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07-16-2026- City Commission Agendas & Packet Materials (2)
A. Call to Order - 4:00 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. Approval of Minutes THE CITY COMMISSION OF BOZEMAN, MONTANA REGULAR MEETING AGENDA Tuesday, July 21, 2026 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. Adaptive listening devices and handheld microphones are available for use by audience members upon request. How to Participate: If you are interested in commenting in writing on items on the agenda please send an email to comments@bozemanmt.gov 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 and oral comments are usually limited to three (3) minutes. 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.1 Approval of Regular City Commission Meeting Minutes from March 24, 2026 (Newby) G. Consent G.1 Authorize the City Commission to Send a Letter to the Museum of the Rockies Board of Trustees to Request Engagement Relating to Public Access(City Commission) G.2 Accounts Payable Claims Review and Approval (Edwards) G.3 Authorize the City Manager to Sign a Bozeman Parks and Trails Community Grant Agreement with Bozeman Library Friends and Foundation for support of a musical garden at the Bozeman Public Library(Jadin) G.4 Authorize the City Manager to Sign a Notice of Award and Final Contract Documents, Once Received, to Knife River, for Construction of the McIlhattan Road Bikefill Access Improvements(Gamradt) G.5 Ratify the City Manager's signature on the Gallatin County 2026 Fire Operating Plan (Waldo) G.6 A Resolution Authorizing the City Manager, Upon Approval of the City Attorney, to Sign the Right of Way Agreement, Warranty Deed, and All Other Necessary Documents to Complete Right of Way Acquisition and Effectuate Closing from Emil Anderson for the Fowler Avenue Connection(Murray) G.7 Ratify the City Manager's Signature on Construction Agreement with Peak Water Service to Repair Montana Department of Transportation Sewer Lift Station(Pericich) G.8 Authorize the City Manager to Sign a Master Agreement with Jackola Engineering & Architecture for Lindley Center Renovations(Miller) G.9 Authorize the City Manager to Sign a Professional Services Agreement with Advantage Spraying Services, Inc. for Snow Removal Services in the Parks and Trails District(Canter) G.10 Authorize the City Manager to Sign a Professional Services Agreement with Clean Slate Group LLC for Snow Removal Services in the Parks and Trails District(Canter) G.11 Authorize the City Manager to Sign the Professional Services Agreement with DOWL, LLC, for the Hyalite Intake Rehabilitation Project(Johnson) G.12 Authorize the City Manager to sign Amendment 2 to Task Order 4 of the Professional Services Master Task Order Agreement with HDR Engineering, Inc., providing engineering services for the East Gallatin River Bank 3 Restoration Project, Capital Improvement Plan (CIP) Project WW111(Nielsen) G.13 Authorize the City Manager to sign Task Order 4 with Cushing Terrell for Fowler Neighborhood Design Workshop(Fine) Consider the Motion: I move to approve the regular meeting minutes as submitted. Public comment on items within the Consent Agenda will be called for prior to the City Commission vote for approval. Oral comments are usually limited to three (3) minutes. 2 G.14 Authorize the City Manager to Sign Addendum 3 to the License Agreement with NorthWestern Energy for the Bozeman Solar Project at the Water Reclamation Facility Extending the License Term for an Additional Two Years or Until the Property is Transferred(Meyer) G.15 Resolution for the Intent to Create a Special Improvement Lighting District 799 for ANNE Subdivision Phase II LOT 5C-1 AND Open Space A-1(Hodnett) H. Public Comment on Non-agenda Items Falling Within the Purview and Jurisdiction of the Commission I. Work Session I.1 Advisory Board Work Session(Rowley) J. Mayoral Proclamation J.1 Mayoral Proclamation Proclaiming Americans with Disabilities Act Month(Morrison) K. Special Presentation K.1 Kagy Boulevard Construction Update(Ross) L. Action Items L.1 Approval of the Community Engagement Plan for the 2027 Transportation Master Plan Update(Esparza) L.2 Authorize the City Manager to Sign the Green Power Program Lead Community Agreement with NorthWestern Energy(Meyer) L.3 Ordinance Dissolving Department of Strategic Services and Creating Department of 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 (3) minutes. Written comments can be located in the Public Comment Repository. Public comment on all work sessions will be called for prior to the City Commission conducting discussion. Oral comments are usually limited to three (3) minutes. Special presentations typically have neither public nor City Commission comment. Public comment on all action items will be called for prior to the City Commission making a motion or conducting discussion. Oral comments are usually limited to three (3) minutes. Consider the Motion: I move to approve the Community Engagement Plan for the 2027 Transportation Master Plan Update. Authorize the City Manager to sign the Green Power Program Lead Community Agreement with NorthWestern Energy. 3 Communications & Engagement(Winn) M. FYI / Discussion N. Adjournment Consider the Motion: I move to provisionally adopt this Ordinance Dissolving Department of Strategic Services and Creating Department of Communications & Engagement. 4 Memorandum REPORT TO:City Commission FROM:Alex Newby, Deputy City Clerk Mike Maas, City Clerk Cola Rowley, Assistant City Manager Chuck Winn, City Manager SUBJECT:Approval of Regular City Commission Meeting Minutes from March 24, 2026 MEETING DATE:July 21, 2026 AGENDA ITEM TYPE:Administration RECOMMENDATION:Consider the Motion: I move to approve the regular meeting minutes as submitted. STRATEGIC PLAN:1.1 Outreach: Continue to strengthen and innovate in how we deliver information to the community and our partners. BACKGROUND:In 2013, The Clerks' Office identified goals related to the Commission’s priority of Improving Technology Utilization and Proficiency. Improvements included: • Live streaming broadcast of the City Commission Meeting • Meeting efficiency • Better access of meeting information for staff and the public • Time savings • Streamlined approach to citizen involvement and public comment In addition to the City Commission, many City Boards utilize the system as well. Beginning January 5, 2021 meetings in the Granicus platform have been closed captioned. Those captions are searchable using the advanced search option on our video view page. Users are always welcome to contact the City Clerks' Office at 406.582.2320 or email BozemanClerksDepartment@bozemanmt.gov for assistance. UNRESOLVED ISSUES:None ALTERNATIVES:As determined by the Commission. FISCAL EFFECTS:None Attachments: 5 03-24-26 City Commission Meeting Minutes.pdf Report compiled on: July 15, 2026 6 Bozeman City Commission Meeting Minutes, March 24, 2026 Page 1 of 8 THE CITY COMMMISSION MEETING OF BOZEMAN, MONTANA MINUTES March 24, 2026 Staff at the Dais: City Manager (CM) Chuck Winn, Chief Civil Attorney (CCA) Anna Saverud, Deputy City Clerk (DCC) Alex Newby Present: Joey Morrison, Jennifer Madgic, Douglas Fischer, Emma Bode, Alison Sweeney Absent: None Excused: None A) 00:02:24 Call to Order - 5:00 PM - Commission Room, City Hall, 121 North Rouse B) 00:04:30 Pledge of Allegiance and a Moment of Silence or Mindfulness C) 00:05:21 Changes to the Agenda D) 00:05:31 Appeal Public Hearing Decision D.1 Decision on Appeal 25769 Regarding Conditional Approval of Sundance Springs Commercial Lot 2 Site Plan Application Number 25238 25769 Appeal Materials Combined.pdf Bozeman Municipal Code Sections Relevant to Review of Sundance Springs APA 25769.pdf CCRs for Sundance Springs Section II Neighborhood Services Property.pdf CORRECTED 051923 ltr to Gallik.pdf Signed Findings of Fact and Order Sundance Springs Appeal 23214.pdf 25769 FINAL Sundance Springs Appeal Commission Staff Report.pdf 00:06:27 Chief Civil Attorney Anna Saverud opened the decision on Appeal 25769 Regarding Conditional Approval of Sundance Sprins Commercial Lot 2 Site Plan Application Number 25238 with a summation of what took place at the previous meeting to bring us to this decision. 00:08:48 Motions to Approve: Having reviewed and considered Appeal 25769 seeking to overturn the decision of the Director of Community Development conditionally approving the Sundance Springs Subdivision, Commercial Lot 2 7 Bozeman City Commission Meeting Minutes, March 24, 2026 Page 2 of 8 Site Plan Application 25238, the record of review, the presentation of staff and the Appellant, public comment, and all information presented, I move to amend the conditional approval of Site Plan Application 25238 to include new condition of approval 4, as follows: Site Plan Application 25238 must update the lighting plan to comply with maximum lighting standard of 0.3foot candles at the property boundary as required in BMC38.570.040.G.5. I move to approve the amended Conditional Approval of the Sundance Springs Commercial Lot 2 Site Plan Application 25238. Jennifer Madgic: Motion Alison Sweeney: 2nd 00:10:40 Discussion 00:26:41 Motion to Amend: I move to amend the original motion and add another condition of approval requiring the parking be removed from the rear setback allowing only landscaping in that area in order to comply with the declaration of covenants, conditions and restrictions for the Sundance Springs section two neighborhood services property. Alison Sweeney: Motion Douglas Fischer: 2nd 00:27:52 Discussion of the Amendment 00:36:28 Vote on the Motion to Amend: I move to amend the original motion and add another condition of approval requiring the parking be removed from the rear setback allowing only landscaping in that area in order to comply with the declaration of covenants, conditions and restrictions for the Sundance Springs section two neighborhood services property. The Motion failed 1 - 4. Approve: Alison Sweeney Disapprove: Joey Morrison Jennifer Madgic Douglas Fischer Emma Bode 00:36:47 Discussion continued 00:51:16 Vote on the Motions to Approve: Having reviewed and considered Appeal 25769 seeking to overturn the decision of the Director of Community Development conditionally approving the Sundance Springs Subdivision, Commercial Lot 2 Site Plan Application 25238, the record of review, the presentation of staff and the Appellant, public comment, and all information presented, I move to amend the conditional approval of Site Plan Application 25238 to include new condition of approval 4, as follows: Site Plan Application 25238 must update the lighting plan to comply with maximum lighting standard of 0.3foot candles at the property boundary as required in BMC38.570.040.G.5. 8 Bozeman City Commission Meeting Minutes, March 24, 2026 Page 3 of 8 2. I move to approve the amended Conditional Approval of the Sundance Springs Commercial Lot 2 Site Plan Application 25238. The Motions carried 5 - 0. Approve: Joey Morrison Jennifer Madgic Douglas Fischer Emma Bode Alison Sweeney Disapprove: None E) 00:51:57 FYI • Commissioner Madgic announced a walk with Commissioner Madgic and Deputy Mayor Fischer on Oak St. on Thursday March 26, 3:30 in parking lot of the Regional Park. • Commissioner Sweeney announced the 50th year of the MSU Pow-Wow on Friday and Saturday 27th and 28th at Brick Breeden Fieldhouse. • Commissioner Bode updated the public on the March Sustainability Board Meeting. • Deputy Mayor Fischer updated the public on the March Inter-Neighborhood Council meeting. • CM Winn announced the online community survey about downtown parking in the Downtown Urban Renewal District. F) 00:58:23 Commission Disclosures There were no Disclosures. G) 00:58:30 Consent G.1 Accounts Payable Claims Review and Approval G.2 Ratify Grant Application to Montana State Department of Commerce Historic Preservation Program for Story Mansion City of Bozeman Appendix B MHPG Application and Statutory Review Criteria_Final.pdf G.3 Ratify the Grant Application to the Montana Board of Crime Control (MBCC) for a Victims of Crime Act (VOCA) Grant VOCA Application.pdf G.4 Ratify Grant Application to Montana Disaster and Emergency Services (MT DES) State Resiliency Fund for the Sourdough Creek Municipal Watershed Fuels Reduction Program City of Bozeman_FINAL_Resiliency Funds Application.pdf G.5 Authorize the City Manager to sign the Notice of Award and contract documents once received for the East Gallatin River Bank 3 Restoration Project, Capital Improvement Plan (CIP) Project No. WW111 to Olympus Technical Services, Inc. East Gallatin River Bank 3 Restoration_NOA.pdf East Gallatin Bank 3 Restoration_NOA Recommendation.pdf East Gallatin River Bank 3 Restoration_Contract Documents.pdf G.6 Authorize the City Manager to sign the Notice of Award for the North 27th Avenue - Cattail Street to Baxter Lane Improvements project, to Knife River - Belgrade, for the 9 Bozeman City Commission Meeting Minutes, March 24, 2026 Page 4 of 8 Total Base Bid in the amount of $5,332,520.25, and final contract documents once received. Notice of Award.doc N. 27th Avenue Final Bid Tab - March 5 2026.pdf N 27th Avenue Contract Award Recommendation.pdf G.7 Approve the Final Plat for the Parklands At Village Downtown Subdivision and Authorize the Director of Transportation and Engineering to Execute the Same on Behalf of the City of Bozeman, Application 25686 (Montana) 25686 Parklands Amended FP Commission Memo for Granicus.pdf 25686 City Attorney Certificate.pdf 25273_Parklands_Amended_PP_Findings_of_Fact_Signed.pdf G.8 Authorize the City Manager to Sign a Memorandum of Understanding with the Bozeman Public Library Friends and Foundation for the Children's Room Renovation Project Library Children's Room Agreement.pdf G.9 Approve the 2025 Annual Ethics Report 2025 BOE Annual Report.FINAL.pdf G.10 Acknowledging the Receipt of a Petition to Change the Name of Graf Street to East Graf Street Application for street or alley name change South Meadow Condos draft.pdf G.11 Authorize the City Manager to Sign a Use License Agreement with RTR Holdings II for South University District Park Southwood-Park_License-Agreement-2026.pdf Exhibit A - Phase 3 Plat.pdf Exhibit B - Phase 2 Plat.pdf Exhibit C - Construction Drawing.pdf Exhibit D - Phase 1 approval letter.pdf G.12 Authorize the City Manager to Sign a One Year License Agreement with ADVAN Research Corporation, LLC for Park and Trail District Visitation Trend Analysis Advan - Bozeman Parks and Recreation Dept. License Agreement.docx Cloud Services Questionnaire.docx G.13 Authorize the City Manager to sign a purchase agreement for firefighter equipment as part of a FEMA Assistance to Firefighters Grant 2026 Assistance to Firefighters Grant purchase agreement.pdf G.14 Authorize the City Manager to Sign a Purchase Agreement with Custom Truck and Equipment LLC for One Truck Mounted Forestry Aerial Device Purchase Agreement - FOR13 Exhibit A G.15 Authorize the City Manager to Sign a Professional Services Agreement with S. Conley Support for Facilities HVAC Preventative Maintenance Services PSA - HVAC Preventative Maintenance FY26-FY30.pdf G.16 Authorize City Manager to Sign First Amendment to Professional Services Agreement with Summit Utilities LLC for Underground Utility Locating Services 26 - Amendment 1 - PSA Summit Utility - Underground Utility Locating Services.docx G.17 Authorize City Manager to sign the First Amendment with TD & H Engineering for the College Street, 8th to 11th Improvements Project College Street First Amendment to the PSA.pdf 10 Bozeman City Commission Meeting Minutes, March 24, 2026 Page 5 of 8 G.18 Authorize the City Manager to sign Amendment 4 to the Professional Services Agreement with Advanced Engineering and Environmental Services, LLC, for Phase I Rehabilitation Improvements to the City's Sourdough Water Storage Tank PSA Amendment 4_Sourdough Tank Ph 1 Rehab_AE2S.pdf G.19 A Resolution Approving Initiation of Amendments to Chapter 38, Unified Development Code for Wireless Facilities, Historic Preservation and Design Guidelines, and Landmark Program Commission Authorization for Code Amendments March 2026.docx G.20 Resolution Adoption of the L Street Annexation, Annexing 17.92 acres, Application 25360 25360 L Street Annex Resolution.pdf 001 - EXHIBIT G - ANNEXATION MAP.pdf 25360 L Street Annexation Agreement - Signed.pdf G.21 Resolution 2026-14 Approving Certain Infrastructure Improvements, Referred to as the Main and Mendenhall Lighting Project, as an Urban Renewal Project with Respect to the Bozeman Midtown Urban Renewal District, Making Findings with Respect Thereto and Approving the Use of Tax Increment Revenues to Reimburse Costs Thereof and Approving a Related Development Agreement in the Midtown Urban Renewal District with Bozeman Exchange Associates, LLC BZN Development Agreement -- Midtown lighting Final.pdf Resolution 2026-14_approving_Main_and_Mendenhall_lighting_project 20260324.docx 00:58:37 CM Winn presented the Consent Highlights 01:00:22 Public Comment on Consent There was no public comment on Consent. 01:00:56 Motion to approve: I move to approve Consent Agenda Items G.1 through G. 21. Alison Sweeney: Motion Douglas Fischer: 2nd 01:01:17 Vote on the Motion to approve: I move to approve Consent Agenda Items G.1 through G. 21. The Motion carried 5 - 0. Approve: Joey Morrison Jennifer Madgic Douglas Fischer Emma Bode Alison Sweeney Disapprove: None H) 01:01:34 Consent II 11 Bozeman City Commission Meeting Minutes, March 24, 2026 Page 6 of 8 H.1 Ordinance, Provisional Adoption, Establishing a Zoning Designation of R-B Residential Mixed Use Low-Medium (formerly R-3, Residential Medium-Density District), in Association with the Annexation of 17.92 Acres, the L Street Annexation, Application 25360 25360 L Street Ordinance.pdf 002 - EXHIBIT H - ZMA MAP.pdf 01:01:37 Motion to Approve: I move to present Consent II as presented. Douglas Fischer: Motion Emma Bode: 2nd 01:01:46 Vote on the Motion to Approve: I move to present Consent II as presented. The Motion carried 3 - 2. Approve: Joey Morrison Douglas Fischer Emma Bode Disapprove: Jennifer Madgic Alison Sweeney I) 01:02:07 Mayoral Proclamation I.1 Mayoral Proclamation of April 5th as First Contact Day Proclamation Declaring April 5th as First Contact Day.docx J) 01:07:14 Special Presentation J.1 Operations from the Director - Transportation and Engineering Tell our Story Presentation 01:07:17 CM Winn presented the Special Presentation 01:07:36 Director of Transportation and Engineering, Nick Ross presented Our Story: Transportation & Engineering Operations, Operations from the Director, Vehicle Maintenance Organizational Chart, Vehicle Maintenance, Streets, Signs & Signals Organizational Chart, Street Maintenance, Solid Waste Organizational Chart, Bozeman Solid Waste. K) 01:20:01 Action Items K.1 Resolution to Adopt Fiscal Years (FY) 2027-31 Capital Improvements Plan FY27-31 CIP Resolution_26.03.24.docx 01:20:06 CM Winn introduced Action Items 01:20:21 Finance Director (FD) Melissa Hodnett presented the 2027-2031 Capital Improvement Program, Next Steps. 12 Bozeman City Commission Meeting Minutes, March 24, 2026 Page 7 of 8 01:22:45 Questions of Staff 01:22:52 Public Comment on Action Item K.1 There was no public comment. 01:23:49 Motion to Approve: I move to approve the resolution adopting the Fiscal Year 2027-2031 Capital Improvement Plan. Emma Bode: Motion Jennifer Madgic: 2nd 01:24:16 Discussion 01:34:57 Vote on the Motion to Approve: I move to approve the resolution adopting the Fiscal Year 2027-2031 Capital Improvement Plan. The Motion carried 5 - 0. Approve: Joey Morrison Jennifer Madgic Douglas Fischer Emma Bode Alison Sweeney Disapprove: None L) 01:35:47 Public Comment on Non-agenda Items Falling Within the Purview and Jurisdiction of the Commission 01:36:08 Carl Anderson thanked the Commission for the Proclamation of April 5th as First Contact Day and introduced MontPIRG (Montana Public Interest Research Group) Students. 01:37:05 Lorrie Wallace commented on the Harvest Creek HOA Press Release. 01:40:10 Daniel Carty commented on the cutting down of trees on Middle Creek Ditch. 01:41:48 Mary McHugh commented on agenda details and opportunities for public comment. M) 01:44:19 FYI / Discussion • Commissioner Madgic mentioned the AI Podcast the Bozeman Brief. • Commissioner Sweeney is in support of having a conversation on Interim Zoning • Commissioner Sweeney commented on ditches and the removal of trees. • Deputy Mayor Fischer asked for follow up on tree cutting and spoke in support of added language to the Agenda and finally commented on the interior of the Commission Room with possible suggestions. 13 Bozeman City Commission Meeting Minutes, March 24, 2026 Page 8 of 8 • Commissioner Bode commented on the grants that were on the Consent Agenda. • Mayor Morrison commented on the anatomy of an Agenda. • CM Winn has three action items to work on as a result of the meeting. N) 01:53:27 Adjournment ___________________________________ Joey Morrison Mayor ATTEST: ___________________________________ Mike Maas City Clerk PREPARED BY: ___________________________________ Mike Maas City Clerk Approved on: July 22, 2026 14 Memorandum REPORT TO:City Commission FROM:Mayor, Joey Morrison Deputy Mayor, Douglas Fischer Commissioner, Jennifer Madgic Commissioner, Emma Bode Commissioner, Alison Sweeney SUBJECT:Authorize the City Commission to Send a Letter to the Museum of the Rockies Board of Trustees to Request Engagement Relating to Public Access MEETING DATE:July 21, 2026 AGENDA ITEM TYPE:Citizen Advisory Board/Commission RECOMMENDATION:Authorize the City Commission to Send a Letter to the Museum of the Rockies Board of Trustees to Request Engagement Relating to Public Access STRATEGIC PLAN:1.3 Public Agencies Collaboration: Foster successful collaboration with other public agencies and build on these successes. BACKGROUND:Both the City of Bozeman's Kagy Boulevard Project and the Museum of the Rockies campus improvements make this a logical time to re-engage about potential public access trails in the neighborhoods and vicinity of the Museum. UNRESOLVED ISSUES:None identified ALTERNATIVES:As per the City Commission FISCAL EFFECTS:TBD Attachments: City Commission - Letter to MOR.docx Report compiled on: July 15, 2026 15 Dear Members of the Museum of the Rockies Board of Trustees, As a unanimous Bozeman City Commission, we want to begin by expressing our appreciation for the extraordinary role the Museum of the Rockies plays in our community. For generations, MOR has helped tell the story of our region — its landscapes, history, people, and place in the broader world. As the museum looks toward its next chapter through a major investment in its campus, we are excited by the opportunity to see one of Bozeman’s most important cultural institutions continue to grow and thrive. We are writing today because we believe this moment also presents a rare opportunity to strengthen the museum’s connection to the community immediately around it. As you know, the former railroad corridor that crosses near the MOR campus has evolved into one of Bozeman’s important bicycle and pedestrian connections. Completing this corridor would provide a safe, intuitive connection between neighborhoods, schools, Montana State University, parks, and existing trail systems. It has the potential to serve hundreds of residents — including students walking and biking to school — while reducing conflicts along increasingly busy streets. With planned improvements to Kagy Boulevard and MOR’s own significant campus improvements moving forward, decisions made today will shape transportation patterns in this area for decades. We understand that the museum’s current plans direct pedestrians and cyclists around the perimeter of the property rather than continuing the existing corridor through the campus. While we recognize there are operational, design, and visitor-experience considerations that must be addressed, we are concerned that this approach will miss an important opportunity to create a more seamless and welcoming connection between MOR and the neighborhoods it serves. Great civic institutions are not just destinations; they are woven into the fabric of their communities. Some of the most beloved museums, universities, and cultural campuses 16 in the country succeed precisely because they invite people through their spaces — creating daily connections not only with visitors who purchase tickets, but also with neighbors, students, families, and residents who experience these places as part of their everyday lives. We believe MOR has an opportunity to create that kind of connection. Our intent is not to prescribe a specific alignment or design solution. Rather, we are asking for an opportunity to reopen conversations among MOR leadership, city staff, transportation partners, and the surrounding community to explore a solution that supports the museum’s long-term vision while also preserving this important community connection. We recognize that questions of safety, maintenance, programming, landscaping, and campus identity are real and deserve thoughtful discussion. We also believe those challenges are solvable — particularly when addressed early, during a transformational planning process. The City of Bozeman values MOR deeply. We want its next chapter to succeed. We also want future generations to look back on this moment as one when we strengthened the connections between our community’s treasured institutions and the people they serve. We would welcome the opportunity to continue this conversation and work together toward a solution that reflects the best of both MOR and Bozeman. Sincerely, The Bozeman City Commission 17 Memorandum REPORT TO:City Commission FROM:Serena Axelson, 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:July 21, 2026 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 July 22, 2026. 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: August 21, 2024 18 Memorandum REPORT TO:City Commission FROM:Addi Jadin, Park Planning and Development Manager Mitch Overton, Director of Parks and Recreation SUBJECT:Authorize the City Manager to Sign a Bozeman Parks and Trails Community Grant Agreement with Bozeman Library Friends and Foundation for support of a musical garden at the Bozeman Public Library MEETING DATE:July 21, 2026 AGENDA ITEM TYPE:Agreement - Agency/Non-profit RECOMMENDATION:Move to Approve the Bozeman City Manager to Sign a Bozeman Parks and Trails Community Grant Agreement with Bozeman Library Friends and Foundation for support of a musical garden at the Bozeman Public Library. STRATEGIC PLAN:6.5 Parks, Trails & Open Space: Support the maintenance and expansion of an interconnected system of parks, trails and open spaces. BACKGROUND:The Bozeman Parks and Trails Community Grant Program (Community Grant Program) replaces the former Parks Improvement Grant Program. The Community Grant Program is administered by the Bozeman Parks and Recreation Department utilizing a portion of Cash-In-Lieu of Parkland funds in the Park Land Trust Fund which are budgeted, reviewed, and ultimately allocated by the City Commission during the budgeting process. The Bozeman Parks and Urban Forestry Board, with assistance from Parks and Recreation Staff, reviews applications and awards the allocated grant funding when appropriate. All Community Grant funding awards must meet State and local requirements for the utilization of cash-in-lieu of parkland funds. The Urban Parks and Forestry Board recommended funding of the Bozeman Library Friends and Foundation request in the amount of $10,000 for the Bozeman Library Music Garden Project. UNRESOLVED ISSUES:NA ALTERNATIVES:Per Commission FISCAL EFFECTS:Funding for the Community Grant Program is authorized in the FY27 budget with a total amount of $250,000 from the Cash-in-Lieu / Park Land Trust Fund. 19 Attachments: Grant-Agreement_Library Foundation.docx Exhibit A-Library Music Garden Application.pdf Report compiled on: August 1, 2025 20 CITY OF BOZEMAN GRANT AGREEMENT Bozeman Library Friends and Foundation 2025 Parks Community Grant THIS AGREEMENT is made and entered into this 21st day of July, 20 by and between the City of Bozeman, Montana, a self-governing municipal corporation operating pursuant to its Charter and the laws of the State of Montana, located at 121 N. Rouse Ave., Bozeman MT 59771 (“City”) as GRANTOR and Bozeman Library Friends and Foundation, 626 East Main Street, Bozeman, MT 59715 (“Library Foundation”) as GRANTEE. WHEREAS, on October 17, 2005 the Bozeman City Commission adopted Resolution No. 3866 establishing policies for the granting of funds from the City of Bozeman to a requesting entity; and WHEREAS, the Library Foundation submitted a grant application (Exhibit A) to the City Commission’s Urban Parks and Forestry Board (“the Grant”) of $35,758.00 for playground furniture and landscaping that would benefit from the City funding; and WHEREAS, the City Commission may make grants of money for public purposes pursuant to Sect. 7-1-4124(9), MCA; and WHEREAS, the City Commission determines the granting of funds under this Agreement is for a public purpose benefitting the community by creating a recreational an active recreation opportunity as encouraged in the Parks, Recreation and Active Transportation Plan; WHEREAS, on June 23, 2026, the Commission appropriated $250,000 for the Parks and Trails Community Grant Program; WHEREAS, on July 24, 2025 the Urban Parks and Forestry Board recommended funding of the Music Garden in the grant application in the amount of ten thousand dollars ($10,000.00) and for the Parks and Recreation Director to submit a Grant Agreement to the City Commission for approval. THE PARTIES AGREE: 1. The Grant. a. The City will grant and release to GRANTEE a sum of up to ten thousand dollars ($10,000) from its Park Land Trust Fund (the “Grant”) pursuant to the payment terms in Section 3. 2. Use of Grant Funds. Grant funds will be used by GRANTEE for the sole purposes of purchasing playground equipment as described in the proposal submitted by GRANTEE to the City Commission, attached hereto as Exhibit A and by this reference incorporated herein. 21 3. Payment of Grant Funds a. GRANTEE may request the Grant funds during the fiscal year ending June 30, 2027 as needed by providing proof of expenses paid. Acceptable forms of proof of payment shall be as determined in the sole discretion of the City’s Director of Finance. b. Unless otherwise approved by the Director of Finance, any funds from the Grant not awarded during the fiscal year ending June 30, 2027 will remain in the City’s Park Land Trust Fund and will be available for other appropriation. c. The City will have no obligation to pay any Grant funds unless at the time of the request for payment (i) all of GRANTEE’s representations as set forth in Section 4 are true and correct, and (ii) GRANTEE is not in breach of any term of this Agreement. If any of the above conditions are not satisfied in sole the determination of the City, the City shall have no obligation to make payment and the City’s determination to refrain from paying, or its inability to pay, any of the Grant funds shall not be or result in a default of this Agreement. 4. Grantee Representations a. GRANTEE has familiarized itself with the nature and extent of this Agreement and with all local conditions and federal, state and local laws, ordinances, rules, and regulations that in any manner may affect GRANTEE’s performance under this Agreement. b. GRANTEE represents and warrants to City that it has the experience and ability to perform its obligations under this Agreement; that it will perform said obligations 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 for GRANTEE to meet this warranty. c. GRANTEE represents and warrants to City that the Grant funds are necessary to accomplish the financial requirements of the Bozeman Library Music Garden 2025 Park Community Grant. 5. Reports/Accountability/Public Information. If Grant funds are paid to GRANTEE, GRANTEE will provide to the City a formal written report that includes, at a minimum, the proof of expenses paid. GRANTEE agrees to develop and/or provide such other documentation as requested by the City demonstrating GRANTEE’s compliance with the 22 requirements of this Agreement. GRANTEE must 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 monies provided to GRANTEE pursuant to this Agreement were used in compliance with this Agreement and all applicable provisions of federal, state, and local law. GRANTEE will retain such records for seven years after receipt of final payment under this Agreement unless permission to destroy them is granted by the City. GRANTEE shall not issue any statements, releases or information for public dissemination without prior approval of the City. 6. Permits and Compliance With Laws. GRANTEE 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 Project. 7. Independent Contractor Status. The parties agree that GRANTEE, its agents, employees, contractors, or subcontractors, are independent contractors for purposes of this Agreement and are not to be considered employees or agents of the City for any purpose. GRANTEE and its agents, employees, contractors, or subcontractors, are 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. GRANTEE, its agents, employees, contractors, or subcontractors, are not authorized to represent the City or otherwise bind the City in any way. 8. Default and Termination. If GRANTEE fails to comply with any condition of this Agreement at the time or in the manner provided for, the City may terminate this Agreement if the default is not cured within fifteen (15) days after written notice is provided to GRANTEE. The notice will set forth the items to be cured. If this Agreement is terminated pursuant to this Section, GRANTEE will repay to the City any Grant funds already delivered to GRANTEE for the Emily Dickinson 2025 Park Community Grant. 9. Limitation on GRANTEE’s Damages; Time for Asserting Claim a. In the event of a claim for damages by GRANTEE under this Agreement, GRANTEE’s damages shall be limited to contract damages and GRANTEE 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 GRANTEE wants to assert a claim for damages of any kind or nature, GRANTEE must first 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 ninety (90) days of the facts and 23 circumstances giving rise to the claim. In the event GRANTEE fails to provide such notice, GRANTEE shall waive all rights to assert such claim. 10. Representatives a. City’s Representative. The City’s Representative for the purpose of this Agreement shall be Addi Jadin or such other individual as City may designate in writing. Whenever approval or authorization from or communication or submission to City is required by this Agreement, such communication or submission must be directed to the City’s Representative and approvals or authorizations will be issued only by such Representative; provided, however, that in exigent circumstances when City’s Representative is not available, GRANTEE may direct its communication or submission to other designated City personnel or agents and may receive approvals or authorization from such persons. b. GRANTEE’s Representative. GRANTEE’s Representative for the purpose of this Agreement shall be Janay Johnson or such other individual as GRANTEE designates in writing. Whenever direction to or communication with GRANTEE is required by this Agreement, such direction or communication must be directed to GRANTEE’s Representative; provided, however, that in exigent circumstances when GRANTEE’s Representative is not available, City may direct its direction or communication to other designated GRANTEE personnel or agents. 11. Indemnity/Waiver of Claims/Insurance. To the fullest extent permitted by law, GRANTEE agrees to defend, indemnify and hold the City and its agents, representatives, employees, and officers (collectively referred to for purposes of this Section as the City) harmless against all third party claims, demands, suits, damages, losses, and expenses, including reasonable defense attorney fees, which arise out of, relate to or result from GRANTEE’s (i) negligence, or (ii) willful or reckless misconduct. Such obligations shall not be construed to negate, abridge, or reduce other rights or obligations of indemnity that would otherwise exist. The indemnification obligations of this Section must not be construed to negate, abridge, or reduce any common-law or statutory rights of the indemnitee(s) which would otherwise exist as to such indemnitee(s). GRANTEE’s indemnification obligations under this Section shall be without regard to and without any right to contribution from any insurance maintained by City. Should any indemnitee described herein be required to bring an action against GRANTEE to assert its right to defense or indemnification under this Agreement or under GRANTEE’s applicable insurance policies required below the indemnitee shall be entitled to recover reasonable costs and attorney fees incurred in asserting its right to indemnification or defense but only if a court of competent jurisdiction determines 24 GRANTEE was obligated to defend the claim(s) or was obligated to indemnify the indemnitee for a claim(s) or any portion(s) thereof. In the event of an action filed against City resulting from the City’s performance under this Agreement, the City may elect to represent itself and incur all costs and expenses of suit. GRANTEE also waives any and all claims and recourse against the City or its officers, agents or employees, including the right of contribution for loss or damage to person or property arising from, growing out of, or in any way connected with or incident to the performance of this Agreement except “responsibility for his own fraud, for willful injury to the person or property of another, or for violation of law, whether willful or negligent” as per 28-2-702, MCA. These obligations shall survive termination of this Agreement. In addition to and independent from the above, GRANTEE shall at GRANTEE’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 GRANTEE in this Section. The insurance coverage shall not contain any exclusion for liabilities specifically assumed by GRANTEE in this Section unless and to the extent coverage for such liability is not reasonably available. The insurance shall cover and apply to all claims, demands, suits, damages, losses, and expenses that may be asserted or claimed against, recovered from, or suffered by the City without limit and without regard to the cause therefore and which is acceptable to the City and GRANTEE 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 The City of Bozeman, its officers, agents, and employees, shall be endorsed as an additional 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 delivery of Grant funds to GRANTEE. GRANTEE shall notify City within two (2) business days of GRANTEE’s receipt of notice that any required insurance coverage will be terminated or GRANTEE’s decision to terminate any required insurance coverage for any reason. 25 12. Nondiscrimination and Equal Pay. GRANTEE agrees that all hiring by GRANTEE of persons performing this Grant Agreement shall be on the basis of merit and qualifications. GRANTEE will have a policy to provide equal employment opportunity in accordance with all applicable state and federal anti-discrimination laws, regulations, and contracts. GRANTEE 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. In addition, GRANTEE 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). GRANTEE must report to the City any violations of the Montana Equal Pay Act that GRANTEE has been found liable for or guilty of within 30 days of such finding for violations occurring during the term of this Agreement. GRANTEE shall require these nondiscrimination terms of its subcontractors providing services under this Grant Agreement. 13. Public Meetings and Access to Public Records a. Meetings of GRANTEE that pertain to the receipt or expenditure of Grant funds from the City may be subject to the open meeting requirements of Montana law, including those set forth in Title 7, Chapter 1, Part 41, MCA and Title 2, Chapter 3, MCA. To ensure compliance, GRANTEE must provide agendas for meetings that pertain to the receipt or expenditure of Grant funds covered by this Agreement to the City Clerk’s office no later than 72 working hours prior to meeting for notice on the City’s official posting board and any other sites deemed reasonable by the Clerk’s office. In addition, meeting minutes will be kept by GRANTEE and provided to the City Clerk’s office no later than 90 days after the meeting. These minutes shall be posted and made available to the public by the City Clerk’s office except for those minutes taken during a closed meeting in accordance with 2-3-203, MCA. Minutes taken during a closed meeting shall also be provided to the City Clerk’s office but shall be handled in accordance with the City Clerk’s regular executive session protocol and kept private in a secured cabinet. b. In accordance with 7-1-4144, MCA and subject to any applicable legal obligation to protect and preserve individual confidential or private information, upon reasonable request and at reasonable times during normal business hours, GRANTEE shall make such records available for inspection and copying by members of the public. GRANTEE may charge for such copying in accordance with the policies of the City, which GRANTEE hereby adopts for such purposes. 26 c. To determine whether a meeting or part of a meeting may be closed to the public and to determine whether information contained in GRANTEE documents is protected by law from disclosure, GRANTEE may seek a determination of the City Attorney at no cost to GRANTEE. Such request and determination shall not create an attorney- client relationship between GRANTEE and the City. 14. Attorney’s Fees and Costs. In the event it becomes necessary for a party to this Agreement to retain an attorney to enforce any of the terms or conditions of this Agreement or to give any notice required herein, then the prevailing party shall be entitled to reasonable attorney’s fees and costs, including fees, salary, and costs of in- house counsel to include City Attorney. 15. Integration and Modification. This document contains the entire agreement between the parties and no statements, promises or inducements made by either party or agents of either party not contained in this written Agreement may be considered valid or binding. This Agreement may not be modified except by written agreement signed by both parties. 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 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. 17. No Assignment. GRANTEE may not subcontract or assign GRANTEE’s rights, including the right to Grant payments, or any other rights or duties arising hereunder, without the prior written consent of City. 18. No Third Party Beneficiary. The terms and provisions of this Agreement are intended solely for the benefit of each party and their respective successors and assigns. It is not the parties’ intent to confer third party beneficiary rights upon any other person or entity. 19. Choice of Law. This Agreement shall be governed and construed in accordance with the laws of the State of Montana without regard to conflict of law provisions. The Parties agree to submit to the personal and exclusive jurisdiction of the courts located within Gallatin County, Montana. 27 20. 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. 21. Severability. If any portion of this Agreement is held to be void or unenforceable, the balance of the Agreement shall continue in effect. 22. Counterparts. This Agreement may be executed in counterparts, which together constitute one instrument. 23. 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. 28 IN WITNESS WHEREOF, the parties hereto have executed this instrument the day and year indicated below. _______________________ Date: __________ Chuck Winn, City Manager City of Bozeman _______________________ Date: __________ Janay Johnson; Executive Director GRANTEE Approved as to form: _______________________ Date: __________ Greg Sullivan, City Attorney City of Bozeman 29 COMMUNITY GRANT PROGRAM APPLICATION PROJECT INFORMATION Project Name: ______________________________________________________________________________________ Location: __________________________________________________________________________________________ Location of project within the park/public recreation area and nearest cross street: __________________________________________________________________________________________________ __________________________________________________________________________________________________ APPLICATION INFORMATION Applicant (Organization): _____________________________________________________________________________ Primary Contact(s): __________________________________________________________________________________ Phone Number(s): ___________________________________________________________________________________ Email Address(es): ___________________________________________________________________________________ FUNDING REQUEST Funding Requested: _________________________________________________________________________________ Match Provided by Applicant FINANCIAL (IF APPLICABLE/NOT REQUIRED): ___________________ Match Provided by Applicant VALUE OF IN-KIND LABOR OR MATERIALS (IF APPLICABLE/NOT REQUIRED): BRIEF PROJECT DESCRIPTION (DO NOT EXCEED SPACE PROVIDED) __________________________________________________________________________________________________ __________________________________________________________________________________________________ __________________________________________________________________________________________________ __________________________________________________________________________________________________ __________________________________________________________________________________________ __________________________________________________________________________________________ 30 Criteria Narrative: Bozeman Public Library Music Garden Project Overview The Bozeman Public Library seeks funding to create an inclusive and interactive outdoor music garden featuring seven permanently installed percussion instruments designed for four-season use. This accessible, sensory-rich space will serve as a unique destination for creative expression, community engagement, and wellness, enhancing the Library’s role as a vibrant hub of public life. Need for the Project The Library is one of Bozeman’s most visited public institutions, welcoming over 1,000 patrons daily from a wide range of socioeconomic backgrounds. Our outdoor spaces, including walking paths, play spaces, a sculpture garden, and seating areas, are highly trafficked and valued by the public. However, no existing park or public venue in Bozeman offers a dedicated outdoor music experience. This project addresses a gap in accessible, creative, and multi-generational recreational opportunities, especially for individuals who face language or mobility barriers. In alignment with Theme 1 of the Parks, Recreation, and Trails (PRAT) Plan—“welcoming, equitable access”—the music garden will be accessible and open to all ages and abilities. It will become a destination for families, caregivers, seniors, and community groups seeking interactive outdoor activities that promote connection, learning, and joy. Project Description and Goals We are partnering with the Bozeman Symphony to select a range of percussion instruments with complementary tones and pitches, ensuring a harmonious and intuitive experience for users. These instruments will be permanently mounted outdoors and engineered to withstand Montana’s climate. The music garden will be located on the Library’s grounds and built after the City completes the irrigation system replacement in 2026. The instruments will be installed along a treble-clef shaped path of decomposed granite with ample space for movement, seating, and sensory exploration. The design will include educational signage encouraging exploration, improvisation, and group play. (See attachments for additional details on design and materials.) The goals of the project are to: 1. Provide a welcoming, accessible space where community members of all ages, backgrounds, and abilities can engage with music. 31 2. Stimulate child development through interactive sound play, supporting cognitive, emotional, and motor development. 3. Encourage intergenerational connections and spontaneous collaboration through shared musical experiences. 4. Promote outdoor recreation and well-being through an innovative park feature not currently available in Bozeman. Community Impact and Equity The music garden is intentionally designed to foster inclusion and belonging. Music transcends verbal language, making it a powerful tool for engaging diverse populations, including non-native English speakers, neurodivergent individuals, and people with physical disabilities. By providing a free, public space that invites creativity and cooperation, the garden will support community wellness, reduce social isolation, and enrich Bozeman’s cultural and recreational landscape. Music play reduces stress, improves concentration and mobility, and fosters emotional expression, making it especially beneficial for children and older adults. Project Readiness and Sustainability The total project cost is $80,758. We have secured $45,000 in funding from individuals and have invested $6,400 in the design phase. The remaining $35,758 is needed to complete construction. Pending irrigation work on the library property is scheduled for 2026. Construction of the music garden will immediately follow, with projected completion in late summer or early fall 2026. City facilities has approved the design and don’t anticipate it affecting mowing or snow removal. The Bozeman Library Friends and Foundation will oversee the ordering of the instruments, selection of a contractor, and work on the project in cooperation with Library leadership and City Facilities. We will issue a press release, promote on both Library and BLFF social media channels and e-news, as well as distribute promotional materials in the Library. We will have a grand opening celebration and invite donors, stakeholders, city officials, and the general public. Scoring Alignment This proposal addresses multiple priority criteria from the 2025 Community Grant Program: 32 • Equity and Accessibility: The music garden will be wheelchair accessible and designed for all ages and abilities. • Community Benefit: Serves thousands annually and fills a unique niche in Bozeman’s recreational offerings. • Partnerships: Includes collaboration with cultural and civic partners. • Readiness and Feasibility: Majority of funding secured; professional design completed; city work scheduled; timeline and sustainability in place. • Innovation: Introduces an entirely new, multi-sensory play and learning experience to Bozeman’s public spaces. Conclusion The Bozeman Public Library Music Garden will offer an inspiring, inclusive environment where community members can connect, create, and play. With strong community support, committed partners, and a clear plan for implementation, this project represents a timely and meaningful investment in the public realm—one that aligns deeply with the goals of the Community Grant Program and the PRAT Plan. 33 BOZEMAN LIBRARY MUSIC GARDENSCHEMATIC DESIGN PRESENTATION | 2024.12.2034 2024.12.20BOZEMAN LIBRARY MUSIC GARDEN | SITE ANALYSISSCALE0’ 5’ 10’20’GALLAGATORLINEARTRAILOBSERVEDDESIREPATHEXISTING SCULPTUREEXISTING BENCHESTO LI N DL E Y P A R K TO SCULPTURE PARKTO LIBRARY ENTRANCETO PARKINGTO PARKINGEXISTING BENCHESNOISE DISTURBANCE FROM LIBRARY UTILITIESEXISTING SCULPTUREEXISTING SCULPTURE35 2024.12.20BOZEMAN LIBRARY MUSIC GARDEN | INSTRUMENTS SUGGESTED BY SYMPHONYTEMPLE BLOCK TREEMARIMBABABEL DRUMRAINBOW SAMBASTUBULAR BELLSDUODIATONIC SYMPHONY FREECHIMES36 2024.12.20BOZEMAN LIBRARY MUSIC GARDEN | DESIGN ANALYSISSCALE0’4’8’ 16’MUSIC PATHCOMMUNITY BAND37 2024.12.20BOZEMAN LIBRARY MUSIC GARDEN | SITE PLAN RENDERINGSCALE0’4’8’ 16’EXISTING LAWNEXISTING LAWNEXISTING NATIVE GRASSESMARIMBAGARDEN SIGNAGERELOCATED “THREE ANCIENT HARMONIES” SCULPTUREBABEL DRUMEXISTING “TRUTH IV” SCULPTURERELOCATED EXISTING BENCHRELOCATED EXISTING BENCHEXISTING “RE BALANCE” SCULPTURERELOCATED EXISTING BENCHESDIATONIC SYMPHONY FREECHIMESTUBULAR BELLSDUOEXISTING ASPENTEMPLE BLOCK TREERAINBOW SAMBASDECOMPOSED GRANITE PATHWAYNATIVE GRASSES AND WILDFLOWERSSHREDDED CEDAR PLAY AREA38 2024.12.20BOZEMAN LIBRARY MUSIC GARDEN | PRELIMINARY DESIGN PRICING ESTIMATE*PRICES PROVIDED ARE OPINION OF PROBABLE COST AND ARE NOT TO BE USED FOR CONSTRUCTION. CONSULT A LANDSCAPE CONTRACTOR FOR AN OFFICIAL BID.Cost Estimate Date:2024.12.20Cost Estimate Description: Preliminary Landscape Pricing Estimated Landscape Cost:$74,358 No.ActivityQuantity UnitUnit PriceCost Subtotal CostAssumptions and Comments0.0 Misc.Relocate sculpture1LS$750.00$750Relocate Benches4LS$100.00$400Garden Signage1LS$10,000.00$10,000Irrigation Adjustments1LS$3,500.00$3,5001.0 PlantingWildflower Seeding1,422 SF$1.00$1,422*Assumes hand broadcast seeding with Native Seed Mix TBD; area based on preliminary grading.2.0 Grading/HardscapeSteel Edging ~ 1/4" plate steel608 LF$8.50$5,168Mulch - Cedar 8CY$50$381*Assumes 4" depthCrusher Fines 1,863 SF$10.00$18,630*Path and area east of sweat shed.3.0 InstrumentsRainbow Sambas Outdoor Drums1LS$3,760.20$3,760*Pricing provided by SymphonyTemple Block Tree1LS$3,158.40$3,158*Pricing provided by SymphonyDuo1LS$6,244.00$6,244*Pricing provided by SymphonyBabel Drum (Large)1LS$3,645.60$3,646*Pricing provided by SymphonyDiatonic Symphony Freechimes1LS$6,143.20$6,143*Pricing provided by SymphonyMarimba1LS$5,510.40$5,510*Pricing provided by SymphonyTubular Bells1LS$5,644.80$5,645*Pricing provided by SymphonyTOTAL$74,358 Bozeman Library Music Garden - Schedule of Values based on SD Site Plan$34,107 $14,650 $24,179 $1,422 39 May 19, 2025 Dear Community Grant Program committee, It is my distinct pleasure to enthusiastically recommend the Bozeman Library Music Garden for funding through the Community Grant Program. My name is Cierra Wallace, and I am the Education and Community Engagement Coordinator for the Bozeman Symphony. In this role, I have had the privilege of partnering with the Library to create and deliver our Symphony Storytime program. This popular new program, involving a reader reading a story accompanied by a Bozeman Symphony musician, has served more than 1,800 people since January of 2024 at the Bozeman Library and the HRDC Head Starts. I am now honored to collaborate again with the Library team as they bring the Music Garden to life. The instruments to be installed in the Music Garden are not only beautiful, durable, and offer a variety of warm tones, but they are also thoughtfully designed to be inclusive. They are accessible for wheelchair users and people with limited mobility, some have strong vibrations that can be enjoyed by the Deaf and hard of hearing, and they are designed in such a way as to support neurodivergent players in opportunities for social connection. The instruments are also designed to allow for multiple players and can be played individually or all together. Music-making has a plethora of proven mental, emotional, and physical benefits, including everything from improved cognitive function and stress reduction to lower cortisol levels and increased self-esteem, language development, academic performance, social skills, and coordination. The Music Garden will be a space that fosters creativity, collaboration, and connection with others. Its location near Lindley Park and along the trails will allow for surprise, discovery, joy, and spontaneous music play for community members of all ages, abilities, and income levels. The Music Garden will strengthen the Symphony’s existing partnership with the Library by creating Bozeman’s first public space that provides for free interactive music experiences. For example, the Music Garden could be used for outdoor Symphony Storytime events, for an intergenerational and interactive music project the Symphony is piloting in partnership with Befrienders (a local nonprofit serving the senior population of Gallatin Valley) in their mission to combat isolation and loneliness, as a site for music activities for children who come to the Library for free lunch in the summertime, and more. We are also exploring the possibility of having members of the Symphony compose a song using the Music Garden’s instruments to be performed in celebration of its grand opening. 40 I wholeheartedly support the Bozeman Library Music Garden proposal. More than just a park/trail enhancement, the Music Garden is an innovative musical space that will have great impact on the community, and I am excited by the potential it creates for planned and spontaneous music-making that will engage, unite, and uplift the everyday human experience in our community. Please contact me at 406-585-9774 or by email at cierra@bozemansymphony.org if you have any questions or would like more information. With appreciation and anticipation, Cierra N. Wallace Education and Community Engagement Coordinator Bozeman Symphony Society 41 To whom it may concern, It is with enthusiasm that I write to recommend the Bozeman Public Library's application for a grant to fund the construction of their proposed Music Garden. As a long-time resident of Bozeman and a passionate supporter of the arts and community enrichment, I believe this project holds tremendous potential to provide unique opportunities for engagement and joy in our growing town. The Music Garden o ers a creative and inclusive way for community members of all ages and abilities to interact with music. I imagine children discovering the magic of sound through outdoor instruments, families creating spontaneous melodies together, and seniors nding moments of peace in a though ully designed space. The Bozeman Public Library has consistently demonstrated its commitment to our community by o ering access to information and providing enriching programs for adults and children. The Music Garden is a natural extension of this dedication, promising to be a deligh ul and engaging addition to the library's community o erings. Investing in this project is an investment in the community of Bozeman. The Bozeman Public Library has consistently demonstrated its commitment to providing innovative and enriching programs for our community. Investing in this project is an investment in the community of Bozeman. I understand the remaining funding needed is approximately $30,000, and this grant would be instrumental in bringing this inspiring vision to fruition. I urge the Grant Commi ee to give this application its strongest consideration. The Music Garden at the Bozeman Public Library will be a treasure for our community for years to come, fostering a love for music and creating a harmonious space for all to enjoy. Sincerely, Robyn Erlenbush Broker/Owner of ERA Landmark Real Estate 42 Memorandum REPORT TO:City Commission FROM:Kellen Gamradt, Engineer II Nicholas Ross, Director of Transportation and Engineering SUBJECT:Authorize the City Manager to Sign a Notice of Award and Final Contract Documents, Once Received, to Knife River, for Construction of the McIlhattan Road Bikefill Access Improvements MEETING DATE:July 21, 2026 AGENDA ITEM TYPE:Agreement - Vendor/Contract RECOMMENDATION:Authorize the City Manager to Sign a Notice of Award and Final Contract Documents, Once Received, to Knife River, for Construction of the McIlhattan Road Bikefill Access Improvements STRATEGIC PLAN:2.2 Infrastructure Investments: Strategically invest in infrastructure as a mechanism to encourage economic development. BACKGROUND:McIlhattan Road Bikefill Access improvements have been approved as Project A&C029 in the City's FY27-31 Capital Improvement Plan and FY27-28 Biennium Budget. This project will reconstruct a gravel portion of McIlhattan Road, identified as a Collector route in the city's Functional Classification System, within city limits with safety enhancements and asphalt pavement surfacing to provide safe access to the City's Bikefill project. Construction bids for this project were opened on July 9th with 10 bids being submitted. The low bid was submitted by Knife River in the amount of $985,323.50 for the base bid plus miscellaneous work with the next two lowest bidders within 1%. The Engineer's Estimate for the project is $1,419,586.50. Staff have reviewed the bid and recommend it for award. The Bid Tabulation for the project is attached. UNRESOLVED ISSUES:None ALTERNATIVES:As Suggested by the Commission. FISCAL EFFECTS:Construction costs in the amount of $985,323.50 will be funded through Project A&C029 in the FY27 Arterial and Collector District Budget. A&C029 has been approved for $1,500,000. Attachments: Notice of Award - McIlhattan Rd Bikefill Access 43 Improvements.pdf McIlhattan Rd Bikefill Access Improvements - Award Recommendation Letter.pdf Bid Tab - McIlhattan Rd Bikefill Access Improvements.pdf Report compiled on: July 9, 2026 44 NOTICE OF AWARD Date of Issuance: Owner: City of Bozeman Owner’s Project No.: Engineer: Sanbell Engineer’s Project No.: Project: Bikefill Park Infrastructure: McIlhattan Roadway Improvements Contract Name: Bidder: Knife River Bidder’s Address: 630 Airway Boulevard, Belgrade, MT 59714 You are notified that Owner has accepted your Bid dated July 9, 2026 for the above Contract, and that you are the Successful Bidder and are awarded a Contract for: Bikefill Park Infrastructure: McIlhattan Roadway Improvements The Contract Price of the awarded Contract is $ 985,323.50. Contract Price is subject to adjustment based on the provisions of the Contract, including but not limited to those governing changes, Unit Price Work, and Work performed on a cost-plus-fee basis, as applicable. 3 unexecuted counterparts of the Agreement accompany this Notice of Award, and one copy of the Contract Documents accompanies this Notice of Award, or has been transmitted or made available to Bidder electronically. ☐ Drawings will be delivered separately from the other Contract Documents. You must comply with the following conditions precedent within 15 days of the date of receipt of this Notice of Award: 1. Deliver to Owner 3 counterparts of the Agreement, signed by Bidder (as Contractor). 2. Deliver with the signed Agreement(s) the Contract security (such as required performance and payment bonds) and insurance documentation, as specified in the Instructions to Bidders and in the General Conditions, Articles 2 and 6. 3. Other conditions precedent (if any): None Failure to comply with these conditions within the time specified will entitle Owner to consider you in default, annul this Notice of Award, and declare your Bid security forfeited. Within 10 days after you comply with the above conditions, Owner will return to you one fully signed counterpart of the Agreement, together with any additional copies of the Contract Documents as indicated in Paragraph 2.02 of the General Conditions. Owner: City of Bozeman By (signature): Name (printed): Title: Copy: Engineer EJCDC® C-510, Notice of Award. Copyright© 2018 National Society of Professional Engineers, American Council of Engineering Companies, and American Society of Civil Engineers. All rights reserved. Page 1 of 1 45 July 10, 2026 Mr. Kellen Gamradt City of Bozeman 20 E Olive Street #202 Bozeman, MT 59715 SUBJECT: BID AWARD RECOMMENDATION Bikefill Bike Park Infrastructure McIlhattan Roadway Improvements, Sanbell Project No. 22147.01 City Infrastructure Project No. ENGINF-18303 Dear Kellen: On July 9, 2026, competitive bids for the above referenced project were accepted and publicly opened. Ten bids were received from Knife River - Belgrade, Central Plumbing Heating and Excavation, CK May Excavating, Inc., Broadwater Excavation, Williams Civil Construction, DC Excavation, LLC, Roller Construction Inc., Schreder & Brandt MFG, Inc, Equitable, and Ridgeline Excavation, Inc. The following page includes a summary table of the verified bids relative to the engineer’s opinion of probable cost. No discrepancies were noted in Knife River – Belgrade’s bid. Based on this review, Sanbell recommends that the City of Bozeman move forward with a contract award to Knife River - Belgrade in the amount of $985,323.50. A copy of the bid tabulation is attached for reference. Please call if you have any questions or would like further information. Sincerely, Bobby Egeberg, PE Associate | Bozeman Land Development Manager enclosures: Bid Tabulation 46 Owner: Bozeman MT, City of Solicitor: Bozeman MT, City of 07/09/2026 03:00 PM MDT Engineer Estimate Knife River - Belgrade Section Title Line Item Item Code Item Description UofM Quantity Unit Price Extension Unit Price Extension Schedule I: Utility Improvements-Base Bid $187,250.00 $203,785.50 100 100 Mobilization and Insurance LS1 $20,000.00 $20,000.00 $16,100.00 $16,100.00 101 101 Dewatering LS1 $15,000.00 $15,000.00 $5,500.00 $5,500.00 102 102 Storm Drain Curb Inlet EA2 $5,000.00 $10,000.00 $4,500.00 $9,000.00 103 103 ADS Storm Chamber and Gravel CF 2250 $16.00 $36,000.00 $24.25 $54,562.50 104 104 Storm Manhole/ Inlet EA7 $5,500.00 $38,500.00 $5,300.00 $37,100.00 105 105 12" Storm Drain w/ FES LF 200 $80.00 $16,000.00 $90.00 $18,000.00 106 106 15" Storm Drain w/ FES LF 46 $100.00 $4,600.00 $98.00 $4,508.00 107 107 72" Equiv. RCP Arch Culvert w/ FES LF 77 $450.00 $34,650.00 $670.00 $51,590.00 108 108 Riprap CY 25 $200.00 $5,000.00 $165.00 $4,125.00 109 109 Construction Staking LS1 $7,500.00 $7,500.00 $3,300.00 $3,300.00 Schedule II: Surface Improvements-Base Bid $1,192,336.50 $741,538.00 200 200 Mobilization and Insurance LS1 $125,000.00 $125,000.00 $66,850.00 $66,850.00 201 201 Traffic Control LS1 $12,000.00 $12,000.00 $5,000.00 $5,000.00 202 202 SWPPP Permitting, Storm Water Management and Erosion Control LS1 $20,000.00 $20,000.00 $19,250.00 $19,250.00 203 203 Strip, Stockpile & Replace or Dispose of Topsoil (6")CY 1350 $16.00 $21,600.00 $15.75 $21,262.50 204 204 Stockpile or Dispose of Cut Excavation CY 19100 $18.00 $343,800.00 $8.00 $152,800.00 205 205 1 1/2-inch Base Course Gravel - Street (4-inch Thick)CY 778 $48.00 $37,344.00 $46.00 $35,788.00 206 206 6" Minus Crushed Subbase Gravel (12-inch Thick)CY 2184 $40.00 $87,360.00 $33.00 $72,072.00 207 207 Asphalt Surface Course - Street (4-inch Section)SY 5890 $38.00 $223,820.00 $23.50 $138,415.00 208 208 Mirafi 380i Separation Fabric SY 5890 $5.00 $29,450.00 $5.00 $29,450.00 209 209 Asphalt Curb LF 965 $19.50 $18,817.50 $10.50 $10,132.50 210 210 MGS Guardrail LF 1680 $39.00 $65,520.00 $43.00 $72,240.00 211 211 MGS Long Span Guardrail LF 150 $45.00 $6,750.00 $45.00 $6,750.00 212 212 Guardrail Terminal End Section EA4 $4,500.00 $18,000.00 $4,000.00 $16,000.00 213 213 Sawcut and Asphalt Removal SF 110 $7.00 $770.00 $5.00 $550.00 214 214 Signage EA2 $1,000.00 $2,000.00 $1,350.00 $2,700.00 215 215 Epoxy Pavement Markings (White)GAL 22 $500.00 $11,000.00 $160.00 $3,520.00 216 216 Epoxy Pavement Markings (Yellow)GAL 18 $500.00 $9,000.00 $160.00 $2,880.00 217 217 Fence Removal and Storage LF 2080 $15.00 $31,200.00 $8.50 $17,680.00 218 218 Sloughing Repair LS1 $15,000.00 $15,000.00 $4,500.00 $4,500.00 219 219 S150 Erosion Control Blankets SY 7785 $3.00 $23,355.00 $3.80 $29,583.00 220 220 Hydroseeding SF 70050 $1.00 $70,050.00 $0.30 $21,015.00 221 221 Bollard Removal/Reinstallation and DEQ Well Casing Removal/Reinstall Secure Cap LS1 $13,000.00 $13,000.00 $5,100.00 $5,100.00 222 222 Construction Staking LS1 $7,500.00 $7,500.00 $8,000.00 $8,000.00 Schedule II: Surface Improvements-Fixed $40,000.00 $40,000.00 224 224 Miscellaneous Work LS1 $40,000.00 $40,000.00 $40,000.00 $40,000.00 Base Bid Total:$1,419,586.50 $985,323.50 47 Owner: Bozeman MT, City of Solicitor: Bozeman MT, City of 07/09/2026 03:00 PM MDT Section Title Line Item Item Code Item Description UofM Quantity Schedule I: Utility Improvements-Base Bid 100 100 Mobilization and Insurance LS1 101 101 Dewatering LS1 102 102 Storm Drain Curb Inlet EA2 103 103 ADS Storm Chamber and Gravel CF 2250 104 104 Storm Manhole/ Inlet EA7 105 105 12" Storm Drain w/ FES LF 200 106 106 15" Storm Drain w/ FES LF 46 107 107 72" Equiv. RCP Arch Culvert w/ FES LF 77 108 108 Riprap CY 25 109 109 Construction Staking LS1 Schedule II: Surface Improvements-Base Bid 200 200 Mobilization and Insurance LS1 201 201 Traffic Control LS1 202 202 SWPPP Permitting, Storm Water Management and Erosion Control LS1 203 203 Strip, Stockpile & Replace or Dispose of Topsoil (6")CY 1350 204 204 Stockpile or Dispose of Cut Excavation CY 19100 205 205 1 1/2-inch Base Course Gravel - Street (4-inch Thick)CY 778 206 206 6" Minus Crushed Subbase Gravel (12-inch Thick)CY 2184 207 207 Asphalt Surface Course - Street (4-inch Section)SY 5890 208 208 Mirafi 380i Separation Fabric SY 5890 209 209 Asphalt Curb LF 965 210 210 MGS Guardrail LF 1680 211 211 MGS Long Span Guardrail LF 150 212 212 Guardrail Terminal End Section EA4 213 213 Sawcut and Asphalt Removal SF 110 214 214 Signage EA2 215 215 Epoxy Pavement Markings (White)GAL 22 216 216 Epoxy Pavement Markings (Yellow)GAL 18 217 217 Fence Removal and Storage LF 2080 218 218 Sloughing Repair LS1 219 219 S150 Erosion Control Blankets SY 7785 220 220 Hydroseeding SF 70050 221 221 Bollard Removal/Reinstallation and DEQ Well Casing Removal/Reinstall Secure Cap LS1 222 222 Construction Staking LS1 Schedule II: Surface Improvements-Fixed 224 224 Miscellaneous Work LS1 Base Bid Total: Central Plumbing Heating and Excavation CK May Excavating, Inc. Unit Price Extension Unit Price Extension $173,017.00 $195,275.00 $10,400.00 $10,400.00 $4,000.00 $4,000.00 $4,400.00 $4,400.00 $2,500.00 $2,500.00 $3,878.00 $7,756.00 $4,500.00 $9,000.00 $19.50 $43,875.00 $23.00 $51,750.00 $4,135.00 $28,945.00 $5,900.00 $41,300.00 $54.00 $10,800.00 $85.00 $17,000.00 $66.00 $3,036.00 $100.00 $4,600.00 $690.00 $53,130.00 $750.00 $57,750.00 $287.00 $7,175.00 $175.00 $4,375.00 $3,500.00 $3,500.00 $3,000.00 $3,000.00 $775,356.00 $762,715.00 $57,145.00 $57,145.00 $28,400.00 $28,400.00 $4,040.00 $4,040.00 $8,500.00 $8,500.00 $16,500.00 $16,500.00 $6,560.00 $6,560.00 $7.50 $10,125.00 $15.00 $20,250.00 $4.90 $93,590.00 $7.00 $133,700.00 $76.00 $59,128.00 $70.00 $54,460.00 $45.00 $98,280.00 $45.00 $98,280.00 $27.00 $159,030.00 $31.00 $182,590.00 $5.00 $29,450.00 $4.00 $23,560.00 $50.00 $48,250.00 $25.00 $24,125.00 $46.75 $78,540.00 $45.00 $75,600.00 $49.50 $7,425.00 $45.00 $6,750.00 $4,386.00 $17,544.00 $4,000.00 $16,000.00 $6.00 $660.00 $2.50 $275.00 $1,400.00 $2,800.00 $1,000.00 $2,000.00 $274.00 $6,028.00 $175.00 $3,850.00 $274.00 $4,932.00 $175.00 $3,150.00 $8.50 $17,680.00 $10.00 $20,800.00 $7,500.00 $7,500.00 $5,500.00 $5,500.00 $2.80 $21,798.00 $3.00 $23,355.00 $0.22 $15,411.00 $0.20 $14,010.00 $8,000.00 $8,000.00 $3,500.00 $3,500.00 $11,500.00 $11,500.00 $7,500.00 $7,500.00 $40,000.00 $40,000.00 $40,000.00 $40,000.00 $40,000.00 $40,000.00 $988,373.00 $997,990.00 48 Owner: Bozeman MT, City of Solicitor: Bozeman MT, City of 07/09/2026 03:00 PM MDT Section Title Line Item Item Code Item Description UofM Quantity Schedule I: Utility Improvements-Base Bid 100 100 Mobilization and Insurance LS1 101 101 Dewatering LS1 102 102 Storm Drain Curb Inlet EA2 103 103 ADS Storm Chamber and Gravel CF 2250 104 104 Storm Manhole/ Inlet EA7 105 105 12" Storm Drain w/ FES LF 200 106 106 15" Storm Drain w/ FES LF 46 107 107 72" Equiv. RCP Arch Culvert w/ FES LF 77 108 108 Riprap CY 25 109 109 Construction Staking LS1 Schedule II: Surface Improvements-Base Bid 200 200 Mobilization and Insurance LS1 201 201 Traffic Control LS1 202 202 SWPPP Permitting, Storm Water Management and Erosion Control LS1 203 203 Strip, Stockpile & Replace or Dispose of Topsoil (6")CY 1350 204 204 Stockpile or Dispose of Cut Excavation CY 19100 205 205 1 1/2-inch Base Course Gravel - Street (4-inch Thick)CY 778 206 206 6" Minus Crushed Subbase Gravel (12-inch Thick)CY 2184 207 207 Asphalt Surface Course - Street (4-inch Section)SY 5890 208 208 Mirafi 380i Separation Fabric SY 5890 209 209 Asphalt Curb LF 965 210 210 MGS Guardrail LF 1680 211 211 MGS Long Span Guardrail LF 150 212 212 Guardrail Terminal End Section EA4 213 213 Sawcut and Asphalt Removal SF 110 214 214 Signage EA2 215 215 Epoxy Pavement Markings (White)GAL 22 216 216 Epoxy Pavement Markings (Yellow)GAL 18 217 217 Fence Removal and Storage LF 2080 218 218 Sloughing Repair LS1 219 219 S150 Erosion Control Blankets SY 7785 220 220 Hydroseeding SF 70050 221 221 Bollard Removal/Reinstallation and DEQ Well Casing Removal/Reinstall Secure Cap LS1 222 222 Construction Staking LS1 Schedule II: Surface Improvements-Fixed 224 224 Miscellaneous Work LS1 Base Bid Total: Broadwater Excavation Williams Civil Construction Unit Price Extension Unit Price Extension $218,592.50 $302,800.00 $45,000.00 $45,000.00 $71,000.00 $71,000.00 $12,000.00 $12,000.00 $6,800.00 $6,800.00 $4,500.00 $9,000.00 $5,500.00 $11,000.00 $17.15 $38,587.50 $25.00 $56,250.00 $5,500.00 $38,500.00 $5,600.00 $39,200.00 $62.00 $12,400.00 $173.00 $34,600.00 $80.00 $3,680.00 $175.00 $8,050.00 $650.00 $50,050.00 $800.00 $61,600.00 $135.00 $3,375.00 $320.00 $8,000.00 $6,000.00 $6,000.00 $6,300.00 $6,300.00 $871,083.55 $828,539.40 $30,000.00 $30,000.00 $73,500.00 $73,500.00 $15,000.00 $15,000.00 $3,300.00 $3,300.00 $12,000.00 $12,000.00 $7,000.00 $7,000.00 $9.00 $12,150.00 $14.50 $19,575.00 $14.75 $281,725.00 $6.00 $114,600.00 $31.75 $24,701.50 $58.00 $45,124.00 $28.85 $63,008.40 $46.00 $100,464.00 $35.46 $208,859.40 $36.50 $214,985.00 $4.75 $27,977.50 $5.00 $29,450.00 $14.00 $13,510.00 $19.11 $18,441.15 $40.50 $68,040.00 $47.00 $78,960.00 $42.85 $6,427.50 $50.00 $7,500.00 $3,800.00 $15,200.00 $4,400.00 $17,600.00 $6.00 $660.00 $8.50 $935.00 $1,250.00 $2,500.00 $1,325.00 $2,650.00 $180.00 $3,960.00 $175.00 $3,850.00 $180.00 $3,240.00 $175.00 $3,150.00 $5.00 $10,400.00 $9.25 $19,240.00 $25,000.00 $25,000.00 $12,800.00 $12,800.00 $2.25 $17,516.25 $4.15 $32,307.75 $0.16 $11,208.00 $0.15 $10,507.50 $8,000.00 $8,000.00 $6,300.00 $6,300.00 $10,000.00 $10,000.00 $6,300.00 $6,300.00 $40,000.00 $40,000.00 $40,000.00 $40,000.00 $40,000.00 $40,000.00 $1,129,676.05 $1,171,339.40 49 Owner: Bozeman MT, City of Solicitor: Bozeman MT, City of 07/09/2026 03:00 PM MDT Section Title Line Item Item Code Item Description UofM Quantity Schedule I: Utility Improvements-Base Bid 100 100 Mobilization and Insurance LS1 101 101 Dewatering LS1 102 102 Storm Drain Curb Inlet EA2 103 103 ADS Storm Chamber and Gravel CF 2250 104 104 Storm Manhole/ Inlet EA7 105 105 12" Storm Drain w/ FES LF 200 106 106 15" Storm Drain w/ FES LF 46 107 107 72" Equiv. RCP Arch Culvert w/ FES LF 77 108 108 Riprap CY 25 109 109 Construction Staking LS1 Schedule II: Surface Improvements-Base Bid 200 200 Mobilization and Insurance LS1 201 201 Traffic Control LS1 202 202 SWPPP Permitting, Storm Water Management and Erosion Control LS1 203 203 Strip, Stockpile & Replace or Dispose of Topsoil (6")CY 1350 204 204 Stockpile or Dispose of Cut Excavation CY 19100 205 205 1 1/2-inch Base Course Gravel - Street (4-inch Thick)CY 778 206 206 6" Minus Crushed Subbase Gravel (12-inch Thick)CY 2184 207 207 Asphalt Surface Course - Street (4-inch Section)SY 5890 208 208 Mirafi 380i Separation Fabric SY 5890 209 209 Asphalt Curb LF 965 210 210 MGS Guardrail LF 1680 211 211 MGS Long Span Guardrail LF 150 212 212 Guardrail Terminal End Section EA4 213 213 Sawcut and Asphalt Removal SF 110 214 214 Signage EA2 215 215 Epoxy Pavement Markings (White)GAL 22 216 216 Epoxy Pavement Markings (Yellow)GAL 18 217 217 Fence Removal and Storage LF 2080 218 218 Sloughing Repair LS1 219 219 S150 Erosion Control Blankets SY 7785 220 220 Hydroseeding SF 70050 221 221 Bollard Removal/Reinstallation and DEQ Well Casing Removal/Reinstall Secure Cap LS1 222 222 Construction Staking LS1 Schedule II: Surface Improvements-Fixed 224 224 Miscellaneous Work LS1 Base Bid Total: DC Excavation, LLC Roller Construction Inc. Unit Price Extension Unit Price Extension $249,404.90 $277,347.25 $36,275.12 $36,275.12 $25,727.00 $25,727.00 $10,120.28 $10,120.28 $60,000.00 $60,000.00 $4,908.67 $9,817.34 $5,250.00 $10,500.00 $25.28 $56,880.00 $26.60 $59,850.00 $6,025.83 $42,180.81 $5,830.00 $40,810.00 $90.95 $18,190.00 $52.00 $10,400.00 $98.55 $4,533.30 $67.00 $3,082.00 $796.45 $61,326.65 $717.25 $55,228.25 $210.64 $5,266.00 $170.00 $4,250.00 $4,815.40 $4,815.40 $7,500.00 $7,500.00 $935,495.11 $1,040,553.65 $50,658.75 $50,658.75 $75,000.00 $75,000.00 $6,019.25 $6,019.25 $25,000.00 $25,000.00 $20,492.28 $20,492.28 $40,000.00 $40,000.00 $34.61 $46,723.50 $8.00 $10,800.00 $7.99 $152,609.00 $10.00 $191,000.00 $60.56 $47,115.68 $72.00 $56,016.00 $43.84 $95,746.56 $68.00 $148,512.00 $37.92 $223,348.80 $36.22 $213,335.80 $6.19 $36,459.10 $5.50 $32,395.00 $19.86 $19,164.90 $18.97 $18,306.05 $48.76 $81,916.80 $50.62 $85,041.60 $51.59 $7,738.50 $53.56 $8,034.00 $4,574.63 $18,298.52 $4,750.00 $19,000.00 $7.59 $834.90 $15.50 $1,705.00 $1,504.82 $3,009.64 $1,563.00 $3,126.00 $180.58 $3,972.76 $172.50 $3,795.00 $180.58 $3,250.44 $172.50 $3,105.00 $18.19 $37,835.20 $10.00 $20,800.00 $6,918.96 $6,918.96 $15,000.00 $15,000.00 $5.78 $44,997.30 $5.52 $42,973.20 $0.29 $20,314.50 $0.18 $12,609.00 $3,254.37 $3,254.37 $7,500.00 $7,500.00 $4,815.40 $4,815.40 $7,500.00 $7,500.00 $40,000.00 $40,000.00 $40,000.00 $40,000.00 $40,000.00 $40,000.00 $1,224,900.01 $1,357,900.90 50 Owner: Bozeman MT, City of Solicitor: Bozeman MT, City of 07/09/2026 03:00 PM MDT Section Title Line Item Item Code Item Description UofM Quantity Schedule I: Utility Improvements-Base Bid 100 100 Mobilization and Insurance LS1 101 101 Dewatering LS1 102 102 Storm Drain Curb Inlet EA2 103 103 ADS Storm Chamber and Gravel CF 2250 104 104 Storm Manhole/ Inlet EA7 105 105 12" Storm Drain w/ FES LF 200 106 106 15" Storm Drain w/ FES LF 46 107 107 72" Equiv. RCP Arch Culvert w/ FES LF 77 108 108 Riprap CY 25 109 109 Construction Staking LS1 Schedule II: Surface Improvements-Base Bid 200 200 Mobilization and Insurance LS1 201 201 Traffic Control LS1 202 202 SWPPP Permitting, Storm Water Management and Erosion Control LS1 203 203 Strip, Stockpile & Replace or Dispose of Topsoil (6")CY 1350 204 204 Stockpile or Dispose of Cut Excavation CY 19100 205 205 1 1/2-inch Base Course Gravel - Street (4-inch Thick)CY 778 206 206 6" Minus Crushed Subbase Gravel (12-inch Thick)CY 2184 207 207 Asphalt Surface Course - Street (4-inch Section)SY 5890 208 208 Mirafi 380i Separation Fabric SY 5890 209 209 Asphalt Curb LF 965 210 210 MGS Guardrail LF 1680 211 211 MGS Long Span Guardrail LF 150 212 212 Guardrail Terminal End Section EA4 213 213 Sawcut and Asphalt Removal SF 110 214 214 Signage EA2 215 215 Epoxy Pavement Markings (White)GAL 22 216 216 Epoxy Pavement Markings (Yellow)GAL 18 217 217 Fence Removal and Storage LF 2080 218 218 Sloughing Repair LS1 219 219 S150 Erosion Control Blankets SY 7785 220 220 Hydroseeding SF 70050 221 221 Bollard Removal/Reinstallation and DEQ Well Casing Removal/Reinstall Secure Cap LS1 222 222 Construction Staking LS1 Schedule II: Surface Improvements-Fixed 224 224 Miscellaneous Work LS1 Base Bid Total: Schreder & Brandt MFG, Inc Equitable Unit Price Extension Unit Price Extension $360,995.42 $215,730.00 $90,000.00 $90,000.00 $20,000.00 $20,000.00 $3,750.00 $3,750.00 $15,000.00 $15,000.00 $3,545.00 $7,090.00 $8,000.00 $16,000.00 $27.81 $62,572.50 $18.00 $40,500.00 $9,054.91 $63,384.37 $6,000.00 $42,000.00 $139.50 $27,900.00 $65.00 $13,000.00 $121.30 $5,579.80 $80.00 $3,680.00 $1,012.50 $77,962.50 $650.00 $50,050.00 $660.25 $16,506.25 $220.00 $5,500.00 $6,250.00 $6,250.00 $10,000.00 $10,000.00 $1,017,816.55 $1,234,120.25 $56,250.00 $56,250.00 $72,311.25 $72,311.25 $4,375.00 $4,375.00 $20,000.00 $20,000.00 $46,447.81 $46,447.81 $35,000.00 $35,000.00 $27.56 $37,206.00 $15.00 $20,250.00 $7.99 $152,609.00 $20.67 $394,797.00 $70.54 $54,880.12 $62.00 $48,236.00 $55.06 $120,251.04 $48.00 $104,832.00 $28.89 $170,162.10 $32.00 $188,480.00 $7.88 $46,413.20 $4.00 $23,560.00 $68.91 $66,498.15 $21.35 $20,602.75 $50.63 $85,058.40 $80.00 $134,400.00 $53.56 $8,034.00 $115.00 $17,250.00 $4,750.00 $19,000.00 $8,500.00 $34,000.00 $28.69 $3,155.90 $9.00 $990.00 $1,562.50 $3,125.00 $1,250.00 $2,500.00 $479.25 $10,543.50 $250.00 $5,500.00 $545.71 $9,822.78 $250.00 $4,500.00 $18.89 $39,291.20 $12.00 $24,960.00 $6,937.50 $6,937.50 $10,000.00 $10,000.00 $6.31 $49,123.35 $3.55 $27,636.75 $0.15 $10,507.50 $0.29 $20,314.50 $11,875.00 $11,875.00 $12,000.00 $12,000.00 $6,250.00 $6,250.00 $12,000.00 $12,000.00 $40,000.00 $40,000.00 $40,000.00 $40,000.00 $40,000.00 $40,000.00 $1,418,811.97 $1,489,850.25 51 Owner: Bozeman MT, City of Solicitor: Bozeman MT, City of 07/09/2026 03:00 PM MDT Section Title Line Item Item Code Item Description UofM Quantity Schedule I: Utility Improvements-Base Bid 100 100 Mobilization and Insurance LS1 101 101 Dewatering LS1 102 102 Storm Drain Curb Inlet EA2 103 103 ADS Storm Chamber and Gravel CF 2250 104 104 Storm Manhole/ Inlet EA7 105 105 12" Storm Drain w/ FES LF 200 106 106 15" Storm Drain w/ FES LF 46 107 107 72" Equiv. RCP Arch Culvert w/ FES LF 77 108 108 Riprap CY 25 109 109 Construction Staking LS1 Schedule II: Surface Improvements-Base Bid 200 200 Mobilization and Insurance LS1 201 201 Traffic Control LS1 202 202 SWPPP Permitting, Storm Water Management and Erosion Control LS1 203 203 Strip, Stockpile & Replace or Dispose of Topsoil (6")CY 1350 204 204 Stockpile or Dispose of Cut Excavation CY 19100 205 205 1 1/2-inch Base Course Gravel - Street (4-inch Thick)CY 778 206 206 6" Minus Crushed Subbase Gravel (12-inch Thick)CY 2184 207 207 Asphalt Surface Course - Street (4-inch Section)SY 5890 208 208 Mirafi 380i Separation Fabric SY 5890 209 209 Asphalt Curb LF 965 210 210 MGS Guardrail LF 1680 211 211 MGS Long Span Guardrail LF 150 212 212 Guardrail Terminal End Section EA4 213 213 Sawcut and Asphalt Removal SF 110 214 214 Signage EA2 215 215 Epoxy Pavement Markings (White)GAL 22 216 216 Epoxy Pavement Markings (Yellow)GAL 18 217 217 Fence Removal and Storage LF 2080 218 218 Sloughing Repair LS1 219 219 S150 Erosion Control Blankets SY 7785 220 220 Hydroseeding SF 70050 221 221 Bollard Removal/Reinstallation and DEQ Well Casing Removal/Reinstall Secure Cap LS1 222 222 Construction Staking LS1 Schedule II: Surface Improvements-Fixed 224 224 Miscellaneous Work LS1 Base Bid Total: Ridgeline Excavation, Inc Unit Price Extension $256,980.00 $20,000.00 $20,000.00 $12,500.00 $12,500.00 $7,500.00 $15,000.00 $20.00 $45,000.00 $7,500.00 $52,500.00 $100.00 $20,000.00 $105.00 $4,830.00 $950.00 $73,150.00 $400.00 $10,000.00 $4,000.00 $4,000.00 $1,238,377.50 $130,000.00 $130,000.00 $6,500.00 $6,500.00 $7,500.00 $7,500.00 $50.00 $67,500.00 $20.00 $382,000.00 $70.00 $54,460.00 $45.00 $98,280.00 $42.50 $250,325.00 $6.00 $35,340.00 $25.00 $24,125.00 $50.00 $84,000.00 $55.00 $8,250.00 $4,500.00 $18,000.00 $3.00 $330.00 $1,500.00 $3,000.00 $200.00 $4,400.00 $200.00 $3,600.00 $10.00 $20,800.00 $8,500.00 $8,500.00 $2.50 $19,462.50 $0.10 $7,005.00 $3,000.00 $3,000.00 $2,000.00 $2,000.00 $40,000.00 $40,000.00 $40,000.00 $1,535,357.50 52 Name:Contractor #:Affirmation Form:Bid Bond:Base Bid Total: Knife River 10089 x x $ 985,323.50 Central Excavation 4443 x x $ 988,373.00 CK May Excavating 35949 x x 997,990.00$ Broadwater Excavation 269246 x x 1,129,676.05$ Williams Civil Construction 158949 x x 1,171,339.40$ DC Excavation 224559 x x 1,224,900.01$ Roller Excavation 234243 x x 1,357,900.90$ Schreder & Brandt MFG 285154 x x 1,418,811.97$ Equitable 257749 x x 1,489,850.25$ Ridgeline Excavation 261451 x x 1,535,357.50$ Mike Maas Kellen Gamradt City Clerk Engineer II Bid Check:Delivered to Finance:Accepted By:Date: Bid Tab - McIlhattan Roadway Improvements These bids were opened and read before the undersigned at 3:00 pm on Thursday, July 9, 2026 53 Memorandum REPORT TO:City Commission FROM:Waldo SUBJECT:Ratify the City Manager's signature on the Gallatin County 2026 Fire Operating Plan MEETING DATE:July 21, 2026 AGENDA ITEM TYPE:Plan/Report/Study RECOMMENDATION:Ratify the City Manager's signature on the Gallatin County 2026 Fire Operating Plan STRATEGIC PLAN:3.1 Public Safety: Support high quality public safety programs, emergency preparedness, facilities, and leadership. BACKGROUND:The Gallatin County Fire Operating Plan has been created to consolidate several collaborative agreements into one document among Gallatin County, Madison County and the fire protection agencies operating within Gallatin County Emergency Management’s service area. The intent of this document is to provide clear understanding of process, roles, and responsibilities in regard to Gallatin County Emergency Management’s responsibilities for Gallatin County and the Big Sky portion of Madison County and the relationship with fire protection agencies. As a signatory to the 2026 version of the Gallatin County Fire Operating Plan, the City of Bozeman is certifying that it agrees to the conditions and responsibilities outlined in this plan. Participating Agencies that have assigned resources, are mobilizing through the Gallatin County Supplemental Fire Project Agreement, or are maintaining personnel records in the Montana Incident Qualification System are agreeing to the respective responsibilities for the Participating Agencies and Gallatin County as outlined in this plan. UNRESOLVED ISSUES:None at this time ALTERNATIVES:As suggested by Commission FISCAL EFFECTS:None Attachments: 2026 Fire Operating Plan.pdf 54 Report compiled on: June 30, 2026 55 FIREOPERATINGPLAN 2026 COVERING BELGRADE, BIG SKY, BOZEMAN, MANHATTAN, THREE FORKS, WEST YELLOWSTONE AND UNINCORPORATED GALLATIN COUNTY GALLATIN COUNTY EMERGENCY MANAGEMENT 56 CONTENTS 1 Introduction ........................................................................................................................................... 4 1.1 County Wildfire Program Overview ........................................................................................... 4 1.1.1 Wildland Fire Protection Philiosophy ..................................................................................... 5 1.2 Fire Service Mutual Aid Agreement Overview ........................................................................... 5 1.3 Response to Imminent Life Threat Medical Emergencies........................................................... 6 1.3.1 Imminent Life Threat Automatic Aid Areas ........................................................................... 7 1.4 Gallatin County Emergency Management Service Area ............................................................. 8 2 Definitions ............................................................................................................................................. 9 3 Land Classifications ............................................................................................................................ 12 3.1 Fire Protection Agency .............................................................................................................. 12 3.2 Classified Forest Lands ............................................................................................................. 12 3.3 Federal Lands ............................................................................................................................ 13 3.4 Unprotected Lands ..................................................................................................................... 13 4 Gallatin County Wildland Program .................................................................................................... 14 4.1 County Supported Wildland Apparatus ..................................................................................... 14 4.1.1 County Owned Apparatus ..................................................................................................... 14 4.1.2 Co-op Engines ....................................................................................................................... 15 4.1.3 DNRC Hybrid Apparatus ...................................................................................................... 17 4.2 County Fire Warden .................................................................................................................. 18 4.2.1 Deputy Fire Wardens ............................................................................................................ 18 4.3 Response to Gallatin County Protection .................................................................................... 19 4.3.1 Deputy Fire Wardens ............................................................................................................ 19 4.3.2 Incident Accountability ......................................................................................................... 19 4.3.3 Incident Expenses in Unprotected ......................................................................................... 19 4.3.4 County Wildfire Response Plan Areas .................................................................................. 20 4.4 Specialized Resources ............................................................................................................... 20 4.4.1 Saddle Peak Fuels Module .................................................................................................... 20 4.4.2 Big Sky Fire Fuels Crew ....................................................................................................... 21 4.4.3 Radio Kits.............................................................................................................................. 21 4.4.4 Command Post Trailer .......................................................................................................... 21 4.4.5 Cache Trailer ......................................................................................................................... 21 57 2026 Fire Operating Plan Page 3 of 39 4.4.6 Portable Repeaters ................................................................................................................. 21 4.5 Non-Suppression Fire Activities ............................................................................................... 21 4.5.1 Montana DNRC Supplemental Fire Project Agreement ....................................................... 21 4.5.2 Gallatin County Supplemental Fire Project Agreement ........................................................ 22 4.6 Wildland Fire Credentialling ..................................................................................................... 22 4.6.1 Training Courses ................................................................................................................... 22 4.6.2 Qualifications ........................................................................................................................ 23 5 Gallatin County Fire Service Mutual Aid Agreement ........................................................................ 25 6 Imminent Life Threat Automatic Mutual Aid Agreement .................................................................. 29 7 Requests for Assistance ...................................................................................................................... 31 7.1 County Assist Request ............................................................................................................... 31 7.2 Mutual Aid Requests ................................................................................................................. 31 7.3 Received Requests to Provide Resources Out of County .......................................................... 32 7.3.1 Received Neighboring County Requests to Gallatin County ................................................ 32 7.3.2 Received Critical Mission Task Force Requests ................................................................... 32 7.3.3 Received Standard Task Force Requests .............................................................................. 33 7.3.4 Received Emergency Management Assistance Compact Request ........................................ 33 7.4 Requests for Assistance to Gallatin County .............................................................................. 34 7.4.1 Requests to Outside Agencies ............................................................................................... 34 8 Fire Control Ordinance ....................................................................................................................... 35 8.1 Burn Bans .................................................................................................................................. 35 8.1.1 Evaluation Criteria ................................................................................................................ 35 8.1.2 Burn Ban Restrictions ........................................................................................................... 36 8.2 Training Funds ........................................................................................................................... 36 9 Firefighter Insurance ........................................................................................................................... 37 10 Agreement of Participation ............................................................................................................ 39 58 2026 Fire Operating Plan Page 4 of 39 1 INTRODUCTION The Fire Operating Plan has been created to consolidate several collaborative agreements into one document among Gallatin County, Madison County and the fire protection agencies operating within Gallatin County Emergency Management’s service area. The programmatic areas covered by this document consist of: Wildfire Response Activities Wildfire Preparedness and Training activities Service area mutual aid agreement Response agreement for life threatening medical emergencies outside of municipal, district and service area fire protection agencies. 1.1 COUNTY WILDFIRE PROGRAM OVERVIEW The intent of this document is to provide clear understanding of process, roles, and responsibilities in regard to Gallatin County Emergency Management’s responsibilities for Gallatin County and the Big Sky portion of Madison County and the relationship with fire protection agencies. Gallatin County Emergency Management Statutory and Agreement Based Taskings: Title 7, Chapter 33, Part 22, Montana Code Annotated (Rural Fire Protection Code or RFPC) Montana Department of Natural Resources and Conservation’s Cooperative Fire Control & Cooperative Equipment Agreements within Gallatin County. Gallatin County Supplemental Fire Project Agreement Gallatin County Fire Control Ordinance Big Sky Interlocal Agreement with Madison County Gallatin County Emergency Management provides the following functions in support of the previous taskings: Manage and coordinate wildfire suppression in unprotected portions of our service area (outside of organized fire protection agencies and federal land management agencies). Coordinate wildfire suppression activities among fire protection agencies in our service area, Montana DNRC, federal agencies and adjacent jurisdictions. Maintain county’s participation in the DNRC Co-op Program. Coordinate and support wildfire training within the service area in support of the DNRC Co-op Agreement. Provide representation for the Gallatin & Madison County Commissions on wildfire related issues. Coordinate placement and support of County Apparatus and Co-op Engines. Manage the Gallatin County Burn Permit System and established controlled burning season. Coordinate activity restrictions due to high fire hazard. 59 2026 Fire Operating Plan Page 5 of 39 Administer the Gallatin County Rural Fire Program and Fire Control Fund Budgets. Provide umbrella access for local government fire agencies participating in prescribed fire activities through Gallatin County Emergency Management’s Supplemental Fire Project Agreement. Management of wildland fire training qualifications for Gallatin County based local government resources. Provide supplemental catastrophic injury insurance for firefighters within Gallatin County. 1.1.1 WILDLAND FIRE PROTECTION PHILIOSOPHY The wildfire program is based on the philosophy that it is more effective for Gallatin County Emergency Management to work cooperatively with local fire protection agencies to suppress wildfire compared to the County maintaining their own firefighters. To accomplish this, participating local fire agencies contribute in the following ways: Local Fire Protection Agencies provide personnel for firefighting as a mutual aid resource. These personnel respond to incidents in the following configurations: Staffing a Gallatin County Wildland Engine Staffing a DNRC Co-Op Wildland Engine assigned to Gallatin County. Staffing a fire apparatus owned by their agency. In exchange for this support, Gallatin County contributes the following: Maintains both County owned and State owned Co-Op Engines. Apparatus assigned to participating agencies can be used for their own incidents. Provides cached resources and equipment for response to extended incidents. Develops and maintains County Deputy Fire Wardens with expertise in wildland firefighting. Provides supplemental catastrophic accident insurance for all firefighters in Gallatin County. Supports training activities with both coordination and funding. Additional responsibilities of Gallatin County identified in this plan. 1.2 FIRE SERVICE MUTUAL AID AGREEMENT OVERVIEW While Montana Code Annotated allows for fire agencies to provide Mutual Aid support to each other without a formal agreement, the participating agencies feel it is a better practice to have a formal agreement outlining expectations for entities routinely working together. This agreement has been incorporated into the Fire Operating Plan to reduce the amount to needed agreements for adoption and ensure a consistent review and update schedule. 60 2026 Fire Operating Plan Page 6 of 39 1.3 RESPONSE TO IMMINENT LIFE THREAT MEDICAL EMERGENCIES Participating agencies recognize that incidents will occur outside of organized local government fire agency boundaries that could result in the loss of life. Response to medical emergencies in these areas can present a challenge for local government fire agencies with not having a legal responsibility to respond outside their legal boundaries as well as not having an agency with legal authority requesting them to respond. Gallatin County Attorney’s Office has provided their guidance that Gallatin County Emergency Management has broad responsibilities for preservation of life under Title 10, Chapter 3 of Montana Code Annotated to request a fire agency to respond outside of their jurisdiction for a life- threatening emergency. To facilitate preservation of life, Gallatin County Emergency Management has implemented Automatic Mutual Aid Agreements for the areas of Gallatin County without structural fire protection with willing agencies for life threatening medical emergencies. These automatic mutual aid agreements have been incorporated into the Fire Operating Plan to needed agreements for adoption and ensure a consistent review and update schedule 61 2026 Fire Operating Plan Page 7 of 39 1.3.1 IMMINENT LIFE THREAT AUTOMATIC AID AREAS 62 2026 Fire Operating Plan Page 8 of 39 1.4 GALLATIN COUNTY EMERGENCY MANAGEMENT SERVICE AREA Gallatin County Emergency Management provides services to Belgrade, Bozeman, Manhattan, Three Forks, West Yellowstone and Unincorporated Gallatin County. Additionally, service is provided to the Madison County portion of Big Sky through an interlocal Agreement. 63 2026 Fire Operating Plan Page 9 of 39 2 DEFINITIONS Cooperative Fire Control Program The Cooperative Fire Control Agreement exists between Gallatin County and MT DNRC and satisfies the requirements of MCA 7-33-2210 and MCA 76-13-104&136. Enrollment in the Co-op Program provides access to DNRC programs and establishes commitments on the County’s side. This agreement provides the process for the State to support local fire departments through the County. DNRC Cooperative Fire Control Agreement Agreement between Gallatin County and DNRC that establishes Gallatin County as a cooperative county for wildfire protection. DNRC Cooperative Equipment Agreement Agreement between Gallatin County and DRNC for assignment of cooperative equipment in Gallatin County. Participating Agency A fire protection agency in Gallatin County who meets one of the following criteria; 1) has in their possession (assigned to them) either a Gallatin County Engine, a DNRC Co-op Engine, or DNRC Hybrid Apparatus allocated to Gallatin County; 2) Participates in prescribed fire through the County’s Supplemental Fire Project Agreement; 3) Has records for their personnel maintained in Montana’s Incident Qualification System (IQS), thus enabling the issuance of Position Task Books and Incident Qualification Cards; 4) Is a signatory to the Fire Service Mutual Aid Agreement; 5) Responds to responds to life threatening medical calls in unprotected areas. Recognized Wildland Fire Protection Agency Defined as the Montana DNRC, US Wildland Fire Service or the US Forest Service. These agencies are considered to provide a higher level of wildland fire protection for lands under their protection. County Apparatus An apparatus (engine or support unit) owned and supported by Gallatin County Rural Fire. Gallatin County Rural Fire The program within Gallatin County assigned the responsibility for administering the functions of this plan. This program is part of Gallatin County Emergency Management Co-op Engine An engine owned by MT DNRC that is assigned to Gallatin County and has been issued to a specific agency. 64 2026 Fire Operating Plan Page 10 of 39 County Rural Fire Chief The individual responsible for fulfilling the requirements outlined in the MCA for rural fire protection in suppression of wildland fires on unprotected lands. Notwithstanding the fact that the duties of the Gallatin County Rural Fire Chief position is distinct from the County Fire Warden as set forth in MCA 7-33-2215(3) the Gallatin County Rural Fire Chief acts as the County Fire Warden for the purposes of administration of this Plan. County Fire Warden A position defined and required by Gallatin County’s Cooperative Fire Control Agreement with DNRC. Primary function is to act as a primary contact between local, state, and federal agencies to coordinate training and wildland fire prevention, detection, suppression, investigation, and mitigation as set forth in MCA 7-33-2215(3). The County Fire Warden shall coordinate with DNRC in support of the Cooperative Fire Control Agreement. DNRC Fire Warden A position defined in MCA 76-13-116 which DNRC appoints to act as their agent. This is a different function and position than a County Fire Warden. Deputy County Fire Warden An individual who has authority delegated to him or her to act on behalf of the County Fire Warden. If necessary and to the extent allowable by law a Deputy Fire Warden shall be considered a Deputy County Rural Fire Chief. Affidavit Land(s) Privately owned land in which the owner has voluntarily opted to pay property taxes for wildfire protection from DNRC. Typically referred to a fee land. Wildland Fire Protection District A district created for protection of land classified as “forest land” from wildfire in which a fee is collected for protection from DNRC. Typically referred to as fee land. Fee Land Private property that is either in a Wildland Fire Protection District or an Affidavit Unit that has opted to pay for increased wildland fire protection. 