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HomeMy WebLinkAbout12-10-24 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. FYI E. Commission Disclosures F. Consent F.1 Accounts Payable Claims Review and Approval (Armstrong) F.2 Authorize the City Manager to Sign a Memorandum of Understanding with Bozeman School District 7 for the Development and Use of Additional Facilities at the Bozeman Sports Park(Henderson) THE CITY COMMISSION OF BOZEMAN, MONTANA REGULAR MEETING AGENDA Tuesday, December 10, 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 1 F.3 Authorize the City Manager to Sign a Letter of Agreement Accepting a Donation in the Amount of $250,000 from Bozeman School District 7 for Design Services for Additional Facilities at the Bozeman Sports Park(Henderson) F.4 Authorize the City Manager to Sign the 2023 Safe Streets and Roads for All Grant Agreement with the Federal Highway Administration for the Comprehensive Safety Action Plan and Safety Demonstration Project(Lonsdale) F.5 Authorize the City Commission to Ratify the Montana Main Street Program Grant Application.(Grabinski) F.6 Authorize the City Manager to Sign a Task Order 007 with Sanbell for Planning Services for Applications for Annexation and Initial Zoning for City-owned Property on Fowler Avenue(Fine) F.7 Authorize the City Manager to sign a Professional Services Agreement with Green Infrastructure Center for Tree Canopy Coaching(Nordquest) F.8 Authorize the City Manager to Sign Amendment 5 to the Professional Services Agreement for the Field Survey Term Contract with Sanbell, to Facilitate Design of Upcoming Capital Improvements Projects(Gamradt) F.9 Ordinance 2171, Final 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) G. Public Comment on Non-agenda Items Falling Within the Purview and Jurisdiction of the Commission H. Special Presentation H.1 Results of the Montana State University Pilot Study of Modern Treatment Wetland Technology at the Bozeman Water Reclamation Facility; A Joint Project Between MSU, DEQ, and the City(Kohtz) I. Action Items I.1 Final Vote 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 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. 2 Approving a Related Development Agreement(Fine) I.2 Review and Approval of the 2024 Impact Fee Service Area Report for Transportation(Saunders) I.3 Resolution 5658 Adopting the 2024 Service Area Report for Transportation Impact Fees and Establishing an Effective Date(Saunders) I.4 Resolution 5662, Adoption of the Fiscal Years (FY) 26-30 Capital Improvements (Hodnett) J. FYI / Discussion K. Adjournment Consider the Motion: I move to approve Resolution 5663. Consider the Motion: Having reviewed and considered the staff presentation, draft service area report, public comment, and all information presented, I hereby find the 2024 service area report for Transportation meets all requirements and accept the report as the basis for transportation impact fees. Consider the Motion: Having reviewed and considered the staff presentation, public comment, and all information presented, I hereby adopt the findings of Resolution 5658 and adopt Resolution 5658 with an effective date of January 1, 2025. Consider the Motion: I move to approve Resolution 5662. 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:Nicole Armstrong, Accounts Payable Clerk Rhonda Edwards, Accounts Payable Clerk Aaron Funk, City Controller Melissa Hodnett, Finance Director SUBJECT:Accounts Payable Claims Review and Approval MEETING DATE:December 10, 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 December 11, 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 4 Memorandum REPORT TO:City Commission FROM:Jon Henderson, Assistant City Manager SUBJECT:Authorize the City Manager to Sign a Memorandum of Understanding with Bozeman School District 7 for the Development and Use of Additional Facilities at the Bozeman Sports Park MEETING DATE:December 10, 2024 AGENDA ITEM TYPE:Agreement - Agency/Non-profit RECOMMENDATION:Authorize the City Manager to sign a Memorandum of Understanding with Bozeman School District 7 for the development and use of additional facilities at the Bozeman Sports Park STRATEGIC PLAN:1.3 Public Agencies Collaboration: Foster successful collaboration with other public agencies and build on these successes. BACKGROUND:The City of Bozeman is partnering with Bozeman School District 7 to construct an artificial turf athletic field at the Bozeman Sports Park, including the development of an approximately 100 space parking lot, along with related site plan components including sidewalks and pedestrian paths. Design considerations also include groundwork for an additional turf field, field lighting, and a storage structure to be funded and constructed at a later date. A mid-block pedestrian crossing along Oak will also be constructed adjacent to Gallatin High to ensure safety for all users. In exchange for the District's financial contribution, the City agrees to allow priority use of the field. Once completed, the City will be responsible for costs of maintaining the turf field and related infrastructure. The School District will be responsible for winter snow removal from the parking lot and winter maintenance of the mid-block crossing. This MOU establishes the roles and responsibilities for both parties. Subsequent addendums to this MOU will be necessary to outline construction cost allocations, in addition to establishing specific times, dates, and days for priority use. Anticipated completion date for this project is August 1st, 2025. This agreement has been reviewed by the Legal Department and found to be acceptable in meeting the City's specifications and standards. 5 UNRESOLVED ISSUES:None. ALTERNATIVES:As directed by the City Commission. FISCAL EFFECTS:Bozeman School District 7 has generously agreed to fund the project up to $3,000,000, with the City providing $150,000 to construct the mid-block crossing. Attachments: Memorandum of Understanding - Bozeman Sports Park School District Project.pdf Report compiled on: November 25, 2024 6 MOU with the Bozeman School District for Bozeman Sports Park Page 1 of 8 Memorandum of Understanding between the City of Bozeman and Bozeman School District No. 7 for the Development and Use of Additional Facilities at the Bozeman Sports Park This Memorandum of Understanding between the City of Bozeman and Bozeman School District No. 7 for the Development and Use of Additional Facilities at the Bozeman Sports Park (this “MOU”) is made between the City of Bozeman, a self-governing municipal corporation organized and existing under its Charter and the laws of the State of Montana, 121 North Rouse Street, Bozeman, Montana, with a mailing address of PO Box 1230, Bozeman, MT 59771, hereinafter referred to as “City”, and Bozeman School District No. 7, with a mailing address of 404 West Main Street, Bozeman MT 59715, hereinafter referred to as the “School District.” The School District and City are collectively referred to as “the Parties”. RECITALS The following recitals form the basis for the Parties’ intentions and as such are material to this MOU. WHEREAS, the City has authority over real property owned by the City pursuant to 2.08.160, BMC; and WHEREAS, the School District is a public school district created and operated under Montana law; and WHEREAS, the City owns a parcel of real property located south of Baxter Lane, West of Flanders Mill Road, north of West Oak Street, and east of Cottonwood Road (described as Parcel 1A1A COS 2554C), herein referred to as the “Sports Park” which is adjacent to and north of the School District’s Gallatin High School campus; and WHEREAS, the Parties desire to cooperate wherein a portion of the southern end of the Sports Park adjacent to West Oak Street will be developed into artificial turf athletic fields (and related facilities) and a parking lot, for priority use by the School District (the “Project”); and WHEREAS, the Parties intend to enter into this MOU, describing the Parties’ preliminary understanding of their roles and responsibilities regarding the financing, construction, and the School District’s use of the Project. NOW THEREFORE, in consideration of the mutual covenants contained herein, and for good and valuable consideration, the Parties agree as follows: 7 MOU with the Bozeman School District for Bozeman Sports Park Page 2 of 8 1. Project. The Project consists of the completion of one artificial turf athletic field, and the development of an approximately 100 space parking lot, along with related site plan components including sidewalks and pedestrian paths. Design considerations also include groundwork for an additional turf field, field lighting, and a storage structure to be funded and constructed at a later date. The Parties agree the School District will have priority use of the Project as described herein. The Parties recognize the final scope of the Project has yet to be decided by the Parties, as future site planning work must be completed to more accurately detail the specific components of the Project and when each may be constructed. As a result, this MOU is preliminary in nature and must be supplemented by an addendum detailing the final roles and responsibilities of the Parties prior to the City awarding construction contracts for the Project. The Parties recognize not all components of an agreed upon site plan may be financed and constructed as part of the Project. As such, the Parties may agree that future components of the site plan will be financed and constructed pursuant to subsequent addendums to this MOU. The City will be responsible for all facets of design and construction including entering into and administering contracts for the Project. The City will consult with the School District on all facets of design and construction. During construction and upon completion of the Project, all improvements will be owned by the City. 2. Site Planning. The Parties recognize a critical step of the Project is to develop a mutually agreeable site plan detailing all components of the Project. The site plan will be used to develop construction documents and ascertain necessary site conditions including geotechnical analysis, and on-site and off-site improvements. The site plan must be approved pursuant to Chapter 38 of the Bozeman Municipal Code. The City will procure and manage the site planning process and will consult with the School District in its decision on which firm to retain and will consult regularly with the School District throughout the site planning process. Upon completion of the site plan, and prior to the award of any construction contracts that implement the site plan, the Parties must sign an addendum to this MOU agreeing to the site plan. 3. Mid-Block Crossing. The Parties desire to construct a mid-block pedestrian crossing at West Oak Street between Gallatin High School and the Sports Park for the safety of the public and Gallatin High School students and faculty. The mid-block crossing, however, is not considered part of the Project. Nevertheless, the Parties agree installing a mid-block crossing is critical for the safety of School District personnel, students, and the public attending School District functions on the Sports Park. As such, the City agrees to take all steps necessary to construct this mid-block crossing, and the School District agrees it will not allow use of the Project for School District purposes until the mid-block crossing is operational. The City will consult with the School District regarding the scope of the mid- block crossing and also during the construction. 8 MOU with the Bozeman School District for Bozeman Sports Park Page 3 of 8 The City commits $150,000 for the costs of constructing the mid-block crossing of West Oak Street. 4. Financing of the Project. As provided herein, the School District agrees to contribute a Financial Contribution for the Right to Use the Project as specified herein. The City will then use this Financial Contribution, as provided below, to finance the Project. The Parties acknowledge the final costs of the Project are currently unknown, and additional planning and design work is necessary to ascertain the final costs of the Project including all costs and fees, including impact fees. Prior to awarding a contract for site plan work, the School District will transfer $250,000 to the City to cover the costs of site planning subject to limitations in 4.b, below. Prior to the City awarding contracts for the construction of the Project, the Parties must sign an addendum to this MOU outlining the specific cost allocations for the Project. The addendum must address the timing of the School District’s payment of costs associated with construction of the Project to ensure the City has sufficient funds to pay for Project related work at the time of invoicing from the City’s construction contractors. The Parties may agree in the addendum outlining the costs of the Project to hold back a percentage of every contract until the City accepts the work. a. The School District’s commits to providing a Financial Contribution to the Project in an amount equal to the remaining actual cost of the Project construction. In no case will the School District’s Financial Contribution exceed $3,000,000.00. b. The School District’s Financial Contribution may not be used for internal costs of the City, including staff time, or for any costs related to amending the Sports Park Master Plan, if required. The School District’s Financial Contribution may be used by the City for all aspects of site planning for the Project (other than amendments to the Sports Park Master Plan) and for all costs related to construction of the Project. If impact fees or other development costs are required by the City during review of the Project’s site plan application, the City may pay such impact fees and other associated development costs out of the Financial Contribution. 5. Use of the Project. In exchange for its Financial Contribution and in recognition that artificial turf fields have limited lifespans, the City agrees to allow the School District priority use of the artificial turf field for the greater of 10 years or the actual life of the artificial turf field, with the life span to be determined jointly by the City and the School District. At the end of the above described period, should the School District determine to continue priority use of the artificial turf field, the Parties may agree to do so subject to a new agreement between the Parties that would specify cost allocation for the replacement of the artificial turf field. In addition, the City agrees to allow the School District non-exclusive use of the parking lot for school purposes during school hours and for school events, for the greater of 20 9 MOU with the Bozeman School District for Bozeman Sports Park Page 4 of 8 years or the actual life of the parking lot, with the life span to be determined jointly by the City and School District. At the end of the above-described period, should the School District determine to continue non-exclusive use of the parking lot, the Parties may agree to do so subject to a new agreement between the Parties that would specify cost allocation for the replacement or repairs of the parking lot, as determined by the City. The Parties must agree through addendum to this MOU on the specific times, dates, and days for priority use. The School District understands that outside of agreed upon priority times and dates, the Sports Park will be open for public use including scheduling of the turf field for public activities. 6. Maintenance to the Project. Once completed, the City will be responsible for costs of maintaining the turf field and related infrastructure. The City will be responsible for maintaining pavement, signage, and striping of the mid-block crossing. The City will be responsible for minor repairs to the parking lot including restriping and crack sealing. The School District will be responsible for winter snow removal from the parking lot and winter maintenance of the mid-block crossing. Notwithstanding the above, the extent of maintenance for the Project will not be known until the site plan is designed and agreed upon. Therefore, the parties agree to assign more detailed maintenance responsibilities in an addendum to this MOU. The City reserves the right to manage and maintain all improvements including the right to close any facility for repair or maintenance and to determine, in its sole discretion, whether such facilities are safe for public use. Any decisions regarding the facilities that are part of the Project will be made in consultation with the School District. 7. Target Date of Completion: The Parties agree to use best efforts to ensure the artificial turf field is operational by August 01, 2025. The Parties agree to use best efforts to have the parking lot completed prior to the start of classes for the Fall 2025 school year. The Parties acknowledge that, due to the scale of this Project, there are factors outside of the control of the Parties that may cause delay. The Parties agree that if such delay occurs, the Parties will use best efforts to complete the Project as soon as practicable. 8. Indemnity. The Parties shall so conduct their activities at the Bozeman Sports Park so as not to endanger any person lawfully on the premises or damage any personal property and, to the extent fully permitted by law, shall indemnify, save and hold harmless each other and the other party’s officers, agents, and employees from any and all claims, actions, losses, fees, injuries, damages and liability to persons or property occasioned wholly or in part by the negligent acts of omissions or willful misconduct of itself, its agents, officers, or employees. 10 MOU with the Bozeman School District for Bozeman Sports Park Page 5 of 8 9. No Partnership or Agency. Neither Party shall be considered a partner or agent of the other Party, and this MOU does not create a partnership or principal-agent relationship between the Parties. Neither Party shall have any right, power or authority to create any obligation, expressed or implied, on behalf of the other Party except as provided herein. The cooperative effort between the City and School District does not create a separate legal entity and neither the School District nor the City shall have the right to bind the other Party vis a vis any third party. 10. Modification and Assignability. This MOU may not be enlarged, modified or altered except by written addendum signed by both Parties hereto. The School District may not assign its rights or obligations under this MOU without the prior written consent of the City. Any assignee will be bound by all of the terms and conditions of this MOU. 11. Authority to Implement Project. The City Manager is hereby authorized to take all steps necessary to implement the Project including executing addendums to this MOU. 12. Limitation on Damages. Neither Party shall be entitled to claim or recover consequential, special, punitive, lost business opportunity, lost productivity, field office overhead, general conditions costs, or lost revenues, damages of any nature arising, or claimed to have arisen, as a result of the termination of this MOU. If events occurring resulting in a delay of the City’s construction of the Project, the School District specifically agrees it will not seek any remedy against the City under law or equity for such delay. 13. Severability. If any portion of this MOU is held to be void or unenforceable, the balance thereof shall continue in effect. 14. Applicable Law; Venue. The Parties agree that this MOU is governed in all respects by the laws of the State of Montana. The Parties agree to personal jurisdiction in the courts of Gallatin County, Montana. 15. Dispute Resolution. 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, the Parties may invite an independent, disinterested mediator to assist in the negotiated settlement discussions. If the Parties are unable to resolve the dispute within ninety (90) 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 MOU. 16. Binding Effect. Except where this MOU calls for additional agreement, this MOU is binding upon the Parties. 11 MOU with the Bozeman School District for Bozeman Sports Park Page 6 of 8 17. Nondiscrimination and Equal Pay. The School District agrees that the hiring by School District of persons performing under this MOU shall be on the basis of merit and qualifications. The School District will have a policy to provide equal employment opportunity in accordance with all applicable state and federal anti-discrimination laws, regulations, and contracts. The School District 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 School District 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. School District represents it is, and for the term of this MOU 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). School District must report to the City any violations of the Montana Equal Pay Act that School District has been found guilty of within 60 days of such finding for violations occurring during the term of this MOU. 18. Non-Waiver. A waiver by either Party of any default or breach by the other Party of any terms of conditions of this MOU 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. 19. Notice. Any notice required or permitted under this MOU shall be deemed sufficiently given or served if sent by email with read-receipt requested or by United States certified mail, return receipt requested. 20. Attorney’s Fees and Costs. In the event it becomes necessary for either Party of this MOU to retain an attorney to enforce any of the terms or conditions of this MOU 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 the City Attorney. 21. No Third-Party Beneficiary. This MOU is for the exclusive benefit of the Parties, does not constitute a third-party beneficiary, and may not be relied upon or enforced by a third party. 22. Counterparts. This MOU may be executed in counterparts, which together constitute one instrument. 12 MOU with the Bozeman School District for Bozeman Sports Park Page 7 of 8 23. Integration. This MOU 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 MOU. All communications, either verbal or written, made prior to the date of this MOU are hereby abrogated and withdrawn unless specifically made a part of this MOU by reference. 24. Representatives. a. City: The City’s Representative for the purpose of this Agreement shall be Jon Henderson (Assistant City Manager) or such other individual as City shall designate in writing. Whenever approval or authorization from or communication or submission to City is required by this Agreement, such communication or submission shall be directed to the City’s Representative and approvals or authorizations shall be issued only by such Representative; provided, however, that in exigent circumstances when City’s Representative is not available, the School District may direct its communication to other designated City personnel or agents as listed above and may receive approvals or authorization from such persons. b. School District: The School District Representative for the purpose of this Agreement shall be Mike Waterman (Executive Director Business and Operations) or such other individual as the Foundation shall designate in writing. Whenever direction to or communication with the School District is required by this Agreement, such direction or communication shall be directed to School District’s Representative; provided, however, that in exigent circumstances when School District’s Representative is not available, the City may direct its direction or communication to other designated School District’s’ personnel or agents. c. Notices. All notices required by this MOU 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. 25. Consent to Electronic Signatures. The Parties have consented to execute this MOU electronically in conformance with the Montana Uniform Electronic Transactions Act, Title 30, Chapter 18, Part 1, MCA. 13 MOU with the Bozeman School District for Bozeman Sports Park Page 8 of 8 CITY OF BOZEMAN BOZEMAN SCHOOL DISTRICT NO. 7 By: ____________________________ By: _____________________________ Chuck Winn, Interim City Manager Print Name: ____________________ Title: __________________________ APPROVED AS TO FORM: By: ________________________________ Greg Sullivan, City Attorney 14 9 15 Memorandum REPORT TO:City Commission FROM:Jon Henderson, Assistant City Manager SUBJECT:Authorize the City Manager to Sign a Letter of Agreement Accepting a Donation in the Amount of $250,000 from Bozeman School District 7 for Design Services for Additional Facilities at the Bozeman Sports Park MEETING DATE:December 10, 2024 AGENDA ITEM TYPE:Agreement - Agency/Non-profit RECOMMENDATION:Authorize the City Manager to sign a Letter of Agreement accepting a donation in the amount of $250,000 from Bozeman School District 7 for design services for additional facilities at the Bozeman Sports Park STRATEGIC PLAN:1.3 Public Agencies Collaboration: Foster successful collaboration with other public agencies and build on these successes. BACKGROUND:The City of Bozeman is partnering with Bozeman School District #7 to construct an artificial turf athletic field at the Bozeman Sports Park, including the development of an approximately 100 space parking lot, along with related site plan components including sidewalks and pedestrian paths. Design considerations also include groundwork for an additional turf field, field lighting, and a storage structure to be funded and constructed at a later date. A mid-block pedestrian crossing along Oak will also be constructed adjacent to Gallatin High to ensure safety for all users. In exchange for the District's financial contribution, the City agrees to allow priority use of the field. Once completed, the City will be responsible for costs of maintaining the turf field and related infrastructure. The School District will be responsible for winter snow removal from the parking lot and winter maintenance of the mid-block crossing. This Letter of Agreement confirms the understanding reached by both parties and sets forth the terms and conditions of a contribution by Bozeman School District #7 for design services. A subsequent agreement and transfer of additional funds necessary to complete the project will be necessary prior to construction. This agreement has been reviewed by the Legal Department and found to be acceptable in meeting the City's specifications and standards. UNRESOLVED ISSUES:None. 16 ALTERNATIVES:As directed by the City Commission. FISCAL EFFECTS:This agreement accepts $250,000 to be allocated in support of design services. Any unused funds will be carried forward to support construction services. Attachments: Letter of Agreement - Bozeman Sports Park School District Project - Design and Planning.pdf Report compiled on: November 25, 2024 17 Letter of Agreement December 10, 2024 RE: Bozeman Sports Park School District Project—Letter of Agreement This letter of agreement (the “Agreement”) confirms the understanding reached by the parties and sets forth the terms and conditions of a Financial Contribution by the Bozeman School District #7 (“District”) to the City of Bozeman (“City”) to complete the development of additional facilities at the Bozeman Sports Park. 1. Parties to the Agreement and Notices: a. For District Contact: Mike Waterman, Executive Director Business and Operations Address: 404 West Main Street, Bozeman MT 59715 b. For City Contact: Jon Henderson, Assistant City Manager Address: 121 N. Rouse Ave; Bozeman MT 59715 2. Background: Details of the Project and the specific responsibilities of each party are outlined in the Agreement between the District and the City signed and executed on December 10, 2024. This Agreement recognizes an initial Financial Contribution by the District to the City in the amount of $250,000 to support design and planning for the Project. Subsequent Agreements will be necessary for the transfer of additional funds to necessary to construct the Project. 3. District Responsibilities: a. Submit a check in the amount of $250,000 payable to the City no later than December 31, 2024. 4. City Responsibilities: a. Track the Financial Contribution and its uses separately and distinctly within its accounting records and provide those records to the District upon request. b. Utilize the funds exclusively for design and planning for the Project. c. Carry forward any unused funds to support construction for the Project. d. Highlight the District’s funding and involvement in the project in press releases or other promotional activities. 18 5. Acceptance: By signing below, the undersigned represent that they are authorized to act on behalf of their respective parties and to bind their respective parties to the terms of this Agreement, and that the undersigned parties have read, understand and agree to the above. Bozeman School District #7: Signed: ____________________________ Mike Waterman, Executive Director Business and Operations Date: ______________________________ City of Bozeman: Signed: _____________________________ Chuck Winn, Interim City Manager Date: _______________________________ 19 Memorandum REPORT TO:City Commission FROM:Jamie Grabinski, Grants Coordinator Taylor Lonsdale, Project Engineer Nicholas Ross, Director of Transportation and Engineering SUBJECT:Authorize the City Manager to Sign the 2023 Safe Streets and Roads for All Grant Agreement with the Federal Highway Administration for the Comprehensive Safety Action Plan and Safety Demonstration Project MEETING DATE:December 10, 2024 AGENDA ITEM TYPE:Grant RECOMMENDATION:Authorize the City Manager to Sign the 2023 Safe Streets and Roads for All Grant Agreement with the Federal Highway Administration for the Comprehensive Safety Action Plan and Safety Demonstration Project STRATEGIC PLAN:2.2 Infrastructure Investments: Strategically invest in infrastructure as a mechanism to encourage economic development. BACKGROUND:In July 2023, the City of Bozeman applied to the Federal Highway Administration (FHWA) for a Safe Streets for All (SS4A) grant. Authorized under the Bipartisan Infrastructure Law (BIL), the SS4A program supports the prevention of roadway deaths and serious injuries through grants to local communities. The grant program is separated into planning activities and demonstration activities. There is a required project match of no less than 20% of the total grant amount requested. In 2022, the City Commission adopted the Bozeman Streets are for Everyone (SAFE) Action Plan following the tragic deaths of two community members riding bicycles. The SS4A grant will allow the City to complete a Comprehensive Safety Action Plan. Additionally, as a demonstration activity, Transportation and Engineering will purchase and install advanced technology at key signalized intersections to collect supplemental data and to demonstrate strategies that aim to eliminate serious injuries and fatal crashes. The ITS equipment will allow the City to collect data on red light running, speeding, and near misses. The total project budget is $250,000 with $200,000 in federal funds and $50,000 in City of Bozeman match funds. UNRESOLVED ISSUES:None. ALTERNATIVES:As suggested by the City Commission. FISCAL EFFECTS:The grant will provide a portion of funding to hire a consultant to develop a 20 Safety Action Plan. Additionally, the grant will provide a portion of funding to purchase and install advanced technology at key signalized intersections to collect supplemental data. There is a $50,000 city match with this grant. The funds for the match are available in FY 2025 in the approved budget. Attachments: City of Bozeman SS4A FY23 Exhibits.pdf City of Bozeman SS4A FY23 Terms and Conditions.pdf 693JJ32540080_Signed.pdf Grant routing form_signed.pdf Report compiled on: November 4, 2024 21 U.S. DEPARTMENT OF TRANSPORTATION EXHIBITS TO FHWA GRANT AGREEMENTS UNDER THE FISCAL YEAR 2023 SAFE STREETS AND ROADS FOR ALL (SS4A) GRANT PROGRAM January 4, 2024 22 A-1 EXHIBIT A APPLICABLE FEDERAL LAWS AND REGULATIONS By entering into this agreement for a FY 2023 Safe Streets and Roads for All Grant, the Recipient assures and certifies, with respect to this Grant, that it will comply with all applicable Federal laws, regulations, executive orders, policies, guidelines, and requirements as they relate to the application, acceptance, and use of Federal funds for this Project. Performance under this agreement shall be governed by and in compliance with the following requirements, as applicable, to the type of organization of the Recipient and any applicable sub-recipients. The applicable provisions to this agreement include, but are not limited to, the following: General Federal Legislation a. Federal Fair Labor Standards Act – 29 U.S.C. 201, et seq. b. Hatch Act – 5 U.S.C. 1501, et seq. c. Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970 – 42 U.S.C. 4601, et seq. d. National Historic Preservation Act of 1966 - Section 106 – 54 U.S.C. 306108 e. Archeological and Historic Preservation Act of 1974 – 54 U.S.C. 312501, et seq. f. Native American Graves Protection and Repatriation Act – 25 U.S.C. 3001, et seq. g. Clean Air Act, P.L. 90-148, as amended – 42 U.S.C. 7401, et seq. h. Section 404 of the Clean Water Act, as amended – 33 U.S.C. 1344 i. Section 7 of the Endangered Species Act, P.L. 93-205, as amended – 16 U.S.C. 1536 j. Coastal Zone Management Act, P.L. 92-583, as amended – 16 U.S.C. 1451, et seq. k. Flood Disaster Protection Act of 1973 - Section 102(a) – 42 U.S.C. 4012a l. Age Discrimination Act of 1975 – 42 U.S.C. 6101, et seq. m. American Indian Religious Freedom Act, P.L. 95-341, as amended n. Drug Abuse Office and Treatment Act of 1972, as amended – 21 U.S.C. 1101, et seq. o. The Comprehensive Alcohol Abuse and Alcoholism Prevention, Treatment and Rehabilitation Act of 1970, P.L. 91-616, as amended – 42 U.S.C. 4541, et seq. p. Sections 523 and 527 of the Public Health Service Act of 1912, as amended – 42 U.S.C. 290dd through 290dd-2 q. Architectural Barriers Act of 1968 – 42 U.S.C. 4151, et seq. r. Power Plant and Industrial Fuel Use Act of 1978, P.L. 100-42 - Section 403 – 42 U.S.C. 8373 s. Contract Work Hours and Safety Standards Act – 40 U.S.C. 3701, et seq. t. Copeland Anti-kickback Act, as amended – 18 U.S.C. 874 and 40 U.S.C. 3145 u. National Environmental Policy Act of 1969 – 42 U.S.C. 4321, et seq. v. Wild and Scenic Rivers Act, P.L. 90-542, as amended – 16 U.S.C. 1271, et seq. w. Federal Water Pollution Control Act, as amended – 33 U.S.C. 1251-1376 x. Single Audit Act of 1984 – 31 U.S.C. 7501, et seq. y. Americans with Disabilities Act of 1990 – 42 U.S.C. 12101, et seq. z. Title IX of the Education Amendments of 1972, as amended – 20 U.S.C. 1681 through 1683 and 1685 through 1687 aa. Section 504 of the Rehabilitation Act of 1973, as amended – 29 U.S.C. 794 bb. Title VI of the Civil Rights Act of 1964 – 42 U.S.C. 2000d, et seq. cc. Title IX of the Federal Property and Administrative Services Act of 1949 – 40 U.S.C. 23 A-2 1101 -1104, 541, et seq. dd. Limitation on Use of Appropriated Funds to Influence Certain Federal Contracting and Financial Transactions – 31 U.S.C. 1352 ee. Freedom of Information Act – 5 U.S.C. 552, as amended ff. Magnuson-Stevens Fishery Conservation and Management Act – 16 U.S.C. 1855 gg. Farmland Protection Policy Act of 1981 – 7 U.S.C. 4201, et seq. hh. Noise Control Act of 1972 – 42 U.S.C. 4901, et seq. ii. Fish and Wildlife Coordination Act of 1956 – 16 U.S.C. 661, et seq. jj. Section 9 of the Rivers and Harbors Act and the General Bridge Act of 1946 – 33 U.S.C. 401 and 525 kk. Section 4(f) of the Department of Transportation Act of 1966 – 49 U.S.C. 303 ll. Comprehensive Environmental Response, Compensation, and Liability Act of 1980 (CERCLA), as amended – 42 U.S.C. 9601, et seq. mm. Safe Drinking Water Act – 42 U.S.C. 300f to 300j-26 nn. Wilderness Act – 16 U.S.C. 1131-1136 oo. Solid Waste Disposal Act, as amended by the Resource Conservation and Recovery Act of 1976 – 42 U.S.C. 6901, et seq. pp. Migratory Bird Treaty Act – 16 U.S.C. 703, et seq. qq. The Federal Funding Transparency and Accountability Act of 2006, as amended (Pub. L. 109–282, as amended by section 6202 of Public Law 110–252) rr. Cargo Preference Act of 1954 – 46 U.S.C. 55305 ss. Section 889 of the John D. McCain National Defense Authorization Act for Fiscal Year 2019, Pub. L. 115-232 Executive Orders a. Executive Order 11246 – Equal Employment Opportunity b. Executive Order 11990 – Protection of Wetlands c. Executive Order 11988 – Floodplain Management d. Executive Order 12372 – Intergovernmental Review of Federal Programs e. Executive Order 12549 – Debarment and Suspension f. Executive Order 12898 – Federal Actions to Address Environmental Justice in Minority Populations and Low-Income Populations g. Executive Order 13166 – Improving Access to Services for Persons With Limited English Proficiency h. Executive Order 13985 – Advancing Racial Equity and Support for Underserved Communities Through the Federal Government i. Executive Order 14005 – Ensuring the Future is Made in All of America by All of America’s Workers j. Executive Order 14008 – Tackling the Climate Crisis at Home and Abroad k. Executive Order 14025 – Worker Organizing and Empowerment l. Executive Order 14052 – Implementation of the Infrastructure Investment and Jobs Act Presidential Policy Directives and Memorandums a. Presidential Policy Directive 21 – Critical Infrastructure Security and Resilience b. National Security Presidential Memorandum on Improving Cybersecurity for Critical Infrastructure Systems 24 A-3 General Federal Regulations a. Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards – 2 C.F.R. Parts 200, 1201 b. Non-procurement Suspension and Debarment – 2 C.F.R. Parts 180, 1200 c. Investigative and Enforcement Procedures – 14 C.F.R. Part 13 d. Procedures for predetermination of wage rates – 29 C.F.R. Part 1 e. Contractors and subcontractors on public building or public work financed in whole or part by loans or grants from the United States – 29 C.F.R. Part 3 f. Labor standards provisions applicable to contracts governing federally financed and assisted construction (also labor standards provisions applicable to non-construction contracts subject to the Contract Work Hours and Safety Standards Act) – 29 C.F.R. Part 5 g. Office of Federal Contract Compliance Programs, Equal Employment Opportunity, Department of Labor (Federal and federally assisted contracting requirements) – 41 C.F.R. Parts 60, et seq. h. New Restrictions on Lobbying – 49 C.F.R. Part 20 i. Nondiscrimination in Federally Assisted Programs of the Department of Transportation – Effectuation of Title VI of the Civil Rights Act of 1964 – 49 C.F.R. Part 21 j. Uniform relocation assistance and real property acquisition for Federal and Federally assisted programs – 49 C.F.R. Part 24 k. Nondiscrimination on the Basis of Sex in Education Programs or Activities Receiving Federal Financial Assistance – 49 C.F.R. Part 25 l. Nondiscrimination on the Basis of Handicap in Programs and Activities Receiving or Benefiting from Federal Financial Assistance – 49 C.F.R. Part 27 m. DOT’s implementation of DOJ’s ADA Title II regulations compliance procedures for all programs, services, and regulatory activities relating to transportation under 28 C.F.R. Part 35 n. Enforcement of Nondiscrimination on the Basis of Handicap in Programs or Activities Conducted by the Department of Transportation – 49 C.F.R. Part 28 o. Denial of public works contracts to suppliers of goods and services of countries that deny procurement market access to U.S. contractors – 49 C.F.R. Part 30 p. Governmentwide Requirements for Drug-Free Workplace (Financial Assistance) – 49 C.F.R. Part 32 q. DOT’s implementing ADA regulations for transit services and transit vehicles, including the DOT’s standards for accessible transportation facilities in Part 37, Appendix A – 49 C.F.R. Parts 37 and 38 r. Participation by Disadvantaged Business Enterprises in Department of Transportation Financial Assistance Programs – 49 C.F.R. Part 26 (as applicable under section 18.3 of this agreement) Office of Management and Budget Circulars a. Any applicable OMB Circular based upon the specific FY 2023 Safe Streets and Roads for All Grant Recipient. 25 A-4 Highway Federal Legislation a. Agreements relating to the use of an access to rights-of-way—Interstate System, 23 U.S.C. 111 b. Planning, 23 U.S.C. 134 and 135 (except for projects that are not regionally significant that do not receive funding under Title 23 or Chapter 53 of Title 49) c. Tolls, 23 U.S.C. 301 (to the extent the recipient wishes to toll an existing free facility that has received Title 23 funds in the past); except as authorized by 23 U.S.C. 129 and 166. d. Efficient Environmental Reviews - 23 U.S.C. 139 e. Policy on lands, wildlife and waterfowl refuges, and historic sites - 49 U.S.C. 303 Federal Highway Regulations a. Planning – 23 C.F.R. Part 450 (except for projects that are not regionally significant that do not receive funding under Title 23 or Chapter 53 of Title 49) b. National Highway System Design Standards – 23 C.F.R. Part 625 c. Location and Hydraulic Design of Encroachments on Flood Plains – 23 C.F.R. Part 650 Subpart A d. Manual on Uniform Traffic Control Devices – 23 C.F.R. Part 655 e. Environmental Impact and Related Procedures – 23 C.F.R. Part 771 f. Parks, Recreation Areas, Wildlife and Waterfowl Refuges, and Historic Sites (Section 4(f)) – 23 C.F.R. Part 774 g. Permitting Requirements under the National Pollutant Discharge Elimination System – 40 C.F.R. Part 122 Specific assurances required to be included in the FY 2023 Safe Streets and Roads for All Grant agreement by any of the above laws, regulations, or circulars are hereby incorporated by reference into this agreement. 26 B-1 EXHIBIT B ADDITIONAL STANDARD TERMS TERM B.1 TITLE VI ASSURANCE (Implementing Title VI of the Civil Rights Act of 1964, as amended) ASSURANCE CONCERNING NONDISCRIMINATION IN FEDERALLY-ASSISTED PROGRAMS AND ACTIVITIES RECEIVING OR BENEFITING FROM FEDERAL FINANCIAL ASSISTANCE (Implementing the Rehabilitation Act of 1973, as amended, and the Americans With Disabilities Act, as amended) 49 C.F.R. Parts 21, 25, 27, 37, and 38 The United States Department of Transportation (USDOT) Standard Title VI/Non-Discrimination Assurances DOT Order No. 1050.2A By signing and submitting the Technical Application and by entering into this agreement under the FY 2023 Safe Streets and Roads for All (SS4A) grant program, the Recipient HEREBY AGREES THAT, as a condition to receiving any Federal financial assistance from the U.S. Department of Transportation (DOT), through the Federal Highway Administration (FHWA), it is subject to and will comply with the following: Statutory/Regulatory Authorities • Title VI of the Civil Rights Act of 1964 (42 U.S.C. § 2000d et seq., 78 stat. 252), (prohibits discrimination on the basis of race, color, national origin); • 49 C.F.R. Part 21 (entitled Non-discrimination In Federally-Assisted Programs Of The Department Of Transportation—Effectuation Of Title VI Of The Civil Rights Act Of 1964); • 28 C.F.R. section 50.3 (U.S. Department of Justice Guidelines for Enforcement of Title VI of the Civil Rights Act of 1964); The preceding statutory and regulatory cites hereinafter are referred to as the “Acts” and “Regulations,” respectively. 27 B-2 General Assurances In accordance with the Acts, the Regulations, and other pertinent directives, circulars, policy, memoranda, and/or guidance, the Recipient hereby gives assurance that it will promptly take any measures necessary to ensure that: “No person in the United States shall, on the grounds of race, color, or national origin, be excluded from participation in, be denied the benefits of, or be otherwise subjected to discrimination under any program or activity,” for which the Recipient receives Federal financial assistance from DOT, including the FHWA. The Civil Rights Restoration Act of 1987 clarified the original intent of Congress, with respect to Title VI and other Non-discrimination requirements (The Age Discrimination Act of 1975, and Section 504 of the Rehabilitation Act of 1973), by restoring the broad, institutional-wide scope and coverage of these non-discrimination statutes and requirements to include all programs and activities of the Recipient, so long as any portion of the program is Federally assisted. Specific Assurances More specifically, and without limiting the above general Assurance, the Recipient agrees with and gives the following Assurances with respect to its Federally assisted FY 2023 SS4A grant program: 1. The Recipient agrees that each “activity,” “facility,” or “program,” as defined in §§ 21.23 (b) and 21.23 (e) of 49 C.F.R. § 21 will be (with regard to an “activity”) facilitated, or will be (with regard to a “facility”) operated, or will be (with regard to a “program”) conducted in compliance with all requirements imposed by, or pursuant to the Acts and the Regulations. 2. The Recipient will insert the following notification in all solicitations for bids, Requests For Proposals for work, or material subject to the Acts and the Regulations made in connection with the FY 2023 SS4A Grant and, in adapted form, in all proposals for negotiated agreements regardless of funding source: “The Recipient, in accordance with the provisions of Title VI of the Civil Rights Act of 1964 (78 Stat. 252, 42 U.S.C. §§ 2000d to 2000d-4) and the Regulations, hereby notifies all bidders that it will affirmatively ensure that for any contract entered into pursuant to this advertisement, disadvantaged business enterprises will be afforded full and fair opportunity to submit bids in response to this invitation and will not be discriminated against on the grounds of race, color, or national origin in consideration for an award.” 28 B-3 3. The Recipient will insert the clauses of Appendix A and E of this Assurance in every contract or agreement subject to the Acts and the Regulations. 4. The Recipient will insert the clauses of Appendix B of this Assurance, as a covenant running with the land, in any deed from the United States effecting or recording a transfer of real property, structures, use, or improvements thereon or interest therein to a Recipient. 5. That where the Recipient receives Federal financial assistance to construct a facility, or part of a facility, the Assurance will extend to the entire facility and facilities operated in connection therewith. 6. That where the Recipient receives Federal financial assistance in the form, or for the acquisition of real property or an interest in real property, the Assurance will extend to rights to space on, over, or under such property. 7. That the Recipient will include the clauses set forth in Appendix C and Appendix D of this Assurance, as a covenant running with the land, in any future deeds, leases, licenses, permits, or similar instruments entered into by the Recipient with other parties: a. for the subsequent transfer of real property acquired or improved under the applicable activity, project, or program; and b. for the construction or use of, or access to, space on, over, or under real property acquired or improved under the applicable activity, project, or program. 8. That this Assurance obligates the Recipient for the period during which Federal financial assistance is extended to the program, except where the Federal financial assistance is to provide, or is in the form of, personal property, or real property, or interest therein, or structures or improvements thereon, in which case the Assurance obligates the Recipient, or any transferee for the longer of the following periods: a. the period during which the property is used for a purpose for which the Federal financial assistance is extended, or for another purpose involving the provision of similar services or benefits; or b. the period during which the Recipient retains ownership or possession of the property. 9. The Recipient will provide for such methods of administration for the program as are found by the Secretary of Transportation or the official to whom he/she delegates specific authority to give reasonable guarantee that it, other recipients, sub-recipients, contractors, subcontractors, consultants, transferees, successors in interest, and other participants of Federal financial assistance under such program will comply with all requirements imposed or pursuant to the Acts, the Regulations, and this Assurance. 10. The Recipient agrees that the United States has a right to seek judicial enforcement with regard to any matter arising under the Acts, the Regulations, and this Assurance. 29 B-4 By signing this ASSURANCE, the Recipient also agrees to comply (and require any sub- recipients, contractors, successors, transferees, and/or assignees to comply) with all applicable provisions governing the FHWA’s access to records, accounts, documents, information, facilities, and staff. You also recognize that you must comply with any program or compliance reviews, and/or complaint investigations conducted by the FHWA. You must keep records, reports, and submit the material for review upon request to FHWA, or its designee in a timely, complete, and accurate way. Additionally, you must comply with all other reporting, data collection, and evaluation requirements, as prescribed by law or detailed in program guidance. The Recipient gives this ASSURANCE in consideration of and for obtaining any Federal grants, loans, contracts, agreements, property, and/or discounts, or other Federal-aid and Federal financial assistance extended after the date hereof to the recipients by the U.S. Department of Transportation under the FY 2023 SS4A grant program. This ASSURANCE is binding on the Recipient, other recipients, sub-recipients, contractors, subcontractors and their subcontractors’, transferees, successors in interest, and any other participants in the FY 2023 SS4A grant program. 30 B-5 APPENDIX A During the performance of this contract, the contractor, for itself, its assignees, and successors in interest (hereinafter referred to as the “contractor”) agrees as follows: 1. Compliance with Regulations: The contractor (hereinafter includes consultants) will comply with the Acts and the Regulations relative to Non-discrimination in Federally-assisted programs of the U.S. Department of Transportation, Federal Highway Administration (FHWA), as they may be amended from time to time, which are herein incorporated by reference and made a part of this contract. 2. Non-discrimination: The contractor, with regard to the work performed by it during the contract, will not discriminate on the grounds of race, color, or national origin in the selection and retention of subcontractors, including procurements of materials and leases of equipment. The contractor will not participate directly or indirectly in the discrimination prohibited by the Acts and the Regulations, including employment practices when the contract covers any activity, project, or program set forth in Appendix B of 49 C.F.R. Part 21. 3. Solicitations for Subcontracts, Including Procurements of Materials and Equipment: In all solicitations, either by competitive bidding, or negotiation made by the contractor for work to be performed under a subcontract, including procurements of materials, or leases of equipment, each potential subcontractor or supplier will be notified by the contractor of the contractor’s obligations under this contract and the Acts and the Regulations relative to Non-discrimination on the grounds of race, color, or national origin. 4. Information and Reports: The contractor will provide all information and reports required by the Acts, the Regulations, and directives issued pursuant thereto and will permit access to its books, records, accounts, other sources of information, and its facilities as may be determined by the Recipient or the FHWA to be pertinent to ascertain compliance with such Acts, Regulations, and instructions. Where any information required of a contractor is in the exclusive possession of another who fails or refuses to furnish the information, the contractor will so certify to the Recipient or the FHWA, as appropriate, and will set forth what efforts it has made to obtain the information. 5. Sanctions for Noncompliance: In the event of a contractor’s noncompliance with the Non-discrimination provisions of this contract, the Recipient will impose such contract sanctions as it or the FHWA may determine to be appropriate, including, but not limited to: a. withholding payments to the contractor under the contract until the contractor complies; and/or b. cancelling, terminating, or suspending a contract, in whole or in part. 6. Incorporation of Provisions: The contractor will include the provisions of paragraphs one through six in every subcontract, including procurements of materials and leases of equipment, unless exempt by the Acts, the Regulations and directives issued pursuant 31 B-6 thereto. The contractor will take action with respect to any subcontract or procurement as the Recipient or the FHWA may direct as a means of enforcing such provisions including sanctions for noncompliance. Provided, that if the contractor becomes involved in, or is threatened with litigation by a subcontractor, or supplier because of such direction, the contractor may request the Recipient to enter into any litigation to protect the interests of the Recipient. In addition, the contractor may request the United States to enter into the litigation to protect the interests of the United States. 32 B-7 APPENDIX B CLAUSES FOR DEEDS TRANSFERRING UNITED STATES PROPERTY The following clauses will be included in deeds effecting or recording the transfer of real property, structures, or improvements thereon, or granting interest therein from the United States pursuant to the provisions of Specific Assurance 4: NOW, THEREFORE, the U.S. Department of Transportation as authorized by law and upon the condition that the Recipient will accept title to the lands and maintain the project constructed thereon in accordance with the Infrastructure Investment and Jobs Act, Pub. L. No. 117-58 (Nov. 15, 2021), the Consolidated Appropriations Act, 2022, Pub. L. No. 117-103 (Mar. 15, 2022), 49 U.S.C. § 6702, the Regulations for the Administration of FY 2023 SS4A grant program, and the policies and procedures prescribed by the Federal Highway Administration (FHWA) of the U.S. Department of Transportation in accordance and in compliance with all requirements imposed by Title 49, Code of Federal Regulations, U.S. Department of Transportation, Subtitle A, Office of the Secretary, Part 21, Non-discrimination in Federally-assisted programs of the U.S. Department of Transportation pertaining to and effectuating the provisions of Title VI of the Civil Rights Act of 1964 (78 Stat. 252; 42 U.S.C. § 2000d to 2000d-4), does hereby remise, release, quitclaim and convey unto the Recipient all the right, title and interest of the U.S. Department of Transportation in and to said lands described in Exhibit A attached hereto and made a part hereof. (HABENDUM CLAUSE) TO HAVE AND TO HOLD said lands and interests therein unto Recipient and its successors forever, subject, however, to the covenants, conditions, restrictions and reservations herein contained as follows, which will remain in effect for the period during which the real property or structures are used for a purpose for which Federal financial assistance is extended or for another purpose involving the provision of similar services or benefits and will be binding on the Recipient, its successors and assigns. The Recipient, in consideration of the conveyance of said lands and interests in lands, does hereby covenant and agree as a covenant running with the land for itself, its successors and assigns, that (1) no person will on the grounds of race, color, or national origin, be excluded from participation in, be denied the benefits of, or be otherwise subjected to discrimination with regard to any facility located wholly or in part on, over, or under such lands hereby conveyed [,] [and]* (2) that the Recipient will use the lands and interests in lands and interests in lands so conveyed, in compliance with all requirements imposed by or pursuant to Title 49, Code of Federal Regulations, U.S. Department of Transportation, Subtitle A, Office of the Secretary, Part 21, Non-discrimination in Federally-assisted programs of the U.S. Department of Transportation, Effectuation of Title VI of the Civil Rights Act of 1964, and as said Regulations and Acts may be amended[, and (3) that in the event of breach of any of the above-mentioned non-discrimination conditions, the Department will have a right to enter or re-enter said lands and facilities on said land, and that above described land and facilities will thereon revert to and vest in and become the absolute property of the U.S. Department of Transportation and its assigns as such interest existed prior to this instruction].* 33 B-8 (*Reverter clause and related language to be used only when it is determined that such a clause is necessary in order to make clear the purpose of Title VI.) 34 B-9 APPENDIX C CLAUSES FOR TRANSFER OF REAL PROPERTY ACQUIRED OR IMPROVED UNDER THE ACTIVITY, FACILITY, OR PROGRAM The following clauses will be included in deeds, licenses, leases, permits, or similar instruments entered into by the Recipient pursuant to the provisions of Specific Assurance 7(a): A. The (Recipient, lessee, permittee, etc. as appropriate) for himself/herself, his/her heirs, personal representatives, successors in interest, and assigns, as a part of the consideration hereof, does hereby covenant and agree [in the case of deeds and leases add “as a covenant running with the land”] that: 1. In the event facilities are constructed, maintained, or otherwise operated on the property described in this (deed, license, lease, permit, etc.) for a purpose for which a U.S. Department of Transportation activity, facility, or program is extended or for another purpose involving the provision of similar services or benefits, the (Recipient, licensee, lessee, permittee, etc.) will maintain and operate such facilities and services in compliance with all requirements imposed by the Acts and Regulations (as may be amended) such that no person on the grounds of race, color, or national origin, will be excluded from participation in, denied the benefits of, or be otherwise subjected to discrimination in the use of said facilities. B. With respect to licenses, leases, permits, etc., in the event of breach of any of the above Non-discrimination covenants, Recipient will have the right to terminate the (lease, license, permit, etc.) and to enter, re-enter, and repossess said lands and facilities thereon, and hold the same as if the (lease, license, permit, etc.) had never been made or issued.* C. With respect to a deed, in the event of breach of any of the above Non-discrimination covenants, the Recipient will have the right to enter or re-enter the lands and facilities thereon, and the above described lands and facilities will there upon revert to and vest in and become the absolute property of the Recipient and its assigns.* (*Reverter clause and related language to be used only when it is determined that such a clause is necessary to make clear the purpose of Title VI.) 35 B-10 APPENDIX D CLAUSES FOR CONSTRUCTION/USE/ACCESS TO REAL PROPERTY ACQUIRED UNDER THE ACTIVITY, FACILITY OR PROGRAM The following clauses will be included in deeds, licenses, permits, or similar instruments/agreements entered into by Recipient pursuant to the provisions of Specific Assurance 7(b): A. The (Recipient, licensee, permittee, etc., as appropriate) for himself/herself, his/her heirs, personal representatives, successors in interest, and assigns, as a part of the consideration hereof, does hereby covenant and agree (in the case of deeds and leases add, “as a covenant running with the land”) that (1) no person on the ground of race, color, or national origin, will be excluded from participation in, denied the benefits of, or be otherwise subjected to discrimination in the use of said facilities, (2) that in the construction of any improvements on, over, or under such land, and the furnishing of services thereon, no person on the ground of race, color, or national origin, will be excluded from participation in, denied the benefits of, or otherwise be subjected to discrimination, (3) that the (Recipient, licensee, lessee, permittee, etc.) will use the premises in compliance with all other requirements imposed by or pursuant to the Acts and Regulations, as amended, set forth in this Assurance. B. With respect to (licenses, leases, permits, etc.), in the event of breach of any of the above Non-discrimination covenants, Recipient will have the right to terminate the (license, permit, etc., as appropriate) and to enter or re-enter and repossess said land and the facilities thereon, and hold the same as if said (license, permit, etc., as appropriate) had never been made or issued.* C. With respect to deeds, in the event of breach of any of the above Non-discrimination covenants, Recipient will there upon revert to and vest in and become the absolute property of Recipient and its assigns.* (*Reverter clause and related language to be used only when it is determined that such a clause is necessary to make clear the purpose of Title VI.) 36 B-11 APPENDIX E During the performance of this contract, the contractor, for itself, its assignees, and successors in interest (hereinafter referred to as the “contractor”) agrees to comply with the following non-discrimination statutes and authorities; including but not limited to: Pertinent Non-Discrimination Authorities: • Title VI of the Civil Rights Act of 1964 (42 U.S.C. § 2000d et seq., 78 stat. 252), (prohibits discrimination on the basis of race, color, national origin); and 49 C.F.R. Part 21. • The Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970, (42 U.S.C. § 4601), (prohibits unfair treatment of persons displaced or whose property has been acquired because of Federal or Federal-aid programs and projects); • Section 504 of the Rehabilitation Act of 1973, (29 U.S.C. § 794 et seq.), as amended, (prohibits discrimination on the basis of disability); and 49 C.F.R. Part 27; • The Age Discrimination Act of 1975, as amended, (42 U.S.C. § 6101 et seq.), (prohibits discrimination on the basis of age); • Airport and Airway Improvement Act of 1982, (49 U.S.C. § 471, Section 47123), as amended, (prohibits discrimination based on race, creed, color, national origin, or sex); • The Civil Rights Restoration Act of 1987, (PL 100-209), (Broadened the scope, coverage and applicability of Title VI of the Civil Rights Act of 1964, The Age Discrimination Act of 1975 and Section 504 of the Rehabilitation Act of 1973, by expanding the definition of the terms “programs or activities” to include all of the programs or activities of the Federal-aid recipients, sub-recipients and contractors, whether such programs or activities are Federally funded or not); • Titles II and III of the Americans with Disabilities Act, which prohibit discrimination on the basis of disability in the operation of public entities, public and private transportation systems, places of public accommodation, and certain testing entities (42 U.S.C. §§ 12131 – 12189) as implemented by Department of Transportation regulations at 49 C.F.R. Parts 37 and 38; • The Federal Aviation Administration’s Non-discrimination statute (49 U.S.C. § 47123) (prohibits discrimination on the basis of race, color, national origin, and sex); • Executive Order 12898, Federal Actions to Address Environmental Justice in Minority Populations and Low-Income Populations, which ensures nondiscrimination against minority populations by discouraging programs, policies, and activities with disproportionately high and adverse human health or environmental effects on minority and low-income populations; • Executive Order 13166, Improving Access to Services for Persons with Limited English Proficiency, and resulting agency guidance, national origin discrimination includes discrimination because of limited English proficiency (LEP). To ensure compliance with Title VI, you must take reasonable steps to ensure that LEP persons have meaningful access to your programs (70 Fed. Reg. at 74087 to 74100); • Title IX of the Education Amendments of 1972, as amended, which prohibits you from discriminating because of sex in education programs or activities (20 U.S.C. § 1681 et seq). 37 B-12 TERM B.2 CERTIFICATION REGARDING DEBARMENT, SUSPENSION, AND OTHER RESPONSIBILITY MATTERS -- PRIMARY COVERED TRANSACTIONS 2 C.F.R. Parts 180 and 1200 These assurances and certifications are applicable to all Federal-aid construction contracts, design-build contracts, subcontracts, lower-tier subcontracts, purchase orders, lease agreements, consultant contracts or any other covered transaction requiring FHWA approval or that is estimated to cost $25,000 or more – as defined in 2 C.F.R. Parts 180 and 1200. By signing and submitting the Technical Application and by entering into this agreement under the FY 2023SS4A grant program, the Recipient is providing the assurances and certifications for First Tier Participants and Lower Tier Participants in the FY 2023 SS4A Grant, as set out below. 