty recycling receptacles, place in large building containers, place liner in receptacle Weekly X Stock paper towel and soap dispensers As Needed Low Dusting Weekly 128 Dust heating, ventilation, air conditioning and exhaust fan grills Monthly 5 Office Areas Vacuum in offices, move chairs as needed Weekly Fully clean all interior windows and glass doors Monthly Dust heating, ventilation, air conditioning and exhaust fan grills in offices and open areas Monthly 6 Elevator/Stairways Vacuum carpeted areas if applicable Weekly Sweep, wet mop hard floors with cleaner Daily X X X X X Spot clean and wipe interior/exterior panels Weekly Wipe and disinfect hand railings Daily X X X X X 7 Miscellaneous Empty and clean ash receptacles if applicable Weekly High dusting Monthly Fully clean interior side of all exterior building windows, reachable from the ground or with a hand extension Quarterly Dust Blinds Annual Lights fixtures Annual Other Services The City’s designated contact will coordinate and schedule with Contractor work outside scope of contract. Strip, Scrub, Wax floor surface, three (3) coats of wax Bid per square foot Provide hourly rate for emergency call out 129 Building: City Hall Location: 121 N. Rouse Avenue Size of Building: 22,700 square feet • Main Floor: o Common Area: 4,425 square feet o Office Space: 6,505 square feet • Second Floor: o Common Area: 2,350 square feet o Office Space: 5,305 square feet Hours of Operation: Monday – Friday, 8:00am to 5:00pm Additional Information: Additional evening meetings scheduled many days of the week. Building shall be cleaned 5 nights per week. This building will require the use of green cleaning products that meet the approval of the green building council. Scope of Service & Frequency CITY HALL Item Performance Requirements Timeline S M T W T F S 1 Maintain Required Records Daily X X X X X 2 Common Areas/Reception Areas Vacuum carpeted areas, including entry areas and entry mats Daily X X X X X Sweep hard floors including entry areas, and common area stairs Daily X X X X X Wet mop hard floors with cleaner including under mats. This includes any common area stairs. Daily X X X X X Pick up trash, empty all common area waste receptacles, place liner in receptacle, pick up trash Daily X X X X X Empty recycling receptacles, place in large building containers Weekly X Clean entry glass – inside and out, (weather permitting) Daily X X X X X Spot clean interior glass, light switches, doors, door frames, general areas as needed Daily X X X X X Disinfect and polish drinking fountains Daily X X X X X Dust and spot clean glass display cases Weekly Dust and wipe chairs, desks, tables, counters, artwork, reachable partitions Weekly Clean and polish furniture in public areas Monthly 130 Clean all glass furniture and display cases in public areas (horizontal and vertical) Monthly Dust heating, ventilation, air conditioning and exhaust fan grills Monthly Spot clean carpet As Needed High Dusting Monthly 3 Restrooms Sweep, scrub, wet mop, and disinfect floors Daily X X X X X Clean and disinfect toilets and urinals, interior and exterior of units Daily X X X X X Clean and disinfect counters, sinks, faucets, and soap dispenser Daily X X X X X Clean and polish mirrors, dispensers, and chrome fixtures Daily X X X X X Dust and wipe surfaces within reach including partitions, changing stations, and shelving Daily X X X X X Empty waste receptacle(s), place liner in receptacle Daily X X X X X Stock all toilet paper, paper towel, seat covers, feminine hygiene products, and soap dispensers Daily or as needed X X X X X Dust heating, ventilation, air conditioning and exhaust fan grills Monthly 4 Breakroom/Kitchen Sweep, scrub, wet mop, hard floors Daily X X X X X Clean counters, table tops, and sinks Daily X X X X X Wipe clean tables and chairs Daily X X X X X Spot clean front of cabinets and major appliances Daily X X X X X Pick up trash, empty waste receptacle(s), place liner in receptacle(s) Daily X X X X X Vacuum carpeted areas if applicable Daily X X X X X Empty recycling receptacles, place in large building containers, place liner in receptacle Weekly X Stock paper towel and soap dispensers As Needed Low Dusting Weekly Dust heating, ventilation, air conditioning and exhaust fan grills Monthly 5 Office Areas Vacuum in offices, move chairs as needed Weekly Fully clean all interior windows and glass doors Monthly 131 Dust heating, ventilation, air conditioning and exhaust fan grills in offices and open areas Monthly 6 Elevator/Stairways Vacuum carpeted areas if applicable Weekly Sweep, wet mop hard floors with cleaner Daily X X X X X Spot clean and wipe interior/exterior panels Weekly Wipe and disinfect hand railings Daily X X X X X 7 Miscellaneous Empty and clean ash receptacles if applicable Weekly High dusting Monthly Fully clean interior side of all exterior building windows, reachable from the ground or with a hand extension Quarterly Dust Blinds Annual Lights fixtures Annual Other Services The City’s designated contact will coordinate and schedule with Contractor work outside scope of contract. Strip, Scrub, Wax floor surface, three (3) coats of wax Bid per square foot Provide hourly rate for emergency call out 132 Building: Fire Station #2 Location: 575 W. Kagy Size of Building: • Main Floor: o Common Area: 350 square feet o Police Office Space: 200 square feet Hours of Operation: Building is a 24 hour a day operation 7 days a week. Cleaning hours will be established with the Owner Additional Information: Fire apparatus bays and firefighter dormitory, kitchen, and Fire Department office areas are not included in areas to be cleaned. Building shall be cleaned 1 time per week. This building will require the use of green cleaning products that meet the approval of the green building council. Scope of Service & Frequency Fire Station #1 Item Performance Requirements Timeline S M T W T F S 1 Maintain Required Records Weekly 2 Common Areas/Reception Areas Vacuum carpeted areas, including entry areas and entry mats Weekly Sweep hard floors including entry areas, and common area stairs Weekly Wet mop hard floors with cleaner including under mats. This includes any common area stairs. Weekly Pick up trash, empty all common area waste receptacles, place liner in receptacle, pick up trash Weekly Empty recycling receptacles, place in large building containers Weekly Clean entry glass – inside and out, (weather permitting) Weekly Spot clean interior glass, light switches, doors, door frames, general areas as needed Weekly Disinfect and polish drinking fountains Weekly Dust and spot clean glass display cases Weekly Dust and wipe chairs, desks, tables, counters, artwork, reachable partitions Weekly Clean and polish furniture in public areas Monthly Clean all glass furniture and display cases in public areas (horizontal and vertical) Monthly 133 Dust heating, ventilation, air conditioning and exhaust fan grills Monthly Spot clean carpet As Needed High Dusting Monthly 3 Restrooms Sweep, scrub, wet mop, and disinfect floors Weekly Clean and disinfect toilets and urinals, interior and exterior of units Weekly Clean and disinfect counters, sinks, faucets, and soap dispenser Weekly Clean and polish mirrors, dispensers, and chrome fixtures Weekly Dust and wipe surfaces within reach including partitions, changing stations, and shelving Weekly Empty waste receptacle(s), place liner in receptacle Weekly Stock all toilet paper, paper towel, seat covers, feminine hygiene products, and soap dispensers Weekly Dust heating, ventilation, air conditioning and exhaust fan grills Monthly 5 Office Areas Vacuum in offices, move chairs as needed Weekly Fully clean all interior windows and glass doors Monthly Dust heating, ventilation, air conditioning and exhaust fan grills in offices and open areas Monthly 6 Miscellaneous Empty and clean ash receptacles if applicable Weekly High dusting Monthly Dust Blinds Annual Lights fixtures Annual Other Services The City’s designated contact will coordinate and schedule with Contractor work outside scope of contract. Strip, Scrub, Wax floor surface, three (3) coats of wax Bid per square foot Provide hourly rate for emergency call out 134 Building: Laurel Glenn Location: 5519 Saxon Way Size of Building: 3,460 square feet Building is mostly used for vehicle and equipment storage but there is a restroom and meeting area for staff who are working on the West end of town so they do not to come back to City Shops Complex. Staff will be there at various times of the day and various days of week. Scope of Service & Frequency Laurel Glenn Annex – Bi-Monthly (Wednesday & Weekends) Item Scope Frequency 1 Maintain Required Records Bi-Monthly 2 Common Area Clean deep sink outside breakroom area Bi-Monthly 3 Restrooms Sweep, scrub, wet mop, and disinfect floors Bi-Monthly Clean and disinfect toilets and urinals, interior and exterior of units Bi-Monthly Clean and disinfect counters, sinks, faucets, and soap dispenser Bi-Monthly Empty waste receptacle(s), place trash liner in receptacle Bi-Monthly Stock all toilet paper, paper towel, seat covers, feminine hygiene products, and soap dispensers Bi-Monthly 4 Breakroom/Kitchen Sweep, scrub, wet mop, hard floors Bi-Monthly Clean counters, table tops, and sinks Bi-Monthly Wipe clean tables and chairs Bi-Monthly Spot clean front of cabinets and major appliances Bi-Monthly Pick up trash, empty waste receptacle(s), place liner in receptacle(s) Bi-Monthly Empty recycling receptacles, place in large building containers, place liner in receptacle Bi-Monthly Stock paper towel and soap dispensers Bi-Monthly Clean door surfaces Bi-Monthly Low Dusting Monthly Dust heating, ventilation, air conditioning and exhaust fan grills Monthly 5 Miscellaneous High dusting Annual Lights fixtures Annual Strip & wax VCT tile surfaces, one sealer coat, three finish coats Annual Additional Services 135 Building: Library Location: 626 East Main Street Size of Building: 52,000 square feet • Lower Floor: o Common Area: 216 square foot o Office Space: • Main Floor: o Common Area: 22,625 square foot o Office Space: 782 square foot • Second Floor: o Common Area: 15,341 square foot o Office Space: 1,507 square foot Hours of Operation: Monday - Thursday 10:00am to 8:00pm Friday 10:00am to 6:00pm Saturday 10:00am to 5:00pm Sunday 1:00pm to 5:00pm Additional Information: Additional evening events take place in main parts of library after closing hours that need to be accommodated. Extra security measures will be in place due to presence of a police office and confidential information. Building shall be cleaned 7 nights per week. This building will require the use of green cleaning products that meet the approval of the green building council. Scope of Service & Frequency Library Item Performance Requirements Timeline S M T W T F S 1 Maintain Required Records Daily X X X X X X X 2 Common Areas/Reception Areas Vacuum carpeted areas, including entry areas and entry mats Daily X X X X X X X Sweep hard floors including entry areas, and common area stairs Daily X X X X X X X Wet mop hard floors with cleaner including under mats. This includes any common area stairs. Daily X X X X X X X Pick up trash, empty all common area waste receptacles, place liner in receptacle, pick up trash Daily X X X X X X X Empty recycling receptacles, place in large building containers Weekly X Clean entry glass – inside and out, (weather permitting) Daily X X X X X X X 136 Spot clean interior glass, light switches, doors, door frames, general areas as needed Daily X X X X X X X Disinfect and polish drinking fountains Daily X X X X X X X Dust and spot clean glass display cases Weekly Dust and wipe chairs, desks, tables, counters, artwork, reachable partitions Weekly Clean and polish furniture in public areas Monthly Clean all glass furniture and display cases in public areas (horizontal and vertical) Monthly Dust heating, ventilation, air conditioning and exhaust fan grills Monthly Spot clean carpet As Needed High Dusting Monthly 3 Restrooms Sweep, scrub, wet mop, and disinfect floors Daily X X X X X X X Clean and disinfect toilets and urinals, interior and exterior of units Daily X X X X X X X Clean and disinfect counters, sinks, faucets, and soap dispenser Daily X X X X X X X Clean and polish mirrors, dispensers, and chrome fixtures Daily X X X X X X X Dust and wipe surfaces within reach including partitions, changing stations, and shelving Daily X X X X X X X Empty waste receptacle(s), place liner in receptacle Daily X X X X X X X Stock all toilet paper, paper towel, seat covers, feminine hygiene products, and soap dispensers Daily or as needed X X X X X X X Clean and disinfect shower stall, include walls and floor if applicable Weekly Dust heating, ventilation, air conditioning and exhaust fan grills Monthly 4 Breakroom/Kitchen Sweep, scrub, wet mop, hard floors Daily X X X X X X X Clean counters, table tops, and sinks Daily X X X X X X X Wipe clean tables and chairs Daily X X X X X X X Spot clean front of cabinets and major appliances Daily X X X X X X X Pick up trash, empty waste receptacle(s), place liner in receptacle(s) Daily X X X X X X X Vacuum carpeted areas if applicable Daily X X X X X X X 137 Empty recycling receptacles, place in large building containers, place liner in receptacle Weekly X Stock paper towel and soap dispensers As Needed Low Dusting Weekly Dust heating, ventilation, air conditioning and exhaust fan grills Monthly 5 Office Areas Vacuum in offices, move chairs as needed Weekly Fully clean all interior windows and glass doors Monthly Dust heating, ventilation, air conditioning and exhaust fan grills in offices and open areas Monthly 6 Elevator/Stairways Vacuum carpeted areas if applicable Weekly Sweep, wet mop hard floors with cleaner Daily X X X X X X X Spot clean and wipe interior/exterior panels Weekly Wipe and disinfect hand railings Daily X X X X X X X 7 Miscellaneous Empty and clean ash receptacles if applicable Weekly High dusting Monthly Fully clean interior side of all exterior building windows, reachable from the ground or with a hand extension Quarterly Dust Blinds Annual Lights fixtures Annual Other Services The City’s designated contact will coordinate and schedule with Contractor work outside scope of contract. Strip, Scrub, Wax floor surface, three (3) coats of wax Bid per square foot Provide hourly rate for emergency call out 138 Building: Shops Complex Location: 814 N. Bozeman Avenue Size of Building: 14,889 square feet Common Area: 2,970 square feet Office Space: 3,390 square feet Hours of Operation: 6:00am to 6:00pm for operation with weekend, late night, and early morning presence depending on the time of year and Public Works related activities. Additional Information: Additional evening meetings scheduled some days of the week. Main building shall be cleaned 5 nights per week. This building will require the use of green cleaning products that meet the approval of the green building council. South Shop and Sign and Signal Office Building will be cleaned 2 times per week. Scope of Service & Frequency Shops Complex Item Performance Requirements Timeline S M T W T F S 1 Maintain Required Records Daily X X X X X 2 Common Areas/Reception Areas Vacuum carpeted areas, including entry areas and entry mats Daily X X X X X Sweep hard floors including entry areas, and common area stairs Daily X X X X X Wet mop hard floors with cleaner including under mats. This includes any common area stairs. Daily X X X X X Pick up trash, empty all common area waste receptacles, place liner in receptacle, pick up trash Daily X X X X X Empty recycling receptacles, place in large building containers Weekly X Clean entry glass – inside and out, (weather permitting) Daily X X X X X Spot clean interior glass, light switches, doors, door frames, general areas as needed Daily X X X X X Disinfect and polish drinking fountains Daily X X X X X Dust and spot clean glass display cases Weekly Dust and wipe chairs, desks, tables, counters, artwork, reachable partitions Weekly Clean and polish furniture in public areas Monthly Clean all glass furniture and display cases in public areas (horizontal and vertical) Monthly 139 Dust heating, ventilation, air conditioning and exhaust fan grills Monthly Spot clean carpet As Needed High Dusting Monthly 3 Restrooms Sweep, scrub, wet mop, and disinfect floors Daily X X X X X Clean and disinfect toilets and urinals, interior and exterior of units Daily X X X X X Clean and disinfect counters, sinks, faucets, and soap dispenser Daily X X X X X Clean and polish mirrors, dispensers, and chrome fixtures Daily X X X X X Dust and wipe surfaces within reach including partitions, changing stations, and shelving Daily X X X X X Empty waste receptacle(s), place liner in receptacle Daily X X X X X Stock all toilet paper, paper towel, seat covers, feminine hygiene products, and soap dispensers Daily or as needed X X X X X Clean and disinfect shower stall, include walls and floor if applicable Weekly Dust heating, ventilation, air conditioning and exhaust fan grills Monthly 4 Breakroom/Kitchen Sweep, scrub, wet mop, hard floors Daily X X X X X Clean counters, table tops, and sinks Daily X X X X X Wipe clean tables and chairs Daily X X X X X Spot clean front of cabinets and major appliances Daily X X X X X Pick up trash, empty waste receptacle(s), place liner in receptacle(s) Daily X X X X X Vacuum carpeted areas if applicable Daily X X X X X Empty recycling receptacles, place in large building containers, place liner in receptacle Weekly X Stock paper towel and soap dispensers As Needed Low Dusting Weekly Dust heating, ventilation, air conditioning and exhaust fan grills Monthly 5 Office Areas Vacuum in offices, move chairs as needed Weekly Fully clean all interior windows and glass doors Monthly 140 Dust heating, ventilation, air conditioning and exhaust fan grills in offices and open areas Monthly 6 Miscellaneous Empty and clean ash receptacles if applicable Weekly High dusting Monthly Fully clean interior side of all exterior building windows, reachable from the ground or with a hand extension Quarterly Dust Blinds Annual Lights fixtures Annual Wax & Buff Flooring, Training Room, Breakroom, and Common Areas Quarterly Wax removal, Wax and Buff (3) Coats Annual Other Services The City’s designated contact will coordinate and schedule with Contractor work outside scope of contract. 141 Building:  Vehicle Maintenance/HRDC Barn  Location:  1812 N. Rouse Avenue  Size of Building:   Main Floor:  o Common Area: 1,425 square feet  o Locker Rooms: 180 square feet    Hours of Operation:  6:00am to 6:00pm up to 7 days a week.      Additional Information:  Garage bays are not included in areas to be cleaned.    Work will be done according to the agreed upon schedule with the Department representatives.  Building  shall be cleaned Tuesdays, Thursdays, and Sundays.      Scope of Service & Frequency    Vehicle Maintenance/HRDC Barn  Item Performance Requirements Timeline S M T W T F S  1 Maintain Required Records 3x Week X  X  X     2 Common Areas/Reception Areas            Sweep hard floors including entry areas,  and common area stairs  3x Week X  X  X      Wet mop hard floors with cleaner  including under mats.  This includes any  common area stairs.  3x Week X  X  X      Clean entry glass – inside and out,  (weather permitting)  3x Week X  X  X      Pick up trash, empty all common area  waste receptacles, place liner in  receptacle, pick up trash  3x Week X  X  X      Empty recycling receptacles, place in large  building containers  Weekly        X     3 Restrooms            Sweep, scrub, wet mop, and disinfect  floors  3x Week X  X  X      Clean and disinfect toilets and urinals,  interior and exterior of units  3x Week X  X  X      Clean and disinfect counters, sinks,  faucets, and soap dispenser  3x Week X  X  X      Clean and polish mirrors, dispensers, and  chrome fixtures  3x Week X  X  X      Dust and wipe surfaces within reach  including partitions, changing stations,  and shelving  3x Week X  X  X      Empty waste receptacle(s), place liner in  receptacle  3x Week X  X  X     142  Stock all toilet paper, paper towel, seat  covers, feminine hygiene products, and  soap dispensers  Daily or as  needed  X  X  X     4 Locker Room            Sweep, scrub, wet mop, and disinfect  floors  3x Week X  X  X      Clean and disinfect shower stall, include  walls and floor if applicable   Weekly         5 Breakroom/Kitchen            Sweep, scrub, wet mop, hard floors 3x Week X  X  X      Clean counters, table tops, and sinks 3x Week X  X  X      Wipe clean tables and chairs 3x Week X  X  X      Spot clean front of cabinets and major  appliances  3x Week X  X  X      Pick up trash, empty waste receptacle(s),  place liner in receptacle(s)  3x Week X  X  X      Vacuum carpeted areas if applicable 3x Week X  X  X      Empty recycling receptacles, place in large  building containers, place liner in  receptacle  Weekly      X      Stock paper towel and soap dispensers As  Needed            Other Services  The City’s designated contact will coordinate and schedule with Contractor work outside scope of  contract.    Strip, Scrub, Wax floor surface, three (3) coats of wax Bid per square foot  Provide hourly rate for emergency call out   143 Building: Water Reclamation Facility Location: 2245 Spring Hill Road Size of Building: • Main Floor: o Common Area: 4200 sq ft o Office Space: 809 sq ft Hours of Operation: Building is a 24 hour a day operation 7 days a week. Building shall be cleaned on Tuesday and Thursday. Cleaning hours will be established with Owner. Work will be done according to the agreed upon schedule with the Department representatives. Additional Information: Scope of Service & Frequency Water Reclamation Facility – 2 Days per Week (Tuesday and Thursday) Item Scope Frequency 1 Maintain Required Records Tuesday/Thursday Sweep and wet mop all ceramic and VTC flooring Tuesday/Thursday Vacuum all carpeted areas, in offices, move chairs as needed Tuesday/Thursday Empty trash receptacles in common areas, offices, lab, and lab area waste receptacle, place liner in receptacle Tuesday/Thursday 2 Restrooms Sweep, scrub, wet mop, and disinfect floors Tuesday/Thursday Clean and disinfect toilets and urinals, interior and exterior of units Tuesday/Thursday Clean and disinfect counters, sinks, faucets, and soap dispenser Tuesday/Thursday Empty waste receptacle(s), place trash liner in receptacle Tuesday/Thursday Stock all toilet paper, paper towel, seat covers, feminine hygiene products, and soap dispensers 3 Breakroom/Kitchen/Conference Room Sweep, scrub, wet mop, hard floors Tuesday/Thursday Clean counters, table tops, and sinks Tuesday/Thursday Wipe clean tables and chairs Tuesday/Thursday Spot clean front of cabinets, major appliances, and glass surfaces Tuesday/Thursday Pick up trash, empty waste receptacle(s), place liner in receptacle(s) Tuesday/Thursday Stock paper towel and soap dispensers Tuesday/Thursday 4 Miscellaneous Buff VCT tile surfaces Quarterly Strip & wax VCT tile surfaces, one sealer coat, three finish coats Annual Additional Services • Professional carpet cleaning, prices per square foot on request • Clean all window surfaces inside/outside, priced per building on request • Strip and wax VCT surfaces, one (1) sealer coat, (3) finish coats, priced per square foot on request • *DO NOT clean lab countertops* 144 Building: Water Treatment Plant Location: 7024 Sourdough Canyon Road Size of Building: • Main Floor: o Administration Area: 3,775 o Lab Space: 3,730 Hours of Operation: Building is a 16 hour a day operation 7 days a week. Building shall be cleaned 2 nights per week on Wednesday and weekends. Cleaning hours will be 7:00am to 8:00pm, contractor must arrive no later than 7:00pm on scheduled work days. Work will be done according to the agreed upon schedule with the Department representatives. Additional Information: Scope of Service & Frequency Water Treatment Plant – 2 Days per Week (Wednesday & Weekends) Item Scope Frequency 1. Maintain Required Records Wednesday/Weekend Sweep and wet mop floors in open common areas, offices, lab, control room, and conference room Weekend Vacuum in entry ways, 3 each Weekend Empty waste receptacles common areas, offices, lab, and lab area waste receptacle, place liner in receptacle Weekend 2 Restrooms Sweep, scrub, wet mop, and disinfect floors Wednesday/Weekend Clean and disinfect toilets and urinals, interior and exterior of units Wednesday/Weekend Clean and disinfect counters, sinks, faucets, and soap dispenser Wednesday/Weekend Empty waste receptacle(s), place trash liner in receptacle Wednesday/Weekend Stock all toilet paper, paper towel, seat covers, feminine hygiene products, and soap dispensers As Needed 3 Breakroom/Kitchen/Offices/Control Room Sweep and wet mop hard floors Weekend Empty waste receptacle(s), place liner in receptacle Weekend 4 Conference Room/Control Room/Breakroom Strip & wax VCT tile surfaces, one sealer coat, three finish coats Annual Additional Services • Clean all window surfaces inside/outside, priced per building on request 145 Page 1 of 13 REQUEST FOR PROPOSALS (RFP) JANITORIAL SERVICES CITYWIDE 2025 - 2029 CITY OF BOZEMAN Bozeman, MT City of Bozeman PO Box 1230 Bozeman, MT 59771-1230 AUGUST 2024 146 NOTICE IS HEREBY given that the City of Bozeman (City) is seeking proposals from firms to provide professional janitorial contracting services for nine municipal buildings across the City of Bozeman for a five year term covering years 2025 – 2029. 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 September 12, 2024 at 2:00 MDT. 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: procurement@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. 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. 147 Any administrative questions regarding proposal procedures should be directed to: Mike Maas, City Clerk (406) 582-2321, procurement@bozeman.net. Questions relating to the RFP should be directed to: Max Ziegler, Facilities Assistant Superintendent, (406) 582-2439, wziegler@bozeman.net. DATED at Bozeman, Montana, this August 17, 2024. Mike Maas City Clerk City of Bozeman For publication on: Saturday, August 17, 2024 Saturday, August 31, 2024 148 I. INTRODUCTION The City of Bozeman (Owner), is seeking proposals from qualified firms to provide professional janitorial contracting services for nine municipal buildings across the City of Bozeman. The Owner intends to enter into a contract with the selected firm that will include the provision of complete janitorial services for the following buildings: • Alfred Stiff Professional Building – 20 E. Olive St. • Bozeman City Hall – 121 N Rouse Ave. • Bozeman City Shops Complex – 814 N Rouse Ave. • Bozeman Public Library – 626 E Maint St. • Fire Station 2 – 575 W. Kagy Ave. • Laural Glenn Shops – 5519 Saxon Way • Vehicle Maintenance Building – 1812 N Rouse Ave. • Water Reclamation Facility – 2245 Spring Hill Rd. • Water Treatment Plant – 7024 Sourdough Canyon Rd. The service provider must be reputable, bonded and capable of furnishing required materials, equipment, tools, incidentals, labor and supervision necessary to provide superior interior cleaning services for all City of Bozeman facilities defined in this RFP document. 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 Facilities Department manages a diverse portfolio of municipal properties, including emergency services buildings, public administration offices, libraries, workshops and water/sewer treatment facilitites. To provide a consistent level of high quality service and maintain a clean and safe environment for the public and City staff, the Facilities Department contracts with a private janitorial services contractor. The Bozeman Facilities Department is seeking proposals from Janitorial Services contractors to provide janitorial services for nine City buildings for a Five (5) year term starting January 1, 149 2025. It is the City’s preference to contract with a single entity capable of meeting the scope of work and specifications provided in this RFP, and with capacity to support additional buildings which may be constructed within the contract term. III. SCOPE OF SERVICES The work covered in this specification includes furnishing all labor, equipment, some supplies, managing inventory, and supervision necessary for a complete janitorial service. It shall be understood that in addition to these services, all task incidental to cleaning functions not specifically listed but normally included in general janitorial practices will be provided. The City will consider innovative solutions and alternatives that will best accomplish the desired outcome The Custodial/Janitorial Services contractor is responsible for the cleanliness and sanitation of each building. The description of each service area is to be used as a guideline for the Custodial/Janitorial Services contractor. The description does not attempt to describe every detail or feature of the facility that is to be maintained by the Custodial/Janitorial Services contractor. Specifications for Janitorial Services, administrative instructions and definitions are included in this RFP as Appendix B. Job Specifications for each building are included as Appendix C. The Job specifications include overall scope, detailed facility information, and frequencies of service The intent of this specification is to define the janitorial services requirements for various facilities owned by and operated by the City of Bozeman included in this contract. On the Job Specification Pages for the overall scope, definitions, detailed facility information, and frequency are listed in APPENDICES B & C. From that information and a mandatory job walk/inspection of each facility, the potential contractor will provide the Monthly Labor Hours and the Cost per Facility. The offeror will then provide a grand total for all Monthly Labor Hours and Costs, Monthly Cost, and Annual Costs for all facilities combined on the Pricing Proposal Form listed in APPENDIX E, for all Sites. All measurements provided are approximate and should be confirmed by the offeror. Contractor awarded janitorial services contract will be required to enter into a City of Bozeman Professional Services Agreement (PSA). A sample of the PSA is listed in APPENDIX G. IV. PROPOSAL REQUIREMENTS 150 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 Please provide a concise executive summary of your proposal. b) Firm / Individual Profile Provide a brief profile of the submitting firm and key individuals assigned to this project. c) Qualifications and Related Experience with Projects of Similar Scope Describe your firms qualifications to provide the services specified in the Scope of Services, as well as the firms experience in providing services similar to the Scope of Services. d) Description of Proposed Solution and Schedule Please detail how your firm will provide the services stated in the Scope of Services, such as staffing plans, practices, management methods, and contractor provided equipment. Provide a proposed schedule for servicing the buildings specified in the Scope of Services. e) Present and Projected Workloads Identify firms current workload and capacity to take on the workload for services specified in the Scope of Services. f) Current and Recent work for the City of Bozeman Please list any current or recently performed work for the City of Bozeman. g) References Provide three (3) professional references, including: A. Name of Company or Organization B. Contact Name, Title, Phone Number, Email Adress C. Project start and completion date D. Brief summary of work performed for reference h) Questionnaire 151 Please complete and submit the Questionnaire for Janitorial Services (Appendix D). i) Price Proposal Please complete and submit Pricing Proposal Form (Appendix E). j) Affirmation of Nondiscrimination (see Appendix 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, August 17, 2024 Saturday, August 31, 2024 Pre-Proposal Conference and Job Site Walk Wednesday, September 4 Deadline for receipt of proposals Thursday, September 12, 2024 Evaluation of proposals Friday, September 20, 2024 Interviews (if necessary) and Selection of consultants Thursday, September 26, 2024 Pre-Proposal Conference and Job Site Walk: A MANDATORY pre-proposal conference and job site walk will be held on Wednesday, September 6, 9:00am, in the City Hall Commission Room 121 N. Rouse Ave, Bozeman, MT 59715. A pre-proposal meeting is held to allow for questions and clarifications concerning the City’s RFP process and subsequent contract award. In order to provide comprehensive answers and minimize response time, Offeror(s) will be asked to submit questions in writing prior to the meeting. Question can be e-mailed to wziegler@bozeman.net. 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 (procurement@bozeman.net) by September 12, 2024 at 2:00 PM MDT. 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 152 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 12:00 PM MDT on September 6, 2024. VII. CONTACT INFORMATION Any administrative questions regarding proposal procedures should be directed to: Mike Maas, City Clerk, (406) 582-2321, procurement@bozeman.net Questions relating to scope of services should be directed to: Max Ziegler, Facilities Assistant Superintendent, wziegler@bozeman.net, 406-582-2439 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 based on the following criteria: • [5 points] Executive Summary • [5 points] Firm / Individual Profile • [10 points] Qualifications and Related Experience with Projects of Similar Scope • [10 points] Description of Proposed Solution and Schedule 153 • [5 points] Present and Projected Workloads • [10 points] Current and Recent work for the City of Bozeman • [5 points] References • [20 points] Janitorial Services Questionnaire • [30 points] Price Proposal 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 Appendix G. 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. 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 154 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 Appendix G 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 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 155 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 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: Appendix A: Non-Discrimination Affirmation Appendix B: Janitorial Services Job Specifications & Definitions Appendix C: Building Specific Job Specifications Appendix D: Questionnaire for Janitorial Services 156 Appendix E: Pricing Proposal Form Appendix F: Submittal Form Appendix G: Form of Professional Services Agreement END OF RFP 157 Appendix 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 158 APPENDIX B 159 City of Bozeman Janitorial Services Citywide Job Specifications & Definitions All work required under these specifications shall be in compliance with and meet industry standards. Product manufacturers' instructions shall be followed, and only the proper product will be used for the task. The Owner, at its option, may review the techniques employed by the Contractor, and require alternative methods if determined necessary. Administration • The Contractor will be notified of any errors or omissions when identified by the Owner. The Contractor will remedy the problem in a timely fashion. Periodic meetings, (at least quarterly), will be scheduled to review the performance of the Contractor and to resolve any items of concern to either party. Cleaning times will be established at the beginning of the contract term. • In the event a dispute arises between what is expected by the Owner and what is expected by the Contractor, representatives of both entities shall meet in an attempt to resolve the issue. In instances where an acceptable resolution cannot be attained, the Owner's position shall prevail. • The Contractor will supply the Owner with an annual calendar outlining the approximate dates for the quarterly, semi-annual and annual tasks. Notification of scheduling for monthly, quarterly, semi-annual and annual work items shall be submitted to the Owner at least one (1) week prior to performance of the work. • The Contractor will notify the Owner of any maintenance related issues beyond the scope of the contract. Such things as burned out lamps, vandalism, plumbing related problems or leaks, broken electrical receptacles and other building related problems that might hinder the Contractor from the efficient completion of their work. • The work frequencies shown in Attachment A, Frequency and Work Schedules, are minimum criteria. Additional work in some areas may be required in order to maintain the generally agreed upon standards for all buildings. Supplies and Equipment • The Contractor shall perform all work as specified. Products for Institutional and Commercial use as specified by the manufacturer will be properly stored and handled, following manufacturer's instructions. Contractor acquired chemicals or products stored in any Owner buildings are required to have a Safety Data Sheets (SDS) on site at all times. • The Contractor shall furnish all equipment and labor as specified for completing the work. Equipment shall be suitable for operation from existing electrical sources furnished by Owner. Equipment considered by the Owner to be improper or inadequate for the purpose will be removed from the job and replaced with satisfactory equipment by the Contractor. • For those buildings with specific cleaning requirements, such as green cleaning products, the Contractor agrees to use only approved products. 160 • The following institutional/commercial equipment at a minimum will be deemed acceptable: o Floor scrubber. o Commercial (heavy-duty) vacuum. o Commercial Shop Vacuum. Owner Equipment and Supplies • Owner equipment will not be made available to the Contractor. The Contractor shall provide all of the necessary equipment for performing the work in the Janitorial Agreement. • For those custodial products provided by the Owner, (paper products, hand soap, trash bags, etc.), the Contractor will keep an accurate inventory of products on hand. Contractor shall be responsible for placing restock orders to maintain inventory levels. Owner shall approve all orders placed by Contractor. • It shall be the Contractor’s responsibility to ensure that an adequate supply of these products is readily available in each of the restrooms. • Funds from the coin operated feminine products dispensers will be used to replace required product. Maintenance of Equipment • All tools and equipment used in the janitorial services shall receive proper care and maintenance and be kept in a good operating condition. All equipment shall be equipment with operable approved safety devices. Storage Areas and Traffic Areas • Storage Areas and Traffic Areas – If storage areas are provided to the Contractor by the Owner, the Contractor shall be responsible for the security, orderliness, and cleanliness. These facilities are subject to Owner inspection at all times. The Owner will not be responsible in any way for the Contractors supplies, materials, equipment or personal belongings that may be damaged or lost by fire, theft, accident or otherwise. • All Contractor supplies, equipment and machines shall be kept out of traffic lanes or other areas where they might pose a hazard and shall be secured or removed from the premises at the end of each work period. Contractor’s Log • Contractor shall maintain a daily log for each building showing the following information: o Date o Name of Contractor employee(s). o Tasks completed during shift. o Note any security concerns or abnormal concerns:  Unlocked doors  Unauthorized entrance or exit  Non-employed personnel in the building  Paraphernalia found in buildings. 161 • Items that requiring repair and maintenance by Owners Staff. • Contractor supervisor shall conduct a weekly inspection of the buildings serviced under this contract and shall complete and sign the weekly inspection form provided by the Owner, certifying that the work has been performed in compliance with contract documents. Inspection sheets will be available for inspection at all times. Complaints • Owner will be responsible for written documentation of complaints received regarding the service provided, forwarding any notice of deficiency in a timely manner. Contractor shall be expected to respond to the notice of deficiency at the earliest possible date. Services found to be incomplete, defective or not accomplished as scheduled will be reported to the Contractor for appropriate corrective action. If the existing problem constitutes a hazard or unsafe condition, corrective action shall be immediate, and at no additional expense to the Owner. Otherwise the Contractor shall take corrective action during the next work period. Repetitive nonconformity in any-one area or consistent overall nonconformance to workmanship and standards may result in termination of the contract and/or other punitive action as deemed necessary by the Owner. • Owner at its discretion may reduce payments for unsatisfactory work. Personnel • Owner requires that an accurate listing of personnel serving in each of the buildings, including name, work history and residency for past three (3) years, upon request. Any changes in personnel must be immediately reported to the Owner prior to their performance of any work. The Owner may require use of photo id badges issued by Owner. Training and Safety • Contractor shall be responsible for instructing and training their personnel in safe, proper and specified work methods and procedures. They shall direct, schedule and coordinate all janitorial services and functions to completely accomplish the work as required by contract and as specified herein. The Contractor’s manager shall on occasion or as requested by the Owner, provide inspection and supervision of the work performed. • City & Personal Property of City Personnel: Contractor shall direct their employees against the unauthorized reading and disclosing of materials and documents available in the facilities of the City and against unauthorized use of City and personal property, such as telephones, radios, copy machines, computers, fax machines, calculators etc., which may be in any of the City facilities. The Contractor shall be responsible to see that Contractor’s employees do not disturb papers on desks, tables, or cabinets and do not open desk drawers or cabinets. Found item(s) shall be turned in at the end of each shift to the Contractor’s supervisor. The supervisor shall return the item(s) to the City’s Facility Superintendent within (24) hours. • Telephones: Shall not be used by the Contractor or its employees for personal or business reasons with the following exception(s): to report need of emergency medical aid, fire or need of law enforcement (use ‘8-911’). Any calls to numbers other than those above will be considered a violation of this contract. 162 • Smoking is prohibited in building and only in designated smoking areas if applicable. Modifications • The Owner reserves the right to make additions or deletions to areas being serviced, the types of service and/or the scheduled frequency. The Contractor and Owner will adjust the pricing accordingly. Building Security • It shall be the Contractor’s responsibility to ensure that the buildings and offices are secured while performing their duties. Contractor shall not open doors after scheduled closing times to allow public in buildings. Unnecessary lighting should be turned off to conserve energy. • Contractor shall verify that all exterior doors that they access while performing their duties are secure when not in use. • Owner will strictly control all keys to Owner facilities. Contractor shall keep all keys/fobs on site with the exception of exterior door keys/fobs if authorized. Contractor will be liable for the cost of re-keying in the event a key issued to the Contractor is lost. Lost keys should be immediately be reported to Owner. Emergency Call-Out • In the event of an emergency, the Contractor may be requested to provide immediate assistance in clean-up. This work shall be performed at a cost not greater than one and one-half times the standard hourly rate. Hours of Work • The work under this contract is to be performed during non-business hours, preferably between closing and midnight, unless directed by building Point of Contact. The Contractor shall not disrupt the normal daily business while performing their services. The Contractor is expected to work on scheduled days determined by daily cleaning schedules. • Contractor will have action plan in place to ensure daily cleaning schedules are not impacted in event staff are not available for work. Action plan will be available to Owner upon request. Floor Cleaning and Maintenance Floors will be cleaned and maintained as specified below for each floor care operation. The janitorial services will be accomplished as specified and as required by the frequency schedule and the approved work schedules. • Vacuuming or Sweeping: Carpeting will be vacuumed and "spot cleaned" as required. Sweeping of asphalt tile, vinyl tile, rubber tile or ceramic tile floors must be accomplished in accordance with the frequency schedule. Care must be taken during these processes to ensure that all floor areas are cleaned including, but not limited to, under desks, and that the dirt is simply not transferred to corners. Any furniture, chairs, waste baskets, etc., moved to accommodate these processes will be returned to their original locations. In most buildings high traffic carpet areas are cleaned on a schedule basis. The schedule will be coordinated with the Contractor so that other cleaning activities can still occur. 