65 2026 Fire Operating Plan Page 11 of 39 Offset Protection In Montana, state and federal land management agencies have exchanged protection responsibilities for some lands where it is more practical for another agency to protect it. Gallatin County contains a large amount of offset protection where the US Forest Service protects private fee land property on DNRC’s behalf. Stacked Protection An area where both city, district or service area have protection and a recognized wildland fire protection agency also has protection because the area is in a Wildland Fire Protection District or a Affidavit Unit and the parcel has opted in. DNRC Hybrids MT DNRC will sometimes enter into agreements with local agencies to build joint apparatus. Typically the local agency provides the chassis and the State provide the water handling equipment. The DNRC portion of these apparatus are typically treated as an allocation to the County. Open Burning Controlled burns conducted under the authority of the Fire Control Ordinance requiring a permit. Open burning season runs annually from March 1 to November 30. See Gallatin County Fire Control Ordinance for more information. Burn Ban Process by which the Gallatin County Commission can restrict activities based on high fire danger. See Gallatin County Fire Control Ordinance for more information. Service Area The area that Gallatin County Emergency Management provides Emergency Management, Fire Warden, County Rural Fire Chief, EPCRA, and Local Emergency Response Authorities to. This consists of unincorporated Gallatin County and the 5 cities and towns within it. It also includes the Madison County portion of the Big Sky Resort Tax District. Supplemental Fire Project Agreement Supplemental Fire Project Agreements allow for the exchange of funds between the US Forest Service and State/ Local Government agencies for non suppression related activities such as fuels work or prescribed fire activities. 66 2026 Fire Operating Plan Page 12 of 39 3 LAND CLASSIFICATIONS In regard to wildland fire response, land in Service Area falls into several categories for protection. Each type of protection is provided through different methods and agencies. In some situations concurrent, or stacked, coverage exists. 3.1 FIRE PROTECTION AGENCY Montana law dictates through Title 7, Chapter 33, Parts 21 through 24, MCA that the majority of privately owned land in the populated areas of the county is within the boundaries of an organized fire protection agency such as a rural fire district, fire service area, or municipal fire department in which taxes or fees are collected for services. These agencies are responsible for wildfire suppression as well as other services. Most of these agencies have primary protection responsibility; however in some cases, they may overlap state and federal protection on private property, creating concurrent/ stacked protection responsibilities for wildfires. 3.2 CLASSIFIED FOREST LANDS Privately owned forest land, as defined by the State, in much of the Service Area are in a wildland fire protection district or affidavit unit pursuant to Title 76, Chapter 13, Part 2, MCA. Wildland fire protection districts are created by the Montana Department of Natural Resources and Conservation through a vote of the affected land owners. Forested property within an established wildland fire protection district is mandatorily assessed a fee for wildfire protection by the DNRC. In some cases, property within a wildland fire protection district is also within a rural fire district or fire service area, resulting in concurrent or stacked protection. Landowners of property within the Gallatin Forest Affidavit Unit may choose to have their land assessed for protection from wildland fire by the DNRC (MCA 76-13-212) . All land in Service Area in a wildland fire protection district, or assessed affidavit land, is protected on the DNRC’s behalf by the USDA Forest Service. This is conducted by an agreement known as a protection offset in which the Forest Service protects the land in the Service Area on DNRC’s behalf and DNRC protects Forest Service land on their behalf in another area of the state. As part of this agreement, the Forest Service is responsible for wildfire suppression activities and suppression costs for fires on this land. The DNRC still retains administrative control of this land. Large amounts of offset 67 2026 Fire Operating Plan Page 13 of 39 protection exists in the Bridgers, Bangtails, Northern Gallatin Range, Big Sky, Jack Creek, and West Yellowstone. Because of this, the Forest Ownership Boundary is different than the Forest Services’ Protection Boundary. 3.3 FEDERAL LANDS Most federal lands in Sthe Service Area are under wildfire protection from their respective land management agency. This primarily consists of the Gallatin National Forest, Beaverhead-Deerlodge National Forest and Yellowstone National Park having protection on the Southeast side of Gallatin County. Small sections of Bureau of Land Management and US Fish and Wildlife land does exist in Gallatin County and it is protected by the USDA Forest Service. 3.4 UNPROTECTED LANDS Gallatin County is responsible for suppression of wildfires on over 330,000 acres private lands not falling into any of the categories listed above typically referred to as unprotected lands. Almost all of this area is contained in the Northern half of the county. 68 2026 Fire Operating Plan Page 14 of 39 4 GALLATIN COUNTY WILDLAND PROGRAM 4.1 COUNTY SUPPORTED WILDLAND APPARATUS 4.1.1 COUNTY OWNED APPARATUS County Apparatus consists of all Gallatin County owned equipment such as engines, support vehicles, trailers, and assorted equipment. Some of this equipment will be assigned to participating agencies for their use with the understanding that in return they will assist with wildfire in the unprotected areas. 4.1.1.1 USAGE County Apparatus that has been assigned to participating agencies is at the full disposal of the agency and may be used for incidents outside of wildfires in unprotected areas. The expectation is that when Gallatin County Rural Fire has a wildfire occur in an unprotected area, that participating agencies will respond within their ability. 4.1.1.2 MAINTENANCE County Apparatus is owned by Gallatin County and, as such, the County will support the maintenance of that equipment. Participating agencies are responsible for performing routine vehicle checks of apparatus assigned to them. Participating agencies are also responsible for routine fuel costs as they are using the apparatus for their needs. Routine maintenance, such as oil changes, should be incorporated into the participating agency’s normal process used for their own equipment. The costs incurred for the maintenance of County Apparatus should be forwarded to the Chief of EM & Fire for reimbursement. It is expected that actual costs for the maintenance supplies will be submitted (For example, cost of oil used, cost billed by oil change facility, cost of air filters, etc…). Personnel costs incurred for hours spent on activities related to County Apparatus are not reimbursable. Reimbursement requests must be submitted within 3 months of the work, or they may not be reimbursed. This is viewed as part of the participating agency’s contribution in exchange for the use of the County Apparatus for their own uses. Major repairs in excess or $250, or anything in question, must be coordinated with the County Chief of EM & Fire before any costs are incurred or they may not be reimbursed. 69 2026 Fire Operating Plan Page 15 of 39 4.1.1.3 INSURANCE Insurance for County Apparatus is carried by Gallatin County. Personnel responding on these apparatus shall follow their fire department’s fleet safety program. The department’s fleet safety program must reasonably meet Gallatin County’s requirements. All personnel must be covered by workers compensation insurance through their fire protection agency. 4.1.1.4 PERSONNEL QUALIFICATIONS By accepting assignment of a County Apparatus, the participating agency is agreeing that the personnel that will be operating that apparatus are properly trained on the apparatus and qualified for their position in accordance with recognized standards (PMS 310-1) and applicable laws. 4.1.1.5 OUTFITTING All County Apparatus is outfitted with a standard complement of equipment when assigned to the participating agency. The participating agency can add or remove equipment to meet an apparatus configuration that meets their needs. When County Apparatus is returned to the County from a participating agency that apparatus must be equipped identically to how it was issued. County Apparatus in the form of engines will be outfitted, as a minimum, according to the current Montana Incident Business Operating Guide (MIBOG). County apparatus will also be equipped with a mobile radio and emergency warning package. 4.1.2 CO-OP ENGINES Co-op engines are owned by the State of Montana and are issued to Gallatin County for assignment among fire agencies in the county. The Chief of EM & Fire will distribute these engines to participating agencies throughout the county. 4.1.2.1 USAGE Co-op engines that have been assigned to participating agencies are at the full disposal of the agency and may be used for incidents outside of wildfires in unprotected areas. The expectation is that when Gallatin County Rural Fire has a wildfire occur in an unprotected area, that participating agencies will respond within their ability. 4.1.2.2 MAINTENANCE 70 2026 Fire Operating Plan Page 16 of 39 Co-op engines are owned by the State of Montana and, as such, the State and County will support the maintenance of that equipment. Participating agencies are responsible for performing routine vehicle checks of apparatus assigned to them. Participating agencies are also responsible for routine fuel costs as they are using the apparatus for their needs. Routine maintenance, such as oil changes, should be incorporated into the participating agency’s normal process used for their own equipment. The costs incurred for the maintenance of co-op engines should be forwarded to the Chief of EM & Fire for reimbursement. Gallatin County will cover routine maintenance items. It is expected that actual costs for the maintenance supplies will be submitted (For example, cost of oil used, cost billed by oil change facility, cost of air filters, etc…). Personnel costs incurred for man hours spent on activities related to co-op engines are not reimbursable. Reimbursement requests must be submitted within 3 months of the work, or they may not be reimbursed. This is viewed as part of the participating agency’s contribution in exchange for the use of the co-op engine for their own uses. Major repairs exceeding $250, or anything in question, must be coordinated with the County Chief of EM & Fire before costs are incurred, or it may not be reimbursed. The County Chief of EM & Fire will coordinate with the MT DNRC on how they want to handle the repair. 4.1.2.3 INSURANCE Insurance for co-op engines is covered by the Montana Department of Natural Resources and Conservation through the Cooperative Fire Control Agreement with Gallatin County for use in wildfire response. Routine use of Co-op apparatus outside of wildfire may fall outside of the State’s intended purpose and not covered by the State. If a Co-op apparatus is used frequently outside of wildfire, the agency should consider obtaining their own insurance coverage for it. All personnel must be covered by workers compensation insurance through their fire protection agency. 4.1.2.4 PERSONNEL QUALIFICATIONS By accepting assignment of a co-op engine, the participating agency is agreeing that the personnel that will be operating the engine are properly trained on the apparatus and qualified for their position in accordance with recognized standards (PMS 310-1) and applicable laws. 4.1.2.5 OUTFITTING Co-op engines are outfitted with a standard complement of equipment when assigned to the participating agency. The participating agency can add or remove equipment to meet an apparatus configuration that meets their needs. When a co-op engine is returned from a participating agency to the county, that apparatus must be equipped identically to how it was issued. 71 2026 Fire Operating Plan Page 17 of 39 DNRC Co-op engines will be outfitted, as a minimum, according to the current Montana Incident Business Operating Guide (MIBOG). Co-op apparatus will also be equipped with a mobile radio and emergency warning package. 4.1.3 DNRC HYBRID APPARATUS Hybrid apparatus are jointly built between the MT DNRC and a local fire agency. Typically the chassis is owned by the fire agency and the water handling equipment and supplies are owned by DNRC. Hybrid apparatus are tracked by the DNRC as an allocation to the County. 4.1.3.1 USAGE Since the local fire agency owns the chassis, hybrid apparatus are not allocated by the Chief of EM & Fire. Use of this apparatus is at the sole discretion of the local fire agency. 4.1.3.2 MAINTENANCE Due to the joint ownership, the local fire agency is responsible for all operational and repair costs associated with the chassis. While the water handling equipment is assigned by DNRC to Gallatin County through the Cooperative Equipment Agreement, hybrid apparatus are not considered part of Gallatin County’s fleet. The local fire agency is responsible for operational and maintenance costs of the water handling equipment and supplies. Gallatin County may be able to assist in some situations. Major repairs, or anything in question, must be coordinated with the County Chief of EM & Fire. The County Chief of EM & Fire will coordinate with the MT DNRC on how they want to handle the repair. 4.1.3.3 INSURANCE Insurance for hybrid apparatus is the responsibility of the local fire protection agency. Personnel responding on these apparatus are covered through their fire protection agency’s insurance including workers compensation. 4.1.3.4 PERSONNEL QUALIFICATIONS By accepting assignment of a hybrid apparatus, the participating agency is agreeing that their personnel who will be operating the engine are properly trained on the apparatus and qualified for their position in accordance with recognized standards (PMS 310-1) and applicable laws. 72 2026 Fire Operating Plan Page 18 of 39 4.1.3.5 OUTFITTING Hybrid apparatus are outfitted with a standard complement of equipment when received from MT DNRC. The participating agency can add or remove equipment to meet an apparatus configuration that meets their needs. Hybrid apparatus will be outfitted, as a minimum, according to MT DRNC standard configuration. All radio communications equipment and emergency warning equipment is the responsibility of the participating fire protection agency. 4.2 COUNTY FIRE WARDEN The County Fire Warden is appointed by name by the Gallatin County Commission and through Interlocal Agreement for Madison County. The Fire Warden is responsible for carrying out the duties outlined in this plan that consist of the County Rural Fire Chief functions as outlined in the Montana Code Annotated and the County Fire Warden functions as outlined in the Montana DNRC Cooperative Fire Control Agreement. The Gallatin County Chief of Emergency Management and Fire has named responsibility for both these roles. The Chief of EM & Fire is authorized to represent Gallatin and Madison Counties as its Line Officer on matters within the scope of this plan within the Service Area. The Chief of EM & Fire may appoint Deputy Fire Wardens and delegate authority to them as he or she sees fit. 4.2.1 DEPUTY FIRE WARDENS Deputy Fire Wardens are agents of the Gallatin County Chief of EM & Fire as necessary and have had specific authorities delegated to them. The Deputy Fire Wardens will primarily serve as representatives of the County at meetings or training, serve in leadership positions at wildfires, or provide support to county apparatus and co-op engines. Deputy Fire Wardens are identified by the Gallatin Chief of EM & Fire and provided delegated authority to fulfill the duties outlined by this plan. Usually, Deputy Fire Wardens are identified ahead of time, however certain situations may necessitate temporary authorization by the Chief of EM & Fire. When functioning as a Deputy Fire Warden, if the person is not functioning as an employee of a fire protection agency, then the person is considered a volunteer for Gallatin County and thus covered by workers compensation and liability insurance, but they will not receive wages. The normal circumstances where insurance coverage for volunteer Deputy Fire Wardens are: fire incidents, training approved by the County Chief of EM & Fire, and during meetings requested by the County Chief of EM & Fire. 73 2026 Fire Operating Plan Page 19 of 39 4.3 RESPONSE TO GALLATIN COUNTY PROTECTION Gallatin County Emergency Management responds to incidents in unprotected areas using a combination of Gallatin County resources, DNRC co-op engines, and mutual aid resources, the deployment of which has been established to make efficient use of those resources based on location. 4.3.1 DEPUTY FIRE WARDENS Deputy Fire Wardens are automatically dispatched on all incidents. Deputy Fire Wardens will coordinate amongst themselves regarding which Deputy Fire Warden will respond. Once a Deputy Fire Warden is committed as responding to the incident, they will notify dispatch that they are responding in this capacity. 4.3.2 INCIDENT ACCOUNTABILITY The County Emergency Management deployment plan is designed to provide management personnel from the closest fire agencies as well as Deputy Fire Wardens for incidents. The intent for wildfires in unprotected areas is to have the first arriving management personnel establish and assume incident command (IC) of the incident. If the first arriving IC is not a Deputy Fire Warden, it is expected that the IC will continue to manage the incident until a Deputy Fire Warden can get to the scene to assume command. This is to ensure efficient coordination of resources and the safety of both responders and the public. It is not mandatory for a Fire Warden to assume command if it is deemed more appropriate for someone else to assume that role. 4.3.3 INCIDENT EXPENSES IN UNPROTECTED Costs incurred by agencies responding to a Gallatin County Emergency Management incident will be covered in accordance with the Gallatin County Mutual Aid Agreement. Typically costs (personnel, equipment rates, etc…) during the initial operational period will be considered mutual aid. Operations after the first operational period are eligible for reimbursement from the County. In accordance with the Gallatin County Emergency Management Plan and the Gallatin County Mutual Aid Agreement, rates will be based on the Montana Incident Business Operations Guide. Agencies requesting reimbursement for paid employees will be reimbursed at each employee’s expended rate including benefits. County Apparatus and co-op engines are not eligible for reimbursement for the equipment, but personnel are. Damages that occur at any point in the incident will be reimbursed (for non-county or state resources) in accordance with the Gallatin County Mutual Aid Agreement. During the first operational period while under mutual aid (not in a pay status), Gallatin County will reimburse up to $1000 per agency per incident for incident caused damage (this may be superseded by other agreements). Any damage incurred on an incident should be reported to, and coordinated with, the Gallatin Chief of EM & Fire. Fuel and reasonable welfare items for resources responding to a Gallatin County Emergency Management incident will be provided (all types of resources). 74 2026 Fire Operating Plan Page 20 of 39 Agencies may choose not to be reimbursed for any of the items listed in this section. 4.3.4 COUNTY WILDFIRE RESPONSE PLAN AREAS Spanish Creek North of Spanish Peaks area of Gallatin National Forest, South of Axtell Anceney Road, East of Madison County Line (Beaverhead-Deerlodge National Forest), West of US 191. Basically the West side of the Flying D Ranch North to Axtell Anceney Road. Norris Norris road along the river. West Madison River North of Blacks Ford Fishing Access and West of the Madison River. Runs North to Willow Creek and Three Forks Fire Districts. Horseshoe North of Gallatin River, South of Broadwater County, East of Missouri River, West of Horsehoe Hills. Basically the areas accessed through Clarkston, Horseshoe Cottonwood Road, etc… Maudlow North of Gallatin River and Central Valley Fire District, South of Broadwater County, East of Horseshoe Hills, West of Bridger Range of Gallatin National Forest. Basically the area accessed from Dry Creek Road and assorted spurs. Sedan North of Sedan Fire District, South of Meagher County Line, East of Gallatin National Forest, West of Park County Line. Basically the area North of Sedan along the East end of 16 Mile. Bozeman Islands of unprotected within the City of Bozeman. Primarily off of Griffin and Bridger Drives. 4.4 SPECIALIZED RESOURCES 4.4.1 SADDLE PEAK FUELS MODULE Gallatin County Emergency Management staffs the 9 person Saddle Peak Fuels Module during the core summer months. The Module is primarily focused on wildfire mitigation work, but is available to support wildfire suppression activities. The module is equipped to operate like a small hand crew, or can staff a wildland engine. This is a good resource to support extended mop up and patrol activities. 75 2026 Fire Operating Plan Page 21 of 39 4.4.2 BIG SKY FIRE FUELS CREW Big Sky Fire Department staffs a 9 person fuels crew during the core summer months. The Module is primarily focused on wildfire mitigation work, but is available to support wildfire suppression activities. The module is equipped to operate like a small hand crew, or can staff a wildland engine. This is a good resource to support extended mop up and patrol activities. 4.4.3 RADIO KITS Gallatin County Emergency Management maintains several portable radio kits with radios that are compatible with the interagency wildfire system (i.e. cloning and AA batteries). These are available for use on local incidents or to support agencies going to incidents outside of the area. 4.4.4 COMMAND POST TRAILER Gallatin County Emergency Management maintains a command post trailer to support extended incidents. The trailer provides climate controlled workspace, radios, internet and a copier. 4.4.5 CACHE TRAILER Gallatin County Emergency Management maintains a cache trailer designed to support command post functions for a extended incident. This includes tables and chairs for 50 along with supplies to support feeding and vehicle coordination. 4.4.6 PORTABLE REPEATERS Portable repeaters are supported by the SAR Comms group for both Ruby and VTAC36/ 37 for deployment in support of local incidents. 4.5 NON-SUPPRESSION FIRE ACTIVITIES Non wildfire suppression funding is typically separate from suppression funds, and the agreements necessary to enter into pay status are different. The exchange of funds for these activities must be facilitated through a Supplemental Fire Project Agreement (SFPA). 4.5.1 MONTANA DNRC SUPPLEMENTAL FIRE PROJECT AGREEMENT The Montana DNRC has Supplemental Fire Project Agreements with all National Forests in the State that with prior coordination with the DNRC can be used for local government supporting non suppression activities in pay status. The DNRC can pay apparatus costs and employee costs for paid employees of a 76 2026 Fire Operating Plan Page 22 of 39 local government agency. The DNRC can not fire volunteer firefighters for these activities as their Emergency Fire Fighter authority is only for suppression activities. 4.5.2 GALLATIN COUNTY SUPPLEMENTAL FIRE PROJECT AGREEMENT Gallatin County has a Supplemental Fire Project Agreement with the Custer Gallatin National Forest for county resources to support non suppression activities in pay status. Gallatin County can reimburse apparatus costs according to the Montana Incident Business Operations Guide (MIBOG). Personnel costs can also be covered by reimbursement for paid personnel, or the County hiring volunteer firefighters as temporary employees. All SFPA activity must be coordinated well in advance and will not be implemented retroactively. 4.5.2.1 TEMPORARY EMPLOYEES FOR SFPA WORK Gallatin County Emergency Management can hire local volunteer firefighters as temporary employees to support non suppression activities in a pay status. Temporary hires will be paid according to their qualifications in alignment with the current DNRC MIBOG EFF Pay Plan. Temporary employees can typically be onboarded within a week with minimal work and cannot be hired retroactively. The following criteria must be in place: • Temporary Employee is qualified in Montana IQS for their position according to PMS 310-1. • Temporary Employee has a current unexpired refresher. • Temporary Employee has a current unexpired work capacity test. 4.6 WILDLAND FIRE CREDENTIALLING 4.6.1 TRAINING COURSES Gallatin County Emergency Management supports wildland fire training annually in the winter and spring. Training courses offered will vary on a rotating basis determined each fall through a needs analysis process with local fire agencies. 4.6.1.1 COURSE DELIVERY REQUIREMENTS NWCG curriculum can be delivered by any fire agency for attendance by local government personnel as long as the following criteria is met: • NWCG Curriculum is utilized and followed for each course according to NWCG Standards for Course Delivery PMS 901-1.. o Full course hours met. o Any pre-course material is completed. 77 2026 Fire Operating Plan Page 23 of 39 o Post tests are delivered. • Instructor criteria is met for both lead and unit instructors according to the NWCG Standards for Course Delivery PMS 901-1. • Students meet requirements for both Qualifications and Pre-requisite training courses according to the NWCG Standards for Course Delivery PMS 901-1. • Student roster is provided to Gallatin County Emergency Management for entry into IQS along with copies of student certificates or completion memos. 4.6.2 QUALIFICATIONS Incident Qualification Cards can only be issued by a recognized Wildland Fire Protection Agency according to the Montana Master Agreement. Montana DNRC maintains this authority for local government in Montana. All Incident Qualification Cards (aka Red Cards) can only be issued by the DNRC. Gallatin County Emergency Management coordinates this process in Gallatin County. A Wildfire System Support page with details is available at: https://www.readygallatin.com/wildfire- support/. 4.6.2.1 INCIDENT QUALIFICATION CARDS Incident Qualification Cards are generated based on an individual’s record in the Montana Incident Qualification System (IQS) in compliance with NWCG Standards for Wildland Fire Position Qualifications, PMS 310-1. Gallatin County Emergency Management maintains IQS records for local government in Gallatin County and coordinates the issuance of qualifications. For an Incident Qualification Card to be issues, IQS must have all the following: • All required training courses. • All required Position Task Books. • All required refresher training that is within the expiration period. • All required Work Capacity Test records that are within the expiration period. • Documented incident assignments for positions that require proficiency that are within the expiration period. Qualifications that do not meet the above PMS 310-1 requirements will not be visible on Incident Qualification Cards. 4.6.2.2 INTERAGENCY RESOURCE ORDERING CAPACITY (IROC) The Interagency Resource Ordering Capacity (IROC) is the system that interagency wildfire resources are statused in and ordered through. An individual is made available in IROC through IQS by being an “Integrated” resource. The integration between IROC and IQS is automated and only individuals who meet all the requirements for an Incident Qualification Card will be Integrated. If any part of the currency for an individual expires in IQS, IROC will automatically show the individual as no longer qualified. 78 2026 Fire Operating Plan Page 24 of 39 Gallatin County Emergency Management will coordinate the integration of personnel who are actively participating in wildfire mobilizations. 4.6.2.3 CHIEF’S CERTIFICATIONS The Montana DNRC has granted fire chiefs the ability to certify their personnel in 5 specific positions through what is known as a Chiefs Certification. A Chiefs Certification is not an Incident Qualification Card and does not qualify an employee for one. When a Fire Chief completes the Chiefs Certification for their personnel, they are certifying that those individuals meeting the interagency standards called out in PMS 310-1. The firefighters must carry the entire Chiefs Certification packet as their proof of qualification. This is more frequently utilized for agencies who don’t routinely mobilize their resources in a pay status, but perhaps support a local extended incident or Critical Mission Task Force. Agencies regularly mobilizing personnel should properly document their personnel with State issued Incident Qualification Cards. This ensures less confusion for the personnel at an incident and allows for proper rostering of the personnel on the resource orders. 4.6.2.4 GALLATIN COUNTY INCIDENT QUALIFICATION COMMITTEE Gallatin County maintains the Gallatin County Incident Qualification Committee as a peer review group to support the issuance and completion of the Position Task Book Process. The Committee typically meets each fall and spring. Position Task Books outside of Firefighter Type 2, Firefighter Type 1, and Engine Boss must be routed through the Committee. 79 2026 Fire Operating Plan Page 25 of 39 5 GALLATIN COUNTY FIRE SERVICE MUTUAL AID AGREEMENT GALLATIN COUNTY FIRE SERVICE MUTUAL AID AGREEMENT JUNE 1, 2026 THIS AGREEMENT will take effect between and among the signing Agencies when two or more local governments, fire districts or fire service areas in Gallatin County and/or Agencies that border Gallatin County sign the Agreement. This Agreement will supersede all prior Gallatin County Fire Agency Mutual Aid Agreements signed by the signatories of this Agreement. WHEREAS, in the event of a disaster, incident or other emergency, an Agency may need the assistance of another Agency or Agencies party to this Agreement to provide supplemental fire suppression, emergency medical service equipment and personnel, hazardous materials control, and/or other emergency support; and WHEREAS, an Agency or Agencies may have the necessary equipment and personnel available to enable it to provide such services in the event of such a disaster, incident or other emergency; and WHEREAS, the parties to this Agreement have determined that it is in the best interests of all parties to set forth guidelines for providing mutual aid in the case of a disaster, incident or other emergency. NOW, THEREFORE, IT IS HEREBY AGREED AS FOLLOWS: 1. DEFINITIONS. The following definitions shall apply to this Agreement: A. "Agency" means any signatory fire district, fire service area, municipality, county, state, federal agencies or other legally constituted unit of local government within Gallatin County or that border Gallatin County. B. "Disaster" means the occurrence or imminent threat of widespread or severe damage, injury, or loss of life or property resulting from any natural or artificial cause, including tornadoes, windstorms, snowstorms, wind-driven water, high water, floods, wave action, earthquakes, landslides, mudslides, volcanic action, fires, explosions, air or water contamination requiring emergency action to avert danger or damage, blight, droughts, infestations, riots, sabotage, hostile military or paramilitary action, disruption of state services, accidents involving radiation byproducts or other hazardous materials, outbreak of disease, bioterrorism, or incidents involving weapons of mass destruction. C. "Emergency" means the imminent threat of a disaster causing immediate peril to life or property that timely action can avert or minimize. D. "Incident" means an event or occurrence, caused by either an individual or by natural phenomena, requiring action by disaster and emergency services personnel to prevent or minimize loss of life 80 2026 Fire Operating Plan Page 26 of 39 or damage to property or natural resources. The term includes the imminent threat of an emergency. The term does not include a state of emergency or disaster declared by the governor pursuant to § 10-3-202, MCA or § 10-3-303, MCA. E. "Requesting Agency" means the agency asking for assistance. F. "Responding Agency" means the agency sending assistance. 2. PURPOSE The specific purpose of this Mutual Aid Agreement is to provide mutual assistance to the Agencies for control of fire, fire prevention, emergency medical services, hazardous materials control, and/or other emergency support in the event of a disaster, incident or other emergency pursuant to §7-33-2108, §7-33-2202, §7-33-4112 and §10-3-202, MCA. 3. TERM. This Agreement shall remain in full force and effect unless amended or terminated. 4. REQUEST FOR ASSISTANCE. The fire chief or designee or incident commander from any Agency may request assistance from any other Agency or Agencies to this Agreement if confronted with an emergency situation at which the Requesting Agency has need for equipment or personnel in excess of that available to the Requesting Agency. A request for assistance should include the type of incident or emergency and the type of equipment, the number of personnel and specify the location where needed. 5. RESPONSE TO REQUEST, Upon receipt of a request the Responding Agency will determine if the Responding Agency has equipment and personnel available to respond to the request of the Requesting Agency and determine the type of the equipment and number of personnel available. In the event the requested equipment and/or personnel are not available, then the Responding Agency shall immediately advise the Requesting Agency that assistance cannot be provided. 6. ASSISTANCE NOT MANDATORY. Providing assistance to a Requesting Agency is not mandatory. 7. COMMAND AT INCIDENT SCENE. Personnel from the Responding Agency shall report to the Requesting Agency's fire chief, designee or incident commander. The Responding Agency's equipment and personnel shall be under the immediate supervision and responsibility of the requesting fire chief, designee or incident commander during the actual operation. The requesting fire chief, designee or incident commander may request an officer of a Responding Agency to assume command. However, relinquishing command shall not relieve the Requesting Agency of responsibility for the operation. Personnel of a Responding Agency shall be considered to be acting under the lawful orders and instructions of their own Agency to and from the operation. They are not to be considered personnel or employees of any other Agency. 8. RELEASE FROM INCIDENT. A Requesting Agency shall release a Responding Agency when services are no longer required or when the Responding Agency is needed for service in its own jurisdiction or upon direct request from the Responding Agency. 81 2026 Fire Operating Plan Page 27 of 39 9. OPERATING PROCEDURES. The Agency Fire Chiefs and/or their designee(s) are authorized to adopt operation procedures, guidelines, policies and plans to implement this Agreement through the Gallatin County Fire Council. 10. LIABILITY. Each agency shall be responsible for defending claims made against it or its personnel arising from participation in this Agreement. Agencies shall not be obligated to defend claims made against another Agency or its personnel. 11. COMPENSATION. Each Agency agrees that it will not seek compensation for services from any signatory Agency under this Agreement, except as allowed pursuant to federal, state and local laws and regulations. This section does not preclude an Agency from directly seeking compensation or reimbursable expenses from a third party. 12. REIMBURSEMENT. A Requesting Agency shall provide fuel and reasonable welfare items for Responding Agencies; however, Responding Agencies may elect not to be reimbursed. 13. INSURANCE. Each Agency agrees to maintain adequate insurance coverage for its own equipment and personnel. 14. COUNTY SUPPLEMENTAL INSURANCE COVERAGE. Gallatin County agrees to provide supplemental disability insurance coverage for those Gallatin County Agency firefighters who are injured while actively engaged in incident response or during transportation to or from an incident under this Agreement. The supplemental coverage is contingent upon the Gallatin County Agency having a primary workers compensation policy in place prior to the injury. 15. AGREEMENT NOT EXCLUSIVE. This Agreement is not intended to be exclusive as between parties hereto. The parties may, as that party deems necessary or expedient, enter into a separate Mutual Aid Agreement or Agreements with any other party or parties. Entry into such separate Agreements shall not change any relationship or terms of this Agreement unless the parties hereto mutually agree in writing to such change. 16. COORDINATION. Regular coordination between agencies is critical for implementation of this agreement. Agencies will remain an active participant in the Gallatin County Fire Council with agency representation at each quarterly fire council meeting, as a minimum. 17. ADMINISTRATION, SEPARATE LEGAL ENTITY AND PROPERTY. A. No joint board or separate legal entity is created by this Agreement. B. The ownership of property by each Agency shall not be affected as a result of this Agreement. Property acquired during the term of this Agreement shall belong to the Agency acquiring the property. 18. FILING OF AGREEMENT. The original of this Agreement shall be filed with the Montana Secretary of State, Gallatin County Clerk and Recorder and copies shall be filed with each Agency. 82 2026 Fire Operating Plan Page 28 of 39 IN WITNESS WHEREOF, the undersigned, who are Trustees, Commissioners, Council Members or designated individuals, have executed this Agreement on behalf of their Fire Department, Fire District, Fire Service Area, State Agency, Federal Agency or unit of local government, as of the day and year by their names. END OF AGREEMENT EXCEPT FOR SIGNATURE PAGE(S) 83 2026 Fire Operating Plan Page 29 of 39 6 IMMINENT LIFE THREAT AUTOMATIC MUTUAL AID AGREEMENT GALLATIN COUNTY EMERGENCY MANAGEMENT IMMINENT LIFE THREAT AUTOTMATIC MUTUAL AID AGREEMENT JUNE 1, 2026 THIS AGREEMENT will take effect between and among the signing Agencies when Gallatin County and the Participating Agency sign the Agreement. This Agreement will supersede all prior Imminent Life Treat Automatic Aid Agreements signed by the signatories of this Agreement. WHEREAS, in the event of a life threatening medical emergency occurring in the front country outside of a municipality, fire district or fire service area, it is in the patient’s best interest to have a local government fire agency respond. WHEREAS, local government fire agencies are funded by tax payers residing within their established agency boundaries and their authorities to act are rooted within those boundaries. WHEREAS, Gallatin County Emergency Management has authority for general life preservation in 10-3, Montana Code Annotated and can request mutual aid from local fire agencies to assist in life preservation. NOW, THEREFORE, IT IS HEREBY AGREED AS FOLLOWS: 1. DEFINITIONS. The following definitions shall apply to this Agreement: A. "Participating Agency" means any signatory fire district, fire service area, municipality, that indicates on the adoption page their agreement to respond to life threatening medical emergencies within an Automatic Aid Response Area B. “Imminent Life Treat” means any medical emergency where it is reasonable to believe an injured individual may die without rapid intervention. 2. PURPOSE The specific purpose of this Automatic Mutual Aid Agreement is to provide fire department response and medical intervention for imminent life threat medical incidents occurring in the front county and outside a local government fire protection agency jurisdiction pursuant to §10-3, MCA. 3. TERM. This Agreement shall remain in full force and effect unless amended or terminated. 4. RESPONSE TO REQUEST, Upon receipt of a request the Participating Agency will determine if the Participating Agency has equipment and personnel available to respond to the request.. In the event the requested equipment and/or personnel are not available, then the Participating Agency shall immediately advise Gallatin County Dispatch that assistance cannot be provided. 5. DISPATCH. Gallatin County Dispatch is authorized to dispatch the Participating Agency to the Imminent Life Threat Automatic Aid Response Area(s) as indicted in the plan adoption page. 6. ASSISTANCE NOT MANDATORY. Providing assistance to a Requesting Agency is not mandatory. 7. COMPENSATION. Participating Agency agrees that it will not seek compensation for services from any signatory Agency under this Agreement, except as allowed pursuant to federal, state and local laws and regulations. This section does not preclude an Agency from directly seeking compensation or reimbursable expenses from a third party. 84 2026 Fire Operating Plan Page 30 of 39 8. INSURANCE. Participating Agency agrees to maintain adequate insurance coverage for its own equipment and personnel. 9. ADMINISTRATION, SEPARATE LEGAL ENTITY AND PROPERTY. A. No joint board or separate legal entity is created by this Agreement. B. The ownership of property by each Agency shall not be affected as a result of this Agreement. Property acquired during the term of this Agreement shall belong to the Agency acquiring the property. 10. FILING OF AGREEMENT. The original of this Agreement shall be filed with the Montana Secretary of State, Gallatin County Clerk and Recorder and copies shall be filed with each Agency. IN WITNESS WHEREOF, the undersigned, who are Trustees, Commissioners, Council Members or designated individuals, have executed this Agreement on behalf of their Fire Department, Fire District, or Fire Service Area, as of the day and year by their names. 85 2026 Fire Operating Plan Page 31 of 39 7 REQUESTS FOR ASSISTANCE 7.1 COUNTY ASSIST REQUEST A “County Assist” is a process in which a County can request assistance from the Montana Department of Natural Resources and Conservation for a wildfire that has exceeded the County’s ability to manage through their Cooperative Fire Control Agreement. This is not a statutory program, but an internal process within DNRC. A key factor in this process is determining if the County is fully committed to the incident. Level of commitment is not a set level, but an agreed upon level between the county and the DNRC Line Officer. This is often measured by the county’s financial and resource commitment to the incident. Rural Fire Districts and Fire Service Areas are considered subunits under the County for the Cooperative Fire Control Agreement and obtain support from the State through the County. Not all support from the DNRC requires a County Assist and if often provided as mutual aid. When the level of commitment exceeds what the State considers mutual aid, then a County Assist will be required. The DNRC will typically continue support based on a verbal commitment that a formal request is coming. When this situation occurs, a request is made to the DNRC by Gallatin or Madison County for a County Assist outlining the situation and what the needs are. This then enables the DNRC to formally deploy resources and financial assistance to the incident. A county assist requires a formal request to DNRC from the Gallatin County Commission within 48 hours. Specific information on the county assist process is contained in the Annex F of the Gallatin County Emergency Management Plan. 7.2 MUTUAL AID REQUESTS Gallatin County Emergency Management is a signatory to the Gallatin County Mutual Aid Agreement, and is allowed by state statute to request mutual aid without a formal agreement. Gallatin County Emergency Management may request assistance from agencies for non-County Apparatus and co-op engines for use in suppression of wildfires in unprotected areas. Gallatin County Emergency Management resources are also available upon request for mutual aid in support of another agency’s incidents. Agencies in Gallatin County wishing to use Gallatin County Emergency Management resources through mutual aid must include these resources (through the agency hosting the resource) in their deployment plan through Dispatch. A common mutual aid partner with Gallatin and Madison Counties is the Montana Department of Natural Resources (usually aviation resources). Mutual Aid can be requested and granted by DNRC without the need of meeting the requirements of a County Assist. 86 2026 Fire Operating Plan Page 32 of 39 Gallatin County is a signatory of the South Central Zone Sub Geographic Operating Plan (formerly Zone Operating Plan) between Gallatin and Park Counties, Custer Gallatin National Forest, Yellowstone National Park, and Montana DNRC. This agreement gives the county access to federal wildfire resources in the area and the region as mutual aid. 7.3 RECEIVED REQUESTS TO PROVIDE RESOURCES OUT OF COUNTY 7.3.1 RECEIVED NEIGHBORING COUNTY REQUESTS TO GALLATIN COUNTY The Gallatin County Fire Council has requested that Gallatin County Emergency Management’s Duty Officer serve as the point of contact for resource requests (mutual aid) from neighboring jurisdictions to allow for a coordinated approach to filling the request. This is to ensure the fire agencies can respond in a coordinated manner and the appropriate coverage remains in the County. 7.3.1.1 REQUEST PROCESS 1. Upon a resource request to Gallatin County 911 for anything other than a single agency request, Dispatch will generate a Mutual Aid Request incident and notify the GCEM Duty Officer. 2. The GCEM Duty Office will contact Dispatch for additional information. 3. Depending on available information, the Duty Officer may contact the requesting agency for further information. 4. The Duty Officer will coordinate with the on duty fire service duty officers on availability of requested resources and coordination on deployment of them. 5. Dispatch will be notified of the resources to be assigned. 7.3.2 RECEIVED CRITICAL MISSION TASK FORCE REQUESTS Montana DNRC utilizes a local government short duration resource surge process referred to as Critical Mission Task Forces. These are typically made up of local government wildland engines and overhead that are deployed for 48-72 hours for a specific mission, then returned home. They are not ordered to an incident and cannot be reassigned or remain at an incident. When a request for a Critical Mission Task Force is received, a Fire Warden will be assigned as a point person to coordinate resources from Gallatin County. All local government fire agencies will be notified with details and instructions if they can participate. These are time-sensitive requests with quick turnaround for deployment. Critical Mission Task Force requests are a pay status deployment for personnel and apparatus from the DNRC. There will not be resource orders generated through IROC, it will be processed directly by the DNRC internally. It is possible for departments without agreements in place to complete that after the 87 2026 Fire Operating Plan Page 33 of 39 fact. Volunteer firefighters who cannot be payrolled by their fire departments can be hired by the DNRC as Emergency Fire Fighters. 7.3.3 RECEIVED STANDARD TASK FORCE REQUESTS Strike Teams and Task Forces are occasionally formed up and sent to incidents, or pre-positioned assignments, as a single group. This is typically organized by the Central Land Office. These resources must have current incident rental agreements for their apparatus and current incident qualification cards for their personnel. These resources are not necessarily being sent to local or state fires, thus the paperwork can not be done after the fact. When a request for apparatus to participate in a Strike Team or Task Force is received, a Fire Warden will be assigned as the point of contact to coordinate. The formation of these is done by the land office and then provided to dispatch. Do not try and work directly with Billings Interagency Dispatch. The Fire Warden will contact agencies that might be able to facilitate the request with the details and assist in getting everything in place. Once assigned to a Strike Team or Task Force, Billings Interagency Dispatch will provide you with a apparatus resource order with rostered crew based on the information you provided to the Fire Warden. 7.3.4 RECEIVED EMERGENCY MANAGEMENT ASSISTANCE COMPACT REQUEST Emergency Management Assistance Compact (EMAC) requests are managed by Montana Disaster and Emergency Services. This is a state to state mechanism for mobilization of resources. These assignments are typically for longer duration assignments frequently consisting 14 days plus travel. It is at Montana Disaster and Emergency Services discretion on what resource requests they choose to offer up based on their internal capacity. When an EMAC request is received, an Emergency Management Duty Officer will be identified as the point person to coordinate the request. All local government fire agencies will be notified of the request details and instructions on participation. These requests frequently require mobilization in around 24-48 hours. The exact process has historically varied for EMAC requests. EMAC deployments are a pay status activity for apparatus and personnel. Each participating agency must cover their personnel and equipment costs until reimbursed. A portion of the costs are likely to be covered up front by the State of Montana while they wait for the reimbursement from the requesting state. The exact authorized costs are dictated by the requesting state in their initial request and often vary. There is no option for hiring temporary employees. 88 2026 Fire Operating Plan Page 34 of 39 7.4 REQUESTS FOR ASSISTANCE TO GALLATIN COUNTY 7.4.1 REQUESTS TO OUTSIDE AGENCIES Requests for resource requests can be placed to the Emergency Management Duty Officer. The Duty Officer will work with other local agencies, counties, DNRC, and federal partners to fill the requests. 7.4.1.1 INFORMATION NEEDED FOR RESOURCE REQUESTS • What is needed? o Resource Typing or a description of capacities • How many are needed? • When do you need them? • Where do they report to? • What are the values at risk? • Is there an objective these resources are critical in achieving? 7.4.1.2 TYPICALLY REQUESTED RESOURCES • Helicopters o How much fire is there, do you need multiple or higher capacity? • Air Tankers o Could retardant buy you time? • Air Attack Platforms o Can you see the entire incident or have significant aircraft needs? • IR or Incident Awareness and Assessment (intel) aircraft o Do you know where the fire and/ or heat is? • High Complexity Sawyers o Are there high risk trees that need to be mitigated? • Hand Crews o Is there fire line that you can’t get water to or a lot of perimeter to secure? • Engines o Do you need resources to support future operational periods? • Smoke Jumpers or Rappelers o Is the fire inaccessible? 89 2026 Fire Operating Plan Page 35 of 39 8 FIRE CONTROL ORDINANCE The Chief of Emergency Management and Fire is responsible for administration of the Open Burning Permit system on behalf of the local fire protection agencies in accordance with regulations adopted under County Ordinance. Each fire protection agency in Gallatin County has certain responsibility for enforcement and approval of burning in their district. Gallatin County has contracted with Fluent IMS to provide an online burn permit system located at gallatinburnpermits.com. This system allows individuals to purchase and activate burn permits themselves throughout the Service Area (permits may also be purchased in person at several locations). Authorized users are able to view current burn activity as well as close open burning. County regulations allow the prohibition of burning for certain parts of the County. It is strongly suggested that agencies in adjacent geographic areas act in unison to avoid confusion with the public. Burn permit fees are collected in the Fire Control Fund for two purposes. First, all costs of operation and administration of the program are covered out of this fund. Second, remaining money is used to fund fire training for firefighters within Gallatin County. Agencies selling burn permits in person (collecting cash or check) are entitled to retain 60% of the burn permit fee as a processing fee. The other 40% will be submitted to the Gallatin County Treasurer for deposit into the Fire Control Fund. Burn permits sold online have 100% of the cost deposited into the Fire Control Fund. 8.1 BURN BANS Burn Bans are utilized to further reduce wildfire exposure beyond closing Open Burning during times of increased wildfire risk. Burn Bans must be implemented by the County Commission and the City Commissions by resolution and impose additional restrictions to reduce opportunities for new fires. When a Burn Ban is deemed necessary by a fire chief in Gallatin County, a request to the Chief of Emergency Management and Fire will be made to coordinate the request. The Chief of EM & Fire, or designee, will facilitate a conference call between all available fire protection agencies to discuss the request. If the consensus of the participating fire chiefs is to cease burning activity, the Chief of EM & Fire will request the County Commission to consider implementing a Burn Ban in accordance with the ordinance. A pre-approved joint resolution is in place specifically for the Big Sky area. Burn Bans are implemented on a wide area basis in pre-defined areas consisting of the Gallatin Valley, Big Sky area and West Yellowstone area. 8.1.1 EVALUATION CRITERIA Gallatin County has established the Northern Rockies Preparedness Levels as a triggering for evaluating our conditions. Preparedness Levels take into account a variety of factors across the Northern Rockies 90 2026 Fire Operating Plan Page 36 of 39 Geographic Area such as new fire starts, fires escaping initial attack, incident management teams assigned, resource availability, fuel conditions and weather. This provides a good trigger for the discussion on the potential need for a Burn Ban. Even if our conditions are not as dire as other places in Montana, the lack of available resources if we were to have a new fire could increase our local risk exposure and warrant additional restrictions. Preparedness Levels range from 1 to 5, with five being the most extreme. At Northern Rockies Preparedness Level 4 we should be having informal discussion about our conditions and where they might be heading. At Preparedness Level 5, ongoing formal discussions should be taking place about our current and expected risks. 8.1.2 BURN BAN RESTRICTIONS Exactly what is restricted can vary based on the situation. Typical items that are often considered consist of: • Ban on recreational fires. • Ban on burn barrels. • Restrictions on smoking outside. • Firearms shooting restrictions. • Restrictions on offroad travel. • Restrictions on any fires to gas powered devices with on/ off switches. • Restrictions on fireworks. • Use of combustible engine driven tools off paved areas (i.e. welding, chainsaws, etc). 8.2 TRAINING FUNDS Funding in the Fire Control Fund beyond what is needed to run the program will be used to support training for fire departments in Gallatin County. The training funds will primarily be used to help support bringing training classes into the county and to pay tuition for firefighters to attend classes. Agencies wishing to use these funds must submit a request in writing to the Gallatin County Chief of EM & Fire that outlines the training opportunity, who will be attending, and the cost. Costs for approved training shall be paid for by the individual being trained or their agency. Upon completion of the training, proof of attendance and submittal of documentation (e.g. invoices, claims and vouchers) must be submitted to the County Chief of EM & Fire. Gallatin County may then reimburse the costs by check. 91 2026 Fire Operating Plan Page 37 of 39 9 FIREFIGHTER INSURANCE Gallatin County maintains certain insurance for firefighters in the county as part of the county’s contribution to this program. Benefits are provided in excess of worker’s compensation for active firefighters in the county as follows: Supplemental Insurance Accidental Death and Dismemberment Catastrophic Loss Benefit Principal Sum: $25,000.00 Accidental Medical Expense Benefit Maximum Benefit Amount: $10,000.00 Deductible Amount: $0.00 Heart or Circulatory Malfunction Benefit (death) Principal Sum: $25,000.00 Accelerated Benefit (Living Benefit) Maximum Benefit Amount: $12,500.00 92 2026 Fire Operating Plan Page 38 of 39 Approval & Implementation Gallatin County Wildfire Operating Plan This operating plan is hereby approved by the Boards of Gallatin County and Madison County Commissioners and shall be filed with the Gallatin County Clerk and Recorder. This plan is effective June 1, 2026 and supersedes all previous editions and shall remain in effect until revised or rescinded. _______________________________________ ________________ Zach Brown, Chair Date Gallatin County Commission _______________________________________ ________________ Ron Nye, Chair Date Madison County Commission _______________________________________ ________________ Patrick Lonergan, Chief of EM & Fire Date 93 2026 Fire Operating Plan Page 39 of 39 10 AGREEMENT OF PARTICIPATION As a signatory to the 2026 version of the Gallatin County Fire Operating Plan, ________________________________________ is certifying that it agrees to the conditions and responsibilities outlined in this plan. Participating Agencies that have assigned resources, are mobilizing through the Gallatin County Supplemental Fire Project Agreement, or are maintaining personnel records in the Montana Incident Qualification System are agreeing to the respective responsibilities for the Participating Agencies and Gallatin County as outlined in this plan. Signatories hereby affirm the Gallatin County Fire Service Mutual Aid Agreement dated June 1, 2026 in Section 5 of the 2026 Fire Operating Plan has been reviewed and adopted pursuant to Section 7-33-2201 and 2022, and with Section 10-3-202, Montana Code Annotated effective upon signature. Signatories hereby affirm the Imminent Life Threat Automatic Mutual Aid Agreement dated June 1, 2026 is Section 6 of the 2026 Fire Operating Plan has been reviewed and the Participating Agency is is not participating in Imminent Life Threat Automatic Aid Agreement upon signature for Response Area___________________________________________________________________. Chief Elected Official Name Chief Elected Official Signature Title Date Fire Chief Name Fire Chief Signature Agency Name Date Patrick Lonergan Chief of Emergency Management & Fire ______________________________________ Gallatin County Signature 94 Memorandum REPORT TO:City Commission FROM:Bob Murray, Capital Project Manager Nick Ross, Director of Transportation and Engineer SUBJECT:A Resolution Authorizing the City Manager, Upon Approval of the City Attorney, to Sign the Right of Way Agreement, Warranty Deed, and All Other Necessary Documents to Complete Right of Way Acquisition and Effectuate Closing from Emil Anderson for the Fowler Avenue Connection MEETING DATE:July 21, 2026 AGENDA ITEM TYPE:Resolution RECOMMENDATION:Adopt a Resolution Authorizing the City Manager, Upon approval of the City Attorney, to Sign the Right of Way Agreement, Warranty Deed, and All Other Necessary Documents to Complete Right of Way Acquisition and Effectuate Closing from Emil Anderson for the Fowler Avenue Connection. STRATEGIC PLAN:4.3 Strategic Infrastructure Choices: Prioritize long-term investment and maintenance for existing and new infrastructure. BACKGROUND:The Department of Transportation and Engineering has recently completed final design and bid documents of Phase 1 of the Fowler Avenue Connection project. Phase 1 between Oak and Durston includes all roadway, utility, and multimodal elements approved in the scope of final design by Bozeman City Commission. In order for Phase 1 to advance to construction, right of way acquisition must be completed. This right of way agreement will purchase 5.261 acres, known as Public Road Tract 3-C shown in Figure 2 of Exhibit A, from owner Emil Anderson. Tract 3- C will be created through subdivision of the parcel owned by Mr. Anderson. Final annexation and subdivision to create Tract 3-C is now contingent upon approval of this right of way agreement. The city commissioned the most recent appraisal for this acquisition on June 18, 2025. The city's right of way agent for the project has determined that in his professional opinion, the appraisal is still valid. Staff recommends the final terms and cost of acquisition are appropriate based on appraised value, infrastructure need, and benefit to the community. The documents listed for authorization in this item are those the city will need executed to complete the property transfer once the tract is created. 95 UNRESOLVED ISSUES:None. ALTERNATIVES:As suggested by the Commission. FISCAL EFFECTS:Tract 3-C will be acquired for $5,000,000 from the Street Impact Fee Fund under Project SIF114. Project funding for Phase 1 of the Fowler Avenue Connection has been approved in the FY25-26 Operating Budgets. Cost of Tract 3-C acquisition is within the budgeted estimate for total right of way acquisition needed for the full Fowler Avenue Connection project. Attachments: Resolution_City_Anderson_Fowler_ROW.docx ExhibitA_City_Anderson_Fowler_ROW Agreement_Final.pdf ExhibitB_City_Anderson_Fowler_WarrantyDeed.pdf Fowler Anderson Appraisal Report 6.18.25 Report compiled on: June 10, 2026 96 COMMISSION RESOLUTION NO. XXXX A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF BOZEMAN, MONTANA, AUTHORIZING THE CITY MANAGER TO PURCHASE A TRACT OF LAND NECESSARY FOR THE PURPOSE OF COMPLETING FOWLER LANE AND ANNIE STREET. WHEREAS, the City of Bozeman finds it necessary to acquire certain real property to allow it to utilize such property for purposes of completing Fowler Lane and Annie Street; and WHEREAS, the City Commission annexed the real property into the City of Bozeman through passing Resolution 2026-47; and WHEREAS, the real property to be acquired will allow the City of Bozeman to build Fowler Lane from Oak Street to Durston Road; and WHEREAS, the real property to be acquired is described in the Right of Way Agreement, attached hereto as Exhibit “A” and by this reference incorporated herein; and WHEREAS, Bozeman Municipal Code section 2.08.100 authorizes the City to purchase any real property necessary for the use of the City; and WHEREAS, the City has obtained an appraisal of the real property on June 18, 2025, and the City has paid the appraised value for the real property; and WHEREAS, City agents have offered to purchase said real property by submission of a written offer, and the final written offer was accepted by the owner, Emil O. Anderson, and the City has been able to obtain the consent of the owner to sell said real property. 97 Page 2 of 2 NOW, THEREFORE, BE IT RESOLVED by the City Commission of the City of Bozeman, Montana, that it authorize the City Manager’s execution of the Right of Way Agreement for the purchase of real property described in Exhibit “A,” together with all necessary closing documents and accept the Warranty Deed, attached hereto as Exhibit “B,” to transfer ownership of the real property from Emil O. Anderson to the City of Bozeman. The City Attorney’s Office is authorized to effectuate any closing requirements necessary. AND be it further resolved by the City Commission of the City of Bozeman, Montana that it certifies to the following: PASSED AND APPROVED by the City Commission of the City of Bozeman, Montana, at a regular session thereof held on the 21st day of July, 2026. ___________________________________ Joey Morrison Mayor ATTEST: ________________________________________ MIKE MAAS City Clerk APPROVED AS TO FORM: ___________________________________ GREG SULLIVAN City Attorney 98 Right-of-Way Agreement Project Name: Fowler-Anderson Closing Project No.: 21263 Parcel: Public Road Tract 3-C, C.O.S. _________ SW1/4 Sec. 2 and SE1/4 Sec. 3, 2S, 5E List Names & Addresses of the Seller and Buyer: Seller: Buyer: Emil O. Anderson City of Bozeman 90 Moss Bridge Road 121 N. Rouse Avenue Bozeman, MT 59718 Bozeman, MT 59715 1. In consideration of the payments herein set forth and the specific agreements to be performed by the parties hereto and written in this Agreement, Emil O. Anderson of 90 Moss Bridge Road, Bozeman, MT 59718 (“Seller”) agrees to sell, and the City of Bozeman, a municipal corporation organized and existing under its Charter and the laws of the State of Montana, with a business address of 121 N. Rouse Ave., Bozeman, MT 59715 (“Buyer”) agrees to purchase, the real property identified above (the “Parcel”) pursuant to the terms and conditions stated herein. The Parcel is identified on the attached Figure 1 and Figure 2; the legal description for the Parcel will be finalized with the recording of the approved subdivision plat. The Parcel is a part of a larger property currently pending subdivision approval by Buyer (the “Subject Property”). Accordingly, the legal description for the Parcel will be finalized upon subdivision approval and recording of the plat. This Agreement is effective upon execution by the Parties and shall be binding upon the parties hereto and their respective heirs, devisees, executors, administrators, legal representatives, successors, and assigns. Seller will convey the Parcel to Buyer by warranty deed. Buyer will record the deed at closing to provide public notice of the transfer and protect Buyer’s ownership rights against future claims. Buyer shall be entitled to possess the Parcel when payment is received in full. 2. Seller hereby agrees that the compensation to be paid by Buyer, as described in Section 3 of this Agreement, includes full compensation for Seller’s interest and the interests of Seller’s life tenants, remaindermen, reversioners, lienors and lessees, and any and all other legal and equitable interests that are or may be outstanding and Seller agrees to discharge the same. 3. COMPENSATION FOR THE PARCEL (LAND AND IMPROVEMENTS): Warranty Deed 99 Public Road Tract 3-C: 5.261 acres (Figures 1 and 2, attached) $5,000,000.00 OTHER COMPENSATION N/A $0.00 Cost to Cure: N/A $0.00 TOTAL COMPENSATION: $5,000,000.00 4. IT IS UNDERSTOOD AND AGREED THAT BUYER SHALL MAKE PAYMENT AS FOLLOWS: Buyer agrees to pay consideration of $5,000,000.00 for the Property in a single, one-time lump-sum payment in cash or certified funds. Payment shall be made by Buyer at the time of closing as directed by Seller. Buyer acknowledges and agrees that Seller intends to structure the sale of the Property as part of a tax-deferred like-kind exchange pursuant to Section 1031 of the Internal Revenue Code (the “Exchange”). Buyer acknowledges and agrees that Seller’s rights under this Agreement may be assigned to a qualified intermediary to facilitate the Exchange. Buyer shall reasonably cooperate with Seller in effectuating the Exchange, including, without limitation, executing such assignments, escrow instructions, notices, and other documents as may be reasonably requested by Seller or Seller’s qualified intermediary or exchange accommodation titleholder. Buyer shall not be required to acquire or take title to any other property or otherwise participate in the Exchange beyond the purchase of the Property pursuant to this Agreement. 5. This Agreement is contingent upon the approval of the annexation of the Subject Property into the City of Bozeman and the Parties’ mutual agreement to the final configuration of the Certificate of Survey attached hereto as Figure 2, as may be revised, and the approval and recording thereof. If the foregoing contingencies are not met within ninety (90) days of the execution of this Agreement, this Agreement shall expire and shall be of no further force and effect, and the Parties hereto shall be released from all their obligations hereunder. 6. Buyer is responsible for completing the annexation and subdivision of the Subject Property. As of the date of this Agreement, the City Commission has annexed the subject property and assigned an appropriate zoning designation. Seller agrees to reasonably cooperate with the annexation and subdivision process and execute any required documents, at no cost to Buyer. 7. All water rights appurtenant to or used in connection with the Parcel, including but not limited to surface water rights, groundwater rights, statements of claim, certificates of water right, permits to appropriate water, exempt water rights, 100 decreed water rights, and any associated ditches, ditch rights, and ditch easements, shall convey with the Parcel. 8. All mortgages, judgments, and liens affecting the Parcel shall be paid, released, or otherwise satisfied by Seller at or prior to closing, unless otherwise provided herein. Seller agrees that no additional encumbrances, restrictions, easements, or other adverse title matters shall be placed against the Parcel subsequent to the effective date of the preliminary title commitment approved by Buyer. 9. Closing of the transaction described in this Agreement shall occur at a date mutually agreed upon by the parties, at a Title Company agreed upon by the parties. Provided, however, that Seller may extend the closing deadline by up to thirty (30) days from the date set forth in this Section 9 to facilitate Seller’s 1031 Exchange. Such extension shall be at Seller’s sole discretion. If Seller extends the closing deadline pursuant to this Section 9, Seller shall allow Buyer to access the Parcel during that thirty (30) day period solely for the purpose of conducting non-destructive and non-invasive work directly connected to the Buyer’s Fowler Avenue expansion project. Buyer shall defend, indemnify, and hold harmless Seller from and against any and all claims, demands, liabilities, losses, damages, costs, and expenses (including reasonable attorneys’ fees) arising out of or relating to Buyer’s (including Buyer’s contractors, agents, employees, and any other party accessing the Parcel at Buyer’s direction or permission) entry upon, inspection of, or activities conducted on the Parcel prior to Closing, except to the extent caused by Seller’s gross negligence or willful misconduct. Seller and Buyer will deposit with the Title Company all instruments and monies necessary to complete the purchase in accordance with this Agreement. Taxes and assessments from prior years, if any, shall be paid by Seller. Current taxes and special assessments shall be prorated between the Buyer and Seller as of the date of closing. Buyer shall pay for the cost of a standard policy of title insurance and the cost to clear title. Buyer agrees to pay the cost of the title escrow and recording fees. The Parties hereto have executed this agreement on the dates shown: Seller’s Statement: I understand that I am required by law to provide my correct taxpayer identification number(s) to the City of Bozeman and that failing to comply may subject myself to civil and criminal penalties. I agree to provide my correct taxpayer identification number(s) by submitting a completed and signed W-9 form. I further agree to provide the City with a completed and signed W-9 from all persons and/or entities receiving payments by assignment from me in this Agreement. I further agree and authorize the City to process the payments outlined in this agreement by withholding a percentage of the payments, if required by the IRS, if I fail to submit the W-9 form within 30 days of signing this Agreement. 101 BUYER SELLER By________________________________ By__________________________________ Chuck Winn, City Manager Emil O. Anderson, Owner APPROVED AS TO FORM: By_______________________________ Greg Sullivan, Bozeman City Attorney 102 FIGURE 1050SCALE:1" = 100'10050R/W TO BE ACQUIREDAREA: 229,182 SQFT 5.26 ACRESREMAINDER 1AREA: 132,752 SQFT 3.05 ACRESREMAINDER 2AREA: 72,808 SQFT 1.67 ACRESExisting buildingincluded with propertyto be acquired103 CERTIFICATE OF SURVEY No. 50 25 0 SCALE:1" = 50' 50 100 ”” FIGURE 2 104 Page 1 of 3 Fowler-Anderson Closing Public Road Tract 3-C RETURN TO: Bozeman City Clerk P.O. Box 1230 Bozeman, MT 59771-1230 WARRANTY DEED Emil O. Anderson, with a mailing address of 90 Moss Bridge Road, Bozeman, Montana 59718, the GRANTOR, in consideration of $1.00 and for other and valuable considerations, receipt of which is acknowledged, does hereby grant, bargain, sell, convey and confirm unto The City of Bozeman, a municipal corporation of the State of Montana, with a mailing address of P.O. Box 1230, Bozeman, Montana 59771-1230, GRANTEE, its successors and assigns, the fee title to and all its rights, title, and interest in and to, the following described real estate, situated in Gallatin County, Montana, to-wit: Public Road Tract 3-C of Certificate of Survey __________, situated in the SW1/4 of Section 2 and the SE1/4 of Section 3, Township 2 South, Range 5 East, P.M.M., City of Bozeman, Gallatin County, Montana, according to the official plat thereof on file and of record in the office of the Clerk and Recorder, Gallatin County, Montana. TOGETHER with all buildings, fixtures and improvements thereon and all rights-of-way, tenements, hereditaments, privileges and appurtenances thereto. TO HAVE AND TO HOLD unto GRANTEE, and GRANTEE’S successors and assigns, forever, subject to the following: a) Reservations and exceptions in patents from the United States and the State of Montana and in Acts authorizing the issuance thereof; b) Easements and rights-of-way, whether of record, prescriptive, visible upon the property, or ascertainable by inspection of the property; c) Mineral and royalty leases, conveyances, and reservations; d) Building, use, zoning, sanitary, environmental, and land use regulations and restrictions; e) Covenants, conditions, restrictions, easements, reservations, encumbrances, and all other matters of record; f) All matters affecting any water rights associated with the property, including all defects, deficiencies, limitations, claims, adjudication, and encumbrances affecting the same; and g) Taxes and assessments for the current year and subsequent years. 105 Page 2 of 3 Fowler-Anderson Closing Public Road Tract 3-C EXCEPT with reference to the items referred to in paragraphs (a) through (g), above, this deed is given with the usual covenants expressed in Montana Code Annotated § 30-11-110. DATED this day of , 20 . By: Name: Emil O. Anderson STATE OF MONTANA ) )ss. County of Gallatin ) On this day of ,20 ___, before me, the undersigned, a Notary Public for the State of Montana, personally appeared Emil O. Anderson, known to me to be the person whose name is subscribed to the within instrument, and acknowledged to me that he/she did execute the same. IN WITNESS WHEREOF, I have hereunto set my hand and affixed my Notarial Seal the day and year first above written. (SEAL) Notary Public for the State of Montana (Printed Name) Residing at My Commission Expires / /20 106 Page 3 of 3 Fowler-Anderson Closing Public Road Tract 3-C ACCEPTED: __________________________ CITY OF BOZEMAN by Chuck Winn title City Manager ATTEST: Mike Maas City Clerk STATE OF MONTANA ) )ss. County of Gallatin ) On this ________ day of ___________________, 20 , before me, a Notary Public for the State of Montana, personally appeared CHUCK WINN and MIKE MAAS, known to me to be the City Manager and City Clerk, respectively, of the City of Bozeman and the persons whose names are subscribed to the within instrument, and acknowledged to me that they executed the same for and on behalf of the City of Bozeman. IN WITNESS WHEREOF, I have hereunto set my hand and affixed my Notarial Seal the day and year first above written. (SEAL) Notary Public for the State of Montana (Printed Name) Residing at My Commission Expires / /20 107 APPRAISAL REPORT OF ANDERSON PARCEL AT THE INTERSECTION OF DURSTON ROAD AND FOWLER AVENUE BOZEMAN, MONTANA FOR SANBELL -North is to the right PREPARED BY: NICHOLAS J. HOGAN, MAI HOGAN REAL ESTATE APPRAISAL GROUP, LLC 7901 SADDLEBOW TRAIL MISSOULA, MT 59808 108 TABLE OF CONTENTS SUMMARY OF SALIENT FACTS AND CONCLUSIONS ........................................................ 7 SCOPE OF WORK ....................................................................................................................... 10 RECORD OWNER ....................................................................................................................... 17 LOCATION OF PROPERTY....................................................................................................... 17 LEGAL DESCRIPTION .............................................................................................................. 17 REASONABLE EXPOSURE TIME & MARKETING TIME .................................................... 18 PROPERTY RIGHTS APPRAISED ............................................................................................ 19 GENERAL AREA MAP .............................................................................................................. 22 GENERAL AREA AND NEIGHBORHOOD DATA AND TRENDS ....................................... 23 GOOGLE EARTH PHOTOGRAPH ............................................................................................ 38 PLAT MAP ................................................................................................................................... 39 SUBJECT PHOTOGRAPHS........................................................................................................ 40 PROPERTY DESCRIPTION ....................................................................................................... 42 TAXES AND ASSESSMENTS ................................................................................................... 46 LARGER PARCEL ...................................................................................................................... 51 SALES COMPARISON APPROACH ......................................................................................... 55 VALUE ESTIMATE AND CERTIFICATION ........................................................................... 96 ADDENDA Assumptions & Limiting Conditions Appraiser Qualifications & License 109 7901 Saddlebow Trail Missoula MT 59808 Ph. (406) 239-6425 nickhogan@gmail.com kellih.mt@gmail.com Nicholas J. Hogan, MAI MT, ID & WY General Certified - HOGAN REAL ESTATE APPRAISAL GROUP, LLC - 3 June 18, 2025 Chris Naumann Sanbell 106 East Babcock Street, Ste L1 Bozeman, MT 59715 RE: Appraisal report Anderson property; intersection of Durston Road and Fowler Avenue, Bozeman, Montana Dear Mr. Naumann: In response to the engagement letter provided to this firm, the following appraisal report, defined by the Scope of Work, is hereby presented in the requested narrative format containing 97 pages plus addenda. Under general requirements, the appraisal has been prepared in conformance with the Uniform Standards of Professional Appraisal Practice (USPAP) as promulgated by the Appraisal Standards Board of the Appraisal Foundation. In addition, the appraisal is presented in compliance with supplemental standards identified in the engagement letter which are consistent with these client requirements. The Scope of Work is key to understanding this appraisal service and the report option requested. Please read that section carefully as it most clearly defines the service rendered. Specific reference to the issue of competency is required. It is recognized that I, Nicholas J. Hogan, MAI, have adequate current and practical experience in the appraisal of commercial properties in the City of Bozeman as well as throughout the State of Montana. I have completed a number of appraisals of property in the immediate area, so I am confident that I possess the expertise to complete this appraisal assignment competently. The subject property is located in the northwesterly area of the city of Bozeman, Montana. The property under study here consists of a single irregular shaped tract located on the northerly side of Durston Road at the intersection of Fowler Avenue, and at the northeasterly corner of Hanson Street and Rose Street. The purpose of this appraisal is to estimate the before and after values associated with the proposed right of way easement. The subject’s general neighborhood consists of the area to the north of West Babcock Street and west of North 19th Avenue. North 19th Avenue is a commercial arterial that runs through this portion of Bozeman, Montana and West Babcock Street is considered a secondary arterial. The immediate surrounding area consists mainly of residential uses and limited commercial uses influenced by North 19th Avenue to the east of the neighborhood. The subject parcel contains a gross site area of 9.979 acres. Durston Road sets the southerly 110 - HOGAN REAL ESTATE APPRAISAL GROUP, LLC - 4 boundary of the subject and there is physical access from that roadway. Hanson Street sets the most westerly boundary of the subject property and provides physical and legal access. Annie Street, which runs perpendicular to the subject at the northwesterly corner, also provides access. There currently is not physical access from any of the streets along the easterly boundary, but in speaking with one of the engineers for the city transportation department, future development would likely extend at least some of the streets to the easterly boundary of the subject and the current right of way plans call for an extension of Annie Street. There is an irrigation ditch that runs north to south through the center of the property that would impact development given the setbacks and easements associated. Improvements include a 2,080 sq. ft., wood frame building on the property. County records indicate this improvement was built in 1978. There is also some perimeter fencing. This structural improvement has reached the end of its useful life given the highest and best use. This is an older structure in poor condition. This property has no remaining value either before or after. The subject is zoned Semi-Rural Residential by the county and the adjacent properties are a mix of city and county residential zoning. The immediate neighborhood ranges from single-family residential to high density, multi-family residential zoning. Those directly adjacent to the subject consist of county residential, single-family, and low density residential. The subject property has never been annexed by the City of Bozeman. The scope of work from the client requested a value assuming the subject property is zoned R3, in the after. Please refer to the hypothetical conditions for a more complete discussion. The surrounding zoning consists of a mix of R1, R2, R3, and R4. There are no flood hazards associated with this property. This is a revised report. The original report was dated April 29, 2025. This report and analysis are based on additional facts provided by the City of Bozeman, and additional discussions with the client, subsequent to the original report. Primarily, there would also be significant road development costs including 100% payment for Annie Street and 20% payment for Fowler Avenue as well as upgrades and connection costs for utilities. These two facts were not known at the time of the original appraisal necessitating a subsequent and revised report. The hypothetical condition of a zone change in the after condition was also changed to R3 instead of R2. Property rights appraised are assumed to be an encumbered fee simple title. This is based on the concept that any utility easements do not detrimentally impact the use or value of the property. I am unaware of any environmental hazards associated with the historical use of this property or as to the probability of contamination from adjacent uses. I know of no adverse easements or encroachments. “Before Imposition of the Right of way Easement” Based upon my investigations, studies, and analysis, my opinion of the fee simple market value of the subject site, before the imposition of the R/W acquisition, in its’ “as is” condition, considering assumptions and limiting conditions discussed herein and as of April 14, 2025, to be: 111 - HOGAN REAL ESTATE APPRAISAL GROUP, LLC - 5 Category Amount Subject Size 346,202 Per SF $24.00 Before Road/Utility Costs $8,308,848 Less Road/Utility Costs $3,121,795 Net Indicated Value $5,187,053 Per SF Net Site Area $14.98 Rounded to, before $5,190,000 Before -North is to the right “After Imposition of the Right of way Easement” Based upon my investigations, studies, and analysis, my opinion of the fee simple market value of the subject site, after the imposition of the R/W acquisition, in its’ “as is” condition, considering assumptions and limiting conditions discussed herein and as of April 14, 2025, to be: 112 - HOGAN REAL ESTATE APPRAISAL GROUP, LLC - 6 Category Amount Subject Size 166,106 Per SF $30.00 Before Road/Utility Costs $4,983,180 Less Road/Utility Costs $2,466,753 Net Indicated Value $2,516,427 Per SF Net Site Area $15.15 Rounded to, after $2,520,000 After Your attention is invited to the data found within the body of this report which, in part, is the foundation of this conclusion. I wish to thank you for this opportunity; should you find a need for this firm's services again, please do not hesitate to contact me. Professionally yours, HOGAN REAL ESTATE APPRAISAL GROUP, LLC Nicholas J. Hogan, MAI MT General Certificate No. REA-RAG-LIC- 370 Expires: 3/31/2026 113 - HOGAN REAL ESTATE APPRAISAL GROUP, LLC - 7 SUMMARY OF SALIENT FACTS AND CONCLUSIONS RECORD OWNER: Emil O. Anderson LOCATION OF PROPERTY: Northerly side of Durston Road at the intersection of Fowler Avenue. PROPERTY RIGHTS APPRAISED: Fee Simple; before and after acquisition of the right of way. SCOPE OF WORK: Provide opinion of value based on the “as is” condition of the real property described herein before and after acquisition of the right of way. DEFINITION OF VALUE: Market Value; specific definition found in the report. DATE OF VALUE: April 14, 2025 INTENDED USE: The intended use will be to assist the client and intended users in appropriately compensating the property owners for the imposition of the right of way. CLIENT/INTENDED USER: The client is identified as Sanbell. Intended users are Sanbell, Clear Route, as well as the City of Bozeman. PRESENT USE: Vacant land. HIGHEST AND BEST USE, BEFORE: Single family residential development. HIGHEST AND BEST USE, AFTER: Single family residential development. SITE DESCRIPTION: The subject property is located in the northwesterly area of the city of Bozeman, Montana. The property under study here consists of a single irregular shaped tract located on the northerly side of Durston Road at the intersection of Fowler Avenue, and at the northeasterly corner of Hanson Street and Rose Street. The purpose of this appraisal is to estimate the before and after values associated with the proposed right of way easement. The subject’s general neighborhood consists of the area to the north of West Babcock Street and west of North 19th Avenue. North 19th Avenue is a commercial arterial that runs through this portion of Bozeman, Montana and West Babcock Street is considered a secondary arterial. The 114 - HOGAN REAL ESTATE APPRAISAL GROUP, LLC - 8 immediate surrounding area consists mainly of residential uses and limited commercial uses influenced by North 19th Avenue to the east of the neighborhood. The subject parcel contains a gross site area of 9.979 acres. Durston Road sets the southerly boundary of the subject, and there is physical access from that roadway. Hanson Street sets the most westerly boundary of the subject property and provides physical and legal access. Annie Street, which runs perpendicular to the subject at the northwesterly corner, also provides access. There currently is no physical access from any of the streets along the easterly boundary, but in speaking with one of the engineers in the city transportation department, future development would likely extend at least some of the streets to the easterly boundary of the subject. These streets include Farmall Street, Annie Street, Lily Drive, Rose Street, and Oliver Street. There is an irrigation ditch that runs north to south through the center of the property. Improvements include a 2,080 sq. ft., wood frame building on the property. County records indicate this improvement was built in 1978. There is also some perimeter fencing. This structural improvement has reached the end of its useful life given the highest and best use. This is an older structure in poor condition. This property has no remaining value either before or after. The subject is zoned Semi-Rural Residential by the county and the adjacent properties are a mix of city and county residential zoning. The immediate neighborhood ranges from single-family residential to high density, multi-family residential zoning. Those directly adjacent to the subject consist of county residential, single-family, and low density residential. The subject property has never been annexed by the City of Bozeman. The scope of work from the client requested a value assuming the subject property is zoned R3 in the after condition. Please refer to the hypothetical conditions for a more complete discussion. The surrounding zoning consists of a mix of R1, R2, R3, and R4. There are no flood hazards associated with this property. 115 - HOGAN REAL ESTATE APPRAISAL GROUP, LLC - 9 RIGHT OF WAY EASEMENT DESCRIPTION: -North is to the right The proposed easement consists of an extension of Fowler Avenue to the north as well as an extension of Annie Street to the west. The extension of Fowler Avenue contains 4.85 acres, and the extension of Annie Street contains 0.41 acres. The total acquisition area is 5.26 acres or 229,024 ft.². Please refer to other sections of this report for a discussion of the net site area, in the after. The net site area consists of those areas north and south of Annie Street net of the ditch setbacks and no build areas. Fowler Street 4.85 Annie Street 0.41 Acquisition 5.26 Area 1 57,605 Area 7 108,501 Net Site Area, After 166,106 After 116 - HOGAN REAL ESTATE APPRAISAL GROUP, LLC - 10 SCOPE OF WORK The Scope of Work was previously defined as the Scope of the Appraisal. Based on requirements of the Uniform Standards of Professional Appraisal Practice (USPAP – 2024) promulgated by the Appraisal Standards Board of the Appraisal Foundation and the guide notes to the Standards of Professional Appraisal Practice adopted by the Appraisal Institute, this has become the primary element defining the appraisal conducted here. USPAP involves binding requirements and specific guidelines that deal with the procedures to be followed in developing an appraisal, an analysis or opinion and with the reporting or communication of that appraisal opinion defined as Standards 1 & 2. The appraisal service and reporting option must be consistent with the Scope of Work defining the appraisal/consulting service and how it is to be communicated. This service complies with the regulatory requirements of the State of Montana administered by the Montana Board of Appraisers based on compliance with Standards & Ethics defined within USPAP. The scope of work defines the appraiser’s conclusions as to what is deemed necessary to provide a credible result within context of the client/intended user Scope of Work Description. There is a new response published by The Appraisal Institute relative to Scope of Work that addresses USPAP – 2024. For each appraisal and appraisal review assignment, the appraiser must 1.) identify the problem, 2.) determine and perform the work necessary to develop credible assignment results and 3.) disclose the scope of work in the report. Identify the problem to be solved: Client and any other intended users: The client is identified as Sanbell. Other intended users include Clear Route and the City of Bozeman. Although the landowners will be provided with a copy of the appraisal, they are not recognized as intended users. Intended use of the appraiser’s opinions and conclusions: The intended use of the report will be to assist the client and intended users in appropriately compensating the property owners for the imposition of the right of way acquisition for the Fowler Avenue project right-of-way. Type and definition of value: The purpose of this appraisal is to estimate the market value of the property described herein and commonly referred to as the subject property. The valuation is based on the "as is" condition of the property before and after acquisition of the right of way. 117 - HOGAN REAL ESTATE APPRAISAL GROUP, LLC - 11 The current fair market value is defined by the State of Montana and found in state statute MCA70-30-313 and is as follows: Current fair market value is the price that would be agreed to by a willing and informed seller and buyer, taking into consideration, but not limited to the following factors: 1. The highest and best reasonably available use and its value for such use, provided current use may not be presumed to be the highest and best use; 2. The machinery, equipment, and fixtures for the part of the real estate taken; 3. Any other relevant factors as to which evidence is offered. Effective date of the appraiser’s opinions and conclusions: The effective date of the appraiser’s opinions and conclusions is the date of the inspection. The subject inspection occurred on April 14, 2025. That reflects the date of the inspection and is the “as is” date of value. Subject of the assignment and its relevant characteristics: The subject property is located in the northwesterly area of the city of Bozeman, Montana. The property under study here consists of a single irregular shaped tract located on the northerly side of Durston Road at the intersection of Fowler Avenue, and at the northeasterly corner of Hanson Street and Rose Street. The purpose of this appraisal is to estimate the before and after values associated with the proposed right of way easement. The subject’s general neighborhood consists of the area to the north of West Babcock Street and west of North 19th Avenue. North 19th Avenue is a commercial arterial that runs through this portion of Bozeman, Montana and West Babcock Street is considered a secondary arterial. The immediate surrounding area consists mainly of residential uses and limited commercial uses influenced by North 19th Avenue to the east of the neighborhood. The subject parcel contains a gross site area of 9.979 acres. Durston Road sets the southerly boundary of the subject, and there is physical access from that roadway. Hanson Street sets the most westerly boundary of the subject property and provides physical and legal access. Annie Street, which runs perpendicular to the subject at the northwesterly corner, also provides access. There currently is no physical access from any of the streets along the easterly boundary, but in speaking with one of the engineers in the city transportation department, future development would likely extend at least some of the streets to the easterly boundary of the subject. These streets include Farmall Street, Annie Street, Lily Drive, Rose Street, and Oliver Street. There is an irrigation ditch that runs north to south through the center of the property. Improvements include a 2,080 sq. ft., wood frame building on the property. County records indicate this improvement was built in 1978. There is also some perimeter fencing. The structural improvement has reached the end of its useful life given the highest and best use. This 118 - HOGAN REAL ESTATE APPRAISAL GROUP, LLC - 12 is an older structure in poor condition. This property has no remaining value either before or after. The subject is zoned Semi-Rural Residential by the county and the adjacent properties are a mix of city and county residential zoning. The immediate neighborhood ranges from single-family residential to high density, multi-family residential zoning. Those directly adjacent to the subject consist of county residential, single-family, and low density residential. The subject property has never been annexed by the City of Bozeman. The scope of work from the client requested a value assuming the subject property, in the after condition is zoned R3. Please refer to the hypothetical conditions for a more complete discussion. The surrounding zoning consists of a mix of R1, R2, R3 and R4. There are no flood hazards associated with this property. Assignment conditions: For the reader’s edification, I have incorporated definitions for hypothetical conditions and extraordinary assumptions. These definitions are taken from the current version of USPAP. HYPOTHETICAL CONDITION: a condition, directly related to a specific assignment, which is contrary to what is known by the appraiser to exist on the effective date of the assignment results but is used for the purpose of analysis. Comment: Hypothetical conditions are contrary to known facts about physical, legal, or economic characteristics of the subject property; or about conditions external to the property, such as market conditions or trends; or about the integrity of data used in an analysis. EXTRAORDINARY ASSUMPTION: an assignment specific assumption as of the effective date regarding uncertain information used in an analysis which, if found to be false, could alter the appraiser’s opinions or conclusions. Comment: Uncertain information might include physical, legal, or economic characteristics of the subject property; or conditions external to the property such as market conditions or trends; or the integrity of the data used in an analysis. -Hypothetical Conditions As of the effective date of this appraisal report, the right of way easement has not been imposed and if all parties are in agreement, the easement will be imposed at a future date. The value of the subject site after the imposition of the right of way easement is subject to this easement being recorded and imposed on the subject site as explained within this report. A necessary hypothetical condition for the after valuation, assumes the right of way easement is in effect. 119 - HOGAN REAL ESTATE APPRAISAL GROUP, LLC - 13 The subject property is currently zoned Semi-Rural Residential which is a result of the property never being annexed into the City of Bozeman. Development sprawl has generally surrounded the subject property with a mixture of R1, R2, R3, and R4 zoning. Scope of work from the client requested a hypothetical condition the subject property is zoned R3 for the after condition. Therefore, I assumed the subject property has been annexed into the City of Bozeman and is zoned R3 for the after condition. -Extraordinary Assumptions: There are fairly significant development costs associated with the subject property. These include utility costs for storm, water, sewer, and road costs associated with both Fowler Avenue and Annie Street. In the before analysis the costs are associated with a percentage of Fowler Avenue improvements and all costs associated with Annie Street improvements. The costs and their proportionate share in both the before and after were provided by the client, Sanbel. I have made the extraordinary assumption that these costs and their proportionate share associated with the subject property in both the before and after are reasonable estimations based on discussion with the client. I reserve the right to revise this report should these costs and their proportionate share associated with the subject property be found to be inaccurate. These costs are significant and have a direct impact on value both in the before and after analysis. The City of Bozeman, on numerous occasions, has indicated their desire for the subject property to be annexed into the City of Bozeman and there would be no significant issues with annexation or rezone. In the before analysis, I have assumed the subject property could be re-zoned and annexed into the City of Bozeman without significant issues. -Jurisdictional Exceptions: None. The use of extraordinary assumptions and hypothetical conditions within the report should be viewed within the context that their use might affect the assignment results. Determine and perform the scope of work necessary to develop credible appraisal assignment results: The extent of the Property Identification involves physical characteristics of the property such as land size, shape, access, frontage, special features, detrimental conditions, utilities, etc. There is also the need to fully identify legal characteristics such as the fee simple estate limited by easement, covenants, restrictions, and other encumbrances relevant to the valuation problem. In this appraisal, the extent of the subject inspection involved a complete viewing of the subject property. It is my opinion that I am qualified to provide this appraisal service. Qualifications have been included within the addendum to the report, and these identify or serve as evidence of the experience and expertise (competency) to provide this service. Specific to the property and 120 - HOGAN REAL ESTATE APPRAISAL GROUP, LLC - 14 location of the subject of this appraisal, it is recognized that I routinely provide appraisal services within this classification of real property and within this market area. As such, the conclusion is expressed that sufficient knowledge and experience combined with my professional qualifications are adequate to comply with competency requirements of USPAP. Specifically, to the property and location of the subject of this appraisal, some recognize that I routinely provide appraisals of development properties throughout Montana. I have worked as a contract appraiser for the Idaho Department of Lands, Idaho Forest Group, Montana DOT, Montana Fish Wildlife & Parks, Montana DNRC, Montana Department of Justice, AVSO, CSKT, IRS and conservation groups such as Lemhi Land Trust, Trust for Public Lands, The Nature Conservancy, Rocky Mountain Elk Foundation, etc. This serves as the basis of my qualifications to provide this service. As requested by the client, the problem to be solved is a traditional valuation assignment that requests an opinion of the market value of the real property interest identified. This specifies the condition of the property, unless otherwise very specifically stated, the appraisal is based on the “as is” condition of the subject property, before and after imposition of the right of way easement, as of the effective date of the appraisal. In terms of the appraisal service requested, the subject underlying land represents the basis of the analysis. No value was given to the existing improvement given the overall age, quality and condition as well as the highest and best use of the subject property. The property type suggests that not all three valuation methodologies are relevant. Peer review would expect to see the sales comparison approach with this appraisal. Given there are no improvements, the cost approach will not be utilized, nor would the income approach. Relevant to the preceding paragraph, factual market data gathered or researched for this appraisal will include land sales in similar areas of the city of Bozeman. The data will be utilized in arriving at the Highest and Best Use for the subject and to estimate the market value of the property based on that conclusion of highest and best use. The subject property is currently located within Gallatin County and has never been annexed into the City of Bozeman. The city indicated they have always desired the subject property to be within the city limits and therefore, would have City of Bozeman zoning. The planning department indicated the subject property could likely be zoned R2 or R3 and a zoning change would not be a significant factor. Scope of work requires an analysis of the subject property in the after, assuming an R3 zoning which was completed under a hypothetical condition. Therefore, the analysis revolves around similar type properties in the subject immediate area with a similar type zoning. The sales represent a mixture of closed sales as well as under contract or pending indications and current listings of vacant properties with a similar highest and best use. I also included a number of primary sales in and around the North 19th Avenue corridor. These are seen as secondary with primary emphasis on the sales with residential zoning. It is recognized that Montana is a non-disclosure state and verification of sales is commonly handled through real estate agent confirmation as well as buyer and/or seller verification. There are times when the confirming party does not wish to be identified or where the price is not to be 121 - HOGAN REAL ESTATE APPRAISAL GROUP, LLC - 15 divulged in an appraisal report. All these elements are considered appropriate and common under peer review. There are MLS services to assist in the appraisal research, but private sources are also consulted as well as individual investors, owner/operators, management companies, etc. for market data. I have access to the major MLS services in Montana and the data was primarily taken from the Big Sky Country MLS Service which services the greater Bozeman area. It is acknowledged that I lack special expertise or knowledge regarding the detection and measurement of hazardous substances. For this appraisal, I have not been provided with a Phase I or Phase II environmental audit relating to this topic. I have assumed there to be no existing environmental concerns relating to the subject property and this is a more typical assumption and limiting condition. There are no known cultural resource issues affecting the subject. Appraisal Problem This is a relatively complex appraisal assignment. The subject property is situated in the path of development in a northwesterly area of Bozeman. The subject property is generally surrounded by existing single-family residential development but has never been annexed into the City of Bozeman and is representative of an older and misplaced zoning given the surrounding development. In addition, the subject property would have significant development costs consisting of road costs and utility costs in both the before and after analysis. In the before, the subject property would have total road and utility costs associated with Annie Street of $1,949,222. Utility costs associated with Fowler Avenue are $655,042. Total road costs for Fowler Avenue are $2,587,653. The subject property would be required to pay 20% of those costs or $517,531. Total costs for Fowler are $1,172,573. Therefore, the total cost associated with the subject property in the before our $3,121,795. 