1. Instructions for Certification – First Tier Participants: a. The prospective first tier participant is providing the certification set out below. b. The inability of a person to provide the certification set out below will not necessarily result in denial of participation in this covered transaction. The prospective first tier participant shall submit an explanation of why it cannot provide the certification set out below. The certification or explanation will be considered in connection with the department or agency’s determination whether to enter into this transaction. However, failure of the prospective first tier participant to furnish a certification or an explanation shall disqualify such a person from participation in this transaction. c. The certification in this clause is a material representation of fact upon which reliance was placed when the contracting agency determined to enter into this transaction. If it is later determined that the prospective participant knowingly rendered an erroneous certification, in addition to other remedies available to the Federal Government, the contracting agency may terminate this transaction for cause of default. d. The prospective first tier participant shall provide immediate written notice to the contracting agency to whom this proposal is submitted if any time the prospective first tier participant learns that its certification was erroneous when submitted or has become erroneous by reason of changed circumstances. e. The terms “covered transaction,” “civil judgment,” “debarred,” “suspended,” “ineligible,” “participant,” “person,” “principal,” and “voluntarily excluded,” as used in this clause, are defined in 2 C.F.R. Parts 180 and 1200. “First Tier Covered Transactions” refers to any covered transaction between a Recipient or subrecipient of Federal funds and a participant (such as the prime or general contract). “Lower Tier Covered Transactions” refers to any covered transaction under a First Tier Covered Transaction (such as subcontracts). “First Tier Participant” refers to the participant who has entered into a covered transaction with a Recipient or subrecipient of 38 B-13 Federal funds (such as the prime or general contractor). “Lower Tier Participant” refers to any participant who has entered into a covered transaction with a First Tier Participant or other Lower Tier Participants (such as subcontractors and suppliers). f. The prospective first tier participant agrees by submitting this proposal that, should the proposed covered transaction be entered into, it shall not knowingly enter into any lower tier covered transaction with a person who is debarred, suspended, declared ineligible, or voluntarily excluded from participation in this covered transaction, unless authorized by the department or agency entering into this transaction. g. The prospective first tier participant further agrees by submitting this proposal that it will include the clause titled “Certification Regarding Debarment, Suspension, Ineligibility and Voluntary Exclusion-Lower Tier Covered Transactions,” provided by the department or contracting agency, entering into this covered transaction, without modification, in all lower tier covered transactions and in all solicitations for lower tier covered transactions exceeding the $25,000 threshold. h. A participant in a covered transaction may rely upon a certification of a prospective participant in a lower tier covered transaction that is not debarred, suspended, ineligible, or voluntarily excluded from the covered transaction, unless it knows that the certification is erroneous. A participant is responsible for ensuring that its principals are not suspended, debarred, or otherwise ineligible to participate in covered transactions. To verify the eligibility of its principals, as well as the eligibility of any lower tier prospective participants, each participant may, but is not required to, check the System for Award Management website (https://www.sam.gov/), which is compiled by the General Services Administration. i. Nothing contained in the foregoing shall be construed to require the establishment of a system of records in order to render in good faith the certification required by this clause. The knowledge and information of the prospective participant is not required to exceed that which is normally possessed by a prudent person in the ordinary course of business dealings. j. Except for transactions authorized under paragraph (f) of these instructions, if a participant in a covered transaction knowingly enters into a lower tier covered transaction with a person who is suspended, debarred, ineligible, or voluntarily excluded from participation in this transaction, in addition to other remedies available to the Federal Government, the department or agency may terminate this transaction for cause or default. Certification Regarding Debarment, Suspension, Ineligibility and Voluntary Exclusion – First Tier Participants: a. The prospective first tier participant certifies to the best of its knowledge and belief, that it and its principals: (1) Are not presently debarred, suspended, proposed for debarment, declared ineligible, or voluntarily excluded from participating in covered transactions by any Federal department or agency; 39 B-14 (2) Have not within a three-year period preceding this proposal been convicted of or had a civil judgment, including a civil settlement, rendered against them for commission of fraud or a criminal offense in connection with obtaining, attempting to obtain, or performing a public (Federal, State or local) transaction or contract under a public transaction; violation of Federal or State antitrust statutes or commission of embezzlement, theft, forgery, bribery, falsification or destruction of records, making false statements, or receiving stolen property; (3) Are not presently indicted for or otherwise criminally or civilly charged by a governmental entity (Federal, State or local) with commission of any of the offenses enumerated in paragraph (a)(2) of this certification; and (4) Have not within a three-year period preceding this application/proposal had one or more public transactions (Federal, State or local) terminated for cause or default. b. Where the prospective participant is unable to certify to any of the statements in this certification, such prospective participant shall attach an explanation to this proposal. 2. Instructions for Certification - Lower Tier Participants: (Applicable to all subcontracts, purchase orders and other lower tier transactions requiring prior FHWA approval or estimated to cost $25,000 or more - 2 C.F.R. Parts 180 and 1200) a. The prospective lower tier participant is providing the certification set out below. b. The certification in this clause is a material representation of fact upon which reliance was placed when this transaction was entered into. If it is later determined that the prospective lower tier participant knowingly rendered an erroneous certification, in addition to other remedies available to the Federal Government, the department, or agency with which this transaction originated may pursue available remedies, including suspension and/or debarment. c. The prospective lower tier participant shall provide immediate written notice to the person to which this proposal is submitted if at any time the prospective lower tier participant learns that its certification was erroneous by reason of changed circumstances. d. The terms “covered transaction,” “civil settlement,” “debarred,” “suspended,” “ineligible,” “participant,” “person,” “principal,” and “voluntarily excluded,” as used in this clause, are defined in 2 C.F.R. Parts 180 and 1200. You may contact the person to which this proposal is submitted for assistance in obtaining a copy of those regulations. “First Tier Covered Transactions” refers to any covered transaction between a Recipient or subrecipient of Federal funds and a participant (such as the prime or general contract). “Lower Tier Covered Transactions” refers to any covered transaction under a First Tier Covered Transaction (such as subcontracts). “First Tier Participant” refers to the participant who has entered into a covered transaction with a Recipient or subrecipient of Federal funds (such as the prime or general contractor). “Lower Tier Participant” refers any participant who has entered into a covered 40 B-15 transaction with a First Tier Participant or other Lower Tier Participants (such as subcontractors and suppliers). e. The prospective lower tier participant agrees by submitting this proposal that, should the proposed covered transaction be entered into, it shall not knowingly enter into any lower tier covered transaction with a person who is debarred, suspended, declared ineligible, or voluntarily excluded from participation in this covered transaction, unless authorized by the department or agency with which this transaction originated. f. The prospective lower tier participant further agrees by submitting this proposal that it will include this clause titled “Certification Regarding Debarment, Suspension, Ineligibility and Voluntary Exclusion-Lower Tier Covered Transaction,” without modification, in all lower tier covered transactions and in all solicitations for lower tier covered transactions exceeding the $25,000 threshold. g. A participant in a covered transaction may rely upon a certification of a prospective participant in a lower tier covered transaction that is not debarred, suspended, ineligible, or voluntarily excluded from the covered transaction, unless it knows that the certification is erroneous. A participant is responsible for ensuring that its principals are not suspended, debarred, or otherwise ineligible to participate in covered transactions. To verify the eligibility of its principals, as well as the eligibility of any lower tier prospective participants, each participant may, but is not required to, check the System for Award Management website (https://www.sam.gov/), which is compiled by the General Services Administration. h. Nothing contained in the foregoing shall be construed to require establishment of a system of records to render in good faith the certification required by this clause. The knowledge and information of participant is not required to exceed that which is normally possessed by a prudent person in the ordinary course of business dealings. i. Except for transactions authorized under paragraph e of these instructions, if a participant in a covered transaction knowingly enters a lower tier covered transaction with a person who is suspended, debarred, ineligible, or voluntarily excluded from participation in this transaction, in addition to other remedies available to the Federal Government, the department or agency with which this transaction originated may pursue available remedies, including suspension and/or debarment. Certification Regarding Debarment, Suspension, Ineligibility and Voluntary Exclusion -- Lower Tier Participants: 1. The prospective lower tier participant certifies, by submission of this proposal, that neither it nor its principals are presently debarred, suspended, proposed for debarment, declared ineligible, or voluntarily excluded from participating in covered transactions by any Federal department or agency. 2. Where the prospective lower tier participant is unable to certify to any of the statements in this certification, such prospective participant shall attach an explanation to this proposal. 41 B-16 TERM B.3 REQUIREMENTS REGARDING DELINQUENT TAX LIABILITY OR A FELONY CONVICTION UNDER ANY FEDERAL LAW As required by sections 744 and 745 of Title VII, Division E of the Consolidated Appropriations Act, 2023, Pub. L. No. 117-328 (Dec. 29, 2022), and implemented through USDOT Order 4200.6, the funds provided under this award shall not be used to enter into a contract, memorandum of understanding, or cooperative agreement with, make a grant to, or provide a loan or loan guarantee to, any corporation that: (1) Has any unpaid Federal tax liability that has been assessed, for which all judicial and administrative remedies have been exhausted or have lapsed, and that is not being paid in a timely manner pursuant to an agreement with the authority responsible for collecting the tax liability, where the awarding agency is aware of the unpaid tax liability, unless a Federal agency has considered suspension or debarment of the corporation and made a determination that suspension or debarment is not necessary to protect the interests of the Government; or (2) Was convicted of a felony criminal violation under any Federal law within the preceding 24 months, where the awarding agency is aware of the conviction, unless a Federal agency has considered suspension or debarment of the corporation and made a determination that suspension or debarment is not necessary to protect the interests of the Government. The Recipient therefore agrees: 1. Definitions. For the purposes of this exhibit, the following definitions apply: “Covered Transaction” means a transaction that uses any funds under this award and that is a contract, memorandum of understanding, cooperative agreement, grant, loan, or loan guarantee. “Felony Conviction” means a conviction within the preceding 24 months of a felony criminal violation under any Federal law and includes conviction of an offense defined in a section of the United States Code that specifically classifies the offense as a felony and conviction of an offense that is classified as a felony under 18 U.S.C. 3559. “Participant” means the Recipient, an entity who submits a proposal for a Covered Transaction, or an entity who enters into a Covered Transaction. “Tax Delinquency” means an unpaid Federal tax liability that has been assessed, for which all judicial and administrative remedies have been exhausted, or have lapsed, and that is not being paid in a timely manner pursuant to an agreement with the authority responsible for collecting the tax liability. 42 B-17 2. Mandatory Check in the System for Award Management. Before entering a Covered Transaction with another entity, a Participant shall check the System for Award Management (the “SAM”) at http://www.sam.gov/ for an entry describing that entity. 3. Mandatory Certifications. Before entering a Covered Transaction with another entity, a Participant shall require that entity to: (1) Certify whether the entity has a Tax Delinquency; and (2) Certify whether the entity has a Felony Conviction. 4 Prohibition. If (1) the SAM entry for an entity indicates that the entity has a Tax Delinquency or a Federal Conviction; (2) an entity provides an affirmative response to either certification in section 3; or (3) an entity’s certification under section 3 was inaccurate when made or became inaccurate after being made then a Participant shall not enter or continue a Covered Transaction with that entity unless the USDOT has determined in writing that suspension or debarment of that entity are not necessary to protect the interests of the Government. 5. Mandatory Notice to the USDOT. (a) If the SAM entry for a Participant indicates that the Participant has a Tax Delinquency or a Felony Conviction, the Recipient shall notify the USDOT in writing of that entry. (b) If a Participant provides an affirmative response to either certification in section 1, the Recipient shall notify the USDOT in writing of that affirmative response. (c) If the Recipient knows that a Participant’s certification under section 1 was inaccurate when made or became inaccurate after being made, the Recipient shall notify the USDOT in writing of that inaccuracy. 6. Flow Down. For all Covered Transactions, including all tiers of subcontracts and subawards, the Recipient shall: (1) require the SAM check in section 2; (2) require the certifications in section 3; (3) include the prohibition in section 4; and 43 B-18 (4) require all Participants to notify the Recipient in writing of any information that would require the Recipient to notify the USDOT under section 5. 44 B-19 TERM B.4 RECIPIENT POLICY TO BAN TEXT MESSAGING WHILE DRIVING (a) Definitions. The following definitions are intended to be consistent with the definitions in DOT Order 3902.10, Text Messaging While Driving (Dec. 30, 2009) and Executive Order 13513, Federal Leadership on Reducing Text Messaging While Driving (Oct. 1, 2009). For clarification purposes, they may expand upon the definitions in the executive order. For the purpose of this Term B.4, “Motor Vehicles” means any vehicle, self-propelled or drawn by mechanical power, designed and operated principally for use on a local, State or Federal roadway, but does not include a military design motor vehicle or any other vehicle excluded under Federal Management Regulation 102-34-15. For the purpose of this Term B.4, “Driving” means operating a motor vehicle on a roadway, including while temporarily stationary because of traffic congestion, a traffic signal, a stop sign, another traffic control device, or otherwise. It does not include being in your vehicle (with or without the motor running) in a location off the roadway where it is safe and legal to remain stationary. For the purpose of this Term B.4, “Text messaging” means reading from or entering data into any handheld or other electronic device (including, but not limited to, cell phones, navigational tools, laptop computers, or other electronic devices), including for the purpose of Short Message Service (SMS) texting, e-mailing, instant messaging, obtaining navigational information, or engaging in any other form of electronic data retrieval or electronic data communication. The term does not include the use of a cell phone or other electronic device for the limited purpose of entering a telephone number to make an outgoing call or answer an incoming call, unless this practice is prohibited by State or local law. The term also does not include glancing at or listening to a navigational device that is secured in a commercially designed holder affixed to the vehicle, provided that the destination and route are programmed into the device either before driving or while stopped in a location off the roadway where it is safe and legal to remain stationary. For the purpose of this Term B.4, the “Government” includes the United States Government and State, local, and tribal governments at all levels. (b) Workplace Safety. In accordance with Executive Order 13513, Federal Leadership on Reducing Text Messaging While Driving (Oct. 1, 2009) and DOT Order 3902.10, Text Messaging While Driving (Dec. 30, 2009), the Recipient, subrecipients, contractors, and subcontractors are encouraged to: (1) adopt and enforce workplace safety policies to decrease crashes caused by distracted drivers including policies to ban text messaging while driving— (i) Company-owned or -rented vehicles or Government-owned, leased or rented vehicles; or (ii) Privately-owned vehicles when on official Government business or when performing any work for or on behalf of the Government. 45 B-20 (2) Conduct workplace safety initiatives in a manner commensurate with the size of the business, such as— (i) Establishment of new rules and programs or re-evaluation of existing programs to prohibit text messaging while driving; and (ii) Education, awareness, and other outreach to employees about the safety risks associated with texting while driving. (c) Subawards and Contracts. To the extent permitted by law, the Recipient shall insert the substance of this exhibit, including this paragraph (c), in all subawards, contracts, and subcontracts under this award that exceed the micro-purchase threshold, other than contracts and subcontracts for the acquisition of commercially available off-the-shelf items. 46 C-1 EXHIBIT C QUARTERLY PERFORMANCE PROGRESS REPORTS: FORMAT AND CONTENT 1. Purpose. The purpose of the Quarterly Performance Progress Reports under this agreement for the FY 2023 SS4A grant program is to ensure that the project scope, schedule, and budget will be maintained to the maximum extent possible. 2. Format and Content. The Recipient shall produce a quarterly cost, schedule, and status report that contains the sections enumerated in the following list. The first Quarterly Performance Progress Report should include a detailed description of the items funded. (a) Project Information. This section provides the name of the project, the State, the federal agency to which the report is submitted, submission date, award number, name of the recipient, report year and quarter and NOFO funding year. (b) Project Overall Status. This section provides an overall status of the project’s scope, schedule and budget. The Recipient shall note and explain any significant activities and issues, action items and outstanding issues. i. Project Significant Activities and Issues. This section provides highlights of key activities, accomplishments, and issues occurring on the project during the previous quarter. Activities and deliverables to be reported on should include meetings, audits and other reviews, design packages submitted, advertisements, awards, construction submittals, construction completion milestones, submittals related to any applicable BIL or NOFO requirements, media or Congressional inquiries, value engineering/constructability reviews, and other items of significance. ii. Action Items/Outstanding Issues. This section should draw attention to, and track the progress of, highly significant or sensitive issues requiring action and direction to resolve. The Recipient should include administrative items and outstanding issues that could have a significant or adverse effect on the project’s scope, schedule, or budget. Status, responsible person(s), and due dates should be included for each action item/outstanding issue. Action items requiring action or direction should be included in the quarterly status meeting agenda. The action items/outstanding issues may be dropped from this section upon full implementation of the remedial action, and upon no further monitoring anticipated. (c) Milestones. This section documents progress of the milestones outlined in Section 3.2. The Recipient should include the baseline date (when the project is projected to begin) of each milestone, amendments to those dates (if applicable) and the actual/expected date of completion. There are Milestone charts for action plans, supplemental planning activities, demonstration activity projects and implementation (both construction and non-construction) projects. 47 D-1 EXHIBIT D FORM FOR SUBSEQUENT OBLIGATION OF FUNDS The USDOT and [recipient name] entered a grant agreement for the [project name] that was executed by the USDOT on [date of USDOT signature on original agreement] (the “Agreement”). This instrument obligates [$XXX] for [insert portion of project listed in the Agreement]. [Recipient name] states that: (1) the Agreement accurately describe the Project’s activities; (2) for each completion date listed in the Agreement, the Recipient’s estimate for that milestone is not more than six months after the date listed in the Agreement; (3) comparing the Project’s current budget with the amounts listed in the Agreement, the “Non-Federal Funds” amount has not decreased and the total eligible project costs amount has not decreased; and (4) under the terms of article 21 of the General Terms and Conditions, the Recipient is not presently required to request a modification to the Agreement. [Recipient name] acknowledges that USDOT is acting in reliance on the Recipient’s statements above. Date By: Signature of Recipient’s Authorized Representative [insert name] Name [insert title] Title 48 D-2 The USDOT has determined that all applicable Federal requirements for obligating these funds are satisfied. Date By: Signature of USDOT’s Authorized Representative [insert name] Name [insert title] Title 49 1 of 30 U.S. DEPARTMENT OF TRANSPORTATION GENERAL TERMS AND CONDITIONS UNDER THE FISCAL YEAR 2023 SAFE STREETS AND ROADS FOR ALL (“SS4A”) GRANT PROGRAM: FHWA PROJECTS Date: January 4, 2024 50 2 of 30 Table of Contents Article 7 Purpose............................................................................................................................. 6 7.1 Purpose. ......................................................................................................................................... 6 Article 8 USDOT Role.................................................................................................................... 6 8.1 Division of USDOT Responsibilities. ........................................................................................... 6 8.2 USDOT Program Contact. ............................................................................................................ 7 Article 9 Recipient Role.................................................................................................................. 7 9.1 Statements on the Project. ............................................................................................................. 7 9.2 Statements on Authority and Capacity. ......................................................................................... 7 9.3 USDOT Reliance. ......................................................................................................................... 8 9.4 Project Delivery. ........................................................................................................................... 8 9.5 Rights and Powers Affecting the Project. ..................................................................................... 8 9.6 Notification of Changes to Key Personnel. ................................................................................... 9 Article 10 Award Amount, Obligation, and Time Periods ............................................................. 9 10.1 Federal Award Amount ................................................................................................................. 9 10.2 Federal Obligations. ...................................................................................................................... 9 10.3 Budget Period .............................................................................................................................. 10 10.4 Period of Performance. ............................................................................................................... 10 Article 11 Statement of Work, Schedule, and Budget Changes ................................................... 11 11.1 Notification Requirement. ........................................................................................................... 11 11.2 Statement of Work Changes. ...................................................................................................... 11 11.3 Schedule Changes. ...................................................................................................................... 11 11.4 Budget Changes. ......................................................................................................................... 11 11.5 USDOT Acceptance of Changes. ................................................................................................ 12 Article 12 General Reporting Terms............................................................................................. 12 12.1 Report Submission. ..................................................................................................................... 12 12.2 Alternative Reporting Methods. .................................................................................................. 13 12.3 Paperwork Reduction Act Notice. .............................................................................................. 13 Article 13 Progress and Financial Reporting ................................................................................ 13 13.1 Quarterly Performance Progress Reports. ................................................................................... 13 13.2 Quarterly Financial Status. .......................................................................................................... 13 Article 14 Performance Reporting ................................................................................................ 13 14.1 Baseline Performance Measurement. .......................................................................................... 13 14.2 SS4A Final Report: The Recipient shall submit to the USDOT, not later than 120 days after the end of the period of performance, a report in the format specified by FHWA and with the content described in Attachment A that describes, consistent with sections 24112(g)-(h) of BIL: ......................................................................................................................................... 14 Article 15 Noncompliance and Remedies ..................................................................................... 15 15.1 Noncompliance Determinations. ................................................................................................. 15 15.2 Remedies. .................................................................................................................................... 15 15.3 Other Oversight Entities.............................................................................................................. 16 Article 16 Agreement Termination ............................................................................................... 16 16.1 USDOT Termination. ................................................................................................................. 16 16.2 Closeout Termination. ................................................................................................................. 17 16.3 Post-Termination Adjustments. .................................................................................................. 17 16.4 Non-Terminating Events. ............................................................................................................ 17 16.5 Other Remedies. .......................................................................................................................... 17 Article 17 Monitoring, Financial Management, Controls, and Records ....................................... 18 17.1 Recipient Monitoring and Record Retention. ............................................................................. 18 51 3 of 30 17.2 Financial Records and Audits. .................................................................................................... 18 17.3 Internal Controls. ........................................................................................................................ 18 17.4 USDOT Record Access. ............................................................................................................. 19 Article 18 Contracting and Subawards ......................................................................................... 19 18.1 Build America, Buy America. This award term implements § 70914(a) of the Build America, Buy America Act, Pub. L. No. 117-58, div. G, tit. IX, subtitle A, 135 Stat. 429, 1294 (2021) and Office of Management and Budget (OMB) Memorandum M-22-11, “Initial Implementation Guidance on Application of Buy America Preference in Federal Financial Assistance Programs for Infrastructure.” ................................................................................ 19 18.2 Small and Disadvantaged Business Requirements. .................................................................... 21 18.3 Engineering and Design Services. .............................................................................................. 21 18.4 Foreign Market Restrictions........................................................................................................ 21 18.5 Prohibition on Certain Telecommunications and Video Surveillance Services or Equipment. .. 21 18.6 Recipient Responsibilities for Subawards. .................................................................................. 22 18.7 Subaward and Contract Authorization. ....................................................................................... 22 Article 19 Costs, Payments, and Unexpended Funds ................................................................... 22 19.1 Limitation of Federal Award Amount. ....................................................................................... 22 19.2 Projects Costs. ............................................................................................................................. 22 19.3 Timing of Project Costs. ............................................................................................................. 22 19.4 Recipient Recovery of Federal Funds. ........................................................................................ 22 19.5 Unexpended Federal Funds. ........................................................................................................ 22 19.6 Timing of Payments to the Recipient. When reimbursement is used, the Recipient shall not request reimbursement of a cost before the Recipient has entered an obligation for that cost. ................................................................................................................................................ 23 19.7 Payment Method. The USDOT may deny a payment request that is not submitted using the method identified in section 5.2.............................................................................................. 23 19.8 Information Supporting Expenditures ......................................................................................... 23 19.9 Reimbursement Frequency. ........................................................................................................ 23 19.10 Match. ......................................................................................................................................... 23 Article 20 Liquidation, Adjustments, and Funds Availability ...................................................... 23 20.1 Liquidation of Recipient Obligations. ......................................................................................... 23 Article 21 Agreement Modifications ............................................................................................ 24 21.1 Bilateral Amendments................................................................................................................. 24 21.2 Unilateral Contact Modifications. ............................................................................................... 24 21.3 USDOT Unilateral Modifications. .............................................................................................. 24 21.4 Other Modifications. ................................................................................................................... 24 Article 22 Climate Change and Environmental Justice ................................................................ 24 22.1 Climate Change and Environmental Justice. .............................................................................. 24 Article 23 Racial Equity and Barriers to Opportunity .................................................................. 24 23.1 Racial Equity and Barriers to Opportunity.................................................................................. 24 Article 24 Federal Financial Assistance, Administrative, and National Policy Requirements .... 25 24.1 Uniform Administrative Requirements for Federal Awards. ...................................................... 25 24.2 Federal Law and Public Policy Requirements. ........................................................................... 25 24.3 Federal Freedom of Information Act. ......................................................................................... 25 24.4 History of Performance. .............................................................................................................. 25 24.5 Whistleblower Protection. ........................................................................................................... 25 24.6 External Award Terms and Obligations. ..................................................................................... 25 24.7 Incorporated Certifications. ........................................................................................................ 26 Article 25 Assignment .................................................................................................................. 26 25.1 Assignment Prohibited. ............................................................................................................... 26 52 4 of 30 Article 26 Waiver .......................................................................................................................... 26 26.1 Waivers. ...................................................................................................................................... 26 Article 27 Additional Terms and Conditions ................................................................................ 27 27.1 Effect of Planning and Demonstration or Implementation Award. ............................................ 27 27.2 Disclaimer of Federal Liability. .................................................................................................. 27 27.3 Environmental Review ................................................................................................................ 27 27.4 Railroad Coordination. If the agreement includes one or more milestones identified as a “Railroad Coordination Agreement,” then for each of those milestones, the Recipient shall enter a standard written railroad coordination agreement, consistent with 23 C.F.R. 646.216(d), no later than the deadline date identified for that milestone, with the identified railroad for work and operation within that railroad’s right-of-way....................................... 28 27.5 Relocation and Real Property Acquisition. ................................................................................. 28 27.6 Equipment Disposition. ............................................................................................................... 29 Article 28 Mandatory Award Information .................................................................................... 29 28.1 Information Contained in a Federal Award. ............................................................................... 29 Article 29 Construction and Definitions ....................................................................................... 29 29.1 Attachments. ............................................................................................................................... 29 29.2 Exhibits. ...................................................................................................................................... 29 29.3 Construction. ............................................................................................................................... 30 29.4 Integration. .................................................................................................................................. 30 29.5 Definitions. .................................................................................................................................. 30 Article 30 Agreement Execution and Effective Date ................................................................... 30 30.1 Counterparts. ............................................................................................................................... 30 30.2 Effective Date. ............................................................................................................................ 30 53 5 of 30 Index of Definitions Administering Operating Administration ....................................................................................... 7 Environmental Review Entity…………………………………………………………………....25 Federal Share ................................................................................................................................ 11 FHWA ............................................................................................................................................. 7 NOFO .............................................................................................................................................. 6 OMB ............................................................................................................................................. 11 Program Statute ............................................................................................................................. 28 Project……………………………………………………………………………………………19 Project Closeout ............................................................................................................................ 16 SS4A Grant ................................................................................................................................... 28 USDOT ........................................................................................................................................... 6 54 6 of 30 GENERAL TERMS AND CONDITIONS The Infrastructure Investment and Jobs Act (Pub. L. 117–58, November 15, 2021; also referred to as the “Bipartisan Infrastructure Law” or “BIL”) established the Safe Streets and Roads for All (the “SS4A”) Discretionary Grant Program (BIL Section 24112) and appropriated funds to the United States Department of Transportation (the “USDOT”) under Division J, Title VIII of BIL to implement the program. The funds are available to provide Federal financial assistance to support local initiatives to prevent death and serious injury on roads and streets, commonly referred to as “Vision Zero” or “Toward Zero Deaths” initiatives. The USDOT published a Notice of Funding Opportunity (the “NOFO”) to solicit applications for Federal financial assistance in Fiscal Year 2023 for the SS4A Discretionary Grant Program (88 Fed. Reg. 22090, April 12, 2023). These general terms and conditions are incorporated by reference in a project-specific grant agreement under the fiscal year 2023 SS4A grant program. Articles 1–6 are in the project- specific portion of the agreement. The term “Recipient” is defined in the project-specific portion of the agreement. Attachments A through F are project-specific attachments. ARTICLE 7 PURPOSE 7.1 Purpose. The purpose of this award is to improve roadway safety by significantly reducing or eliminating roadway fatalities and serious injuries through safety action plan development or projects focused on all users, including pedestrians, bicyclists, public transportation users, motorists, personal conveyance and micromobility users, and commercial vehicle operators. The parties will accomplish that purpose by achieving the following objectives: (1) timely completing the Project; and (2) ensuring that this award does not substitute for non-Federal investment in the Project, except as proposed in the Grant Application, as modified by section 3.3 and Attachment B. ARTICLE 8 USDOT ROLE 8.1 Division of USDOT Responsibilities. (a) The Office of the Secretary of Transportation is ultimately responsible for the USDOT’s administration of the SS4A Grant Program. 55 7 of 30 (b) The Federal Highway Administration (the “FHWA”) will administer this grant agreement on behalf of the USDOT. In this agreement, the “Administering Operating Administration” means the FHWA. 8.2 USDOT Program Contact. Safe Streets and Roads for All Federal Highway Administration Office of Safety 1200 New Jersey Avenue SE HSSA-1, Mail Drop E71-117 Washington, DC 20590 SS4A.FHWA@dot.gov (202) 366-2822 ARTICLE 9 RECIPIENT ROLE 9.1 Statements on the Project. The Recipient states that: (1) all material statements of fact in the Grant Application were accurate when that application was submitted; and (2) Attachment B documents all material changes in the information contained in that application. 9.2 Statements on Authority and Capacity. The Recipient states that: (1) it has the authority to receive Federal financial assistance under this agreement; (2) it has the legal authority to complete the Project, including either ownership and/or maintenance responsibilities over a roadway network; safety responsibilities that affect roadways; or has an agreement from the agency that has ownership and/or maintenance responsibilities for the roadway within the applicant’s jurisdiction; if applicable; (3) it has the capacity, including institutional, managerial, and financial capacity, to comply with its obligations under this agreement; (4) not less than the difference between the “Total Eligible Project Cost” and the “SS4A Grant Amount” listed in section 3.3 are committed to fund the Project; (5) it has sufficient funds available, or an agreement with the agency that has ownership and/or maintenance responsibilities for the roadway within the 56 8 of 30 recipient’s jurisdiction, to ensure that infrastructure completed or improved under this agreement will be operated and maintained in compliance with this agreement and applicable Federal law; and (6) the individual executing this agreement on behalf of the Recipient has authority to enter this agreement and make the statements in this article 9 and in section 24.7 on behalf of the Recipient. 9.3 USDOT Reliance. The Recipient acknowledges that: (1) the USDOT relied on statements of fact in the Grant Application to select the Project to receive this award; (2) the USDOT relied on statements of fact in both the Grant Application and this agreement to determine that the Recipient and the Project are eligible under the terms of the NOFO; (3) the USDOT relied on statements of fact in both the Grant Application and this agreement to establish the terms of this agreement; and (4) the USDOT’s selection of the Project to receive this award prevented awards under the NOFO to other eligible applicants. 9.4 Project Delivery. (a) The Recipient shall complete the Project under the terms of this agreement. (b) The Recipient shall ensure that the Project is financed, constructed, operated, and maintained in accordance with all applicable Federal laws, regulations, and policies. (c) The Recipient shall provide any certifications or assurances deemed necessary by the USDOT in ensuring the Recipient’s compliance with all applicable laws, regulations, and policies. (d) The Recipient shall provide access to records as provided at 2 C.F.R. 200.337. 9.5 Rights and Powers Affecting the Project. (a) The Recipient shall not take or permit any action that deprives it of any rights or powers necessary to the Recipient’s performance under this agreement without written approval of the USDOT. (b) The Recipient shall act, in a manner acceptable to the USDOT, promptly to acquire, extinguish, or modify any outstanding rights or claims of right of others that would interfere with the Recipient’s performance under this agreement. 57 9 of 30 9.6 Notification of Changes to Key Personnel. The Recipient shall notify all USDOT representatives who are identified in Section 4.3 in writing within 30 calendar days of any change in key personnel who are identified in Section 4.2. ARTICLE 10 AWARD AMOUNT, OBLIGATION, AND TIME PERIODS 10.1 Federal Award Amount The USDOT hereby awards a SS4A Grant to the Recipient in the amount listed in section 2.2 as the SS4A Grant Amount. 10.2 Federal Obligations. This agreement obligates funds for the period of performance listed on Page 1, Block 6 of the grant agreement. (a) If the Federal Obligation Type identified in section 2.3 is “Single,” then the project-specific agreement obligates for the budget period the amount listed in section 2.2. as the Grant Amount and sections 10.2 (c)–10.2(f) do not apply to the project specific agreement. (b) If the Federal Obligation Type identified in section 2.3 is “Multiple,” (for phased agreements) then an amount up to the Grant Amount listed in section 2.2 will be obligated with one initial obligation and one or more subsequent, optional obligations, as described in sections 10.2(c)–10.2(f). (c) The Obligation Condition Table in section 2.3 allocates the Grant funds among separate phases of the Project for the purpose of the Federal obligation of funds. The scope of each phase of the Project that is identified in that table is described in section 2.3. (d) The project-specific agreement obligates for the budget period only the amounts allocated in the Obligation Condition Table in section 2.3 to portions of the Project for which that table does not list an obligation condition. (e) The project-specific agreement does not obligate amounts allocated in the Obligation Condition Table in section 2.3 to portions of the Project for which that table lists an obligation condition. The parties may obligate the amounts allocated to those portions of the Project only by modifying the project specific agreement under section 21. (f) For each portion of the Project for which the Obligation Condition Table in section 2.3 lists an obligation condition, the amount allocated in that table to that portion of the Project will be obligated if the condition is met not later than the date listed in Section 2.4 of the project-specific agreement. 58 10 of 30 (g) For any portion of the Project for which the Obligation Condition Table in section 2.3 lists an obligation condition, if the obligation condition is satisfied, the parties amend this agreement documenting that: (1) the FHWA determines that the obligation condition listed in that table for that portion of the Project is satisfied; and (2) the FHWA determines that all applicable Federal requirements for obligating the amount are satisfied. (h) The Recipient shall not request reimbursement of costs for a portion of the Project for which the Obligation Condition Table in section 2.3 lists an obligation condition, unless the amount allocated in that table to that portion of the Project is obligated under section 10.2(c)-(f). (i) Reserved. (j) The Recipient acknowledges that: (1) the FHWA is not liable for payments for a portion of the Project for which the Obligation Condition Table in section 2.3 lists an obligation condition, unless the amount allocated in that table to that portion of the Project is obligated under section 10.2(c)-(f); (2) any portion of the Grant that is not obligated under this section 10.2 by the budget period end date identified in the project-specific agreement for those funds lapses on the day after that date and becomes unavailable for the Project; and (3) the FHWA may consider the failure to obligate funds by the budget period end date identified in the project-specific agreement as applicable to the Grant Program for those funds to be a basis for terminating the project-specific agreement under section 16. 10.3 Budget Period The budget period for this award begins on the effective date of this agreement and ends on the budget period end date that is listed in section 2.4, which shall be no later than 5 years from the date of grant execution. In this agreement, “budget period” is used as defined at 2 C.F.R. 200.1. 10.4 Period of Performance. (a) The period of performance for this award begins on the effective date of award listed in page 1 item 2 and ends on the period of performance end date that is listed in Page 1, Block 6. (b) In this agreement, “period of performance” is used as defined at 2 C.F.R. 200.1. 59 11 of 30 ARTICLE 11 STATEMENT OF WORK, SCHEDULE, AND BUDGET CHANGES 11.1 Notification Requirement. The Recipient shall notify all USDOT representatives who are identified in section 4.4 in writing within 30 calendar days of any change in circumstances or commitments that adversely affect the Recipient’s plan to complete the Project. In that notification, the Recipient shall describe the change and what actions the Recipient has taken or plans to take to ensure completion of the Project. This notification requirement under this section 11.1 is separate from any requirements under this article 11 that the Recipient request amendment of this agreement. 11.2 Statement of Work Changes. If the Project’s activities differ from the statement of work that is described in section 3.1 and Attachment B, then the Recipient shall request an amendment of this agreement to update section 3.1. 11.3 Schedule Changes. If one or more of the following conditions are satisfied, then the Recipient shall request an amendment of this agreement to update the relevant dates: (1) a substantial completion date for the Project or a component of the Project that is listed in section 3.2 and the Recipient’s estimate for that milestone changes to a date that is more than six months after the date listed in section 3.2; or (2) a schedule change would require the period of performance to continue after the period of performance end date listed on Page 1, Block 6. For other schedule changes, the Recipient shall request an amendment of this agreement unless the USDOT has consented, in writing consistent with applicable requirements, to the change. 11.4 Budget Changes. (a) The Recipient acknowledges that if the cost of completing the Project increases: (1) that increase does not affect the Recipient’s obligation under this agreement to complete the Project; and (2) the USDOT will not increase the amount of this award to address any funding shortfall. (b) The Recipient shall request an amendment of this agreement to update section 3.3 and Attachment B if, in comparing the Project’s budget to the amounts listed in section 3.3: (1) the “Non-Federal Funds” amount decreases; or (2) the “Total Eligible Project Cost” amount decreases. 60 12 of 30 (c) For budget changes that are not identified in section 11.4(b), the Recipient shall request an amendment of this agreement to update section 3.3 and Attachment B unless the USDOT has consented, in writing consistent with applicable requirements, to the change. (d) If the actual eligible project costs are less than the “Total Eligible Project Cost” that is listed in section 3.3, then the Recipient may propose to the USDOT, in writing consistent with applicable requirements, specific additional activities that are within the scope of this award, as defined in sections 7.1 and 3.1, and that the Recipient could complete with the difference between the “Total Eligible Project Cost” that is listed in section 3.3 and the actual eligible project costs. (e) If the actual eligible project costs are less than the “Total Eligible Project Cost” that is listed in section 3.3 and either the Recipient does not make a proposal under section 11.4(d) or the USDOT does not accept the Recipient’s proposal under section 11.4(d), then: (1) in a request under section 11.4(b), the Recipient shall reduce the Federal Share by the difference between the “Total Eligible Project Cost” that is listed in section 3.3 and the actual eligible project costs; and (2) if that amendment reduces this award and the USDOT had reimbursed costs exceeding the revised award, the Recipient shall request to add additional project work that is within the scope of this project. In this agreement, “Federal Share” means the sum of the “SS4A Grant Amount” and the “Other Federal Funds” amounts that are listed in section 3.3(a). (f) The Recipient acknowledges that amounts that are required to be refunded under section 11.4(e)(2) constitute a debt to the Federal Government that the USDOT may collect under 2 C.F.R. 200.346 and the Federal Claims Collection Standards (31 C.F.R. parts 900–999). 11.5 USDOT Acceptance of Changes. The USDOT may accept or reject amendments requested under this article 11, and in doing so may elect to consider only the interests of the SS4A grant program and the USDOT. The Recipient acknowledges that requesting an amendment under this article 11 does not amend, modify, or supplement this agreement unless the USDOT accepts that amendment request and the parties modify this agreement under section 21.1. ARTICLE 12 GENERAL REPORTING TERMS 12.1 Report Submission. The Recipient shall send all reports required by this agreement to all USDOT contacts who are listed in section 4.4. Reports will be added to a central repository maintained by FHWA. 61 13 of 30 12.2 Alternative Reporting Methods. FHWA may establish processes for the Recipient to submit reports required by this agreement, including electronic submission processes. If the Recipient is notified of those processes in writing, the Recipient shall use the processes required by the FHWA. 12.3 Paperwork Reduction Act Notice. Under 5 C.F.R. 1320.6, the Recipient is not required to respond to a collection of information that does not display a currently valid control number issued by the Office of Management and Budget (the “OMB”). Collections of information conducted under this agreement are approved under OMB Control No. 2125-0675. ARTICLE 13 PROGRESS AND FINANCIAL REPORTING 13.1 Quarterly Performance Progress Reports. Quarterly, on or before the 20th day of the first month of each calendar year (e.g., reports due on or before January 20th, April 20th, July 20th, and October 20th) and until the end of the period of performance, the Recipient shall submit to the USDOT a Quarterly Performance Progress Report in the format and with the content described in Exhibit C. If the date of this agreement is in the final month of a calendar year, then the Recipient shall submit the first Quarterly Performance Progress Report in the second calendar year that begins after the date of this agreement. 13.2 Quarterly Financial Status. Quarterly, on or before the 20th day of the first month of each calendar year (e.g., reports due on or before January 20th, April 20th, July 20th, and October 20th) and until the end of the period of performance, the Recipient shall submit a Federal Financial Report using SF-425. ARTICLE 14 PERFORMANCE REPORTING 14.1 Baseline Performance Measurement. Recipients of Implementation Grants or Planning and Demonstration Grants with demonstration activities shall: (1) collect data for each performance measure that is identified in the Performance Measure Table in Attachment A, accurate as of the Baseline Measurement Date that is identified in Attachment A; and (2) on or before the Baseline Report Date that is stated in Attachment A, the Recipient shall submit a Baseline Performance Measurement Report that contains the data collected under this section 14.1 and a detailed description of the data sources, assumptions, variability, and estimated levels of precision for each performance measure that is identified in the Performance Measure Table in Attachment A. 62 14 of 30 14.2 SS4A Final Report: The Recipient shall submit to the USDOT, not later than 120 days after the end of the period of performance, a report in the format specified by FHWA and with the content described in Attachment A that describes, consistent with sections 24112(g)-(h) of BIL: (1) the costs of each eligible project and strategy carried out using the grant; (2) the roadway safety outcomes and any additional benefits (e.g., increased walking, biking, or transit use without a commensurate increase in serious and fatal crashes, etc.) that each such project and strategy has generated, as— • identified in the grant application; and • measured by data to the maximum extent practicable; (3) the percent of funds spent in, and providing benefits to, underserved communities; and (4) the lessons learned, and any recommendations related to future projects or strategies to prevent death and serious injuries on roads and streets. 14.3 Performance Measurement Information. For each performance measure identified to be submitted annually in the Performance Measure Table in Attachment A, not later than January 31 of each year, the Recipient shall submit to the USDOT a Performance Measurement Report containing the data collected in the previous calendar year and stating the dates when the data was collected. 14.4 Performance Reporting Survival. The data collection and reporting requirements in this article 14 survive the termination of this agreement which is three years post period of performance. 14.5 Program Evaluation. As a condition of grant award, the recipient may be required to participate in an evaluation undertaken by USDOT, or another agency or partner. The evaluation may take different forms such as an implementation assessment across grant recipients, an impact and/or outcomes analysis of all or selected sites within or across grant recipients, before/after photographs of the sites, qualitative activities such as videos describing the project and its impact on the community, or a benefit/cost analysis or assessment of return on investment. The Department may require applicants to collect data elements to aid the evaluation. As a part of the evaluation, as a condition of award, grant recipients must agree to: (1) make records available to the evaluation contractor; (2) provide access to program records, and any other relevant documents to calculate costs and benefits; (3) in the case of an impact analysis, facilitate the access to relevant information as requested; and (4) follow evaluation procedures as specified by the evaluation contractor or USDOT staff. 63 15 of 30 ARTICLE 15 NONCOMPLIANCE AND REMEDIES 15.1 Noncompliance Determinations. (a) If the USDOT determines that the Recipient may have failed to comply with the United States Constitution, Federal law, or the terms and conditions of this agreement, the USDOT may notify the Recipient of a proposed determination of noncompliance. For the notice to be effective, it must be written and the USDOT must include an explanation of the nature of the noncompliance, describe a remedy, state whether that remedy is proposed or effective at an already determined date, and describe the process through and form in which the Recipient may respond to the notice. (b) If the USDOT notifies the Recipient of a proposed determination of noncompliance under section 15.1(a), the Recipient may, not later than 7 calendar days after the notice, respond to that notice in the form and through the process described in that notice. In its response, the Recipient may: (1) accept the remedy; (2) acknowledge the noncompliance, but propose an alternative remedy; or (3) dispute the noncompliance. To dispute the noncompliance, the Recipient must include in its response documentation or other information supporting the Recipient’s compliance. (c) The USDOT may make a final determination of noncompliance only: (1) after considering the Recipient’s response under section 15.1(b); or (2) if the Recipient fails to respond under section 15.1(b), after the time for that response has passed. (d) To make a final determination of noncompliance, the USDOT must provide a notice to the Recipient that states the basis for that determination. 15.2 Remedies. (a) If the USDOT makes a final determination of noncompliance under section 15.1(d), the USDOT may impose a remedy, including: (1) additional conditions on the award; (2) any remedy permitted under 2 C.F.R. 200.339–200.340, including withholding of payments; disallowance of previously reimbursed costs, requiring refunds from the Recipient to USDOT; suspension or termination of the award; or suspension and disbarment under 2 C.F.R. part 180; or 64 16 of 30 (3) any other remedy legally available. (b) To impose a remedy, the USDOT must provide a written notice to the Recipient that describes the remedy, but the USDOT may make the remedy effective before the Recipient receives that notice. (c) If the USDOT determines that it is in the public interest, the USDOT may impose a remedy, including all remedies described in section 15.2(a), before making a final determination of noncompliance under section 15.1(d). If it does so, then the notice provided under section 15.1(d) must also state whether the remedy imposed will continue, be rescinded, or modified. (d) In imposing a remedy under this section 15.2 or making a public interest determination under section 15.2(c), the USDOT may elect to consider the interests of only the USDOT. (e) The Recipient acknowledges that amounts that the USDOT requires the Recipient to refund to the USDOT due to a remedy under this section 15.2 constitute a debt to the Federal Government that the USDOT may collect under 2 C.F.R. 200.346 and the Federal Claims Collection Standards (31 C.F.R. parts 900–999). 15.3 Other Oversight Entities. Nothing in this article 15 limits any party’s authority to report activity under this agreement to the United States Department of Transportation Inspector General or other appropriate oversight entities. ARTICLE 16 AGREEMENT TERMINATION 16.1 USDOT Termination. (a) The USDOT may terminate this agreement and all its obligations under this agreement if any of the following occurs: (1) the Recipient fails to obtain or provide any non-SS4A Grant contribution (all eligible project costs other than the SS4A Grant Amount, as described in section 3.3(a) of the grant agreement) or alternatives approved by the USDOT as provided in this agreement and consistent with article 3; (2) a construction start date for the project or strategy is listed in section 3.2 and the Recipient fails to meet that milestone by six months after the date listed in section 3.2; 65 17 of 30 (3) a substantial completion date for the project or strategy is listed in section 3.2 and the Recipient fails to meet that milestone by six months after the date listed in section 3.2; (4) the Recipient fails to comply with the terms and conditions of this agreement, including a material failure to comply with the schedule in section 3.2 even if it is beyond the reasonable control of the Recipient; or, (5) the USDOT determines that termination of this agreement is in the public interest. (6) the Recipient fails to expend the funds within 5 years after the date on which the government executes the grant agreement, which is the date funds are provided for the project. (b) In terminating this agreement under this section, the USDOT may elect to consider only the interests of the USDOT. (c) This section 16.1 does not limit the USDOT’s ability to terminate this agreement as a remedy under section 15.2. (d) The Recipient may request that the USDOT terminate the agreement under this section 16.1. 16.2 Closeout Termination. (a) This agreement terminates on Project Closeout. (b) In this agreement, “Project Closeout” means the date that the USDOT notifies the Recipient that the award is closed out. Under 2 C.F.R. 200.344, Project Closeout should occur no later than one year after the end of the period of performance. 16.3 Post-Termination Adjustments. The Recipient acknowledges that under 2 C.F.R. 200.345–200.346, termination of the agreement does not extinguish the USDOT’s authority to disallow costs, including costs that USDOT reimbursed before termination, and recover funds from the Recipient. 16.4 Non-Terminating Events. (a) The end of the period of performance described under section 10.4 does not terminate this agreement or the Recipient’s obligations under this agreement. (b) The liquidation of funds under section 20.1 does not terminate this agreement or the Recipient’s obligations under this agreement. 16.5 Other Remedies. The termination authority under this article 16 supplements and does not limit the USDOT’s remedial authority under article 15 or 2 C.F.R. part 200, including 2 C.F.R. 200.339–200.340. 66 18 of 30 ARTICLE 17 MONITORING, FINANCIAL MANAGEMENT, CONTROLS, AND RECORDS 17.1 Recipient Monitoring and Record Retention. (a) The Recipient shall monitor activities under this award, including activities under subawards and contracts, to ensure: (1) that those activities comply with this agreement; and (2) that funds provided under this award are not expended on costs that are not allowable under this award or not allocable to this award. (b) If the Recipient makes a subaward under this award, the Recipient shall monitor the activities of the subrecipient in compliance with 2 C.F.R. 200.332(d). (c) The Recipient shall retain records relevant to the award as required under 2 C.F.R. 200.334. 17.2 Financial Records and Audits. (a) The Recipient shall keep all project accounts and records that fully disclose the amount and disposition by the Recipient of the award funds, the total cost of the project, and the amount or nature of that portion of the cost of the project supplied by other sources, and any other financial records related to the project. (b) The Recipient shall keep accounts and records described under section 17.2(a) in accordance with a financial management system that meets the requirements of 2 C.F.R. 200.301–200.303, 2 C.F.R. part 200, subpart F, and title 23, United States Code, and will facilitate an effective audit in accordance with 31 U.S.C. 7501–7506. (c) The Recipient shall separately identify expenditures under the fiscal year 2023 SS4A grants program in financial records required for audits under 31 U.S.C. 7501–7506. Specifically, the Recipient shall: (1) list expenditures under that program separately on the schedule of expenditures of Federal awards required under 2 C.F.R. part 200, subpart F, including “FY 2023” in the program name; and (2) list expenditures under that program on a separate row under Part II, Item 1 (“Federal Awards Expended During Fiscal Period”) of Form SF-SAC, including “FY 2023” in column c (“Additional Award Identification”). 