163 • Damp Mopping: Floors, including stairways and landings will be damp mopped to remove dirt that remains on the floor surface and cannot be removed by sweeping or dust mopping. Damp mopping will not begin until after the floor has been thoroughly swept and loose soil has been removed. If there are any employees or members of the public in the building at the time of damp mopping, the appropriate "Caution, Wet Floor" signs shall be provided by the Contractor and posted until the floor is dry. • Light Waxing: Heavy traffic floor areas (entrances, lobbies, corridors, etc.) and those floors subject to excessive wear, will receive a very light coat or application of wax and be buffed to a uniform sheen at least once a month, and more frequently if determined necessary. Any wax residue on wall bases or unmovable furniture will be removed. This process is to be completed in conjunction with buffing. • Scrubbing: A floor that is satisfactory or acceptably scrubbed is without embedded dirt, cleaning solution, film, stains, marks or water. Floors, except restrooms, will be scrubbed only when they cannot be cleaned satisfactorily by damp mopping. • Wax Removal: Wax removal will be accomplished by applying a stripping or wax removing solution in warm water over the entire floor area exactly as recommended by the manufacturer of the product, to loosen embedded dirt and wax. Residue along floor edges near wall base, immovable furniture, equipment and in corners will be removed manually. • Waxing and Buffing: As soon as the wax removal has been satisfactorily accomplished, the floor will be waxed and buffed. A satisfactory or acceptable floor finish has a thin, even coating of wax. Floor will be clean and bright, under furniture as well as in other areas. Do not apply wax within six inches from walls or legs or bases of unmovable furniture. Dusting and Miscellaneous Cleaning A satisfactory or acceptably dusted surface is free of all dust, dust streaks, lint, cobwebs, dirt, or oily streaks. The dust must be removed completely, not scattered around. • Low Dusting: Includes surfaces less than six feet from the floor, which may include, but may not be limited to, ledges, support braces, window sills, doors, stair rails, chair rails, base boards. Typewriters, computers, business machines, consoles, plotting boards and equipment of similar nature will not be dusted. No desks are to be included in individual offices, except by specific request, but reception areas, common area tables and desks, (such as those in the library or reading areas in various city buildings), will be dusting on the regular schedule. • High Dusting: High dusting includes areas over windows and doors, overhead pipes, exposed ducts, ceilings and walls which are six feet or more from the floor. High dusting will be performed before floors are cleaned and before low dusting is undertaken. • Dusting Heating and Air Conditioning Equipment: All accessible portions of unit heaters, air conditioning grills, convectors, diffusers, fans, ceiling vents and radiators will be dusted or vacuumed. If the grills cannot be cleaned by dusting or vacuuming, they shall be removed and washed. 164 • Entryway and Vestibules: Areas around all exterior entryway doors will be swept free of all gravel, dirt, sand, sticks, and debris for a minimum of 10 feet from the entrance door in order to minimize the amount of material tracked into the building. The Contractor will not be responsible for the removal of snow or ice. Restrooms Acceptably clean restrooms have a clean and bright appearance and no objectionable odors. Disinfectant shall be used on all surfaces and fixtures on a daily basis. • Restroom Floor Cleaning: Restroom floors will be (if concrete, tile, or vinyl) swept and scrubbed once a day. The immediate areas around urinals will be well scrubbed, using an all-purpose detergent with a small amount of disinfectant. This process will result in thorough removal of soiling with no residue left in joints, crevices or corners. • Toilets: When cleaning the bowls, wash and wipe bowl inside and out. If deposits are difficult to remove, use appropriate cleaning methods to remove deposits. Wash seat, top and bottom with detergent solution, and wipe dry. Wipe tank and cover or flush mechanism and hardware with clean, damp cloth. • Urinals: When cleaning the urinals, wash and wipe inside and out. If deposits are difficult to remove, use appropriate cleaner and method to remove deposits. Care must be taken to ensure that the underside of the urinal fixture rim and holes in the bottom and back of all urinals are cleaned. • Sinks: A satisfactory or acceptably clean sink is free of grease, dirt, soap film and streaks. Chrome plated hardware will be cleaned with a clean, damp cloth. • Deodorants and Disinfectants: Various types of disinfectants will be used on toilet bowls, floors, partitions and similar fixtures as necessary. Solid crystal deodorants will not be used in urinals. Proper cleaning and ventilation eliminates the need for deodorants in toilet rooms. • Toilet Room Walls, Partitions and Woodwork: The accumulation of dirt on walls and partitions will not be allowed. A restroom that is acceptably clean shall include clean joints in the tile, and be free of film streaks, deposits and soiling. A disinfectant shall be used as necessary. • Shower Stalls: The accumulation of dirt on floors and walls will not be allowed. A restroom that is acceptably clean shall include clean joints in the tile, and be free of film streaks, deposits and soiling. A disinfectant shall be used as necessary. • Toilet Room Dispensers: Paper towels, toilet tissue and soap dispensers and feminine hygiene dispensers will be checked and refilled daily. An adequate daily supply of materials will be kept available. • Waste Baskets and "Special" Waste Baskets in Women's Restrooms: Waste baskets in all restrooms will be emptied daily into the main receptacle, immediately prior to emptying of the main receptacle into the outside dumpster. 165 Miscellaneous Cleaning and Maintenance • Drinking Fountains: All drinking fountains will be cleaned daily. Appropriate cleaners shall be used when cleaning surfaces to ensure no damage occurs, while removing water spots and stains. • Kitchen/Breakrooms: Pick up trash, empty all waste receptacles, reline receptacle with liner. Clean countertops, tabletops, chairs, and sinks. Stock paper products if needed, spot clean front of cabinets and major appliances. Clean in-side of microwave ovens if present weekly. • Glass Cleaning: All glass will be cleaned with a mild glass cleaning solution. Adjacent trim will be wiped clean with a damp cloth where soiled by spillage or by smears in the glass cleaning operation. • All glass, including mirrors, glass cabinets, display cases, and partitions (glass or plastics) will be cleaned in accordance with the frequency schedule. • All glass windows and doors will be spotted and cleaned in accordance with the frequency schedule. • Spot Cleaning: Walls, wainscoting, doors and trim will be cleaned when necessary to remove small or spot areas of dirt, grease stains or friction marks. Care will be taken to perform spot cleaning without damage to the surface finish and to provide an overall uniform appearance substantially free of cleaning marks after spot cleaning. • Cleaning and Polishing Furniture in Public Areas: All finished surfaces will be cleaned and receive an adequate application of furniture polish to remove dirt, and leave a gloss or sheen. Polish shall not leave surface oily, sticky, or injure varnish and enamel. All furniture, metal, wooden or upholstered, will be free of all wax, scuff marks, water marks and cobwebs. Metal surfaces will be cleaned. Care must be taken not to damage the finished surfaces. • Emptying and Cleaning Waste and Recycling Receptacles: The main waste receptacles and recycle receptacles in common areas will be emptied daily and deposited in collection containers provided for that purpose. Receptacles will be kept free of deposits, dirt streaks, and odors. Individual office recycling and trash receptacle will be emptied by staff members. Contractor will supply trash bags for office trash receptacles. The common office paper recycling and cardboard storage containers will be emptied as needed or at least every other week and deposited in the collection containers provided for that purpose on site. • Blinds: All blinds in compliance with the attached schedule. Acceptably clean blinds will be free of dust, dirt, deposits and film. Paint coatings, plastics and fabrics will not be damaged. • Light Fixtures: All exposed light fixtures and accessible components including lenses, louvers and housings, will be cleaned with a clean damp cloth and appropriate cleaners. Lenses shall be removed once a year to remove dead flies, bugs, etc. and to clean the inside of the lens. Burned out lamps will be documented in the weekly report. • Cleaning Mats: All entrance mats will be vacuumed daily. All dirt and dust deposits underneath the mats will be removed and the mats replaced after cleaning. 166 • Ash Trays/Receptacles: All ash trays/receptacles will be emptied on a weekly basis or more often as need. 167 APPENDIX C 168 Building: Alfred Stiff Professional Building Location: 20 East Olive Street Size of Building: 23,040 square feet • Lower Floor: o Common Area: 3,283 square foot o Office Space: 940 square foot • Main Floor: o Common Area: 4,560 square foot o Office Space: 1,822 square foot • Second Floor: o Common Area: 3,184 square foot o Office Space: 3,092 square foot Hours of Operation: Monday – Friday, 8:00am to 5:00pm Additional Information: Additional evening meetings scheduled during week. Building shall be cleaned 5 nights per week. This building will require the use of green cleaning products that meet the approval of the green building council. Scope of Service & Frequency Alfred Stiff Professional Building Item Performance Requirements Timeline S M T W T F S 1 Maintain Required Records Daily X X X X X 2 Common Areas/Reception Areas Vacuum carpeted areas, including entry areas and entry mats Daily X X X X X Sweep hard floors including entry areas, and common area stairs Daily X X X X X Wet mop hard floors with cleaner including under mats. This includes any common area stairs. Daily X X X X X Pick up trash, empty all common area waste receptacles, place liner in receptacle, pick up trash Daily X X X X X Empty recycling receptacles, place in large building containers Weekly X Clean entry glass – inside and out, (weather permitting) Daily X X X X X Spot clean interior glass, light switches, doors, door frames, general areas as needed Daily X X X X X Disinfect and polish drinking fountains Daily X X X X X Dust and spot clean glass display cases Weekly 169 Dust and wipe chairs, desks, tables, counters, artwork, reachable partitions Weekly Clean and polish furniture in public areas Monthly Clean all glass furniture and display cases in public areas (horizontal and vertical) Monthly Dust heating, ventilation, air conditioning and exhaust fan grills Monthly Spot clean carpet As Needed High Dusting Monthly 3 Restrooms Sweep, scrub, wet mop, and disinfect floors Daily X X X X X Clean and disinfect toilets and urinals, interior and exterior of units Daily X X X X X Clean and disinfect counters, sinks, faucets, and soap dispenser Daily X X X X X Clean and polish mirrors, dispensers, and chrome fixtures Daily X X X X X Dust and wipe surfaces within reach including partitions, changing stations, and shelving Daily X X X X X Empty waste receptacle(s), place liner in receptacle Daily X X X X X Stock all toilet paper, paper towel, seat covers, feminine hygiene products, and soap dispensers Daily or as needed X X X X X Clean and disinfect shower stall, include walls and floor if applicable Weekly Dust heating, ventilation, air conditioning and exhaust fan grills Monthly 4 Breakroom/Kitchen Sweep, scrub, wet mop, hard floors Daily X X X X X Clean counters, table tops, and sinks Daily X X X X X Wipe clean tables and chairs Daily X X X X X Spot clean front of cabinets and major appliances Daily X X X X X Pick up trash, empty waste receptacle(s), place liner in receptacle(s) Daily X X X X X Vacuum carpeted areas if applicable Daily X X X X X Empty recycling receptacles, place in large building containers, place liner in receptacle Weekly X Stock paper towel and soap dispensers As Needed Low Dusting Weekly 170 Dust heating, ventilation, air conditioning and exhaust fan grills Monthly 5 Office Areas Vacuum in offices, move chairs as needed Weekly Fully clean all interior windows and glass doors Monthly Dust heating, ventilation, air conditioning and exhaust fan grills in offices and open areas Monthly 6 Elevator/Stairways Vacuum carpeted areas if applicable Weekly Sweep, wet mop hard floors with cleaner Daily X X X X X Spot clean and wipe interior/exterior panels Weekly Wipe and disinfect hand railings Daily X X X X X 7 Miscellaneous Empty and clean ash receptacles if applicable Weekly High dusting Monthly Fully clean interior side of all exterior building windows, reachable from the ground or with a hand extension Quarterly Dust Blinds Annual Lights fixtures Annual Other Services The City’s designated contact will coordinate and schedule with Contractor work outside scope of contract. Strip, Scrub, Wax floor surface, three (3) coats of wax Bid per square foot Provide hourly rate for emergency call out 171 Building: City Hall Location: 121 N. Rouse Avenue Size of Building: 22,700 square feet • Main Floor: o Common Area: 4,425 square feet o Office Space: 6,505 square feet • Second Floor: o Common Area: 2,350 square feet o Office Space: 5,305 square feet Hours of Operation: Monday – Friday, 8:00am to 5:00pm Additional Information: Additional evening meetings scheduled many days of the week. Building shall be cleaned 5 nights per week. This building will require the use of green cleaning products that meet the approval of the green building council. Scope of Service & Frequency CITY HALL Item Performance Requirements Timeline S M T W T F S 1 Maintain Required Records Daily X X X X X 2 Common Areas/Reception Areas Vacuum carpeted areas, including entry areas and entry mats Daily X X X X X Sweep hard floors including entry areas, and common area stairs Daily X X X X X Wet mop hard floors with cleaner including under mats. This includes any common area stairs. Daily X X X X X Pick up trash, empty all common area waste receptacles, place liner in receptacle, pick up trash Daily X X X X X Empty recycling receptacles, place in large building containers Weekly X Clean entry glass – inside and out, (weather permitting) Daily X X X X X Spot clean interior glass, light switches, doors, door frames, general areas as needed Daily X X X X X Disinfect and polish drinking fountains Daily X X X X X Dust and spot clean glass display cases Weekly Dust and wipe chairs, desks, tables, counters, artwork, reachable partitions Weekly Clean and polish furniture in public areas Monthly 172 Clean all glass furniture and display cases in public areas (horizontal and vertical) Monthly Dust heating, ventilation, air conditioning and exhaust fan grills Monthly Spot clean carpet As Needed High Dusting Monthly 3 Restrooms Sweep, scrub, wet mop, and disinfect floors Daily X X X X X Clean and disinfect toilets and urinals, interior and exterior of units Daily X X X X X Clean and disinfect counters, sinks, faucets, and soap dispenser Daily X X X X X Clean and polish mirrors, dispensers, and chrome fixtures Daily X X X X X Dust and wipe surfaces within reach including partitions, changing stations, and shelving Daily X X X X X Empty waste receptacle(s), place liner in receptacle Daily X X X X X Stock all toilet paper, paper towel, seat covers, feminine hygiene products, and soap dispensers Daily or as needed X X X X X Dust heating, ventilation, air conditioning and exhaust fan grills Monthly 4 Breakroom/Kitchen Sweep, scrub, wet mop, hard floors Daily X X X X X Clean counters, table tops, and sinks Daily X X X X X Wipe clean tables and chairs Daily X X X X X Spot clean front of cabinets and major appliances Daily X X X X X Pick up trash, empty waste receptacle(s), place liner in receptacle(s) Daily X X X X X Vacuum carpeted areas if applicable Daily X X X X X Empty recycling receptacles, place in large building containers, place liner in receptacle Weekly X Stock paper towel and soap dispensers As Needed Low Dusting Weekly Dust heating, ventilation, air conditioning and exhaust fan grills Monthly 5 Office Areas Vacuum in offices, move chairs as needed Weekly Fully clean all interior windows and glass doors Monthly 173 Dust heating, ventilation, air conditioning and exhaust fan grills in offices and open areas Monthly 6 Elevator/Stairways Vacuum carpeted areas if applicable Weekly Sweep, wet mop hard floors with cleaner Daily X X X X X Spot clean and wipe interior/exterior panels Weekly Wipe and disinfect hand railings Daily X X X X X 7 Miscellaneous Empty and clean ash receptacles if applicable Weekly High dusting Monthly Fully clean interior side of all exterior building windows, reachable from the ground or with a hand extension Quarterly Dust Blinds Annual Lights fixtures Annual Other Services The City’s designated contact will coordinate and schedule with Contractor work outside scope of contract. Strip, Scrub, Wax floor surface, three (3) coats of wax Bid per square foot Provide hourly rate for emergency call out 174 Building: Fire Station #2 Location: 575 W. Kagy Size of Building: • Main Floor: o Common Area: 350 square feet o Police Office Space: 200 square feet Hours of Operation: Building is a 24 hour a day operation 7 days a week. Cleaning hours will be established with the Owner Additional Information: Fire apparatus bays and firefighter dormitory, kitchen, and Fire Department office areas are not included in areas to be cleaned. Building shall be cleaned 1 time per week. This building will require the use of green cleaning products that meet the approval of the green building council. Scope of Service & Frequency Fire Station #1 Item Performance Requirements Timeline S M T W T F S 1 Maintain Required Records Weekly 2 Common Areas/Reception Areas Vacuum carpeted areas, including entry areas and entry mats Weekly Sweep hard floors including entry areas, and common area stairs Weekly Wet mop hard floors with cleaner including under mats. This includes any common area stairs. Weekly Pick up trash, empty all common area waste receptacles, place liner in receptacle, pick up trash Weekly Empty recycling receptacles, place in large building containers Weekly Clean entry glass – inside and out, (weather permitting) Weekly Spot clean interior glass, light switches, doors, door frames, general areas as needed Weekly Disinfect and polish drinking fountains Weekly Dust and spot clean glass display cases Weekly Dust and wipe chairs, desks, tables, counters, artwork, reachable partitions Weekly Clean and polish furniture in public areas Monthly Clean all glass furniture and display cases in public areas (horizontal and vertical) Monthly 175 Dust heating, ventilation, air conditioning and exhaust fan grills Monthly Spot clean carpet As Needed High Dusting Monthly 3 Restrooms Sweep, scrub, wet mop, and disinfect floors Weekly Clean and disinfect toilets and urinals, interior and exterior of units Weekly Clean and disinfect counters, sinks, faucets, and soap dispenser Weekly Clean and polish mirrors, dispensers, and chrome fixtures Weekly Dust and wipe surfaces within reach including partitions, changing stations, and shelving Weekly Empty waste receptacle(s), place liner in receptacle Weekly Stock all toilet paper, paper towel, seat covers, feminine hygiene products, and soap dispensers Weekly Dust heating, ventilation, air conditioning and exhaust fan grills Monthly 5 Office Areas Vacuum in offices, move chairs as needed Weekly Fully clean all interior windows and glass doors Monthly Dust heating, ventilation, air conditioning and exhaust fan grills in offices and open areas Monthly 6 Miscellaneous Empty and clean ash receptacles if applicable Weekly High dusting Monthly Dust Blinds Annual Lights fixtures Annual Other Services The City’s designated contact will coordinate and schedule with Contractor work outside scope of contract. Strip, Scrub, Wax floor surface, three (3) coats of wax Bid per square foot Provide hourly rate for emergency call out 176 Building: Laurel Glenn Location: 5519 Saxon Way Size of Building: 3,460 square feet Building is mostly used for vehicle and equipment storage but there is a restroom and meeting area for staff who are working on the West end of town so they do not to come back to City Shops Complex. Staff will be there at various times of the day and various days of week. Scope of Service & Frequency Laurel Glenn Annex – Bi-Monthly (Wednesday & Weekends) Item Scope Frequency 1 Maintain Required Records Bi-Monthly 2 Common Area Clean deep sink outside breakroom area Bi-Monthly 3 Restrooms Sweep, scrub, wet mop, and disinfect floors Bi-Monthly Clean and disinfect toilets and urinals, interior and exterior of units Bi-Monthly Clean and disinfect counters, sinks, faucets, and soap dispenser Bi-Monthly Empty waste receptacle(s), place trash liner in receptacle Bi-Monthly Stock all toilet paper, paper towel, seat covers, feminine hygiene products, and soap dispensers Bi-Monthly 4 Breakroom/Kitchen Sweep, scrub, wet mop, hard floors Bi-Monthly Clean counters, table tops, and sinks Bi-Monthly Wipe clean tables and chairs Bi-Monthly Spot clean front of cabinets and major appliances Bi-Monthly Pick up trash, empty waste receptacle(s), place liner in receptacle(s) Bi-Monthly Empty recycling receptacles, place in large building containers, place liner in receptacle Bi-Monthly Stock paper towel and soap dispensers Bi-Monthly Clean door surfaces Bi-Monthly Low Dusting Monthly Dust heating, ventilation, air conditioning and exhaust fan grills Monthly 5 Miscellaneous High dusting Annual Lights fixtures Annual Strip & wax VCT tile surfaces, one sealer coat, three finish coats Annual Additional Services 177 Building: Library Location: 626 East Main Street Size of Building: 52,000 square feet • Lower Floor: o Common Area: 216 square foot o Office Space: • Main Floor: o Common Area: 22,625 square foot o Office Space: 782 square foot • Second Floor: o Common Area: 15,341 square foot o Office Space: 1,507 square foot Hours of Operation: Monday - Thursday 10:00am to 8:00pm Friday 10:00am to 6:00pm Saturday 10:00am to 5:00pm Sunday 1:00pm to 5:00pm Additional Information: Additional evening events take place in main parts of library after closing hours that need to be accommodated. Extra security measures will be in place due to presence of a police office and confidential information. Building shall be cleaned 7 nights per week. This building will require the use of green cleaning products that meet the approval of the green building council. Scope of Service & Frequency Library Item Performance Requirements Timeline S M T W T F S 1 Maintain Required Records Daily X X X X X X X 2 Common Areas/Reception Areas Vacuum carpeted areas, including entry areas and entry mats Daily X X X X X X X Sweep hard floors including entry areas, and common area stairs Daily X X X X X X X Wet mop hard floors with cleaner including under mats. This includes any common area stairs. Daily X X X X X X X Pick up trash, empty all common area waste receptacles, place liner in receptacle, pick up trash Daily X X X X X X X Empty recycling receptacles, place in large building containers Weekly X Clean entry glass – inside and out, (weather permitting) Daily X X X X X X X 178 Spot clean interior glass, light switches, doors, door frames, general areas as needed Daily X X X X X X X Disinfect and polish drinking fountains Daily X X X X X X X Dust and spot clean glass display cases Weekly Dust and wipe chairs, desks, tables, counters, artwork, reachable partitions Weekly Clean and polish furniture in public areas Monthly Clean all glass furniture and display cases in public areas (horizontal and vertical) Monthly Dust heating, ventilation, air conditioning and exhaust fan grills Monthly Spot clean carpet As Needed High Dusting Monthly 3 Restrooms Sweep, scrub, wet mop, and disinfect floors Daily X X X X X X X Clean and disinfect toilets and urinals, interior and exterior of units Daily X X X X X X X Clean and disinfect counters, sinks, faucets, and soap dispenser Daily X X X X X X X Clean and polish mirrors, dispensers, and chrome fixtures Daily X X X X X X X Dust and wipe surfaces within reach including partitions, changing stations, and shelving Daily X X X X X X X Empty waste receptacle(s), place liner in receptacle Daily X X X X X X X Stock all toilet paper, paper towel, seat covers, feminine hygiene products, and soap dispensers Daily or as needed X X X X X X X Clean and disinfect shower stall, include walls and floor if applicable Weekly Dust heating, ventilation, air conditioning and exhaust fan grills Monthly 4 Breakroom/Kitchen Sweep, scrub, wet mop, hard floors Daily X X X X X X X Clean counters, table tops, and sinks Daily X X X X X X X Wipe clean tables and chairs Daily X X X X X X X Spot clean front of cabinets and major appliances Daily X X X X X X X Pick up trash, empty waste receptacle(s), place liner in receptacle(s) Daily X X X X X X X Vacuum carpeted areas if applicable Daily X X X X X X X 179 Empty recycling receptacles, place in large building containers, place liner in receptacle Weekly X Stock paper towel and soap dispensers As Needed Low Dusting Weekly Dust heating, ventilation, air conditioning and exhaust fan grills Monthly 5 Office Areas Vacuum in offices, move chairs as needed Weekly Fully clean all interior windows and glass doors Monthly Dust heating, ventilation, air conditioning and exhaust fan grills in offices and open areas Monthly 6 Elevator/Stairways Vacuum carpeted areas if applicable Weekly Sweep, wet mop hard floors with cleaner Daily X X X X X X X Spot clean and wipe interior/exterior panels Weekly Wipe and disinfect hand railings Daily X X X X X X X 7 Miscellaneous Empty and clean ash receptacles if applicable Weekly High dusting Monthly Fully clean interior side of all exterior building windows, reachable from the ground or with a hand extension Quarterly Dust Blinds Annual Lights fixtures Annual Other Services The City’s designated contact will coordinate and schedule with Contractor work outside scope of contract. Strip, Scrub, Wax floor surface, three (3) coats of wax Bid per square foot Provide hourly rate for emergency call out 180 Building: Shops Complex Location: 814 N. Bozeman Avenue Size of Building: 14,889 square feet Common Area: 2,970 square feet Office Space: 3,390 square feet Hours of Operation: 6:00am to 6:00pm for operation with weekend, late night, and early morning presence depending on the time of year and Public Works related activities. Additional Information: Additional evening meetings scheduled some days of the week. Main building shall be cleaned 5 nights per week. This building will require the use of green cleaning products that meet the approval of the green building council. South Shop and Sign and Signal Office Building will be cleaned 2 times per week. Scope of Service & Frequency Shops Complex Item Performance Requirements Timeline S M T W T F S 1 Maintain Required Records Daily X X X X X 2 Common Areas/Reception Areas Vacuum carpeted areas, including entry areas and entry mats Daily X X X X X Sweep hard floors including entry areas, and common area stairs Daily X X X X X Wet mop hard floors with cleaner including under mats. This includes any common area stairs. Daily X X X X X Pick up trash, empty all common area waste receptacles, place liner in receptacle, pick up trash Daily X X X X X Empty recycling receptacles, place in large building containers Weekly X Clean entry glass – inside and out, (weather permitting) Daily X X X X X Spot clean interior glass, light switches, doors, door frames, general areas as needed Daily X X X X X Disinfect and polish drinking fountains Daily X X X X X Dust and spot clean glass display cases Weekly Dust and wipe chairs, desks, tables, counters, artwork, reachable partitions Weekly Clean and polish furniture in public areas Monthly Clean all glass furniture and display cases in public areas (horizontal and vertical) Monthly 181 Dust heating, ventilation, air conditioning and exhaust fan grills Monthly Spot clean carpet As Needed High Dusting Monthly 3 Restrooms Sweep, scrub, wet mop, and disinfect floors Daily X X X X X Clean and disinfect toilets and urinals, interior and exterior of units Daily X X X X X Clean and disinfect counters, sinks, faucets, and soap dispenser Daily X X X X X Clean and polish mirrors, dispensers, and chrome fixtures Daily X X X X X Dust and wipe surfaces within reach including partitions, changing stations, and shelving Daily X X X X X Empty waste receptacle(s), place liner in receptacle Daily X X X X X Stock all toilet paper, paper towel, seat covers, feminine hygiene products, and soap dispensers Daily or as needed X X X X X Clean and disinfect shower stall, include walls and floor if applicable Weekly Dust heating, ventilation, air conditioning and exhaust fan grills Monthly 4 Breakroom/Kitchen Sweep, scrub, wet mop, hard floors Daily X X X X X Clean counters, table tops, and sinks Daily X X X X X Wipe clean tables and chairs Daily X X X X X Spot clean front of cabinets and major appliances Daily X X X X X Pick up trash, empty waste receptacle(s), place liner in receptacle(s) Daily X X X X X Vacuum carpeted areas if applicable Daily X X X X X Empty recycling receptacles, place in large building containers, place liner in receptacle Weekly X Stock paper towel and soap dispensers As Needed Low Dusting Weekly Dust heating, ventilation, air conditioning and exhaust fan grills Monthly 5 Office Areas Vacuum in offices, move chairs as needed Weekly Fully clean all interior windows and glass doors Monthly 182 Dust heating, ventilation, air conditioning and exhaust fan grills in offices and open areas Monthly 6 Miscellaneous Empty and clean ash receptacles if applicable Weekly High dusting Monthly Fully clean interior side of all exterior building windows, reachable from the ground or with a hand extension Quarterly Dust Blinds Annual Lights fixtures Annual Wax & Buff Flooring, Training Room, Breakroom, and Common Areas Quarterly Wax removal, Wax and Buff (3) Coats Annual Other Services The City’s designated contact will coordinate and schedule with Contractor work outside scope of contract. 183 Building:  Vehicle Maintenance/HRDC Barn  Location:  1812 N. Rouse Avenue  Size of Building:   Main Floor:  o Common Area: 1,425 square feet  o Locker Rooms: 180 square feet    Hours of Operation:  6:00am to 6:00pm up to 7 days a week.      Additional Information:  Garage bays are not included in areas to be cleaned.    Work will be done according to the agreed upon schedule with the Department representatives.  Building  shall be cleaned Tuesdays, Thursdays, and Sundays.      Scope of Service & Frequency    Vehicle Maintenance/HRDC Barn  Item Performance Requirements Timeline S M T W T F S  1 Maintain Required Records 3x Week X  X  X     2 Common Areas/Reception Areas            Sweep hard floors including entry areas,  and common area stairs  3x Week X  X  X      Wet mop hard floors with cleaner  including under mats.  This includes any  common area stairs.  3x Week X  X  X      Clean entry glass – inside and out,  (weather permitting)  3x Week X  X  X      Pick up trash, empty all common area  waste receptacles, place liner in  receptacle, pick up trash  3x Week X  X  X      Empty recycling receptacles, place in large  building containers  Weekly        X     3 Restrooms            Sweep, scrub, wet mop, and disinfect  floors  3x Week X  X  X      Clean and disinfect toilets and urinals,  interior and exterior of units  3x Week X  X  X      Clean and disinfect counters, sinks,  faucets, and soap dispenser  3x Week X  X  X      Clean and polish mirrors, dispensers, and  chrome fixtures  3x Week X  X  X      Dust and wipe surfaces within reach  including partitions, changing stations,  and shelving  3x Week X  X  X      Empty waste receptacle(s), place liner in  receptacle  3x Week X  X  X     184  Stock all toilet paper, paper towel, seat  covers, feminine hygiene products, and  soap dispensers  Daily or as  needed  X  X  X     4 Locker Room            Sweep, scrub, wet mop, and disinfect  floors  3x Week X  X  X      Clean and disinfect shower stall, include  walls and floor if applicable   Weekly         5 Breakroom/Kitchen            Sweep, scrub, wet mop, hard floors 3x Week X  X  X      Clean counters, table tops, and sinks 3x Week X  X  X      Wipe clean tables and chairs 3x Week X  X  X      Spot clean front of cabinets and major  appliances  3x Week X  X  X      Pick up trash, empty waste receptacle(s),  place liner in receptacle(s)  3x Week X  X  X      Vacuum carpeted areas if applicable 3x Week X  X  X      Empty recycling receptacles, place in large  building containers, place liner in  receptacle  Weekly      X      Stock paper towel and soap dispensers As  Needed            Other Services  The City’s designated contact will coordinate and schedule with Contractor work outside scope of  contract.    Strip, Scrub, Wax floor surface, three (3) coats of wax Bid per square foot  Provide hourly rate for emergency call out   185 Building: Water Reclamation Facility Location: 2245 Spring Hill Road Size of Building: • Main Floor: o Common Area: 4200 sq ft o Office Space: 809 sq ft Hours of Operation: Building is a 24 hour a day operation 7 days a week. Building shall be cleaned on Tuesday and Thursday. Cleaning hours will be established with Owner. Work will be done according to the agreed upon schedule with the Department representatives. Additional Information: Scope of Service & Frequency Water Reclamation Facility – 2 Days per Week (Tuesday and Thursday) Item Scope Frequency 1 Maintain Required Records Tuesday/Thursday Sweep and wet mop all ceramic and VTC flooring Tuesday/Thursday Vacuum all carpeted areas, in offices, move chairs as needed Tuesday/Thursday Empty trash receptacles in common areas, offices, lab, and lab area waste receptacle, place liner in receptacle Tuesday/Thursday 2 Restrooms Sweep, scrub, wet mop, and disinfect floors Tuesday/Thursday Clean and disinfect toilets and urinals, interior and exterior of units Tuesday/Thursday Clean and disinfect counters, sinks, faucets, and soap dispenser Tuesday/Thursday Empty waste receptacle(s), place trash liner in receptacle Tuesday/Thursday Stock all toilet paper, paper towel, seat covers, feminine hygiene products, and soap dispensers 3 Breakroom/Kitchen/Conference Room Sweep, scrub, wet mop, hard floors Tuesday/Thursday Clean counters, table tops, and sinks Tuesday/Thursday Wipe clean tables and chairs Tuesday/Thursday Spot clean front of cabinets, major appliances, and glass surfaces Tuesday/Thursday Pick up trash, empty waste receptacle(s), place liner in receptacle(s) Tuesday/Thursday Stock paper towel and soap dispensers Tuesday/Thursday 4 Miscellaneous Buff VCT tile surfaces Quarterly Strip & wax VCT tile surfaces, one sealer coat, three finish coats Annual Additional Services • Professional carpet cleaning, prices per square foot on request • Clean all window surfaces inside/outside, priced per building on request • Strip and wax VCT surfaces, one (1) sealer coat, (3) finish coats, priced per square foot on request • *DO NOT clean lab countertops* 186 Building: Water Treatment Plant Location: 7024 Sourdough Canyon Road Size of Building: • Main Floor: o Administration Area: 3,775 o Lab Space: 3,730 Hours of Operation: Building is a 16 hour a day operation 7 days a week. Building shall be cleaned 2 nights per week on Wednesday and weekends. Cleaning hours will be 7:00am to 8:00pm, contractor must arrive no later than 7:00pm on scheduled work days. Work will be done according to the agreed upon schedule with the Department representatives. Additional Information: Scope of Service & Frequency Water Treatment Plant – 2 Days per Week (Wednesday & Weekends) Item Scope Frequency 1. Maintain Required Records Wednesday/Weekend Sweep and wet mop floors in open common areas, offices, lab, control room, and conference room Weekend Vacuum in entry ways, 3 each Weekend Empty waste receptacles common areas, offices, lab, and lab area waste receptacle, place liner in receptacle Weekend 2 Restrooms Sweep, scrub, wet mop, and disinfect floors Wednesday/Weekend Clean and disinfect toilets and urinals, interior and exterior of units Wednesday/Weekend Clean and disinfect counters, sinks, faucets, and soap dispenser Wednesday/Weekend Empty waste receptacle(s), place trash liner in receptacle Wednesday/Weekend Stock all toilet paper, paper towel, seat covers, feminine hygiene products, and soap dispensers As Needed 3 Breakroom/Kitchen/Offices/Control Room Sweep and wet mop hard floors Weekend Empty waste receptacle(s), place liner in receptacle Weekend 4 Conference Room/Control Room/Breakroom Strip & wax VCT tile surfaces, one sealer coat, three finish coats Annual Additional Services • Clean all window surfaces inside/outside, priced per building on request 187 Appendix D 188 QUESTIONNAIRE/REQUIREMENTS FOR JANITORIAL SERVICES In addition to the written proposal that demonstrates the Offerors understanding of the RFP, each offeror shall also provide the following information. Brochures and advertisements will not be accepted as a direct response to the questionnaire. A qualifying proposal must address all items. Incomplete proposals may be rejected. Use of additional paper as needed is acceptable. 1) What sets your company apart from the rest? Why should the City of Bozeman utilize the services from your organization? 2) Describe your firm’s qualifications to provide the service specified in this RFP? 3) Examples of relevant prior proposals and current customers with similar attributes of the City of Bozeman. 4) Number of full-time employees: Office________ Field________ 5) Has your organization ever failed to complete any work awarded to it? 6) Are there any judgements, suits or claims pending against your firm? 7) This contract will require a Tier 1 (SSN Address Trace, National Federal Criminal, National Sex Offender, Statewide/County Criminal History) staff background check, does your firm currently use a Tier I background check on your staff Yes_____ No_____? 189 8) What will be the mode of communication between onsite staff, shift leads, management and City of Bozeman staff? 9) What will be the corrective action procedure to ensure that problems are solved quickly and not repeated? 10) How will your organization handle shortages in staffing levels as a result of vacations, illness, terminations, etc.? 11) Include a summary of your firms training and injury/illness prevention and safety programs. 12) Is your firm planning to subcontract portions of the work? Yes____ No____. If yes, indicate the name of the subcontractor(s) and the portion of the work that will be subcontracted in each case. 190 Appendix E 191 Building Address Monthly Labor Hours Monthly Cost Annual Cost City Hall 121 N. Rouse Ave $ $ Fire Station 2 575 W. Kagy $ $ Alfred Stiff Professional Building 20 E. Olive Street $ $ Bozeman Public Library 626 E. Main Street $ $ City Shops Complex 814 N. Bozeman Avenue $ $ Laurel Glenn 5519 Saxon Way $ $ Vehicle Maintenance Building 1812 N. Rouse Ave $ $ Water Treatment Plant (WTP) 7024 Sourdough Canyon Road $ $ Water Reclamation Facility (WRF) 2245 Spring Hill Road $ $ Total $ $ 192 APPENDIX F 193           SUBMITTAL FORM      *THIS DOCUMENT MUST BE COMPLETED, EXECUTED AND SUBMITTED WITH THE PROPOSAL*    THE REPRESENTATIONS MADE HEREIN ARE MADE UNDER PENALTY OF PERJURY    NO PROPOSAL IS VALID UNLESS SUBMITTED ON THIS FORM AND SIGNED BY  AUTHORIZED AGENT FOR YOUR COMPANY.        SUBMITTED BY:    COMPANY NAME:           ADDRESS:             CITY:     STATE:     ZIP:         TELEPHONE:         EMAIL:       SIGNATURE:       (Authorized Agent)    NAME:       (Please  Print)    TITLE:         DATE:             NOTE: If proposer is a corporation, the legal name of the corporation shall be set forth above, together  with the signature of authorized officers or agents; if bidder is a partnership, the true name of the firm  shall be set forth above, together with the signature of the partnership; and if bidder is an individual, his  signature shall be placed above.       194 APPENDIX G 195 Professional Services Agreement for Janitorial Services FY25-FY29 Page 1 of 13 PROFESSIONAL SERVICES AGREEMENT THIS AGREEMENT is made and entered into this _____ day of ____________, 202__ (“Effective Date”), by and between the CITY OF BOZEMAN, MONTANA, a self-governing municipal corporation organized and existing under its Charter and the laws of the State of Montana, 121 North Rouse Street, Bozeman, Montana, with a mailing address of PO Box 1230, Bozeman, MT 59771, hereinafter referred to as “City,” and, ____________, _______________, hereinafter referred to as “Contractor.” The City and Contractor may be referred to individually as “Party” and collectively as “Parties.” In consideration of the mutual covenants and agreements herein contained, the receipt and sufficiency whereof being hereby acknowledged, the parties hereto agree as follows: 1. Purpose: City agrees to enter this Agreement with Contractor to perform for City services described in the Scope of Services attached hereto as Exhibit A and by this reference made a part hereof. 2. Term/Effective Date: This Agreement is effective upon the Effective Date and will expire on the _____ day of ______________, 202_, unless earlier terminated in accordance with this Agreement. 3. Scope of Services: Contractor will perform the work and provide the services in accordance with the requirements of the Scope of Services. For conflicts between this Agreement and the Scope of Services, unless specifically provided otherwise, the Agreement governs. Contractor agrees to be bound by its responses to the City’s Cloud Questions, attached to this Agreement as Exhibit B and made part of this Agreement. Such responses constitute material consideration for the City to enter into this Agreement and the responses are material representations regarding the Contractor’s performance. 4. Payment: City agrees to pay Contractor the amount specified in the Scope of Services. Any alteration or deviation from the described services that involves additional costs above 196 Professional Services Agreement for Janitorial Services FY25-FY29 Page 2 of 13 the Agreement amount will be performed by Contractor after written request by the City, and will become an additional charge over and above the amount listed in the Scope of Services. The City must agree in writing upon any additional charges. 5. Contractor’s Representations: To induce City to enter into this Agreement, Contractor makes the following representations: a. Contractor has familiarized itself with the nature and extent of this Agreement, the Scope of Services, and with all local conditions and federal, state and local laws, ordinances, rules, and regulations that in any manner may affect cost, progress or performance of the Scope of Services. 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. 