122 - HOGAN REAL ESTATE APPRAISAL GROUP, LLC - 16 In the after condition the subject property would be responsible for all of the road and utility costs for Annie Street and only the 20% of Fowler Avenue. Total development cost in the after are estimated at $2,466,753. The sales comparison approach search centered on properties with a reasonably similar location, development potential, size as well as zoning and other physical features. Few sales were uncovered given the overall size of the subject property and primary market area. Therefore, the search area for primary sales was expanded into all areas of the city of Bozeman. There is single- family residential development occurring in most areas of Bozeman including the subject Total Costs Amount Annie Street Road and Utilities $1,949,222 Annie Storm $273,250 Annie Water $95,256 Annie Sewer $117,482 Annie Street Road Costs $1,463,234 Fowler Street Road and Utilities $3,242,695 Fowler Storm $415,815 Fowler Water $44,633 Fowler Sewer $194,594 Fowler Road Costs $2,587,653 Anderson 20% $517,531 Anderson Costs Amount Fowler $1,172,573 Annie $1,949,222 Total Anderson Costs $3,121,795 Before Development Costs, After Amount Annie Street Road and Utilities $1,949,222 Fowler Street $517,531 Total, After $2,466,753 123 - HOGAN REAL ESTATE APPRAISAL GROUP, LLC - 17 immediate neighborhood and competing neighborhoods as well as areas farther south in proximity to Montana State University. There are a number of sales that had a single-family residential development highest and best use, similar to the subject property. Overall, I believe the indication of market value is reasonably well supported via the sales comparison approach after deduction for road and utility costs for both Annie Street and Fowler Avenue. Disclose the scope of work in the report: The discussion above outlines the problem to be solved and the appropriate scope of work to solve that problem. Report Option - Standard Rule 2-2: The 2024 USPAP edition has the following reporting options. These are Appraisal Report or Restricted Appraisal Report. The rule states that it must be prominently stated which report option is used. Further, the rule states “An appraiser may use any other label in addition to, but not in place of, the label set forth in this Standard for the type of report provided.” It is my opinion that this allows an appraiser to include the descriptive phrase of Summary Appraisal Report, Narrative Appraisal Report, or Self-Contained Appraisal Report. These terms clearly form around the core description which is “Appraisal Report.” For this appraisal, the reporting option is an Appraisal Report. The client requested an Appraisal Report in a Summary Report Format. In compliance with their request, the reporting option is simply defined as a Summary Report Format. RECORD OWNER The subject property was found to be under the ownership of Emil O. Anderson and has been since June 18, 1996. There have been no listings, options, or pending sales of the subject property within the prior three years. LOCATION OF PROPERTY The subject property is located in the northwesterly area of the city of Bozeman, Montana. The property consists of a single irregularly shaped tract located on the northerly side of Durston Road at the intersection of Fowler Avenue, and at the northeasterly corner of Hanson Street and Rose Street. LEGAL DESCRIPTION S03, T02 S, R05 E, ACRES 9.979, TRACT 4 E2E2SE4 & W2W2SW4 SEC 2 LESS RW 124 - HOGAN REAL ESTATE APPRAISAL GROUP, LLC - 18 REASONABLE EXPOSURE TIME & MARKETING TIME It is a requirement of the Uniform Standards of Professional Appraisal Practice (USPAP) to incorporate discussion and analysis of Exposure Time within a market value analysis of the subject property. USPAP 2024 defines exposure time as: An opinion, based on supporting market data, of the length of time that the property interest being appraised would have been offered on the market prior to the hypothetical consummation of a sale at market value on the effective date of the appraisal. It is often assumed that this is consistent with the concept of Marketing Time. This has been defined within, The Dictionary of Real Estate Appraisal, Seventh Edition, published by The Appraisal Institute as follows: An opinion of the amount of time to sell a property interest at the concluded market value or at a benchmark price during the period immediately after the effective date of an appraisal. Marketing time differs from exposure time, which precedes the effective date of an appraisal. (Advisory Opinion 7 and Advisory Opinion 35 of the Appraisal Standards Board of The Appraisal Foundation address the determination of reasonable exposure and marketing time.) The simple issue between these two definitions is one of historical evidence. Exposure time is always presumed to precede the effective date of the appraisal, and marketing time is the prospective or future occurrence. These may be the same in a stable market or opposite trends in a changing market. The situation could be a relatively weak or soft market noted by historical evidence, yet current trends reflect a strong demand and investor expectations for continued strong demand. That could present opposite exposure time and marketing time discussions/conclusions. Sale No. Days on Market List to sale Sale No. 1 97 86% Sale No. 2 133 94% Sale No. 3 51 168% Sale No. 4 41 100% Sale No. 5 182 100% Sale No. 6 821 90% Sale No. 7 96 96% 125 - HOGAN REAL ESTATE APPRAISAL GROUP, LLC - 19 The market evidence found and discussed within this appraisal have shown historical evidence of exposure time for this type of property to be twelve months. For a projection of marketing time, the current market has an inventory of similar property types that demonstrates a market in- balance. As such, there is an expectation that marketing time will be similar to that shown for exposure times. PROPERTY RIGHTS APPRAISED Property Rights Appraised, before: All surface rights entitled to the subject parcel subject to the exceptions of record noted in schedule B of the provided title commitment and subject to the hypothetical condition and extraordinary assumption. Property Rights Appraised, after: All surface rights entitled to the subject parcel subject to the exceptions of record noted in schedule B of the provided title commitment and subject to the hypothetical condition and extraordinary assumption. As is commonly noted in title insurance policies, the exceptions to the insurance relate to easements, claims of easements or encumbrances, encroachments, encumbrance, violation, variation, or adverse circumstances affecting the title, etc., that are not shown in the public records. Property rights appraised are assumed to be an encumbered fee simple title. I have accepted no responsibility for the marketability of the title, and it is recognized that I am not a title examiner and have not had access to an abstract of title or any detailed information regarding the legal opinion of vestiture of title. It is routinely understood that utility easements are common to most real property. I will address and provide a detailed discussion as to their existence on the subject property only if it is deemed that they impact (presumed negatively) the valuation or use of the property. Otherwise, the specific notation of existing easements will be limited to discussion in this section of the report. I have assumed that there are no environmental hazards or contaminations impacting the value and/or use of this property. This refers to both site contamination (hazardous waste) issues as well as structural contamination issues. The ditch easement discussed within this report does have a fairly significant impact on development potential in terms of physical characteristics. There are setbacks associated and noted as Area 2, Area 3, Area 8, and Area 9 in the sketch and tabulation below. 126 - HOGAN REAL ESTATE APPRAISAL GROUP, LLC - 20 Gross Site Area 434,673 Area 2 15,213 Area 3 11,214 Area 8 24,326 Area 9 37,718 Ditch Setbacks 88,471 Net Site Area, Before 346,202 Before 127 - HOGAN REAL ESTATE APPRAISAL GROUP, LLC - 21 128 - HOGAN REAL ESTATE APPRAISAL GROUP, LLC - 22 GENERAL AREA MAP 129 - HOGAN REAL ESTATE APPRAISAL GROUP, LLC - 23 GENERAL AREA AND NEIGHBORHOOD DATA AND TRENDS Subject Location: The subject property is located in the northwesterly area of Bozeman, Montana. This is generally a residential neighborhood with good linkages to all areas of Bozeman. Social Factors: According to the U.S. Census Bureau, the City of Bozeman’s estimated population increased from 36,440 in 2010, to 37,619 in 2012, an estimated increase of 1,179 people or 3.2%. The 2015 population estimate is determined to be 40,319, which was an increase of 7.2% (2,700 people) from the 2012 estimate. The estimated 2021 population for the City of Bozeman is 51,574 people and the 2023 estimated population for Bozeman is 55,042 people, which is another 6.7% increase over one year. In order to accommodate increasing population and business growth, new land for residential, commercial, and industrial development is annexed to the city. In 2010, the city was approximately 12,318.93 acres (19.25 square miles) in size. The total amount of acreage annexed into the city for 2013 was 111.02 acres, which increased the total size of the city to 12,777.67 acres or roughly 19.96 square miles. The City of Bozeman is characterized by a smaller average household size and a smaller portion of families than Gallatin County as a whole. Bozeman has an average household size of 2.27 persons, while the average household size for Gallatin County is 2.49 people. Bozeman also exhibits a lower homeownership rate than the county as a whole, primarily due to the student body of Montana State University. In addition, the population of Bozeman is considerably younger than Gallatin County as a whole. The estimated median ages of Bozeman and Gallatin County residents in 2000 were 30.5 years and 33 years, respectively. The median age for Montana residents for that year was just over 36 years. Bozeman has transformed over the past decade from a primarily agriculturally based community to a tourism related community. The attractions to Bozeman and Gallatin County are due to the high quality of life. Overall, crime rates are low and there are many cultural experiences and outdoor activities such as snow skiing, fly-fishing, hiking trails, and other outdoor pursuits. Economic Factors: Bozeman is a slightly differing economy than many parts of Montana. One primary difference relates to the fact there are fewer large employers in this market. The largest primary employer in Bozeman is Montana State University. The economy of Bozeman and Gallatin County is broad- based and diverse with over 5,300 establishments that employ over 42,000 people. Major sectors of the economy include construction, government, manufacturing, technology, retail, service, and agricultural all which play significant roles. Montana State University employs over 3,500 permanent faculty and staff as well as graduate teaching and research 130 - HOGAN REAL ESTATE APPRAISAL GROUP, LLC - 24 assistance. Montana State University also employs over 2,000 students in part-time jobs. Overall, the student body of Montana State University has a significant effect on the local economy. Other large employers consist of the State of Montana, Gallatin County, the City of Bozeman, Bozeman Deaconess Hospital, Right Now Technologies, and Walmart. As the county’s employment base continues to diversify, the economic health will be buffered from a downturn in any of the county’s key industries. After subdivision activity near Bozeman peaked in the early 1980's, activity slowed to a point in 1986 where one major subdivision was submitted for approval and was turned down. This was primarily due to the lack of need at that time, and no subdivisions were submitted for approval in 1987. Subdivision activity had resumed with vigor until the beginning of 2008 when construction activity declined and continued to decrease at an accelerated rate. That has once again changed and there is significant construction activity in the Bozeman market again. The Bozeman market is undergoing significant value changes in almost every level of property type. The City of Bozeman has developed a series of significant projects including the completion of a downtown parking garage, City of Bozeman Library, and construction of the Gallatin County Detention Center. Montana State University has also seen significant expansion with a remodel of the ball stadium, the addition of the Molecular Biology Center, renovations to the health and physical education center, addition of the Black Box Theater, and a renovation of Gaines Hall. Other projects moving forward are noted below. Bozeman Yellowstone International Airport Expansion o Details: Announced in 2024, this $180 million infrastructure upgrade is cited as the largest airport expansion in Montana’s history. It includes adding three new baggage carousels, a second security checkpoint, and capacity for three additional gates. o Timeline: Expected completion within 4.5 years from 2024, placing it partially within the past five years and ongoing into 2029. o Significance: With Bozeman’s rapid growth, this project addresses critical transportation needs, supporting tourism and population influx. Gallatin High School o Details: Completed in August 2020, this 285,000-square-foot facility cost approximately $63 million. It serves 1,200 students and includes advanced educational and athletic facilities. o Timeline: Construction began before 2020 but was finalized within the five-year window. o Significance: As Bozeman’s second public high school, it reflects the area’s population boom and educational demands. 131 - HOGAN REAL ESTATE APPRAISAL GROUP, LLC - 25 Barnard Construction Headquarters o Details: A new headquarters for Barnard Construction, a major heavy-civil contractor based in Bozeman, began construction in recent years. The project involves significant site work, including road closures like Royal Wolf Way, indicating a large footprint. o Timeline: Ongoing as of early 2025, with construction updates from late 2024. o Significance: Barnard is a top revenue-generating construction firm in Montana, and this headquarters reflects its growth and local economic impact. 5th and Main Mixed-Use Development o Details: A six-story building with 122 apartments and commercial space, under construction as of early 2025, alongside a proposed five-story hotel nearby. Estimated costs are not fully public, but the scale suggests tens of millions of dollars in investment. o Timeline: Active within the last five years, with completion pending. o Significance: Expands downtown Bozeman westward, enhancing urban density and walkability. o Kagy Boulevard Reconstruction o Details: Secured over $24 million in funding (announced September 2024) to widen lanes, add a multi-use path, and improve safety features along this key Bozeman corridor. o Timeline: Funding secured in 2024, with construction likely spanning 2024–2025. o Significance: Addresses infrastructure strain from rapid urban growth. Other Projects: Developments like The Merin (mixed-use, four-story building), One 11 Lofts (luxury apartments), and The Henry (44-unit luxury condos) are notable but smaller in scale or cost compared to the above. The Cottonwood and Ida Mixed-Use Project (92 residential units) and Sierra Vista (100 homes) also contribute to growth but lack specific cost figures to rank them definitively. Belgrade, Montana, has seen a surge in development in recent years, driven by its proximity to Bozeman, population growth, and increasing demand for housing and commercial spaces. Below are some of the most significant recent development projects in Belgrade, based on activity from roughly the past five years. West Post Mixed-Use Development o Details: This 250-acre master-planned community is one of the largest developments in the Belgrade area. Located south of I-90 near the Bozeman Yellowstone International Airport, it includes residential, commercial, retail, light industrial, hotel, and restaurant spaces. Phase I has been approved, with commercial lots currently available and residential lots slated for future release. 132 - HOGAN REAL ESTATE APPRAISAL GROUP, LLC - 26 o Timeline: Groundbreaking occurred in spring 2022, with ongoing development as of early 2025. Jackrabbit Crossing o Details: A 196-acre mixed-use project along Jackrabbit Lane, designed as a live/work/shop community. It features residential units, commercial spaces, and plans for a large grocery store anchor (to be announced). A rumored 53,000- square-foot Amazon Distribution Center is also linked to this development. o Timeline: Active construction updates from 2024 indicate progress, with a 10-20 year buildout horizon. Yellowstone Landing o Details: A 15-acre corporate housing project within the Yellowstone Airport Plaza, featuring 168 units in its first phase (1- to 4-bedroom apartments across six buildings). Amenities include a dog park, fitness center, and pool, targeting workforce housing needs, with units pre-leased to Bozeman Health. o Timeline: Construction began in 2024 and continues into 2025. Bridger Heights Subdivision o Details: A 700-unit development north of Prescott Ranch, including 117 single- family homes, 158 townhomes, and 449 apartments. Williams Homes has been building single-family homes starting at $499,900, with four floor plans available. o Timeline: Initial phases completed by 2024, with further phases underway as of early 2025. Kagy Boulevard Reconstruction (Belgrade Portion) o Details: While primarily a Bozeman project, its $24 million funding (secured September 2024) impacts Belgrade’s connectivity. It involves widening lanes, adding a multi-use path, and improving safety along this corridor linking the two cities. o Timeline: Construction spans 2024–2025. Cameron Crossing Manufactured Housing o Details: Unveiled in April 2024, this Three Pillar Development project offers manufactured homes starting at $200,000, marketed as an “affordable housing solution.” It is located just outside Belgrade city limits. o Timeline: Opened in 2024, with ongoing sales and potential expansion. Commercial Growth: Projects like the new Murdoch’s Ranch & Home Supply off Jackrabbit Lane (opened in recent years) and a 200,000-square-foot FedEx facility south of the water tower highlight Belgrade’s commercial expansion. 133 - HOGAN REAL ESTATE APPRAISAL GROUP, LLC - 27 Governmental Factors: The City of Bozeman is governed by a Commission-Manager system with most decision making coming from the elected City Commissioners. Fire and police protection are rated as quite adequate for a town the size of Bozeman. The rural areas near Bozeman are served by rural volunteer fire districts with the Gallatin County Sheriff's Office handling the police duties. Sanitation services are provided by the City through private contractors; the capacity to handle demand is considered adequate at present. Gallatin Field, the local airport, is serviced by Alaska, Allegiant, American Airlines, Delta, JetBlue, Southwest, Sun Country Airlines, and United. Gallatin Field is located between Bozeman and Belgrade. BNSF (formerly Montana Rail Link) provides rail freight service. Motor freight carriers include Garrett Freight Lines, Bozeman-Butte Delivery Service, Northern Pacific Transport, Salt Creek Freightways, and United Parcel Service. Greyhound Bus services Bozeman with numerous daily stops; Karst Stage Company offers charter buses and City Taxi provides local limousine and taxi service. The Yellowstone Park Company operates a bus service between Bozeman and West Yellowstone, and Clark Fork Valley Bus Lines operates daily service between Bozeman and Helena. Medical facilities consist of a new Deaconess Hospital with 72 beds. The area is well serviced by the medical profession with almost all types of doctors noted. There are also two nursing homes in Bozeman. Bozeman and the area surrounding it provide excellent recreational opportunities. Within the city limits of Bozeman, are numerous city parks and playgrounds. The surrounding areas provide hunting opportunities in nearby mountains while there is world-class fishing in surrounding rivers and streams. Other recreational pursuits include snow skiing at Bridger Bowl and Big Sky. Bozeman and the Gallatin Valley newspaper needs are served by the Bozeman Daily Chronicle. Bozeman is served by community cable TV. Six radio stations operate in the Gallatin Valley providing adequate radio communication facilities. The Bozeman school system includes eight elementary schools, two middle schools, and two high schools, and a charter academy. East of Bozeman is the Mount Ellis Academy, a grade and high school operated by the Seventh Day Adventists. Montana State University is located in Bozeman with a fall 2023 enrollment of 16,978 students, which was the largest enrollment of the university’s history. Approximately 48% of the student body is made up of Montana residents. Environmental Factors: The Gallatin Valley is located at an elevation of 4,793 feet with a climate that is mild and dry. The annual mean temperature is 43 degrees F. The February average maximum temperature is 36 degrees F., and the July average maximum temperature is 83 degrees F. The average annual precipitation is 18.6 inches. The average annual snowfall is 83 inches. 134 - HOGAN REAL ESTATE APPRAISAL GROUP, LLC - 28 Bozeman’s climate reflects its mountain valley location. Bozeman, Gallatin County, and the entire state of Montana have four seasons. Summers are generally pleasant and characterized by warm to hot days, cool nights, and an abundance of sunshine. Humid conditions are infrequent. Bozeman is located in southwest Montana on U.S. Interstate 90. Access to the south toward Yellowstone National Park and Salt Lake City is via U.S. Highway 191. Interstate highway systems, State of Montana, and Gallatin County maintained roadways provide access throughout the region. Commercial air, truck, and rail transportation are also considered adequate. Conclusions: There would appear to be a long-term need for a variety of service facilities, both for the local populace and for tourists. Tourism plays a significant role in the local economy with Yellowstone Park providing substantial traffic. The location of Bozeman on I-90 and between Yellowstone Park and Glacier National Park produces strong motivation for service-related businesses to locate here. The real estate market has been improving over the past several years. There has been an increase in subdivision activity and there is significant residential development within the Bozeman area. The amount of commercial real estate activity has also been significant. The Appraisal of Real Estate, Fifteenth Edition, published by the Appraisal Institute includes a chapter dealing with market analysis. The definition of market analysis is a study of the supply of and demand for a specific type of property in a specific market area. The label marketability analysis has traditionally been used when the scope of the analysis extends beyond general market analysis to investigate how a specific property is expected to perform in its market. However, in strictest usage, marketability analysis most precisely describes the final step in the formal six-step process. Marketability analysis is an essential step in the process of developing an opinion of market value and should not be confused with the analysis of general demographic or economic information for an area. In an appraisal of a specific property, the main purpose of marketability analysis is to show how the interaction of supply and demand affects the property’s future benefits to the owner in terms of the use of the property over time. To complete a marketability analysis (in the sixth step of the six-step process), an appraiser must first complete a market analysis (i.e., the preceding steps of the six-step process). For example, consider the appraisal of a neighborhood shopping center. A market analysis would measure the demand and competition for all neighborhood shopping centers in a specified market, which may cover a two-mile area. A marketability analysis would then compare how a particular property (e.g., the property being appraised) will perform in that market given the relevant demand and competition. The conclusions of the marketability analysis then become the basis for determining the value implications for the property. Marketability analysis may perform several functions: 1. to determine the market outlook and trends for marketing a property, 135 - HOGAN REAL ESTATE APPRAISAL GROUP, LLC - 29 2. to address the desired type, design, and locational characteristics of a development, 3. to provide estimates of the share of the market that the property is likely to capture during its economic life and its probable absorption rate, or 4. to suggest alternative uses in a market in which the existing use of a specific property is oversupplied or outdated. Marketability analysis also provides a basis for determining the highest and best use of a specific property in a defined market. In short, the market determines the appropriate use, and the use drives the value. An existing or proposed use may be put to the test of maximum productivity in highest and best use analysis only after it has been demonstrated that an appropriate level of market support exists for that use. In-depth marketability analyses specify the character of that support. For example, if current market conditions do not indicate that adequate demand for a proposed development exists, marketability analysis may identify the point in time when there will be adequate demand for that land use. Thus, marketability analysis helps appraisers forecast the timing of a proposed improvement and the amount of demand anticipated in a particular period of time. The basics of marketability (measure of market support) tend to rely on an equilibrium between supply and demand; particularly as these terms apply to economic models. Therefore, if the subject is priced according to its location (land value) and physical attributes (improvements, if any) where it will capture its share (fair share) of the market, there would be market support for the real estate. This is both a consideration of current and existing supply as well as the incorporation of future growth in competition (supply). Rather, it is a recognition of the appraisal analysis that identifies the subject property as to a particular real estate product (type) and the real estate market in which this property competes (location, Montana). The manner in which subject demand is analyzed is the simplest way to characterize a market analysis assignment because estimates of demand are formulated differently depending on the level of analysis required by the appraisal problem. In some cases, demand may simply be inferred from published data and from current and historical market conditions. It is my opinion inferred market analysis is adequate to allow for a credible appraisal result. The primary analysis is based on population growth, housing, and household analysis as well as income analysis. Population Summary: Bozeman, Montana, a vibrant and rapidly growing city nestled in Gallatin County, has seen its population surge in recent years. As of 2020, the U.S. Census recorded 48,330 residents, a remarkable 32.6% leap from the 36,440 counted in 2010. By 2023, estimates placed the population at 55,042, reflecting a steady annual growth rate of nearly 3%. Looking ahead to 2025, projections suggest Bozeman’s population could reach between 59,050 and 59,614, with growth rates holding strong at around 1.7% to 2%. This makes Bozeman the fourth largest city in Montana, with a population density of roughly 2,575 people per square mile. 136 - HOGAN REAL ESTATE APPRAISAL GROUP, LLC - 30 The city’s demographic profile skews young, with a median age in 2020 of just 28.1 years, reflecting its lively, youthful energy. Bozeman is predominantly White, with 88.7% of residents identifying as non-Hispanic White, followed by 5.6% Hispanic, 4.1% of mixed race, and 2.1% Asian. Smaller Native American and Black communities also contribute to the city’s diversity. About 5% of residents are foreign-born, while 97.2% hold U.S. citizenship. Bozeman’s growth is fueled by a robust economy, consistently ranked as the top micropolitan area in the U.S. from 2017 to 2022, and an influx of remote workers drawn to its scenic beauty and quality of life since the COVID-19 pandemic. Yet, this boom has brought challenges, including a high cost of living and strained housing market, as the city balances its small-town charm with its rising prominence. Household Summary: Bozeman, Montana, and its encompassing Gallatin County have experienced remarkable population and economic growth, shaping their household dynamics in distinctive ways. As of 2023, Bozeman, the county seat, is home to approximately 55,042 residents, while Gallatin County’s population is estimated at 126,409, with projections for 2025 suggesting Bozeman could reach around 59,210 to 59,614 and the county approximately 129,351. This rapid growth, driven by a robust economy and an influx of remote workers post-COVID, has created a vibrant yet challenging household landscape marked by rising incomes, housing pressures, and diverse family structures. In Bozeman, the total number of households in 2023 is approximately 23,131 based on recent estimates. These households have an average size of about 2.3 people, reflecting a mix of young professionals, students, and smaller families. The city’s median household income is $79,903, a significant increase from $74,113 in 2022, indicating strong economic growth. However, this figure varies by age group: residents aged 25 to 44 earn a median of $77,109, those aged 45 to 64 earn $93,272, while younger residents under 25 and those over 65 earn notably less at $27,219 and $63,981, respectively. The average household income is higher, at $95,595, suggesting a concentration of wealth among higher earners. Despite this prosperity, 14.83% of Bozeman households live below the poverty line, with 4.9% of families specifically in poverty, highlighting economic disparities exacerbated by the city’s high cost of living. Household composition in Bozeman is split between family and non-family units. Approximately 47.26% of households are family establishments, typically consisting of a married couple or related individuals through birth, marriage, or adoption. The remaining 52.74% are non-family households, often single individuals, or unrelated roommates, reflecting the city’s large student population and transient workforce. Only 19.44% of households have children, while 80.56% are without, underscoring the prevalence of young, childless households. Homeownership is relatively low at 44.6%, with 55.44% of households renting, a reflection of high housing costs. The median property value in 2023 is $614,900, and for owner-occupied homes with mortgages, the median value is $475,300. Monthly housing costs an average of $1,316, putting pressure on renters and buyers alike. The average car ownership is two vehicles per household, and most residents (62.6%) drive alone to work, with short commutes averaging 137 - HOGAN REAL ESTATE APPRAISAL GROUP, LLC - 31 15.4 minutes. Alternative transportation is notable, with 8.85% walking and others biking, likely due to the city’s compact layout and university presence. Gallatin County, with a broader population base, had 45,287 households in 2020, and an estimated 50,031 in the 2023 Census estimates. The average family size is larger at 2.96 people, reflecting more traditional family structures in suburban and rural areas outside Bozeman. The county’s median household income in 2023 is higher than Bozeman’s at $87,454, up from $83,434 in 2022, and significantly above Montana’s state median of $57,153. The average per capita income is $53,658, slightly higher than Bozeman’s $52,785, indicating broader wealth distribution. However, 10.21% of the county’s population lives below the poverty line, with lower rates for children (6.9%) and seniors (6.5%) compared to Bozeman, suggesting a more stable economic base in outlying areas. Household types in Gallatin County show a stronger family orientation than Bozeman. In 2020, 48.2% of households were married-couple families, 23.9% were male-headed households without a spouse, and 20.4% were female-headed households without a spouse. These figures likely remain consistent, with a slight shift toward more family households as the county grows. Homeownership is notably higher at 61.5% in 2023, compared to Bozeman’s 44.6%, reflecting greater affordability in areas like Belgrade, Manhattan, and Three Forks. The median property value is $604,900, slightly below Bozeman’s, but still indicative of a competitive housing market. Most households (68.1%) drive alone to work, with an average commute of 18.8 minutes, longer than Bozeman’s due to the county’s larger geographic spread. Car ownership averages two vehicles per household, consistent with Bozeman. Economic and social factors shape both areas distinctly. Bozeman’s household dynamics are influenced by Montana State University, which contributes to a younger median age (28.1 years) and a high proportion of renters and non-family households. The city’s economy, driven by retail, education, and tech, supports higher incomes but also fuels housing scarcity, with a top ten home-building rate struggling to keep pace. Gallatin County, encompassing smaller communities like Belgrade (10,460 residents), Manhattan (1,691), and West Yellowstone (1,353), has a slightly older median age (33.8 years) and more family-oriented households. Its economy, including construction, retail, and tourism tied to Yellowstone National Park, supports higher homeownership and slightly less acute poverty rates. Both Bozeman and Gallatin County face housing challenges due to rapid growth. Bozeman’s designation as the top micropolitan city from 2017 to 2022 ended in 2023 as its population exceeded 50,000, but its growth rate remains robust at 1.7% to 2.88% annually. The county’s 51.04% population increase since 2010 outpaces the state, driven by its scenic appeal and economic opportunities. However, this growth has strained infrastructure, with housing costs and availability cited as major issues. In Bozeman, 39,111 residents (one year old or older) lived in the same house as the previous year, indicating high mobility, likely due to rental turnover and housing market pressures. In summary, Bozeman’s households are characterized by a youthful, transient population with high incomes but significant poverty and housing challenges, split evenly between family and non-family units. Gallatin County, while sharing these economic strengths, leans toward more 138 - HOGAN REAL ESTATE APPRAISAL GROUP, LLC - 32 traditional family households with higher homeownership and slightly less economic disparity. Both areas reflect Montana’s broader trend of growth and opportunity, tempered by the pressures of affordability and infrastructure demands in a rapidly evolving region. Employment Summary: As of 2025, with an estimated population of 59,050 to 59,614, Bozeman’s labor market reflects its status as a former top micropolitan city, driven by education, healthcare, technology, and tourism. The city’s employment scene is characterized by low unemployment, a high proportion of white-collar workers, and a competitive job market, though challenges like housing costs and a high cost of living impact its workforce. The labor force in Bozeman is substantial, with approximately 73.2% of residents aged 16 and over participating, totaling around 32,000 workers. The employment rate is notably high at 97.18%, and the unemployment rate remains near record lows, fluctuating between 2.2% and 2.7% in recent years, well below the national average. This tight labor market reflects Bozeman’s economic vitality, with job growth steady at about 0.8% annually in Gallatin County. The city’s workforce is young, with a median age of 28.6 years, and highly educated, as 30.74% of residents hold a bachelor’s degree, bolstered by the presence of Montana State University (MSU). Bozeman’s economy is diverse, with key industries shaping their employment profile. Montana State University, the city’s largest employer with over 5,000 employees (staff and students), anchors the education sector, offering roles from faculty to administrative staff with competitive benefits like tuition waivers and wellness programs. Bozeman Health, another major employer, operates the Deaconess Regional Medical Center and other facilities, employing thousands in healthcare roles ranging from medical professionals to support staff. The technology sector is growing, with Oracle Corporation’s campus, established after acquiring RightNow Technologies in 2012, providing high-skill jobs in software and cloud solutions. Simms Fishing Products, a leader in fishing gear, and the Bozeman Public School District also rank among top employers, contributing to manufacturing and education jobs, respectively. Retail, construction, and tourism, tied to Bozeman’s proximity to Yellowstone National Park, further diversify the job market. Occupational trends highlight a white-collar dominance, with 83.2% of workers in professional, managerial, or technical roles, compared to 16.8% in blue- collar jobs. Entrepreneurs are prevalent, with 12.05% of the workforce (about 3,788 individuals) self-employed, particularly in professional, scientific, and management services, where 24% of self-employed workers operate. The median household income is $79,903, with average household income higher at $115,764, reflecting strong earnings among professionals. However, income varies significantly by age: workers aged 45–64 earn a median of $93,272, while those under 25 earn just $27,219, likely due to the prevalence of student and entry-level jobs. Average hourly earnings are $27.48 per hour, which is 4.1% above the national average of $26.40 and 17.2% higher than Montana’s average at $23.45, underscoring Bozeman’s competitive wage environment. 139 - HOGAN REAL ESTATE APPRAISAL GROUP, LLC - 33 Despite economic strengths, challenges persist. The poverty rate stands at 14.83%, with 4.9% of families below the poverty line, driven by high housing costs. Median home values are $614,900, and monthly housing costs average $1,316. Commuting patterns reflect Bozeman’s compact geography and active lifestyle. Most workers (62.6%) drive to work alone, with an average commute of 15.4 minutes, among the shortest in the region. However, 8.85% walk, and 3.88% bike, supported by the city’s walkable downtown and university proximity. Work-from-home arrangements are also notable, with a significant portion of tech and professional workers telecommuting, a trend accelerated post-COVID. Bozeman’s employment outlook remains strong, with steady job growth and a resilient economy. The city’s blend of academic, healthcare, and tech opportunities, combined with its appeal to outdoor enthusiasts, continues to attract a skilled workforce. Largest Employers: Employer Name Location Industry Estimated Employees Description Montana State University (MSU) Bozeman Education ~5,000 Public university offering academic and administrative roles with benefits like tuition waivers and wellness programs. Bozeman Health Bozeman, Gallatin County Healthcare ~2,700 Operates Deaconess Regional Medical Center and clinics, employing medical professionals and support staff. Oracle Corporation Bozeman Technology Several hundred Maintains a campus post-acquisition of RightNow Technologies, providing jobs in software and cloud solutions. Ressler Motors Bozeman Automotive ~445 Family-owned auto group with dealerships and service centers, offering sales, service, and administrative roles. Town & Country Foods Bozeman Retail/Grocery ~200–300 Employee-owned grocery chain with roles in retail, management, and supply chain, focusing on local products. Murdoch’s Ranch & Home Supply Bozeman, Gallatin County Retail ~200 Retailer of ranch and home supplies, providing jobs in retail and customer service with competitive wages. Simms Fishing Products Bozeman Manufacturing/Outdoor Gear ~150–200 Leading fishing gear manufacturer, offering production, design, and administrative roles. Bozeman Public School District Bozeman Education ~700–1,000 Employs teachers and staff across public schools, serving a growing student population. Williams Plumbing / Williams Civil Construction Bozeman, Gallatin County Construction/Plumbing ~100–200 Regional contractor providing jobs in plumbing, HVAC, and civil construction. Gallatin Valley Bozeman Nonprofit/Community ~100–150 Offers roles in youth development, 140 - HOGAN REAL ESTATE APPRAISAL GROUP, LLC - 34 Employer Name Location Industry Estimated Employees Description YMCA Services fitness, and community outreach with a focus on social responsibility. Key Industries: Education is a cornerstone of Bozeman’s economy, anchored by Montana State University (MSU), the city’s largest employer with over 5,000 employees. MSU not only provides jobs for faculty, researchers, and administrative personnel, but also drives economic activity through student spending, research grants, and community engagement. The university’s presence fosters a highly educated workforce, with 30.74% of residents holding a bachelor’s degree, and supports related sectors like publishing and professional services. Healthcare is another major industry, led by Bozeman Health, which employs over 2,700 people across facilities like the Deaconess Regional Medical Center and clinics in Bozeman, Belgrade, and Big Sky. The sector meets the needs of a growing population, projected to reach 59,050– 59,614 in 2025, and serves as a regional healthcare hub for Gallatin County and beyond. Roles range from medical professionals to support staff, with demand fueled by an aging population and increased health awareness. Technology is a rapidly growing sector, with Bozeman emerging as a tech hub in the Mountain West. Oracle Corporation, following its 2012 acquisition of RightNow Technologies, maintains a significant presence, offering high-skill jobs in software development and cloud solutions. The tech industry benefits from Bozeman’s quality of life, attracting remote workers and startups in areas like software, biotech, and data analytics. This sector aligns with the city’s white-collar workforce, as 83.2% of workers are in professional or technical roles. Retail and hospitality thrive due to Bozeman’s role as a commercial and tourism hub. Retail employs a significant portion of the workforce, with major employers like Town & Country Foods (200–300 employees) and Murdoch’s Ranch & Home Supply (around 200 locally) providing jobs in sales, management, and logistics. Hospitality is bolstered by Bozeman’s proximity to Yellowstone National Park and outdoor recreation areas like Big Sky Resort, driving demand for jobs in lodging, restaurants, and tourism services. The city’s vibrant downtown, with its shops and eateries, further supports this sector. Manufacturing, particularly in outdoor gear, is a notable industry, exemplified by Simms Fishing Products (150–200 employees), a leading producer of fishing equipment. Bozeman’s outdoor lifestyle and access to recreational areas make it an ideal base for companies producing gear for fishing, hunting, and other activities. This sector also includes smaller firms in optics and recreational equipment, contributing to the city’s entrepreneurial spirit, with 12.05% of workers self-employed. Construction is a critical industry, driven by Bozeman’s rapid population growth (1.7%–2.88% annually) and housing demand. Firms like Williams Plumbing / Williams Civil Construction (100–200 employees) support infrastructure development, including residential, commercial, and public projects. The median property value of $614,900 and ongoing housing shortages 141 - HOGAN REAL ESTATE APPRAISAL GROUP, LLC - 35 underscores the sector’s importance, though it faces challenges from labor shortages and high material costs. Tourism and outdoor recreation are integral to Bozeman’s economy, capitalizing on its status as a gateway to Yellowstone and its surrounding ski resorts, hiking trails, and fishing rivers. This industry supports jobs in guiding services, adventure tourism, and seasonal employment, particularly in winter and summer. The Gallatin Valley YMCA (100–150 employees) also ties into this sector by offering recreation programs that attract residents and visitors alike. These industries collectively sustain Bozeman’s low unemployment rate (2.2%–2.7%), high median household income ($79,903), and economic resilience. However, the high cost of living and housing pressures challenge workers, particularly in lower-wage retail and hospitality roles. Bozeman’s blend of academic, tech, and outdoor-driven industries positions it as a thriving economic center, though balancing growth with affordability remains a key concern. Wages and Income: As of 2023, the median household income in Bozeman is $79,903, a notable increase from $74,113 in 2022, reflecting robust economic growth. This figure significantly exceeds Montana’s state median household income of $57,153, underscoring Bozeman’s status as an economic hub. The average household income is even higher at $115,764, indicating a concentration of wealth among higher earners, particularly in professional and technical sectors. Per capita income stands at $52,785, also well above the state average, reflecting the city’s educated workforce, with 30.74% of residents holding a bachelor’s degree. Wages in Bozeman are competitive, with average hourly earnings of $27.48 in 2023, 4.1% above the national average of $26.40 and 17.2% higher than Montana’s $23.45. This wage premium is driven by the city’s white-collar workforce, as 83.2% of workers are employed in professional, managerial, or technical roles, particularly in high-paying sectors like technology and healthcare. For example, tech jobs at Oracle Corporation and healthcare roles at Bozeman Health (employing over 2,700) offer above-average salaries, often exceeding $30–$40 per hour for skilled positions. However, lower-wage sectors like retail and hospitality, rely on Montana’s minimum wage of $10.55 per hour (as of January 2025), pull down overall wage averages for entry-level workers. Income in Bozeman varies significantly by age, reflecting the city’s youthful demographic (median age of 28.1 years) and diverse workforce, which includes students, young professionals, and established residents. Households led by residents aged 45–64 report the highest median income at $93,272, driven by career-peak professionals in sectors like education (e.g., Montana State University, with ~5,000 employees) and construction. Those aged 25–44, a significant portion of the workforce, earn a median of $77,109, aligning with tech and healthcare professionals. In contrast, younger residents under 25, many of whom are students or in entry- level jobs, earn a median of just $27,219, reflecting part-time work in retail or service industries. Older residents (65+) have a median income of $63,981, often supplemented by retirement savings or part-time work, though some face economic challenges due to fixed incomes. 142 - HOGAN REAL ESTATE APPRAISAL GROUP, LLC - 36 Education: Faculty and administrative roles at Montana State University offer competitive salaries, with professors earning $80,000–$120,000 annually and support staff averaging $20– $25 per hour. Benefits like tuition waivers enhance total compensation. Healthcare: Bozeman Health employs medical professionals with salaries ranging from $70,000 for registered nurses to over $200,000 for physicians. Support staff, such as medical assistants, earn $18–$22 per hour. Technology: Tech jobs, particularly at Oracle, command high wages, with software engineers earning $90,000–$150,000 annually. Entry-level tech roles start at $25–$30 per hour. Retail/Hospitality: Employers like Town & Country Foods and Murdoch’s Ranch & Home Supply offer wages starting at $12–$15 per hour, often just above the state minimum wage. Seasonal tourism jobs, tied to Yellowstone National Park, pay similarly but may include tips. Manufacturing: Simms Fishing Products provides production roles at $15–$20 per hour, with design and management positions earning $50,000–$80,000 annually. Construction: Skilled tradespeople at firms like Williams Plumbing earn $25–$35 per hour, though labor shortages drive wages higher for experienced workers. The prevalence of self-employment (12.05% of the workforce, ~3,788 individuals) also shapes income, particularly in professional and scientific services, where entrepreneurs earn median incomes of $60,000–$100,000, though earnings vary widely based on business success. Bozeman’s wages and incomes outpace Gallatin County and the state. Gallatin County’s median household income is $87,454, slightly higher than Bozeman’s due to wealthier suburban areas like Belgrade, but its per capita income of $53,658 is comparable. The county’s broader economic base, including agriculture and tourism, supports slightly lower wages in some sectors (e.g., $22–$25 per hour in retail). Montana’s statewide median household income of $57,153 and average hourly wage of $23.45 lag behind Bozeman, reflecting the city’s urban economic advantages and concentration of high-skill jobs. Bozeman’s wage and income trends suggest continued growth, driven by its strong economy and low unemployment. The city’s designation as the top micropolitan city from 2017 to 2022 (before surpassing 50,000 residents) and steady job growth (0.8% annually in Gallatin County) bode well for future earnings. However, addressing affordability is critical. High housing costs and economic disparities threaten to exclude lower-wage workers, potentially limiting workforce diversity. Initiatives to increase affordable housing and support for small businesses could help balance growth with equity. 143 - HOGAN REAL ESTATE APPRAISAL GROUP, LLC - 37 SFR Real Estate: The tabulation above outlines the residential real estate market over the past three years. Overall, median home prices increased from $525,000 for most of 2022, to the current which has a median list price of $599,900. The average days on market has been fairly low over the past three years and is somewhat elevated currently although it reflects the winter sales season. Beds Baths Sq Ft Total List Price Close Price Current Price/SQFT Price Per Acre DOM Min 2 1 1,024 $280,000 - $189.37 $92,857 0 Max 6 6 5,450 $14,950,000 - $3,316.33 $9,744,920 311 Avg 3 2 2,144 $1,063,307 - $444.53 $3,508,520 71 Median 3 3 1,904 $599,900 - $314.61 $3,135,298 44 3/24/-3/25 Beds Baths Sq Ft Total List Price Close Price Current Price/SQFT Price Per Acre DOM Min 1 1 607 $249,000 $249,000 $135.02 $53,038 0 Max 25 22 5,577 $5,999,000 $5,650,000 $2,730.77 $10,022,831 328 Avg 3 2 2,027 $672,777 $659,690 $329.07 $3,488,598 46 Median 3 3 1,765 $549,700 $550,000 $305.02 $3,157,666 26 3/23-3/24 Beds Baths Sq Ft Total List Price Close Price Current Price/SQFT Price Per Acre DOM Min 1 1 596 $285,000 $290,000 $149.59 $31,382 0 Max 6 4 4,630 $6,250,000 $5,750,000 $1,241.90 $11,022,727 452 Avg 3 2 1,955 $641,589 $628,474 $324.04 $3,158,968 36 Median 3 2 1,765 $532,495 $531,000 $296.13 $2,806,486 15 3/22-3/23 Beds Baths Sq Ft Total List Price Close Price Current Price/SQFT Price Per Acre DOM Min 1 1 603 $231,000 $231,000 $112.30 $56,306 0 Max 9 6 6,915 $3,875,000 $3,850,000 $1,575.00 $9,875,181 191 Avg 3 2 1,906 $589,302 $585,442 $317.62 $3,047,270 23 Median 3 2 1,721 $525,000 $525,000 $303.96 $2,802,916 9 Status: Sold (374) Property Type: Residential (374) Status: Sold (322) Property Type: Residential (322) Status: Active (83) Property Type: Residential (83) Status: Sold (386) Property Type: Residential (386) 144 - HOGAN REAL ESTATE APPRAISAL GROUP, LLC - 38 GOOGLE EARTH PHOTOGRAPH 145 - HOGAN REAL ESTATE APPRAISAL GROUP, LLC - 39 PLAT MAP 146 - HOGAN REAL ESTATE APPRAISAL GROUP, LLC - 40 SUBJECT PHOTOGRAPHS No. 1: View from the intersection of Durston and Fowler looking in a northerly direction. No. 2: View from the same location as the previous photograph looking in an easterly direction along Durston. No. 3: View showing the proposed acquisition area from Durston looking northerly. No. 4: View from the southeasterly corner of the subject property looking in a northwesterly direction. No. 5: View from the same location as the previous photograph looking westerly along Durston. No. 6: View from Annie Street at the subject westerly boundary looking south. 147 - HOGAN REAL ESTATE APPRAISAL GROUP, LLC - 41 No. 7: View from the same location as the previous photograph looking southeast. No. 8: View from the same location as the previous photograph looking northeasterly. No. 9: View showing the ditch running along the subject property looking northerly. No. 10: View from the same location as the previous photograph looking westerly toward Annie Street. 148 - HOGAN REAL ESTATE APPRAISAL GROUP, LLC - 42 PROPERTY DESCRIPTION Land Description County Code 6079803101090000 Physical Address Fowler and Durston Utility SFR development Soil Conditions Typical Location West Bozeman Street Improvements Durston is a two lane asphalt improved roadway. Hanson Street is two lane asphalt improved roadway. Size (See map below for a visualization of area, 2, 3, 8 and 9) Corner Lot No Common Areas None Gross Site Area 434,673 Area 2 15,213 Area 3 11,214 Area 8 24,326 Area 9 37,718 Ditch Setbacks 88,471 Net Site Area, Before 346,202 Before 149 - HOGAN REAL ESTATE APPRAISAL GROUP, LLC - 43 Irrigation None Vegetation/Tree Cover Mix of tree cover and open areas. Water Resource Irrigation ditch runs north/south/ bisecting the property. No aesthetic benefit. Overall Topography Level to slightly rolling. Access Hanson Street along the west boundary, as well as Annie Street from the northwesterly boundary. Road Frontage Asphalt improved city maintained. Utilities All city services in close proximity. Utility costs discussed as part of the sales comparison approach. Shape Irregular Zoning Gallatin County - Semi rural residential. The existing zoning is a misplaced zoning. Development occurred around subject since this zoning was put in place. Surrounding zoning is a mix of R1, R2, R3 and R4 administered by the city of Bozeman. Flood Hazard Zone X - FEMA panels 30031C0804D & 3031C0812D eff. 9/2/2011 Visibility Good Viewshed Average Wetlands None. Environmental Issues None known. 150 - HOGAN REAL ESTATE APPRAISAL GROUP, LLC - 44 Easements/Encroachments Ditch easement, 88,471 sq.ft. no build. Area 2, 3, 8 and 9 in map. Offsite Improvements None. Onsite Improvements Older garage; no value. Area 2 15,213 Area 3 11,214 Area 8 24,326 Area 9 37,718 Ditch Setbacks 88,471 151 - HOGAN REAL ESTATE APPRAISAL GROUP, LLC - 45 Easement Description: -North is to the right Gross Site Area 434,673 Fowler Street 4.85 Annie Street 0.41 Acquisition 5.26 Acquisition SF 229,024 152 - HOGAN REAL ESTATE APPRAISAL GROUP, LLC - 46 TAXES AND ASSESSMENTS Total taxes for the subject property in the as is condition, are $4,036.34. Overall, that is considered reasonable within the Bozeman marketplace. HIGHEST AND BEST USE The following definition of Highest and Best Use is taken from The Appraisal Institute, The Dictionary of Real Estate Appraisal, Seventh Edition. 1. The reasonably probable use of a property that results in the highest value. The four criteria the highest and best use must meet are legal permissibility, physical possibility, financial feasibility and maximum productivity. 2. The use of an asset that maximizes its potential and that is possible, legally permissible, and financially feasible. The highest and best use may be for continuation of an assets 16 use or for some alternative use. This is determined by the use that a market participant would have in mind for the asset when formulating the price that it would be willing to bid. (IVS) 3. [The]the highest and most profitable use for which a property is adaptable and needed or likely to be needed in a reasonably near future. (Uniform Appraisal Standards for Federal Land Acquisitions). I have also included the previous definition from the Fifth Edition. The reasonably probable and legal use of vacant land or an improved property that is physically possible, appropriately supported, financially feasible, and that results in the highest value. The four criteria the highest and best use must meet are legal permissibility, physical possibility, financial feasibility, and maximum productivity. Alternately, the probable use of land or improved property - specific with respect to the user and timing of the use - that is adequately supported and results in the highest present value. As taken from this same source, the definitions of highest and best use of land or a site as though vacant and the definition of highest and best use of property as improved are presented for clarity of discussion. As vacant: Among all reasonable, alternative uses, the use that yields the highest present land value, after payments are made for labor, capital, and coordination. The use of a property is Tax ID Assessed Value Taxable Value Current Taxes RGG8734 $714,818 $9,650 $4,036.34 153 - HOGAN REAL ESTATE APPRAISAL GROUP, LLC - 47 based on the assumption that the parcel of land is vacant or can be made vacant by demolishing any improvements. As improved: The use that should be made of a property as it exists. An existing improvement should be renovated or retained as is so long as it continues to contribute to the total market value of the property, or until the return from a new improvement would more than offset the cost of demolishing the existing building and constructing a new one. Implied within this determination of Highest and Best Use is that the result is formed by the appraisers’ interpretation of market evidence, e.g., that the use determined from analysis represents an interpretative opinion and not a fact to be found. In appraisal practice, the concept of highest and best use requires the appraiser to consider any and all uses to which the property was capable of being adapted. Consideration must be given to these uses, recognizing the limitations imposed first by governmental regulations such as zoning ordinances, building codes and health standards and secondly, by the attitudes of the typical investors in real property of this type in the area encompassing the subject property. The land value is based on the premise of the highest and best use of the property as though vacant. There are four tests which are considered in developing an opinion as to the highest and best use of the property. These four tests include an examination of uses that are physically possible, legally permissible, financially feasible, and maximally productive. There are five general uses which are considered. These include residential, commercial, industrial, agricultural, and recreational. Within the Montana marketplace, I have found it more prudent to begin the analysis with legally permissible since this helps refine the analysis quickly and to the point. Legally Permissible: The subject property has never been annexed by the City of Bozeman and is a Gallatin County in holding. Scope of work from the client requested a value of the subject property assuming in R3 zoning, in the after. In terms of the before, the City of Bozeman has indicated on numerous occasions an R2 or R3 zoning would be reasonable. The immediate neighborhood is a mixture of residential zoning. Those directly adjacent to the subject consist of county residential, single- family, and low density residential. The following outlines the residential districts associated with the City of Bozeman. Residential moderate density district (R-2). The intent of the R-2 residential moderate density district is to provide for one- and two-household residential development at urban densities within the city in areas that present few or no development constraints. These purposes are accomplished by: 154 - HOGAN REAL ESTATE APPRAISAL GROUP, LLC - 48 Providing for minimum lot sizes in developed areas consistent with the established development patterns while providing greater flexibility for clustering lots and housing types in newly developed areas. Providing community facilities to serve such development while respecting the residential quality and nature of the area. Use of this zone is appropriate for areas with moderate access to parks, community services and/or transit. Below is the city zoning map showing the specific zoning for the surrounding properties that fall outside the county zoning area. Based on discussion with the City of Bozeman planning department, if the subject property were annexed, there is a reasonable expectation it would be zoned R2 or R3 and scope of work calls for an R3 assumed designation, in the after. For legally permissible, overall, the highest and best use of the subject property is for residential development consistent with the immediate surrounding neighborhood. Physically Possible: The subject property is defined as a single legal lot containing 9.979 acres. Durston Road sets the southerly boundary of the subject, and there is physical access from that roadway. Hanson Street sets the most westerly boundary of the subject property and provides physical and legal access. Annie Street, which runs perpendicular to the subject at the northwesterly corner, also provides access. There currently is no physical access from any of the streets along the easterly boundary, but in speaking with one of the engineers in the city transportation department, future development would likely extend at least some of the streets to the easterly boundary of the subject. These streets include Farmall Street, Annie Street, Lily Drive, Rose Street, and Oliver Street. There is an irrigation ditch that runs north to south through the center of the property and the site is 155 - HOGAN REAL ESTATE APPRAISAL GROUP, LLC - 49 mostly level with some tree cover, but mainly open, although there are development setbacks along that ditch. There are no flood hazards associated with this property. The subject property is situated west of the central business district of Bozeman with mostly residential uses surrounding it. Based on the legally permissible and physically possible the subject tract has the highest potential for residential use. Timing of the Use/Most Likely Use (Financial Feasibility): The subject property is in the northwesterly area of Bozeman, MT west of the intersection of North 19th Avenue and U.S. Highway 83. The subject property is situated in a primarily residential area and the legal and physical use allows for residential development under the assumed zoning, and that would likely be the highest and best use of the subject property. Overall, the timing of the use is likely immediate. Who is the Most Likely Buyer (Maximally Productive): The most likely buyer would be an end-user looking for a residential development opportunity. For purposes of the highest and best use conclusion, the primary expectation would be residential development. The primary land sales uncovered are zoned some level of residential by the city with the buyer motivation being for residential development. The market shows a continuing demand for residential development. I did include a number of additional sales with commercial or industrial zoning as secondary support. Highest & Best Use of Land Only: As stated, there is good potential for residential development and the property is situated in a primarily residential neighborhood and general area. Bozeman is seeing a growth in population and the market is showing a steady demand for residential properties in the city and surrounding areas. Overall, the highest and best use would likely be for residential development use given the potential for annexation into the City of Bozeman, and market demand. 156 - HOGAN REAL ESTATE APPRAISAL GROUP, LLC - 50 THE APPRAISAL PROCESS The appraisal process is an orderly procedure wherein the problem is defined, the work necessary to solve the problem is planned, and the data involved is acquired, classified, analyzed, and interpreted into an estimate of value. There are three traditional approaches utilized by the appraisal professional which render a preliminary indication of value. They are generally referred to as the cost approach, the income capitalization approach, and the sales comparison approach (oftentimes referred to as the market data approach). The cost approach is an estimation of the value of the land, as if vacant, by market comparisons, and then the depreciated or contributory value of the improvements is added. The income capitalization approach produces a value indication by capitalizing the net income or earnings power of the property by a rate reflected by market transactions or behaviors. The sales comparison approach is a technique that produces an indication of value by a direct comparison of similar property types that have recently sold to the subject property; appropriate adjustments made when and where necessary. The three approaches to value do not necessarily apply to all types of property as the appraiser must decide whether a particular approach is applicable in each instance. The key to this decision is whether or not the approach is practical as a yardstick of market performance or merely a theoretical application. These observations are particularly pertinent in the appraisal of properties in transition to a higher and better use as well as special use properties where value-in-use is more applicable than market value. Given this is an estimate of the underlying land value, only the sales comparison approach is emphasized, and peer review would expect to see the sales comparison approach with this appraisal. 157 - HOGAN REAL ESTATE APPRAISAL GROUP, LLC - 51 LARGER PARCEL The term larger parcel is rarely discussed outside condemnation and litigation matters. I cite a particular resource, Real Estate Valuation in Litigation, Second Edition, authored by J.D. Eaton, MAI, SRA and published by the Appraisal Institute. On pages 75-101 of that text, Chapter 5, The Larger Parcel is discussed. Rather than a lengthy dissertation, I make note of a definition contained therein that was extracted from The Dictionary of Real Estate Appraisal that was stated to be more meaningful and useful to appraisers. It is: In condemnation, that tract or tracts of land which are under the beneficial control of a single individual or entity and have the same, or an integrated, highest and best use. Elements for consideration by the appraiser in making a determination in this regard are contiguity, or proximity, as it bears on the highest and best use of the property, unity of ownership, and unity of highest and best use. The following was taken from 4.3.3 and 4.3.4; Uniform Appraisal Standards for Federal Land Acquisitions. Definition of Larger Parcel: The tract or tracts of land that possess a unity of ownership and have the same, or an integrated, highest and best use. The subject property consists of a vacant parcel of land in the path of development within Bozeman, Montana. The subject property currently has a misplaced zoning given the amount of development that has occurred over the past 20 years to 30 years. Criteria for Analysis: In determining the larger parcel, federal courts consider unity of use, unity of ownership (title), and physical unity (proximity or contiguity) as it relates to highest and best use - factors historically called the three unities.1 The following was taken from the Right-Of-Way Operations Manual Chapter 3 from the Montana Department of Transportation. The term “larger parcel” means the entire property that should be appraised. It is important in eminent domain situations to include all the owner’s lands that qualify to determine the tract(s) that may be damaged or benefited from by the acquisition. The ultimate determination of the larger parcel is the responsibility of the appraiser and must be determined when analyzing highest and best use. Generally, the larger parcel must have unity of title, unity of use and contiguity. Some Federal courts and some States, including Montana, do not require contiguity where there is a strong unity of use. See State Highway Commission v Renfro, 161 Mont. 251, 256, 505 P.2d 403, and 406. 1 8.41 Acres in Orange, 680 F.2d at 390-91, 394-95. 158 - HOGAN REAL ESTATE APPRAISAL GROUP, LLC - 52 Unity of Use: The key question in determining the larger parcel is whether parcels have an integrated use.2 To meet the unity of use test in federal acquisitions, the lands in question must have the same or an integrated highest and best use.3 Lands with dissimilar uses are not part of the same larger parcel, and must be considered as separate and distinct tracts for compensation and valuation purposes.4 As with any other aspect of the highest and best use analysis, actual use is compelling evidence of highest and best use.5 Unity of Ownership (Title): The larger parcel must also have unity of ownership, there must be uniform control over the ownership and future of all property making up the larger parcel.6 Principles of fairness underlie the unity of ownership concept and form the basis of the Supreme Court’s reasoning in Campbell v. United States: [I]f the land taken from plaintiff had belonged to another, or if it had not been deemed part and parcel of this estate, he would not have been entitled to anything on account of the diminution in value of his estate. It is only because of the taking of a part of his land that he became entitled to any damages resulting to the rest.7 Thus, to allow landowners to receive compensation not only for their property but for diminution in value to land owned by another would be a windfall and an unfair enrichment rather than just compensation.8 Physical Unity (Contiguity or Proximity): Under federal law, physical unity is considered within the context of integrated use rather than as a stand-alone test. As the First Circuit emphasized: Physical contiguity is important, however, in that it frequently has great bearing on the 2 Piza-Blondet, 585 F.3d at 10 (quoting Baetjer v. United States, 143 F.2d 391, 394-95 (1st Cir. 1944)); 8.41 Acres in Orange, 680 F.2d at 393; United States v. 25.202 Acres of Land (Amexx I), 860 F. Supp. 2d 165, 179 (N.D.N.Y. 2010), aff ’d, 502 F. App’x 43, 45 (2d Cir. 2012); see Wash. Metro. Area Transit Auth. v. One Parcel of Land (Old Georgetown), 691 F.2d 702, 704-05 (4th Cir. 1982); Imperial Beach, 612 F.2d at 463-64; cf. United States v. 105.40 Acres of Land in Porter Cty., 471 F.2d 207, 211-12 (7th Cir. 1972); United States v. Evans, 380 F.2d 761, 763-64 (10th Cir. 1967). 3 Old Georgetown, 691 F.2d 702, 704-05 (4th Cir. 1982); United States v. 158.24 Acres of Land in Bee Cty., 515 F.2d 230, 232 (5th Cir. 1975); United States v. Wateree Power Co., 220 F.2d 226, 231-32 (4th Cir. 1955); Baetjer, 143 F.2d 391. 4 See, e.g., Piza-Blondet, 585 F.3d at 4-5, 9-10; Winn v. United States, 272 F.2d 282, 286-87 (9th Cir. 1959). 5 See, e.g., United States v. 50.50 Acres of Land, 931 F.2d 1349, 1359 (9th Cir. 1991); United States v. 33.92356 Acres (Piza-Blondet Trial Op.), No. 98-1664, 2008 WL 2550586 (D.P.R. June 13, 2008), aff ’d, Piza-Blondet, 585 F.3d 1. 6 Imperial Beach, 612 F.2d at 463-64; United States v. 17.69 Acres of Land in San Diego (Nat’l Enterprises), No. 99cv1248 DMS (JMA), slip op. at 8 (S.D. Cal. Aug. 30, 2004) ECF No. 272; United States v. 14.36 Acres of Land in McMullen Cty., 252 F. Supp. 2d 361, 363 (S.D. Tex. 2002). 7 Campbell v. United States, 266 U.S. 368, 371 (1924); see Sharp v. United States, 191 U.S. 341, 355 (1903) (“‘It is solely by virtue of his ownership of the tract invaded that the owner is entitled to . . . damages.’”). 8 See Campbell, 266 U.S. at 371; United States v. Grizzard, 219 U.S. 180, 184 (1911) (“The ‘just compensation’ thus guaranteed obviously requires that the recompense to the owner for the loss caused to him by the taking of a part of a parcel, or single tract of land, shall be measured by the loss resulting to him from the appropriation.” (emphases added)); Sharp, 191 U.S. at 354; see also United States ex rel. Tenn. Valley Auth. v. Stewart, 429 F. Supp. 658, 659-61 (E.D. Tenn. 1976) (“it would be wholly inequitable to allow other parties owning . . . different tracts . . . [to] secure damages to which they are not entitled”). 159 - HOGAN REAL ESTATE APPRAISAL GROUP, LLC - 53 question of unity of use. Tracts physically separated from one another frequently, but we cannot say always, are not and cannot be operated as a unit, and the greater the distance between them the less is the possibility of unitary operation . . . .9 Accordingly, the physical unity (proximity) or separation of a tract is an important consideration, but not necessarily determinative of the ultimate question of what constitutes a single tract.10 Unity of Use: The subject property has a single historical and current use. The subject property represents a vacant tract and has never been developed with the exception of an older garage structure that no longer adds value. Unity of Ownership (Title): The subject property is under one ownership and consists of a single salable tract. There is a ditch that bisects the subject property, but that physical feature is insufficient to create two separate tracts. Physical Unity (Contiguity or Proximity): -North is to top of map 9 Baetjer v. United States, 143 F.2d 391, 395 (1st Cir. 1944); cf. Sharpe v. United States, 112 F. 893, 895-96 (3d Cir. 1902), aff ’d sub nom. Sharp v. United States, 191 U.S. 341 (1903) (discussing “22 acres of meadow . . . not adjoining or a part of [the farm tract with which it had been purchased], nor was it used in connection therewith, but was such a considerable distance away, and of so little value, that no attention was paid to it by either [party], either as to value or damages”). 10 Baetjer, 143 F.2d at 395. 160 - HOGAN REAL ESTATE APPRAISAL GROUP, LLC - 54 The subject property consists of 9.979 acres outlined in the map above. The subject property is wholly owned by the current ownership, under one legal description and the current ownership does not own any adjacent properties. Conclusions: The subject larger parcel consists of a single parcel with potential for single-family residential development. Overall, the larger parcel consists of a 9.979-acre tract under a single ownership. 161 - HOGAN REAL ESTATE APPRAISAL GROUP, LLC - 55 SALES COMPARISON APPROACH A definition of this approach taken from the Dictionary of Real Estate, Seventh Edition, published by The Appraisal Institute has shown the following: Sales Comparison Approach The process of deriving a value indication for the subject property by comparing sales of similar properties to the property being appraised, identifying appropriate units of comparison, and making adjustments to the sales prices (or unit prices, as appropriate) of the comparable properties based on relevant, market derived elements of comparison. Sales comparison approach may be used to value improved properties, vacant land, or land being considered as though vacant when an adequate supply of comparable sales is available. In applying the standard application of this approach, generally the comparable sales are reviewed in terms of physical similarities or dissimilarities, market condition differences, terms of sale, motivation factors involved, etc. When sufficient data is available, the approach takes on added dimension or credence. When there are very few comparable sales with only a relative degree of similarity, the approach is considered to be less applicable and therefore less reliable as an indication of value for the subject property. Under the Sales Comparison Approach methodology, there are several techniques that can be employed. I generally have found there to be more emphasis given to a price paid per acre/square foot. That is consistent with the market behaviors in this Western Montana area. As noted in The Appraisal of Real Estate, Fifteenth Edition, published by The Appraisal Institute, the following is the identified systematic procedure employed within this technique: 1. Research the competitive market for information on properties that are similar to the property being appraised and that have been sold recently, or were listed for sale, or are under contract. Information on agreements of sale, options, listings, and bona fide offers may also be collected. The characteristics of the properties such as property type, date of sale, size, physical condition, location, and land use constraints should be considered. The goal is to find a set of comparable sales or other evidence such as property listings or contracts as similar as possible to the subject property to ensure they reflect the actions of similar buyers. Market analysis and highest and best use analysis set the stage for the selection of appropriate comparable sales. 2 Verify the information by confirming that the data obtained is factually accurate and that the transactions reflect arm’s-length market considerations. Verification should elicit additional information about the properties such as buyer and seller motivations, economic characteristics (if the property is income-producing), value component allocations, and other significant factors as well as information about the market to ensure that comparisons are credible. 162 - HOGAN REAL ESTATE APPRAISAL GROUP, LLC - 56 3 Select the most relevant units of comparison used by participants in the market (e.g., price per acre, price per square foot, price per front foot, price per dwelling unit, price per lot or proposed lot, price per room) and develop a comparative analysis for each unit. The goal is to define and identify a unit of comparison that explains or mirrors market behavior. 4 Look for differences between the comparables being considered and the subject property using all appropriate elements of comparison. Then adjust the price of each comparable, reflecting how it differs to equate it to the subject property or eliminate that property as a comparable. This step typically involves using the most similar properties and then adjusting for any remaining differences. If a transaction does not reflect the actions of a buyer who would also be attracted to the subject property, an appraiser should be concerned about comparability and the wisdom of relying on that comparable as a basis for comparison. 5 Reconcile the various value indicators produced from the analysis of comparables into a value indication from the sales comparison approach. A value can be expressed as a single point estimate, as a range of values, or in terms of a relationship (e.g., more or less than a given amount). In terms of direct comparison, there are ten basic elements that should be factored into the technique. These consist of: 1. Real property rights conveyed (e.g., fee simple estate, leased fee, leasehold) 2. Financing terms (e.g., all cash, market financing, seller financing, special or atypical terms) 3. Conditions of sale (e.g., short sale, bank-owned real estate [REO], private estate, relocation, 1031 tax-free exchange, or other atypical motivations) 4. Expenditures made immediately after purchase (e.g., new roof, renovation costs) 5. Market conditions (e.g., changes in supply and demand or other causes of price changes) 6. Location (e.g., neighborhood, interior lot, waterfront, arterial street) 7. Physical characteristics (e.g., size, shape, soils, access, construction quality, condition 8. Economic characteristics (e.g., expense ratios, lease provisions, management, tenant mix 9. Legal characteristics (e.g., zoning/use requirements, environmental regulations, building codes, flood zones, differences in highest and best use) 10. Non-realty components of value (e.g., personal property, furniture, trade fixtures, and equipment [FF&E], franchises, trademarks) The sales comparison approach is reflective of the basic principles of Anticipation, Balance, Change, Competition, Contribution, Externalities, Opportunity Costs, Substitution, and Supply/Demand. The essence of comparison is direct similarity and that focuses on similarity of highest and best use and then physical characteristics. 163 - HOGAN REAL ESTATE APPRAISAL GROUP, LLC - 57 Land - Analysis of Sales: Property Rights Appraised: This is actually the first adjustment required in any sale-to-subject comparison. All sales shown represent the encumbered fee simple purchase of the underlying land and/or structural improvements. Confirmation of the sales did not uncover any encumbrances associated with the sales that had an impact on use or value, which is similar to the situation for the subject property. Therefore, no adjustment is required for property right variations in this appraisal. Sale No Location Sale Date Sales Price Improvement Value Site Size Unit Price $3,000,000 $0 $4,719,167 $0 $3,030,000 $0 $1,850,000 $0 $2,200,000 $0 $1,525,000 $0 $3,375,000 $0 Sale No. 6 Bounded on South by Burke and West by Max. Nov-23 $22.80 2.26 5.01 3.63 Sale No. 7 SEC Rawhide Ridge and North 19th Avenue Jun-24 3.40 NEC of Davis and Winter Park Apr-21Sale No. 3 Sale No. 4 SEC Catalyst and N 27th Sale No. 5 S 19th between Graf and Southbridge Dr.Current Listing $30.46 $29.84 $13.90 $21.24 $19.81 Sale No. 2 SEC S 11th and Opportunity Oct-23 Current listing Dec-23Sale No. 1 $15.49 NEC N 27 and Tschae Lane 2.26 2.00 2.55 164 - HOGAN REAL ESTATE APPRAISAL GROUP, LLC - 58 165 - HOGAN REAL ESTATE APPRAISAL GROUP, LLC - 59 166 - HOGAN REAL ESTATE APPRAISAL GROUP, LLC - 60 167 - HOGAN REAL ESTATE APPRAISAL GROUP, LLC - 61 168 - HOGAN REAL ESTATE APPRAISAL GROUP, LLC - 62 169 - HOGAN REAL ESTATE APPRAISAL GROUP, LLC - 63 170 - HOGAN REAL ESTATE APPRAISAL GROUP, LLC - 64 171 - HOGAN REAL ESTATE APPRAISAL GROUP, LLC - 65 Financing Terms: The sales were cash transactions or cash equivalent where a large cash down payment and an assumption of an underlying contract or new loan were part of the analysis. I have not adjusted for terms of sale as all of the transactions were reflective of cash or its equivalent price. In simple terms, I did not find any sale that was influenced by terms offered at the sales price. Conditions of Sale: In this instance, I refer to a situation where the seller may have been unduly influenced to sell the property such as a lender in an OREO position. The sales shown represent open, market transactions where they are referred to as "arms-length". Neither the seller nor the buyer was under any undue influence to sell or purchase. Market Conditions: A sale/resale of this type of property is the best determination of a time of sale adjustment. This is because there are quality and location issues that cannot be quantified when looking at paired sales. Interviews with brokers, agents, and other market participants brought forth a consensus that there has been a significant market conditions adjustment in this market since 2020. Most local real estate agents and brokers I interviewed indicated the market is improving and prices are much higher than previous levels. The following tabulation outlines a number of vacant land sale/resales extracted from the Big Sky Country MLS and located within a 10-mile radius of the subject location in Bozeman, Montana. The data represents a mixture of vacant land (residential lots) all with some level of residential zoning. These sales show a good representation of a rise in general market conditions. This is generally older data with closings occurring in 2020, 2021 and 2022. Subsequent to this tabulation are sale/resales and analysis of more recent closings. The sales analysis is based upon two separate market conditions. The first being at a slightly higher rate versus more recent sales. The market continues to increase but not at a rate seen during this initial timeframe. Sale Date New Price Sale Date Old Price Months Monthly Compound Lot 10 The Homestead 04/02/21 Lot 10 The Homestead 08/14/20 8 6.26% $1,150,000 $725,000 TBD Vista Lane 09/30/21 TBD Vista Lane 03/19/21 6 7.91% $650,000 $399,000 TBD Breeden (Lot 1) Drive 03/24/22 TBD Breeden (Lot 1) Drive 11/16/20 16 3.71% $532,000 $295,000 172 - HOGAN REAL ESTATE APPRAISAL GROUP, LLC - 66 TBD Tinkers Lane 02/24/22 TBD Tinkers Lane 07/17/20 19 3.75% $600,000 $295,000 TBD Moon Shadow Drive 10/27/20 TBD Moon Shadow Drive 07/23/20 3 6.50% $250,000 $204,950 TBD Moon Shadow Drive 04/16/21 TBD Moon Shadow Drive 10/27/20 6 10.35% $435,000 $250,000 657 Hyalite View Drive 10/22/21 657 Hyalite View Drive 07/01/20 16 3.81% $495,000 $275,000 Lot 30 Clancy Way 05/03/22 Lot 30 Clancy Way 12/27/21 4 5.85% $710,000 $560,000 TBD Lot 118 - Stonegate Drive 05/24/22 TBD Lot 118 - Stonegate Drive 08/28/20 21 4.21% $650,000 $275,000 256 Balsam Drive 07/01/21 256 Balsam Drive 07/08/20 12 5.87% $450,000 $230,000 TBD Bridger Lake Drive 10/14/22 TBD Bridger Lake Drive 03/26/21 19 2.20% $675,000 $450,000 Lot 45 TBD McClure Drive 01/25/22 Lot 45 TBD McClure Drive 11/25/20 14 4.34% $589,000 $325,000 Lot 4 Braveheart Loop 02/26/21 Lot 4 Braveheart Loop 08/31/20 6 2.29% $400,000 $350,000 TBD Braveheart Loop 01/19/21 TBD Braveheart Loop 08/31/20 5 2.96% $395,000 $345,000 Lot 152 Rising Sun Way 04/16/21 Lot 152 Rising Sun Way 09/04/20 7 8.19% $375,000 $210,000 Lot 152 Rising Sun Way 09/30/21 Lot 152 Rising Sun Way 04/16/21 5 1.14% $399,000 $375,000 Lot 13 Braveheart Loop 04/27/22 Lot 13 Braveheart Loop 10/13/20 18 2.91% $432,500 $255,000 173 - HOGAN REAL ESTATE APPRAISAL GROUP, LLC - 67 Lot 85 Black Bull Trail 05/28/21 Lot 85 Black Bull Trail 08/05/20 10 6.05% $425,000 $240,000 TBD St Andrews Drive 09/01/22 TBD St Andrews Drive 10/08/20 23 1.95% $250,000 $161,000 668 St Andrews 07/29/21 668 St Andrews 10/02/20 10 5.12% $270,000 $165,000 NHN Lot 4 Sourdough Road 06/16/23 NHN Lot 4 Sourdough Road 09/23/21 21 -0.14% $340,000 $350,000 2836 Blackbird Drive 04/10/23 2836 Blackbird Drive 07/10/20 33 1.34% $310,000 $199,900 4162 Tanzanite Drive 04/21/23 4162 Tanzanite Drive 04/09/21 24 0.45% $335,000 $300,000 Lot 4 Audubon Way 04/17/23 Lot 4 Audubon Way 01/06/22 15 0.33% $410,000 $390,000 5561 Westmorland Drive 02/19/21 5561 Westmorland Drive 07/01/20 8 4.34% $135,000 $97,500 Average 4.06% Median 3.81% Minimum -0.14% Maximum 10.35% The data set provides a good range of original sales dates from mid-2020 through the first part of 2022 and the resale dates occurring between January 2021 and June 2023. The overall range of market condition adjustments is from a low of -0.14% to a high end of 10.35%. The property that adjusted -0.14% is 0.37 acres and was originally bought in September 2021 for $350,000 and resold in June 2023 for $340,000. The average market adjustment from the data is 4.06%, and the mean is 3.81%. 174 - HOGAN REAL ESTATE APPRAISAL GROUP, LLC - 68 The above tabulation outlines the sale/resale of Sale No. 1 (1660 N 27th Street) as well as a number of other commercial properties located in the Bozeman marketplace. Sale No. 1 originally occurred in November 2020 for a price of $1,621,500. That property was re-listed on MLS and sold in December 2023 for a price of $3,000,000. That represents a 1.7% monthly compound adjustment over a roughly 36-month timeframe. The adjustment of the market conditions for the initial timeframe is based on this analysis. Timing coincides from the original sale date to December 2023. The tabulation below outlines a number of single-family residential lot sales. These sales generally occurred in 2022 and 2023 with subsequent resales in 2023, 2024 and 2025. The overall range of indications is from eight -0.84% to an upper end of 0.88%. The arithmetic mean of all sales is 0.31%. That is significantly below the tabulation noted above were the arithmetic mean of the slightly older sale/resales is 4.06%. Sale Date New Price Sale Date Old Price Months Monthly Compound 12/15/23 11/30/20 $3,000,000 $1,621,500 11/14/23 03/21/22 $579,900 $339,000 09/16/22 06/25/21 $595,000 $525,000 12/09/24 04/16/21 $485,000 $370,000 03/31/25 04/04/22 $700,000 $425,000 12/18/24 04/30/21 $1,325,000 $1,150,000 Low 14.7 0.32% High 43.8 2.75% Average 32.4 1.27% 1660 N 27th Street 1660 N 27th Street 36 1.70% 1716 W Main Street Unit#8F 1716 W Main Street Unit#8F 20 2.75% 4055 Valley Commons Unit#C 4055 Valley Commons Unit#C 36 1.40% 417 W Mendenhall Street 417 W Mendenhall Street 44 0.32% 2968 N 27th Unit#A 2968 N 27th Unit#A 15 0.85% 3825 Valley Commons Drive Unit#5 3825 Valley Commons Drive Unit#5 44 0.62% 175 - HOGAN REAL ESTATE APPRAISAL GROUP, LLC - 69 The tabulation below outlines a number of sales/resales of single-family residences. All of these were built after 2015, and the price increase is not a result of upgrades or modifications. Sale Date New Price Sale Date Old Price Months Monthly Compound 120 Clancy Way 06/28/24 120 Clancy Way 10/28/22 20 -0.34% $2,150,000 $2,300,000 173 Lion Peak Drive 01/28/25 173 Lion Peak Drive 05/19/23 20 -0.20% $955,000 $995,000 177 Rising Sun Way 11/06/24 177 Rising Sun Way 08/17/22 27 0.12% $2,450,000 $2,370,000 Sale Date New Price Sale Date Old Price Months Monthly Compound 01/17/25 05/24/23 $500,000 $485,000 11/30/23 03/24/22 $545,000 $532,000 11/17/23 07/01/22 $637,500 $565,000 02/10/25 03/18/22 $240,000 $200,000 05/04/23 07/01/21 $510,000 $450,000 06/24/24 03/15/22 $700,000 $675,000 10/18/24 10/22/21 $595,000 $495,000 02/27/25 09/01/22 $325,000 $250,000 01/12/24 10/12/22 $295,000 $335,000 11/01/24 11/21/22 $510,000 $475,000 Low 15.0 -0.84% High 35.9 0.88% Average 24.5 0.31% 198 Robert Court 198 Robert Court 17 0.73% 2091 Jacobs Street 2091 Jacobs Street 35 0.52% 1019 Bridger Lake Drive 1019 Bridger Lake Drive 20 0.15% 15 Breeden Drive 15 Breeden Drive 20 0.12% 657 Hyalite View 657 Hyalite View 36 0.51% 848 St Andrews Drive 848 St Andrews Drive 30 0.88% 256 Balsam Drive 256 Balsam Drive 22 0.57% 302 Clancy Way 302 Clancy Way 27 0.13% 939 Windrow Drive 939 Windrow Drive 15 -0.84% TBD Balsam Drive TBD Balsam Drive 23 0.30% 176 - HOGAN REAL ESTATE APPRAISAL GROUP, LLC - 70 1809 Ryun Sun Way 06/14/24 1809 Ryun Sun Way 09/27/23 9 0.33% $993,000 $965,000 207 Falconers Way 06/28/24 207 Falconers Way 01/25/23 17 0.35% $700,000 $659,900 22 Battle Peak Drive 06/06/24 22 Battle Peak Drive 10/03/22 20 0.20% $832,500 $799,900 23 Wickwire Way 11/25/24 23 Wickwire Way 08/26/22 27 0.11% $1,295,000 $1,257,000 2312 Blue Silos Way 06/28/24 2312 Blue Silos Way 12/22/22 18 0.44% $585,000 $540,000 2316 Gallatin Green Boulevard Unit#17 07/01/24 2316 Gallatin Green Boulevard Unit#17 05/01/23 14 0.26% $529,000 $510,000 2320 Gallatin Green Boulevard Unit#23 03/24/25 2320 Gallatin Green Boulevard Unit#23 11/11/22 28 0.50% $525,000 $455,900 2394 Renee Way 01/29/24 2394 Renee Way 05/10/22 21 0.00% $637,500 $637,500 24 Leafmaster Trail 12/17/24 24 Leafmaster Trail 02/03/23 22 0.01% $1,800,000 $1,795,000 2405 Blue Silos Way 09/04/24 2405 Blue Silos Way 12/07/22 21 -0.11% $649,900 $664,900 2423 Blackfeet Lane 06/28/24 2423 Blackfeet Lane 10/07/22 21 0.51% $1,584,500 $1,425,000 270 Ramshorn Peak Lane 08/23/24 270 Ramshorn Peak Lane 05/17/22 27 0.20% $569,900 $540,000 2769 Renee Way 12/20/24 2769 Renee Way 08/12/22 28 -0.39% $537,348 $600,000 177 - HOGAN REAL ESTATE APPRAISAL GROUP, LLC - 71 2822 S 29th Avenue 08/15/24 2822 S 29th Avenue 12/15/22 20 0.30% $1,167,500 $1,100,000 3009 S 30th Avenue 12/16/24 3009 S 30th Avenue 12/14/22 24 0.36% $1,525,000 $1,399,000 32 Aquila Court 09/06/24 32 Aquila Court 10/07/22 23 0.28% $1,600,000 $1,500,000 386 White Horse Loop 01/28/25 386 White Horse Loop 03/22/23 22 0.79% $1,250,000 $1,050,000 4133 Annie Street 10/29/24 4133 Annie Street 05/31/23 17 0.06% $1,375,000 $1,360,000 431 White Horse Loop 01/24/25 431 White Horse Loop 06/07/23 20 0.89% $1,250,000 $1,050,000 540 Valley Drive 04/18/24 540 Valley Drive 07/18/22 21 -0.43% $775,000 $848,000 5561 Westmorland Drive 06/28/24 5561 Westmorland Drive 06/15/22 24 0.22% $770,000 $729,900 5565 Westmorland Drive 07/28/23 5565 Westmorland Drive 06/15/22 13 0.29% $748,000 $719,900 63 W Hyalite Peak Drive 03/26/25 63 W Hyalite Peak Drive 08/10/23 20 0.06% $915,000 $905,000 663 Triple Tree Road 08/30/24 663 Triple Tree Road 09/19/22 23 0.00% $3,600,000 $3,600,000 854 Arrow Trail 05/09/24 854 Arrow Trail 09/23/22 20 0.68% $1,210,000 $1,060,000 897 White Horse Loop 07/19/24 897 White Horse Loop 06/30/23 13 1.73% $1,055,000 $849,000 178 - HOGAN REAL ESTATE APPRAISAL GROUP, LLC - 72 986 Cassandra Lane Unit#B 01/02/25 986 Cassandra Lane Unit#B 07/02/24 6 -2.03% $530,000 $600,000 Low 6.0 -2.03% High 28.4 1.73% Average 20.2 0.17% Overall, the Bozeman market appears to be increasing, albeit at a slightly slower rate than between 2020 and 2023. The average the single-family residential sales had an average difference of 20.2 months and a monthly compound adjustment of 0.17%. The single-family residential lot sales had a time difference average of 24.5% in a monthly compound increase of 0.31%. The commercial projects, including Sale No. 1, had an average increase of 1.27%. Sale No. 1 had an increase between late 2020 and late 2023 of 1.70%. There is a reasonable basis to conclude the market continues to increase albeit at a slower rate than in the previous two years to three years. The final conclusion is estimated at 0.25%, monthly compound adjustment from January 1, 2023, forward. The initial market conditions adjustment up to that point is at a higher rate of 1.75% per month, monthly compound adjustment. 179 - HOGAN REAL ESTATE APPRAISAL GROUP, LLC - 73 Location: -North is to top of map The above map shown above outlines the primary sales used within the analysis. The sales used for comparison are felt to be within a similar market area (overall) that allows for direct comparison without adjustment. Overall, I have not made a specific adjustment for location and consider the individual sales locations to be reasonably similar. Sale No. 2 and Sale No. 5 are located in the southerly area of Bozeman in closer proximity to Montana State University. The remainder of the sales data are located in the subject immediate neighborhood or north of the subject just west of North 19th Avenue. 180 - HOGAN REAL ESTATE APPRAISAL GROUP, LLC - 74 Size: The next issue of significance relates a size adjustment. Theory holds that a smaller parcel should sell for a higher unit price and conversely a larger tract should sell for a lower unit price. The subject represents a generally larger size residential parcel. While size definitely impacts the market (number of qualified buyers), the primary sales do not necessarily follow theory. The largest issue under size relates to the overall size of the subject property compared to the primary sales. The primary sales range in size from 2.0 acres to an upper end of 5.01 acres. It would appear there are other physical issues and zoning that impact the sales price more than size. Sale No. 1 and Sale No. 2 are zoned R5 and R3, respectively. Overall, the sales data is generally considered reasonably similar in terms of the net site area. Shape: Shape is considered when looking at physical utility of a property and whether the shape limits or restricts the use. The subject has a somewhat irregular shape; however, it does not impede on the allowed uses for the property. The same is true for all the primary sales. No adjustments were made for shape. Size (Acres) Sale No. Adjusted Per Acre 2.00 Sale No. 4 $21.24 2.26 Sale No. 6 $16.57 2.26 Sale No. 1 $31.70 2.55 Sale No. 5 $19.81 3.40 Sale No. 7 $23.37 3.63 Sale No. 2 $32.55 5.01 Sale No. 3 $25.05 181 - HOGAN REAL ESTATE APPRAISAL GROUP, LLC - 75 Zoning: Sale No.Zoning Qualitative Rating Sale No. 1 R5 Superior Sale No. 2 R3 Medium Density Residential Similar Sale No. 3 R3 -Residential Medium Density Similar Sale No. 4 RO Residential/Office Superior Sale No. 5 R3, medium density residential Similar Sale No. 6 B2 Superior Sale No. 7 M1; light manufacturing Superior The subject property currently falls under Gallatin County, residential zone and has never been annexed into the City of Bozeman. Scope of work requested a value the subject property assuming an R3 zoning, in the after and assuming the subject property has been annexed into the City of Bozeman, in the after. In the before, the city of Bozeman has indicated there are no significant issues with annexation or result of the subject property. Both Gallatin County and the City of Bozeman would desire this property to be within the city limits. For the most part, the sales are considered superior in terms of overall zoning. The sales are either zoned R5, R3, or RO and two sales are either commercial or light industrial zoning. In the final analysis, the R5 zoning is considered superior to the subject property given the lesser development potential associated with an R2 or R3 zoning. Residential low density district (R-1). The intent of the R-1 residential low density district is to provide for primarily single-household residential development and related uses within the city at urban densities. These purposes are accomplished by: Providing for a minimum lot size in developed areas consistent with the established development patterns while providing greater flexibility for clustering lots and housing types in newly developed areas. Providing for such community facilities and services as will serve the area's residents while respecting the residential character and quality of the area. Residential moderate density district (R-2). The intent of the R-2 residential moderate density district is to provide for one- and two-household residential development at urban densities 182 - HOGAN REAL ESTATE APPRAISAL GROUP, LLC - 76 within the city in areas that present little or no development constraints. These purposes are accomplished by: Providing for minimum lot sizes in developed areas consistent with the established development patterns while providing greater flexibility for clustering lots and housing types in newly developed areas. Providing for community facilities to serve such development while respecting the residential quality and nature of the area. Use of this zone is appropriate for areas with moderate access to parks, community services and/or transit. Residential medium density district (R-3). The intent of the R-3 residential medium density district is to provide for the development of one- to five-household residential structures near service facilities within the city. This purpose is accomplished by: Providing for minimum lot sizes in developed areas consistent with the established development patterns while providing greater flexibility for clustering lots and mixing housing types in newly developed areas. Providing for a variety of housing types, including single household dwellings, two to four household dwellings, and townhouses to serve the varied needs of households of different size, age, and character, while reducing the adverse effect of non-residential uses. Use of this zone is appropriate for areas with good access to parks, community services and/or transit. Residential high density district (R-4). The intent of the R-4 residential high density district is to provide for high-density residential development through a variety of housing types within the city with associated service functions. This purpose is accomplished by: Providing for minimum lot sizes in developed areas consistent with the established development patterns while providing greater flexibility for clustering lots and mixing housing types in newly developed areas. Providing for a variety of compatible housing types, including single and multi- household dwellings to serve the varying needs of the community's residents. Allowing office use as a secondary use, measured by percentage of total building area. Use of this zone is appropriate for areas adjacent to mixed-use districts, commercial districts, and/or served by transit to accommodate a higher density of residents in close proximity to jobs and services. Residential mixed-use high density district (R-5). The intent of the R-5 residential mixed-use high density district is to provide for high-density residential development through a variety of compatible housing types and residentially supportive commercial uses in a geographically compact, walkable area to serve the varying needs of the community's residents. These purposes are accomplished by: Providing for a mixture of housing types, including single and multi-household dwellings to serve the varying needs of the community's residents. Allowing offices and small scale retail and restaurants as secondary uses provided special standards are met. Use of this zone is appropriate for areas adjacent to mixed-use districts and/or served by transit to accommodate a higher density of residents in close proximity to jobs and services. 