17.3 Internal Controls. The Recipient shall establish and maintain internal controls as required under 2 C.F.R. 200.303. 67 19 of 30 17.4 USDOT Record Access. The USDOT may access Recipient records related to this award under 2 C.F.R. 200.337. ARTICLE 18 CONTRACTING AND SUBAWARDS 18.1 Build America, Buy America. This award term implements § 70914(a) of the Build America, Buy America Act, Pub. L. No. 117-58, div. G, tit. IX, subtitle A, 135 Stat. 429, 1294 (2021) and Office of Management and Budget (OMB) Memorandum M-22-11, “Initial Implementation Guidance on Application of Buy America Preference in Federal Financial Assistance Programs for Infrastructure.” Requirement to Use Iron, Steel, Manufactured Products, and Construction Materials Produced in the United States. The Recipient shall not use funds provided under this award for a project for infrastructure unless: (1) all iron and steel used in the project are produced in the United States—this means all manufacturing processes, from the initial melting stage through the application of coatings, occurred in the United States; (2) all manufactured products used in the project are produced in the United States—this means the manufactured product was manufactured in the United States; and the cost of the components of the manufactured product that are mined, produced, or manufactured in the United States is greater than 55 percent of the total cost of all components of the manufactured product; and (3) all construction materials are manufactured in the United States—this means that all manufacturing processes for the construction material occurred in the United States. Inapplicability. The domestic content procurement preference in this award term only applies to articles, materials, and supplies that are consumed in, incorporated into, or affixed to an infrastructure project. As such, it does not apply to tools, equipment, and supplies, such as temporary scaffolding, brought to the construction site and removed at or before the completion of the infrastructure project. Nor does a Buy America preference apply to equipment and furnishings, such as movable chairs, desks, and portable computer equipment, that are used at or within the finished infrastructure project but are not an integral part of the structure or permanently affixed to the infrastructure project. Waivers. 68 20 of 30 When necessary, the Recipient may apply for, and the USDOT may grant, a waiver from the domestic content procurement preference in this award term. A request to waive the application of the domestic content procurement preference must be in writing. The USDOT will provide instructions on the waiver process and on the format, contents, and supporting materials required for any waiver request. Waiver requests are subject to public comment periods of no less than 15 days and must be reviewed by the Office of Management and Budget (OMB) Made in America Office. When the USDOT has made a determination that one of the following exceptions applies, the awarding official may waive the application of the domestic content procurement preference in any case in which the USDOT determines that: (1) applying the domestic content procurement preference would be inconsistent with the public interest; (2) the types of iron, steel, manufactured products, or construction materials are not produced in the United States in sufficient and reasonably available quantities or of a satisfactory quality; or (3) the inclusion of iron, steel, manufactured products, or construction materials produced in the United States will increase the cost of the overall project by more than 25 percent. There may be instances where an award qualifies, in whole or in part, for an existing waiver described at https://www.transportation.gov/office-policy/transportation-policy/made-in-america. Definitions “Construction materials” includes an article, material, or supply—other than an item of primarily iron or steel; a manufactured product; cement and cementitious materials; aggregates such as stone, sand, or gravel; or aggregate binding agents or additives—that is or consists primarily of: • non-ferrous metals; • plastic and polymer-based products (including polyvinylchloride, composite building materials, and polymers used in fiber optic cables); • glass (including optic glass); • lumber; or • drywall. “Domestic content procurement preference” means all iron and steel used in the project are produced in the United States; the manufactured products used in the project are produced in the United States; or the construction materials used in the project are produced in the United States. “Primarily iron or steel” means that the cost of the iron and steel content in the article, material, or supply exceeds 50 percent of the total cost of all its components. The cost of iron and steel is the cost of the iron or steel mill products (such as bar, billet, slab, wire, plate, or sheet), castings, or forgings utilized in the manufacture of the product and a good faith estimate of the cost of iron 69 21 of 30 or steel components. The origin of the elements of the iron or steel is not relevant to the determination of whether it is domestic or foreign. “Project” means the development of a safety action plan (including supplemental and topical plans) or the temporary or permanent construction, alteration, maintenance, or repair of infrastructure in the United States. (a) Construction materials used in the Project are subject to the domestic preference requirement at § 70914 of the Build America, Buy America Act, Pub. L. No. 117-58, div. G, tit. IX, subtitle A, 135 Stat. 429, 1294 (2021), as implemented by OMB, USDOT, and FHWA. The Recipient acknowledges that this agreement is neither a waiver of § 70914(a) nor a finding under § 70914(b). (b) Under 2 C.F.R. 200.322, as appropriate and to the extent consistent with law, the Recipient should, to the greatest extent practicable under this award, provide a preference for the purchase, acquisition, or use of goods, products, or materials produced in the United States. The Recipient shall include the requirements of 2 C.F.R. 200.322 in all subawards including all contracts and purchase orders for work or products under this award. 18.2 Small and Disadvantaged Business Requirements. The Recipient shall expend all funds under this award in compliance with the requirements at 2 C.F.R. 200.321 (“Contracting with small and minority businesses, women’s business enterprises, and labor surplus area firms”). 18.3 Engineering and Design Services. The Recipient shall award each contract or sub- contract for program management, construction management, planning studies, feasibility studies, architectural services, preliminary engineering, design, engineering, surveying, mapping, or related services with respect to the project in the same manner that a contract for architectural and engineering services is negotiated under 2 C.F.R. 200.320 or an equivalent qualifications-based requirement prescribed for or by the Recipient. 18.4 Foreign Market Restrictions. The Recipient shall not allow funds provided under this award to be used to fund the use of any product or service of a foreign country during the period in which such foreign country is listed by the United States Trade Representative as denying fair and equitable market opportunities for products and suppliers of the United States in procurement and construction. 18.5 Prohibition on Certain Telecommunications and Video Surveillance Services or Equipment. The Recipient acknowledges that Section 889 of Pub. L. No. 115-232, 2 C.F.R. 200.216 and 2 C.F.R. 200.471 prohibit the Recipient and all subrecipients from procuring or obtaining certain telecommunications and video surveillance services or equipment under this award. 70 22 of 30 18.6 Recipient Responsibilities for Subawards. If the Recipient makes a subaward under this award, the Recipient shall comply with the requirements on pass-through entities under 2 C.F.R. parts 200 and 1201, including 2 C.F.R. 200.331–200.333. 18.7 Subaward and Contract Authorization. If the USDOT Office for Subaward and Contract Authorization identified in section 5.1 is “FHWA Office of Acquisition and Grants Management,” then the Recipient shall obtain prior written approval from the USDOT agreement officer for the subaward or contracting out of any new work under this agreement for non-construction awards. This provision is in accordance with 2 CFR 200.308(c)(6) and does not apply to the acquisition of supplies, material, equipment or general support services. ARTICLE 19 COSTS, PAYMENTS, AND UNEXPENDED FUNDS 19.1 Limitation of Federal Award Amount. Under this award, the USDOT shall not provide funding greater than the amount obligated on the SS4A Grant cover page, Item 11, Federal Funds Obligated. The Recipient acknowledges that USDOT is not liable for payments exceeding that amount, and the Recipient shall not request reimbursement of costs exceeding that amount. 19.2 Projects Costs. This award is subject to the cost principles at 2 C.F.R. part 200 subpart E, including provisions on determining allocable costs and determining allowable costs. 19.3 Timing of Project Costs. (a) The Recipient shall not charge to this award costs that are incurred after the period of performance. (b) The Recipient shall not charge to this award costs that were incurred before the effective date of award of this agreement, unless there has been an approval of pre-award costs under 2 C.F.R. 200.458. 19.4 Recipient Recovery of Federal Funds. The Recipient shall make all reasonable efforts, including initiating litigation, if necessary, to recover Federal funds if the USDOT determines, after consultation with the Recipient, that those funds have been spent fraudulently, wastefully, or in violation of Federal laws, or misused in any manner under this award. The Recipient shall not enter a settlement or other final position, in court or otherwise, involving the recovery of funds under the award unless approved in advance in writing by the USDOT. 19.5 Unexpended Federal Funds. Any Federal funds that are awarded at section 10.1 but not expended on allocable, allowable costs remain the property of the United States. 71 23 of 30 19.6 Timing of Payments to the Recipient. When reimbursement is used, the Recipient shall not request reimbursement of a cost before the Recipient has entered an obligation for that cost. 19.7 Payment Method. The USDOT may deny a payment request that is not submitted using the method identified in section 5.2. 19.8 Information Supporting Expenditures (a) If the USDOT Payment System identified in section 5.2 is “DELPHI iSupplier,” then when requesting reimbursement of costs incurred or credit for cost share incurred, the Recipient shall electronically submit the SF-270 (Request for Advance or Reimbursement) or SF-271 (Outlay Report and Request for Reimbursement for Construction Programs), shall identify the Federal share and the Recipient’s share of costs, and shall submit supporting cost detail to clearly document all costs incurred. As supporting cost detail, the Recipient shall include a detailed breakout of all costs incurred, including direct labor, indirect costs, other direct costs, and travel. (b) If the Recipient submits a request for reimbursement that the USDOT determines does not include or is not supported by sufficient detail, the USDOT may deny the request or withhold processing the request until the Recipient provides sufficient detail. 19.9 Reimbursement Frequency. If the USDOT Payment System identified in section 5.2 is “DELPHI iSupplier,” then the Recipient shall not request reimbursement more frequently than monthly. 19.10 Match. The recipient should show on each request for reimbursement that at least 20 percent of the incurred costs will count towards match. If the recipient intends to vary the match percentage over the life of the project, it must communicate its plan to USDOT. The recipient is responsible for tracking match according to the plan. At the completion of the grant award, the cost share requirement must be met, and Federal funds must not exceed the project's Federal share. ARTICLE 20 LIQUIDATION, ADJUSTMENTS, AND FUNDS AVAILABILITY 20.1 Liquidation of Recipient Obligations. (a) The Recipient shall liquidate all obligations of award funds under this agreement not later than the earlier of (1) 120 days after the end of the period of performance or (2) the statutory availability to eligible entities date, which shall be 5 years after the date on which the grant is provided. 72 24 of 30 (b) Liquidation of obligations and adjustment of costs under this agreement follow the requirements of 2 C.F.R. 200.344–200.346. ARTICLE 21 AGREEMENT MODIFICATIONS 21.1 Bilateral Amendments. The parties may amend, modify, or supplement this agreement by mutual agreement in writing signed by the USDOT and the Recipient. Either party may request to amend, modify, or supplement this agreement by written notice to the other party. 21.2 Unilateral Contact Modifications. (a) The USDOT may update the contacts who are listed in sections 4.4 by written notice to all of the Recipient contacts who are listed in section 4.3. 21.3 USDOT Unilateral Modifications. (a) The USDOT may unilaterally modify this agreement to comply with Federal law, including the Program Statute. (b) To unilaterally modify this agreement under this section 21.3(a), the USDOT must provide a notice to the Recipient that includes a description of the modification and state the date that the modification is effective. 21.4 Other Modifications. The parties shall not amend, modify, or supplement this agreement except as permitted under sections 21.1, 21.2, or 21.3. If an amendment, modification, or supplement is not permitted under section 21.1, not permitted under section 21.2, and not permitted under section 21.3, it is void. ARTICLE 22 CLIMATE CHANGE AND ENVIRONMENTAL JUSTICE 22.1 Climate Change and Environmental Justice. Consistent with Executive Order 14008, “Tackling the Climate Crisis at Home and Abroad” (Jan. 27, 2021), Attachment C documents the consideration of climate change and environmental justice impacts of the Project. ARTICLE 23 RACIAL EQUITY AND BARRIERS TO OPPORTUNITY 23.1 Racial Equity and Barriers to Opportunity. Consistent with Executive Order 13985, “Advancing Racial Equity and Support for Underserved Communities Through the 73 25 of 30 Federal Government” (Jan. 20, 2021), Attachment D documents activities related to the Project to improve racial equity and reduce barriers to opportunity. ARTICLE 24 FEDERAL FINANCIAL ASSISTANCE, ADMINISTRATIVE, AND NATIONAL POLICY REQUIREMENTS 24.1 Uniform Administrative Requirements for Federal Awards. The Recipient shall comply with the obligations on non-Federal entities under 2 C.F.R. parts 200 and 1201. 24.2 Federal Law and Public Policy Requirements. (a) The Recipient shall ensure that Federal funding is expended in full accordance with the United States Constitution, Federal law, and statutory and public policy requirements: including but not limited to, those protecting free speech, religious liberty, public welfare, the environment, and prohibiting discrimination. (b) The failure of this agreement to expressly identify Federal law applicable to the Recipient or activities under this agreement does not make that law inapplicable. 24.3 Federal Freedom of Information Act. (a) The USDOT is subject to the Freedom of Information Act, 5 U.S.C. 552. (b) The Recipient acknowledges that the Technical Application and materials submitted to the USDOT by the Recipient related to this agreement may become USDOT records subject to public release under 5 U.S.C. 552. 24.4 History of Performance. Under 2 C.F.R 200.206, any Federal awarding agency may consider the Recipient’s performance under this agreement when evaluating the risks of making a future Federal financial assistance award to the Recipient. 24.5 Whistleblower Protection. (a) The Recipient acknowledges that it is a “grantee” within the scope of 41 U.S.C. 4712, which prohibits the Recipient from taking certain actions against an employee for certain disclosures of information that the employee reasonably believes are evidence of gross mismanagement of this award, gross waste of Federal funds, or a violation of Federal law related this this award. (b) The Recipient shall inform its employees in writing of the rights and remedies provided under 41 U.S.C. 4712, in the predominant native language of the workforce. 24.6 External Award Terms and Obligations. (a) In addition to this document and the contents described in article 29, this agreement includes the following additional terms as integral parts: 74 26 of 30 (1) Appendix A to 2 C.F.R. part 25: System for Award Management and Universal Identifier Requirements; (2) Appendix A to 2 C.F.R. part 170: Reporting Subawards and Executive Compensation; (3) 2 C.F.R 175.15(b): Trafficking in Persons; and (4) Appendix XII to 2 C.F.R. part 200: Award Term and Condition for Recipient Integrity and Performance Matters. (b) The Recipient shall comply with: (1) 49 C.F.R. part 20: New Restrictions on Lobbying; (2) 49 C.F.R. part 21: Nondiscrimination in Federally-Assisted Programs of the Department of Transportation—Effectuation of Title VI of the Civil Rights Act of 1964; (3) 49 C.F.R. part 27: Nondiscrimination on the Basis of Disability in Programs or Activities Receiving Federal Financial Assistance; and (4) Subpart B of 49 C.F.R. part 32: Governmentwide Requirements for Drug-free Workplace (Financial Assistance). 24.7 Incorporated Certifications. The Recipient makes the statements in the following certifications, which are incorporated by reference: (1) Appendix A to 49 C.F.R. part 20 (Certification Regarding Lobbying). ARTICLE 25 ASSIGNMENT 25.1 Assignment Prohibited. The Recipient shall not transfer to any other entity any discretion granted under this agreement, any right to satisfy a condition under this agreement, any remedy under this agreement, or any obligation imposed under this agreement. ARTICLE 26 WAIVER 26.1 Waivers. (a) A waiver granted by USDOT under this agreement will not be effective unless it is in writing and signed by an authorized representative of USDOT. 75 27 of 30 (b) A waiver granted by USDOT under this agreement on one occasion will not operate as a waiver on other occasions. (c) If USDOT fails to require strict performance of a provision of this agreement, fails to exercise a remedy for a breach of this agreement, or fails to reject a payment during a breach of this agreement, that failure does not constitute a waiver of that provision or breach. ARTICLE 27 ADDITIONAL TERMS AND CONDITIONS 27.1 Effect of Planning and Demonstration or Implementation Award. Based on information that the Recipient provided to the USDOT, including the Grant Application, as indicated in section 2.5, this agreement designates this award as a Planning and Demonstration award or an Implementation award, as defined in the NOFO. The Recipient shall comply with the requirements that accompany that designation as listed in the FY 2023 Notice of Funding Opportunity for Safe Streets and Roads for All. 27.2 Disclaimer of Federal Liability. The USDOT shall not be responsible or liable for any damage to property or any injury to persons that may arise from, or be incident to, performance or compliance with this agreement. 27.3 Environmental Review (a) In this section, “Environmental Review Entity” means: (1) if the Project is located in a State that has assumed responsibilities for environmental review activities under 23 U.S.C. 326 or 23 U.S.C. 327 and the Project is within the scope of the assumed responsibilities, the State; and (2) for all other cases, the FHWA. (b) Except as authorized under section 27.3(c), the Recipient shall not begin final design; acquire real property, construction materials, or equipment; begin construction; or take other actions that represent an irretrievable commitment of resources for the Project unless and until: (1) the Environmental Review Entity complies with the National Environmental Policy Act, 42 U.S.C. 4321 to 4370m-12, and any other applicable environmental laws and regulations; and (2) if the Environmental Review Entity is not the Recipient, the Environmental Review Entity provides the Recipient with written notice that the environmental review process is complete. 76 28 of 30 (c) If the Recipient is using procedures for early acquisition of real property under 23 C.F.R. 710.501 or hardship and protective acquisitions of real property 23 C.F.R. 710.503, the Recipient shall comply with 23 C.F.R. 771.113(d)(1). (d) The Recipient acknowledges that: (1) the Environmental Review Entity’s actions under section 27.3(a) depend on the Recipient conducting necessary environmental analyses and submitting necessary documents to the Environmental Review Entity; and (2) applicable environmental statutes and regulation may require the Recipient to prepare and submit documents to other Federal, State, and local agencies. (e) Consistent with 23 C.F.R. 771.105(a), to the extent practicable and consistent with Federal law, the Recipient shall coordinate all environmental investigations, reviews, and consultations as a single process. (f) The activities described in this agreement may inform environmental decision-making processes, but the parties do not intend this agreement to document the alternatives under consideration under those processes. If a build alternative is selected that does not align information in this agreement, then: (1) the parties may amend this agreement under section 21.1 for consistency with the selected build alternative; or (2) if the USDOT determines that the condition at section 16.1(a)(5) is satisfied, the USDOT may terminate this agreement under section 16.1(a)(5). (g) The Recipient shall complete any mitigation activities described in the environmental document or documents for the Project, including the terms and conditions contained in the required permits and authorizations for the Project. 27.4 Railroad Coordination. If the agreement includes one or more milestones identified as a “Railroad Coordination Agreement,” then for each of those milestones, the Recipient shall enter a standard written railroad coordination agreement, consistent with 23 C.F.R. 646.216(d), no later than the deadline date identified for that milestone, with the identified railroad for work and operation within that railroad’s right-of-way. 27.5 Relocation and Real Property Acquisition. (a) The Recipient shall comply with the land acquisition policies in 49 C.F.R. part 24 subpart B and shall pay or reimburse property owners for necessary expenses as specified in that subpart. (b) The Recipient shall provide a relocation assistance program offering the services described in 49 C.F.R. part 24 subpart C and shall provide reasonable relocation payments and assistance to displaced persons as required in 49 C.F.R. part 24 subparts D–E. 77 29 of 30 (c) The Recipient shall make available to displaced persons, within a reasonable period of time prior to displacement, comparable replacement dwellings in accordance with 49 C.F.R. part 24 subpart E. 27.6 Equipment Disposition. (a) In accordance with 2 C.F.R. 200.313 and 1201.313, if the Recipient or a subrecipient acquires equipment under this award, then when that equipment is no longer needed for the Project that entity shall request disposition instructions from the FHWA. (b) In accordance with 2 C.F.R. 200.443(d), the distribution of the proceeds from the disposition of equipment must be made in accordance with 2 C.F.R. 200.313–200.316 and 2 C.F.R. 1201.313. (c) The Recipient shall ensure compliance with this section (27.6) for all tiers of subawards under this award. ARTICLE 28 MANDATORY AWARD INFORMATION 28.1 Information Contained in a Federal Award. For 2 C.F.R. 200.211: (1) the “Federal Award Date” is the date of this agreement, as defined under section 30.2; (2) the “Assistance Listings Number” is 20.939 and the “Assistance Listings Title” is “Safe Streets and Roads for All Grant Program”; and (3) this award is not for research and development. ARTICLE 29 CONSTRUCTION AND DEFINITIONS 29.1 Attachments. This agreement includes the following attachments as integral parts unless Attachments D-F are not required for certain Planning and Demonstration Grants: Attachment A Performance Measurement Information Attachment B Changes from Application Attachment C Racial Equity and Barriers to Opportunity Attachment D Climate Change and Environmental Justice Impacts Attachment E Labor and Workforce Attachment F Critical Infrastructure Security and Resilience 29.2 Exhibits. The following exhibits, which are in the document titled “Exhibits to FHWA Grant Agreements Under the Fiscal Year 2023 SS4A Grant Program”, dated January 4, 78 30 of 30 2024, and available at https://www.transportation.gov/grants/ss4a/grant-agreements, are part of this agreement. Exhibit A Applicable Federal Laws and Regulations Exhibit B Additional Standard Terms Exhibit C Quarterly Performance Progress Reports: Format and Content Exhibit D Form for Subsequent Obligation of Funds 29.3 Construction. If a provision in the exhibits or the attachments conflicts with a provision in articles 1–30, then the provision in articles 1–30 prevails. If a provision in the attachments conflicts with a provision in the exhibits, then the provision in the attachments prevails. 29.4 Integration. This agreement constitutes the entire agreement of the parties relating to the SS4A grant program and awards under that program and supersedes any previous agreements, oral or written, relating to the SS4A grant program and awards under that program. 29.5 Definitions. In this agreement, the following definitions apply: “Program Statute” means the BIL section 24112 and statutory text under the heading “Safe Streets and Roads for All Grants” in title I of division J of the Infrastructure Investment and Jobs Act, Pub. L. No. 117-58 (November 15, 2021), and all other provisions of that act that apply to amounts appropriated under that heading. “Project” means the project proposed in the Grant Application, as modified by the negotiated provisions of this agreement. “SS4A Grant” means an award of funds that were made available under the SS4A NOFO. “Grant Application” means the application identified in section 2.1, including Standard Form 424 and all information and attachments submitted with that form through Grants.gov. ARTICLE 30 AGREEMENT EXECUTION AND EFFECTIVE DATE 30.1 Counterparts. This agreement may be executed in counterparts, which constitute one document. The parties intend each countersigned original to have identical legal effect. 30.2 Effective Date. The agreement will become effective when all parties have signed it. The effective date of this agreement will be the date this agreement is signed by the last party to sign it. This instrument constitutes a SS4A Grant when the USDOT’s authorized representative signs it. 79 1 of 21 1. Federal Award No. 693JJ32540080 2. Effective Date See No. 16 Below 3. Assistance Listings No. 20.939 4. Award To City of Bozeman 121 N Rouse Ave Bozeman, MT 59715-3740, USA Unique Entity Id.: EEAPKALAEM35 TIN No.: 81-6001238 5. Sponsoring Office U.S. Department of Transportation Federal Highway Administration Office of Safety 1200 New Jersey Avenue, SE HSSA-1, Mail Drop E71-117 Washington, DC 20590 6. Period of Performance Effective Date of Award – 36 months 7. Total Amount Federal Share: Recipient Share: Other Federal Funds: Other Funds: Total: $200,000 $50,000 $0 $0 $250,000 8. Type of Agreement Grant 9. Authority Section 24112 of the Infrastructure Investment and Jobs Act (Pub. L. 117–58, November 15, 2021; also referred to as the “Bipartisan Infrastructure Law” or “BIL”) 10. Procurement Request No. HSA240110PR 11. Federal Funds Obligated $200,000 12. Submit Payment Requests To See Article 5. 13. Accounting and Appropriations Data 15X0173E50.0000.055SR10500.5592000000.4 1010.61006600 14. Description of the Project The project will develop a Comprehensive Safety Action Plan for the City of Bozeman using a data driven approach to identify systemic safety needs and then identify strategies to address the identified needs based on proven countermeasures. Additionally, the project will demonstrate the use of advanced technology at key signalized intersections to collect supplemental data that will guide the demonstration of strategies that aim to eliminate serious injury and fatal crashes. Docusign Envelope ID: 4791474C-9583-40A4-B9E0-5489D07E3896 80 2 of 21 RECIPIENT 15. Signature of Person Authorized to Sign ___________________________________ Signature Date Name: Chuck Winn Title: Interim City Manager, City of Bozeman Attest: ___________________________________ Signature Date Name: Mike Maas Title: City Clerk, City of Bozeman FEDERAL HIGHWAY ADMINISTRATION 16. Signature of Agreement Officer ______________________________________ Signature Date Name: Ryan Buck Title: Agreement Officer Docusign Envelope ID: 4791474C-9583-40A4-B9E0-5489D07E3896 11/26/2024 11/26/2024 81 3 of 21 U.S. DEPARTMENT OF TRANSPORTATION GRANT AGREEMENT UNDER THE FISCAL YEAR 2023 SAFE STREETS AND ROADS FOR ALL GRANT PROGRAM This agreement is between the United States Department of Transportation’s (the “USDOT”) Federal Highway Administration (the “FHWA”) and the City of Bozeman (the “Recipient”). This agreement reflects the selection of the Recipient to receive a Safe Streets and Roads for All (“SS4A”) Grant for the City of Bozeman Safety Action Plan and Safety Demonstration Project. The parties therefore agree to the following: ARTICLE 1 GENERAL TERMS AND CONDITIONS 1.1 General Terms and Conditions. (a) In this agreement, “General Terms and Conditions” means the content of the document titled “General Terms and Conditions Under the Fiscal Year 2023 Safe Streets and Roads for All (“SS4A”) Grant Program,”, which is available at https://www.transportation.gov/grants/ss4a/grant-agreements under “Fiscal Year 2023.” Articles 7–30 are in the General Terms and Conditions. The General Terms and Conditions are part of this agreement. (b) The Recipient acknowledges that it has knowledge of the General Terms and Conditions. Recipient also states that it is required to comply with all applicable Federal laws and regulations including, but not limited to, the Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (2 CFR part 200); National Environmental Policy Act (NEPA) (42 U.S.C. § 4321 et seq.); and Build America, Buy America Act (BIL, div. G §§ 70901-27). (c) The Recipient acknowledges that the General Terms and Conditions impose obligations on the Recipient and that the Recipient’s non-compliance with the General Terms and Conditions may result in remedial action, termination of the SS4A Grant, disallowing costs incurred for the Project, requiring the Recipient to refund to the FHWA the SS4A Grant, and reporting the non-compliance in the Federal-government-wide integrity and performance system. Docusign Envelope ID: 4791474C-9583-40A4-B9E0-5489D07E3896 82 4 of 21 ARTICLE 2 APPLICATION, PROJECT, AND AWARD 2.1 Application. Application Title: City of Bozeman Safety Action Plan and Safety Demonstration Project Application Date: July 10, 2023 2.2 Award Amount. SS4A Grant Amount: $200,000 2.3 Federal Obligation Information. Federal Obligation Type: Single PR Line Items Federal Share Note Base Phase: Planning $150,000 OBLIGATE FUNDING AT AWARD Phase 1: Final Design $0 Phase 2: Construction $50,000 Subject to Availability Total $200,000 2.4 Budget Period. Budget Period: See Block 6 of Page 1 2.5 Grant Designation. Designation: Planning and Demonstration Docusign Envelope ID: 4791474C-9583-40A4-B9E0-5489D07E3896 83 5 of 21 ARTICLE 3 SUMMARY PROJECT INFORMATION 3.1 Summary of Project’s Statement of Work. The project will be completed in one phase as follows: Action Plan The outcome of this project will be a Comprehensive Safety Action Plan for the City of Bozeman. The city Transportation Board will assist City Commission in oversight of the plan development which will be led by the city’s Department of Transportation and Engineering. The city intends to hire a consultant to support the plan development. Plan development will be founded on analysis of existing conditions including locations, severity, contributing factors, and crash types for all road users. The safety analysis will include evaluation of systemic safety needs by user type. Goals will ultimately include identification of high-crash and high-injury routes and intersections as well as suggested countermeasures to address the identified safety concerns. Of particular interest will be strategies for arterial speed management and intersection safety. Robust public engagement will be provided through all phases of planning by developing a project- specific Engagement Plan using our Engage Bozeman Initiative. Demonstration Activity The demonstration activities of the grant involve the city demonstrating advanced technology at key signalized intersections to collect supplemental data and to demonstrate strategies that aim to eliminate serious injury and fatal crashes. The addition of ITS equipment to existing signal systems will enable Bozeman to collect data on red light running, speeding, and near misses. The installation of the new ITS equipment will not impact the existing built environment. The City of Bozeman intends to implement demonstration strategies that address the specific safety problems identified and utilize this new equipment to collect follow up data to evaluate each strategy. The results of these demonstration activities will inform the development of the Action Plan and will build evidence around counter measures that work. The outcome of the Plan and the Demonstration activities will be summarized in the final report along with the required performance measurement information. The Plan and the report will be available to the public via the city’s website. 3.2 Project’s Estimated Schedule. Action Plan Schedule Milestone Schedule Date NEPA Completion Date: March 18, 2024 Docusign Envelope ID: 4791474C-9583-40A4-B9E0-5489D07E3896 84 6 of 21 Planned Draft Plan Completion Date: December 31, 2025 Planned Final Plan Completion Date: June 30, 2026 Planned Final Plan Adoption Date: December 22, 2026 Planned SS4A Final Report Date: June 30, 2027 Demonstration Activity Schedule Milestone Schedule Date NEPA Completion Date: March 18, 2024 Planned Construction Start Date January 13, 2025 Planned Evaluation Period End Date: June 30, 2025 Planned SS4A Final Report Date: June 30, 2027 3.3 Project’s Estimated Costs. (a) Eligible Project Costs Eligible Project Costs SS4A Grant Amount: $200,000 Other Federal Funds: $0 State Funds: $0 Local Funds: $50,000 In-Kind Match: $0 Other Funds: $0 Total Eligible Project Cost: $250,000 (b) Cost Classification Table – Planning and Demonstration Grants with demonstration activities and Implementation Grants Only Cost Classification Total Costs Non-SS4A Previously Incurred Costs Eligible Costs Architectural and engineering fees $150,000 $150,000 Equipment $100,000 $50,000 Project Total $250,000 $200,000 Docusign Envelope ID: 4791474C-9583-40A4-B9E0-5489D07E3896 85 7 of 21 (c) Indirect Costs Indirect costs are allowable under this Agreement in accordance with 2 CFR part 200 and the Recipient’s approved Budget Application. In the event the Recipient’s indirect cost rate changes, the Recipient will notify FHWA of the planned adjustment and provide supporting documentation for such adjustment. This Indirect Cost provision does not operate to waive the limitations on Federal funding provided in this document. The Recipient’s indirect costs are allowable only insofar as they do not cause the Recipient to exceed the total obligated funding. ARTICLE 4 RECIPIENT INFORMATION 4.1 Recipient Contact(s). Nicholas Ross Director of Transportation and Engineering City of Bozeman 20 E Olive St, Bozeman, MT 59715 406.582.2315 nross@bozeman.net 4.2 Recipient Key Personnel. Name Title or Position Taylor Lonsdale City Transportation Engineer Jamie Grabinski City Grants Coordinator 4.3 USDOT Project Contact(s). Safe Streets and Roads for All Program Manager Federal Highway Administration Office of Safety HSSA-1, Mail Stop: E71-117 1200 New Jersey Avenue, S.E. Washington, DC 20590 202-366-2822 SS4A.FHWA@dot.gov and Docusign Envelope ID: 4791474C-9583-40A4-B9E0-5489D07E3896 86 8 of 21 Agreement Officer (AO) Federal Highway Administration Office of Acquisition and Grants Management HCFA-33, Mail Stop E62-310 1200 New Jersey Avenue, S.E. Washington, DC 20590 202-493-2402 HCFASS4A@dot.gov and Division Administrator – Montana Division Agreement Officer’s Representative (AOR) 585 Shepard Way, Suite 2 Helena, MT 59601 (406) 441-3900 hdamt@dot.gov and Gene Kaufman Montana Division Office Lead Point of Contact Program and Project Delivery Engineer 585 Shephard Way, Suite 2 Helena, MT 59601 406-441-3915 gene.kaufman@dot.gov ARTICLE 5 USDOT ADMINISTRATIVE INFORMATION 5.1 Office for Subaward and Contract Authorization. USDOT Office for Subaward and Contract Authorization: FHWA Office of Acquisition and Grants Management SUBAWARDS AND CONTRACTS APPROVAL Note: See 2 CFR § 200.331, Subrecipient and contractor determinations, for definitions of subrecipient (who is awarded a subaward) versus contractor (who is awarded a contract). Note: Recipients with a procurement system deemed approved and accepted by the Government or by the Agreement Officer (the “AO”) are exempt from the requirements of this clause. See 2 CFR 200.317 through 200.327. Note: This clause is only applicable to grants that do not include construction. Docusign Envelope ID: 4791474C-9583-40A4-B9E0-5489D07E3896 87 9 of 21 In accordance with 2 CFR 200.308(c)(6), unless described in the application and funded in the approved award, the Recipient must obtain prior written approval from the AO for the subaward, transfer, or contracting out of any work under this award above the Simplified Acquisition Threshold. This provision does not apply to the acquisition of supplies, material, equipment, or general support services. Approval will be issued through written notification from the AO or a formal amendment to the Agreement. The following subawards and contracts are currently approved under the Agreement by the AO. This list does not include supplies, material, equipment, or general support services which are exempt from the pre-approval requirements of this clause.  None at the time of award NOTE: For agreements with an effective date after October 1, 2024, this clause will conform with the revised 2 CFR 200.308(f). 5.2 Reimbursement Requests (a) The Recipient may request reimbursement of costs incurred within the budget period of this agreement if those costs do not exceed the amount of funds obligated and are allowable under the applicable cost provisions of 2 C.F.R. Part 200, Subpart E. The Recipient shall not request reimbursement more frequently than monthly. (b) The Recipient shall use the DELPHI iSupplier System to submit requests for reimbursement to the payment office. When requesting reimbursement of costs incurred or credit for cost share incurred, the Recipient shall electronically submit supporting cost detail with the SF-270 (Request for Advance or Reimbursement) or SF-271 (Outlay Report and Request for Reimbursement for Construction Programs) to clearly document all costs incurred. (c) The Recipient’s supporting cost detail shall include a detailed breakout of all costs incurred, including direct labor, indirect costs, other direct costs, travel, etc., and the Recipient shall identify the Federal share and the Recipient’s share of costs. If the Recipient does not provide sufficient detail in a request for reimbursement, the Agreement Officer’s Representative (the “AOR”) may withhold processing that request until the Recipient provides sufficient detail. (d) The USDOT shall not reimburse costs unless the AOR reviews and approves the costs to ensure that progress on this agreement is sufficient to substantiate payment. (e) In the rare instance the Recipient is unable to receive electronic funds transfers (EFT), payment by EFT would impose a hardship on the Recipient because of their inability to manage an account at a financial institution, and/or the Recipient is unable to use the DELPHI iSupplier System to submit their requests for disbursement, the FHWA may waive the requirement that the Recipient use the DELPHI iSupplier System. The Recipient shall contact the Division Office Lead Point of Contact for instructions on and requirements related to pursuing a waiver. Docusign Envelope ID: 4791474C-9583-40A4-B9E0-5489D07E3896 88 10 of 21 (f) The requirements set forth in these terms and conditions supersede previous financial invoicing requirements for Recipients. ARTICLE 6 SPECIAL GRANT TERMS 6.1 SS4A funds must be expended within five years after the grant agreement is executed and DOT obligates the funds, which is the budget period end date in section 10.3 of the Terms and Conditions and section 2.4 in this agreement. 6.2. The Recipient demonstrates compliance with civil rights obligations and nondiscrimination laws, including Titles VI of the Civil Rights Act of 1964, the Americans with Disabilities Act (ADA), and Section 504 of the Rehabilitation Act, and accompanying regulations. Recipients of Federal transportation funding will also be required to comply fully with regulations and guidance for the ADA, Title VI of the Civil Rights Act of 1964, Section 504 of the Rehabilitation Act of 1973, and all other civil rights requirements. 6.3 SS4A Funds will be allocated to the Recipient and made available to the Recipient in accordance with FHWA procedures. 6.4 The Recipient of a Planning and Demonstration Grant acknowledges that the Action Plan will be made publicly available and agrees that it will publish the final Action Plan on a publicly available website. 6.5 The Recipient of a Planning and Demonstration Grant that involves a demonstration activity agrees to provide an assessment of each demonstration activity and update the existing Action Plan, which will incorporate the information gathered in the Action Plan’s list of projects or strategies and/or inform another part of the existing Action Plan. The Recipient also agrees that demonstration activities are temporary in nature and must be removed and/or ended following the conclusion of the project if the assessment of the demonstration activities does not affirm that the activities provide safety benefits. 6.6 There are no other special grant requirements. Docusign Envelope ID: 4791474C-9583-40A4-B9E0-5489D07E3896 89 11 of 21 ATTACHMENT A PERFORMANCE MEASUREMENT INFORMATION Study Area: The Safety Plan will encompass the entirety of the City of Bozeman. The demonstration portion of the project will be isolated to four specific arterial street intersections that will be identified at the start of plan development. Baseline Measurement Date: December 2024 Baseline Report Date: February 2025 Table 1: Performance Measure Table Measure Category and Description Measurement Frequency and Reporting Deadline Safety Performance Fatalities: Total annual fatalities in the project location(s) Annually and within 120 days after the end of the period of performance Safety Performance Serious Injuries: Total annual serious injuries in the project location(s) [if available] Annually and within 120 days after the end of the period of performance Safety Performance Crashes by Road User Category: Total annual crashes in the project location(s) broken out by types of roadway users involved (e.g., pedestrians, bicyclists, motorcyclist, passenger vehicle occupant, commercial vehicle occupant) Annually and within 120 days after the end of the period of performance Equity Percent of Funds to Underserved Communities: Funding amount (of total project amount) benefitting underserved communities, as defined by USDOT Within 120 days after the end of the period of performance Docusign Envelope ID: 4791474C-9583-40A4-B9E0-5489D07E3896 90 12 of 21 Measure Category and Description Measurement Frequency and Reporting Deadline Costs Project Costs: Quantification of the cost of each eligible project carried out using the grant Within 120 days after the end of the period of performance Outcomes and Benefits Quantitative Project Benefits: Quantification of evidence-based projects or strategies implemented (e.g., miles of sidewalks installed, number of pedestrian crossings upgraded, etc.) Within 120 days after the end of the period of performance Outcomes and Benefits Qualitative Project Benefits: Qualitative description of evidence-based projects or strategies implemented (e.g., narrative descriptions, testimonials, high-quality before and after photos, etc.) Within 120 days after the end of the period of performance Outcomes and Benefits Project Location(s): GIS/geo coordinate information identifying specific project location(s) Within 120 days after the end of the period of performance Lessons Learned and Recommendations Lessons Learned and Recommendations: Description of lessons learned and any recommendations relating to future projects or strategies to prevent death and serious injury on roads and streets. Within 120 days after the end of the period of performance Docusign Envelope ID: 4791474C-9583-40A4-B9E0-5489D07E3896 91 13 of 21 ATTACHMENT B CHANGES FROM APPLICATION Describe all material differences between the scope, schedule, and budget described in the application and the scope, schedule, and budget described in Article 3. The purpose of Attachment B is to clearly and accurately document any differences in scope, schedule, and budget to establish the parties’ knowledge and acceptance of those differences. See Article 11 for the Statement of Work, Schedule, and Budget Changes. If there are no changes, please insert “N/A” in Section 3.3 of the table. Scope: No changes to the Project scope from the application. Schedule: No changes to the Project schedule from the application. Budget: No changes to the Project budget from the application. The table below provides a summary comparison of the project budget. Fund Source Application Section 3.3 $ % $ % Previously Incurred Costs (Non-Eligible Project Costs) Federal Funds Non-Federal Funds Total Previously Incurred Costs 0 0 N/A N/A Future Eligible Project Costs SS4AFunds $200,000 80 N/A N/A Other Federal Funds Non-Federal Funds $50,000 20 N/A N/A Total Future Eligible Project Costs $250,000 100 N/A N/A Total Project Costs $250,000 100 N/A N/A Docusign Envelope ID: 4791474C-9583-40A4-B9E0-5489D07E3896 92 14 of 21 ATTACHMENT C RACIAL EQUITY AND BARRIERS TO OPPORTUNITY 1. Efforts to Improve Racial Equity and Reduce Barriers to Opportunity. The Recipient states that rows marked with “X” in the following table align with the application: A racial equity impact analysis has been completed for the Project. (Identify a report on that analysis or, if no report was produced, describe the analysis and its results in the supporting narrative below.) X The Recipient or a project partner has adopted an equity and inclusion program/plan or has otherwise instituted equity-focused policies related to project procurement, material sourcing, construction, inspection, hiring, or other activities designed to ensure racial equity in the overall delivery and implementation of the Project. (Identify the relevant programs, plans, or policies in the supporting narrative below.) The Project includes physical-barrier-mitigating land bridges, caps, lids, linear parks, and multimodal mobility investments that either redress past barriers to opportunity or that proactively create new connections and opportunities for underserved communities that are underserved by transportation. (Identify the relevant investments in the supporting narrative below.) The Project includes new or improved walking, biking, and rolling access for individuals with disabilities, especially access that reverses the disproportional impacts of crashes on people of color and mitigates neighborhood bifurcation. (Identify the new or improved access in the supporting narrative below.) The Project includes new or improved freight access to underserved communities to increase access to goods and job opportunities for those underserved communities. (Identify the new or improved access in the supporting narrative below.) The Recipient has taken other actions related to the Project to improve racial equity and reduce barriers to opportunity, as described in the supporting narrative below. The Recipient has not yet taken actions related to the Project to improve racial equity and reduce barriers to opportunity but intends to take relevant actions described in the supporting narrative below. The Recipient has not taken actions related to the Project to improve racial equity and reduce barriers to opportunity and will not take those actions under this award. 2. Supporting Narrative. The City of Bozeman adopted the Belonging In Bozeman Equity & Inclusion Plan on December 19, 2023. The plan can be found at Docusign Envelope ID: 4791474C-9583-40A4-B9E0-5489D07E3896 93 15 of 21 https://www.bozeman.net/home/showdocument?id=13760. This plan sets forth a path for collaboration across organizations, capacity building, deeper engagement, and better service delivery to those who need it most. Docusign Envelope ID: 4791474C-9583-40A4-B9E0-5489D07E3896 94 16 of 21 ATTACHMENT D CLIMATE CHANGE AND ENVIRONMENTAL JUSTICE IMPACTS 1. Consideration of Climate Change and Environmental Justice Impacts. The Recipient states that rows marked with “X” in the following table align with the application: X The Project directly supports a Local/Regional/State Climate Action Plan that results in lower greenhouse gas emissions. (Identify the plan in the supporting narrative below.) The Project directly supports a Local/Regional/State Equitable Development Plan that results in lower greenhouse gas emissions. (Identify the plan in the supporting narrative below.) The Project directly supports a Local/Regional/State Energy Baseline Study that results in lower greenhouse gas emissions. (Identify the plan in the supporting narrative below.) The Recipient or a project partner used environmental justice tools, such as the EJScreen, to minimize adverse impacts of the Project on environmental justice communities. (Identify the tool(s) in the supporting narrative below.) X The Project supports a modal shift in freight or passenger movement to reduce emissions or reduce induced travel demand. (Describe that shift in the supporting narrative below.) The Project utilizes demand management strategies to reduce congestion, induced travel demand, and greenhouse gas emissions. (Describe those strategies in the supporting narrative below.) The Project incorporates electrification infrastructure, zero-emission vehicle infrastructure, or both. (Describe the incorporated infrastructure in the supporting narrative below.) The Project supports the installation of electric vehicle charging stations. (Describe that support in the supporting narrative below.) The Project promotes energy efficiency. (Describe how in the supporting narrative below.) The Project serves the renewable energy supply chain. (Describe how in the supporting narrative below.) The Project improves disaster preparedness and resiliency (Describe how in the supporting narrative below.) X The Project avoids adverse environmental impacts to air or water quality, wetlands, and endangered species, such as through reduction in Clean Air Act criteria pollutants and greenhouse gases, improved stormwater management, or improved habitat connectivity. (Describe how in the supporting narrative below.) Docusign Envelope ID: 4791474C-9583-40A4-B9E0-5489D07E3896 95 17 of 21 The Project repairs existing dilapidated or idle infrastructure that is currently causing environmental harm. (Describe that infrastructure in the supporting narrative below.) The Project supports or incorporates the construction of energy- and location- efficient buildings. (Describe how in the supporting narrative below.) The Project includes recycling of materials, use of materials known to reduce or reverse carbon emissions, or both. (Describe the materials in the supporting narrative below.) The Recipient has taken other actions to consider climate change and environmental justice impacts of the Project, as described in the supporting narrative below. The Recipient has not yet taken actions to consider climate change and environmental justice impacts of the Project but will take relevant actions described in the supporting narrative below. The Recipient has not taken actions to consider climate change and environmental justice impacts of the Project and will not take those actions under this award. 2. Supporting Narrative. The City of Bozeman has an adopted Climate Plan. This project directly supports that plan’s goal to “increase walking, bicycling, carpooling, and the use of transit” by identifying strategies to improve the safety of people utilizing multimodal transportation options. Docusign Envelope ID: 4791474C-9583-40A4-B9E0-5489D07E3896 96 18 of 21 ATTACHMENT E LABOR AND WORKFORCE 1. Efforts to Support Good-Paying Jobs and Strong Labor Standards The Recipient states that rows marked with “X” in the following table align with the application: X The Recipient demonstrate, to the full extent possible consistent with the law, an effort to create good-paying jobs with the free and fair choice to join a union and incorporation of high labor standards. (Identify the relevant agreements and describe the scope of activities they cover in the supporting narrative below.) The Recipient or a project partner has adopted the use of local and economic hiring preferences in the overall delivery and implementation of the Project. (Describe the relevant provisions in the supporting narrative below.) The Recipient or a project partner has adopted the use of registered apprenticeships in the overall delivery and implementation of the Project. (Describe the use of registered apprenticeship in the supporting narrative below.) The Recipient or a project partner will provide training and placement programs for underrepresented workers in the overall delivery and implementation of the Project. (Describe the training programs in the supporting narrative below.) The Recipient or a project partner will support free and fair choice to join a union in the overall delivery and implementation of the Project by investing in workforce development services offered by labor-management training partnerships or setting expectations for contractors to develop labor-management training programs. (Describe the workforce development services offered by labor-management training partnerships in the supporting narrative below.) The Recipient or a project partner will provide supportive services and cash assistance to address systemic barriers to employment to be able to participate and thrive in training and employment, including childcare, emergency cash assistance for items such as tools, work clothing, application fees and other costs of apprenticeship or required pre-employment training, transportation and travel to training and work sites, and services aimed at helping to retain underrepresented groups like mentoring, support groups, and peer networking. (Describe the supportive services and/or cash assistance provided to trainees and employees in the supporting narrative below.) The Recipient or a project partner has documented agreements or ordinances in place to hire from certain workforce programs that serve underrepresented groups. (Identify the relevant agreements and describe the scope of activities they cover in the supporting narrative below.) Docusign Envelope ID: 4791474C-9583-40A4-B9E0-5489D07E3896 97 19 of 21 The Recipient or a project partner participates in a State/Regional/Local comprehensive plan to promote equal opportunity, including removing barriers to hire and preventing harassment on work sites, and that plan demonstrates action to create an inclusive environment with a commitment to equal opportunity, including: a. affirmative efforts to remove barriers to equal employment opportunity above and beyond complying with Federal law; b. proactive partnerships with the U.S. Department of Labor’s Office of Federal Contract Compliance Programs to promote compliance with EO 11246 Equal Employment Opportunity requirements and meet the requirements as outlined in the Notice of Funding Opportunity to make good faith efforts to meet the goals of 6.9 percent of construction project hours being performed by women and goals that vary based on geography for construction work hours and for work being performed by people of color; c. no discriminatory use of criminal background screens and affirmative steps to recruit and include those with former justice involvement, in accordance with the Fair Chance Act and equal opportunity requirements; d. efforts to prevent harassment based on race, color, religion, sex, sexual orientation, gender identity, and national origin; e. training on anti-harassment and third-party reporting procedures covering employees and contractors; and f. maintaining robust anti-retaliation measures covering employees and contractors. (Describe the equal opportunity plan in the supporting narrative below.) The Recipient has taken other actions related to the Project to create good- paying jobs with the free and fair choice to join a union and incorporate strong labor standards. (Describe those actions in the supporting narrative below.) The Recipient has not yet taken actions related to the Project to create good- paying jobs with the free and fair choice to join a union and incorporate strong labor standards but, before beginning construction of the project, will take relevant actions described in the supporting narrative below. The Recipient has not taken actions related to the Project to improving good- paying jobs and strong labor standards and will not take those actions under this award. 2. Supporting Narrative. In accordance with state and federal laws, The City of Bozeman supports the free and fair choice to join a union. The City has collective bargaining agreements with Teamsters Local No. 2, Montana Federation of Public Employees, Bozeman Police Protective Association, and IAFF Local 613. All collective bargaining agreements are publicly available on the City’s website at https://www.bozeman.net/departments/human- resources/employee-information/union-agreements. Each of the collective bargaining Docusign Envelope ID: 4791474C-9583-40A4-B9E0-5489D07E3896 98 20 of 21 agreements cover wages, hours, and other terms and conditions of employment, all providing competitive compensation, benefits, and high labor standards for covered employees. Other applicable employment policies, including the City’s Employee Handbook and Hiring Practices are also publicly available on the City’s website at https://www.bozeman.net/departments/human-resources/employee- information/employment-policy. These additional policies describe benefits, labor standards, and other terms and conditions of employment that pertain to both represented and non-represented employees. ATTACHMENT F CRITICAL INFRASTRUCTURE SECURITY AND RESILIENCE 1. Efforts to strengthen the Security and Resilience of Critical Infrastructure against both Physical and Cyber Threats. The Recipient states that rows marked with “X” in the following table are accurate: X The Recipient demonstrates, prior to the signing of this agreement, effort to consider and address physical and cyber security risks relevant to the transportation mode and type and scale of the activities. The Recipient appropriately considered and addressed physical and cyber security and resilience in the planning, design and oversight of the project, as determined by the Department and the Department of Homeland Security. For projects in floodplains: The Recipient appropriately considered whether the project was upgraded consistent with the Federal Flood Risk Management Standard, to the extent consistent with current law, in Executive Order 14030, Climate-Related Financial Risk (86 FR 27967), and Executive Order 13690, Establishing a Federal Flood Risk Management Standard and a Process for Further Solicit and Considering Stakeholder Input (80 FR 6425). Docusign Envelope ID: 4791474C-9583-40A4-B9E0-5489D07E3896 99 21 of 21 2. Supporting Narrative. The project will implement proven technology for collecting safety performance measures at intersections. The equipment will be installed in existing systems with existing protections addressing cybersecurity risks. The installation of the new equipment poses no physical risk to users of the transportation system. Docusign Envelope ID: 4791474C-9583-40A4-B9E0-5489D07E3896 100 Grant Instructions and Grant Routing Form To ensure appropriate use, consistency and tracking of grants use this set of general instructions and Grant Routing Form are provided. All grants regardless of amount are required to be approved by The City of Bozeman Commission prior to receiving the grant award. Step One: Giving Notice of Intent to Apply Give notice of your intent to apply for the grant by submitting the Grant Routing Form. Submit the form via DocuSign* to the appropriate supervisor (typically department Director) and the Finance Director. Save a copy of the submittal. The grant tracking number field can be left blank until the grant is awarded. Per Administrative Order 2014-01 the City Manager and City Commission are required to be notified within 30 days of all grant applications exceeding $20,000. Step Two: Obtain Grant Tracking Number for Awarded Grants Once a grant is awarded, contact the City Clerk’s office at 406-582-2030 to request a grant tracking number. The official grant acceptance is contingent on City Commission approval. Step Three: Re-Route for Final Signatures Insert the grant tracking number on the Grant Routing Form and reroute the form via *DocuSign for signatures. Step Four: Commission Approval Work with Division Director, City Manager, and the City Clerk to get the awarded grant prepared for City Commission approval. If you need assistance in reviewing the grant terms, contact the City Attorney’s Office to request a review of the grant terms before placing the item on the Consent agenda. All agreements require City Commission authorization regardless of dollar amount. Agreements will be retained by the City Clerks’ Office. *Each Division has staff assigned with DocuSign access. Using a single DocuSign “envelope” will allow the same tracking form to move through the steps of the process and the signature matrix. Reach out to the City Clerk’s Office for initial assistance sending your envelope. Grant Not Awarded: If your application is NOT awarded, the application materials must be retained by the applying department in accordance with Records Retention Schedule 8. Docusign Envelope ID: 4791474C-9583-40A4-B9E0-5489D07E3896 101 Grant # (issued by City Clerk) Grant Name Grant Project Manager Department Person Responsible for Financial Reporting Person Responsible for Performance Reporting & Close Out *Note: this person is also reseponsible for record retention requirements. Grant Source Federal State Other CDFA # (Federal Only)Fiscal year of award Grant Amount Included in Budget? Match Requirement (%)Budget Account Code Match Amount Cost reimbursement basis? Select yes if the City needs to apply for reimbursement after expenditures occur. Work with finance if unsure.New account codes and/or project codes required to track revenue and expenses? Desctibe the requirements for grant reporting, reimbursements, and how they are completed (i.e. through a website? Email?): Process Phase / Signature Matrix City Clerk Commission Date Notice of Intent Application Award/Contract City Manager City of BozemanGrant Routing Form Department Director (I understand and will carry out the provisions of the grant) Finance Director Grant Routing Form May 2023 Describe the nature of the grant and eligible uses: 2023-13 2023 Safe Streets and Roads For All Planing and Demonstration Grant Taylor Lonsdale Transportation and Engineering Taylor Lonsdale Taylor Lonsdale 20.939 2025 $200,000 No 20.00%111-4120-433.__-__ $ 50,000.00 Yes No The Safe Streets for All (SS4A) grant program is administered by the Federal Highway Administration (FHWA). The SS4A program has two different activities -planning and demonstration. The City of Bozeman Transportation and Engineering Division received notice of award for this SS4A grant to develop a comprehensive safety action plan. The action plan will use a data driven approach to identify systemic safety needs and then identify strategies to address the identified needs with proven countermeasures. The demonstration activity portion of the grant will add ITS equipment to the existing signal system at key intersections to collect supplemental data on red light running, speeding, and near misses. The grant performance reports are due to the FHWA project manager via email. Financial reports/requests for reimbursements are requested via Delphi. n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a 12/10/2024 Docusign Envelope ID: 4791474C-9583-40A4-B9E0-5489D07E3896 102 Memorandum REPORT TO:City Commission FROM:Jamie Grabinski, Grants Coordinator SUBJECT:Authorize the City Commission to Ratify the Montana Main Street Program Grant Application. MEETING DATE:December 10, 2024 AGENDA ITEM TYPE:Grant RECOMMENDATION:Authorize the City Commission to Ratify the Montana Main Street Program Grant Application. STRATEGIC PLAN:4.4 Vibrant Downtown, Districts & Centers: Promote a healthy, vibrant Downtown, Midtown, and other commercial districts and neighborhood centers – including higher densities and intensification of use in these key areas. BACKGROUND:The Montana Department of Commerce offers the Montana Main Street Grant to members of the Main Street Program with local government sponsorship. In collaboration, the Bozeman Downtown Partnership and t he City of Bozeman submitted an application to revitalize a downtown pocket park located at E. Mendenhall Street and N. Black Avenue in honor of Commissioner I-Ho Pomeroy. If awarded, the goal of the project is to help preserve and celebrate an important piece of history. The project will recognize and honor I-Ho as a person, as a downtown businesswoman, I- Ho's South Korean heritage, and her efforts to promote a more walkable and bike-able community. The total project cost is estimated at $320,000 with a grant request of $256,000 and $64,000 match. UNRESOLVED ISSUES:None. ALTERNATIVES:As identified by the City Commission. FISCAL EFFECTS:Total expenditures are expected to be $320,000. Talk to Kaitlin prior to finalizing. Attachments: MMS Grant App_Signed.pdf Report compiled on: November 15, 2024 103 Montana Main Street Grant I-Ho Pomeroy Peace Park – Bozeman, Montana APPLICATION a) Applicant Information Name of Applicant: Downtown Bozeman Partnership/City of Bozeman Address: 222 East Main Street, Suite 302 City: Bozeman Zip Code: 59715 Chief Elected Official/Title: City of Bozeman Commissioner, Jennifer Madgic Phone/Email: 406-595-3295, jmadgic@bozeman.net Primary Contact/Title: Ellie Staley, Executive Director Downtown Bozeman Partnership Phone/Email: 406-581-3827, ellie@downtownbozeman.org b) Project Partners Name Organization Support Letter Attached Ellie Staley Downtown Bozeman Partnership Applicant Jennifer Madgic City of Bozeman Commissioner/I-Ho Friend Yes, Co-Applicant, Chief Elected Official Douglas Fischer Bozeman City Commissioner/BID Board Liaison Yes Dave Crawford, Padraic Stoy, Members Bozeman Sunrise Rotary Yes Downtown Bozeman Partnership Board Members, Business Owners, Property Owners, Stakeholders Downtown Bozeman Partnership Yes, several Addi Jadin Bozeman Parks and Recreation Department Yes Multiple City Admin City of Bozeman No Bozeman Community N/A No The community’s strong involvement is crucial to this project, and letters of support from key partners further substantiate the broad backing and commitment to its success. c) Project Overview/Project Goal: To revitalize a downtown pocket park in honor of a cherished and consequential city commissioner who passed away this year. Like many popular western tourist towns, Bozeman has seen its share of change. This change has been dramatic, and disconcerting as witnessed in recent, post-Covid years, and it has occurred, as much change does, in slower ways that often escape our consciousness until years later. 