197 Professional Services Agreement for Janitorial Services FY25-FY29 Page 3 of 13 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. In performing the services under this Agreement, Contractor shall give preference to the employment of bona fide residents of Montana, as required by §18-2-403, MCA, as such term is defined by §18-2-401(1), MCA. When making assignments of work, Contractor shall use workers both skilled in their trade and specialized in their field of work for all work to which they are assigned. Pursuant to §§18-2-403 and 18-2-422, MCA, Contractor shall pay wages, fringe benefits, and expenses, including travel allowances as set forth in the current Montana Prevailing Wage Rate for Non Construction Services in effect and applicable to Gallatin County, Montana, which schedule is incorporated herein. Contractor shall pay all hourly wage employees on a weekly basis. Violation of the requirements set forth in the above State of Montana schedule of prevailing wage rates may subject the Contractor to the penalties set forth in §18-2-407, MCA. Contractor shall maintain payroll records during the term of this Agreement and for a period of three (3) years following termination of this Agreement. The Contractor shall ensure that any person, firm or entity performing any portion of the services under this Agreement for which the contractor, subcontractor or employer is responsible, is paid the applicable standard prevailing rate of wages. In the event that, during the term of this Agreement, any labor problems or disputes of any type arise or materialize which in turn cause any services to cease for any period of time, Contractor specifically agrees to take immediate steps, at its own expense and without expectation of reimbursement from City, to alleviate or resolve all such labor problems or disputes. The specific steps Contractor shall take shall be left to the discretion of Contractor; provided, however, that Contractor shall bear all costs of any related legal action. Contractor shall provide immediate relief to the City so as to permit the services to continue at no additional cost to City. Contractor shall indemnify, defend, and hold the City harmless from any and all claims, demands, costs, expenses, damages, and liabilities arising out of, resulting from, or occurring in connection with any labor problems or disputes or any delays or stoppages of work associated with such problems or disputes and for any claims regarding underpaid prevailing wages. 198 Professional Services Agreement for Janitorial Services FY25-FY29 Page 4 of 13 7. Indemnity/Waiver of Claims/Insurance: For other than professional services rendered, to the fullest extent permitted by law, Contractor agrees to release, defend, indemnify, and hold harmless the City, its agents, representatives, employees, and officers (collectively referred to for purposes of this Section as the City) from and against any and all claims, demands, actions, fees and costs (including attorney’s fees and the costs and fees of expert witness and consultants), losses, expenses, liabilities (including liability where activity is inherently or intrinsically dangerous) or damages of whatever kind or nature connected therewith and without limit and without regard to the cause or causes thereof or the negligence of any party or parties that may be asserted against, recovered from or suffered by the City occasioned by, growing or arising out of or resulting from or in any way related to: (i) the negligent, reckless, or intentional misconduct of the Contractor; or (ii) any negligent, reckless, or intentional misconduct of any of the Contractor’s agents. For the professional services rendered, to the fullest extent permitted by law, Contractor agrees to indemnify and hold the City harmless against claims, demands, suits, damages, losses, and expenses, including reasonable defense attorney fees, to the extent caused by the negligence or intentional misconduct of the Contractor or Contractor’s agents or employees. Such obligations shall not be construed to negate, abridge, or reduce other rights or obligations of indemnity that would otherwise exist. The indemnification obligations of this Section must not be construed to negate, abridge, or reduce any common-law or statutory rights of the City as indemnitee(s) which would otherwise exist as to such indemnitee(s). Contractor’s indemnity under this Section shall be without regard to and without any right to contribution from any insurance maintained by City. Should the City be required to bring an action against the Contractor to assert its right to defense or indemnification under this Agreement or under the Contractor’s applicable insurance policies required below, the City shall be entitled to recover reasonable costs and attorney fees incurred in asserting its right to indemnification or defense but only if a court of competent jurisdiction determines the Contractor was obligated to defend the claim(s) or was obligated to indemnify the City for a claim(s) or any portion(s) thereof. In the event of an action filed against the City resulting from the City’s performance under this Agreement, the City may elect to represent itself and incur all costs and expenses of suit. 199 Professional Services Agreement for Janitorial Services FY25-FY29 Page 5 of 13 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; • 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. 200 Professional Services Agreement for Janitorial Services FY25-FY29 Page 6 of 13 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. 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 201 Professional Services Agreement for Janitorial Services FY25-FY29 Page 7 of 13 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. 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 _________________ 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 202 Professional Services Agreement for Janitorial Services FY25-FY29 Page 8 of 13 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. 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. 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 203 Professional Services Agreement for Janitorial Services FY25-FY29 Page 9 of 13 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. 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 204 Professional Services Agreement for Janitorial Services FY25-FY29 Page 10 of 13 hereunder, without the prior written consent of the City. Any subcontractor or assignee will be bound by all of the terms and conditions of this Agreement. 18. Reports/Accountability/Public Information: Contractor agrees to develop and/or provide documentation as requested by the City demonstrating Contractor’s compliance with the requirements of this Agreement. Contractor shall allow the City, its auditors, and other persons authorized by the City to inspect and copy its books and records for the purpose of verifying that the 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 205 Professional Services Agreement for Janitorial Services FY25-FY29 Page 11 of 13 competent jurisdiction in compliance with the Applicable Law provisions of this Agreement. 23. Survival: Contractor’s indemnification shall survive the termination or expiration of this Agreement for the maximum period allowed under applicable law. 24. Headings: The headings used in this Agreement are for convenience only and are not be construed as a part of the Agreement or as a limitation on the scope of the particular paragraphs to which they refer. 25. Severability: If any portion of this Agreement is held to be void or unenforceable, the 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. 206 Professional Services Agreement for Janitorial Services FY25-FY29 Page 12 of 13 32. Extensions: this Agreement may, upon mutual agreement, be extended for a period of one year by written agreement of the Parties. In no case, however, may this Agreement run longer than __________________________. **** END OF AGREEMENT EXCEPT FOR SIGNATURES **** 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__________________________________ Chuck Winn, City Manager Print Name: ___________________________ Print Title: ____________________________ APPROVED AS TO FORM: By_______________________________ 207 Professional Services Agreement for Janitorial Services FY25-FY29 Page 13 of 13 Greg Sullivan, Bozeman City Attorney 208 Memorandum REPORT TO:City Commission FROM:Jessica Ahlstrom, Water Conservation Program Manager Shawn Kohtz, Director of Utilities SUBJECT:Authorize the City Manager to Sign a Participation Agreement with Flume Inc. for a Flume Device Direct Distribution Program and End Uses of Water Dashboard MEETING DATE:November 26, 2024 AGENDA ITEM TYPE:Agreement - Vendor/Contract RECOMMENDATION:Authorize the City Manager to Sign a Participation Agreement with Flume Inc. for a Flume Device Direct Distribution Program and End Uses of Water Dashboard. STRATEGIC PLAN:6.1 Clean Water Supplies: Ensure adequate supplies of clean water for today and tomorrow. BACKGROUND:The City of Bozeman requires a detailed understanding of end uses of water within its residential customer class to inform water conservation program planning and ensure that projected demand reductions achievable through the implementation of program measures are as accurate as possible. (An ‘end use’ is the last fixture to use the water, such as a toilet, faucet, or sprinkler head.) The 2016 Residential End Uses of Water Study (REUWS), published by the Water Research Foundation, outlines consumption patterns among various end uses of water found within a residential setting based on fixture consumption and behavioral data (frequency and duration of use) from around the country. The findings from this study are frequently used by the Water Conservation Division to ensure that program initiatives result in meaningful water savings. The Water Research Foundation has selected Flume Inc. to perform a needed update to the 2016 REUWS that has resulted from changes in technology, landscaping choices, and water use behaviors. The City of Bozeman has joined nearly 50 other utilities from across the country to support this study by providing Flume Inc. with anonymized residential consumption data, per a data sharing agreement signed by the Utilities Director on August 21, 2024. Like the 2016 REUWS, this updated study will provide a breakdown of average consumption among end uses of water within a residential setting based on consumption data from around the 209 country. As a participating utility in this study, the City of Bozeman has a unique opportunity to deploy Flume devices in a subset of 100 homes of varying ages to gain a more thorough understanding of the end uses of water within our service area, specifically. Flume devices can be easily installed alongside Bozeman’s water meters. Using a learning algorithm, the devices identify disaggregated water use among each end use within the home. This information is displayed to the customer in the Flume phone app and online and is made available to the City in a utility-facing portal. Participating water customers will be permitted to keep the Flume devices in perpetuity and the City will have access to this important data as long as they are installed. (The data from Flume devices differ from the City's water use portal, Dropcountr, because Dropcountr does not show disaggregated consumption broken out by each end use within the home.) End use data gathered from the Flume devices, as well as other anonymized property attribute data, will be analyzed and rolled up into a dashboard for City use. The dashboard will provide the City with an enhanced understanding of the relationship between year built and indoor/outdoor water use trends, outdoor water use and irrigated area, average fixture consumption, and more. In total, over 30 interactive graphs comparing data from this study will be included in the dashboard. This detailed, locally- specific analysis of end uses of water in Bozeman will provide the City with important information to better understand: Water savings potential associated with initiatives aimed at encouraging existing homes to retrofit indoor and outdoor fixtures and landscaping; Water use trends related to other property attributes such as year built, landscaped area, and irrigable area; and Demand reduction opportunities associated with new development projects and codes/policies outlined for implementation in the 2023 Water Conservation Plan. The attached participation agreement outlines terms and costs associated with the deployment of the Flume devices (Exhibit A & B) and the development of the Flume dashboard (Exhibit C). UNRESOLVED ISSUES:None. ALTERNATIVES:As suggested by the Commission. FISCAL EFFECTS:Total project costs are not to exceed $46,188.00 and will be paid for out of the Water Conservation Division professional services fund. Attachments: Participation Agreement_Flume Direct Distribution Program and End Use Study_FINAL.pdf 210 Report compiled on: November 14, 2024 211 Flume Water Monitoring Participation Agreement Page 1 56927276.v1 CITY OF BOZEMAN FLUME WATER MONITORING PARTICIPATION AGREEMENT This Water Monitoring Program Participation Agreement (the "Agreement") is entered into effective on _______________, 2024 (“Effective Date”), by and between City of Bozeman (“Bozeman””) and Flume, Inc., a vendor of a smart water system utilizing a smartphone application for real-time water monitoring (“Flume”) each individually a “Party” and collectively, the “Parties”). WHEREAS, Flume has developed the FlumeTM Smart Water System that allows the consumers of water to monitor water use in real time and to detect leaks; and WHEREAS, Bozeman has developed a Water Monitoring Program (the “Program”), whereby its eligible customers receive a coupon or rebate that can be redeemed at Flume for certain selected products or services, thereby monitoring and reducing overall water use; and WHEREAS, Bozeman customers will authorize Bozeman to receive data to assess overall customer use of water. NOW THEREFORE, for good and valuable consideration, including but not limited to the mutual covenants contained herein, the Parties agree as follows: 1. TERM Subject to the early termination provisions provided for herein, the term of this Agreement shall commence on the Effective Date hereof and continue until terminated by either Party. 2. PROGRAM TERMS Bozeman will offer to its qualified customers a coupon or a rebate for the purchase of qualified Flume products. Bozeman and Flume hereby agree that the product described in Exhibit A attached hereto, shall be offered as part of the product program set forth in Exhibit B attached hereto. 3. DESIGNATED REPRESENTATIVES Bozeman’s initial representative for this Agreement is Jessica Ahlstrom, Water Conservation Program Manager. Flume’s initial representative for this Agreement is Joe Fazio – GM, Utility & Business Solutions. Flume will be expected to have a contact person available during regular business hours to facilitate communication between Bozeman and Flume. Regular business hours are Monday through Friday from 8:00 am to 5:00 pm Pacific Time. Flume support can be reached via E-Mail at support@flumewater.com or via chat from within the Flume app or at flumewater.com. 4. RELEASE OF BOZEMAN Flume hereby expressly releases Bozeman from any and all liability to Flume resulting from any damages, including punitive, special, indirect, or consequential damages, arising from Flume’s performance of its obligations under this Agreement, including but not limited to: (a) claims for damages because of bodily injury, sickness, or disease of Flume's employees and agents or by those of any supplier or by anyone indirectly employed by any of them; (b) claims for damages to or destruction of tangible property of others, including loss of use thereof; (c) claims for damages regarding defects or repairs of any Flume product; and (d) actions of any Bozeman customer, including without limitation, failure to pay or damage to any Flume products. 5. INDEMNIFICATION AND INSURANCE FLUME AGREES TO INDEMNIFY, DEFEND AND HOLD HARMLESS BOZEMAN, AND EACH OF THEIR DIRECTORS, OFFICERS, EMPLOYEES, AND AGENTS FROM ANY AND ALL SUITS, ACTIONS, LOSSES, DAMAGES, CLAIMS OR LIABILITY, PENALTIES AND COSTS OR DAMAGES INCLUDING WITHOUT LIMITATION, ALL EXPENSES OF LITIGATION, COURT COSTS, ATTORNEYS FEES, EXPERT WITNESS FEES, AND DAMAGES FOR INJURY, DEATH OR PROPERTY DAMAGE (ALL AS FINALLY AWARDED BY A COURT OF COMPETENT JURISDICTION) SUSTAINED BY ANY ENTITY, PERSON OR PERSONS ARISING DIRECTLY OUT OF THE PERFORMANCE UNDER THIS AGREEMENT BY FLUME, ITS OFFICERS, AGENTS, EMPLOYEES OR REPRESENTATIVES OR FLUME’S BREACH OF THIS CONTRACT. PRIOR TO EXECUTION OF THIS AGREEMENT, FLUME SHALL PROVIDE INSURANCE COVERAGE DOCUMENTATION IN AMOUNT AND SCOPE SATISFACTORY TO BOZEMAN IN WRITING AS DETERMINED BY BOZEMAN IN ITS SOLE DISCRETION. FLUME SHALL ADD BOZEMAN AS AN ADDITIONAL INSURED UNDER SUCH INSURANCE POLICIES, AND FLUME SHALL PROVIDE BOZEMAN WITH CERTIFICATES OF INSURANCE AND INSURANCE ENDORSEMENTS IN A FORM ACCEPTABLE TO BOZEMAN. 6. NOTICES 212 Flume Water Monitoring Participation Agreement Page 2 56927276.v1 Notices to the Parties under this Agreement shall be given in writing (except a Party may provide notice solely by telephone in the case of an emergency) via certified mail, or email to the following addresses, and notices shall be effective pursuant to Section 17: City of Bozeman Jessica Ahlstrom Water Conservation Program Manager 121 N. Rouse Ave Bozeman, MT 59715 Email: jahlstrom@bozeman.net Phone: (406) 582-2265 Flume Joe Fazio GM, Utility & Business Solutions 75 Higuera Street, Suite 120 San Luis Obispo, CA 93401 Email: joe@flumewater.com Phone: (805) 705-2590 7. DATA Flume Data is the property solely of Flume derived from its products and can be used by Flume for anything whatsoever. Bozeman Data is the usage data that Bozeman delivers to Flume pursuant to this Agreement. Bozeman agrees to provide Flume with the data listed in Exhibit C. Flume may use Bozeman Data for providing the services agreed upon, providing a report back to Bozeman, and using Bozeman Data internally to create an aggregate data set. Aggregate Data will be organized into data sets created by Flume by using anonymized Bozeman Data in combination with other data in association with machine learning allowing data to be organized in multiple ways that are useful to the recipients. Aggregated data will never contain Personally Identifiable Information (PII). Derivative Works are products and services created by Flume by using Aggregated Data in combination with Flume Data and anonymized data of third parties, in association with machine learning. Subject to the terms of this Agreement, Bozeman hereby grants to Flume the non-exclusive, worldwide, perpetual, and royalty-free licenses and rights to: a. Access, download, use, reproduce, and modify Bozeman Data and to derive aggregated and anonymized data from Bozeman Data to create Aggregated Data in connection with the scope of services. b. Use anonymized Aggregated Data in combination with Flume Data in Flume Derivative Works. 8. NOTICE OF TERMINATION This Agreement may be terminated at any time by either Party, provided that written notice of termination is given at least thirty (30) days in advance of the intended date of termination. Flume must submit all outstanding invoices for Water Monitoring Coupons or rebates within sixty (60) days following the effective date of termination. 9. RIGHT TO AUDIT Bozeman has the right to audit, at Bozeman’s expense, Flume records and all supporting documentation upon reasonable advance notice and during regular business hours for the purposes of compliance with this Agreement for three (3) years following the expiration or earlier termination of this Agreement. 10. ASSIGNMENT Flume shall not assign or transfer this Agreement, in whole or in part, without the prior written consent of Bozeman, which may be withheld or conditioned in Bozeman’s sole discretion but will not be unreasonably withheld in the event of a sale or merger of substantially all of the assets. 11. NO JOINT VENTURE, AGENCY In no event will Flume hold itself out as, act as or be an agent of Bozeman. This Agreement is not intended to and shall not result in a partnership or joint venture between the Parties. Bozeman and Flume are entering into this Agreement solely for the benefit of themselves and agree that nothing herein shall be construed to confer any right, privilege or benefit on any person or entity other than the Parties hereto and their permitted assigns. Flume represents and warrants that Flume customarily engages in the independently established trade and business of the same nature as the work to be performed under this Agreement. 12. COMPLIANCE WITH LAWS Flume will fully comply with all appropriate local, state and federal laws, regulations and ordinances governing the acquisition of materials and performance of contractual Services required hereunder, in accordance with the highest standards of professional care expected by a vendor with expertise in the subject matter of this Agreement. 13. DISPUTE RESOLUTION In the event a dispute arises between the Parties regarding the application or interpretation of any provision of this Agreement or any matter pertaining to transactions contemplated by this Agreement, the aggrieved Party shall notify the other Party in writing of the nature of the dispute within 30 (30) days after such dispute arises. If the matter cannot be resolved informally within thirty (30) days, the dispute shall be referred to a meeting between a designated officer of each Party not otherwise involved in the administration of this Agreement. This meeting shall occur within thirty (30) days of the referral. If the Parties are unable to resolve the dispute within fifteen (15) days after the meeting has occurred or if the meeting does not occur, then, without waiving any defenses or immunities that may be available to a Party, each Party shall have the right to pursue any and all remedies available at law or in equity. 213 Flume Water Monitoring Participation Agreement Page 3 56927276.v1 14. GOVERNING LAW This Agreement shall be governed by, construed and enforced under the laws of the United States and the State of Montana. 15. FURTHER ACTIONS The Parties hereto agree to execute, acknowledge and deliver such further documents as may be necessary or proper to carry out the purpose and intent of this Agreement. 16. ENTIRE CONTRACT Except for that Data Sharing Agreement between the Parties effective August 21, 2024, this Agreement, including the schedules, exhibits and addenda referred to in this Agreement, which are incorporated in and constitute a part of this Agreement, contains the entire Agreement of the Parties hereto and supersedes all prior oral or written agreements, negotiations, representations and understandings with respect to the specific subject matter addressed herein This Agreement may not be amended or modified except by a writing signed by the Parties. 17. WAIVER Any waiver at any time by either Party with respect to a default or other matter arising in connection with this Agreement shall not be deemed a waiver with respect to any subsequent default or matter. 18. NOTICES/APPROVALS All notices and approvals by either Party that are required under this Agreement, including invoices, must be in writing unless other means are specifically permitted, and must be signed by the person authorized to give such approvals and make such contracts for that Party. The persons authorized to give such notices and approvals and to make such contracts for the Parties shall, until changed as hereinafter provided, be as set forth in section 7 above. Each Party shall have the right at any time to change the person authorized to give such approvals and make such contracts by giving at least fifteen (15) days written notice to the other Party. When notice is given by mail, it shall be deemed served three (3) business days following deposit, postage prepaid in the United States mail. When notice is given by e-mail transmission, it shall be deemed served upon receipt of confirmation of transmission if transmitted during normal business hours or, if not transmitted during normal business hours, on the next business day following the e-mail transmission. 19. FORCE MAJEURE This Agreement shall be subject to all applicable federal, state and county and municipal laws, executive orders, ordinances, rules, regulations and acts, and this Agreement shall not be terminated, in whole or in part, nor shall the Parties hereto be held liable in damages, for failure to comply therewith, if compliance is prevented due to force majeure. The term "force majeure" as used herein shall mean: any act of God, including but not limited to, storms, floods, washouts, earthquakes, landslides, fires and lightning; acts of the public enemy; wars, blockage, insurrections, riots or other public disorders; lockouts, strikes or other labor disturbances, epidemics or quarantine regulations, freight embargoes or failures; exhaustion or unavailability or delays in delivery of any product, labor, fuel, service or material not the fault of the Parties; breakdown or failure of Parties' equipment; interference by a governmental entity; or any other event or condition beyond the reasonable control of the Parties. Flume will provide notice to Bozeman immediately upon becoming aware of any condition that adversely affects the ability of Flume to perform its obligations under this Agreement. 20. SEVERABILITY Should any part, paragraph, sentence, phrase, clause, or word of this Agreement for any reason be held illegal, inoperative, or invalid or if any exception to or limitation upon any general provision herein contained be held to be invalid or ineffective, the remainder shall nevertheless stand effective and valid as if this Agreement had been executed without the portion held to be invalid or ineffective. 21. JOINT PREPARATION The Parties shall be deemed to have jointly prepared this Agreement and no ambiguity herein shall be construed by or for or against any Party based on the identity of the author of this Agreement or any portion herein. 22. HEADINGS The headings appearing in this Agreement are inserted merely to facilitate reference and are not to be considered a part of this Agreement and in no way shall they affect the interpretation of any of the provisions of this Agreement. 23. COUNTERPARTS This Agreement may be executed in one or more counterparts, each of which will be deemed an original. Faxed signatures and countersignatures shall be deemed originals for all purposes and proper evidence of assent to this Agreement. The individuals executing this Agreement each represent and warrant to the other Party that he/she has full authority to execute this Agreement on behalf of his/her respective Party. 24. EXHIBITS The following exhibits are hereby incorporated in this Agreement and any changes made thereto shall be in a new updated Exhibit signed by authorized representatives of the Parties with a reference stating that the exhibit is subject to the terms and conditions of this Agreement: Exhibit A – Flume Product 214 Flume Water Monitoring Participation Agreement Page 4 56927276.v1 Exhibit B – The Bozeman Flume Distribution Program Exhibit C - Residential End Use Study Statement of Work IN WITNESS WHEREOF the Parties hereto have respectively caused this Agreement to be duly executed by the undersigned duly authorized representatives. City of Bozeman By____________________________ Chuck Winn Interim City Manager FLUME, INC. By____________________________ Joseph Fazio GM, Utility & Business Solutions 215 Flume Water Monitoring Participation Agreement Page 5 56927276.v1 EXHIBIT A: FLUME PRODUCT Project Intent: Bozeman requires a detailed understanding of end uses of water within its residential customer class to best inform water conservation program planning and ensure that projected demand reductions achievable through the implementation of various program measures are as accurate as possible. To achieve this, end use data will be gathered through the installation of Flume devices in a subset of homes (Exhibit B) and a detailed analysis of the end use data will be delivered to Bozeman in the form of an interactive dashboard (Exhibit C). This project will provide Bozeman with a better understanding of the potential for increasing efficiency in existing homes and demand reduction opportunities associated with new and future development. Description of FlumeTM Products and FlumeTM Services for Water Monitoring The FlumeTM Smart Water System enables homeowners to detect leaks and monitor water usage in real time across their entire property, both indoors and out. With Flume, homeowners gain unprecedented understanding of their water use, helping them conserve water, save money and protect their home from costly leaks. The Flume Smart Water System includes: ● The Flume Water Sensor simply straps onto an existing meter and measures flow rate to a tested accuracy of 99.9%. ● The Flume WiFi Bridge plugs into a power outlet and connects to a home WiFi network. It receives the signal from the Flume Water Sensor and sends this data securely into the cloud. ● The Flume App runs on an iOS or Android smartphone and accesses real-time water usage data from the cloud. It shows usage in real time right down to the minute, notifies users of existing leaks, and sends alerts when abnormal usage is detected. How It Works When water flows through a water meter, a magnetic disc spins inside of the meter. The rate at which this disc spins correlates directly to a water flow rate. The Flume Water Sensor measures this magnetic field from the meter and sends this information using Radio Frequency (RF) to the Flume Bridge. The Flume Application Water usage information is securely processed by the Flume Platform which delivers entire-property insights about customer’s water usage via the Flume App. Machine learning is employed to detect abnormal water usage and leaks, even when users are away from their homes. Flume application features: ● Basic Historical Usage Data (Month, Year) ● Monthly Budgets ● Last 24 hour usage viewing ● Flume Smart Leak Alerts ● Current Water Status (Whether water is running or not) ● Emergency Contacts (Set up leak notifications to go to friends/family when you are gone) 216 Flume Water Monitoring Participation Agreement Page 6 56927276.v1 ● Comparison Metrics for similar homes/properties ● Dedicated Support (Real time chat with help and leak assistance) ● Daily & Weekly Budgets ● Custom Leak Alerts (Set up any leak rules to match your specific home) ● Detailed Historical Usage Data (Hour, Minute) ● Real Time GPM ● Shared Access (Share access with friends, family, gardeners, plumbers) ● 15% off of Angi Plumbing Services ● Indoor v Outdoor Usage ● Integrations: Personal API Access, Orbit Integration, Alexa, Google The Utility Platform Flume can provide access to a utility dashboard that provides customer-specific water use information for customers who have purchased a device through the utility program. This dashboard displays customer specific information on all water users, including address, leaks, top water users, and more. Support The Flume Customer Support Team offers best-in-class service and support which is available between 7AM and 7PM PT on weekdays and 8AM to 5PM PT on weekends. Customers may contact the Flume Support Team at support@flumewater.com or through the chat feature built into the Flume App. 217 Flume Water Monitoring Participation Agreement Page 7 56927276.v1 EXHIBIT B: BOZEMAN FLUME DISTRIBUTION PROGRAM Program Overview ● Bozeman and Flume will jointly market the Flume device (system) distribution program to Bozeman’s customer base. Consideration will be given to ensure that devices are offered to customers in an equitable, fair manner that accounts for the age of the home so that the Bozeman Residential End Use Study (outlined in Exhibit C) yields meaningful results to achieve water conservation program goals. ● Customers will be directed to flumewater.com/bozeman to purchase their discounted Flume Smart Water Systems. ● Bozeman Customers will pay $25+tax+shipping for each Flume system at checkout. A portion of the device cost ($200) will be subsidized by Bozeman (normally $249). ● Flume will ship the systems directly to the customers to the address they provide. ● Customers will install their own devices when they are received. ● If customers have any questions or problems with their systems, they will contact Flume for support. ● Once the customer installs their device, Flume will refund $25 back to the customer’s credit card. Bozeman’s Responsibilities ● Bozeman agrees to market this program to its customer base. Emails are the most effective way to market this program. Flume can provide sample content for these emails and will share best practices for maximizing the effectiveness of this email campaign. Expect to distribute 25 Flume systems for each 1000 emails sent. ● Bozeman may also market the Flume system to its customer base using other means, such as: traditional mail, social media, Bozeman’s website, newspaper articles, press releases, bill inserts, newsletters, etc. ● Bozeman is hereby licensed to use Flume trademarks in association with such advertising provided trademarks are acknowledged in fine print as follows: “Flume and FlumeWater are registered trademarks of Flume, Inc. in the United States.” Flume may review such advertising and make suggestions for minor changes. If Flume determines that advertising will adversely impact its trademarks, Flume may retract Bozeman’s right to use such trademarks. ● Bozeman will direct customers to flumewater.com/bozeman to purchase discounted Flume systems. ● Bozeman will pay Flume for each system sold through the above site (see schedule below). Flume Responsibilities ● Flume will set up and administer a co-branded website at flumewater.com/bozeman. Bozeman customers will be directed to this site where they can purchase their discounted Flume systems. ● Before the launch of this program, Flume will host periodic meetings with Bozeman regarding the design of the site and any other program related details. ● Flume will provide all customer support for the end-user customers between 7AM and 7PM PT on weekdays and between 8AM and 5PM PT on weekends. Customers may contact Flume Support at support@flumewater.com or through the chat feature built into the Flume app. ● Flume will do its best to verify any suspicious orders with Bozeman before they are fulfilled. This will help prevent non-Bozeman customers from ordering systems through this special site. 218 Flume Water Monitoring Participation Agreement Page 8 56927276.v1 ● Once verified, Flume will ship systems directly to the customers. ● Flume will provide a no-cost return option for customers that are not able to install their systems after contacting Flume support. ● Flume will provide Bozeman with a complete list of their customers that have a Flume system upon request. ● Flume shall notify Bozeman in advance of any events held by Flume concerning the Program and will allow participation by Bozeman when appropriate. ● Flume will invoice Bozeman as defined below in the “Program Pricing” section. ● Once the customer installs their device, Flume will refund $25 back to the customer’s credit card. Customer Responsibilities ● During the purchase of their Flume system, customers will agree to a Participant Agreement that Bozeman will approve in writing. This Participant agreement will include but not be limited to authorizing Flume to share customer water usage data with Bozeman. ● Customers will be responsible for installing their Flume systems. Flume will provide customer support if there are any questions or problems. ● The customer will agree to the Flume End User License Agreement (EULA) when they install the Flume app. This EULA can be found at: https://flumewater.com/eula/ ● The customer will agree to the Flume Privacy Policy when they install the Flume app. This Privacy Policy can be found at: https://flumewater.com/privacy-policy/ Scope and Timing ● This program will only be available for Bozeman water customers. ● This program will be launched on a mutually agreeable date (tentatively in late 2024). Program Pricing Setup Costs There is normally a $2,500 setup fee for this program. This covers Flume’s expenses for project management, custom landing page (flumewater.com/bozeman), marketing support, etc. However, Flume will waive this fee because Bozeman agrees to market this program through an email campaign to their customers. Device Costs Bozeman will provide a $200 subsidy for each Flume sold. The customer will pay $25 + tax + shipping at checkout. Once installed, Flume will refund $25 to the customer’s credit card as an added incentive. After all refunds, the customer’s out-of-pocket cost will be $0 + tax + shipping. Flume Device Bozeman Subsidy Customer Pays Flume refunds Customer after Install $200 $25 + tax + shipping $25 Flume will provide 10 Flume devices free of charge to Bozeman to be installed in multi-household properties. 219 Flume Water Monitoring Participation Agreement Page 9 56927276.v1 Utility Portal The Flume Utility Platform is designed to make the most of Bozeman’s network of Flume devices by alerting efficiency and/or customer service teams to leaks and high water use, while at the same time giving detailed insights on aggregate use across the service area. The utility platform also allows for easy administration of the rebate program. The cost of the Flume utility portal is $1,188.00 per year for up to 100 Flume devices. After that, the cost is $0.99 per Flume device per month. The utility portal is not required for the devices to function as intended for the customer. Flume Device Distribution Program Payment Schedule and Cost At the beginning of the program, Flume will invoice Bozeman for the following: Description Qty Retail unit price Discounted unit price Total price FLUME SMART WATER SYSTEMS (SINGLE HOUSEHOLDS) 100 $200.00 $20,000.00 FLUME UTILITY PORTAL (1 YEAR SUBSCRIPTION)** 100 $11.88 $11.88 $1,188.00 UTILITY PROGRAM SET UP FEE 1 $2,500.00 $0.00 $0.00 Notes: ** Utility Portal is $.99 per device/per month (min 100 devices) Subtotal $21,188.00 Tax Exempt $0.00 Shipping $0.00 $21,188.00 If Bozeman is unsuccessful in deploying 100 Flume devices, Flume will reimburse Bozeman for each device paid for but not deployed. 220 Flume Water Monitoring Participation Agreement Page 10 56927276.v1 EXHIBIT C: CITY OF BOZEMAN RESIDENTIAL END USE STUDY Project Overview Flume will provide Bozeman with a comprehensive End Use Analysis report that analyzes the following: ● Average indoor/outdoor GPCD ● Irrigation trends (and how they relate to weather) ● How these key consumption metrics compare with similar neighboring metro areas ● How home value, home size, home age and lot size affect water consumption ● Demographics of Flume users (based on home value, home age and lot size) ● Analysis of Leakage (flow rate, duration, and frequency) ● Water consumption by fixture (toilets, showers, irrigation, etc.) This analysis will include all Flume devices installed throughout Bozeman, not just those that were purchased through this program. There are currently 4 active Flume sensors installed in single households throughout the City of Bozeman (Bozeman). The following map shows where these devices are installed. In order to perform a proper analysis of water use in Bozeman, the sample size of Flumes in the city need to increase to at least 100 devices. In addition, Flume recommends strategically placing 10 Flumes in multi-household properties, which will be provided to Bozeman free of charge. 221 Flume Water Monitoring Participation Agreement Page 11 56927276.v1 Bozeman will provide Flume with anonymized historical billing data by household, landcover data, and other attribute data available from the Department of Revenue to support this analysis. Flume will first support Bozeman in the distribution of 100 Flumes to single households through a distribution program, as outlined in Exhibit B. Next, Flume will analyze the flow data from these installed devices and, once an adequate amount of data has been collected, will deliver a comprehensive Residential Water Use Study to Bozeman, with a target delivery date in early 2026. Summary Bozeman will provide the following data to Flume: • 3-5 years of billed consumption data for active single household properties, • 3-5 years of billed consumption data for active multi-household properties, • Department of Revenue parcel information including year built and unit count, and • City of Bozeman landcover data including turfgrass area per parcel. Flume will analyze indoor and outdoor use using a combination of datasets provided by Bozeman and data from households that are equipped with Flume devices. Pairing these data sets allows the Flume team to compare the water use of households with and without a Flume sensor. Meter data from properties with and without a Flume sensor will be used to assess differences in water use and to develop appropriate methods to address any bias in the Flume sample and to make adjustments to the Flume end use data. Flume will then deliver an interactive dashboard with the results of this analysis. This dashboard will provide key results such as: Analysis of All Homes ● Demographics of homes with and without a Flume ● Annual and monthly billed consumption of homes with and without a Flume ● Annual and monthly indoor and outdoor use, homes with and without a Flume Flume Data Analysis ● Indoor water use trends ● Outdoor water use trends ● Outdoor use, ET, and precipitation ● Total per household water use trends ● Analysis of the relationship between water use and the value, age, size and lot size of the home ● Analysis of indoor end uses of water including: toilets, showers, clothes washers, dishwashers, leaks, water softeners, and other misc. indoor uses Report Details The following charts will be available in the dashboard. Study Participant Demographics and Household Characteristics Charts will be provided to analyze each of the following: 222 Flume Water Monitoring Participation Agreement Page 12 56927276.v1 ● Number of Residents per Household ● Number of Households with a Pool ● Number of Bathrooms per Household ● Irrigation Type (i.e. Sprinklers, Drip, etc.) ● Irrigation Frequency A distribution graph will be provided for each of the following: ● Home Value ● Home Age ● Lot Size ● Home Size ● Irrigable area, based on data provided by Bozeman A map will also be provided that shows the geographic distribution of all study participants. Indoor Water Use The following charts and analysis will be provided regarding Indoor Water use: Horizontal Axis Vertical Axis Type of Chart 1. Average Monthly Indoor Per Capita Use Monthly Indoor GPCD Line 2. Range of Average Monthly Indoor Per Capita Use Monthly Indoor GPCD Bar & Whisker 3. Average Indoor Per Capita Use per Week Weekly Indoor GPCD Line 4. Range of Average Indoor Per Capita Use per Week Weekly Indoor GPCD Bar & Whisker 5. Average Indoor Per Capita Use by Day of Week Daily Indoor GPCD Line 6. Range of Average Indoor Per Capita Use by Day of Week Daily Indoor GPCD Bar & Whisker 7. Indoor Per Capita Hourly Use Daily & Hourly Indoor GPCD Line 223 Flume Water Monitoring Participation Agreement Page 13 56927276.v1 Image 2: Example graph of the range of indoor per capita use by week. Outdoor Water Use The following charts and analysis will be provided regarding outdoor water use: Horizontal Axis Vertical Axis Type of Chart 1. Average Monthly Outdoor Household Use Monthly Outdoor GPHD Line 2. Range of Average Monthly Outdoor Household Use Monthly Outdoor GPHD Bar & Whisker 3. Average Outdoor Household Use per Week Weekly Outdoor GPHD Line 4. Range of Average Outdoor Household Use per Week Weekly Outdoor GPHD Bar & Whisker 5. Average Outdoor Household Use by Day of Week Daily Outdoor GPHD Line 6. Range of Average Outdoor Household Use by Day of Week Daily Outdoor GPHD Bar & Whisker 7. Outdoor Household Hourly Use Daily & Hourly Outdoor GPHD Line 8. Outdoor Household Use, Precipitation and ETo Weekly Outdoor GPHD, Precipitation, ETo Multi Line + Bar 9. Outdoor Household Use and Max Temp Weekly Outdoor GPHD, Max Temp Multi Line 10. Outdoor Household Use and Irrigable Area Weekly TBD TBD 224 Flume Water Monitoring Participation Agreement Page 14 56927276.v1 Image 3: Example graph of the average outdoor use by day of the week. Image 4: Example graph of outdoor household use, precipitation and ETo. Total Water Use The following charts will be provided regarding Total Household Water use: Horizontal Axis Vertical Axis Type of Chart 225 Flume Water Monitoring Participation Agreement Page 15 56927276.v1 1. Average Monthly Household Use Monthly GPHD Line 2. Range of Average Monthly Household Use Monthly GPHD Bar & Whisker 3. Comparison of Indoor, Outdoor and Household Monthly Use Monthly GPHD Multiple Line 4. Average Household Use per Week Weekly GPHD Line 5. Range of Average Household Use per Week Weekly GPHD Bar & Whisker 6. Average Household Use by Day of Week Daily GPHD Line 7. Range Average Household Use by Day of Week Daily GPHD Bar & Whisker 8. Comparison of Indoor, Outdoor and Household by Day of Week Daily GPHD Multiple Line 9. Household Hourly Use Daily & Hourly GPHH Line 10. Comparison of Indoor, Outdoor and Total Household Hourly Use Daily & Hourly GPHH Multiple Line 11. Table that details percentage of water used indoors and outdoors Monthly GPHD Table Image 5: Example chart of the comparison of indoor, outdoor, and total household hourly use. 226 Flume Water Monitoring Participation Agreement Page 16 56927276.v1 Demographic Analysis of Residential Water Use This portion of the study will examine the effect of home value, age, size and lot size on indoor and outdoor water use. The following charts will be provided: Horizontal Axis Vertical Axis Type of Chart 1. Indoor GPCD and Outdoor GPHD by Value of Home Home Value Indoor GPCD and Outdoor GPHD Scatter Plot 2. Indoor GPCD and Outdoor GPHD by Age of Home Age of Home Indoor GPCD and Outdoor GPHD Scatter Plot 3. Indoor GPCD and Outdoor GPHD by Home Size Size of Home Indoor GPCD and Outdoor GPHD Scatter Plot 4. Indoor GPCD and Outdoor GPHD by Lot Size Lot Size Indoor GPCD and Outdoor GPHD Scatter Plot Image 6: Example chart of water use by lot size. Indoor End Use Analysis This portion of the report will analyze the volume of water that is used by each indoor fixture. The following end use categories will be disaggregated for each participating home: toilets, showers, clothes washers, dishwashers, leaks, water softeners, and other misc. indoor uses. 227 Flume Water Monitoring Participation Agreement Page 17 56927276.v1 Image 7: Example indoor end use analysis chart. This portion of the report will also provide the following data for each indoor fixture: ● Volume ● Flow Rate ● Duration ● Frequency of use ● Daily per capita use 228 Flume Water Monitoring Participation Agreement Page 18 56927276.v1 Image 8: Example histogram of total toilet flush volume. Image 9: Example histogram of shower flow rate (gpm). Residential End Use Study Payment Schedule and Cost Flume will deliver a licensed software dashboard (“FlumeTM Dashboard”) to Bozeman once an adequate amount of data has been collected, with a target delivery date in early 2026. 