183 - HOGAN REAL ESTATE APPRAISAL GROUP, LLC - 77 Residential-office district (R-O). The intent of the R-O residential-office district is to provide for and encourage the development of multi-household and apartment development and compatible professional offices and businesses that would blend well with adjacent land uses. These purposes are accomplished by: Providing for a mixture of housing types, including single and multi-household dwellings to serve the varying needs of the community's residents. Use of this zone is appropriate for areas characterized by office or multi-household development; and/or areas along arterial corridors or transitional areas between residential neighborhoods and commercial areas. I did look at Sale No. 1 and Sale No. 2. Sale No. 1 is zoned R5, and Sale No. 2 is zoned R3. These two properties closed in December 2023 and October 2023. The size is reasonably similar between these two sales with Sale No. 1 having a gross site area of 2.26 acres and Sale No. 2 having a gross site area of 3.63 acres. The initial indications are reasonably similar at $30.46 per square foot and $29.84 per square foot. The subject property has never been annexed into the City of Bozeman and represents a misplaced zoning. Conversations with the City of Bozeman indicated there would be no issues with annexation and rezoning. I spoke with Sanbel, the client, who indicated the total professional services fees as well as city fees and annexation cost would be roughly $28,000. Overall, the issue of annexation is fairly minimal given the overall size and scope of the subject larger parcel. Annexation costs are roughly $0.08 per square foot for the subject in the before. Utilities The subject and all the sales are regarded as similar within the analysis. There is no difference between the subject and any of the sales in terms of availability of utilities for a residential location within the City of Bozeman. Access: Access is regarded as similar to the subject as all have access from public roads. Overall, the issue of access is somewhat intermingled with location and no adjustments were made for access. Road Frontage: The subject has an asphalt improved road frontage, as do all the sales. Sale No. 7 is considered superior in terms of the overall location along 19th Avenue. Corner: The subject property has primary access from multiple roadways. A corner influence is not considered significant within this market area. 184 - HOGAN REAL ESTATE APPRAISAL GROUP, LLC - 78 Water Resources/Irrigation: The subject property does have an irrigation ditch that runs north to south through the center of the property. None of the primary sales have any water resources associated with their property. I was unable to extract any market data to apply a monetary adjustment for the irrigation ditch. This is not considered a significant benefit, and no adjustment is applied. Topography: When considering topography and necessary adjustments, use is considered. The primary importance here is the subject as well as the sales, each have a level terrain. No adjustments were made. Vegetation/Tree Cover: Adjustments for vegetation or tree cover are primarily associated with the tree or timber cover or merchantable timber or whether a significant expense would be incurred to clear the property for development. The subject and all of the sales are relatively open or have no tree cover and no adjustments were made. Flood Hazard: The subject and all of the sales are located in low-risk Flood Zone X, according to the FEMA site. No adjustments needed for flood hazard. Improvements: The subject has an older pole frame garage built in 1978 that has reached the end of its useful life. Value was based on the underlying land and no value was given to this structure as it is not included in the highest and best use of the subject property and removal would be expected. Demolition costs would likely be incurred to remove the structure for residential development, but the overall impact is likely insignificant. Easements/Encroachments: The subject property has a total of 2.04 acres situated within ditch setbacks which are a no build easement. The net site area in the before is 346,202 sq.ft. This area can be used as parkland but does not count toward the parkland requirements. Therefore, I have deducted the no build ditch easement and used a net site area calculation in the before. It has a fairly limited overall use/value given the location, setbacks, in fact it cannot be counted toward the parkland requirements. 185 - HOGAN REAL ESTATE APPRAISAL GROUP, LLC - 79 Sale No. 6 had an 80 foot no build creek corridor along the westerly boundary. There is also a 26-foot maximum height from the covenants. Gross Site Area 434,673 Area 2 15,213 Area 3 11,214 Area 8 24,326 Area 9 37,718 Ditch Setbacks 88,471 Net Site Area, Before 346,202 Before 186 - HOGAN REAL ESTATE APPRAISAL GROUP, LLC - 80 Sale No. 1 - Overall Land Analysis: Subject Sale No. 1 Adjustment Size 2.26 Unit Price $30.46 Date of Sale Dec-23 Market Conditions No. 1 Dec-23 $0.00 Market Conditions No. 1 Time Lapse (months) 0 Date of Value Apr-25 Market Conditions No. 2 Time Lapse (months) 16 Market Conditions No. 2 $31.70 $1.24 Adjustments: Property Rights $0.00 Financing Terms $0.00 Conditions of Sale $0.00 Market Conditions $1.24 Adjusted Base Unit Price $31.70 Physical Conditions: Location West Bozeman NEC N 27 and Tschae Lane Similar Size 7.94 2.26 Superior Shape Irregular Mostly rectangular. Similar Vegetation/Tree Cover Mix of tree cover and open areas. Open Similar Frontage Asphalt improved city maintained. City maintained asphalt Similar Topography Level Level Similar Access Hanson St. along the west boundary, as well as Annie St. from the northwesterly boundary. North 27 and Breeze Lane Similar Utilities All city services All city services Similar Zoning Would require change to R2, R3 in the before. R5 Superior Corner No Yes Similar Flood Hazard Zone X - FEMA panels 30031C0804D & 3031C0812D eff. 9/2/2011 None Similar Visibility Good Good Similar Viewshed Average Average Similar Environmental None known. None noted Similar Wetlands None. None noted Similar Easements None noted. None Noted Similar Water; onsite Irrigation ditch runs north south bisecting the property. None. Similar Lower than $31.70Overall Qualitative Rating 187 - HOGAN REAL ESTATE APPRAISAL GROUP, LLC - 81 Sale No. 2 – Overall Land Analysis: Subject Sale No. 2 Adjustment Size 3.63 Unit Price $29.84 Date of Sale Oct-23 Market Conditions No. 1 Dec-23 $1.25 Market Conditions No. 1 Time Lapse (months) 2 Date of Value Apr-25 Market Conditions No. 2 Time Lapse (months) 18 Market Conditions No. 2 $32.55 $1.46 Adjustments: Property Rights $0.00 Financing Terms $0.00 Conditions of Sale $0.00 Market Conditions $2.71 Adjusted Base Unit Price $32.55 Physical Conditions: Location West Bozeman SEC S 11th and Opportunity Similar Size 7.94 3.63 Superior Shape Irregular Rectangular Similar Vegetation/Tree Cover Mix of tree cover and open areas. None Similar Frontage Asphalt improved city maintained. Asphalt improved city maintained Similar Topography Level Level Similar Access Hanson St. along the west boundary, as well as Annie St. from the northwesterly boundary. Opportunity, S 11th and Student Drive Similar Utilities All city services All city services Similar Zoning Would require change to R2, R3 in the before. R3 Medium Density Residential Similar Corner No Yes Similar Flood Hazard Zone X - FEMA panels 30031C0804D & 3031C0812D eff. 9/2/2011 None Similar Visibility Good Good Similar Viewshed Average Average Similar Environmental Issues None known. None noted Similar Wetlands None. None. Similar Easements None noted. None Noted Similar Water; onsite Irrigation ditch runs north south bisecting the property. None Similar Lower than $32.55Overall Qualitative Rating 188 - HOGAN REAL ESTATE APPRAISAL GROUP, LLC - 82 Sale No. 3 – Overall Land Analysis: Subject Sale No. 3 Adjustment Size 5.01 Unit Price $13.90 Date of Sale Apr-21 Market Conditions No. 1 Dec-23 $10.17 Market Conditions No. 1 Time Lapse (months) 32 Date of Value Apr-25 Market Conditions No. 2 Time Lapse (months) 16 Market Conditions No. 2 $25.05 $0.98 Adjustments: Property Rights $0.00 Financing Terms $0.00 Conditions of Sale $0.00 Market Conditions $11.15 Adjusted Base Unit Price $25.05 Physical Conditions: Location West Bozeman NEC of Davis and Winter Park Similar Size 7.94 5.01 Superior Shape Irregular Generally rectangular Similar Vegetation/Tree Cover Mix of tree cover and open areas. Good tree cover. Similar Frontage Asphalt improved city maintained. Asphalt improved, city maintained Similar Topography Level Level. Similar Access Hanson St. along the west boundary, as well as Annie St. from the northwesterly boundary. Davis, Winter Park, Windward and Autumn Grove Similar Utilities All city services All city services Similar Zoning Would require change to R2, R3 in the before. R3 -Residential Medium Density Similar Corner No Yes Similar Flood Hazard Zone X - FEMA panels 30031C0804D & 3031C0812D eff. 9/2/2011 None Similar Visibility Good Average Similar Viewshed Average Average Similar Environmental Issues None known. None noted Similar Wetlands None. None Similar Easements None noted. None Noted Similar Water; onsite Irrigation ditch runs north south bisecting the property. None. Similar Equal $25.05Overall Qualitative Rating 189 - HOGAN REAL ESTATE APPRAISAL GROUP, LLC - 83 Sale No. 4 – Overall Land Analysis: Subject Sale No. 4 Adjustment Size 2.00 Unit Price $21.24 Date of Sale Current listing Market Conditions No. 1 Dec-23 $0.00 Market Conditions No. 1 Time Lapse (months) 0 Date of Value Apr-25 Market Conditions No. 2 Time Lapse (months) 0 Market Conditions No. 2 $21.24 $0.00 Adjustments: Property Rights $0.00 Financing Terms $0.00 Conditions of Sale $0.00 Market Conditions $0.00 Adjusted Base Unit Price $21.24 Physical Conditions: Location West Bozeman SEC Catalyst and N 27th Similar Size 7.94 2.00 Superior Shape Irregular Mostly rectangular Similar Vegetation/Tree Cover Mix of tree cover and open areas. None Similar Frontage Asphalt improved city maintained. Asphalt improved, city maintained Similar Topography Level Level Similar Access Hanson St. along the west boundary, as well as Annie St. from the northwesterly boundary. Catalyst and N 27th Similar Utilities All city services All city services Similar Zoning Would require change to R2, R3 in the before. RO Residential/Office Superior Corner No Yes Similar Flood Hazard Zone X - FEMA panels 30031C0804D & 3031C0812D eff. 9/2/2011 None Similar Visibility Good Good Similar Viewshed Average Average Similar Environmental Issues None known. None noted Similar Wetlands None. None Similar Easements None noted. None Noted Similar Water; onsite Irrigation ditch runs north south bisecting the property. None Similar Lower than $21.24Overall Qualitative Rating 190 - HOGAN REAL ESTATE APPRAISAL GROUP, LLC - 84 Sale No. 5 – Overall Land Analysis: Subject Sale No. 5 Adjustment Size 2.55 Unit Price $19.81 Date of Sale Current Listing Market Conditions No. 1 Dec-23 $0.00 Market Conditions No. 1 Time Lapse (months) 0 Date of Value Apr-25 Market Conditions No. 2 Time Lapse (months) 0 Market Conditions No. 2 $19.81 $0.00 Adjustments: Property Rights $0.00 Financing Terms $0.00 Conditions of Sale $0.00 Market Conditions $0.00 Adjusted Base Unit Price $19.81 Physical Conditions: Location West Bozeman S 19th between Graf and Southbridge Dr.Similar Size 7.94 2.55 Superior Shape Irregular Generally square. Similar Vegetation/Tree Cover Mix of tree cover and open areas. None. Similar Frontage Asphalt improved city maintained. City of Bozeman asphalt Similar Topography Level Level Similar Access Hanson St. along the west boundary, as well as Annie St. from the northwesterly boundary. South 27th Avenue Similar Utilities All city services All city services Similar Zoning Would require change to R2, R3 in the before. R3, medium density residential Similar Corner No No Similar Flood Hazard Zone X - FEMA panels 30031C0804D & 3031C0812D eff. 9/2/2011 None Similar Visibility Good Good Similar Viewshed Average Average Similar Environmental Issues None known. None noted Similar Wetlands None. None noted Similar Easements None noted. None Noted Similar Water; onsite Irrigation ditch runs north south bisecting the property. None. Similar Lower than $19.81Overall Qualitative Rating 191 - HOGAN REAL ESTATE APPRAISAL GROUP, LLC - 85 Sale No. 6 – Overall Land Analysis: Subject Sale No. 6 Adjustment Size 2.26 Unit Price $15.49 Date of Sale Nov-23 Market Conditions No. 1 Dec-23 $0.38 Market Conditions No. 1 Time Lapse (months) 1 Date of Value Apr-25 Market Conditions No. 2 Time Lapse (months) 17 Market Conditions No. 2 $16.57 $0.70 Adjustments: Property Rights $0.00 Financing Terms $0.00 Conditions of Sale $0.00 Market Conditions $1.08 Adjusted Base Unit Price $16.57 Physical Conditions: Location West Bozeman Bounded on South by Burke and West by Max. Similar Size 7.94 2.26 Superior Shape Irregular Mostly rectangular Similar Vegetation/Tree Cover Mix of tree cover and open areas. None Similar Frontage Asphalt improved city maintained. Asphalt improved city street Similar Topography Level Mostly sloping. Similar Access Hanson St. along the west boundary, as well as Annie St. from the northwesterly boundary. Bounded on S by Burke, W by Max and Similar Utilities All city services All city services Similar Zoning Would require change to R2, R3 in the before. B2 Superior Corner No Yes Similar Flood Hazard Zone X - FEMA panels 30031C0804D & 3031C0812D eff. 9/2/2011 None Similar Visibility Good Good Similar Viewshed Average Average Similar Environmental Issues None known. None noted Similar Wetlands None. Some along creek. Similar Easements None noted. Some along creek. Similar Water; onsite Irrigation ditch runs north south bisecting the property. Small creek Similar Lower than $16.57Overall Qualitative Rating 192 - HOGAN REAL ESTATE APPRAISAL GROUP, LLC - 86 Sale No. 7 – Overall Land Analysis: Subject Sale No. 7 Adjustment Size 3.40 Unit Price $22.80 Date of Sale Jun-24 Market Conditions No. 1 Dec-23 $0.00 Market Conditions No. 1 Time Lapse (months) 0 Date of Value Apr-25 Market Conditions No. 2 Time Lapse (months) 10 Market Conditions No. 2 $23.37 $0.57 Adjustments: Property Rights $0.00 Financing Terms $0.00 Conditions of Sale $0.00 Market Conditions $0.57 Adjusted Base Unit Price $23.37 Physical Conditions: Location West Bozeman Rawhide Ridge and 19th Similar Size 7.94 3.40 Superior Shape Irregular Rectangular Similar Vegetation/Tree Cover None None. Similar Frontage Asphalt improved city street Asphalt; city maintained Similar Topography Mostly sloping. Level. Similar Access Bounded on S by Burke, W by Max and Rawhide Ridge Similar Utilities All city services All city services Similar Zoning Would require change to R2, R3 in the before. M1; light manufacturing Superior Corner No Typical Similar Flood Hazard Zone X - FEMA panels 30031C0804D & 3031C0812D eff. 9/2/2011 None Similar Visibility Good Good Similar Viewshed Average Average Similar Environmental Issues None known. None noted Similar Wetlands None. None noted Similar Easements None noted. None Noted Similar Water; onsite Irrigation ditch runs north south bisecting the property. None. Similar Lower than $23.37Overall Qualitative Rating 193 - HOGAN REAL ESTATE APPRAISAL GROUP, LLC - 87 Reconciliation: Sale No. Qualitative Rating Indication Inferior Rating Superior Rating Size, Zoning Size Size Size, Zoning Size Size, Zoning Size, Zoning Low Indication $16.57 High Indication $32.55 Arithmetic Mean $24.33 Sale No. 1 Lower than $31.70 Sale No. 2 Lower than $32.55 Sale No. 3 Equal $25.05 Sale No. 4 Lower than $21.24 Sale No. 5 Lower than $19.81 Sale No. 6 Lower than $16.57 Sale No. 7 Lower than $23.37 The sales analyzed compare reasonably well to the subject property. Below is a summary of the qualitative differences between each sale and the subject property. Sales 1, 2, and 3 are closed transactions, while Sales 4 and 5 are current listings of residential development properties. Sales 6 and 7 are located in the subject property’s immediate neighborhood but have more commercial influences compared to the subject’s residential highest and best use. Sale No. 1 is one of the best primary sale indications for the subject property, despite its smaller size. Located in the same neighborhood north of West Oak Street along North 27th Avenue, this 2.26-acre property sold for $3,000,000, or $30.46 per square foot. After market conditions adjustments, the indication is $31.70 per square foot, with size and zoning considered superior to the subject property. Sale No. 2 is located along South 11th Avenue, south of Montana State University, in a generally comparable neighborhood. This 3.63-acre property sold for $29.84 per square foot. After market conditions adjustments, the indication is $32.55 per square foot, with size and zoning considered superior. Sale No. 3, a slightly older sale, is located directly north of the subject property on the eastern side of Davis Lane, between East Baxter and West Oak Streets. This 5.01-acre property, zoned R3 medium-density residential, sold in April 2021 for $13.90 per square foot. After market conditions adjustments, the indication is $25.05 per square foot, with size and zoning considered superior. The size difference (5.01 acres versus the subject’s 9.98 acres gross) may not be a significant factor. Sale No. 4 is a current listing at the southwest corner of Catalyst and North 27th Avenue, in a generally comparable area west of North 19th Avenue. This 2.0-acre tract, zoned 194 - HOGAN REAL ESTATE APPRAISAL GROUP, LLC - 88 residential/office, is listed for $1,850,000, or $21.24 per square foot, and has been on the market for approximately 41 days. Sale No. 5 is a current listing along South 19th Avenue at West Graf Street, just south of Montana State University’s campus. This 2.55-acre property is listed for $2,200,000, or $19.81 per square foot. Sale No. 6 is a 2.26-acre tract at the northeastern corner of Burke and Max, zoned B-2. Sold in November 2023 for $1,525,000, it indicates $16.51 per square foot. Sale No. 7 is a 3.40-acre property at the southeast corner of Rawhide Ridge and North 19th Avenue, zoned M1 (light manufacturing district) but with a commercial highest and best use due to its location. Sold in June 2024 for $3,375,000, it indicates $22.80 per square foot. The overall range of indications is $16.51 to $32.55 per square foot. Sales 6 and 7 are excluded from final consideration due to their commercial highest and best use. The primary sales and listings with residential development potential range from $19.81 to $32.55 per square foot, with an arithmetic mean of $26.07 per square foot for Sales 1, 2, 3, and the two listings. Sales 1 and 2, significantly smaller than the subject, set the upper end of the range at $31.70 and $32.55 per square foot, respectively. Sale No. 3, more similar in size but older, indicates $25.05 per square foot. The two listings provide lower indications of $19.81 and $21.24 per square foot. Considering all factors, a midrange value of $24.00 per square foot is concluded for the subject property. 195 - HOGAN REAL ESTATE APPRAISAL GROUP, LLC - 89 Owner/Developer Road Costs: Development of the subject property would require the owner/developer to pay 100% of the cost for Annie Street and 20% of the cost for Fowler Avenue. There would also be costs for the storm, water and sewer systems. The total development cost for the subject property, in the before is $3,121,795. Total Costs Amount Annie Street Road and Utilities $1,949,222 Annie Storm $273,250 Annie Water $95,256 Annie Sewer $117,482 Annie Street Road Costs $1,463,234 Fowler Street Road and Utilities $3,242,695 Fowler Storm $415,815 Fowler Water $44,633 Fowler Sewer $194,594 Fowler Road Costs $2,587,653 Anderson 20% $517,531 Anderson Costs Amount Fowler $1,172,573 Annie $1,949,222 Total Anderson Costs $3,121,795 196 - HOGAN REAL ESTATE APPRAISAL GROUP, LLC - 90 Category Amount Subject Size 346,202 Per SF $24.00 Before Road/Utility Costs $8,308,848 Less Road/Utility Costs $3,121,795 Net Indicated Value $5,187,053 Per SF Net Site Area $14.98 Rounded to, before $5,190,000 Before Factual Data – After Acquisition Legal Description – After: No legal description in the after was provided by the client. It is assumed the legal description will be a metes and bounds description or lot and block description outlining the remainder areas north and south of Annie Street. Neighborhood Factors: The subject property is situated in the path of development within this area of Bozeman. The subject property is generally surrounded by new single-family residential development. The proposed project represents an extension of Fowler Avenue which is a north south roadway through this area of Bozeman. The property also extends Annie Street across the subject property to the west. There is no significant impact to the overall neighborhood by the imposition of the proposed project. It is designed to provide better traffic flow at this main intersection as well as provide additional access throughout the neighborhood. Property Data: Size: Gross Site Area 434,673 Fowler Street 4.85 Annie Street 0.41 Acquisition 5.26 Acquisition SF 229,024 197 - HOGAN REAL ESTATE APPRAISAL GROUP, LLC - 91 The total net site area consists of that area north of Annie Street containing 57,605 ft.² in the area south of Annie Street containing 108,501 ft.². The total net site area in the after is 166,106 ft.². Area 1 57,605 Area 7 108,501 Net Site Area, After 166,106 After 198 - HOGAN REAL ESTATE APPRAISAL GROUP, LLC - 92 Shape/Configuration: There is some change to the overall shape and configuration of the subject property. The imposition of the project will acquire right-of-way for both Fowler and Alice Street. This does have a fairly significant impact on the subject property given both the amount of right-of-way required as well as the location of the two right-of-way corridors. The remainder will consist of an area north and south of Annie Street. Access: Annie Street will provide access to both remainder parcels. Utilities: No change. Topography: No change. Vegetation/Timber: No change. Flood Hazard: No change. Minerals: No change. Water Resources: No change. Gallatin County Land Categories: No change. Resources: No change. Roads and Fences: There will be a new roundabout interchange along Annie Street and the extension of Fowler on the subject right-of-way. Annie Street currently dead ends along the easterly boundary of the subject property but in the after, will extend through the subject. Use History: No change. Sales History: No change. Structural Improvements: No change. Fixtures: There are no fixtures associated with the subject property. Assessed Value and Tax Load: The subject property will have a significantly lower tax burden given the amount of land in the after. 199 - HOGAN REAL ESTATE APPRAISAL GROUP, LLC - 93 Zoning and Other Land Use Regulations: In the after, the subject property is assumed to be zoned R3 which is a residential zone administered by the City of Bozeman. Rental History: I am unaware if the subject property has been rented during the last three years. Encumbrances: The subject property will have the right-of-way encumbrances associated with the proposed right-of-way. There are no other significant encumbrances based on the plans provided. Highest and Best Use – After: Legally Permissible: In the after, the subject property is assumed to be R3 based on scope of work conditions from the client. However, the overall impact, as stated above, is fairly minimal. There are costs associated with annexation such as professional service fees, city application and annexation fees. However, as stated those are minimal and do not have a significant impact on value. Physically Possible: There is a significant change to the physical characteristics of the site. In the after, given the acquisition of Fowler Avenue and Annie Street the remainder property consists of two lots, north and south of Annie Street. However, there is no significant difference in terms of physically possible in the after. As with the before analysis, there are several very important elements to the use of this property such as the zoning, location, and access. The subject property remains to have components that are generally positive to single-family residential development use. Financially Feasibility & Maximally Productive: The subject property has similar financial feasibility and maximally productive categories. As discussed, the property has similar feasibility with only the loss of the right-of-way which does consist of a significant portion but there remains development land in the after. Area 1, North of Annie 57,605 Area 7, South of Annie 108,501 Net Site Area, After 166,106 After 200 - HOGAN REAL ESTATE APPRAISAL GROUP, LLC - 94 Who is the Most Likely Buyer: The most likely buyer is likely similar, before and after. There are no significant issues with the most likely buyer. Timing of the Use: The timing of the use is generally, immediate. The same general analysis is consistent before and after. There are likely immediate buyers of the subject, analyzing the physical characteristics and financial feasibility of the property. Highest & Best Use of Land Only: The primary economic use for the subject, in the after is for or residential development use. Reconciliation, After: There is some potential for a slightly higher value given the subject property, in the after, represents two separate tracts and both smaller than the subject in the before. The actual cost associated with annexation and zone changes fairly limited. The City of Bozeman and Gallatin County both desire the subject property to be within city limits and there are no significant issues or hurdles associated. The one issue could be an issue of size and two distinct and smaller parcels in the after. It is likely there is some potential there is no significant size difference, but given to smaller parcels I have concluded with a value in the after for the upper end of the range given the two parcels, each with slightly smaller sizes. The final conclusion is estimated at $30.00 per square foot, which represents the upper end of the range. Development Costs, After: Development costs in the after consist of the cost for Annie Street as well as all utility costs. There would be no utility costs for Fowler given those utilities would be served from the Annie Street side. Therefore, only the 20% of Fowler Avenue or $517,531 is included. The total development costs in the after are estimated at $2,466,753. Development Costs, After Amount Annie Street Road and Utilities $1,949,222 Fowler Street $517,531 Total, After $2,466,753 201 - HOGAN REAL ESTATE APPRAISAL GROUP, LLC - 95 Benefits: When a property is found to have benefited from or been enhanced by a project in a manner that there is an increase in value, this benefit can only be credited against depreciation to the remainder. The benefit cannot be applied against the value of the property acquired. Benefits, as well as depreciation, to the remainder must be apparent and must accrue at the time of the acquisition. Neither benefits nor depreciation should be speculative in nature. There are no benefits found with the subject property specific to the proposed acquisition other than the hypothetical condition. Just Compensation: Just compensation is defined by the Montana Department of Transportation Right of Way Operations Manual Chapter 3, Appraisal dated December 2023. It is the intent of “just compensation” to make the owner of an impacted property “whole.” In other words, because of just compensation, the property owner is no worse off after the acquisition as the property owner was prior to the acquisition. This does not mean that the affected property owner will be in the same situation after the taking as before, but the intent is that the owner will be no richer or poorer by reason of the acquisition. Category Amount Subject Size 166,106 Per SF $30.00 Before Road/Utility Costs $4,983,180 Less Road/Utility Costs $2,466,753 Net Indicated Value $2,516,427 Per SF Net Site Area $15.15 Rounded to, after $2,520,000 After 202 - HOGAN REAL ESTATE APPRAISAL GROUP, LLC - 96 VALUE ESTIMATE AND CERTIFICATION The undersigned does hereby certify that (except as otherwise noted in this appraisal report): 1. The statements of fact contained in this report are true and correct. 2. The reported analysis, opinions, and conclusions are limited only by the reported assumptions and limiting conditions and are my personal, impartial and unbiased professional analyses, opinions and conclusions. 3. I have no present or prospective interest in the property that is the subject of this report and have no personal interest with respect to the parties involved. 4. I have performed services as an appraiser, regarding the property that is the subject of this report within a three year period immediately preceding acceptance of this assignment. I completed an appraisal of the subject property with an as is date of value of July 18, 2023. This report included the same scope of work with the exception of the extension of Annie Street, which was not included within the original analysis. I also completed an appraisal of the subject property dated April 29, 2025. That property was under different assignment conditions generally based upon facts unknown at the time of the appraisal. 5. I have no bias with respect to the property that is the subject of this report or to the parties involved with this assignment. 6. My engagement in this assignment was not contingent upon developing or reporting predetermined results. 7. My compensation for completing this assignment was not contingent upon the development or reporting of a predetermined value or direction in value that favors the cause of the client, the amount of the value opinion, the attainment of a stipulated result, or the occurrence of a subsequent event directly related to the intended use of this appraisal. 8. My analysis, opinions, and conclusions were developed, and this report has been prepared in conformity with the Uniform Standards of Professional Appraisal Practice. 9. I have made a personal inspection of the property that is the subject of this report. 10. No one provided significant professional assistance in completing this report. 11. As of the date of this report, Nicholas J. Hogan, MAI, has completed the continuing education program of the Appraisal Institute. 12. The use of this report is subject to the requirements of the Appraisal Institute relating to review by its duly authorized representatives. 203 - HOGAN REAL ESTATE APPRAISAL GROUP, LLC - 97 13. This report is in compliance with applicable regulations governing appraisal services and appraisal reporting requirements for the State of Montana. Recapitulation of the Compensation: NICHOLAS J. HOGAN, MAI MT General Certificate No: REA-RAG-LIC-370 Expires: 3/31/26 Category Amount Subject Size 346,202 Per SF $24.00 Before Road/Utility Costs $8,308,848 Less Road/Utility Costs $3,121,795 Net Indicated Value $5,187,053 Per SF Net Site Area $14.98 Rounded to, before $5,190,000 Category Amount Subject Size 166,106 Per SF $30.00 Before Road/Utility Costs $4,983,180 Less Road/Utility Costs $2,466,753 Net Indicated Value $2,516,427 Per SF Net Site Area $15.15 Rounded to, after $2,520,000 Difference $2,670,000 Before After 204 ADDENDA 205 ASSUMPTIONS AND LIMITING CONDITIONS By this notice, all persons and firms reviewing, utilizing or relying on this report in any manner bind themselves to accept these assumptions and limiting conditions. Do not use this report if you do not so accept. These conditions are a part of the appraisal report, they are a preface to any certification, definition, fact or analysis, and are intended to establish as a matter of record that the appraiser's function is to provide a present market value indication for the subject property based upon the appraiser's observations as to the subject property and the local and/or regional real estate market. This appraisal report is an economic study to estimate value as defined in it. It is not an engineering, construction, legal or architectural study nor survey and expertise in these areas, among others, is not implied. 1. LIMIT OF LIABILITY: The liability of the firm Hogan Real Estate Appraisal Group, LLC and employees and affiliated independent contractors is limited to the CLIENT ONLY AND TO THE FEE ACTUALLY RECEIVED BY APPRAISER (TOTAL PER APPRAISAL). FURTHER, THERE IS NO ACCOUNTABILITY, OBLIGATION, OR LIABILITY to any third party. If this report is placed in the hands of anyone other than the client, the client shall make such assignment and related discussions. The Appraiser is in no way to be responsible for any costs incurred to discover or correct any deficiencies of any type present in the property; physically, financially, and/or legally. In the case of limited partnerships or syndication offerings or stock offerings in real estate, client agrees that in case of lawsuit (brought by lender, partner, or part owner in any form of ownership, tenant, or any other party), any and all awards, settlements of any type in such suit, regardless of outcome, client will hold Appraiser completely harmless in any such action. 2. COPIES, PUBLICATION, DISTRIBUTION, USE OF REPORT: Possession of this report or any copy thereof does not carry with it the right of publication, nor may it be used for other than its intended use; the physical report(s) remain the property of Hogan Real Estate Appraisal Group, LLC for the use of the client; the fee being for the analytical services only. The Bylaws and Regulations of the Appraisal Institute require each Member and Candidate to control the use and distribution of each appraisal report signed by such Member or Candidate except as hereinafter provided, the client may distribute copies of this appraisal report in its entirety to such third parties as he may select; HOWEVER, selected portions of this appraisal report shall NOT be given to third parties without the prior written consent of the signatories of this appraisal report. Neither all nor any part of this appraisal report shall be disseminated to the general public by the use of advertising media, public relations, news, sales or other media for public communication without the prior written consent of the Appraiser. 3. CONFIDENTIALITY: This appraisal is to be used only in its entirety and no part is to be used without the whole report. All conclusions and opinions concerning the analysis as set forth in the report were prepared by the Appraiser(s) whose signature(s) appear on the appraisal report, unless indicated as "Review Appraiser". No change of any item in the report shall be made by anyone other than the Appraiser and/or officer of the firm. The Appraiser and firm shall have no responsibility if any such unauthorized change is made. The Appraiser may not divulge the material (evaluation) contents of this report, analytical findings or conclusions, or give a copy of the report to anyone other than the client or his designee as specified in writing except as may be required by the Appraisal Institute as they may request in confidence for ethics enforcement, or by a court of law or body with the power of subpoena. Sales information obtained during the course of this appraisal assignment is the Appraiser's and it can be used or exchanged without consent of the client. 4. TRADE SECRETS: This appraisal was obtained from Hogan Real Estate Appraisal Group, LLC and/or its individuals or related independent contractors and consists of "trade secrets and commercial or financial information" which is privileged and confidential and exempted from disclosures under 5 U.S.C. 552 (b) (4). Notify the Appraiser(s) signing report or a principal in Hogan Real Estate Appraisal Group, LLC for any request to reproduce this appraisal in whole or in part. 206 5. INFORMATION USED: No responsibility is assumed for accuracy of information furnished by work of or work by others, the client, his designee, or public records. We are not liable for such information or the work of possible subcontractors. Be advised that some of the people associated with Hogan Real Estate Appraisal Group, LLC and possibly signing the report are independent contractors. The comparable data relied upon in this report has been confirmed with one or more parties familiar with the transaction or from affidavit or other source thought reasonable; all are considered appropriate for inclusion to the best of our factual judgement and knowledge. An impractical and uneconomic expenditure of time would be required in attempting to furnish unimpeachable verification in all instances, particularly as to engineering and market-related information. It is suggested that the client consider independent verification as a prerequisite to any transaction involving sale, lease, or other significant commitment of funds for subject property. 6. TESTIMONY, CONSULTATION, COMPLETION OF CONTRACT FOR APPRAISAL SERVICE: The contract for appraisal, consultation or analytical service is fulfilled, and the total fee is payable prior to delivery of the report. The Appraiser(s) or those assisting in preparation of the report will not be asked or required to give testimony in court or hearing because of having made the appraisal, in full or in part, nor engage in post appraisal consultation with client or third parties except under separate and special arrangement and at additional fee. If testimony or deposition is required because of any subpoena, the client shall be responsible for any additional time, fees, and charges regardless of issuing party. 7. EXHIBITS: The sketches and maps in this report are included to assist the reader in visualizing the property and are not necessarily to scale. Various photos, if any, are included for the same purpose as of the date of the photos. Site plans are not surveys unless shown from separate surveyor. 8. LEGAL, ENGINEERING, FINANCIAL, STRUCTURAL, OR MECHANICAL NATURE HIDDEN COMPONENTS, SOIL: The Appraiser and/or firm has no responsibility for matters legal in character or nature, nor of any architectural, structural, mechanical, or engineering nature. No opinion is rendered as to the title, which is presumed to be good and merchantable. The property is appraised as if free and clear, unless otherwise stated in particular parts of the report. The legal description is assumed to be correct as used in this report as furnished by the client, his designee, or as derived by the Appraiser. Please note that no advice is given regarding mechanical equipment or structural integrity or adequacy nor soils and potential for settlement, drainage, etc. The lender and owner should inspect the property before any disbursement of funds; further it is likely that the lender or owner may wish to require mechanical or structural inspections by qualified and licensed contractor, civil or structural engineer, architect, or other expert. The Appraiser has inspected as far as possible, by observation, the land and the improvements; however, it was not possible to personally observe conditions beneath the soil or hidden structural, or other components. We have not critically inspected mechanical components within the improvements and no representations are made herein as to these matters unless specifically stated and considered in the report. The value estimate considers there being no such conditions that would cause loss of value. The land or the soil of the area being appraised appears firm, however, subsidence in the area is unknown. The Appraiser (singular or plural) does not warrant against this condition or occurrence of problems arising from soil conditions. The appraisal is based on there being no hidden, unapparent, or apparent conditions of the property site, subsoil, or structures or toxic materials which would render it more or less valuable. The Appraiser and firm have no responsibility for any such conditions or for any expertise or engineering to discover them. All mechanical components are assumed to be in operable condition and status standard for properties of the subject type. Conditions of heating, cooling, ventilating, electrical and plumbing equipment is considered to be commensurate with the condition of the balance of the improvements unless otherwise stated. No judgement may be made by us to adequacy of insulation, type of insulation, or energy efficiency of the improvements or equipment which is assumed standard for subject age and type. If the Appraiser has not been supplied with a deficiency or hazard inspection, survey or occupancy permit, no responsibility or representation is assumed or made for any costs associated with obtaining same or for any deficiencies discovered before or after they are obtained. No representation or warranties are made concerning obtaining the above mentioned items. 207 The Appraiser has no responsibility for any costs or consequences arising due to the need, or the lack of need for flood hazard insurance. An Agent for the Federal Flood Insurance Program should be contacted to determine the actual need for Flood Hazard Insurance. 9. LEGALITY OF USE: The appraisal is based on the premise that, there is full compliance with all applicable federal, state and local environmental regulations and laws unless otherwise stated in the report; further, that all applicable zoning, building, use regulations and restrictions of all types have been complied with unless otherwise stated in the report; further, it is assumed that all required licenses, consents, permits, or other legislative or administrative authority, local, state, federal and/or private entity or organization have been or can be obtained or renewed for any use considered in the value estimate. 10. COMPONENT VALUES: The distribution of the total valuation in this report between land and improvements applies only under the existing program of utilization. The separate valuations for land and building must not be used in conjunction with any other appraisal and are invalid if so used. 11. AUXILIARY AND RELATED STUDIES: No environmental or impact studies, special market study or analysis, highest and best use analysis study or feasibility study has been requested or made unless otherwise specified in an agreement for services or in the report. 12. DOLLAR VALUES, PURCHASING POWER: The market value estimated, and the costs used, are as of the date of the estimate of value. All dollar amounts are based on the purchasing power and price of dollar as of the date of value estimate. 13. INCLUSIONS: Furnishings and equipment or personal property or business operations except as specifically indicated and typically considered as part of real estate, have been disregarded with only the real estate being considered in the value estimate unless otherwise stated. In some property types, business and real estate interests and values are combined and essentially integrated to comprise the property in total, i.e. Hotels/Motels. 14. PROPOSED IMPROVEMENTS, CONDITIONED VALUE: Improvements proposed, if any, on or off-site, as well as any repairs required are considered, for purposes of this appraisal to be completed in good and workmanlike manner according to information submitted and/or considered by the Appraiser(s). In cases of proposed construction, the appraisal is subject to change upon inspection of property after construction is completed. This estimate of market value is as of the date shown which is indicative of a hypothetical condition or an extraordinary assumption. 15. VALUE CHANGE, DYNAMIC MARKET, INFLUENCES, ALTERATION OF ESTIMATE BY APPRAISER: The estimated market value, which is defined in the report, is subject to change with market changes over time; value is highly related to exposure, time, promotional effort, terms, motivation, and conditions surrounding the offering. The value estimate considers the productivity and relative attractiveness of the property physically and economically in the marketplace. In cases of appraisals involving the capitalization of income benefits, the estimate of market value or investment value or value in use is a reflection of such benefits and Appraiser(s) interpretation of income and yields and other factors derived from general and specific client and market information. Such estimates are as of the date of the estimate of value; they are thus subject to change as the market and value is naturally dynamic. "The Opinion of Market Value" in the appraisal report is not based in whole or in part upon the race, color or national origin of the present owners or occupants of the properties in the vicinity of the property appraised. Appraisal report and value estimate are subject to change if physical or legal entity or financing is different than that envisioned in the report. 208 16. MANAGEMENT OF THE PROPERTY: It is assumed that the property which is the subject of this report will be under prudent and competent ownership and management; neither inefficient nor super-efficient. 17. CONTINUOUS EDUCATION: The Appraisal Institute conducts a voluntary and a mandatory program of continuing education for its designated members depending upon date of membership. Those who meet the minimum standards of this program are awarded periodic educational certification. Please refer to the Appraisers Certification for compliance with the Appraisal Institute’s requirements addressing continuing education. 18. FEE: The fee for this appraisal or study is for the service rendered and not for the time spent on the physical report or the physical report itself. Amount of payment of fee for services is not contingent on any result, approval amount or other estimates or statements. 19. AUTHENTIC COPIES: The authentic copies of this report are signed in blue ink and have embossed type seal. Any copy that does not have the above is unauthorized and may have been altered. 20. INSULATION AND TOXIC MATERIALS: Unless otherwise stated in this report, the existence of hazardous material, which may or may not be present on the property, was not observed by the appraiser. The appraiser has no knowledge of the existence of such materials on or in the property. The appraiser, however, is not qualified to detect such substances. The presence of substances such as asbestos, urea-formaldehyde foam insulation, or other potentially hazardous materials may affect the value of the property. The value estimate is predicated on the assumption that there is no such material on or in the property that would cause a loss in value. No responsibility is assumed for any such conditions, or for any expertise or engineering knowledge required to discover them. The client is urged to retain an expert in this field, if desired. 21. REVIEW: Unless otherwise noted herein, any named Review Appraiser from Hogan Real Estate Appraisal Group, LLC has reviewed the report as to general appropriateness of technique and format, and has agreed to accept full responsibility for the contents and conclusions noted therein. 22. CHANGES, MODIFICATIONS: The Appraiser(s) and/or principals of Hogan Real Estate Appraisal Group, LLC, reserve the right to alter statements, analyses, conclusions or any value estimate(s) in the appraisal if there becomes known to us facts pertinent to the appraisal process which were unknown to us when the report was finished. 23. AFTER TAX ANALYSIS AND/OR VALUATION: Any "after" tax income or investment analysis and resultant measures of return on investment are intended to reflect only possible and general market considerations, whether as part of estimating value or estimating possible returns on investment at an assumed value or price paid; note that the Appraiser(s) does not claim expertise in tax matters and advises client and any other using the appraisal to seek competent tax advice as the Appraiser(s) is in no way to be considered a tax advisor or investment advisor. 24. ACCEPTANCE OF, AND/OR USE OF, THIS APPRAISAL REPORT BY CLIENT OR ANY THIRD PARTY CONSTITUTES ACCEPTANCE OF THE ABOVE CONDITIONS. APPRAISER LIABILITY EXTEND ONLY TO STATED CLIENT, NOT TO SUBSEQUENT PARTIES OR USERS OF ANY TYPE, AND THE TOTAL LIABILITY OF APPRAISER AND FIRM IS LIMITED TO THE AMOUNT OF FEE RECEIVED BY HOGAN REAL ESTATE APPRAISAL GROUP, LLC. 209 210 HOGAN REAL ESTATE APPRAISAL GROUP, LLC APPRAISER QUALIFICATIONS - NICHOLAS J. HOGAN, MAI APPRAISAL AND RELATED BUSINESS EXPERIENCE: December 2022 to present: Owner and chief appraiser, Hogan Real Estate Appraisal Group, LLC, specializing and real estate appraisal and consulting with emphasis noted below. January 1994 to December 2022: Staff Appraiser for Hall-Widdoss & Co., P.C. specializing in real estate appraisal and consulting with emphasis on multi-family residential, Section 42 LIHTC, assisted living facilities, farm and ranch, conservation easements, partial interests, and complex commercial valuation. Currently licensed in Montana, Idaho and Wyoming. Work includes value estimates for loan purposes, conservation easements, litigation support, estate planning, marketing, condemnation, accounting requirements and feasibility analysis. EDUCATION: University of Montana – Bachelor of Science in Business Administration (12/92) Appraisal Institute Courses and Seminars Court Testimony • 110 Appraisal Principles Montana 6th Judicial Court • 120 Appraisal Principles District of Montana Bankruptcy Court • 310 Basic Income Capitalization 9th Judicial Circuit Court, Kalamazoo, MI • 510 Advanced Income Capitalization US Bankruptcy Court Western District of Washington • 520 Highest and Best Use/Market Analysis Silver Bow County District Court • 530 Advanced Sales Comparison & Cost Approaches • 540 Report Writing and Valuation Analysis • Conservation Easement & Partial Interests • Yellow Book PROFESSIONAL AFFILIATIONS: Member Appraisal Institute – MAI No. 12400 Montana General Certificate No. REA-RAG-LIC-370 Wyoming Certified Real Estate Appraiser Permit No. 1090 Idaho General Certified Appraiser No. CGA-3332 REPRESENTATIVE CLIENTS: US & State Federal Aviation Administration General Services Administration Bureau of Reclamation US Forest Service Office of Valuation Services Justice Department US Highway Administration US Army Corp of Engineers City of Missoula/Missoula County City of Bozeman Montana Department of Transportation Montana Fish Wildlife & Parks Missoula County Other Clients First Interstate Bank The Nature Conservancy US Bank Bank of America Sterling Savings Bank Rocky Mountain Bank Glacier Bank Five Valleys Land Trust Catholic Church – Diocese of Helena Montana Environmental Trust Group 211 Memorandum REPORT TO:City Commission FROM:Nick Pericich Water and Sewer Operations Superintendent Shawn Kohtz Utilities Director SUBJECT:Ratify the City Manager's Signature on Construction Agreement with Peak Water Service to Repair Montana Department of Transportation Sewer Lift Station MEETING DATE:July 21, 2026 AGENDA ITEM TYPE:Agreement - Vendor/Contract RECOMMENDATION:Ratify the City Manager's signature STRATEGIC PLAN:4.3 Strategic Infrastructure Choices: Prioritize long-term investment and maintenance for existing and new infrastructure. BACKGROUND:There is currently a leak in the plumbing inside the wet well for the Montana Department of Transportation sewer lift station. The City of Bozeman is responsible for the maintenance of this lift station. The agreement will allow a contractor to enter the wet well and repair the leak on the plumbing. UNRESOLVED ISSUES:N/A ALTERNATIVES:None FISCAL EFFECTS:Time and materials cost basis not-to-exceed $10,000 from Sewer Operations budget Attachments: Construction Agreement with Peak Water Services for MDT Sewer Lift Station Repair.pdf Peak Water Services COI - City of Bozeman.pdf Report compiled on: July 2, 2026 212 Construction Agreement for MDT sewer lift station 2026 Page 1 of 16 CONSTRUCTION AGREEMENT This Construction Agreement is made and entered into this 13th day of July, 2026 (“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, Peak Water Services, 81 Gold Miner Ln, Belgrade MT 59714, hereinafter referred to as “Contractor.” City and Contractor may be referred to individually as “Party” and collectively as “Parties.” In consideration of the covenants, agreements, representations, and warranties contained herein, the Parties agree as follows: 1.Work to be Performed: a.Contractor will make entry into the sewer wet well for the Montana Department of Transportation sewer lift station, located at 100 Nelson Road, to investigate and repair leaks, (the “Construction Project”). b.Prior to the commencement of any work on Construction Project, Contractor’s representatives and City’s representatives must hold a meeting to establish a working understanding among the Parties as to the scope of Construction Project and duties of Contractor. c.Except as provided elsewhere in this Agreement, Contractor must furnish all the labor, materials, equipment, tools, and services necessary to perform and complete Construction Project. The City will vacuum the fluid from the wet well prior to each entry. d.During work on Construction Project, and as part of the final completion of Construction Project, Contractor must clean up the Project site, including the removal and satisfactory disposal of all waste, garbage, excess materials, and equipment, and the Docusign Envelope ID: 2BB7D9A7-2588-8DC9-8316-58C90AE79DF9 213467 Construction Agreement for MDT sewer lift station 2026 Page 2 of 16 performance of any other work necessary to restore the site to at least as good order and condition as at the commencement of Construction Project. 2.City-Supplied Materials: City may supply materials from time to time in furtherance of Construction Project. Such materials will be noted as an addendum to this Agreement. 3.Time of Performance: Contractor must begin Construction upon execution of this agreement by the Owner. The contract shall remain in effect for a period of one year from above date of Agreement or until the work has been completed. Time is of the essence of completion of all work and each phase of Construction Project. 4.Compensation: a.City must pay to Contractor, and Contractor must accept as full payment for the performance of this Agreement and Construction Project an amount in accordance with the scheduled rates attached as Exhibit A of this agreement not to exceed $10,000. Any additional payment requested shall be agreed to by the Parties via a written change order. 5.Inspection and Testing: a.City has the right to inspect and test any work performed by Contractor on Construction Project. Contractor must allow City and its agents access to Construction Project at all times and must provide access for inspection and testing, including temporarily discontinuing portions of the work or uncovering or removing portions of the work. Any inspection and testing performed by City and its agents is for the sole benefit of City and must not relieve Contractor of its duties, responsibilities, and obligations to ensure the work strictly complies with the Scope of Services and all applicable laws and building and safety codes. City’s inspection and testing is not deemed or considered acceptance by City of any portion of Construction Project. City’s inspection and testing does not serve to nullify, amend, or waive any warranties provided by Contractor under this Agreement. b.Contractor must, without charge, replace any material or correct any work found by City or its agents to be defective or otherwise not in compliance with the terms and conditions of this Agreement. If Contractor fails to replace or correct any defective work or materials after receiving reasonable written notice by City, City may take corrective action. Corrective action may include using City’s own materials and employees or retaining a third Party. City will deduct the cost and expense of the corrective action from Contractor’s compensation. Docusign Envelope ID: 2BB7D9A7-2588-8DC9-8316-58C90AE79DF9 214468 Construction Agreement for MDT sewer lift station 2026 Page 3 of 16 6.Partial Utilization of Construction Project: City has the right to use or occupy any portion of Construction Project City and Contractor mutually agree is substantially completed. If City takes possession of any portion of Construction Project, this possession is not an acceptance of Construction Project, in whole or in part. Any use by City of Construction Project is not grounds for extensions of any construction deadlines or a change in Contractor’s compensation. Contractor’s warranties runs from the completion of the total Construction Project and not from the date City may take possession of selected portions of Construction Project. 7.Related Work at the Site: Nothing in this Agreement prevents or precludes City, through its employees or by contract with a third Party, from performing work related to the Project not otherwise addressed in the Scope of Services. Such work may not interfere with Contractor’s performance of this Agreement. Contractor must allow access for any City employee, agent or representative, or any third Party under contract with City to perform the work. 8.Contractor’s Representations and Warranties: Contractor represents and warrants as follows: a.Unless otherwise specified by the terms of this Agreement, all materials used by Contractor on Construction Project must be new and of the most suitable grade for their intended uses. b.The quality of services and materials must be of a kind and nature acceptable to City. All services provided to, on, or for Construction Project must be free of defects and nonconformities. c.Contractor’s representation and warranty begins with the commencement of the work on Construction Project and ends one (1) year from the final completion and acceptance by City of Construction Project, regardless of whether such equipment, materials, or labor were supplied by Contractor or by Contractor’s subcontractors or suppliers. Other express warranties for materials that provide for a longer warranty period are not reduced by this provision. When Contractor receives City’s written notice of a defective or nonconforming condition during an applicable warranty period, Contractor must take all actions, including redesign and replacement, to correct the defective or nonconforming condition within a time frame acceptable to City and at no additional cost to City. Contractor must also, at its sole cost, perform any tests required by City to verify that Contractor corrected the defective or nonconforming condition. Contractor Docusign Envelope ID: 2BB7D9A7-2588-8DC9-8316-58C90AE79DF9 215469 Construction Agreement for MDT sewer lift station 2026 Page 4 of 16 warrants the corrective action taken against defective and nonconforming conditions for a period of an additional one (1) year from the date of City’s acceptance of the corrective action. d.Contractor and its sureties are liable for the satisfaction and full performance of all warranties. e.Contractor is responsible for the completion of Construction Project. Contractor, or its duly authorized representative assigned to serve as Construction Project Manager, must be personally present at the site of Construction Project during working hours for the term of this Agreement until the completion of Construction Project. f.Contractor has examined all available records and made field examinations of the site of Construction Project. Contractor has knowledge of the field conditions to be encountered during Construction Project. Contractor has knowledge of the types and character of equipment necessary for the work, the types of materials needed and the sources of such materials, and the condition of the local labor market. g.Contractor is responsible for the safety of the work and the safety of the site at all times. i.Fall protection must be utilized when the wet well hatches are open. ii.Proper OSHA procedures for confined space entry and fall protection must be followed. iii.Contractor acknowledges that wet well entry to perform this service is required and this may be considered an abnormally dangerous activity. iv.Contractor assumes all responsibility for ensuring and enforcing safe working conditions and compliance with all safety-related rules and regulations for the benefit of its own employees, the employees of subcontractors and the public when conducting the work, including all duties related to safety and will indemnify the City for any losses or damages the City may incur as a result of work conditions. h.All work must be performed at Contractor’s risk, and Contractor must promptly repair or replace all damage and loss at its sole cost and expense regardless of the reason or cause of the damage or loss. i.Contractor is responsible for any loss or damage to materials, tools, or other articles used or held for use in the completion of performance of Construction Project. Docusign Envelope ID: 2BB7D9A7-2588-8DC9-8316-58C90AE79DF9 216470 Construction Agreement for MDT sewer lift station 2026 Page 5 of 16 j.Contractor’s performance must be without damage or disruption to any other work or property of City or of others and without interference with the operation of existing machinery or equipment, unless otherwise agreed to in writing. k.Title to all work, materials, and equipment covered by any payment of Contractor’s compensation by City, will pass to City at the time of payment, free and clear of all liens and encumbrances. 9.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, City may, by written notice, terminate this Agreement and Contractor’s right to proceed with all or any part of Construction Project (“Termination Notice Due to Contractor’s Fault”). City may then take over Construction Project and complete it, either with its own resources or by re-letting the contract to any other third party, and may immediately take possession of and use such materials, appliances, tools, and equipment as may be on the site and which may be necessary for the completion of Construction Project. b.In the event of a termination pursuant to this Section 10, Contractor is entitled to payment only for those services Contractor actually rendered. In the case of a lump sum or unit price contract, Contractor is not entitled to any further payment until Construction Project has been completed. Upon completion of Construction Project, if the unpaid balance of Contractor’s compensation exceeds the cost to City of completing the work, including all costs paid to any subcontractors or third Parties retained by City to complete Construction Project and all administrative costs resulting from the termination (“City’s Cost for Completion”), such excess must be paid to Contractor. If City’s Cost for Completion exceeds the unpaid balance of Contractor’s compensation, then Contractor and its sureties must be liable for and must pay the difference, plus interest at the rate applicable to court judgments, to City. c.Any termination provided for by this Section 10 is in addition to any other remedies to which City may be entitled under the law or at equity. d.In the event of termination under this Section 10, Contractor is not, under any circumstances, 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. Docusign Envelope ID: 2BB7D9A7-2588-8DC9-8316-58C90AE79DF9 217471 Construction Agreement for MDT sewer lift station 2026 Page 6 of 16 10.Termination for City’s Convenience: a.Should conditions arise which, in the sole opinion and discretion of City, make it advisable to City to cease work on Construction Project, City may terminate this Agreement by written notice to Contractor (“Notice of Termination for City’s Convenience”). The termination must be effective in the manner specified in the Notice of Termination for City’s Convenience and must be without prejudice to any claims that City may otherwise have against Contractor. b.Upon receipt of the Notice of Termination for City’s Convenience, unless otherwise directed in the Notice, Contractor must immediately cease work on Construction Project, discontinue placing orders for materials, supplies, and equipment for Construction Project, and make every reasonable effort to cancel all existing orders or contracts upon terms satisfactory to City. Contractor must do only such work as may be necessary to preserve, protect, and maintain work already completed, in progress, or in transit to the construction site. c.In the event of a termination pursuant to this Section 11, Contractor is entitled to payment only for those services Contractor actually rendered and materials actually purchased or which Contractor has made obligations to purchase on or before the receipt of the Notice of Termination for City’s Convenience, and reasonably incurred costs for demobilization of Contractor’s and any subcontractor’s crews. It is agreed that any materials that City is obligated to purchase from Contractor will remain City’s sole property. d.The compensation described in Section 11(c) is the sole compensation due to Contractor for its performance of this Agreement. Contractor is not, under any circumstances, entitled to claim or recover consequential, special, punitive, lost business opportunity, lost productivity, field office overhead, general conditions costs, or lost profits damages of any nature arising, or claimed to have arisen, as a result of the termination. 11.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 must be limited to contract damages and Contractor 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 must provide City with written notice of its claim, the facts and circumstances Docusign Envelope ID: 2BB7D9A7-2588-8DC9-8316-58C90AE79DF9 218472 Construction Agreement for MDT sewer lift station 2026 Page 7 of 16 surrounding and giving rise to the claim, and the total amount of damages sought by the claim, within ten (10) days of the facts and circumstances giving rise to the claim. In the event Contractor fails to provide such notice, Contractor must waive all rights to assert such claim. c.Upon acceptance of final payment and for other good and valuable consideration, Contractor must and hereby does release and forever discharge City, its officers, agents, and employees of and from any and all claims, demands, actions, causes of action, obligations, and liabilities of every kind and character whatsoever, in law and in equity, whether now known or in the future discovered, arising from or related to this Agreement or Construction Project that Contractor may have or assert against City, its officers, agents, and employees. 12.Representatives and Notices: a.City’s Representative: City’s Representative for the purpose of this Agreement is Nick Pericich, Water & Sewer Superintendent, or such other individual as City must designate in writing. Whenever approval or authorization from or communication or submission to City is required by this Agreement, such communication or submission must be directed to City’s Representative and approvals or authorizations must be issued only by such Representative; provided, however, that in exigent circumstances when City’s Representative is not available, Contractor may direct its communication or submission to other designated City personnel or agents and may receive approvals or authorization from such persons. b.Contractor’s Representative: Contractor’s Representative for the purpose of this Agreement must be Jennifer Bos or such other individual as Contractor must designate in writing. Whenever direction to or communication with Contractor is required by this Agreement, such direction or communication must 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 must be in writing and must be provided to the Representatives named in this Section. Notices must 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. Docusign Envelope ID: 2BB7D9A7-2588-8DC9-8316-58C90AE79DF9 219473 Construction Agreement for MDT sewer lift station 2026 Page 8 of 16 13. Permits: Contractor must provide all notices, comply with all applicable laws, ordinances, rules, and regulations, obtain all necessary permits, licenses, including a City of Bozeman business license, and inspections from applicable governmental authorities, pay all fees and charges in connection therewith, and perform all surveys and locations necessary for the timely completion of Construction Project. 14. Laws and Regulations: Contractor must comply fully with all applicable state and federal laws, regulations, and municipal ordinances including, but not limited to, all workers’ compensation laws, all environmental laws including, but not limited to, the generation and disposal of hazardous waste, the Occupational Safety and Health Act (OSHA), the safety rules, codes, and provisions of the Montana Safety Act in Title 50, Chapter 71, MCA, all applicable City, County, and State building and electrical codes, the Americans with Disabilities Act, and all non- discrimination, affirmative action, and utilization of minority and small business statutes and regulations. 15. Nondiscrimination and Equal Pay: Contractor agrees that all hiring by Contractor of persons performing this Agreement must be on the basis of merit and qualifications. Contractor will have a policy to provide equal employment opportunity in accordance with all applicable state and federal anti-discrimination laws, regulations, and contracts. Contractor will not refuse employment to a person, bar a person from employment, or discriminate against a person in compensation or in a term, condition, or privilege of employment because of race, color, religion, creed, political ideas, sex, age, marital status, national origin, actual or perceived sexual orientation, gender identity, physical or mental disability, except when the reasonable demands of the position require an age, physical or mental disability, marital status or sex distinction. Contractor must 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 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 must require these nondiscrimination terms of its subcontractors providing services under this Agreement. 16. Intoxicants; DOT Drug and Alcohol Regulations: Contractor must not permit or suffer the introduction or use of any intoxicants, including alcohol or illegal drugs, upon the site of Construction Project. Contractor acknowledges it is aware of and must comply with its Docusign Envelope ID: 2BB7D9A7-2588-8DC9-8316-58C90AE79DF9 220474 Construction Agreement for MDT sewer lift station 2026 Page 9 of 16 responsibilities and obligations under the U.S. Department of Transportation (DOT) regulations governing anti-drug and alcohol misuse prevention plans and related testing. City must have the right to request proof of such compliance and Contractor must be obligated to furnish such proof. Contractor must be responsible for instructing and training Contractor's employees and agents in proper and specified work methods and procedures. Contractor must provide continuous inspection and supervision of the work performed. Contractor is responsible for instructing its employees and agents in safe work practices. 17. Labor Relations: a. In the event that, during the term of this Agreement and throughout the course of Contractor’s performance of Construction Project, any labor problems or disputes of any type arise or materialize which in turn cause any work on Construction Project to cease for any period of time, Contractor specifically agrees to take immediate steps, at its own expense and without expectation of reimbursement from City, to alleviate or resolve all such labor problems or disputes. The specific steps Contractor must take to resume work on Construction Project must be left to the discretion of Contractor; provided, however, that Contractor must bear all costs of any related legal action. Contractor must provide immediate relief to City so as to permit the work on Construction Project to resume and be completed within the time frames set forth in the Construction Schedule at no additional cost to City. b. In addition to Contractor’s indemnification obligations under paragraph 20(a) of this Agreement, Contractor must indemnify, defend, and hold City harmless from any and all claims, demands, costs, expenses, damages, and liabilities arising out of, resulting from, or occurring in connection with any labor problems or disputes or any delays or stoppages of work associated with such problems or disputes. The provisions of paragraph 28(b) – (g) apply to this subsection. 18. Subcontractors: a. Contractor may employ subcontractors for any work on Construction Project. Contractor must provide City with a list of all subcontractors employed. b. Contractor remains fully responsible for the acts and omissions of any subcontractor, just as Contractor is for its own acts and omissions, and Contractor must remain fully responsible and liable for the timely completion of Construction Project. Docusign Envelope ID: 2BB7D9A7-2588-8DC9-8316-58C90AE79DF9 221475 Construction Agreement for MDT sewer lift station 2026 Page 10 of 16 c.Contractor is solely liable for any and all payments to subcontractors. Contractor must hold all payments received from City in trust for the benefit of subcontractors, and all such payments must be used to satisfy obligations of Construction Project before being used for any other purpose. Contractor must make any payments due to any subcontractor within seven (7) days of Contractor’s receipt of payment, including a proportional part of the retainage Contractor has received from City. In the event of a dispute regarding any subcontractor’s invoice, Contractor must promptly pay the undisputed amount to the subcontractor and notify the subcontractor in writing of the amount in dispute and the reasons for the dispute. Any withholding of payment must comply with the requirements of §28-2-2103, MCA. In the event Contractor is unwilling or unable to make timely and proper payment to any subcontractor, City may elect to withhold any payment otherwise due to Contractor and upon seven (7) days’ written notice to Contractor, may pay subcontractor by direct or joint payment. 19.Hazard Communication: Contractor must comply with all hazard communication requirements dictated by the Environmental Protection Agency, the Montana Department of Agriculture, OSHA, Hazard Communications Standard, 29 CFR 1910.1200, and applicable City ordinances. Contractor must supply a chemical list, the associated material safety data sheets (MSDS), and other pertinent health exposure data for chemicals that Contractor’s, subcontractor’s or City’s employees may be exposed to while working on City property during the course of Construction Project. One copy of this documentation must be delivered to City to the attention of City’s Representative. This documentation must be delivered before work involving these chemicals may commence. 20.Accounts and Records: During the term of this Agreement and for two (2) years following City’s final acceptance of Construction Project, Contractor must maintain accounts and records related to Construction Project. Upon reasonable notice, City must have the right to inspect all such accounts and records, including but not limited to, Contractor’s records, books, correspondence, instructions, drawings, specifications, field and site notes, receipts, invoices, bills, contracts, or other documents relating to Construction Project. 21.Indemnification; Insurance; Bonds: a.Contractor agrees to release, defend, indemnify, and hold harmless the City, its agents, representatives, employees, and officers (collectively referred to for purposes of this Section as the City) from and against any and all claims, demands, actions, fees and costs (including attorney’s fees and the costs and fees of and expert witness and consultants), losses, expenses, liabilities (including liability where activity is inherently or intrinsically dangerous) or damages of whatever kind or nature connected therewith and without limit and without regard Docusign Envelope ID: 2BB7D9A7-2588-8DC9-8316-58C90AE79DF9 222476 Construction Agreement for MDT sewer lift station 2026 Page 11 of 16 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 Contractor; or (ii) any negligent, reckless, or intentional misconduct of any of Contractor’s agents. b. Such obligations must not be construed to negate, abridge, or reduce other rights or obligations of indemnity that would otherwise exist. The indemnification obligations of this Section must not be construed to negate, abridge, or reduce any common-law or statutory rights of the indemnitee(s) which would otherwise exist as to such indemnitee(s). c. Contractor’s indemnity under this Section must be without regard to and without any right to contribution from any insurance maintained by the City. d. Should the City be required to bring an action against Contractor to assert its right to defense or indemnification under this Agreement or under Contractor’s applicable insurance policies required below the City must 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 Contractor was obligated to defend the claim(s) or was obligated to indemnify the City for a claim(s) or any portion(s) thereof. e. In the event of an action filed against the City resulting from the City’s performance under this Agreement, the City may elect to represent itself and incur all costs and expenses of suit. f. Contractor also waives any and all claims and recourse against the City, including the right of contribution for loss or damage to person or property arising from, growing out of, or in any way connected with or incident to the performance of this Agreement except “responsibility for [the City’s] own fraud, for willful injury to the person or property of another, or for violation of law, whether willful or negligent” as per 28-2-702, MCA. g. These obligations must survive termination of this Agreement and the services performed hereunder. h. In addition to and independent from the above, Contractor must 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 Contractor in this Section. The insurance coverage must not contain any exclusion for liabilities specifically assumed by Contractor in subsection (a) of this Docusign Envelope ID: 2BB7D9A7-2588-8DC9-8316-58C90AE79DF9 223477 Construction Agreement for MDT sewer lift station 2026 Page 12 of 16 Section. The insurance must 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 must furnish to the City an accompanying certificate of insurance and accompanying endorsements in amounts not less than as shown below: • Workers’ Compensation – not less than statutory limits; • Employers’ Liability - $1,000,000 per occurrence; $2,000,000 annual aggregate; • Commercial General Liability - $1,000,000 per occurrence; $2,000,000 annual aggregate; • Products and Completed Operations – $1,000,000; • Automobile Liability - $1,000,000 property damage/bodily injury; $2,000,000 annual aggregate (all owned, hired, non-owned vehicles); • Builder’s Risk/Property Insurance at least as broad as that provided by the ISO special causes of loss form (CP10 30) naming at a minimum the City in an amount equal to greater of Contractor’s compensation or full replacement value of the work (covering at a minimum all work, buildings, materials and equipment, whether on site or in transit, loss due to fire, lightening, theft, vandalism, malicious mischief, earthquake, collapse, debris removal, demolition occasioned by enforcement of laws, water damage, flood if site within a flood plain, repair or replacement costs, testing and start-up costs) on an all risk coverage basis. This insurance must include waivers of subrogation between the City and Contractor to the extent that damage to Construction Project or City Hall is covered by other insurance; • Owner’s and Contractor’s Protective Liability: one policy designating the City (including its agents, representatives, employees, and officers) as the insured and another independent policy designated the City’s Representative (including its consultants, consultants, agents and employees) as the insured on the declarations with both policies covering: (i) operations performed by Contractor under this Agreement for the City; and (ii) the City’s and the City’s Representatives acts or omissions, including negligent acts, in connection with its general supervision of the work of Contractor’s and its subcontractors - $1,000,000 per occurrence; $2,000,000 aggregate; • Contractual Liability Insurance (covering Contractor’s indemnity obligations described in this Agreement) - $1,000,000 per occurrence $2,000,000 aggregate Docusign Envelope ID: 2BB7D9A7-2588-8DC9-8316-58C90AE79DF9 224478 Construction Agreement for MDT sewer lift station 2026 Page 13 of 16 The amounts of insurance provided must be exclusive of defense costs. The City of Bozeman must be endorsed as an additional or named insured on a primary non-contributory basis on both the Commercial General and Automobile Liability policies. The insurance and required endorsements must be in a form suitable to the City and must include no less than a thirty (30) day notice of cancellation or non-renewal. Contractor must notify the City within two (2) business days of Contractor’s receipt of notice that any required insurance coverage will be terminated or Contractor’s decision to terminate any required insurance coverage for any reason. The City must approve all insurance coverage and endorsements prior to Contractor commencing work. i. Pursuant to the City’s authority provided for in 18-2-201(4) MCA, Contractor may not be required to provide bonds as required by 18-2-201(1) MCA under this Agreement. 22. Taxes: Contractor is obligated to pay all taxes of any kind or nature and make all appropriate employee withholdings. Contractor understands that all contractors or subcontractors working on a publicly funded project must comply with 15-50-101 through 15-50- 311, MCA. 23. Dispute Resolution: a. Any claim, controversy, or dispute between the Parties, their agents, employees, or representatives must 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 must be resolved in a court of competent jurisdiction in compliance with the Applicable Law provisions of this Agreement. 24. Survival: Contractor’s indemnification and warranty obligations must survive the termination or expiration of this Agreement for the maximum period allowed under applicable law. 25. 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. Docusign Envelope ID: 2BB7D9A7-2588-8DC9-8316-58C90AE79DF9 225479 Construction Agreement for MDT sewer lift station 2026 Page 14 of 16 26. Waiver: A waiver by City of any default or breach by Contractor of any covenants, terms, or conditions of this Agreement does not limit City’s right to enforce such covenants, terms, or conditions or to pursue City’s rights in the event of any subsequent default or breach. 27. 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 must be entitled to reasonable attorney's fees and costs, including fees, salary, and costs of in-house counsel including City Attorney’s Office staff. 28. Severability: If any portion of this Agreement is held to be void or unenforceable, the balance thereof must continue in effect. 29. Applicable Law: The Parties agree that this Agreement is governed in all respects by the laws of the State of Montana. 30. Binding Effect: This Agreement is binding upon and inures to the benefit of the heirs, legal representatives, successors, and assigns of the Parties. 31. Amendments: This Agreement may not be modified, amended, or changed in any respect except by a written document signed by all Parties. 32. 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. 33. Counterparts: This Agreement may be executed in counterparts, which together constitute one instrument. 34. Assignment: Contractor may not assign this Agreement in whole or in part without the prior written consent of City. No assignment will relieve Contractor of its responsibility for the performance of the Agreement and the completion of Construction Project. Contractor may not assign to any third Party other than Contractor’s subcontractors on Construction Project, the right to receive monies due from City without the prior written consent of City. Docusign Envelope ID: 2BB7D9A7-2588-8DC9-8316-58C90AE79DF9 226480 Construction Agreement for MDT sewer lift station 2026 Page 15 of 16 35. Authority: Each Party represents that it has full power and authority to enter into and perform this Agreement and the person signing this Agreement on behalf of each Party has been properly authorized and empowered to sign this Agreement. 36. Independent Contractor: The Parties agree and acknowledge that in the performance of this Agreement and the completion of Construction Project, Contractor must render services as an independent contractor and not as the agent, representative, subcontractor, or employee of City. The Parties further agree that all individuals and companies retained by Contractor at all times will be considered the agents, employees, or independent contractors of Contractor and at no time will they be the employees, agents, or representatives of City. 37. Integration: This Agreement and all Exhibits attached hereto constitute the entire agreement of the Parties. Covenants or representations not contained therein or made a part thereof by reference, are not binding upon the Parties. There are no understandings between the Parties other than as set forth in this Agreement. All communications, either verbal or written, made prior to the date of this Agreement are hereby abrogated and withdrawn unless specifically made a part of this Agreement by reference. 38. Consent to Electronic Signatures: The Parties have consented to execute this Agreement electronically in conformance with the Montana Uniform Electronic Transactions Act, Title 30, Chapter 18, Part 1, MCA. **** END OF AGREEMENT EXCEPT FOR SIGNATURES **** IN WITNESS WHEREOF, Contractor and City have caused this Agreement to be executed, effective on the date written above, and intend to be legally bound thereby. CITY OF BOZEMAN, MONTANA CONTRACTOR By: _______________________________ By:________________________________ Chuck Winn, City Manager Jennifer Bos, Vice President of Operations Docusign Envelope ID: 2BB7D9A7-2588-8DC9-8316-58C90AE79DF9 227481 Construction Agreement for MDT sewer lift station 2026 Page 16 of 16 APPROVED AS TO FORM: By: _______________________________ Greg Sullivan, City Attorney Docusign Envelope ID: 2BB7D9A7-2588-8DC9-8316-58C90AE79DF9 228482 Corporate Office 81 Gold Miner Ln, Unit A Belgrade, MT 59714 www.peakwaterservices.com 406.813.7035 Exhibit A 2026 Rate Chart For MT, ID, ND, UT, CO & WY Regions Rate Unit Additional Call Out Rate (One-time fee) Minimum Charge1 LABOR Standard Straight Time (between 8am & 5pm local time) $140.00 per man hour -$500.00 Contract Straight Time $120.00 per man hour -- Specialized Labor2 $165.00 per man hour -$500.00 ADDITIONS TO STRAIGHT TIME Confined Space3 / Hazardous Space4 -$500 per entrant, per day -$500.00 After Hours5 --$250.00 - Weekends --$250.00 - Holidays6 --$250.00 - Per Diem (lodging not included) + $75.00 per tech, per day -- Various Consumables7 ---$50.00 SPECIALTY EQUIPMENT Crane Truck $250.00 per day -$250.00 Hotsy $250.00 per day -$250.00 Fixturlaser Evo (Shaft Alignment) $125.00 per day -$125.00 Acoem Falcon (Vibration Analysis) $200.00 per day -$200.00 All Test Pro (Motor Circuit Analysis) $125.00 per day -$125.00 Travel Time will be included with standard rate or contract rate for time traveled from shop to shop, per tech. We generally send two (2) service technicians to respond to service calls. Minimum Charge1 does not apply to contract customers. Specialized Labor2 includes work that demands specialized skills or expertise in particular fields involving tasks requiring advanced knowledge and the use of specialty equipment such as vibration analysis to accomplish ‘complex’ objectives. Docusign Envelope ID: 2BB7D9A7-2588-8DC9-8316-58C90AE79DF9 229483 230 Memorandum REPORT TO:City Commission FROM:Jon Henderson, Assistant City Manager David Arnado, Facilities Superintendent Shane Miller, Facilities Project Coordinator SUBJECT:Authorize the City Manager to Sign a Master Agreement with Jackola Engineering & Architecture for Lindley Center Renovations MEETING DATE:July 21, 2026 AGENDA ITEM TYPE:Agreement - Vendor/Contract RECOMMENDATION:Authorize the City Manager to Sign a Master Agreement with Jackola Engineering & Architecture for Lindley Center Renovations STRATEGIC PLAN:4.3 Strategic Infrastructure Choices: Prioritize long-term investment and maintenance for existing and new infrastructure. BACKGROUND:On November 2nd, 2021, the voters of the City of Bozeman approved a bond to fund the renovation of several public recreation facilities, including the Lindley Recreation Center, located at 1102 E Curtiss St, Bozeman, MT 59715. The Lindley Center was originally constructed in 1934 which was eventually transformed into Bozeman’s first golf course clubhouse. The structure has evolved over the years to include several structural additions to support community events such as weddings, youth camps, and various organizations, programs and meetings. In June of 2022 the building was deemed unsafe and closed to the public. The goal of this project is to address the safety issues and to renovate the building so it can flexibly accommodate a wide variety of uses for years to come. Specific elements that will be addressed as approved in the 2021 bond measure include upgrading restrooms to meet current American with Disabilities Act requirements, replacing windows and log siding, upgrading the kitchen, insulating the east roof, installing floor and roof supports, and improvements to the parking lot and related site work. This agreement is for Architectural design and construction administration services throughout the course of the project. UNRESOLVED ISSUES:None ALTERNATIVES:As directed by the City Commission. FISCAL EFFECTS:Funds are allocated into the approved City of Bozeman Lindley Center Renovation Budget from the 2021 bond measure. Contract = $195,960.00 231 Attachments: B121-2018_Agreement_2026-06-29 21_33_29 UTC.pdf EXHIBIT A - Scope of Services.pdf EXHIBIT B - Compensation for Services.pdf Report compiled on: July 1, 2026 232 Document B121TM –2018 Standard Form of Master Agreement Between Owner and Architect for Services provided under multiple Service Orders AIA Document B121 –2018.Copyright ©2014 and 2018.Allrights reserved.“The American Institute of Architects,”“American Institute of Architects,”“AIA,”theAIALogo,and “AIA Contract Documents”are trademarksof The American Institute of Architects.This documentwas produced at 21:33:22 MDT on 06/29/2026underSubscriptionNo.20250131413which expires on 05/26/2027,isnot for resale,is licensed for one-time use only,and may only be used in accordance withtheAIAContractDocuments®Terms of Service.To report copyright violations,e-mail docinfo@aiacontracts.com. User Notes:(6a331af85a1a785856c68de3) 1 ADDITIONS AND DELETIONS: The author of this document may have revised the text of the original AIA standard form.An Additions and Deletions Report that notes revisions to the standard form text is available from the author and should be reviewed.A vertical line in the left margin of this document indicates where the author has added to or deleted from the original AIA text. This document has important legal consequences.Consultation with an attorney is encouraged with respect to its completion or modification. This document does not contain a description of the Architect’s scope of Services and related terms.This document is intended to be used in conjunction with AIA Document B221™–2018,Service Order for use with Master Agreement Between Owner and Architect AGREEMENT made as of the Fourteenth day of July in the year Two Thousand Twenty-Six (In words,indicate day,month,and year.) BETWEEN the Owner: (Name,legal status,address,and other information) City of Bozeman 121 N.Rouse Ave.,Bozeman,MT 59771 and the Architect: (Name,legal status,address,and other information) Jackola Engineering and Architecture,PC 705 Osterman Drive,Suite B,Bozeman,MT 59715 The Owner and Architect agree as follows. 233 AIA Document B121 –2018.Copyright ©2014 and 2018.Allrights reserved.“The American Institute of Architects,”“American Institute of Architects,”“AIA,”theAIALogo,and “AIA Contract Documents”are trademarksof The American Institute of Architects.This documentwas produced at 21:33:22 MDT on 06/29/2026underSubscriptionNo.20250131413which expires on 05/26/2027,isnot for resale,is licensed for one-time use only,and may only be used in accordance withtheAIAContractDocuments®Terms of Service.To report copyright violations,e-mail docinfo@aiacontracts.com. User Notes:(6a331af85a1a785856c68de3) 2 TABLE OF ARTICLES 1 MASTER AGREEMENT TERM AND PARTY REPRESENTATIVES 2 SERVICE ORDERS 3 ARCHITECT’S RESPONSIBILITIES 4 ADDITIONAL SERVICES 5 OWNER’S RESPONSIBILITIES 6 COPYRIGHTS AND LICENSES 7 CLAIMS AND DISPUTES 8 TERMINATION OR SUSPENSION OF SERVICE AGREEMENTS 9 COMPENSATION 10 MISCELLANEOUS PROVISIONS 11 SPECIAL TERMS AND CONDITIONS 12 SCOPE OF THIS MASTER AGREEMENT ARTICLE 1 MASTER AGREEMENT TERM AND PARTY REPRESENTATIVES §1.1 This Master Agreement shall be effective for one year after the date first written above (“Date of this Master Agreement”). §1.2 This Master Agreement shall apply to the Scope of Services agreed to by the Parties within the term of this Master Agreement until completion of the Scope of Services.In the event of a conflict between terms and conditions of this Master Agreement and the Scope of Services,the terms of the Scope of Services shall take precedence for the services provided pursuant to the Scope of Services.An agreed upon Scope of Services together with this Master Agreement form a Service Agreement.A Service Agreement represents the entire and integrated agreement between the parties,and supersedes prior negotiations,representations,or agreements, either written or oral.A Service Agreement may be amended or modified only in writing signed by the parties. §1.3 This Master Agreement will renew on an annual basis,on the day and month of the Date of this Master Agreement,unless the Scope of Services has been completed and accepted by the City.Notice must be provided at least 60 days prior to the renewal date.In the event either party elects not to renew this Master Agreement,the terms of this Master Agreement shall remain applicable until the Scope of Servicesunder this Master Agreement iscompleted or terminated. §1.4 The Owner identifies the following representative authorized to act on the Owner’s behalf with respect to this Service Agreement: Shane Miller,Project Coordinator 121 N.Rouse Ave.,Bozeman,MT 59771 (406)577-7425 smiller@bozeman.net §1.5 The Architect identifies the following representative authorized to act on the Architect’s behalf with respect to this ServiceAgreement: 234 AIA Document B121 –2018.Copyright ©2014 and 2018.Allrights reserved.“The American Institute of Architects,”“American Institute of Architects,”“AIA,”theAIALogo,and “AIA Contract Documents”are trademarksof The American Institute of Architects.This documentwas produced at 21:33:22 MDT on 06/29/2026underSubscriptionNo.20250131413which expires on 05/26/2027,isnot for resale,is licensed for one-time use only,and may only be used in accordance withtheAIAContractDocuments®Terms of Service.To report copyright violations,e-mail docinfo@aiacontracts.com. User Notes:(6a331af85a1a785856c68de3) 3 Tom Sawyer,Project Manager 705 Osterman Dr.,Ste B,Bozeman,MT 59715 (406)586-0707 tsawyer@jackola.com §1.6 Architect understands that Owner has a separate contract with a GC/CM in order to complete the Work set forth in the Scope of Services. Architect agrees to communicate and coordinate with GC/CM and Owner in order to complete the Work.§1.7Nothing contained in this Service Agreement shall create a contractual relationship with,or a cause of action in favor of,a third party against either the Owner or Architect.ARTICLE 2 SCOPE OF SERVICES §2.3 The Architect shall perform the services set forth in theagreed upon Scope of Services,consisting of such document as the Owner and Architect may mutually agree upon.The Scope of Servicesshall state the name, location,and detailed description of the Project;describe the Architect’s Services;state the Architect’s compensation;and list the attachments and exhibits incorporated by reference. ARTICLE 3 ARCHITECT’S RESPONSIBILITIES §3.1 The Architect shall perform its services consistent with the professional skill and care ordinarily provided by architects practicing in the same or similar locality under the same or similar circumstances.The Architect shall perform its services as expeditiously as is consistent with such professional skill and care and the orderly progress of the services provided pursuant to a Service Agreement. §3.2 Except with the Owner’s knowledge and consent,the Architect shall not engage in any activity,or accept any employment,interest or contribution that would reasonably appear to compromise the Architect’s professional judgment with respect to this Master Agreement or any Service Agreement. §3.3 The Architect shall maintain the following insurance until termination of this Master Agreement.If any of the requirements set forth below are in addition to the types and limits the Architect normally maintains,the Owner shall pay the Architect as set forth in Section 9.4. The Owner shall be endorsed as additional insured on the Architect’s primary and excess insurance policies for General Liability and Automobile Liability.The additional insured coverage shall be primary and non- contributory to any of the Owner’s insurance policies.The additional insured coverage shall apply to both ongoing operations and completed operations.Upon request by the Owner,the Architect shall provide to the Owner certificates of insurance evidencing compliance with the requirements of this Section 3.3. .1 Commercial General Liability With policy limits of not less than One Million Five Hundred Thousand Dollars ($1,500,000.00)for each occurrence and Three Million Dollars ($3,000,000.00)annual aggregate for bodily injury and property damage. The Architect may provide the required limits and coverage through a combination of primary and excess liability insurance,provided such primary and excess insurance policies result in the same or greater coverage. .2 Automobile Liability 235 AIA Document B121 –2018.Copyright ©2014 and 2018.Allrights reserved.“The American Institute of Architects,”“American Institute of Architects,”“AIA,”theAIALogo,and “AIA Contract Documents”are trademarksof The American Institute of Architects.This documentwas produced at 21:33:22 MDT on 06/29/2026underSubscriptionNo.20250131413which expires on 05/26/2027,isnot for resale,is licensed for one-time use only,and may only be used in accordance withtheAIAContractDocuments®Terms of Service.To report copyright violations,e-mail docinfo@aiacontracts.com. User Notes:(6a331af85a1a785856c68de3) 4 Covering vehicles owned or used by the Architect with policy limits of not less than One Million Dollars ($1,000,000.00)for bodily injury and property damage per claim and no less than Two Million Dollars ($2,000,000)annual aggregate.The Architect may provide the required limits and coverage through a combination of primary and excess liability insurance,provided such primary and excess insurance policies result in the same or greater coverage. .3 Workers’Compensation Workers’Compensation at the statutory limits and Employers Liability with policy limits of not less than One Million Dollars ($1,000,000.00)per occurrence,Two Million Dollars ($2,000,000.00)annual aggregate. §3.4 The Architect shall coordinate its services with those services provided by the Owner and the Owner’s consultants,including any GC/CM.The Architect shall be entitled to rely on the accuracy and completeness of the services and information furnished by the Owner and the Owner’s consultants.The Architect shall provide prompt written notice to the Owner if the Architect becomes aware of any error,omission,or inconsistency in such services or information. §3.5 The Architect shall not be responsible for an Owner’s directive or substitution made without the Architect’s approval. §3.6 The Architect shall manage the Architect’s services,research applicable design criteria,attend project meetings,communicate with members of the project team,including the GC/CM and report progress to the Owner. §3.7 As soon as practicable after the date of this Service Agreement,the Architect shall submit for the Owner’s approval a schedule for the performance of the Architect’s services. §3.8 As soon as practicable after award of the Service Agreement,the Architect shall furnish in writing to the Owner the names of consultants proposed for portions of the scope of a Service Order.The Owner may reply within 14 days to the Architect in writing stating (1)whether the Owner has reasonable objection to any such proposed consultant or (2)that the Owner requires additional time for review.Failure of the Owner to reply within the 14-day period shall constitute notice of no reasonable objection.Architect shall not contract with a proposed consultant to whom the Owner has made reasonable and timely objection. §3.9 Architect shall not substitute a consultant previously selected without written consent of the Owner. Architect shall notify the Owner and GC/CM of any proposed substitution a minimum of ten (10)days prior to a proposed change. ARTICLE 4 ADDITIONAL SERVICES §4.1 The Architect may provide Additional Services after execution of a Service Order without invalidating the Service Agreement.Except for services required due to the fault of the Architect,any Additional Services provided in accordance with this Article 4 shall entitle the Architect to compensation pursuant to Section 9.3. §4.2 Upon recognizing the need to perform the following Additional Services,as they relate to the services provided pursuant to the Scope of Services,the Architect shall notify the Owner with reasonable promptness and explain the facts and circumstances giving rise to the need.The Architect shall not proceed to provide the following Additional Services until the Architect receives the Owner’s written authorization: 236 AIA Document B121 –2018.Copyright ©2014 and 2018.Allrights reserved.