104 The goal of this project is to help us preserve and celebrate an important piece of our history. Over the past year, our community lost a beloved city commissioner and downtown businessowner, I-Ho Pomeroy. I-Ho was the flrst immigrant to serve on the Bozeman City Commission. She was in the flrst year of her third term when she was diagnosed with brain cancer. As Bozeman has struggled managing a variety of challenges that have produced profound divisions, I-Ho stood out as a force of optimism, harmony and good cheer. This project seeks to recognize and honor I- Ho as a person, her legacy as a downtown businesswoman, her historic achievement as a local elected official who immigrated to Montana from South Korea, and to celebrate and memorialize her efforts to promote a more walkable and bikeable community. The plan is to integrate a variety of community values into this otherwise diminutive, overlooked park in the heart of our city. And the goal is to plan big. In Bozeman’s past, it’s not often that we’ve celebrated our history and it’s certainly not often that we celebrate women. Project Need and Benefit a) What is the need for the proposed project in your community and how will it benefit the economic, historic, or cultural vitality of the downtown commercial districts? The project seeks to greatly enhance and revitalize a very small, neglected pocket park in the heart of our downtown area. It seeks to help beautify an intersection that is otherwise surrounded by parking lots, paved streets, and new high-rise hospitality-oriented construction. It also seeks to improve public health and safety through traffic-calming measures and infrastructure designed to improve the walk- and bike- ability of a busy section of town. This project is expected to help set an example of how we as a city can celebrate the people in our community who have made a difference (like I-Ho) and how we can celebrate the rare, cultural diversity that I-Ho represented. b) How was the project prioritized? Unfortunately, pocket parks are not a community feature that Bozeman has prioritized in our downtown area. We only have two and the one in question is abysmally small and forgotten. Rapid growth and change in the downtown have led to considerable alteration of the built environment and impact on adjoining residential neighborhoods. Residents have expressed stress and frustration over ongoing gentriflcation and displacement. City leaders recognize that we need a project that celebrates the best of who we are, by setting an example of the values we hold close: honoring our people and our past, protecting our environment, and showcasing how we can do things differently. This project flrst and foremost memorializes I-Ho Pomeroy but it is also so much more in providing visitors and residents of our community a place to refiect and flnd peace. Bozeman’s downtown needs a good dose of positivity, and this is the right project at the right time. c) What are the anticipated outcomes of the proposed project – both immediate and long-term. Immediate and long-term outcomes of this project include: 1) celebration and recognition of a cherished leader in our community; 2) increased safety at a busy intersection with the addition of traffic-calming features and lighting; 3) enhancement of the natural environment with the planting of additional trees, shrubs and fiowers, (particularly natives that help promote water conservation, a community value); 4) provision of additional bike racks (also a community value); 5) additional benches as a place for rest and 105 refiection; 6) memorialization of I-Ho’s S. Korean culture with meaningful stories and integrated motifs; 7) placement of a Rotarian Peace Pole to honor I-Ho’s commitment as a Rotarian; 8) expansion of one of the few places in the downtown core that a person can read and learn one great story about our rich history (which will hopefully set an example to continue the trend); 9) establishment of a truly special community place that promotes pride, community character and a sense of belonging; 10) addition to the built environment that helps us remember who were are and what we value. d) Please describe how this project implements a community plan, vision, or community revitalization goal? The Bozeman Community Plan promotes inflll development to promote greater sustainability by promoting a community that relies less on automobiles, and more on biking and walking. Our Climate Action Plan promotes the use of drought-tolerant plants and planting more trees to help reduce the heat effects of climate change and water consumption in our semi-arid environment. Bozeman is in the process of updating our historic preservation program with the idea of doing a better job of incorporating cultural preservation in addition to working to protect and celebrate our historic built environment. e) Please describe the local effort and support for the project to date? To date, the I-Ho Pomeroy Peace Park project has garnered signiflcant community support, including support from local organizations, business owners, and community members who recognize the importance of this space in honoring a beloved city commissioner and local business owner. There has also been extensive coordination with I-Ho’s immediate family, who also operate the family business I-Ho began. The project partners include several City of Bozeman departments such as Economic Development, Transportation, Parks and Recreations, City Manager’s Office, Finance, Community Development and Parking, as well as the Downtown Business Improvement and Urban Renewal Districts, community groups such as Sunrise Rotary and Gallatin Valley Land Trust, and nonproflts dedicated to cultural preservation, urban enhancement, and sustainability. This groundswell of support refiects the community’s commitment to revitalizing the downtown pocket park in I-Ho’s memory, ensuring it becomes a place that honors her legacy and connects the community with natural and cultural elements. Notably, the design concepts for the I-Ho Peace Park were submitted for the “Biggest Small Win” Award at this year’s Annual Montana Downtown Conference—and won, thanks to the votes of downtown professionals from across Montana. We believe this recognition highlights the signiflcance of the project for our community and honors the lasting impact I-Ho had on Bozeman and beyond. Letters of support are included in the attached documentation. Project Readiness a) Project Implementation Responsibilities for the I-Ho Pomeroy Peace Park project will be carefully structured, beginning with the creation of comprehensive construction documents detailing requirements for hardscaping, landscaping, traffic-calming infrastructure, and art installations. These documents will be developed in 106 coordination with Bozeman’s Parks and Recreation Department to ensure alignment with city standards but will be primarily overseen by the City of Bozeman Community Development staff and the Downtown Bozeman Partnership. Once construction documents are flnalized, the project will proceed to a formal public bidding process led by Community Development staff to secure qualifled contractors specializing in sustainable landscaping, infrastructure, and art installation. This process will ensure transparency, competitive pricing, and alignment with the project’s sustainability goals. Local artisans, horticultural experts, and skilled construction teams will be engaged to bring the park’s vision to life. During construction, the Downtown Bozeman Partnership and City Community Development staff will provide regular oversight, coordinating site inspections and managing project timelines to maintain quality control and adherence to the speciflcations. Bozeman’s Parks and Recreation Department will offer support on speciflc elements, particularly those related to sustainable materials and environmental impact, while the primary oversight will remain with Community Development and Downtown Bozeman Partnership staff to ensure the project is completed efficiently and in line with downtown revitalization objectives. b) Cost Estimation Process The initial design for the I-Ho Pomeroy Peace Park has been completed through a term contract between the Downtown Bozeman Partnership and Sanbell, laying the groundwork for a well-planned and thoughtfully designed space. We are now seeking funding to develop and complete the flnal construction and bidding documents, as well as to cover preliminary construction costs. These efforts will be undertaken in close coordination with extensive community fundraising and outreach initiatives, which underscore strong local support for this project. To ensure accurate project cost estimates, preliminary quotes were gathered from local contractors, landscape architects, and artists for each major project component, including multimodal installations, planting materials, art installations, and essential structural elements like benches and bike racks. Additional quotes for lighting and irrigation systems, along with material costs for native plants and drought-tolerant landscaping, have been included to maintain budget precision. Special efforts have been made to secure bids for culturally signiflcant elements, such as the Rotarian Peace Pole and South Korean-inspired motifs, which will require skilled craftsmanship to honor I-Ho’s legacy in a meaningful way. To date, Sanbell has completed Tasks 1, 2 and 3 of the Design Phase and has provided an estimate for Tasks 4 and 5, attached. This includes preparation of Construction Documents, Bidding Assistance, and Construction Administration through project completion. Sanbell has also provided an Opinion of Cost for the completion of the project, attached. The total project cost is estimated at approximately $320,000. Relevant quotes and bids are attached to support these cost estimates. c) Matching Funds and Funding Gaps Matching funds for the I-Ho Pomeroy Peace Park project have been secured from several committed sources, including The Downtown Bozeman Urban Renewal District, Bozeman Parks in Lieu and the Bozeman Streets Division. Additional verbal commitments have also been received from organizations and individuals such as Bozeman Sunrise Rotary and Delaney and Company, refiecting broad community 107 investment. The City of Bozeman has further pledged to fund a portion of the construction phase, underscoring municipal support for this meaningful initiative. The project beneflts from valuable in-kind contributions as well, including donated materials, volunteer labor, and specialized technical expertise from local artisans, all of which have been carefully documented and included with this application. This combined support meets the matching requirements to move forward into the construction phase. However, a funding gap remains, which we are actively addressing through continued community fundraising efforts and pursuit of small supplemental grants. Given the strong community enthusiasm for this project, we are confldent that these efforts will close the gap, allowing us to bring the vision for I-Ho Pomeroy Peace Park to full realization. d) MMS Quarterly Report Submission Status The Downtown Bozeman Partnership has consistently submitted all Montana Main Street (MMS) quarterly reports on time. The latest report is attached to demonstrate our compliance and accountability in managing MMS-related initiatives. e) Project Budget Funding Source Amount Committed Commitment Status Source of Funds Montana Main Street Grant $100,000 Pending MMS Program Bozeman Cash-in-lieu of Parkland $26,993 Firm City Park Funds STR20 Multimodal Improvements $25,000 Firm Bozeman Streets Division Downtown Urban Renewal District $20,000- $30,000 Firm, Amount TBD Design Documents/Infrastructure Improvements Fundraising Initiatives (construction phase) ~$75,000 Pending Community Events/Non-proflts Additional Grants & City General Fund Support (construction phase) ~$75,000 Pending Local Foundations/City of Bozeman/In-Kind Donations Note: Seeking in-kind donations will also be a key aspect of this project, enhancing the value through collaborative contributions of materials, services, and volunteer hours. Both flnancial and in-kind support will fund essential project elements like native landscaping, art installations, and safety infrastructure, fostering a comprehensive revitalization that thrives on community collaboration, input, and hands-on involvement. f) Project Implementation Schedule Below is the proposed timeline for the I-Ho Pomeroy Peace Park project, outlining key tasks and deliverables to ensure smooth and timely project execution: 108 109 APPENDIX A Application Eligibility Screening Checklist Please fill out this checklist. 1. Are you a Montana Main Street community member? If you select no, you are not eligible. Yes 2. When did your community become a member? 2023 3. Has your community previously received a Montana Main Street grant? No 4. If yes to number 3, what year did your community receive the grant? N/A 5. Has your application been certifled by the applicable local government Chief Executive, Mayor, or City Manager? Yes, Commissioner Jennifer Madgic. Please note: that there is also firm verbal support from the Bozeman Mayor and City Manager. 6. Is your community up to date with quarterly reporting? Yes 7. Does your community currently have an active Montana Main Street grant? No 8. Did you contact the Montana Main Street program prior to applying? Yes Attachments: Letters of Support, I-Ho Peace Park Final Design Concepts, Cost Estimates (2) 110 October 18th, 2024 I-Ho Pomeroy Peace Park EXISTING POCKET PARK 111 October 18th, 2024 I-Ho Pomeroy Peace Park PRECEDENT IMAGES 112 October 18th, 2024 I-Ho Pomeroy Peace Park OVERALL CONCEPT PLAN Legend 1 1 3 3 3 22 4 4 4 4 5 5 6 6 7 7 8 8 9 9 9 10 10 11 12 13 13 12 12 11 Existing Pocket Park w/ Red Chair Concrete Seat Walls New Cherry Tree (Purple Leaf Sand Cherry) New Wood Screening Decorative Boulders + Rock Garden New Street Tree I-Ho Pomeroy Peace Park - See Next Page New Drought Tolerant Plantings New Bioretention Bump Outs Existing ADA Parking & Access Aisle Remove 2 Parking Stalls for Park Existing Street Parking New Bike Parking / Seating Nook Not to Scale N Black Ave.E Mendenhall St. 113 October 18th, 2024 I-Ho Pomeroy Peace Park POCKET PARK CONCEPT PLAN Not to Scale Legend 1 1 1 1 1 3 3 2 2 2 4 4 5 5 5 5 6 6 6 6 7 7 8 8 9 9 9 9 10 10 10 1010 11 11 12 12 12 12 13 13 13 14 14 14 14 14 14 14 15 15 16 17 18 19 19 18 18 18 17 16 16 16 Concrete Seat Wall (18” height) Concrete Seat Wall Sign New Cherry Tree (Purple Leaf Sand Cherry) Arch Planter Pot New Bench New Pavers to expand existing park paver area New Garden Planting Peace Pole Existing Trees Existing Boulders Bioretention Plants (~24” height or less) New Safer Pedestrian Crossing Curb Cuts for Stormwater Existing Curb Line Existing Storm Drains New Curb Existing Light Post Potential Sculpture Location 114 October 18th, 2024 I-Ho Pomeroy Peace Park POCKET PARK ISO VIEW Not to Scale Detail Callouts 1 1 3 3 3 5 5 2 2 4 4 Metalwork, can be backlit Magpie Story - the 7 Magpies I-Ho’s Memorial Plaque / Korean Tiger Art Magpie Story - the Shepard Magpie - the Celestial Maiden 115 October 18th, 2024 I-Ho Pomeroy Peace Park POCKET PARK CORNER PERSPECTIVE Not to Scale Detail Callouts 1 1 3 5 5 3 3 4 4 2 2 Metalwork - can be backlit Magpie Story - the 7 Magpies Skate Stops I-Ho’s Memorial Plaque / Korean Tiger ArtMagpie Story - the Shepard 116 October 18th, 2024 I-Ho Pomeroy Peace Park POCKET PARK ENTRANCE PERSPECTIVE Not to Scale Detail Callouts 1 1 3 4 43 2 2 I-Ho’s Memorial Plaque Korean Tiger ArtMagpie Story - the 7 Magpies Magpie Story - the Celestial Maiden 117 October 18th, 2024 I-Ho Pomeroy Peace Park POCKET PARK INTERIOR PERSPECTIVE Not to Scale Detail Callouts 1 11 2 2 Values of I-Ho (Joy, Love, Community) Custom Benches 118 October 18th, 2024 I-Ho Pomeroy Peace Park BIKE PARKING VIEW Not to Scale Detail Callouts 1 1 3 4 4 3 2 2 Metalwork - can be backlit Magpie Story - the 7 Magpies Bike Parking / Seating NookMagpie Story - the Shepard 119 MEMORANDUM PAGE 1 OF 2 NOVEMBER 2024 MEMORANDUM To: Ellie Staley, Downtown Bozeman Partnership From: Kendra Piedalue, Sanbell Date: 11/12/2024 Reference: URD #DTN24-002 I-Ho Peace Park, Project #24006.03 This memo provides additional information as requested for Task 4 “Construction Documents” and Task 5 “Bidding Assistance and Construction Administration” for the City of Bozeman Urban Renewal District Term Contract for Task Order #DTN24-002. I understand that this additional information will be used for grant application and fundraising purposes. The existing contract is billed on a time-and-materials basis. The following fee estimate is a further estimate for the services listed and will continue to be billed on a time-and-materials basis. Task Scope Item Fee Task 4 Construction Documents – T&M Project Management & Coordination $5,500.00 Survey $3,500.00 Landscape Arch. Construction Documents & City Submittals $18,000.00 Civil Construction Documents & City Submittals $19,500.00 Drainage Report $6,800.00 Traffic Coordination $2,000.00 Task 5 Bidding Assistance & Construction Administration – T&M Project Management & Coordination, Meetings $6,800.00 Submittal Review + RFI $6,200.00 Site Visits, Inspections, As-Builts $19,200.00 Bidding $6,000.00 T&M Total $93,500.00 120 MEMORANDUM PAGE 2 OF 2 NOVEMBER 2024 Sanbell met with the City of Bozeman on November 7, 2024 to conduct a Pre-Application meeting. During that meeting, City staff informed us that the project will have two review phases – one for the park and second for the curb bump outs. The park will require a Site Plan Modification Application and the curb bumps outs will require an Infrastructure submittal and drainage report. The estimated fee for construction documents includes both phases and submittals. However, we are anticipating one construction phase. As stated previously, we are currently under contract for construction documents, bidding assistance, and construction administration and will continue to bill on a time-and-materials basis. Please let us know if you require additional information for grant applications or fundraising. 121 Date:Project No.:24006.03Schedule I: CivilItem No.QuantityUnit DescriptionUnit PriceSubtotal1011L.S.Mobilization and Insurance$5,000.00=$5,000.001021L.S.Traffic Control$5,000.00=$5,000.00103250L.F.Sawcut Asphalt$2.00=$500.001041650S.F.Asphalt Removal$2.00=$3,300.00105110L.F.Curb and Gutter Demo$5.00=$550.001061L.S.Stormwater Management and Erosion Control$5,000.00=$5,000.001072E.A.Area Drain$4,500.00=$9,000.00108100L.F.Storm Pipe$60.00=$6,000.001091L.S.Unclassified excavation$5,000.00=$5,000.001105C.Y.1 1/2-inch Base Course Gravel-Sidewalk$40.00=$200.0011125C.Y.Infiltration gravels - 1 foot$40.00=$1,000.00112115L.F.Standard curb and gutter$25.00=$2,875.00113100L.F.Square Curb - Retention/Ramps/Asphalt$20.00=$2,000.001142E.A.Standard ADA Ramp with Truncated Domes$1,000.00=$2,000.00115255S.F.6" sidewalk$10.00=$2,550.00116270S.F.Asphalt$4.00=$1,080.001171L.S.Material Removal$5,000.00=$5,000.001183E.A.Reset Existing sign posts$500.00=$1,500.001191L.S.Striping - Intersection and Curb Painting$5,000.00=$5,000.00Schedule I Subtotal=$62,555.00November 12, 2024Engineer's Opinion of Probable CostforBozeman Downtown PartnershipI-Ho's Peace Park Page 1 of 2 122 Schedule II: LandscapeItem No.QuantityUnit DescriptionUnit PriceSubtotal2011L.S.Mobilization and Insurance$10,500.00=$10,500.002022L.S.Archways$5,000.00=$10,000.0020332L.F.Irrigation Sleeving$2.00=$64.002041L.S.Rock, Debris, Concrete Removal$5,000.00=$5,000.0020535C.Y.Screened Topsoil$50.00=$1,750.002061900S.F.Grade Prep$1.50=$2,850.002071L.S.POC for Irrigation$3,500.00=$3,500.002081L.S.Irrigation Clock$1,000.00=$1,000.002092400S.F.Area for Drip$1.50=$3,600.002104E.A.Trees$900.00=$3,600.0021156E.A.5 Gallon Shrubs$90.00=$5,040.0021290E.A.1 Gallon Perennials$60.00=$5,400.002133E.A.Benches$3,000.00=$9,000.0021411E.A.Boulders$650.00=$7,150.00215200L.F.Concrete Edging$15.00=$3,000.002163E.A.Planters$500.00=$1,500.0021735S.F.Metal Work$50.00=$1,750.00218300S.F.Pavers$38.00=$11,400.002196E.A.Bike Racks$700.00=$4,200.002201E.A.Peace Pole$500.00=$500.002211L.S.Landscape Lighting$6,000.00=$6,000.002221L.S.Arborist $4,000.00=$4,000.00223180S.F.Concrete Seat Walls$120.00=$21,600.0022435E.ASkateboard Stops$25.00=$875.00Schedule II Subtotal=$123,279.00Construction Subtotal=$185,834.00Construction Subtotal Plus Contingency=$213,709.10Administrative FeesConstruction Staking3.50%=$7,479.82Geotechnical Services and Materials Testing2.00%=$4,274.18Subtotal of Administrative Fees=$11,754.00Construction Total and Administrative Fees = $225,463.10Notes:Costs based on Sanbell concept design drawings dated 10/18/2024Mobilization and Insurance based on percentage of total schedule cost8.5%Construction contingency15%All items are complete and in place.Sanbell cannot warrant that any opinions of probable cost provided by Sanbell will not vary from actual costs incurred by the client. Sanbell has no control over the cost or availability of labor, equipment, materials, or over market conditions or the Contractor’s method of pricing. Sanbell makes no warranty, express or implied, that the bids or the negotiated cost of the work will not vary from Sanbell's opinion of probable cost.Page 2 of 2 123 Nov. 13, 2023 Douglas Fischer Bozeman City Commission 121 N. Rouse Ave. Bozeman, MT 59715 Montana Main Street Program Grant Montana Department of Commerce P.O. Box 200523 Helena, MT 59620-0523 Dear Main Street Grant Review Committee: As the commissioner appointed to replace the late Commissioner I-Ho Pomeroy, I feel a special connection to her work, her legacy of community service, and to this effort to develop and revitalize the I-Ho Pomeroy Peace Park. I fully support the the Montana Main Street Grant application submitted by the Downtown Bozeman Partnership for the I-Ho Pomeroy Peace Park. Commissioner Pomeroy did much for the community that I believe the Montana Main Street program also values and promotes: • Tireless in fostering cultural connections and promoting economic vitality • Always encouraging and supporting small businesses • Invested in a thriving, dynamic, safe and inclusive community The Pomeroy Peace Park will facilitate foot traffic, support local businesses, be a place for community and connection. Public art installations will honor I-Ho’s legacy and passions, blending native Montana landscapes with influences from South Korea, creating a unique cultural landmark for residents and visitors alike. The park project is an important part of Bozeman's efforts to create a stronger, sustainable downtown core that supports the entire community. I-Ho would be a champion for this. Your support would be a critical step forward, and I encourage your full consideration of our proposal. Warmly, Douglas Fischer Bozeman City Commissioner dfischer@bozeman.net 124 42 W. Main Street Bozeman, MT 59715 November 10, 2024 Montana Main Street Program Grant P.O. Box 200523 Helena, MT 59620-0523 Dear Main Street Grant Review Committee: As a 20-year resident and business owner in downtown Bozeman, as well as the chairperson of the Downtown Bozeman Association board, I want to offer my complete support for the Montana Main Street Grant application submitted by the Downtown Bozeman Partnership for the development and revitalization of the I-Ho Pomeroy Peace Park. This project is a wonderful enhancement of a public space, with features that will foster cultural education and connection, as well as promote economic vitality. The I-Ho Pomeroy Peace Park project would provide an urban community space that celebrates a wonderful community member through I-Ho Pomeroy’s abiding love for her chosen home of Montana and its outdoor beauty, as well as her Korean birthplace—and in the process, provides an inspiring urban community space. Specifically designed to encourage connections between nature and community, the park will feature spaces for reflection, cultural exchange, and engagement with the outdoors. Public art installations will honor I-Ho’s passions and legacy, blending native Montana landscapes with influences from South Korea, creating a unique cultural landmark for residents and visitors alike. In line with the goals of the Montana Main Street Program, this park’s revitalization will encourage foot traffic, support small business, and attract new visitors—thereby contributing to local economic growth. Moreover, the project embodies our commitment to creating a safe, inclusive, and dynamic public space that serves all members of the community. This grant is of great value in making a difference in increasing community engagement and pride, and in supporting the further development of a downtown that constantly strives to be connected and thriving. The realization of the I-Ho Pomeroy Peace Park Project is a critical step toward our shared vision for a stronger, more sustainable future for downtown Bozeman and our community at large. Thank you in advance for your consideration. Respectfully submitted, B. Noelle Babs Noelle Owner, Alara Jewelry [406-522-8844 | babs@alarajewelry.com] Chair, Downtown Bozeman Association board 125 Natalie Van Dusen Chief Caffeinator Treeline Coffee Roasters Montana Main Street Program Grant Montana Department of Commerce P.O. Box 200523 Helena, MT 59620-0523 Dear Main Street Grant Review Committee, As a dedicated member of the Bozeman community and owner of Treeline Coffee, I am thrilled to offer my full support for the Montana Main Street Grant application submitted to help bring the I-Ho Pomeroy Peace Park project to life. This initiative holds incredible potential for revitalizing this area of our downtown, enriching our public spaces, and strengthening the cultural and economic ties that make our community unique. The vision for the I-Ho Pomeroy Peace Park is to create a vibrant, inclusive urban space that blends Montana’s natural beauty with artistic elements inspired by I-Ho’s passion for the outdoors, her connection to Montana, and her South Korean heritage. This thoughtfully designed space will provide a place for reflection, cultural exchange, and active engagement with nature. By incorporating art installations that honor I-Ho’s legacy, the park will beautifully bridge Montana’s landscapes with South Korean influences, creating a truly special landmark for residents and visitors alike. The I-Ho Pomeroy Peace Park project isn’t just about revitalizing a physical space; it’s about cultivating a safe, welcoming, and dynamic environment that everyone can enjoy. We recognize the vital role this grant can play in bringing this vision to fruition, strengthening our shared commitment to a vibrant and connected downtown Bozeman. Thank you for considering this proposal. I look forward to collaborating on this incredible endeavor for the benefit of all who call Bozeman home. Cheers, Natalie Van Dusen Chief Caffeinator natalie@treelinecoffee.com 126 Jennifer Madgic Bozeman City Commissioner 121 N. Rouse Ave Bozeman, MT 59715 November 11, 2024 Montana Main Street Program 301 S. Park Ave Helena MT 59620 Dear MMS: Many thanks to those involved over the years with the Montana Main Street Program. Montana communities are lucky to have this program providing much-needed guidance and expertise in making our main streets the best they can be. Bozeman, MT is one such city that is grateful to be a member community. As a resident of Bozeman for the past 25 years and City Commissioner for the past four years, I have witnessed a great deal of community change and challenges. This past year, the Bozeman City Commission faced one such challenge, witnessing the passing of one of our beloved and longest-serving commissioners. Commissioner I-Ho Pomeroy. I-Ho was diagnosed over a year ago with aggressive glioblastoma. She passed away March 12, 2024. I had the good fortune of serving with I-Ho for three years. As a Bozeman City Commissioner for over a decade, I-Ho brought her expertise as a downtown businessowner and her experience as a woman who immigrated to Montana from South Korea. The city was richer for her participation and we are all grateful for the joy she spread in everything she did. I can’t think of a better use of Montana Main Street resources than dedicating a downtown pocket park in honor of I-Ho. This park would celebrate the legacy of a Bozeman businesswoman who introduced our community to her Korean culture through food, traditions, language and respect. As much of our downtown area is experiencing rapid transformation, this small park will be a place that provides a respite from that change, offering much-needed reflection on a piece of our history that was extraordinary. Thank you for the opportunity to participate in the Montana Main Street Program. Bozeman is better for it. Sincerely, Jennifer Madgic Bozeman City Commissioner 127 Montana Main Street Program Grant Montana Department of Commerce P.O. Box 200523 Helena, MT 59620-0523 Dear Main Street Grant Review Committee, I am writing to express my full support for the Montana Main Street Grant application submitted by the Downtown Business Partnership for the development and revitalization of the I-Ho Pomeroy Peace Park. This project holds tremendous promise for our community by enhancing our public spaces, fostering cultural connections, and promoting economic vitality. The I-Ho Pomeroy Peace Park project envisions an inspiring urban community space that harmonizes the urban environment with natural and artistic elements celebrating I-Ho’s deep love for the outdoors, Montana, and South Korea. Designed to foster connections between natural elements and community, the park will feature spaces for reflection and cultural exchange. Public art installations will honor I-Ho’s legacy and passions, blending native Montana plantings with influences from South Korea, creating a unique cultural landmark for residents and visitors alike. In line with the goals of the Montana Main Street Program, the park’s revitalization will contribute to local economic growth by encouraging foot traffic, supporting small businesses, and attracting new visitors to our area. Moreover, the project embodies our commitment to creating a safe, inclusive, and dynamic public space that serves all members of the community. We recognize the value of this grant and the difference it can make in fostering community pride, increasing engagement, and supporting our ongoing efforts to develop a thriving and connected downtown. The I-Ho Pomeroy Peace Park project represents a critical step toward realizing our shared vision for a stronger, more sustainable future for Downtown Bozeman and the larger community. Thank you for considering this proposal. We look forward to working together to bring this vision to life for the benefit of all. Warm regards, Addi K. Jadin Park Planning and Development Manager ajadin@bozeman.net 128 11/12/2024 Montana Main Street Program Grant Montana Department of Commerce P.O. Box 200523 Helena, MT 59620-0523 Dear Main Street Grant Review Committee, The Bozeman Sunrise Rotary Club would like to express our support for the I-Ho Pomeroy Peace Park project. I-Ho was a long-time member of our club and in her time with us, she gave her heart and spirit to Bozeman and to the world. Whenever there was a natural disaster or someone who needed help, she would quickly organize a fundraiser at her restaurant, I-Ho’s Korean Grill. She would provide all the food. She would ask for volunteers and give all the proceeds of the day to the hurricane relief fund, the earthquake recovery or any number of other great causes. One mission of Rotary International is to promote peace, goodwill and better understanding among all people of the world. We do that by doing service projects, building fellowship and by embracing people from everywhere. I-Ho traveled with us to do service work in Nepal, where we have helped many rural elementary schools improve educational opportunities to children. On our trips, I-Ho talked with children, teachers and administrators to learn how we could best be of service. She was passionate about helping people and about building peace. I-Ho also stepped up to be a City Commissioner. She served Bozeman for many years, giving her time and talents back to her community. And now it is time for our community to give back to her legacy by creating somewhere others can sit, talk, and enjoy a beautiful outdoor space. The park will be a reminder to residents and visitors of the value of community and of serving others. In Rotary, our motto is “Service Above Self” and I-Ho Pomeroy certainly personified that ideal with great enthusiasm. She was a wonderful role model. We hope the Montana Main Street Program will join our club and the other sponsors of this wonderful project. Thank you! Warm regards, Padraic Stoy Bozeman Sunrise Rotary Club President padraic.stoy@gmail.com 129 Jeremiah Dawson Owner/Manager Vino per Tutti Montana Main Street Program Grant Montana Department of Commerce P.O. Box 200523 Helena, MT 59620-0523 Dear Main Street Grant Review Committee, I am writing to express my full support for the Montana Main Street Grant application submitted by the Downtown Bozeman Partnership for the development and revitalization of the I-Ho Pomeroy Peace Park. This project holds tremendous promise for our community by enhancing our public spaces, fostering cultural connections, and promoting economic vitality. The I-Ho Pomeroy Peace Park project envisions an inspiring urban community space that harmonizes the natural environment with artistic elements celebrating I-Ho’s deep love for the outdoors, Montana, and South Korea. Designed to foster connections between nature and community, the park will feature spaces for reflection, cultural exchange, and engagement with the outdoors. Public art installations will honor I-Ho’s legacy and passions, blending native Montana landscapes with influences from South Korea, creating a unique cultural landmark for residents and visitors alike. In line with the goals of the Montana Main Street Program, the park’s revitalization will contribute to local economic growth by encouraging foot traffic, supporting small businesses, and attracting new visitors to our area. Moreover, the project embodies our commitment to creating a safe, inclusive, and dynamic public space that serves all members of the community. All things that I-Ho herself strived for in her life and service to our community. We recognize the value of this grant and the difference it can make in fostering community pride, increasing engagement, and supporting our ongoing efforts to develop a thriving and connected downtown. The I-Ho Pomeroy Peace Park project represents a critical step toward realizing our shared vision for a stronger, more sustainable future for Downtown Bozeman and the larger community. Thank you for considering this proposal. We look forward to working together to bring this vision to life for the benefit of all. Warm regards, Jeremiah Dawson Owner/Manager C. 406.595.4788 - E. Dawson.jeremiah.90@gmail.com 130 Memorandum REPORT TO:City Commission FROM:David Fine, Economic Development Program Manager Brit Fontenot, Economic Development Director SUBJECT:Authorize the City Manager to Sign a Task Order 007 with Sanbell for Planning Services for Applications for Annexation and Initial Zoning for City- owned Property on Fowler Avenue MEETING DATE:December 10, 2024 AGENDA ITEM TYPE:Agreement - Vendor/Contract RECOMMENDATION:Authorize the City Manager to sign Task Order 007 with Sanbell for planning services for applications for annexation and initial zoning for City-owned property on Fowler Avenue. 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 City currently owns property along Fowler Avenue. The construction of Fowler Avenue will make the property (referenced as Tracks 3 and 4) developable for affordable housing. Staff intends to solicit proposals for the development of an affordable housing project on the site through the RFP process. Currently, the property is a county in-holding wholly surrounded by the City. In an effort to get more comprehensive proposals, staff proposes annexing and zoning the property in advance of the RFP. Task Order 007 includes planning services for the annexation and initial zoning of Tracks 3 and 4. A detailed scope of services is attached. UNRESOLVED ISSUES:None. ALTERNATIVES:As recommended by the Commission. FISCAL EFFECTS:Sanbell will bill for services up to $35,900 on a lump sum basis determined by the percentage completion method. $35,900 is available in the Community Housing Program budget. Attachments: Task Order 007_SOW_Fowler Annex and ZMA_120224.pdf Report compiled on: December 2, 2024 131 132 City of Bozeman Economic Development Department Scope of Work – Task Order No. 007 Fowler Annexation and ZMA Assistance 12/2/2024 Sanbell – Rocky Mountain is pleased to provide this scope of work for planning services for the applications for annexation and initial zoning for Tracts 3 and 4. This work will be completed as a part of the Economic Development Term Contract for architectural and engineering services. A detailed list of assumptions and scope of services for the project are outlined below. The legal descriptions of the properties are as follows: Tract 4: S02, T02 S, R05 E, ACRES 10.03, TR 4 W2W2SW4 Tract 3: S03, T02 S, R05 E, ACRES 9.979, TRACT 3 E2E2SE4 & W2W2SW4 SEC 2 LESS RW Scope of Work: 1. Project Coordination This phase of the project will include project initiation, client meetings, phone calls, and project management throughout the project. 2. Tract 3 and 4 Annexation and Initial Zoning Application This phase includes preparing an annexation application and submittal to the City of Bozeman. The work consists of preparing the required materials, as outlined in the Annexation Application Checklist and outlined in the Zone Map Amendment Checklist. This task also includes attending the Community Development Board and City Commission public hearings. Specific tasks in this phase include:  Preparation of Annexation Application and ZMA documents including: o City of Bozeman Annexation Application o City of Bozeman ZMA Application o Annexation project narrative o ZMA project narrative o Responses to annexation review criteria o Responses to ZMA review criteria o Application exhibits o Preparation of adjacent owner notification list o Printing and mailing of adjacent owner notification letters o Costs associated with mailing of notification letters o Posting of public meeting signs on properties 133 Task Order No. 007 December 2, 2024 Page 2  Presentations at public hearings. Both the Annexation and ZMA applications will be considered together at the same public hearings. o Attend 1 (one) Community Development Board meeting o Attend 1 (one) City Commission meeting 3. Annexation Agreement and Other Documents Upon approval of the annexation, an annexation agreement will be developed to comply with the terms of annexation. As specific details of the annexation will be developed during the review of the application, this phase will be billed on time and materials basis. Anticipated tasks may include: a. 24” x 36” full-size map of the zone map amendment in PDF format b. Metes and bounds legal description for resolution of zone map amendment c. 24” x36” full size map of the annexation map in PDF format d. Annexation agreement e. Develop and File with the County Clerk and Recorder’s office executed Right to Protect Creation of Special Improvement Districts (SIDs) for applicable districts Exclusions: This scope of work does not include any platting, certificate of survey or other legal documents for dedication of right-of-way or creation of parcels. Should that work be desired, a separate task order will be proposed. Project Staff: Project Manager: Lauren Waterton, Director of Land Development Senior Quality Review: Chris Naumann, Bozeman Branch Manager Additional Staff: Tom Hansen, Staff Landscape Designer/GIS Fees and Billing Arrangements: Phase Fee 1. Project Management $6,100 2. Annexation and Initial Zoning Application $21,800 3. Annexation Agreement and Other Documents T&M, Est. of $8,000 Total, Not to Exceed $35,900 Sanbell – Rocky Mountain will bill for its services on a lump sum basis for Phases 1 and 2 and a Time and Materials basis for Phase 3 for a not to exceed amount of $35,900.00. Sanbell – Rocky Mountain shall submit invoices to the Client for work accomplished during each calendar month. Project Schedule: The anticipated schedule for this project will depend upon the City of Bozeman's review and application schedule. Submittal of applications will be within 2 months of notice to proceed. 134 Memorandum REPORT TO:City Commission FROM:Mitch Overton, Parks & Recreation Director Alex Nordquest, Forestry Division Manager SUBJECT:Authorize the City Manager to sign a Professional Services Agreement with Green Infrastructure Center for Tree Canopy Coaching MEETING DATE:December 10, 2024 AGENDA ITEM TYPE:Agreement - Vendor/Contract RECOMMENDATION:Authorize the City Manager to sign a Professional Services Agreement with Green Infrastructure Center for Tree Canopy Coaching STRATEGIC PLAN:6.3 Climate Action: Reduce community and municipal Greenhouse Gas (GHG) emissions, increase the supply of clean and renewable energy; foster related businesses. BACKGROUND:The Forestry Division has been developing Branch Out Bozeman: Urban Forest Initiative as a volunteer & education effort for improving our tree canopy. Key partners include local nonprofit Gallatin Watershed Council and the City's GIS Division. Having successfully been awarded grant funding from the Montana Dept of Natural Resources - Urban & Community Forestry, we now seek to develop mapping tools for urban tree canopy metrics to display on a new public website for Branch Out Bozeman. The Green Infrastructure Center is a leading expert in developing such tools and is offering their services to train and coach the City's GIS staff to identify the most effective metrics and design mapping layers to communicate our goals to the public. This item was previously brought to City Commission on October 8th, 2024. It's been resubmitted following revision requests from the contractor (Contractor's Representative changed; clarifications on Worker's Compensation for strictly virtual work sessions). UNRESOLVED ISSUES:None. ALTERNATIVES:Continue to rely on existing GIS resources, which are not uniquely suited for this goal. FISCAL EFFECTS:These professional services would be fully funded by a grant awarded from the Montana Dept of Natural Resources, Urban & Community Forestry. The grant match requirement would be filled via staff time dedicated to the project. 135 Attachments: Exhibit A - GIC Tree Canopy Coaching Scope of Services.pdf PSA Green Infrastructure Center Tree Canopy Coaching - Revised Final Version.pdf Report compiled on: November 22, 2024 136 2/16/2024 414 E. WATER ST, CHARLOTTESVILLE, VA 22902 WWW.GICINC.ORG Exhibit A – Scope of Services City of Bozeman, Montana – Canopy Coaching by the Green Infrastructure Center Inc. 137 1 Contents 1. Work Scope for City of Bozeman Montana Tree Canopy Technical Support .................. 1 1.1 Introduction ......................................................................................................................................................... 1 1.2 Work Scope for Coaching ..................................................................................................................................... 2 Task 1 Canopy Coach Assistance: .......................................................................................................................... 2 Task 1 Deliverables: ............................................................................................................................................... 4 2. GIC Qualifications, Legal Information and Staffing ........................................................ 4 2.1 Qualifications ....................................................................................................................................................... 4 2.2 Legal Information: ............................................................................................................................................... 5 2.3 Project Staffing .................................................................................................................................................... 5 Stuart Sheppard, GIS Analyst ................................................................................................................................. 5 Matthew Lee, Director of Forest Programs ........................................................................................................... 6 1. Work Scope for City of Bozeman Montana Tree Canopy Technical Support The following information is the proprietary information from the Green Infrastructure Center Inc. and may not be used to construct general proposal bids for public dissemination. This is provided for informational purposes only. This is a price quote only. 1.1 Introduction The Green Infrastructure Center (GIC) is the nation's leading expert in Green Infrastructure Planning. The GIC helps cities and counties map, assess, evaluate and conserve their natural green assets. The GIC is able to work at any scale and has created models and maps for more than 50 communities ranging from regions to counties to cities, towns and sites. The GIC can assist the City of Bozeman by providing training and coaching to the city’s GIS staff on identifying canopy metrics to report out to the general public and subsequent analyses to derive those metrics. GIC mapped the land cover and tree canopy of the city in the spring and summer of 2023 and processed the data further to identify potential planting areas (PPA), potential planting spots (PPS) and potential tree canopy (PTC). The city is interested in staff learning how to use GIC’s models to recreate the work with flyover 138 2 data that is being collected periodically every two years. GIC staff can train and coach city staff in its process and methods using a variety of curriculum through instructional training videos, documents and scheduled 1-on-1 remote workshops. The total budget is inclusive of all labor, overhead and materials. It includes access to instructional materials produced by GIC and GIS support coaching of city staff through virtual workshops. 1.2 Work Scope for Coaching Task 1 Canopy Coach Assistance: The GIC will collaborate with city staff and local stakeholders in a series of workshops to identify canopy and ecosystem services metrics for a website dashboard on Bozeman’s urban forest. Once metrics have been identified, GIC will train the city’s GIS staff how to calculate and analyze for those metrics using existing toolboxes GIC has developed. The types of analyses include but not limited to: identifying potential planting areas, potential planting spots, potential tree canopy, stormwater calculations, urban heat island and air quality. The trainings will be a mix of multimedia (videos, documents, web pages, etc.) and 1-1 virtual training sessions and workshops. Below is a breakdown of the anticipated number of workshops and training sessions. All multimedia content will be given to the city to use for reference or for use with new hires or other partners. Steps/milestones o GIC and B.O.B. hold several workshops to discuss goals, objectives and metrics for future website and dashboard. o Based on the above discussions, define measures and stats to represent what they will want to monitor with new data acquired over the next 2-year cycle. o GIC and B.O.B. identify existing data sources that are needed or should be included (ex: Census data, surface temperature, soils, etc.) o GIC and B.O.B. Collaborative compile the data and put together in an ArcGIS pro map document. o GIC will coach city staff on the analyses and share any scripts or descriptions of the process. o City staff will be run any kind of measures they want resulting in tables that have the numbers they decide to present. o GIC will provide feedback and support in getting the metrics disseminated in the format of their choice. 139 3 Module Topics covered Description Results Number of meetings Time (hours) Intro - Intro and brain storming session This will be basic intro and conversation about the project. Understanding GIS needs and to identify metrics. 1)Understanding of what we need to start preparing for, identify metrics. 3 14 Module 1: Consolidating and processing the inputs - Processing the data they will be receiving: - Land Cover - NAIP - LIDAR - Surface Temp. - Supporting Vector data Working sessions going through what is available and what is needed. Then processing it to meet the need of the scripts. 1) ArcGIS Pro map document with the base source data to be used in analysis 2) Toolbox 3) Training material PPT and/or video 2 16 Module 2: Creating the Land Cover Map - Creating the GIC methods land cover classification Will cover methods to create land cover map and if one exists how to get into replicable schema 2) Land Cover map 2 16 Module 3: The Potential Planting Area and Exclusions - PPA Exclusions - PPA Will compile and talk about how to build detailed PPA. This may evolve depending on identified needs. 1) High Resolution well defined PPA 2 13 Module 4: The Potentials - Create the potential tree canopy and tree count possible to plant Modeling the future Tree Canopy/Land Cover 1) Modeled Potential Land Cover (Potential TC) 2) Tree Count Potential 2 17 Module 5: Ecosystem Services and Social Justice - Trees and Stormwater analysis - Surface Temperature (heat island) - Social Justice Will create and go into detail what can be done with these data 1) TSW Spatial 2) ST Data 3) Social Justice (CEJST, Census) 2 16 Module 6: Measures - Measures This will be creating replicable tabular results and key measures. 1) Several maps and tables representing values to help decision support 2 16 Module 7: Priorities - Prioritizing where the best places to plant are Using variables decided by city will rank the most important places to plant trees. 1) Priorities analysis to show most important places to plant trees 2 9 Module 8: Presenting the results Tables stats This section could be sprinkled throughout the entire process, but here it's meant as a placeholder for spatial representation of everything created. 1) Tables and maps 2 23 Total time 142 140 4 General Timeline (subject to change depending on scheduling): Week 1-2: Meet several times over a few weeks with B.O.B. stakeholders to discuss what metrics they want to represent on their dashboard. Week 3: Module 1- Consolidating and processing the inputs Week 4: Module 2 - Creating the Land Cover Map Week 5: Module 3 - The Potential Planting Area and Exclusions Week 6: Module 4 - The Potentials Week 7: Module 5 - Ecosystem Services and Social Justice Week 8: Module 6 - Measures Week 9: Module 7 - Priorities Week 10: Module 8 - Presenting the results Task 1 Deliverables: Deliverable 1: The primary deliverable is the consulting and coaching of city staff on how to generate tree canopy data metrics and subsequent analyses using GIC scripts and methods. City staff will be trained in the use of GIC’s more advanced models for predicting available planting areas and future tree canopy along with our models for calculating ecosystem services. Instructional videos and web-based content will be made available for staff and other participants to view and learn as they work through the program and for use for future reference or if new hires. Total Cost: $9,968.18 2. GIC Qualifications, Legal Information and Staffing 2.1 Qualifications The nonprofit Green Infrastructure Center (GIC) was founded in December 2006 to develop and implement new methods for modeling, mapping and planning for natural and cultural assets which we call Green Infrastructure. Green infrastructure includes the interconnected natural systems and ecological processes that provide for outdoor recreation, clean water, air quality and wildlife habitat. Clients include federal, state and local governments, land trusts, and conservation organizations. The GIC specializes in bringing diverse stakeholder groups together to develop green infrastructure plans that meet community needs. The GIC staff have expertise in green infrastructure asset mapping, watershed and forest conservation planning, urban tree canopy assessments, stream habitat restoration, water monitoring, wildlife habitat planning and strategic planning. The GIC has conducted 50 green infrastructure planning projects from multicounty regions, to counties to cities and towns. 141 5 The GIC has built models for green infrastructure in Virginia, North Carolina, South Carolina, Arkansas, New York and a national model of Green Infrastructure landscapes hosted on Esri’s website. GIC has also provided consulting to Michigan, Maryland and other states and regions. GIC is currently mapping tree cover for 15 additional cities and towns. The GIC has extensive experience developing technical communication materials, workshops (classroom and in the field), training sessions, public meetings, and collaborative decision-making processes. The team engages stakeholder groups in creation of consensus-based plans that meet community needs. More information about GIC projects is available at www.gicinc.org/projects.htm 2.2 Legal Information: The Green Infrastructure Center is a non-profit corporation (501)(c)(3) under the federal IRS code and is not owned by individuals nor is it a stock holding corporation. Public charities are technically owned by the people of the United States of America. Therefore, GIC cannot be determined to be a minority or women-owned businesses, as nonprofit corporations do not have owners or stockholders. The GIC’s executive director is a woman and our board includes women as well as members of minority classes. As a not-for-profit corporation, our fees are generally below market rates. GIC’s EIN # is 20-8741849 and the DUNS # is 012419355. Contact: Matthew Lee, Director of Forest Conservation, mlee@gicinc.org Green Infrastructure Center Inc., 414 E. Water St., Charlottesville, VA 22902 T: 434-286-3119; www.gicinc.org 2.3 Project Staffing Stuart Sheppard, GIS Analyst Mr. Sheppard will lead the data development efforts for the project, including data acquisition assistance, preparation, and creation. He has developed habitat models for state and national application and oversees the urban tree canopy assessments and ecosystem services modeling at GIC. He has recently completed canopy maps for 13 communities and has developed land cover assessments for multiple counties and cities in Southern States as well as studies of urban heat islands and impacts to low income and minority communities. He manages the GIC’s mapping and land planning and provides technical assistance to local governments, regional planning agencies, communities, land trusts and conservation groups. He also creates case studies, handbooks and web content. He has considerable experience working with remotely sensed data and in using the data for tree canopy assessments for urban areas. At the GIC, he manages the implementation of 142 6 local green infrastructure planning projects, including liaison government staff and project partners. He has led and contributed to numerous planning projects that incorporated geographic information technologies and spatial analysis to solve problems and support decision making. Prior to joining GIC’s team, he worked at The Nature Conservancy where he spent 17 years as a GIS Specialist and Conservation Data Node Program Manager. He has been an independent contractor for groups such as Forest Inform Partners and was a senior faculty specialist at the University of Maryland, where he managed the university’s Carbon Monitoring System Ecometrica web mapping application. Mr. Sheppard has a Bachelor of Science in Geography from George Mason University. Matthew Lee, Director of Forest Programs Mr. Lee will be consulting with the B.O.B. stakeholders to help identify metrics for the dashboard and analyses to consider. He will also be providing administrative support on the project. Matthew works with communities to determine protection and conservation strategies for natural resources, with a focus on community forests. He is also researching ways to incentivize tree planting and care, on both public and private property, as well as how to maximize landscape connectivity in developing areas. He coordinates several projects for the GIC including the Resilient Coastal Forest projects for Virginia, South Carolina and Georgia. Prior to the GIC he worked as a field botanist for the National Park Service for eight years on diverse projects, from long-term monitoring of fire effects on natural systems and restoring degraded sites, to mapping native plant communities of the Pacific Northwest. He also has worked on tropical reforestation projects in Costa Rica, where he studied biological corridors and landscape connectivity for wildlife. Mr. Lee has a BS degree in Horticulture, with a forestry focus, from Virginia Tech and a Master’s degree in Urban and Regional Planning from Portland State University. Work samples are available on line at www.gicinc.org 143 Professional Services Agreement for GIC Tree Canopy Coaching Page 1 of 11 PROFESSIONAL SERVICES AGREEMENT THIS AGREEMENT is made and entered into this 10th day of December, 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, Green Infrastructure Center, Inc., 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 July, 2025, 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 of $9,968.18 as 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 of $9,968.18. 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: 144 Professional Services Agreement for GIC Tree Canopy Coaching 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 acknowledges that the City requires it to maintain workers’ compensation coverage for the entirety of this Agreement. Contractor shall furnish the City with copies of its workers’ compensation coverage, which must be issued by an insurer licensed and authorized to provide workers’ compensation in Virginia, which is where Contractor’s organization is incorporated, and its employees are employed. Contractor’s workers compensation coverage must meet Virginia’s statutory limits. 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 145 Professional Services Agreement for GIC Tree Canopy Coaching Page 3 of 11 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 this Agreement, the City may elect to represent itself and incur all costs and expenses of suit. 146 Professional Services Agreement for GIC Tree Canopy Coaching Page 4 of 11 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. 147 Professional Services Agreement for GIC Tree Canopy Coaching 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 148 Professional Services Agreement for GIC Tree Canopy Coaching Page 6 of 11 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 Alex Nordquest 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 149 Professional Services Agreement for GIC Tree Canopy Coaching Page 7 of 11 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 Karen Firehock 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 150 Professional Services Agreement for GIC Tree Canopy Coaching Page 8 of 11 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. 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. 151 Professional Services Agreement for GIC Tree Canopy Coaching Page 9 of 11 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. 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. 152 Professional Services Agreement for GIC Tree Canopy Coaching Page 10 of 11 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. 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. 153 Professional Services Agreement for GIC Tree Canopy Coaching Page 11 of 11 **** 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 Green Infrastructure Center By________________________________ By__________________________________ Chuck Wynn, City Manager Karen Firehock, Executive Director APPROVED AS TO FORM: By_______________________________ Greg Sullivan, Bozeman City Attorney 154 Memorandum REPORT TO:City Commission FROM:Kellen Gamradt, Engineer II SUBJECT:Authorize the City Manager to Sign Amendment 5 to the Professional Services Agreement for the Field Survey Term Contract with Sanbell, to Facilitate Design of Upcoming Capital Improvements Projects MEETING DATE:December 10, 2024 AGENDA ITEM TYPE:Agreement - Vendor/Contract RECOMMENDATION:Approve and authorize the City Manager to Sign Amendment 5 to the Professional Services Agreement for the Field Survey Term Contract with Sanbell to Facilitate Design of Upcoming Capital Improvements Projects STRATEGIC PLAN:2.2 Infrastructure Investments: Strategically invest in infrastructure as a mechanism to encourage economic development. BACKGROUND:Attached is a copy of the contract amendment with Sanbell. This amendment will add survey on North 5th Avenue, West Beall Street and West Lamme Street as described in the attached scope of work and payment schedule. These surveys will be used by the City’s Engineering Department for the design of an upcoming water renovations project and will add work to our existing survey contract. Staff has reviewed the amendment and found it to be commensurate with the work involved. The original signed contract with Sanderson Stewart is dated July 12th, 2022. UNRESOLVED ISSUES:None ALTERNATIVES:As Suggested by the Commission FISCAL EFFECTS:If approved, this amendment will increase the fee on a time and materials basis with a cost not to exceed amount of $68,800 from $125,466.00 to 194,266.00. This will be paid for from City’s annual water pipe replacement fund (W03). Attachments: PSA Amendment No 5.docx Amendment 5 - 112124.pdf Report compiled on: November 22, 2024 155 Third Amendment to Professional Services Agreement for Field Survey Term Contract Page 1 of 2 FIFTH AMENDMENT TO PROFESSIONAL SERVICES AGREEMENT THIS FIFTH AMENDMENT TO THE PROFESSIONAL SERVICES AGREEMENT FOR Field Survey Term Contract dated July 12, 2022 (the “Agreement”) is made and entered into this_____ day 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 Sanbell,106 E Babcock Street, Suite L1, Bozeman, MT 59718 hereinafter referred to as “Contractor.” In consideration of the mutual covenants and agreements herein contained, the receipt and sufficiency whereof being hereby acknowledged, the parties hereto agree to amend the Agreement as follows: 1. Addition to Scope of Work. Attached Amendment No.5 1. Addition to Payment. Attached Rate Schedule 2. Agreement still valid. All remaining terms and provisions of the original Agreement remain valid. **** END OF AGREEMENT EXCEPT FOR SIGNATURES **** 156 Third Amendment to Professional Services Agreement for Field Survey Term Contract Page 2 of 2 IN WITNESS WHEREOF,the parties hereto have executed this instrument the day and year first above written. CITY OF BOZEMAN, MONTANA SANDERSON STEWART By________________________________By_____________________________ Chuck Winn, City Manager Print Name: Danielle Scharf Title: Principal/Region Manager APPROVED AS TO FORM By_______________________________ Greg Sullivan, Bozeman City Attorney 157 158 4,5140.1 Miles This product is for informational purposes and may not have been prepared for, or be suitable for legal, engineering, or surveying purposes. Users of this information should review or consult the primary data and information sources to ascertain the usability of the information. Feet 5260 Legend 263 Location 526 11/18/2024 Created By: Created For: Date: Title System Valves Mains Active Abandoned Street Names City Limits World Imagery Low Resolution 15m Imagery High Resolution 60cm Imagery High Resolution 30cm Imagery Citations 1.2m Resolution Metadata 159 OUTSIDE CONSULTANTS SURVEY CREW SERVICES STAFF PERSONNEL SERVICES CHARGE OUT RATES ROCKY MOUNTAIN EFFECTIVE AUGUST 17, 2024 Staff Engineer I $115.00/hour Staff Engineer II $130.00/hour Staff Engineer III $135.00/hour Landscape Designer I $105.00/hour Landscape Designer II $115.00/hour Landscape Designer III $125.00/hour Landscape Architect I $135.00/hour Landscape Architect II $145.00/hour Senior Landscape Architect I $165.00/hour Senior Landscape Architect II $175.00/hour Staff Planner I $100.00/hour Staff Planner II $115.00/hour Planner I $130.00/hour Planner II $145.00/hour Senior Planner I $155.00/hour Senior Planner II $195.00/hour Senior Planner Manager $205.00/hour Right-of-Way Agent $168.00/hour Project Engineer I $145.00/hour Project Engineer II $155.00/hour Senior Engineer I $190.00/hour Senior Engineer II $195.00/hour Senior Engineer Manager $210.00/hour Principal $250.00/hour Expert Witness/Special Consultant $290.00/hour Engineer Intern $90.00/hour Field Survey Technician I $85.00/hour Field Survey Technician II $88.00/hour Staff Surveyor I $115.00/hour Staff Surveyor II $130.00/hour Professional Land Surveyor I $140.00/hour Professional Land Surveyor II $150.00/hour Senior Professional Land Surveyor I $160.00/hour Senior Professional Land Surveyor II $180.00/hour Construction Inspector $88.00/hour ConstructionEngineering Tech. $100.00/hour Senior Construction Engineering Technician $145.00/hour Construction Engineer I $145.00/hour Construction Engineer II $150.00/hour CADD Technician I $100.00/hour CADD Technician II $105.00/hour Designer I $107.00/hour Designer II $110.00/hour Senior Designer I $120.00/hour Senior Designer II $145.00/hour Senior Designer Manager $165.00/hour Project Administrator $100.00/hour Senior Project Administrator $115.00/hour Administrative/Clerical $90.00/hour Senior Administrative/Clerical $115.00/hour Senior Administrative Director $185.00/hour Graphic Artist $115.00/hour Marketing Coordinator $120.00/hour Senior Marketing Coordinator $130.00/hour Marketing Director $185.00/hour 1-Person/2-Person Crew Per Job Survey Equipment $30.00 /fieldwork hour Survey Vehicle Mileage IRS rate/mile + $0.10/mile Scanner Equipment $150.00/hour Scanner Equipment (full day) $1,050/day 1) At cost if independently billed direct to client 2) Cost plus 5% if billed through us INDEPENDENT LABORATORIES 1) At cost if independently billed direct to client 2) Cost plus 5% if billed through us ADMINISTRATIVE EXPENSES Administrative Expenses 3.5% * Including copies, prints, phone, postage, materials, and travel *Based on professional services only, unless modified by contract Vehicle Mileage IRS Rate These rates are updated periodically to reflect market conditions. Rate increases will be reflected in future invoicing. TRAFFIC DATA COLLECTION SERVICES Standard Intersection Count (veh/bike/ped) $30.00/hour Small Roundabout Count (veh/bike/ped) $41.00/hour Large Roundabout Count (veh/bike/ped) $93.00/hour Spot Location Volume (veh/bike/ped) $4.00/lane/hour Spot Location Travel Speeds (veh) $5.00/lane/hour Data Collection Equipment $30.00/count location Rushed Processing (24-hour turnaround) $9.00/processing hour 160 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, Final 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:December 10, 2024 AGENDA ITEM TYPE:Ordinance RECOMMENDATION:Finally 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 designates the property as “Urban Neighborhood” which includes both the 161 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. The Commission provisionally adopt Ordinance No. 2171 on November 26, 2024. 