229 Flume Water Monitoring Participation Agreement Page 19 56927276.v1 There will be a fixed cost of $25,000 for the Flume Dashboard. Flume will invoice Bozeman for this dashboard upon delivery. Description Qty Price RESIDENTIAL END USE STUDY DASHBOARD 1 $25,000.00 Total price: $25,000.00 230 Memorandum REPORT TO:City Commission FROM:Tom Rogers, Senior Planner Chris Saunders, Community Development Manager Erin George, Interim Director of Community Development SUBJECT:Resolution 5646, Adoption of the 2320 West Babcock Annexation, Annexing Approximately 2.705 acres and Adjacent Rights-of-Way, Application 24106 MEETING DATE:November 26, 2024 AGENDA ITEM TYPE:Resolution RECOMMENDATION:Adopt Resolution 5646. 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 24106 on July 16, 2024, to annex 2.705 acres and establish an initial zoning designation of REMU, Residential Emphasis Mixed-Use District, subject to terms of annexation and contingencies for zoning. Final documents and easements were received by the Applicant on October 6, 2024. A signed annexation agreement was received on October 2, 2024 with final Engineering approval on October 24, 2024. The Commission unanimously to approve the annexation. The Commission unanimously approved the zone map amendment for the property. The property is addressed at 2320 West Babcock. The property hosts a single residential structure and accessory structures. The zoning regulations would only allow a two-household dwelling and home occupations on the site. No commercial or more than two-household dwelling is permitted. The property is bisected by the West Fork of Catron Creek which also serves as a conveyance facility for Farmers Canal and Middle Creek Ditch Company. The proposed annexation would bring in additional right of way to build out sections of West Babcock Street. The Future Land Use Map in the Bozeman Community Plan (BCP) 2020 designates the property as “Urban Neighborhood” which includes both the REMU district as implementing zoning districts. Nearby municipal zoning 231 includes R-3, R-O, and B-2. The subject properties are within the urban planning and municipal service area for the City. 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: 24106 2320 W Babcock Resolution 5646.pdf 1 - 2320 West Babcock Street - Annexation Map.pdf 24106 2320 W Babcock Annexation Agreement.pdf Report compiled on: November 8, 2024 232 Version April 2020 Page 1 of 3 RESOLUTION 5646 A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF BOZEMAN, MONTANA, PROVIDING FOR THE ANNEXATION OF CERTAIN CONTIGUOUS TRACTS OF LAND, HEREINAFTER DESCRIBED, TO THE CORPORATE LIMITS OF THE CITY OF BOZEMAN AND THE EXTENSION OF THE BOUNDARIES OF THE CITY OF BOZEMAN SO AS TO INCLUDE SAID CONTIGUOUS TRACTS, KNOWN AS THE 2320 WEST BABCOCK ANNEXATION, APPLICATION 24106. WHEREAS, the City of Bozeman received a petition for annexation from Luke Welborn requesting the City Commission to extend the boundaries of the City of Bozeman so as to include an area of land containing approximately 2.705 acres, described herein; and WHEREAS, an annexation staff report was prepared in accordance with the Commission's goals and policies for annexation and was presented to the Commission on July 16, 2024; and WHEREAS, a public meeting on said annexation petition was duly noticed and held on July 16, 2024; and WHEREAS, the City received no written protest from real property owners of the area to be annexed; and WHEREAS, on October 29, 2024, the Commission received the executed annexation agreement addressing all recommended terms of annexation; and WHEREAS, the provision of available services, including, but not limited to, streets, rights-of-way, easements, water rights or cash-in-lieu, waivers of protest against creation of SID's, and water and sewer hookup fees, to said contiguous tracts as described is the subject of a written agreement between the City and the Landowner; and WHEREAS, the Bozeman City Commission hereby finds that the annexation of this contiguous tract is in the best interests of the City of Bozeman and the inhabitants/owners thereof. 233 Version April 2020 Page 2 of 3 NOW, THEREFORE, BE IT RESOLVED by the City Commission of the City of Bozeman, Montana, to wit: Section 1 That it is hereby declared that, pursuant to Title 7, Chapter 2, Part 46, Mont. Codes Ann., the following-described property, which is contiguous to the municipal boundaries of the City of Bozeman, be annexed to the City of Bozeman and that the boundaries of said City shall be extended so as to embrace and include such approximately 2.705 acres, to wit: Legal Description An area of land comprised described as follows: Tracts of land being the parcel shown per Film 24, Page 425, and the parcel conveyed on Film 24, Page 426 located in the SE 1/4 of Section 11, Township 2 South, Range 5 East, P.M.M., Gallant County, MT, more particularly described as follows; Beginning at a calculated point on the center of section line of said Section 11 from which a Brass cap in a monument box being the center one-quarter corner of said Section 11, bears S 89°31'53" W a distance of 600.25 feet; thence along said center of section line N 89°31'53" E, a distance of 389.82 feet to a calculated position; thence leaving said center of section line S 00°05'03" W, a distance of 312.81 feet to a 2.5” Swart Brass Cap; thence S 89°18'24" W, a distance of 230.39 feet to a calculated position; thence N 00°09'32" E, a distance of 29.08 feet to a 2.5” Swart Brass Cap; thence S 89°18'43" W, a distance of 161.14 feet to a calculated position; thence N 00°25'01" E, a distance of 285.27 feet to the Point of Beginning, containing 2.705 acres more or less. SUBJECT to all easements of record or apparent from visual inspection of the property. All as depicted on the 2320 WEST BABCOCK Annexation Map. 234 Version April 2020 Page 3 of 3 Section 2 This Resolution is effective upon recording with the Gallatin County Clerk and Recorder. PASSED, ADOPTED, AND APPROVED by the City Commission of the City of Bozeman, Montana, at a regular session thereof held on the ___th day of _____________, 2024. ___________________________________ TERENCE CUNNINGHAM Mayor ATTEST: ___________________________________ MIKE MAAS City Clerk APPROVED AS TO FORM: ___________________________________ GREG SULLIVAN City Attorney 235 REMU 236 2320 WEST BABCOCK Annexation Agreement, Application 24106 1 Inter-office Original to: City of Bozeman City Clerk PO Box 1230 Bozeman, MT 549771-1230 2320 WEST BABCOCK ANNEXATION AGREEMENT THIS AGREEMENT made and entered into this ______ day of __________________, 2024, by and between the CITY OF BOZEMAN, a self-governing municipal corporation organized and existing under its Charter and the laws of the State of Montana with offices at 121 N. Rouse Avenue, Bozeman, Montana 59771-0640, hereinafter referred to as "City", and Luke Welborn, PO Box 6507, Bozeman, MT 59771, hereinafter referred to as "Landowner". WITNESSETH: WHEREAS, Landowner is owner in fee of a tract of certain real property, hereinafter referred to as the 2320 WEST BABCOCK ANNEXATION situated in Gallatin County, Montana, and more particularly described as follows: An area of land comprised described as follows: Tracts of land being the parcel shown per Film 24, Page 425, and the parcel conveyed on Film 24, Page 426 located in the SE 1/4 of Section 11, Township 2 South, Range 5 East, P.M.M., Gallant County, MT, more particularly described as follows; 237 2320 WEST BABCOCK Annexation Agreement, Application 24106 2 Beginning at a calculated point on the center of section line of said Section 11 from which a Brass cap in a monument box being the center one-quarter corner of said Section 11, bears S 89°31'53" W a distance of 600.25 feet; thence along said center of section line N 89°31'53" E, a distance of 389.82 feet to a calculated position; thence leaving said center of section line S 00°05'03" W, a distance of 312.81 feet to a 2.5” Swart Brass Cap; thence S 89°18'24" W, a distance of 230.39 feet to a calculated position; thence N 00°09'32" E, a distance of 29.08 feet to a 2.5” Swart Brass Cap; thence S 89°18'43" W, a distance of 161.14 feet to a calculated position; thence N 00°25'01" E, a distance of 285.27 feet to the Point of Beginning, containing 2.705 acres more or less. SUBJECT to all easements of record or apparent from visual inspection of the property. All as depicted on the 2320 WEST BABCOCK Annexation Map. WHEREAS, the Landowner petitioned the City for annexation to the City of the 2320 WEST BABCOCK ANNEXATION; and WHEREAS, the 2320 WEST BABCOCK ANNEXATION is not within the corporate limits of the City or other municipality and may therefore be annexed to the City in accordance with the provisions of this Agreement and Title 7, Chapter 2, Part 46, Mont. Code Ann.; and WHEREAS, all parties recognize the annexation of the 2320 WEST BABCOCK ANNEXATION pursuant to Section 7-2-4601, et seq., Mont. Code Ann. will allow the 2320 WEST BABCOCK ANNEXATION to connect to and utilize City services, including municipal water and sewer service, parks and recreation, fire and police services, and the City’s transportation system; and WHEREAS, Section 7-2-4610, Mont. Code Ann. provides that a municipality and landowner can agree to the provisions of services to the area to be annexed; and 238 2320 WEST BABCOCK Annexation Agreement, Application 24106 3 WHEREAS, the parties recognize additional development on the 2320 WEST BABCOCK ANNEXATION will impact area parks, recreation, transportation, police, and fire services, and that future improvements may require additional public infrastructure street improvements including transportation for traffic circulation and the provisions of parks, recreation, police, and fire services; and WHEREAS, the Landowner finds this Agreement will provide for the most satisfactory and dependable water supply and sewer supply or service, and provide transportation, parks, recreation, police and fire service for development of the 2320 WEST BABCOCK ANNEXATION; and WHEREAS, the parties have determined that it is in the best interests of the City and Landowner, and in furtherance of the public health, safety and welfare of the community to enter into and implement this Agreement. WITNES S ETH : IN CONSIDERATION of the mutual covenants and agreements herein contained, the parties hereto agree as follows: 1. Recitals The above recitals are true and correct. 2. Annexation The Landowner filed an application for annexation of the 2320 WEST BABCOCK ANNEXATION with the City on February 27, 2024. By execution of this Agreement, the City manifests its intent to annex the 2320 WEST BABCOCK ANNEXATION tract pursuant to the terms and conditions of this Agreement. Subject to the provisions of Title 7, Chapter 2, Part 46, 239 2320 WEST BABCOCK Annexation Agreement, Application 24106 4 Mont. Code Ann. the City shall, upon execution of this Agreement, adopt a Resolution of Annexation of the 2320 WEST BABCOCK ANNEXATION. Further, upon the execution of this Agreement, the Landowner shall do all things required by this Agreement and all things necessary and proper to aid and assist the City in carrying out the terms, conditions and provisions of this Agreement and to effect the annexation of the 2320 WEST BABCOCK ANNEXATION. 3. Services Provided The City will, upon annexation, make available to the 2320 WEST BABCOCK ANNEXATION existing City services only to the extent currently available, or as provided in this Agreement. 4. Municipal Water Service Defined The term "municipal water service" as is used in this agreement shall be the service which is supplied by the City in accordance with Chapter 40, Article 2, Bozeman Municipal Code, as amended, as well as any other terms and conditions which apply to the City's provision of municipal water service but does not include the extension of lines or construction of necessary improvements at any cost to the City for delivery of water to and within the 2320 WEST BABCOCK ANNEXATION. Nothing in this Agreement shall obligate the City to pay for right- of-way acquisition, engineering, construction, and other costs for the delivery of water to or within the 2320 WEST BABCOCK ANNEXATION to include, but not limited to, any impact fees, hook- up, connection, or development charges which have been or may be established by the City. 5. Municipal Sewer Service Defined The term "municipal sewer service" as is used in this Agreement shall be the service which is supplied by the City in accordance with Chapter 40, Article 3, Bozeman Municipal Code, as amended, as well as any other terms and conditions which apply to the City's provision of this 240 2320 WEST BABCOCK Annexation Agreement, Application 24106 5 service but does not include the extension of lines or construction of necessary improvements at any cost to the City for collection of sewage at and within the 2320 WEST BABCOCK ANNEXATION. Nothing in this Agreement shall obligate the City to pay for right-of-way acquisition, engineering, construction, and other costs for the collection of sewage services to or within the 2320 WEST BABCOCK ANNEXATION to include, but not limited to, any impact fees, hookup, connection, or development charges which may be established by the City. 6. Water Rights The Landowner specifically recognizes and agrees the Landowner must provide water rights or cash in-lieu of water rights upon further development or subdivision of the property in accordance with Section 38.410.130, Bozeman Municipal Code. The City will calculate the amount of water rights or cash-in-lieu thereof due at the time of further development or subdivision of the property based on the annual demand for volume of water the development will require multiplied by the most current annual unit price in effect on the date the water rights are transferred or payment-in-lieu of water rights is to be made to the City. As such, the Landowner acknowledges that the rates for cash in-lieu of water rights may increase over time as established by Resolution of the City Commission. The applicant must perform a water rights search to determine if any exist for this property. The Landowner must transfer any water rights that exist for this property to the City of Bozeman prior to development that the City of Bozeman determines are useful for City purposes. If insufficient water rights exist, the Landowner must pay cash in lieu of water rights, in an amount determined by the Director of Public Utilities, prior to development. 7. Comprehensive Water and Wastewater Design Report Prior to future development of the property the City may require the Landowner to have prepared by a Professional Engineer, at Landowner’s sole expense, a comprehensive design report 241 2320 WEST BABCOCK Annexation Agreement, Application 24106 6 evaluating existing capacity of sewer and water utilities in the area. The report must include hydraulic evaluations of each utility for both existing and post-development demands, and the report findings must demonstrate adequate capacity to serve the full development of the land. If adequate infrastructure capacity is not available for the proposed development, the report must identify water or wastewater system improvements necessary for the proposed development. If improvements to this water or wastewater system are necessary, the Landowner agrees prior to development of the 2320 WEST BABCOCK ANNEXATION to complete, at Landowner’s expense, the necessary system improvements to serve the proposed development. 8. Future Development Limitations The Landowner shall be responsible for installing all facilities required to provide full municipal services to the property in accordance with the City’s Infrastructure Master Plans and all City regulations, policies and guidelines that may be in effect at the time of any future development. Thus, Landowner understands and agrees Landowner has no right, either granted or implied, for it to further develop any of the 2320 WEST BABCOCK ANNEXATION until it is verified by the City that the necessary municipal services, including but not limited to police and fire protection, parks and recreation, transportation, and sewer and water capacity, are available to all or a portion of the 2320 WEST BABCOCK ANNEXATION. Notice is thus provided to the Landowner that prior to additional development of the property, the Landowner will be solely responsible for installing, at Landowner’s sole expense, any facilities or infrastructure required to provide full municipal services to the 2320 WEST BABCOCK ANNEXATION in accordance with the City’s infrastructure plans, adopted Growth Policies/Community Plans, and all other city regulations, policies and guidelines that may be in effect at the time of development. 242 2320 WEST BABCOCK Annexation Agreement, Application 24106 7 9. Stormwater Master Plan Landowner understands and agrees a Stormwater Master Plan for the 2320 WEST BABCOCK ANNEXATION for a system designed to remove solids, oils, grease, and other pollutants from the runoff from public streets and other impermeable surfaces may be required to be provided to and approved by the City Engineer at the time of any future development. The plan must demonstrate that adequate treatment of runoff from public streets, other impermeable surfaces, and all future lots will be achieved by providing spot elevations, flow direction arrows, detention and/or retention basin details (including basin sizing calculations and basin typical sections), outlet structure details, and culvert capacity calculations. The plan must also locate and provide easements for adequate drainage ways within the 2320 WEST BABCOCK ANNEXATION to transport treated runoff to the stormwater receiving channel. The plan shall include site grading and elevation information, typical stormwater detention/retention basin and discharge structure details, basin sizing calculations, and stormwater maintenance plan. Landowner recognizes the City may require such Stormwater Master Plan to be implemented in all or part as a condition of approval of development of the 2320 WEST BABCOCK ANNEXATION. 10. Waiver of Right-to-Protest Special Districts A. Landowner shall execute a Waiver of Right-to-Protest Creation of Special Districts (SID) or Special Improvement Districts for street and transportation improvements including design and engineering, paving and subsurface improvements, curb and gutter, sidewalk and stormwater drainage facilities, and fiber optic conduit for the following streets identified by the Development Review Committee for: 243 2320 WEST BABCOCK Annexation Agreement, Application 24106 8 a. Street improvements to West Babcock Street between Fowler Street to Main Street including lighting, signalization, paving, curb/gutter, sidewalk, and storm drainage. The Landowner agrees such SID will provide a mechanism for the fair and equitable assessment of construction and maintenance costs for such improvements. The waiver is attached hereto as Exhibit “A” and is hereby incorporated in and made a part of this Agreement. B. Landowner agrees that in the event a special district or an SID is not utilized for the completion of these improvements as described in subsection A above, the Landowner shall participate in an alternative financing method for the completion of the improvements on a fair share, proportionate basis as determined by the City on the basis of the square footage of property, taxable valuation of the property, traffic contribution from the development or a combination thereof. C. Landowner understands and agrees that the City will choose creation of a SID or special district or an alternative financing method for the completion of the improvements and may use either financing option at any time. 11. Public Street and Utility Easement The Landowner understands and agrees that a public street and utility easement must be provided for delivery of municipal service with future development and such easement shall be provided at the Landowner’s sole expense. A right of way for West Babcock Street, classified as a Collector in the Bozeman Transportation Master Plan (TMP), has a minimum right-of-way ROW width of 90 feet. The applicant must provide their respective West Babcock Street ROW where West Babcock Street is adjacent to or crosses the property prior to the adoption of Resolution of Annexation. The Landowner understands and agrees that a public street and utility easement must be provided concurrent with signature of this agreement for West Babcock Street is adjacent to or crosses the 244 2320 WEST BABCOCK Annexation Agreement, Application 24106 9 2320 WEST BABCOCK ANNEXATION to include half of the 90-foot required right of way for a collector adjacent to the 2320 WEST BABCOCK ANNEXATION. The Landowner, at its sole expense, has created such easements in a location and form agreeable to the City and the easement will be filed at the Gallatin County Clerk and Recorder’s Office. A public street and utility easement must be provided prior to the adoption of Resolution of Annexation. The Landowner understands and agrees that a public street and utility easement must be provided for delivery of municipal service with future development and such easement shall be provided at the Landowner’s sole expense. The Landowner further understands and agrees that additional public street and utility easements may be required for delivery of municipal services with future development, and in such event, the easement shall be provided at the Landowner’s sole expense. 12. Street Improvements The Landowner understands and agrees that at the time of future development the portion of the 2320 WEST BABCOCK ANNEXATION and its related transportation infrastructure fronting the 2320 WEST BABCOCK ANNEXATION this property must be improved to a City standard at Landowner’s expense. 13. Impact Fees Landowner acknowledges that annexation and development of their property will impact the City’s existing street, water and sewer infrastructure, and the City’s fire service. As approved by the City, the Landowner and its successors must pay: A) Fire impact fees equal to the amount per Chpt. 2, Art. 6. Div. 9 BMC, or as amended, at time of issuance of a building permit. B) Transportation impact fees equal to the amount per Chpt. 2, Art. 6. Div. 9 BMC, or as amended, at time of issuance of a building permit. C) Water impact fees as required by Chpt. 2, Art. 6. Div. 9 BMC, or as amended, at 245 2320 WEST BABCOCK Annexation Agreement, Application 24106 10 the time of connection to city water services. D) Sewer impact fees as required by Chpt. 2, Art. 6. Div. 9 BMC, or as amended, at the time of connection to city sewer services. The amount of impact fee the Landowner or its successors pay for connection to the city’s water and sewer services, if any, shall be calculated based on the provisions of the Bozeman Municipal Code, as amended, in effect at the time of application for a permit to connect. The amount of street or fire impact fees to be paid, if any, shall be calculated based on the provisions of the Bozeman Municipal Code, as amended, in effect at the time an application for building permit is submitted. Landowner further understands and agrees that any improvements, either on-site or off- site, necessary to provide connection of the 2320 WEST BABCOCK ANNEXATION municipal services and which are wholly attributable to the property as determined exclusively by the City are considered “project related improvements” as defined in Chapter 2, Article 6, Division 9, Bozeman Municipal Code, as amended, and as such, are not eligible for impact fee credits. If Landowner defaults on this condition at the time such is to be performed, and should default not be remedied or corrected within thirty (30) days after written notice by City to the Landowner and Landowner/Developer of such default, City may at its option: A) Declare the amounts owing for impact fees immediately due and payable and City shall have the right and privilege to take legal action against Landowners for the collection of such sum, including the entry of any judgment. In addition, the City may, at its option, enforce payment of such amount by levying an assessment on the property. B) Elect any other remedy available to City under the laws of the State of Montana. 246 2320 WEST BABCOCK Annexation Agreement, Application 24106 11 14. Charges and Assessments Landowner understands and agrees that after this Agreement is recorded the 2320 WEST BABCOCK ANNEXATION will be subject to City assessments for arterial and collector streets, street maintenance, and tree maintenance on the same basis as all other properties in the City. 15. Additional Terms The parties recognize these documents must be filed and of record with the Gallatin County Clerk and Recorder prior to the sale of any land within the 2320 WEST BABCOCK ANNEXATION. The parties further agree that the City may file these documents at any time. 16. Governing Law and Venue This agreement shall be construed under and governed by the laws of the state of Montana. In the event of litigation, venue is in the Eighteenth Judicial District Court, in and for County of Gallatin, State of Montana. 17. Attorney’s Fees In the event it becomes necessary for either party to this Agreement to retain an attorney to enforce any of the terms or conditions of this Agreement, then the prevailing party shall be entitled to reasonable attorney’s fees and costs, to include the salary and costs of in-house counsel including City Attorney. 18. Waiver No waiver by either party of any breach of any term, covenant or agreement shall be deemed a waiver of the same or any subsequent breach of this same or any other term, covenant or agreement. No covenant, term or agreement shall be deemed waived by either party unless waived in writing. 247 2320 WEST BABCOCK Annexation Agreement, Application 24106 12 19. Invalid Provision The invalidity or unenforceability of any provision of this agreement shall not affect the other provisions hereof, and this Agreement shall be construed in all respects as if such invalid or unenforceable provision were omitted. 20. Modifications or Alterations No modifications or amendment of this Agreement shall be valid unless evidenced by a writing signed by the parties hereto. 21. No Assignment It is expressly agreed that the Landowner and/or Landowner/Developer shall not assign this Agreement in whole or in part without prior written consent of the City. 22. Successors This Agreement shall be binding upon, inure to the benefit of and be enforceable by the parties hereto and their respective heirs, successors and assigns and specifically to any subsequent purchaser of the annexed property. 23. Covenants to Run with the Land The parties intend that the terms of this Agreement shall benefit the 2320 WEST BABCOCK ANNEXATION and shall be covenants running with the land and shall not expire at their deaths or upon transfer of ownership of the property. The undersigned Landowner affirms that they have authority to enter into this Agreement and to bind themselves to this Agreement. 248 2320 WEST BABCOCK Annexation Agreement, Application 24106 13 IN WITNESS WHEREOF, the parties hereto have caused this agreement to be executed the day and year first above written. DATED this _____ day of _________________, 2024. LANDOWNER __________________________________________ By: Luke Welborn STATE OF MONTANA ) :ss COUNTY OF GALLATIN ) On this ________ day of _______________, 2024, before me, the undersigned, a Notary Public for the State of Montana, personally appeared Luke Welborn and acknowledged this record. IN WITNESS WHEREOF, I have hereunto set my hand and affixed my official seal the day and year first above written. (SEAL) _________________________________________ (Printed Name Here) Notary Public for the State of _________ Residing at _______________________ My Commission Expires:____________ (Use 4 digits for expiration year) 249 2320 WEST BABCOCK Annexation Agreement, Application 24106 14 CITY OF BOZEMAN ____________________________________ By: Chuck Winn, Interim City Manager ATTEST: ________________________________ City Clerk STATE OF MONTANA ) :ss COUNTY OF GALLATIN ) On this _____ day of _____________________________, 2024, before me, a Notary Public for the state of Montana, personally appeared Chuck Winn and Mike Maas, known to me to the persons described in and who executed the foregoing instrument as Interim City Manager and City Clerk respectively, of the City of Bozeman, whose names are subscribed to the within instrument and acknowledged to me that they executed the same for and on behalf of said City. IN WITNESS WHEREOF, I have hereunto set my hand and affixed my official seal the day and year first above written. (SEAL) _________________________________________ (Printed Name Here) Notary Public for the State of Montana Residing at _______________________ My Commission Expires:____________ (Use 4 digits for expiration year) 250 2320 WEST BABCOCK Annexation Agreement, Application 24106 15 EXHIBIT “A” WAIVER OF RIGHT TO PROTEST CREATION OF SPECIAL DISTRICTS OR SPECIAL IMPROVEMENT DISTRICTS 2320 WEST BABCOCK ANNEXATION The undersigned owner of the real property situated in the County of Gallatin, State of Montana, and more particularly described as follows: Tracts of land being the parcel shown per Film 24, Page 425, and the parcel conveyed on Film 24, Page 426 located in the SE 1/4 of Section 11, Township 2 South, Range 5 East, P.M.M., Gallatin County, MT, more particularly described as follows; Beginning at a calculated point on the center of section line of said Section 11 from which a Brass cap in a monument box being the center one-quarter corner of said Section 11, bears S 89°31'53" W a distance of 600.25 feet; thence along said center of section line N 89°31'53" E, a distance of 389.82 feet to a calculated position; thence leaving said center of section line S 00°05'03" W, a distance of 312.81 feet to a 2.5” Swart Brass Cap; thence S 89°18'24" W, a distance of 230.39 feet to a calculated position; thence N 00°09'32" E, a distance of 29.08 feet to a 2.5” Swart Brass Cap; thence S 89°18'43" W, a distance of 161.14 feet to a calculated position; thence N 00°25'01" E, a distance of 285.27 feet to the Point of Beginning, containing 2.705 acres more or less. Subject to all easements of record or apparent from visual inspection of the property. IN CONSIDERATION of receiving approval for annexation of the subject property from the City of Bozeman, along with accompanying rights and privileges and for other and valuable consideration, the receipt of which is hereby acknowledged, and in recognition of the transportation impacts to: a. Street improvements to West Babcock Street adjacent to or crosses the property including lighting, signalization, paving, curb/gutter, sidewalk, and storm drainage. 251 2320 WEST BABCOCK Annexation Agreement, Application 24106 16 following improvements: for street and transportation improvements including design and engineering, paving and subsurface improvements, curb and gutter, sidewalk, stormwater drainage facilities, broadband, and other dry utilities for the aforementioned street improvements. Landowner agrees the City has the sole right to control the design and construction of such improvements and may include any of the above components and others necessary to ensure such improvements comply with all adopted City infrastructure plans and requirements. Further, the Landowner waives its right or to make any written protest against the size or area or creation of the district be assessed in response to a duly passed resolution of intention to create one or more special improvement districts which would include the above-described property. In the event a special district or special improvement district is not utilized for the completion of these improvements, the developer agrees to participate in an alternate financing method for the completion of said improvements on a fair share, proportionate basis as determined by the City on the basis of the square footage of property, taxable valuation of the property, traffic contribution from the development or a combination thereof. Landowner understands and agrees that the City will choose creation of a SID or special district or an alternative financing method for the completion of the improvements and may use either financing option at any time. This waiver is made for the benefit of the property described herein shall be a covenant running with the land. The terms, covenants and provisions of this waiver shall extend to, and be binding upon the successors-in-interest and assigns of the Landowner. 252 2320 WEST BABCOCK Annexation Agreement, Application 24106 17 DATED this _____ day of _________________, 2024. LANDOWNER __________________________________________ By: Luke Welborn STATE OF MONTANA ) :ss COUNTY OF GALLATIN ) On this ________ day of _______________, 2024, before me, the undersigned, a Notary Public for the State of Montana, personally appeared Luke Welborn and acknowledged this record. IN WITNESS WHEREOF, I have hereunto set my hand and affixed my official seal the day and year first above written. (SEAL) _________________________________________ (Printed Name Here) Notary Public for the State of _________ Residing at _______________________ My Commission Expires: ____________ (Use 4 digits for expiration year) 253 Memorandum REPORT TO:City Commission FROM:Melissa Hodnett, Finance Director SUBJECT:Resolution 5661, Establish Compliance with IRS Reimbursement Bond Regulations MEETING DATE:November 26, 2024 AGENDA ITEM TYPE:Resolution RECOMMENDATION:I move to approve the resolution to establish compliance with IRS reimbursement bond regulations. STRATEGIC PLAN:7.5. Funding and Delivery of City Services: Use equitable and sustainable sources of funding for appropriate City services, and deliver them in a lean and efficient manner. BACKGROUND:In order for the City to reimburse itself for expenditures with debt proceeds, treasury regulations require a Commission resolution declaring the official intent to reimburse expenditures with bond proceeds within 60 days of the original expenditure. Expenditures included in the adopted 2025 Biennium Budget which are assumed to be funded with debt service include Wastewater Infrastructure, Solid Waste and Police vehicles, and funding for the City Hall Renovation. The proposed resolution is presented solely for purposes of establishing compliance with treasury regulations and does not bind the City to make any expenditures, incur any indebtedness, or proceed with projects. UNRESOLVED ISSUES:None ALTERNATIVES:The City's adopted 2025 Biennium Budget and current financial plans assume debt funding for the Projects, and additional funding would need to be identified for these projects to move forward if the resolution is not approved. FISCAL EFFECTS:Debt service associated with any debt proceeds are included in long-term financial models and consistent with the Adopted 2025 Biennium Budget. Attachments: 2024.11.26-Reimbursement Resolution.docx Report compiled on: June 29, 2023 254 1 RESOLUTION NO. 5661 RESOLUTION RELATING TO THE FINANCING OF EXPENDITURES INCURRED FROM WASTEWATER INFRASTRUCTURE, POLICE DEPARTMENT VEHICLES, CITY HALL REMODEL EXPENDITURES, AND SOLID WASTE VEHICLES;ESTABLISHING COMPLIANCE WITH REIMBURSEMENT BOND REGULATIONS UNDER THE INTERNAL REVENUE CODE BE IT RESOLVED by the City Commission (the “Commission”) of the City of Bozeman, Montana (the “City”), as follows: Section 1 Recitals. The United States Department of Treasury has promulgated final regulations governing the use of proceeds of tax-exempt bonds, all or a portion of which are to be used to reimburse the City for project expenditures paid by the City prior to the date of issuance of such bonds. Those regulations (Treasury Regulations, Section 1.150-2) (the “Regulations”) require that the City adopt a statement of official intent to reimburse an original expenditure not later than 60 days after payment of the original expenditure. The Regulations also generally require that bonds be issued and the reimbursement allocation be made from the proceeds of such bonds within 18 months (or three years, if the reimbursement bond issue qualifies for the “small issuer” exception from the arbitrage rebate requirement) after the later of (i) the date the expenditure is paid or (ii) the date the project is placed in service or abandoned, but (unless the issue qualifies for the “small issuer” exception from the arbitrage rebate requirement) in no event more 255 2 than three years after the date the expenditure is paid. The Regulations generally permit reimbursement of capital expenditures and costs of issuance of the bonds. 1.01.The City desires to comply with requirements of the Regulations with respect to certain projects and costs hereinafter identified. Section 2 Official Intent Declaration. 2.01.The City intends to expend funds related to remodeling City Hall, and vehicles to support Solid Waste and Police operations. 2.02. Other than (i) expenditures to be paid or reimbursed from sources other than the Bonds (as hereinafter defined), (ii) expenditures permitted to be reimbursed under the transitional provision contained in Section 1.150-2(j)(2) of the Regulations, (iii) expenditures constituting preliminary expenditures within the meaning of Section 1.150-2(f)(2) of the Regulations, or (iv) expenditures in a “de minimus” amount (as defined in Section 1.150-2(f)(1) of the Regulations), no expenditures for the Projects have heretofore been paid by the City and no expenditures will be paid by the City until after the date of this Resolution. 2.03. The City reasonably expects to reimburse some or all of the expenditures made for costs of the Projects out of proceeds of bonds, in one or more series, in an estimated maximum aggregate principal amount of $10 million (the “Bonds”) after the date of payment of all or a portion of the costs of the Project. All reimbursed expenditures shall be capital expenditures or extraordinary working capital expenditures, a cost of issuance of the Bonds or other expenditures eligible for reimbursement under Section 1.150-2(d)(3) of the Regulations. 2.04. As of the date hereof, there are no City funds reserved, allocated on a long-term basis or otherwise set aside (or reasonably expected to be reserved, allocated on a long-term basis or otherwise set aside) to provide permanent financing for the portion of the Projects expected to be financed, other than pursuant to the issuance of the Bonds. The statement of intent contained in this resolution, therefore, is determined to be consistent with the City’s 256 3 budgetary and financial circumstances as they exist or are reasonably foreseeable on the date hereof. 2.05. The City Finance Director shall be responsible for making the “reimbursement allocations” described in the Regulations, being generally the transfer of the appropriate amount of proceeds of the Bonds to reimburse the source of temporary financing used by the City to make prior payment of the costs of the Projects. Each allocation shall be evidenced by an entry on the official books and records of the City maintained for the Bonds or the Projects and shall specifically identify the actual original expenditure being reimbursed. 257 4 PASSED, ADOPTED, AND APPROVED by the City Commission of the City of Bozeman, Montana, at a regular session thereof held on the 26th day of November, 2024. ___________________________________ TERENCE CUNNINGHAM Mayor ATTEST: ___________________________________ MIKE MAAS City Clerk APPROVED AS TO FORM: ___________________________________ GREG SULLIVAN City Attorney 258 5 CERTIFICATE AS TO RESOLUTION AND ADOPTING VOTE I, the undersigned, being the duly qualified and acting recording officer of the City of Bozeman, Montana (the “City”), hereby certify that the attached resolution is a true copy of Resolution No. 5448 entitled: “RESOLUTION RELATING TO THE FINANCING OF EXPENDITURES INCURRED FROM FACILITIES INFRASTRUCTURE IMPROVEMENT PROJECTS AND WASTEWATER INFRASTRUCTURE IMPROVEMENT PROJECTS; ESTABLISHING COMPLIANCE WITH REIMBURSEMENT BOND REGULATIONS UNDER THE INTERNAL REVENUE CODE” (the “Resolution”), on file in the original records of the City in my legal custody; that the Resolution was duly adopted by the City Commission of the City at a regular meeting on October 25, 2022, and that the meeting was duly held by the City Commission and was attended throughout by a quorum, pursuant to call and notice of such meeting given as required by law; and that the Resolution has not as of the date hereof been amended or repealed. I further certify that, upon vote being taken on the Resolution at said meeting, the following Commission members voted in favor thereof: ; voted against the same: ; abstained from voting thereon: ; or were absent: . WITNESS my hand and seal officially this ____ day of ___________, 20__. (SEAL) __________________________________ MIKE MAAS City Clerk 259 Memorandum REPORT TO:City Commission FROM:Tom Rogers, Senior Planner Chris Saunders, Community Development Manager Erin George, Interim Director of Community Development SUBJECT:Ordinance 2171, Provisional Adoption, Establishing a Zoning Designation of REMU, Residential Emphasis Mixed-Use District, in Association with the Annexation of 2.705 Acres, the 2320 West Babcock Annexation, Application 24106 MEETING DATE:November 26, 2024 AGENDA ITEM TYPE:Ordinance RECOMMENDATION:Provisionally adopt Ordinance 2171 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 24106 on July 16, 2024, to annex 2.705 acres and establish an initial zoning designation of REMU, Residential Emphasis Mixed-Use District subject to terms of annexation and contingencies for zoning. Final documents and easements were received by the Applicant on October 2, 2024. A signed annexation agreement was received on October 2, 2024, with final Engineering approval on October 24, 2024. The Commission unanimously to approve the annexation. The Commission unanimously approved the zone map amendment for the property. The property is addressed at 2320 West Babcock. The property hosts a single residential structure and accessory structures. The zoning regulations would only allow a two-household dwelling and home occupations on the site. No commercial or more than two-household dwelling is permitted. The property is bisected by the West Fork of Catron Creek which also serves as a conveyance facility for Farmers Canal and Middle Creek Ditch Company. The proposed annexation would bring in additional right of way to build out sections of West Babcock Street. The Future Land Use Map in the Bozeman Community Plan (BCP) 2020 260 designates the property as “Urban Neighborhood” which includes both the REMU district as implementing zoning districts. Nearby municipal zoning includes R-3, R-O, and B-2. The subject properties are within the urban planning and municipal service area for the City. 