“The American Institute of Architects,”“American Institute of Architects,”“AIA,”theAIALogo,and “AIA Contract Documents”are trademarksof The American Institute of Architects.This documentwas produced at 21:33:22 MDT on 06/29/2026underSubscriptionNo.20250131413which expires on 05/26/2027,isnot for resale,is licensed for one-time use only,and may only be used in accordance withtheAIAContractDocuments®Terms of Service.To report copyright violations,e-mail docinfo@aiacontracts.com. User Notes:(6a331af85a1a785856c68de3) 5 .1 Services necessitated by a change in the Initial Information,previous instructions or approvals given by the Owner,or a material change in the Project including size,quality,complexity,the Owner’s schedule or budget for Cost of the Work,or procurement or delivery method; .2 Services necessitated by the enactment or revision of codes,laws,or regulations,including changing or editing previously prepared Instruments of Service; .3 Changing or editing previously prepared Instruments of Service necessitated by official interpretations of applicable codes,laws or regulations that are either (a)contrary to specific interpretations by the applicable authorities having jurisdiction made prior to the issuance of the building permit,or (b)contrary to requirements of the Instruments of Service when those Instruments of Service were prepared in accordance with the applicable standard of care; .4 Services necessitated by decisions of the Owner not rendered in a timely manner or any other failure of performance on the part of the Owner or the Owner’s consultants or contractors; .5 Preparing digital models or other design documentation for transmission to the Owner’s consultants and contractors,or to other Owner-authorized recipients; .6 Preparation for,and attendance at,a dispute resolution proceeding or legal proceeding,except where the Architect is party thereto; .7 Consultation concerning replacement of Work resulting from fire or other cause during construction; .8 Preparation of design and documentation for alternate bid or proposal requests proposed by the Owner; .9 Preparation for,and attendance at,a public presentation,meeting or hearing; .10 Evaluation of the qualifications of entities providing bids or proposals. ARTICLE 5 OWNER’S RESPONSIBILITIES §5.1 The Owner shall provide information in a timely manner regarding requirements for and limitations of the Scope of Services. §5.2 The Owner shall render decisions and approve the Architect’s submittals in a timely manner in order to avoid unreasonable delay in the orderly and sequential progress of the Architect’s services. §5.3 The Owner shall coordinate the services of its own consultants with those services provided by the Architect.Upon the Architect’s request,the Owner shall furnish copies of the scope of consulting services in the contracts between the Owner and the Owner’s consultants.The Owner shall furnish the services of consultants as designated in the Scope of Services,or authorize the Architect to furnish them as an Additional Service,when the Architect requests such services and demonstrates to the Owner’s satisfaction that they are reasonably required by the Scope of Services.The Owner shall require that its consultants and contractors maintain insurance,as appropriate to the services or work provided. §5.4 The Owner shall furnish all legal,insurance,and accounting services,including auditing services,that may be reasonably necessary at any time to meet the Owner’s needs and interests under a Service Agreement. §5.5 The Owner shall provide prompt written notice to the Architect if the Owner becomes aware of any fault or defect in the services or work related to a Service Agreement,including errors,omissions or inconsistencies in the Architect’s Instruments of Service. §5.6 Within 15 days after receipt of a written request from the Architect,the Owner shall furnish the requested information as necessary and relevant for the Architect to evaluate,give notice of,or enforce lien rights. ARTICLE 6 COPYRIGHTS AND LICENSES §6.1 The Architect and the Owner warrant that in transmitting Instruments of Service,or any other information,the transmitting party is the copyright owner of such information or has permission from the copyright owner to transmit 237 AIA Document B121 –2018.Copyright ©2014 and 2018.Allrights reserved.“The American Institute of Architects,”“American Institute of Architects,”“AIA,”theAIALogo,and “AIA Contract Documents”are trademarksof The American Institute of Architects.This documentwas produced at 21:33:22 MDT on 06/29/2026underSubscriptionNo.20250131413which expires on 05/26/2027,isnot for resale,is licensed for one-time use only,and may only be used in accordance withtheAIAContractDocuments®Terms of Service.To report copyright violations,e-mail docinfo@aiacontracts.com. User Notes:(6a331af85a1a785856c68de3) 6 such information for its use in relation to a Service Agreement. §6.2 The Architect and the Architect’s consultants shall be deemed the authors and owners of their respective Instruments of Service,including the Drawings and Specifications,and shall retain all common law,statutory and other reserved rights,including copyrights.Submission or distribution of Instruments of Service to meet official regulatory requirements or for similar purposes in connection with a Service Agreement is not to be construed as publication in derogation of the reserved rights of the Architect and the Architect’s consultants. §6.3 The Architect grants to the Owner an irrevocable,perpetual,fully paid,nonexclusive license to use the Architect’s Instruments of Service,provided that the Owner substantially performs its obligations to promptly pay all sums when due pursuant to Articles 8 and 9.The Architect shall obtain similar nonexclusive licenses from the Architect’s consultants consistent with this Master Agreement.The license granted under this section permits the Owner to authorize the Contractor,Subcontractors,Sub-subcontractors,and suppliers,as well as the Owner’s consultants and separate contractors,to reproduce applicable portions of the Instruments of Service,subject to any protocols established pursuant to Section 10.9. §6.3.1 In the event the Owner uses the Instruments of Service without retaining the authors of the Instruments of Service,the Owner releases the Architect and Architect’s consultant(s)from all claims and causes of action arising from such uses.The Owner,to the extent permitted by law,further agrees to indemnify and hold harmless the Architect and its consultants from all costs and expenses,including the cost of defense,related to claims and causes of action asserted by any third person or entity to the extent such costs and expenses arise from the Owner’s use of the Instruments of Service under this Section 6.3.1.The terms of this Section 6.3.1 shall not apply if the Owner rightfully terminates this Agreement for cause under Section 8.4. §6.4 Except for the licenses granted in this Article 6,no other license or right shall be deemed granted or implied under this Master Agreement.The Owner shall not assign,delegate,sublicense,pledge or otherwise transfer any license granted herein to another party without the prior written agreement of the Architect.Any unauthorized use of the Instruments of Service shall be at the Owner’s sole risk and without liability to the Architect and the Architect’s consultants. §6.5 Except as otherwise stated in Section 6.3,the provisions of this Article 6 shall survive the termination of this Master Agreement. ARTICLE 7 CLAIMS AND DISPUTES §7.1 General §7.1.1 The Owner and Architect shall commence all claims and causes of action against the other and arising out of or related to any Service Agreement,whether in contract,tort,or otherwise,in accordance with the requirements of the binding dispute resolution method selected in this Master Agreement and within the period specified by applicable law.Completion of the services pursuant to a specific Service Agreement shall be the date of Substantial Completion of construction related to the services performed pursuant to the Service Agreement or,where there is no construction work related to a Service Agreement,the date the Architect completes its services under the Service Agreement. §7.1.2 To the extent damages are covered by property insurance,the Owner and Architect waive all rights against each other and against the contractors,consultants,agents,and employees of the other for damages, except such rights as they may have to the proceeds of such insurance as set forth in AIA Document A201TM-2017,General Conditions of the Contract for Construction. The Owner or the Architect,as appropriate,shall require of the contractors,consultants,agents,and employees of any of them,similar waivers in favor of the other parties enumerated herein.Pending final resolution of any controversy,claim,or dispute arising out of the Service Agreement,except as otherwise agreed by the parties in writing the Architect shall proceed diligently with performance of the Service Agreement and the Owner shall continue to make payments in accordance with the Service Agreement.§7.1.3 The Architect and Owner waive consequential damages for claims,disputes,or other matters in question,arising out of or relating to a Service Agreement.This mutual waiver is applicable,without limitation, to all consequential damages due to either party's termination of a Service Agreement,except as specifically 238 AIA Document B121 –2018.Copyright ©2014 and 2018.Allrights reserved.“The American Institute of Architects,”“American Institute of Architects,”“AIA,”theAIALogo,and “AIA Contract Documents”are trademarksof The American Institute of Architects.This documentwas produced at 21:33:22 MDT on 06/29/2026underSubscriptionNo.20250131413which expires on 05/26/2027,isnot for resale,is licensed for one-time use only,and may only be used in accordance withtheAIAContractDocuments®Terms of Service.To report copyright violations,e-mail docinfo@aiacontracts.com. User Notes:(6a331af85a1a785856c68de3) 7 provided in Section 8.6 Owner shall continue to make payments in accordance with the Service Agreement. §7.2 Mediation §7.2.1 Any claim,dispute or other matter in question arising out of or related to a Service Agreement shall be subject to mediation as a condition precedent to litigation in court of competent jurisdiction. §7.2.2 The Owner and Architect shall endeavor to resolve claims,disputes and other matters in question between them by mediation,which,unless the parties mutually agree otherwise,shall be administered by a Dispute Resolution Board established pursuant to the Dispute Resolution Board Foundation’s Practice and Procedural Manual.The parties must enter into a separate agreement establishing,among others,the scope of the work of the DRB,the responsibilities of the parties,the time for completion of the DRB’s process,payment to DRB members and whether the decision or findings of the DRB will be binding or admissible in other proceedings.The parties may,by mutual agreement,submit to mediation administered by a neutral third party mediator in accordance with American Arbitration Association procedures in effect on the date the claim is made in lieu of a DRB. §7.2.3 The parties shall share the mediator’s fee and any filing fees equally. The parties shall bear their own attorneys’fees,expert witnesses’fees,costs and expenses in the mediation.The mediation shall be held in the place where the Project is located,unless another location is mutually agreed upon.Agreements reached in mediation shall be enforceable as settlement agreements in any court having jurisdiction thereof. §7.4 The provisions of this Article 7 shall survive the termination of a Service Agreement. ARTICLE 8 TERMINATION OR SUSPENSION OF SERVICE AGREEMENTS §8.1 If the Owner fails to make payments to the Architect in accordance with a Service Agreement,such failure shall be considered substantial nonperformance and cause for termination of the Service Agreement or,at the Architect’s option,cause for suspension of performance of services under the Service Agreement for which the Owner failed to make payment.If the Architect elects to suspend services,the Architect shall give seven days’ 239 AIA Document B121 –2018.Copyright ©2014 and 2018.Allrights reserved.“The American Institute of Architects,”“American Institute of Architects,”“AIA,”theAIALogo,and “AIA Contract Documents”are trademarksof The American Institute of Architects.This documentwas produced at 21:33:22 MDT on 06/29/2026underSubscriptionNo.20250131413which expires on 05/26/2027,isnot for resale,is licensed for one-time use only,and may only be used in accordance withtheAIAContractDocuments®Terms of Service.To report copyright violations,e-mail docinfo@aiacontracts.com. User Notes:(6a331af85a1a785856c68de3) 8 written notice to the Owner before suspending services.In the event of a suspension of services,the Architect shall have no liability to the Owner for delay or damage caused the Owner because of such suspension of services.Before resuming services,the Owner shall pay the Architect all sums due prior to suspension and any reasonable expenses incurred in the interruption of the Architect’s services. §8.2 If the services under a Service Agreement have been suspended by the Owner,the Architect shall be compensated for services performed prior to notice of such suspension.When the services under the Service Agreement are resumed,the Architect shall be compensated for reasonable expenses incurred in the interruption and resumption of the Architect’s services. §8.3 If the Owner suspends the services under a Service Agreement for more than 90 cumulative days for reasons other than the fault of the Architect,the Architect may terminate the Service Agreement by giving not less than seven days’ written notice. §8.4 Either party may terminate a Service Agreement upon not less than seven days’written notice should the other party fail substantially to perform in accordance with the terms of the Service Agreement,through no fault of the party initiating the termination.Termination of a Service Agreement under this Section 8.4 shall not be deemed a termination of other Service Agreements under this Master Agreement. §8.5 The Owner may terminate a Service Agreement,upon not less than seven days’written notice to the Architect for the Owner’s convenience and without cause. §8.6 In the event of termination of a Service Agreement not the fault of the Architect,the Architect shall be compensated for services performed prior to termination, together with Reimbursable Expenses then due. §8.7The Owner’s rights to use the Architect’s Instruments of Service in the event of termination of a Service Agreement are set forth in Article 6 and Section 9.5 of this Master Agreement. ARTICLE 9 COMPENSATION §9.1 The Owner shall compensate the Architect for the services described in the Scope of Servicespursuant to the Scope of Servicesand as set forth in this Article 9. §9.2 Except as otherwise set forth in the Scope of Services,the hourly billing rates for services of the Architect and the Architect’s consultants,if any,are set forth below.The rates may be adjusted in accordance with the Architect’s and Architect’s consultants’normal review practices provided Owner consents to such adjustment in writing. Employee or Category Rate ($0.00) Reference Exhibit B for a list of compensation for services §9.4 Compensation for Reimbursable Expenses 240 AIA Document B121 –2018.Copyright ©2014 and 2018.Allrights reserved.“The American Institute of Architects,”“American Institute of Architects,”“AIA,”theAIALogo,and “AIA Contract Documents”are trademarksof The American Institute of Architects.This documentwas produced at 21:33:22 MDT on 06/29/2026underSubscriptionNo.20250131413which expires on 05/26/2027,isnot for resale,is licensed for one-time use only,and may only be used in accordance withtheAIAContractDocuments®Terms of Service.To report copyright violations,e-mail docinfo@aiacontracts.com. User Notes:(6a331af85a1a785856c68de3) 9 §9.4.1 Unless otherwise indicated in the Scope of Services,Reimbursable Expenses are in addition to compensation for the Architect’s professional services and include the actual expenses incurred by the Architect and the Architect’s consultants directly related to a Service Agreement,as follows: .1 Transportation and authorized out-of-town travel and subsistence; .2 Permitting and other fees required by authorities having jurisdiction over the Project; .3 Printing,reproductions,plots,and standard form documents; .4 Postage,handling,and delivery; .5 Expense of overtime work requiring higher than regular rates,if authorized in advance by the Owner; .6 Renderings,physical models,mock-ups,professional photography,and presentation materials requested by the Owner or required for the Project; and .7 If required by the Owner,and with the Owner’s prior written approval,the Architect’s consultant’s expense of professional liability insurance dedicated exclusively to the Project,or the expense of additional insurance coverage or limits in excess of that normally maintained by the Architect or the Architect’s consultants,and disclosed by the Architect in writing prior to execution of this Master Agreement or a related Service Agreement; For Reimbursable Expenses the compensation shall be the expenses incurred by the Architect and the Architect's consultants plus percent (%)of the expenses incurred. §9.4.2Reimbursable Expenses will be allocated to each Service Agreement. §9.5 Payments to the Architect §9.5.1 Progress Payments §9.5.1.1 Unless otherwise agreed,payments for services provided pursuant to a Service Agreement shall be made monthly in proportion to services performed.Payments are due and payable upon presentation of the Architect’s invoice.Amounts unpaid ()days after the invoice date shall bear interest at the rate entered below, or in the absence thereof at the legal rate prevailing from time to time at the principal place of business of the Architect.(Insert rate of monthly or annual interest agreed upon.) % §9.5.1.2 The Owner shall not withhold amounts from the Architect’s compensation to impose a penalty or liquidated damages on the Architect,or to offset sums requested by or paid to contractors for the cost of changes in the Work unless the Architect agrees or has been found liable for the amounts in a binding dispute resolution proceeding. In any event,the Owner shall not withhold payments to the Architect pertaining to a Service Agreement to offset amounts in dispute under a separate Service Agreement. §9.5.1.3 Records of Reimbursable Expenses,expenses pertaining to Additional Services,and services performed on the basis of hourly rates shall be available to the Owner at mutually convenient times. ARTICLE 10 MISCELLANEOUS PROVISIONS §10.1 Each Service Agreement shall be governed by the law of the State of Montana,and any City of Bozeman municipal ordinance located,excluding that jurisdiction’s choice of law rules. §10.2 Notice shall be provided in writing to the designated representative of the party to whom the notice is addressed and shall be deemed to have been duly served if delivered in person,by mail,by courier,or by electronic transmission. §10.3 The Owner and Architect,respectively,bind themselves,their agents,successors,assigns,and legal representatives to each Service Agreement.Neither the Owner nor the Architect shall assign a Service Agreement without the written consent of the other and the GC/CM if applicable. 241 AIA Document B121 –2018.Copyright ©2014 and 2018.Allrights reserved.“The American Institute of Architects,”“American Institute of Architects,”“AIA,”theAIALogo,and “AIA Contract Documents”are trademarksof The American Institute of Architects.This documentwas produced at 21:33:22 MDT on 06/29/2026underSubscriptionNo.20250131413which expires on 05/26/2027,isnot for resale,is licensed for one-time use only,and may only be used in accordance withtheAIAContractDocuments®Terms of Service.To report copyright violations,e-mail docinfo@aiacontracts.com. User Notes:(6a331af85a1a785856c68de3) 10 §10.3.1 If the Owner requests the Architect to execute certificates,the proposed language of such certificates shall be submitted to the Architect for review at least 14 days prior to the requested dates of execution. If the Owner requests the Architect to execute consents reasonably required to facilitate assignment to a lender,the Architect shall execute all such consents that are consistent with the Service Agreement,provided the proposed consent is submitted to the Architect for review at least 14 days prior to execution. The Architect shall not be required to execute certificates or consents that would require knowledge,services,or responsibilities beyond the scope of the Service Agreement. §10.4Unless otherwise required in a Service Agreement,the Architect shall have no responsibility for the discovery,presence,handling,removal or disposal of,or exposure of persons to,hazardous materials or toxic substances in any form at the Project site. §10.5The Architect shall have the right to include photographic or artistic representations of the design of the Projects for which services are performed among the Architect’s promotional and professional materials.The Architect shall be given reasonable access to the completed Projects to make such representations.However, the Architect’s materials shall not include the Owner’s confidential or proprietary information if the Owner has previously advised the Architect in writing of the specific information considered by the Owner to be confidential or proprietary.The Owner shall provide professional credit for the Architect in the Owner’s promotional materials for the Projects.This Section 10.6 shall survive the termination of a Service Agreement unless the Owner terminates a Service Agreement for cause pursuant to Section 8.4. §10.6If the Architect or Owner receives information specifically designated as “confidential”or “business proprietary,”the receiving party may disclose such information as required by law or court order,including a subpoena or other form of compulsory legal process issued by a court or governmental entity.The Party receiving such information may also disclose it to its employees,consultants or contractors in order to perform services or work solely and exclusively for the Project,provided those employees,consultants and contractors are subject to the restrictions on the disclosure and use of such information as set forth in this Section 10.7. §10.7The invalidity of any provision of the Agreement shall not invalidate the Agreement or its remaining provisions.If it is determined that any provision of the Agreement violates any law,or is otherwise invalid or unenforceable,then that provision shall be revised to the extent necessary to make that provision legal and enforceable.In such case the Agreement shall be construed,to the fullest extent permitted by law,to give effect to the parties’intentions and purposes in executing the Agreement. §10.8The parties shall agree upon protocols governing the transmission and use of Instruments of Service or any other information or documentation in digital form.§10.9 Any use of,or reliance on,all or a portion of a building information model without agreement to written protocols governing the use of,and reliance on,the information contained in the model shall be at the using or relying party’s sole risk and without liability to the other party and its contractors or consultants,the authors of, or contributors to,the building information model,and each of their agents and employees. §10.10A waiver by either party any default or breach by the other party of any terms or conditions of this Master 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. ARTICLE 11 SPECIAL TERMS AND CONDITIONS Special terms and conditions applicable to this Master Agreement are as follows: (Include other terms and conditions applicable to this Agreement.) §11.1 For other than professional services rendered,to the fullest extent permitted by law,Architect agrees to defend, indemnify,and hold Owner harmless against claims,demands,suits,damages,losses and expenses connected therewith that may be asserted or claimed against,recovered from or suffered by the Owner by reason of any injury or loss, including but not limited to,personal injury,including bodily injury or death,property damage,occasioned by,growing out of,or in any way arising or resulting from any intentional or negligent act on the part of Architect or Architect’s 242 AIA Document B121 –2018.Copyright ©2014 and 2018.Allrights reserved.“The American Institute of Architects,”“American Institute of Architects,”“AIA,”theAIALogo,and “AIA Contract Documents”are trademarksof The American Institute of Architects.This documentwas produced at 21:33:22 MDT on 06/29/2026underSubscriptionNo.20250131413which expires on 05/26/2027,isnot for resale,is licensed for one-time use only,and may only be used in accordance withtheAIAContractDocuments®Terms of Service.To report copyright violations,e-mail docinfo@aiacontracts.com. User Notes:(6a331af85a1a785856c68de3) 11 consultants,agents or employees. For the professional services rendered,to the fullest extent permitted by law,Architect agrees to defend,indemnify and hold Owner harmless against claims,demands,suits,damages,losses,and expenses,including reasonable defense attorney fees,to the extent caused by the negligence or willful misconduct of the architect or Architect’s consultants, agents or employees. To the fullest extent permitted by law,Architect agrees to defend,indemnify and hold Owner harmless from any claims, demands,suits,damages,losses and expenses arising from or relating to any claim for violation of intellectual property rights,including without limitation copyright rights arising from or related to the use of any work product provided by Architect or Architect’s consultants,agents or employees. Should Owner be required to bring and action against the Architect to assert its right to defense or indemnification under this Agreement or under the Architect’s applicable insurance policies required below Owner shall be entitled to recover reasonable costs and attorney fees incurred in asserting its right to indemnification or defense but only if a court of competent jurisdiction determines the Architect was obligated to defend the claim(s)or was obligated to indemnify Owner for a claim(s)or any portion(s)thereof The obligations of this Section 11.1 shall survive termination of this Master Agreement. §11.2 In the event it becomes necessary for Owner or Architect to retain an attorney to enforce any of the terms or conditions of this Master Agreement or to give any notice required herein,then the prevailing party or the party giving notice shall be entitled to reasonable attorney’s gees and costs,including fees,salary,and costs of in-house counsel to include the City Attorney. §11.3 The Architect will have a policy to provide equal employment opportunity in accordance with all applicable state and federal anti-discrimination laws,regulations and contracts.In order to satisfy City of Bozeman policy the Architect will not refuse employment to a person,bar a person from employment or discriminate against a person in compensation or in a term,condition,or privilege of employment because of race,color,religion,creed,political ideas, sex,age,marital status,national origin,actual or perceived sexual orientation,gender identity,physical or mental disability,except when the reasonable demands of the position require an age,physical or mental disability,marital status or sex distinction.The Architect shall be subject to and comply with Title VI of the Civil Rights Act of 1964; Section 140,Title 2,United States Code,and all regulations promulgated thereunder.The Architect shall require these nondiscrimination terms of its sub-consultants providing services under this agreement. ARTICLE 12 SCOPE OF THIS MASTER AGREEMENT §12.1 This Master Agreement represents the entire and integrated agreement between the Owner and the Architect and supersedes all prior negotiations,representations or agreements,either written or oral.This Master Agreement may be amended only by written instrument signed by both the Owner and Architect. §12.2 This Master Agreement is comprised of the following documents identified below: .1 AIA Document B121™–2018,Standard Form of Master Agreement Between Owner and Architect .2 Building Information Modeling Exhibit,if completed: .3Exhibits: (Clearly identify any other exhibits incorporated into this Master Agreement.) Exhibit A -Scope of Services Exhibit B -Compensation for Services .4 Other documents: (List other documents,if any,forming part of the Master Agreement.) This Master Agreement entered into as of the day and year first written above. 243 AIA Document B121 –2018.Copyright ©2014 and 2018.Allrights reserved.“The American Institute of Architects,”“American Institute of Architects,”“AIA,”theAIALogo,and “AIA Contract Documents”are trademarksof The American Institute of Architects.This documentwas produced at 21:33:22 MDT on 06/29/2026underSubscriptionNo.20250131413which expires on 05/26/2027,isnot for resale,is licensed for one-time use only,and may only be used in accordance withtheAIAContractDocuments®Terms of Service.To report copyright violations,e-mail docinfo@aiacontracts.com. User Notes:(6a331af85a1a785856c68de3) 12 /s1/ OWNER (Signature) BY:Chuck Winn,City Manager (Printed name and title) /s2/ ARCHITECT (Signature) BY:Tom Sawyer,Project Manager (Printed name,title,and license number if required) 244 Additions and Deletions Report for AIA®Document B121TM –2018 This Additions and Deletions Report,as defined on page 1 of the associated document,reproduces below all text the author has added to the standard form AIA document in order to complete it,as well as any text the author may have added to or deleted from the original AIA text.Added text is shown underlined.Deleted text is indicated with a horizontal line through the original AIA text. Note:This Additions and Deletions Report is provided for information purposes only and is not incorporated into or constitute any part of the associated AIA document.This Additions and Deletions Report and its associated document were generated simultaneously by AIA software at 21:33:22 MDT on 06/29/2026. Additions and Deletions Report for AIA Document B121 –2018.Copyright ©2014 and 2018.All rights reserved.“The American Institute of Architects,”“American Institute of Architects,”“AIA,”the AIA Logo,and “AIA Contract Documents”are trademarks of The American Institute of Architects.This document wasproducedat21:33:22 MDT on06/29/2026 under Subscription No.20250131413 which expires on05/26/2027,is not for resale,is licensed for one-time use only,and may only be used in accordancewith the AIA Contract Documents®Terms of Service.To report copyright violations,e-mail docinfo@aiacontracts.com. User Notes:(6a331af85a1a785856c68de3) 1 ADDEL_REPORT_ANCHOR_V1 Changes to original AIA text PAGE 2 §1.2 This Master Agreement shall apply to the Scope of Servicesall Service Orders agreed to by the Parties within the term of this Master Agreement until completion of the Scope of ServicesService Order.In the event of a conflict between terms and conditions of this Master Agreement and the Scope of Servicesa Service Order,the terms of the Scope of ServicesService Order shall take precedence for the services provided pursuant to the Scope of ServicesService Order.An agreed upon Scope of ServicesService Order together with this Master Agreement form a Service Agreement.A Service Agreement represents the entire and integrated agreement between the parties,and supersedes prior negotiations,representations,or agreements,either written or oral.A Service Agreement may be amended or modified only in writing signed by the partiesby a Modification. §1.3 This Master Agreement will renew on an annual basis,on the day and month of the Date of this Master Agreement,unless the Scope of Services has been completed and accepted by the Cityeither party provides notice of their intent not to renew this Master Agreement.Notice must be provided at least 60 days prior to the renewal date.In the event either party elects not to renew this Master Agreement,the terms of this Master Agreement shall remain applicable until all the Scope of ServicesService Orders under this Master Agreement isare completed or terminated. §1.4 The Owner identifies the following representative authorized to act on the Owner’s behalf with respect to this ServiceMaster Agreement: §1.4.1 In each Service Order,the Owner will identify a representative authorized to act on the Owner’s behalf with respect to the Service Order. §1.5 The Architect identifies the following representative authorized to act on the Architect’s behalf with respect to this ServiceMaster Agreement: PAGE 3 §1.5.1 In each Service Order,the Architect will identify a representative authorized to act on behalf of the Architect with respect to the Service Order. §1.6 Architect understands that Owner has a separate contract with a GC/CM in order to complete the Work set forth in the Scope of Services. Architect agrees to communicate and coordinate with GC/CM and Owner in order to complete the Work. 245 Additions and Deletions Report for AIA Document B121 –2018.Copyright ©2014 and 2018.All rights reserved.“The American Institute of Architects,”“American Institute of Architects,”“AIA,”the AIA Logo,and “AIA Contract Documents”are trademarks of The American Institute of Architects.This document wasproducedat21:33:22 MDT on06/29/2026 under Subscription No.20250131413 which expires on05/26/2027,is not for resale,is licensed for one-time use only,and may only be used in accordancewith the AIA Contract Documents®Terms of Service.To report copyright violations,e-mail docinfo@aiacontracts.com. User Notes:(6a331af85a1a785856c68de3) 2 §1.76 Nothing contained in this ServiceMaster Agreement or in a Service Order shall create a contractual relationship with,or a cause of action in favor of,a third party against either the Owner or Architect. ARTICLE 2 SCOPE OF SERVICESSERVICE ORDERS §2.1 The Owner is not required to issue any Service Orders under this Master Agreement. §2.2 The Architect may decline to accept any Service Order issued by the Owner. §2.3 The Architect shall perform the services set forth in theeach agreed upon Scope of ServicesService Order, consisting of AIA Document B221-2018,Service Order,or such other document as the Owner and Architect may mutually agree upon.The Scope of ServicesEach Service Order shall state the name,location,and detailed description of the Project;describe the Architect’s Services;state the Architect’s compensation;and list the attachments and exhibits incorporated by reference. §3.3 The Architect shall maintain the following insurance until termination of this Master Agreement.If any of the requirements set forth below are in addition to the types and limits the Architect normally maintains,the Owner shall pay the Architect as set forth in Section 9.4. (Identify types and limits of insurance coverage,and other insurance requirements applicable to the Agreement,if any.)The Owner shall be endorsed as additional insured on the Architect’s primary and excess insurance policies for General Liability and Automobile Liability.The additional insured coverage shall be primary and non-contributory to any of the Owner’s insurance policies.The additional insured coverage shall apply to both ongoing operations and completed operations.Upon request by the Owner,the Architect shall provide to the Owner certificates of insurance evidencing compliance with the requirements of this Section 3.3. .1 Commercial General Liability PAGE 4 .4 Professional Liability §3.4 The Architect shall coordinate its services with those services provided by the Owner and the Owner’s consultants. The Architect shall be entitled to rely on the accuracy and completeness of the services and information furnished by the Owner and the Owner’s consultants.The Architect shall provide prompt written notice to the Owner if the Architect becomes aware of any error,omission,or inconsistency in such services or information.§ 3.4 The Architect shall coordinate its services with those services provided by the Owner and the Owner’s consultants,including any GC/CM. The Architect shall be entitled to rely on the accuracy and completeness of the services and information furnished by the Owner and the Owner’s consultants.The Architect shall provide prompt written notice to the Owner if the Architect becomes aware of any error,omission,or inconsistency in such services or information. §3.6 The Architect shall manage the Architect’s services,research applicable design criteria,attend project meetings,communicate with members of the project team,including the GC/CM and report progress to the Owner. §3.7 As soon as practicable after the date of this Service Agreement,the Architect shall submit for the Owner’s approval a schedule for the performance of the Architect’s services. §3.8 As soon as practicable after award of the Service Agreement,the Architect shall furnish in writing to the Owner the names of consultants proposed for portions of the scope of a Service Order.The Owner may reply within 14 246 Additions and Deletions Report for AIA Document B121 –2018.Copyright ©2014 and 2018.All rights reserved.“The American Institute of Architects,”“American Institute of Architects,”“AIA,”the AIA Logo,and “AIA Contract Documents”are trademarks of The American Institute of Architects.This document wasproducedat21:33:22 MDT on06/29/2026 under Subscription No.20250131413 which expires on05/26/2027,is not for resale,is licensed for one-time use only,and may only be used in accordancewith the AIA Contract Documents®Terms of Service.To report copyright violations,e-mail docinfo@aiacontracts.com. User Notes:(6a331af85a1a785856c68de3) 3 days to the Architect in writing stating (1)whether the Owner has reasonable objection to any such proposed consultant or (2)that the Owner requires additional time for review.Failure of the Owner to reply within the 14-day period shall constitute notice of no reasonable objection.Architect shall not contract with a proposed consultant to whom the Owner has made reasonable and timely objection. §3.9 Architect shall not substitute a consultant previously selected without written consent of the Owner.Architect shall notify the Owner and GC/CM of any proposed substitution a minimum of ten (10)days prior to a proposed change. §4.2 Unless otherwise provided in a Service Order,upon recognizing the need to perform the following Additional Services,as they relate to the services provided pursuant to the Scope of ServicesService Order,the Architect shall notify the Owner with reasonable promptness and explain the facts and circumstances giving rise to the need.The Architect shall not proceed to provide the following Additional Services until the Architect receives the Owner’s written authorization: PAGE 5 .1 Services necessitated by a change in the Initial Information,previous instructions or approvals given by the Owner,or a material change in the Project including size,quality,complexity,the Owner’s schedule or budget, budget for Cost of the Work,or procurement or delivery method; .6 Preparation for,and attendance at,a dispute resolution proceeding or legal proceeding,except where the Architect is party thereto;Preparation of design and documentation for alternate bid or proposal requests proposed by the Owner; Preparation for,and attendance at,a dispute resolution proceeding or legal proceeding,except where the Architect is party thereto; .8 Preparation for,and attendance at,a dispute resolution proceeding or legal proceeding,except where the Architect is party thereto; .7 Consultation concerning replacement of Work resulting from fire or other cause during construction.; .8 Preparation of design and documentation for alternate bid or proposal requests proposed by the Owner; .9 Preparation for,and attendance at,a public presentation,meeting or hearing; .10 Evaluation of the qualifications of entities providing bids or proposals. .10 Consultation concerning replacement of Work resulting from fire or other cause during construction. §5.1 The Owner shall provide information in a timely manner regarding requirements for and limitations of the Scope of Serviceseach Service Order. §5.3 The Owner shall coordinate the services of its own consultants with those services provided by the Architect.Upon the Architect’s request,the Owner shall furnish copies of the scope of consulting services in the contracts between the Owner and the Owner’s consultants.The Owner shall furnish the services of consultants as designated in the Scope of Servicesan individual Service Order,or authorize the Architect to furnish them as an Additional Service,when the Architect requests such services and demonstrates to the Owner’s satisfaction that they are reasonably required by the scope of the Scope of ServicesService Order.The Owner shall require that its consultants and contractors maintain insurance,including professional liability insurance,as appropriate to the services or work provided. §5.5 The Owner shall provide prompt written notice to the Architect if the Owner becomes aware of any fault or defect in the services or work related to a Service Agreement,including errors,omissions or inconsistencies in the Architect’s Instruments of Service. 247 Additions and Deletions Report for AIA Document B121 –2018.Copyright ©2014 and 2018.All rights reserved.“The American Institute of Architects,”“American Institute of Architects,”“AIA,”the AIA Logo,and “AIA Contract Documents”are trademarks of The American Institute of Architects.This document wasproducedat21:33:22 MDT on06/29/2026 under Subscription No.20250131413 which expires on05/26/2027,is not for resale,is licensed for one-time use only,and may only be used in accordancewith the AIA Contract Documents®Terms of Service.To report copyright violations,e-mail docinfo@aiacontracts.com. User Notes:(6a331af85a1a785856c68de3) 4 §5.6 Within 15 days after receipt of a written request from the Architect,the Owner shall furnish the requested information as necessary and relevant for the Architect to evaluate,give notice of,or enforce lien rights. §5.6Within 15 days after receipt of a written request from the Architect,the Owner shall furnish the requested information as necessary and relevant for the Architect to evaluate,give notice of,or enforce lien rights. PAGE 6 §6.3 The Architect grants to the Owner a an irrevocable,perpetual,fully paid,nonexclusive license to use the Architect’s Instruments of Service solely and exclusively for purposes of constructing,using,maintaining,altering and adding to the Project,of Service,provided that the Owner substantially performs its obligations under the Service Agreement,including prompt payment of to promptly pay all sums when due pursuant to Articles 8 and 9.The Architect shall obtain similar nonexclusive licenses from the Architect’s consultants consistent with this Master Agreement.The license granted under this section permits the Owner to authorize the Contractor,Subcontractors,Sub- subcontractors,and suppliers,as well as the Owner’s consultants and separate contractors,to reproduce applicable portions of the Instruments of Service,subject to any protocols established pursuant to Section 10.9,solely and exclusively for use in performing services or construction for the Project.If the Architect rightfully terminates a Service Agreement for cause as provided in Section 8.4,the license granted in this Section 6.3,and related to the terminated Service Agreement,shall terminate.10.9. §6.3.1 In the event the Owner uses the Instruments of Service without retaining the authors of the Instruments of Service,the Owner releases the Architect and Architect’s consultant(s)from all claims and causes of action arising from such uses.The Owner,to the extent permitted by law,further agrees to indemnify and hold harmless the Architect and its consultants from all costs and expenses,including the cost of defense,related to claims and causes of action asserted by any third person or entity to the extent such costs and expenses arise from the Owner’s use of the Instruments of Service under this Section 6.3.1.The terms of this Section 6.3.1 shall not apply if the Owner rightfully terminates this Agreement for cause under Section 8.4. §7.1.1 The Owner and Architect shall commence all claims and causes of action against the other and arising out of or related to any Service Agreement,whether in contract,tort,or otherwise,in accordance with the requirements of the binding dispute resolution method selected in this Master Agreement and within the period specified by applicable law, but in any case not more than 10 years after the completion of the services provided pursuant to a specific Service Agreement,whichever is sooner.Completion of the services pursuant to a specific Service Agreement shall be the date of Substantial Completion of construction related to the services performed pursuant to the Service Agreement or, where there is no construction work related to a Service Agreement,the date the Architect completes its services under the Service Agreement.The Owner and Architect waive all claims and causes of action not commenced in accordance with this Section 7.1.1. §7.1.2 To the extent damages are covered by property insurance,the Owner and Architect waive all rights against each other and against the contractors,consultants,agents,and employees of the other for damages,except such rights as they may have to the proceeds of such insurance as set forth in AIA Document A201™–2017,General Conditions of the Contract for Construction.The Owner or the Architect,as appropriate,shall require of the contractors,consultants, agents,and employees of any of them,similar waivers in favor of the other parties enumerated herein.Pending final resolution of any controversy,claim,or dispute arising out of the Service Agreement,except as otherwise agreed by the parties in writing the Architect shall proceed diligently with performance of the Service Agreement and theOwner shall continue to make payments in accordance with the Service Agreement. Owner shall continue to make payments in accordance with the Service Agreement. §7.1.2 To the extent damages are covered by property insurance,the Owner and Architect waive all rights against each other and against the contractors,consultants,agents,and employees of the other for damages,except such rights as they may have to the proceeds of such insurance as set forth in AIA Document A201TM-20173,General Conditions of the Contract for Construction. The Owner or the Architect,as appropriate,shall require of the contractors,consultants, agents,and employees of any of them,similar waivers in favor of the other parties enumerated herein.Pending final resolution of any controversy,claim,or dispute arising out of the Service Agreement,except as otherwise agreed by the parties in writing the Architect shall proceed diligently with performance of the Service Agreement and the Owner shall 248 Additions and Deletions Report for AIA Document B121 –2018.Copyright ©2014 and 2018.All rights reserved.“The American Institute of Architects,”“American Institute of Architects,”“AIA,”the AIA Logo,and “AIA Contract Documents”are trademarks of The American Institute of Architects.This document wasproducedat21:33:22 MDT on06/29/2026 under Subscription No.20250131413 which expires on05/26/2027,is not for resale,is licensed for one-time use only,and may only be used in accordancewith the AIA Contract Documents®Terms of Service.To report copyright violations,e-mail docinfo@aiacontracts.com. User Notes:(6a331af85a1a785856c68de3) 5 continue to make payments in accordance with the Service Agreement.§7.1.3 The Architect and Owner waive consequential damages for claims,disputes,or other matters in question,arising out of or relating to a Service Agreement.This mutual waiver is applicable,without limitation,to all consequential damages due to either party’s termination of a Service Agreement,except as specifically provided in Section 8.6.Owner shall continue to make payments in accordance with the Service Agreement. §7.1.3 The Architect and Owner waive consequential damages for claims,disputes,or other matters in question,arising out of or relating to a Service Agreement.This mutual waiver is applicable,without limitation,to all consequential damages due to either party's termination of a Service Agreement,except as specifically provided in Section 8.6 Owner shall continue to make payments in accordance with the Service Agreement. PAGE 7 §7.2.1 Any claim,dispute or other matter in question arising out of or related to a Service Agreement shall be subject to mediation as a condition precedent to binding dispute resolution.If such matter relates to or is the subject of a lien arising out of the Architect’s services,the Architect may proceed in accordance with applicable law to comply with the lien notice or filing deadlines prior to resolution of the matter by mediation or by binding dispute resolution.litigation in court of competent jurisdiction. §7.2.2 The Owner and Architect shall endeavor to resolve claims,disputes and other matters in question between them by mediation,which,unless the parties mutually agree otherwise,shall be administered by the American Arbitration Association in accordance with its Construction Industry Mediation Procedures in effect on the date of this Master Agreement.A request for mediation shall be made in writing,delivered to the other party to this Master Agreement,and filed with the person or entity administering the mediation.The request may be made concurrently with the filing of a complaint or other appropriate demand for binding dispute resolution but,in such event,mediation shall proceed in advance of binding dispute resolution proceedings,which shall be stayed pending mediation for a period of 60 days from the date of filing,unless stayed for a longer period by agreement of the parties or court order.If an arbitration proceeding is stayed pursuant to this section,the parties may nonetheless proceed to the selection of the arbitrator(s)and agree upon a schedule for later proceedings.a Dispute Resolution Board established pursuant to the Dispute Resolution Board Foundation’s Practice and Procedural Manual.The parties must enter into a separate agreement establishing, among others,the scope of the work of the DRB,the responsibilities of the parties,the time for completion of the DRB’s process,payment to DRB members and whether the decision or findings of the DRB will be binding or admissible in other proceedings.The parties may,by mutual agreement,submit to mediation administered by a neutral third party mediator in accordance with American Arbitration Association procedures in effect on the date the claim is made in lieu of a DRB. §7.2.3 The parties shall share the mediator’s fee and any filing fees equally. The parties shall bear their own attorneys’ fees,expert witnesses’fees,costs and expenses in the mediation.The mediation shall be held in the place where the Project is located,unless another location is mutually agreed upon.Agreements reached in mediation shall be enforceable as settlement agreements in any court having jurisdiction thereof. §7.2.4 If the parties do not resolve a dispute through mediation pursuant to this Section 7.2,the method of binding dispute resolution shall be the following: (Check the appropriate box.) [ ] Arbitration pursuant to Section 7.3 of this Master Agreement [ ] Litigation in a court of competent jurisdiction [ ] Other:(Specify) If the Owner and Architect do not select a method of binding dispute resolution,or do not subsequently agree in writing to a binding dispute resolution method other than litigation,the dispute will be resolved in a court of competent jurisdiction. 249 Additions and Deletions Report for AIA Document B121 –2018.Copyright ©2014 and 2018.All rights reserved.“The American Institute of Architects,”“American Institute of Architects,”“AIA,”the AIA Logo,and “AIA Contract Documents”are trademarks of The American Institute of Architects.This document wasproducedat21:33:22 MDT on06/29/2026 under Subscription No.20250131413 which expires on05/26/2027,is not for resale,is licensed for one-time use only,and may only be used in accordancewith the AIA Contract Documents®Terms of Service.To report copyright violations,e-mail docinfo@aiacontracts.com. User Notes:(6a331af85a1a785856c68de3) 6 §7.4 The provisions of this Article 7 shall survive the termination of a Service Agreement. §7.3 Arbitration §7.3.1 If the parties have selected arbitration as the method for binding dispute resolution in this Master Agreement,any claim,dispute or other matter in question arising out of or related to a Service Agreement subject to,but not resolved by,mediation shall be subject to arbitration,which,unless the parties mutually agree otherwise,shall be administered by the American Arbitration Association in accordance with its Construction Industry Arbitration Rules in effect on the date of this Master Agreement.A demand for arbitration shall be made in writing,delivered to the other party to this Master Agreement,and filed with the person or entity administering the arbitration. §7.3.1.1 A demand for arbitration shall be made no earlier than concurrently with the filing of a request for mediation, but in no event shall it be made after the date when the institution of legal or equitable proceedings based on the claim, dispute or other matter in question would be barred by the applicable statute of limitations.For statute of limitations purposes,receipt of a written demand for arbitration by the person or entity administering the arbitration shall constitute the institution of legal or equitable proceedings based on the claim,dispute or other matter in question. §7.3.2 The foregoing agreement to arbitrate,and other agreements to arbitrate with an additional person or entity duly consented to by parties to this Master Agreement,shall be specifically enforceable in accordance with applicable law in any court having jurisdiction thereof. §7.3.3 The award rendered by the arbitrator(s)shall be final,and judgment may be entered upon it in accordance with applicable law in any court having jurisdiction thereof. §7.3.4 Consolidation or Joinder §7.3.4.1 Either party,at its sole discretion,may consolidate an arbitration conducted under this Master Agreement with any other arbitration to which it is a party provided that (1)the arbitration agreement governing the other arbitration permits consolidation;(2)the arbitrations to be consolidated substantially involve common questions of law or fact;and (3)the arbitrations employ materially similar procedural rules and methods for selecting arbitrator(s). §7.3.4.2 Either party,at its sole discretion,may include by joinder persons or entities substantially involved in a common question of law or fact whose presence is required if complete relief is to be accorded in arbitration,provided that the party sought to be joined consents in writing to such joinder.Consent to arbitration involving an additional person or entity shall not constitute consent to arbitration of any claim,dispute or other matter in question not described in the written consent. §7.3.4.3 The Owner and Architect grant to any person or entity made a party to an arbitration conducted under this Section 7.3,whether by joinder or consolidation,the same rights of joinder and consolidation as the Owner and Architect under this Master Agreement. §7.4 The provisions of this Article 7 shall survive the termination of a Service Agreement. PAGE 8 §8.1 If the Owner fails to make payments to the Architect in accordance with a Service Agreement,such failure shall be considered substantial nonperformance and cause for termination of the Service Agreement or,at the Architect’s option, cause for suspension of performance of services under the Service Agreement for which the Owner failed to make payment.If the Architect elects to suspend services,the Architect shall give seven days’written notice to the Owner before suspending services.In the event of a suspension of services,the Architect shall have no liability to the Owner for delay or damage caused the Owner because of such suspension of services.Before resuming services,the Owner shall pay the Architect all sums due prior to suspension and any reasonable expenses incurred in the interruption and resumption of the Architect’s services.The Architect’s fees for the remaining services and the time schedules shall be 250 Additions and Deletions Report for AIA Document B121 –2018.Copyright ©2014 and 2018.All rights reserved.“The American Institute of Architects,”“American Institute of Architects,”“AIA,”the AIA Logo,and “AIA Contract Documents”are trademarks of The American Institute of Architects.This document wasproducedat21:33:22 MDT on06/29/2026 under Subscription No.20250131413 which expires on05/26/2027,is not for resale,is licensed for one-time use only,and may only be used in accordancewith the AIA Contract Documents®Terms of Service.To report copyright violations,e-mail docinfo@aiacontracts.com. User Notes:(6a331af85a1a785856c68de3) 7 equitably adjusted. §8.2 If the services under a Service Agreement have been suspended by the Owner,the Architect shall be compensated for services performed prior to notice of such suspension.When the services under the Service Agreement are resumed, the Architect shall be compensated for reasonable expenses incurred in the interruption and resumption of the Architect’s services.The Architect’s fees for the remaining services and the time schedules shall be equitably adjusted. §8.6 In the event of termination of a Service Agreement not the fault of the Architect,the Architect shall be compensated for services performed prior to termination, Reimbursable Expenses incurred,and all costs attributable to termination,including the costs attributable to the Architect’s termination of consultant agreements.together with Reimbursable Expenses then due. §8.7In addition to any amounts paid under Section 8.6,if the Owner terminates a Service Agreement for its convenience pursuant to Section 8.5,or the Architect terminates a Service Agreement pursuant to Section 8.3,the Owner shall pay to the Architect the following fees: (Set forth below the amount of any termination or licensing fee,or the method for determining any termination or licensing fee.) .1 Termination Fee: .2 Licensing Fee if the Owner intends to continue using the Architect’s Instruments of Service: §8.8 Except as otherwise expressly provided herein,a Service Agreement shall terminate one year from the date of Substantial Completion. §8.97The Owner’s rights to use the Architect’s Instruments of Service in the event of termination of a Service Agreement are set forth in Article 6 and Section 9.5 of this Master Agreement. §9.1 The Owner shall compensate the Architect for the services described in the Scope of Servicesa Service Order pursuant to the Scope of ServicesService Order and as set forth in this Article 9. §9.2 Except as otherwise set forth in the Scope of Servicesa Service Order,the hourly billing rates for services of the Architect and the Architect’s consultants,if any,are set forth below.The rates shall may be adjusted in accordance with the Architect’s and Architect’s consultants’normal review practices.practices provided Owner consents to such adjustment in writing. (If applicable,attach an exhibit of hourly billing rates or insert them below.) Employee or Category Rate ($0.00) Reference Exhibit B for a list of compensation for services PAGE 9 §9.3 Except as otherwise set forth in a Service Order,the Owner shall compensate the Architect for Additional Services designated in Article 4 as follows: (Insert amount of,or basis for,compensation.If necessary,list specific services to which particular methods of compensation apply.) §9.4.1 Unless otherwise indicated in the Scope of Services,Reimbursable Expenses are in addition to compensation for the Architect’s professional services and include the actual expenses incurred by the Architect and the Architect’s consultants directly related to a Service Agreement,as follows: .2 Permitting and other fees required by authorities having jurisdiction over the Project;Long distance services, dedicated data and communication services,teleconferences,Project web sites,and extranets; 251 Additions and Deletions Report for AIA Document B121 –2018.Copyright ©2014 and 2018.All rights reserved.“The American Institute of Architects,”“American Institute of Architects,”“AIA,”the AIA Logo,and “AIA Contract Documents”are trademarks of The American Institute of Architects.This document wasproducedat21:33:22 MDT on06/29/2026 under Subscription No.20250131413 which expires on05/26/2027,is not for resale,is licensed for one-time use only,and may only be used in accordancewith the AIA Contract Documents®Terms of Service.To report copyright violations,e-mail docinfo@aiacontracts.com. User Notes:(6a331af85a1a785856c68de3) 8 .3 Permitting and other fees required by authorities having jurisdiction over the Project; .4 .3 Printing,reproductions,plots,and standard form documents; .5 .4 Postage,handling,and delivery; .6 .5 Expense of overtime work requiring higher than regular rates,if authorized in advance by the Owner; .7 .6 Renderings,physical models,mock-ups,professional photography,and presentation materials requested by the Owner or required for the Project; and .8 .7 If required by the Owner,and with the Owner’s prior written approval,the Architect’s consultant’s expense of professional liability insurance dedicated exclusively to the Project,or the expense of additional insurance coverage or limits in excess of that normally maintained by the Architect or the Architect’s consultants,and disclosed by the Architect in writing prior to execution of this Master Agreement or a related Service Agreement; .9 All taxes levied on professional services and on reimbursable expenses; For Reimbursable Expenses the compensation shall be the expenses incurred by the Architect and the Architect's consultants plus percent (%)of the expenses incurred..10 Site office expenses;and .11 Other similar Project-related expenditures. §9.4.2 For Reimbursable Expenses the compensation shall be the expenses incurred by the Architect and the Architect’s consultants plus percent (%)of the expenses incurred. §9.4.23 Reimbursable Expenses will be allocated to each Service Agreement. §9.5.1.1 Unless otherwise agreed,payments for services provided pursuant to a Service Agreement shall be made monthly in proportion to services performed.Payments are due and payable upon presentation of the Architect’s invoice.Amounts unpaid ()days after the invoice date shall bear interest at the rate entered below,or in the absence thereof at the legal rate prevailing from time to time at the principal place of business of the Architect.(Insert rate of monthly or annual interest agreed upon.) Amounts unpaid ()days after the invoice date shall bear interest at the rate entered below,or in the absence thereof at the legal rate prevailing from time to time at the principal place of business of the Architect. (Insert rate of monthly or annual interest agreed upon.) §9.5.1.2 The Owner shall not withhold amounts from the Architect’s compensation to impose a penalty or liquidated damages on the Architect,or to offset sums requested by or paid to contractors for the cost of changes in the Work unless the Architect agrees or has been found liable for the amounts in a binding dispute resolution proceeding. In any event,the Owner shall not withhold payments to the Architect pertaining to a Service Agreement to offset amounts in dispute under a separate Service Agreement.§9.5.1.2 The Owner shall not withhold amounts from the Architect’s compensation to impose a penalty or liquidated damages on the Architect,or to offset sums requested by or paid to contractors for the cost of changes in the Work unless the Architect agrees or has been found liable for the amounts in a binding dispute resolution proceeding.In any event,the Owner shall not withhold payments to the Architect pertaining to a Service Agreement to offset amounts in dispute under a separate Service Agreement. §9.5.1.33 Records of Reimbursable Expenses,expenses pertaining to Additional Services,and services performed on the basis of hourly rates shall be available to the Owner at mutually convenient times. §10.1 Each Service Agreement shall be governed by the law of the State of Montana,and any City of Bozeman municipal ordinance located,excluding that jurisdiction’s choice of law rules.. PAGE 10 §10.3 The Owner and Architect,respectively,bind themselves,their agents,successors,assigns,and legal 252 Additions and Deletions Report for AIA Document B121 –2018.Copyright ©2014 and 2018.All rights reserved.“The American Institute of Architects,”“American Institute of Architects,”“AIA,”the AIA Logo,and “AIA Contract Documents”are trademarks of The American Institute of Architects.This document wasproducedat21:33:22 MDT on06/29/2026 under Subscription No.20250131413 which expires on05/26/2027,is not for resale,is licensed for one-time use only,and may only be used in accordancewith the AIA Contract Documents®Terms of Service.To report copyright violations,e-mail docinfo@aiacontracts.com. User Notes:(6a331af85a1a785856c68de3) 9 representatives to each Service Agreement.Neither the Owner nor the Architect shall assign a Service Agreement without the written consent of the other,except that the Owner may assign a Service Agreement to a lender providing financing for the Project if the lender agrees to assume the Owner’s rights and obligations under the Service Agreement, including any payments due to the Architect by the Owner prior to the assignment.other and the GC/CM if applicable. §10.3.1 If the Owner requests the Architect to execute certificates,the proposed language of such certificates shall be submitted to the Architect for review at least 14 days prior to the requested dates of execution. If the Owner requests the Architect to execute consents reasonably required to facilitate assignment to a lender,the Architect shall execute all such consents that are consistent with the Service Agreement,provided the proposed consent is submitted to the Architect for review at least 14 days prior to execution. The Architect shall not be required to execute certificates or consents that would require knowledge,services,or responsibilities beyond the scope of the Service Agreement.§10.4 If the Owner requests the Architect to execute certificates,the proposed language of such certificates shall be submitted to the Architect for review at least 14 days prior to the requested dates of execution.If the Owner requests the Architect to execute consents reasonably required to facilitate assignment to a lender,the Architect shall execute all such consents that are consistent with the Service Agreement,provided the proposed consent is submitted to the Architect for review at least 14 days prior to execution.The Architect shall not be required to execute certificates or consents that would require knowledge,services,or responsibilities beyond the scope of the Service Agreement. §10.45 Unless otherwise required in a Service Agreement,the Architect shall have no responsibility for the discovery, presence,handling,removal or disposal of,or exposure of persons to,hazardous materials or toxic substances in any form at the Project site. §10.56 The Architect shall have the right to include photographic or artistic representations of the design of the Projects for which services are performed among the Architect’s promotional and professional materials.The Architect shall be given reasonable access to the completed Projects to make such representations.However,the Architect’s materials shall not include the Owner’s confidential or proprietary information if the Owner has previously advised the Architect in writing of the specific information considered by the Owner to be confidential or proprietary.The Owner shall provide professional credit for the Architect in the Owner’s promotional materials for the Projects.This Section 10.6 shall survive the termination of a Service Agreement unless the Owner terminates a Service Agreement for cause pursuant to Section 8.4. §10.67 If the Architect or Owner receives information specifically designated as “confidential”or “business proprietary,”the receiving party may disclose such information as required by law or court order,including a subpoena or other form of compulsory legal process issued by a court or governmental entity.The Party receiving such information may also disclose it to its employees,consultants or contractors in order to perform services or work solely and exclusively for the Project,provided those employees,consultants and contractors are subject to the restrictions on the disclosure and use of such information as set forth in this Section 10.7. §10.78 The invalidity of any provision of the Agreement shall not invalidate the Agreement or its remaining provisions. If it is determined that any provision of the Agreement violates any law,or is otherwise invalid or unenforceable,then that provision shall be revised to the extent necessary to make that provision legal and enforceable.In such case the Agreement shall be construed,to the fullest extent permitted by law,to give effect to the parties’intentions and purposes in executing the Agreement. §10.89 The parties shall agree upon written protocols governing the transmission and use of,and reliance on,of Instruments of Service or any other information or documentation in digital form. § 10.9 Any use of,or reliance on,all or a portion of a building information model without agreement to written protocols governing the use of,and reliance on,the information contained in the model shall be at the using or relying party’s sole risk and without liability to the other party and its contractors or consultants,the authors of,or contributors to,the building information model,and each of their agents and employees. § 10.9.1 Any use of,or reliance on,all or a portion of a building information model without agreement to written protocols governing the use of,and reliance on,the information contained in the model shall be at the using or relying party’s sole risk and without liability to the other party and its contractors or consultants,the authors of,or contributors 253 Additions and Deletions Report for AIA Document B121 –2018.Copyright ©2014 and 2018.All rights reserved.“The American Institute of Architects,”“American Institute of Architects,”“AIA,”the AIA Logo,and “AIA Contract Documents”are trademarks of The American Institute of Architects.This document wasproducedat21:33:22 MDT on06/29/2026 under Subscription No.20250131413 which expires on05/26/2027,is not for resale,is licensed for one-time use only,and may only be used in accordancewith the AIA Contract Documents®Terms of Service.To report copyright violations,e-mail docinfo@aiacontracts.com. User Notes:(6a331af85a1a785856c68de3) 10 to,the building information model,and each of their agents and employees.10.101A waiver by either party any default or breach by the other party of any terms or conditions of this Master 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. this Master 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. PAGE 11 Special terms and conditions that modify applicable to this Master Agreement are as follows: (Include other terms and conditions applicable to this Agreement.) .2 Building Information Modeling Exhibit,if completed:.2 Building Information Modeling Exhibit,if completed: .3 .33Exhibits: PAGE 12 .4 Other documents: (List other documents,if any,forming part of the Master Agreement.) .4 Other documents: (List other documents,if any,forming part of the Master Agreement.) Variable Information PAGE 1 AGREEMENT made as of the Fourteenth day of July in the year Two Thousand Twenty-Six (In words,indicate day,month,and year.) City of Bozeman 121 N.Rouse Ave.,Bozeman,MT 59771 Jackola Engineering and Architecture,PC 705 Osterman Drive,Suite B,Bozeman,MT 59715 PAGE 2 Shane Miller,Project Coordinator 254 Additions and Deletions Report for AIA Document B121 –2018.Copyright ©2014 and 2018.All rights reserved.“The American Institute of Architects,”“American Institute of Architects,”“AIA,”the AIA Logo,and “AIA Contract Documents”are trademarks of The American Institute of Architects.This document wasproducedat21:33:22 MDT on06/29/2026 under Subscription No.20250131413 which expires on05/26/2027,is not for resale,is licensed for one-time use only,and may only be used in accordancewith the AIA Contract Documents®Terms of Service.To report copyright violations,e-mail docinfo@aiacontracts.com. User Notes:(6a331af85a1a785856c68de3) 11 121 N.Rouse Ave.,Bozeman,MT 59771 (406)577-7425 smiller@bozeman.net PAGE 3 Tom Sawyer,Project Manager 705 Osterman Dr.,Ste B,Bozeman,MT 59715 (406)586-0707 tsawyer@jackola.com With policy limits of not less than One Million Five Hundred Thousand Dollars ($1,500,000.00)for each occurrence and Three Million Dollars ($3,000,000.00)annual aggregate for bodily injury and property damage. The Architect may provide the required limits and coverage through a combination of primary and excess liability insurance,provided such primary and excess insurance policies result in the same or greater coverage. PAGE 4 Covering vehicles owned or used by the Architect with policy limits of not less than One Million Dollars ($1,000,000.00)for bodily injury and property damage per claim and no less than Two Million Dollars ($2,000,000)annual aggregate.The Architect may provide the required limits and coverage through a combination of primary and excess liability insurance,provided such primary and excess insurance policies result in the same or greater coverage. Workers’Compensation at the statutory limits and Employers Liability with policy limits of not less than One Million Dollars ($1,000,000.00)per occurrence,Two Million Dollars ($2,000,000.00)annual aggregate. PAGE 10 §11.1 For other than professional services rendered,to the fullest extent permitted by law,Architect agrees to defend, indemnify,and hold Owner harmless against claims,demands,suits,damages,losses and expenses connected therewith that may be asserted or claimed against,recovered from or suffered by the Owner by reason of any injury or loss, including but not limited to,personal injury,including bodily injury or death,property damage,occasioned by,growing out of,or in any way arising or resulting from any intentional or negligent act on the part of Architect or Architect’s consultants,agents or employees. For the professional services rendered,to the fullest extent permitted by law,Architect agrees to defend,indemnify and hold Owner harmless against claims,demands,suits,damages,losses,and expenses,including reasonable defense attorney fees,to the extent caused by the negligence or willful misconduct of the architect or Architect’s consultants, agents or employees. To the fullest extent permitted by law,Architect agrees to defend,indemnify and hold Owner harmless from any claims, demands,suits,damages,losses and expenses arising from or relating to any claim for violation of intellectual property rights,including without limitation copyright rights arising from or related to the use of any work product provided by Architect or Architect’s consultants,agents or employees. Should Owner be required to bring and action against the Architect to assert its right to defense or indemnification under this Agreement or under the Architect’s applicable insurance policies required below Owner shall be entitled to recover reasonable costs and attorney fees incurred in asserting its right to indemnification or defense but only if a court of competent jurisdiction determines the Architect was obligated to defend the claim(s)or was obligated to indemnify Owner for a claim(s)or any portion(s)thereof 255 Additions and Deletions Report for AIA Document B121 –2018.Copyright ©2014 and 2018.All rights reserved.“The American Institute of Architects,”“American Institute of Architects,”“AIA,”the AIA Logo,and “AIA Contract Documents”are trademarks of The American Institute of Architects.This document wasproducedat21:33:22 MDT on06/29/2026 under Subscription No.20250131413 which expires on05/26/2027,is not for resale,is licensed for one-time use only,and may only be used in accordancewith the AIA Contract Documents®Terms of Service.To report copyright violations,e-mail docinfo@aiacontracts.com. User Notes:(6a331af85a1a785856c68de3) 12 The obligations of this Section 11.1 shall survive termination of this Master Agreement. §11.2 In the event it becomes necessary for Owner or Architect to retain an attorney to enforce any of the terms or conditions of this Master Agreement or to give any notice required herein,then the prevailing party or the party giving notice shall be entitled to reasonable attorney’s gees and costs,including fees,salary,and costs of in-house counsel to include the City Attorney. §11.3 The Architect will have a policy to provide equal employment opportunity in accordance with all applicable state and federal anti-discrimination laws,regulations and contracts.In order to satisfy City of Bozeman policy the Architect will not refuse employment to a person,bar a person from employment or discriminate against a person in compensation or in a term,condition,or privilege of employment because of race,color,religion,creed,political ideas,sex,age,marital status,national origin,actual or perceived sexual orientation,gender identity,physical or mental disability,except when the reasonable demands of the position require an age,physical or mental disability,marital status or sex distinction.The Architect shall be subject to and comply with Title VI of the Civil Rights Act of 1964;Section 140,Title 2,United States Code,and all regulations promulgated thereunder.The Architect shall require these nondiscrimination terms of its sub- consultants providing services under this agreement. PAGE 11 Exhibit A -Scope of Services Exhibit B -Compensation for Services 256 AIA Document D401 –2003.Copyright©1992 and 2003.All rights reserved.“The American Institute of Architects,”“American Institute of Architects,”“AIA,”theAIALogo,and “AIA Contract Documents”are trademarksof The American Institute of Architects.This documentwas produced at 21:33:22 MDT on 06/29/2026 under Order No.20250131413 which expires on 05/26/2027,is not for resale,is licensed for one-time use only,and may only be used in accordance with the AIA Contract Documents®Terms of Service.Toreport copyright violations,e-mail docinfo@aiacontracts.com. User Notes:(6a331af85a1a785856c68de3) 1 Certification of Document's Authenticity AIA®Document D401™–2003 I,Jon Henderson,Assistant City Manager,hereby certify,to the best of my knowledge,information and belief,that I created the attached final document simultaneously with its associated Additions and Deletions Report and this certification at 21:33:22 MDT on 06/29/2026 under Order No.20250131413 from AIA Contract Documents software and that in preparing the attached final document I made no changes to the original text of AIA®Document B121TM - 2018,Standard Form of Master Agreement Between Owner and Architect for Services provided under multiple Service Orders,other than those additions and deletions shown in the associated Additions and Deletions Report. _____________________________________________________________ (Signed) _____________________________________________________________ (Title) _____________________________________________________________ (Dated) 257 Lindley Center Renovation - Page 1 of 8 DESIGN PROPOSAL Changes from original proposal shown in blue. Project : Date: 3/10/2026 Lindley Center Renovation 1102 E. Curtiss Ave Bozeman, MT 59715 Proposal to: Contact Information: City of Bozeman Attn: Shane Miller Facilities Project Coordinator Phone: 406-595-0637 20 E. Olive Street Office 014B Email: smiller@bozeman.net Bozeman, MT 59715 Dear Mr. Miller: Jackola Engineering & Architecture, PC (Jackola) is appreciative of the opportunity to provide design and construction administration services for the Lindley Center Renovation Project. BACKGROUND AND ASSUMPTIONS The City of Bozeman issued a Request for Qualifications (RFQ) and Proposal (RFP) for the subject project in March 2025. Jackola responded to the RFQ/RFP and was ultimately selected for the project. This will be a GCCM project and we understand that the contractor, Martel, will be involved in the pre- construction phase. The building was built as a log structure in 1934 and evolved over the years through several additions. In November of 2021, the voters in the City of Bozeman approved a bond to fund the renovation of several public buildings including the Lindley Center. In June of 2022 the building was deemed unsafe and closed to the public. The goal of this project is to address the safety issues and to renovate the building so it can flexibly accommodate a wide variety of uses including weddings, community events, youth recreation camps, adult workshops, and outdoor sports groups. The RFQ/RFP includes a list of owner’s criteria for this project. Included within this list are bond obligation items which must be addressed in some fo rm to meet legal obligations: • Upgrading restrooms to meet current accessibility requirements • Replacing windows • Replacing log siding • Upgrading the kitchen • Insulating the east roof • Installing floor and roof supports • Improving the parking lot and related site improvements Additional Owner’s Criteria and wish list items are listed in the RFQ/RFP. It is our understanding that the overall budget for this project is $1,540,000 less design fees & preconstruction services fees (GCCM). We will work with the City of Bozeman and project stakeholders to incorporate as many items as possible based on the project budget. 258 Lindley Center Renovation - Page 2 of 8 WORK SCOPE Survey A topographic survey will be performed to document existing conditions, locate utilities, and identify existing site grades. Existing property boundaries will be drawn from record surveys and fit to found property corner monuments. Civil/Site Plan The existing parking lot will be re-paved. We will review the existing parking layout to ensure that it meets local AHJ regulations. Access to the building from the parking lot will be improved. Site elements such as ramps, sidewalks, and ADA parking stalls will be drawn and detailed to ensure compliance with accessibility standards and the building’s functional needs. Site drainage will be improved and a drainage report wil l be developed. Architecture Jackola will work with the City of Bozeman and project stakeholders to refine the Owner’s Criteria listed in the RFQ/RFP. The building space shall be configured to flexibly accommodate a wide variety of activities. This includes improving site lines inside the building to the greatest extent possible. Design shall provide consideration to min imizing building ownership and operation costs. The existing building envelope will be investigated during the pre-investigation phase and options to upgrade will be discussed with the owner. ADA compliant restrooms and access to the building will be provided. Exterior decks and/or patios will be designed to meet programming needs and coordinated with engineering designs. The design may incorporate additional design features. Interior design is included in this scope of services and finish plans with product and color will be provided. Durable and easily maintainable finishes will be selected. Code reviews will be completed to ensure occupancy, exiting, fire code, and energy code compliance. Structural Jackola will review and independently verify the previously completed structural assessment reports. Calculations and drawings will be completed to address structural deficiencies. Building performance objectives will be discussed with the o wner. Additionally, structural design for any building alterations or improvements will be completed. This includes a new deck and/or patio and addressing the ice damming/lack of clearance at the west shed roof. Mechanical/Plumbing The building HVAC system will be replaced to improve energy efficiency and occupant comfort. Jackola will discuss various systems including pros/cons with the owner. Plumbing design will include provisions to support any building renovations. Plumbing piping which is not functioning will be identified and options for repair or replacement will be discussed with the owner. Hose bibbs are anticipated to be added on the exterior of the building. Electrical Existing building lighting will be updated to LED with dimmable controls. Our proposal assumes replacement of existing fixtures and simple wall mounted controls. Increasing fixtures or providing advanced controls is not anticipated. The existing electrical power system will be upgraded to address existing deficiencies and to serve any building renovations. Exterior outlets on a dedicated service will be provided and site lighting will be improved. Building fire alarm will be modernized/replaced. 259 Lindley Center Renovation - Page 3 of 8 Landscape Landscaping is included in this scope of services. Landscaping will be low maintenance and will not require an irrigation system. Landscape is assumed limited to providing new flower beds and plantings – landscape design for outdoor classroom space or park improvements is not included. Services not included in this scope: These services are not included in this scope of work: • Geotechnical – no geotechnical engineering services are included in this scope. It is assumed that site paving will use a standard section provided by the owner. • Hazardous Materials Testing - It is required that all existing buildings are tested for asbestos prior to start of construction. We assume that you will proceed with the testing required. We recommend that this testing is done as part of the design phase so that any necessary work can be taken into account during the estimating process. • Sprinkler System Design – Based on the building size and use, it is assumed that a fire sprinkler system in not required. • Cost Estimating – since this is a GCCM project, it is assumed that cost estimating will be completed by the contractor. • Kitchen is limited to warming/serving food through the use of warming trays, crock pots, microwaves only. We assume coordination with a kitchen equipment supplier is not required. • Design of Low Voltage systems including Network and Data, Audio/Visual and Control, Access Control, and Security and Surveillance is not included, but can be provided if desired. • SWPPP and Erosion/Sediment Control Plans are by others. • It is assumed City of Bozeman infrastructure review will not be required for this project. • Weekly project meetings are not included during design phase. Meetings during the design phase are limited to those specifically listed belo w. • No building signage design is included in this scope. • Support is included in this agreement to work with the permitting authority and issue responses or amendments to obtain a building permit. Permit fees, however, are not included. DESIGN TASKS Pre-Project Inspection and Assessment Representatives from each of the project disciplines will visit the site to evaluate existing conditions and “as-built” the building and its syst ems. Jackola’s work includes a 3D digital scan (Matterport) of the existing space, made available to the client, for design and documentation. Additionally, we will begin creating a Revit file of the existing building based on existing record drawings, our site visit, and the Matterport scan. A topographic survey of the site will be completed. MEETINGS/SITE VISITS: 1. Project Kickoff Meeting 2. Initial Project Site Visit DELIVERABLES: 1. Facility Assessment Report identifying deficiencies by discipline 2. Structural Assessment Report independently verifyin g structural deficiencies from 2014 report. This report will additionally recommend any further testing or investigation. 3. Topographic Survey 260 Lindley Center Renovation - Page 4 of 8 Schematic Design (SD) Following the Facility Assessment Report deliverable, Jackola will host a review meeting with the client to discuss the deliverable. We will additionally host meetings with the owner and building stakeholders to receive input on their vision/goals for the project. We will develop schematic level site and building floor plans. We will meet with you to discuss these plans and ensure that you are agree with our general design approach. Once you agree with our design approach, we will engage engineering disciplines to develop schematic level structural drawings and to develop narrative descriptions of proposed MEP building system improvements. We will work with the GCCM to receive pricing and constructability feedback. At the end of this phase, the site plan and building floor plans should be finalized. MEETINGS: 1. Assessment Report Review Meeting 2. Stakeholder Meetings – up to (3) virtual or in person 3. Site Plan and Architectural Plan Review Meetings 4. GCCM review meetings DELIVERABLES: 1. Schematic Level Site Plan 2. Architectural Schematic Level Floor Plan 3. Hand Drawn Exterior Site Rendering 4. Schematic Level Structural Drawings 5. Narrative descriptions of MEP system upgrades Design Development (DD) Jackola will host a review meeting with the client to discuss comments to the SD level drawings. Following this meeting, Jackola will incorporate client comments and produce a DD level set of drawings. We will continue to work with the GCCM to receive pricing and constructability input. At the end of this phase, finishes and colors should be selected. The building HVAC system should be selected. MEETINGS: 1. SD Review Meeting 2. GCCM review meeting DELIVERABLES: 1. Architectural Drawings 2. Civil/Site Drawings 3. Structural Drawings 4. Mechanical Drawings 5. Plumbing Drawings 6. Electrical Drawings 7. Specification Table of Contents Construction Documents (CD) 50% CD Jackola will host a review meeting with the client to discuss comments to the DD level drawings. Following this meeting, Jackola will incorporate client comments and produce a 50% CD level set of drawings. Permit 261 Lindley Center Renovation - Page 5 of 8 Jackola will host a review meeting with the client to discuss comments to the 50% CD level drawings. Following this meeting, Jackola will incorporate client comments and produce a Permit level set of drawings. These drawings will be submitted to the City of Bozeman. A drainage report and structural calculations will also be submitted to the City. All drawings will be stamped by a licensed professional in the associ ated discipline. Permit comments will be addressed in order to receive a building permit. Bid All AHJ comments will be incorporated and a final bid set of drawings will be provided. MEETINGS: 1. DD Review Meeting 2. 50% CD Review Meeting 3. Permit Drawing Review Meeting DELIVERABLES: 1. Architectural Drawings 2. Civil/Site Drawings 1. Landscape Drawings 2. Structural Drawings 3. Mechanical Drawings 4. Plumbing Drawings 5. Electrical Drawings 6. Specification 7. Structural Calculation Package 8. Drainage Report Construction Administration (CA) Jackola will provide CA services including: 1. Jackola will assemble bidding documents and assist during the bidding process by reviewing substitution requests and answering questions regarding the construction documents. Addendums will be issued if required. 2. Attendance at bid opening, including debrief and strategy meeting. 3. Review and reply of subsequent contractor RFI, Submittals, and Substitution Requests. 4. Review and recommendation of all contractor Pay Apps 5. Pre-Construction meeting with minutes. 6. Attend AOC meetings with meeting minutes. These meetings will be attended by project manager and architect only. Meetings are anticipated bi-weekly with a (4) month construction period for eight (8) total meetings. 7. Punch list 8. Record Drawings (pdf) 9. Site Observations – the following site visits are included. Site observation reports will be provided following each visit: o Architectural – (4) total – (2) progress site visit s, Rough-in, punchlist o Civil – (2) total – (2) progress site visits o Structural – (2) total – (2) site visits to observe framing/structural details o Mechanical/Plumbing - (2) total – rough-in, punchlist o Electrical – (2) total – rough in, punchlist CA costs assume construction will be completed by end of 2026. DELIVERABLES Deliverables include 24x36 plan sheets of the items listed in the work scope for each discipline above. Project specification will be 8 ½ X 11 written specification. All deliverables will be electronic .pdf files. BIM files will not be provided. 262 Lindley Center Renovation - Page 6 of 8 MEETINGS AND SITE VISITS Meetings and site visits are outlined in the work scope for each discipline above. SCHEDULE Anticipated project milestone schedule is listed below. A final project schedule will be established following the project kickoff meeting. Duration Finish Project Kickoff - May 4, 2026 Pre-Investigation and Assessment 15 days May 26 SD 20 days June 24 Owner Review 10 days July 9 DD 15 days July 30 Owner Review 10 days August 13 50% CD 15 days September 3 Owner Review 10 days September 18 Permit 15 days October 9 City Review 6 weeks Late November 2026 Bid Drawings - December 2026 FEES Our Total Fee for the work scope outlined herein is $195,960.00 and includes reimbursable items outlined in Exhibit 2. A breakdown of the fee is included as Exhibit 1. Upon acceptance of this proposal Jackola will prepare a Letter of Engagement for execution by both parties. This proposal is good for 60 days from the date first above written. Date: 3/10/2026 By: Tom Sawyer, PE, SE Title: Project Manager Attachments: Exhibit 1 Exhibit 2 FINISH DATES WILL BEESTABLISHEDFOLLOWING PROJECTKICKOFF 263 Exhibit 1 Lindley Center Renovation - Page 7 of 8 Note: Prices include a 5% increase over the original proposal to account for cost escalation. Cost Breakdown Pre-Project Inspection and Assessment Arch + Project Management $12,553 Structural $7,098 Mech/Plumb $4,641 Elec $3,591 Civil $2,783 Survey $5,198 $35,864 SD Arch + Project Management $6,689 Structural $3,140 Mech/Plumb $2,321 Elec $1,796 Civil $8,159 $22,105 DD Arch + Project Management $13,372 Structural $6,279 Mech/Plumb $4,641 Elec $3,591 Civil $10,878 Landscape $3,675 $42,436 CD Arch + Project Management $15,692 Structural $8,867 Mech/Plumb $6,484 Elec $4,489 Civil $8,159 Landscape $6,164 $49,855 Total Design Cost $150,260 CA Oversight and Execution of Construction Contract $4,725 Submittal, Substitution, RFI Review $11,760 OAC Meetings $3,701 Site Observations and Reports $10,579 As Built Drawings $6,300 Bidding Assistance $8,635 $45,700 Total Cost (Design + CA) $195,960 264 Exhibit 2 Lindley Center Renovation - Page 8 of 8 Reimbursable Expenses Schedule Total Fee listed in the Letter of Engagement includes the following cost items that CONSULTANT may incur on the project. Any additional services done on a Time and Material basis will be assessed with a 4.8% Standard Reimbursable Rate Charge (SRRC) to cover the following cost items that CONSULTANT may incur on the project. 8.5x11 B&WCopies 8.5x14 B&WCopies 11x17 B&WCopies 12x18 B&WCopies 8.5x11 Color Copies 8.5x14 Color Copies 11x17 Color Copies 12x18 Color Copies Full Bleed Color Heavy Paper Covers Clear Covers 3 Hole Binding Spiral Binding Plan Edge Binding Wide Format B&W or Color Prints and Copies • 36x48 • 30x42 • 24x36 • 18x24 • Full Bleed Color Wide Format B&W or Color Reproducible Prints and Copies • Vellum 24x36 • Mylar 30x42 • Mylar 24x36 • Mylar 18x24 • Full Bleed Color Office Administration Rendering & Artistic Supplies Interior Samples Sample Board Supplies United States Postal Service Charges Fed-Ex & Shipping Charges Long Distance Charges Mileage Charges (maximum 80 mile radius) Markups for Fees, Incidentals and Sub-Consultants Flagging Materials Survey Monument Survey Lathe Survey Rebar Survey Hubs (Note: Any fees, incidental costs and sub-consultants fees will be passed through to CLIENT; however, the markups normally associated with such transactions are included in the Total Fee.) 265 Memorandum REPORT TO:City Commission FROM:Katie Canter, Contracts and Sports Parks Coordinator Mitch Overton, Parks and Recreation Director SUBJECT:Authorize the City Manager to Sign a Professional Services Agreement with Advantage Spraying Services, Inc. for Snow Removal Services in the Parks and Trails District MEETING DATE:July 21, 2026 AGENDA ITEM TYPE:Agreement - Vendor/Contract RECOMMENDATION:Authorize the City Manager to Sign a Professional Services Agreement with Advantage Spraying Services, Inc. for Snow Removal Services in the Parks and Trails District. STRATEGIC PLAN:6.5 Parks, Trails & Open Space: Support the maintenance and expansion of an interconnected system of parks, trails and open spaces. BACKGROUND: To address the maintenance required in the Parks and Trails District, the City has established contracts for professional services with qualified contractors. In September 2021, the Parks and Recreation Department conducted a request for proposals process to acquire professional services required to complete snow removal and additional maintenance services on parks in the District. The Professional Services Contract for landscape maintenance services established in 2021 expires in 2026. In May 2026 the Parks and Recreation Department conducted a request for proposals process to acquire professional services perform snow removal services to sidewalks and parking lots within the District to begin winter 2026. After careful evaluation and review, Advantage Spraying Services, Inc. was determined to be the most qualified, responsive and responsible vendor for the Parks and Trails District Snow Removal Services Zone 1 contract. Advantage Spraying Services, Inc. has demonstrated capacity to accomplish snow removal services as requested and has a comprehensive understanding of City Parks being maintained. Selected contractor Advantage Spraying Services, Inc. will complete the services as defined in attached Exhibit A: Zone 1 Scope of Services and Exhibit B: Advantage Spraying Services, Inc. Snow Removal Rates beginning in winter of 2026. The Agreement is effective for one year after the date of execution with the option to extend the agreement an additional year upon mutual agreement. 266 UNRESOLVED ISSUES:None. ALTERNATIVES:As suggested by the City Commission. FISCAL EFFECTS:Funding is allocated for this maintenance within the FY27 and FY28 budget in the Parks and Trails District Maintenance Fund account. Attachments: Exhibit A: Zone 1 Scope of Services.pdf Exhibit B: Advantage Spraying Services Inc. Snow Removal Rates.pdf PSA Advantage Spraying Services Inc. Snow Removal Services.pdf Report compiled on: July 8, 2026 267 The City of Bozeman Parks and Recreation Department is in need of a contractor to remove snow and ice from sidewalks and park areas within the Bozeman city limits identified in the Appendix C. Snow removal will be performed on an “as needed” schedule during 2026-2027 winter season. The scope of services includes: 1.The Contractor is to perform snow and ice removal of sidewalks, pedestrian crossings any other areas as determined by the Parks Superintendent. Services shall be completed through various methods such as, but not limited to: chipping, ice melts, blowing, shoveling, plowing, etc. 2.The Contractor shall use equipment no wider than the sidewalk which is being cleaned. Equipment shall be of a weight that will not damage the sidewalk or adjacent property. The contractor shall maintain his operation within the public right of way. 3.Snow and ice must be completely removed from the sidewalks before payment will be made to the contractor and shall not be moved into streets. If salt or other chemicals are used to loosen ice, only the minimum amount of salt or other chemicals will be used to adequately perform this function and the contractor shall refrain from depositing any resulting salt/ice mixture onto private property, grassed, or landscaped area. 4.Snow and ice removal shall commence within twenty-four (24) hours after a snow event has occurred. The Contractor may be required to work on any day of the week, including holidays. Other related services may be requested on an as needed basis. Locations may be added or removed from the contract at any time. The final scope of services may change and will be contained in a professional services agreement to be executed by the City and the selected Contractor. III.SCOPE OF SERVICES Exhibit A 268 PARK NAME LOCATION:Snow Removal Per Park Under 4" Snow Removal Per Park 4"+ LOYAL GARDENS SUB PARK S. Cottonwood Rd. to Golden Gate Ave. &South of Loyal Dr.$$ VALLEY WEST PARK Durston Rd. to Babcock St. & Kimball Ave. to N. Cottonwood Rd. $$ NORTON EAST RANCH SUB PARK Babcock St. to Fallon & S. Eldorado to Waterlily Dr.$$ BAXTER MEADOWS (Master) PH. 1-3 Kimberwicke St. to Baxter &Vaquero Pkwy. to Harper Puckett Rd.$$ BAXTER MEADOWS PH. 1 PARK 1-2 Equestrian Ln. to Baxter Ln. & Vaquero Pkwy. To Ferguson Ave.$$ FLANDERS CREEK SUBDIVISION PARK 1-3 Annie St. to Durston Rd. & Flanders Creek Ave. to Twin Lakes Ave.$$ TRADITIONS SUB PHASE 1 PARK 1-4 & 8 Sherwood Way to Glenwood Dr. & Flanders Creek Ave to Abigail Ln.$$ WESTBROOK SUB PUBLIC PARK 1-2 Annie St. to Durston Rd. & Rosa Way to Loxley Dr.$$ SUNDANCE PUBLIC PARK Caballo Ave. to Davis Ln. & Galloway St. to Baxter Ln.$$ BOULDER CREEK PARK 1- 2 Glenellen Dr. to Annie St. & Laurel Pkwy. To Abigail Ln.$$ ANNIE ST & COTTAGE PARK LN Small L shaped property corner of Annie St. & Cottage Park Ln.$$ COTTAGE PARK LN Small property Cottage Park Ln. and Hanson St.$$ ALDER CREEK South 11th Ave at Alder Creek Dr.$$ VALLEY COMMONS Fallon St. & Ginella Way (Vacant land)$$ ML ALDERSON W Garfield St and S Stafford Ave $$ URBAN FARMS PHASE 1 S Eldorado Ave $$ $ $ Appendix C: Scope of Services - Zone 1 (SNOW REMOVAL) Additional Comments Parks Ice Melt (per lb spread) Service Additional Comments Additional Services: Fixed Rates Shoveling (per hour) Exhibit A Exhibit A 269 Appendix A NONDISCRIMINATION AND EQUAL PAY AFFIRMATION �\.lc-..�%<L \.d>,5'\ b---C� (name of entity submitting) hereby affirms it will not discriminate on the basis of race, color, religion, creed, sex, age, marital status, national origin, or because of actual or perceived sexual orientation, gender identity or disability and acknowledges and understands the eventual contract will contain a provision prohibiting discrimination as described above and this prohibition on discrimination shall apply to the hiring and treatments or proposer's employees and to all subcontracts. }\}>__,)�� \ .cr,.J)..\.,..c...� (name of entity submitting) hereby affirms it will abide by the Equal Pay Act of 1963 and Section 39-3-104, MCA (the Montana Equal Pay Act). [Name and title of person authorized to sign on behalf of Respondent] Exhibit A 270 ML Alderson Park - W Garfield St and S Cottonwood Rd (With Additional Area South of Buildings) Snow removal under 4": $218.75 Snow removal over 4": $312.50 ML Alderson Park - W Garfield St and S Cottonwood Rd (Without Additional Area South of Buildings) Snow removal under 4": $125.00 Snow removal over 4": $187.50 Urban Farms Phase 1 - Eldorado Ave Snow removal under 4": $62.50 Snow removal over 4": $93.75 Exhibit B 271 Professional Services Agreement for Advantage Spraying Services Inc. Snow Removal Services FY 2027-FY 2028 Page 1 of 13 PROFESSIONAL SERVICES AGREEMENT THIS AGREEMENT is made and entered into this 21st day of July, 2026 (“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, Advantage Spraying Services Inc., 144 Wildcat Way, Bozeman MT 59718, hereinafter referred to as “Contractor.” 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 to this Agreement 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 21st day of July, 2027, 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 attached hereto as Exhibit A. For conflicts between this Agreement and the Scope of Services, unless specifically provided otherwise, the Agreement governs. 4. Payment: City agrees to pay Contractor the amount specified in Exhibit B. 