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 27, 2024 162 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 163 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 164 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. 165 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. 166 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 167 REMU 168 REMU 169 Memorandum REPORT TO:City Commission FROM:Professor Otto Stein, MSU Shawn Kohtz, Director of Utilities SUBJECT:Results of the Montana State University Pilot Study of Modern Treatment Wetland Technology at the Bozeman Water Reclamation Facility; A Joint Project Between MSU, DEQ, and the City MEETING DATE:December 10, 2024 AGENDA ITEM TYPE:Plan/Report/Study RECOMMENDATION:Receive results of the Montana State University pilot study of modern treatment wetland technology at the Bozeman Water Reclamation Facility. This is a Joint Project Between MSU, DEQ, and the City, which inform potential use of the technology in a full-scale system at the Water Reclamation Facility. STRATEGIC PLAN:1.1 Outreach: Continue to strengthen and innovate in how we deliver information to the community and our partners. BACKGROUND:Engineered treatment wetlands offer a relatively inexpensive option for tertiary treatment of already high-quality effluent from the City’s Water Reclamation Facility (WRF) and would enable the WRF to further reduce nutrients (nitrogen and phosphorus) prior to discharge to the East Gallatin River. Additional data was necessary to determine removal efficiencies and design criteria for Montana specific conditions; however, rough sizing criteria indicate an area as small as 30 acres would effectively treat the 8.5 million gallons per day (gpd) design flow of the Bozeman Water Reclamation Facility. As part of a greater project to pilot several different wetland technologies, MSU designed, constructed, and monitored water quality from a pilot tertiary wetland treatment system. This project will help the City understand effectiveness and provide a design basis to use modern wetland technology for nutrient removal at the City’s WRF. This technology could prove a cost effective means to provide additional nutrient removal and help meet future discharge requirements associated with the City’s Montana Pollutant Discharge Elimination System (MPDES) permit. This project is a partnership between MSU, the Montana State Department of Environmental Quality (DEQ), and the City. DEQ provided grant funds for the project in addition to the City funds associated with this project per prior 170 Commission approval of funding and an MOU with MSU and DEQ. This presentation will provide a summary of results of the pilot study to date. Professor Otto Stein from MSU and the City Utilities Director Shawn Kohtz will provide a presentation of the pilot study results. UNRESOLVED ISSUES:None ALTERNATIVES:As suggested by the City Commission FISCAL EFFECTS:No fiscal effects are associated with this presentation. However, the 2026- 2030 capital improvement plan (CIP) provides for ongoing data collection using the existing pilot system including $50,000 in each of fiscal years 2026 and 2027. The CIP also includes $525,000 in fiscal year 30 to begin design of a full-scale tertiary wetlands treatment system at the WRF. Report compiled on: November 21, 2024 171 Memorandum REPORT TO:City Commission FROM:David Fine, Economic Development Manager Brit Fontenot, Economic Development Director SUBJECT:Final Vote 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:December 10, 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:The City Commission held a Public Hearing to consider Resolution 5663 approving the Bozeman Yards project as an urban renewal project, which would allow the use of tax increment revenues to reimburse eligible costs. The City Commission heard public comment and closed the public hearing; public comment will not reopen for this agenda item. The Commission has adopted a Rule of 3, which requires at least 3 votes to either approve or deny a motion. There were only three commissioners present at the meeting. A motion to approve Resolution 5663 received two votes in favor of the motion and one vote in opposition to the motion. When this occurs, the Commission schedules an agenda item for a future meeting where absent commissioners can register their votes. The absent commissioners will have reviewed packet materials, watched the video the agenda item including the staff presentation, public comment, commission deliberation and vote. The two previously absent commissioners may vote on the existing motion to approve Resolution 5663. The Commission may ask questions of staff and deliberate on the action item as normal. Please see the linked staff report and background materials for this item. UNRESOLVED ISSUES:None at this time. ALTERNATIVES:At the direction of the City Commission. 172 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 173 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 174 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. 175 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. 176 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 177 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 178 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. 179 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: 33.5/42 180 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. 181 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. 182 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; 183 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. 184 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 185 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 186 Resolution 5663, Approving a Project in the Northeast URD Known as the Bozeman Yards Project A-1 EXHIBIT A [Form of Development Agreement] 187 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 188 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) 189 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, 190 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 191 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)435,173 535,173 700,173 820,173 192 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)568,224 568,224 698,224 818,224 193 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 194 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 195 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. 196 Bozeman Yards BOZEMAN NORTHEAST NEIGHBORHOOD TIF ASSISTANCE REQUEST November | 2024 197 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. 198 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 1 199 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 1 200 Bozeman Yards Bozeman Northeast Neighborhood TIF Assistance Request 5 APPLICATION FORM - PART 1 201 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 1 202 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 203 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 204 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 1 205 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 1 206 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 1 207 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 1 208 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 1 209 Bozeman Yards Bozeman Northeast Neighborhood TIF Assistance Request 14 IMAGES, MAPS, EXHIBITS, PLANS 210 Bozeman Yards Bozeman Northeast Neighborhood TIF Assistance Request 15 Perspective Looking Northwest Perspective Looking South SITE IMAGES - PART 1 211 Bozeman Yards Bozeman Northeast Neighborhood TIF Assistance Request 16 805 North Ida - Perspective Looking Southwest Perspective Looking South SITE IMAGES - PART 1 212 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 1 213 Bozeman Yards Bozeman Northeast Neighborhood TIF Assistance Request 18 SITE DIAGRAM & VICINITY - PART 1 Vicinity Map Existing Zoning Map 214 Bozeman Yards Bozeman Northeast Neighborhood TIF Assistance Request 19 SITE SURVEY 215 Bozeman Yards Bozeman Northeast Neighborhood TIF Assistance Request 20 WORKING SITE PLAN 216 Bozeman Yards Bozeman Northeast Neighborhood TIF Assistance Request 21 FLOOR PLANS - PART 1 217 Bozeman Yards Bozeman Northeast Neighborhood TIF Assistance Request 22 FLOOR PLANS - PART 1 218 Bozeman Yards Bozeman Northeast Neighborhood TIF Assistance Request 23 FLOOR PLANS - PART 1 219 Bozeman Yards Bozeman Northeast Neighborhood TIF Assistance Request 24 FLOOR PLANS - PART 1 220 Bozeman Yards Bozeman Northeast Neighborhood TIF Assistance Request 25 FLOOR PLANS - PART 1 221 Bozeman Yards Bozeman Northeast Neighborhood TIF Assistance Request 26 FLOOR PLANS - PART 1 222 Bozeman Yards Bozeman Northeast Neighborhood TIF Assistance Request 27 ELEVATIONS - PART 1 223 Bozeman Yards Bozeman Northeast Neighborhood TIF Assistance Request 28 ELEVATIONS - PART 1 224 Bozeman Yards Bozeman Northeast Neighborhood TIF Assistance Request 29 PERSPECTIVE IMAGES - PART 1 Conceptual Perspective From NE 805 North Ida - Conceptual Perspective From Southeast 225 Bozeman Yards Bozeman Northeast Neighborhood TIF Assistance Request 30 PERSPECTIVE IMAGES - PART 1 Conceptual Perspective From Sidewalk Conceptual Perspective From Southeast 226 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 4/4 227 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 1 228 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 3/4 229 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 4/4 230 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: 38/42 231 Bozeman Yards Bozeman Northeast Neighborhood TIF Assistance Request 36 PART 2 SOURCES & USE OF FUNDS DEVELOPMENT BUDGET PROJECT COSTS TIF ELIGIBLE EXPENSES 232 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 $65,397,132 233 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 $65,397,132 234 Bozeman Yards Bozeman Northeast Neighborhood TIF Assistance Request 39 SUMMARY - PART 2 235 Bozeman Yards Bozeman Northeast Neighborhood TIF Assistance Request 40 REFERENCE SURVEY - PART 2 236 Bozeman Yards Bozeman Northeast Neighborhood TIF Assistance Request 41 REFERENCE SITE PLAN - PART 2 Note: Conceptual Site Plan 237 Bozeman Yards Bozeman Northeast Neighborhood TIF Assistance Request 42 PROJECT COSTS TOTAL - PART 2 238 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 239 Bozeman Yards Bozeman Northeast Neighborhood TIF Assistance Request 44 PROJECT COSTS LIGHT GREEN - PART 2 240 Bozeman Yards Bozeman Northeast Neighborhood TIF Assistance Request 45 PROJECT COSTS ORANGE - PART 2 241 Bozeman Yards Bozeman Northeast Neighborhood TIF Assistance Request 46 PROJECT COSTS YELLOW - PART 2 242 Bozeman Yards Bozeman Northeast Neighborhood TIF Assistance Request 47 PROJECT COSTS PURPLE - PART 2 243 Bozeman Yards Bozeman Northeast Neighborhood TIF Assistance Request 48 PROJECT COSTS PINK - PART 2 244 Bozeman Yards Bozeman Northeast Neighborhood TIF Assistance Request 49 PROJECT COSTS PINK - PART 2 245 Bozeman Yards Bozeman Northeast Neighborhood TIF Assistance Request 50 PROJECT COSTS BOULEVARDS - PART 2 246 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 $3,666,396 247 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 248 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 249 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. 250 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: 251 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. 252 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 253 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. 254 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 255 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. 256 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 257 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. 258 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. 259 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. 260 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 261 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 262 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. 263 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 264 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] 265 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] 266 20 JACKADOO, LP By: Name: Title: [Signature Page to Development Agreement] 267 A-1 EXHIBIT A PROJECT COSTS 268 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. 269 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. 270 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) 271 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. 272 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 273 F-1 EXHIBIT F 274 Memorandum REPORT TO:City Commission FROM:Chris Saunders, Community Development Manager Erin George, Community Development Interim Director SUBJECT:Review and Approval of the 2024 Impact Fee Service Area Report for Transportation MEETING DATE:December 10, 2024 AGENDA ITEM TYPE:Plan/Report/Study RECOMMENDATION:Consider the Motion: Having reviewed and considered the staff presentation, draft service area report, public comment, and all information presented, I hereby find the 2024 service area report for Transportation meets all requirements and accept the report as the basis for transportation impact fees. STRATEGIC PLAN:7.5. Funding and Delivery of City Services: Use equitable and sustainable sources of funding for appropriate City services, and deliver them in a lean and efficient manner. BACKGROUND:The City of Bozeman first adopted impact fees in 1996 and has used them continuously ever since. The State of Montana authorizes local government impact fees through Title 7, Chapter 6, Part 16, Montana Code Annotated (MCA) [External Link]. An impact fee is defined as: (5) (a) "Impact fee" means any charge imposed upon development by a governmental entity as part of the development approval process to fund the additional service capacity required by the development from which it is collected. An impact fee may include a fee for the administration of the impact fee not to exceed 5% of the total impact fee collected. (b) The term does not include: (i) a charge or fee to pay for administration, plan review, or inspection costs associated with a permit required for development; (ii) a connection charge; (iii) any other fee authorized by law, including but not limited to user fees, special improvement district assessments, fees authorized under Title 7 for county, municipal, and consolidated government sewer and water districts and systems, and costs of ongoing maintenance; or (iv) onsite or offsite improvements necessary for new development to meet the safety, level of service, and other minimum development standards that have been adopted by the governmental entity. 275 In MCA 7-6-1601, Definitions, impact fees are authorized for specifically listed types of facilities including: (7) "Public facilities" means: (c) a transportation facility, including roads, streets, bridges, rights-of-way, traffic signals, and landscaping; The transportation system is locally defined in 2.06.1630 BMC as: "Transportation system means existing or planned collectors or arterial streets, including associated non-motorized travel elements and which are either included on the most current long range transportation plan or the city's impact fee capital improvement program." The City follows its complete streets policy, Resolution 4244 [External link] adopted in 2010, for all street construction, including for projects funded by impact fees. The City uses impact fees to advance the following purposes: Infrastructure concurrency of service increase with demand from new development Equity in funding capital expansion of certain services Public safety Remove barriers from development Implement growth policy and facility plans by increasing capacity to serve new development Cost efficiency from coordinated projects The Community Development Board has been assigned by the City Commission the duties of the Impact Fee Advisory Committee [External Link] to review calculation of fees. An element of this duty is to review and recommend on the service area report (SAR). A key part of the state authorization for impact fees is preparation of a service area report for each fee type. The SAR consolidates key information relating to the future needs for infrastructure, expected means to provide the infrastructure, and the process by which the cost of additional services are assigned to units of new development. A copy of 7-16-1602 MCA that sets required documentation for an impact fee is attached to this agenda item. In addition to the details of the SAR the City also provides required documentation through its Transportation Master Plan [External PDF] and annual capital improvement program and budgets [External link]. The City updates the SAR at least every four years to help ensure the fees are accurate, reflect current construction costs and service needs, and remain roughly proportionate and logically connected to the development that pays the fees. Annual inflation adjustments are applied on January 1st of each year and do not require an update to the SAR. The City hired TischlerBise, a nationally prominent specialist in impact fees, to support the City in updating the impact fee SAR. 276 Staff has reviewed the draft SAR prepared by TischlerBise on behalf of the City and finds that the document meets the requirements of state law for a SAR. The SAR is in writing, the document has been provided to the public for review through the Engage Bozeman website [External Link] as well as the agenda for the Community Development Board meeting and will be in the City Commission agenda. The City has an annual process to update a capital improvement program to schedule construction of public facility capital improvements. As shown in the SAR, actual costs of construction and reasonable estimate of costs have been used, forecast for future needs are provided, necessary facilities to serve future growth are identified, and the appropriateness of a single service area is established. No maintenance or operational costs are included in the calculated fee. All other necessary elements are also provided. The City published formal notice in the Bozeman Daily Chronicle on 10/26/2024, 11/09/2024, and 11/30/2024 of the public hearings before the Community Development Board and City Commission. A news item was included on the City's website, the Engage Bozeman impact fee update project website was established, several publicly available work sessions and training sessions regarding impact fees have been held during the project, and direct notification to interest groups occurred at the beginning of the project. The action through this agenda item is specific to the Transportation impact fee. The City also implements Fire/EMS, water, and wastewater fees. Service area reports for water and wastewater fees are under development and will come forward for public review, Community Development Board recommendation, and City Commission action as they are completed. An updated SAR for Fire/EMS was approved and adopted by the Commission on Oct. 1, 2024. The City has adopted various fiscal policies to guide how revenues and expenditures are made. These are included in the City’s adopted budget [external link], see page 175. An example of relevant policy is: 5. User fees and charges will be used, as opposed to general taxes, when distinct beneficiary populations or interest groups can be identified. User fees and charges are preferable to general taxes because user charges can provide clear demand signals which assist in determining what services to offer, their quantity, and their quality. User charges are also more equitable, since only those who use the service must pay--thereby eliminating the subsidy provided by nonusers to users, which is inherent in general tax financing. Consistent with this policy the City uses impact fees to fund capital 277 improvements to expand service capacity necessary to serve new development. Also consistent with this policy, impact fees are set only to the amount demonstrated as necessary in the SAR to offset the costs due from new construction. Impact fee revenue can be used to pay bonds for capital improvements that otherwise qualify as an impact fee expenditure. All expenses for operations such as personnel and supplies, maintenance, and capital replacement must come from other user fees, assessments, and taxes as authorized by law. Most elements of the 2024 Transportation SAR are very similar to previous SAR although updated data has been used in the forecasts and other calculations. The data requirements established by state law ensure substantial consistency from one SAR to its successor. The primary change is to expand the range of home sizes for which fees are calculated. As better data has become available and a greater range of home sizes is being constructed in the community it is appropriate to consider if an improved fit between construction, expected service demand, and fees charged can be established. It is also necessary to keep the range realistic and reasonably descriptive of expected demand. For example, although there is a demonstrated correlation between home size and occupancy the occupancy of a home can never go below 1 regardless of its size. The expanded range more clearly ties a fee to the lower dwelling occupancy expected in smaller units. Service demand is strongly influenced by occupancy therefore this enables a lower fee to be charged for smaller homes. Bozeman has seen a substantial increase in smaller sized homes, especially in the apartment type configuration, over the past few years. The new SAR includes nine additional size bands to improve fit between fee and demand. A review of building permit sizing for single homes and townhomes over the past 24 months shows that 21% of the homes would have been included in the new size ranges. Staff concludes that this is enough improvement to support using the increased range of sizes. This also supports consistency between fee types as the Fire/EMS SAR uses the expanded size range. Only 4 homes were in the largest of the new upper range categories. Staff concludes that this small number indicates that it is unnecessary to add further to the upper range at this time. Size ranges can be reevaluated with the next SAR. The City Commission approved this expanded range with the recent Fire/EMS SAR update and it has been carried forward with this SAR. Staff recommends adoption of the range proposed in the Transportation SAR to maintain consistency with the recently adopted Fire/EMS SAR which included the expanded size range and maintain a best practical fit between construction and fee characteristics. Since the last SAR, the cost of construction and capital equipment has increased substantially. See page 21 of the SAR. This large increase directly 278 raises the cost of constructing new or expanded streets. The lane cost is also influenced by the nature of projects. The CIP includes several projects that require substantial expense for purchase of right of way. With the rapid increase in land prices in Bozeman that and the additional area for specific projects costs have increased. Since the impact fee is a cost recovery approach the cost of the impact must rise to reflect changing cost of inputs. For context, a simple memo with information from other communities using impact fees in MT is attached. Each community is distinct and cost of service is not comparable from one community to another. Several community's fees have not been updated recently and therefore do not reflect recent cost escalation. Since the question of what other communities are doing comes up every time the service area reports are updated staff provides this information for reference. Impact fees are only one component of a complete transportation funding system. Operations and maintenance activities cannot be funded with impact fees and no such projects are included in the service area report. Operation and maintenance are funded through a combination of street assessments, gas tax transfers from the state, and the arterial and collector levy. See the attached PDF showing the makeup of total transportation capital sources and amounts. The slide does not address non-capital such as wages, cost of supplies, or contributions to the Streamline Bus system. The Community Development Board, in their role as the impact fee advisory committee required by state law, conducted a public hearing on November 18, 2024. A recording of the meeting [External link] is available. Discussion of the impact fee SAR began at 38:30 in the recording. No public comment was received prior to or at the hearing. The Board reviewed the SAR, considered the purpose and function of the fee and how it fit into the overall transportation funding program, considered the increased cost of construction, discussed the change in range of home sizes and the resulting differentiation of costs for different housing types, discussed how the City uses other funding in support of affordable housing and economic development to target community priorities and needs, scope of the work eligible for impact fee funding, and the consequences of charging the fee as calculated or a lesser amount. After consideration of these issues the Board recommended the Commission accept the SAR on a vote of 7-0. UNRESOLVED ISSUES:None. ALTERNATIVES:1. Accept the service area report; 2. Accept with modifications the draft service area report; 3. Reject the draft service area report; or 4. Open and continue the public hearing on the service area report, with specific request to staff to supply additional information or to address specific items. 279 FISCAL EFFECTS:The service area report does not expend funds. It does update the costs per unit of new development to ensure fees meet all legal requirements. Subsequent adoption of the SAR by the City Commission will enable continued operation of the impact fee program to offset capital costs from new construction for Transportation functions. Attachments: Bozeman, MT Impact Fee Report_Transportation_10.17.24.pdf 7-6-1602. Calculation of impact fees -- documentation required -- ordinance or resolution -- requirements for impact fees, MCA.pdf FY26-30_TranspoFundingSources.pdf Other Communities Memo 9-5-2024.pdf Report compiled on: November 27, 2024 280 Transportation Service Area Report and Impact Fee Study Prepared for: Bozeman, Montana October 17, 2024 4701 Sangamore Road Suite S240 Bethesda, MD (301) 320-6900 www.TischlerBise.com 281 Transportation Service Area Report and Impact Fee Study Bozeman, Montana [PAGE INTENTIONALLY LEFT BLANK] 282 Transportation Service Area Report and Impact Fee Study Bozeman, Montana i Table of Contents Executive Summary ....................................................................................................................3 Montana Impact Fee Enabling Legislation ..............................................................................3 Public Facilities ................................................................................................................................ 3 Service Area Report ......................................................................................................................... 4 Legal Framework .....................................................................................................................4 Methodology ..........................................................................................................................6 Conceptual Impact Fee Calculation .................................................................................................. 7 Evaluation of Credits ........................................................................................................................ 7 Maximum Supportable Transportation Impact Fees ..............................................................8 Transportation Service Area Report .........................................................................................10 Service Area ................................................................................................................................... 10 Cost Allocation ............................................................................................................................... 10 Service Demand Units – Person Miles of Travel (PMT) ................................................................... 10 Vehicle Trip Length .................................................................................................................................. 10 Vehicle Trip Length Adjustments .............................................................................................................. 11 Percent of New Trips................................................................................................................................ 11 Trip Occupancy ........................................................................................................................................ 12 Calculation of Service Demand Units - Person Miles of Travel (PMT) .............................................. 14 Existing and Projected Growth in Service Area ............................................................................... 17 Planned Transportation Projects and Cost Components ......................................................19 Transportation Capital Cost per PMT ............................................................................................. 21 Credit for Other Revenues Sources .......................................................................................22 Transportation Personnel and Operations ............................................................................22 Maximum Supportable Transportation Impact Fees ............................................................23 Projected Transportation Impact Fee Revenue .....................................................................26 Trip Exchange Districts ..........................................................................................................27 Capital Improvement Plan ........................................................................................................29 Appendix A: Land Use Assumptions .........................................................................................30 Population and Housing Characteristics ...............................................................................30 Building Permit History .........................................................................................................30 Base Year Housing Units and Population ..............................................................................31 Housing Unit and Population Projections .............................................................................34 Current Employment and Nonresidential Floor Area ............................................................35 Employment and Nonresidential Floor Area Projections ......................................................35 Vehicle Trip Generation ........................................................................................................37 Residential Vehicle Trips by Housing Type ...................................................................................... 37 Residential Vehicle Trips Adjustment Factors ................................................................................. 38 Nonresidential Vehicle Trips .......................................................................................................... 38 Vehicle Trip Projections ........................................................................................................40 Demand Indicators by Dwelling Size .....................................................................................41 Bozeman Control Totals ................................................................................................................. 41 Demand Indicators by Dwelling Size ............................................................................................... 41 Persons by Dwelling Size ................................................................................................................ 42 283 Transportation Service Area Report and Impact Fee Study Bozeman, Montana ii Person by Dwelling Size and Housing Type ..................................................................................... 43 Trip Generation by Dwelling Size .................................................................................................... 46 Vehicle Trip Ends by Dwelling Size .................................................................................................. 47 Vehicle Trip Ends by Dwelling Size and Housing Type ..................................................................... 48 Appendix B: Land Use Definitions ............................................................................................50 Residential Development ............................................................................................................... 50 Nonresidential Development ......................................................................................................... 50 284 Transportation Service Area Report and Impact Fee Study Bozeman, Montana 3 EXECUTIVE SUMMARY The City of Bozeman, Montana, contracted with TischlerBise to document land use assumptions, prepare the Service Area Report, and update impact fees within the applicable service areas pursuant to Montana Code 7-6-16 (hereafter referred to as the “Enabling Legislation”). Governmental entities in Montana may assess impact fees to offset infrastructure costs to the governmental entity for public facilities needed to serve future development. For each public facility for which an impact fee is imposed, the governmental entity shall prepare and approve a service area report. The impact fees must (1) be reasonably related to and reasonably attributable to the development's share of the cost of infrastructure improvements made necessary by the new development and (2) may not exceed a proportionate share of the costs incurred or to be incurred by the governmental entity in accommodating the development. Impact fees are one-time payments used to construct system improvements needed to accommodate future development, and the fee represents future development’s proportionate share of infrastructure costs. Impact fees may be used for infrastructure improvements or debt service for growth-related infrastructure. In contrast to general taxes, impact fees may not be used for operations, maintenance, replacement, or correcting existing deficiencies. This Service Area Report and associated update to its impact fees are for Bozeman transportation infrastructure. In a tandem effort, TischlerBise is also updating the Service Area Reports for Fire/EMS, Water, and Wastewater public facilities. Montana Impact Fee Enabling Legislation The Enabling Legislation governs how impact fees are calculated for governmental entities in Montana. Public Facilities Under the requirements of the Enabling Legislation, impact fees may only be used for construction, acquisition, or expansion of public facilities made necessary by new development. “Public Facilities” means any of the following categories of capital improvements with a useful life of 10 years or more that increase or improve the service capacity of a public facility (§7-6-1601(7)): 1. a water supply production, treatment, storage, or distribution facility; 2. a wastewater collection, treatment, or disposal facility; 3. a transportation facility, including roads, streets, bridges, rights-of-way, traffic signals, and landscaping; 4. a storm water collection, retention, detention, treatment, or disposal facility or a flood control facility; 5. a police, emergency medical rescue, or fire protection facility; and 6. other facilities for which documentation is prepared as provided in 7-6-1602 that have been approved as part of an impact fee ordinance or resolution by: 7. a two-thirds majority of the governing body of an incorporated city, town, or consolidated local government; or 8. a unanimous vote of the board of county commissioners of a county government. 285 Transportation Service Area Report and Impact Fee Study Bozeman, Montana 4 Also, §7-6-1601(5a) states that "impact fee" means any charge imposed upon development by a governmental entity as part of the development approval process to fund the additional service capacity required by the development from which it is collected. An impact fee may include a fee for the administration of the impact fee not to exceed 5 percent of the total impact fee collected. Service Area Report For each public facility for which an impact fee is imposed, the governmental entity shall prepare and approve a service area report. The service area report is a written analysis that must: 1. describe existing conditions of the facility; 2. establish level-of-service standards; 3. forecast future additional needs for service for a defined period of time; 4. identify capital improvements necessary to meet future needs for service; 5. identify those capital improvements needed for continued operation and maintenance of the facility; 6. make a determination as to whether one service area or more than one service area is necessary to establish a correlation between impact fees and benefits; 7. make a determination as to whether one service area or more than one service area for transportation facilities is needed to establish a correlation between impact fees and benefits; 8. establish the methodology and time period over which the governmental entity will assign the proportionate share of capital costs for expansion of the facility to provide service to new development within each service area; 9. establish the methodology that the governmental entity will use to exclude operations and maintenance costs and correction of existing deficiencies from the impact fee; 10. establish the amount of the impact fee that will be imposed for each unit of increased service demand; and 11. have a component of the budget of the governmental entity that: a. schedules construction of public facility capital improvements to serve projected growth; b. projects costs of the capital improvements; c. allocates collected impact fees for construction of the capital improvements; and d. covers at least a 5-year period and is reviewed and updated at least every 5 years. Legal Framework Both state and federal courts have recognized the imposition of impact fees as a legitimate form of land use regulation, provided the fees meet standards intended to protect against regulatory takings. Land use regulations, development exactions, and impact fees are subject to the Fifth Amendment prohibition on taking of private property for public use without just compensation. To comply with the Fifth Amendment, development regulations must be shown to substantially advance a legitimate governmental interest. In the case of impact fees, that interest is in the protection of public health, safety, and welfare by ensuring development is not detrimental to the quality of essential public services. The means to this end are also important, requiring both procedural and substantive due process. The process followed to receive 286 Transportation Service Area Report and Impact Fee Study Bozeman, Montana 5 community input (i.e., stakeholder meetings, work sessions, and public hearings) provides opportunities for comments and refinements to the impact fees. There are three reasonable relationship requirements for impact fees that are closely related to “rational nexus”, or “reasonable relationship” requirements enunciated by a number of state courts. Although the term “dual rational nexus” is often used to characterize the standard by which courts evaluate the validity of impact fees under the U.S. Constitution, we prefer a more rigorous formulation that recognizes three elements: “need,” “benefit,” and “proportionality.” The dual rational nexus test explicitly addresses only the first two, although proportionality is reasonably implied, and was specifically mentioned by the U.S. Supreme Court in the Dolan case (Dolan v. City of Tigard, OR, 1994). Furthermore, the plaintiff in the 2024 Sheetz v. El Dorado County U.S. Supreme Court case argued that the El Dorado County, CA impact fee program failed to meet the Nollan/Dolan test. The U.S. Supreme Court remanded the case back to the California Supreme Court for further proceedings on a stricter interpretation of the rational nexus, specifically the extent impact fees can be “roughly proportionate.” Thus, is has been determined that State courts will make judgements further similar cases. Individual elements of the nexus standard are discussed further in the following paragraphs. All new development in a community creates additional demands on some, or all, public facilities provided by local government. If the capacity of facilities is not increased to satisfy that additional demand, the quality or availability of public services for the entire community will deteriorate. Impact fees may be used to recover the cost of development-related facilities, but only to the extent that the need for facilities is a consequence of development that is subject to the fees. The Nollan decision reinforced the principle that development exactions may be used only to mitigate conditions created by the developments upon which they are imposed. That principle clearly applies to impact fees. In this study, the impact of development on infrastructure needs is analyzed in terms of quantifiable relationships between various types of development and the demand for specific capital facilities, based on applicable level-of-service standards. The requirement that exactions be proportional to the impacts of development was clearly stated by the U.S. Supreme Court in the Dolan case and is logically necessary to establish a proper nexus. Proportionality is established through the procedures used to identify development-related facility costs, and in the methods used to calculate impact fees for various types of facilities and categories of development. The demand for capital facilities is measured in terms of relevant and measurable attributes of development (e.g., a typical housing unit’s average weekday vehicle trips). A sufficient benefit relationship requires that impact fee revenues be segregated from other funds and expended only on the facilities for which the fees were charged. Impact fees must be expended in a timely manner and the facilities funded by the fees must serve the development paying the fees. However, nothing in the U.S. Constitution or the state enabling legislation requires that facilities funded with fee revenues be available exclusively to development paying the fees. In other words, benefit may extend to a general area including multiple real estate developments. Procedures for the earmarking and expenditure of fee revenues are discussed near the end of this study. All of these procedural as well as substantive issues are intended to ensure that new development benefits from the impact fees they are 287 Transportation Service Area Report and Impact Fee Study Bozeman, Montana 6 required to pay. The authority and procedures to implement impact fees are separate from and complementary to the authority to require improvements as part of subdivision or zoning review. As documented in this report, the City of Bozeman has complied with applicable legal precedents. Impact fees are proportionate and reasonably related to the capital improvement demands of new development. Specific costs have been identified using local data and current dollars. With input from City staff, TischlerBise identified service demand indicators for each type of infrastructure and calculated proportionate share factors to allocate costs by type of development. This report documents the formulas and input variables used to calculate the impact fees for each type of public facility. Impact fee methodologies also identify the extent to which new development is entitled to various types of credits to avoid potential double payment of growth-related capital costs. Methodology Impact fees for public facilities made necessary by new development must be based on the same level of service provided to existing development in the service area. There are three basic methodologies used to calculate impact fees. They examine the past, present, and future status of infrastructure. The objective of evaluating these different methodologies is to determine the best measure of the demand created by new development for additional infrastructure capacity. Each method has advantages and disadvantages in a particular situation and can be used simultaneously for different cost components. Additionally, impact fees for public facilities can also include a fee for the administration of the impact fee not to exceed five percent of the total impact fee collected. Reduced to its simplest terms, the process of calculating impact fees involves two main steps: (1) determining the cost of growth-related capital improvements and (2) allocating those costs equitably to various types of development. In practice, though, the calculation of impact fees can become quite complicated because of the many variables involved in defining the relationship between development and the need for facilities within the designated service area. The following paragraphs discuss basic methods for calculating impact fees and how those methods can be applied. • Cost Recovery (past improvements) - The rationale for recoupment, often called cost recovery, is that future development is paying for its share of the useful life and remaining capacity of facilities already built, or land already purchased, from which future development will benefit. This methodology is often used for utility systems that must provide adequate capacity before new development can take place. • Incremental Expansion (concurrent improvements) - The incremental expansion methodology documents current level-of-service standards for each type of public facility, using both quantitative and qualitative measures. This approach assumes there are no existing infrastructure deficiencies or surplus infrastructure capacity. Future development is only paying its proportionate share for growth-related infrastructure. Revenue will be used to expand or provide additional facilities, as needed, to accommodate future development. An incremental expansion methodology is best suited for public facilities that will be expanded in regular increments to keep pace with development. • Plan-Based (future improvements) - The plan-based methodology allocates costs for a specified set of improvements to a specified amount of development. Improvements are typically identified in a 288 Transportation Service Area Report and Impact Fee Study Bozeman, Montana 7 long-range facility plan and development potential is identified by a land use plan. There are two basic options for determining the cost per service demand unit: (1) total cost of a public facility can be divided by total service demand units (average cost), or (2) the growth-share of the public facility cost can be divided by the net increase in service demand units over the planning timeframe (marginal cost). Conceptual Impact Fee Calculation In contrast to project-level improvements, impact fees fund growth-related infrastructure that will benefit multiple development projects, or the entire service area (usually referred to as system improvements). The first step is to determine an appropriate service demand unit for the particular type of infrastructure. The service demand indicator measures the number of service units for each unit of development. For example, an appropriate indicator of the demand for roadways is vehicle trips or vehicle miles of travel that can be determined by development type. The second step in the impact fee formula is to determine infrastructure improvement units per service demand unit, typically called level of service (LOS) standards. In keeping with the roadway example, a common LOS standard is volume to capacity ratio. The third step in the impact fee formula is the cost of various infrastructure units. To complete the roadway example, this part of the formula would establish a construction cost per lane mile of road expansion. The body of the report will detail these steps specific to the Bozeman Transportation Impact Fee analysis. For reference, the service units can be found on page 14; LOS standards on page 10; and infrastructure cost on page 19. Evaluation of Credits The consideration of credits is integral to the development of a legally defensible impact fee. There are two types of credits that should be addressed in impact fee studies and ordinances. The first is a revenue credit due to possible double payment situations, which could occur when other revenues expected to be paid by future development may contribute to the capital costs of infrastructure covered by the impact fee. This type of credit is integrated into the fee calculation, thus reducing the fee amount. The second type of credit is a site-specific credit for system improvements that have been included in the impact fee calculations. Policies and procedures related to site-specific credits for system improvements are addressed in the ordinance that establishes the impact fees. However, the general concept is that developers may be eligible for site-specific credits only if they provide system improvements that have been included in the impact fee calculations. Project improvements normally required as part of the development approval process are not eligible for credits against impact fees. Site-specific credits are addressed in the administration and implementation of the development fee program. Below, Figure 1 summarizes service areas, methodologies, and infrastructure cost components. Figure 1. Impact Fee Service Areas, Methodologies, and Cost Allocation Transportation Citywide -Roadway Expansion -Person Miles of Travel Cost AllocationFee Category Service Area Incremental Expansion Plan-Based Cost Recovery 289 Transportation Service Area Report and Impact Fee Study Bozeman, Montana 8 Maximum Supportable Transportation Impact Fees The following figures list the schedule of the maximum supportable impact fees by type of land use. The fees represent the highest amount allowable for each type of applicable land use. The City may adopt fees that are less than the amounts shown. However, a reduction in impact fee revenue will necessitate an increase in other revenues, a decrease in planned capital expenditures, and/or a decrease in levels of service. The maximum supportable impact fees for residential development will be assessed per housing unit, based on the square footage of the unit. This study presents additional size bands. The current fee schedule has 10 bands, while 19 bands are included in the update. Expanding the schedule allows for further proportionately. Nonresidential impact fees will be assessed per square foot of floor area. Figure 2. Maximum Supportable Impact Fee Schedule – Single-Unit Dwelling Including Townhomes Residential - Single-Unit Dwelling including Townhomes Residential (per housing unit) Under 600 $5,517 $6,938 ($1,421) 600 to 800 $6,182 $6,938 ($756) 801 to 1,000 $7,248 $6,938 $310 1,001 to 1,200 $8,437 $6,938 $1,499 1,201 to 1,400 $10,142 $6,938 $3,204 1,401 to 1,600 $11,680 $7,728 $3,952 1,601 to 1,800 $13,159 $8,431 $4,728 1,801 to 2,000 $14,490 $9,032 $5,458 2,001 to 2,200 $15,737 $9,605 $6,132 2,201 to 2,400 (avg.)$16,970 $10,098 $6,872 2,401 to 2,600 $18,082 $10,562 $7,520 2,601 to 2,800 $19,186 $11,007 $8,180 2,801 to 3,000 $20,291 $11,411 $8,880 3,001 to 3,200 $21,273 $11,530 $9,743 3,201 to 3,400 $22,235 $11,530 $10,705 3,401 to 3,600 $23,178 $11,530 $11,648 3,601 to 3,800 $23,992 $11,530 $12,462 3,801 to 4,000 $24,968 $11,530 $13,438 4,001 or More $25,756 $11,530 $14,226 Dwelling Size (square feet) Maximum Supportable Fee Current Fee Increase/ Decrease 290 Transportation Service Area Report and Impact Fee Study Bozeman, Montana 9 Figure 3. Transportation Maximum Supportable Impact Fee Schedule – Other Residential Figure 4. Transportation Maximum Supportable Impact Fee Schedule – Nonresidential Residential - Other Residential Residential (per housing unit) Under 600 $3,805 $4,311 ($506) 600 to 800 $4,270 $4,311 ($41) 801 to 1,000 $5,007 $4,311 $696 1,001 to 1,200 $5,588 $4,311 $1,277 1,201 to 1,400 $6,557 $4,311 $2,246 1,401 to 1,600 (avg.)$7,603 $4,806 $2,797 1,601 to 1,800 $8,521 $5,229 $3,292 1,801 to 2,000 $9,490 $5,610 $3,880 2,001 to 2,200 $10,246 $5,955 $4,291 2,201 to 2,400 $11,079 $6,264 $4,815 2,401 to 2,600 $11,744 $6,549 $5,195 2,601 to 2,800 $12,500 $6,816 $5,684 2,801 to 3,000 $13,243 $7,078 $6,165 3,001 to 3,200 $13,895 $7,148 $6,747 3,201 to 3,400 $14,464 $7,148 $7,316 3,401 to 3,600 $15,097 $7,148 $7,949 3,601 to 3,800 $15,633 $7,148 $8,485 3,801 to 4,000 $16,292 $7,148 $9,144 4,001 or More $16,738 $7,148 $9,590 Group Quarters (per person) Group Quarters $3,760 $2,556 $1,204 Dwelling Size (square feet) Maximum Supportable Fee Current Fee Increase/ Decrease Nonresidential Nonresidential (per 1,000 square feet) Retail/Restaurant $19,115 $11,920 $7,195 Research & Development Center $6,027 $6,155 ($128) Office $4,703 $4,087 $616 Hospital $5,136 $7,860 ($2,724) Day Care (per student)$1,828 $688 $1,140 Secondary School $6,880 $5,256 $1,624 Elementary School $9,554 $7,287 $2,267 Lodging (per room)$1,583 $1,584 ($1) Assisted Living (per bed)$1,137 $816 $321 Mini-warehouse $627 $429 $198 Warehouse $736 $729 $8 Manufacturing $2,067 $1,637 $430 Light Industrial $2,119 $2,074 $45 Maximum Supportable Fee Current Fee Increase/ DecreaseDevelopment Type 291 Transportation Service Area Report and Impact Fee Study Bozeman, Montana 10 TRANSPORTATION SERVICE AREA REPORT The Bozeman Transportation Impact Fee Study includes roadway expansion for vehicle and multimodal demand. The analysis uses an incremental expansion approach which is based on the adopted level of service in the Transportation Plan and construction costs found in the Capital Improvement Plan. The requirement and purpose of the service area report is explained on page 3. Service Area The transportation impact fee program funds collector and arterial improvements which provides a networkwide benefit. As such, there is one, citywide service area in the analysis. Cost Allocation Costs for transportation improvements are allocated to residential and nonresidential development based on average weekday person miles of travel (PMT) generated by type of development. Service Demand Units – Person Miles of Travel (PMT) Bozeman funds roadway improvements projects with impact fees that provides expanded service to vehicle and multimodal demand. While vehicle trip rates or vehicle miles of travel (VMT) are typically used as the demand unit for improvements purely addressing vehicle demand, using person miles of travel (PMT) factors more accurately captures development demand for vehicle and multimodal expansion. PMT factors are calculated with vehicle trip rate factors, vehicle trip length factors, and trip occupancy factors. In Appendix A: Land Use Assumptions, residential and nonresidential vehicle trip rates, vehicle trip rate adjustments, commuter trip adjustment, and adjustment for pass-by trips are detailed along with trip rates for Single-Unit Dwelling and Other Residential units by the square footage of the dwelling. The following section details the remaining factors used in the PMT calculation. Vehicle Trip Length Figure 5 displays the calculation of average vehicle trip length used in this study. The average trip vehicle trip length on Bozeman collector and arterial roads is based on the lane miles in the system, capacity, level of service, and vehicle trip total. First, there are 156.1 lane miles of collectors and arterials. The Bozeman Transportation Master Plan indicates a capacity of 6,000 vehicle trips per day on a collector road and 8,000 vehicle trips per day on an arterial road. However, the City’s adopted level of service of 0.73 volume / capacity (V/C) ratio1 reduces the capacity to be consistent with Bozeman capital planning. The level of service capacities are combined with the lane miles to calculate the base year VMT. The average trip length is found by comparing the base year VMT with the base year vehicle trips. As a result, there is an average trip length on Bozeman collector and arterial roads of 2.77 miles (806,796 VMT / 291,139 vehicle trips = 2.77 miles, rounded). 1 The volume / capacity ratio compares the demand on the road to the capacity. As the ratio approaches 1.00 the road network is approaching full congestion. Said another way, a lower ratio represents less congestion. 292 Transportation Service Area Report and Impact Fee Study Bozeman, Montana 11 The impact fee analysis addresses demand only on collector and arterial roads. Thus, the trip length on local roads and the interstate are not contemplated. Figure 5. Average Vehicle Trip Length on Collector and Arterial Roads Vehicle Trip Length Adjustments The trip purpose is the primary factor used in traffic studies to determine trip lengths. Figure 6 displays trip length adjustment factors by purpose as determined by the National Household Travel Survey (2017) and a trip survey provided in the 2019 Bozeman Impact Fee Study. Figure 6. Vehicle Trip Length Adjustment Factors Percent of New Trips Following a travel survey provided in the previous Bozeman impact fee study there is a reduction in nonresidential trips to accurately capture the origin-destination of the trip since there are secondary and diverted trips that would overestimate the primary purpose of the trip. The percent of secondary and diverted trip is reduced from 100 percent to find the percent of new trips listed in Figure 7. The purpose of the reduction is to ensure only the direct demand from developments are being included in the impact fee analysis. For example, during travel surveys some counted trips may have been the result of a diversion. In this case, that location was not the purpose of the trip, so a reduction needs to be included. Total LOS V/C Road Classification Lane Miles Capacity 0.73 Collector 71.8 6,000 4,380 314,484 Minor Arterial 36.6 8,000 5,840 213,744 Principal Arterial 47.7 8,000 5,840 278,568 Total 156.1 806,796 Base Year VMT 806,796 Base Year Vehicle Trips 291,139 Average Trip Length 2.77 Base Year VMT Trip Purpose Trip Length Adj. Residential Trip [1]121% Commercial Trip [1]66% Other Nonres Trip [2]43% [1] Source: National Household Travel Survey, 2017 [2] Source: 2019 Impact Fee Study trip survey 293 Transportation Service Area Report and Impact Fee Study Bozeman, Montana 12 Figure 7. Nonresidential Percent New Trips Factor Trip Occupancy The last component to the PMT calculation is trip occupancy. Trip occupancy represents the number of people on that trip. From the National Household Travel Survey (2022), the average vehicle trip occupancy is 1.59 persons, which is an increase from the occupancy rate used in the previous study (1.30 persons). This factor is applied without adjustments to all nonresidential land uses. The trip occupancy factor is adjusted for Single-Unit Dwelling and Other Residential units based on the PPHH factors (see page 30 for more detail on PPHH). As a result, Figure 8 shows an assumption of higher vehicle trip occupancy for homes with larger PPHH factors. It is assumed that the trip occupancy cannot be lower than 1.00 person, which is applied to the smaller dwelling units. Since the prior impact fee study, Bozeman has seen an increase in smaller dwelling construction and has improved detailed data available related to dwelling sizes. As a result, the new study includes 19 bands in Figure 8 compared to 10 bands in the previous study allowing for more proportional fees. Land Use Percent of New Trips Retail/Restaurant 55% Research & Development Center 89% Office 71% Hospital 78% Day Care 73% University 90% Secondary School 80% Elementary School 80% Lodging 77% Assisted Living 72% Mini-warehouse 71% Warehouse 71% Manufacturing 71% Light Industrial 71% Source: 2019 Impact Fee Study trip survey 294 Transportation Service Area Report and Impact Fee Study Bozeman, Montana 13 Figure 8. Residential Occupancy Rates Number of Vehicle Trip Occupants Under 600 1.00 1.00 600 to 800 1.00 1.00 801 to 1,000 1.00 1.00 1,001 to 1,200 1.04 1.00 1,201 to 1,400 1.15 1.08 1,401 to 1,600 1.24 1.17 1,601 to 1,800 1.32 1.24 1,801 to 2,000 1.39 1.32 2,001 to 2,200 1.45 1.37 2,201 to 2,400 1.51 1.43 2,401 to 2,600 1.56 1.47 2,601 to 2,800 1.61 1.52 2,801 to 3,000 1.66 1.57 3,001 to 3,200 1.70 1.61 3,201 to 3,400 1.74 1.64 3,401 to 3,600 1.78 1.68 3,601 to 3,800 1.81 1.71 3,801 to 4,000 1.85 1.75 4,001 or More 1.88 1.77 Dwelling Size (square feet) Single-Unit Dwelling Other Res. Housing 295 Transportation Service Area Report and Impact Fee Study Bozeman, Montana 14 Calculation of Service Demand Units - Person Miles of Travel (PMT) The following figures lists the factors that are used to calculate the VMT by land use which is then transformed into PMT with the trip occupancy rates. First, Single-Unit Dwelling PMT is calculated; Second, Other Residential PMT; Third, Nonresidential PMT. Additionally, the PMT per unit from the 2019 study is listed for comparison. There has been an overall increase in PMT for residential development besides the smaller dwelling sizes which have been added to the fee schedule. The increase in residential PMT follows the trend of increasing PPHH, trip ends, and occupancy rate from the previous study. For example, the average size Single-Unit Dwelling is between 2,201 and 2,400 square feet and generates 26.27 PMT per day (9.27 trip ends x 0.56 trip end adjustment x 2.77 miles x 1.21 trip length adjustment x 1.00 new trips x 1.51 vehicle trip occupants = 26.27 PMT). Figure 9. Summary of Service Demand Units (PMT) – Single-Unit Dwelling including Townhomes Single-Unit Dwelling Square Feet Trip End Trip End Adj. Trip Length (miles) Trip Length Adj Percent of New Trips Vehicle Miles of Travel (VMT) Occupants per Trip Person Miles of Travel (PMT) 2019 Study PMT % Change Under 600 4.55 56% 2.77 121% 100% 8.54 1.00 8.54 13.55 -37% 600 to 800 5.10 56% 2.77 121% 100% 9.57 1.00 9.57 13.55 -29% 801 to 1,000 5.98 56% 2.77 121% 100% 11.22 1.00 11.22 13.55 -17% 1,001 to 1,200 6.69 56% 2.77 121% 100% 12.56 1.04 13.06 13.55 -4% 1,201 to 1,400 7.27 56% 2.77 121% 100% 13.65 1.15 15.70 13.55 16% 1,401 to 1,600 7.77 56% 2.77 121% 100% 14.58 1.24 18.08 15.08 20% 1,601 to 1,800 8.22 56% 2.77 121% 100% 15.43 1.32 20.37 16.42 24% 1,801 to 2,000 8.60 56% 2.77 121% 100% 16.14 1.39 22.43 17.62 27% 2,001 to 2,200 8.95 56% 2.77 121% 100% 16.80 1.45 24.36 18.71 30% 2,201 to 2,400 (avg.)9.27 56% 2.77 121% 100% 17.40 1.51 26.27 19.70 33% 2,401 to 2,600 9.56 56% 2.77 121% 100% 17.94 1.56 27.99 20.61 36% 2,601 to 2,800 9.83 56% 2.77 121% 100% 18.45 1.61 29.70 21.46 38% 2,801 to 3,000 10.08 56% 2.77 121% 100% 18.92 1.66 31.41 22.24 41% 3,001 to 3,200 10.32 56% 2.77 121% 100% 19.37 1.70 32.93 22.46 47% 3,201 to 3,400 10.54 56% 2.77 121% 100% 19.78 1.74 34.42 22.46 53% 3,401 to 3,600 10.74 56% 2.77 121% 100% 20.16 1.78 35.88 22.46 60% 3,601 to 3,800 10.93 56% 2.77 121% 100% 20.52 1.81 37.14 22.46 65% 3,801 to 4,000 11.13 56% 2.77 121% 100% 20.89 1.85 38.65 23.46 65% 4,001 or More 11.30 56% 2.77 121% 100% 21.21 1.88 39.87 22.46 78% 296 Transportation Service Area Report and Impact Fee Study Bozeman, Montana 15 Figure 10. Summary of Service Demand Units (PMT) – Other Residential Other Residential Square Feet Trip End Trip End Adj. Trip Length (miles) Trip Length Adj Percent of New Trips Vehicle Miles of Travel (VMT) Occupants per Trip Person Miles of Travel (PMT) 2019 Study PMT % Change Under 600 3.14 56% 2.77 121% 100% 5.89 1.00 5.89 8.41 -30% 600 to 800 3.52 56% 2.77 121% 100% 6.61 1.00 6.61 8.41 -21% 801 to 1,000 4.13 56% 2.77 121% 100% 7.75 1.00 7.75 8.41 -8% 1,001 to 1,200 4.61 56% 2.77 121% 100% 8.65 1.00 8.65 8.41 3% 1,201 to 1,400 5.01 56% 2.77 121% 100% 9.40 1.08 10.15 8.41 21% 1,401 to 1,600 (avg.)5.36 56% 2.77 121% 100% 10.06 1.17 11.77 9.36 26% 1,601 to 1,800 5.67 56% 2.77 121% 100% 10.64 1.24 13.19 10.18 30% 1,801 to 2,000 5.93 56% 2.77 121% 100% 11.13 1.32 14.69 10.93 34% 2,001 to 2,200 6.17 56% 2.77 121% 100% 11.58 1.37 15.86 11.61 37% 2,201 to 2,400 6.39 56% 2.77 121% 100% 11.99 1.43 17.15 12.22 40% 2,401 to 2,600 6.59 56% 2.77 121% 100% 12.37 1.47 18.18 12.78 42% 2,601 to 2,800 6.78 56% 2.77 121% 100% 12.73 1.52 19.35 13.31 45% 2,801 to 3,000 6.96 56% 2.77 121% 100% 13.06 1.57 20.50 13.81 48% 3,001 to 3,200 7.12 56% 2.77 121% 100% 13.36 1.61 21.51 13.92 55% 3,201 to 3,400 7.27 56% 2.77 121% 100% 13.65 1.64 22.39 13.92 61% 3,401 to 3,600 7.41 56% 2.77 121% 100% 13.91 1.68 23.37 13.92 68% 3,601 to 3,800 7.54 56% 2.77 121% 100% 14.15 1.71 24.20 13.92 74% 3,801 to 4,000 7.68 56% 2.77 121% 100% 14.41 1.75 25.22 14.92 69% 4,001 or More 7.80 56% 2.77 121% 100% 14.64 1.77 25.91 13.92 86% Land Use Trip End Trip End Adj. Trip Length (miles) Trip Length Adj Percent of New Trips Vehicle Miles of Travel (VMT) Occupants per Trip Person Miles of Travel (PMT) 2019 Study PMT % Change Group Quarters 3.10 56% 2.77 121% 100% 5.82 1.00 5.82 5.01 16% 297 Transportation Service Area Report and Impact Fee Study Bozeman, Montana 16 Furthermore, there has been a variety of PMT changes in nonresidential land uses. As a reminder, the change in PMT rate is based on local and national travel surveys detailed in this report. The largest exception to the nonresidential decrease is day care. The land use increased by only 1.48 PMT, but relative to the very small 1.35 PMT in the 2019 study the change is significant. Figure 11. Summary of Service Demand Units (PMT) – Nonresidential Land Use per 1,000 Square Feet Trip End Trip End Adj. Trip Length (miles) Trip Length Adj Percent of New Trips Vehicle Miles of Travel (VMT) Occupants per Trip Person Miles of Travel (PMT) 2019 Study PMT % Change Retail/Restaurant 37.01 50%2.77 66%55%18.61 1.59 29.59 23.35 27% Research & Development Center 11.08 50%2.77 43%89%5.87 1.59 9.33 12.05 -23% Office 10.84 50%2.77 43%71%4.58 1.59 7.28 8.00 -9% Hospital 10.77 50%2.77 43%78%5.00 1.59 7.95 15.33 -48% Day Care (per student)4.09 50%2.77 43%73%1.78 1.59 2.83 1.35 110% Secondary School 14.07 50%2.77 43%80%6.70 1.59 10.65 10.31 3% Elementary School 19.52 50%2.77 43%80%9.30 1.59 14.79 14.31 3% Lodging (per room)3.35 50%2.77 43%77%1.54 1.59 2.45 3.09 -21% Assisted Living (per bed)2.60 50%2.77 43%72%1.11 1.59 1.76 1.59 11% Mini-warehouse 1.45 50%2.77 43%71%0.61 1.59 0.97 0.83 17% Warehouse 1.71 50%2.77 43%71%0.72 1.59 1.14 1.43 -20% Manufacturing 4.75 50%2.77 43%71%2.01 1.59 3.20 3.22 -1% Light Industrial 4.87 50%2.77 43%71%2.06 1.59 3.28 4.07 -19% 298 Transportation Service Area Report and Impact Fee Study Bozeman, Montana 17 Existing and Projected Growth in Service Area With demand units by land use and development projections (page 30), the service area of the City’s transportation network is detailed and future infrastructure demand projected in the following section. As noted, the transportation impact fee program funds collector and arterial improvements which provides a networkwide benefit. As such, there is one, citywide service area in the analysis. Detailed in Figure 12, the base year housing and nonresidential estimates in the city are combined with trip factors to calculate vehicle trips. Vehicle trips are converted to VMT and PMT based on the factors detailed above. The figure lists projected VMT and PMT based on the ten-year growth projections in residential and nonresidential development. In turn, the growth-related need for arterial and collector lane miles is found by applying the 0.73 V/C level of service. As a result, there is a projected need for 25.8 new lane miles over the next ten years. Although 9.04 lane miles are scheduled for construction in the next five years (35 percent of the ten-year need), the City is committed to providing the additional 16.7 lane miles in the second half of the ten-year horizon. Specifically, the five-year project list addresses shorter, but necessary capacity expansions in the developed portions of Bozeman. While lengthier, capacity expansion projects are anticipated to address greenfield, suburban development in the subsequent five years. 