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: 24106 2320 W Babcock Ordinance 2171.pdf 2 - 2320 West Babcock Street - ZMA Map.pdf 1 - 2320 West Babcock Street - Annexation Map.pdf Report compiled on: November 8, 2024 261 Ord 2171 Page 1 of 5 ORDINANCE 2171 AN ORDINANCE OF THE CITY COMMISSION OF THE CITY OF BOZEMAN, MONTANA AMENDING THE CITY OF BOZEMAN ZONING MAP TO INITIALLY DESIGNATE 2.705 ACRES AS REMU, RESIDENTIAL EMPHASIS MIXED-USE DENSITY DISTRICT, KNOWN AS THE 2320 WEST BABCOCK ZONE MAP AMENDMENT, APPLICATION 24106. 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 2.705 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 17, 2024, to receive and review all written and oral testimony on the request for a zone map amendment; and 262 Ordinance No. 2171, 2320 West Babcock Zone Map Amendment Page 2 of 5 WHEREAS, the Bozeman Zoning Commission recommended the Bozeman City Commission that application No. 24106 the 2320 West Babcock Zone Map Amendment, be approved as requested by the applicant; and WHEREAS, after proper notice, the City Commission held its public hearing on July 16, 2024, 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 263 Ordinance No. 2171, 2320 West Babcock Zone Map Amendment Page 3 of 5 application. 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 2320 West Babcock 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 District: An area of land comprised described as follows: Tracts of land being the parcel shown per Film 24, Page 425, and the parcel conveyed on Film 24, Page 426 located in the SE 1/4 of Section 11, Township 2 South, Range 5 East, P.M.M., Gallant County, MT, more particularly described as follows; Beginning at a calculated point on the center of section line of said Section 11 from which a Brass cap in a monument box being the center one-quarter corner of said Section 11, bears S 89°31'53" W a distance of 600.25 feet; thence along said center of section line N 89°31'53" E, a distance of 389.82 feet to a calculated position; thence leaving said center of section line S 00°05'03" W, a distance of 312.81 feet to a 2.5” Swart Brass Cap; thence S 89°18'24" W, a distance of 230.39 feet to a calculated position; thence N 00°09'32" E, a distance of 29.08 feet to a 2.5” Swart Brass Cap; thence S 89°18'43" W, a distance of 161.14 feet to a calculated position; thence N 00°25'01" E, a distance of 285.27 feet to the Point of Beginning, containing 2.705 acres more or less. SUBJECT to all easements of record or apparent from visual inspection of the property. 264 Ordinance No. 2171, 2320 West Babcock Zone Map Amendment Page 4 of 5 All as depicted on the 2320 WEST BABCOCK Zoning Map. Section 3 Repealer. All provisions of the ordinances of the City of Bozeman in conflict with the provisions of this ordinance are, and the same are hereby, repealed and all other provisions of the ordinances of the City of Bozeman not in conflict with the provisions of this ordinance shall remain in full force and effect. 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. 265 Ordinance No. 2171, 2320 West Babcock Zone Map Amendment 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 _______________, 2024. ____________________________________ TERENCE CUNNINGHAM 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 266 REMU 267 REMU 268 Memorandum REPORT TO:City Commission FROM:David Fine, Economic Development Manager Brit Fontenot, Economic Development Director SUBJECT:Public Hearing on Resolution 5663 Approving the Bozeman Yards project in the Northeast Urban Renewal District as an Urban Renewal Project; Making Findings with Respect Thereto and Approving the Use of Tax Increment Revenues to Reimburse Eligible Costs Thereof and Approving a Related Development Agreement MEETING DATE:November 26, 2024 AGENDA ITEM TYPE:Resolution RECOMMENDATION:Consider the Motion: I move to approve Resolution 5663. STRATEGIC PLAN:2.2 Infrastructure Investments: Strategically invest in infrastructure as a mechanism to encourage economic development. BACKGROUND:Please see attached Staff Report. UNRESOLVED ISSUES:None at this time. ALTERNATIVES:At the direction of the City Commission. FISCAL EFFECTS:Please see attached Staff Report. Attachments: Bozeman Yards Staff Report 20241119.pdf Resolution 5663 approving Bozeman Yards project.v1.pdf Baker Tilly Bozeman Yards analysis 111824.pdf Bozeman Yards TIF APPLICATION NARRATIVE 2024 11.14 e.pdf BZN Development Agreement -- Bozeman Yards.v3 FINAL.pdf Report compiled on: November 15, 2024 269 1 Bozeman Yards Development | Staff Report To: Bozeman City Commission From: David Fine, Economic Development Program Manager for Housing and Development Brit Fontenot, Economic Development Director Meeting Date: November 15, 2024 TIF Assistance Program Overview Staff reviewed this application based on the seven goals in the Northeast Urban Renewal District’s Urban Renewal Plan to ensure the goals of the district are considered when applications are evaluated. The Northeast Urban Renewal District’s TIF Assistance Program supports projects that contribute to the following seven goals of the Northeast Urban Renewal District Plan: 1) Ensure the health, safety, and security of the District, 2) Balance Commerce and Livability within the Mixed-Use Framework, 3) Honor the Unique Character and Vitality of the District, 4) Public Open Space is Essential to a Healthy and Appealing Urban Environment, 5) The Costs of Projects and Programs shall be Weighed Against their Benefits to the District, 6) The City shall not Limit its Vision for the District Improvements to Monies Available Solely through the TIF Funding, and 7) Projects shall Consider Impacts on Adjacent Neighborhoods. These goals, as required by statute, focus on mitigating conditions of blight in the urban renewal district. Each of these seven goals is further refined with criteria creating a total of twelve categories that can receive points. Point awards demonstrate specific compliance with the criteria but are not the only factors the Commission may consider in recommending an incentive award. For example, the Commission may also consider new taxable value created by the project, whether the project would be feasible without a public incentive, and the project’s provision public infrastructure as a benefit to the district, and amenities and services that contribute to walkability, quality of life in the district and surrounding neighborhoods, as well as the provision of community housing. Staff Recommendation Staff Recommends providing TIF Assistance to the Project. The Northeast Urban Renewal District TIF Assistance Program exists to promote projects that meet the criteria, which improve undersized or outdated public infrastructure, drive growth in taxable value for the long-term benefit of the wider community and create demand for market driven redevelopment. At this phase in the Northeast URD’s redevelopment lifecycle, few projects containing the targeted criterion elements are financially feasible, “but for” TIF incentives for public infrastructure. The 270 2 Northeast URD is considered a small district primarily comprised of residential property and will sunset in 2042. These factors make it difficult to provide incentives with longer payback periods. Incentives may create the potential for higher returns to mitigate higher risk, which will likely attract investment that would not occur without these incentives. Remediating Statutory Conditions of Blight Urban renewal districts are created to remediate statutory conditions of blight. In the Northeast Urban Renewal District this blight usually takes the form of deteriorating roads, lacking curb, gutter, and sidewalk, and aging pipes. The City Commission previously approved the issuance of bonds to reconstruct Wallace Ave., Peach St. and Tamarack St. and replace outdated water and sewer facilities. At the time, the Board and Commission identified Ida Ave. and Front St. as unfunded priorities. Due to limited investment and redevelopment in the District, there was insufficient increment to support debt service for fixing all of the identified blight. The sizable investment represented by the project will create new incremental taxable value to support some of the remaining infrastructure priorities identified by the Commission. In addition, the developer, not the City or District, is initially funding these improvements and will only be reimbursed once new taxable value from District can support the issuance of additional tax increment revenue bonds. The project is mutually beneficial to the developer and the City. The project cannot proceed without upgrading adjacent blighted infrastructure. The City cannot afford to upgrade the infrastructure without the investment represented by the project. The project cannot support the massive upgrade of public infrastructure without a commitment of reimbursement from new incremental taxable value. Yet working together, the project as proposed delivers on priorities for all the parties. The project will further the Northeast Urban Renewal District’s stated goal of ensuring health, safety, and security of the district through infrastructure investments. The Bozeman Yards project includes construction of Aspen St. between Wallace Ave. and Ida Ave. including curb, gutter, stormwater facilities, and sidewalks. The project will add water and sewer infrastructure under Aspen St. Aspen St. will continue adjacent to Northern Pacific Park, which is currently a gravel street section and construct intersection improvements at corner of Aspen St. and Front St. 271 3 The project will expand Northern Pacific Park (climbing boulder) westward into Ida Ave. right-of-way. This change eliminates the skewed intersection of Ida and Front Street and simplifies the intersection of the alley and Front to a typical mid-block orientation. The change also improves the functional parkland space for the benefit of the neighborhood and eliminates one of three frontages for the park. Pedestrian facilities will extend northward through the Ida Ave. right-of-way, where none currently exist, improving safety for non-motorized users. The project will eliminate other blight in the District by upgrading Front St. adjacent to Northern Pacific Park and the Depot. The current condition of the road section is a mix of crumbling asphalt and gravel. Standing puddles of untreated stormwater abound. The condition of this section of Front St. presents significant challenges to any adaptive reuse of the Depot building, which has inadequate leasable square footage to support the cost of reconstructing an entire block of street and necessary parking for the new commercial use. The project will replace an aging clay sewer main and update water facilities in Front St. Sidewalks will be added on both sides of Front St., extending urban renewal upgrades already completed on Tamarack St. The reimbursable costs of this project can be almost entirely attributed to public infrastructure. While the Development Agreement shows reimbursement of the hard costs of public infrastructure and demolition costs, a complete accounting for the costs to the Developer of the public infrastructure would render a similar reimbursable amount. The eligible hard cost of the public improvements is $2,919,060. The eligible soft cost of designing those improvements totals approximately $411,000. 272 4 Based on a two-year term and a 6% cost of debt for the improvements prior to reimbursement, the carrying cost of the public infrastructure improvements is $329,312 (assuming monthly compounding). Given this analysis the $3,659,372 total cost of infrastructure is within $7,024 of the cost infrastructure and demolition. The proposed reimbursement request of $3,666,396 can almost entirely be attributed to the cost of upgrading public infrastructure and remediating identified statutory conditions of blight. Redevelopment of the Urban Renewal Area by Private Enterprise The Urban Renewal Law calls for facilitating the urban renewal area by private enterprise. The application proposes facilitating that redevelopment by reimbursing the eligible costs of demolition and public infrastructure. The project requires off-site public infrastructure upgrades that reach beyond the extents of the project. Yet it is still necessary to review whether the development could proceed without public assistance and that “but for” the use of TIF funds the project would not be expected to proceed. To ensure that the level of assistance makes the project feasible, but does not provide unreasonable returns to the developer, staff engaged Baker Tilly, a certified municipal financial advisor, to provide an independent, third-party assessment of the development pro forma. Staff contracts for this component of the review process to assess the reasonableness of each applicant’s incentive request. Baker Tilly found that, “Without assistance, the projected equity rate of return is below industry standards. The rate of return analysis indicates that the provided financing structure would not be financially viable without one or more of the following: 1) reduction in project costs and/or 2) additional funding sources. With public assistance through tax increment assistance, the projected returns are expected to increase.” Baker Tilly concluded their analysis and found that the TIF request of $3,666,396 does not generate above market rate returns for the developer and that the TIF request improves the feasibility of the project. The project represents a strong ratio of private investment to public investment. With a project cost of $65,397,132 this represents a ratio of private to public investment of $17.83 of private investment for each dollar of public investment or a ratio of 17.83:1. This produces an excellent ROI for the District. The developer will finance the project up front. When the project is completed and on the tax rolls, the City expects to issue tax increment revenue bonds to reimburse the developer for the eligible costs. The arrangement is outlined in the attached development agreement. The Bozeman Yards project received points on criteria representing 12 out of 12 of the criteria representing goal of the Northeast Urban Renewal District Plan. Additionally, the Bozeman Yards project proposes the creation of two units of condo housing units at 120% AMI for 30 years. Given the satisfaction of these public policy priorities, staff recommends approval of the full funding request. Criteria for TIF Assistance Ensure the Health Safety and Security of the District 1. Infrastructure Improvement: Infrastructure Improvement: The project will repair, replace, or improve outdated or insufficient infrastructure. i. The project will reconstruct inadequate and failing infrastructure. “Aspen St. will be constructed to a standard urban street section, which does not exist today. The street will be 35ft wide, located within 60 ft right-of-way, with curb, gutter, boulevards sidewalks, an extension of the sanitary sewer main and service hubs as well as water 273 5 main and service hubs. Storm water improvements will include curb inlets with underground detention facilities.” There are currently no stormwater facilities surrounding this site. While the entire cost of this infrastructure upgrade is being born by the Bozeman Yards project, it will facilitate the infrastructure that is necessary for the future redevelopment of the current Tinworks site to the south. ii. Northern Pacific Park is being expanded into the Ida Ave. right-of-way. The expansion improves the park, while allowing for improved safety by increasing visibility and reducing the number of intersections on Front St. iii. “Front Street will continue from previous improvements on Tamarack Street. This will be a standard urban street section with a 31ft width located within a 50ft right-of-way, with curb and gutter, boulevards, sidewalks, an extension of the sanitary sewer main and service stubs as well as water main and service stubs.” Reconstruction of Front St. adjacent to the Depot and Northern Pacific Park may facilitate the future redevelopment and preservation of the Depot site. Past efforts at redeveloping the Depot have faltered, in part, based on the cost burden of upgrading adjacent infrastructure to city standards. 6/6 2. Multimodal Transportation: The project incorporates transportation infrastructure that facilitates safe, efficient, and convenient access of the district for all modes of transportation. i. The project incorporates pedestrian infrastructure. Sidewalks on Front Street, portions of Tamarack Street, and Aspen Street will be constructed enhancing pedestrian safety and circulation and increasing pedestrian accessibility to the existing Depot Trail. Bulb outs for pedestrian visibility and traffic control will be constructed. A paved path on Ida Avenue will be bordered by sidewalks. 4/4 3. Public Utilities: The project will incorporate public utilities in a way so that they are not visually or physically obtrusive. i. The project will relocate public utilities underground in accordance with goals of the urban renewal plan. Existing overhead lines will be moved underground adjacent to the project along Ida Ave. and where they cross Front St. at the intersection of Ida Ave. and Front St. Once completed, there will be no overhead utilities along the Front St., Ida Ave. and Aspen St. corridors adjacent to the project. 2/2 Balance Commerce and Livability within the Mixed-Use Framework 4. Mix of Uses: The project incorporates mixed use development that promotes livability. i. The project balances commerce and livability in the District within the mixed-use framework by providing 1,624 square feet of ground floor commercial space, which will activate the Aspen St. frontage currently occupied backsides of metal warehouse buildings that are setback from the street frontage. The residential units will be for-sale condominium units. 2/4 5. Community Housing: The project includes affordable housing units as defined by the adopted Affordable Housing Ordinance 38.380, BMC. [NOTE: The Northeast Urban Renewal Board 274 6 adopted the criterion below prior to the City Commission’s adoption of the Affordable Housing Ordinance. For purposes of this review, Staff is interpreting the Board adopted criterion as being superseded by the affordability criteria in the Affordable Housing Ordinance. Strikethrough denotes criteria that are superseded.] For the purposes of this criterion, an affordable housing unit is defined as a unit that requires no more than 33 percent of a household’s income for housing payments based on a designated percentage of area median income (AMI). Eligible rental units shall be affordable at 70% AMI and eligible for sale units shall be affordable at 90% AMI. Condominium units are eligible as for sale units. Additional points may be awarded for projects that provide on-site housing for the proposed workforce. Eligible rental dwellings to be constructed in the proposed residential development shall be provided by long-term contractual obligation to an affordable housing agency, for a period of not less than 20 years, with a written plan assuring ongoing affordability pricing and eligibility monitoring, and annual re-certification. The city's affordability guidelines and subsequent revisions establish affordability and eligibility. To receive 3 points under this criterion, 10% of all units must meet the affordability criteria. To receive 6 points under this criterion, 20% of all units must meet the affordability criteria. i. Two of the 38 units in phase one will be for sale at 120% AMI, representing 5% of the units in phase one. 1.5/6 Honor the Unique Character and Vitality of the District 6. Character: The physical design, materials, and massing of the project reflects the community’s values of durability, flexibility, and simplicity, and add vitality to the neighborhood. i. Bozeman Yards will have accentuated overhangs and planters along with deliberate material transitions to reflect the character of the neighborhood. Parking will be underground to minimize surface level disruptions. 2/2 7. Sustainability: The project’s design and construction practices incorporate environmentally sustainable strategies and elements i. The project incorporates EV charging stations. 1/2 Public Open Space is Essential to a Healthy and Appealing Urban Environment 8. Open Space: The project designates new land for parks and open space. i. The project includes pedestrian plazas as part of the built environment. Improvements to North Ida will provide an opportunity to expand the existing boulder park, designating new open space. 4/4 9. Landscaping: The project improves landscaping in existing public spaces i. The project enhances the landscaping on Ida Avenue, Front Street, Aspen Street, and portions of Tamarack Street. 2/2 The Costs of Projects and Programs shall be Weighed Against their Benefits of the District 10. Return on Investment: The investment of public funds in the project results in a leverage ratio of at least 10:1 for residential projects; 8:1 for commercial/industrial projects; and/or 5:1 for living wage jobs. 275 7 i. The Applicant is requesting $3,666,396 in TIF Assistance on a project with a total cost of $65,397,132 a 17.83:1 ratio of private to public investment. This produces an outstanding ROI for the District. Baker Tilly completed an independent third-party review of the project proforma and concluded the project satisfies a “but for” argument for the use of public funds. 4/4 The City shall not Limit its Vision for the District Improvements to Monies Available Solely through the TIF Funding 11. Public-Private Partnerships: This project involves and/or will encourage public-private partnerships that will add value to the District and its investments. i. The public infrastructure investments in this project made upfront by the Applicant and reimbursed with tax increment funds will make future redevelopment of other sites that are not owned by the Applicant, adjacent to the project. This encouragement of private enterprise is consistent with the Montana Urban Renewal Law: 7-15-4208. Encouragement of private enterprise. A municipality, to the greatest extent it determines to be feasible in carrying out the provisions of this part and part 43, shall afford maximum opportunity, consistent with the sound needs of the municipality as a whole, to the rehabilitation or redevelopment of the urban renewal area by private enterprise. A municipality shall give consideration to this objective in exercising its powers under this part and part 43, including the formulation of a workable program; the approval of urban renewal plans (consistent with the comprehensive plan or parts thereof for the municipality); the exercise of its zoning powers; the enforcement of other laws, codes, and regulations relating to the use of land and the use and occupancy of buildings and improvements; the disposition of any property acquired; and the provision of necessary public improvements.(MCA) 4/4 Projects shall Consider Impacts on Adjacent Neighborhoods 12. Complimentary to Adjacent Neighborhoods: The project is complimentary to adjacent neighborhoods, not just the Northeast Urban Renewal District. i. The project provides neighborhood scale commercial spaces that can serve surrounding residents. 1/2 The project received more than half of the available points and received points on criteria meeting 12 of 12 urban renewal plan goals. Total Points: 33.5/42 276 8 Required Findings The Commission is required to make the following findings to designate the project as an urban renewal project: a. no persons will be displaced from their housing by the Project; • The warehouse structures that will be demolished for this project are warehouse structures and there are no residents to displace. b. the Plan and the Project conform to the Bozeman Community Plan or parts thereof for the City as a whole; • The adopted Northeast Urban Renewal Plan was found to be in conformance with the Bozeman Community Plan at the time of adoption. In addition, the project uses are consistent with the existing zoning of the property, which was found by the City Commission to be in conformance with the Bozeman Community Plan 2020. c. the Plan and the Project will afford maximum opportunity, consistent with the needs of the City as a whole, for the rehabilitation or redevelopment of the District by private enterprise; • The Plan and the Project focus on the rehabilitation of blight through investments in public infrastructure, which is facilitating $65,397,132 in private investment on the site for $3,666,396 in public investment. d. taking into account the use of tax increment revenues to reimburse the Developer for all or a portion of the Eligible Costs, there is expected to be a sound and adequate financial program for the financing of the Project; and • The Project creates significant new taxable value, which, when combined with existing revenues of the District allows for a sound and adequate financial program for financing the Project. e. the Project constitutes an urban renewal project within the meaning of the Act and the Plan. • The findings made by staff regarding the criteria for TIF assistance demonstrate that the project contributes to all seven goals of the urban renewal plan. The reimbursement contemplated by this project represents costs that may be paid by tax increment financing pursuant to 7-15-4288, MCA. 277 RESOLUTION 5663 RESOLUTION APPROVING A PROJECT IN THE NORTHEAST URBAN RENEWAL DISTRICT AS AN URBAN RENEWAL PROJECT; MAKING FINDINGS WITH RESPECT THERETO AND APPROVING THE USE OF TAX INCREMENT REVENUES TO REIMBURSE ELIGIBLE COSTS THEREOF AND APPROVING A RELATED DEVELOPMENT AGREEMENT BE IT RESOLVED by the City Commission (the “Commission”) of the City of Bozeman, Montana (the “City”), as follows: Section 1 Recitals. 1.01. Under the provisions of Montana Code Annotated, Title 7, Chapter 15, Parts 42 and 43, as amended (the “Act”), the City is authorized to create urban renewal areas, prepare and adopt an urban renewal plan therefor and amendments thereto, undertake urban renewal projects therein, provide for the segregation and collection of tax increment with respect to property taxes collected in such areas, and apply tax increment revenues derived from projects undertaken within the urban renewal area to pay eligible costs. 1.02. Pursuant to the Act and Ordinance No. 1655 adopted by the City Commission of the City (the “City Commission”) on November 28, 2005, the City has created the Northeast Urban Renewal District (the “District”) as an urban renewal district and has approved the Northeast Urban Renewal Plan (the “Plan”) as an urban renewal plan in accordance with the Act, which Plan provides for the segregation and collection of tax increment revenues with respect to the District. 278 Resolution 5663, Approving a Project in the Northeast URD Known as the Bozeman Yards Project 2 1.03. Brick Capital, LLC (the “Developer”) proposes to undertake the construction of a mixed use development consisting of approximately thirty eight (38) residential condominium units, a commercial space, and an underground parking garage; public improvements including improving road surfaces, sidewalks, curbs, gutters and stormwater systems, critical updates to water and sewer infrastructure, and updating traffic patterns for better flow and safety on Front Street, East Aspen Street and North Ida Avenue; and related improvements (the “Project”). The Developer has requested that the City use tax increment revenues or proceeds of tax increment revenue bonds of the District to reimburse the Developer with respect to certain eligible costs of the Project (the “Eligible Costs”), including the design, engineering and construction of public improvements including improving road surfaces, sidewalks, curbs, gutters and stormwater systems, critical updates to water and sewer infrastructure, and updating traffic patterns for better flow and safety on Front Street, East Aspen Street and North Ida .Avenue. Eligible Costs are estimated to equal $3,666,396. Section 2 Approval of the Project as an Urban Renewal Project. The Commission hereby approves the Project as an urban renewal project under the Act and the Plan. The Project, including the Eligible Costs, is contemplated by and within the scope of the Plan, and the Eligible Costs are eligible for tax increment financing under the Act. Section 3 Findings. The Commission hereby finds with respect to the Project as follows: a. no persons will be displaced from their housing by the Project; b. the Plan and the Project conform to the Bozeman Community Plan or parts thereof for the City as a whole; 279 Resolution 5663, Approving a Project in the Northeast URD Known as the Bozeman Yards Project 3 c. the Plan and the Project will afford maximum opportunity, consistent with the needs of the City as a whole, for the rehabilitation or redevelopment of the District by private enterprise; d. taking into account the use of tax increment revenues to reimburse the Developer for all or a portion of the Eligible Costs, there is expected to be a sound and adequate financial program for the financing of the Project; and e. the Project constitutes an urban renewal project within the meaning of the Act and the Plan. Section 4 Development Agreement; Use of Tax Increment. 4.01. Staff of the City’s Economic Development Department and the Developer have negotiated a Development Agreement, the form of which is attached hereto as Exhibit A. The Development Agreement is hereby approved in substantially the form attached. The Interim City Manager, or in the event of his absence or disability, his designee, is hereby authorized and directed to finalize, approve, execute and deliver to the Developer the Development Agreement, with such changes as such officer shall deem necessary or appropriate. The execution and delivery by an appropriate officer of the City of the Development Agreement shall be conclusive as to the approval of such officer of the terms of the Development Agreement. 4.02. The Commission hereby approves the use of tax increment revenues or proceeds of tax increment revenue bonds in an amount up to $3,666,396 to reimburse the Developer for Eligible Costs of the Project, subject to the terms and conditions of the Development Agreement. Any tax increment revenue bonds would be issued pursuant to further action of this Commission, including adoption of a supplemental bond resolution. 280 Resolution 5663, Approving a Project in the Northeast URD Known as the Bozeman Yards Project 4 PASSED, ADOPTED, AND APPROVED by the City Commission of the City of Bozeman, Montana, at a regular session thereof held on the 26th day of November, 2024. ___________________________________ TERRY CUNNINGHAM Mayor ATTEST: ___________________________________ MIKE MAAS City Clerk APPROVED AS TO FORM: ___________________________________ GREG SULLIVAN City Attorney 281 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. 5663 entitled: “RESOLUTION APPROVING A PROJECT IN THE NORTHEAST URBAN RENEWAL DISTRICT AS AN URBAN RENEWAL PROJECT; MAKING FINDINGS WITH RESPECT THERETO AND APPROVING THE USE OF TAX INCREMENT REVENUES TO REIMBURSE ELIGIBLE COSTS THEREOF AND APPROVING A RELATED DEVELOPMENT AGREEMENT” (the “Resolution”), on file in the original records of the City in my legal custody; that the Resolution was duly adopted by the City Commission of the City at a regular meeting on November 26, 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 Commission members voted in favor thereof: ; voted against the same: ; abstained from voting thereon: ; or were absent: . WITNESS my hand and seal officially this 26th day of November, 2024. (SEAL) __________________________________ MIKE MAAS City Clerk 282 Resolution 5663, Approving a Project in the Northeast URD Known as the Bozeman Yards Project A-1 EXHIBIT A [Form of Development Agreement] 283 Page 1 Baker Tilly Municipal Advisors, LLC is a registered municipal advisor and controlled subsidiary of Baker Tilly Advisory Group, LP. Baker Tilly Advisory Group, LP and Baker Tilly US, LLP, trading as Baker Tilly, operate under an alternative practice structure and are members of the global network of Baker Tilly International Ltd., the members of which are separate and independent legal entities. Baker Tilly US, LLP is a licensed CPA firm and provides assurance services to its clients. Baker Tilly Advisory Group, LP and its subsidiary entities provide tax and consulting services to their clients and are not licensed CPA Firms. ©2024 Baker Tilly Municipal Advisors, LLC Memo To: David Fine, City of Bozeman From: Mikaela Huot, Director Date: November 18, 2024 Subject: Updated Financial Review of the Request by Brick Capital for Financial Assistance through Tax Increment Financing (TIF) for Bozeman Yards Project Executive Summary The City of Bozeman (the “City”) received an application from Brick Capital (the “Developer”) for financial assistance through Tax Increment Financing (TIF) to assist with financing a portion of the TIF-eligible redevelopment costs related to the proposed two-phase development with construction of two phases of mixed- use condominium buildings at 805 North Ida Avenue and 622 East Tamarack Street, replacing older industrial structures. The Project as initially proposed would provide for approximately 76 condominiums, with up to 10% set aside as below market rate housing at rates targeting 120% AMI, 94 below grade parking spaces and 1,624 SF of commercial space. Through additional discussions relative to feasibility of the project and need for assistance, the Developer submitted a revised application focusing only on one phase of redevelopment that would include replacement of a 9,000 SF warehouse with an approximate 100,000 SF mixed use building at 805 North Ida to include 39 condominium units, 1,624 square feet commercial space, and an underground parking garage. A potential second phase would be considered upon application and not included as part of the financial analysis. There are findings the City makes prior to providing any public assistance that includes: 1) determination that a project qualifies and 2) determination that the project as proposed would not proceed without public assistance (meeting the “but-for” test). When reviewing requests for financial public assistance it is important to understand how the potential level would impact ability of the project to proceed as proposed and maximize new value created on the current project site. The Developer’s initial request was for $5,983,579 of financial assistance through tax increment financing (TIF) to assist with some of the development costs including demolition and site preparation, off-site improvements: roadways, sidewalks, curbs, gutter, alley, etc., off-site soft costs, impact fees, cash-in-lieu of parkland, cash-in- lieu of water rights, and CM fee for the approximate $104 million project. The Developer’s original application had proposed 10% of the units as affordable at 120% AMI resulting in an estimated reduction in total sales proceeds as related to reduced purchase prices for the affordable units. The revised total development cost as outlined in the table on the following page reflects an approximate $65 million project. Recommending $3.6 million of assistance through but-for review. Following review of the Developer’s request for public assistance and projected financial performance of the project upon completion (as further described in this memo), we can recommend supporting the City with providing some level of financial assistance for the project to proceed as proposed. However, there has been 284 Page 2 Baker Tilly Municipal Advisors, LLC is a registered municipal advisor and controlled subsidiary of Baker Tilly Advisory Group, LP. Baker Tilly Advisory Group, LP and Baker Tilly US, LLP, trading as Baker Tilly, operate under an alternative practice structure and are members of the global network of Baker Tilly International Ltd., the members of which are separate and independent legal entities. Baker Tilly US, LLP is a licensed CPA firm and provides assurance services to its clients. Baker Tilly Advisory Group, LP and its subsidiary entities provide tax and consulting services to their clients and are not licensed CPA Firms. ©2024 Baker Tilly Municipal Advisors, LLC considerable discussion regarding the number of affordable housing units within the project and corresponding impact on need for public assistance. The Developer has voiced the desire to maintain a portion of the housing units as affordable to meet other City planning requirements (total building height bonus). As a result, it is recommended that 5% of the housing units (total of 2 units) would be reserved as affordable at 120% AMI. The Developer has requested the assistance be provided as reimbursement for actual costs incurred following completion of the project (considered take-out financing upon successful project completion based on timing of financing between phases) that would require the City to finance those costs through bond issuance and use future tax increment revenues as repayment of debt service. Additional details regarding financing strategies are included within Project Financing on page 2. Review of the sources and uses and estimated sales proceeds based on the developer assumptions with assistance as compared to no assistance provides an understanding of financial feasibility for this project and need for public assistance. The purpose of the analysis is to test the level of assistance that may be needed using those assumptions and if the recommended structure is reasonable while remaining consistent with the City’s objectives for providing assistance. The purpose of this memorandum is to provide a summary of Baker Tilly’s review of the development project costs, sources of funding and estimated sales proceeds as provided by the Developer to assist the City with making a determination if the project as proposed would be unlikely to proceed “but-for” the requested TIF assistance, and to determine the appropriate amount, if any, of public assistance. Developer Request for Assistance The Developer has proposed an approximate $65 million project for one phase of development that would include construction of 39 condominium housing units and 1,624 square feet of commercial space. The project would be funded with construction financing equal to 75% of total development costs with remaining 25% financed by developer equity. Sales proceeds from the housing units and commercial space would be used to repay the construction loan and provide a return on the developer equity. A small percentage of the condominiums are targeted for persons/families at moderate income levels (120% AMI) and would be sold at a reduced sales price as compared to market rate units, resulting in reduced revenues to the Developer. Tax increment financing from the City would provide an additional source of funds to finance the TIF-eligible costs associated with demolition and construction of off-site improvements. Without assistance, the Developer’s equity returns are reduced, thus supporting the need and request for assistance. The Developer’s financing is reasonable when compared to market conditions of approximately 60-75% financed by debt with remaining costs financed through equity or other funding sources. It is possible based on the actual funding structures that the levels of debt and equity may adjust based on financial performance. Financial assistance from the City of Bozeman has been requested to provide additional funding for the project and offset a portion of the TIF-eligible costs. The Developer’s request for assistance has included the City financing the extraordinary development costs as reimbursement through bond issuance following project completion and established valuations and tax increment revenues. For most redevelopment projects, there are costs that cannot be supported solely by the project alone. They are considered TIF-eligible extraordinary costs that become a barrier for new project to occur and could justify the need for public financial assistance that will allow the project to proceed as proposed. In addition, current market conditions of increased interest rates requiring reduced debt financing and increased equity amounts have resulted in higher funding gaps. Tax increment financing from the City provides an additional funding source to the project that allows the developer to obtain an appropriate level of upfront debt and equity funding and meet minimum debt coverage and investor return metrics. Summary of the sources and uses of funds is illustrated in Table 1 below. The recommendation for a reasonable level of public assistance is balanced by a combination of extraordinary costs and projected financial cash flow performance of the project, public policy guidelines/considerations and potential financial parameters as further outlined below: • Return on Investment: (City benefits) 285 Page 3 Baker Tilly Municipal Advisors, LLC is a registered municipal advisor and controlled subsidiary of Baker Tilly Advisory Group, LP. Baker Tilly Advisory Group, LP and Baker Tilly US, LLP, trading as Baker Tilly, operate under an alternative practice structure and are members of the global network of Baker Tilly International Ltd., the members of which are separate and independent legal entities. Baker Tilly US, LLP is a licensed CPA firm and provides assurance services to its clients. Baker Tilly Advisory Group, LP and its subsidiary entities provide tax and consulting services to their clients and are not licensed CPA Firms. ©2024 Baker Tilly Municipal Advisors, LLC • Purchase price and other development costs: (reasonable ranges and supported by project) • Public to private investment: (public participation percentage not greater than 10%) • Public assistance (TIF) and private equity: (public assistance does not exceed private equity) • Extraordinary costs as opposed to TIF-eligible costs: (redevelopment) • Financial gap: (limit on private debt and equity) • Market conditions (financing limitations) • Term of district collection: (remaining # years) • Other identified public improvements: (case by case basis to be determined) We may expect to see certain development costs associated with new construction projects including acquisition, site development and improvement costs, updated infrastructure improvement costs, and in some cases, structured/underground/enhanced parking. For this project, the Developer has indicated that tax increment financing assistance is necessary for the Project to proceed, and has identified several TIF-eligible development costs as requested be supported by the City. Extraordinary development costs that cannot be supported solely by the project alone typically may justify the need for some type of public financial assistance. The Developer’s total development cost budget and funding sources for the project are listed below. Sources and Uses of Funds The proposed total development cost of the project is estimated to be $65,397,132. Construction hard costs are estimated to be $47,796,000 and include site improvement and other redevelopment costs. The project includes land costs of $3,603,000. There are additional construction soft costs of $5,641,987, FF&E of $500,000, financing fees of $451,145, CM fee of $1,361,000 and operating shortfalls of $6,044,000. The operating shortfalls including carrying interest costs from construction through sales of the housing units. As a percentage of total development costs, the combined soft and other combined line items equate to approximately 10% of total development costs and a reasonable estimate. The developer has identified the sources of funds for the proposed project, including construction financing debt and investor equity with TIF requested as reimbursement. The developer is seeking TIF reimbursement of up to $5,983,579. Table 1a: Sources and Uses of Funds for Phase 1 (39 housing units and commercial space) Sources Amount Development Costs Amount Debt $45,574,432 Land $3,500,000 Equity $19,822,700 Land Closing Costs $103,000 Construction Hard Costs $47,796,000 Construction Soft Costs $5,641,987 FF&E $500,000 TIF Assistance * Financing Fees $451,145 CM Fee $1,361,000 Operating Shortfalls $6,044,000 Total Sources $65,397,132 Total Development Cost $65,397,132 * Any public assistance through TIF (up to the recommended $3,666,396) would provide additional funding to repay construction financing and/or enhance developer equity TIF Eligible Costs The recommended level of assistance of $3,666,396 includes reimbursement for certain costs including demolition and site preparation and construction