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 City and will become an additional charge over and above the amount listed in the Scope of Services. City must agree in writing upon any additional charges. 272 Professional Services Agreement for Advantage Spraying Services Inc. Snow Removal Services FY 2027-FY 2028 Page 2 of 13 5. Contractor’s Representations: To induce City to enter into this Agreement, Contractor represents and warrants: 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 has the experience and ability to perform the services required by this Agreement. c. Contractor will perform the services in a professional, competent, and timely manner and with diligence and skill. d. Contractor has the power to enter into and perform this Agreement. e. Contractor’s performance of this Agreement must 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. Contractor agrees City will not determine or exercise control as to general procedures or formats necessary to have these services meet this warranty. 6. Independent Contractor Status: The Parties agree that Contractor is an independent contractor for purposes of this Agreement and is not to be considered an employee of City for any purpose. Contractor is not subject to the terms and provisions of City’s personnel policies handbook and is not considered a City employee for workers’ compensation or any other purpose. Contractor is not authorized to represent City or otherwise bind City in any dealings between Contractor and any third Parties. Contractor must comply with the applicable requirements of the Workers’ Compensation Act, Title 39, Chapter 71, Montana Code Annotated (MCA), and the Occupational Disease Act of Montana, Title 39, Chapter 71, MCA. Contractor must maintain workers’ compensation coverage for all members and employees of Contractor’s business, except for those members who are exempted by law. Contractor must furnish City with copies showing one of the following: (1) a binder for workers’ compensation coverage by an insurer licensed and authorized to provide workers’ 273 Professional Services Agreement for Advantage Spraying Services Inc. Snow Removal Services FY 2027-FY 2028 Page 3 of 13 compensation insurance in the State of Montana; or (2) proof of exemption from workers’ compensation granted by law for independent contractors. 8. Labor Relations: If any labor problems or disputes arise during this Agreement, which cause any services to cease for any period of time, Contractor agrees to take immediate steps in its discretion, at its own expense and without expectation of reimbursement from City, to alleviate or resolve all such labor problems or disputes. Contractor bears all costs of any related legal action. Contractor must provide immediate relief to City so as to permit the services to continue at no additional cost to City. Contractor acknowledges and agrees that City will not be a Party to any labor disputes between Contractor and any subcontractors or third Parties. 9. Indemnity: 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 Contractor; or (ii) any negligent, reckless, or intentional misconduct of any of 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 Contractor or Contractor’s agents or employees. For any labor problems or disputes or any delays or stoppages of work associated with such problems or disputes, Contractor must 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. Contractor’s obligations in this Section must 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 274 Professional Services Agreement for Advantage Spraying Services Inc. Snow Removal Services FY 2027-FY 2028 Page 4 of 13 rights of the City as indemnitee(s) which would otherwise exist as to such indemnitee(s). Contractor’s indemnity under this Section must 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 Contractor to assert its right to defense or indemnification under this Agreement or under Contractor’s applicable insurance policies required below, the City must 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 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. These obligations must survive termination of this Agreement and the services performed hereunder. 10. Insurance: In addition to and independent from Contractor’s indemnity obligations under Section 9, Contractor must, 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 Contractor in this Section. The insurance coverage must not contain any exclusion for liabilities specifically assumed by Contractor in Section 9. The insurance must be occurrence-based, and cover and apply to all claims, demands, suits, damages, losses, and expenses that may be asserted or claimed against, recovered from, or suffered by City without limit and without regard to the cause. Contractor must furnish to 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 claim; $2,000,000 per occurrence; • Commercial General Liability - $1,000,000 per claim; $2,000,000 per occurrence; • Automobile Liability - $1,000,000 per property damage claim and $1,000,000 per bodily injury claim; $2,000,000 per accident; and 275 Professional Services Agreement for Advantage Spraying Services Inc. Snow Removal Services FY 2027-FY 2028 Page 5 of 13 • Professional Liability - $1,000,000 per claim; $2,000,000 per occurrence. The above amounts must be exclusive of defense costs. City must be endorsed as an additional 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 approved by City and must include no less than a thirty (30) day notice of cancellation or non- renewal. Contractor must 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. City must approve all insurance coverage and endorsements prior to Contractor commencing work. Alternative: Contractor must provide City a certificate of insurance prior to commencing work. City must approve the limits shown on the certificate prior to commencing work. City’s approval of the limits does not relieve Contractor of Contractor’s obligation to ensure the insurance meets the requirements. 11. Waiver of Claims: Contractor also waives any and all claims and recourse against 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. 12. Termination for Contractor’s Fault: a. If Contractor refuses or fails to timely do the work, or any part thereof, or fails to perform any of its obligations under this Agreement, or otherwise breaches any terms or conditions of this Agreement, City may, by written notice, terminate this Agreement and Contractor’s right to proceed with all or any part of the work (“Termination Notice Due to Contractor’s Fault”). 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 12, Contractor must be entitled to payment only for those services Contractor actually rendered. c. Any termination provided for by this Section 12 must be in addition to any other remedies to which City may be entitled under the law or at equity. d. In the event of termination under this Section 12, Contractor must, under no circumstances, be entitled to claim or recover consequential, special, punitive, lost business 276 Professional Services Agreement for Advantage Spraying Services Inc. Snow Removal Services FY 2027-FY 2028 Page 6 of 13 opportunity, lost productivity, field office overhead, general conditions costs, or lost profits damages of any nature arising, or claimed to have arisen, as a result of the termination. 13. Termination for City’s Convenience: a. Should conditions arise which, in the sole opinion and discretion of City, make it advisable to City to cease performance under this Agreement, City may terminate this Agreement by written notice to Contractor (“Notice of Termination for City’s Convenience”). The termination must be effective in the manner specified in the Notice of Termination for City’s Convenience and must be without prejudice to any claims that City may otherwise have against Contractor. b. Upon receipt of the Notice of Termination for City’s Convenience, unless otherwise directed in the Notice, Contractor must 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 must immediately cancel all existing orders or contracts upon terms satisfactory to City. Contractor must do only such work as may be necessary to preserve, protect, and maintain work already completed or immediately in progress. c. In the event of a termination pursuant to this Section 13, 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 13(c) is the sole compensation due to Contractor for its performance of this Agreement. Contractor must, under no circumstances, be entitled to claim or recover consequential, special, punitive, lost business opportunity, lost productivity, field office overhead, general conditions costs, or lost profits damages of any nature arising, or claimed to have arisen, as a result of the termination. 14. Intellectual Property and Ownership of Work Product: a. Title and Ownership Rights. City retains title to and all ownership rights in all Work Product. “Work Product” includes all materials, tangible or not, created in whatever medium pursuant to this Agreement, including but not limited to publications, promotional or educational materials, reports, manuals, specifications, drawings and sketches, computer programs, software and databases, schematics, marks, logos, graphic designs, notes, data and content, including but not limited to multimedia or images (graphics, audio, and video), matters and any combinations of, and all forms of intellectual property. b. Ownership of Work Product. Contractor must execute any documents or take any other actions as may reasonably be necessary, or as City may reasonably request, to 277 Professional Services Agreement for Advantage Spraying Services Inc. Snow Removal Services FY 2027-FY 2028 Page 7 of 13 perfect City’s ownership of any Work Product. Contractor must, at no cost to City, deliver to City, upon City request during the term of this Agreement or at its expiration or termination, a current copy of all Work Product in the form and on the media in use as of the date of City’s request, or such expiration or termination. c. Return of Physical Property. Upon expiration or termination of this Agreement, Contractor agrees to return to City all City property, including but not limited to any and all physical items such as documentation, records, and equipment, which is in Contractor’s possession or under Contractor’s control. Contractor must submit to City a detailed account of all of City’s property in its possession or under Contractor’s control. Contractor must return City’s property in a method acceptable to City within ten (10) working days. Unless otherwise mutually agreed upon by the Parties, at no time must any of City’s property be retained by Contractor upon expiration or termination of this Agreement. d. Return of Data. Upon expiration or termination of this Agreement, Contractor agrees to return to City all City data. Contractor must submit to City a detailed account of all of City’s data in its possession or under Contractor’s control. Contractor must return City’s data in a format acceptable to City within ten (10) working days. At no time must any data or processes that either belong to or are intended for use of City or its officers, agents, or employees, be copied, disclosed, or retained by Contractor upon expiration or termination of this Agreement. e. Destruction of Data. If requested by City, Contractor agrees to destroy all of City’s data in its possession. When requested by City to destroy City’s data, Contractor agrees to permanently delete the data and ensure that it is not recoverable, in accordance with National Institute of Standards and Technology (NIST) SP 800-88 “Media Sanitation Guidelines.” f. Certification. In all cases, Contractor will certify that all of City’s information processed during the performance of the services will be completely purged from all physical and electronic data storage with no output to be retained by Contractor at the time the work is completed, the Agreement is terminated, or upon written request of City. 15. 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 must 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 must 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, 278 Professional Services Agreement for Advantage Spraying Services Inc. Snow Removal Services FY 2027-FY 2028 Page 8 of 13 within thirty (30) days of the facts and circumstances giving rise to the claim. In the event Contractor fails to provide such notice, Contractor must waive all rights to assert such claim. 16. Representatives and Notices: a. City’s Representative: City’s Representative for the purpose of this Agreement must be Katherine Canter or such other individual as City must designate in writing. Whenever approval or authorization from or communication or submission to City is required by this Agreement, such communication or submission must be directed to City’s Representative and approvals or authorizations must be issued only by such Representative; provided, however, that in exigent circumstances when City’s Representative is not available, Contractor may direct its communication or submission to other designated City personnel or agents as designated by City in writing and may receive approvals or authorization from such persons. b. Contractor’s Representative: Contractor’s Representative for the purpose of this Agreement must be Patrick Doran or such other individual as Contractor must designate in writing. Whenever direction to or communication with Contractor is required by this Agreement, such direction or communication must 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 must be in writing and must be provided to the Representatives named in this Section. Notices must 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. 17. Permits: Contractor must 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. 18. Laws and Regulations: Contractor must 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 279 Professional Services Agreement for Advantage Spraying Services Inc. Snow Removal Services FY 2027-FY 2028 Page 9 of 13 State building and electrical codes, the Americans with Disabilities Act, and all non-discrimination, affirmative action, and utilization of minority and small business statutes and regulations. 20. Generative Artificial Intelligence (AI): Contractor must inform the City’s representative of its intention to utilize Generative AI to fulfill the deliverables or services detailed in the Scope of Services. City’s representative may, in their discretion, permit or deny Contractor’s use of Generative AI. If Contractor is permitted to use Generative AI, Contractor agrees to review any work created by Generative AI for accuracy, bias, and copyright infringement. Contractor agrees it will never submit any confidential or personal identifiable information acquired through this Agreement into a Generative AI system. For the purposes of this section, Generative AI is defined as a deep learning model that can generate high quality content such as stories or writings, images, voice replication and music. 21. Nondiscrimination and Equal Pay: Contractor agrees that all hiring by Contractor of persons performing this Agreement must be on the basis of merit and qualifications. Contractor must have a policy to provide equal employment opportunity in accordance with all applicable state and federal anti-discrimination laws, regulations, and contracts. Contractor cannot 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. Contractor is subject to and must 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 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 must require these nondiscrimination terms of its subcontractors providing services under this Agreement. 22. Intoxicants; DOT Drug and Alcohol Regulations/Safety and Training: Contractor must not permit or suffer the introduction or use of any intoxicants, including alcohol or illegal drugs, 280 Professional Services Agreement for Advantage Spraying Services Inc. Snow Removal Services FY 2027-FY 2028 Page 10 of 13 by any employee or agent engaged in services to 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 must 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 must have the right to request proof of such compliance and Contractor must be obligated to furnish such proof. Contractor must be responsible for instructing and training Contractor's employees and agents in proper and specified work methods and procedures. Contractor must provide continuous inspection and supervision of the work performed. Contractor is responsible for instructing its employees and agents in safe work practices. 23. Modification and Assignability: This Agreement may not be enlarged, modified or altered except by written agreement signed by both Parties. Contractor may not subcontract or assign Contractor’s rights, including the right to compensation or duties arising hereunder, without the prior written consent of City. Any subcontractor or assignee will be bound by all of the terms and conditions of this Agreement. 24. Reports/Accountability/Public Information: Contractor agrees to develop and/or provide documentation as requested by City demonstrating Contractor’s compliance with the requirements of this Agreement. Contractor must allow City, its auditors, and other persons authorized by 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. Contractor cannot issue any statements, releases or information for public dissemination without prior approval of City. 25. 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. 26. 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 in this Agreement, the prevailing Party or the Party giving notice is entitled to reasonable 281 Professional Services Agreement for Advantage Spraying Services Inc. Snow Removal Services FY 2027-FY 2028 Page 11 of 13 attorney's fees and costs, including fees, salary, and costs of in-house counsel including the City Attorney’s Office staff. 27. Taxes: Contractor is obligated to pay all taxes of any kind or nature and make all appropriate employee withholdings. 28. Dispute Resolution: a. Any claim, controversy, or dispute between the Parties, their agents, employees, or representatives must be resolved first by negotiation between senior-level personnel from each Party duly authorized to negotiate settlement agreements. Upon mutual agreement of the Parties, the Parties may invite an independent, disinterested mediator to assist in the negotiated settlement discussions. The Parties must attempt to resolve by negotiation within 90 days after the claim, controversy, or dispute has arisen. b. If the Parties are unable to resolve the dispute pursuant to subsection (a), then such dispute may only be resolved in a court of competent jurisdiction in compliance with the Applicable Law provisions of this Agreement. In such a case, all court actions must be commenced within 1 year after the settlement procedure in subsection (a) has been exhausted. 29. Survival: Contractor’s indemnification must survive the termination or expiration of this Agreement for the maximum period allowed under applicable law. 30. Headings: The headings used in this Agreement are for convenience only and are not to be construed as a part of the Agreement or as a limitation on the scope of the particular paragraphs to which they refer. 31. Severability: If any portion of this Agreement is held to be void or unenforceable, all other provisions of this Agreement must remain in effect. 32. Applicable Law: The Parties agree that this Agreement is governed by the laws of the State of Montana. 33. Binding Effect: This Agreement is binding upon and inures to the benefit of the heirs, legal representatives, successors, and assigns of the Parties. 34. No Third-Party Beneficiary: This Agreement is for the exclusive benefit of the Parties, 282 Professional Services Agreement for Advantage Spraying Services Inc. Snow Removal Services FY 2027-FY 2028 Page 12 of 13 does not constitute a third-Party beneficiary agreement, and may not be relied upon or enforced by a third Party. 35. Counterparts: This Agreement may be executed in counterparts, which together constitute this Agreement. 36. 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 oral 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. 37. 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. 38. Extensions: This Agreement may, upon mutual agreement, be extended for a period of up to one year at a time by written agreement of the Parties. In no case, however, may this Agreement run longer than five (5) years from the effective date of this Agreement. **** END OF AGREEMENT EXCEPT FOR SIGNATURES **** 283 Professional Services Agreement for Advantage Spraying Services Inc. Snow Removal Services FY 2027-FY 2028 Page 13 of 13 IN WITNESS WHEREOF, the Parties hereto have executed this Agreement the day and year first above written or as recorded in an electronic signature. CITY OF BOZEMAN, MONTANA ____________________________________ CONTRACTOR (Type Name Above) By________________________________ By__________________________________ Chuck Winn, City Manager Print Name: ___________________________ Print Title: ____________________________ APPROVED AS TO FORM: By_______________________________ Greg Sullivan, Bozeman City Attorney 284 Memorandum REPORT TO:City Commission FROM:Katie Canter, Contracts and Sports Parks Coordinator Mitch Overton, Parks and Recreation Director SUBJECT:Authorize the City Manager to Sign a Professional Services Agreement with Clean Slate Group LLC for Snow Removal Services in the Parks and Trails District MEETING DATE:July 21, 2026 AGENDA ITEM TYPE:Agreement - Vendor/Contract RECOMMENDATION:Authorize the City Manager to Sign a Professional Services Agreement with Clean Slate Group LLC for Snow Removal Services in the Parks and Trails District. STRATEGIC PLAN:6.5 Parks, Trails & Open Space: Support the maintenance and expansion of an interconnected system of parks, trails and open spaces. BACKGROUND: To address the maintenance required in the Parks and Trails District, the City has established contracts for professional services with qualified contractors. In September 2021, the Parks and Recreation Department conducted a request for proposals process to acquire professional services required to complete snow removal and additional maintenance services on parks in the District. The Professional Services Contract for landscape maintenance services established in 2021 expires in 2026. In May 2026 the Parks and Recreation Department conducted a request for proposals process to acquire professional services perform snow removal services to sidewalks and parking lots within the District to begin winter 2026. After careful evaluation and review, Clean Slate Group, LLC was determined to be the most qualified vendor for the Parks and Trails District Snow Removal Services Zone 2 contract. Clean Slate Group, LLC has demonstrated capacity to accomplish snow removal services as requested and has a comprehensive understanding of City Parks being maintained. Selected contractor Clean Slate Group, LLC will complete the services as defined in attached Exhibit A: Zone 2 Scope of Services and Exhibit B: Clean Slate Group, LLC Snow Removal Rates beginning in winter of 2026. The Agreement is effective for one year after the date of execution with the option to extend the agreement an additional year upon mutual agreement. UNRESOLVED ISSUES:None. 285 ALTERNATIVES:As suggested by the City Commission. FISCAL EFFECTS:Funding is allocated for this maintenance within the FY27 and FY28 budget in the Parks and Trails District Maintenance Fund account. Attachments: Exhibit A: Zone 2 Scope of Services.pdf Exhibit B: Clean Slate Group LLC Snow Removal Rates.pdf PSA Clean Slate Group LLC Snow Removal Services.pdf Report compiled on: July 8, 2026 286 The City of Bozeman Parks and Recreation Department is in need of a contractor to remove snow and ice from sidewalks and park areas within the Bozeman city limits identified in the Appendix C. Snow removal will be performed on an “as needed” schedule during 2026-2027 winter season. The scope of services includes: 1.The Contractor is to perform snow and ice removal of sidewalks, pedestrian crossings any other areas as determined by the Parks Superintendent. Services shall be completed through various methods such as, but not limited to: chipping, ice melts, blowing, shoveling, plowing, etc. 2.The Contractor shall use equipment no wider than the sidewalk which is being cleaned. Equipment shall be of a weight that will not damage the sidewalk or adjacent property. The contractor shall maintain his operation within the public right of way. 3.Snow and ice must be completely removed from the sidewalks before payment will be made to the contractor and shall not be moved into streets. If salt or other chemicals are used to loosen ice, only the minimum amount of salt or other chemicals will be used to adequately perform this function and the contractor shall refrain from depositing any resulting salt/ice mixture onto private property, grassed, or landscaped area. 4.Snow and ice removal shall commence within twenty-four (24) hours after a snow event has occurred. The Contractor may be required to work on any day of the week, including holidays. Other related services may be requested on an as needed basis. Locations may be added or removed from the contract at any time. The final scope of services may change and will be contained in a professional services agreement to be executed by the City and the selected Contractor. III.SCOPE OF SERVICES Exhibit A 287 PARK NAME LOCATION: Snow Removal Per Park Under 4" Snow Removal Per Park 4"+ STORY MILL COMMUNITY CENTER + South Parking Lot 600 Bridger Drive $$ STORY MILL COMMUNITY PARK - North Parking Lot 698 Bridger Drive $$ HARVEST CREEK PARKS 1- 4 W. Oak St. to Durston Rd. & Springbrook Ave. to to N. 27th Ave.$$ WEST WINDS PARK Oak St. to Baxter Ln. & Davis Ln. to 27th Ave.$$ CATTAIL CREEK PARKS A&B Park A: Blackbird Dr. to Warbler Way & South to Cattail St. Park B: Catron St. to Cattail St. & Blackbird Dr. to Warbler Way.$$ CATTAIL CREEK PARK PH. 3 Catron St. to Catamount & Blackbird Dr. to Warbler Way.$$ CATTAIL LAKE PARK East of Davis Ln. on Troutmeadow Rd. & Blackbird Dr.$$ BAXTER SQUARE PARK Corner of Sartain St. and Renee Way & Baxter Ln. to Sartain St.$$ OAK MEADOWS PARK Crabapple Dr. to Juniper St. & N. 14th Ave to N. 12th Ave. $$ WALTON HOMESTEAD PARK Corner of 15th Ave. and Juniper St.$$ SOROPTIMIST PARK E Main St & St Rouse Ave $$ I-HO POMEROY PEACE PARK N Black Ave $$ $ $ Appendix D: Scope of Services - Zone 2 (SNOW REMOVAL) Additional Comments Parks Ice Melt (per lb spread) Service Additional Comments Additional Services: Fixed Rates Shoveling (per hour) Exhibit A 288 Nondiscrimination and Equal Pay Affirmation CLEAN SLATE GROUP hereby affirms it will not discriminate on the basis of race, color, religion, creed, sex, age, marital status, national origin, or because of actual or perceived sexual orientation, gender identity or disability and acknowledges and understands the eventual contract will contain a provision prohibiting discrimination as described above and this prohibition on discrimination shall apply to the hiring and treatments or proposer’s employees and to all subcontracts. CLEAN SLATE GROUP hereby affirms it will abide by the Equal Pay Act of 1963 and Section 39-3-104, MCA (the Montana Equal Pay Act). Scott Aamodt, CSG Manager [Name and title of person authorized to sign on behalf of Respondent] Exhibit A 289 Soroptomist Park Main St & S Rouse Ave $100 $140 Zone 2 (SNOW REMOVAL) PARK NAME LOCATION Snow Removal Per Park Under 4” Snow removal Per Park 4”+ Additional Comments Parks STORY MILL COMMUNITY CENTER + South Parking Lot 600 Bridger Drive $330 $495 L of perimeter = 1640 SqFt =56888 (1094L*52W) STORY MILL COMMUNITY PARK - North Parking Lot 698 Bridger Drive $240 $375 L of perimeter = 1497 Sqft = 742L x 58W = 43,036 HARVEST CREEK PARKS 1-4 W. Oak St. to Durston Rd. & Springbrook Ave. to N. 27th Ave $205 $310 L = 3900’ W=5’ WEST WINDS PARK Oak St. to Baxter Ln. & Davis Ln. to 27th Ave $425 $625 L = 9523’ W=5.5’ CATTAIL CREEK PARKS A&B Park A: Blackbird Dr. to Warbler Way & South to Cattail St. Park B: Catron St. to Cattail St. & Blackbird Dr. to Warbler Way $125 $190 L Park A = 1178’ L Park B = 613’ Total L = 1791’ W=5’ CATTAIL CREEK PARK PH. 3 Catron St. to Catamount & Blackbird Dr. to Warbler Way $110 $165 L = 1533’ W=5’ CATTAIL LAKE PARK East of Davis Ln. on Troutmeadow Rd. & Blackbird Dr. $175 $260 L = 2272’ W=5’ BAXTER SQUARE PARK Corner of Sartain St. and Renee Way & Baxter Ln. to Sartain St. $100 $150 L = 1273’ W=5’ OAK MEADOWS PARK Crabapple Dr. to Juniper St. & N. 14th Ave to N. 12th Ave $150 $225 L = 2254’ W=5’ WALTON HOMESTEAD PARK Corner of 15th AVe. and Juniper St $75 $110 L = 855’ W=5’ I-Ho Pomeroy Peace Park N Black Ave & E Mendenhall St $40 $60 PARK NAME LOCATION Snow Removal Per Park Under 4” Snow removal Per Park 4”+ Additional Comments 290 Additional Services: Fixed Rates Service Additional Comments Shoveling (per hours) $75/hr Ice Melt (per lb spread) $0.62/lb 291 Professional Services Agreement for Clean Slate Group LLC Snow Removal Services FY 2027-FY 2028 Page 1 of 13 PROFESSIONAL SERVICES AGREEMENT THIS AGREEMENT is made and entered into this 21st day of July, 2026 (“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, Clean Slate Group LLC., 34 Outlier Way, Bozeman, MT 59718, hereinafter referred to as “Contractor.” 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 to this Agreement 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 21st day of July, 2027, 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 attached hereto as Exhibit A. For conflicts between this Agreement and the Scope of Services, unless specifically provided otherwise, the Agreement governs. 4. Payment: City agrees to pay Contractor the amount specified in Exhibit B. 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 City and will become an additional charge over and above the amount listed in the Scope of Services. City must agree in writing upon any additional charges. 292 Professional Services Agreement for Clean Slate Group LLC Snow Removal Services FY 2027-FY 2028 Page 2 of 13 5. Contractor’s Representations: To induce City to enter into this Agreement, Contractor represents and warrants: 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 has the experience and ability to perform the services required by this Agreement. c. Contractor will perform the services in a professional, competent, and timely manner and with diligence and skill. d. Contractor has the power to enter into and perform this Agreement. e. Contractor’s performance of this Agreement must 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. Contractor agrees City will not determine or exercise control as to general procedures or formats necessary to have these services meet this warranty. 6. Independent Contractor Status: The Parties agree that Contractor is an independent contractor for purposes of this Agreement and is not to be considered an employee of City for any purpose. Contractor is not subject to the terms and provisions of City’s personnel policies handbook and is not considered a City employee for workers’ compensation or any other purpose. Contractor is not authorized to represent City or otherwise bind City in any dealings between Contractor and any third Parties. Contractor must comply with the applicable requirements of the Workers’ Compensation Act, Title 39, Chapter 71, Montana Code Annotated (MCA), and the Occupational Disease Act of Montana, Title 39, Chapter 71, MCA. Contractor must maintain workers’ compensation coverage for all members and employees of Contractor’s business, except for those members who are exempted by law. Contractor must furnish City with copies showing one of the following: (1) a binder for workers’ compensation coverage by an insurer licensed and authorized to provide workers’ 293 Professional Services Agreement for Clean Slate Group LLC Snow Removal Services FY 2027-FY 2028 Page 3 of 13 compensation insurance in the State of Montana; or (2) proof of exemption from workers’ compensation granted by law for independent contractors. 8. Labor Relations: If any labor problems or disputes arise during this Agreement, which cause any services to cease for any period of time, Contractor agrees to take immediate steps in its discretion, at its own expense and without expectation of reimbursement from City, to alleviate or resolve all such labor problems or disputes. Contractor bears all costs of any related legal action. Contractor must provide immediate relief to City so as to permit the services to continue at no additional cost to City. Contractor acknowledges and agrees that City will not be a Party to any labor disputes between Contractor and any subcontractors or third Parties. 9. Indemnity: 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 Contractor; or (ii) any negligent, reckless, or intentional misconduct of any of 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 Contractor or Contractor’s agents or employees. For any labor problems or disputes or any delays or stoppages of work associated with such problems or disputes, Contractor must 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. Contractor’s obligations in this Section must 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 294 Professional Services Agreement for Clean Slate Group LLC Snow Removal Services FY 2027-FY 2028 Page 4 of 13 rights of the City as indemnitee(s) which would otherwise exist as to such indemnitee(s). Contractor’s indemnity under this Section must 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 Contractor to assert its right to defense or indemnification under this Agreement or under Contractor’s applicable insurance policies required below, the City must 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 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. These obligations must survive termination of this Agreement and the services performed hereunder. 10. Insurance: In addition to and independent from Contractor’s indemnity obligations under Section 9, Contractor must, 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 Contractor in this Section. The insurance coverage must not contain any exclusion for liabilities specifically assumed by Contractor in Section 9. The insurance must be occurrence-based, and cover and apply to all claims, demands, suits, damages, losses, and expenses that may be asserted or claimed against, recovered from, or suffered by City without limit and without regard to the cause. Contractor must furnish to 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 claim; $2,000,000 per occurrence; • Commercial General Liability - $1,000,000 per claim; $2,000,000 per occurrence; • Automobile Liability - $1,000,000 per property damage claim and $1,000,000 per bodily injury claim; $2,000,000 per accident; and 295 Professional Services Agreement for Clean Slate Group LLC Snow Removal Services FY 2027-FY 2028 Page 5 of 13 • Professional Liability - $1,000,000 per claim; $2,000,000 per occurrence. The above amounts must be exclusive of defense costs. City must be endorsed as an additional 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 approved by City and must include no less than a thirty (30) day notice of cancellation or non- renewal. Contractor must 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. City must approve all insurance coverage and endorsements prior to Contractor commencing work. Alternative: Contractor must provide City a certificate of insurance prior to commencing work. City must approve the limits shown on the certificate prior to commencing work. City’s approval of the limits does not relieve Contractor of Contractor’s obligation to ensure the insurance meets the requirements. 11. Waiver of Claims: Contractor also waives any and all claims and recourse against 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. 12. Termination for Contractor’s Fault: a. If Contractor refuses or fails to timely do the work, or any part thereof, or fails to perform any of its obligations under this Agreement, or otherwise breaches any terms or conditions of this Agreement, City may, by written notice, terminate this Agreement and Contractor’s right to proceed with all or any part of the work (“Termination Notice Due to Contractor’s Fault”). 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 12, Contractor must be entitled to payment only for those services Contractor actually rendered. c. Any termination provided for by this Section 12 must be in addition to any other remedies to which City may be entitled under the law or at equity. d. In the event of termination under this Section 12, Contractor must, under no circumstances, be entitled to claim or recover consequential, special, punitive, lost business 296 Professional Services Agreement for Clean Slate Group LLC Snow Removal Services FY 2027-FY 2028 Page 6 of 13 opportunity, lost productivity, field office overhead, general conditions costs, or lost profits damages of any nature arising, or claimed to have arisen, as a result of the termination. 13. Termination for City’s Convenience: a. Should conditions arise which, in the sole opinion and discretion of City, make it advisable to City to cease performance under this Agreement, City may terminate this Agreement by written notice to Contractor (“Notice of Termination for City’s Convenience”). The termination must be effective in the manner specified in the Notice of Termination for City’s Convenience and must be without prejudice to any claims that City may otherwise have against Contractor. b. Upon receipt of the Notice of Termination for City’s Convenience, unless otherwise directed in the Notice, Contractor must 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 must immediately cancel all existing orders or contracts upon terms satisfactory to City. Contractor must do only such work as may be necessary to preserve, protect, and maintain work already completed or immediately in progress. c. In the event of a termination pursuant to this Section 13, 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 13(c) is the sole compensation due to Contractor for its performance of this Agreement. Contractor must, under no circumstances, be entitled to claim or recover consequential, special, punitive, lost business opportunity, lost productivity, field office overhead, general conditions costs, or lost profits damages of any nature arising, or claimed to have arisen, as a result of the termination. 14. Intellectual Property and Ownership of Work Product: a. Title and Ownership Rights. City retains title to and all ownership rights in all Work Product. “Work Product” includes all materials, tangible or not, created in whatever medium pursuant to this Agreement, including but not limited to publications, promotional or educational materials, reports, manuals, specifications, drawings and sketches, computer programs, software and databases, schematics, marks, logos, graphic designs, notes, data and content, including but not limited to multimedia or images (graphics, audio, and video), matters and any combinations of, and all forms of intellectual property. b. Ownership of Work Product. Contractor must execute any documents or take any other actions as may reasonably be necessary, or as City may reasonably request, to 297 Professional Services Agreement for Clean Slate Group LLC Snow Removal Services FY 2027-FY 2028 Page 7 of 13 perfect City’s ownership of any Work Product. Contractor must, at no cost to City, deliver to City, upon City request during the term of this Agreement or at its expiration or termination, a current copy of all Work Product in the form and on the media in use as of the date of City’s request, or such expiration or termination. c. Return of Physical Property. Upon expiration or termination of this Agreement, Contractor agrees to return to City all City property, including but not limited to any and all physical items such as documentation, records, and equipment, which is in Contractor’s possession or under Contractor’s control. Contractor must submit to City a detailed account of all of City’s property in its possession or under Contractor’s control. Contractor must return City’s property in a method acceptable to City within ten (10) working days. Unless otherwise mutually agreed upon by the Parties, at no time must any of City’s property be retained by Contractor upon expiration or termination of this Agreement. d. Return of Data. Upon expiration or termination of this Agreement, Contractor agrees to return to City all City data. Contractor must submit to City a detailed account of all of City’s data in its possession or under Contractor’s control. Contractor must return City’s data in a format acceptable to City within ten (10) working days. At no time must any data or processes that either belong to or are intended for use of City or its officers, agents, or employees, be copied, disclosed, or retained by Contractor upon expiration or termination of this Agreement. e. Destruction of Data. If requested by City, Contractor agrees to destroy all of City’s data in its possession. When requested by City to destroy City’s data, Contractor agrees to permanently delete the data and ensure that it is not recoverable, in accordance with National Institute of Standards and Technology (NIST) SP 800-88 “Media Sanitation Guidelines.” f. Certification. In all cases, Contractor will certify that all of City’s information processed during the performance of the services will be completely purged from all physical and electronic data storage with no output to be retained by Contractor at the time the work is completed, the Agreement is terminated, or upon written request of City. 15. 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 must 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 must 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, 298 Professional Services Agreement for Clean Slate Group LLC Snow Removal Services FY 2027-FY 2028 Page 8 of 13 within thirty (30) days of the facts and circumstances giving rise to the claim. In the event Contractor fails to provide such notice, Contractor must waive all rights to assert such claim. 16. Representatives and Notices: a. City’s Representative: City’s Representative for the purpose of this Agreement must be Katherine Canter or such other individual as City must designate in writing. Whenever approval or authorization from or communication or submission to City is required by this Agreement, such communication or submission must be directed to City’s Representative and approvals or authorizations must be issued only by such Representative; provided, however, that in exigent circumstances when City’s Representative is not available, Contractor may direct its communication or submission to other designated City personnel or agents as designated by City in writing and may receive approvals or authorization from such persons. b. Contractor’s Representative: Contractor’s Representative for the purpose of this Agreement must be Ben Hymas or such other individual as Contractor must designate in writing. Whenever direction to or communication with Contractor is required by this Agreement, such direction or communication must 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 must be in writing and must be provided to the Representatives named in this Section. Notices must 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. 17. Permits: Contractor must 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. 18. Laws and Regulations: Contractor must 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 299 Professional Services Agreement for Clean Slate Group LLC Snow Removal Services FY 2027-FY 2028 Page 9 of 13 State building and electrical codes, the Americans with Disabilities Act, and all non-discrimination, affirmative action, and utilization of minority and small business statutes and regulations. 20. Generative Artificial Intelligence (AI): Contractor must inform the City’s representative of its intention to utilize Generative AI to fulfill the deliverables or services detailed in the Scope of Services. City’s representative may, in their discretion, permit or deny Contractor’s use of Generative AI. If Contractor is permitted to use Generative AI, Contractor agrees to review any work created by Generative AI for accuracy, bias, and copyright infringement. Contractor agrees it will never submit any confidential or personal identifiable information acquired through this Agreement into a Generative AI system. For the purposes of this section, Generative AI is defined as a deep learning model that can generate high quality content such as stories or writings, images, voice replication and music. 21. Nondiscrimination and Equal Pay: Contractor agrees that all hiring by Contractor of persons performing this Agreement must be on the basis of merit and qualifications. Contractor must have a policy to provide equal employment opportunity in accordance with all applicable state and federal anti-discrimination laws, regulations, and contracts. Contractor cannot 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. Contractor is subject to and must 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 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 must require these nondiscrimination terms of its subcontractors providing services under this Agreement. 22. Intoxicants; DOT Drug and Alcohol Regulations/Safety and Training: Contractor must not permit or suffer the introduction or use of any intoxicants, including alcohol or illegal drugs, 300 Professional Services Agreement for Clean Slate Group LLC Snow Removal Services FY 2027-FY 2028 Page 10 of 13 by any employee or agent engaged in services to 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 must 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 must have the right to request proof of such compliance and Contractor must be obligated to furnish such proof. Contractor must be responsible for instructing and training Contractor's employees and agents in proper and specified work methods and procedures. Contractor must provide continuous inspection and supervision of the work performed. Contractor is responsible for instructing its employees and agents in safe work practices. 23. Modification and Assignability: This Agreement may not be enlarged, modified or altered except by written agreement signed by both Parties. Contractor may not subcontract or assign Contractor’s rights, including the right to compensation or duties arising hereunder, without the prior written consent of City. Any subcontractor or assignee will be bound by all of the terms and conditions of this Agreement. 24. Reports/Accountability/Public Information: Contractor agrees to develop and/or provide documentation as requested by City demonstrating Contractor’s compliance with the requirements of this Agreement. Contractor must allow City, its auditors, and other persons authorized by 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. Contractor cannot issue any statements, releases or information for public dissemination without prior approval of City. 25. 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. 26. 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 in this Agreement, the prevailing Party or the Party giving notice is entitled to reasonable 301 Professional Services Agreement for Clean Slate Group LLC Snow Removal Services FY 2027-FY 2028 Page 11 of 13 attorney's fees and costs, including fees, salary, and costs of in-house counsel including the City Attorney’s Office staff. 27. Taxes: Contractor is obligated to pay all taxes of any kind or nature and make all appropriate employee withholdings. 28. Dispute Resolution: a. Any claim, controversy, or dispute between the Parties, their agents, employees, or representatives must be resolved first by negotiation between senior-level personnel from each Party duly authorized to negotiate settlement agreements. Upon mutual agreement of the Parties, the Parties may invite an independent, disinterested mediator to assist in the negotiated settlement discussions. The Parties must attempt to resolve by negotiation within 90 days after the claim, controversy, or dispute has arisen. b. If the Parties are unable to resolve the dispute pursuant to subsection (a), then such dispute may only be resolved in a court of competent jurisdiction in compliance with the Applicable Law provisions of this Agreement. In such a case, all court actions must be commenced within 1 year after the settlement procedure in subsection (a) has been exhausted. 29. Survival: Contractor’s indemnification must survive the termination or expiration of this Agreement for the maximum period allowed under applicable law. 30. Headings: The headings used in this Agreement are for convenience only and are not to be construed as a part of the Agreement or as a limitation on the scope of the particular paragraphs to which they refer. 31. Severability: If any portion of this Agreement is held to be void or unenforceable, all other provisions of this Agreement must remain in effect. 32. Applicable Law: The Parties agree that this Agreement is governed by the laws of the State of Montana. 33. Binding Effect: This Agreement is binding upon and inures to the benefit of the heirs, legal representatives, successors, and assigns of the Parties. 34. No Third-Party Beneficiary: This Agreement is for the exclusive benefit of the Parties, 302 Professional Services Agreement for Clean Slate Group LLC Snow Removal Services FY 2027-FY 2028 Page 12 of 13 does not constitute a third-Party beneficiary agreement, and may not be relied upon or enforced by a third Party. 35. Counterparts: This Agreement may be executed in counterparts, which together constitute this Agreement. 36. 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 oral 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. 37. 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. 38. Extensions: This Agreement may, upon mutual agreement, be extended for a period of up to one year at a time by written agreement of the Parties. In no case, however, may this Agreement run longer than five (5) years from the effective date of this Agreement. **** END OF AGREEMENT EXCEPT FOR SIGNATURES **** 303 Professional Services Agreement for Clean Slate Group LLC Snow Removal Services FY 2027-FY 2028 Page 13 of 13 IN WITNESS WHEREOF, the Parties hereto have executed this Agreement the day and year first above written or as recorded in an electronic signature. CITY OF BOZEMAN, MONTANA ____________________________________ CONTRACTOR (Type Name Above) By________________________________ By__________________________________ Chuck Winn, City Manager Print Name: ___________________________ Print Title: ____________________________ APPROVED AS TO FORM: By_______________________________ Greg Sullivan, Bozeman City Attorney 304 Memorandum REPORT TO:City Commission FROM:Karl Johnson, Water Resources Engineer Shawn Kohtz, Director of Utilities SUBJECT:Authorize the City Manager to Sign the Professional Services Agreement with DOWL, LLC, for the Hyalite Intake Rehabilitation Project MEETING DATE:July 21, 2026 AGENDA ITEM TYPE:Agreement - Vendor/Contract RECOMMENDATION:Authorize the City Manager to Sign the Professional Services Agreement with DOWL, LLC, for the Hyalite Intake Rehabilitation Project STRATEGIC PLAN:4.3 Strategic Infrastructure Choices: Prioritize long-term investment and maintenance for existing and new infrastructure. BACKGROUND:The Hyalite intake was originally constructed in 1956. It is an integral component of the City's water supply infrastructure that diverts municipal water rights from Hyalite Creek to the Sourdough water treatment plant. The intake diversion consists of an earthen embankment and concrete spillway. Spillway concrete was repaired in the the mid 2000's when the new Hyalite diversion and supply pipeline were completed. The earthen embankment has not been rehabilitated since its construction. On August 5th, 2025, the City Commission authorized the original professional services agreement (PSA) with DOWL, LLC, to complete condition assessment and Amendment 1 on February 24th. 2026, to complete an alternate analysis of the Hyalite Intake. Based on these, an alternative to complete the rehabilitation in a two-phase design and construction approach was analyzed and selected and the preferred alternative. Phase 1 focuses on embankment deficiencies identified during the assessment while Phase 2 will address hydraulic capacity and freeboard. The attached professional services agreement provides for the engineering design and bidding services of Phase 1 of the rehabilitation project. UNRESOLVED ISSUES:None ALTERNATIVES:As suggested by the Commission FISCAL EFFECTS:The negotiated cost of the professional services agreement totals $233,487.00. Funding is provided by water fund capital improvement project W115 - Hyalite Intake Rehab. Appropriated budget available for W115 amounts to $1,105,659. Sufficient budget authority exists to authorize the 305 professional services agreement. Attachments: PSA with DOWL, LLC, for the Hyalite Intake Rehabilitation Project.pdf Report compiled on: July 8, 2026 306 PROFESSIONAL SERVICES AGREEMENT THIS IS AN AGREEMENT made as of , 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 N. Rouse Ave., Bozeman, Montana, 59771 (OWNER) and DOWL, 2425 Technology Boulevard Suite 2174, Bozeman, Montana, (ENGINEER). Whereas the accomplishment of the work and services described in this Agreement is essential to the OWNER'S public works improvement program. Whereas the OWNER intends to and has selected the ENGINEER to provide necessary and professional engineering services for the project. Whereas the ENGINEER represents that it is willing and qualified to perform the professional engineering services for this project described in this Agreement. Therefore, in consideration of the foregoing recitals and the mutual covenants and conditions contained herein, the parties agree as follows: ARTICLE 1 - ENGINEERING SERVICES 1.1. The detailed description of the specific project components is described as follows: The OWNER has selected the ENGINEER to provide professional design, permitting, and bidding support services for the Hyalite Intake Rehabilitation Project. The Project generally consists of the design and permitting of improvements to rehabilitate the existing embankment and remove sediment from the intake pool. 1.2. The scope of services under this contract is set forth in this Agreement and the attached EXHIBITS. Exhibit A: ENGINEER’s Technical Approach to the Scope of Services Exhibit B: ENGINEER’s Standard Hourly Rates ARTICLE 2 - ENGINEER'S RESPONSIBILITIES 2.1. ENGINEER shall perform for OWNER professional engineering services in all phases of the Project to which this Agreement applies as hereinafter provided. These services will include, but not be limited to, serving as OWNER's professional engineering representative for the Project, providing professional engineering consultation and advice and furnishing customary civil and structural engineering services incidental thereto. 2.2. The ENGINEER shall furnish all labor, materials, equipment, supplies, and incidentals necessary to conduct and complete the ENGINEER'S portions of the Project and to prepare and deliver to the OWNER all data, reports, plans, specifications, and recommendations as designated herein. Page 1 of 36 307 2.3. The ENGINEER shall ascertain such information as may have a bearing on the work from local units of government, public, and private organizations and shall be authorized to procure information from other authorities as to the extent of these contacts and the results thereof. 2.4. The ENGINEER'S work shall be in accordance with the standards of sound engineering practices. 2.5. The ENGINEER shall name a Principal-In-Charge for the duration of the project. The Principal- In-Charge shall be Russell Reed, PE, BC.WRE. 2.6. The ENGINEER shall name a Project Manager who shall be the liaison between the ENGINEER and the OWNER. The Project Manager shall be Jack Krusemark, PE. The OWNER may name a Task Director who would be the liaison between the ENGINEER and the OWNER during the design segment of the Project. 2.7. The ENGINEER shall submit an estimated progress schedule at the beginning of the work, and monthly progress reports thereafter until the project is completed. ARTICLE 3 - OWNER'S RESPONSIBILITIES 3.1 The OWNER shall name a Task Director who shall be the liaison between the ENGINEER and the OWNER during DESIGN segment of the Project. The Task Director designated shall be: Karl Johnson, PE. 3.2 The OWNER shall have the right of review and examination of the ENGINEER'S work at all times. 3.3 The OWNER shall make available all records (record drawings, construction records, etc.) indicating the existing configuration of the city utilities. 3.4 The OWNER will be responsible for advertising bid openings. 3.5 The OWNER shall attend the pre-bid conferences, bid openings, pre-construction conferences, construction progress and other job related meetings, substantial completion inspections and final payment inspections. ARTICLE 4 - BASIC ENGINEERING SERVICES The ENGINEER shall render professional Engineering Services as follows: 4.1 PRE-DESIGN INVESTIGATION PHASE After written authorization to proceed, ENGINEER shall: 4.1.1 Consult with OWNER to clarify and define OWNER's requirements for the Project and review available data. 4.1.2 Advise OWNER as to the necessity of OWNER's providing or obtaining from others, data or services and assist OWNER in obtaining such data or services. Page 2 of 36 308 4.1.3 Identify and analyze requirements of governmental authorities having jurisdiction to approve the design of the Project and participate in consultations with such authorities. 4.1.4. Provide analyses of OWNER's needs, planning surveys, site evaluations and comparative studies of prospective sites and solutions. 4.1.5. Provide a general economic analysis of OWNER's requirements applicable to various alternatives. 4.1.6 Assist in formation of Special Improvement Districts (SID) by preparing district boundary descriptions and maps, preparing a property owner's and assessments role lists including project assessment costs based on the preliminary project cost estimates, and providing technical information at SID public hearings, if applicable. 4.1.7. Prepare a Report containing schematic layouts, sketches and conceptual design criteria with appropriate exhibits to indicate clearly the considerations involved (including applicable requirements of governmental authorities having jurisdiction as aforesaid) and the alternative solutions available to OWNER and setting forth ENGINEER's findings and recommendations. This Report will be accompanied by ENGINEER's opinion of probable costs for the Project, including the following which will be separately itemized: Construction Cost, allowance for engineering costs and contingencies, and (on the basis of information furnished by OWNER) allowances for such other items as charges of all other professionals and consultants, for the cost of land and rights-of-way, for compensation for or damages to properties, for interest and financing charges and for other services to be provided by others for Owner. The total of all such costs, allowance, etc. are hereinafter called "Total Project Costs". 4.1.8. Furnish copies and an electronic copy of the Study and Report documents and review them in person with OWNER. The Pre-design Investigation Phase will be completed and submitted within calendar days following written authorization from OWNER to ENGINEER to proceed with that phase of services. 4.2 PRELIMINARY DESIGN PHASE After written authorization to proceed, ENGINEER shall: 4.2.1. In consultation with OWNER determine general scope, extent and character of the Project. 4.2.2. ENGINEER shall then prepare a Preliminary Design Report, preliminary plans and technical specifications and a written description for the Project. 4.2.3. Preliminary Design Report: Specific items to be addressed in the design report will include, but not be limited to: 4.2.3.1. Summary of construction requirements with appropriate drawings for each task included in the project. 4.2.3.2. Plans for providing water and sewer services for affected properties during construction. Page 3 of 36 309 4.2.3.3. Summary geotechnical report for specific tasks, if needed. 4.2.3.4. Special design considerations for Project tasks. 4.2.3.5. A traffic control plan for each project task, if necessary. 4.2.4. Design and Construction Survey: The ENGINEER shall conduct a design field survey of the project areas, as necessary, for locating existing utilities (such as gas, power, telephone, TV cables, water and sewer lines, irrigation facilities, fences, and approach driveways), existing right- of-way and easements, and making measured drawings of or investigating conditions of existing facilities. The ENGINEER shall provide suitable horizontal and vertical reference control points for the construction phase. 4.2.5. Permits and Rights-of-Way: The ENGINEER shall obtain approved permits, licenses, and/or easement agreements from private landowners and any other agencies or entities requiring similar approvals prior to bidding. These approvals will be coordinated with the OWNER and will be made on easement and permit documents approved by the OWNER. Information and easement descriptions provided in the Basic Engineering Services will be based on data available from design surveys and courthouse records. 4.2.6. Geotechnical Data Report: The ENGINEER shall furnish copies of a geotechnical report as requested to OWNER for use by OWNER and Contractors, and review the results of the report with Contractors in a pre-bid meeting. The report is to be prepared for design purposes; ENGINEER will not be responsible if it is used by others for other purposes. 4.2.7. Preliminary Plans and Specifications. Prepare preliminary construction plans and technical specifications with information which addresses the special features of each project task. 4.2.8. Based on the information contained in the preliminary design documents, ENGINEER will submit a revised opinion of probable Total Project Costs to the OWNER. 4.2.9. ENGINEER shall prepare and furnish complete paper and electronic copies of preliminary bidding documents and design report as requested to OWNER and at the same time furnish copies as directed by OWNER to agencies and/or parties having regulatory responsibilities or direct financial participation in any part of the Project; provide any technical criteria, written descriptions and design data necessary for securing permits or approval from authorities having jurisdiction to review and approve the design, and assist owner in securing such approvals; and review documents in person with OWNER and review authorities, and, if necessary, conduct a plan-in-hand site review. All changes agreed to between ENGINEER and OWNER will be noted in a memorandum from the ENGINEER to the OWNER and incorporated into the final plans and specifications. The Preliminary Design Report, plans, and technical specifications will be submitted to the OWNER within 120 calendar days following written authorization from OWNER to ENGINEER to proceed with that phase of services. Page 4 of 36 310 4.3 FINAL DESIGN PHASE After written authorization to proceed with the Final Design Phase, ENGINEER shall: 4.3.1. On the basis of the accepted Preliminary Design documents and the revised opinion of probable Total Project Costs, prepare for incorporation in the Contract Documents final drawings and Technical Specifications of sufficient detail to show the general scope, extent and detailed character of the work to be furnished and performed by the Contractor(s) suitable for use in the project bidding and construction. 4.3.2. Advise OWNER of any adjustments to the latest opinion of probable Total Project Costs caused by changes in general scope, extent or character or design requirements of the Project or Construction Costs. Furnish to OWNER a revised opinion of probable Total Project Costs based on the Drawings and Specifications. 4.3.3. Prepare for review and approval by OWNER, its legal counsel and other advisors, contract agreement forms, general conditions and supplementary conditions, and (where appropriate) bid forms, invitations to bid and instructions to bidders, special provisions, technical specifications, and standard drawings, and other related contract documents in conformance with the latest edition of the Montana Public Works Standard Specifications (MPWSS) and City of Bozeman Modifications to MPWSS adopted by the City of Bozeman. 4.3.4. Furnish OWNER six copies and an electronic copy of the Contract Documents (including design drawings, specifications and contracts). The revised design report, plans, and technical specifications will submitted to the OWNER within 90 calendar days following written authorization from OWNER to ENGINEER to proceed with that phase of services. 4.4 BIDDING OR NEGOTIATING PHASE After written authorization to proceed with the Bidding or Negotiating Phase, ENGINEER shall: 4.4.1. Assist OWNER in advertising for and obtaining bids or negotiating proposals for construction contract(s) and record prospective bidders to whom Bidding Documents have been issued, receive and process deposits for Bidding Documents and conduct pre-bid conferences. 4.4.2. Provide interpretation or clarification to prospective bidders regarding the Bidding Documents, and issue addenda as appropriate. 4.4.3. Consult with and advise OWNER as to the acceptability of the prime contractor, subcontractors, suppliers and other persons and organizations proposed by the prime contractor(s) (herein call "Contractor(s)") for those portions of the work as to which such acceptability is required by the Bidding Documents. 4.4.4. Consult with OWNER concerning and determine the acceptability of substitute materials and equipment proposed by Contractor(s) when substitution prior to the award of contracts is allowed by the Bidding Documents. Page 5 of 36 311 4.4.5. Attend the bid opening, prepare bid tabulation, evaluate bids, assess bidders' responsiveness and responsibility and make award recommendation to OWNER. 4.4.6 Facilitate contract award, and the execution and distribution of the contract documents for construction, materials, equipment and services. Furnish Owner two original signature sets of executed contract documents (including design drawings, specifications and contracts). Furnish contractor with one set of original signature executed contract documents and up to three sets of construction documents. 4.5 CONSTRUCTION PHASE The responsibilities of the ENGINEER during the Construction Phase are summarized as follows: 4.5.1. General Administration of Construction Contract. ENGINEER shall consult with and advise OWNER and act as OWNER'S representative as provided in EXHIBIT A - ENGINEER'S STATUS DURING CONSTRUCTION, attached to and made part of this Agreement and may be further provided under the General Conditions of the contract documents. The extent and limitations of the authority, duties, and responsibilities of the ENGINEER on the construction job site as described here-in shall not be modified except as the ENGINEER and OWNER may otherwise agree in writing. All of OWNER's instruction to Contractor(s) will be issued through ENGINEER who will have authority to act on behalf of OWNER to the extent provided in the General Conditions except as otherwise provided in writing. In addition to the services provided under Article 10 (Exhibit A) the ENGINEER shall provide the following services during construction: 4.5.1.1 Schedule and conduct a pre-construction conference. 4.5.1.2 Provide personnel, equipment and supplies for construction layout and control, including establishment of line, grade, and blue top control staking. 4.5.1.3 Review Contractors' construction schedules and operations, and the Contractors' traffic control plans and its implementation prior to the start of construction. 4.5.1.4 Ascertain that the Contractor has secured required permits needed to accomplish his work. 4.5.1.5 Prepare and provide weekly activity and progress reports to the City's Task Director. 4.5.1.6 ENGINEER shall provide OWNER copies of all correspondence between the ENGINEER and Contractor. 4.5.1.7 Issue stop and resume work orders, in whole or in part, when work is not or cannot be performed in accordance with the Contract Documents. 4.5.1.8 Review and approve, for conformance with the project technical specifications all shop drawings, and other Contractor submittals required by the Contract Documents. Page 6 of 36 312 4.5.1.9 During construction review Contractors' construction schedules and evaluate conformance and progress under the Contract time provisions. 4.5.1.10 Prepare for OWNER'S approval any plan and specification changes which due to any initial design or engineering deficiencies are required to complete the project original design concept. 4.5.1.11 Inspect the project and when appropriate, and after conferring with OWNER, issue a Certificate of Substantial Completion to the Contractor. 4.5.1.12 Prior to recommending final payment, schedule and conduct with the OWNER a final project inspection and submit a report to the OWNER documenting any outstanding items or deficiencies requiring correction prior to final payment. Upon satisfactory project completion ENGINEER shall certify in writing to the OWNER, and any required regulatory agencies, that the construction was completed in accordance with the approved plans and specifications and is performing in accordance with the design concept. 4.5.1.13 Twenty-three months after project substantial completion schedule and conduct with the Owner a Two Year Warranty Inspection of the project and advise the owner in writing whether project deficiencies exist and if the project is performing in accordance with the design concept. 4.5.2. Resident Project Representative. ENGINEER shall provide a qualified Resident Project Representative at the job site to provide observation of the work as provided in EXHIBIT B - A LISTING OF THE DUTIES, RESPONSIBILITIES AND LIMITATIONS OF AUTHORITY OF THE RESIDENT PROJECT REPRESENTATIVE, attached to and made part of this Agreement. The ENGINEER shall submit to the OWNER, for review and acceptance, the resume of each Resident Project Representative who may be assigned to the job site during the course of the Project not less than 10 calendar days prior to the pre-construction meeting. Any subsequent change in the resident representative shall also be subject to the OWNER'S approval. 4.5.3 Limitations of Responsibilities. ENGINEER will not be responsible for CONTRACTOR's means, methods, techniques, sequences or procedures of construction, or the safety precautions and programs incident thereto, and ENGINEER will not be responsible for CONTRACTOR's failure to perform or furnish the Work in accordance with the Contract Documents; however, nothing contained in this Agreement shall be construed to release ENGINEER from liability for failure to properly perform duties and responsibilities assumed by ENGINEER in the Contract Documents. 4.6. PROJECT DOCUMENTATION ENGINEER shall furnish OWNER with (a) one mylar copy, two paper copies, and an electronic copy of the Project Record Drawings ("As-Builts"), (b) written monthly progress reports, and (c) a project notebook containing such correspondence and documentation as requested by OWNER. 4.7. CONSTRUCTION TESTING The inspection services shall include material testing and verification of contract compliance with job site requirements, plans and specifications. Page 7 of 36 313 The ENGINEER shall provide and maintain detailed documentation of the following material testing: 1) Concrete strength, air content and slump 2) Embankment, trench backfill, and gravel and pavement densities 3) Aggregate gradations 4) Plant mix strength, flow and asphalt content ARTICLE 5 - ADDITIONAL SERVICES 5.1. If OWNER wishes ENGINEER to perform any of the following Additional Services, OWNER shall so instruct ENGINEER in writing, and ENGINEER shall perform or obtain from others such services and will be paid therefor as provided in this Agreement: 5.1.1. Legal land surveys performed to obtain data for preparing easements and rights-of-way descriptions. 5.1.2. Preparation of applications and supporting documents for governmental agencies in addition to those required under Basic Services; preparation or review of environmental studies and related services; and assistance in obtaining environmental approvals. 5.1.3. Services resulting from significant changes in the general scope, extent or character of the Project or major changes in documentation previously accepted by OWNER where changes are due to causes beyond ENGINEER's control. 5.1.4. Providing renderings or models. 5.1.5. Preparing documents for alternate bids requested by OWNER for work not executed or for out-of-sequence work. 5.1.6. Providing other services not otherwise provided for in this Agreement, including services normally furnished by the OWNER as elsewhere herein described. 5.1.7. Furnishing the services of independent professional associates or consultants for other than Basic Services. 5.2. When required by the Contract Documents in circumstances beyond ENGINEER's control, ENGINEER shall perform or obtain from others any of the following Additional Services as circumstances require during construction and without waiting for specific instructions from OWNER, and ENGINEER will be paid therefor as provided in this Agreement: 5.2.1. Services in connection with work directive changes and change orders to reflect the changes requested by OWNER if the resulting change in compensation for Basic Services is not commensurate with the additional services rendered. 5.2.2. Services in making revisions to Drawings and Specifications occasioned by the OWNER'S acceptance of substitutions proposed by Contractor(s); services after the award of each contract in evaluating and determining the acceptability of an unreasonable or excessive number of Page 8 of 36 314 substitutions proposed by Contractor; and evaluating an unreasonable or extensive number of claims submitted by Contractor(s) or others in connection with the work. 5.2.3. Services resulting from significant delays, changes or price increases occurring as a direct result of materials, equipment or energy shortages. 5.2.4. Additional or extended services during construction made necessary by (1) work damage by fire or other causes during construction, (2) a significant amount of defective or neglected work of any Contractor, (3) acceleration of the progress schedule involving services beyond normal working hours, (4) default by any Contractor. ARTICLE 6 - COMPENSATION FOR ENGINEERING SERVICE 6.1 LUMP SUM AGREEMENT FOR BASIC SERVICES AND EXPENSES OF ENGINEER 6.1.1 Payment. The OWNER shall for design phase services performed as Basic Engineering Services under sections 4.1 through 4.3 of this Agreement pay a total sum in the amount of $ for such services. 6.1.2 Payment Schedule. Total cumulative payments for the design phase engineering services (sections 4.1 through 4.4) shall not exceed the following ceilings: $ (10 % of design fee) until the Pre-design Investigation and Preliminary Design Report have been submitted to the OWNER. $ (50% of design fee) until the Preliminary Plans and Specifications have been submitted to the OWNER and review authorities. $ (90% of design fee) until the Final Plans and Specifications have been submitted to the OWNER and review authorities. 6.1.3 General. Engineer shall submit monthly statements for services rendered. The statements shall be based upon Engineer's estimate of the proportion of the total services actually completed at the time of billing, subject to any limitations on Payments based on completion of tasks or specific retainage requirements pursuant to the payment provisions of this Agreement. 6.1.4 Reimbursable Expenses. Only those expenses specifically identified for payment under section 6.2 of this Agreement are reimbursable. All other design related expenses are included in the Lump Sum Payment for the Basic services (4.1 through 4.4) and are not separately reimbursable. Additional Services specifically identified under the scope of design services for payment under 6.1 are not separately reimbursable. 6.2 DIRECT LABOR COST PAYMENT FOR BASIC SERVICES AND EXPENSES OF ENGINEER. Construction and project documentation services performed as Basic Engineering Services under sections 4.4 through 4.7 including General Administration of Construction Contract, Resident Project Representation, Project Documentation, and Construction Testing, shall be compensated in accordance with the following: Page 9 of 36 315 6.2.1 The OWNER shall pay for Construction Phase and Project Documentation Services an amount not to exceed except as provided under 6.2.1.2 and 6.2.4. 6.2.1.1 Costs Compensation. Compensation for these services shall be based on the ENGINEER's Direct Labor Cost times a factor of for services rendered which shall cover Direct Labor, Direct Labor Overhead, General & Administrative Overhead and Profit. 6.2.1.2 Notification. At any time during the construction that it becomes apparent that the Construction Phase and Project Documentation Services rendered under this Agreement will exceed the negotiated compensation for these services, and prior to performing services in excess of the contract ceiling, the ENGINEER shall give OWNER written notice thereof. Promptly thereafter OWNER and ENGINEER shall review the scope and progress of the project work. ENGINEER shall obtain written authorization from OWNER, prior to any additional costs being incurred under paragraph 6.2.1.3. If it is determined that due to a change in project scope under paragraph 5.2.1, the ENGINEER is entitled to additional compensation, OWNER and ENGINEER may negotiate terms as provided under 6.2.1.1. The amount and terms of any additional compensation under 6.2.1.1 or 6.2.1.3 shall be negotiated and agreed in writing pursuant to 9.16. 6.2.1.3 Costs Exceeding Estimated Compensation. Except as allowed under 5.2.1, when the total cost of the original scope Construction Phase and Project Documentation Services exceeds the negotiated compensation for these services, the OWNER shall pay only for the direct costs incurred in excess of the estimated compensation. These costs consist of an amount equal to the ENGINEER'S Direct Labor Cost times a factor of for services rendered which shall include Direct Labor, the federally audited payroll Direct Labor Overhead, and General & Administrative Overhead costs, but shall not include any allowance for profit. 6.2.2. Reimbursable Expenses, as defined in section 7.4 of this Agreement, for Basic Services and Approved Additional Services shall be paid to the ENGINEER by the OWNER in the actual amount of the costs incurred up to an amount not to exceed $ which includes $ for consultants employed by the Engineer and $ for all other reimbursable expenses. The estimated reimbursable expenses are identified in Exhibit " ". 6.2.3. Failed Test Expenses. The ENGINEER shall maintain and provide to the OWNER, a record of the costs associated with failing quality control tests performed for the OWNER during the course of the construction of the project and recommend an amount the OWNER deduct from the contractor(s) payments. 6.2.4 The OWNER shall pay an amount for Additional Services rendered by the ENGINEER and approved in writing by the OWNER on the basis of the ENGINEER'S Direct Labor Costs times a factor of , or an amount otherwise negotiated at the time such services are requested and approved by the OWNER. 6.3 TIME AND EXPENSES (NOT-TO-EXCEED) 6.3.1 OWNER agrees to pay ENGINEER for the completion of the Scope of Services a cost not- to-exceed the amount of $233,487.00. Page 10 of 36 316 6.3.1.1 The actual cost amount paid shall be equal to the cumulative hours charged to the Project by each class of ENGINEER’s personnel multiplied by the standard hourly rates for each applicable billing class for all services performed, plus Reimbursable Expenses and any ENGINEER’s Consultant charges. ENGINEER’s Standard Hourly Rates and Reimbursible Expenses Schedule are attached hereto as Exhibit B and are by reference made a part of this agreement. 6.3.1.2 The standard hourly rates charged by ENGINEER constitute full and complete compensation for ENGINEER’s services, including labor costs, overhead, and profit; the standard hourly rates do not include Reimbursable Expenses or ENGINEER’s Consultant charges. 6.3.1.3 A detailed breakdown of the cost amount for the Scope of Services, including personnel hours directly assigned to each task and the estimated ENGINEER’s Consultant charges, is attached hereto as Exhibit A and, by reference, made part of this agreement. 6.3.1.4 ENGINEER may alter the distribution of compensation between individual tasks of the Scope of Services to be consistent with services actually rendered but shall in no case exceed the cost not-to-exceed amount as set forth above. 6.3.2 ENGINEER’s Consultants are any independent professional associates working on the Project that are not directly employed by the ENGINEER andhave rather been hired by ENGINEER to serve a particular role or offer a particular service for the Project. ARTICLE 7 - MEANING OF TERMS 7.1 AGREEMENT As used herein the term "this Agreement" refers to the contents of this document and its Exhibits attached hereto and referred to as if they were part of one and the same document. 7.2 CONSTRUCTION COSTS The construction cost of the entire Project (herein referred to as "Construction Cost") means the total cost to OWNER of those portions of the entire Project designed and specified by ENGINEER, but it will not include ENGINEER's compensation and expenses, the cost of land, rights-of-way, or compensation for or damages to, properties unless this Agreement so specifies, nor will it include OWNER's legal, accounting, insurance counseling or auditing services, or interest and financing charges incurred in connection with the Project or the cost of other services to be provided by others to OWNER. 7.3 DIRECT LABOR COSTS Direct Labor Costs used as a basis for payment mean the actual salaries and wages paid to all ENGINEER's personnel engaged directly on the Project, including, but not limited to, engineers, architects, surveyors, designers, drafters, specification writers, estimators, other technical and business personnel; but does not include indirect payroll related costs or fringe benefits. For the purposes of this Agreement the principals and employees of the ENGINEER maximum billable Direct Labor Costs are: Page 11 of 36 317 Principals $ /hour Project Manager $ /hour Senior Engineer $ /hour Staff Engineer $ /hour Senior Technicians $ /hour CADD Drafter $ /hour Technicians $ /hour Construction Inspector $ /hour Two Person Survey Crew $ /hour Clerical $ /hour 7.4 REIMBURSABLE EXPENSES Reimbursable Expenses mean the actual expenses incurred by ENGINEER or ENGINEER's independent professional associates or consultants directly in connection with the Project, such as expenses for: transportation and subsistence incidental thereto; obtaining bids or proposals from Contractor(s); subsistence and transportation of Resident Project Representatives and their assistants; toll telephone calls and telegrams; reproduction of reports, Drawings, Specifications, Bidding Documents and similar Project- related items; and if authorized in advance by OWNER, overtime work requiring higher than regular rates. In addition, when compensation for Basic Services is on the basis of Direct Labor Costs method of payment, Reimbursable Expenses will also include the amount billed to ENGINEER by special consultants employed by ENGINEER and authorized by OWNER (other than as an authorized Additional Services) and will also include expenses incurred for computer time and other specialized equipment, including an appropriate charge for previously established programs and expenses of photographic production techniques. ARTICLE 8 - PAYMENT PROVISIONS 8.1 TIMES OF PAYMENTS. ENGINEER may submit monthly statements for Basic Services and approved Additional Services rendered and for Reimbursable Expenses incurred; however, payments shall not exceed the ceilings provided in 6.1 and 6.2 and 6.3. Final payment shall be made only after acceptance of the project by the OWNER. If OWNER disputes the amount of the billing, OWNER will notify the ENGINEER in writing within ten (10) calendar days of the receipt of bill of the dispute. 8.2 REQUESTS FOR PAYMENT. Each request for payment shall include a documentation summary of the period incremental man hours incurred, direct labor rates and billed rates, detail of reimbursable costs, total period billing, and total cumulative billing. When requested by OWNER services for distinct project segments shall be accounted and billed separately. 8.3 PAYMENT UNDER TERMINATION. In the event of termination by the OWNER upon the completion of any phase of the Basic Services, progress payments due ENGINEER for services rendered through such phase shall constitute total payment for such services. In the event of such termination by OWNER during any phase of the Basic Services, ENGINEER also will be reimbursed for the charges of pre-approved independent professional associates and consultants employed by ENGINEER to render Basic Services, and paid for services rendered during that phase on the basis of the payment provisions of the Agreement. In the event of any such termination, ENGINEER will be paid for unpaid pre-approved Additional Services and unpaid Reimbursable Expenses which are authorized under this agreement. Page 12 of 36 318 ARTICLE 9 - GENERAL CONSIDERATIONS 9.1 TERMINATION OF AGREEMENT 9.1.1 The sole right is hereby reserved to the OWNER to terminate this Engineering Agreement for any and all causes or for its convenience at any time upon fifteen (15) days written notice to the ENGINEER. 9.1.2 If termination for default is effected by the OWNER, an equitable adjustment in the price provided for in this Agreement shall be made, but (1) no amount shall be allowed for anticipated profit on unperformed services or other work, and (2) any payment due to the ENGINEER at the time of termination may be adjusted to cover any additional costs to the OWNER because of the ENGINEER's default. If termination for convenience is effected by the OWNER, the equitable adjustment shall include a reasonable profit, as determined by owner, for services or other work performed. The equitable adjustment for any termination shall provide for payment to the ENGINEER for services rendered and expenses incurred prior to the termination, in addition to termination settlement costs reasonably incurred by the ENGINEER relating to commitments which had become firm prior to the termination. 9.1.3 Upon receipt of a termination action under paragraph 9.1.2, the ENGINEER shall (1) promptly discontinue all affected work (unless the notice directs otherwise), and (2) deliver or otherwise make available to the OWNER within ten (10) days copies of all data, design drawings, specifications, reports, estimates, summaries and such other information and materials as may have been accumulated by the ENGINEER in performing this Agreement, whether completed or in process. 9.1.4 In the event this Contract is terminated prior to completion, the original copies of the ENGINEER'S data, recommendations, plans, specifications, analysis and other related documents prepared by the ENGINEER prior to said termination shall be delivered to and become the property of the OWNER. 9.1.5 Upon termination, the OWNER may take over the work and may award another party an Agreement to complete the work under this Agreement. 9.1.6 OWNER'S right to terminate is in addition to any other remedies OWNER may have under the law. 9.2 INSPECTION AND AUDIT All books, papers, records, payrolls, vouchers and invoices relating to costs and expenditures incurred as to the performance of the services by the ENGINEER hereunder shall be made available to the OWNER, or their authorized representatives for audit and review, at the ENGINEER'S respective offices at all reasonable times during the contract period and for three years from the date of final payment. 9.3 EMPLOYMENT The ENGINEER warrants that he has not employed or retained any company or persons, other than a bona fide employee, working solely for the ENGINEER, to solicit to secure this contract, and that he has not paid or agreed to pay any company or person, other than bona fide employees working solely for the ENGINEER, any fee, commission, percentage, brokerage fee, gifts or any other considerations contingent Page 13 of 36 319 upon or resulting from the award or making of this Contract. For breach or violation of this warranty, the OWNER shall have the right to annul the Contract without liability or in its discretion to deduct from the price or consideration or otherwise recover the full amount of such fee, commission, percentage, brokerage fee, gift or contingent fee. All employees of the ENGINEER or other persons while engaged in the performance of work or services required by the ENGINEER shall be considered employees of the ENGINEER only and not of the OWNER. 9.4 NONDISCRIMINATION The ENGINEER agrees that all hiring by ENGINEER of persons performing this Agreement shall be on the basis of merit and qualifications. The ENGINEER will have a policy to provide equal employment opportunity in accordance with all applicable state and federal anti-discrimination laws, regulations, and contracts. The ENGINEER 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 ENGINEER 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. ENGINEER 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). ENGINEER 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. ENGINEER shall require these nondiscrimination terms of its subcontractors providing services under this Agreement. The ENGINEER shall require these nondiscrimination terms of its sub-consultants providing services under this agreement. 9.5 SUBLETTING OR ASSIGNING OF WORK The ENGINEER shall not sublet or assign any of the work covered herein without prior written approval of the OWNER. 9.6 STANDARD OF CARE In providing services under this agreement, the ENGINEER will perform in a manner consistent with the degree of care and skill ordinarily exercised by members of the same profession currently practicing under similar circumstances. If any service should be found to be not in conformance with this standard, the ENGINEER shall, at the OWNER’s request, re-perform the service at its own expense. Engineer shall also, at its own expense, make such changes, modifications or additions to the project which are made necessary Page 14 of 36 320 as a result of the initial non-performance or the re-performance of services. The OWNER’s rights herein are in addition to any other remedies the OWNER may have under the law. 9.7 LEGAL RELATIONS: 9.7.1 The ENGINEER shall, consistent with the standard care, comply with those Federal, State, and Local laws and ordinances applicable to the work to be done. 9.7.2 For claims, causes of action, losses, or damages (collectively, “Claims”) asserted by third-parties and arising out of the performance of professional services by the ENGINEER, the ENGINEER shall indemnify and hold the Owner and the Owner’s officers, directors, and employees harmless from such Claims, including reasonable attorneys’ fees and expenses recoverable under applicable law, but only to the extent such Claims are caused by the negligence or intentional misconduct of the ENGINEER, its employees and its consultants in the performance of professional services under this Agreement. The ENGINEER’S obligation to indemnify and hold the Owner and the Owner’s officers and employees harmless under this section 9.7.2 does not include a duty to defend. 9.7.3 For Claims asserted by third-parties that do not arise out of the performance of professional services by the ENGINEER, the ENGINEER shall, to the extent covered by the ENGINEER’S insurance, defend, indemnify, and hold the Owner and the Owner’s officers, directors, and employees harmless from such Claims, including reasonable attorneys’ fees and expenses recoverable under applicable law, but only to the extent such Claims are caused by the negligence or intentional misconduct of the ENGINEER, its employees and its consultants. 9.7.4 In the event the OWNER is found proportionately responsible for any damages ultimately awarded to a plaintiff or plaintiffs in any lawsuit, the ENGINEER will be responsible for only those damages, costs, or liabilities as are attributable to the ENGINEER’S percent of fault as compared with 100% of the fault giving rise to the damages. Should the OWNER be found responsible for negligence by its own officers, directors, agents or employees, then in that event the OWNER agrees to reimburse the ENGINEER for the reasonable attorney’s fees and costs incurred in any defense of the OWNER in an amount proportional to the fault attributed to the OWNER. The indemnity required herein shall not be limited by reason of the specification of any particular insurance coverage in this Agreement. 9.7.5 Should either OWNER or ENGINEER be held responsible, for any damages, costs or liabilities resulting from intentional misconduct by any officer, director, agent or employee in connection with the work specified in this Agreement, then in that event, that party shall indemnify and hold harmless the other as to any damages, costs or liabilities that result from or arise out of that intentional misconduct, including reasonable attorney’s fees and costs which shall include costs and salary of the city attorney or other in-house counsel. Further, notwithstanding the obligations set forth in paragraphs 9.7.2 and 9.7.3 above, the ENGINEER agrees to defend OWNER where the OWNER’S alleged liability arises from intentional misconduct by the ENGINEER. Should the OWNER be found responsible for intentional misconduct by its own officer, director, agent or employee, then OWNER agrees to reimburse ENGINEER for the reasonable attorney’s fees and costs incurred in any defense of the OWNER. 9.7.6 The ENGINEER shall perform this agreement as an independent contractor, and as such, is responsible to the OWNER only as to the results to be obtained in the work herein specified, and to the extent that the work shall be done in accordance with the terms, plans and specifications. Page 15 of 36 321 The ENGINEER shall have and maintain complete control over all of its employees, subcontractors, agents and operations, being responsible for any required payroll deductions and providing required benefits, such as, but not limited to worker’s compensation with statutory limits, and unemployment insurance. 9.8 INSURANCE The ENGINEER shall secure and furnish to the OWNER certificate of insurance, therein, naming the OWNER as an additional insured, to include thirty (30) days notice of cancellation or non-renewal. Without limiting any of ENGINEER's obligations hereunder, ENGINEER shall secure and maintain, until the work is completed and accepted by the OWNER, insurance coverage naming the OWNER as additional insured with minimum insurance coverage as follows: Page 16 of 36 322 Type of Coverage Limits Employers' Liability: $ 1,000,000. per accident General Liability: Bodily Injury & Property Damage Single and combined $ 1,000,000. per accident General Aggregate: $ 2,000,000. Excess Liability Coverage (umbrella) $1,000,000. each occurrence Automobile: Bodily Injury covering all $ 1,000,000 each person automobiles, trucks, tractors, trailers, or $ 1,000,000 each occurrence other automotive equip- ment whether owned or rented by Engineer or owned by employees of Engineer. Property Damage covering $ 1,000,000 each occurrence all automobiles, trucks, tractors, trailers or other automotive equipment whether owned or rented by Engineer or owned by employees of Engineer OR Bodily Injury & Property $1,000,000 each occurrence Damage Single and combined In addition to the above insurance coverage, the ENGINEER shall secure and maintain, until the work is completed and accepted by the OWNER, and without naming OWNER as an additional insured, professional errors and omissions coverage as follows: Professional Errors & Omissions: $ 1,000,000 per claim and aggregate each occurrence Page 17 of 36 323 9.9 ENDORSEMENT The ENGINEER shall place his endorsement on all drawings and other data furnished by him. 9.10 OWNERSHIP OF DOCUMENTS The parties admit and agree the documents produced under this agreement are not intended or represented to be suitable for reuse by OWNER or any other individual on any other project. Any reuse without written verification or adaptation by ENGINEER will be at OWNER’s sole risk and without liability or legal exposure to ENGINEER, or to ENGINEER’s independent professional associates or consultants. Files in electronic media format of text, data, graphics, or of other types that are furnished by ENGINEER to OWNER are only for convenience of owner. Any conclusion or information obtained or derived from such electronic files will be at the user's sole risk. 9.11 PUBLIC INFORMATION The ENGINEER shall not issue any statements, releases or information for public dissemination without prior approval of the OWNER. 9.12 PROPRIETARY RIGHTS If patentable discoveries or inventions should result from work required herein, all rights accruing from such discoveries or inventions shall be joint property of the ENGINEER and the OWNER. Provided that the OWNER, state agencies or political subdivisions and the United States Government shall have the irrevocable, nonexclusive, nontransferable and royalty-free license to use each invention in the manufacture, use and disposition, according to law, of any article or material, and in the use of any method that may be developed as part of the work described and contemplated herein. 9.13 RECORDS The ENGINEER shall maintain accounting records and other evidence pertaining to the cost incurred and to make the records available at all reasonable times during the Contract term and for one (1) year from the date of final payment. Such accounting records and other evidence pertaining to the cost incurred will be made available for inspections by OWNER. 9.14 SUCCESSORS IN INTEREST The covenants, agreements and all statements in this Contract apply to and shall be binding on the heirs, personal representatives, successors and assigns of the respective parties. 9.15 ATTORNEY'S FEES AND COSTS That in the event it becomes necessary for either Party of this Contract to retain an attorney to enforce any of the terms or conditions of this Contract or to give any notice required herein, then the prevailing Party or the Party giving notice shall be entitled to reasonable attorney's fees and costs, including fees, salary, and costs of in-house counsel to include City Attorney. Page 18 of 36 324 9.16 MODIFICATIONS AND AMENDMENTS That any amendment or modification of this Contract or any provisions herein shall be made in writing or executed in the same manner as this original document and shall after execution become a part of this Contract. 