299 Transportation Service Area Report and Impact Fee Study Bozeman, Montana 18 Figure 12. Projected VMT, PMT, and Lane Miles City of Bozeman, MT Base Year 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 Total Increase Single-Unit Dwelling 14,654 14,882 15,110 15,338 15,566 15,794 16,022 16,250 16,478 16,706 16,934 2,280 Other Residential Units 11,928 12,694 13,460 14,226 14,992 15,758 16,524 17,290 18,056 18,822 19,588 7,660 Retail KSF 7,856 7,906 7,956 8,006 8,056 8,106 8,156 8,206 8,256 8,306 8,356 500 Office KSF 3,025 3,086 3,147 3,207 3,268 3,329 3,390 3,450 3,511 3,572 3,632 607 Industrial KSF 3,204 3,222 3,240 3,258 3,276 3,294 3,312 3,329 3,347 3,365 3,383 179 Institutional KSF 8,279 8,375 8,472 8,568 8,664 8,761 8,857 8,954 9,050 9,147 9,243 964 Single-Unit Trips 76,072 77,255 78,439 79,623 80,806 81,990 83,173 84,357 85,541 86,724 87,908 11,836 Other Residential Unit Trips 35,803 38,102 40,402 42,701 45,000 47,299 49,598 51,898 54,197 56,496 58,795 22,992 Residential Subtotal 111,875 115,358 118,841 122,323 125,806 129,289 132,772 136,255 139,737 143,220 146,703 34,828 Retail Trips 110,483 110,992 111,501 112,010 112,519 113,028 113,536 114,045 114,554 115,063 115,572 5,089 Office Trips 16,397 16,631 16,865 17,098 17,332 17,566 17,799 18,033 18,266 18,500 18,734 2,336 Industrial Trips 7,803 7,834 7,865 7,895 7,926 7,957 7,988 8,019 8,050 8,081 8,112 309 Institutional Trips 44,581 44,949 45,318 45,687 46,055 46,424 46,793 47,161 47,530 47,899 48,267 3,687 Nonresidential Subtotal 179,264 180,406 181,548 182,690 183,832 184,974 186,116 187,258 188,400 189,543 190,685 11,421 Total Vehicle Trips 291,139 295,764 300,389 305,013 309,638 314,263 318,888 323,513 328,138 332,763 337,388 46,249 Bozeman Art. & Coll. VMT 806,796 820,154 833,512 846,870 860,228 873,586 886,943 900,301 913,659 927,017 940,375 133,579 Bozeman Art. & Coll. PMT 976,823 994,508 1,012,193 1,029,878 1,047,563 1,065,248 1,082,933 1,100,618 1,118,303 1,135,988 1,153,673 176,851 Bozeman Art. & Coll. Lane Miles 156.1 158.7 161.3 163.8 166.4 169.0 171.6 174.1 176.7 179.3 181.9 25.8 300 Transportation Service Area Report and Impact Fee Study Bozeman, Montana 19 Planned Transportation Projects and Cost Components This Service Area Report defines the service demand units and the service area to be used in the impact fee calculations. The service area is used to develop the transportation five-year capital improvement plan (CIP) shown in the following figures. This section includes details of the capital plan, funding sources, and the method of calculating a transportation cost per service demand unit. The transportation cost per service demand unit will be applied to the service demand units in Figure 9, Figure 10, and Figure 11 to calculate the maximum supportable impact fees by land use type. The CIP listed in Figure 13 consists of 18 transportation projects, most that are planned for at least a portion of impact fee funding. The City of Bozeman publishes an annual CIP with a larger project list that includes projects that are not impact fee eligible. The CIP included in this analysis totals $104.7 million with $71.3 million in impact fee funding and $33.3 million from the Arterial & Collector District Fund. Note: the table continues to the next page. Figure 13. Bozeman Impact Fee Funding Transportation Capital Improvement Plan Project Code Impact Fee Funded Transportation CIP Project Name FY25 FY26 FY27 FY28 FY29 FY25-FY29 Total FY29+/ Unscheduled SIF114 Fowler Avenue Connection: Huffine to Oak $5,463,600 $9,953,500 $4,715,100 $2,256,800 -$22,389,000 $2,813,400 SIF009 Kagy: 19th to Willson*-$3,000,000 ---$3,000,000 $0 SIF118 Babcock: 15th to 19th $2,250,600 $4,079,000 ---$6,329,600 $0 SIF112 Highland/Main Intersection Impr -$850,000 ---$850,000 $0 SIF188 Oak Street Intersections $150,000 $900,000 ---$1,050,000 $1,500,000 SIF191 Stucky: 19th to Fowler --$3,630,600 $5,849,300 -$9,479,900 $0 SIF159 Oak: 27th to 19th Widening ----$4,250,000 $4,250,000 $0 SIF149 Babcock: 11th to 15th $542,900 ----$542,900 $4,898,200 SIF152 N 27th: Baxter to Cattail $11,440,000 ----$11,440,000 $0 SIF193 Fowler: Cattail to E Valley Center ------$12,958,500 SIF195 Church: Garfield to Kagy ------$4,840,000 SIF194 Church: Story to Garfield ------$3,330,000 A&C014 S 19th/Blackwood Intersection Impr ------$2,445,000 SIF164 S 3rd: Kagy to Graf ------$4,890,000 A&C019 Huffine Lane Crossing ------$1,222,500 SIF190 N 15th: Tschache to Baxter ------$2,445,000 SIF156 Highland/Kagy Intersection Impr ------$3,760,000 A&C020 Cottonwood HAWK Signal ------$244,500 Total $19,847,100 $18,782,500 $8,345,700 $8,106,100 $4,250,000 $59,331,400 $45,347,100 *Project SIF009 is estimated to cost a total of $31.6 million. There is a variety of State and Federal funding sources for the project. The figure lists the $3 million as the impact fee portion of the project. 301 Transportation Service Area Report and Impact Fee Study Bozeman, Montana 20 The Transportation Impact Fee Study examines a planning horizon of 10 years. Although the unscheduled projects in Figure 14 may be added to and revised over time based on the local market and priorities, the plan provides an indication of impact fee verse Arterial & Collection District funding of the CIP. Figure 14. Bozeman Impact Fee Funding Transportation Capital Improvement Plan cont. Impact fees can only fund growth-related portions of infrastructure expansions. The non-impact fee funding of the scheduled projects in the CIP is examined to understand the non-growth-related share of roadway projects in Bozeman. Of the $68.5 million scheduled for the next five years, $17.1 million is being funded by the Arterial & Collector District. Figure 15. Bozeman Transportation Project Funding Sources Project Code Impact Fee Funded Transportation CIP Project Name FY25-FY29 Total FY29+/ Unscheduled Impact Fee Funding A&C District Funding SIF114 Fowler Avenue Connection: Huffine to Oak $22,389,000 $2,813,400 $20,250,500 $4,951,900 SIF009 Kagy: 19th to Willson*$3,000,000 $0 $3,000,000 $0 SIF118 Babcock: 15th to 19th $6,329,600 $0 $4,118,800 $2,210,800 SIF112 Highland/Main Intersection Impr $850,000 $0 $850,000 $0 SIF188 Oak Street Intersections $1,050,000 $1,500,000 $750,000 $1,800,000 SIF191 Stucky: 19th to Fowler $9,479,900 $0 $6,735,200 $2,744,700 SIF159 Oak: 27th to 19th Widening $4,250,000 $0 $3,250,000 $1,000,000 SIF149 Babcock: 11th to 15th $542,900 $4,898,200 $3,856,900 $1,584,200 SIF152 N 27th: Baxter to Cattail $11,440,000 $0 $8,611,200 $2,828,800 SIF193 Fowler: Cattail to E Valley Center -$12,958,500 $12,958,500 $0 SIF195 Church: Garfield to Kagy -$4,840,000 $0 $4,840,000 SIF194 Church: Story to Garfield -$3,330,000 $0 $3,330,000 A&C014 S 19th/Blackwood Intersection Impr -$2,445,000 $0 $2,445,000 SIF164 S 3rd: Kagy to Graf -$4,890,000 $2,445,000 $2,445,000 A&C019 Huffine Lane Crossing -$1,222,500 $0 $1,222,500 SIF190 N 15th: Tschache to Baxter -$2,445,000 $1,222,500 $1,222,500 SIF156 Highland/Kagy Intersection Impr -$3,760,000 $3,260,000 $500,000 A&C020 Cottonwood HAWK Signal -$244,500 $0 $244,500 Total $59,331,400 $45,347,100 $71,308,600 $33,369,900 *Project SIF009 is estimated to cost a total of $31.6 million. There is a variety of State and Federal funding sources for the project. The figure lists the $3 million as the impact fee portion of the project. SIF009 Kagy (19th to Willson)$3,000,000 $3,000,000 $0 1.70 SIF112 Highland/Main Intersection Improvement $850,000 $850,000 $0 0.00 SIF114 Fowler Avenue Connection (Huffine to Oak)$25,202,400 $20,250,500 $4,951,900 2.25 SIF118 Babcock (15th to 19th)$6,329,600 $4,118,800 $2,210,800 0.27 SIF149 Babcock (11th to 15th)$5,441,100 $3,856,900 $1,584,200 0.26 SIF152 N. 27th (Baxter to Cattail)$11,440,000 $8,611,200 $2,828,800 1.08 SIF191 Stucky (19th to Fowler)$9,479,900 $6,735,200 $2,744,700 2.98 SIF188 Oak Street Intersections $2,550,000 $750,000 $1,800,000 0.00 SIF159 Oak: 27th to 19th Widening $4,250,000 $3,250,000 $1,000,000 0.50 $68,543,000 $51,422,600 $17,120,400 9.04 Total Project Cost Amount from Impact Fees Amount from A&C District Lane-Miles AddedProject Name Project Code 302 Transportation Service Area Report and Impact Fee Study Bozeman, Montana 21 Transportation Capital Cost per PMT Additionally, the five-year project list is adding 9.04 lane miles with $51.4 million in impact fee funding. As a result, the plan averages $5.7 million per lane mile in impact fee funding. For comparison, the previous study estimated a cost of $3.3 million per lane mile. The new CIP reflects a 74 percent increase in growth-related construction costs. City staff has confirmed that there has been rapid and significant inflation since 2019 including the right-of-way costs associated with roadway expansion. Figure 16 details the calculation of capital cost per PMT. First, the 9.04 lane miles are multiplied by their capacity to get the total new number of trips. Next, the new trips are multiplied by the City level of service of 0.73 V/C. Finally, this is multiplied by the average of 1.32 persons per trip to determine that the CIP is adding 61,887 PMT to the Bozeman transportation network (64,224 vehicle trip capacity x 0.73 V/C x 1.32 persons per trip = 61,887 PMT). Dividing the cost of the capital improvements funded by impact fees by the total PMT results in the cost per PMT of the capacity expansions in the capital plan. The project list is adding capacity to the roadway network at an average of $831 per PMT ($51,422,600 / 61,887 PMT = $831 per PMT) in impact fee funding. Figure 16. Transportation Impact Fee Funding per PMT Lastly, based on the impact fee funding per lane mile of $5.7 million and the 25.8 new lane miles needed to address projected growth, there is an estimated growth-related need of $146.8 million over the next ten years (Figure 17). Figure 17. Projected Impact Fee Funding of the 10-Year Roadway Expansion Need Vehicle Miles of Capacity Added in CIP [1]64,224 Volume/Capacity LOS 0.73 Average Trip Occupancy [2]1.32 Person Miles of Travel (PMT) Added 61,887 Impact Fee Funding for Roadway Expansion $51,422,600 PMT Added in CIP 61,887 Cost per Person Miles of Travel (PMT)$831 [2] Based on a weighted average in the travel demand model [1] Calculated from added lane miles and road classification capacities Bozeman, MT 10-Year Need New Art. & Coll. Lane Miles 25.8 Impact Fee Funding per Lane Mile $5,688,000 Total Impact Fee Funding $146,750,400 303 Transportation Service Area Report and Impact Fee Study Bozeman, Montana 22 Credit for Other Revenues Sources Evaluation of other revenues funding capital expansion is necessary to ensure the impact fee is proportionate and there are no double charging scenarios. The City has an existing impact fee fund balance ($18.2 million) that will fund a portion of the CIP. Currently, the CIP includes $71.3 million in impact fee funded road projects, thus, 26 percent of the CIP has already been collected. A credit of this amount is included in the final impact fee calculation. Figure 18. Existing Transportation Impact Fee Fund Balance Credit Furthermore, City staff examines the non-growth-related share of each transportation project. The portion that is considered to be non-growth-related is funded through other sources such as the Arterial & Collector District and grants. In this case, impact fees are funding the growth-related portion, thus there is no double charging concern and no need for another revenue credit. Transportation Personnel and Operations As described in the legal framework section of this report, impact fees are limited to capacity adding capital expansion. No transportation personnel, operations, or maintenance expenses are allowed to be included in an impact fee and all such expenses are excluded from the impact fee. All these expenses are paid for with taxes or other non-impact fee revenue. City of Bozeman Streets Impact Fee Fund Existing Fund Balance $18,202,220 CIP Cost minus Grants and A&C District $71,308,600 Existing Balance Share of Funding Need 26% 304 Transportation Service Area Report and Impact Fee Study Bozeman, Montana 23 Maximum Supportable Transportation Impact Fees The following figures shows the maximum supportable Bozeman Transportation Impact Fees for residential and nonresidential development and includes an administration fee of five percent (§ 7-6- 1601(5a)). After reducing the fee for the existing fund balance credit, the net total cost per PMT is $646. All fees are derived from the PMT per unit factors and capital cost per PMT. For example, the fee for 2,300 square foot Single-Unit Dwelling unit is $16,970 ($646 per PMT x 26.57 PMT = $16,970 per unit). The fees represent the highest amount allowable for each type of applicable land use, which represents new growth’s fair share of the cost for capital facilities. The City may adopt fees that are less than the amounts shown. However, a reduction in impact fee revenue will necessitate an increase in other revenues, a decrease in planned capital expenditures, and/or a decrease in levels of service. Figure 19. Maximum Supportable Transportation Impact Fee Schedule – Single-Unit Dwelling Cost per PMT Roadway Expansion $831 Gross Total $831 Credit for Existing Fund Balance (26%)($216) Administrative Fee (5%)$31 Net Total $646 Residential - Single-Unit Dwelling including Townhomes Residential (per housing unit) Under 600 8.54 $5,517 $6,938 ($1,421) 600 to 800 9.57 $6,182 $6,938 ($756) 801 to 1,000 11.22 $7,248 $6,938 $310 1,001 to 1,200 13.06 $8,437 $6,938 $1,499 1,201 to 1,400 15.70 $10,142 $6,938 $3,204 1,401 to 1,600 18.08 $11,680 $7,728 $3,952 1,601 to 1,800 20.37 $13,159 $8,431 $4,728 1,801 to 2,000 22.43 $14,490 $9,032 $5,458 2,001 to 2,200 24.36 $15,737 $9,605 $6,132 2,201 to 2,400 (avg.)26.27 $16,970 $10,098 $6,872 2,401 to 2,600 27.99 $18,082 $10,562 $7,520 2,601 to 2,800 29.70 $19,186 $11,007 $8,180 2,801 to 3,000 31.41 $20,291 $11,411 $8,880 3,001 to 3,200 32.93 $21,273 $11,530 $9,743 3,201 to 3,400 34.42 $22,235 $11,530 $10,705 3,401 to 3,600 35.88 $23,178 $11,530 $11,648 3,601 to 3,800 37.14 $23,992 $11,530 $12,462 3,801 to 4,000 38.65 $24,968 $11,530 $13,438 4,001 or More 39.87 $25,756 $11,530 $14,226 Fee Component Dwelling Size (square feet) Maximum Supportable Fee Current Fee Increase/ DecreasePMT 305 Transportation Service Area Report and Impact Fee Study Bozeman, Montana 24 Figure 20. Maximum Supportable Transportation Impact Fee Schedule – Other Residential Cost per PMT Roadway Expansion $831 Gross Total $831 Credit for Existing Fund Balance (26%)($216) Administrative Fee (5%)$31 Net Total $646 Residential - Other Residential Residential (per housing unit) Under 600 5.89 $3,805 $4,311 ($506) 600 to 800 6.61 $4,270 $4,311 ($41) 801 to 1,000 7.75 $5,007 $4,311 $696 1,001 to 1,200 8.65 $5,588 $4,311 $1,277 1,201 to 1,400 10.15 $6,557 $4,311 $2,246 1,401 to 1,600 (avg.)11.77 $7,603 $4,806 $2,797 1,601 to 1,800 13.19 $8,521 $5,229 $3,292 1,801 to 2,000 14.69 $9,490 $5,610 $3,880 2,001 to 2,200 15.86 $10,246 $5,955 $4,291 2,201 to 2,400 17.15 $11,079 $6,264 $4,815 2,401 to 2,600 18.18 $11,744 $6,549 $5,195 2,601 to 2,800 19.35 $12,500 $6,816 $5,684 2,801 to 3,000 20.50 $13,243 $7,078 $6,165 3,001 to 3,200 21.51 $13,895 $7,148 $6,747 3,201 to 3,400 22.39 $14,464 $7,148 $7,316 3,401 to 3,600 23.37 $15,097 $7,148 $7,949 3,601 to 3,800 24.20 $15,633 $7,148 $8,485 3,801 to 4,000 25.22 $16,292 $7,148 $9,144 4,001 or More 25.91 $16,738 $7,148 $9,590 Group Quarters (per person) Group Quarters 5.82 $3,760 $2,556 $1,204 Fee Component Dwelling Size (square feet) Maximum Supportable Fee Current Fee Increase/ DecreasePMT 306 Transportation Service Area Report and Impact Fee Study Bozeman, Montana 25 Figure 21. Maximum Supportable Transportation Impact Fee Schedule – Nonresidential Cost per PMT Roadway Expansion $831 Gross Total $831 Credit for Existing Fund Balance (26%)($216) Administrative Fee (5%)$31 Net Total $646 Nonresidential Nonresidential (per 1,000 square feet) Retail/Restaurant 29.59 $19,115 $11,920 $7,195 Research & Development Center 9.33 $6,027 $6,155 ($128) Office 7.28 $4,703 $4,087 $616 Hospital 7.95 $5,136 $7,860 ($2,724) Day Care (per student)2.83 $1,828 $688 $1,140 Secondary School 10.65 $6,880 $5,256 $1,624 Elementary School 14.79 $9,554 $7,287 $2,267 Lodging (per room)2.45 $1,583 $1,584 ($1) Assisted Living (per bed)1.76 $1,137 $816 $321 Mini-warehouse 0.97 $627 $429 $198 Warehouse 1.14 $736 $729 $8 Manufacturing 3.20 $2,067 $1,637 $430 Light Industrial 3.28 $2,119 $2,074 $45 PMT Maximum Supportable Fee Current Fee Increase/ Decrease Fee Component Development Type 307 Transportation Service Area Report and Impact Fee Study Bozeman, Montana 26 Projected Transportation Impact Fee Revenue Revenue projections assume implementation of the maximum supportable transportation impact fees and that future development is consistent with the land use assumptions described in Appendix A: Land Use Assumptions. To the extent the rate of development either accelerates or slows down, there will be a corresponding change in the impact fee revenue. The fee for an average size Single-Unit Dwelling and Other Residential unit is used in the revenue projections. As shown in Figure 22, transportation impact fee revenue is expected to total approximately $114.8 million over the next 10 years, compared to projected total transportation expansion cost of $146.8 million. Importantly, the revenue gap is the result of the credit included in the analysis for the existing fund balance. Figure 22. Projected Transportation Impact Fee Revenue Infrastructure Costs for Road Facilities Growth Cost Impact Fee Ten-Year Need at Current LOS $146,750,400 $146,750,400 Total Expenditures $146,750,400 $146,750,400 Projected Development Impact Fee Revenue Single-Unit Other Res.Retail Office Industrial Institutional $16,970 $7,603 $19,115 $4,703 $2,119 $5,136 per unit per unit per KSF per KSF per KSF per KSF Year Housing Units Housing Units KSF KSF KSF KSF Base 2023 14,654 11,928 7,856 3,025 3,204 8,279 1 2024 14,882 12,694 7,906 3,086 3,222 8,375 2 2025 15,110 13,460 7,956 3,147 3,240 8,472 3 2026 15,338 14,226 8,006 3,207 3,258 8,568 4 2027 15,566 14,992 8,056 3,268 3,276 8,664 5 2028 15,794 15,758 8,106 3,329 3,294 8,761 6 2029 16,022 16,524 8,156 3,390 3,312 8,857 7 2030 16,250 17,290 8,206 3,450 3,329 8,954 8 2031 16,478 18,056 8,256 3,511 3,347 9,050 9 2032 16,706 18,822 8,306 3,572 3,365 9,147 10 2033 16,934 19,588 8,356 3,632 3,383 9,243 Ten-Year Increase 2,280 7,660 500 607 179 964 Projected Revenue $38,691,600 $58,238,980 $9,557,500 $2,855,393 $378,393 $4,952,571 Projected Revenue $114,674,000 Projected Expenditures $146,750,400 Non-Impact Fee Funding $32,076,400 308 Transportation Service Area Report and Impact Fee Study Bozeman, Montana 27 Trip Exchange Districts This study continues the current trip exchange districts (TED) in the Bozeman transportation impact fee program. As defined in 2.06.1630, BMC, a TED is a defined geographic area where there is a demonstrated significant reduction in new vehicle trips below that established in the transportation service area report for the majority of the service area. Based on local and national trip surveys, roadway demand is lower in districts that are compact, mixed-use, and allow for pedestrian trips to substitute traditional vehicular trips. This is also known as “internal trip capture.” Specific to the Downtown TED the following factors contribution to the internal trip capture: • Shared and consolidated parking. • High degree of pedestrian and bicycle access to and throughout the TED. • Public transit availability. • Extensive trip capture between businesses. A person will make a single vehicle trip and visit multiple establishments. Consistent with national surveys and the 2019 Impact Fee Study, all development within the Downtown TED is assumed to generate 29 percent less transportation demand, thus it receives a 29 percent reduction in its transportation impact fee. Figure 23. Downtown Trip Exchange District 309 Transportation Service Area Report and Impact Fee Study Bozeman, Montana 28 In 2014, a transportation study was completed by the Western Transportation Institute which examined the internal trip capture and travel characteristics in and around the Montana State University Campus. The study found there was a reduction in transportation demand for the following land uses: • On MSU Campus o Office: 31 percent o Academic: 46 percent o Housing: 44 percent o Group Quarters: 62 percent • Private/Near MSU o Non-Housing: 25 percent o Housing: 35 percent o Group Quarters: 59 percent Based on this evidence, transportation impact fees are reduced in the University TED at the same rate as the demand reduction. Figure 24. University Trip Exchange District 310 Transportation Service Area Report and Impact Fee Study Bozeman, Montana 29 CAPITAL IMPROVEMENT PLAN Per State of Montana enabling legislation (§7-6-1602(2)), the Service Area Report needs to identify capital improvements necessary to meet future needs. The following figure lists the growth-related capital plans for transportation expansion included in this analysis. There are other non-growth- related CIP projects that are not included in this analysis. Figure 25. Transportation Growth-Related Capital Improvement Plan Project Code Impact Fee Funded Transportation CIP Project Name FY25 FY26 FY27 FY28 FY29 FY25-FY29 Total FY29+/ Unscheduled Impact Fee Funding A&C District Funding SIF114 Fowler Avenue Connection: Huffine to Oak $5,463,600 $9,953,500 $4,715,100 $2,256,800 -$22,389,000 $2,813,400 $20,250,500 $4,951,900 SIF009 Kagy: 19th to Willson*-$3,000,000 ---$3,000,000 $0 $3,000,000 $0 SIF118 Babcock: 15th to 19th $2,250,600 $4,079,000 ---$6,329,600 $0 $4,118,800 $2,210,800 SIF112 Highland/Main Intersection Impr -$850,000 ---$850,000 $0 $850,000 $0 SIF188 Oak Street Intersections $150,000 $900,000 ---$1,050,000 $1,500,000 $750,000 $1,800,000 SIF191 Stucky: 19th to Fowler --$3,630,600 $5,849,300 -$9,479,900 $0 $6,735,200 $2,744,700 SIF159 Oak: 27th to 19th Widening ----$4,250,000 $4,250,000 $0 $3,250,000 $1,000,000 SIF149 Babcock: 11th to 15th $542,900 ----$542,900 $4,898,200 $3,856,900 $1,584,200 SIF152 N 27th: Baxter to Cattail $11,440,000 ----$11,440,000 $0 $8,611,200 $2,828,800 SIF193 Fowler: Cattail to E Valley Center ------$12,958,500 $12,958,500 $0 SIF195 Church: Garfield to Kagy ------$4,840,000 $0 $4,840,000 SIF194 Church: Story to Garfield ------$3,330,000 $0 $3,330,000 A&C014 S 19th/Blackwood Intersection Impr ------$2,445,000 $0 $2,445,000 SIF164 S 3rd: Kagy to Graf ------$4,890,000 $2,445,000 $2,445,000 A&C019 Huffine Lane Crossing ------$1,222,500 $0 $1,222,500 SIF190 N 15th: Tschache to Baxter ------$2,445,000 $1,222,500 $1,222,500 SIF156 Highland/Kagy Intersection Impr ------$3,760,000 $3,260,000 $500,000 A&C020 Cottonwood HAWK Signal ------$244,500 $0 $244,500 Total $19,847,100 $18,782,500 $8,345,700 $8,106,100 $4,250,000 $59,331,400 $45,347,100 $71,308,600 $33,369,900 *Project SIF009 is estimated to cost a total of $31.6 million. There is a variety of State and Federal funding sources for the project. The figure lists the $3 million as the impact fee portion of the project. 311 Transportation Service Area Report and Impact Fee Study Bozeman, Montana 30 APPENDIX A: LAND USE ASSUMPTIONS The following sections detail base year and projected demographic assumptions. These assumptions are used in the Transportation impact fee calculations along with the tandem efforts in updating the Service Area Reports for Transportation, Water, and Wastewater public facilities. In this case, there is data in the following section that relates to the other efforts and not the Transportation calculations (i.e., trip generation rates and the Transportation Service Area Report). Note: definitions for the Single-Unit Dwelling and Other Residential housing types can be found Appendix B: Land Use Definitions Population and Housing Characteristics Impact fees often use per capita standards and persons per housing unit or persons per household to derive proportionate share fee amounts. Housing types have varying household sizes and, consequently, a varying demand on City infrastructure and services. Thus, it is important to differentiate between housing types and size. When persons per housing unit (PPHU) is used in the development impact fee calculations, infrastructure standards are derived using year-round population. In contrast, when persons per household (PPHH) is used in the development impact fee calculations, the fee methodology assumes all housing units will be occupied, thus requiring seasonal or peak population to be used when deriving infrastructure standards. The City of Bozeman and the surrounding area is home to a significant number of second/vacation homes and hosts many visitors throughout the year. Thus, TischlerBise recommends that fees for residential development in Bozeman be imposed according to the persons per household. Figure 26 shows the US Census American Community Survey 2021 5-Year Estimates data for the City of Bozeman. Single-unit dwellings have an average household size of 2.48 persons and other residential dwellings have an average household size of 1.92 persons. Additionally, there is a housing mix of 59 percent single-unit dwelling and 41 percent other residential. The estimates in Figure 26 are for household size calculations. Base year population and housing units are estimated with another, more recent data source. Figure 26. Persons per Household Building Permit History In Figure 27, the past six years of building permit history is listed by housing type to understand the recent growth trend in Bozeman. There has been a steady amount of single-unit dwelling development over the Housing Persons per Persons per Housing Housing Type Persons Units Housing Unit Households Household Unit Mix Single-Unit Dwelling [1]31,140 13,355 2.33 12,534 2.48 59% Other Residential [2]16,235 9,110 1.78 8,451 1.92 41% Subtotal 47,375 22,465 2.11 20,985 2.26 [1] Includes attached and detached single family homes and mobile homes [2] Includes all other types Source: U.S. Census Bureau, 2021 American Community Survey 5-Year Estimates 312 Transportation Service Area Report and Impact Fee Study Bozeman, Montana 31 past years in Bozeman, while other residential development has been the driving factor in the elevated construction trend. Housing development peaked in 2021 which included the largest apartment complex ever built in the city. Housing activity leveled slowed in 2022 (consistent with the national trend with increasing interest rates) while construction had a noticeable increase in 2023. Overall, there has been an average of 228 single-unit dwellings and 766 other residential units constructed annually. Figure 27. Building Permit History by Housing Type Base Year Housing Units and Population Furthermore, the nature of the influx of seasonal population in Bozeman necessitates four types of populations to be included in the impact fee study: 1) Permanent Residents 2) Seasonal Residents 3) On-Campus Students 4) Overnight-Visitors Bozeman is a destination for vacationers, students, and seasonal residents and City facilities and services have been sized to accommodate the additional demand. The peak population includes residents who have second homes in the city, students living on-campus at Montana State University, and the seasonal labor influx during peak tourism months. The MSU students living off-campus are captured in the permanent housing population. Bozeman permanent population is found by using the housing growth since the 2020 US Census. The 2020 decennial census estimated that there were 23,535 housing units and 49,298 household population in Bozeman. Additionally, there were 663 single-unit dwellings and 2,384 other residential units constructed since the survey. Based on PPHU factor, there has been an increase of 5,788 residents since the census. By combining the 2020 US Census household population and estimated new residents since the Census, a 2023 permanent population of 55,086 residents is estimated. Housing Type 2018 2019 2020 2021 2022 2023 Total Average Single-Unit Dwelling [1]266 245 211 255 197 193 1,367 228 Other Residential [2]593 546 734 1,128 522 1,075 4,598 766 Total 859 791 945 1,383 719 1,268 5,965 994 Source: City of Bozeman [1] Includes attached and detached single family homes and mobile homes [2] Includes all other types 313 Transportation Service Area Report and Impact Fee Study Bozeman, Montana 32 Figure 28. Permanent Population Seasonal housing population estimates are found by applying the PPHH factors for each housing type to base year housing estimates to the percent of housing occupied for seasonal use. As a result, the seasonal population estimate is 4,185 (Figure 29). Figure 29. Seasonal Population Shown in Figure 30, in a survey of hotel and motels in Bozeman, TischlerBise found 2,241 lodging rooms in the city. Based on general peak seasonal lodging factors there are 4,258 overnight-visitors assumed. Figure 30. Bozeman Visitors Lastly, based on a news briefing from Montana State University in September 2023 there were 5,200 students living on-campus. The information above is summarized in Figure 31. Based on the four population types, there is an estimated peak population of 68,729 residents along with 26,582 housing units in Bozeman. Bozeman, MT Housing Units [1] HH Population [2] 2020 Census 23,535 49,298 Housing Units 2020 Census Post Census 2023 Single-Unit Dwelling 13,991 663 14,654 Other Residential 9,544 2,384 11,928 Total 23,535 3,047 26,582 PPHU Single-Unit Dwelling 663 2.33 1,545 Other Residential 2,384 1.78 4,244 Total 3,047 5,788 Household Population 49,298 5,788 55,086 [1] Source: US Census DP1 Table Bozeman, MT Units Built Post Census New Residents Post Census [2] Source: US Census DP1 Table. Household population excludes those in group quarters. Group quarters is estimated with On-Campus Students in another figure. Bozeman, MT 2020 Census New Residents Post Census 2023 Estimate Housing Units PPHH Single-Unit Dwelling 14,654 7% 967 2.48 2,399 Other Residential 11,928 8% 930 1.92 1,786 Total 26,582 1,898 4,185 Seasonal Residents Seasonal Units % Seasonal Units 2023 Housing Units Total Lodging Rooms 2,241 Assumed Ave Occupancy 2 Assumed Occupancy Rate 95% Total Overnight-Visitors 4,258 Source: TischlerBise survey of lodging property and general peak season lodging factors 314 Transportation Service Area Report and Impact Fee Study Bozeman, Montana 33 Figure 31. Base Year Housing and Population Base Year 2023 Permanent Hsg Population [1]55,086 Seasonal Hsg Population [2]4,185 On-Campus Students [3]5,200 Overnight-Visitors [4]4,258 Total Peak Population 68,729 Housing Units [1] Single-Unit Dwelling 14,654 Other Residential 11,928 Total Housing Units 26,582 Bozeman, MT [1] Calculated based on 2020 US Census estimate plus housing development since [2] Assuming seasonal housing is fully occupied during peak season [3] MSU News Service (September, 2023) [4] TischlerBise survey of lodging property and general peak season lodging factors 315 Transportation Service Area Report and Impact Fee Study Bozeman, Montana 34 Housing Unit and Population Projections The ten-year residential projections are listed in Figure 32. Housing development in Bozeman is assumed to continue at its current pace over the next ten years. Overall, over the next ten years, 2,280 new single-unit dwellings and 7,660 other residential units are assumed to be constructed. As a result of the market supporting more non-single-unit dwelling development, by 2033 there will be more non-single-unit dwelling units than single-unit dwellings in Bozeman. Population growth is based on housing development and PPHH factors. Over the next ten years, housing development will support 18,841 new permanent residents and 1,520 seasonal residents. It is assumed that visitors to Bozeman will grow at the same rate as the resident population. Lastly, MSU has built a new dormitory every five years and is currently exploring another expansion. Conservatively, a 1 percent annual growth is assumed for on-campus students. Overall, the peak population is estimated to grow from 68,729 to 91,099, a 32.5 percent increase. Figure 32. Residential Development Projections Importantly, the impact fee methodology does not rely on the growth projections to determine the fee amount. Rather, the current level of service is used in the fee calculation. In this case, if the growth projections included in the report overestimate or underestimate the real development in Bozeman, the fee collection is still accurate. For example, if growth is slower than the 10-year projection, less revenue will be collected, however, the City will provide less capital expansion to keep up with the level of service. Base Year City of Bozeman, MT 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 Permanent Hsg Population [1]55,086 56,970 58,855 60,739 62,623 64,507 66,391 68,275 70,159 72,043 73,928 18,841 Seasonal Hsg Population [1]4,185 4,337 4,489 4,641 4,793 4,945 5,097 5,249 5,401 5,553 5,705 1,520 On-Campus Students [2]5,200 5,252 5,305 5,358 5,412 5,466 5,521 5,576 5,632 5,688 5,745 545 Overnight-Visitors [3]4,258 4,404 4,551 4,697 4,843 4,989 5,136 5,282 5,428 5,574 5,721 1,463 Total Peak Population 68,729 70,964 73,199 75,435 77,671 79,907 82,145 84,382 86,621 88,859 91,099 22,369 3.3% 3.2% 3.1% 3.0% 2.9% 2.8% 2.7% 2.7% 2.6% 2.5%32.5% Housing Units [4] Single-Unit Dwelling 14,654 14,882 15,110 15,338 15,566 15,794 16,022 16,250 16,478 16,706 16,934 2,280 Other Residential 11,928 12,694 13,460 14,226 14,992 15,758 16,524 17,290 18,056 18,822 19,588 7,660 Total Housing Units 26,582 27,576 28,570 29,564 30,558 31,552 32,546 33,540 34,534 35,528 36,522 9,940 [1] Permanent and seasonal population growth is based on housing development and PPHH factors [2] On-campus residences are conservatively assumed to grow by 1 percent annually [3] Visitor population is estimate to grow at the same rate as permanent and seasonal population [4] Housing development is based on the recent building permit trends without the 2021 peak development year Total Increase Percent Increase 316 Transportation Service Area Report and Impact Fee Study Bozeman, Montana 35 Current Employment and Nonresidential Floor Area The impact fee study will include nonresidential development as well. The base year employment estimates are calculated from two sources. First, from the Montana Department of Labor & Industry there is an estimated 34,569 total jobs in Bozeman. Second, from the U.S. Census Bureau OnTheMap web application employment splits are found between retail, office, industrial, and institutional industries. As a result, the institutional industries (which includes education and healthcare) account for the highest share while retail industries employee over 10,000 jobs as well. Furthermore, the floor area for the four industry types is summarized in Figure 33. Retail, office, and industrial square footage is available from the Montana Department of Revenue (DOR). However, since public education and healthcare facilities are tax exempt the DOR does not gather floor space for such development. Instead, TischlerBise applied the average employee density factors (square feet per employee) for schools and hospitals to the estimated institutional job total to estimate floor area. As a result, there are 22.4 million square feet of nonresidential development in Bozeman. The majority being institutional and retail industries. Figure 33. Base Year Nonresidential Floor Area Employment and Nonresidential Floor Area Projections The Bozeman Community Plan 2020 provides an in-depth analysis of the local market and buildout capacity of the city. Through 2045, the Community Plan projected a growth of 6.3 million square feet of nonresidential development broken down by retail, office, industrial, and institutional industries. The ten- year growth projections from the impact fee studies relies on these projections along with employee density factors from the Institution of Transportation Engineers’ (ITE). For the retail industry the Shopping Center land use factors are used; for office the General Office factors are used; for industrial the Light Industrial factors are used; for Institutional the Hospital factors are used. Figure 34. Institute of Transportation Engineers (ITE) Employment Density Factors Employment Industries Base Year Jobs [1] Percent of Total Floor Area (sq. ft.) [2] Percent of Total Retail 10,116 29% 7,855,849 35% Office 7,798 23% 3,025,341 14% Industrial 5,042 15% 3,204,452 14% Institutional [3]11,612 34% 8,278,652 37% Total 34,569 100% 22,364,294 100% [3] Source: Trip Generation, Institute of Transportation Engineers, 11th Edition (2021) [1] Source: MT Employment Statistics - LAUS [2] Source: Montana Department of Revenue Database Employment ITE Demand Emp Per Sq Ft Industry Code Land Use Unit Dmd Unit Per Emp Retail 820 Shopping Center 1,000 Sq Ft 2.12 471 Office 710 General Office 1,000 Sq Ft 3.26 307 Industrial 110 Light Industrial 1,000 Sq Ft 1.57 637 Institutional 610 Hospital 1,000 Sq Ft 2.86 350 Source: Trip Generation , Institute of Transportation Engineers, 11th Edition (2021) 317 Transportation Service Area Report and Impact Fee Study Bozeman, Montana 36 Shown in Figure 35, Bozeman is anticipated to grow by 6,075 jobs (17.6 percent) over the next ten years. Institutional, office, and retail industries all have significant growth while industrial development is anticipated to taper off. Based on the employee density factors, the employment growth will generate 2,250,000 million square feet of nonresidential floor area (10 percent growth from the base year). Figure 35. Employment and Nonresidential Floor Area Projections Base Year 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 Jobs [1] Retail 10,116 10,222 10,329 10,435 10,541 10,647 10,753 10,859 10,966 11,072 11,178 1,062 Office 7,798 7,996 8,194 8,391 8,589 8,787 8,985 9,182 9,380 9,578 9,776 1,978 Industrial 5,042 5,070 5,098 5,126 5,154 5,182 5,210 5,238 5,266 5,295 5,323 280 Institutional 11,612 11,888 12,164 12,439 12,715 12,990 13,266 13,541 13,817 14,092 14,368 2,755 Total 34,569 35,176 35,784 36,391 36,999 37,606 38,214 38,821 39,429 40,036 40,644 6,075 1.8% 1.7% 1.7% 1.7% 1.6% 1.6% 1.6% 1.6% 1.5% 1.5%17.6% Nonresidential Floor Area (1,000 sq. ft.) [2] Retail 7,856 7,906 7,956 8,006 8,056 8,106 8,156 8,206 8,256 8,306 8,356 500 Office 3,025 3,086 3,147 3,207 3,268 3,329 3,390 3,450 3,511 3,572 3,632 607 Industrial 3,204 3,222 3,240 3,258 3,276 3,294 3,312 3,329 3,347 3,365 3,383 179 Institutional 8,279 8,375 8,472 8,568 8,664 8,761 8,857 8,954 9,050 9,147 9,243 964 Total 22,364 22,589 22,814 23,039 23,264 23,489 23,714 23,939 24,164 24,389 24,614 2,250 [1] Source: Bozeman Community Plan (2020) [2] Source: Institute of Transportation Engineers, Trip Generation , 2021 Industry Total Increase Percent Increase 318 Transportation Service Area Report and Impact Fee Study Bozeman, Montana 37 Vehicle Trip Generation Residential Vehicle Trips by Housing Type A customized trip rate is calculated for the single-unit dwellings and other residential units in Bozeman. In Figure 36, the most recent data from the US Census American Community Survey is input into equations provided by the Institute of Transportation Engineers to calculate the trip ends per housing unit factor. A single-unit dwelling is estimated to generate 9.27 trip ends and other residential units are estimated to generate 5.36 trip ends on an average weekday. Figure 36. Customized Residential Trip End Rates by Housing Type Owner-Occupied 19,262 8,463 889 9,352 2.06 Renter-Occupied 20,735 4,071 7,562 11,633 1.78 Total 39,997 12,534 8,451 20,985 1.91 13,355 9,110 22,465 Persons in Trip Vehicles by Trip Average National Trip Households4 Ends5 Type of Unit Ends6 Trip Ends Ends per Unit7 Single-Unit Dwelling 31,140 86,764 24,680 160,855 123,810 9.27 9.43 Other Residential 16,235 37,097 15,292 60,543 48,820 5.36 4.54 Total 47,375 123,861 39,972 221,398 172,630 7.68 7. Trip Generation, Institute of Transportation Engineers, 11th Edition (2021). Local Trip Ends per Unit 1. Vehicles available by tenure from Table B25046, 2020 American Community Survey 5-Year Estimates. 3. Housing units from Table B25024, 2020 American Community Survey 5-Year Estimates. 4. Total population in households from Table B25033, 2020 American Community Survey 5-Year Estimates. 5. Vehicle trips ends based on persons using formulas from Trip Generation (ITE 2021). For single-family housing (ITE 210), the fitted curve equation is EXP(0.89*LN(persons)+1.72). To approximate the average population of the ITE studies, persons were divided by 3 and the equation result multiplied by 3. For multi-family housing (ITE 221), the fitted curve equation is (2.29*persons)-64.48 (ITE 2017). 6. Vehicle trip ends based on vehicles available using formulas from Trip Generation (ITE 2021). For single-family housing (ITE 210), the fitted curve equation is EXP(0.92*LN(vehicles)+2.68). To approximate the average number of vehicles in the ITE studies, vehicles available were divided by 5 and the equation result multiplied by 5. For multi- family housing (ITE 221), the fitted curve equation is (4.77*vehicles)-46.46 (ITE 2021). 2. Households by tenure and units in structure from Table B25032, 2020 American Community Survey 5-Year Estimates. Vehicles per HH by Tenure Housing Units3 Housing Type Households by Structure Type2 Tenure by Units in Structure Vehicles Available1 Single Family Multifamily Total 319 Transportation Service Area Report and Impact Fee Study Bozeman, Montana 38 Residential Vehicle Trips Adjustment Factors A vehicle trip end is the out-bound or in-bound leg of a vehicle trip. As a result, so as not double count trips, a standard 50 percent adjustment is applied to trip ends to calculate a vehicle trip. For example, the out-bound trip from a person’s home to work is attributed to the housing unit and the trip from work back home is attributed to the employer. However, an additional adjustment is necessary to capture city residents’ work bound trips that are outside of the city. The trip adjustment factor includes two components. According to the National Household Travel Survey, home-based work trips are typically 31 percent of out-bound trips (which are 50 percent of all trip ends). Also, utilizing the most recent data from the Census Bureau's web application "OnTheMap”, 40 percent of Bozeman workers travel outside the city for work. In combination, these factors account for 6 percent of additional production trips (0.31 x 0.50 x 0.40 = 0.06). Shown in Figure 37, the total adjustment factor for residential housing units includes attraction trips (50 percent of trip ends) plus the journey-to-work commuting adjustment (6 percent of production trips) for a total of 56 percent. Figure 37. Residential Trip Adjustment Factor for Commuters Nonresidential Vehicle Trips Vehicle trip generation for nonresidential land uses are calculated by using ITE’s average daily trip end rates and adjustment factors found in their recently published 11th edition of Trip Generation. To estimate the trip generation in Bozeman, the weekday trip end per 1,000 square feet factors listed in Figure 38 are used. The prior service area report used the 10th Edition of the Trip Generation. The latest edition includes travel surveys since the previous edition ensuring changes in travel behavior is being captured in the update. Figure 38. Institute of Transportation Engineers Nonresidential Factors For nonresidential land uses, the standard 50 percent adjustment is applied to office, industrial, and institutional development. A lower vehicle trip adjustment factor is used for retail development because Employed Bozeman Residents (2020)25,702 Residents Working in Bozeman (2020)15,447 Residents Commuting Outside of Bozeman for Work 10,255 Percent Commuting Out of Bozeman 40% Additional Production Trips 6% Standard Trip Adjustment Factor 50% Residential Trip Adjustment Factor 56% Source: U.S. Census, OnTheMap Application, 2020 Trip Adjustment Factor for Commuters Employment ITE Demand Wkdy Trip Ends Wkdy Trip Ends Industry Code Land Use Unit Per Dmd Unit Per Employee Retail 820 Shopping Center 1,000 Sq Ft 37.01 17.42 Office 710 General Office 1,000 Sq Ft 10.84 3.33 Industrial 110 Light Industrial 1,000 Sq Ft 4.87 3.10 Institutional 610 Hospital 1,000 Sq Ft 10.77 3.77 Source: Trip Generation, Institute of Transportation Engineers, 11th Edition (2021) 320 Transportation Service Area Report and Impact Fee Study Bozeman, Montana 39 this type of growth attracts vehicles as they pass-by on arterial and collector roads. For example, when someone stops at a convenience store on their way home from work, the convenience store is not their primary destination. In Figure 39, the Institute for Transportation Engineers’ land use code, daily vehicle trip end rate, and trip adjustment factor is listed for each land use. Figure 39. Daily Vehicle Trip Factors Residential (per housing unit) Single-Unit Dwelling 210 9.27 56% 5.19 Other Residential 220 5.36 56% 3.00 Nonresidential (per 1,000 square feet) Retail 820 37.01 38% 14.06 Office 710 10.84 50% 5.42 Industrial 110 4.87 50% 2.44 Institutional 610 10.77 50% 5.39 Land Use ITE Codes Daily Vehicle Trip Ends Trip Adj. Factor Daily Vehicle Trips Source: Trip Generation, Institute of Transportation Engineers, 11th Edition (2021); National Household Travel Survey, 2009 321 Transportation Service Area Report and Impact Fee Study Bozeman, Montana 40 Vehicle Trip Projections The base year vehicle trip totals and vehicle trip projections are calculated by combining the vehicle trip end factors, the trip adjustment factors, and the residential and nonresidential assumptions for housing stock and floor area. Citywide, residential land uses account for 111,875 vehicle trips and nonresidential land uses account for 179,264 vehicle trips in the base year (Figure 40). Through 2033, it is projected that daily vehicle trips will increase by 50,788 trips with the majority of the growth being generated by residential development (69 percent). Figure 40. Vehicle Trip Projections Base Year 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 Residential Trips Single-Unit Dwelling 76,072 77,255 78,439 79,623 80,806 81,990 83,173 84,357 85,541 86,724 87,908 11,836 Other Residential 35,803 38,102 40,402 42,701 45,000 47,299 49,598 51,898 54,197 56,496 58,795 22,992 Subtotal 111,875 115,358 118,841 122,323 125,806 129,289 132,772 136,255 139,737 143,220 146,703 34,828 Nonresidential Trips Retail 110,483 111,186 111,889 112,593 113,296 113,999 114,702 115,405 116,109 116,812 117,515 7,032 Office 16,397 16,726 17,055 17,385 17,714 18,043 18,372 18,701 19,030 19,359 19,688 3,291 Industrial 7,803 7,846 7,890 7,933 7,977 8,020 8,064 8,107 8,151 8,194 8,238 435 Institutional 44,581 45,100 45,619 46,138 46,658 47,177 47,696 48,215 48,735 49,254 49,773 5,193 Subtotal 179,264 180,859 182,454 184,049 185,644 187,239 188,834 190,429 192,024 193,619 195,214 15,950 Vehicle Trips Grand Total 291,139 296,217 301,294 306,372 311,450 316,528 321,606 326,684 331,761 336,839 341,917 50,778 Source: Institute of Transportation Engineers, Trip Generation , 11th Edition (2021) Total IncreaseDevelopment Type 322 Transportation Service Area Report and Impact Fee Study Bozeman, Montana 41 Demand Indicators by Dwelling Size Impact fees must be proportionate to the demand for infrastructure. Because averages per household, for both persons and vehicle trip ends, have a strong, positive correlation to the square footage of the dwelling unit, TischlerBise recommends residential fee schedules by the size of the unit (consistent with the City of Bozeman’s current fee schedule). Bozeman Control Totals According to the U.S. Census Bureau, Bozeman single-unit dwellings have an average household size of 2.48 persons and other residential units have an average household size of 1.92 persons. Figure 41. Persons per Household Trip generation rates are also dependent upon the average number of vehicles available per dwelling. Key independent variables needed for the analysis (i.e., vehicles available, households, and persons) are available from the U.S. Census Bureau American Community Survey (ACS), indicating an average of 1.90 vehicles per household in Bozeman. Figure 42. Vehicles per Household Demand Indicators by Dwelling Size Custom tabulations of demographic data by bedroom range can be created from individual survey responses provided by the U.S. Census Bureau in files known as Public Use Microdata Samples (PUMS). PUMS files are only available for areas of at least 100,000 persons with Bozeman included in Public Use Microdata Areas (PUMA) 400. Housing Persons per Persons per Housing Housing Type Persons Units Housing Unit Households Household Unit Mix Single-Unit Dwelling [1]31,140 13,355 2.33 12,534 2.48 59% Other Residential [2]16,235 9,110 1.78 8,451 1.92 41% Subtotal 47,375 22,465 2.11 20,985 2.26 [1] Includes attached and detached single family homes and mobile homes [2] Includes all other types Source: U.S. Census Bureau, 2021 American Community Survey 5-Year Estimates Owner-occupied 19,262 8,463 889 9,352 2.06 Renter-occupied 20,735 4,071 7,562 11,633 1.78 Total 39,997 12,534 8,451 20,985 1.91 Single-Unit Dwelling [1]24,680 12,534 1.97 Other Residential [2]15,292 8,451 1.81 Total 39,972 20,985 1.90 Source: U.S. Census Bureau, 2021 American Community Survey 5-Year Estimates Vehicles per HH by Tenure Housing Type Vehicles Available Housing Units Vehicles per Housing Unit Households Tenure Vehicles Available Single Family Multifamily Total 323 Transportation Service Area Report and Impact Fee Study Bozeman, Montana 42 Cells shaded yellow below are survey results for PUMA 400. Unadjusted persons per household (2.31), derived from PUMS data for the PUMA listed above, are adjusted downward to match the control totals for Bozeman (2.26), as shown above in Figure 41. Adjusted persons per household totals are shaded in gray. Figure 43. Persons by Bedroom Range Persons by Dwelling Size Average floor area and number of persons by bedroom range are plotted in Figure 44 with a logarithmic trend line derived from 2021 square footage estimates provided by the U.S. Census Bureau (West Region). Dwellings with two bedrooms or less average 1,032 square feet of floor area—based on multifamily dwellings constructed in the West Census Region. Three-bedroom dwellings average 2,118 square feet, four-bedroom dwellings average 2,932 square feet, and dwellings with five or more bedrooms average 4,269 square feet—based on single-unit dwellings constructed in the West Census Region. Using the trend line formula shown in the chart, TischlerBise derived the estimated average number of persons, by dwelling size, using 19 size thresholds, expanding the low and high range of the fee schedule. As shown in the upper-right corner of the table below, the smallest floor area range (under 600 square feet) has an estimated average of 1.06 persons per dwelling. The largest floor area range (4,001 square feet or more) has an estimated average of 3.08 persons per dwelling. 0-2 2,180 2,204 1,273 33% 1.71 1.68 1.73 1.46 3 3,508 3,443 1,471 38% 2.38 2.33 2.34 1.97 4 2,173 2,139 798 21% 2.72 2.67 2.68 2.25 5+ 1,070 958 327 8% 3.27 3.20 2.93 2.46 Total 8,931 8,744 3,869 100% 2.31 2.26 2.26 1.90 [1] American Community Survey, Public Use Microdata Sample for Montana PUMA 400 (2021 5-Year unweighted data). [2] Adjusted multipliers are scaled to make the average PUMS values match control totals for Bozeman based on 2021 American Community Survey 5-Year Estimates. Unadjusted PPHH Adjusted PPHH2 Unadjusted VPHH Adjusted VPHH2 Bedroom Range Persons1 Vehicles Available1 Households1 Housing Mix 324 Transportation Service Area Report and Impact Fee Study Bozeman, Montana 43 Figure 44. Persons by Dwelling Size Person by Dwelling Size and Housing Type The PPHH factors in Figure 44 represents an average over all housing types in Bozeman. An equivalent dwelling unit (EDU) analysis is completed to calculate the PPHH by size for single-unit dwellings and other residential units. Shown in Figure 45, one single-unit EDU is set to the average sized single-unit dwelling in Bozeman (2,201 to 2,400 square feet). The EDU factor for the other size thresholds is found by comparing the PPHH factors, for example, a single-unit dwelling from 1,801 to 2,000 square feet is 0.92 EDUs (2.28 PPHH / 2.48 PPHH = 0.92 EDUs). Bedrooms Square Feet Persons Sq Ft Range Persons 0-2 1,032 1.68 Under 600 1.06 3 2,118 2.33 600 to 800 1.23 4 2,932 2.67 801 to 1,000 1.49 5+4,269 3.20 1,001 to 1,200 1.70 1,201 to 1,400 1.88 1,401 to 1,600 2.03 1,601 to 1,800 2.16 1,801 to 2,000 2.28 2,001 to 2,200 2.38 2,201 to 2,400 2.48 2,401 to 2,600 2.56 2,601 to 2,800 2.64 2,801 to 3,000 2.72 3,001 to 3,200 2.79 3,201 to 3,400 2.85 3,401 to 3,600 2.92 3,601 to 3,800 2.97 3,801 to 4,000 3.03 4,001 or More 3.08 Actual Averages per Hsg Unit Fitted-Curve Values y = 1.0498ln(x) -5.6504 R² = 0.9878 0.00 0.50 1.00 1.50 2.00 2.50 3.00 3.50 0 1,000 2,000 3,000 4,000 5,000Person per HouseholdSquare Feet of Living Area Persons per Household by Square Feet of Dwelling Average persons per household derived from 2021 ACS PUMS data for the area that includes Bozeman. Unit size for 0-2 bedroom is from the 2021 U.S. Census Bureau average for all multifamily units constructed in the Census West region. Unit size for all other bedrooms is from the 2021 U.S. Census Bureau average for single-unit dwellings constructed in the Census Mountain division. 325 Transportation Service Area Report and Impact Fee Study Bozeman, Montana 44 The EDU factors for the size threshold is then combined with the average PPHH for single-unit dwelling. For example, found with US Census ACS 2021 data (Figure 26) the average single-unit dwelling home in Bozeman is 2.48 persons, thus a single-unit home from 1,801 to 2,000 square feet is 2.28 persons (0.92 EDUs x 2.48 persons = 2.28 persons per household). Figure 45. Single-Unit Dwelling PPHH by Size Shown in Figure 46, one Other Residential EDU is set to the average sized Other Residential dwelling in Bozeman (1,401 to 1,600 square feet). The EDU factor for the other size thresholds is found by comparing the PPHH factors, for example, a unit from 1,001 to 1,200 square feet is 0.84 EDUs (1.70 PPHH / 2.03 PPHH = 0.84 EDUs). The EDU factors for the size threshold is then combined with the average PPHH for other residential dwellings. For example, found with US Census ACS 2021 data (Figure 26) the average other residential dwelling home in Bozeman is 1.92 persons, thus a single-unit home from 1,001 to 1,200 square feet is 1.61 persons (0.84 EDUs x 1.92 persons = 1.61 persons per household). Single-Unit Dwelling including Townhomes Single-Unit EDU Factor PPHH Under 600 1.06 0.43 1.06 600 to 800 1.23 0.50 1.23 801 to 1,000 1.49 0.60 1.49 1,001 to 1,200 1.70 0.69 1.70 1,201 to 1,400 1.88 0.76 1.88 1,401 to 1,600 2.03 0.82 2.03 1,601 to 1,800 2.16 0.87 2.16 1,801 to 2,000 2.28 0.92 2.28 2,001 to 2,200 2.38 0.96 2.38 2,201 to 2,400 (avg. single)2.48 1.00 2.48 2,401 to 2,600 2.56 1.03 2.56 2,601 to 2,800 2.64 1.06 2.64 2,801 to 3,000 2.72 1.10 2.72 3,001 to 3,200 2.79 1.13 2.79 3,201 to 3,400 2.85 1.15 2.85 3,401 to 3,600 2.92 1.18 2.92 3,601 to 3,800 2.97 1.20 2.97 3,801 to 4,000 3.03 1.22 3.03 4,001 or More 3.08 1.24 3.08 Average 2.48 Dwelling Size (squre feet) Overall PPHH 326 Transportation Service Area Report and Impact Fee Study Bozeman, Montana 45 Figure 46. Other Residential PPHH by Size Other Residential Other Res. EDU Factor PPHH Under 600 1.06 0.52 1.00 600 to 800 1.23 0.61 1.16 801 to 1,000 1.49 0.73 1.41 1,001 to 1,200 1.70 0.84 1.61 1,201 to 1,400 1.88 0.93 1.78 1,401 to 1,600 (avg. other)2.03 1.00 1.92 1,601 to 1,800 2.16 1.06 2.04 1,801 to 2,000 2.28 1.12 2.16 2,001 to 2,200 2.38 1.17 2.25 2,201 to 2,400 2.48 1.22 2.35 2,401 to 2,600 2.56 1.26 2.42 2,601 to 2,800 2.64 1.30 2.50 2,801 to 3,000 2.72 1.34 2.57 3,001 to 3,200 2.79 1.37 2.64 3,201 to 3,400 2.85 1.40 2.70 3,401 to 3,600 2.92 1.44 2.76 3,601 to 3,800 2.97 1.46 2.81 3,801 to 4,000 3.03 1.49 2.87 4,001 or More 3.08 1.52 2.91 Average 1.92 Overall PPHH Dwelling Size (squre feet) 327 Transportation Service Area Report and Impact Fee Study Bozeman, Montana 46 Trip Generation by Dwelling Size Rather than rely on one methodology, the recommended trip generation rates shown at the bottom of Figure 47, shaded gray, are an average of trip rates based on persons and vehicles available for all types of housing units. In Bozeman, the average household is expected to yield 8.86 average weekday vehicle trip ends (AWVTE), compared to the national weighted average of 7.45 trip ends per household. Figure 47. Average Weekday Vehicle Trip Ends by Bedroom Range 0-2 2,180 2,204 1,273 33% 1.71 1.68 1.73 1.46 3 3,508 3,443 1,471 38% 2.38 2.33 2.34 1.97 4 2,173 2,139 798 21% 2.72 2.67 2.68 2.25 5+ 1,070 958 327 8% 3.27 3.20 2.93 2.46 Total 8,931 8,744 3,869 100% 2.31 2.26 2.26 1.90 National Averages According to ITE 210 SFD 2.65 6.36 9.43 59%3.56 1.48 221 Apt 3.31 5.10 4.54 41%1.37 0.89 Weighted Avg 2.92 5.85 7.45 100%2.67 1.24 Recommended AWVTE per Household 0-2 4.91 8.54 6.73 3 6.80 11.52 9.16 4 7.80 13.16 10.48 5+ 9.34 14.39 11.87 Average 6.60 11.12 8.86 210 SFD 6.80 11.52 9.16 2.33 1.97 220 Apt 5.20 10.59 7.90 1.78 1.81 All Types 6.16 11.12 8.64 2.11 1.90 Unadjusted VPHH Bedroom Range AWVTE per HH Based on Persons3 AWVTE per HH Based on Vehicles4 AWVTE per Household5 ITE Code AWVTE per Person AWVTE per Vehicle AWVTE per HH Unadjusted PPHH Unadjusted PPHH Adjusted PPHH2 Unadjusted VPHH Adjusted VPHH2 ITE Code AWVTE per Person AWVTE per Vehicle AWVTE per HH Housing Mix Persons per Household Vehicles per Household Bedroom Range Persons1 Vehicles Available1 Households1 Housing Mix 1.American Community Survey,Public Use Microdata Sample for Montana PUMA 400 (2021 5-Year unweighted data). 2.Adjusted multipliers are scaled to make the average PUMSvaluesmatchcontroltotalsforBozemanbasedon2021 American CommunitySurvey 5-Year Estimates.3.Adjusted persons per household multiplied by national weighted average triprate perperson. 4.Adjusted vehicles available per household multiplied by national weighted average trip rateper vehicle.5.Average trip rates based on persons and vehicles per household. 328 Transportation Service Area Report and Impact Fee Study Bozeman, Montana 47 Vehicle Trip Ends by Dwelling Size To derive AWVTE by dwelling size, TischlerBise matched trip generation rates and average floor area, by bedroom range, as shown in Figure 48, with a logarithmic trend line derived from 2021 square footage estimates provided by the U.S. Census Bureau (West Region). Using the trend line formula shown in the chart, TischlerBise derived the estimated average weekday vehicle trip ends, by dwelling size, using 19 size thresholds, expanding the low and high range of the fee schedule. As shown in the upper-right corner of the table below, the smallest floor area range (under 600 square feet) generates an estimated average of 4.70 trip ends per dwelling. The largest floor area range (4,001 square feet or more) generates an estimated average of 11.68 trip ends per dwelling. Figure 48. Vehicle Trip Ends by Dwelling Size Bedrooms Square Feet Trip Ends Sq Ft Range Trip Ends 0-2 1,032 6.73 Under 600 4.70 3 2,118 9.16 600 to 800 5.27 4 2,932 10.48 801 to 1,000 6.18 5+4,269 11.87 1,001 to 1,200 6.91 1,201 to 1,400 7.51 1,401 to 1,600 8.03 1,601 to 1,800 8.49 1,801 to 2,000 8.89 2,001 to 2,200 9.25 2,201 to 2,400 9.58 2,401 to 2,600 9.88 2,601 to 2,800 10.16 2,801 to 3,000 10.42 3,001 to 3,200 10.66 3,201 to 3,400 10.89 3,401 to 3,600 11.10 3,601 to 3,800 11.30 3,801 to 4,000 11.50 4,001 or More 11.68 Actual Averages per Hsg Unit Fitted-Curve Values y = 3.6254ln(x) -18.482 R² = 0.9986 0.00 2.00 4.00 6.00 8.00 10.00 12.00 14.00 0 1,000 2,000 3,000 4,000 5,000Trip Ends per HouseholdSquare Feet of Living Area Vehicle Trips by Square Feet of Dwelling Vehicle trips by dwelling size are derived from 2021 ACS PUMS data for the area that includes Bozeman. Unit size for 0-2 bedroom is from the 2021 U.S. Census Bureau average for all multifamily units constructed in the Census West region. Unit size for all other bedrooms is from the 2021 U.S. Census Bureau average for single-unitdwellings constructed in the Census Mountain division. 329 Transportation Service Area Report and Impact Fee Study Bozeman, Montana 48 Vehicle Trip Ends by Dwelling Size and Housing Type The vehicle trip end factors in Figure 48 represents an average over all housing types in Bozeman. An equivalent dwelling unit (EDU) analysis is completed to calculate the trip ends by size for single-unit dwellings and other residential units. Shown in Figure 49, one single-unit EDU is set to the average sized single-unit dwelling in Bozeman (2,201-2,400 square feet). The EDU factor for the other size thresholds is found by comparing the trip factors, for example, homes from 1,801 to 2,000 square feet are 0.93 EDUs (8.89 trip ends / 9.58 trip ends = 0.93 EDUs). The EDU factors for the size threshold is then combined with the average trip end factor for single-unit dwellings to find the trip ends by size. For example, found with US Census ACS 2021 data (Figure 36) the average single-unit dwelling in Bozeman generates 9.27 trip ends, thus a single-unit dwelling from 1,801 to 2,000 square feet has a trip end factor of 8.60 (0.93 EDUs x 9.27 trip ends = 8.60 trip ends per household). Figure 49. Single-Unit Dwelling Trip Ends by Size Shown in Figure 50, one Other Residential EDU is set to the average sized Other Residential dwelling in Bozeman (1,401 to 1,600 square feet). The EDU factor for the other size thresholds is found by comparing the trip factors, for example, homes from 1,001 to 1,200 square feet are 0.86 EDUs (6.91 trip ends / 8.03 trip ends = 0.86 EDUs). The EDU factors for the size threshold is then combined with the average trip end factor for other residential dwellings to find the trip ends by size. For example, found with US Census ACS 2021 data (Figure 36) the average other residential dwelling in Bozeman generates 5.36 trip ends, thus an other Single-Unit Dwelling including Townhomes Single-Unit EDU Factor Trip Ends Under 600 4.70 0.49 4.55 600 to 800 5.27 0.55 5.10 801 to 1,000 6.18 0.65 5.98 1,001 to 1,200 6.91 0.72 6.69 1,201 to 1,400 7.51 0.78 7.27 1,401 to 1,600 8.03 0.84 7.77 1,601 to 1,800 8.49 0.89 8.22 1,801 to 2,000 8.89 0.93 8.60 2,001 to 2,200 9.25 0.97 8.95 2,201 to 2,400 (avg. single)9.58 1.00 9.27 2,401 to 2,600 9.88 1.03 9.56 2,601 to 2,800 10.16 1.06 9.83 2,801 to 3,000 10.42 1.09 10.08 3,001 to 3,200 10.66 1.11 10.32 3,201 to 3,400 10.89 1.14 10.54 3,401 to 3,600 11.10 1.16 10.74 3,601 to 3,800 11.30 1.18 10.93 3,801 to 4,000 11.50 1.20 11.13 4,001 or More 11.68 1.22 11.30 Average 9.27 Dwelling Size (squre feet) Overall Trip Ends 330 Transportation Service Area Report and Impact Fee Study Bozeman, Montana 49 residential dwelling from 1,001 to 1,200 square feet has a trip end factor of 4.61 (0.86 EDUs x 5.36 trip ends = 4.61 trip ends per household). Figure 50. Other Residential Trip Ends by Size Other Residential Other Res. EDU Factor Trip Ends Under 600 4.70 0.59 3.14 600 to 800 5.27 0.66 3.52 801 to 1,000 6.18 0.77 4.13 1,001 to 1,200 6.91 0.86 4.61 1,201 to 1,400 7.51 0.94 5.01 1,401 to 1,600 (avg. other)8.03 1.00 5.36 1,601 to 1,800 8.49 1.06 5.67 1,801 to 2,000 8.89 1.11 5.93 2,001 to 2,200 9.25 1.15 6.17 2,201 to 2,400 9.58 1.19 6.39 2,401 to 2,600 9.88 1.23 6.59 2,601 to 2,800 10.16 1.27 6.78 2,801 to 3,000 10.42 1.30 6.96 3,001 to 3,200 10.66 1.33 7.12 3,201 to 3,400 10.89 1.36 7.27 3,401 to 3,600 11.10 1.38 7.41 3,601 to 3,800 11.30 1.41 7.54 3,801 to 4,000 11.50 1.43 7.68 4,001 or More 11.68 1.45 7.80 Average 5.36 Overall Trip Ends Dwelling Size (squre feet) 331 Transportation Service Area Report and Impact Fee Study Bozeman, Montana 50 APPENDIX B: LAND USE DEFINITIONS Residential Development Single-Unit Dwelling: 1. Single-family detached is a one-unit structure detached from any other house, that is, with open space on all four sides. Such structures are considered detached even if they have an adjoining shed or garage. A one-family house that contains a business is considered detached as long as the building has open space on all four sides. 