of off-site improvements such as roadways, sidewalks, curbs, gutters, alley and related items. In addition to those costs that are being recommended for TIF assistance, the Developer’s request for financial assistance had also included off-site soft costs related to the improvements, 286 Page 4 Baker Tilly Municipal Advisors, LLC is a registered municipal advisor and controlled subsidiary of Baker Tilly Advisory Group, LP. Baker Tilly Advisory Group, LP and Baker Tilly US, LLP, trading as Baker Tilly, operate under an alternative practice structure and are members of the global network of Baker Tilly International Ltd., the members of which are separate and independent legal entities. Baker Tilly US, LLP is a licensed CPA firm and provides assurance services to its clients. Baker Tilly Advisory Group, LP and its subsidiary entities provide tax and consulting services to their clients and are not licensed CPA Firms. ©2024 Baker Tilly Municipal Advisors, LLC impact fees, cash in lieu of parkland and water rights and construction management fee. Although they were TIF- eligible, the remaining costs were not included in the recommended level of assistance as they are not necessarily considered extraordinary and unsupported by the project itself. Additional discussion as related to recommended level of public assistance is included in the Financial Needs (But For) Analysis section of the report. The table on the following page outlines the initial TIF-eligible costs that were included in the request for public assistance as related to construction of both phases. The Developer’s updated application only includes Phase 1 as a 39- unit housing project with 1,624 of commercial space and recommended supportable TIF-eligible costs associated with completion of the project. A future phase that includes additional housing units and associated TIF-eligible costs is not being contemplated within the financial analysis. Table 2: TIF-Eligible Costs Identified Project Costs Phase 1 Phase 2 Total Potential TIF Costs Demolition and Site Prep $747,336 $681,196 $1,428,531 $747,336 Off-site improvements: Roadways, sidewalks, curbs, gutters, alley, etc $2,919,060 $0 $2,919,060 $2,919,060 Off-site soft costs $411,000 $0 $411,000 Impact Fees $421,132 $0 $421,132 Cash in Lieu of Parkland $72,000 $0 $72,000 Cash in Lieu of Water Rights $112,547 $0 $112,547 CM Fee $191,483 $0 $191,483 Total TIF Eligible Costs $4,874,558 $681,196 $5,555,754 $3,666,396 Project Financing There are different ways in which financial public assistance can be provided for development projects and historically the City has provided assistance through the issuance of tax increment revenue bonds upon some or all of project completion (take-out financing). This method can reduce the risk of debt issuance of the City as the development being completed is the source of revenue for which the tax increments are generated to repay the debt service. Alternate financing approaches to be considered (and as further described) may include upfront (prior to project completion) and/or on a pay-as-you-go basis (Developer financed and reimbursed over time with future increments). With take-out financing, the Developer is responsible for financing all costs upfront through private investment (or other funding sources) and the City would reimburse a portion of those costs through bond issuance upon completion of the project (or determined level of private investment made or development completed) to generate sufficient revenues for debt repayment. With upfront financing, the City would finance a portion of the Developer’s initial project costs through the issuance of bonds or as an internal loan. This is generally done prior to construction commencement and used as a funding source when the Developer is unable to obtain sufficient upfront funds to pay all project costs. In certain cases, not all project costs generate revenues, and a development may experience a value gap, in which upfront funding is necessary to support all project costs. In this scenario, future tax increments generated by the new development would be collected by the City and used to pay debt service on City-issued bonds or repayment of an internal loan (subject to actual financing terms). With pay-as-you-go financing, the Developer would finance all project costs upfront and would be reimbursed over time for a portion of those costs as revenues are available. Pay-as-you-go-financing is generally more acceptable than upfront financing for the City because it shifts the risk for repayment to the Developer. If tax increment revenues are less than originally projected, the Developer receives less and therefore bears the risk of not being reimbursed the full amount of their financing. However, in some cases pay as you go financing may not be financially feasible. With bonds, the City would still need to make debt service payments and would have 287 Page 5 Baker Tilly Municipal Advisors, LLC is a registered municipal advisor and controlled subsidiary of Baker Tilly Advisory Group, LP. Baker Tilly Advisory Group, LP and Baker Tilly US, LLP, trading as Baker Tilly, operate under an alternative practice structure and are members of the global network of Baker Tilly International Ltd., the members of which are separate and independent legal entities. Baker Tilly US, LLP is a licensed CPA firm and provides assurance services to its clients. Baker Tilly Advisory Group, LP and its subsidiary entities provide tax and consulting services to their clients and are not licensed CPA Firms. ©2024 Baker Tilly Municipal Advisors, LLC to use other sources to fill any shortfall of tax increment revenues. With internal financing, the City reimburses the loan with future revenue collections and may risk not repaying itself in full if tax increment revenues are not sufficient. The Developer’s financial information includes City assistance through bond financing to pay for a portion of the identified extraordinary development costs necessary for development of the project. The financing structure, if the public assistance request is granted, would include City debt issuance following construction of the project as a means of reducing Developer equity investment. Review of the Developer’s cash flow performance indicates financial assistance through takeout financing (project is generally completed to produce the tax increments) would be financially feasible, subject to market conditions in either financing scenario. Financing Assumptions The assumption is that future tax increment revenues generated from the new mixed-use development would be the source of revenue to support debt service payments on the city bonds’ debt service that were sold to finance the recommended TIF-eligible costs. The estimated total development costs are $65 million and the estimated total sales proceeds for both commercial and residential are $74 million. We are providing a range of projected tax increments that would be generated by the project based on varying estimated market value assumptions of 50%, 70% and 100% of total sales proceeds. The total estimated market values would provide a range of new tax increment revenues of $285,173, $398,393 and $568,224. Within the application, the Developer has estimated the new tax amount would be approximately $561,000. Additional analysis of the estimated total values and respective tax increment amounts is provided in the 3 tables below. Certain assumptions were used to estimate the projected available property taxes and applicable tax increment revenues to assist with understanding feasibility of the project to support debt repayment up to the recommended assistance amount to support the offsite improvements. For purposes of our analysis, we are using estimates of total construction cost and comparison estimates to provide a range of projected taxable values of the project upon completion. Using the available information that has been provided and making some additional projections and assumptions, the tables below illustrate a potential range of estimated valuations and corresponding revenues. A lower value percentage from the new development will require a need for a higher level of supplemental revenues from the existing district. We anticipate there may be adjustments as additional project details become available and building construction commences. Table 3A: Estimated Market Value is 50% of Estimated Sales Proceeds s Phase 1 Estimated Sales Proceeds 74,279,000 74,279,000 74,279,000 74,279,000 Percent Value of Proceeds 50%50%50%50% Estimated Market Value 37,139,500 37,139,500 37,139,500 37,139,500 Estimated Taxable Value 505,142 505,142 505,142 505,142 Estimated Tax Increment 285,173 285,173 285,173 285,173 Existing/Additional District Revenues 150,000 250,000 415,000 535,000 Total Projected Revenues (Phase 1 and Existing Only)435,173 535,173 700,173 820,173 Estimated Net Bond Proceeds 2,919,060 3,666,396 4,758,592 5,555,754 Bond Amount 3,210,966 4,033,036 5,234,451 6,111,329 Estimated Debt Service 330,610 415,252 538,954 629,239 Minimum Revenue Coverage 1.30 1.30 1.30 1.30 Revenues Needed 429,793 539,828 700,640 818,011 Estimated Available Revenues (Phase 1 Only)435,173 535,173 700,173 820,173 288 Page 6 Baker Tilly Municipal Advisors, LLC is a registered municipal advisor and controlled subsidiary of Baker Tilly Advisory Group, LP. Baker Tilly Advisory Group, LP and Baker Tilly US, LLP, trading as Baker Tilly, operate under an alternative practice structure and are members of the global network of Baker Tilly International Ltd., the members of which are separate and independent legal entities. Baker Tilly US, LLP is a licensed CPA firm and provides assurance services to its clients. Baker Tilly Advisory Group, LP and its subsidiary entities provide tax and consulting services to their clients and are not licensed CPA Firms. ©2024 Baker Tilly Municipal Advisors, LLC Table 3B: Estimated Market Value is 70% of Estimated Sales Proceeds Table 3C: Estimated Market Value is 100% of Estimated Sales Proceeds The 3 tables above illustrate financial feasibility of the proposed financing structure and ability of the new development to generate sufficient revenues to support reimbursement of the full recommended TIF-eligible costs of $3,666,396. It also provides alternate funding structures up to the Developer’s initial request of $5,555,754. Should the estimated market value of the project be 50% of the estimated sales proceeds, the financing will require additional revenues from the existing TIF District and/or reliance on potential future phase(s) of development within the district. For the recommended financing amount of $3,666,396, additional annual revenues of approximately $250,000 would be required to meet minimum debt revenue coverage of 1.3x for debt service. If the estimated market value is 70% of sales proceeds, the annual contribution required would decrease to $150,000. The annual contribution is projected to be eliminated if the estimated market value is 100% of sales proceeds. Sales Assumptions The developer provided a breakdown of the projected sales proceeds from the individual unit types for the residential housing units based on number of bedrooms (1, 2, 3) with estimated total square footage and total square footage. The estimated sales price per square foot for phase 1 is $608 for the affordable units and $1,026 Phase 1 Estimated Sales Proceeds 74,279,000 74,279,000 74,279,000 74,279,000 Percent Value of Proceeds 70%70%70%70% Estimated Market Value 51,995,300 51,995,300 51,995,300 51,995,300 Estimated Taxable Value 705,695 705,695 705,695 705,695 Estimated Tax Increment 398,393 398,393 398,393 398,393 Existing/Additional District Revenues 50,000 150,000 300,000 420,000 Total Projected Revenues (Phase 1 and Existing Only)448,393 548,393 698,393 818,393 Estimated Net Bond Proceeds 2,919,060 3,666,396 4,758,592 5,555,754 Bond Amount 3,210,966 4,033,036 5,234,451 6,111,329 Estimated Debt Service 330,610 415,252 538,954 629,239 Minimum Revenue Coverage 1.30 1.30 1.30 1.30 Revenues Needed 429,793 539,828 700,640 818,011 Estimated Available Revenues (Phase 1 Only)448,393 548,393 698,393 818,393 Phase 1 Estimated Sales Proceeds 74,279,000 74,279,000 74,279,000 74,279,000 Percent Value of Proceeds 100%100%100%100% Estimated Market Value 74,279,000 74,279,000 74,279,000 74,279,000 Estimated Taxable Value 1,006,525 1,006,525 1,006,525 1,006,525 Estimated Tax Increment 568,224 568,224 568,224 568,224 Existing/Additional District Revenues - - 130,000 250,000 Total Projected Revenues (Phase 1 and Existing Only)568,224 568,224 698,224 818,224 Estimated Net Bond Proceeds 2,919,060 3,666,396 4,758,592 5,555,754 Bond Amount 3,210,966 4,033,036 5,234,451 6,111,329 Estimated Debt Service 330,610 415,252 538,954 629,239 Minimum Revenue Coverage 1.30 1.30 1.30 1.30 Revenues Needed 429,793 539,828 700,640 818,011 Estimated Available Revenues (Phase 1 Only)568,224 568,224 698,224 818,224 289 Page 7 Baker Tilly Municipal Advisors, LLC is a registered municipal advisor and controlled subsidiary of Baker Tilly Advisory Group, LP. Baker Tilly Advisory Group, LP and Baker Tilly US, LLP, trading as Baker Tilly, operate under an alternative practice structure and are members of the global network of Baker Tilly International Ltd., the members of which are separate and independent legal entities. Baker Tilly US, LLP is a licensed CPA firm and provides assurance services to its clients. Baker Tilly Advisory Group, LP and its subsidiary entities provide tax and consulting services to their clients and are not licensed CPA Firms. ©2024 Baker Tilly Municipal Advisors, LLC for the market rate units. The 1,624 square feet of commercial space with estimated sales price of $632 per square foot. The reduced sales proceeds for the affordable units would equate to reduced revenues for 2 (5% of 39 housing units) affordable housing units sold to buyers at 120% AMI. Financial Needs Analysis (But-For Test) Upon approval of a TIF project, the City must make several findings, including the “but for” test: that the proposed development would not reasonably be expected to occur solely through private investment within the reasonably foreseeable future. The Developer has stated the assistance is necessary due to the high costs of developing the site, that includes acquisition of the property and installation of infrastructure, along with the inability of the project to support those costs upon completion. The current estimated project costs ($65,397,132) may be in excess of the estimated future value of the building upon development (subject to total estimated value). Based on the Developer’s stated position relative to the need for tax increment financing assistance, the City could make its “but for” finding and provide tax increment assistance. We recommend, however, that the City also consider an appropriate level and type of TIF assistance for the project based on the information submitted by the Developer. The City’s position relative to the use of tax increment has typically been to finance TIF-eligible extraordinary costs and the level of assistance is in part dictated by the ‘extraordinary’ costs of the project. The initial request for public assistance of $5.9 million for two phases of development was approximately 5% of total development costs. The identified TIF-eligible costs associated with Phase 1 would have been 6.8%. The recommended level of public assistance based on financial need of the project and the identified TIF-eligible costs that are considered extraordinary to the project maintains a public participation level of 5%. The identified costs as recommended for reimbursement through TIF are extraordinary to the project, do not equate to an increased value and generally do not have a funding source to repay. Demolition and site preparation and construction of off-site improvements are extraordinary to the project and are also expected to benefit the overall TIF District. Following thorough evaluation of the project as provided allows the City to be prepared to make an informed “but- for” decision based on the likelihood of the project needing assistance, as well as the appropriate level of assistance. To complete this analysis, we reviewed the Developer’s provided sources and uses of funds for each phase separately and as combined, estimated total net sales proceeds and timing for construction through project completion and sale of housing units and commercial space. The purpose of evaluating the proformas is to understand the potential returns to the Developer through initial property acquisition, development of each phase and completion of the project with anticipated timing for sales of the housing units. The Developer will analyze performance of the project and ability to proceed based on the projected equity returns and need for public assistance as required to meet minimum return thresholds. Generally, should an investor’s rate of return lie below a reasonable range without assistance; we could assume the project as proposed would not move forward without assistance. Should the returns lie within a reasonable range with the assistance, we could assume the amount of assistance tested is appropriate for the project. All such estimates should be viewed as general indicators of performance and not exact forecasts. The number of current and future variables affecting these estimates and actual results are great. There is no set rate of return benchmarks that dictate whether a project needs TIF assistance or not; however, there are market industry standards for certain types of projects, as well as more specific investor/Developer thresholds that need to be achieved. The Developer has indicated a target IRR of 10.49% and within a reasonable range of 8% - 12+%. Without financial assistance from the City, the IRR is below target and market range as projected to be 7.346%. Financial assistance from the City would increase the projected returns as it would reduce the Developer’s permanent equity investment in the project. To understand viability of the project and need for an appropriate level of public assistance, we provided a sensitivity analysis to the proforma with adjustments made to the total level of public assistance and corresponding funding sources, as well as adjustments to the projected sales proceeds. Realizing any adjustments is all subject to market conditions. The purpose of the sensitivity analysis is to test the level of assistance that may be needed using those assumptions to understand if the recommended level of assistance 290 Page 8 Baker Tilly Municipal Advisors, LLC is a registered municipal advisor and controlled subsidiary of Baker Tilly Advisory Group, LP. Baker Tilly Advisory Group, LP and Baker Tilly US, LLP, trading as Baker Tilly, operate under an alternative practice structure and are members of the global network of Baker Tilly International Ltd., the members of which are separate and independent legal entities. Baker Tilly US, LLP is a licensed CPA firm and provides assurance services to its clients. Baker Tilly Advisory Group, LP and its subsidiary entities provide tax and consulting services to their clients and are not licensed CPA Firms. ©2024 Baker Tilly Municipal Advisors, LLC could be consistent with the City’s objectives resulting in less assistance than what has been requested. Table 4 below provides a summary of the sensitivity analysis when assessing the level of public assistance (none provided, requested amount and modified amounts) and potential increases to land sales proceeds to understand the need and level of public assistance as compared to the requested amount. Table 4: Range of Assistance and Projected IRR s The targeted IRR for the project based on the revised project scope and application is 10.49%. Without any public assistance, the IRR is projected to be significantly lower than the Developer’s targeted return. Assistance as initially requested to include additional TIF-eligible costs of the project for Phase 1 and demolition of Phase 2 is projected to result in an IRR of greater than 12% and above the target. Reducing the recommended assistance to only the offsite public improvements would result in a reduced IRR below target to 9.897%. The recommended assistance package that includes demolition and site preparation and offsite public improvements would result in a projected IRR of 10.544% and meets both the reasonable range of an IRR and the Developer’s targeted return threshold. The final two scenarios provide an illustration of how an increase in estimated sales proceeds may impact the need for public assistance and projected IRR. With assistance as recommended of $3,666,396 plus 1% increase in sales proceeds is projected to increase the IRR to 11.53% - above target IRR and still within range. The sales proceeds need to increase by approximately 7% to result in an IRR that is similar to 1% increase plus the recommended level of public assistance of $3,666,396. Conclusion The Developer is proposing a $65 million project comprising of 39 for-sale condominium housing units with supporting commercial space. The Developer initially requested approximately $5.9 million of assistance from the City of Bozeman to finance a portion of the development costs including demolition and site preparation, off- site improvements: roadways, sidewalks, curbs, gutter, alley, etc., off-site soft costs, impact fees, cash-in-lieu of parkland, cash-in-lieu of water rights, and CM fee. The Developer’s application and supporting financial data illustrate a need for public assistance to reduce Developer equity and increase the projected rates of returns. Additional due diligence review of the provided financial information with sensitivity analysis of the assumptions based on market data has resulted in support for the need for public assistance. However, following review of the financial project components of the project, it has been determined that providing financing for certain development costs would be consistent with the city’s use of tax increment financing, but not to the full requested level, based on what is considered extraordinary for the project. It is also important to understand that the projected performance of the project will be dictated by actual market and financial conditions. Should actual sales proceeds greatly exceed current and forecasted market trends, project performance would # Affordable Units Amount of Assistance Estimated Sales Proceeds Total Revenues Estimated Return With Assistance Reduced 2 3,666,396 74,279,000 77,945,396 10.544% No Assistance 2 - 74,279,000 74,279,000 7.346% With Assistance Request 2 5,555,754 74,279,000 79,834,754 12.169% With Assistance 2 4,758,592 74,279,000 79,037,592 11.902% With Assistance Reduced 2 2,919,060 74,279,000 77,198,060 9.897% With Assistance Increase *2 3,666,396 75,014,830 78,681,226 11.530% No Assistance Increase **2 - 79,429,810 79,429,810 11.735% * 1% increase in per square foot sale proceeds ** 7% increase in per square foot sale proceeds 291 Page 9 Baker Tilly Municipal Advisors, LLC is a registered municipal advisor and controlled subsidiary of Baker Tilly Advisory Group, LP. Baker Tilly Advisory Group, LP and Baker Tilly US, LLP, trading as Baker Tilly, operate under an alternative practice structure and are members of the global network of Baker Tilly International Ltd., the members of which are separate and independent legal entities. Baker Tilly US, LLP is a licensed CPA firm and provides assurance services to its clients. Baker Tilly Advisory Group, LP and its subsidiary entities provide tax and consulting services to their clients and are not licensed CPA Firms. ©2024 Baker Tilly Municipal Advisors, LLC be expected to increase, but not to a level significant enough to reduce the need for public assistance. Costs that could be considered to be supported for reimbursement through TIF are listed below as Potential TIF Costs. Identified Project Costs Phase 1 Phase 2 Total Potential TIF Costs Demolition and Site Prep $747,336 $681,196 $1,428,531 $747,336 Off-site improvements: Roadways, sidewalks, curbs, gutters, alley, etc $2,919,060 $0 $2,919,060 $2,919,060 Off-site soft costs $411,000 $0 $411,000 Impact Fees $421,132 $0 $421,132 Cash in Lieu of Parkland $72,000 $0 $72,000 Cash in Lieu of Water Rights $112,547 $0 $112,547 CM Fee $191,483 $0 $191,483 Total TIF Eligible Costs $4,874,558 $681,196 $5,555,754 $3,666,396 Without public assistance the project is expected to generate below market investor returns of 7.346% and below estimated range of 8-12+%. The financial analysis demonstrates that public assistance through TIF from the City of Bozeman has a positive impact on the project and the level of financial assistance to be considered could be considered a reasonable level and provide for a financially feasible project. Based on financial performance of the project following new construction and stabilization, public assistance for certain costs and provided as takeout financing (City debt issuance) may be warranted. The ability of the Developer to obtain financing and using future tax increment revenues for repayment will be subject to credit and marketability of the project. Development of the project site is expected to result in the increase of property values and taxes generated from the site. The projected range of taxable values and correlating tax estimates is included in the chart under Financing Assumptions. The incremental taxes generated from the new taxable value would be used to finance the TIF-eligible costs of the project. Following analysis of the developer’s financing assumptions and considering current market environment, without financial assistance, the project would not be financially feasible. Without assistance, the projected equity rate of return does not meet the Developer’s minimum IRR threshold of 10.49%. The rate of return analysis indicates that the provided financing structure would not be financially viable without one or more of the following: 1) reduction in project costs and/or 2) additional funding sources. With public assistance through tax increment assistance, the projected returns are expected to increase. There are ranges of what would be considered market returns and are generally subject to the project type, market indicators, investor demands and financing structure. The level of public assistance is expected to have an impact on what the projected returns for the project could be. The Developer has requested tax increment financing from the City as a method of providing additional funding required to achieve financial feasibility. The project will be initially financed through private debt and equity. Public assistance would be provided as takeout for financing of identified TIF-eligible project costs following construction of the project and would be based on availability of tax increment revenues as outlined in the 3 scenarios incorporated within Table 3A, 3B and 3C. The City’s public assistance would reduce the total equity investment of the Developer following construction of the project and payoff of construction financing to generate net sales revenues. The recommended level of public assistance of $3,666,396 is based in part on financial need of the project and providing a projected IRR of 10.544% that is within a reasonable range of 8% - 12% and minimum Developer threshold, as well as meeting general policy guidelines for financing of certain extraordinary TIF-eligible costs of the project that cannot be supported by the projected revenues (sales proceeds) of the project itself upon completion. 292 Bozeman Yards BOZEMAN NORTHEAST NEIGHBORHOOD TIF ASSISTANCE REQUEST November | 2024 293 Bozeman Yards Bozeman Northeast Neighborhood TIF Assistance Request 2 Project Summary Bozeman Yards, located in Bozeman's Northeast Neighborhood, includes the construction of a multi- story mixed-use condominium building at 805 North Ida Avenue. The project involves replacing a 9,000 SF warehouse with a 100,000 SF mixed use building with 39 condominiums, a commercial space, various amenities for residents and an underground parking garage. The parking entrances will integrate with the existing alley. Landscape architecture is an important aspect of Bozeman Yards, focusing on creating functional and attractive outdoor spaces. The project aims to create expansive public courtyards that will have a strong connection with the properties to the south including Tinworks. Bozeman Yards will also feature an attractive landscape design that will be visually enhance the streetscape. Bozeman Yards is working with the city to address off-site infrastructure needs. Plans include improving road surfaces, sidewalks, curbs, gutters, and stormwater systems, and updating traffic patterns for better flow and safety on three roadways including Front Street and East Aspen Street. The project also involves critical upgrades to the utility systems (water & sewer). Funding through TIF assistance is sought to support these public infrastructure improvements. This assistance will help with roads, sidewalks, and other critical infrastructure updates, which will greatly benefit the NE Neighborhood and the city. Bozeman Yards, with the help of TIF assistance, will fill in critical gaps in the existing transportation network that will increase the pedestrian and multimodal opportunities for the city. This project, through the infrastructure upgrades will connect a small city park into a larger park and trail system. The project aims to contribute positively to NE Bozeman's development. 294 Bozeman Yards Bozeman Northeast Neighborhood TIF Assistance Request 3 PROPERTY INFORMATION • Property Address • Legal Description • Geo-Codes APPLICANT INFORMATION • Property Owner & Developer • Project Representative COMPANY PROFILE • Business Location • Year Business Established • Type of Business • Business Plan Outline PROJECT INFO & DETAIL • Project Name • Project Information • Project Team • Property Status • Type of TIF Assistance • Value of TIF • Estimated Occupancy PROJECT DESCRIPTION • Introduction • Building Design • Anticipated Infrastructure Improvements • Access & Parking • Demolition • Schedule PUBLIC BENEFITS ANAYLSIS • Elimination of Blight • Creation of New Office/Retail Space • Urban Living Options • Enhanced Public Space • Increased Tax Revenue • New Jobs & Local Sales • Completing Infrastructure PROJECT TIMELINE MAPS, EXHIBITS, PHOTOGRAPHS & PLANS • Site Photos & Context • Survey • Vicinity Map & Zoning Map • Renderings • Floor Plans CRITERIA FOR TIF ASSISTANCE PART 1 295 Bozeman Yards Bozeman Northeast Neighborhood TIF Assistance Request 4 Property Address: 805 North Ida Avenue Legal Description: NORTHERN PACIFIC ADD, S06, T02 S, R06 E, BLOCK 104, LOT 17-26 (.815 acres) Property Geo-Code: 06-0799-06-4-20-16-0000 Property Owner Brick Capital & Developer Jackadoo, LP Project Intrinsik Architecture, Inc. Representative: PROPERTY & APPLICANT INFO - PART 1 296 Bozeman Yards Bozeman Northeast Neighborhood TIF Assistance Request 5 APPLICATION FORM - PART 1 297 Bozeman Yards Bozeman Northeast Neighborhood TIF Assistance Request 6 Business Location: Brick Capital is located in Philadelphia. Mailing address is c/o 106 East Babcock Street, Suite 1A, Bozeman, MT 59715. Year Business Established: Brick Capital, LLC (2017) formerly operated under different entity name Jackadoo, LP (2021) Type of Business Brick Capital is a development company that owns 805 North Ida Outline Business Plan: See following pages for proposed development plans and business plan, pro forma budget, tax analysis, and source and use of funds. (Note: the project plans and estimates included in this application are for the latest projections and will continue to evolve through architecture and engineering design development). COMPANY PROFILE - PART 1 298 Bozeman Yards Bozeman Northeast Neighborhood TIF Assistance Request 7 PROJECT INFO & DETAILS - PART 1 Project Name: “Bozeman Yards” Site: The subject site is one parcel which is bound by East Aspen Street (unbuilt), Front Street and a publicly dedicated 16’ R.O.W. alley. 805 North Ida Avenue is a .815 acre property with a 9,000 square foot warehouse. Project Information: Bozeman Yards is a mixed-use for-sale condominium development: 805 North Ida Avenue will be an approximate 100,000 GSF 5-story mixed-use development, that will include 39 condos, ground floor commercial, amenities, and an underground parking garage with 52 stalls. *The project will include a 5% below market component at 120% AMI (for-sale condominiums). Property Manager: Brick Capital, LLC General Contractor: Langlas & Associates Architect of Record: SMA Architecture + Design Project Manager: Bridger Shadows, Forrest Wesen Property Status: 805 North Ida Avenue is vaccant. Type of TIF Assistance Sought: Assistance with Cash in Lieu of Parkland, Cash in Lieu of Water Rights, impact fees, demolition & site prep costs, engineering and construction costs for off-site infrastructure (including curb, utilities, gutters & sidewalks). Value of TIF Assistance Sought $3,666,396 Estimated Occupancy: Phase 1: Q4 2027 299 Bozeman Yards Bozeman Northeast Neighborhood TIF Assistance Request 8 PROJECT NARRATIVE - PART 1 Intro The project covers .815 acres zoned B-2M, in the Northeast Neighborhood in northeastern Bozeman. The property is located along North Ida Avenue, Front Street, East Tamarack Street, and the future East Aspen Street. At 805 North Ida Avenue, the plan is for a 5-story, 100,000 SF mixed-use building with 39 condos and an underground parking garage for 52 vehicles. This application seeks TIF assistance to offset eligible development related costs and to fund the development of off-site and utility infrastructure. In order for the project to be economically feasible, it is imperative that these costs are funded through the TIF Program. Building Design The current design for the project includes 52 off-street parking spaces in a basement garage to accommodate a total of 39 units. These units offer a mix of 1, 2, and 3-bedroom varieties. The design concept for the project focuses on practicality and efficient use of space, with an emphasis on natural light and facilitating outdoor access for residents. The building is planned to be integrated thoughtfully into the neighborhood, with a design that complements and enhances the local landscape and community character. The project aims to create public courtyards that will have a strong connection with the properties to the south including Tinworks. Bozeman Yards plans to use resilient and visually appealing plant and tree designs to enhance the streetscape and complement the neighborhood. The end goal of the project is to create unique structures that improve with the surrounding area, activate the depot, and provide green spaces to enhance the neighborhood's ambiance. The project is designed with balconies to offer outdoor space for residents, allowing for views of the surrounding mountain ranges. The overall layout of the building is aimed at creating a comfortable and accessible living environment that fits into the historical context of the Northeast Neighborhood. Anticipated Infrastructure improvements Nestled in the heart of the city, Bozeman Yards is uniquely enveloped by public rights-of-way on three sides, presenting both a challenge and an opportunity. Its current state, punctuated by incomplete streets and aging utility infrastructure, calls for a visionary transformation. Acknowledging this need, Bozeman Yards seeks a symbiotic relationship with the City of Bozeman, aiming to elevate both the development and its immediate surroundings. Envisioned enhancements span a spectrum from the foundational – like paving and the establishment of the alley – to refining the water, sewer, and stormwater systems. Moreover, North Ida Avenue to East Tamarack Street are earmarked for comprehensive upgrades, integrating them into the fabric of the renewed district. A cornerstone of this revitalization strategy involves transitioning vital utilities such as water, sewer 300 Bozeman Yards Bozeman Northeast Neighborhood TIF Assistance Request 9 lines, and franchise utilities underground. This not only enhances aesthetics but also ensures long- term functional efficacy. However, realizing this transformative vision comes with its own set of economic challenges. Therefore, a strategic partnership with the city, augmented by the TIF assistance program, becomes imperative to shoulder the financial weight of these off-site improvements, and related development costs. In collaboration with Sanderson Stewart, Bozeman Yard's blueprint for off-site improvements has been meticulously curated, ensuring it aligns with the broader aspirations of the neighborhood. This commitment extends beyond Bozeman Yards, promising to be a cornerstone for adjacent developments like Wildlands, Tinworks and the planned Cloverleaf (former Bronken site) project. Aspen Street will be constructed to a standard urban street section where one doesn’t exist today. The street will be 35ft wide, located within the existing 60ft right-of-way, with curb and gutter, boulevards, sidewalks, an extension of the sanitary sewer main and service stubs as well as water main and service stubs. Storm water improvements will include curb inlets with underground detention facilities. There will be no public utility extensions within this section. Storm water improvements will include curb inlets with an underground detention facility. Front Street will continue from previous improvements on Tamarack Street. This will be a standard urban street section with a 31ft width located within a 50ft right-of-way, with curb and gutter, boulevards, sidewalks, an extension of the sanitary sewer main and service stubs as well as water main and service stubs. The portion of Front St near the Northern Pacific Park will be flanked with diagonal parking. Access and Parking An alley situated mid block will serve as the main access point for the underground parking garage. This alley, accessible from Front Street on the eastern portion of the site, enhances the logistical flow of the development. The building will feature approximately 52 underground parking spaces, complemented by on-street parking. Committing to an underground parking structure is a significant and costly endeavor, especially given challenges like the water table and intricate design considerations. However, this approach is justified. It not only addresses the parking needs for future residents but also demonstrates efficient use of land. Historically, such an underground solution was deemed economically unviable, but its realization in this project underscores a commitment to blending functionality and streetscape aesthetics. Demolition 805 North Ida Avenue is a .815 acre property with a 9,000 square foot warehouse. The property is currently unoccupied and will be demolished ahead of construction. The aging building, as is currently situated on the site, take advantage of an underutilized piece of the northside while carefully taking into consideration the identity of this unique piece of the Bozeman fabric. Demolition will also include the removal of the existing asphalt and road base section of Front Street, Ida Avenue, and Aspen Street. The portion of Aspen Street that is not developed will include topsoil removal and unclassified excavation along the street alignment. Portions of Northern Pacific Park will PROJECT NARRATIVE - PART 1 301 Bozeman Yards Bozeman Northeast Neighborhood TIF Assistance Request 10 be impacted by the construction of the underground storm water detention facilities and will then be restored. Schedule Please see a more detailed timeline on the following page. PROJECT NARRATIVE - PART 1 302 Bozeman Yards Bozeman Northeast Neighborhood TIF Assistance Request 11 Site acquisition March 2023 Development entitlements submittal (Site Plan) May 2024 Infrastructure entitlements submittal Sept. 2024 Est. start of infrastructure construction Nov. 2025 Development building permit submittal Aug. 2025 Start of development construction Nov. 2025 Est. completion of all off-site infrastructure construction Dec. 2027 Est. completion of development construction (occupancy) Dec. 2027 PROJECTED PROJECT TIMELINE - PART 1 303 Bozeman Yards Bozeman Northeast Neighborhood TIF Assistance Request 12 Elimination of Blight Currently the parking lots, sidewalks and curbs in and around the site are not up to city standards and are unsafe. As part of this project and site development, infrastructure will contribute to complete and improve conditions on East Tamarack Street and East Aspen Street. Rather than unsightly, vanishing streets to nowhere, the block will be completed and built to city engineering standards. This means pedestrian friendly routes, sidewalks and boulevard tree plantings. Creation of New Office/Retail Spaces 805 North Ida features ground level commercial space which total 1,624 SF. The use(s) are TBD, but the spaces will be designed for a range of uses. Urban Living Options This project proposes a variety of dwelling types including 1, 2, & 3 bedroom units. The design of the building and layout of dwelling units will maximize natural light. This site is located in the heart of the Northeast Neighborhood and residents will enjoy options to access local eateries, music venues, services, Downtown, Cannery District and Mid Town. Expansive Courtyards The project aims to create expansive public courtyards that will have a strong connection with the properties to the south including Tinworks. Increased Tax Revenue: The development of Bozeman Yards will lead to increased property tax revenues, which can be funneled back into future initiatives within the Northeast Neighborhood. The anticipated tax projections for Bozeman Yards are detailed as follows: Annual New Taxes $561,000 Payback to TIF Requested $3,666,396 Estimated Payback Period 6.5 Years New Jobs and Local Sales The project development itself will create jobs in the form of design and construction opportunities for local businesses. Upon final build out, the commercial space, totaling 1,624 SF, will generate office or retail based jobs. Additionally, property management and maintenance positions will be required for the post-occupancy operations and upkeep. Completing streets, extending infrastructure, storm water capture: The project will complete or improve three city streets to a city standard. This will dramatically improve the overall connectivity of the street network but will also dramatically improve pedestrian PUBLIC BENEFITS - PART 1 304 Bozeman Yards Bozeman Northeast Neighborhood TIF Assistance Request 13 safety in this area. By expanding the infrastructure in this area, it will allow for more development to happen in this area as the burden of off site infrastructure will be eliminated. Finally, the existing design doesn’t accommodate any stormwater and as such it goes where the path of least resistance is. These new streets will direct it to stormwater to design collection systems which will reduce the excess water from these impervious areas from flowing onto neighboring properties. Provide detailed explanation on impact on the timeline if TIF assistance is not granted at the requested amount. The securing of TIF Assistance is pivotal for the Bozeman Yards project as the required off-site infrastructure improvements are vast and expensive. The level of necessary upgrades is especially rare for an infill redevelopment lot and equates to a significant portion of the NE Neighborhood. Given the level of necessary improvements, the financing based on the final budget becomes precarious, rendering the project costly prohibitive, without the TIF assistance. Currently, Gallatin Valley grapples with soaring construction costs, driven by rising material expenses and a local labor market that is scarce and increasingly expensive. Simultaneously, as the valley anticipates a surge in residential units over the upcoming 12 to 18 months, a dip in for-sale prices is expected and already occuring. Compounding these challenges, we're witnessing interest rates surge to levels unseen in the past two decades. This environment, characterized by spiraling construction costs and a slowdown in sales compared to the buoyancy of the past two years, severely strains the project's financial framework. Furthermore, the responsibility of typically city-managed infrastructure improvements shifts to this development (while benefitting many adjacent properties, several with future development plans). Given that these off-site improvements don't translate to a tangible return in sales, their incorporation presents a daunting financial hurdle. This is especially pronounced considering the substantial capital required for their completion, which is very difficult with traditional sources of capital. These cumulative factors pose significant obstacles for Bozeman Yards, especially given its desire to bring additional housing opportunities to the northeast neighborhood and help foster growth prospects in this section of Bozeman. For a project of Bozeman Yard's magnitude to materialize, it's imperative for the city to bridge the infrastructure gap. This will not only facilitate the project's vision of enhancing housing options in the northeast neighborhood but will also functionally upgrade the neighborhoods outdated infrastructure necessary to support ongoing growth. PUBLIC BENEFITS - PART 1 305 Bozeman Yards Bozeman Northeast Neighborhood TIF Assistance Request 14 IMAGES, MAPS, EXHIBITS, PLANS 306 Bozeman Yards Bozeman Northeast Neighborhood TIF Assistance Request 15 Perspective Looking Northwest Perspective Looking South SITE IMAGES - PART 1 307 Bozeman Yards Bozeman Northeast Neighborhood TIF Assistance Request 16 805 North Ida - Perspective Looking Southwest Perspective Looking South SITE IMAGES - PART 1 308 Bozeman Yards Bozeman Northeast Neighborhood TIF Assistance Request 17 Perspective Looking North - North Ida Avenue 805 North Ida - Perspective Looking Northwest - Future Aspen Street SITE IMAGES - PART 1 309 Bozeman Yards Bozeman Northeast Neighborhood TIF Assistance Request 18 SITE DIAGRAM & VICINITY - PART 1 Vicinity Map Existing Zoning Map 310 Bozeman Yards Bozeman Northeast Neighborhood TIF Assistance Request 19 SITE SURVEY 311 Bozeman Yards Bozeman Northeast Neighborhood TIF Assistance Request 20 WORKING SITE PLAN 312 Bozeman Yards Bozeman Northeast Neighborhood TIF Assistance Request 21 FLOOR PLANS - PART 1 313 Bozeman Yards Bozeman Northeast Neighborhood TIF Assistance Request 22 FLOOR PLANS - PART 1 314 Bozeman Yards Bozeman Northeast Neighborhood TIF Assistance Request 23 FLOOR PLANS - PART 1 315 Bozeman Yards Bozeman Northeast Neighborhood TIF Assistance Request 24 FLOOR PLANS - PART 1 316 Bozeman Yards Bozeman Northeast Neighborhood TIF Assistance Request 25 FLOOR PLANS - PART 1 317 Bozeman Yards Bozeman Northeast Neighborhood TIF Assistance Request 26 FLOOR PLANS - PART 1 318 Bozeman Yards Bozeman Northeast Neighborhood TIF Assistance Request 27 ELEVATIONS - PART 1 319 Bozeman Yards Bozeman Northeast Neighborhood TIF Assistance Request 28 ELEVATIONS - PART 1 320 Bozeman Yards Bozeman Northeast Neighborhood TIF Assistance Request 29 PERSPECTIVE IMAGES - PART 1 Conceptual Perspective From NE 805 North Ida - Conceptual Perspective From Southeast 321 Bozeman Yards Bozeman Northeast Neighborhood TIF Assistance Request 30 PERSPECTIVE IMAGES - PART 1 Conceptual Perspective From Sidewalk Conceptual Perspective From Southeast 322 Bozeman Yards Bozeman Northeast Neighborhood TIF Assistance Request 31 CRITERIA FOR TIF ASSISTANCE - PART 1 Ensure the health, safety, and security of the District 1. Infrastructure Improvement: Aspen Street will be constructed to a standard urban street section where one doesn’t exist today. The street will be 35ft wide, located within 60ft right-of-way, with curb and gutter, boulevards, sidewalks, an extension of the sanitary sewer main and service stubs as well as water main and service stubs. Storm water improvements will include curb inlets with underground detention facilities. Ida Avenue will include an urban street section with a 27ft width in 45ft right-of-way with curb and gutter, boulevards, and sidewalks. There will be no public utility extensions within this section. Front Street will continue from previous improvements on Tamarack Street. This will be a standard urban street section with a 31ft width located within a 50ft right-of-way, with curb and gutter, boulevards, sidewalks, an extension of the sanitary sewer main and service stubs as well as water main and service stubs. The portion of Front Street near the Northern Pacific Park will be flanked with diagonal parking. The comprehensive infrastructure uplift will elevate the area's aesthetics and also enhance its functionality and walkability. Beyond the projected tax revenue, the development and off site infrastructure will enrich the pedestrian experience for residents and visions of the NE Neighborhood. Furthermore, this will increase the overall connectivity and accessibility to trail systems, Story Mill Park, and panoramic views of the Bridger Mountains. By replacing the aging warehouses and initiating significant off-site infrastructure endeavors, the community is set to benefit substantially. The neighborhood's transition from an industrial hub to a vibrant community with rich history has necessitated significant infrastructural enhancements to accommodate the growth. These progressive upgrades, introduced by discerning development, symbolize a long-term commitment to fostering the Northeast Neighborhood's growth. The TIF assistance will significantly benefit local businesses such as Mountains Walking, Bozeman Brewing, Fink’s Deli, Wild Crumb, Treeline Coffee Roasters, Zuri Salon, and many others, including downtown establishments frequented by the development's future residents. The improvements in streets, landscaping, utilities, traffic patterns, walkways, and other vital connectors will stimulate and encourage continued growth, nurturing the emergence of top-tier cafes, coffee shops, eateries, and other businesses, further elevating the area's character. 