9.17 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. In witness Whereof, the Parties hereto do make and execute this Agreement. CITY OF BOZEMAN, MONTANA ENGINEER BY: BY: (City Manager) (Principal-In-Charge) DATE: DATE: ATTEST: BY: (City Clerk) Page 19 of 36 325 EXHIBIT A: ENGINEER’S TECHNICAL APPROACH TO THE SCOPE OF SERVICES Page 20 of 36Page 20 of 36 326 Hyalite Intake Rehabilitation Preliminary & Final Design – Technical Approach (Rev. 2) TO: Karl Johnson, PE FROM: Jack Krusemark, PE DATE: 7/15/2026 PROJECT: Hyalite Intake Rehabilitation SUBJECT: Preliminary & Final Design – Technical Approach (Rev. 2) \\dowl.com\j\Projects\62\22067-01\10PM\230Contract\PSA_DesignServices\Hyalite_Design_TechApproach.docx The City of Bozeman (City) previously retained DOWL to complete a condition assessment and alternatives analysis for the Hyalite Intake. Based on that work, the City selected a preferred alternative with a two- phase design and construction approach. Phase 1 focuses on embankment deficiencies, primarily related to the potential for internal erosion. Phase 2 will address hydraulic capacity and freeboard. This document presents DOWL’s technical approach to completing the preliminary and final design of Phase 1 of the Hyalite Intake Rehabilitation Project (Project), along with associated bidding support. A project schedule and fee summary are provided at the end of this document. Phase 1 is the first part of the overall rehabilitation effort and includes the following elements: Rehabilitation of the embankment west of the spillway, including installation of a chimney filter and drainage blanket, improvements to upstream erosion protection, and grading to accommodate a future spillway replacement and a minor embankment crest raise (6”) in Phase 2. Sediment removal from the pool upstream of the intake. Phase 2 will include the replacement and widening of the spillway. Design and permitting for Phase 2 are not included in this scope of services. PRELIMINARY DESIGN DOWL will develop preliminary design documents, including plans, technical specifications, an opinion of probable construction cost, and a preliminary design report. DOWL will also perform services to support the preparation of permit applications, including Clean Water Act (CWA) Section 404 and Montana Fish, Wildlife & Parks (MT FWP) Stream Protection Act (SPA) Section 124 permits. The following subsections describe DOWL’s approach to performing these services and preparing the associated deliverables. ANALYSIS AND DESIGN The following analyses are necessary: Filter Compatibility: DOWL will perform a filter compatibility analysis to select a filter material compatible with the embankment fill (both the in-place embankment fill that may be salvaged and the imported embankment fill). The selected material will be evaluated for compatibility with adjacent embankment soils to allow proper filtration and prevent fines migration. Geotechnical Modeling: DOWL will develop a geotechnical model to evaluate embankment stability and liquefaction potential, and to validate the conceptual embankment geometry developed during the alternatives phase. Riprap and Bedding Design: DOWL will select a riprap size classification for use along the upstream slope of the rehabilitated embankment. DOWL will also select a bedding material that is compatible with both the underlying soils and the riprap. Page 21 of 36 327 Hyalite Intake Rehabilitation Preliminary & Final Design – Technical Approach (Rev. 2) Borrow Source: DOWL will evaluate potential sources of borrow material for embankment construction. Depending on regional soil mapping and potential borrow sources targeted for investigation, this effort may require coordination with the City of Bozeman and the US Forest Service, and DOWL anticipates this activity will include a site visit by a geotechnical engineer and laboratory testing of soil samples. DOWL will document the results, assumptions, methodologies, and findings of these analyses and the proposed embankment geometry, including filter layout, in the Preliminary Design Report. SURVEY Although an initial survey was performed in 2025 to support the Condition Assessment, Alternatives Assessment, and the Hazard Potential Classification Study, additional survey in the vicinity of the embankment and intake is needed for final design. The supplemental survey will provide improved topographic resolution necessary for accurate earthwork quantity estimates and definition of embankment design geometries. DOWL will establish horizontal and vertical control suitable for use by a construction contractor. Survey will be collected and shown on drawings in the Bobcat low-distortion projection per the Rocky Mountain Tribal Coordinate Reference System and referenced vertically to the North American Vertical Datum of 1988 (NAVD88). PRELIMINARY DESIGN REPORT DOWL will prepare a Preliminary Design Report documenting the basis of design of Project elements and the analyses supporting the design. The report will include a discussion of anticipated construction sequencing, including potential methods for temporary flow diversion during construction (e.g., cofferdams) and other staging and sequencing considerations. The report will also evaluate potential contractor access approaches, such as a temporary bridge or a drivable ford crossing. The Preliminary Design Report will be submitted to the City for review and comment. BIOLOGICAL & CULTURAL ASSESSMENT Preliminary-stage permitting support will include preparing a Biological Assessment and a Cultural Resources Assessment Report. These efforts provide supporting documentation necessary for Project permit applications. The preparation and submittal of the permit applications themselves are included under Final Design. Biological Assessment (BA) A CWA Section 404 permit is a federal permit, and the US Army Corps of Engineers (USACE) must ensure that the Project complies with the Endangered Species Act (ESA). During the Aquatic Resources Delineation conducted in 2025, DOWL reviewed the site for suitable habitat for federally listed species, including Canada lynx, grizzly bear, and wolverine. Building on this prior work, DOWL will prepare a BA that identifies suitable habitat and federally listed species likely to be present within the project area/vicinity. The report will also note which species are unlikely to occur and why. A discussion of the proposed action and its potential impacts on federally listed species will also be included. A draft BA will be submitted to the City for review and comment, and the final BA will be included in the CWA Section 404 permit application package. Cultural Resources Assessment The Hyalite Intake is more than 50 years old, and the State Historic Preservation Office (SHPO) database does not list it as previously evaluated for National Register of Historic Places eligibility. USACE is required Page 22 of 36 328 Hyalite Intake Rehabilitation Preliminary & Final Design – Technical Approach (Rev. 2) to determine effects to the diversion under Section 106 as part of the federal CWA permitting process. Through our subconsultant, EthnoScience, DOWL will complete a Class III Cultural Resources Assessment covering the anticipated area of potential effect. The Assessment will include a cultural field survey to evaluate the diversion and any other potential historic sites in the area of potential effect, and the final report will be submitted to the USACE. PRELIMINARY PLANS AND SPECIFICATIONS DOWL will prepare preliminary (approximately 60%-level) plans, technical specifications, and an associated opinion of probable construction cost. The plans will be developed to a level sufficient to support Section 404 and Section 124 permit applications. Table 1 provides a preliminary list of anticipated plan sheets and technical specification sections. This list is subject to refinement and change as the Project progresses; it is included solely to convey DOWL’s assumed level of effort. Table 1. Assumed List of Plan Sheets and Technical Specification Sections Plan Sheets Technical Specification Sections G01 Cover Sheet G02 Sheet Index, Symbols, General Notes G03 General Site Overview, Survey Control G04 Existing Conditions & Construction Limits G05 Conceptual Cofferdam Plan & Sequence C01 Finished Site Plan C02 Excavation Plan C03 Finished Grading Plan C04 Sections & Details C05 Sections & Details C06 Sections & Details XS01 Cross Sections XS02 Cross Sections 01 11 00 Summary of Work 01 14 00 Work Restrictions 01 29 00 Payment Procedures 01 29 73 Schedule of Values 01 32 16 Construction Progress Schedule 01 33 00 Submittal Procedures 01 41 26 Permits 01 46 00 Quality Procedures 01 50 00 Temporary Facilities 01 55 26 Traffic Control 01 57 20 Environmental Protection 01 57 90 Preservation of Archaeological Data 01 71 20 Construction Surveying 01 74 00 Cleaning & Waste Management 01 78 39 Project Record Documents 31 03 10 Diversion, Care of Water, & Dewatering 31 05 19 Geosynthetics 31 11 00 Clearing & Grubbing 31 14 10 Topsoil Stripping 31 23 16 Excavation 31 24 00 Fill & Backfill 31 37 00 Riprap & Bedding 32 92 19 Revegetation 51 00 20 Streamflow Data 51 10 00 Geologic Investigation Records CLIENT MEETINGS The assumed basis of effort associated with client meetings during Preliminary Design is two virtual meetings with the City, each attended by three DOWL staff. One of the meetings is anticipated to occur following submittal of the preliminary plans, technical specifications, and design report, and after the City has had adequate time to review these materials. Following the design review meeting, DOWL will prepare and submit a memorandum documenting suggested design changes, key decisions, and other discussions from the meeting. Page 23 of 36 329 Hyalite Intake Rehabilitation Preliminary & Final Design – Technical Approach (Rev. 2) FINAL DESIGN Following completion of the Preliminary Design, DOWL will: 1. Prepare and submit permit applications for the Project 2. Advance the plans and technical specifications to a level suitable for inclusion in a bid advertisement. FINAL PLANS AND SPECIFICATIONS DOWL will prepare final plans, technical specifications, and an updated opinion of probable construction cost. FINAL DESIGN REPORT DOWL will revise the Preliminary Design Report to reflect changes, refinements, and any additional analyses performed during Final Design. The report will be updated accordingly and submitted to the City as the Final Design Report. ENVIRONMENTAL PERMITTING All delineated boundaries of aquatic resources identified during the 2025 wetland delineation fieldwork will be overlaid on the preliminary design drawings to determine where avoidance of aquatic resources can occur and where impacts are proposed. DOWL anticipates that the Project will require a CWA Section 404 permit and an SPA 124 permit from Montana Fish, Wildlife, and Parks (FWP). Montana FWP may issue or waive 318 Authorization (Short-Term Water Quality Standard for Turbidity) on behalf of the Montana Department of Environmental Quality (DEQ) when they review the Project under SPA 124. Acquisition of 318 Authorization, if required, is included in this scope of services. We will work with the City to coordinate with USACE and Montana FWP on permitting requirements and to resolve issues or concerns these agencies may have. Identifying permitting challenges early in the process allows for a smooth review and a quicker turnaround on permit application submittals. CWA Nationwide Permits can take 3-4 months to obtain. Montana FWP typically provides an SPA 124 permit within 30 days. DOWL will work with the City to time the permit application submittals to allow for timely authorizations before the Project goes to bid. It is anticipated that permanent impacts to jurisdictional waters and wetlands will be less than 0.5 acres, and the Project will qualify for authorization under a Nationwide Permit rather than an Individual Permit. However, the presence of peat wetlands downstream of the embankment may increase regulatory sensitivity, and impacts to these resources could trigger the need for more extensive permitting. Given the information available, DOWL assumes that permitting will proceed under a Nationwide Permit; any effort to obtain an Individual Permit would be outside the scope of services. DOWL will prepare the Montana Joint Permit Application for submittal to the USACE under CWA Section 404 and to the Montana FWP under SPA 124. The permit application will cover both permanent facilities and temporary facilities (e.g., cofferdams). DOWL will submit the draft permit application to the City for review. Following City review, DOWL will finalize and submit the permit applications to the appropriate agencies. Compensatory mitigation for impacts to wetlands and/or streams may be required; however, because the extent of permanent impacts is not known at this time, mitigation design and preparation of mitigation plans, including the 12 required components and credit/debit analyses, are not included in this scope of Page 24 of 36 330 Hyalite Intake Rehabilitation Preliminary & Final Design – Technical Approach (Rev. 2) services. Should mitigation be required, DOWL will coordinate with the City to develop an appropriate scope and fee proposal for a contract amendment. CLIENT MEETINGS The assumed basis of effort for client meetings during Final Design is one virtual meeting with the City, attended by three DOWL staff members. BIDDING AND DIVISION 00 SUPPORT DOWL will provide Division 00 and bidding-phase support as described below. DIVISION 00 SUPPORT DOWL will assist the City with preparing the Division 00 procurement and contracting documents for inclusion in the Project Manual. We understand that the City maintains standard Division 00 templates that will be adapted for this Project. Table 2 lists the Division 00 sections currently anticipated for inclusion in the Project Manual. Section numbers and titles generally follow the Construction Specifications Institute (CSI) MasterFormat System, which is used by the Engineers Joint Contract Documents Committee (EJCDC). Table 2. Assumed List of Division 00 Sections Division 00 Sections 00 10 00 Advertisement for Bids 00 20 00 Instructions to Bidders 00 26 00 Non-discrimination Affirmation 00 31 46 Permits 00 41 00 Bid Form 00 43 13 Bid Bond 00 51 00 Notice of Award 00 52 00 Agreement 00 55 00 Notice to Proceed 00 61 00 Performance Bond 00 61 13 Payment Bond 00 70 00 Standard General Conditions 00 73 00 Supplementary General Conditions BIDDING DOWL will assist the City during the bidding phase by supporting the advertisement of the Project, responding to bidder questions, evaluating bids, and facilitating the selection of a construction contractor. Anticipated services include: Prepare the bid advertisement on the QuestCDN bidding platform, upload the bidding documents, and administer the QuestCDN site throughout the bidding period. Attend and lead an on-site pre-bid meeting with prospective bidders and other interested parties. Respond to questions from prospective bidders during the bidding period. Page 25 of 36 331 Hyalite Intake Rehabilitation Preliminary & Final Design – Technical Approach (Rev. 2) Prepare up to two bid addenda. One addendum is anticipated to include the pre-bid meeting minutes, and a second may be issued to address bidder questions or other revisions to the bidding documents. Assist the City with the bid opening and review submitted bids for completeness and responsiveness. The assumed level of effort accommodates review of up to five bids and is based on award to the lowest responsive, responsible bidder. Prepare a recommendation of award. Prepare conforming, Issued for Construction Drawings and Project Manual incorporating all bid addenda into the Issued for Bidding documents. Review insurance certificates and bond documentation for conformance with the Contract Documents. LIMITATIONS The following items are specifically excluded from DOWL’s scope of services: National Environmental Policy Act (NEPA): Preparation of documentation specific to NEPA Consultation (e.g., categorical exclusion support or an environmental assessment) is excluded from this scope of services. Based on coordination to date, DOWL understands that prior NEPA review has been completed by the USFS in association with the existing Special Use Permit (SUP) for the facility. The USFS is currently evaluating whether Phase 1 embankment rehabilitation work may qualify as a maintenance activity and proceed under the existing SUP and/or a USFS categorical exclusion. Should it be determined that additional NEPA review is required, DOWL could support the effort under a contract amendment. Construction Administration: Services during construction, including but not limited to submittal review, responding to requests for information (RFIs), site visits, or construction observation. Phase 2 Design and Permitting: Design, analysis, and permitting associated with Phase 2 of the Hyalite Intake Rehabilitation Project (spillway replacement). Page 26 of 36 332 Hyalite Intake Rehabilitation Preliminary & Final Design – Technical Approach (Rev. 2) DELIVERABLES AND SCHEDULE Table 3 lists the deliverables associated with this scope of work and identifies the corresponding anticipated submission dates. A more detailed schedule is included in Attachment 1. Table 3. Summary of Deliverables and Submission Dates Deliverable Anticipated Submission Date1 Deadline Borrow Area Technical Memorandum 10/20/2026 90 days from NTP Cultural Assessment 10/14/2026 90 days from NTP Biological Assessment 10/13/2026 90 days from NTP Preliminary Plans and Specifications 11/10/2026 120 days from NTP Preliminary Basis of Design Report 11/10/2026 120 days from NTP Draft Permits (Submit to City) 12/15/2026 150 days from NTP Final Permits (Submit to Agencies) 1/12/2027 14 days after receiving comments Final Plans and Specifications 1/19/2027 180 days from NTP Final Basis of Design Report 1/19/2027 180 days from NTP Draft Division 00 Document Set 2/23/2027 215 days from NTP IFB Drawings and Project Manual 3/30/2027 250 days from NTP 1Assuming a Notice to Proceed date of July 22, 2026. ESTIMATED LABOR, EXPENSES, AND SUBCONTRACTS Table 4 summarizes DOWL’s fee to complete this scope of work. A detailed breakdown of the fee, including personnel hours and expenses for each task, is included in Attachment 2. Table 4. Fee Summary Page 27 of 36 333 Hyalite Intake Rehabilitation Preliminary & Final Design – Technical Approach (Rev. 2) Attachment 1: Anticipated Schedule Page 28 of 36 334 Page 29 of 36Page 29 of 36335 Hyalite Intake Rehabilitation Preliminary & Final Design – Technical Approach (Rev. 2) Attachment 2: Fee Breakdown Page 30 of 36 336 Principal-in- Charge (Eng. IX) Project Manager (Eng. IV) Engineer VII Engineer III Engineer I Geologist III Engineer IV Survey Tech. I Engr. Tech. IV Envr. Spec. IX Envr. Spec. IV Envr. Spec. II Sub - Ethnoscience Water Water Geotech.Civil Water Geotech.Survey Survey CAD Environmental Environmental Environmental Cultural Survey 128,188.00$ 4,135.00$ 7,350.00$ 116,703.00$ 648 5,294.00$ -$ -$ 5,294.00$ 27 Filter Compatibility & Internal Drainage 1 2 8 16 5,294.00$ -$ -$ 5,294.00$ 27 Geotechnical Modeling (Liquefaction & Stability)1 2 8 16 13,197.00$ 2,125.00$ -$ 11,072.00$ 52 Borrow Material Coordination and Investigation 4 8 24 16 1 200 1,900$ 3,482.00$ -$ -$ 3,482.00$ 22 Erosion Protection (Riprap and Bedding)2 8 12 9,814.00$ 2,010.00$ -$ 7,804.00$ 52 4 24 24 4 6 400 28,080.00$ -$ -$ 28,080.00$ 168 Preliminary Drawings 8 24 4 12 24 96 8,456.00$ -$ -$ 8,456.00$ 46 Preliminary Techincal Specifications 2 8 8 16 12 7,240.00$ -$ -$ 7,240.00$ 36 Construction Sequencing & Constructibility Review 4 16 8 8 5,376.00$ -$ -$ 5,376.00$ 33 Cost Estimating 1 4 8 12 8 13,410.00$ -$ -$ 13,410.00$ 74 Preliminary Design Report 4 12 6 16 12 24 8,623.00$ -$ 7,350.00$ 1,273.00$ 5 Cultural Resources Survey and Report 1 4 7,000$ 7,698.00$ -$ -$ 7,698.00$ 46 Biological Assessment 2 4 16 24 1,998.00$ -$ -$ 1,998.00$ 10 Client Meetings Virtual Meetings (2 assumed)2 6 2 5,184.00$ -$ -$ 5,184.00$ 26 Project Management 2 24 5,042.00$ -$ -$ 5,042.00$ 24 Internal Coordination Meetings 4 6 2 2 4 2 4 67,405.00$ -$ -$ 67,405.00$ 382 18,260.00$ -$ -$ 18,260.00$ 112 Drawings 4 12 8 8 80 10,772.00$ -$ -$ 10,772.00$ 54 Technical Specifications 2 12 8 8 8 8 8 2,882.00$ -$ -$ 2,882.00$ 16 Cost Estimating 2 2 8 4 3,356.00$ -$ -$ 3,356.00$ 18 2 8 4 4 20,176.00$ -$ -$ 20,176.00$ 120 Draft Permits 2 16 4 4 6 32 56 4,386.00$ -$ -$ 4,386.00$ 25 Final Permits 1 2 2 12 8 999.00$ -$ -$ 999.00$ 5 Client Meetings Virtual Meetings (1 assumed)1 3 1 3,640.00$ -$ -$ 3,640.00$ 18 Project Management 2 16 2,934.00$ -$ -$ 2,934.00$ 14 Internal Coordination Meetings 2 4 2 2 2 2 37,894.00$ -$ -$ 37,894.00$ 203 6,840$ -$ -$ 6,840.00$ 32 8 24 3,848$ -$ -$ 3,848.00$ 24 Establish and Maintain Online Bidding Site (QuestCDN)8 16 2,120$ -$ -$ 2,120.00$ 12 Attend and Lead Pre-bid Meeting 8 4 1,802$ -$ -$ 1,802.00$ 10 Pre-bid Meeting Minutes 2 2 6 2,862$ -$ -$ 2,862.00$ 16 Q&A During Bidding 2 6 8 2,862$ -$ -$ 2,862.00$ 16 Bid Addenda 2 6 8 2,886$ -$ -$ 2,886.00$ 18 Bid Opening and Tabulation 6 12 7,356$ -$ -$ 7,356.00$ 36 Review Bids and Make Recommendation of Award 12 12 12 1,710$ -$ -$ 1,710.00$ 8 Review Insurance Certs, bonds, etc.2 6 3,788$ -$ -$ 3,788.00$ 22 Conforming Set of Drawings and Specifications 2 4 16 1,820$ -$ -$ 1,820.00$ 9 1 8 82 286 78 110 183 56 24 24 204 30 68 88 4 7 600 1,900$ 7,000.00$ 276$ 193$ 237$ 171$ 144$ 171$ 193$ 100$ 154$ 270$ 166$ 149$ 310$ 80$ 0.725$ 1$ 1.05 233,487.00$ 4,135.00$ 7,350.00$ 222,002.00$ 1,233 22,632$ 55,198$ 18,486$ 18,810$ 26,352$ 9,576$ 4,632$ 2,400$ 31,416$ 8,100$ 11,288$ 13,112$ 1,240$ 560$ 435.00$ 1,900$ 7,350.00$ 222,002.00$ 4,135.00$ 7,350.00$ 233,487.00$ DOWL Labor Subtotal 222,002.00$ Total Hours/Units Unit Rate Amount Task Preliminary Design Final Design Bidding and Division 00 Support Permitting Project Management Project Management Analysis & Design Survey Preliminary Plans and Specifications 233,487.00$ 4,135.00$ 7,350.00$ 1,233 Subtotal DOWL Labor Subtotal DOWL Expenses Subtotal Subconsultants TOTAL Hyalite Intake Rehabilitation - Preliminary & Final Design Fee Item Cost Expenses Subtotal Subcontract Subtotal DOWL Labor Hours Lodging (nights) Per Diem (days)Mileage Laboratory Testing Preliminary Design Report Biological & Cultural Assess. Final Design Final Design Report Division 00 Support Project Management Bidding Page 31 of 36Page 31 of 36 337 EXHIBIT B: ENGINEER’S STANDARD HOURLY RATES Page 32 of 36Page 32 of 36 338 Montana Fee Schedule Effective July 5, 2026 Until Further Notice 1 | Page MONTANA FEE SCHEDULE Personnel Billing Rates Personnel are identified on our invoices by name and/or labor category. Labor Category Rate Labor Category Rate Accounting Manager $204 Accounting Technician $132 Administrative Assistant $105 Administrative Manager $138 Biologist I $144 Biologist II $154 Biologist III $166 Biologist IV $176 Biologist V $226 CAD Drafter I $116 CAD Drafter II $132 CAD Drafter III $144 CAD Drafter IV $154 CAD Drafter V $166 Senior CAD Drafter $188 Civil and Transportation Designer $149 Senior Civil and Transportation Designer $188 Contract Administrator I $176 Contract Administrator II $204 Corporate Development Manager $254 Cultural Resources Specialist I $132 Cultural Resources Specialist II $154 Cultural Resources Specialist III $160 Cultural Resources Specialist IV $198 Cultural Resources Specialist V $215 Cultural Resources Specialist VI $236 Cultural Resources Specialist VII $248 Cultural Resources Specialist VIII $265 Document Production Supervisor $166 Engineer I $144 Engineer II $154 Engineer III $171 Engineer IV $193 Engineer V $215 Engineer VI $226 Engineer VII $237 Engineer VIII $248 Engineer IX $276 Engineer X $292 Engineering Technician I $110 Engineering Technician II $127 Engineering Technician III $138 Engineering Technician IV $154 Engineering Technician V $171 Engineering Technician VI $196 Environmental Specialist I $132 Environmental Specialist II $149 Environmental Specialist III $154 Environmental Specialist IV $166 Environmental Specialist V $171 Environmental Specialist VI $210 Environmental Specialist VII $232 Environmental Specialist VIII $248 Environmental Specialist IX $270 Environmental Specialist X $292 Field Project Representative I $127 Field Project Representative II $138 Field Project Representative III $171 Field Project Representative IV $188 Field Project Representative V $221 Geologist I $149 Geologist II $160 Geologist III $171 Geologist IV $193 Geologist V $226 Geophysicist I $180 Geophysicist II $200 Geophysicist III $215 Page 33 of 36Page 33 of 36 339 Montana Fee Schedule Effective July 5, 2026 Until Further Notice Labor Category Rate Labor Category Rate 2 | Page Geophysicist IV $235 Geophysicist V $260 GIS Coordinator $193 GIS Manager $209 GIS Specialist $160 GIS Technician $122 Graphic Designer $166 Senior Graphic Designer $194 Hydrogeologist I $154 Hydrogeologist II $182 Hydrogeologist III $225 Senior Hydrogeologist $262 Intern I $100 Intern II $116 Laboratory Manager $150 Laboratory Supervisor $128 Landscape Architect I $144 Landscape Architect II $160 Landscape Architect III $176 Landscape Architect IV $193 Landscape Architect V $210 Landscape Architect VI $221 Landscape Architect VII $232 Landscape Designer I $105 Landscape Designer II $127 Marketing Assistant $116 Marketing Coordinator $154 Marketing & Administrative Manager $248 Materials Technician I $105 Materials Technician II $116 Lead Materials Technician $127 Senior Materials Technician $138 Materials Manager $144 Planner I $132 Planner II $160 Planner III $176 Planner IV $193 Planner V $210 Planner VI $221 Planner VII $232 Planner VIII $248 Planner IX $265 Planner X $309 Planning Technician $122 Professional Land Surveyor I $132 Professional Land Surveyor II $144 Professional Land Surveyor III $154 Professional Land Surveyor IV $166 Professional Land Surveyor V $176 Professional Land Surveyor VI $187 Professional Land Surveyor VII $198 Professional Land Surveyor VIII $215 Professional Land Surveyor IX $232 Professional Land Surveyor X $252 Professional Land Surveyor XI $281 Project Administrator $149 Project Assistant I $127 Project Assistant II $144 Project Controller $182 Senior Project Controller $204 Project Manager I $176 Project Manager II $193 Project Manager III $210 Project Manager IV $226 Project Manager V $243 Project Manager VI $259 Project Manager VII $276 Proposal Manager $194 Senior Proposal Manager $236 Public Involvement Assistant $127 Public Involvement Coordinator $173 Public Involvement Planner $149 Public Involvement Program Manager $221 Real Estate Services Manager $198 Right of Way Agent I $138 Right of Way Agent II $154 Right of Way Agent III $171 Right of Way Agent IV $188 Page 34 of 36Page 34 of 36 340 Montana Fee Schedule Effective July 5, 2026 Until Further Notice Labor Category Rate Labor Category Rate 3 | Page Right of Way Agent V $204 Right of Way Agent VI $247 Right of Way Assistant $127 Risk Manager $221 Senior Manager I $265 Senior Manager II $287 Senior Manager III $298 Senior Manager IV $326 Senior Manager V $348 Senior Manager VI $370 Survey Technician I $100 Survey Technician II $105 Survey Technician III $110 Survey Technician IV $127 Survey Technician IX $188 Survey Technician V $132 Survey Technician VI $144 Survey Technician VII $160 Survey Technician VIII $176 Survey Technician -- Supervisor $173 Systems Administrator $171 Technical Coordinator $204 Utility Operator $160 Water Resource Specialist $215 Water Rights Specialist I $176 Water Rights Specialist II $210 Water Rights Specialist III $243 Water Rights Technician I $116 Water Rights Technician II $127 Water Rights Technician III $138 Survey Crews One-Person Survey Crew = $176 / hour One-Person Survey Crew GPS/Robotics = $198 / hour Two-Person Survey Crew = $265 / hour Two-Person Survey Crew (PLS + LSIT) = $309 / hour Two-Person Survey Crew GPS/Robotics = $281 / hour Three-Person Survey Crew = $386 / hour Travel, Mileage, and Miscellaneous Lodging = Cost per night Airfare = Cost Vehicle Usage – Passenger Cars = $1.20/mile Vehicle Usage – Trucks & SUV’s = $1.40/mile Printing/Supplies/Phone/Fax/Postage = Note 3 In-House Usage Charges = Note 4 Per Diem Unless otherwise specified contractually, per diem will be billed when travel is more than 50 miles from the office during a meal allowance period of three or more consecutive hours or involves an overnight stay. The three meal allowance periods are breakfast (midnight to 10:00 a.m.), lunch (10:00 a.m. to 3:00 p.m.), and dinner (3:00 p.m. to midnight). Per diem will be charged using the most recently published federal travel rate for each location. • Per diem allowances by city: https://www.gsa.gov/travel/plan-book/per-diem-rates Page 35 of 36Page 35 of 36 341 Montana Fee Schedule Effective July 5, 2026 Until Further Notice 4 | Page Notes 1. DOWL’s Professional Services Fee Schedule is subject to adjustment each year or at the end of a contract period, whichever is appropriate. Should adjustments be anticipated or required, such adjustments will not affect existing contracts without prior agreement between Client and DOWL. 2. Straight-time rates are given. Multiply by 1.5 for overtime rates. Overtime rates will be applied at the rate prescribed by applicable state law. 3. Direct reimbursable expenses such as travel, freight, subcontractors, and request beyond those requests considered reasonable by the project manager for phone/fax/postage, office supplies, reproduction and photography, and laboratory analysis will be billed at cost plus the negotiated markup. 4. In-house equipment usage charges or specialized software/equipment that are not separately stated on the fee schedule will be negotiated at rates deemed fair and reasonable. 5. Late charges will be assessed on the unpaid balance of all accounts not paid within 30 days of the billing date, at a rate of 1.0 percent per month (12% per year). Page 36 of 36Page 36 of 36 342 Memorandum REPORT TO:City Commission FROM:Griffin Nielsen, Water Resource Engineer Shawn Kohtz, Director of Utilities SUBJECT:Authorize the City Manager to sign Amendment 2 to Task Order 4 of the Professional Services Master Task Order Agreement with HDR Engineering, Inc., providing engineering services for the East Gallatin River Bank 3 Restoration Project, Capital Improvement Plan (CIP) Project WW111 MEETING DATE:July 21, 2026 AGENDA ITEM TYPE:Agreement - Vendor/Contract RECOMMENDATION:Authorize the City Manager to sign Amendment 2 to Task Order 4 of the Professional Services Master Task Order Agreement with HDR Engineering, Inc., providing engineering services for the East Gallatin River Bank 3 Restoration Project, Capital Improvement Plan (CIP) Project WW111. STRATEGIC PLAN:4.3 Strategic Infrastructure Choices: Prioritize long-term investment and maintenance for existing and new infrastructure. BACKGROUND:HDR Engineering provides professional engineering services on an on-call basis for the Bozeman Water Reclamation Facility (WRF) and the East Gallatin River under a Master Task Order Professional Services Agreement, authorized by the City Commission on June 3, 2025. Attached is Amendment No. 2 to Task Order 4, which provides construction oversight services for the East Gallatin River Streambank Erosion Protection Project, Capital Improvement Plan (CIP) Project No. WW111. The City awarded the construction contract for the project to Olympus Technical Services on March 24th, 2026. Construction has been completed. Amendment 2 expands the task order with HDR to cover additional effort that was needed for inspection and construction engineering services to ensure the project is built per plan, due to construction exceeding the original schedule. UNRESOLVED ISSUES:None ALTERNATIVES:As suggested by the Commission FISCAL EFFECTS:Amendment No. 2 adds a cost of $20,434.00, bringing the task order total to $147,001.00. Funding is provided from the Wastewater Fund for CIP No. 343 WW111, which has an available project budget of $427,678, as such adequate funding exists. Attachments: Task Order 4_WRF OnCall_HDR_East Gallatin River Bank 3_Amendment 2.pdf Report compiled on: July 6, 2026 344 AMENDMENT NO. 02 TASK ORDER NO. 04 FOR ENGINEERING SERVICES EAST GALLATIN RIVER RESTORATION (BANK 3) DESIGN WHEREAS: HDR ENGINEERING, INC. ("HDR") entered into an Agreement on August 22, 2025 to perform engineering services for the City of Bozeman ("CITY"); The CITY desires to amend this Agreement in order for HDR to perform services beyond the construction duration previously contemplated; HDR is willing to amend the agreement and perform the additional engineering services during construction. Initially the construction duration was assumed to take 3 weeks. Based on the schedule provided 6/1/2026, the contractor intends to be finished with construction 6/12/2026 with a construction duration of 5 weeks. This amendment will extend the construction engineering services through end of construction. In addition, this amendment will cover additional time to provide as-built drawings, post-construction photos to FWP, and a letter to the floodplain administrator certifying the project was built to plans and specifications. NOW, THEREFORE, HDR and the CITY do hereby agree: The Agreement and the terms and conditions therein shall remain unchanged other than those sections and exhibits listed below; See attached ATTACHMENT 1: Hour and expense projection. COMPENSATION: The anticipated level of effort for the task is increased by the attached hours spreadsheet, to be billed as time and materials, not to exceed. Original Compensation: $91,261.00 Amendment 01: $35,306.00 Amendment 02: $20,434.00 Total Compensation: $147,001.00 345 IN WITNESS WHEREOF, the parties hereto have executed this Amendment as of the day and year written below: HDR ENGINEERING, INC. ("HDR") City of Bozeman ("CITY") By:____________________________ By:_______________________________ Title: Vice President Title:______________________________ Date:_________________________ Date:_____________________________ 346 * * Direct expenses cover travel of Senior Engineer to and from Bozeman and Helena for periodic site visits. 347 BILLING CLASSIFICATION Principal/ Sr. Technical Advisor 250.00$ -400.00$ Sr. Engineer/ Sr. Project Manager 250.00$ -400.00$ Project Manager 180.00$ -350.00$ Project Engineer 150.00$ -250.00$ Design Engineer/EIT 100.00$ -200.00$ CADD/GIS/Technician 100.00$ -200.00$ Controls/Integration 100.00$ -300.00$ Project Admin and Support 85.00$ -200.00$ Environmental Specialist 100.00$ -250.00$ Strategic Comm/Graphics 100.00$ -250.00$ Construction Management/Inspection 100.00$ -300.00$ Economics/Project Controls 100.00$ -300.00$ Right-of-Way Specialist 100.00$ -250.00$ SUBSISTENCE (PER DIEM) TRAVEL Vehicles $0.88 /mile Rental Vehicles & Aircraft $Actual Cost /mile MONTANA AREA Direct project expenses will be charged at the rates listed below unless a separate rate is negotiated for a specific project. 2026 CHARGEABLE EXPENSE SCHEDULE Subsistence such as meals and lodging while out on a project will be charged at actual cost or at the per diem rate negotiated for a specific project. 2026 HOURLY RATE SCHEDULE RATE RANGES Travel expenses will be charged at the following rates unless a separate rate is negotiated for a specific 348 TELEPHONE/FAX/POSTAGE SPECIAL EQUIPMENT CHARGES GPS - Handheld $20 /hr. Survey Equipment $50 /hr. UTV $350 /day Other equipment to be determined as necessary SURVEYING SUPPLIES (Includes: Flagging, Stakes, Etc.)$50 /mile SUBCONSULTANTS OVERHEAD Overhead costs, such as rent, insurance, utilities, office furniture, employee benefits, and taxes are included in the hourly billing rates. Long distance calls, telegrams, fax, cellular phone, and any special class postage will be charged at 2026 CHARGEABLE EXPENSE SCHEDULE (continued) Subconsultants and expenses may be subject to markup 349 Memorandum REPORT TO:City Commission FROM:David Fine, Economic Development Manager Brian Guyer, Community Development Manager SUBJECT:Authorize the City Manager to sign Task Order 4 with Cushing Terrell for Fowler Neighborhood Design Workshop MEETING DATE:July 21, 2026 AGENDA ITEM TYPE:Agreement - Vendor/Contract RECOMMENDATION:Authorize the City Manager to sign Task Order 4 with Cushing Terrell for Fowler Neighborhood Design Workshop STRATEGIC PLAN:4.5 Housing and Transportation Choices: Vigorously encourage, through a wide variety of actions, the development of sustainable and lasting housing options for underserved individuals and families and improve mobility options that accommodate all travel modes. BACKGROUND:The Fowler Neighborhood is envisioned as an affordable, for-sale, community land trust development on city-owned land. The City of Bozeman has been in a process of listening and public engagement for the Fowler Neighborhood project since summer 2025. The next phase of the engagement process includes design workshops with the City's architecture team at Cushing Terrell. The sessions will include neighbors, housing practitioners, city staff and the architecture team. A major goal of the session is to develop enough core design concepts to pursue the appropriate zoning designation for the property. Cushing Terrell will conduct two community workshops in collaboration with the City of Bozeman Economic Development Department and Whole System Performance for the Fowler Neighborhood project. The workshops will consist of one public morning session, followed by an internal afternoon and next-day morning work session, followed by a public afternoon/early evening session. Prior to the workshops, Cushing Terrell will prepare materials to be used during the public sessions. Following the workshops, Cushing Terrell and the City of Bozeman Economic Development Department will discuss next steps for annexation and zoning of the Fowler Neighborhood property. UNRESOLVED ISSUES:None at this time. 350 ALTERNATIVES:As suggested by the City Commission. FISCAL EFFECTS: Cushing Terrell will bill for its services on a lump sum fee of $25,000 and Reimbursables billed as incurred estimated at $4,500. Cushing Terrell shall submit invoices to the City of Bozeman for work accomplished during each calendar month. The amount of each monthly invoice shall be determined on the percentage of fee spent for the month of services. Monthly invoices shall include, separately listed, any charges for services for which time charges and/or unit costs shall apply. The provisions of the Professional Services Agreement govern the Work. Funding for this work is included in the Community Housing Fund budget. Attachments: CT_URD_Task_Order_4.docx Report compiled on: July 10, 2026 351 Docusign Envelope ID: 7801109E-18FB-4F0B-96D4-E06016B6B526 Task Order Number # 4 City of Bozeman Urban Renewal District Term Contract PROJECT: Professional Design Services for the Fowler Neighborhood Community Engagement Issued under the authority of Urban Renewal District Term Contract Professional Services Agreement with Cushing Terrell for Architectural and Engineering Services. This Task Order is dated July 9th, 2026, between the City of Bozeman and Cushing Terrell. The following representatives have been designated for the work performed under this Task Order: City: David Fine, Economic Development Director Contractor: Alex Russell, Principal SCOPE OF WORK: Cushing Terrell will conduct two community workshops in collaboration with the City of Bozeman Economic Development Department and Whole System Performance for the Fowler Neighborhood project. The workshops will consist of one public morning session, followed by an internal afternoon and next-day morning work session, followed by a public afternoon/early evening session. Prior to the workshops, Cushing Terrell will prepare materials to be used during the public sessions. Following the workshops, Cushing Terrell and the City of Bozeman Economic Development Department will discuss next steps for annexation and zoning of the Fowler Neighborhood property. COMPENSATION: Cushing Terrell will bill for its services on a lump sum fee of $25,000 and Reimbursables billed as incurred estimated at $4,500. Cushing Terrell shall submit invoices to the City of Bozeman for work accomplished during each calendar month. The amount of each monthly invoice shall be determined on the percentage of fee spent for the month of services. Monthly invoices shall include, separately listed, any charges for services for which time charges and/or unit costs shall apply. The provisions of the Professional Services Agreement govern the Work. 352 Docusign Envelope ID: 7801109E-18FB-4F0B-96D4-E06016B6B526 IN WITNESS WHEREOF, the parties authorized to commit resources of the parties have executed this Task Order: City of Bozeman Cushing Terrell Chuck Winn, Interim City Manager Alex Russell, Principal 353 Memorandum REPORT TO:City Commission FROM:Natalie Meyer, Sustainability Program Manager Cola Rowley, Assistant City Manager SUBJECT:Authorize the City Manager to Sign Addendum 3 to the License Agreement with NorthWestern Energy for the Bozeman Solar Project at the Water Reclamation Facility Extending the License Term for an Additional Two Years or Until the Property is Transferred MEETING DATE:July 21, 2026 AGENDA ITEM TYPE:Agreement - Property RECOMMENDATION:Authorize the City Manager to Sign Addendum 3 to the License Agreement with NorthWestern Energy for the Bozeman Solar Project at the Water Reclamation Facility extending the license term for an additional two years or until the property is transferred. STRATEGIC PLAN:6.3 Climate Action: Reduce community and municipal Greenhouse Gas (GHG) emissions, increase the supply of clean and renewable energy; foster related businesses. BACKGROUND:On February 8, 2016 the City Commission approved a Memorandum of Understanding (MOU) and license agreement with NorthWestern Energy, whereby the City licensed 2.3 acres at the Water Reclamation Facility for the 385 kW Bozeman Solar Project. The project was a 5-year educational pilot program between NorthWestern Energy, the City of Bozeman, and Montana State University to evaluate long-term sustainable models for the integration of renewable energy to the grid. The City Commission approved Addendum 2 of the License Agreement on May 11, 2021, extending the term of the agreement for an additional five years. Addendum 3 proposes to extend the license term for an additional two years or until the land is transferred to Gallatin County to develop the City-County Solid Waste Transfer Station, which will reduce trips to the landfill, save money on fuel and maintenance, and reduce greenhouse gas emissions. Per the September 27, 2023 Memorandum of Understanding , the County and Solid Waste District agree to work with NorthWestern Energy in the event the Transfer Station impacts the Bozeman Solar Project and agree to include, to the extent feasible, a similarly sized project on the site if the current solar project needs to be relocated. 354 In addition, the City of Bozeman plans to install a new 544 kW solar array that is scheduled for completion in the summer of 2027. The solar array will directly offset electricity use at the Water Reclamation Facility and reduce long-term utility costs for City of Bozeman ratepayers. UNRESOLVED ISSUES:None. ALTERNATIVES:As recommended by the City Commission. FISCAL EFFECTS:The addendum does not amend the financial terms of the license agreement. The Bozeman Solar Project generates electricity that is sent to the grid, offering indirect renewable energy benefits to NorthWestern customers, but there is no direct financial benefit to City of Bozeman ratepayers. Attachments: Bozeman Solar License Agmt_3rd Addendum.pdf Report compiled on: July 9, 2026 355 3rd Amendment to LICENSE Agreement for Bozeman Solar Project FY 2026 Page 1 of 2 THIRD ADDENDUM TO BOZEMAN SOLAR PROJECT LICENSE AGREEMENT THIS THIRD AMENDMENT TO THE PROFESSIONAL SERVICES AGREEMENT FOR THE BOZEMAN SOLAR PROJECT LICENSE AGREEMENT dated February 8, 2016 (the “Agreement”) is made and entered into this 21st day of July, 2026, 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 NorthWestern Corporation, a Delaware corporation, d/b/a Northwestern Energy, 11 E. Park St., Butte, MT 59701-1711, hereinafter referred to as “Northwestern,” and collectively with the City the “Parties.” In consideration of the mutual covenants and agreements herein contained, the receipt and sufficiency whereof being hereby acknowledged, the parties hereto agree to amend the Agreement as follows: 1. Extension of Term. Paragraph 4 of the Agreement is extended for two years until February 8, 2028, or until the City’s ownership interest in the Water Reclamation Facility property is transferred, whichever occurs first. 2. Agreement still valid. All remaining terms and provisions of the Agreement, and the First and Second Addendum remain in effect. **** END OF AGREEMENT EXCEPT FOR SIGNATURES **** 356 3rd Amendment to LICENSE Agreement for Bozeman Solar Project FY 2026 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 NorthWestern Corp, a Delaware corp. d/b/a Northwestern Energy By________________________________ By_____________________________ Chuck Winn, City Manager Print Name: Title: APPROVED AS TO FORM By_______________________________ Greg Sullivan, Bozeman City Attorney 357 Memorandum REPORT TO:City Commission FROM:Bernie Massey, Assistant Treasurer Laurae Clark, Treasurer Melissa Hodnett, Finance Director SUBJECT:Resolution for the Intent to Create a Special Improvement Lighting District 799 for ANNE Subdivision Phase II LOT 5C-1 AND Open Space A-1 MEETING DATE:July 21, 2026 AGENDA ITEM TYPE:Resolution RECOMMENDATION:Adopt Commission Resolution for the Intent to Create Special Improvement Lighting District 799 for ANNE SUB PH II LOT 5C-1 AND OS A-1 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:7-12-4301. Special improvement districts for lighting streets authorized. (1) The council of any city or town is authorized to: (a) create special improvement districts embracing any street or streets or public highway therein or portions thereof and property adjacent thereto or property which may be declared by said council to be benefited by the improvement to be made for the purpose of lighting such street or streets or public highway; (b) require that all or any portion of the cost of installing and maintaining such lighting system be paid by the owners of the property embraced within the boundaries of such districts; and (c) assess and collect such portion of such cost by special assessment against said property. (2) The governing body may create special lighting districts on any street or streets or public highway for the purpose of lighting them and assess the costs for installation and maintenance to property abutting thereto and collect the costs by special assessment against the property UNRESOLVED ISSUES:None ALTERNATIVES:As suggested by the City Commission. FISCAL EFFECTS:As a result of creating this lighting district, the city will pay the associated power bills and schedule system maintenance. We will recover these costs 358 by billing property owners each year on their City Assessment bill. It is estimated to cost $100.21 per acre within the district or $232.80 annually for the entire district. Attachments: Resolution 2026-XX Intent to Create SILD 799.docx Schedule A.pdf Exhibit B.pdf Report compiled on: July 9, 2026 359 Resolution of Intent to Create Lighting District 799 RESOLUTION A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF BOZEMAN, MONTANA, , RELATING TO SPECIAL IMPROVEMENT LIGHTING DISTRICT 799 (ANNE SUB PH II LOT 5C-1 AND OS A-1) DECLARING IT TO BE THE INTENTION OF THE CITY COMMISSION TO CREATE THE DISTRICT FOR THE PURPOSE OF MAINTAINING LIGHTING IMPROVEMENTS AND ASSESSING THE COSTS OF MAINTENANCE AND ENERGY THEREFOR TO BENEFITED PROPERTY BY THE LEVY OF SPECIAL ASSESSMENT. NOW, THEREFORE, BE IT RESOLVED by the City Commission of the City of Bozeman, Montana, to wit: Section 1 Intention to Create District; Proposed Improvements. It is the intention of this Commission to create and establish in the City under Montana Code Annotated, Title 7, Chapter 12, Part 43, as amended, a special improvement lighting district to serve ANNE SUB PH II LOT 5C- 1 AND OS A-1 (the “District”) for the purpose of maintenance and energy costs. The district will pay the maintenance and energy costs for: two (2) 120-watt Signify Roadway Road Focus Cobrahead medium Luminaire on a Tapered Upsweep arm with forest green finish mounted on 30-foot straight poles. The initial average monthly charge per fixture per month (the “Monthly Charge”) is estimated as follows: $9.70 per 120-watt LED fixture for an estimated total annual cost of $232.80. 360 Resolution of Intent to Create Lighting District 799 Section 2 Number of District. The District, if the same shall be created and established, shall be known and designated as Special Improvement Lighting District 799 (ANNE SUB PH II LOT 5C-1 AND OS A-1) of the City of Bozeman, Montana. Section 3 Boundaries of District. The limits and boundaries of the District are depicted on a map attached as Exhibit A hereto (which is hereby incorporated herein and made a part hereof), which boundaries are designated and confirmed as the boundaries of the District. A listing of each of the properties in the District is shown on Exhibit B hereto (which is hereby incorporated herein and made a part hereof). Section 4 Benefited Property. The District and territory included within the limits and boundaries described in Section 3 and as shown on Exhibit A are hereby declared to be the special lighting district and the territory which will benefit and be benefited by the District and will be assessed for the costs of the District as described in Section 1. The District, in the opinion of this Commission, are of more than local and ordinary benefit. The property included within said limits and boundaries is hereby declared to be the property benefited by the District. Section 5 Assessment Methods. All properties within the District are to be assessed for a portion of the maintenance and energy costs, as specified herein. The maintenance and energy costs shall be 361 Resolution of Intent to Create Lighting District 799 assessed against the property in the District benefiting, based on the actual area method of assessment described in Sections 7-12-4323, MCA, as particularly applied and set forth in this Section 5. The annual maintenance and energy costs are estimated at $1,479.26, and shall be assessed against each lot, tract or parcel of land in the District for that part of the costs that the area of such lot, tract or parcel bears to the total area of all lots, tracts or parcels of land in the District, exclusive of streets, avenues and alleys. The total area of the District to be assessed is 2.3231 acres, or 101,194.24 square feet, exclusive of parks and open space. The initial costs per acre shall be $100.21 or $0.002301 per square foot annually. Section 6 Payment of Assessments. Special assessments for the annual maintenance and energy costs are estimated at $232.80, plus any increases, as may be permitted by the Public Service Commission, and any additional authorized charges shall be levied each year against all properties in the District and shall be payable in equal semiannual installments. The first year of special assessment billing will include an additional amount not to exceed $500 for publication and mailing associated with creation of the District which shall be assessed in the same manner as the improvements resulting in a cost not to exceed $315.44 per acre, or $0.007242 per square foot. Section 7 Extraordinary Repair or Replacement. The maintenance and energy costs and assessments set forth in Section 1 and 5 are based on normal conditions and do not cover charges for repair and/or replacement. The City may make an additional charge to the District for costs of labor and actual material costs for repairs and/or replacement of the fixtures for damage caused by third 362 Resolution of Intent to Create Lighting District 799 parties and not paid by such third parties. The City will assess such costs and charges against the properties in the District in the same manner as the other assessment is made. Section 8 Discontinuation of District. If at any time after the initial term of the District a petition is presented to the City Commission, signed by the owners or agents of more than three-fourths of the total amount of property within the District, asking that the maintenance and operation of the special lighting system and the furnishing of electrical current in the district be discontinued, or if a majority of the City Commission votes to discontinue the District, the City Commission shall, by resolution, provide for discontinuing the maintenance and operation of the lighting system. If the Commission has, prior to the presentation of a petition or by a majority vote of the Commission to discontinue the District, entered into any contract for the maintenance and operation of the lighting system, the maintenance and operation may not be discontinued until after the expiration of the contract. Section 9 Public Hearing; Protests. Written protests against the creation or modification of the District and the costs may be filed by an agent, person, firm, or corporation owning real property within the proposed District, whose property is liable to be assessed for the costs. Protests must be delivered to the City Clerk at City Hall, 121 N Rouse Ave, Bozeman, MT not later than 5:00 p.m. on Monday, August 10, 2026. If protests are received by the deadline, the City Commission will hear and pass upon all written protests against the creation or extension of the district, on Tuesday, August 18, 2026, at 6:00 pm in the City Commission Room, Bozeman City Hall, 121 N Rouse Ave, Bozeman, Montana. If no protests are received, the City Commission may, on the same date, time, and location, pass 363 Resolution of Intent to Create Lighting District 799 a Resolution authorizing the creation or modification of the district. Section 10 Notice of Passage of Resolution of Intention. The City Clerk is hereby authorized and directed to publish or cause to be published a copy of a notice of the passage of this resolution in the Bozeman Daily Chronicle, a newspaper of general circulation in the county on July 25, 2026 and August 01, 2026, in the form and manner prescribed by law, and to mail or cause to be mailed a copy of said notice to every person, firm, corporation, or the agent of such person, firm, or corporation having real property within the District listed in his or her name upon the last completed assessment roll for state, county, and school district taxes, at his last-known address, on or before the same day such notice is first published. PASSED, ADOPTED, AND APPROVED by the City Commission of the City of Bozeman, Montana, at a regular session thereof held on the 21st day of July 2026. ___________________________________ JOEY MORRISON Mayor ATTEST: ___________________________________ MIKE MAAS City Clerk APPROVED AS TO FORM: ___________________________________ GREG SULLIVAN City Attorney 364 Resolution of Intent to Create Lighting District 799 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 2026-XX, entitled: A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF BOZEMAN, MONTANA, RELATING TO SPECIAL IMPROVEMENT LIGHTING DISTRICT 799 (ANNE SUB PH II LOT 5C-1 AND OS A-1) DECLARING IT TO BE THE INTENTION OF THE CITY COMMISSION TO CREATE THE DISTRICT FOR THE PURPOSE OF MAINTAINING LIGHTING IMPROVEMENTS AND ASSESSING THE COSTS FOR MAINTENANCE AND ENERGY THEREFOR TO BENEFITED PROPERTY BY THE LEVY OF SPECIAL ASSESSMENT, (the “Resolution”), on file in the original records of the City in my legal custody; that the Resolution was duly adopted by the City Commission of the City of Bozeman at a meeting on July 21, 2026, and that the meeting was duly held by the City Commission and was attended throughout by a quorum, pursuant to call and notice of such meeting given as required by law; and that the Resolution has not as of the date hereof been amended or repealed. I further certify that, upon vote being taken on the Resolution at said meeting, the following Commissioners voted in favor thereof: _____ ____________________ ; voted against the same: ___________ ___ ; abstained from voting thereon: ________________ ; or were absent: _______________ . WITNESS my hand officially this 21st day of July 2026. ___________________________________ MIKE MAAS City Clerk 365 Resolution of Intent to Create Lighting District 799 NOTICE OF PASSAGE OF RESOLUTION OF INTENTION TO CREATE SPECIAL IMPROVEMENT LIGHTING DISTRICT 799 (ANNE SUB PH II LOT 5C-1 AND OS A-1) CITY OF BOZEMAN, MONTANA NOTICE IS HEREBY GIVEN that on July 21, 2026, the City Commission (the “Commission”) of the City of Bozeman, Montana (the “City”), adopted a Resolution of Intention 2026-XX to create Special Improvement Lighting District 799 (the “District”) for the purpose of maintaining lighting and assessing the cost for maintenance and energy to ANNE SUB PH II LOT 5C-1 AND OS A-1, and paying maintenance and energy costs relating thereto. A complete copy of the Resolution of Intention (the “Resolution”) 2026-XX is on file with the City Clerk which more specifically describes the nature of the costs, the boundaries and the area included in the District, the location of the Improvements and other matters pertaining thereto and further particulars. A list of properties in the District and the amount of the initial assessment accompanies this notice. The Resolution and accompanying exhibits may be also viewed on the City’s website at www.bozeman.net. The district will pay the maintenance and energy costs for: two (2) 120-watt Signify Roadway Road Focus Cobrahead medium Luminaire on a Tapered Upsweep arm with forest green finish mounted on 30-foot straight poles. The initial average monthly charge per fixture per month (the “Monthly Charge”) is estimated as follows: $9.70 per 120-watt LED fixture for an estimated total annual cost of $232.80. The total area of the District to be assessed is 2.3231 acres, 101,194.24 square feet, exclusive of parks and open space. The initial costs of the Improvements per acre shall be 366 Resolution of Intent to Create Lighting District 799 $232.80. The first year of special assessment billing will include an additional amount not to exceed $500 for publication and mailing associated with creation of the District which shall be assessed in the same manner as the Improvements resulting in a cost not to exceed $315.44 per acre, or $0.007242 per square foot. Written protests against the creation or extension of the District and the costs may be filed by an agent, person, firm or corporation owning real property within the proposed District whose property is liable to be assessed for the costs. Such protests must be delivered to the City Clerk at City Hall, 121 N Rouse Ave, Bozeman, Montana, not later than 5:00 p.m., M.T., on August 10, 2026. If protests are received by the deadline, the City Commission will hear and pass upon all written protests against the creation or extension of the District, or the Improvements, on Tuesday, August 18, 2026, at 6:00 p.m., in the Commission Room at City Hall 121 N Rouse Ave, Bozeman, Montana. If no protests are received, the City Commission may, on the same date, time, and location, pass a Resolution authorizing the creation or modification of the district. Further information regarding the proposed District or other matters in respect thereof may be obtained from the City Clerk at City Hall, 121 N Rouse Ave, Bozeman, Montana or by telephone at (406) 582-2320. DATED this 21st day of July 2026. MIKE MAAS City Clerk City of Bozeman Legal Ad Publication Dates: Saturday, July 25, 2026 367 Resolution of Intent to Create Lighting District 799 Saturday, August 1, 2026 368 Resolution of Intent to Create Lighting District 799 RESOLUTION 2026-XX Resolution of Intent to create Special Improvement Lighting District 799 for the purpose of maintaining lighting and assessing the cost for maintenance and energy to ANNE SUB PH II LOT 5C-1 AND OS A-1 and paying maintenance and energy costs relating thereto. AFFIDAVIT OF MAILING MIKE MAAS, City Clerk, being first duly sworn, says: That I cause to be mailed first class the Notice in regard to the owners in Special Improvement Lighting District 799, as listed in Exhibit "B", on Friday, July 24, 2026, directed to the owners at the addresses shown on Exhibit "B". ______________________________ MIKE MAAS City Clerk 369 370 Lot Address Sq Ft Owner Owner Address City State Zip 5C-1 1625 N 25th Ave 101194 Bozeman Aparment Holdings LLC 5635 NE River Rd Sau Rapids MN 56379 101,194.00 Total Lot Square Footage 2.32 Total Lot Acreage Annie Sub Ph II Lot 5C-1 and OS A-1 Bozeman Apartment Holdings LLC Annie Sub Ph II Lot 5C-1 and OS A-1 371 Memorandum REPORT TO:City Commission FROM:Assistant City Manager Cola Rowley City Manager Chuck Winn SUBJECT:Advisory Board Work Session MEETING DATE:July 21, 2026 AGENDA ITEM TYPE:Administration RECOMMENDATION:Provide direction on boards. STRATEGIC PLAN:1.2 Community Engagement: Broaden and deepen engagement of the community in city government, innovating methods for inviting input from the community and stakeholders. BACKGROUND:In 2021, the City consolidated numerous advisory boards, with a commitment to revisit the changes to ensure key functions remained intact. In alignment with that commitment, the Commission included this review in the 2026–27 Commission Priority: Engage Meaningfully with the Community. The scope included the five “superboards” created through consolidation (Community Development, Transportation, Sustainability, Economic Vitality, and Urban Parks and Forestry) and the independently structured Historic Preservation Advisory Board. See Figure A for the board consolidation map. This report reflects input from staff liaisons, the Clerk's Office, board chairs, board members, and Commissioners, along with a review of foundational documents and public comment received to date (Note: this was public comment associated with the adoption of the priority; specific public comment will be gathered at a Commission work session and appropriate alterations can be made to this draft.) The late winter/spring 2026 review found that the 2021 consolidation was largely successful in establishing a more streamlined structure that continues to address major community issues. Furthermore, fewer boards have likely made public engagement clearer and helped concentrate high-quality candidates. Several opportunities emerged to strengthen overall board functionality, particularly through structural adjustments, clearer processes, improved communication, and enhanced training and support. These improvements aim to reinforce alignment with Commission priorities, clarify roles, authority, and level of autonomy, enhance effectiveness, and improve meaningful participation, ensuring full use of board members' creativity and subject matter expertise. Appendix A lists all "considerations" in the report 372 and Appendix B provides a guide for a work session discussion. The considerations focus on: • Structural and organizational adjustments • Process and communication improvements • Modifications affecting autonomy and meaningful participation • Enhanced training, education, and expectation setting UNRESOLVED ISSUES:The report outlines numerous items for the Commission's consideration. ALTERNATIVES:The Commission holds significant discretion over advisory boards, allowing for a wide range of possible alternatives. FISCAL EFFECTS:Dependent on resources dedicated to the work. Attachments: Advisory Board Report Board Consolidation Crosswalk Appendix A: Considerations Appendix B: Work Session Guide Report compiled on: July 2, 2026 373 1 Report on the Review of City Board Consolidation I. Executive Summary In 2021, the City consolidated numerous advisory boards, with a commitment to revisit the changes to ensure key functions remained intact. In alignment with that commitment, the Commission included this review in the 2026–27 Commission Priority: Engage Meaningfully with the Community. The scope included the flve “superboards” created through consolidation (Community Development, Transportation, Sustainability, Economic Vitality, and Urban Parks and Forestry) and the independently structured Historic Preservation Advisory Board. See Figure A for the board consolidation map. This report refiects input from staff liaisons, the Clerk's Office, board chairs, board members, and Commissioners, along with a review of foundational documents and public comment received to date (Note: this was public comment associated with the adoption of the priority; speciflc public comment will be gathered at a Commission work session and appropriate alterations can be made to this draft.) The late winter/spring 2026 review found that the 2021 consolidation was largely successful in establishing a more streamlined structure that continues to address major community issues. Furthermore, fewer boards have likely made public engagement clearer and helped concentrate high-quality candidates. Several opportunities emerged to strengthen overall board functionality, particularly through structural adjustments, clearer processes, improved communication, and enhanced training and support. These improvements aim to reinforce alignment with Commission priorities, clarify roles, authority, and level of autonomy, enhance effectiveness, and improve meaningful participation, ensuring full use of board members' creativity and subject matter expertise. Appendix A lists all "considerations" in the report and Appendix B provides a guide for a work session discussion. The considerations focus on: • Structural and organizational adjustments • Process and communication improvements • Modiflcations affecting autonomy and meaningful participation • Enhanced training, education, and expectation setting 374 2 II. Structure and Organization It is important to note that three of the superboards (Economic Vitality, Sustainability, and Urban Parks and Forestry) are entirely discretionary. In contrast, both the Community Development Board and the Transportation Board have functions deflned in statute, which creates an authority differential among boards. It is important for both board members and the public to understand this distinction to avoid frustration about why certain boards have less authority than others. 1. Specific Boards/Functions a. Community Development Board The requirement that a Commissioner serve as a voting member on the Community Development Board was removed under the Montana Land Use Planning Act (MLUPA). Consideration: Remove the Commissioner as a voting member and add one additional citizen member to maintain a seven-member board. b. Recreation Program Alignment Recreation is currently housed under the Sustainability Board but aligns more closely with Urban Parks and Forestry from a staffing and operational standpoint. Public confusion has occurred, particularly during the swim center closure, when Sustainability staff repeatedly redirected inquiries to Recreation staff. There have been few if any recreation-related issues addressed by the Board since consolidation. Consideration: Move recreation under the Urban Parks and Forestry Board to better align with staffing and service delivery or remove the recreation function from board oversight entirely. c. Economic Vitality Board This board's focus areas include community housing, economic development, Belonging in Bozeman, and public art. Functionally addressing these disparate items has been difficult. i. Community Housing Function This topic is a community and Commission priority. Consideration: Elevate or restructure to enhance this function. ii. Public Art Function 375 3 The Annual Beautiflcation Awards have not been consistently occurring, nor has public art been meaningfully addressed by this board since consolidation. The City's "1% for Art" program, led by Facilities staff, has assumed the lead in advancing work speciflc to this Ordinance. The Facilities Division is not involved in work related to public art overall, which includes installations at the Library, within parklands, and other public venues. Consideration: Public art and the Annual Beautiflcation Awards could move to another board with more similar functions, the Board could actively re-engage in this (i.e. do the Awards, work on a policy or procedures on who, what, when, where, and how art is permitted to be installed, displayed, and maintained on public property) or public art could cease to reside within an advisory board structure. iii. Belonging Function Greater engagement is desired in this area. A staff lead for Belonging in Bozeman was recently hired, providing opportunity for improvement. Consideration: Consider renaming, redeflning, or restructuring to more clearly refiect the scope and responsibilities of this function. d. Sustainability Board The City’s Sustainability Division is structured to integrate its functions across all departments, and sustainability is explicitly included as a purpose within every Board resolution. Currently, Sustainability staff identify relevant items from Commission priorities, the City Manager’s work plan, and their own work plans and bring those items forward to the Sustainability Board. Items originating from other boards may also be referred to the Sustainability Board when applicable. Consideration: Consider whether the current structure is preferred for sustainability work. Integration could be approached in several ways: i. Sustainability staff and/or Commission could review all other board work plans and proactively identify projects or topics where Board involvement is warranted. ii. Sustainability focused initiatives could utilize ad hoc committees to support specialized project needs. 376 4 iii. Boards could be required to have at least one member with sustainability expertise to ensure that sustainability principles are consistently incorporated into each board’s work. e. Audit Committee The Audit Committee was eliminated during the 2021 advisory board consolidation effort. The committee’s activities were limited and mainly involved reviewing the annual audit report and participating in the selection process for external audit services. Currently, the full Commission reviews the annual audit presentation and related materials directly and is actively engaged in those discussions. Given the Commission’s direct engagement in audit matters and the limited scope of the former committee, it is understandable that the committee was deemed to have limited added value during the consolidation process. That said, audit committees can provide meaningful oversight when their responsibilities are clearly deflned, narrowly focused, and complementary to existing governance processes. Consideration: If the Commission chooses to explore additional audit oversight in the future, it may be helpful to deflne a focused scope that supports governance without duplicating existing Commission or staff activities. 2. Standing vs. Ad-hoc Boards Standing boards are appropriate for ongoing oversight, long-term direction, consistent expertise, and when their tasks are connected to statutory or regulatory requirements. Ad-hoc boards are appropriate for issues that are temporary, narrowly scoped, or project-based and may be a useful tool to address evolving needs. Any new board or committee is expected to require approximately 7-9 hours of staff time to prepare for each meeting, not including follow-up work. Consideration: Determine which issues warrant a standing board and identify opportunities suitable for an ad-hoc board, task force, or working group with a deflned endpoint. Topics that emerged include affordable housing, water, sustainability projects, disability/accessibility, and traffic safety—particularly bicycle and pedestrian safety. 3. Term lengths, limits, and gap in service 377 5 Term lengths and limits for each board are outlined in their respective creating Resolutions or other formative documents. The purely advisory superboards, per their creating resolutions, have two-year terms and a two-term limit. The Community Development Board has three-year terms for all but the Commission member, who has a two-year term, and are limited to two terms via resolution. The Parking Commission (Transportation Board) has four-year terms via statute and a two-term limit via resolution. HPAB has two-year terms with no term limits via municipal code. For all boards, the gap in service is equal to one term per Resolution 5323. Consideration: Ensure term lengths and limits and gap in service requirements align with current Commission preferences if not in confiict with statute. 4. High-Performing Boards (Resolution 5323) Boards perform at their best when they have clarity of purpose and the autonomy to exercise judgment to maximize their ability to contribute strategically. High-performing boards require trust, transparency, and the space to operate as thoughtful partners in governance. There is considerable concern that boards are not sufficiently autonomous, trusted, or respected, which may lead to underutilization of their expertise and skills, missed opportunities, and the potential for low morale and high turnover. Furthermore, some feel their rights to participation and free speech are limited by the rules governing the boards. While some of these issues could be mitigated through improved processes and communication as discussed in later sections, several speciflc provisions in Resolution 5323 also contribute to this perception and could be amended as desired. Of note is the "One Body, One Voice" principle, which is interpreted differently by various stakeholders. If it is retained, it should be clearly deflned and accompanied by consistently communicated expectations. Resolutions creating the flve superboards specify that the Commission can remove board members for any reason. This provides a clear mechanism for addressing board member behavior, evolving needs, or changing board dynamics. Consideration: Review the following components of Resolution 5323 to ensure they meet the spirit and intent of the current Commission: a. Section 1.4 and Appendix A Section 2A require Board Officers (Chair and Vice-Chair) to be appointed by the Commission. Boards electing their own Officers is a common practice to consider. 378 6 b. Section 2.3 states Boards should communicate with the Commission only through approved minutes, work plans, progress reports, or formal Considerations/resolutions voted on by the Board. c. Section 2.6 requires adherence to the "One Body, One Voice" principle. d. Section 3 Norms of Behavior has several redundant statements about not directing staff. A single clear reference may suffice. e. Section 3.3.c addresses debating staff judgement and could be re-worded to foster trust and respect and avoid discouraging healthy debate. f. Section 3.3.h has redundancies with other sections and to some seems extensive; this section could be replaced with something succinct and clear such as "Board interactions with staff during board meetings shall remain professional and respectful." g. Section 3.3.ii prohibits board members from attending public meetings called by staff unless requested by the City Manager. h. Appendix A Section 4B allows a majority of the board to remove an agenda item. Under Section 4D, a majority of the board has the ability to call a special meeting. Thus, it makes sense that in Section 4B a majority of the board could also request an item to be added to an agenda (and addressed after the proper notice period – such that the board could vote to address an item at the next meeting, etc.) i. Appendix A Section 5E states that subcommittees shall only be formed with the express authorization of the City Commission and limits their duration to six months or until the completion of an assigned speciflc task. The presence of these dual timeframes can cause confusion. Although some dislike the stringent control of subcommittee formation, it is in alignment with the City's Charter which states "Subcommittees of existing boards …may be appointed by the City Commission without the necessity of public solicitation." 5. Meeting Components a. Quorum Difficulty fllling board vacancies can lead to prolonged unfllled seats and challenges achieving quorum. Absenteeism can further complicate the ability to consistently obtain a quorum. While some boards do not address time-sensitive items, others do. For example, lack of quorum has led to multiple Parking Appeals being granted by default this past year, as the Parking Commission did not have quorum to act on them within the allowed timeframe. According to 379 7 Resolution 2025-63, one member participating remotely may be considered toward the quorum. The Historic Preservation Advisory Board has a deflnition in Ordinance of "at least 50 percent of appointed members" and, for the Community Development Board, MCA 76-25-104 deflnes quorum as "a majority of currently appointed voting members". Other boards use the deflnition in Resolution 5323 which specifles "a majority of all members;" this is interpreted to mean all authorized positions. Considerations: i. The deflnition of quorum in Resolution 5323 could be revised to be a majority of appointed members rather than authorized members. ii. All members should actively participate in the recruitment of qualifled candidates, so a vacancy does not sit open with no candidates for a prolonged period. iii. Emphasize attendance in the recruitment and selection process. If absenteeism reaches the threshold for removal via Resolution 5323 Appendix A Section 12A, it should be acted upon to maintain operations. iv. Allow more than one remote participant to count toward quorum. This requires careful consideration and should be balanced with the relative importance of in-person attendance. b. Public Comment There is confusion regarding which items public comment will be accepted for, or whether the public should make comment during the "General" public comment section. The template for the City Commission was recently updated to label this clearly. Consideration: Share the new template with boards and include in onboarding and training. c. Minutes Meeting videos serve as the official record, and extremely minimal written minutes are produced. Some would like written summary minutes – in all cases or only in cases of a dissenting opinion. 380 8 Consideration: Summary minutes could be created. Rather than adding workload for staff, a Board Secretary could be appointed or artiflcial intelligence could be leveraged. d. Meeting Materials Some board members report that receiving materials the Friday before the meeting does not allow sufficient time for review or for any additional outreach or engagement. Consideration: Provide meeting materials at least seven (7) days in advance whenever feasible. This may be difficult for staff. III. Process and Communication Improvements Several concerns about board functioning stemmed from uncertainty about how to proceed, which leads to inefficiency and, at times, an inability to achieve desired outcomes due to process and communication challenges. 1. Processes a. Work Plans and Reporting Boards may set work plans before Commission priorities are adopted, board work plans are not being "accepted" or discussed by the Commission (the flrst year they were approved on the Consent agenda), and board reporting is not occurring as outlined in the Onboarding Manual. There is also no process for boards to bring new ideas or opportunities forward to the Commission, either during the priority-setting process or during the biennium, or vice versa (Commission to request board input), nor to ensure the Commission is notifled when a split vote or dissenting opinion occurred. Considerations: i. Review current processes in the Onboarding Manual for work plans and annual reporting. Determine when and how the Commission would like to be involved in Board work plans; boards could beneflt from more explicit guidance on the priorities and work plan topics the Commission would like to see go before each board. 381 9 ii. Establish deflned processes to obtain board input on speciflc topics desired by the Commission and to allow for ideas, opportunities, and proposals to generate from the boards to the Commission outside the work plan process. iii. Implement a process to ensure the Commission is notifled when a split vote or dissenting opinion occurred. iv. Ensure all City staff Engagement Plans consider which boards their project should go through. v. Deflne processes for inter-board coordination including joint meetings; staff should coordinate more closely to identify shared interests early and align timelines appropriately. b. Recruitment Recruitment practices are not consistent across boards and interview questions may not be helpful for selecting board members with the desired qualiflcations or characteristics. Considerations: i. It is the Commission liaison's role to coordinate interviews. ii. Ensure board chairs are participating in interviews and that all members are aware they may assist in recruiting new members. iii. Clarify whether it is appropriate for staff to recruit members. iv. Improve interview questions to help screen for the appropriate qualiflcations or characteristics to align with expectations and needs of a speciflc board. c. Procedures Advisory boards operate under rules of procedure almost identical to the City Commission; albeit without the express option of holding work sessions. The formality of the current setting can stifie open dialogue and limit the thoughtful, nuanced discussions through which advisory boards can provide their greatest value. Consideration: Procedural and cultural adjustments related to formality could mitigate any loss of functionality created by the current environment. If an in-depth discussion is needed that does not flt the time constraints of the 382 10 regular meeting, consider the ability to add work sessions, additional meetings, or subcommittees. 2. Strengthening Communication Communication pathways are not always clear or effective, which can signiflcantly limit efficiency and transparency. Some of this can be improved through deflned processes, training, and clear expectations. The six-month check-ins required by Resolution 5323 between board members, the Commission liaison, and the staff liaison are not consistently occurring, and there is a practice that prevents Boards from having joint communications and interactions, further limiting coordination. Considerations: a. Remove six-month check-ins from the Resolution or reinstate the practice. Consider a method to check in with Boards or individual members on an on- going basis. b. Allow boards to meet jointly on topics of shared interest as appropriate through a deflned process. Staff liaisons should guide what this looks like to avoid confusion, duplication, confiict, or unnecessary additional workload. c. Staff liaisons could improve internal coordination to enhance consistency and strengthen communication among boards. d. Consider annual joint work sessions to improve communication and alignment; chairs/Commission, staff liaisons/chairs, and all three were suggested, as were biannual work sessions between each board and the Commission. IV. Autonomy and Meaningful Participation The lack of autonomy and purpose or meaning were recurring themes that arose throughout the interviews. There is general understanding that advisory boards are not meant to be fully autonomous; however, a clear desire exists for more than is currently felt to be available. As indicated, purpose and meaning can be partially imparted through structures and inclusive processes and communication. This section further examines tangible steps that may help increase a sense of purpose and meaning among board members. 1. Board Empowerment 383 11 Several board members report feeling disconnected and limited engagement from the Commission, a lack of awareness about City functions that affect their board's work, and few opportunities for meaningful participation. Considerations: a. Commission Liaisons should actively participate and engage with their boards and ensure two-way communication. Ensure updates are given during FYI or another mechanism is put in place so that the whole Commission stays familiar and consistently engages with board work. b. Staff liaisons could more proactively keep the board informed and involved in relevant progress and efforts. c. Boards may be empowered to ideate and collaborate more closely with the Commission. d. Shift the culture and/or expectation from the staff liaisons "leading or managing" the board to "supporting" the board. The Commission liaison and board chair may be best positioned to guide this shift, ensuring it does not lead to the board directing staff. 2. Board Operations Staff sometimes struggle to provide the level of information or work products that boards desire, as well as to develop meaningful agendas. There is recognition that staff may not have sufficient time to fully support all board requests. At the same time, there exists the desire for boards to be more autonomous, empowered, and actively engaged in productive work. In some cases, boards feel that items are brought to them too late in the process for their input to be truly impactful. It was noted that taking more formal votes would help increase their sense of purpose and direction, as would the ability to generate work and ideas. Considerations: a. Consider staff capacity constraints and the potential for increased board autonomy; members could take a more active role in agenda-setting, work product and ideation rather than relying entirely on staff. b. Find or create more engagement opportunities for boards as applicable; walking tours, tabling at events, and other community engagement opportunities for board members were noted. c. Engage boards earlier in project and policy development so their input meaningfully shapes outcomes. 384 12 d. All parties, including the City Commission, should proactively identify items that would beneflt from board input. Take votes on these matters. e. Alter standard meeting frequency to more closely match workload. f. Establish clear expectations and timelines for staff responses. g. Clarify which types of information requests are appropriate and ensure that they do not create undue staff burden or equate to the board directing staff. V. Training and Expectations 1. Onboarding Manual Updates The Onboarding Manual, created in 2021, contains much of the information that members indicated they want training or resources on. However, awareness of the Manual appears to be limited. Consideration: Update the Onboarding Manual to refiect current and/or desired practice; ensure all members receive and are trained on the Manual. 2. Trainings Not all training required under Resolution 5323 is currently being completed. While several informational documents exist, additional training and enhanced access could be beneflcial. Considerations: a. Ensure Belonging in Bozeman and Effective Meetings trainings are completed or remove speciflc trainings from the Resolution. b. Continue consistent onboarding practices. Offer refresher training. c. Staff Liaisons should provide consistent and, in some cases, more substantial onboarding speciflc to the work and function of their board. d. Add training on meeting procedures, facilitation basics, Ordinance 2157 regarding meeting decorum, and Robert's Rules. e. Evaluate what safety training is appropriate for each board. Ensure it is available in a timely manner as needed or requested. f. Develop a training portal and/or video modules. 3. Expanded Education and Expectation Setting 385 13 There is the opportunity for enhanced education and expectation-setting to support Boards in being high-performing. Consideration: Provide foundational education and expectation setting on: a. Relevant state law and the City’s form of government, including the authority limits of the Commission and boards i. This should include differences between boards with statutory functions and discretionary advisory boards/functions as well as open meeting laws. b. Roles and expectations of the Commission, City Manager, staff, staff liaison, Commission liaison, board officers, and advisory board members i. For example, clarify who is responsible for addressing situations in which someone steps outside their appropriate role. Assigning this responsibility to the staff liaison reinforces the perception that staff are "leading or managing" boards. (During the meeting it would be the Presiding Officer and would be the Commission Liaison for reinforcing norms of behavior and duties.) Addressing attendance and non-disclosure of potential confiicts of interest also arose. c. Expectations should be agreed upon and consistently communicated. Individual boards may vary, but central tenets should be reliably adhered to. The importance of clear expectations around the following were noted: i. The principle of "One Body, One Voice" or an alternative framework ii. The purpose and role of boards in supporting the Commission and the procedures and processes that promote this iii. The importance of coming prepared, fully engaging, and participating constructively, as well as meeting attendance expectations, including advance notice of absences VI. Conclusion The 2021 consolidation effort was largely successful in creating a more streamlined advisory board system that continued to address key community issues. However, the review identifled opportunities to strengthen overall board functionality, particularly regarding structures, processes/communication, level of autonomy, purpose, and training. 386 14 The considerations outlined in this report are intended to support a coordinated approach to structural reflnement, clearer processes, stronger communication practices, and improved onboarding, training, and expectation-setting. These reflnements aim to foster the autonomy and sense of purpose essential for a high-performing board. Together, these improvements can better position advisory boards to fully leverage the talent available within our community, effectively support the Commission’s priorities, and enhance public trust and engagement. 387 Figure A: 2021 Consolidation Map In addition to the boards above that remained independent, unaltered Boards include Urban Renewal Boards, Business Improvement District, Board of Ethics, and Inter-Neighborhood Council. The Audit Committee was eliminated in 2021. 2021 Proposed 2021 Actual Safe Community Board Impact Fee Advisory Committee Building Board of Appeals Fire Board of Appeals Police Commission Remained Independent Building Board of Appeals Fire Board of Appeals Police Commission Historic Preservation Advisory Board Library Board Community Development Board Historic Preservation Advisory Board Planning Board Zoning Commission Design Review Board Community Development Board Impact Fee Advisory Committee Planning Board Zoning Commission Design Review Board Cultural Services Board Beautification Advisory Board (awards) Library Board Public Art Recreation and Parks Advisory Board (recreation only) Economic Vitality Board Beautification Advisory Board (awards) Public Art Community Affordable Housing Advisory Board Economic Development Council Sustainability Board Community Affordable Housing Advisory Board Economic Development Council Beautification Advisory Board (clean-up work only) Climate Partners Working Group Sustainability Board Recreation and Parks Advisory Board (recreation only) Beautification Advisory Board (clean-up work only) Climate Partners Working Group Parks and Open Lands Board Tree Advisory Board Cemetery board Recreation and Parks Advisory Board (Parks only) Trails, Open Space and Parks Committee Urban Parks and Forestry Board Tree Advisory Board Cemetery board Recreation and Parks Advisory Board (Parks only) Trails, Open Space and Parks Committee Transportation Board Bozeman Area Bicycle Advisory Board Pedestrian Traffic Safety Committee Parking Commission Transportation Coordinating Committee Transportation Board Bozeman Area Bicycle Advisory Board Pedestrian Traffic Safety Committee Parking Commission (Transportation Coordinating Committee became MPO later) 388 A1 Appendix A: Considerations This appendix contains a list of all considerations from the report; no new content Structure and Organization a. Specific Boards/Functions a. Community Development Board Consideration: Remove the Commissioner as a voting member and add one additional citizen member to maintain a seven-member board. b. Recreation Program Alignment Consideration: Move recreation under the Urban Parks and Forestry Board to better align with staffing and service delivery or remove the recreation function from board oversight entirely. c. Economic Vitality Board i. Community Housing Function Consideration: Elevate or restructure to enhance this function. ii. Public Art Function Consideration: Public art and Annual Beautiflcation Awards functions could move to another board with more similar functions, the Board could actively re-engage in this (i.e. do the Awards, work on a policy or procedures on who, what, when, where, and how art is permitted to be installed, displayed, and maintained on public property) or public art could cease to reside within an advisory board structure. iii. Belonging Function Consideration: Consider renaming, redeflning, or restructuring to more clearly refiect the scope and responsibilities of this function. d. Sustainability Board Consideration: Consider whether the current structure is preferred for sustainability work. Integration could be approached in several ways: i. Sustainability staff and/or Commission could review all other board work plans and proactively identify projects or topics where Board involvement is warranted. ii. Sustainability focused initiatives could utilize ad hoc committees to support specialized project needs. 389 A2 iii. Boards could be required to have at least one member with sustainability expertise to ensure that sustainability principles are consistently incorporated into each board’s work. e. Audit Committee Consideration: If the Commission chooses to explore additional audit oversight in the future, it may be helpful to deflne a focused scope that supports governance without duplicating existing Commission or staff activities. b. Standing vs. Ad-hoc Boards Consideration: Determine which issues warrant a standing board and identify opportunities suitable for an ad-hoc board, task force, or working group with a deflned endpoint. Topics that emerged include affordable housing, water, disability/accessibility, and traffic safety—particularly bicycle and pedestrian safety. c. Term lengths, limits, and gap in service Consideration: Ensure term lengths and limits and gap in service requirements align with current Commission preferences if not in confiict with statute. d. High-Performing Boards (Resolution 5323) Considerations Consideration: Review the following components of Resolution 5323 to ensure they meet the spirit and intent of the current Commission: a. Section 1.4 and Appendix A Section 2A require Board Officers (Chair and Vice-Chair) to be appointed by the Commission. Boards electing their own Officers is a common practice to consider. b. Section 2.3 states Boards should communicate with the Commission only through approved minutes, work plans, progress reports, or formal Considerations/resolutions voted on by the Board. c. Section 2.6 requires adherence to the "One Body, One Voice" principle. d. Section 3 Norms of Behavior has several redundant statements about not directing staff. A single clear reference may suffice. e. Section 3.3.c addresses debating staff judgement and could be re-worded to foster trust and respect and avoid discouraging healthy debate. f. Section 3.3.h has redundancies with other sections and to some seems extensive; this section could be replaced with something succinct and clear such as "Board interactions with staff during board meetings shall remain professional and respectful." 390 A3 g. Section 3.3.ii prohibits board members from attending public meetings called by staff unless requested by the City Manager. h. Appendix A Section 4B allows a majority of the board to remove an agenda item. Under Section 4D, a majority of the board has the ability to call a special meeting. Thus, it makes sense that in Section 4B a majority of the board could also request an item to be added to an agenda (and addressed after the proper notice period – such that the board could vote to address an item at the next meeting, etc.) i. Appendix A Section 5E states that subcommittees shall only be formed with the express authorization of the City Commission and limits their duration to six months or until the completion of an assigned speciflc task. The presence of these dual timeframes can cause confusion. Although some dislike the stringent control of subcommittee formation, it is in alignment with the City's Charter which states "Subcommittees of existing boards …may be appointed by the City Commission without the necessity of public solicitation." 5. Meeting Components a. Quorum Considerations: i. The deflnition of quorum in Resolution 5323 could be revised to be a majority of appointed members rather than authorized members. ii. All members should actively participate in the recruitment of qualifled candidates, so a vacancy does not sit open with no candidates for a prolonged period. iii. Emphasize attendance in the recruitment and selection process. If absenteeism reaches the threshold for removal via Resolution 5323 Appendix A Section 12A, it should be acted upon to maintain operations. iv. Allow more than one remote participant to count toward quorum. This requires careful consideration and should be balanced with the relative importance of in-person attendance. b. Public Comment Consideration: Share the new template with boards and include in onboarding and training. c. Minutes 391 A4 Consideration: Summary minutes could be created. Rather than adding workload for staff, a Board Secretary could be appointed or artiflcial intelligence could be leveraged. d. Meeting Materials Consideration: Provide meeting materials at least seven (7) days in advance whenever feasible. This may be difficult for staff. Process and Communication Improvements 1. Processes a. Work Plans and Reporting Considerations: i. Review current processes in the Onboarding Manual for work plans and annual reporting. Determine when and how the Commission would like to be involved in board work plans; boards could beneflt from more explicit guidance on the priorities and work plan topics the Commission would like to see go before each board. ii. Establish deflned processes to obtain board input on speciflc topics desired by the Commission and to allow for ideas, opportunities, and proposals to generate from the boards to the Commission outside the work plan process. iii. Implement a process to ensure the Commission is notifled when a split vote or dissenting opinion occurred. iv. Ensure all City staff Engagement Plans consider which boards their project should go through. v. Deflne processes for inter-board coordination including joint meetings; staff should coordinate more closely to identify shared interests early and align timelines appropriately. b. Recruitment Considerations: i. It is the Commission liaison's role to coordinate interviews. ii. Ensure board chairs are participating in interviews and that all members are aware they may assist in recruiting new members. iii. Clarify whether it is appropriate for staff to recruit members. 392 A5 iv. Improve interview questions to help screen for the appropriate qualiflcations or characteristics to align with expectations and needs of a speciflc board. c. Procedures Consideration: Procedural and cultural adjustments related to formality could mitigate any loss of functionality created by the current environment. If an in-depth discussion is needed that does not flt the time constraints of the regular meeting, consider the ability to add work sessions, additional meetings, or subcommittees. 2. Strengthening Communication 1. General Considerations: i. Remove six-month check-ins from Resolution 5323 or reinstate the practice. Consider a method to check in with boards or individual members on an on-going basis. ii. Allow boards to meet jointly on topics of shared interest as appropriate through a deflned process. Staff liaisons should guide what this looks like to avoid confusion, duplication, confiict, or unnecessary additional workload. iii. Staff liaisons could improve internal coordination to enhance consistency and strengthen communication among boards. iv. Consider annual joint work sessions to improve communication and alignment; chairs/Commission, staff liaisons/chairs, and all three were suggested, as were biannual work sessions between each board and the Commission. Autonomy and Meaningful Participation 1. Board Empowerment Considerations: a. Commission liaisons should actively participate and engage with their boards and ensure two-way communication. Ensure updates are given during FYI or another mechanism is put in place so that the whole Commission stays familiar and consistently engages with board work. 393 A6 b. Staff liaisons could more proactively keep the board informed and involved in relevant progress and efforts. c. Boards may be empowered to ideate and collaborate more closely with the Commission. d. Shift the culture and/or expectation from the staff liaisons "leading or managing" the board to "supporting" the board. The Commission liaison and board chair may be best positioned to guide this shift, ensuring it does not lead to the board directing staff. 2. Board Operations Considerations: a. Consider staff capacity constraints and the potential for increased board autonomy; members could take a more active role in agenda-setting, work product and ideation rather than relying entirely on staff. b. Find or create more engagement opportunities for boards as applicable; walking tours, tabling at events, and other community engagement opportunities for board members were noted. c. Engage boards earlier in project and policy development so their input meaningfully shapes outcomes. d. All parties, including the City Commission, should proactively identify items that would beneflt from board input. Take votes on these matters. e. Alter standard meeting frequency to more closely match workload. f. Establish clear expectations and timelines for staff responses. g. Clarify which types of information requests are appropriate and ensure that they do not create undue staff burden or equate to the board directing staff. Training and Expectations 1. Onboarding Manual Updates Consideration: Update the Onboarding Manual to refiect current and/or desired practice; ensure all members receive and are trained on the Manual. 2. Trainings Considerations: a. Ensure Belonging in Bozeman and Effective Meetings trainings are completed or remove speciflc trainings from Resolution 5323. b. Continue consistent onboarding practices. Offer refresher training. 394 A7 c. Staff liaisons should provide consistent and, in some cases, more substantial onboarding speciflc to the work and function of their board. d. Add training on meeting procedures, facilitation basics, Ordinance 2157 regarding meeting decorum, and Robert's Rules. e. Evaluate what safety training is appropriate for each board. Ensure it is available in a timely manner as needed or requested. f. Develop a training portal and/or video modules. 3. Expanded Education and Expectation Setting Consideration: Provide foundational education and expectation setting on: a. Relevant state law and the City’s form of government, including the authority limits of the Commission and boards i. This should include differences between boards with statutory functions and discretionary advisory boards/functions as well as open meeting laws. b. Roles and expectations of the Commission, City Manager, staff, staff liaison, Commission liaison, board officers, and advisory board members i. For example, clarify who is responsible for addressing situations in which someone steps outside their appropriate role. Assigning this responsibility to the staff liaison reinforces the perception that staff are "leading or managing" boards. (During the meeting it would be the Presiding Officer and would be the Commission liaison for reinforcing norms of behavior and duties.) Addressing attendance and non-disclosure of potential confiicts of interest also arose. c. Expectations should be agreed upon and consistently communicated. Individual boards may vary, but central tenets should be reliably adhered to. The importance of clear expectations around the following were noted: i. The principle of "One Body, One Voice" or an alternative framework ii. The purpose and role of boards in supporting the Commission and the procedures and processes that promote this iii. The importance of coming prepared, fully engaging, and participating constructively, as well as meeting attendance expectations, including advance notice of absences 395 B1 Appendix B: Work Session Guide This Appendix is organized into broader questions for direction that staff will utilize to inform speciflc considerations, items where discreet decisions/direction are requested, and items that may need little/no discussion if agreeable. COMMISSION DISCUSSION AND DIRECTION REQUESTED Under each question are the considerations it aims to address. How should the boards be structured and how formally should they operate? Speciflc Boards/Functions, Standing vs Ad-Hoc Boards, and Processes • Remove the Commissioner as a voting member on the Community Development Board and add one additional citizen member to maintain a seven-member board. • Move recreation under the Urban Parks and Forestry Board to better align with staffing and service delivery or remove the recreation function from board oversight entirely. • Elevate or restructure the Economic Vitality board to enhance the housing function. • Public art and Annual Beautiflcation Awards functions could move to another board with more similar functions, the Board could actively re-engage in this, or Public Art could cease to reside within an advisory board structure. • Consider renaming, redeflning, or restructuring the Economic Vitality board to more clearly refiect the scope and responsibilities of the Belonging in Bozeman function. • Consider whether the current structure or other approaches are preferred for sustainability work. • Determine which issues warrant a standing board and identify opportunities suitable for an ad-hoc board, task force, or working group with a defined endpoint. Topics that emerged include affordable housing, water, disability/accessibility, and traffic safety—particularly bicycle and pedestrian safety. • Procedural and cultural adjustments related to formality could mitigate any loss of functionality created by the current environment. If an in-depth discussion is needed that does not flt the time constraints of the regular meeting, consider the ability to add work sessions, additional meetings, or subcommittees. How should communication with the Commission and among Boards be structured? Processes and Strengthening Communication • Establish deflned processes to obtain Board input on speciflc topics desired by the Commission and to allow for ideas, opportunities, and proposals to generate from the Boards to the Commission outside the work plan process. • Implement a process to ensure the Commission is notifled when a split vote or dissenting opinion occurred. 