2. Single-family attached (townhouse) is a one-unit structure that has one or more walls extending from ground to roof separating it from adjoining structures. In row houses (sometimes called townhouses), double houses, or houses attached to nonresidential structures, each house is a separate, attached structure if the dividing or common wall goes from ground to roof. 3. Mobile home includes both occupied and vacant mobile homes, to which no permanent rooms have been added, are counted in this category. Mobile homes used only for business purposes or for extra sleeping space and mobile homes for sale on a dealer's lot, at the factory, or in storage are not counted in the housing inventory. Other Residential: 1. 2+ units (duplexes and apartments) are units in structures containing two or more housing units, further categorized as units in structures with “2, 3 or 4, 5 to 9, 10 to 19, 20 to 49, and 50 or more apartments.” 2. Boat, RV, Van, etc. includes any living quarters occupied as a housing unit that does not fit the other categories (e.g., houseboats, railroad cars, campers, and vans). Recreational vehicles, boats, vans, railroad cars, and the like are included only if they are occupied as a current place of residence. Such living quarters are only allowed under Bozeman zoning under unusual temporary conditions. Nonresidential Development Nonresidential development categories represent general groups of land uses that share similar average weekday vehicle trip generation rates and employment densities (i.e., jobs per 1,000 square feet). Retail: Establishments primarily selling merchandise, eating/drinking places, and entertainment uses. By way of example, Retail includes shopping centers, supermarkets, pharmacies, restaurants, bars, nightclubs, automobile dealerships, and movie theaters. Industrial: Establishments primarily engaged in the production, transportation, or storage of goods. By way of example, Industrial includes manufacturing plants, distribution warehouses, trucking companies, utility substations, power generation facilities, and telecommunications buildings. Office: Establishments providing management, administrative, professional, or business services. By way of example, Office can include business offices, office parks, and corporate headquarters. Institutional: Establishments providing education and healthcare services. By way of example, Institutional includes universities, nursing homes, daycare facilities, and hospitals. 332 MCA Contents / TITLE 7 / CHAPTER 6 / Part 16 / 7-6-1602 Calculation of… Montana Code Annotated 2023 TITLE 7. LOCAL GOVERNMENT CHAPTER 6. FINANCIAL ADMINISTRATION AND TAXATION Part 16. Impact Fees to Fund Capital Improvements Calculation Of Impact Fees -- Documentation Required -- Ordinance Or Resolution -- Requirements For Impact Fees 7-6-1602. Calculation of impact fees -- documentation required -- ordinance or resolution -- requirements for impact fees. (1) For each public facility for which an impact fee is imposed, the governmental entity shall prepare and approve a service area report. (2) The service area report is a written analysis that must: (a) describe existing conditions of the facility; (b) establish level-of-service standards; (c) forecast future additional needs for service for a defined period of time; (d) identify capital improvements necessary to meet future needs for service; (e) identify those capital improvements needed for continued operation and maintenance of the facility; (f) make a determination as to whether one service area or more than one service area is necessary to establish a correlation between impact fees and benefits; (g) make a determination as to whether one service area or more than one service area for transportation facilities is needed to establish a correlation between impact fees and benefits; (h) establish the methodology and time period over which the governmental entity will assign the proportionate share of capital costs for expansion of the facility to provide service to new development within each service area; (i) establish the methodology that the governmental entity will use to exclude operations and maintenance costs and correction of existing deficiencies from the impact fee; (j) establish the amount of the impact fee that will be imposed for each unit of increased service demand; and (k) have a component of the budget of the governmental entity that: (i) schedules construction of public facility capital improvements to serve projected growth; (ii) projects costs of the capital improvements; (iii) allocates collected impact fees for construction of the capital improvements; and (iv) covers at least a 5-year period and is reviewed and updated at least every 5 years. 333 (3) The service area report is a written analysis that must contain documentation of sources and methodology used for purposes of subsection (2) and must document how each impact fee meets the requirements of subsection (7). (4) The service area report that supports adoption and calculation of an impact fee must be available to the public upon request. (5) The amount of each impact fee imposed must be based upon the actual cost of public facility expansion or improvements or reasonable estimates of the cost to be incurred by the governmental entity as a result of new development. The calculation of each impact fee must be in accordance with generally accepted accounting principles. (6) The ordinance or resolution adopting the impact fee must include a time schedule for periodically updating the documentation required under subsection (2). (7) An impact fee must meet the following requirements: (a) The amount of the impact fee must be reasonably related to and reasonably attributable to the development's share of the cost of infrastructure improvements made necessary by the new development. (b) The impact fees imposed may not exceed a proportionate share of the costs incurred or to be incurred by the governmental entity in accommodating the development. The following factors must be considered in determining a proportionate share of public facilities capital improvements costs: (i) the need for public facilities capital improvements required to serve new development; and (ii) consideration of payments for system improvements reasonably anticipated to be made by or as a result of the development in the form of user fees, debt service payments, taxes, and other available sources of funding the system improvements. (c) Costs for correction of existing deficiencies in a public facility may not be included in the impact fee. (d) New development may not be held to a higher level of service than existing users unless there is a mechanism in place for the existing users to make improvements to the existing system to match the higher level of service. (e) Impact fees may not include expenses for operations and maintenance of the facility. History: En. Sec. 2, Ch. 299, L. 2005; amd. Sec. 1, Ch. 358, L. 2009; amd. Sec. 1, Ch. 276, L. 2015. Created by 334 FY26‐30 TRANSPORTATION CAPITAL IMPROVEMENT PROGRAMFUNDING SOURCES335 MEMORANDUM TO: COMMUNITY DEVELOPMENT BOARD FROM: CHRIS SAUNDERS, COMMUNITY DEVELOPMENT MANAGER DATE: AUGUST 14, 2024 SUBJECT: IMPACT FEE USE BY OTHER MONTANA COMMUNITIES The Community Development Board expressed interest in the impact fees used by other communities in the state. Staff has surveyed likely communities and obtained information as follows. Belgrade: Belgrade is currently working on an update to their impact fees. An RFP was issued in March and a consultant was selected. Belgrade has adopted impact fees for Parks, Water, Sewer, Streets, and Fire. Fees were most recently updated in 2019 and have not been inflation adjusted since then. They recently merged fire services with Central Valley Fire District. Fees are charged for both residential and non-residential uses. They do not divide fees as finely as Bozeman does. Fees for a single detached home (no specified size) are: Parks $1,139 Water $4,786 Sewer $2,709 Streets $5,238 Fire $272 Administration fee of 5% $707.20 Missoula: Missoula has adopted impact fees for Community Services (various governmental general functions, vehicles, and equipment), Parks and Open Space, Transportation, Police, and Fire. City-wide fees were updated in 2019. Fees are charged for both residential and non-residential uses. They divide fees similar to how Bozeman does with gradations for housing size but different size bands. Fees for a single detached home (2,400 sq. ft.) are: Community Services $1,406 Parks and Open Space $4,904 Transportation $1,602 Police $151 Fire $506 336 Page 2 of 2 Whitefish: Whitefish has adopted impact fees for Water, Sewer, Stormwater, Police, and Fire. Fees were most recently adopted in 2023. Fees are charged for both residential and non-residential uses. They divide some fees by square footage of home but less finely than Bozeman does. Water and sewer are set by meter size for all uses. Fees for a single detached home (2,400 sq. ft.) are: Parks & Recreation $419 Paved Trails $912 City Hall $1,138 Police $551 Fire $790 Water $3,903 Sewer $4,041 Kalispell: Kalispell has adopted impact fees for Water, Sewer, Stormwater, Police, and Fire. Fees were adopted in 2015-2019. They have recently begun inflation adjustments. Fees are charged for both residential and non-residential uses. They do not divide fees as finely as Bozeman does. Fees for a single detached home (no specified size) are: Water $2,138 Sewer $3,240 Stormwater $618 Police $41 Fire $438 Helena, Great Falls, and Billings have not chosen to use impact fees as part of their infrastructure funding approach. 337 Memorandum REPORT TO:City Commission FROM:Chris Saunders, Community Development Manager Erin George, Community Development Interim Director SUBJECT:Resolution 5658 Adopting the 2024 Service Area Report for Transportation Impact Fees and Establishing an Effective Date MEETING DATE:December 10, 2024 AGENDA ITEM TYPE:Resolution RECOMMENDATION:Consider the Motion: Having reviewed and considered the staff presentation, public comment, and all information presented, I hereby adopt the findings of Resolution 5658 and adopt Resolution 5658 with an effective date of January 1, 2025. STRATEGIC PLAN:7.5. Funding and Delivery of City Services: Use equitable and sustainable sources of funding for appropriate City services, and deliver them in a lean and efficient manner. BACKGROUND:The City of Bozeman first adopted impact fees in 1996 and has used them continuously since. The State of Montana authorizes local government impact fees through Title 7, Chapter 6, Part 16, Montana Code Annotated (MCA) [External Link]. A key part of the state authorization is the requirement for a local government to prepare a service area report (SAR) for each fee type. The SAR consolidates key information relating to the future needs for infrastructure, expected means to provide the infrastructure, and the process by which the cost of additional services are assigned to units of new development. The City updates the SAR at least every four years to help ensure the fees are accurate, reflect current construction costs and service needs, and remain roughly proportionate and logically connected in the benefits to the development that pays the fees. The City hired TischlerBise, a nationally prominent specialist in impact fees, to support the City in updating the impact fee SAR. Staff has reviewed the draft Transportation SAR prepared by TischlerBise on behalf of the City and finds that the document meets the requirements of state law for an SAR. The SAR is in writing, the document has been provided to the public for review through the Engage Bozeman website [External Link] as well as the agenda for the Community Development Board meeting and the City Commission agenda. The City has an annual process to update a 338 capital improvement program to schedule construction of public facility capital improvements. As shown in the SAR, actual costs of construction and reasonable estimate of costs have been used, forecast for future needs are provided, necessary facilities to serve future growth are identified, and the appropriateness of a single service area is established. No maintenance or operational costs are included in the calculated fee. All other necessary elements are also provided. The City published formal notice in the Bozeman Daily Chronicle on 10/26/2024, 11/09/2024, and 11/30/2024 of the public hearings before the Community Development Board and City Commission. A news item was included on the City's website, the Engage Bozeman impact fee update project website was established, several publicly available work sessions and training sessions regarding impact fees have been held during the project, and direct notification to interest groups occurred at the beginning of the project. The Community Development Board held a public hearing on the draft SAR on Nov 18th. The video and minutes of the hearing are available through the City's website [External Link]. Discussion on the SAR begins at 38:30 in the meeting. See the cover materials for the Transportation Service Area Report for more information on the Community Development Board hearing. The Board recommended unanimously, 7-0, approval to the City Commission. The action under this agenda item is specific to the Transportation impact fee. The City also implements fire, water, and wastewater impact fees. Service Area Reports for water and sewer impact fees are under development and will come forward for public review, Community Development Board recommendation, and City Commission action as they are completed. The City adopted an updated Service Area Report for Fire/EMS on Oct 1, 2024. The review of the SAR is an item on the Commission's December 10, 2024, agenda. Should the Commission find that the SAR is correct and meets all requirements then this action adopting Resolution 5658 formally adopts the service area report and sets the date that it will take effect as January 1, 2025. UNRESOLVED ISSUES: To accept or not accept the suggested effective date. ALTERNATIVES:1. Approve the Resolution as submitted; 2. Approve the Resolution with a modified effective date; or 3. Open and continue the item, with specific request staff to supply additional information or to address specific items. FISCAL EFFECTS:Adoption by resolution of the Service Area Report will enable continued operation of the impact fee program to offset capital costs from new construction for transportation functions. 339 Attachments: Resolution 5658 Transportation 2024.docx Bozeman, MT Impact Fee Report_Transportation_10.17.24.pdf Report compiled on: November 26, 2024 340 Version Februar RESOLUTION 5658 A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF BOZEMAN, MONTANA, ADOPTING THE TRANSPORTATION IMPACT FEE SERVICE AREA REPORT PER ARTICLE 2.06, BMC AND ESTABLISHING TRANSPORTATION IMPACT FEES FEES AS STATED IN THE SERVICE AREA REPORT. WHEREAS,the City of Bozeman is committed to addressing the community’s expressed needs and desires for services; and WHEREAS,the City of Bozeman is committed to meeting those desires and demands for services in a fiscally responsible manner; and WHEREAS,the City of Bozeman is committed to meeting those desires and demands for services in a manner which recognizes the fiscal and legal interests of all of the system users now and in the future and not a limited subset of users; and WHEREAS, the City of Bozeman has developed and adopted a transportation master plan which examined current and future needs and provides a lawful, logical, balanced, operationally sound, and cost-effective basis upon which to maintain and develop the City’s Transportation system; and WHEREAS, the City Commission has chosen to utilize impact fees as one element of an integrated approach to fund and provide Transportation services; and WHEREAS, Sections 7-6-1601 through 7-6-1604, MCA provide specific authority and guidance regarding the documentation necessary to establish an impact fee and procedures to adopt and administer an impact fee; and WHEREAS, the City contracted with TischlerBise to provide professional services in development of an updated Transportation impact fee service area report; 341 Version Februar WHEREAS,TischlerBise reviewed the existing demand and needs for Transportation facilities, the existing facilities available to meet that demand, and the method of financing the existing systems and needed new facilities; and, WHEREAS, TischlerBise also reviewed the contribution made or to be made in the future in cash or by taxes, fees, or assessments by property owners towards the capital costs of Transportation facilities; and, WHEREAS,TishlerBise reviewed and relied upon the City of Bozeman’s level of service (LOS) standards and facility cost assumptions as established by recently constructed projects in recommending Transportation facilities impact fees; and, WHEREAS,TischlerBise has prepared the Service Area Report, presented to the City Commission on December 10, 2024, including the assumptions, population and residential and non-residential development projections, capital infrastructure and impact fee calculations, which Service Area Report has been submitted to and reviewed by City staff, Community Development Board acting in their capacity as the Impact Fee Advisory Committee, and City Commission; and, WHEREAS,the City develops its Transportation facility plans, and its capital improvements program in a manner open to the public and accepts and responds to public comment and input; and WHEREAS,the City and TischlerBise have developed the service area report in a manner open to the public and accepted and responded as appropriate to comment and input; and WHEREAS,the City of Bozeman Community Development Board in their capacity as the Impact Fee Advisory Committee has considered and made a recommendation to the City Commission on the service area report; and WHEREAS,the Community Development Board in their capacity as the Impact Fee Advisory Committee conducted a public hearing on the subject of the service area report on November 18, 2024, and the City Commission conducted a public hearing onDecember 10, 2024; and WHEREAS,no oral or written public comment was submitted; and 342 Version Februar WHEREAS,the City Commission reviewed and discussed the service area report and accepts and agrees with the content of the service area report and recognizes that updates and modifications will be made to the fee schedule in the future in accord with the annual cost adjustment requirements of Chapter 2, Article 6, Division 9 BMC; and WHEREAS,the City Commission finds that all required elements necessary for compliance with standards for development of an impact fee have been satisfied. NOW, THEREFORE, BE IT RESOLVED by the City Commission of the City of Bozeman, Montana, to wit: 1. The draft of the TransportationImpact FeeService Area Report, as contained in Exhibit "A", attached hereto and by this reference made a part hereof, is hereby adopted. 2. As of January1, 2025, any person who seeks to obtain any of the forms of development listed 2.06.1660, BMC must pay a Transportation Impact Fee pursuant to the schedule included in Exhibit A of this Resolution. PASSED, ADOPTED, AND APPROVED by the City Commission of the City of Bozeman, Montana, at a regular session thereof held on the 10th day of December 2024. ___________________________________ TERENCE CUNNINGHAM Mayor ATTEST: ___________________________________ MIKE MAAS City Clerk APPROVED AS TO FORM: ___________________________________ GREG SULLIVAN City Attorney 343 Transportation Service Area Report and Impact Fee Study Prepared for: Bozeman, Montana October 17, 2024 4701 Sangamore Road Suite S240 Bethesda, MD (301) 320-6900 www.TischlerBise.com 344 Transportation Service Area Report and Impact Fee Study Bozeman, Montana [PAGE INTENTIONALLY LEFT BLANK] 345 Transportation Service Area Report and Impact Fee Study Bozeman, Montana i Table of Contents Executive Summary ....................................................................................................................3 Montana Impact Fee Enabling Legislation ..............................................................................3 Public Facilities ................................................................................................................................ 3 Service Area Report ......................................................................................................................... 4 Legal Framework .....................................................................................................................4 Methodology ..........................................................................................................................6 Conceptual Impact Fee Calculation .................................................................................................. 7 Evaluation of Credits ........................................................................................................................ 7 Maximum Supportable Transportation Impact Fees ..............................................................8 Transportation Service Area Report .........................................................................................10 Service Area ................................................................................................................................... 10 Cost Allocation ............................................................................................................................... 10 Service Demand Units – Person Miles of Travel (PMT) ................................................................... 10 Vehicle Trip Length .................................................................................................................................. 10 Vehicle Trip Length Adjustments .............................................................................................................. 11 Percent of New Trips................................................................................................................................ 11 Trip Occupancy ........................................................................................................................................ 12 Calculation of Service Demand Units - Person Miles of Travel (PMT) .............................................. 14 Existing and Projected Growth in Service Area ............................................................................... 17 Planned Transportation Projects and Cost Components ......................................................19 Transportation Capital Cost per PMT ............................................................................................. 21 Credit for Other Revenues Sources .......................................................................................22 Transportation Personnel and Operations ............................................................................22 Maximum Supportable Transportation Impact Fees ............................................................23 Projected Transportation Impact Fee Revenue .....................................................................26 Trip Exchange Districts ..........................................................................................................27 Capital Improvement Plan ........................................................................................................29 Appendix A: Land Use Assumptions .........................................................................................30 Population and Housing Characteristics ...............................................................................30 Building Permit History .........................................................................................................30 Base Year Housing Units and Population ..............................................................................31 Housing Unit and Population Projections .............................................................................34 Current Employment and Nonresidential Floor Area ............................................................35 Employment and Nonresidential Floor Area Projections ......................................................35 Vehicle Trip Generation ........................................................................................................37 Residential Vehicle Trips by Housing Type ...................................................................................... 37 Residential Vehicle Trips Adjustment Factors ................................................................................. 38 Nonresidential Vehicle Trips .......................................................................................................... 38 Vehicle Trip Projections ........................................................................................................40 Demand Indicators by Dwelling Size .....................................................................................41 Bozeman Control Totals ................................................................................................................. 41 Demand Indicators by Dwelling Size ............................................................................................... 41 Persons by Dwelling Size ................................................................................................................ 42 346 Transportation Service Area Report and Impact Fee Study Bozeman, Montana ii Person by Dwelling Size and Housing Type ..................................................................................... 43 Trip Generation by Dwelling Size .................................................................................................... 46 Vehicle Trip Ends by Dwelling Size .................................................................................................. 47 Vehicle Trip Ends by Dwelling Size and Housing Type ..................................................................... 48 Appendix B: Land Use Definitions ............................................................................................50 Residential Development ............................................................................................................... 50 Nonresidential Development ......................................................................................................... 50 347 Transportation Service Area Report and Impact Fee Study Bozeman, Montana 3 EXECUTIVE SUMMARY The City of Bozeman, Montana, contracted with TischlerBise to document land use assumptions, prepare the Service Area Report, and update impact fees within the applicable service areas pursuant to Montana Code 7-6-16 (hereafter referred to as the “Enabling Legislation”). Governmental entities in Montana may assess impact fees to offset infrastructure costs to the governmental entity for public facilities needed to serve future development. For each public facility for which an impact fee is imposed, the governmental entity shall prepare and approve a service area report. The impact fees must (1) be reasonably related to and reasonably attributable to the development's share of the cost of infrastructure improvements made necessary by the new development and (2) may not exceed a proportionate share of the costs incurred or to be incurred by the governmental entity in accommodating the development. Impact fees are one-time payments used to construct system improvements needed to accommodate future development, and the fee represents future development’s proportionate share of infrastructure costs. Impact fees may be used for infrastructure improvements or debt service for growth-related infrastructure. In contrast to general taxes, impact fees may not be used for operations, maintenance, replacement, or correcting existing deficiencies. This Service Area Report and associated update to its impact fees are for Bozeman transportation infrastructure. In a tandem effort, TischlerBise is also updating the Service Area Reports for Fire/EMS, Water, and Wastewater public facilities. Montana Impact Fee Enabling Legislation The Enabling Legislation governs how impact fees are calculated for governmental entities in Montana. Public Facilities Under the requirements of the Enabling Legislation, impact fees may only be used for construction, acquisition, or expansion of public facilities made necessary by new development. “Public Facilities” means any of the following categories of capital improvements with a useful life of 10 years or more that increase or improve the service capacity of a public facility (§7-6-1601(7)): 1. a water supply production, treatment, storage, or distribution facility; 2. a wastewater collection, treatment, or disposal facility; 3. a transportation facility, including roads, streets, bridges, rights-of-way, traffic signals, and landscaping; 4. a storm water collection, retention, detention, treatment, or disposal facility or a flood control facility; 5. a police, emergency medical rescue, or fire protection facility; and 6. other facilities for which documentation is prepared as provided in 7-6-1602 that have been approved as part of an impact fee ordinance or resolution by: 7. a two-thirds majority of the governing body of an incorporated city, town, or consolidated local government; or 8. a unanimous vote of the board of county commissioners of a county government. 348 Transportation Service Area Report and Impact Fee Study Bozeman, Montana 4 Also, §7-6-1601(5a) states that "impact fee" means any charge imposed upon development by a governmental entity as part of the development approval process to fund the additional service capacity required by the development from which it is collected. An impact fee may include a fee for the administration of the impact fee not to exceed 5 percent of the total impact fee collected. Service Area Report For each public facility for which an impact fee is imposed, the governmental entity shall prepare and approve a service area report. The service area report is a written analysis that must: 1. describe existing conditions of the facility; 2. establish level-of-service standards; 3. forecast future additional needs for service for a defined period of time; 4. identify capital improvements necessary to meet future needs for service; 5. identify those capital improvements needed for continued operation and maintenance of the facility; 6. make a determination as to whether one service area or more than one service area is necessary to establish a correlation between impact fees and benefits; 7. make a determination as to whether one service area or more than one service area for transportation facilities is needed to establish a correlation between impact fees and benefits; 8. establish the methodology and time period over which the governmental entity will assign the proportionate share of capital costs for expansion of the facility to provide service to new development within each service area; 9. establish the methodology that the governmental entity will use to exclude operations and maintenance costs and correction of existing deficiencies from the impact fee; 10. establish the amount of the impact fee that will be imposed for each unit of increased service demand; and 11. have a component of the budget of the governmental entity that: a. schedules construction of public facility capital improvements to serve projected growth; b. projects costs of the capital improvements; c. allocates collected impact fees for construction of the capital improvements; and d. covers at least a 5-year period and is reviewed and updated at least every 5 years. Legal Framework Both state and federal courts have recognized the imposition of impact fees as a legitimate form of land use regulation, provided the fees meet standards intended to protect against regulatory takings. Land use regulations, development exactions, and impact fees are subject to the Fifth Amendment prohibition on taking of private property for public use without just compensation. To comply with the Fifth Amendment, development regulations must be shown to substantially advance a legitimate governmental interest. In the case of impact fees, that interest is in the protection of public health, safety, and welfare by ensuring development is not detrimental to the quality of essential public services. The means to this end are also important, requiring both procedural and substantive due process. The process followed to receive 349 Transportation Service Area Report and Impact Fee Study Bozeman, Montana 5 community input (i.e., stakeholder meetings, work sessions, and public hearings) provides opportunities for comments and refinements to the impact fees. There are three reasonable relationship requirements for impact fees that are closely related to “rational nexus”, or “reasonable relationship” requirements enunciated by a number of state courts. Although the term “dual rational nexus” is often used to characterize the standard by which courts evaluate the validity of impact fees under the U.S. Constitution, we prefer a more rigorous formulation that recognizes three elements: “need,” “benefit,” and “proportionality.” The dual rational nexus test explicitly addresses only the first two, although proportionality is reasonably implied, and was specifically mentioned by the U.S. Supreme Court in the Dolan case (Dolan v. City of Tigard, OR, 1994). Furthermore, the plaintiff in the 2024 Sheetz v. El Dorado County U.S. Supreme Court case argued that the El Dorado County, CA impact fee program failed to meet the Nollan/Dolan test. The U.S. Supreme Court remanded the case back to the California Supreme Court for further proceedings on a stricter interpretation of the rational nexus, specifically the extent impact fees can be “roughly proportionate.” Thus, is has been determined that State courts will make judgements further similar cases. Individual elements of the nexus standard are discussed further in the following paragraphs. All new development in a community creates additional demands on some, or all, public facilities provided by local government. If the capacity of facilities is not increased to satisfy that additional demand, the quality or availability of public services for the entire community will deteriorate. Impact fees may be used to recover the cost of development-related facilities, but only to the extent that the need for facilities is a consequence of development that is subject to the fees. The Nollan decision reinforced the principle that development exactions may be used only to mitigate conditions created by the developments upon which they are imposed. That principle clearly applies to impact fees. In this study, the impact of development on infrastructure needs is analyzed in terms of quantifiable relationships between various types of development and the demand for specific capital facilities, based on applicable level-of-service standards. The requirement that exactions be proportional to the impacts of development was clearly stated by the U.S. Supreme Court in the Dolan case and is logically necessary to establish a proper nexus. Proportionality is established through the procedures used to identify development-related facility costs, and in the methods used to calculate impact fees for various types of facilities and categories of development. The demand for capital facilities is measured in terms of relevant and measurable attributes of development (e.g., a typical housing unit’s average weekday vehicle trips). A sufficient benefit relationship requires that impact fee revenues be segregated from other funds and expended only on the facilities for which the fees were charged. Impact fees must be expended in a timely manner and the facilities funded by the fees must serve the development paying the fees. However, nothing in the U.S. Constitution or the state enabling legislation requires that facilities funded with fee revenues be available exclusively to development paying the fees. In other words, benefit may extend to a general area including multiple real estate developments. Procedures for the earmarking and expenditure of fee revenues are discussed near the end of this study. All of these procedural as well as substantive issues are intended to ensure that new development benefits from the impact fees they are 350 Transportation Service Area Report and Impact Fee Study Bozeman, Montana 6 required to pay. The authority and procedures to implement impact fees are separate from and complementary to the authority to require improvements as part of subdivision or zoning review. As documented in this report, the City of Bozeman has complied with applicable legal precedents. Impact fees are proportionate and reasonably related to the capital improvement demands of new development. Specific costs have been identified using local data and current dollars. With input from City staff, TischlerBise identified service demand indicators for each type of infrastructure and calculated proportionate share factors to allocate costs by type of development. This report documents the formulas and input variables used to calculate the impact fees for each type of public facility. Impact fee methodologies also identify the extent to which new development is entitled to various types of credits to avoid potential double payment of growth-related capital costs. Methodology Impact fees for public facilities made necessary by new development must be based on the same level of service provided to existing development in the service area. There are three basic methodologies used to calculate impact fees. They examine the past, present, and future status of infrastructure. The objective of evaluating these different methodologies is to determine the best measure of the demand created by new development for additional infrastructure capacity. Each method has advantages and disadvantages in a particular situation and can be used simultaneously for different cost components. Additionally, impact fees for public facilities can also include a fee for the administration of the impact fee not to exceed five percent of the total impact fee collected. Reduced to its simplest terms, the process of calculating impact fees involves two main steps: (1) determining the cost of growth-related capital improvements and (2) allocating those costs equitably to various types of development. In practice, though, the calculation of impact fees can become quite complicated because of the many variables involved in defining the relationship between development and the need for facilities within the designated service area. The following paragraphs discuss basic methods for calculating impact fees and how those methods can be applied. • Cost Recovery (past improvements) - The rationale for recoupment, often called cost recovery, is that future development is paying for its share of the useful life and remaining capacity of facilities already built, or land already purchased, from which future development will benefit. This methodology is often used for utility systems that must provide adequate capacity before new development can take place. • Incremental Expansion (concurrent improvements) - The incremental expansion methodology documents current level-of-service standards for each type of public facility, using both quantitative and qualitative measures. This approach assumes there are no existing infrastructure deficiencies or surplus infrastructure capacity. Future development is only paying its proportionate share for growth-related infrastructure. Revenue will be used to expand or provide additional facilities, as needed, to accommodate future development. An incremental expansion methodology is best suited for public facilities that will be expanded in regular increments to keep pace with development. • Plan-Based (future improvements) - The plan-based methodology allocates costs for a specified set of improvements to a specified amount of development. Improvements are typically identified in a 351 Transportation Service Area Report and Impact Fee Study Bozeman, Montana 7 long-range facility plan and development potential is identified by a land use plan. There are two basic options for determining the cost per service demand unit: (1) total cost of a public facility can be divided by total service demand units (average cost), or (2) the growth-share of the public facility cost can be divided by the net increase in service demand units over the planning timeframe (marginal cost). Conceptual Impact Fee Calculation In contrast to project-level improvements, impact fees fund growth-related infrastructure that will benefit multiple development projects, or the entire service area (usually referred to as system improvements). The first step is to determine an appropriate service demand unit for the particular type of infrastructure. The service demand indicator measures the number of service units for each unit of development. For example, an appropriate indicator of the demand for roadways is vehicle trips or vehicle miles of travel that can be determined by development type. The second step in the impact fee formula is to determine infrastructure improvement units per service demand unit, typically called level of service (LOS) standards. In keeping with the roadway example, a common LOS standard is volume to capacity ratio. The third step in the impact fee formula is the cost of various infrastructure units. To complete the roadway example, this part of the formula would establish a construction cost per lane mile of road expansion. The body of the report will detail these steps specific to the Bozeman Transportation Impact Fee analysis. For reference, the service units can be found on page 14; LOS standards on page 10; and infrastructure cost on page 19. Evaluation of Credits The consideration of credits is integral to the development of a legally defensible impact fee. There are two types of credits that should be addressed in impact fee studies and ordinances. The first is a revenue credit due to possible double payment situations, which could occur when other revenues expected to be paid by future development may contribute to the capital costs of infrastructure covered by the impact fee. This type of credit is integrated into the fee calculation, thus reducing the fee amount. The second type of credit is a site-specific credit for system improvements that have been included in the impact fee calculations. Policies and procedures related to site-specific credits for system improvements are addressed in the ordinance that establishes the impact fees. However, the general concept is that developers may be eligible for site-specific credits only if they provide system improvements that have been included in the impact fee calculations. Project improvements normally required as part of the development approval process are not eligible for credits against impact fees. Site-specific credits are addressed in the administration and implementation of the development fee program. Below, Figure 1 summarizes service areas, methodologies, and infrastructure cost components. Figure 1. Impact Fee Service Areas, Methodologies, and Cost Allocation Transportation Citywide -Roadway Expansion -Person Miles of Travel Cost AllocationFee Category Service Area Incremental Expansion Plan-Based Cost Recovery 352 Transportation Service Area Report and Impact Fee Study Bozeman, Montana 8 Maximum Supportable Transportation Impact Fees The following figures list the schedule of the maximum supportable impact fees by type of land use. The fees represent the highest amount allowable for each type of applicable land use. The City may adopt fees that are less than the amounts shown. However, a reduction in impact fee revenue will necessitate an increase in other revenues, a decrease in planned capital expenditures, and/or a decrease in levels of service. The maximum supportable impact fees for residential development will be assessed per housing unit, based on the square footage of the unit. This study presents additional size bands. The current fee schedule has 10 bands, while 19 bands are included in the update. Expanding the schedule allows for further proportionately. Nonresidential impact fees will be assessed per square foot of floor area. Figure 2. Maximum Supportable Impact Fee Schedule – Single-Unit Dwelling Including Townhomes Residential - Single-Unit Dwelling including Townhomes Residential (per housing unit) Under 600 $5,517 $6,938 ($1,421) 600 to 800 $6,182 $6,938 ($756) 801 to 1,000 $7,248 $6,938 $310 1,001 to 1,200 $8,437 $6,938 $1,499 1,201 to 1,400 $10,142 $6,938 $3,204 1,401 to 1,600 $11,680 $7,728 $3,952 1,601 to 1,800 $13,159 $8,431 $4,728 1,801 to 2,000 $14,490 $9,032 $5,458 2,001 to 2,200 $15,737 $9,605 $6,132 2,201 to 2,400 (avg.)$16,970 $10,098 $6,872 2,401 to 2,600 $18,082 $10,562 $7,520 2,601 to 2,800 $19,186 $11,007 $8,180 2,801 to 3,000 $20,291 $11,411 $8,880 3,001 to 3,200 $21,273 $11,530 $9,743 3,201 to 3,400 $22,235 $11,530 $10,705 3,401 to 3,600 $23,178 $11,530 $11,648 3,601 to 3,800 $23,992 $11,530 $12,462 3,801 to 4,000 $24,968 $11,530 $13,438 4,001 or More $25,756 $11,530 $14,226 Dwelling Size (square feet) Maximum Supportable Fee Current Fee Increase/ Decrease 353 Transportation Service Area Report and Impact Fee Study Bozeman, Montana 9 Figure 3. Transportation Maximum Supportable Impact Fee Schedule – Other Residential Figure 4. Transportation Maximum Supportable Impact Fee Schedule – Nonresidential Residential - Other Residential Residential (per housing unit) Under 600 $3,805 $4,311 ($506) 600 to 800 $4,270 $4,311 ($41) 801 to 1,000 $5,007 $4,311 $696 1,001 to 1,200 $5,588 $4,311 $1,277 1,201 to 1,400 $6,557 $4,311 $2,246 1,401 to 1,600 (avg.)$7,603 $4,806 $2,797 1,601 to 1,800 $8,521 $5,229 $3,292 1,801 to 2,000 $9,490 $5,610 $3,880 2,001 to 2,200 $10,246 $5,955 $4,291 2,201 to 2,400 $11,079 $6,264 $4,815 2,401 to 2,600 $11,744 $6,549 $5,195 2,601 to 2,800 $12,500 $6,816 $5,684 2,801 to 3,000 $13,243 $7,078 $6,165 3,001 to 3,200 $13,895 $7,148 $6,747 3,201 to 3,400 $14,464 $7,148 $7,316 3,401 to 3,600 $15,097 $7,148 $7,949 3,601 to 3,800 $15,633 $7,148 $8,485 3,801 to 4,000 $16,292 $7,148 $9,144 4,001 or More $16,738 $7,148 $9,590 Group Quarters (per person) Group Quarters $3,760 $2,556 $1,204 Dwelling Size (square feet) Maximum Supportable Fee Current Fee Increase/ Decrease Nonresidential Nonresidential (per 1,000 square feet) Retail/Restaurant $19,115 $11,920 $7,195 Research & Development Center $6,027 $6,155 ($128) Office $4,703 $4,087 $616 Hospital $5,136 $7,860 ($2,724) Day Care (per student)$1,828 $688 $1,140 Secondary School $6,880 $5,256 $1,624 Elementary School $9,554 $7,287 $2,267 Lodging (per room)$1,583 $1,584 ($1) Assisted Living (per bed)$1,137 $816 $321 Mini-warehouse $627 $429 $198 Warehouse $736 $729 $8 Manufacturing $2,067 $1,637 $430 Light Industrial $2,119 $2,074 $45 Maximum Supportable Fee Current Fee Increase/ DecreaseDevelopment Type 354 Transportation Service Area Report and Impact Fee Study Bozeman, Montana 10 TRANSPORTATION SERVICE AREA REPORT The Bozeman Transportation Impact Fee Study includes roadway expansion for vehicle and multimodal demand. The analysis uses an incremental expansion approach which is based on the adopted level of service in the Transportation Plan and construction costs found in the Capital Improvement Plan. The requirement and purpose of the service area report is explained on page 3. Service Area The transportation impact fee program funds collector and arterial improvements which provides a networkwide benefit. As such, there is one, citywide service area in the analysis. Cost Allocation Costs for transportation improvements are allocated to residential and nonresidential development based on average weekday person miles of travel (PMT) generated by type of development. Service Demand Units – Person Miles of Travel (PMT) Bozeman funds roadway improvements projects with impact fees that provides expanded service to vehicle and multimodal demand. While vehicle trip rates or vehicle miles of travel (VMT) are typically used as the demand unit for improvements purely addressing vehicle demand, using person miles of travel (PMT) factors more accurately captures development demand for vehicle and multimodal expansion. PMT factors are calculated with vehicle trip rate factors, vehicle trip length factors, and trip occupancy factors. In Appendix A: Land Use Assumptions, residential and nonresidential vehicle trip rates, vehicle trip rate adjustments, commuter trip adjustment, and adjustment for pass-by trips are detailed along with trip rates for Single-Unit Dwelling and Other Residential units by the square footage of the dwelling. The following section details the remaining factors used in the PMT calculation. Vehicle Trip Length Figure 5 displays the calculation of average vehicle trip length used in this study. The average trip vehicle trip length on Bozeman collector and arterial roads is based on the lane miles in the system, capacity, level of service, and vehicle trip total. First, there are 156.1 lane miles of collectors and arterials. The Bozeman Transportation Master Plan indicates a capacity of 6,000 vehicle trips per day on a collector road and 8,000 vehicle trips per day on an arterial road. However, the City’s adopted level of service of 0.73 volume / capacity (V/C) ratio1 reduces the capacity to be consistent with Bozeman capital planning. The level of service capacities are combined with the lane miles to calculate the base year VMT. The average trip length is found by comparing the base year VMT with the base year vehicle trips. As a result, there is an average trip length on Bozeman collector and arterial roads of 2.77 miles (806,796 VMT / 291,139 vehicle trips = 2.77 miles, rounded). 1 The volume / capacity ratio compares the demand on the road to the capacity. As the ratio approaches 1.00 the road network is approaching full congestion. Said another way, a lower ratio represents less congestion. 355 Transportation Service Area Report and Impact Fee Study Bozeman, Montana 11 The impact fee analysis addresses demand only on collector and arterial roads. Thus, the trip length on local roads and the interstate are not contemplated. Figure 5. Average Vehicle Trip Length on Collector and Arterial Roads Vehicle Trip Length Adjustments The trip purpose is the primary factor used in traffic studies to determine trip lengths. Figure 6 displays trip length adjustment factors by purpose as determined by the National Household Travel Survey (2017) and a trip survey provided in the 2019 Bozeman Impact Fee Study. Figure 6. Vehicle Trip Length Adjustment Factors Percent of New Trips Following a travel survey provided in the previous Bozeman impact fee study there is a reduction in nonresidential trips to accurately capture the origin-destination of the trip since there are secondary and diverted trips that would overestimate the primary purpose of the trip. The percent of secondary and diverted trip is reduced from 100 percent to find the percent of new trips listed in Figure 7. The purpose of the reduction is to ensure only the direct demand from developments are being included in the impact fee analysis. For example, during travel surveys some counted trips may have been the result of a diversion. In this case, that location was not the purpose of the trip, so a reduction needs to be included. Total LOS V/C Road Classification Lane Miles Capacity 0.73 Collector 71.8 6,000 4,380 314,484 Minor Arterial 36.6 8,000 5,840 213,744 Principal Arterial 47.7 8,000 5,840 278,568 Total 156.1 806,796 Base Year VMT 806,796 Base Year Vehicle Trips 291,139 Average Trip Length 2.77 Base Year VMT Trip Purpose Trip Length Adj. Residential Trip [1]121% Commercial Trip [1]66% Other Nonres Trip [2]43% [1] Source: National Household Travel Survey, 2017 [2] Source: 2019 Impact Fee Study trip survey 356 Transportation Service Area Report and Impact Fee Study Bozeman, Montana 12 Figure 7. Nonresidential Percent New Trips Factor Trip Occupancy The last component to the PMT calculation is trip occupancy. Trip occupancy represents the number of people on that trip. From the National Household Travel Survey (2022), the average vehicle trip occupancy is 1.59 persons, which is an increase from the occupancy rate used in the previous study (1.30 persons). This factor is applied without adjustments to all nonresidential land uses. The trip occupancy factor is adjusted for Single-Unit Dwelling and Other Residential units based on the PPHH factors (see page 30 for more detail on PPHH). As a result, Figure 8 shows an assumption of higher vehicle trip occupancy for homes with larger PPHH factors. It is assumed that the trip occupancy cannot be lower than 1.00 person, which is applied to the smaller dwelling units. Since the prior impact fee study, Bozeman has seen an increase in smaller dwelling construction and has improved detailed data available related to dwelling sizes. As a result, the new study includes 19 bands in Figure 8 compared to 10 bands in the previous study allowing for more proportional fees. Land Use Percent of New Trips Retail/Restaurant 55% Research & Development Center 89% Office 71% Hospital 78% Day Care 73% University 90% Secondary School 80% Elementary School 80% Lodging 77% Assisted Living 72% Mini-warehouse 71% Warehouse 71% Manufacturing 71% Light Industrial 71% Source: 2019 Impact Fee Study trip survey 357 Transportation Service Area Report and Impact Fee Study Bozeman, Montana 13 Figure 8. Residential Occupancy Rates Number of Vehicle Trip Occupants Under 600 1.00 1.00 600 to 800 1.00 1.00 801 to 1,000 1.00 1.00 1,001 to 1,200 1.04 1.00 1,201 to 1,400 1.15 1.08 1,401 to 1,600 1.24 1.17 1,601 to 1,800 1.32 1.24 1,801 to 2,000 1.39 1.32 2,001 to 2,200 1.45 1.37 2,201 to 2,400 1.51 1.43 2,401 to 2,600 1.56 1.47 2,601 to 2,800 1.61 1.52 2,801 to 3,000 1.66 1.57 3,001 to 3,200 1.70 1.61 3,201 to 3,400 1.74 1.64 3,401 to 3,600 1.78 1.68 3,601 to 3,800 1.81 1.71 3,801 to 4,000 1.85 1.75 4,001 or More 1.88 1.77 Dwelling Size (square feet) Single-Unit Dwelling Other Res. Housing 358 Transportation Service Area Report and Impact Fee Study Bozeman, Montana 14 Calculation of Service Demand Units - Person Miles of Travel (PMT) The following figures lists the factors that are used to calculate the VMT by land use which is then transformed into PMT with the trip occupancy rates. First, Single-Unit Dwelling PMT is calculated; Second, Other Residential PMT; Third, Nonresidential PMT. Additionally, the PMT per unit from the 2019 study is listed for comparison. There has been an overall increase in PMT for residential development besides the smaller dwelling sizes which have been added to the fee schedule. The increase in residential PMT follows the trend of increasing PPHH, trip ends, and occupancy rate from the previous study. For example, the average size Single-Unit Dwelling is between 2,201 and 2,400 square feet and generates 26.27 PMT per day (9.27 trip ends x 0.56 trip end adjustment x 2.77 miles x 1.21 trip length adjustment x 1.00 new trips x 1.51 vehicle trip occupants = 26.27 PMT). Figure 9. Summary of Service Demand Units (PMT) – Single-Unit Dwelling including Townhomes Single-Unit Dwelling Square Feet Trip End Trip End Adj. Trip Length (miles) Trip Length Adj Percent of New Trips Vehicle Miles of Travel (VMT) Occupants per Trip Person Miles of Travel (PMT) 2019 Study PMT % Change Under 600 4.55 56% 2.77 121% 100% 8.54 1.00 8.54 13.55 -37% 600 to 800 5.10 56% 2.77 121% 100% 9.57 1.00 9.57 13.55 -29% 801 to 1,000 5.98 56% 2.77 121% 100% 11.22 1.00 11.22 13.55 -17% 1,001 to 1,200 6.69 56% 2.77 121% 100% 12.56 1.04 13.06 13.55 -4% 1,201 to 1,400 7.27 56% 2.77 121% 100% 13.65 1.15 15.70 13.55 16% 1,401 to 1,600 7.77 56% 2.77 121% 100% 14.58 1.24 18.08 15.08 20% 1,601 to 1,800 8.22 56% 2.77 121% 100% 15.43 1.32 20.37 16.42 24% 1,801 to 2,000 8.60 56% 2.77 121% 100% 16.14 1.39 22.43 17.62 27% 2,001 to 2,200 8.95 56% 2.77 121% 100% 16.80 1.45 24.36 18.71 30% 2,201 to 2,400 (avg.)9.27 56% 2.77 121% 100% 17.40 1.51 26.27 19.70 33% 2,401 to 2,600 9.56 56% 2.77 121% 100% 17.94 1.56 27.99 20.61 36% 2,601 to 2,800 9.83 56% 2.77 121% 100% 18.45 1.61 29.70 21.46 38% 2,801 to 3,000 10.08 56% 2.77 121% 100% 18.92 1.66 31.41 22.24 41% 3,001 to 3,200 10.32 56% 2.77 121% 100% 19.37 1.70 32.93 22.46 47% 3,201 to 3,400 10.54 56% 2.77 121% 100% 19.78 1.74 34.42 22.46 53% 3,401 to 3,600 10.74 56% 2.77 121% 100% 20.16 1.78 35.88 22.46 60% 3,601 to 3,800 10.93 56% 2.77 121% 100% 20.52 1.81 37.14 22.46 65% 3,801 to 4,000 11.13 56% 2.77 121% 100% 20.89 1.85 38.65 23.46 65% 4,001 or More 11.30 56% 2.77 121% 100% 21.21 1.88 39.87 22.46 78% 359 Transportation Service Area Report and Impact Fee Study Bozeman, Montana 15 Figure 10. Summary of Service Demand Units (PMT) – Other Residential Other Residential Square Feet Trip End Trip End Adj. Trip Length (miles) Trip Length Adj Percent of New Trips Vehicle Miles of Travel (VMT) Occupants per Trip Person Miles of Travel (PMT) 2019 Study PMT % Change Under 600 3.14 56% 2.77 121% 100% 5.89 1.00 5.89 8.41 -30% 600 to 800 3.52 56% 2.77 121% 100% 6.61 1.00 6.61 8.41 -21% 801 to 1,000 4.13 56% 2.77 121% 100% 7.75 1.00 7.75 8.41 -8% 1,001 to 1,200 4.61 56% 2.77 121% 100% 8.65 1.00 8.65 8.41 3% 1,201 to 1,400 5.01 56% 2.77 121% 100% 9.40 1.08 10.15 8.41 21% 1,401 to 1,600 (avg.)5.36 56% 2.77 121% 100% 10.06 1.17 11.77 9.36 26% 1,601 to 1,800 5.67 56% 2.77 121% 100% 10.64 1.24 13.19 10.18 30% 1,801 to 2,000 5.93 56% 2.77 121% 100% 11.13 1.32 14.69 10.93 34% 2,001 to 2,200 6.17 56% 2.77 121% 100% 11.58 1.37 15.86 11.61 37% 2,201 to 2,400 6.39 56% 2.77 121% 100% 11.99 1.43 17.15 12.22 40% 2,401 to 2,600 6.59 56% 2.77 121% 100% 12.37 1.47 18.18 12.78 42% 2,601 to 2,800 6.78 56% 2.77 121% 100% 12.73 1.52 19.35 13.31 45% 2,801 to 3,000 6.96 56% 2.77 121% 100% 13.06 1.57 20.50 13.81 48% 3,001 to 3,200 7.12 56% 2.77 121% 100% 13.36 1.61 21.51 13.92 55% 3,201 to 3,400 7.27 56% 2.77 121% 100% 13.65 1.64 22.39 13.92 61% 3,401 to 3,600 7.41 56% 2.77 121% 100% 13.91 1.68 23.37 13.92 68% 3,601 to 3,800 7.54 56% 2.77 121% 100% 14.15 1.71 24.20 13.92 74% 3,801 to 4,000 7.68 56% 2.77 121% 100% 14.41 1.75 25.22 14.92 69% 4,001 or More 7.80 56% 2.77 121% 100% 14.64 1.77 25.91 13.92 86% Land Use Trip End Trip End Adj. Trip Length (miles) Trip Length Adj Percent of New Trips Vehicle Miles of Travel (VMT) Occupants per Trip Person Miles of Travel (PMT) 2019 Study PMT % Change Group Quarters 3.10 56% 2.77 121% 100% 5.82 1.00 5.82 5.01 16% 360 Transportation Service Area Report and Impact Fee Study Bozeman, Montana 16 Furthermore, there has been a variety of PMT changes in nonresidential land uses. As a reminder, the change in PMT rate is based on local and national travel surveys detailed in this report. The largest exception to the nonresidential decrease is day care. The land use increased by only 1.48 PMT, but relative to the very small 1.35 PMT in the 2019 study the change is significant. Figure 11. Summary of Service Demand Units (PMT) – Nonresidential Land Use per 1,000 Square Feet Trip End Trip End Adj. Trip Length (miles) Trip Length Adj Percent of New Trips Vehicle Miles of Travel (VMT) Occupants per Trip Person Miles of Travel (PMT) 2019 Study PMT % Change Retail/Restaurant 37.01 50%2.77 66%55%18.61 1.59 29.59 23.35 27% Research & Development Center 11.08 50%2.77 43%89%5.87 1.59 9.33 12.05 -23% Office 10.84 50%2.77 43%71%4.58 1.59 7.28 8.00 -9% Hospital 10.77 50%2.77 43%78%5.00 1.59 7.95 15.33 -48% Day Care (per student)4.09 50%2.77 43%73%1.78 1.59 2.83 1.35 110% Secondary School 14.07 50%2.77 43%80%6.70 1.59 10.65 10.31 3% Elementary School 19.52 50%2.77 43%80%9.30 1.59 14.79 14.31 3% Lodging (per room)3.35 50%2.77 43%77%1.54 1.59 2.45 3.09 -21% Assisted Living (per bed)2.60 50%2.77 43%72%1.11 1.59 1.76 1.59 11% Mini-warehouse 1.45 50%2.77 43%71%0.61 1.59 0.97 0.83 17% Warehouse 1.71 50%2.77 43%71%0.72 1.59 1.14 1.43 -20% Manufacturing 4.75 50%2.77 43%71%2.01 1.59 3.20 3.22 -1% Light Industrial 4.87 50%2.77 43%71%2.06 1.59 3.28 4.07 -19% 361 Transportation Service Area Report and Impact Fee Study Bozeman, Montana 17 Existing and Projected Growth in Service Area With demand units by land use and development projections (page 30), the service area of the City’s transportation network is detailed and future infrastructure demand projected in the following section. As noted, the transportation impact fee program funds collector and arterial improvements which provides a networkwide benefit. As such, there is one, citywide service area in the analysis. Detailed in Figure 12, the base year housing and nonresidential estimates in the city are combined with trip factors to calculate vehicle trips. Vehicle trips are converted to VMT and PMT based on the factors detailed above. The figure lists projected VMT and PMT based on the ten-year growth projections in residential and nonresidential development. In turn, the growth-related need for arterial and collector lane miles is found by applying the 0.73 V/C level of service. As a result, there is a projected need for 25.8 new lane miles over the next ten years. Although 9.04 lane miles are scheduled for construction in the next five years (35 percent of the ten-year need), the City is committed to providing the additional 16.7 lane miles in the second half of the ten-year horizon. Specifically, the five-year project list addresses shorter, but necessary capacity expansions in the developed portions of Bozeman. While lengthier, capacity expansion projects are anticipated to address greenfield, suburban development in the subsequent five years. 362 Transportation Service Area Report and Impact Fee Study Bozeman, Montana 18 Figure 12. Projected VMT, PMT, and Lane Miles City of Bozeman, MT Base Year 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 Total Increase Single-Unit Dwelling 14,654 14,882 15,110 15,338 15,566 15,794 16,022 16,250 16,478 16,706 16,934 2,280 Other Residential Units 11,928 12,694 13,460 14,226 14,992 15,758 16,524 17,290 18,056 18,822 19,588 7,660 Retail KSF 7,856 7,906 7,956 8,006 8,056 8,106 8,156 8,206 8,256 8,306 8,356 500 Office KSF 3,025 3,086 3,147 3,207 3,268 3,329 3,390 3,450 3,511 3,572 3,632 607 Industrial KSF 3,204 3,222 3,240 3,258 3,276 3,294 3,312 3,329 3,347 3,365 3,383 179 Institutional KSF 8,279 8,375 8,472 8,568 8,664 8,761 8,857 8,954 9,050 9,147 9,243 964 Single-Unit Trips 76,072 77,255 78,439 79,623 80,806 81,990 83,173 84,357 85,541 86,724 87,908 11,836 Other Residential Unit Trips 35,803 38,102 40,402 42,701 45,000 47,299 49,598 51,898 54,197 56,496 58,795 22,992 Residential Subtotal 111,875 115,358 118,841 122,323 125,806 129,289 132,772 136,255 139,737 143,220 146,703 34,828 Retail Trips 110,483 110,992 111,501 112,010 112,519 113,028 113,536 114,045 114,554 115,063 115,572 5,089 Office Trips 16,397 16,631 16,865 17,098 17,332 17,566 17,799 18,033 18,266 18,500 18,734 2,336 Industrial Trips 7,803 7,834 7,865 7,895 7,926 7,957 7,988 8,019 8,050 8,081 8,112 309 Institutional Trips 44,581 44,949 45,318 45,687 46,055 46,424 46,793 47,161 47,530 47,899 48,267 3,687 Nonresidential Subtotal 179,264 180,406 181,548 182,690 183,832 184,974 186,116 187,258 188,400 189,543 190,685 11,421 Total Vehicle Trips 291,139 295,764 300,389 305,013 309,638 314,263 318,888 323,513 328,138 332,763 337,388 46,249 Bozeman Art. & Coll. VMT 806,796 820,154 833,512 846,870 860,228 873,586 886,943 900,301 913,659 927,017 940,375 133,579 Bozeman Art. & Coll. PMT 976,823 994,508 1,012,193 1,029,878 1,047,563 1,065,248 1,082,933 1,100,618 1,118,303 1,135,988 1,153,673 176,851 Bozeman Art. & Coll. Lane Miles 156.1 158.7 161.3 163.8 166.4 169.0 171.6 174.1 176.7 179.3 181.9 25.8 363 Transportation Service Area Report and Impact Fee Study Bozeman, Montana 19 Planned Transportation Projects and Cost Components This Service Area Report defines the service demand units and the service area to be used in the impact fee calculations. The service area is used to develop the transportation five-year capital improvement plan (CIP) shown in the following figures. This section includes details of the capital plan, funding sources, and the method of calculating a transportation cost per service demand unit. The transportation cost per service demand unit will be applied to the service demand units in Figure 9, Figure 10, and Figure 11 to calculate the maximum supportable impact fees by land use type. The CIP listed in Figure 13 consists of 18 transportation projects, most that are planned for at least a portion of impact fee funding. The City of Bozeman publishes an annual CIP with a larger project list that includes projects that are not impact fee eligible. The CIP included in this analysis totals $104.7 million with $71.3 million in impact fee funding and $33.3 million from the Arterial & Collector District Fund. Note: the table continues to the next page. Figure 13. Bozeman Impact Fee Funding Transportation Capital Improvement Plan Project Code Impact Fee Funded Transportation CIP Project Name FY25 FY26 FY27 FY28 FY29 FY25-FY29 Total FY29+/ Unscheduled SIF114 Fowler Avenue Connection: Huffine to Oak $5,463,600 $9,953,500 $4,715,100 $2,256,800 -$22,389,000 $2,813,400 SIF009 Kagy: 19th to Willson*-$3,000,000 ---$3,000,000 $0 SIF118 Babcock: 15th to 19th $2,250,600 $4,079,000 ---$6,329,600 $0 SIF112 Highland/Main Intersection Impr -$850,000 ---$850,000 $0 SIF188 Oak Street Intersections $150,000 $900,000 ---$1,050,000 $1,500,000 SIF191 Stucky: 19th to Fowler --$3,630,600 $5,849,300 -$9,479,900 $0 SIF159 Oak: 27th to 19th Widening ----$4,250,000 $4,250,000 $0 SIF149 Babcock: 11th to 15th $542,900 ----$542,900 $4,898,200 SIF152 N 27th: Baxter to Cattail $11,440,000 ----$11,440,000 $0 SIF193 Fowler: Cattail to E Valley Center ------$12,958,500 SIF195 Church: Garfield to Kagy ------$4,840,000 SIF194 Church: Story to Garfield ------$3,330,000 A&C014 S 19th/Blackwood Intersection Impr ------$2,445,000 SIF164 S 3rd: Kagy to Graf ------$4,890,000 A&C019 Huffine Lane Crossing ------$1,222,500 SIF190 N 15th: Tschache to Baxter ------$2,445,000 SIF156 Highland/Kagy Intersection Impr ------$3,760,000 A&C020 Cottonwood HAWK Signal ------$244,500 Total $19,847,100 $18,782,500 $8,345,700 $8,106,100 $4,250,000 $59,331,400 $45,347,100 *Project SIF009 is estimated to cost a total of $31.6 million. There is a variety of State and Federal funding sources for the project. The figure lists the $3 million as the impact fee portion of the project. 