2. Multimodal Transportation: The upcoming project at 805 North Ida emphasizes an infrastructure that guarantees secure, efficient, and universal accessibility for all transportation means throughout the district. Pedestrian amenities and connections will be built on all planned street frontages, as well as curb bulbs to make street crossing 6/6 4/4 323 Bozeman Yards Bozeman Northeast Neighborhood TIF Assistance Request 32 shorter for the pedestrian while slowing traffic. These upgrades will dramatically improve the pedestrian environment in this portion of NE Bozeman. Currently, the site contains a single-story industrial building. The replacement will be a contemporary 5-story mixed-use condominium building. As a part of this transformation, roadways will undergo enhancements to improve connectivity with surrounding streets. Additionally, the undeveloped alley will be revamped, providing a direct route to the underground garage. Strategically located in the Northeast neighborhood, these developments enjoy the proximity to pivotal transit lines, trail systems, and a plethora of outdoor amenities, including direct views of the Bridger Mountains. Given its closeness to the Northeast Neighborhood and the existing urban sidewalk network, the site positions itself as a prime destination for residents and visitors alike. The overarching goal of these enhancements is to breathe new life into the district, forging a clean, secure, and inviting ambiance. 3. Public Utilities: The design of the development prioritizes the seamless integration of public utilities, ensuring they remain unobtrusive both visually and physically. By relocating utilities underground, we’ll effectively remove any overhead connections, resulting in a more streamlined and aesthetically pleasing environment around the buildings. This strategic decision not only elevates the experience for residents and users but also enhances the pedestrian atmosphere within the neighborhood. It is our hope that the project will act as a driving force for ongoing enhancements along North Ida Avenue and East Tamarack Street, fostering pedestrian accessibility and harmonizing with the established anchor buildings in the vicinity. Balance Commerce and Livability within the Mixed-Use Framework 4. Mix of Uses: 805 North Ida is squarely focused on livability. The building is equipped with its own underground parking garage and is being meticulously designed to accommodate a diverse range of uses, including residential condos, commercial space, and amenities. The enhancements planned for East Tamarack Street, North Ida Avenue ROW, and East Aspen Street are geared toward fostering a safer and more vibrant community experience. The design team remains dedicated to ensuring the mix of uses meet the unique character of the neighborhood, while enhancing the different uses intended to meet the growing demand to live in the neighborhood. The vision of augmenting housing is being actualized by building vertically, ensuring a minimal footprint in an effective and appropriate way by significantly investing in the streetscapes, infrastructure, curb appeal, open space, and more. This strategy respects the neighborhood's historical and social fabric that serves as a bridge to some of the most notable outdoor amenities in Bozeman. 2/2 4/4 CRITERIA FOR TIF ASSISTANCE - PART 1 324 Bozeman Yards Bozeman Northeast Neighborhood TIF Assistance Request 33 5. Community Housing: This project includes 5% below market rate units, which will be for sale and as such will be restricted to 120% AMI price range. Honor the Unique Character and Vitality of the District 6. Character: Nestled in the heart of the northeast neighborhood, Bozeman Yards is focused on celebrating the neighborhood’s storied past. Bozeman Yards is a unique composition. This translates into a wood finish, accentuated by overhangs and planters that line the private residential entrances on the first floor. As one's gaze ascends, the upper levels from the second to the 5th floor showcasing more wood, known for its evolving patina that deepens gracefully over time, symbolizing both sustainability and aesthetic evolution. Such deliberate material transitions ensure Bozeman Yards weaves into the fabric of the Northeast Neighborhood. The structural design of Bozeman Yards balances vibrancy and subtlety. Its form encourages street-level interactions, fostering community spirit and engagement. Yet, it does so while maintaining a respectful profile, ensuring it complements the neighborhood’s history. With pedestrian experience at the forefront of our design ethos, vehicular movement is intuitively channeled into an underground garage, minimizing surface-level disruptions and maximizing pedestrian safety and enjoyment. 7. Sustainability: Beyond simply adding taxable units, Bozeman Yards cultivates a more walkable environment, inviting neighbors and visitors to relish in its pedestrian plaza. The exterior materials chosen for Bozeman Yards are not only low-maintenance but also ensure enduring aesthetics and structural integrity. These materials have been selected to resonate with the architectural language of the northeast neighborhood and its existing structures. One of the long-term visions for Bozeman Yards is to preserve the character and unique nature of the neighborhood, celebrating the elements that have made it a special place to live, work, and play. Keeping future residents in mind, dedicated power points will be integrated into the parking areas, facilitating electric vehicle charging stations to embrace the evolving demand for electric vehicles. Public Open Space is Essential to a Healthy and Appealing Urban Environment 8. Open Space: Bozeman Yards is poised to significantly transform the local environment by establishing open spaces. The vast open region fronting Aspen Street, complemented by the other designated project frontages, stands to enrich the character of the neighborhood. The integration of sidewalks, trees, unique hardscapes, and thoughtfully designed landscaping will create inviting pockets for residents to enjoy. An upcoming north-south street, spanning North Ida Avenue to East Tamarack Street, is set to 2/2 4/6 CRITERIA FOR TIF ASSISTANCE - PART 1 2/2 3/4 325 Bozeman Yards Bozeman Northeast Neighborhood TIF Assistance Request 34 enhance pedestrian connectivity within Bozeman Yards. This design ensures effortless access to renowned trail systems leading to iconic destinations such as the Bridger Mountains and Story Mill Park, underscoring the allure of downtown's premium outdoor offerings. A highlight of this project is the extensive off-site improvements planned for North Ida Avenue R.O.W (Opportunity to expand boulder park), East Tamarack Street, East Aspen Street, and the shared alley. The alley will undergo a transformation, evolving into a fully- fledged road that serves as an entrance to the parking garage. This rejuvenated space will feature a paved pathway, bordered by sidewalks, greenery, and welcoming communal areas, beckoning residents to gather and appreciate the scenic surroundings. To further elevate the resident experience, Bozeman Yards will create a strong connection to the outdoor environment. 9. Landscaping: Bozeman Yards contributes significantly to the area by designating new spaces for parks and open areas. The project will be public facing, expansive and an amenity to the community with the goal of celebrating the existing neighborhood vibe. The enhanced open space spanning East North Ida Ave will revolutionize the neighborhood experience. It introduces sidewalks, trees, and carefully curated landscaping, creating welcoming spots for residents to relax and spaces where children and pets can play. The introduction of a new north-south street will promote pedestrian movement through Bozeman Yards, seamlessly connecting residents to the broader northeast neighborhood and the North Pacific Park situated just north of the site. Additional features will include a paved road North/South of North Ida Avenue complemented by sidewalks, lush landscaping, and communal areas where residents can gather and have immediate access to the surroundings. The Costs of Projects and Programs shall be Weighed Against their Benefits of the District. 10. Return on Investment: Bozeman Yard's total project cost is estimated to be over $65M and the TIF request is approximately $3.7M. This significant investment in Bozeman Yards is projected to add tens of millions of dollars in new residential value. Given these figures, the anticipated payback period will be just 6.5 years, but it's reasonable to expect a shorter duration considering the likely upticks in real estate taxes. Beyond these direct fiscal benefits, the community stands to gain from increased local spending by the new residents and the economic stimulus from the wages they generate. It's noteworthy to mention that these projections do not account for several other potential projects that could be pursued in the northeast neighborhood in the coming years. 2/2 CRITERIA FOR TIF ASSISTANCE - PART 1 4/4 326 Bozeman Yards Bozeman Northeast Neighborhood TIF Assistance Request 35 The City shall not Limit its Vision for the District Improvements to Monies Available Solely through the TIF Funding 11. This project involves and/or will encourage public-private partnerships that will add value to the District and its investments. Bozeman Yards encompasses substantial investments in the community, including over $2.9M in public infrastructure upgrades. These enhancements not only elevate the development itself but also bring significant improvements to the broader northeast neighborhood. Amenities such as sidewalks, streetscapes, open courtyard space are all part of this comprehensive initiative. In addition, the project will include a commercial component that will be open to a mix of uses and will further add significant value by adding to the already strong retail presence in the NE neighborhood with a continuation of businesses north of the Northeast Neighborhood. Since Bozeman Yards marks a consistent and significant investment in rejuvenating the local landscape and will be one of the first projects of its scale that will meaningfully elevate the neighborhood overall viability. Projects shall Consider Impacts on Adjacent Neighborhoods 12. The project is complimentary to adjacent neighborhoods, not just Northeast: Bozeman Yards stands as a pivotal landmark just blocks north of Main Street. Its strategic location makes downtown merely minutes away, be it on foot or by bicycle. Bozeman Yards is set to rejuvenate its surroundings, amplifying the area's visibility and drawing more visitors to local businesses, trail systems, and recreational spaces. Furthermore, its positioning in the northeast neighborhood provides unparalleled access to the Bridgers. Whether it's a short 20-minute journey to the Bridger Bowl or a an hour drive to Big Sky, the convenience is unmistakable. Developmental momentum to the north of Bozeman Yards, especially towards Bridger Drive, has been considerable, with over 1 million square feet dedicated to a blend of residential and commercial spaces. The Northeast Neighborhood acts as a connection point, bridging the gap between downtown and the Bridger Drive community. This nexus is poised to boost the profile of restaurants, cafes, bars, and other establishments. Given its central position relative to the bustling activity both to its north and south leading to Main Street, Bozeman Yards is destined to become a vibrant hub that encapsulates the ongoing urban transformation. 4/4 CRITERIA FOR TIF ASSISTANCE - PART 1 1/2 TOTAL POINTS: 38/42 327 Bozeman Yards Bozeman Northeast Neighborhood TIF Assistance Request 36 PART 2 SOURCES & USE OF FUNDS DEVELOPMENT BUDGET PROJECT COSTS TIF ELIGIBLE EXPENSES 328 Bozeman Yards Bozeman Northeast Neighborhood TIF Assistance Request 37 SOURCES & USE OF FUNDS - PART 2 SOURCES Debt $45,574,432 Equity $19,822,700 Total Sources $65,397,132 805 North Ida USES Acquisition Land Value $3,500,000 Closing Costs $103,000 Total Acquisition Cost $3,603,000 Construction Hard Costs $47,796,000 Soft Costs $5,641,987 FF&E $500,000 Financing Fee $451,145 CM Fee $1,361,000 Operating Shortfalls $6,044,000 Total Capitalization $65,397,132 329 Bozeman Yards Bozeman Northeast Neighborhood TIF Assistance Request 38 DEVELOPMENT BUDGET - PART 2 805 North Ida Development Budget Acquisition Land Value $3,500,000 Closing Costs $103,000 Total Acquisition Cost $3,603,000 Construction Hard Costs $47,796,000 Soft Costs $5,641,987 FF&E $500,000 Financing Fee $451,145 CM Fee $1,361,000 Operating Shortfalls $6,044,000 Total Capitalization $65,397,132 330 Bozeman Yards Bozeman Northeast Neighborhood TIF Assistance Request 39 SUMMARY - PART 2 331 Bozeman Yards Bozeman Northeast Neighborhood TIF Assistance Request 40 REFERENCE SURVEY - PART 2 332 Bozeman Yards Bozeman Northeast Neighborhood TIF Assistance Request 41 REFERENCE SITE PLAN - PART 2 Note: Conceptual Site Plan 333 Bozeman Yards Bozeman Northeast Neighborhood TIF Assistance Request 42 PROJECT COSTS TOTAL - PART 2 334 Bozeman Yards Bozeman Northeast Neighborhood TIF Assistance Request 43 PROJECT COSTS REFERENCE DIAGRAM - PART 2 Notes: • Conceptual Site Plan • Colors correspond with off site improvement estimates on subsequent pages 335 Bozeman Yards Bozeman Northeast Neighborhood TIF Assistance Request 44 PROJECT COSTS LIGHT GREEN - PART 2 336 Bozeman Yards Bozeman Northeast Neighborhood TIF Assistance Request 45 PROJECT COSTS ORANGE - PART 2 337 Bozeman Yards Bozeman Northeast Neighborhood TIF Assistance Request 46 PROJECT COSTS YELLOW - PART 2 338 Bozeman Yards Bozeman Northeast Neighborhood TIF Assistance Request 47 PROJECT COSTS PURPLE - PART 2 339 Bozeman Yards Bozeman Northeast Neighborhood TIF Assistance Request 48 PROJECT COSTS PINK - PART 2 340 Bozeman Yards Bozeman Northeast Neighborhood TIF Assistance Request 49 PROJECT COSTS PINK - PART 2 341 Bozeman Yards Bozeman Northeast Neighborhood TIF Assistance Request 50 PROJECT COSTS BOULEVARDS - PART 2 342 Bozeman Yards Bozeman Northeast Neighborhood TIF Assistance Request 51 TIF ELIGIBLE EXPENSES - PART 2 Eligible TIF Expenses Total Demolition & Site Prep $747,336 Off-site improvements: Roadways, sidewalks, curbs, gutters, alley, etc $2,919,060 Total TIF Requested $3,666,396 343 DEVELOPMENT AGREEMENT (Bozeman Yards Project) This DEVELOPMENT AGREEMENT (this “Agreement”) is dated as of [______________], 2024 by and between JACKADOO, LP, and its permitted successors and assigns (collectively, the “Developer”), and the CITY OF BOZEMAN, MONTANA, 121 N. Rouse Ave., Bozeman, Montana 59771 (the “City”). The Developer and the City are each individually referred to herein as a “Party” and collectively as the “Parties.” RECITALS: WHEREAS, under the provisions of Montana Code Annotated, Title 7, Chapter 15, Parts 42 and 43, as amended (the “Act”), the City is authorized to create urban renewal areas, prepare and adopt an urban renewal plan therefor and amendments thereto, undertake urban renewal projects therein, provide for the segregation and collection of tax increment with respect to property taxes collected in such areas, and apply tax increment revenues derived from projects undertaken within the urban renewal area to pay eligible costs; WHEREAS, pursuant to the Act and Ordinance No. 1655 adopted by the City Commission of the City (the “City Commission”) on November 28, 2005, the City has created the Northeast Urban Renewal District (the “District”) as an urban renewal district and has approved the Northeast Urban Renewal Plan (the “Plan”) as an urban renewal plan in accordance with the Act, which Plan provides for the segregation and collection of tax increment revenues with respect to the District; WHEREAS, the Developer proposes to undertake the construction of a mixed use development consisting of approximately 39 residential condominium units, a commercial space, and an underground parking garage; public improvements including improving road surfaces, sidewalks, curbs, gutters and stormwater systems, critical updates to water and sewer infrastructure, and updating traffic patterns for better flow and safety on Front Street, East Aspen Street and North Ida Avenue; and related improvements (the “Project”), on land located in the District at North Ida Avenue and East Aspen Street, which is legally described on Exhibit B hereto (the “Land”); WHEREAS, pursuant to Resolution No. 5663 adopted on November 26, 2024, the City Commission approved the Project as an urban renewal project under the Plan and the Act and authorized the use of tax increment revenue of the District to reimburse the Developer for certain eligible costs of the Project described more particularly on Exhibit C hereto (the “Eligible Costs”) in the maximum amount of $3,666,396, subject to the terms and conditions of this Agreement; and WHEREAS, certain of the Eligible Costs are costs paid by the Developer in connection with the design, engineering, work, construction, materials, equipment, and other improvements eligible to be reimbursed by Tax Increment, which improvements are identified as such on Exhibit C hereto (the “Infrastructure Improvements”), and certain of the Eligible Costs are costs to be paid by the Developer as fees or charges pertaining to the Project, which fees and charges are identified as such on Exhibit C hereto (the “Project Fees and Charges”); and 344 2 WHEREAS, the City Commission may determine in its sole discretion to issue tax increment urban renewal revenue bonds in one or more series (the “Bonds”) to finance all or a portion of the Eligible Costs to be reimbursed to the Developer in the maximum amount of $3,666,396 and pay associated costs of the financing; and WHEREAS, the Parties desire to enter into this Agreement which sets forth the obligations and commitments of the Parties with respect to the Project. NOW, THEREFORE, the City and the Developer, pursuant to the Act, each in consideration of the representations, covenants and agreements of the other, as set forth herein, mutually represent, covenant and agree as follows: Section 1. Definitions; Rules of Interpretation; Exhibits. 1.1. Definitions. For all purposes of this Agreement, except as otherwise expressly provided or unless the context clearly requires otherwise, the following terms have the meanings assigned to them, respectively: “Act” means Montana Code Annotated, Title 7, Chapter 15, Parts 42 and 43, as amended or supplemented. “Agreement” means this Development Agreement, dated as of _____________, by and between the City and the Developer, as it may be amended or supplemented from time to time in accordance with the terms hereof. “Bonds” has the meaning given in the Recitals above. “City” means the City of Bozeman, Montana, or any successors to its functions under this Agreement. “City Commission” means the governing body of the City. “Developer” means Jackadoo, LP, a Montana limited partnership, and its successors and assigns in accordance with and as permitted under this Agreement. “Developer Certificate” means the certificate attached hereto as Exhibit E. “District” means the Northeast Urban Renewal District, an urban renewal district created by the Ordinance pursuant to the Act, as such may be enlarged or reduced from time to time in accordance with the Act. “DOR” means the State of Montana Department of Revenue. “Eligible Costs” means the costs identified as such on the attached Exhibit C. “Environmental Laws and Regulations” means and includes the Federal Comprehensive Environmental Compensation Response and Liability Act (“CERCLA” or the “Federal Superfund Act”) as amended by the Superfund Amendments and Reauthorization Act of 1986 345 3 (“SARA”), 42 U.S.C. §§ 9601 et seq.; the Federal Resource Conservation and Recovery Act of 1976 (“RCRA”), 42 U.S.C. §§ 6901 et seq.; the Clean Water Act, 33 U.S.C. § 1321 et seq.; and the Clean Air Act, 42 U.S.C. §§ 7401 et seq., all as the same may be from time to time amended, and any other federal, state, county, municipal, local or other statute, code, law, ordinance, regulation, requirement or rule which may relate to or deal with human health or the environment including without limitation all land use, zoning, and stormwater control regulations as well as all regulations promulgated by a regulatory body pursuant to any statute, code, law, ordinance, regulation, requirement or rule. “Fiscal Year” means the period commencing on the first day of July of any year and ending on the last day of June of the next calendar year, or any other twelve-month period authorized by law and specified by the Commission as the City’s fiscal year. “Indemnified Parties” has the meaning given to it in Section 7.1. “Infrastructure Improvements” means the design, engineering, work, construction, materials, equipment, and the other improvements, the costs of which form a part of the Eligible Costs described as such in Exhibit C hereto, as the same may be amended or supplemented from time to time, in accordance with the terms hereof. “Land” has the meaning given to it in the recitals hereof. “Land Use Regulations” means all federal, state and local laws, rules, regulations, ordinances and plans relating to or governing the development or use of the Land or the Project. “Milestone” of “Milestones” has the meaning given in Section 3.4 hereof. “Milestone Date” or “Milestone Dates” has the meaning given in Section 3.4 hereof. “Ordinance” has the meaning given to it in the recitals hereof. “Original Resolution” means Resolution No. 4801, adopted by the City Commission on May 22, 2017, pursuant to which the City issued the Series 2017 Bond. “Person” means any individual, corporation, limited liability company, partnership, limited liability partnership, joint venture, association, joint-stock company, trust, unincorporated organization or government or any agency or political subdivision thereof. “Prevailing Wage Rates” means the Montana Prevailing Wage Rate for public works projects as published from time to time by and available from the Montana Department of Labor and Industry, Research and Analysis Bureau, P.O. Box 1728, Helena, Montana 59624, telephone number (800) 541-3904. “Project” has the meaning given in the recitals hereto. “Project Fees and Charges” means those fees and charges pertaining to the Project that form a part of the Eligible Costs described as such in Exhibit C hereto, as the same may be amended or supplemented from time to time, in accordance with the terms hereof. 346 4 “Series 2017 Bond” means the Tax Increment Urban Renewal Revenue Bond, Series 2017 (Northeast Urban Renewal District), issued in the principal amount of $1,446,000 pursuant to the Original Resolution. “State” means the State of Montana. “Tax Increment” means the amount received by the City pursuant to the Act from the extension of levies of Taxes (expressed in mills) against the incremental taxable value (as defined in the Act) of all Taxable Property, and shall include all payments in lieu of Taxes attributable to the incremental taxable value and all payments received by the City designated as replacement revenues for lost Tax Increment. “Taxable Property” means all real and personal property located in the District and subject to Taxes, including land, improvements and equipment. “Taxes” means all taxes levied on an ad valorem basis by any Taxing Body against the Taxable Property (exclusive of the six mill levy for university purposes levied by the State and any other mills that are excluded from the calculation of tax increment under State law), and shall include all payments in lieu of taxes received by the City with respect to Taxable Property. “Taxing Body” means the City; the County of Gallatin, Montana; High School District No. 7 (Bozeman), Gallatin County, Montana; Elementary School District No. 7 (Bozeman), Gallatin County, Montana; the State; and any other political subdivision or governmental unit that levies or may hereafter levy or cause to be levied Taxes against property within the District. “Unavoidable Delay” means a delay resulting from a cause over which the Party required to perform does not have control and which cannot or could not have been avoided by the exercise of reasonable care, including but not limited to, acts of God, accidents, war, civil unrest, embargoes, strikes, unavailability of raw materials or manufactured goods, litigation, pandemics, epidemics, labor shortages, unusually inclement weather and the delays of the other Party or its contractors, agents or employees in the performance of their duties under or incident to this Agreement. 1.2. Rules of Interpretation. (a) The words “herein,” “hereof” and words of similar import, without reference to any particular section or subdivision, refer to this Agreement as a whole rather than to any of its particular sections or subdivisions. (b) References to any particular section or subdivision hereof are to the section or subdivision of this Agreement in its original signed form, unless otherwise indicated. (c) The word “or” is not exclusive but is intended to contemplate or encompass one, more or all of the alternatives conjoined. 1.3. Exhibits. The following Exhibits are attached to and by reference made a part of this Agreement: 347 5 Exhibit A: Project Budget Exhibit B: Legal Description of the Land Exhibit C: Eligible Costs Exhibit D: Milestones Exhibit E: Form of Developer Certificate Exhibit F: Nondiscrimination and Equal Pay Affirmation Section 2. Representations. 2.1. City Representations. The City hereby represents as follows: (a) Pursuant to the Act, and after a public hearing duly called and held, the City by the Ordinance has duly created the District. (b) Pursuant to the Original Resolution, the City has issued and there is outstanding the Series 2017 Bond. In the Original Resolution, the City reserved the right to issue obligations having a lien on Tax Increment subordinate to the lien of the Series 2017 Bond (“Subordinate Obligations”). Unless and until the City issues Bonds to reimburse the Developer in accordance with this Agreement, any and all obligations of the City hereunder constitute a Subordinate Obligation under the Original Resolution, subordinate and junior in all respects to the repayment of the Series 2017 Bond and the replenishment of the debt service reserve account for the Series 2017 Bond, and subject to all other terms and conditions of the Original Resolution. (c) Pursuant to Resolution No. 5663 of the City Commission, the City authorized the execution and delivery of this Agreement and approved the use of Tax Increment or proceeds of Bonds, if available, to reimburse or, as appropriate, pay the Eligible Costs in a total amount not to exceed $3,666,396. Subject to the terms and conditions of this Agreement, the City intends to reimburse the Developer for the Eligible Costs in an amount not to exceed $3,666,396. (d) The DOR has advised the City that the base taxable value (as defined in the Act) of the District is $423,054. 2.2. Developer Representations. The Developer hereby represents as follows: (a) The Developer is a Montana limited partnership, duly formed, validly existing and in good standing under the laws of the State and is duly qualified to do business in the State. The Developer has the power to enter into this Agreement and by all necessary corporate action has duly authorized the execution and delivery of this Agreement. (b) The Developer has good marketable title to the Land, free and clear of all liens, encumbrances and defects except such as do not materially affect the value of the Land or materially interfere with the use made and proposed to be made of the Land by the Developer. 348 6 (c) The Developer has the financial capability or commitments to complete the Project at an approximate cost of $61,160,000. (d) The Developer is not aware of any facts the existence of which would cause the Developer to be in violation in any material respect of any Environmental Laws and Regulations applicable to the Project or the Infrastructure Improvements. The Developer has not received from any local, state or federal official any notice or communication indicating that the activities of the Developer have been, may be or will be in violation of any Environmental Laws and Regulations applicable to the Project or the Infrastructure Improvements. (e) Neither the execution and delivery of this Agreement, the consummation of the transactions contemplated hereby, nor the fulfillment of or compliance with the terms and conditions hereof is prohibited or limited by, conflicts with or results in a breach of the terms, conditions or provisions of the certificate of formation, partnership agreement or operating agreement of the Developer or any evidence of indebtedness, agreement or instrument of whatever nature to which the Developer is now a party or by which it is bound, or constitutes a default under any of the foregoing. (f) There is no action, suit, investigation or proceeding now pending or, to the knowledge of the Developer, threatened against or affecting the Developer or its business, operations, properties or condition (financial or otherwise) before or by any governmental department, commission, board, authority or agency, or any court, arbitrator, mediator or grand jury, that could, individually or in the aggregate, materially and adversely affect the ability of the Developer to complete the Project. (g) The Developer acknowledges and agrees that the sole source of funds for reimbursing the Developer under this Agreement is Tax Increment and/or proceeds of the Bonds, which would be paid from Tax Increment. The Developer further acknowledges and agrees the amount and availability of Tax Increment is dependent upon a number of variables, including, without limitation, the taxable value of the Project, the number of mills levied by Taxing Bodies, and then-prevailing state laws regarding tax increment financing generally, property taxation, and computation of Tax Increment. The Developer agrees that if Tax Increment in the amount of $3,666,396 is not available to the City to reimburse the Developer and/or, if the City, in its sole discretion, determines that it cannot satisfy the conditions in the Original Resolution to sell the Bonds or cannot reasonably sell the Bonds, whether due to lack of Tax Increment, legislative action, market conditions, or otherwise, the City shall have no obligation to pay to the Developer the amount of reimbursement described in Section 4. The Developer agrees that such event shall not constitute a default by the City hereunder. (h) The Developer acknowledges and agrees that the Bonds, if authorized and issued, are special, limited obligations of the City and shall not be paid from any funds of the City other than Tax Increment. The Developer understands and agrees the Bonds, if authorized and issued, will be subject to all the terms and conditions of the Original Resolution and the supplemental bond resolution authorizing their issuance (the Original Resolution, as supplemented by such supplemental bond resolution, the “Bond Resolution”). The Developer acknowledges and agrees that an event of default or default under the Bonds or the Bond Resolution does not constitute a 349 7 default under this Agreement, unless the event of default or default is a result of the failure by the Developer to perform an obligation of the Developer identified in the Bond Resolution. Section 3. Developer Undertakings. 3.1. Construction and Maintenance of Project. The Developer hereby agrees and commits to the City that it will diligently prosecute to completion the construction of the Project in accordance with this Agreement, the site plan submitted to the City and all applicable federal, State and local laws, rules, regulations, ordinances and plans relating to or governing the development or use of the Project, including applicable Land Use Regulations and Environmental Laws and Regulations. The Developer’s projected costs of the Project are shown on Exhibit A hereto. The Developer has the financial capacity to complete the Project, and the Developer agrees to pay all costs thereof. If there is an increase in the costs of the Project from that shown on Exhibit A hereto that cannot be covered by the contingency amount and is greater than 10% of the total projected development cost, the Developer shall notify the City of the increase and submit additional evidence in a form acceptable to the City that the Developer has the financial capacity to cover such additional costs and complete the Project. At all times during the term of this Agreement, the Developer will operate and maintain, preserve and keep the Project or cause the Project to be operated, maintained, preserved and kept for the purposes for which it was constructed, and with the appurtenances and every part and parcel thereof in good repair and condition. Upon twenty-four (24) hours prior written notice, the Developer agrees to permit the City and any of its officers, employees or agents access to the Land for the purpose of inspection of all work being performed in connection with the Project; provided, however, that the City shall have no obligation to inspect such work. 3.2. Preparation, Review and Approval of Construction Plans. In connection with the Project, the Developer, at its sole expense, shall prepare and submit construction plans, drawings, and related documents for each portion of the Project to the appropriate City officials for architectural, engineering or land use review and written approval or permits. The Developer acknowledges that no review or approval by City officials hereunder may be in any way construed by the Developer to replace, override or be in lieu of any required review, inspection, or approval by the City Planning Division or any other building construction official review or approvals required by any State laws or local ordinances or regulations. Nothing contained in this Agreement indicates or evidences that the City has approved or will approve the Project or any portion thereof. This Agreement does not affect or limit the City’s regulatory powers with regard to the Project, including, without limitation, those relating to building permits or other permits or the payment of fees. As further described in Section 7.1, the City shall have no liability and the Developer shall hold the City harmless with respect to any increases in costs of the Project related to or arising out of delays resulting from the City’s regulatory actions or approvals. 3.3. Construction of the Infrastructure Improvements. The Developer shall acquire, install, construct or otherwise provide the Infrastructure Improvements. The Developer acknowledges and agrees that the City is not responsible for acquiring, installing, constructing or otherwise providing the Infrastructure Improvements. The estimated costs of the Infrastructure Improvements, which form a part of the Eligible Costs, are shown on Exhibit C hereto. 350 8 3.4. Milestones of the Project. Certain steps in the development of the Project are listed on Exhibit D attached hereto (collectively, the “Milestones”; each a “Milestone”), together with the dates by which the Developer is obligated to complete the Milestones (collectively, the “Milestone Dates”; each as it relates to a particular Milestone, the “Milestone Date”). The Developer acknowledges and agrees that the City in reserving or offering to make available Tax Increment to pay or reimburse the Developer for the Eligible Costs necessarily means that certain Tax Increment is not available to pay or reimburse other undertakings or costs for the benefit of the District and that the City reasonably expects additional Tax Increment as a result of completion of the Project. The Developer acknowledges and agrees that conditioning the availability of Tax Increment or proceeds of Bonds to pay or reimburse the Developer for the Eligible Costs on completion or satisfaction of the Milestones by the corresponding Milestone Dates is reasonable. If the Developer is unable to complete or satisfy a Milestone by the corresponding Milestone Date, the Developer shall make a formal written request to the Director of Economic Development, with appropriate supporting material, to extend the Milestone Date and, as appropriate, subsequent Milestone Dates. The Director of Economic Development may, in his or her sole discretion, (i) determine whether such extension is appropriate and, if so, fix a new and superseding Milestone Date and also adjust other subsequent Milestone Dates, along with any other terms or conditions, or (ii) refer the request to the City Commission to either approve the extension and adjust other Milestone Dates, as appropriate, or, in its sole discretion, terminate this Agreement, in which case the City will have no obligation to reimburse or pay the Developer hereunder. 3.5. Prevailing Wage Rates; Competitive Bidding. The Developer understands that the City is obligated to follow certain laws with respect to the expenditure of public funds, which includes Tax Increment. The Developer agrees to comply with laws that govern City contracting obligations, including public procurement laws relating to all of the Infrastructure Improvements, such as, without limitation, laws and rules regarding prevailing wage and solicitation of work on a competitive basis. Without limitation of the foregoing, the Developer agrees that in the awarding of contracts for the Infrastructure Improvements (i) it will, and it will cause its contractor to, competitively bid contracts for each component of the Infrastructure Improvements, and (ii) through its contract with its contractor, it will, in addition to the requirements of Sections 3.9 and 3.10, require its contractor to, pay the Prevailing Wage Rates on such contracts related to the Infrastructure Improvements. The Developer will provide to the City all documentation requested to verify the compliance of the Developer and its contractor with the foregoing requirements. Failure of the Developer or its contractor to competitively bid contracts for each component of the Infrastructure Improvements or to require contracts entered into directly with contractors or sub-contractors to include provisions requiring the contractor or sub-contractor to pay the Prevailing Wage Rates on the work related to the Infrastructure Improvements will be considered a breach of this Agreement and the City will be entitled, at its discretion and without obligation, to exercise any and all measures to assure compliance and retroactive compensation plus interest to workers not paid in accordance with this Agreement, and recovery of any penalty or fine assessed by the State attributed to any failure to pay the Prevailing Wage Rates. Additionally, the Developer acknowledges that a violation of these requirements may, in the City’s sole discretion, cause the Infrastructure Improvements to be ineligible for the application 351 9 of Tax Increment, in which case the City will have no obligation to reimburse or pay the Developer hereunder. 3.6. Utilities. The Developer shall not interfere with, or construct any improvements over, any public street or utility easement without the prior written approval of the City. All connections to public utility lines and facilities shall be subject to approval of the City and any private utility company involved. The Developer at its own expense shall replace any public facilities or utilities damaged during the Project by the Developer or its agents or by others acting on behalf of or under their direction or control of the Developer. 3.7. Permits and Compliance With Laws. The Developer will obtain, in a timely manner, all required permits, licenses and approvals, and will meet all requirements of all local, state and federal laws, rules and regulations which must be obtained or met in connection with the acquisition and construction of the Project, including the Infrastructure Improvements. Without limiting the foregoing, the Developer will request and seek to obtain from the City or other appropriate governmental authority all necessary land use, zoning, and building permits. The Developer will comply in all material respects with all Environmental Laws and Regulations applicable to the construction, acquisition, and operation of the Project, including the Infrastructure Improvements, will obtain any and all necessary environmental reviews, licenses or clearances under, and will comply in all material respects with, Environmental Laws and Regulations. In addition, the Developer shall comply fully with all applicable state and federal laws, regulations, and municipal ordinances related to worker safety including but not limited to 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, and the Americans with Disabilities Act. 3.8. Easements. To the extent that the Infrastructure Improvements are to be located on the Land, the Developer hereby agrees to grant to the City and applicable utility companies from time to time such easements, rights-of-way and similar licenses in a form required by the City and as are reasonably necessary to permit the City to own, operate and maintain the Infrastructure Improvements. 3.9. Nondiscrimination and Equal Pay Affirmation. The Developer agrees to require its contractor(s) to be in compliance with the City’s Nondiscrimination and Equal Pay Affirmation attached hereto as Exhibit F, as well as Title 49, Montana Code Annotated, regarding activities related to the Project, including the Infrastructure Improvements. The Developer agrees that in its contracts with its contractors the Developer’s contractor will be required to require its subcontractors to comply with the City’s Nondiscrimination and Equal Pay Affirmation attached hereto as Exhibit F, as well as Title 49, Montana Code Annotated, regarding activities related to the Project. The Developer agrees to provide copies of all such contracts upon request by the City. 3.10. Worker’s Compensation Insurance. The Developer shall provide in its construction contracts related to the Project with all of its respective contractors that such contractors are to be covered by a Worker’s Compensation insurance program with the State, a private insurance carrier, or an approved self-insurance plan in accordance with State law. 352 10 3.11. Cooperation with City and DOR. The Developer agrees to provide to the City and, as requested, the DOR information that may be required by the City and/or the DOR to determine, or make reasonable projections regarding, the amount and timing of receipt of Tax Increment resulting from the Project. Such information may include, but is not limited to timing of construction and estimated completion dates of all or portions of the Project, costs of construction, materials used in construction, uses of the Project or any portion thereof, allocations of uses to spaces and square feet of spaces included in the Project, and any other information that may be relevant. The Developer understands and agrees that the City will rely on such information from the Developer in making determinations regarding the amount of Tax Increment resulting from the Project that may be available and the timing of the availability of Tax Increment resulting from the Project, and that such information may be a critical factor in the City’s determination regarding whether to issue and the sizing and other features of the Bonds. 3.12. Project Fees and Charges. The Developer reasonably expects that it will capitalize the Project Fees and Charges (if any) into the costs of the Project, and treat such fees and charges as capital expenditures. Section 4. City Undertakings. Subject to satisfaction of all conditions in Section 5 below, and solely from Tax Increment on hand or proceeds of the Bonds, the City agrees to reimburse the Developer for, or, as applicable, pay the Eligible Costs in an amount not to exceed $3,666,396. The Parties acknowledge and agree that, subject to the terms and conditions of this Agreement, (i) the actual sum of all Eligible Costs may exceed $3,666,396, but $3,666,396 is the maximum amount that the City will reimburse the Developer for Eligible Costs; and (ii) if the actual sum of all Eligible Costs exceeds $3,666,396, the City has discretion to allocate the reimbursable amount among the Eligible Costs as it sees fit. To the extent any category of Eligible Costs comes in under the amount set forth in the estimated budget attached as Exhibit C and another category of Eligible Costs comes in over the amount set forth in the estimated budget attached as Exhibit C, the costs to be reimbursed may be shifted from one category of Eligible Costs to another, up to a maximum amount of $3,666,396. The City may issue the Bonds in its sole discretion to pay or reimburse all or a portion of the Eligible Costs to be paid or reimbursed. The Bonds, if authorized and issued, will have such terms and conditions as are approved by the City Commission. This Agreement does not require or imply that the City has any obligation to issue the Bonds. Section 5. Reimbursement for the Eligible Costs. The City’s reimbursement of the Developer for Eligible Costs shall be subject to the following conditions and in accordance with the following procedures: 5.1. Conditions to Reimbursement. (a) (i) The Developer must have completed or satisfied each of the Milestones by the applicable Milestone Date, as such date may have been extended pursuant to Section 3.4 hereof, (ii) the City must have issued a certificate of occupancy for the Project, (iii) the Infrastructure Improvements must have been completed in their entirety and the City must have delivered to the Developer written acceptance of the Infrastructure Improvements (which may be in the form of a Certificate of Completion or such other format as required by the City), and (iv) the 353 11 Developer must demonstrate to the City’s satisfaction, by a title report or other means acceptable to the City, that the Infrastructure Improvements are free of financial liens and any encumbrances affecting the Infrastructure Improvements must be acceptable to the City. (b) Reserved. (c) Reimbursement by the City for costs of the Infrastructure Improvements must be based on paid invoices for costs incurred by the Developer, its contractors and subcontractors or utility companies, which the Developer must supply to the City. The City may reject, in its sole discretion, any invoice related to the Infrastructure Improvements. The City will notify the Developer of any rejected invoice and the reason it was rejected. (d) The Parties agree that the City will have no obligation to pay or reimburse any of the Eligible Costs unless at the time of such request (i) all of the Developer’s representations as set forth in Section 2.2 are true and correct, (ii) the Developer is not in breach of any covenant or undertaking as set forth in Section 3, and (iii) unless and to the extent the City issues the Bonds, there shall be adequate Tax Increment on hand to reimburse the Developer and satisfy all other financial obligations related to the District (including obligations related to the Series 2017 Bond and the debt service reserve account for the Series 2017 Bond). (e) If some or all of the Eligible Costs are to be paid with the proceeds of the Bonds, the City shall have determined, in its sole discretion, but with the cooperation of the Developer, that the Tax Increment is sufficient to pay the debt service on the Bonds as and when due and, as applicable, to satisfy other requirements under the Bond Resolution, such as funding an adequate reserve, meeting applicable debt service coverage requirements, and paying costs of issuance, and to satisfy all other financial obligations related to the District. The Developer understands and agrees the City shall have no obligation to and may not issue the Bonds if the City is unable to find and determine that the Tax Increment is sufficient to pay the Bonds timely, to satisfy the requirements of the Bond Resolution, and to satisfy all other financial obligations related to the District. If any of the above conditions are not satisfied in the determination of the City, the City shall have no obligation to pay or reimburse any of the Eligible Costs and the City’s determination to refrain from paying or reimbursing, or its inability to pay or reimburse, any of the Eligible Costs shall not be or result in a default of this Agreement. 5.2. Process for Payment or Reimbursement; Developer Option to Terminate. Subject to the provisions of subsection (d) of this Section 5.2, the process for payment or reimbursement of the Developer is as follows: (a) By the date that is 90 days before the date the Developer estimates the Project will be first placed in service (which may occur prior to the applicable Milestone Date for such Milestone set forth in Exhibit A), the Developer shall notify the City in writing of the components of the Project remaining to be completed before it expects the City will issue the certificate of occupancy for the Project. The Developer shall provide a further update to the City when it reasonably expects that the Project will be placed in service in roughly 30 days. 354 12 (b) After receiving a certificate of occupancy for the Project, the Developer shall provide to the City a signed request for reimbursement substantially in a form attached as Exhibit E hereto and acceptable to the City, accompanied by the invoices and lien waivers from the contractors or subcontractors performing or that have performed the work to be reimbursed. In addition, the Developer agrees to provide to the City any additional information requested by the City for the City to determine whether the Developer’s request for reimbursement complies with this Agreement. (c) The parties acknowledge that the City expects to issue the Bonds to reimburse the Developer, and that the full taxable value of the Project will be necessary to support the issuance of the Bonds in an amount sufficient to reimburse the Developer for the Eligible Costs in an amount not to exceed $3,666,396. Following receipt by the City of the Developer’s request for reimbursement, the City will make good faith efforts to sell the Bonds, and the parties acknowledge that selling the Bonds may require receipt by the City of certified taxable values for the District that include the full taxable value of the completed Project. The Developer acknowledges that the District has outstanding obligations related to other projects that are payable from Tax Increment, in addition to those requirements relating to the Series 2017 Bond under the Original Resolution. If the City determines that the Tax Increment is not sufficient to reimburse the Developer in the amount of $3,666,396, the City will notify the Developer in writing, and will notify the Developer of the principal amount of Bonds that the City expects to be able to issue and the amount that the Developer would be reimbursed from such issuance. The parties acknowledge and agree that the City’s intention is to reimburse the Developer for Eligible Costs in an amount not to exceed $3,666,396, or, if reimbursing the Developer in the amount of $3,666,396 is not reasonably possible, to reimburse the Developer in such lesser amount as the City determines, in its sole discretion, is reasonably possible (taking into account the requirements of the Original Resolution and the other Tax Increment obligations of the District). If for any reason the Bonds are not marketable, including in a lesser amount, the City shall inform the Developer in writing and this Agreement shall thereupon terminate and neither Party will have any further rights or obligations hereunder, except as set forth in those provisions that expressly survive termination of this Agreement. (d) Alternatively, the Developer may terminate this Agreement by written notice to the City at any time prior to providing the City with a signed request for reimbursement as described under Section 5.2(b) above. Section 6. Sources of Repayment; Covenants to Pay Taxes. 6.1. Taxes. The Developer shall pay or cause to be paid when due and prior to the imposition of penalty all Taxes and all installments of any special assessments payable with respect to the Land and the Project and any improvements thereto or extension thereof. 6.2. Maintenance of Land and Project. The Developer agrees to use its commercially reasonable best efforts to maintain and operate the Land and the Project so as to be able at all times to pay promptly and when due all property taxes levied with respect to the Land and the Project; provided that, once accepted by the City, the Infrastructure Improvements shall be maintained by the City. 355 13 6.3. Injunction; Specific Performance. The Parties agree that, in the event of a breach of this Section 6 by the Developer or its successors or assigns, the City would suffer irreparable harm. Therefore, in the event the Developer or its successors or assigns fails to comply with the provisions of this Section 6, the Developer agrees that the City may pursue any remedy at law or in equity, including the remedies of injunction and specific performance. Section 7. Indemnification and Insurance. 7.1. Indemnification. The Developer releases the City and all City Commission members, board members, officers, agents, servants and employees of the City (the “Indemnified Parties”) from, and covenants and agrees that the Indemnified Parties shall not be liable for, and agrees to indemnify, defend and hold harmless the Indemnified Parties against, any loss, damage, cost (including reasonable attorneys’ fees), claim, demand, suit, action or other proceeding whatsoever (i) arising or purportedly arising out of, or resulting or purportedly resulting from, the acquisition and construction of the Project, including the Infrastructure Improvements, any violation by the Developer of any agreement, condition or covenant of this Agreement, the ownership, maintenance and operation of the Project, or the presence on any portion of the Land, of any dangerous, toxic or hazardous pollutants, contaminants, chemicals, waste, materials or substances; or (ii) which is proximately caused by the Developer or its officers, agents, contractors, consultants or employees. 7.2. Insurance. Developer shall keep and maintain the Project at all times insured against such risks and in such amounts, with such deductible provisions, as are customary in connection with facilities of the type and size comparable to the Project, and the Developer shall carry and maintain, or cause to be carried and maintained, and pay or cause to be paid timely the premiums for direct damage insurance covering all risks of loss, including, but not limited to, the following: 1. fire 2. extended coverage perils 3. vandalism and malicious mischief 4. boiler explosion (but only if steam boilers are present) 5. collapse on a replacement cost basis in an amount equivalent to the Full Insurable Value thereof. “Full Insurable Value” shall include the actual replacement cost of the Project, exclusive of foundations and footings, without deduction for architectural, engineering, legal or administrative fees or for depreciation. The policies required by this Section 7.2 shall be subject to a no coinsurance clause or contain an agreed amount clause, and must contain a deductibility provision not exceeding $100,000. Subject to the terms of any mortgage relating to the Project, policies of insurance required by this Section 7.2 shall insure and be payable to Developer, and shall provide for release of insurance proceeds to Developer for restoration of loss. The City shall be furnished certificates showing the existence of such insurance. In case of loss, Developer is hereby authorized to adjust the loss and execute proof thereof in the name of all parties in interest. 356 14 During construction of the Project, any and all of the foregoing insurance policies may be maintained by the Developer’s contractor; provided that once the Project is placed into service, Developer shall maintain all of the foregoing insurance policies. In addition, as a condition to placing the Project in service, the City may require that the Developer or owner of the Project obtain additional insurance that would protect the City or the City’s interest in the Infrastructure Improvements. In addition to and independent of the above, the Developer shall at the Developer’s expense secure liability insurance through an insurance company or companies duly licensed and authorized to conduct insurance business in Montana. The insurance shall not contain any exclusion for liabilities specifically assumed by the Developer 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 in relation to construction of the Project and the Infrastructure Improvements without limit and without regard to the cause therefore. The Developer must furnish to the City an accompanying certificate of insurance and accompanying endorsements in amounts not less than as follows: Commercial General Liability - $1,000,000 per occurrence; $2,000,000 annual aggregate The above amounts shall be exclusive of defense costs. The City, its officers, agents, and employees, shall be endorsed as an additional or named insured on a primary non-contributory basis on the Commercial General Liability policy. 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 Developer commencing work on Project or Infrastructure Improvements. Developer must notify the City within two (2) business days of Developer’s receipt of notice that any required insurance coverage will be terminated or Developer’s decision to terminate any required insurance coverage for any reason. Section 8. General Provisions. 8.1. Conflicts of Interest; City’s Representatives Not Individually Liable. The Developer represents that it does not employ, retain, or contract with an officer or employee of the City and that no member, officer or employee of the City has a personal or financial interest, direct or indirect, in this Agreement or in the Project, or a financial interest in the Infrastructure Improvements. No member, officer or employee of the City shall be personally liable to Developer in the event of any default under or breach of this Agreement by the City, or for any amount that may become due to Developer for any obligation issued under or arising from the terms of this Agreement. 8.2. Rights Cumulative. The rights and remedies of the Parties of this Agreement, whether provided by law or by this Agreement, shall be cumulative, and the exercise by any Party hereto of any one or more of such remedies shall not preclude the exercise by such Party, at the same or different times, of any other remedy for the same default or breach or of any of its remedies for any other default or breach of the Party subject to the limitation of remedies provided herein. No waiver made by such Party with respect to the performance or the manner 357 15 or time thereof, of any obligation under this Agreement, shall be considered a waiver with respect to the particular obligation of the other Party or a condition to its own obligation beyond those expressly waived in writing and to the extent thereof, or a waiver in any respect in regard to any other rights of the Party making the waiver of any obligations of the other Party. Delay by a Party hereto instituting or prosecuting any cause of action or claim hereunder shall not be deemed a waiver of any rights hereunder. 8.3. Term of Agreement. This Agreement shall remain in effect until the date that it terminates or is terminated by the City, as follows: (a) If payment or reimbursement of Eligible Costs is made directly from Tax Increment and not proceeds of Bonds, this Agreement will terminate on the date that is 10 days after the date the City makes the final payment or reimbursement of Eligible Costs to the Developer hereunder. (b) If the City issues Bonds, this Agreement will remain in effect until the final maturity or payment date of the Bonds or such earlier date that the Bonds are prepaid in full, discharged, and no longer outstanding. (c) This Agreement may be terminated by the City in its sole discretion on a date earlier than described in (a) or (b) above at any time after failure by the Developer to complete or satisfy a Milestone by the applicable Milestone Payment Date. (d) If the City has determined Tax Increment is insufficient under Section 5.2(c) above, this Agreement shall terminate in the manner and on the date described in Section 5.2(c) above. (e) Prior to submitting a request for reimbursement, the Developer may terminate this Agreement in the manner described in Section 5.2(d) above. (f) Notwithstanding the foregoing provisions of this Section, Sections 6, 7, and 8 of this Agreement shall in all events survive the termination of this Agreement. 8.4. Limitation on City Liability. No agreements or provisions contained in this Agreement nor any agreement, covenant or undertaking by the City contained in any document in connection with the Project, including the Infrastructure Improvements, or the Eligible Costs shall give rise to any pecuniary liability of the City or a charge against its general credit or taxing powers, or shall obligate the City financially in any way except with respect to then-available Tax Increment. No failure of the City to comply with any term, condition, covenant or agreement herein shall subject the City to liability for any claim for damages, costs or other financial or pecuniary charge except to the extent that the same can be paid or recovered from then-available Tax Increment; and no execution on any claim, demand, cause of action or judgment shall be levied upon or collected from the general credit, general funds or taxing powers of the City (except as such constitute then-available Tax Increment). Nothing herein shall preclude a proper party in interest from seeking and obtaining specific performance against the City for any failure to comply with any term, condition, covenant or agreement herein; provided that no costs, expenses or other monetary relief shall be recoverable from the City 358 16 except as may be payable from the Tax Increment. This Agreement shall not constitute or be construed to give rise to a debt of the City. 8.5. Assignment. This Agreement is unique between the City and Developer and no Party may assign any rights or privileges, or delegate any duties or obligations under this Agreement, without first obtaining the written consent of the other Party. Notwithstanding the foregoing, the Developer may assign this Agreement and its rights and responsibilities hereunder to a special purpose entity formed by the Developer to own the Project. Developer shall provide notice of any assignment to the City. 8.6. Successors Bound By Agreement; No Third Party Beneficiary; No Property Interest. Subject to compliance with Section 8.5, this Agreement will inure to the benefit of and be binding upon the Parties to this Agreement and their respective successors in interest and permitted assignees. This Agreement is for the exclusive benefit of the Parties, does not constitute a third-party beneficiary agreement, and may not be relied upon or enforced by a third party. This Agreement, by itself, does not create or give rise to a property interest in the Land or the Project. 8.7. Prior Agreements. This Agreement supersedes, merges and voids any and all prior discussions, negotiations, agreements and undertakings between the Parties with respect to the subject matter of this Agreement. The Parties waive and release each other from any claims, actions, or causes of action that relate in any manner to any prior discussions, negotiations, agreements and undertakings between the Parties with respect to the subject matter of this Agreement. 8.8. Entire Agreement. This Agreement, including any exhibits and attachments hereto, embodies the entire agreement and understanding of the Parties with respect to its subject matter. All Parties shall be prohibited from offering into evidence in any arbitration or civil action any terms, conditions, understandings, warranties, statements or representations, whether oral or written, with respect to the subject matter of this Agreement and that are not contained in this Agreement. 8.9. Amendments, Changes and Modifications. This Agreement may be amended and any of its terms may be modified only by written amendment authorized and signed by the Parties hereto. 8.10. Headings. The headings of articles and sections in this Agreement are inserted for convenience of reference only and do not limit or amplify the terms and provisions of the Agreement in any manner. The headings will be ignored and will not affect the construction of any provisions of this Agreement. 8.11. Notice. Any formal notice, demand or communication required or permitted by the terms of this Agreement to be given to the City or Developer will be in writing and will be delivered to such Party either: (i) by personal hand-delivery; or (ii) by depositing the same in the United States mail, certified mail with return receipt requested, addressed to such Party at the address named below, with postage prepaid thereon. Notice will be deemed complete upon receipt of the notice pursuant to any of the foregoing methods of notice. 359 17 If to City: City of Bozeman Attention: Bozeman City Manager 121 N. Rouse Ave. P.O. Box 1230 Bozeman, MT 59771 If to Developer: Jackadoo, LP Attention: Scott Baldesare 200 Laurel Avenue Highland Park, IL 60035 The City and the Developer, by notice given hereunder, may designate different addresses to which subsequent notices, certificates or other communications should be sent. 8.12. Severability. If any provision of this Agreement is declared void or held invalid, such provision will be deemed severed from this Agreement and the remaining provisions of this Agreement will otherwise remain in full force and effect. 8.13. Duplicate Originals or Counterparts. This Agreement may be executed in two or more counterparts, each of which will be deemed to be an original copy of this Agreement and all of which, when taken together, will be deemed to constitute one and the same agreement. 8.14. Place of Performance. The place of performance of this Agreement will be in the City of Bozeman, Gallatin County, Montana. 8.15. Governing Law. This agreement and the legal relations between the Parties hereto will be governed by and construed in accordance with the laws of the State of Montana, without giving effect to any choice of law statutes, rules, or principles. 8.16. Dispute Resolution. (a) Any claim, controversy, or dispute between the Parties, their agents, employees, or representatives shall be resolved first by negotiation between senior-level personnel from each Party duly authorized to execute settlement agreements. Upon mutual agreement of the Parties, the Parties may invite an independent, disinterested mediator acceptable to the Parties to assist in the negotiated settlement discussions. (b) If the Parties are unable to resolve the dispute within thirty (30) days from the date the dispute was first raised, then such dispute may only be resolved in a court of competent jurisdiction in compliance with the applicable law and the provisions of this Agreement. 8.17. Further Assurances and Corrective Instruments. The Parties agree that they will, from time to time, execute, acknowledge and deliver, or cause to be executed, acknowledged and delivered, such supplements hereto and such further instruments as may reasonably be required 360 18 for correcting any inadequate or incorrect description of the Project, including the Infrastructure Improvements, or the Eligible Costs or for carrying out the expressed intention of this Agreement. 8.18. Reports/Accountability/Public Information. The Developer agrees to develop and/or provide documentation as requested by the City demonstrating the Developer’s compliance with the requirements of this Agreement. The Developer shall allow the City, its auditors, and other persons authorized by the City to inspect and copy its books and records for the purpose of verifying that the monies reimbursed to Developer pursuant to this Agreement were used in compliance with this Agreement and all applicable provisions of federal, state, and local law. The Developer shall not issue any statements, releases or information for public dissemination regarding this Agreement or the work contemplated hereunder without prior written approval of the City. [Balance of page intentionally left blank] 361 19 IN WITNESS WHEREOF, the Parties hereto have caused this Development Agreement to be executed as of the [_____] day of [___________]. CITY OF BOZEMAN, MONTANA By: _______________________________________ Printed Name: Chuck Winn Title: City Manager [Signature Page to Development Agreement] 362 20 JACKADOO, LP By: Name: Title: [Signature Page to Development Agreement] 363 A-1 EXHIBIT A PROJECT COSTS 364 B-1 EXHIBIT B LEGAL DESCRIPTION OF THE LAND Lots 17-26 in Block 104 of the Plat of the Northern Pacific Addition to the City of Bozeman, being located in the Southeast Quarter of Section 6, Township 2 South, Range 6 East, Principal Meridian Montana, City of Bozeman, Gallatin County. 365 C-1 EXHIBIT C ELIGIBLE COSTS Demolition and Site Preparation $747,336 Offsite improvements, including improving road surfaces, sidewalks, curbs, gutters and stormwater systems, critical updates to water and sewer infrastructure, and updating traffic patterns for better flow and safety on Front Street, East Aspen Street and North Ida Avenue; and related improvements $2,919,060 Total: $3,666,396 The Parties acknowledge and agree that, subject to the terms and conditions of this Agreement, (i) the actual sum of all Eligible Costs may exceed $3,666,396, but $3,666,396 is the maximum amount that the City will reimburse the Developer for Eligible Costs; and (ii) if the actual sum of all Eligible Costs exceeds $3,666,396, the City has discretion to allocate the reimbursable amount among the Eligible Costs. To the extent any category of Eligible Costs comes in under the amount set forth in the estimated budget and another category of Eligible Costs comes in over the amount set forth in the estimated budget, the costs to be reimbursed may be shifted from one category of Eligible Costs to another, up to a maximum amount of $3,666,396. 366 D-1 EXHIBIT D MILESTONES MILESTONE MILESTONE DATE Site Plan Submittal to the City Development Building Permit Submittal Start of Development Construction Start of Infrastructure Construction Completion of Infrastructure Substantial Construction Completion of Development Construction (occupancy) 367 E-1 EXHIBIT E FORM OF DEVELOPER CERTIFICATE TO: City of Bozeman, Montana FROM: Jackadoo, LP (the “Developer”) SUBJECT: Reimbursement for Eligible Costs This Developer Certificate requests $_________ for reimbursement of Eligible Costs, as defined in the Development Agreement between Jackadoo, LP and the City of Bozeman, Montana, dated as of [_________] (the “Development Agreement”). Capitalized terms used but not otherwise defined herein shall have the respective meanings given such terms in the Development Agreement. Pursuant to Section 5.2(b) of the Development Agreement, the undersigned hereby certifies on behalf of the Developer that: (a) the expenditures for which reimbursement is requested are listed in summary form in the attached schedule headed “Project Expenditures;” (b) invoices paid by the Developer corresponding to the expenditures set forth on the attached Project Expenditures Schedule are appended to the attached schedule headed “Project Invoices;” (c) the amounts for which reimbursement is requested have been paid by the Developer to the City for Project Fees and Charges or to contractors, subcontractors, materialmen, engineers, architects or other persons who or that have performed necessary or appropriate services or supplied necessary or appropriate materials for the acquisition, construction, renovation, equipping, and installation of the Infrastructure Improvements; (d) with respect to the Infrastructure Improvements, the contractor and subcontractors were solicited and retained competitively and all persons performing work on the Infrastructure Improvements were paid the Montana prevailing wage for such work; (e) no part of the several amounts requested to be paid, as stated in such certificate, has been or is the basis for the payment of any money in any previous request; (f) the reimbursement of the amounts requested will not result in a breach of any of the covenants of the Developer contained in the Development Agreement; and (g) no litigation has been instituted or is threatened with regard to any amounts sought to be reimbursed, and binding and enforceable lien waivers have been obtained from all contractors, subcontractors, materialmen, and others with regard to all work related to any amounts for which reimbursement is requested. 368 E-2 The Developer represents that all of the representations of the Developer in Section 2.2 of the Development Agreement are true and correct as of the date hereof and the Developer is not in default of the performance of any of its undertakings or obligations under Section 3 of the Development Agreement as of the date hereof. Dated: _____________, 20__ Jackadoo, LP By: Authorized Developer Representative 369 F-1 EXHIBIT F 370 Memorandum REPORT TO:City Commission FROM:Mike Maas, City Clerk Jon Henderson, Assistant City Manager Chuck Winn, Interim City Manager SUBJECT:Ordinance 2175, Provisional Adoption Amending the Bozeman Municipal Code to Include Gender Inclusive Language MEETING DATE:November 26, 2024 AGENDA ITEM TYPE:Ordinance RECOMMENDATION:Consider the Motion: I move to provisionally adopt Ordinance 2175 Amending the Bozeman Municipal Code to Include Gender Inclusive Language STRATEGIC PLAN:7.1 Values-Driven Culture: Promote a values-driven organizational culture that reinforces ethical behavior, exercises transparency and maintains the community’s trust. BACKGROUND:The City Clerks' Office, in conjunction with the City Attorney's Office, contracted with our Municipal Code vendor, CivicPlus, to identify non gender neutral pronouns. It is the intent of this Ordinance to modify the language identified in Exhibit A. This item is identified in the Belonging in Bozeman Equity and Inclusion Plan [EXTERNAL LINK PDF], Community Safety and Civic Health, Goal 5, Recommendation 4, "Neutralize gendered language in city policies and municipal code." Items in Chapter 38 have been identified for incorporation in the future Unified Development Code update. The term "manhole" was left unmodified as it is contained within the Montana Public Works Standard Specifications with contractual definitions. UNRESOLVED ISSUES:None identified ALTERNATIVES:As per the Commission FISCAL EFFECTS:None Attachments: Ord 2175 Gender Inclusive Language.docx Ord 2175 Gender Inclusive Language Exhibit A Change 371 Table.docx Report compiled on: October 31, 2024 372 ORDINANCE 2175 AN ORDINANCE OF THE CITY COMMISSION OF THE CITY OF BOZEMAN, MONTANA AMENDING THE BOZEMAN MUNICIPAL CODE TO INCLUDE GENDER INCLUSIVE LANGUGAGE. WHEREAS,Mont. Const. Art. XI, § 4 mandates to liberally construe the powers of incorporated cities, and Mont. Const. Art. XI, § 6 of the Montana Constitution expressly authorizes a local government unit with self-government powers to exercise any power not prohibited by the constitution, law, or charter; and WHEREAS, the Bozeman City Charter establishes that the City of Bozeman is a local government that has adopted self-government powers which must be liberally construed; and WHEREAS, the Bozeman Strategic Plan 3.0 describes the City’s efforts to be a safe, healthy, welcoming, and inclusive community; and WHEREAS, Resolution 5556 adopted the Belonging in Bozeman Equity and Inclusion Plan; WHEREAS, the Belonging in Bozeman Equity and Inclusion Plan, Community Safety and Civic Health, Goal 5, Recommendation 4 states, “[n]eutralize gendered language in city policies and municipal code”; and WHEREAS, the Bozeman Municipal Code contains mostly masculine pronouns; and WHEREAS, all genders are created equal; and WHEREAS, amending the Bozeman Municipal Code to include gender-inclusive language by eliminating any gender preference language within the Bozeman Municipal Code will promote equality; and 373 Ordinance 2175 Modifying the Bozeman Municipal Code to Include Gender Inclusive Language Page 2 of 4 WHEREAS, in addition to amending the Bozeman Municipal Code to include gender- inclusive language, all new City ordinances, resolutions, policies, and orders must be drafted using gender-inclusive language; and WHEREAS, the City of Bozeman is committed to periodically reviewing, as resources permit, existing official documents and communications and revise them to use gender- inclusive language whenever possible. NOW THEREFORE, BE IT ORDAINED BY THE CITY COMMISSION OF THE CITY OF BOZEMAN, MONTANA: Section 1 References throughout the Bozeman Municipal Code that uses gendered language, and as indicated in attached Exhibit A – Gender Inclusive Language Table, shall be amended to be gender-inclusive. As indicated in Section 6, this ordinance and Exhibit A shall not be codified. Exhibit A is attached to this ordinance solely for legislative purposes. Section 2 Subject to final approval by the City Attorney, the Municipal Code Corporation has authority to change the Bozeman Municipal Code and update language in accordance with this ordinance, and which includes authority to update future ordinances. 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 374 Ordinance 2175 Modifying the Bozeman Municipal Code to Include Gender Inclusive Language Page 3 of 4 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 and its exhibit 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. Section 7 Effective Date. This ordinance shall be in full force and effect thirty (30) days after PROVISIONALLY ADOPTED by the City Commission of the City of Bozeman, Montana, on first reading at a regular session held on the 26th day of November, 2024. ____________________________________ TERRY CUNNINGHAM Mayor ATTEST: ____________________________________ MIKE MAAS City Clerk 375 Ordinance 2175 Modifying the Bozeman Municipal Code to Include Gender Inclusive Language Page 4 of 4 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 10th of December, 2024. The effective date of this ordinance is January 9, 2025. _________________________________ TERRY CUNNINGHAM Mayor ATTEST: _______________________________ MIKE MAAS City Clerk APPROVED AS TO FORM: _________________________________ GREG SULLIVAN City Attorney 376 Ord. 2175 Exhibit A Gender Inclusive Language Table of Changes to Bozeman Municipal Code Code Section Text Change 2.02.070 F. Special meetings. The mayor, any two members of the commission, or the city manager may call special meetings of the commission, upon at least 48 hours' notice to each member of the commission and give notice to the public by, at a minimum, posting an agenda on the city's website, or personally served on each member or left at his usual place of residence. Replace “his” with “their” 2.02.080.A.3.3. If applicable, comments from the applicant, or his agent, shall be heard by the commission. The applicant's presentation/testimony is limited, subject to the discretion of the presiding officer, to ten minutes. Replace “his agent” with “applicant’s agent” 2.06.2020 A. No artist sitting on a nonprofit arts organization's board of directors may submit for Percent for Art projects over which that organization has approval authority or administrative responsibility during his/her tenure. Replace “his/her” with “the artist’s” 2.06.2050.D D. The artwork requires excessive maintenance or has faults of design or workmanship. Replace term “workmanship” with "quality" 26.02.030.A.13 13. Hunt, molest, harm, frighten, kill, trap, pursue, chase, tease, shoot or throw missiles at any animal, nor remove from the park or have in his possession any animal, or the eggs or nest, or young of any animal. An exception to the foregoing is made in that snakes known to be poisonous may be killed on sight. An exception is further made to fishing where allowed by the state department of fish, wildlife and parks. This regulation does not apply to officers of state or local government duly acting within the course and scope of their duties; Replace “have in his possession” with “be in possession of” 377 Ord. 2175 Exhibit A Code Section Text Change 24.10.020.A., A. It is declared to be the policy of the city, in the exercise of its police powers pursuant to its self governing authority for the protection of the public health, safety, and general welfare, and for the maintenance of peace and good government, to assure equal opportunity to all persons, free from restrictions and discrimination because of his or her actual or perceived race, color, national origin, ancestry, religion, creed, sex, age, martial or familial status, physical or mental disability, sexual orientation, or gender identity or expression. Replace “his or her” with “an individual’s” 24.10.030.B.B. "Discrimination," "discriminate" or "discriminatory" means any act, policy, or practice that has the effect of unfavorably subjecting any person to different or separate treatment because of his or her actual or perceived sexual orientation, gender identity or expression, or association with a person or group of people so identified, or on the belief that a person has a particular sexual orientation or gender identity or expression, even if that belief is incorrect. Replace “his or her” with “the individual’s” 34.04.060.B.B. Such warrants shall be signed by the mayor and city clerk, and shall bear the corporate seal of the city and shall have attached to them interest coupons, one for each year's interest to become due thereon, and shall bear the facsimile signatures of the mayor and city clerk, and shall be in substantially the following form: Coupon No._______. Special Sidewalk and Curb Fund $_______ On January 1, 20_______, the Director of Finance of Bozeman, Montana, will, at his office in the City of Bozeman, Montana, pay _______, or bearer, the sum of _______ Dollars, being interest due on said date of payment on its Special Sidewalk and Curb Fund Warrant No. _______ issued on account of sidewalks and curbs. Replace “his office” with “the Finance Department” 378 Ord. 2175 Exhibit A Code Section Text Change 36.04.380.D.1.e e. Information advising the owner of the vehicle that he or she must admit the violation and pay the penalty set forth in section 36.04.380.A, or deny the violation and request an appeal pursuant to section 36.04.380.F. Replace “he or she” with “the owner” 40.03.910.A.30 30. "Pollution" means the manmade or man-induced alteration of the chemical, physical, biological and radiological integrity of water. Replace "manmade or man-induced" with "artificial or anthropogenic" 40.03.1180.C.2 2. The facility was at the time being operated in a prudent and workman-like manner and in compliance with applicable operation and maintenance procedures; Replace “workman- like” with “skillful” 40.04.070.A.11 11. "Development" means any construction, reconstruction, conversion, structural alteration, relocation, or enlargement of any structure within the jurisdiction of the city as well as any manmade change or alteration to the landscape, including but not limited to mining, drilling, dredging, grading, paving, excavating and filling. Replace "manmade" with “anthropogenic” 40.04.070.A.22 22. "Municipal separate storm sewer system (or MS4)" means a conveyance or system of conveyance (including roads with drainage systems, municipal streets, catchbasins, curbs, gutters, ditches, manmade channels, or storm drains) owned or operated by a public body (created under state law) having jurisdiction over disposal of sewage, industrial wastes, stormwater, or other wastes, including special districts under state law such as sewer district, irrigation district, flood control district or drainage district, or similar entity that discharges to the waters of the United States and which are not part of a publicly owned treatment works (POTW) as defined in ARM title 17, chapter 30, subchapter 13. Replace “manmade” with “human constructed” 379 Ord. 2175 Exhibit A 380