364 Transportation Service Area Report and Impact Fee Study Bozeman, Montana 20 The Transportation Impact Fee Study examines a planning horizon of 10 years. Although the unscheduled projects in Figure 14 may be added to and revised over time based on the local market and priorities, the plan provides an indication of impact fee verse Arterial & Collection District funding of the CIP. Figure 14. Bozeman Impact Fee Funding Transportation Capital Improvement Plan cont. Impact fees can only fund growth-related portions of infrastructure expansions. The non-impact fee funding of the scheduled projects in the CIP is examined to understand the non-growth-related share of roadway projects in Bozeman. Of the $68.5 million scheduled for the next five years, $17.1 million is being funded by the Arterial & Collector District. Figure 15. Bozeman Transportation Project Funding Sources Project Code Impact Fee Funded Transportation CIP Project Name FY25-FY29 Total FY29+/ Unscheduled Impact Fee Funding A&C District Funding SIF114 Fowler Avenue Connection: Huffine to Oak $22,389,000 $2,813,400 $20,250,500 $4,951,900 SIF009 Kagy: 19th to Willson*$3,000,000 $0 $3,000,000 $0 SIF118 Babcock: 15th to 19th $6,329,600 $0 $4,118,800 $2,210,800 SIF112 Highland/Main Intersection Impr $850,000 $0 $850,000 $0 SIF188 Oak Street Intersections $1,050,000 $1,500,000 $750,000 $1,800,000 SIF191 Stucky: 19th to Fowler $9,479,900 $0 $6,735,200 $2,744,700 SIF159 Oak: 27th to 19th Widening $4,250,000 $0 $3,250,000 $1,000,000 SIF149 Babcock: 11th to 15th $542,900 $4,898,200 $3,856,900 $1,584,200 SIF152 N 27th: Baxter to Cattail $11,440,000 $0 $8,611,200 $2,828,800 SIF193 Fowler: Cattail to E Valley Center -$12,958,500 $12,958,500 $0 SIF195 Church: Garfield to Kagy -$4,840,000 $0 $4,840,000 SIF194 Church: Story to Garfield -$3,330,000 $0 $3,330,000 A&C014 S 19th/Blackwood Intersection Impr -$2,445,000 $0 $2,445,000 SIF164 S 3rd: Kagy to Graf -$4,890,000 $2,445,000 $2,445,000 A&C019 Huffine Lane Crossing -$1,222,500 $0 $1,222,500 SIF190 N 15th: Tschache to Baxter -$2,445,000 $1,222,500 $1,222,500 SIF156 Highland/Kagy Intersection Impr -$3,760,000 $3,260,000 $500,000 A&C020 Cottonwood HAWK Signal -$244,500 $0 $244,500 Total $59,331,400 $45,347,100 $71,308,600 $33,369,900 *Project SIF009 is estimated to cost a total of $31.6 million. There is a variety of State and Federal funding sources for the project. The figure lists the $3 million as the impact fee portion of the project. SIF009 Kagy (19th to Willson)$3,000,000 $3,000,000 $0 1.70 SIF112 Highland/Main Intersection Improvement $850,000 $850,000 $0 0.00 SIF114 Fowler Avenue Connection (Huffine to Oak)$25,202,400 $20,250,500 $4,951,900 2.25 SIF118 Babcock (15th to 19th)$6,329,600 $4,118,800 $2,210,800 0.27 SIF149 Babcock (11th to 15th)$5,441,100 $3,856,900 $1,584,200 0.26 SIF152 N. 27th (Baxter to Cattail)$11,440,000 $8,611,200 $2,828,800 1.08 SIF191 Stucky (19th to Fowler)$9,479,900 $6,735,200 $2,744,700 2.98 SIF188 Oak Street Intersections $2,550,000 $750,000 $1,800,000 0.00 SIF159 Oak: 27th to 19th Widening $4,250,000 $3,250,000 $1,000,000 0.50 $68,543,000 $51,422,600 $17,120,400 9.04 Total Project Cost Amount from Impact Fees Amount from A&C District Lane-Miles AddedProject Name Project Code 365 Transportation Service Area Report and Impact Fee Study Bozeman, Montana 21 Transportation Capital Cost per PMT Additionally, the five-year project list is adding 9.04 lane miles with $51.4 million in impact fee funding. As a result, the plan averages $5.7 million per lane mile in impact fee funding. For comparison, the previous study estimated a cost of $3.3 million per lane mile. The new CIP reflects a 74 percent increase in growth-related construction costs. City staff has confirmed that there has been rapid and significant inflation since 2019 including the right-of-way costs associated with roadway expansion. Figure 16 details the calculation of capital cost per PMT. First, the 9.04 lane miles are multiplied by their capacity to get the total new number of trips. Next, the new trips are multiplied by the City level of service of 0.73 V/C. Finally, this is multiplied by the average of 1.32 persons per trip to determine that the CIP is adding 61,887 PMT to the Bozeman transportation network (64,224 vehicle trip capacity x 0.73 V/C x 1.32 persons per trip = 61,887 PMT). Dividing the cost of the capital improvements funded by impact fees by the total PMT results in the cost per PMT of the capacity expansions in the capital plan. The project list is adding capacity to the roadway network at an average of $831 per PMT ($51,422,600 / 61,887 PMT = $831 per PMT) in impact fee funding. Figure 16. Transportation Impact Fee Funding per PMT Lastly, based on the impact fee funding per lane mile of $5.7 million and the 25.8 new lane miles needed to address projected growth, there is an estimated growth-related need of $146.8 million over the next ten years (Figure 17). Figure 17. Projected Impact Fee Funding of the 10-Year Roadway Expansion Need Vehicle Miles of Capacity Added in CIP [1]64,224 Volume/Capacity LOS 0.73 Average Trip Occupancy [2]1.32 Person Miles of Travel (PMT) Added 61,887 Impact Fee Funding for Roadway Expansion $51,422,600 PMT Added in CIP 61,887 Cost per Person Miles of Travel (PMT)$831 [2] Based on a weighted average in the travel demand model [1] Calculated from added lane miles and road classification capacities Bozeman, MT 10-Year Need New Art. & Coll. Lane Miles 25.8 Impact Fee Funding per Lane Mile $5,688,000 Total Impact Fee Funding $146,750,400 366 Transportation Service Area Report and Impact Fee Study Bozeman, Montana 22 Credit for Other Revenues Sources Evaluation of other revenues funding capital expansion is necessary to ensure the impact fee is proportionate and there are no double charging scenarios. The City has an existing impact fee fund balance ($18.2 million) that will fund a portion of the CIP. Currently, the CIP includes $71.3 million in impact fee funded road projects, thus, 26 percent of the CIP has already been collected. A credit of this amount is included in the final impact fee calculation. Figure 18. Existing Transportation Impact Fee Fund Balance Credit Furthermore, City staff examines the non-growth-related share of each transportation project. The portion that is considered to be non-growth-related is funded through other sources such as the Arterial & Collector District and grants. In this case, impact fees are funding the growth-related portion, thus there is no double charging concern and no need for another revenue credit. Transportation Personnel and Operations As described in the legal framework section of this report, impact fees are limited to capacity adding capital expansion. No transportation personnel, operations, or maintenance expenses are allowed to be included in an impact fee and all such expenses are excluded from the impact fee. All these expenses are paid for with taxes or other non-impact fee revenue. City of Bozeman Streets Impact Fee Fund Existing Fund Balance $18,202,220 CIP Cost minus Grants and A&C District $71,308,600 Existing Balance Share of Funding Need 26% 367 Transportation Service Area Report and Impact Fee Study Bozeman, Montana 23 Maximum Supportable Transportation Impact Fees The following figures shows the maximum supportable Bozeman Transportation Impact Fees for residential and nonresidential development and includes an administration fee of five percent (§ 7-6- 1601(5a)). After reducing the fee for the existing fund balance credit, the net total cost per PMT is $646. All fees are derived from the PMT per unit factors and capital cost per PMT. For example, the fee for 2,300 square foot Single-Unit Dwelling unit is $16,970 ($646 per PMT x 26.57 PMT = $16,970 per unit). The fees represent the highest amount allowable for each type of applicable land use, which represents new growth’s fair share of the cost for capital facilities. The City may adopt fees that are less than the amounts shown. However, a reduction in impact fee revenue will necessitate an increase in other revenues, a decrease in planned capital expenditures, and/or a decrease in levels of service. Figure 19. Maximum Supportable Transportation Impact Fee Schedule – Single-Unit Dwelling Cost per PMT Roadway Expansion $831 Gross Total $831 Credit for Existing Fund Balance (26%)($216) Administrative Fee (5%)$31 Net Total $646 Residential - Single-Unit Dwelling including Townhomes Residential (per housing unit) Under 600 8.54 $5,517 $6,938 ($1,421) 600 to 800 9.57 $6,182 $6,938 ($756) 801 to 1,000 11.22 $7,248 $6,938 $310 1,001 to 1,200 13.06 $8,437 $6,938 $1,499 1,201 to 1,400 15.70 $10,142 $6,938 $3,204 1,401 to 1,600 18.08 $11,680 $7,728 $3,952 1,601 to 1,800 20.37 $13,159 $8,431 $4,728 1,801 to 2,000 22.43 $14,490 $9,032 $5,458 2,001 to 2,200 24.36 $15,737 $9,605 $6,132 2,201 to 2,400 (avg.)26.27 $16,970 $10,098 $6,872 2,401 to 2,600 27.99 $18,082 $10,562 $7,520 2,601 to 2,800 29.70 $19,186 $11,007 $8,180 2,801 to 3,000 31.41 $20,291 $11,411 $8,880 3,001 to 3,200 32.93 $21,273 $11,530 $9,743 3,201 to 3,400 34.42 $22,235 $11,530 $10,705 3,401 to 3,600 35.88 $23,178 $11,530 $11,648 3,601 to 3,800 37.14 $23,992 $11,530 $12,462 3,801 to 4,000 38.65 $24,968 $11,530 $13,438 4,001 or More 39.87 $25,756 $11,530 $14,226 Fee Component Dwelling Size (square feet) Maximum Supportable Fee Current Fee Increase/ DecreasePMT 368 Transportation Service Area Report and Impact Fee Study Bozeman, Montana 24 Figure 20. Maximum Supportable Transportation Impact Fee Schedule – Other Residential Cost per PMT Roadway Expansion $831 Gross Total $831 Credit for Existing Fund Balance (26%)($216) Administrative Fee (5%)$31 Net Total $646 Residential - Other Residential Residential (per housing unit) Under 600 5.89 $3,805 $4,311 ($506) 600 to 800 6.61 $4,270 $4,311 ($41) 801 to 1,000 7.75 $5,007 $4,311 $696 1,001 to 1,200 8.65 $5,588 $4,311 $1,277 1,201 to 1,400 10.15 $6,557 $4,311 $2,246 1,401 to 1,600 (avg.)11.77 $7,603 $4,806 $2,797 1,601 to 1,800 13.19 $8,521 $5,229 $3,292 1,801 to 2,000 14.69 $9,490 $5,610 $3,880 2,001 to 2,200 15.86 $10,246 $5,955 $4,291 2,201 to 2,400 17.15 $11,079 $6,264 $4,815 2,401 to 2,600 18.18 $11,744 $6,549 $5,195 2,601 to 2,800 19.35 $12,500 $6,816 $5,684 2,801 to 3,000 20.50 $13,243 $7,078 $6,165 3,001 to 3,200 21.51 $13,895 $7,148 $6,747 3,201 to 3,400 22.39 $14,464 $7,148 $7,316 3,401 to 3,600 23.37 $15,097 $7,148 $7,949 3,601 to 3,800 24.20 $15,633 $7,148 $8,485 3,801 to 4,000 25.22 $16,292 $7,148 $9,144 4,001 or More 25.91 $16,738 $7,148 $9,590 Group Quarters (per person) Group Quarters 5.82 $3,760 $2,556 $1,204 Fee Component Dwelling Size (square feet) Maximum Supportable Fee Current Fee Increase/ DecreasePMT 369 Transportation Service Area Report and Impact Fee Study Bozeman, Montana 25 Figure 21. Maximum Supportable Transportation Impact Fee Schedule – Nonresidential Cost per PMT Roadway Expansion $831 Gross Total $831 Credit for Existing Fund Balance (26%)($216) Administrative Fee (5%)$31 Net Total $646 Nonresidential Nonresidential (per 1,000 square feet) Retail/Restaurant 29.59 $19,115 $11,920 $7,195 Research & Development Center 9.33 $6,027 $6,155 ($128) Office 7.28 $4,703 $4,087 $616 Hospital 7.95 $5,136 $7,860 ($2,724) Day Care (per student)2.83 $1,828 $688 $1,140 Secondary School 10.65 $6,880 $5,256 $1,624 Elementary School 14.79 $9,554 $7,287 $2,267 Lodging (per room)2.45 $1,583 $1,584 ($1) Assisted Living (per bed)1.76 $1,137 $816 $321 Mini-warehouse 0.97 $627 $429 $198 Warehouse 1.14 $736 $729 $8 Manufacturing 3.20 $2,067 $1,637 $430 Light Industrial 3.28 $2,119 $2,074 $45 PMT Maximum Supportable Fee Current Fee Increase/ Decrease Fee Component Development Type 370 Transportation Service Area Report and Impact Fee Study Bozeman, Montana 26 Projected Transportation Impact Fee Revenue Revenue projections assume implementation of the maximum supportable transportation impact fees and that future development is consistent with the land use assumptions described in Appendix A: Land Use Assumptions. To the extent the rate of development either accelerates or slows down, there will be a corresponding change in the impact fee revenue. The fee for an average size Single-Unit Dwelling and Other Residential unit is used in the revenue projections. As shown in Figure 22, transportation impact fee revenue is expected to total approximately $114.8 million over the next 10 years, compared to projected total transportation expansion cost of $146.8 million. Importantly, the revenue gap is the result of the credit included in the analysis for the existing fund balance. Figure 22. Projected Transportation Impact Fee Revenue Infrastructure Costs for Road Facilities Growth Cost Impact Fee Ten-Year Need at Current LOS $146,750,400 $146,750,400 Total Expenditures $146,750,400 $146,750,400 Projected Development Impact Fee Revenue Single-Unit Other Res.Retail Office Industrial Institutional $16,970 $7,603 $19,115 $4,703 $2,119 $5,136 per unit per unit per KSF per KSF per KSF per KSF Year Housing Units Housing Units KSF KSF KSF KSF Base 2023 14,654 11,928 7,856 3,025 3,204 8,279 1 2024 14,882 12,694 7,906 3,086 3,222 8,375 2 2025 15,110 13,460 7,956 3,147 3,240 8,472 3 2026 15,338 14,226 8,006 3,207 3,258 8,568 4 2027 15,566 14,992 8,056 3,268 3,276 8,664 5 2028 15,794 15,758 8,106 3,329 3,294 8,761 6 2029 16,022 16,524 8,156 3,390 3,312 8,857 7 2030 16,250 17,290 8,206 3,450 3,329 8,954 8 2031 16,478 18,056 8,256 3,511 3,347 9,050 9 2032 16,706 18,822 8,306 3,572 3,365 9,147 10 2033 16,934 19,588 8,356 3,632 3,383 9,243 Ten-Year Increase 2,280 7,660 500 607 179 964 Projected Revenue $38,691,600 $58,238,980 $9,557,500 $2,855,393 $378,393 $4,952,571 Projected Revenue $114,674,000 Projected Expenditures $146,750,400 Non-Impact Fee Funding $32,076,400 371 Transportation Service Area Report and Impact Fee Study Bozeman, Montana 27 Trip Exchange Districts This study continues the current trip exchange districts (TED) in the Bozeman transportation impact fee program. As defined in 2.06.1630, BMC, a TED is a defined geographic area where there is a demonstrated significant reduction in new vehicle trips below that established in the transportation service area report for the majority of the service area. Based on local and national trip surveys, roadway demand is lower in districts that are compact, mixed-use, and allow for pedestrian trips to substitute traditional vehicular trips. This is also known as “internal trip capture.” Specific to the Downtown TED the following factors contribution to the internal trip capture: • Shared and consolidated parking. • High degree of pedestrian and bicycle access to and throughout the TED. • Public transit availability. • Extensive trip capture between businesses. A person will make a single vehicle trip and visit multiple establishments. Consistent with national surveys and the 2019 Impact Fee Study, all development within the Downtown TED is assumed to generate 29 percent less transportation demand, thus it receives a 29 percent reduction in its transportation impact fee. Figure 23. Downtown Trip Exchange District 372 Transportation Service Area Report and Impact Fee Study Bozeman, Montana 28 In 2014, a transportation study was completed by the Western Transportation Institute which examined the internal trip capture and travel characteristics in and around the Montana State University Campus. The study found there was a reduction in transportation demand for the following land uses: • On MSU Campus o Office: 31 percent o Academic: 46 percent o Housing: 44 percent o Group Quarters: 62 percent • Private/Near MSU o Non-Housing: 25 percent o Housing: 35 percent o Group Quarters: 59 percent Based on this evidence, transportation impact fees are reduced in the University TED at the same rate as the demand reduction. Figure 24. University Trip Exchange District 373 Transportation Service Area Report and Impact Fee Study Bozeman, Montana 29 CAPITAL IMPROVEMENT PLAN Per State of Montana enabling legislation (§7-6-1602(2)), the Service Area Report needs to identify capital improvements necessary to meet future needs. The following figure lists the growth-related capital plans for transportation expansion included in this analysis. There are other non-growth- related CIP projects that are not included in this analysis. Figure 25. Transportation Growth-Related Capital Improvement Plan Project Code Impact Fee Funded Transportation CIP Project Name FY25 FY26 FY27 FY28 FY29 FY25-FY29 Total FY29+/ Unscheduled Impact Fee Funding A&C District Funding SIF114 Fowler Avenue Connection: Huffine to Oak $5,463,600 $9,953,500 $4,715,100 $2,256,800 -$22,389,000 $2,813,400 $20,250,500 $4,951,900 SIF009 Kagy: 19th to Willson*-$3,000,000 ---$3,000,000 $0 $3,000,000 $0 SIF118 Babcock: 15th to 19th $2,250,600 $4,079,000 ---$6,329,600 $0 $4,118,800 $2,210,800 SIF112 Highland/Main Intersection Impr -$850,000 ---$850,000 $0 $850,000 $0 SIF188 Oak Street Intersections $150,000 $900,000 ---$1,050,000 $1,500,000 $750,000 $1,800,000 SIF191 Stucky: 19th to Fowler --$3,630,600 $5,849,300 -$9,479,900 $0 $6,735,200 $2,744,700 SIF159 Oak: 27th to 19th Widening ----$4,250,000 $4,250,000 $0 $3,250,000 $1,000,000 SIF149 Babcock: 11th to 15th $542,900 ----$542,900 $4,898,200 $3,856,900 $1,584,200 SIF152 N 27th: Baxter to Cattail $11,440,000 ----$11,440,000 $0 $8,611,200 $2,828,800 SIF193 Fowler: Cattail to E Valley Center ------$12,958,500 $12,958,500 $0 SIF195 Church: Garfield to Kagy ------$4,840,000 $0 $4,840,000 SIF194 Church: Story to Garfield ------$3,330,000 $0 $3,330,000 A&C014 S 19th/Blackwood Intersection Impr ------$2,445,000 $0 $2,445,000 SIF164 S 3rd: Kagy to Graf ------$4,890,000 $2,445,000 $2,445,000 A&C019 Huffine Lane Crossing ------$1,222,500 $0 $1,222,500 SIF190 N 15th: Tschache to Baxter ------$2,445,000 $1,222,500 $1,222,500 SIF156 Highland/Kagy Intersection Impr ------$3,760,000 $3,260,000 $500,000 A&C020 Cottonwood HAWK Signal ------$244,500 $0 $244,500 Total $19,847,100 $18,782,500 $8,345,700 $8,106,100 $4,250,000 $59,331,400 $45,347,100 $71,308,600 $33,369,900 *Project SIF009 is estimated to cost a total of $31.6 million. There is a variety of State and Federal funding sources for the project. The figure lists the $3 million as the impact fee portion of the project. 374 Transportation Service Area Report and Impact Fee Study Bozeman, Montana 30 APPENDIX A: LAND USE ASSUMPTIONS The following sections detail base year and projected demographic assumptions. These assumptions are used in the Transportation impact fee calculations along with the tandem efforts in updating the Service Area Reports for Transportation, Water, and Wastewater public facilities. In this case, there is data in the following section that relates to the other efforts and not the Transportation calculations (i.e., trip generation rates and the Transportation Service Area Report). Note: definitions for the Single-Unit Dwelling and Other Residential housing types can be found Appendix B: Land Use Definitions Population and Housing Characteristics Impact fees often use per capita standards and persons per housing unit or persons per household to derive proportionate share fee amounts. Housing types have varying household sizes and, consequently, a varying demand on City infrastructure and services. Thus, it is important to differentiate between housing types and size. When persons per housing unit (PPHU) is used in the development impact fee calculations, infrastructure standards are derived using year-round population. In contrast, when persons per household (PPHH) is used in the development impact fee calculations, the fee methodology assumes all housing units will be occupied, thus requiring seasonal or peak population to be used when deriving infrastructure standards. The City of Bozeman and the surrounding area is home to a significant number of second/vacation homes and hosts many visitors throughout the year. Thus, TischlerBise recommends that fees for residential development in Bozeman be imposed according to the persons per household. Figure 26 shows the US Census American Community Survey 2021 5-Year Estimates data for the City of Bozeman. Single-unit dwellings have an average household size of 2.48 persons and other residential dwellings have an average household size of 1.92 persons. Additionally, there is a housing mix of 59 percent single-unit dwelling and 41 percent other residential. The estimates in Figure 26 are for household size calculations. Base year population and housing units are estimated with another, more recent data source. Figure 26. Persons per Household Building Permit History In Figure 27, the past six years of building permit history is listed by housing type to understand the recent growth trend in Bozeman. There has been a steady amount of single-unit dwelling development over the Housing Persons per Persons per Housing Housing Type Persons Units Housing Unit Households Household Unit Mix Single-Unit Dwelling [1]31,140 13,355 2.33 12,534 2.48 59% Other Residential [2]16,235 9,110 1.78 8,451 1.92 41% Subtotal 47,375 22,465 2.11 20,985 2.26 [1] Includes attached and detached single family homes and mobile homes [2] Includes all other types Source: U.S. Census Bureau, 2021 American Community Survey 5-Year Estimates 375 Transportation Service Area Report and Impact Fee Study Bozeman, Montana 31 past years in Bozeman, while other residential development has been the driving factor in the elevated construction trend. Housing development peaked in 2021 which included the largest apartment complex ever built in the city. Housing activity leveled slowed in 2022 (consistent with the national trend with increasing interest rates) while construction had a noticeable increase in 2023. Overall, there has been an average of 228 single-unit dwellings and 766 other residential units constructed annually. Figure 27. Building Permit History by Housing Type Base Year Housing Units and Population Furthermore, the nature of the influx of seasonal population in Bozeman necessitates four types of populations to be included in the impact fee study: 1) Permanent Residents 2) Seasonal Residents 3) On-Campus Students 4) Overnight-Visitors Bozeman is a destination for vacationers, students, and seasonal residents and City facilities and services have been sized to accommodate the additional demand. The peak population includes residents who have second homes in the city, students living on-campus at Montana State University, and the seasonal labor influx during peak tourism months. The MSU students living off-campus are captured in the permanent housing population. Bozeman permanent population is found by using the housing growth since the 2020 US Census. The 2020 decennial census estimated that there were 23,535 housing units and 49,298 household population in Bozeman. Additionally, there were 663 single-unit dwellings and 2,384 other residential units constructed since the survey. Based on PPHU factor, there has been an increase of 5,788 residents since the census. By combining the 2020 US Census household population and estimated new residents since the Census, a 2023 permanent population of 55,086 residents is estimated. Housing Type 2018 2019 2020 2021 2022 2023 Total Average Single-Unit Dwelling [1]266 245 211 255 197 193 1,367 228 Other Residential [2]593 546 734 1,128 522 1,075 4,598 766 Total 859 791 945 1,383 719 1,268 5,965 994 Source: City of Bozeman [1] Includes attached and detached single family homes and mobile homes [2] Includes all other types 376 Transportation Service Area Report and Impact Fee Study Bozeman, Montana 32 Figure 28. Permanent Population Seasonal housing population estimates are found by applying the PPHH factors for each housing type to base year housing estimates to the percent of housing occupied for seasonal use. As a result, the seasonal population estimate is 4,185 (Figure 29). Figure 29. Seasonal Population Shown in Figure 30, in a survey of hotel and motels in Bozeman, TischlerBise found 2,241 lodging rooms in the city. Based on general peak seasonal lodging factors there are 4,258 overnight-visitors assumed. Figure 30. Bozeman Visitors Lastly, based on a news briefing from Montana State University in September 2023 there were 5,200 students living on-campus. The information above is summarized in Figure 31. Based on the four population types, there is an estimated peak population of 68,729 residents along with 26,582 housing units in Bozeman. Bozeman, MT Housing Units [1] HH Population [2] 2020 Census 23,535 49,298 Housing Units 2020 Census Post Census 2023 Single-Unit Dwelling 13,991 663 14,654 Other Residential 9,544 2,384 11,928 Total 23,535 3,047 26,582 PPHU Single-Unit Dwelling 663 2.33 1,545 Other Residential 2,384 1.78 4,244 Total 3,047 5,788 Household Population 49,298 5,788 55,086 [1] Source: US Census DP1 Table Bozeman, MT Units Built Post Census New Residents Post Census [2] Source: US Census DP1 Table. Household population excludes those in group quarters. Group quarters is estimated with On-Campus Students in another figure. Bozeman, MT 2020 Census New Residents Post Census 2023 Estimate Housing Units PPHH Single-Unit Dwelling 14,654 7% 967 2.48 2,399 Other Residential 11,928 8% 930 1.92 1,786 Total 26,582 1,898 4,185 Seasonal Residents Seasonal Units % Seasonal Units 2023 Housing Units Total Lodging Rooms 2,241 Assumed Ave Occupancy 2 Assumed Occupancy Rate 95% Total Overnight-Visitors 4,258 Source: TischlerBise survey of lodging property and general peak season lodging factors 377 Transportation Service Area Report and Impact Fee Study Bozeman, Montana 33 Figure 31. Base Year Housing and Population Base Year 2023 Permanent Hsg Population [1]55,086 Seasonal Hsg Population [2]4,185 On-Campus Students [3]5,200 Overnight-Visitors [4]4,258 Total Peak Population 68,729 Housing Units [1] Single-Unit Dwelling 14,654 Other Residential 11,928 Total Housing Units 26,582 Bozeman, MT [1] Calculated based on 2020 US Census estimate plus housing development since [2] Assuming seasonal housing is fully occupied during peak season [3] MSU News Service (September, 2023) [4] TischlerBise survey of lodging property and general peak season lodging factors 378 Transportation Service Area Report and Impact Fee Study Bozeman, Montana 34 Housing Unit and Population Projections The ten-year residential projections are listed in Figure 32. Housing development in Bozeman is assumed to continue at its current pace over the next ten years. Overall, over the next ten years, 2,280 new single-unit dwellings and 7,660 other residential units are assumed to be constructed. As a result of the market supporting more non-single-unit dwelling development, by 2033 there will be more non-single-unit dwelling units than single-unit dwellings in Bozeman. Population growth is based on housing development and PPHH factors. Over the next ten years, housing development will support 18,841 new permanent residents and 1,520 seasonal residents. It is assumed that visitors to Bozeman will grow at the same rate as the resident population. Lastly, MSU has built a new dormitory every five years and is currently exploring another expansion. Conservatively, a 1 percent annual growth is assumed for on-campus students. Overall, the peak population is estimated to grow from 68,729 to 91,099, a 32.5 percent increase. Figure 32. Residential Development Projections Importantly, the impact fee methodology does not rely on the growth projections to determine the fee amount. Rather, the current level of service is used in the fee calculation. In this case, if the growth projections included in the report overestimate or underestimate the real development in Bozeman, the fee collection is still accurate. For example, if growth is slower than the 10-year projection, less revenue will be collected, however, the City will provide less capital expansion to keep up with the level of service. Base Year City of Bozeman, MT 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 Permanent Hsg Population [1]55,086 56,970 58,855 60,739 62,623 64,507 66,391 68,275 70,159 72,043 73,928 18,841 Seasonal Hsg Population [1]4,185 4,337 4,489 4,641 4,793 4,945 5,097 5,249 5,401 5,553 5,705 1,520 On-Campus Students [2]5,200 5,252 5,305 5,358 5,412 5,466 5,521 5,576 5,632 5,688 5,745 545 Overnight-Visitors [3]4,258 4,404 4,551 4,697 4,843 4,989 5,136 5,282 5,428 5,574 5,721 1,463 Total Peak Population 68,729 70,964 73,199 75,435 77,671 79,907 82,145 84,382 86,621 88,859 91,099 22,369 3.3% 3.2% 3.1% 3.0% 2.9% 2.8% 2.7% 2.7% 2.6% 2.5%32.5% Housing Units [4] Single-Unit Dwelling 14,654 14,882 15,110 15,338 15,566 15,794 16,022 16,250 16,478 16,706 16,934 2,280 Other Residential 11,928 12,694 13,460 14,226 14,992 15,758 16,524 17,290 18,056 18,822 19,588 7,660 Total Housing Units 26,582 27,576 28,570 29,564 30,558 31,552 32,546 33,540 34,534 35,528 36,522 9,940 [1] Permanent and seasonal population growth is based on housing development and PPHH factors [2] On-campus residences are conservatively assumed to grow by 1 percent annually [3] Visitor population is estimate to grow at the same rate as permanent and seasonal population [4] Housing development is based on the recent building permit trends without the 2021 peak development year Total Increase Percent Increase 379 Transportation Service Area Report and Impact Fee Study Bozeman, Montana 35 Current Employment and Nonresidential Floor Area The impact fee study will include nonresidential development as well. The base year employment estimates are calculated from two sources. First, from the Montana Department of Labor & Industry there is an estimated 34,569 total jobs in Bozeman. Second, from the U.S. Census Bureau OnTheMap web application employment splits are found between retail, office, industrial, and institutional industries. As a result, the institutional industries (which includes education and healthcare) account for the highest share while retail industries employee over 10,000 jobs as well. Furthermore, the floor area for the four industry types is summarized in Figure 33. Retail, office, and industrial square footage is available from the Montana Department of Revenue (DOR). However, since public education and healthcare facilities are tax exempt the DOR does not gather floor space for such development. Instead, TischlerBise applied the average employee density factors (square feet per employee) for schools and hospitals to the estimated institutional job total to estimate floor area. As a result, there are 22.4 million square feet of nonresidential development in Bozeman. The majority being institutional and retail industries. Figure 33. Base Year Nonresidential Floor Area Employment and Nonresidential Floor Area Projections The Bozeman Community Plan 2020 provides an in-depth analysis of the local market and buildout capacity of the city. Through 2045, the Community Plan projected a growth of 6.3 million square feet of nonresidential development broken down by retail, office, industrial, and institutional industries. The ten- year growth projections from the impact fee studies relies on these projections along with employee density factors from the Institution of Transportation Engineers’ (ITE). For the retail industry the Shopping Center land use factors are used; for office the General Office factors are used; for industrial the Light Industrial factors are used; for Institutional the Hospital factors are used. Figure 34. Institute of Transportation Engineers (ITE) Employment Density Factors Employment Industries Base Year Jobs [1] Percent of Total Floor Area (sq. ft.) [2] Percent of Total Retail 10,116 29% 7,855,849 35% Office 7,798 23% 3,025,341 14% Industrial 5,042 15% 3,204,452 14% Institutional [3]11,612 34% 8,278,652 37% Total 34,569 100% 22,364,294 100% [3] Source: Trip Generation, Institute of Transportation Engineers, 11th Edition (2021) [1] Source: MT Employment Statistics - LAUS [2] Source: Montana Department of Revenue Database Employment ITE Demand Emp Per Sq Ft Industry Code Land Use Unit Dmd Unit Per Emp Retail 820 Shopping Center 1,000 Sq Ft 2.12 471 Office 710 General Office 1,000 Sq Ft 3.26 307 Industrial 110 Light Industrial 1,000 Sq Ft 1.57 637 Institutional 610 Hospital 1,000 Sq Ft 2.86 350 Source: Trip Generation , Institute of Transportation Engineers, 11th Edition (2021) 380 Transportation Service Area Report and Impact Fee Study Bozeman, Montana 36 Shown in Figure 35, Bozeman is anticipated to grow by 6,075 jobs (17.6 percent) over the next ten years. Institutional, office, and retail industries all have significant growth while industrial development is anticipated to taper off. Based on the employee density factors, the employment growth will generate 2,250,000 million square feet of nonresidential floor area (10 percent growth from the base year). Figure 35. Employment and Nonresidential Floor Area Projections Base Year 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 Jobs [1] Retail 10,116 10,222 10,329 10,435 10,541 10,647 10,753 10,859 10,966 11,072 11,178 1,062 Office 7,798 7,996 8,194 8,391 8,589 8,787 8,985 9,182 9,380 9,578 9,776 1,978 Industrial 5,042 5,070 5,098 5,126 5,154 5,182 5,210 5,238 5,266 5,295 5,323 280 Institutional 11,612 11,888 12,164 12,439 12,715 12,990 13,266 13,541 13,817 14,092 14,368 2,755 Total 34,569 35,176 35,784 36,391 36,999 37,606 38,214 38,821 39,429 40,036 40,644 6,075 1.8% 1.7% 1.7% 1.7% 1.6% 1.6% 1.6% 1.6% 1.5% 1.5%17.6% Nonresidential Floor Area (1,000 sq. ft.) [2] Retail 7,856 7,906 7,956 8,006 8,056 8,106 8,156 8,206 8,256 8,306 8,356 500 Office 3,025 3,086 3,147 3,207 3,268 3,329 3,390 3,450 3,511 3,572 3,632 607 Industrial 3,204 3,222 3,240 3,258 3,276 3,294 3,312 3,329 3,347 3,365 3,383 179 Institutional 8,279 8,375 8,472 8,568 8,664 8,761 8,857 8,954 9,050 9,147 9,243 964 Total 22,364 22,589 22,814 23,039 23,264 23,489 23,714 23,939 24,164 24,389 24,614 2,250 [1] Source: Bozeman Community Plan (2020) [2] Source: Institute of Transportation Engineers, Trip Generation , 2021 Industry Total Increase Percent Increase 381 Transportation Service Area Report and Impact Fee Study Bozeman, Montana 37 Vehicle Trip Generation Residential Vehicle Trips by Housing Type A customized trip rate is calculated for the single-unit dwellings and other residential units in Bozeman. In Figure 36, the most recent data from the US Census American Community Survey is input into equations provided by the Institute of Transportation Engineers to calculate the trip ends per housing unit factor. A single-unit dwelling is estimated to generate 9.27 trip ends and other residential units are estimated to generate 5.36 trip ends on an average weekday. Figure 36. Customized Residential Trip End Rates by Housing Type Owner-Occupied 19,262 8,463 889 9,352 2.06 Renter-Occupied 20,735 4,071 7,562 11,633 1.78 Total 39,997 12,534 8,451 20,985 1.91 13,355 9,110 22,465 Persons in Trip Vehicles by Trip Average National Trip Households4 Ends5 Type of Unit Ends6 Trip Ends Ends per Unit7 Single-Unit Dwelling 31,140 86,764 24,680 160,855 123,810 9.27 9.43 Other Residential 16,235 37,097 15,292 60,543 48,820 5.36 4.54 Total 47,375 123,861 39,972 221,398 172,630 7.68 7. Trip Generation, Institute of Transportation Engineers, 11th Edition (2021). Local Trip Ends per Unit 1. Vehicles available by tenure from Table B25046, 2020 American Community Survey 5-Year Estimates. 3. Housing units from Table B25024, 2020 American Community Survey 5-Year Estimates. 4. Total population in households from Table B25033, 2020 American Community Survey 5-Year Estimates. 5. Vehicle trips ends based on persons using formulas from Trip Generation (ITE 2021). For single-family housing (ITE 210), the fitted curve equation is EXP(0.89*LN(persons)+1.72). To approximate the average population of the ITE studies, persons were divided by 3 and the equation result multiplied by 3. For multi-family housing (ITE 221), the fitted curve equation is (2.29*persons)-64.48 (ITE 2017). 6. Vehicle trip ends based on vehicles available using formulas from Trip Generation (ITE 2021). For single-family housing (ITE 210), the fitted curve equation is EXP(0.92*LN(vehicles)+2.68). To approximate the average number of vehicles in the ITE studies, vehicles available were divided by 5 and the equation result multiplied by 5. For multi- family housing (ITE 221), the fitted curve equation is (4.77*vehicles)-46.46 (ITE 2021). 2. Households by tenure and units in structure from Table B25032, 2020 American Community Survey 5-Year Estimates. Vehicles per HH by Tenure Housing Units3 Housing Type Households by Structure Type2 Tenure by Units in Structure Vehicles Available1 Single Family Multifamily Total 382 Transportation Service Area Report and Impact Fee Study Bozeman, Montana 38 Residential Vehicle Trips Adjustment Factors A vehicle trip end is the out-bound or in-bound leg of a vehicle trip. As a result, so as not double count trips, a standard 50 percent adjustment is applied to trip ends to calculate a vehicle trip. For example, the out-bound trip from a person’s home to work is attributed to the housing unit and the trip from work back home is attributed to the employer. However, an additional adjustment is necessary to capture city residents’ work bound trips that are outside of the city. The trip adjustment factor includes two components. According to the National Household Travel Survey, home-based work trips are typically 31 percent of out-bound trips (which are 50 percent of all trip ends). Also, utilizing the most recent data from the Census Bureau's web application "OnTheMap”, 40 percent of Bozeman workers travel outside the city for work. In combination, these factors account for 6 percent of additional production trips (0.31 x 0.50 x 0.40 = 0.06). Shown in Figure 37, the total adjustment factor for residential housing units includes attraction trips (50 percent of trip ends) plus the journey-to-work commuting adjustment (6 percent of production trips) for a total of 56 percent. Figure 37. Residential Trip Adjustment Factor for Commuters Nonresidential Vehicle Trips Vehicle trip generation for nonresidential land uses are calculated by using ITE’s average daily trip end rates and adjustment factors found in their recently published 11th edition of Trip Generation. To estimate the trip generation in Bozeman, the weekday trip end per 1,000 square feet factors listed in Figure 38 are used. The prior service area report used the 10th Edition of the Trip Generation. The latest edition includes travel surveys since the previous edition ensuring changes in travel behavior is being captured in the update. Figure 38. Institute of Transportation Engineers Nonresidential Factors For nonresidential land uses, the standard 50 percent adjustment is applied to office, industrial, and institutional development. A lower vehicle trip adjustment factor is used for retail development because Employed Bozeman Residents (2020)25,702 Residents Working in Bozeman (2020)15,447 Residents Commuting Outside of Bozeman for Work 10,255 Percent Commuting Out of Bozeman 40% Additional Production Trips 6% Standard Trip Adjustment Factor 50% Residential Trip Adjustment Factor 56% Source: U.S. Census, OnTheMap Application, 2020 Trip Adjustment Factor for Commuters Employment ITE Demand Wkdy Trip Ends Wkdy Trip Ends Industry Code Land Use Unit Per Dmd Unit Per Employee Retail 820 Shopping Center 1,000 Sq Ft 37.01 17.42 Office 710 General Office 1,000 Sq Ft 10.84 3.33 Industrial 110 Light Industrial 1,000 Sq Ft 4.87 3.10 Institutional 610 Hospital 1,000 Sq Ft 10.77 3.77 Source: Trip Generation, Institute of Transportation Engineers, 11th Edition (2021) 383 Transportation Service Area Report and Impact Fee Study Bozeman, Montana 39 this type of growth attracts vehicles as they pass-by on arterial and collector roads. For example, when someone stops at a convenience store on their way home from work, the convenience store is not their primary destination. In Figure 39, the Institute for Transportation Engineers’ land use code, daily vehicle trip end rate, and trip adjustment factor is listed for each land use. Figure 39. Daily Vehicle Trip Factors Residential (per housing unit) Single-Unit Dwelling 210 9.27 56% 5.19 Other Residential 220 5.36 56% 3.00 Nonresidential (per 1,000 square feet) Retail 820 37.01 38% 14.06 Office 710 10.84 50% 5.42 Industrial 110 4.87 50% 2.44 Institutional 610 10.77 50% 5.39 Land Use ITE Codes Daily Vehicle Trip Ends Trip Adj. Factor Daily Vehicle Trips Source: Trip Generation, Institute of Transportation Engineers, 11th Edition (2021); National Household Travel Survey, 2009 384 Transportation Service Area Report and Impact Fee Study Bozeman, Montana 40 Vehicle Trip Projections The base year vehicle trip totals and vehicle trip projections are calculated by combining the vehicle trip end factors, the trip adjustment factors, and the residential and nonresidential assumptions for housing stock and floor area. Citywide, residential land uses account for 111,875 vehicle trips and nonresidential land uses account for 179,264 vehicle trips in the base year (Figure 40). Through 2033, it is projected that daily vehicle trips will increase by 50,788 trips with the majority of the growth being generated by residential development (69 percent). Figure 40. Vehicle Trip Projections Base Year 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 Residential Trips Single-Unit Dwelling 76,072 77,255 78,439 79,623 80,806 81,990 83,173 84,357 85,541 86,724 87,908 11,836 Other Residential 35,803 38,102 40,402 42,701 45,000 47,299 49,598 51,898 54,197 56,496 58,795 22,992 Subtotal 111,875 115,358 118,841 122,323 125,806 129,289 132,772 136,255 139,737 143,220 146,703 34,828 Nonresidential Trips Retail 110,483 111,186 111,889 112,593 113,296 113,999 114,702 115,405 116,109 116,812 117,515 7,032 Office 16,397 16,726 17,055 17,385 17,714 18,043 18,372 18,701 19,030 19,359 19,688 3,291 Industrial 7,803 7,846 7,890 7,933 7,977 8,020 8,064 8,107 8,151 8,194 8,238 435 Institutional 44,581 45,100 45,619 46,138 46,658 47,177 47,696 48,215 48,735 49,254 49,773 5,193 Subtotal 179,264 180,859 182,454 184,049 185,644 187,239 188,834 190,429 192,024 193,619 195,214 15,950 Vehicle Trips Grand Total 291,139 296,217 301,294 306,372 311,450 316,528 321,606 326,684 331,761 336,839 341,917 50,778 Source: Institute of Transportation Engineers, Trip Generation , 11th Edition (2021) Total IncreaseDevelopment Type 385 Transportation Service Area Report and Impact Fee Study Bozeman, Montana 41 Demand Indicators by Dwelling Size Impact fees must be proportionate to the demand for infrastructure. Because averages per household, for both persons and vehicle trip ends, have a strong, positive correlation to the square footage of the dwelling unit, TischlerBise recommends residential fee schedules by the size of the unit (consistent with the City of Bozeman’s current fee schedule). Bozeman Control Totals According to the U.S. Census Bureau, Bozeman single-unit dwellings have an average household size of 2.48 persons and other residential units have an average household size of 1.92 persons. Figure 41. Persons per Household Trip generation rates are also dependent upon the average number of vehicles available per dwelling. Key independent variables needed for the analysis (i.e., vehicles available, households, and persons) are available from the U.S. Census Bureau American Community Survey (ACS), indicating an average of 1.90 vehicles per household in Bozeman. Figure 42. Vehicles per Household Demand Indicators by Dwelling Size Custom tabulations of demographic data by bedroom range can be created from individual survey responses provided by the U.S. Census Bureau in files known as Public Use Microdata Samples (PUMS). PUMS files are only available for areas of at least 100,000 persons with Bozeman included in Public Use Microdata Areas (PUMA) 400. Housing Persons per Persons per Housing Housing Type Persons Units Housing Unit Households Household Unit Mix Single-Unit Dwelling [1]31,140 13,355 2.33 12,534 2.48 59% Other Residential [2]16,235 9,110 1.78 8,451 1.92 41% Subtotal 47,375 22,465 2.11 20,985 2.26 [1] Includes attached and detached single family homes and mobile homes [2] Includes all other types Source: U.S. Census Bureau, 2021 American Community Survey 5-Year Estimates Owner-occupied 19,262 8,463 889 9,352 2.06 Renter-occupied 20,735 4,071 7,562 11,633 1.78 Total 39,997 12,534 8,451 20,985 1.91 Single-Unit Dwelling [1]24,680 12,534 1.97 Other Residential [2]15,292 8,451 1.81 Total 39,972 20,985 1.90 Source: U.S. Census Bureau, 2021 American Community Survey 5-Year Estimates Vehicles per HH by Tenure Housing Type Vehicles Available Housing Units Vehicles per Housing Unit Households Tenure Vehicles Available Single Family Multifamily Total 386 Transportation Service Area Report and Impact Fee Study Bozeman, Montana 42 Cells shaded yellow below are survey results for PUMA 400. Unadjusted persons per household (2.31), derived from PUMS data for the PUMA listed above, are adjusted downward to match the control totals for Bozeman (2.26), as shown above in Figure 41. Adjusted persons per household totals are shaded in gray. Figure 43. Persons by Bedroom Range Persons by Dwelling Size Average floor area and number of persons by bedroom range are plotted in Figure 44 with a logarithmic trend line derived from 2021 square footage estimates provided by the U.S. Census Bureau (West Region). Dwellings with two bedrooms or less average 1,032 square feet of floor area—based on multifamily dwellings constructed in the West Census Region. Three-bedroom dwellings average 2,118 square feet, four-bedroom dwellings average 2,932 square feet, and dwellings with five or more bedrooms average 4,269 square feet—based on single-unit dwellings constructed in the West Census Region. Using the trend line formula shown in the chart, TischlerBise derived the estimated average number of persons, by dwelling size, using 19 size thresholds, expanding the low and high range of the fee schedule. As shown in the upper-right corner of the table below, the smallest floor area range (under 600 square feet) has an estimated average of 1.06 persons per dwelling. The largest floor area range (4,001 square feet or more) has an estimated average of 3.08 persons per dwelling. 0-2 2,180 2,204 1,273 33% 1.71 1.68 1.73 1.46 3 3,508 3,443 1,471 38% 2.38 2.33 2.34 1.97 4 2,173 2,139 798 21% 2.72 2.67 2.68 2.25 5+ 1,070 958 327 8% 3.27 3.20 2.93 2.46 Total 8,931 8,744 3,869 100% 2.31 2.26 2.26 1.90 [1] American Community Survey, Public Use Microdata Sample for Montana PUMA 400 (2021 5-Year unweighted data). [2] Adjusted multipliers are scaled to make the average PUMS values match control totals for Bozeman based on 2021 American Community Survey 5-Year Estimates. Unadjusted PPHH Adjusted PPHH2 Unadjusted VPHH Adjusted VPHH2 Bedroom Range Persons1 Vehicles Available1 Households1 Housing Mix 387 Transportation Service Area Report and Impact Fee Study Bozeman, Montana 43 Figure 44. Persons by Dwelling Size Person by Dwelling Size and Housing Type The PPHH factors in Figure 44 represents an average over all housing types in Bozeman. An equivalent dwelling unit (EDU) analysis is completed to calculate the PPHH by size for single-unit dwellings and other residential units. Shown in Figure 45, one single-unit EDU is set to the average sized single-unit dwelling in Bozeman (2,201 to 2,400 square feet). The EDU factor for the other size thresholds is found by comparing the PPHH factors, for example, a single-unit dwelling from 1,801 to 2,000 square feet is 0.92 EDUs (2.28 PPHH / 2.48 PPHH = 0.92 EDUs). Bedrooms Square Feet Persons Sq Ft Range Persons 0-2 1,032 1.68 Under 600 1.06 3 2,118 2.33 600 to 800 1.23 4 2,932 2.67 801 to 1,000 1.49 5+4,269 3.20 1,001 to 1,200 1.70 1,201 to 1,400 1.88 1,401 to 1,600 2.03 1,601 to 1,800 2.16 1,801 to 2,000 2.28 2,001 to 2,200 2.38 2,201 to 2,400 2.48 2,401 to 2,600 2.56 2,601 to 2,800 2.64 2,801 to 3,000 2.72 3,001 to 3,200 2.79 3,201 to 3,400 2.85 3,401 to 3,600 2.92 3,601 to 3,800 2.97 3,801 to 4,000 3.03 4,001 or More 3.08 Actual Averages per Hsg Unit Fitted-Curve Values y = 1.0498ln(x) -5.6504 R² = 0.9878 0.00 0.50 1.00 1.50 2.00 2.50 3.00 3.50 0 1,000 2,000 3,000 4,000 5,000Person per HouseholdSquare Feet of Living Area Persons per Household by Square Feet of Dwelling Average persons per household derived from 2021 ACS PUMS data for the area that includes Bozeman. Unit size for 0-2 bedroom is from the 2021 U.S. Census Bureau average for all multifamily units constructed in the Census West region. Unit size for all other bedrooms is from the 2021 U.S. Census Bureau average for single-unit dwellings constructed in the Census Mountain division. 388 Transportation Service Area Report and Impact Fee Study Bozeman, Montana 44 The EDU factors for the size threshold is then combined with the average PPHH for single-unit dwelling. For example, found with US Census ACS 2021 data (Figure 26) the average single-unit dwelling home in Bozeman is 2.48 persons, thus a single-unit home from 1,801 to 2,000 square feet is 2.28 persons (0.92 EDUs x 2.48 persons = 2.28 persons per household). Figure 45. Single-Unit Dwelling PPHH by Size Shown in Figure 46, one Other Residential EDU is set to the average sized Other Residential dwelling in Bozeman (1,401 to 1,600 square feet). The EDU factor for the other size thresholds is found by comparing the PPHH factors, for example, a unit from 1,001 to 1,200 square feet is 0.84 EDUs (1.70 PPHH / 2.03 PPHH = 0.84 EDUs). The EDU factors for the size threshold is then combined with the average PPHH for other residential dwellings. For example, found with US Census ACS 2021 data (Figure 26) the average other residential dwelling home in Bozeman is 1.92 persons, thus a single-unit home from 1,001 to 1,200 square feet is 1.61 persons (0.84 EDUs x 1.92 persons = 1.61 persons per household). Single-Unit Dwelling including Townhomes Single-Unit EDU Factor PPHH Under 600 1.06 0.43 1.06 600 to 800 1.23 0.50 1.23 801 to 1,000 1.49 0.60 1.49 1,001 to 1,200 1.70 0.69 1.70 1,201 to 1,400 1.88 0.76 1.88 1,401 to 1,600 2.03 0.82 2.03 1,601 to 1,800 2.16 0.87 2.16 1,801 to 2,000 2.28 0.92 2.28 2,001 to 2,200 2.38 0.96 2.38 2,201 to 2,400 (avg. single)2.48 1.00 2.48 2,401 to 2,600 2.56 1.03 2.56 2,601 to 2,800 2.64 1.06 2.64 2,801 to 3,000 2.72 1.10 2.72 3,001 to 3,200 2.79 1.13 2.79 3,201 to 3,400 2.85 1.15 2.85 3,401 to 3,600 2.92 1.18 2.92 3,601 to 3,800 2.97 1.20 2.97 3,801 to 4,000 3.03 1.22 3.03 4,001 or More 3.08 1.24 3.08 Average 2.48 Dwelling Size (squre feet) Overall PPHH 389 Transportation Service Area Report and Impact Fee Study Bozeman, Montana 45 Figure 46. Other Residential PPHH by Size Other Residential Other Res. EDU Factor PPHH Under 600 1.06 0.52 1.00 600 to 800 1.23 0.61 1.16 801 to 1,000 1.49 0.73 1.41 1,001 to 1,200 1.70 0.84 1.61 1,201 to 1,400 1.88 0.93 1.78 1,401 to 1,600 (avg. other)2.03 1.00 1.92 1,601 to 1,800 2.16 1.06 2.04 1,801 to 2,000 2.28 1.12 2.16 2,001 to 2,200 2.38 1.17 2.25 2,201 to 2,400 2.48 1.22 2.35 2,401 to 2,600 2.56 1.26 2.42 2,601 to 2,800 2.64 1.30 2.50 2,801 to 3,000 2.72 1.34 2.57 3,001 to 3,200 2.79 1.37 2.64 3,201 to 3,400 2.85 1.40 2.70 3,401 to 3,600 2.92 1.44 2.76 3,601 to 3,800 2.97 1.46 2.81 3,801 to 4,000 3.03 1.49 2.87 4,001 or More 3.08 1.52 2.91 Average 1.92 Overall PPHH Dwelling Size (squre feet) 390 Transportation Service Area Report and Impact Fee Study Bozeman, Montana 46 Trip Generation by Dwelling Size Rather than rely on one methodology, the recommended trip generation rates shown at the bottom of Figure 47, shaded gray, are an average of trip rates based on persons and vehicles available for all types of housing units. In Bozeman, the average household is expected to yield 8.86 average weekday vehicle trip ends (AWVTE), compared to the national weighted average of 7.45 trip ends per household. Figure 47. Average Weekday Vehicle Trip Ends by Bedroom Range 0-2 2,180 2,204 1,273 33% 1.71 1.68 1.73 1.46 3 3,508 3,443 1,471 38% 2.38 2.33 2.34 1.97 4 2,173 2,139 798 21% 2.72 2.67 2.68 2.25 5+ 1,070 958 327 8% 3.27 3.20 2.93 2.46 Total 8,931 8,744 3,869 100% 2.31 2.26 2.26 1.90 National Averages According to ITE 210 SFD 2.65 6.36 9.43 59%3.56 1.48 221 Apt 3.31 5.10 4.54 41%1.37 0.89 Weighted Avg 2.92 5.85 7.45 100%2.67 1.24 Recommended AWVTE per Household 0-2 4.91 8.54 6.73 3 6.80 11.52 9.16 4 7.80 13.16 10.48 5+ 9.34 14.39 11.87 Average 6.60 11.12 8.86 210 SFD 6.80 11.52 9.16 2.33 1.97 220 Apt 5.20 10.59 7.90 1.78 1.81 All Types 6.16 11.12 8.64 2.11 1.90 Unadjusted VPHH Bedroom Range AWVTE per HH Based on Persons3 AWVTE per HH Based on Vehicles4 AWVTE per Household5 ITE Code AWVTE per Person AWVTE per Vehicle AWVTE per HH Unadjusted PPHH Unadjusted PPHH Adjusted PPHH2 Unadjusted VPHH Adjusted VPHH2 ITE Code AWVTE per Person AWVTE per Vehicle AWVTE per HH Housing Mix Persons per Household Vehicles per Household Bedroom Range Persons1 Vehicles Available1 Households1 Housing Mix 1.American Community Survey,Public Use Microdata Sample for Montana PUMA 400 (2021 5-Year unweighted data). 2.Adjusted multipliers are scaled to make the average PUMSvaluesmatchcontroltotalsforBozemanbasedon2021 American CommunitySurvey 5-Year Estimates.3.Adjusted persons per household multiplied by national weighted average triprate perperson. 4.Adjusted vehicles available per household multiplied by national weighted average trip rateper vehicle.5.Average trip rates based on persons and vehicles per household. 391 Transportation Service Area Report and Impact Fee Study Bozeman, Montana 47 Vehicle Trip Ends by Dwelling Size To derive AWVTE by dwelling size, TischlerBise matched trip generation rates and average floor area, by bedroom range, as shown in Figure 48, with a logarithmic trend line derived from 2021 square footage estimates provided by the U.S. Census Bureau (West Region). Using the trend line formula shown in the chart, TischlerBise derived the estimated average weekday vehicle trip ends, by dwelling size, using 19 size thresholds, expanding the low and high range of the fee schedule. As shown in the upper-right corner of the table below, the smallest floor area range (under 600 square feet) generates an estimated average of 4.70 trip ends per dwelling. The largest floor area range (4,001 square feet or more) generates an estimated average of 11.68 trip ends per dwelling. Figure 48. Vehicle Trip Ends by Dwelling Size Bedrooms Square Feet Trip Ends Sq Ft Range Trip Ends 0-2 1,032 6.73 Under 600 4.70 3 2,118 9.16 600 to 800 5.27 4 2,932 10.48 801 to 1,000 6.18 5+4,269 11.87 1,001 to 1,200 6.91 1,201 to 1,400 7.51 1,401 to 1,600 8.03 1,601 to 1,800 8.49 1,801 to 2,000 8.89 2,001 to 2,200 9.25 2,201 to 2,400 9.58 2,401 to 2,600 9.88 2,601 to 2,800 10.16 2,801 to 3,000 10.42 3,001 to 3,200 10.66 3,201 to 3,400 10.89 3,401 to 3,600 11.10 3,601 to 3,800 11.30 3,801 to 4,000 11.50 4,001 or More 11.68 Actual Averages per Hsg Unit Fitted-Curve Values y = 3.6254ln(x) -18.482 R² = 0.9986 0.00 2.00 4.00 6.00 8.00 10.00 12.00 14.00 0 1,000 2,000 3,000 4,000 5,000Trip Ends per HouseholdSquare Feet of Living Area Vehicle Trips by Square Feet of Dwelling Vehicle trips by dwelling size are derived from 2021 ACS PUMS data for the area that includes Bozeman. Unit size for 0-2 bedroom is from the 2021 U.S. Census Bureau average for all multifamily units constructed in the Census West region. Unit size for all other bedrooms is from the 2021 U.S. Census Bureau average for single-unitdwellings constructed in the Census Mountain division. 392 Transportation Service Area Report and Impact Fee Study Bozeman, Montana 48 Vehicle Trip Ends by Dwelling Size and Housing Type The vehicle trip end factors in Figure 48 represents an average over all housing types in Bozeman. An equivalent dwelling unit (EDU) analysis is completed to calculate the trip ends by size for single-unit dwellings and other residential units. Shown in Figure 49, one single-unit EDU is set to the average sized single-unit dwelling in Bozeman (2,201-2,400 square feet). The EDU factor for the other size thresholds is found by comparing the trip factors, for example, homes from 1,801 to 2,000 square feet are 0.93 EDUs (8.89 trip ends / 9.58 trip ends = 0.93 EDUs). The EDU factors for the size threshold is then combined with the average trip end factor for single-unit dwellings to find the trip ends by size. For example, found with US Census ACS 2021 data (Figure 36) the average single-unit dwelling in Bozeman generates 9.27 trip ends, thus a single-unit dwelling from 1,801 to 2,000 square feet has a trip end factor of 8.60 (0.93 EDUs x 9.27 trip ends = 8.60 trip ends per household). Figure 49. Single-Unit Dwelling Trip Ends by Size Shown in Figure 50, one Other Residential EDU is set to the average sized Other Residential dwelling in Bozeman (1,401 to 1,600 square feet). The EDU factor for the other size thresholds is found by comparing the trip factors, for example, homes from 1,001 to 1,200 square feet are 0.86 EDUs (6.91 trip ends / 8.03 trip ends = 0.86 EDUs). The EDU factors for the size threshold is then combined with the average trip end factor for other residential dwellings to find the trip ends by size. For example, found with US Census ACS 2021 data (Figure 36) the average other residential dwelling in Bozeman generates 5.36 trip ends, thus an other Single-Unit Dwelling including Townhomes Single-Unit EDU Factor Trip Ends Under 600 4.70 0.49 4.55 600 to 800 5.27 0.55 5.10 801 to 1,000 6.18 0.65 5.98 1,001 to 1,200 6.91 0.72 6.69 1,201 to 1,400 7.51 0.78 7.27 1,401 to 1,600 8.03 0.84 7.77 1,601 to 1,800 8.49 0.89 8.22 1,801 to 2,000 8.89 0.93 8.60 2,001 to 2,200 9.25 0.97 8.95 2,201 to 2,400 (avg. single)9.58 1.00 9.27 2,401 to 2,600 9.88 1.03 9.56 2,601 to 2,800 10.16 1.06 9.83 2,801 to 3,000 10.42 1.09 10.08 3,001 to 3,200 10.66 1.11 10.32 3,201 to 3,400 10.89 1.14 10.54 3,401 to 3,600 11.10 1.16 10.74 3,601 to 3,800 11.30 1.18 10.93 3,801 to 4,000 11.50 1.20 11.13 4,001 or More 11.68 1.22 11.30 Average 9.27 Dwelling Size (squre feet) Overall Trip Ends 393 Transportation Service Area Report and Impact Fee Study Bozeman, Montana 49 residential dwelling from 1,001 to 1,200 square feet has a trip end factor of 4.61 (0.86 EDUs x 5.36 trip ends = 4.61 trip ends per household). Figure 50. Other Residential Trip Ends by Size Other Residential Other Res. EDU Factor Trip Ends Under 600 4.70 0.59 3.14 600 to 800 5.27 0.66 3.52 801 to 1,000 6.18 0.77 4.13 1,001 to 1,200 6.91 0.86 4.61 1,201 to 1,400 7.51 0.94 5.01 1,401 to 1,600 (avg. other)8.03 1.00 5.36 1,601 to 1,800 8.49 1.06 5.67 1,801 to 2,000 8.89 1.11 5.93 2,001 to 2,200 9.25 1.15 6.17 2,201 to 2,400 9.58 1.19 6.39 2,401 to 2,600 9.88 1.23 6.59 2,601 to 2,800 10.16 1.27 6.78 2,801 to 3,000 10.42 1.30 6.96 3,001 to 3,200 10.66 1.33 7.12 3,201 to 3,400 10.89 1.36 7.27 3,401 to 3,600 11.10 1.38 7.41 3,601 to 3,800 11.30 1.41 7.54 3,801 to 4,000 11.50 1.43 7.68 4,001 or More 11.68 1.45 7.80 Average 5.36 Overall Trip Ends Dwelling Size (squre feet) 394 Transportation Service Area Report and Impact Fee Study Bozeman, Montana 50 APPENDIX B: LAND USE DEFINITIONS Residential Development Single-Unit Dwelling: 1. Single-family detached is a one-unit structure detached from any other house, that is, with open space on all four sides. Such structures are considered detached even if they have an adjoining shed or garage. A one-family house that contains a business is considered detached as long as the building has open space on all four sides. 2. Single-family attached (townhouse) is a one-unit structure that has one or more walls extending from ground to roof separating it from adjoining structures. In row houses (sometimes called townhouses), double houses, or houses attached to nonresidential structures, each house is a separate, attached structure if the dividing or common wall goes from ground to roof. 3. Mobile home includes both occupied and vacant mobile homes, to which no permanent rooms have been added, are counted in this category. Mobile homes used only for business purposes or for extra sleeping space and mobile homes for sale on a dealer's lot, at the factory, or in storage are not counted in the housing inventory. Other Residential: 1. 2+ units (duplexes and apartments) are units in structures containing two or more housing units, further categorized as units in structures with “2, 3 or 4, 5 to 9, 10 to 19, 20 to 49, and 50 or more apartments.” 2. Boat, RV, Van, etc. includes any living quarters occupied as a housing unit that does not fit the other categories (e.g., houseboats, railroad cars, campers, and vans). Recreational vehicles, boats, vans, railroad cars, and the like are included only if they are occupied as a current place of residence. Such living quarters are only allowed under Bozeman zoning under unusual temporary conditions. Nonresidential Development Nonresidential development categories represent general groups of land uses that share similar average weekday vehicle trip generation rates and employment densities (i.e., jobs per 1,000 square feet). Retail: Establishments primarily selling merchandise, eating/drinking places, and entertainment uses. By way of example, Retail includes shopping centers, supermarkets, pharmacies, restaurants, bars, nightclubs, automobile dealerships, and movie theaters. Industrial: Establishments primarily engaged in the production, transportation, or storage of goods. By way of example, Industrial includes manufacturing plants, distribution warehouses, trucking companies, utility substations, power generation facilities, and telecommunications buildings. Office: Establishments providing management, administrative, professional, or business services. By way of example, Office can include business offices, office parks, and corporate headquarters. Institutional: Establishments providing education and healthcare services. By way of example, Institutional includes universities, nursing homes, daycare facilities, and hospitals. 395 Memorandum REPORT TO:City Commission FROM:Melissa Hodnett, Finance Director Kaitlin Johnson, Budget Analyst Jonathon O'Dougherty, Budget Analyst SUBJECT:Resolution 5662, Adoption of the Fiscal Years (FY) 26-30 Capital Improvements MEETING DATE:December 10, 2024 AGENDA ITEM TYPE:Resolution RECOMMENDATION:Consider the Motion: I move to approve Resolution 5662. STRATEGIC PLAN:7.5. Funding and Delivery of City Services: Use equitable and sustainable sources of funding for appropriate City services, and deliver them in a lean and efficient manner. BACKGROUND:We are proud to present to you the City of Bozeman 2026 - 2030 Capital Improvement Plan (CIP). This five-year Capital Improvement Plan (CIP) is a commitment to improving and maintaining the City of Bozeman’s infrastructure, facilities, parks, and roads to aid in the vision of Bozeman being the most livable place. Staff have taken a great deal of time and care in preparing this document and the proposed projects and plans. The CIP includes any planned expenditure of $25,000 or greater, that results in the acquisition of an asset with a useful life of three years or more, with a few exceptions such as large infrastructure master planning efforts. The five-year plan includes long-range plans for current facilities while balancing level of service standards, intergenerational equity, and potential rate/assessment impacts. The proposed plan can be found on the City’s website Under Finance and select Budget and Financial Reports. The CIP is presented in compliance with State and municipal code. State law requires the City to maintain a CIP for Development Impact Fee Funds. This CIP provides the schedules and cost projections required under Montana Code Annotated (MCA) 7-6-1602(2). In addition, Article 5.06 of the adopted City Charter requires the City Manager to prepare and submit a multi-year capital program to the City Commission no later than December 15th for the ensuing fiscal year. The proposed CIP is developed by City departments and the City finance 396 department in coordination with the City’s many long-range plans such as the Transportation Plan and the Water and Sewer Treatment and Collection Plan. Many of the City’s long-term plans establish level of service standards that are critical to planning for the needs of current and future City residents. In some cases, such as water quality and wastewater discharge, standards are established or guided by outside regulating bodies. Adoption of the CIP does not provide budget authority or bind the City in any way to perform a particular project. The adopted CIP is used as a guide to the budget development process. Any project included in this plan does not have budget authorized in the 2025 Biennium will be covered by budget savings, or a budget amendment may be required. The proposed CIP was presented to City Commission during a work session on December 3, 2024. The plan was thoroughly reviewed and discussed with Commission, and public comment was solicited. As the next step in the process, this item will be for any proposed changes and final adoption of the FY26-30 CIP. UNRESOLVED ISSUES:The planning process for capital purchases and capital infrastructure happens in many stages. The proposed CIP is one of the first stages in that process. It is a planning document that will be used to guide future budgetary proposals but does not guarantee funding for any specific project. During budget development, departments will identify operational needs that will require revenues in addition to what is required to complete this capital plan. Additional financial modeling will occur to balance projects, debt issuances and rate/assessment impacts. Projects will not be initiated unless funding is secured. ALTERNATIVES:Changes to the proposed CIP can be adopted by motion. FISCAL EFFECTS:The City's Capital Improvement Plan is a mid-range plan, adopted annually that identifies five years plus of capital infrastructure projects, equipment purchases, and other capital purchases that have been identified to maintain or improve City services. The CIP is a planning document and will be used as a guide for future budgetary proposals, but it does not guarantee funding for any specific project or commit the City to future purchases. More extensive financial models and potential rate impacts will be analyzed during the budget process. Attachments: Resolution 5662.docx Report compiled on: November 13, 2024 397 Version February 2023 RESOLUTION 5662 A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF BOZEMAN, MONTANA, WHEREAS,the City of Bozeman Charter Article 5.07 requires the City Manager to submit a multi-year capital program. NOW, THEREFORE, BE IT RESOLVED by the City Commission of the City of Bozeman, Montana, to wit: the Capital Improvement Plan for Fiscal Years 2026 to 2030, as attached hereto and by this reference made a part here to of, is hereby adopted. PASSED, ADOPTED, AND APPROVED by the City Commission of the City of Bozeman, Montana, at a regular session thereof held on the 10th day of December, 2024. ___________________________________ TERENCE CUNNINGHAM Mayor ATTEST: ___________________________________ MIKE MAAS City Clerk APPROVED AS TO FORM: ___________________________________ GREG SULLIVAN City Attorney 398