396 B2 • Boards may be empowered to ideate and collaborate more closely with the Commission. • Consider annual joint work sessions to improve communication and alignment; Chairs/Commission, Staff Liaisons/Chairs, and all three were suggested, as were individual work sessions biannually between each board and the Commission. • Allow boards to meet jointly on topics of shared interest as appropriate through a deflned process. Staff Liaisons should guide what this looks like to avoid confusion, duplication, confiict, or unnecessary additional workload. • Review current processes in the Onboarding Manual for work plans and annual reporting. Determine when and how the Commission would like to be involved in Board work plans; Boards could beneflt from more explicit guidance on the priorities and work plan topics the Commission would like to see go before each Board. • All parties, including the City Commission, should proactively identify items that would beneflt from board input. Take votes on these matters. What is the "right" amount of Board autonomy; how are purpose and meaning fostered? Board Empowerment and Operations; High-Performing Boards (Resolution 5323) • Commission liaisons should actively participate and engage with their boards and ensure two-way communication. Ensure updates are given during FYI or another mechanism is put in place so that the whole Commission stays familiar and consistently engages with board work. • Shift the culture and/or expectation from the staff liaisons "leading or managing" the board to "supporting" the board. The Commission liaison and board chair may be best positioned to guide this shift, ensuring it does not lead to the board directing staff. • Consider staff capacity constraints and the potential for increased board autonomy; members could take a more active role in agenda-setting, work product and ideation rather than relying entirely on staff. • Find or create more engagement opportunities for boards as applicable; walking tours, tabling at events, and other community engagement opportunities for board members were noted. • Engage Boards earlier in project and policy development so their input meaningfully shapes outcomes. • Review the components of Resolution 5323 listed on page 5-6 to ensure they meet the spirit and intent of the current Commission. REQUEST DISCREET DIRECTION Specific Boards/Functions • If any speciflc board restructuring considerations were not addressed during that discussion, please provide direction here. 397 B3 Term lengths, limits, and gap in service • Ensure term lengths and limits and gap in service requirements align with current Commission preferences. Meeting Components • The deflnition of quorum in Resolution 5323 could be revised to be a majority of appointed members rather than authorized members. • Allow more than one remote participant to count toward quorum. This requires careful consideration and should be balanced with the relative importance of in- person attendance. • Summary minutes could be created. Rather than adding workload for staff, a Board Secretary could be appointed or artiflcial intelligence could be leveraged. Processes and Strengthening Communication • Clarify whether it is appropriate for staff to recruit members. • Remove six-month check-ins from Resolution 5323 or reinstate the practice. Consider a method to check in with Boards or individual members on an on-going basis. Trainings • Ensure Belonging in Bozeman and Effective Meetings trainings are completed or remove speciflc trainings from Resolution 5323. Other • If there are discreet items from Resolution 5323 listed on page 5-6 you do not feel were addressed under the "autonomy and purpose" question, please address. OPERATIONAL ITEMS These may require little to no discussion if agreeable; address as desired Specific Boards/Functions • If the Commission chooses to explore additional audit oversight in the future, it may be helpful to deflne a focused scope for an Audit Committee that supports governance without duplicating existing Commission or staff activities. Meeting Components 398 B4 • All members should actively participate in the recruitment of qualifled candidates, so a vacancy does not sit open with no candidates for a prolonged period. • Emphasize attendance in the recruitment and selection process. If absenteeism reaches the threshold for removal via Resolution 5323 Appendix A Section 12A, it should be acted upon to maintain operations. • Share the new agenda template clarifying when public comment is taken with boards and include in onboarding and training. • Provide meeting materials at least seven (7) days in advance whenever feasible. This may be difficult for staff. Processes and Communication • Ensure all City staff Engagement Plans consider which boards their project should go through. • Deflne processes for inter-board coordination including joint meetings; staff should coordinate more closely to identify shared interests early and align timelines appropriately. • It is the Commission liaison's role to coordinate interviews. • Ensure board chairs are participating in interviews and that all members are aware they may assist in recruiting new members. • Improve interview questions to help screen for the appropriate qualiflcations or characteristics to align with expectations and needs of a speciflc board. • Staff liaisons could improve internal coordination to enhance consistency and strengthen communication among boards. Board Empowerment and Operations • Staff liaisons could more proactively keep the board informed and involved in relevant progress and efforts. • Alter standard meeting frequency to more closely match workload. • Establish clear expectations and timelines for staff responses. • Clarify which types of information requests are appropriate and ensure that they do not create undue staff burden or equate to the board directing staff. Onboarding Manual Updates • Update the Onboarding Manual to refiect current and/or desired practice; ensure all members receive and are trained on the Manual. Trainings • Continue consistent onboarding practices. Offer refresher training. 399 B5 • Staff Liaisons should provide consistent and, in some cases, more substantial onboarding speciflc to the work and function of their board. • Add training on meeting procedures, facilitation basics, Ordinance 2157 regarding meeting decorum, and Robert's Rules. • Evaluate what safety training is appropriate for each board. Ensure it is available in a timely manner as needed or requested. • Develop a training portal and/or video modules. Expanded Education and Expectation Setting Provide foundational education and expectation setting on: • Relevant state law and the City’s form of government, including the authority limits of the Commission and boards and differences between boards with statutory functions and discretionary advisory boards/functions as well as open meeting laws. • Roles and expectations of the Commission, City Manager, staff, staff liaison, Commission liaison, board officers, and advisory board members. For example, clarify who is responsible for addressing situations in which someone steps outside their appropriate role. Assigning this responsibility to the staff liaison reinforces the perception that staff are "leading or managing" boards. (During the meeting it would be the Presiding Officer and would be the Commission liaison for reinforcing norms of behavior and duties.) Addressing attendance and non-disclosure of potential confiicts of interest also arose. • Concepts including One Body, One Voice, purpose and roles, and level of engagement should have agreed upon expectations and be consistently communicated. 400 Memorandum REPORT TO:City Commission FROM:Mayor Joey Morrison SUBJECT:Mayoral Proclamation Proclaiming Americans with Disabilities Act Month MEETING DATE:July 21, 2026 AGENDA ITEM TYPE:Administration RECOMMENDATION:Mayoral Proclamation Proclaiming Americans with Disabilities Act Month STRATEGIC PLAN:1.1 Outreach: Continue to strengthen and innovate in how we deliver information to the community and our partners. BACKGROUND:To proclaim July as American's with Disabilities Act Month UNRESOLVED ISSUES:none ALTERNATIVES:none FISCAL EFFECTS:none Attachments: 2026 Proclamation of 36th Anniversary of ADA Month.docx Report compiled on: July 15, 2026 401 Proclamation Regarding 36th Anniversary of ADA Month WHEREAS, the Americans with Disabilities Act (ADA) was passed on July 26, 1990 to ensure the civil rights of citizens with disabilities. WHEREAS, Bozeman affirms the principals of equality and inclusion for persons with disabilities as set forth for the State of Montana and as embodied in the ADA, the laws of the State of Montana and ordinances of Bozeman. WHEREAS, numerous organizations in Bozeman and Montana work with constituents and communities to bring forth the promise of hope and freedom that is envisioned by the passage of the ADA. WHEREAS, July 26, 2026, celebrates the 36th Anniversary of the Americans with Disabilities Act with the 1st Annual Bozeman ADA Celebration. NOW THEREFORE, I, Joey Morrison, the Mayor of Bozeman, MT, hereby extend greetings and best wishes to all observing July 26, 2026 as Americans with Disabilities Act Awareness Day. Signed _________________________________ Joey Morrison Mayor Bozeman, Montana 402 Memorandum REPORT TO:City Commission FROM:Nicholas Ross - Director of Transportation and Engineering SUBJECT:Kagy Boulevard Construction Update MEETING DATE:July 21, 2026 AGENDA ITEM TYPE:Plan/Report/Study RECOMMENDATION:Participate in an update on the construction phase of the Kagy Boulevard Reconstruction project. STRATEGIC PLAN:4.3 Strategic Infrastructure Choices: Prioritize long-term investment and maintenance for existing and new infrastructure. BACKGROUND:The Kagy Boulevard Reconstruction project from S 19th to S Willson has been previously approved for design and funding by Bozeman City Commission. Led by the Montana Department of Transportation, the project has recently hit a milestone through the award of a design/build contract to CK May Excavating of Belgrade for construction. This special presentation will provide a progress update and anticipated construction schedule for completion of the project in 2027 and 2028. UNRESOLVED ISSUES:None. ALTERNATIVES:None. FISCAL EFFECTS:None. Report compiled on: June 9, 2026 403 Memorandum REPORT TO:City Commission FROM:Nick Ross, Transportation & Engineering Department Director Emiliano Esparza, City Engineer Taylor Lonsdale, Transportation Engineer SUBJECT:Approval of the Community Engagement Plan for the 2027 Transportation Master Plan Update MEETING DATE:July 21, 2026 AGENDA ITEM TYPE:Citizen Advisory Board/Commission RECOMMENDATION:Consider the Motion: I move to approve the Community Engagement Plan for the 2027 Transportation Master Plan Update. STRATEGIC PLAN:1.2 Community Engagement: Broaden and deepen engagement of the community in city government, innovating methods for inviting input from the community and stakeholders. BACKGROUND:The Department of Transportation and Engineering is beginning to prepare the 2027 Transportation Master Plan Update, which will provide a comprehensive update of the 2017 Transportation Master Plan, herein called “Transportation Master Plan (TMP)”. The TMP serves as a strategic guide for transportation infrastructure investments based on transportation network needs and associated decision-making principles that incorporate community feedback. The TMP addresses local transportation issues including operational efficiency, safety, sustainability, complete streets, funding, transportation demand management, and multi-modal connections. The TMP also serves as the City’s compliant transportation issue plan under the Montana Land Use Planning Act (MLUPA). The 2027 Transportation Master Plan Update aims to align the existing TMP with current policy and land use planning based upon the holistic vision of the City Community Plan. The TMP update will be accomplished through community engagement, innovative operational analyses of existing and future transportation demand, socioeconomic analysis of current population and economic trends, an evaluation and prioritization of proposed projects, and an ecological screening of sensitive lands. A comprehensive transportation master plan is needed to address the needs of the community and to help direct future growth through innovative and community-wide planning. Gathering input from the public is a large component of the 2027 404 Transportation Master Plan Update and requires a community engagement plan to be adopted by the City Commission. The City has made a commitment to increase community engagement in decision making processes. From the adoption of the 2018 Strategic Plan to the Engage Bozeman platform in 2021, the City has established guiding principles to help develop tools and techniques for effective engagement efforts. Furthermore, as a community that must adhere to the MLUPA, any City led project is required to develop a community engagement plan that identifies and establishes a process and methods for public engagement. The Department of Transportation and Engineering has prepared a community engagement plan for the 2027 Transportation Master Plan Update to build awareness and through public feedback enhance the goals and blueprint for guiding transportation infrastructure investments, while meeting City and MLUPA requirements for community engagement. TMP engagement activities will be intentionally combined with engagement opportunities for the city’s ongoing SS4A Safety Action Plan to improve coordination, provide clear communication with the community, and reduce engagement fatigue. This engagement plan has been developed with input and support for approval by the Transportation Advisory Board during their June 2026 meeting. City staff will present the community engagement plan for the 2027 Transportation Master Plan Update to the City Commission for final adoption. UNRESOLVED ISSUES:None. ALTERNATIVES:As identified by the City Commission. FISCAL EFFECTS:Funding for the 2027 Transportation Master Plan Update including components of the community engagement plan is included in the approved FY27-28 Arterial and Collector District biennium budget under Transportation Master Plan (TMP27) with a total project budget of $250,000. Attachments: Community_Engagement_Plan_2027_TMP_Update__July_2026_FINAL.docx Report compiled on: June 29, 2026 405 COMMUNITY ENGAGEMENT PLAN 2027 TRANSPORTATION MASTER PLAN UPDATE Project Leads: Nick Ross, Transportation & Engineering Department Director Emiliano Esparza, City Engineer Taylor Lonsdale, Transportation Engineer PROJECT OVERVIEW The 2027 Transportation Master Plan Update will provide a comprehensive update of the 2017 Transportation Master Plan, herein called “Transportation Master Plan (TMP)”. The TMP serves as a strategic guide for transportation infrastructure investments based on transportation network needs and associated decision-making principles that incorporate community feedback. The TMP is a comprehensive plan that identifies community goals and improvements to the transportation infrastructure and services within the City of Bozeman (City) and portions within Gallatin County that are likely to include expansions to the transportation network. The TMP addresses capacity, operations, safety, sustainability, funding, transportation demand management, and multi-modal connections. The TMP also serves as the City’s compliant transportation issue plan under the Montana Land Use Planning Act (MLUPA). The 2027 Transportation Master Plan Update aims to align the existing TMP with current policy and land use planning based upon the holistic vision of the City Community Plan. The TMP update will be accomplished through community engagement, innovative operational analyses of existing and future transportation demand, socioeconomic analysis of current population and economic trends, an evaluation and prioritization of proposed projects, and an ecological screening of sensitive lands. A comprehensive transportation master plan is needed to address the needs of the community and to help direct future growth through innovative and community-wide planning. TMP engagement activities will be intentionally combined with engagement opportunities for the city’s ongoing SS4A Safety Action Plan to improve coordination, provide clear communication with the community, and reduce engagement fatigue. 406 COMMUNITY ENGAGEMENT PURPOSE The purpose of community engagement in preparing the 2027 Transportation Master Plan Update is to build awareness, gather meaningful input, and through public feedback enhance the goals and blueprint for guiding transportation infrastructure investments based on system needs and associated decision- making principles. The community engagement process for the 2027 Transportation Master Plan Update will establish a City wide all-inclusive and transparent dialogue between City staff, TMP local stakeholders, and City residents. Through a variety of engagement activities including public meetings, the City seeks to gather meaningful input that reflects collective transportation needs and priorities, a united outlook on future growth, and community values. The objectives of community engagement include the following. Inform and Build Awareness: Provide clear, accessible information about the purpose and importance of the 2027 Transportation Master Plan Update, and how it will be utilized by City staff to guide transportation infrastructure investments. Foster Inclusive Participation: Engage a broad cross-section of the community including City residents, property owners, local government agencies, and service providers to ensure diverse perspectives are represented throughout the planning process. Gather Meaningful Input: Create multiple opportunities for the public and stakeholders to share local knowledge, concerns, and ideas that will inform transportation infrastructure investments based on system needs. Encourage Collaboration and Transparency: Maintain open communication between the City, stakeholders, and the public to build trust and demonstrate how community input is being used to shape the TMP. Document and Communicate Outcomes: Summarize community feedback and clearly communicate how public input was considered when updating the TMP through meeting summaries, public presentations, and comment logs. KEY STAKEHOLDERS The 2027 Transportation Master Plan Update will include the following internal and external stakeholders. Internal Stakeholders City Commission (Decision maker) City Manager Office City Transportation & Engineering Department staff Transportation Advisory Board 407 Sustainability Advisory Board Community Development Department Parks and Recreation Department Bozeman Police Department Bozeman Fire Department External Stakeholders City Residents and General Public Montana Department of Transportation Gallatin County Gallatin Valley Metropolitan Planning Organization Bozeman School District Gallatin Valley Urban Transportation District Montana State University Bozeman Downtown Partnership Inter Neighborhood Council and Neighborhood Associations Western Transportation Institute DEFINED DECISION MAKING Decision making is at the core of how we plan community engagement as outlined in the Decision- Making Process diagram below. It is essential to provide clarity on what decisions will be made, who will make them, and what information will be considered throughout the process. Many decisions are made throughout a given City project. The City’s approach calls on project teams to consider which decisions have already been made and which decisions can be made more sustainable by engaging the community. The 2027 Transportation Master Plan Update will include a decision-making process that includes collecting public feedback to inform decisions. The public feedback will be facilitated by sharing with the public information on the current state of the transportation network (i.e., existing conditions) and an evaluation and prioritization of proposed projects (i.e., future conditions). The Decision-Making Process diagram below describes the decision making process and the specific decision points at which the public may contribute. The project team is committed to ensuring the public is equipped with the right information and tools to contribute to a given decision. 408 The City Commission is the final decision-maker on this project and will decide whether to adopt the TMP update through a formal public hearing process that considers community and project stakeholder input, legal review, and the recommendations of the project team and Transportation Advisory Board. Throughout the course of updating the TMP, the public will have opportunities to shape the final recommendations by providing feedback that helps define the problem, fill potential information gaps, develop common understanding of decision criteria, and evaluate proposed alternatives prior to final decision-making. At the time of drafting the Community Engagement Plan, no specific decisions have been made beyond the decision to update the TMP and hire a consultant to support the project. LEVEL OF COMMUNITY ENGAGEMENT: INFORM AND CONSULT City will provide the public with objective information to assist the public in understanding the purpose of updating the TMP and the value of public feedback on enhancing the goals and blueprint for transportation infrastructure investments based on system needs and associated decision-making principles. Any feedback received throughout the engagement process will be taken into consideration during the development of the TMP update. The engagement spectrum below outlines different levels of engagement and helps determine how the community will contribute to the process and what the expectations are for achieving a given level of engagement. The 2027 Transportation Master Plan Update will foster inclusive participation to gather meaningful input from the public by consulting and involving the public throughout the process. During any level of engagement, one-way communications will occur to provide the community with the resources and information they need to contribute effectively. 409 METHODS OF ENGAGEMENT Engagement on this project will be conducted using a variety of methods with the promise that the public will be informed, consulted, and involved throughout. There will be multiple opportunities for the public and stakeholders to learn about the project and process and to provide feedback and recommendations as updates to the TMP are drafted. The methods used to engage the community in this effort will include the following: Community Engagement Plan. Project Website hosted on Engage Bozeman. At least two (2) Citywide Community Open Houses and informational exhibits: One (1) initial Open House to review TMP update goals and objectives and gather meaningful input from the public, and a second (2) Open House to present the draft TMP update and maintain continuity with public collaboration and transparency. Up to three (3) Regional Meetings (e.g., Downtown, Southside and Westside) between the two Citywide Open Houses to share local knowledge, concerns, and ideas for enhancing the TMP update. Up to four (4) Technical Working Group Meetings with internal and external partners to engage subject matter experts in developing the TMP update. Up to three (3) work sessions with advisory board meetings including Transportation Advisory Board. Comment Response Matrix, updated and published after each major comment period. Surveys or participatory voting on display boards during public meetings and the project Engage page. 410 Story Map that illustrates a geographic story with narrative elements on TMP update development including goals, events, trends, and outcomes. Social media posts. Public hearings with the Transportation Advisory Board, and City Commission. Draft Plan Work Session Plan Adoption Public Hearing Community engagement should be flexible to allow public interest and participation which will help guide the selection of engagement methods. Over the course of the project, it may make sense to consider different or additional engagement methods based on community response, funding resources, and staff time. Community engagement efforts will be led by the consultant team and City staff. Not all methods of engagement will include in person visits from the consultant team. Stakeholder input, project schedule, and project funding may also affect whether such additional engagement methods are utilized. Engagement results will be compiled, summarized, and posted on the Engage Bozeman project web page. PROJECT TIMELINE TMP development and engagement will be initiated in August 2026. Presentation of the Draft TMP is planned for September 2027 with TMP adoption following in December. Milestones This section breaks down the project timeline to describe how and when engagement will occur. July 2026 – Present Community Engagement Plan for City Commission adoption. Upon approval of the Community Engagement Plan, create Engage Bozeman page and initiate and track to completion the public engagement process while meeting MLUPA requirements. August through December 2026 – Distribute plan goals and objectives and evaluation of existing conditions and conduct public open house and technical work sessions to collect feedback. January through August 2027 – Release final draft plan for public comment and conduct public open house and technical work sessions to collect and discuss feedback. September 2027 – Formal public notice for plan adoption. October through November 2027 – Transportation Advisory Board and City Commission adoption public hearings to provide final recommendation to the City Commission. December 2027 – Release final adopted plan. ENGAGEMENT WRAP-UP The following section summarizes how the engagement will be evaluated throughout the engagement process. Success will be determined based on how closely we met our objectives and commitment to the public. 1. How will you show what you heard from members of the public and how public input has influenced the plan? a. The consultant team will summarize community engagement in one-page summaries that will be posted to the project web page and shared on social media to demonstrate that community members’ feedback was recorded, utilized, and will influence the plan. 411 Key findings from the engagement will be documented in the Engagement Chapter of the 2027 Transportation Master Plan Update. b. Survey responses will be collected, and information will be compiled into charts and graphs. Any qualitative data will be compiled, and a content analysis will be conducted. c. The consultant will document all community and partner agency engagement efforts and feedback into a document that will be attached and referenced in the 2027 Transportation Master Plan Update. 2. How will you go about evaluating the success of the engagement effort? a. Success of the engagement effort will be evaluated by measuring community response to engagement efforts. If response is low initially, additional steps will be taken by staff to heighten community awareness of the plan through such efforts as media campaigns and social media posts. b. Build relationships with participants that yields constructive public feedback during project stakeholders’ meetings and comment periods. c. Prepare an MLUPA compliant 2027 Transportation Master Plan Update that aligns with the City’s Community Plan. d. Having the Transportation Advisory Board support and champion the final recommendations to City Commission. 412 Memorandum REPORT TO:City Commission FROM:Sustainability Program Manager, Natalie Meyer Assistant City Manager, Jon Henderson Assistant City Manager, Cola Rowley SUBJECT:Authorize the City Manager to Sign the Green Power Program Lead Community Agreement with NorthWestern Energy MEETING DATE:July 21, 2026 AGENDA ITEM TYPE:Agreement - Legal RECOMMENDATION:Authorize the City Manager to sign the Green Power Program Lead Community Agreement with NorthWestern Energy. 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: With the adoption of the 2020 Bozeman Climate Plan, the City of Bozeman established a goal of 100% net clean electricity within the City of Bozeman boundary by 2030. The Bozeman Climate Plan identifies a "green tariff" as one of the top options for supplying the Bozeman community with clean energy. A green tariff is an option for customers of regulated utilities to buy power from newly developed renewable energy sources through a special rate (tariff) on their utility bills. Over the past several years, the City of Missoula, Missoula County, the City of Bozeman and NorthWestern Energy have worked together to develop a green tariff program, called the Green Power Program (GPP). The GPP would allow NorthWestern Energy customers to support and benefit from a new source of renewable energy in Montana, such as a wind or solar farm. Developing the program is a key strategy for the Lead Communities of the City of Missoula, Missoula County, and the City of Bozeman to reach their respective clean electricity goals, as well as provide a voluntary renewable energy option to customers. On November 28th, 2023, the Bozeman City Commission authorized the City Manager to sign the Green Power Program (GPP) Term Sheet with NorthWestern Energy. This non-binding agreement has guided program design and defined the implementation process. The Lead Communities of 413 Missoula County, City of Missoula, and the City of Bozeman each approved the Term Sheet with NorthWestern Energy. The next milestone in the development of the Green Power Program is the approval of the Lead Community Agreement. The Lead Community Agreement outlines the roles and responsibilities for the Lead Communities and NorthWestern Energy to file the GPP with the Montana Public Service Commission (PSC) for consideration. The Lead Community Agreement includes design and process specifications for the development of a Request for Proposals (RFP); the RFP process will be a competitive process for selecting a new renewable energy facility to serve as the resource for the GPP and will occur after the PSC approves the program and interested subscribers have been identified. The Lead Community Agreement binds the Lead Communities to a process but does not commit any community to subscribe to the GPP. The decision to subscribe to the GPP will be brought forward at a later date. NorthWestern has provided final program documents for the lead communities to review. The following documents are included as attachments: Lead Community Agreement: Outlines roles and responsibilities for the Lead Communities and NorthWestern to bring the GPP to the Public Service Commission (PSC) Tariff: The GPP rate structure to be adopted by the PSC Notice of Interest: The non-binding indication of how much electricity a customer would like to subscribe to the GPP (submitted after PSC approval) Community Subscription Agreement: The binding community customer agreement to subscribe to the GPP (submitted after the RFP) Commercial Subscription Agreement: The binding commercial customer agreement to subscribe to the GPP (submitted after the RFP) Residential Enrollment Form: The short-term residential subscription enrollment form for use by residents in participating jurisdictions (submitted after Community Subscription Agreements) On June 10, 2026, Staff provided an overview of the Lead Community Agreement to the Sustainability Advisory Board. The Sustainability Advisory Board was invited to ask questions, receive public comment, and discuss the program. At the July 8, 2026 , Sustainability Advisory Board meeting, City Staff shared a follow-up presentation on the Green Power Program and supporting documents. The Sustainability Advisory Board unanimously recommended that the City Commission authorize the City Manager to sign the Green Power Program Lead Community Agreement with NorthWestern Energy. 414 Sustainability Program Manager, Natalie Meyer, will provide an overview of the Green Power Program Lead Community Agreement. In addition, NorthWestern Energy's Director of Regulatory Affairs for Montana, Charles Lane, will be available to answer questions. Staff welcomes questions and discussion around this multi-year project. The City Commission will be asked to consider a motion to authorize the City Manager to sign the Green Power Program Lead Community Agreement and administratively approve future minor changes. The Green Power Program website is available for members of the community to stay informed as the program develops: Green Power Program | City of Bozeman UNRESOLVED ISSUES:None. ALTERNATIVES:As suggested by the City Commission. FISCAL EFFECTS:Signing the Lead Community Agreement commits the City of Bozeman to paying a share of the costs incurred by NorthWestern to develop and issue a Request for Proposals (RFP) for the renewable resource if the City decides, after the RFP, not to move forward with the program and terminates the Lead Community Agreement. The Lead Community Agreement does not commit the City of Bozeman to subscribe to the Green Power Program, but it advances the approval process to the Montana Public Service Commission for consideration of the Green Power Program Tariff. Other steps in establishing the Green Power Program may include one-time funding for legal representation and technical expert witnesses as part of the Green Power Program Tariff filing at the Public Service Commission. Additional expenditures may be considered in the engagement and recruitment of Green Power Program subscribers. Anticipated costs were included in the approved FY27-28 Sustainability Division operating budget. Attachments: Lead Community Agreement_FINAL.pdf Green Power Program Tariff_FINAL.pdf Notice of Interest_FINAL.pdf Community Subscription Agreement_FINAL.pdf CI Subscription Agreement_FINAL.pdf Residential Enrollment Form_FINAL.pdf Report compiled on: July 9, 2026 415 Lead Community Green Power Program Support Agreement Page 1 of 9 Lead Community Green Power Program Support Agreement This Lead Community Green Power Program Support Agreement (“Agreement”) is dated this ___ day of ____________________, 2026, by and between [insert Lead Community name], a government unit in the State of Montana (the “Lead Community”) and NorthWestern Corporation d/b/a NorthWestern Energy (“NorthWestern”), a Delaware corporation. NorthWestern and Lead Community may individually or collectively be referred to herein as a “Party” or “Parties,” respectively. PURPOSE The Lead Community desires to support the recruitment of a Green Power Resource through this Agreement with NorthWestern. AGREEMENT NorthWestern and the Lead Community agree as follows: 1. Definitions. a. Commercial and Industrial (“C&I”) Subscriber - An eligible C&I Customer who has a fully executed C&I Subscription Agreement with NorthWestern. b. Community Subscriber - An eligible Community Customer who has a fully executed Community Subscription Agreement with NorthWestern. c. Eligible Customer - An Eligible Community Customer, Eligible C&I Customer, or Eligible Residential Customer. d. Eligible C&I Customer – A non-residential electric supply customer receiving service under Tariff Schedule Nos. GSEDS-1 or GSEDS-2. e. Eligible Community Customer – A Montana county or incorporated city or town that receives electric service from NorthWestern. f. Eligible Residential Customer – A residential customer: (1) receiving service under Tariff Schedule No. REDS-1, Residential Electric Delivery Service, (2) not currently receiving Low Income Home Energy Assistance Program (“LIHEAP”) benefits unless there is local, state, or federal funding to cover the Green Power Program costs for the residential customer; (3) premise(s) where customer receives NorthWestern service is located within the county, city, or town of a Community Subscriber and participation is approved by the Community Subscriber; and (4) is not delinquent on any payments to NorthWestern for service to the premise(s). g. Final Non-Appealable Order – an order issued by the PSC that approves the Green Power Program tariff and subscription forms that is considered final (i.e. not subject to further motions for reconsideration, petitions for judicial review, or other appeals). h. Green Power Program - A PSC-approved tariff program designed to provide Eligible Community Customers, Eligible C&I Customers, and Eligible Residential 416 Lead Community Green Power Program Support Agreement Page 2 of 9 Customers with a Green Power Resource to reduce greenhouse gas emissions associated with their electricity supply service. This initial program will be capped at 50 MW, which shall be no more than the maximum rated generating output of any generating facility under specific conditions designated by the original equipment manufacturer plus the maximum rated discharge power capability of any battery storage system equipment under specific conditions designated by the original equipment manufacturer. i. Green Power Resource - A new, NorthWestern-owned, operated, and maintained renewable energy supply resource (e.g., wind or solar generator, potentially paired with an energy storage system) located in Montana and procured to fulfill the Green Power Program. This resource would be above the supply needs identified in NorthWestern’s Integrated Resource Plans. j. Independent Monitor - An impartial third-party entity that shall monitor the evaluation of bids pursuant to the RFP for the Green Power Program, provide oversight to ensure a fair and transparent RFP, be familiar with competitive bid and evaluation processes, and evaluate and document the process used by NorthWestern to solicit and evaluate bids received during the RFP process. Montana law establishing parameters of how NorthWestern must conduct a request for proposal process for procurement of an electricity supply resource shall control if there is a conflict with the terms of this Agreement. k. Lead Communities - A subset of the Community Subscribers who are initiating the Green Power Program, and as of the date of this Agreement include the City of Missoula, the County of Missoula, and the City of Bozeman. l. Notice of Interest - A non-binding form submitted by an Eligible Community Customer or Eligible C&I Customer that identifies its expected load commitment in the Green Power Program. m. PSC – Montana Public Service Commission. n. Request for Proposals (“RFP”) - A process that announces the Green Power Program, describes the resource requirements, and solicits bids from qualified contractors to complete the construction of the Green Power Resource. o. Subscriber – Community Subscribers and C&I Subscribers. p. Subscription Agreement - The binding contract setting forth the specific load commitment for a Subscriber. The form will vary depending on the type of Subscriber and require a commitment for the Depreciable Life of the Green Power Resource. q. Subscription Level – means the load commitment of Community Subscriber or C&I Subscriber in the Green Power Program as set forth in their Subscription Agreement. 2. Notice of Interest. Attached to this Agreement as Exhibit A is the Lead Community’s Notice of Interest for the Green Power Program that identifies an expected load commitment of ________ annual kilowatt hours (akWh). 3. Term. This Agreement is effective upon execution by NorthWestern and the Lead Community, and unless terminated under the terms of this Agreement, shall remain in effect until the PSC approval of a Green Power Program compliance filing that is 417 Lead Community Green Power Program Support Agreement Page 3 of 9 acceptable pursuant to Section 7.c and incorporates all RFP costs incurred under this Agreement, or until the RFP costs incurred under this Agreement are recovered by NorthWestern pursuant to Section 8. 4. PSC Filing. a. NorthWestern and the Lead Community shall jointly file with, and seek approval from, the PSC for a Green Power Program, including a tariff and Subscription Agreement forms. NorthWestern and the Lead Community shall submit this filing to the PSC on or before the _____ day of __________, 2026. b. The Lead Community shall actively participate during the PSC proceeding in support of the Green Power Program. c. If the PSC declines to approve the Green Power Program as proposed by NorthWestern and the Lead Community, or if the PSC adds or removes any terms or conditions which are not acceptable to NorthWestern or the Lead Community, either NorthWestern or the Lead Community may unilaterally terminate this Agreement pursuant to Section 6. Section 8 for recovery of RFP costs does not apply to termination of the Agreement pursuant to this Section. d. After issuance of a Final Non-Appealable Order by the PSC approving the Green Power Program acceptable to NorthWestern and the Lead Community, the Lead Community will have 180 days to recruit Eligible Community Customers and Eligible C&I Customers (the “Recruitment Period”) and have Eligible Community Customers and Eligible C&I Customers submit Notices of Interest to NorthWestern. 5. Request for Proposals. a. NorthWestern shall document all costs incurred with the administration of the RFP and provide such documentation upon request to the Lead Community. b. NorthWestern and the Lead Community will collaborate with NorthWestern’s RFP administrator on the design of an RFP, including the design of the RFP scoring matrix, for the Green Power Resource. If either NorthWestern or the Lead Community do not approve of the design of the RFP, each Party can unilaterally terminate this Agreement pursuant to Section 6. c. If NorthWestern, or any affiliates of NorthWestern, participates in the RFP through the submission of a bid, NorthWestern must ensure NorthWestern personnel who designed the RFP do not communicate or share information with NorthWestern personnel involved in the development of the RFP project. d. In the event that NorthWestern decides to bid into the RFP, there will be an Independent Monitor to ensure that there is a fair, impartial and competitive RFP process for the selection of the Green Power Resource. If an Independent Monitor is necessary because NorthWestern bid into the RFP, the Independent Monitor will be selected jointly by NorthWestern and Lead Community. In the event NorthWestern elects to bid into the RFP, NorthWestern will pay the costs for an Independent Monitor to oversee the RFP process. If NorthWestern’s bid is successful, costs of the Independent Monitor will be included in the costs of the Green Power Resource. 418 Lead Community Green Power Program Support Agreement Page 4 of 9 e. NorthWestern, through the RFP administrator, shall issue the RFP within 30 days of approval of the design of the RFP by the Lead Community and by NorthWestern, but not prior to the close of the Recruitment Period. f. Through NorthWestern’s RFP administrator, NorthWestern and the Lead Community will collaborate on scoring the submitted bids, and the selection of top preferred bids. g. NorthWestern shall provide an estimated revenue requirement and associated tariff pricing for the top preferred bids within 30 days to Lead Community. NorthWestern will calculate the estimated revenue requirement consistent with standard ratemaking practice and shall make available to the Lead Community the workpapers associated with these calculations upon request, including the level and cost of property insurance. The estimated revenue requirement and tariff pricing will include all known capital costs and expenses for the Green Power Resource(s), program pricing, and estimated energy and capacity credits. If the Lead Community requests additional information on the calculation of the revenue requirement, including insurance coverage and cost details, it will notify NorthWestern. NorthWestern will have 15 days to provide additional information. The final revenue requirement will be subject to the PSC’s approval through a compliance filing. h. NorthWestern shall receive Subscription Agreements submitted by Eligible Community Customers and Eligible C&I Customers for 60 days after the estimated revenue requirement and tariff pricing have been determined for the top preferred bids and have been shared with the Lead Community. If the Lead Community requests additional information pursuant to Section 5g, NorthWestern will receive Subscription Agreements for an additional 15 days after receiving this notice. NorthWestern will share the Subscription Levels of all Subscription Agreements with the Lead Community as they are received and accepted, without disclosing any customer-specific information. i. NorthWestern and the Lead Community will collaborate on NorthWestern’s selection of the Green Power Resource from the top preferred bids and engage collaboratively through the RFP process. If either NorthWestern or the Lead Community do not approve of the selected Green Power Resource, the estimated revenue requirement, or the level of property insurance proposed for the Green Power Resource, this Agreement may be unilaterally terminated pursuant to Section 6. j. If NorthWestern receives Subscription Agreements totaling at least the expected output, in annual kilowatt hours (akWh), of the selected bid for the Green Power Resource, NorthWestern shall negotiate with the developer of the selected Green Power Resource to execute material procurement, construction or build/transfer contracts. k. If NorthWestern receives Subscription Agreements totaling more than the expected annual output of the Green Power Resource, NorthWestern will prioritize participation in the Green Power Program to Eligible Community Customers and Eligible C&I Customers who submitted Notices of Interest prior to the procurement process for the Green Power Resource and based on the order in which their Notice 419 Lead Community Green Power Program Support Agreement Page 5 of 9 of Interest was received by NorthWestern. If NorthWestern receives Subscription Agreements from Eligible Community Customers or Eligible C&I Customers who did not submit Notices of Interest and the Green Power Resource has not been fully subscribed by those customers who did submit Notices of Interest, NorthWestern will accept Subscription Agreements in the order they are received. 6. Termination. If either NorthWestern or the Lead Community elects to terminate this Agreement, the terminating Party shall issue a termination notice, signed by its authorized representative. Once the termination notice is delivered to the non-terminating Party in accordance with Section 13, the Parties agree to follow the procedures outlined in Section 12. If the Section 12 procedures are unsuccessful, the Agreement will be terminated subject to the obligation of the Lead Community to reimburse NorthWestern for RFP costs incurred pursuant to Section 8. 7. Compliance Filing. a. NorthWestern shall file with the PSC a compliance filing for the Green Power Program reflecting the final estimated Green Power Resource revenue requirement and resulting tariff rate if the following criteria are met: i. NorthWestern receives and accepts, subject to credit review of the applicant, Subscription Agreements equal to or above the expected annual kilowatt hours (akWh) output of the selected Green Power Resource selected through the RFP, and ii. The material procurement, construction or build/transfer contracts are executed with the developer of the Green Power Resource selected in the RFP. b. This compliance filing shall include recovery of RFP costs incurred under this Agreement. c. Either NorthWestern or the Lead Community may unilaterally terminate this Agreement pursuant to Section 6 if the PSC does not approve the compliance filing upon terms and conditions acceptable to NorthWestern or the Lead Community. 8. RFP Cost Recovery. The Lead Community, with other Lead Communities who have executed a similar Lead Community Green Power Program Support Agreement, shall be jointly and severally responsible for NorthWestern’s expenses incurred with the RFP under this Agreement unless the PSC approves recovery of these costs though the Green Power Program. The Lead Community shall remit the assessed RFP costs to NorthWestern within 90 days of a request for payment from NorthWestern. 9. Hold Harmless. Except for RFP Cost Recovery as provided for in Section 8, the Parties shall hold each other harmless from any third party claim or occurrence arising out of or related to a Party’s own performance and obligations under this Agreement (including a Party’s own costs and expenses incurred in performing its obligations under this Agreement) or a claim brought against a Party by a third party. 10. Waiver of Claims. The Parties waive any and all claims and recourse against each other, including the right of contribution for loss or damage to person or property, arising out of 420 Lead Community Green Power Program Support Agreement Page 6 of 9 or related to the performance of this Agreement. Nothing herein is intended to waive responsibility for a Party’s own acts and omissions, fraud, for willful injury to the person or property of another, or for violation of law, whether willful or negligent. 11. Approvals. Where approvals are required by the Lead Community in this Agreement, approval by the Chief Administrator of the Lead Community or his/her designee are binding on the Lead Community. 12. Duty to Negotiate. A Party desiring to terminate this Agreement pursuant to Section 6 shall provide 20 days’ written notice to the other Party of its intent to terminate this Agreement (“Termination Notice”). Such Termination Notice shall include the reason for termination. In the event that any Party provides a Termination Notice, the Parties agree to promptly (within ten (10) days of providing such Termination Notice, unless the Parties agree to a longer time) commence negotiations to remedy the grievance or otherwise seek solutions to address the change in circumstance which resulted in the decision to issue the Termination Notice. If the Parties are able to resolve the underlying concern, the Parties will also pursue a mutually acceptable amendment, or replacement agreement as applicable. In such an event, the Parties agree to negotiate in good faith to address the issues giving rise to the Termination Notice such that the relative benefits and obligations of the Parties are, to the extent practicable, preserved. If the Parties are unable to resolve the underlying concern or otherwise address the issues giving rise to the Termination Notice with a mutually acceptable solution, this Agreement may be unilaterally terminated pursuant to Section 6, subject to the obligation of the Lead Community to reimburse NorthWestern for RFP costs incurred in accordance with Section 8. 13. Notice. All communications under this Agreement must be in writing and will be deemed to have been given (i) when delivered by hand (with written confirmation of receipt); (ii) when received by the addressee if sent by a nationally-recognized overnight courier (receipt requested); (iii) on the date sent by electronic transmission (including by e-mail) if sent during normal business hours of the recipient, and on the next business day if sent after normal business hours of the recipient, or (iv) on the 3rd day after the date mailed, by certified or registered mail, return receipt requested, postage prepaid. Unless a Party has designated a different officer or address for itself by written notice to the other hereunder, such communications will be sent to the respective Party as follows: If to NorthWestern: NorthWestern Energy Attention: [___________________] 11 E. Park St Butte, Montana 59701 Email: [______________________] If to the Lead Community: [Lead Community Name] Attention: [___________________] 421 Lead Community Green Power Program Support Agreement Page 7 of 9 [Address Line 1] [Address Line 2] [City], [State] [Zip Code] Email: [______________________] 14. No Third-Party Benefit. Nothing in this Agreement creates any duty, obligation or liability of NorthWestern or the Lead Community to any person not a party to this Agreement. 15. Counterparts. This Agreement may be executed in two or more counterparts, each of which will be deemed an original but all of which together will constitute one and the same instrument. 16. Governing Law. The validity, interpretation and performance of this Agreement, and each of its provisions, will be governed by the laws of the state of Montana without giving effect to principles of conflicts of law that would require the application of laws of another jurisdiction. The state and federal courts, as applicable, of the state of Montana will have exclusive jurisdiction for the resolution of disputes under this Agreement and NorthWestern and the Lead Community consent to such jurisdiction. 17. Waiver. A waiver by either Party of any of its rights with respect to the performance of any of the other Party’s obligations in this Agreement will not be deemed a waiver of the performance of any other obligation in this Agreement, nor will it be construed as a waiver to the same obligation in the future. 18. Amendment. Any modification or amendment to this Agreement must be in writing and signed by both NorthWestern and the Lead Community. 19. Nondiscrimination. NorthWestern will have a policy to provide equal employment opportunity in accordance with all applicable state and federal anti-discrimination laws, regulations, and contracts. Hiring must be on the basis of merit and qualifications, and NorthWestern 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, 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. NorthWestern shall use best efforts to require these nondiscrimination terms in contracts executed after the Effective Date with its sub-contractors performing NorthWestern’s obligations under this Agreement. 20. Entire Agreement. This Agreement constitutes the entire agreement between NorthWestern and the Lead Community with respect to the subject matter in this Agreement, and supersedes all prior contracts or understandings with respect to that subject matter. The attached Exhibit A is incorporated into this Agreement by this reference. IN WITNESS WHEREOF, the Lead Community and NorthWestern have caused this Agreement to be executed by their duly authorized representatives. NORTHWESTERN CORPORATION D/B/A NORTHWESTERN ENERGY [LEAD COMMUNITY] Signature: 422 Lead Community Green Power Program Support Agreement Page 8 of 9 Signature: _____________________________ Name: ________________________________ Title: _________________________________ Date: _________________________________ _____________________________ Name: ________________________________ Title: _________________________________ Date: _________________________________ 423 Lead Community Green Power Program Support Agreement Page 9 of 9 Exhibit A [Attach Notice of Interest] 424 Page 1 of 8 Green Power Program Tariff PURPOSE: This tariff establishes the Green Power Program, which provides an optional supplemental service for eligible customers of NorthWestern Corporation d/b/a NorthWestern Energy (“Utility”), as defined in the applicability section below, seeking to reduce their greenhouse gas emissions associated with electricity service. APPLICABILITY: This is optionally available to eligible Community, Commercial and Industrial (“C&I”) and Residential customers. All eligible customers must receive energy supply service from Utility. Further requirements for eligible customers include: • Eligible Community Customer – A Montana county or incorporated city or town that receives electric supply service from Utility. • Eligible Commercial and Industrial (“C&I”) Customer – A non-residential electric supply customer receiving service under Tariff Schedule Nos. GSEDS-1 or GSEDS-2. • Eligible Residential Customer – A Residential Customer: (1) receiving service under Tariff Schedule No. REDS-1, Residential Electric Delivery Service, (2) not receiving Low Income Home Energy Assistance Program (“LIHEAP”) benefits unless there is local, state, or federal funding to cover the Green Power Program Costs for the customer; (3) premise(s) where customer receives Utility service is located within the county, city, or town of a Community Subscriber and participation is approved by the Community Subscriber; and (4) is not delinquent on any payments to Utility for service to the premise(s). DEFINITIONS: A. Ancillary Costs are the costs for ancillary services under Schedules 3, 5, 6, and 11 in Utility’s Open Access Transmission Tariff that are in effect at the time of delivery and applicable to the Green Power Resource. Ancillary Costs applied to this tariff will be limited to the recovery of incremental ancillary services associated with the Green Power Resource. B. Capacity Accreditation means the amount of capacity accredited to the Green Power Resource as determined by the Resource Adequacy Program and shall be updated twice per year ahead of each season. C. Capacity Value is the value of capacity of the least-cost resource in Utility’s then-current Integrated Resource Plan, at the time a contract is executed by Utility for the Green Power Resource. D. Community Subscriber is an Eligible Community Customer who has a fully executed Community Subscription Agreement with Utility. E. C&I Subscriber is an Eligible C&I Customer who has a fully executed C&I Subscription Agreement with Utility. F. Depreciable Life means the number of years the Green Power Resource is likely to be used and useful for ratemaking purposes. G. Energy Credit is the market value of energy, as determined by this tariff, produced by the Green Power Resource at the time the energy is delivered. 425 Page 2 of 8 H. Exit Fee is a fee paid by Community Subscribers and C&I Subscribers who breach their Subscription Agreement. This fee is more fully described in the Subscription Agreements. I. Good Utility Practice means any of the practices, methods, and acts engaged in or approved by a significant portion of the electric utility industry during the relevant time period, or any of the practices, methods, and acts which, in the exercise of reasonable judgment in light of the facts known at the time the decision was made, could have been expected to accomplish the desired result at a reasonable cost consistent with good business practices, reliability, safety and expediency. Good Utility Practice is not intended to be limited to the optimum practice, method, or act of exclusion of all others, but rather to be acceptable practices, methods, or acts generally accepted in the region. J. Green Power Resource is a new, Utility-owned, operated, and maintained renewable energy supply resource (e.g., wind or solar generator, potentially paired with an energy storage system) located in Montana and procured to fulfill the Green Power Program. This resource would be above the supply needs identified in Utility’s Integrated Resource Plans. K. Insurable Event means any occurrence that falls within the scope of coverage under the Green Power Program’s insurance policies, including events for which a claim is filed and the Reserve Fund, as required by this tariff, is used to pay the insurance deductible, and events that would otherwise qualify as insurable under the policy terms but for which no claim is filed. L. LMP is the applicable Locational Marginal Price, as measured at the Green Power Resource node, and as determined by the Western Energy Imbalance Market (“WEIM”) or other organized market in which NorthWestern participates. M. Notice of Interest is a non-binding form submitted by an Eligible Community Customer or Eligible C&I Customer that identifies its expected load commitment in the Green Power Program. N. PSC means the Montana Public Service Commission. O. RECs means Renewable Energy Certificates. One megawatt hour of renewable energy generation gives rise to one REC, and this REC embodies all environmental attributes of that renewable energy generation. P. Residential Enrollee is an Eligible Residential Customer who has a fully executed Residential enrollment form with Utility. Q. Resource Adequacy Program means the Western Resource Adequacy Program or other resource adequacy program in which Utility participates in the future. R. Subscribers means Community Subscribers and C&I Subscribers. S. Subscription Agreement is the binding contract setting forth the specific load commitment for a Community Subscriber or C&I Subscriber. The form will vary depending on the type of Subscriber and require a commitment for the Depreciable Life of the Green Power Resource. T. Subscription Level means the load commitment of Community Subscriber or C&I Subscriber in the Green Power Program as set forth in their Subscription Agreement. U. Total Annual Subscription Level means the sum of Subscription Levels from all Community Subscribers and C&I Subscribers, excluding any Subscription Level from terminated Subscription Agreements. V. Total Annual Residential Subscription Level means the total approved Subscription Level, in kilowatt-hours (“kWh”), allocated to residents in a Community Subscriber’s jurisdiction. 426 Page 3 of 8 PROGRAM PARTICIPATION: Participation in the Green Power Program will require that Eligible Community Customers and Eligible C&I Customers submit Subscription Agreements that are then fully executed with the Utility and Eligible Residential Customers submit an online enrollment form as detailed below. PARTICIPATION REQUIREMENTS: COMMUNITY SUBSCRIBERS and C&I SUBSCRIBERS are required to commit to the program for the Depreciable Life of the Green Power Resource, which is [Utility to insert Depreciable Life with compliance filing]. To prevent cost shifting to non-subscribing customers, and limit the impact to other Subscribers, a Community Subscriber or C&I Subscriber shall, pursuant to their Subscription Agreement to this program, be subject to an Exit Fee if leaving this program prior to the end of the Depreciable Life of the Green Power Resource. Further, if the Community Subscriber or C&I Subscriber fails to pay its Exit Fee by the deadline required in its Subscription Agreement, Utility (after making all reasonable efforts to collect the Exit Fee) will seek to adjust Total Annual Subscription Level through compliance filings to redistribute costs and credits of the Green Power Program. Community Subscriber or C&I Subscriber is not required to pay the Exit Fee if they transfer their subscription as described in their Subscription Agreement. COMMUNITY SUBSCRIBERS will have the ability to allocate a portion of their Subscription Level to Eligible Residential Customers. Community Subscribers electing this option must notify Utility by August 15 of its intent to allow Eligible Residential Customers to participate for the next calendar year in the Green Power Program for a portion (not to exceed 100%) of its Subscription Level. RESIDENTIAL ENROLLEES: To participate in the Green Power Program as a Residential Enrollee: • Eligible Residential Customer shall execute the online enrollment form during the annual enrollment period of September 1 through October 31, subject to approval by Community Subscriber prior to November 30 and Utility approval. Residential Enrollees will automatically be re-enrolled in the program for the next program year unless they choose to opt out of the program during the enrollment period of September 1 through October 31. Residential enrollment for the first year of operation will take place in advance of the Green Power Resource’s planned operational date to allow for residential enrollments to begin on day one of operation. The first year of operation of the Green Power Resource may not reflect a full calendar year; • Must enroll or be enrolled in Electronic Funds Transfer (“EFT”); and • Must enroll or be enrolled in Electronic Billing (“E-Bill”). Residential Enrollees will be required to participate for a 12-month period (beginning January 1 and ending December 31) with participation based on 100 kWh blocks. If Residential Enrollee cancels participation in the Green Power Program or moves out of the area in which a Community Subscriber is participating, Residential Enrollee will be billed for their remainder of the 12-month commitment, including a forecasted credit for Capacity and Energy. NorthWestern will invoice or credit Community Subscriber for any remaining costs and credits of the Subscription Level allocated to Residential Enrollees that are not paid by, or credited to, 427 Page 4 of 8 Residential Enrollees due to early termination of their 12-month commitment pursuant to the Community Subscription Agreement. Residential Enrollment cannot be transferred to another premise. QUEUE SYSTEM FOR OVERSUBSCRIBED GREEN POWER PROGRAM: Utility will maintain a list of additional interested Eligible Community Customers and C&I Customers to support subscription transfers and potential future phases of the program. POTENTIAL PROGRAM EXTENSIONS: If Utility, in its discretion, chooses to continue operating the Green Power Resource beyond its Depreciable Life, all Subscribers will have the opportunity to extend their Subscription Agreements for this additional operational period and will be subject to all costs and credits of the Green Power Resource associated with this extended operational period. POTENTIAL FUTURE PROGRAM PHASES: In the event additional interest by potential eligible customers is identified, future phases of the Green Power Program would require approval from the PSC. Future program phases may be in addition to the initial 50 MW cap and may include caps associated with incremental projects. GREEN POWER RESOURCE: SIZE: This initial Green Power Program will be capped at 50 megawatts, which shall be no more than the maximum rated generating output of any generating facility under specific conditions designated by the original equipment manufacturer plus the maximum rated discharge power capability of any battery storage system equipment under specific conditions designated by the original equipment manufacturer. POTENTIAL CURTAILMENT: Utility will dispatch the Green Power Resource in a manner consistent with its operations of its other resources. Utility will restrict generation from the Green Power Resource to avoid material net negative pricing in the applicable market, exclusive of periods around set point changes. The decision to curtail will consider the value of PTCs relative to the applicable LMP. DUTY TO MAINTAIN: Utility will maintain the Green Power Resource consistent with Good Utility Practices. GREEN POWER PROGRAM COSTS: To ensure that all costs and benefits of the Green Power Program are only applied to program participants, all funds collected under this tariff will be separately identified and tracked. Costs and credits from this Green Power Program will be incremental to costs and credits associated with the participants’ otherwise applicable tariffs. Costs and credits for this Green Power Program are defined below. GPP Cost Rate ($/kWh) will be calculated as = GPP Cost Rate ($/kWh) =GPP Annual Revenue Requirement ($)Total Annual Subscription Level (kWh) 428 Page 5 of 8 Total Annual Subscription Level is the sum of Subscription Levels from all Subscribers. The Total Annual Subscription Level may change through compliance filings to redistribute costs and credits of the Green Power Program to account for unpaid obligations and avoid cost shifting to non-participating customers of Utility. GPP ANNUAL REVENUE REQUIREMENT will be calculated to capture the full costs associated with the Green Power Program to be recovered over the Depreciable Life of the Green Power Resource and will include all costs and expenses of the Green Power Resource to prevent cost- shifting to non-subscribed customers and Utility. These costs will include: • The cost of service for the Green Power Resource, which shall include all capital costs and expense, generator interconnection costs, including Ancillary Costs necessary for delivery to Utility transmission system, environmental and regulatory compliance costs, including reclamation and bonding, insurance costs, taxes, and other similar costs; • Costs associated with the procurement of the Green Power Resource, including the costs of the development and administration of a Request for Proposal (“RFP”) for the competitive solicitation and procurement of the Green Power Resource; and • The costs to administer the Green Power Program, excluding the incremental costs associated with the implementation of the residential portion that are recovered from Residential Enrollees. • In the event there are Clean Electricity Investment Tax Credits (“ITCs”) under Section 48E of the U.S Internal Revenue Code, or its successor, the ITCs would be applied to reduce the costs of the project consistent with standard ratemaking principles. • Utility shall use the most recent PSC-approved rate of return for electric service for the development of the GPP Annual Revenue Requirement. For Community Subscribers and C&I Subscribers, GPP monthly costs will be calculated as = GPP Monthly Costs ($) = GPP Cost Rate ($/kWh) 𝑥𝑥 (𝑀𝑀𝑀𝑀𝑀𝑀𝑀𝑀ℎ𝑙𝑙𝑙𝑙 𝑆𝑆𝑆𝑆𝑆𝑆𝑆𝑆𝑆𝑆𝑆𝑆𝑆𝑆𝑆𝑆𝑀𝑀𝑆𝑆𝑀𝑀𝑀𝑀 𝐿𝐿𝐿𝐿𝐿𝐿𝐿𝐿𝑙𝑙 (𝑘𝑘𝑘𝑘ℎ)−𝑇𝑇𝑀𝑀𝑀𝑀𝑇𝑇𝑙𝑙 𝑀𝑀𝑀𝑀𝑀𝑀𝑀𝑀ℎ𝑙𝑙𝑙𝑙 𝑅𝑅𝐿𝐿𝑆𝑆𝑆𝑆𝑅𝑅𝐿𝐿𝑀𝑀𝑀𝑀𝑆𝑆𝑇𝑇𝑙𝑙 𝑆𝑆𝑆𝑆𝑆𝑆𝑆𝑆𝑆𝑆𝑆𝑆𝑆𝑆𝑆𝑆𝑀𝑀𝑆𝑆𝑀𝑀𝑀𝑀 𝐿𝐿𝐿𝐿𝐿𝐿𝐿𝐿𝑙𝑙 (𝑘𝑘𝑘𝑘ℎ),𝑆𝑆𝑖𝑖 𝑇𝑇𝑆𝑆𝑆𝑆𝑙𝑙𝑆𝑆𝑆𝑆𝑇𝑇𝑆𝑆𝑙𝑙𝐿𝐿) • Monthly Subscription Level = Annual Subscription Level (akWh)/12 • Total Monthly Residential Subscription Level = Total Annual Residential Subscription Level (akWh)/12 For Residential Enrollees, Green Power Program monthly costs will be calculated as = GPP Cost Rate �$kWh�x (number of 100kWh blocks) x (100kWh)+𝑀𝑀𝑀𝑀𝑀𝑀𝑀𝑀ℎ𝑙𝑙𝑙𝑙 𝐴𝐴𝑅𝑅𝐴𝐴𝑆𝑆𝑀𝑀𝑆𝑆𝑆𝑆𝑀𝑀𝑆𝑆𝑇𝑇𝑀𝑀𝑆𝑆𝐿𝐿𝐿𝐿 𝐹𝐹𝐿𝐿𝐿𝐿 Residential Enrollees will pay a Monthly Administrative Fee of $X.XX per month which amount reflects the incremental administrative costs of residential participation in the Green Power Program. 429 Page 6 of 8 GPP CREDITS: The credits will include Energy Credits, Capacity Credits, and Exit Fee Credits that are adjusted on a monthly basis and discussed further below. 1. ENERGY CREDIT will be calculated as follows for each five-minute interval and summed for all intervals in a billing period: Energy Credit = Scheduled Amount x 15-Minute LMP + (Metered Amount – Scheduled Amount) x 5-Minute LMP Scheduled Amount is the forecast generation of the Green Power Resource, in MWh as determined by Utility for the 5-minute interval; 15-Minute LMP is the Fifteen Minute Market LMP for the Green Power Resource node, in $/MWh, as determined by the WEIM or its successor; Metered Amount is the metered production of the Green Power Resource in MWh over the 5-minute interval; 5-Minute LMP is the Realtime Dispatch LMP for the Green Power Resource node, in $/MWh, as determined by the WEIM or its successor. Due to processing of LMP data, the Energy Credit calculation will be applied no later than 30 days after the final date of a given billing period. 2. CAPACITY CREDIT will be calculated as the Capacity Value, in $/kW-month, times the Capacity Accreditation. Utility will receive the seasonal Capacity Accreditation for the upcoming season before the season (twice a year). When the accreditations are received for the upcoming season, the Utility will post the original accreditation from the Resource Adequacy Program on a site available to all Subscribers and the credits will be adjusted prior to the beginning of that season. 3. EXIT FEE CREDIT will be calculated as the sum of all revenues received from Exit Fees less Monthly Exit Fee Credits applied to the GPP Credit Rate in prior months. The Monthly Exit Fee Credit will be equal to the Exit Fee Credit divided by the number of months of the remaining Depreciable Life of the Green Power Resource. GPP Credit Rate ($/kWh) = (𝐺𝐺𝐺𝐺𝐺𝐺 𝐸𝐸𝑀𝑀𝐿𝐿𝑆𝑆𝐸𝐸𝑙𝑙 𝐶𝐶𝑆𝑆𝐿𝐿𝑅𝑅𝑆𝑆𝑀𝑀+𝐺𝐺𝐺𝐺𝐺𝐺 𝐶𝐶𝑇𝑇𝑆𝑆𝑇𝑇𝑆𝑆𝑆𝑆𝑀𝑀𝑙𝑙 𝐶𝐶𝑆𝑆𝐿𝐿𝑅𝑅𝑆𝑆𝑀𝑀+𝑀𝑀𝑀𝑀𝑀𝑀𝑀𝑀ℎ𝑙𝑙𝑙𝑙 𝐸𝐸𝑥𝑥𝑆𝑆𝑀𝑀 𝐹𝐹𝐿𝐿𝐿𝐿 𝐶𝐶𝑆𝑆𝐿𝐿𝑅𝑅𝑆𝑆𝑀𝑀)($)(𝑇𝑇𝑀𝑀𝑀𝑀𝑇𝑇𝑙𝑙 𝐴𝐴𝑀𝑀𝑀𝑀𝑆𝑆𝑇𝑇𝑙𝑙 𝑆𝑆𝑆𝑆𝑆𝑆𝑆𝑆𝑆𝑆𝑆𝑆𝑆𝑆𝑆𝑆𝑀𝑀𝑆𝑆𝑀𝑀𝑀𝑀 𝐿𝐿𝐿𝐿𝐿𝐿𝐿𝐿𝑙𝑙)(𝑘𝑘𝑘𝑘ℎ) For Community Subscribers and C&I Subscribers, Green Power Program monthly credits will be calculated as = GPP Credit Rate ($/kWh) x (Monthly Subscription Level (kWh) – Total Monthly Residential Subscription Level (kWh), if applicable) • Monthly Subscription Level = Annual Subscription Level (akWh)/12 430 Page 7 of 8 • Total Monthly Residential Subscription Level = Total Annual Residential Subscription Level (akWh)/12 For Residential Enrollees, GPP monthly credit will be calculated as: GPP Credits ($) = GPP Credit Rate ($/kWh) x (number of 100kWh blocks) x 100 kWh CLEAN ELECTRICITY PRODUCTION TAX CREDITS (“PTCs”): Under Section 45Y of the U.S Internal Revenue Code, or its successor, PTCs will be applied to the Green Power Program, as applicable. The application of PTCs will be adjusted to levelize the benefit over the Depreciable Life of the Green Power Resource, such that the net present value of the PTC benefits that are passed on to all Subscribers in their bills over the Depreciable Life of the Green Power Resource will equal the net present value of the PTCs generated by the Green Power Resource, grossed up for taxes. RENEWABLE ENERGY CERTIFICATES: Utility shall retire renewable energy certificates (“RECs”) associated with the output of the Green Power Resource on behalf of Community Subscribers and C&I Subscribers according to each customer’s subscription amount and the corresponding share of the output of the Green Power Resource. Community Subscribers and C&I Subscribers shall claim all attributes and receive all benefits of the RECs from the Green Power Resource. For Community Subscribers, this includes the RECs associated with the Total Annual Residential Subscription Level in the jurisdiction of the Community Subscriber. Utility will not sell any RECs generated by the Green Power Resource nor claim any benefits or attributes for the Community Subscribers’ and C&I Subscribers’ allocated RECs generated by the Green Power Resource. RESERVE FUND: Utility will establish a Reserve Fund sufficient to cover an insurance retention amount identified for the Green Power Program. Utility shall collect contributions to the Reserve Fund from Subscribers through a percentage surcharge applied to the GPP Cost Rate and will include this surcharge on Subscribers monthly bills until the then current insurance retention amount is collected. The surcharge percentage will be set as a fixed percentage, calculated in the initial compliance filing to collect the required retention amount over the first 10 years of the program. If the Reserve Fund balance falls below the then current insurance retention amount, Utility will recommence collections at the same surcharge percentage until the insurance retention amount is restored. Utility shall hold the funds in a restricted, interest-bearing account. Interest earned will remain in the Reserve Fund. The Reserve Fund shall only be used for Green Power Program-related expenses associated with an Insurable Event or force majeure cost recovery and shall not be used for general operating and maintenance purposes or unrelated expenses. No commitment is made to provide any specific interest rate on the funds collected pursuant to this provision. Reserve Fund balances will not be included in Subscribers Exit Fees. At the conclusion of the Green Power Program, any remaining Reserve Fund balance will be returned to Subscribers proportionally by Subscription Level. INSURANCE REQUIREMENTS: Utility represents it has significant insurance coverage for its real and personal property. Utility must insure the Green Power Resource in the same manner and extent of coverage that Utility insures all of its real and personal property assets. 431 Page 8 of 8 TIME AND MANNER OF FILINGS: Utility shall make a compliance filing following the completion of a successful RFP for a Green Power Resource(s) within [XX] days of the final execution of [name of contract]. The compliance filing will include: • Description of the Green Power Resource(s) selected; • Description of the competitive RFP process; • The Depreciable Life of the Green Power Resource; • Overview of all Subscribers; and • Calculation of estimated GPP Annual Revenue Requirement and associated Green Power Program rates and charges, including Energy and Capacity Credits. Following the date in which the Green Power Resource is first operational, Utility shall make a compliance filing to the PSC updating the Green Power Program costs and rates, including Energy and Capacity Credits and re-calculations of the GPP Cost Rate and GPP Credit Rate. Utility will, by November 15 each year, file an annual compliance filing reporting the participation and associated costs and revenues associated with the Green Power Program. This filing will include maintenance reports, reports on capital equipment costs, insurance valuation and coverage, the balance of the Reserve Fund and any Reserve Fund expenditures, and updates to Green Power Program costs, credits, and rates, to be effective January 1 of the following year on an interim basis pending Commission approval. RING FENCING: The Green Power Resource will be owned by Utility (or any successor thereof). Utility may not transfer, merge, sell, lease, or otherwise dispose of the Green Power Resource or any portion thereof without first receiving approval from the PSC. SERVICE AND RATES SUBJECT TO PSC JURISDICTION: All rates and service conditions under this Tariff are governed by the rules and regulations of the PSC and are subject to revision as the PSC may duly authorize in the exercise of its jurisdiction. 432 Notice of Interest This Notice of Interest represents a non-binding expression of interest by [insert name of customer], with office located [insert mailing address] (“Customer”), in NorthWestern Corporation d/b/a NorthWestern Energy’s (“NorthWestern”) Montana Green Power Program. NorthWestern is developing a Montana Public Service Commission-approved Green Power Program to provide an option for eligible customers to reduce their greenhouse gas emissions associated with electricity service. Customer’s desired load commitment in NorthWestern’s Green Power Program is [insert load commitment in annual kilowatt hours (akWh)], which cannot exceed Customer’s preceding year’s total annual energy consumption (akWh) at the premises customer would include in this program, as identified in Appendix A of this Notice of Interest. Customer confirms they meet the following requirements to participate in the Green Power Program: • Customer is either a Montana county or incorporated city or town that receives electric supply service from NorthWestern OR is a non-residential electric supply customer receiving service under Tariff Schedule Nos. GSEDS-1 or GSEDS-2; and • The undersigned has authority to sign the Notice of Interest on behalf of Customer. After receiving a notice from NorthWestern, Customer acknowledges it must submit a binding Subscription Agreement to NorthWestern within 60 days in order to participate in the Green Power Program. The submission of the Subscription Agreement is a binding commitment to participate in the Green Power Program for the Depreciable Life of the Green Power Resource, subject to provisions for exit and transferability. Submission of this Notice of Interest does not guarantee participation in the Green Power Program, nor does it bind a customer to submission of a Subscription Agreement. NorthWestern will prioritize participation in the Green Power Program to customers who submitted Notices of Interest prior to the procurement process for the Green Power Resource. 433 CUSTOMER Signature: _____________________________ Name: ________________________________ Title: _________________________________ Date: _________________________________ 434 APPENDIX A Green Power Program Premises Customer currently receives electric bundled service from NorthWestern under the identified Customer account(s) at each of the premises selected by Customer to participate in the Green Program and listed below. Premises, and related account numbers, are subject to change from time to time. No. Customer Name / Billing Name Account Number Location Address Annual Total Energy Consumption (akWh) Subscription Level (akWh) 1 [Customer Name] [NorthWestern Account Number] [Address Line 1] [City], Montana [Zip Code] 2 3 4 5 6 7 8 9 10 11 435 Green Power Program – Community Subscription Agreement Page 1 of 11 Green Power Program Community Subscription Agreement This Green Power Program Community Subscription Agreement (“Agreement”) is entered into this _____ day of ________, 20__, by and between NorthWestern Corporation d/b/a NorthWestern Energy (“NorthWestern”), a Delaware corporation, and ___________ (“Community Subscriber”), a government unit in the State of Montana. NorthWestern and Community Subscriber may individually or collectively be referred to herein as a “Party” or “Parties,” respectively. RECITALS Community Subscriber is a Montana county or incorporated city or town that receives electric supply service from NorthWestern for the premises listed in Appendix A; Community Subscriber desires to reduce its greenhouse gas emissions and participate in NorthWestern’s Green Power Program (“Green Program”); and Community Subscriber’s subscription to the Green Program is further described in the Green Power Program Tariff (“Green Tariff”) approved by the Montana Public Service Commission (“PSC”) in Docket No. ________. AGREEMENT Subject to NorthWestern’s Rules and Regulations for Electric Service and the PSC-approved Green Tariff and applicable tariff schedules of NorthWestern, NorthWestern and Community Subscriber agree as follows: 1. Definitions. Unless otherwise defined in this Agreement, all capitalized terms have the meaning ascribed to them in the Green Tariff. a. Commercial Operation means the date in which the Green Power Resource (“Green Resource”) is in-service providing energy and capacity to NorthWestern’s system that is not considered test energy. b. Force Majeure means a cause or event that hinders or prevents a Party from performing its obligations under the Green Tariff if such act or event (i) is beyond the reasonable control of, and without the fault of negligence of the Party claiming Force Majeure, (ii) such condition, event, or circumstance, despite the exercise of due diligence, could not be prevented, avoided or removed by the party claiming Force Majeure, (iii) such condition, event, or circumstance has a material adverse effect on the ability of the Party claiming Force Majeure to fulfill its obligations under the Green Tariff, or (iv) such condition, event, or circumstance frustrates the purpose of the Green Tariff. These causes or events include, but are not limited to, emergency, floods, wildfires, named storms, sinkholes, lightning strikes, earthquakes, hurricanes, tornados, pandemics, adverse weather conditions not reasonably anticipated or acts of God; sabotage; vandalism beyond that which could reasonably be prevented by a party claiming Force Majeure; terrorism; war; riots; fire; wildfire; explosion; blockades; insurrection; and action or failure to take action by any governmental authority after the date of 436 Green Power Program – Community Subscription Agreement Page 2 of 11 effectiveness of this Agreement including the adoption or change in any rule or regulation or environmental constraints lawfully imposed by such governmental authority that impact the completion or operation of the Green Resource, but only if such requirements, actions, or failures to act either prevent or delay (i) the ability of the Green Resource to operate as originally designed and generate energy and capacity to NorthWestern’s system; or (ii) the ability, despite due diligence, for NorthWestern to obtain any licenses, permits, or approvals required by any governmental authority. 2. Subscription Level. a. The subscription level for this Agreement, established as annual kilowatt hours (“akWh”) is [insert amount] (the “Subscription Level”), and represents Community Subscriber’s allocated commitment to the Green Program and determines its responsibility for the cost of the Green Program and the costs and benefits from the Green Resource. b. Community Subscriber’s Subscription Level is less than the aggregate annual total energy consumption in akWh required by the premises as of the effective date of this Agreement, listed in Appendix A. c. By following the process set forth in the Green Tariff, Community Subscriber may annually make available a portion (not to exceed 100%) of the Subscription Level to residential electric customers of NorthWestern within the boundaries of the Community Subscriber’s jurisdictional boundaries (“Residential Subscribers”). Community Subscriber shall be responsible for: (i) any portion of the allocated Subscription Level not subscribed to by Residential Subscribers during the annual process; and (ii) any costs and credits of the Subscription Level allocated to Residential Subscribers that are not paid by, or credited to, Residential Subscribers due to early termination of their 12-month commitment. 3. Tariff Rate. a. Beginning on the first day of the month following the date in which the Green Resource achieves Commercial Operation and through the entire term of the Agreement, Community Subscriber shall monthly pay, or be credited by, NorthWestern the net of the Green Power Program Costs and Credits detailed in the Green Tariff. The Green Power Costs and Credits may change from time to time upon receipt of approval from the PSC. Charges and credits as provided in the Green Tariff will be stated as separate line items on Community Subscriber’s monthly electric invoice(s). As of the effective date of this Agreement, the GPP Cost Rate set forth in the Green Tariff is estimated by NorthWestern to be $[the greater of the price/kWh associated with the top scoring bids identified in the RFP process]/kWh. As of the effective date of this Agreement, the GPP Credit Rate set forth in the Green Tariff is estimated by NorthWestern to be $[the estimated credits associated with the bid selected for the cost estimate, including a 12-month historical average of the market price for the LMP or market hub that best correlates with the bid selected for the cost estimate]/kWh. Upon completion of the PSC compliance filing process contemplated by Section 9.a, within 10 business 437 Green Power Program – Community Subscription Agreement Page 3 of 11 days, NorthWestern will provide Community Subscriber with notice of the estimated rate set forth in the Green Tariff. b. On an annual basis, NorthWestern will invoice Community Subscriber for any remaining costs and credits of the Subscription Level allocated to Residential Subscribers that are not paid by, or credited to, Residential Subscribers due to early termination of their 12-month commitment. If the remaining costs and credits result in a net cost, Community Subscriber shall pay the invoice within 60 days. c. During the term of this Agreement, NorthWestern will deliver to Community Subscriber energy and service pursuant to the NorthWestern retail electric service tariffs in which Community Subscriber participates. The charges assessed to Community Subscriber under the Green Tariff do not replace or modify the charges incurred by Community Subscriber under the retail electric service tariffs in which Community Subscriber participates associated with the receipt of electric service. 4. Green Resource/RECs. a. NorthWestern will maintain the Green Resource consistent with Good Utility Practices. NorthWestern shall submit maintenance reports and capital equipment costs in its annual compliance filing to the PSC. b. The amount of energy generation and quantity of the renewable energy certificates (“RECs”) produced by the Green Resource may vary annually due to a variety of reasons, including but not limited to weather conditions, periodic maintenance, emergency outages and curtailments. Although a minimum amount of energy and RECs from the Green Resource is not guaranteed, NorthWestern will, consistent with Good Utility Practice, operate the Green Resource in a manner with a goal of maximizing the production of generation and RECs for the benefit of Subscribers. If NorthWestern receives compensation for loss of generation during the term of this Agreement, such compensation will be passed on to Subscribers through GPP Cost and Credit Rates, as applicable. Community Subscriber acknowledges this variability in the Green Resource. c. Community Subscriber will not receive title or have any direct right to any of the energy produced by the Green Resource. NorthWestern will retain all energy, capacity, and other attributes and benefits associated with the Green Resource except as specifically set forth in this Agreement, and excluding Energy Credits, Capacity Credits, and Exit Fee Credits as calculated in the Green Tariff. d. NorthWestern agrees to track and administer all RECs produced by the Green Resource in a manner consistent with similar RECs produced by NorthWestern’s own renewable generating facilities. Community Subscriber is entitled to a proportional share of RECs produced by the Green Resource as described in the Green Power Program Tariff. NorthWestern will not sell any RECs generated by the Green Resource and shall retire, on behalf of the Community Subscriber, the Community Subscriber’s allocated RECs annually, so that the Community Subscriber can claim all attributes and benefits of the RECs from the Green Resource. NorthWestern will provide Community Subscriber with an annual statement reflecting the RECs generated by the Green Resource and retired on behalf of Community Subscriber. 5. Term and Termination. 438 Green Power Program – Community Subscription Agreement Page 4 of 11 a. This Agreement is effective on the date first noted above and shall remain in effect until the end of the Depreciable Life of the Green Resource defined in the Green Tariff, unless terminated earlier in accordance with this Agreement. Upon achieving Commercial Operation of the Green Resource, NorthWestern will provide Community Subscriber with notice: (i) of the commencement of its tariff obligation set forth in Section 3.a; (ii) confirming the Depreciable Life; and (iii) corresponding term of the Agreement. b. This Agreement will automatically terminate with no force and effect and no further obligations owed by either Party if the PSC does not approve the compliance filing made by NorthWestern pursuant to Section 9.a of this Agreement. Further, NorthWestern may terminate this Agreement with no force and effect and no further obligations owed by either Party if the PSC does not approve the compliance filing in Section 9.a upon acceptable terms and conditions to NorthWestern. c. NorthWestern may terminate this Agreement if Community Subscriber fails to comply with any of its material obligations under this Agreement or the Green Tariff. Upon the occurrence of a default, including but not limited to Community Subscriber’s failure to pay the Green Tariff rate in accordance with Section 3.a or failure to pay any balance owed from Residential Subscribers in accordance with Section 3.b, NorthWestern shall provide written notice to the Community Subscriber. Within 60 days after receipt of notice, Community Subscriber shall remedy the default. If Community Subscriber fails to remedy the default or fails to commence efforts and thereafter with due diligence pursue resolution of the default, NorthWestern may terminate this Agreement and invoice Community Subscriber for the Exit Fee in accordance with Section 6 of this Agreement. NorthWestern may also terminate this Agreement upon the occurrence of Community Subscriber’s repetitive failure (two or more notifications in the same calendar year) to timely pay the Green Tariff rate in accordance with Section 3. d. Community Subscriber may terminate this Agreement at any time during the term of this Agreement upon delivery of the Exit Fee to NorthWestern in accordance with Section 6 of this Agreement. e. Community Subscriber may reduce its Subscription Level if either (1) NorthWestern approves of an Eligible Community Customer(s) or an Eligible C&I Customer(s) assuming the reduced Subscription Level amount by executing an appropriate Subscription Agreement or (2) the Community Subscriber pays the Exit Fee for the reduced Subscription Level as set forth in Section 6. 6. Exit Fee. a. The Parties agree that it would be difficult and impracticable under the presently known and anticipated facts and circumstances to ascertain all damages NorthWestern would incur should Community Subscriber terminate this Agreement or otherwise fail to make payments in accordance with the Green Tariff for the entire term of this Agreement. Accordingly, the Parties hereby agree that if NorthWestern terminates this Agreement in accordance with Section 5.c above for cause or if Community Subscriber terminates this Agreement in accordance with Section 5.d for its convenience, then Community Subscriber shall pay, as NorthWestern’s sole and exclusive remedy, as liquidated damages and not as a penalty, an Exit Fee to NorthWestern. 439 Green Power Program – Community Subscription Agreement Page 5 of 11 b. For the purpose of this Agreement, the “Exit Fee” means an amount not less than zero that is equal to Community Subscriber’s remaining monetary obligation under the Agreement, less an estimate of the credits Community Subscriber would have received under the Green Tariff. NorthWestern shall determine the remaining monetary obligation by calculating the costs and subtracting a forecasted credit over the remaining years of the agreement. The cost will be calculated by multiplying the monthly Subscription Level by the then-applicable Green Tariff monthly GPP Cost Rate by the number of months remaining until the end of the Depreciable Life of the Green Resource. The credit will be forecasted for the Capacity Credit as well as the Energy Credit and the current Exit Fee Credit will be applied. The Capacity Credit for exiting customers will be based on the Capacity Value and the current Capacity Accreditation, reduced or increased by any historical trend of the accredited capacity for that particular resource. The forecasted Energy Credit will be calculated on a net present value basis at the time the Community Subscriber exits and will reflect the expected hourly delivery of the Green Resource for the remainder of the applicable term. The forecasted energy credit will be based on the LMP or market hub that best correlates with the historical Energy Credit calculated for the Green Resource and for which a market price forecast is available to NorthWestern. The Exit Fee Credit will be calculated as the sum of all revenues received from Exit Fees less Monthly Exit Fee Credits applied to the GPP Credit Rate in prior months. The Monthly Exit Fee Credit will be equal to the Exit Fee Credit divided by the number of months of the remaining Depreciable Life of the Green Resource. c. Exit Fee payments are final. If there is a difference between the Exit Fee and the actual costs or credits of the Green Program, this difference is distributed across remaining Subscribers through the GPP Cost Rate and GPP Credit Rate calculations as described in the Green Tariff. d. NorthWestern shall provide written notice to Community Subscriber with the amount of the Exit Fee and documentation of its calculation upon request. Community Subscriber shall pay the Exit Fee to NorthWestern within 90 days from the termination date. e. Community Subscriber is not obligated to pay the Exit Fee if: (i) this Agreement is assigned to a third party in accordance with Section 8 who assumes Community Subscriber’s remaining obligations under this Agreement; (ii) Community Subscriber transfers a premise listed in Appendix A to a NorthWestern customer who is eligible to participate in the Green Program and that customer executes an applicable Green Program Subscription Agreement for the portion of the Subscription Level attributable to that premise set forth in this Agreement within 90 days after NorthWestern issues notice of termination of this Agreement or (iii) Community Subscriber transfers its Subscription Level commitment, or a portion as described in Section 5.e, to another customer who is eligible to participate in the Green Program, and such customer executes, subject to approval by NorthWestern, an applicable Green Program Subscription Agreement with a commitment equal to or greater than the Subscription Level of Community Subscriber within 90 days of termination of this Agreement. If only part of the Subscription Level is successfully transferred to another Subscriber by executing a Subscription Agreement with 440 Green Power Program – Community Subscription Agreement Page 6 of 11 NorthWestern, Community Subscriber shall be responsible for the Exit Fee based on the Subscription Level not assumed by another Subscriber. f. If Community Subscriber fails to pay the Exit Fee, NorthWestern will make reasonable efforts to collect the Exit Fee from Community Subscriber. Community Subscriber shall be responsible for any attorneys’ fees incurred by NorthWestern in its efforts to collect the Exit Fee. g. Community Subscriber acknowledges that if another Subscriber fails to pay its appropriate Exit Fee, after NorthWestern has taken all reasonable efforts necessary to obtain payment of the Exit Fee, NorthWestern will seek to redistribute costs and credits of the Green Power Program across remaining Subscribers and Residential Subscribers as described in the Green Tariff. When seeking to redistribute costs and credits from unpaid Exit Fees, NorthWestern shall document its efforts to collect the Exit Fees from the defaulting Subscriber. 7. Green Tariff Incorporation. The terms and conditions of the Green Tariff, as approved by the PSC, are incorporated by reference into this Agreement. If a conflict arises between the Agreement and the Green Tariff, the Green Tariff controls. NorthWestern will post on its website notice of any filings with the PSC impacting the Green Tariff and will notify Community Subscriber of any such approved changes to the Green Tariff and need to amend this Agreement. NorthWestern will provide notice to Community Subscriber of any filings made by NorthWestern impacting the Green Tariff. 8. Assignment. Community Subscriber may not assign the Agreement or any of the rights, obligations or benefits of the Agreement to any other person or entity without NorthWestern’s approval, such approval not to be unreasonably withheld provided the assignee satisfies NorthWestern’s requirements for participation. 9. Compliance Filing/Regulation by the PSC. a. NorthWestern shall submit a Green Tariff compliance filing to the PSC reflecting the estimated GPP Cost Rate for the development, operation and maintenance of the Green Resource no later than 60 days from (1) receipt and acceptance of Subscription Agreements by NorthWestern equal to or above the akWh of the selected Green Resource and (2) the execution of a material procurement, construction or build/transfer contract(s) with the developer of the Green Resource. b. NorthWestern shall submit a Green Tariff compliance filing to the PSC establishing the GPP Cost Rate after construction costs are finalized and shall submit subsequent annual compliance filings as described in the Green Tariff. c. Community Subscriber acknowledges that NorthWestern, as a public utility, is subject to regulation by the PSC and that this Agreement may be filed with the PSC. As such, NorthWestern may be required to submit information, data, or documents regarding this Agreement to the PSC, including in any related docket or regulatory proceeding. Community Subscriber acknowledges that, notwithstanding anything herein to the contrary, NorthWestern may submit a copy of this Agreement and any other related information, including Community Subscriber’s energy use data, related to this Green Program to the PSC. If Community Subscriber believes that 441 Green Power Program – Community Subscription Agreement Page 7 of 11 any information, data, or documents, other than this Agreement, that NorthWestern plans or is required to submit to the PSC is confidential information subject to protection, Community Subscriber shall notify NorthWestern immediately and Community Subscriber shall be responsible for seeking the relevant protective order from the PSC for such information. 10. Force Majeure. a. Suspension/Costs. If the Green Resource is completely or partially destroyed by events constituting Force Majeure, NorthWestern and Community Subscriber shall have their respective obligations under this Agreement immediately and temporarily suspended during the period the Green Resource is producing significantly less energy than its average energy production. The temporary suspension will end when NorthWestern decides whether to repair or replace the resource and any intended repair or replacement is completed. During a suspension, and until a decision is made pursuant to this Section and a new GPP Annual Revenue Requirement is approved by the PSC, if applicable, Community Subscriber may not transfer its Subscription or exit the Green Program. Within 60 days of the initiation of temporary suspension, NorthWestern must determine all necessary costs to repair or replace the Green Resource and provide written documentation to Community Subscriber of the costs, insurance proceeds, and the remaining balance of the GPP Annual Revenue Requirement not covered by insurance proceeds. NorthWestern may extend this 60-day period by providing notice to Community Subscriber detailing their due diligence to compile and distribute this information to Community Subscriber. b. Application of Property Insurance: NorthWestern must apply the proceeds of all property insurance covering the Green Resource to repair or replacement if the Green Resource is repaired or replaced. If the Green Resource is not repaired or replaced, NorthWestern must apply all insurance proceeds to the GPP Annual Revenue Requirement to reduce costs to Subscribers. c. Discretionary Repair or Replacement. If the Green Resource is damaged by a Force Majeure event such that repair or replacement is required, NorthWestern will evaluate the costs, schedule, insurance proceeds, and other relevant considerations associated with repairing or replacing the Green Resource. NorthWestern will provide the Subscribers with the information reasonably necessary to understand the estimated costs, the application of available insurance proceeds, and the potential impact on the GPP Annual Revenue Requirement and will inform Subscribers that any resulting cost recovery is subject to Commission review. NorthWestern will allow Subscribers a reasonable opportunity to provide input regarding the repair or replacement of the Green Resource. NorthWestern will meaningfully consider this input in good faith before making a final decision. After considering such input, NorthWestern will determine whether to repair or replace the Green Resource. d. Costs Beyond Insurance Proceeds. If the Green Resource is repaired or replaced pursuant to this Section, NorthWestern must first apply all available insurance proceeds to such costs for repair or replacement. NorthWestern shall use the 442 Green Power Program – Community Subscription Agreement Page 8 of 11 Reserve Fund to cover any costs for repair or replacement of the Green Resource that are not covered by insurance proceeds. Any remaining costs for repair or replacement shall be included in the GPP Annual Revenue Requirement to be recovered from Subscribers over the Depreciable Life of the Green Resource. The original Depreciable Life of the Green Resource may be extended by NorthWestern for a commercially reasonable time by any such repair or replacement. Any GPP Credits unpaid during the temporary suspension shall be added to the GPP Credit Rate and delivered to Subscribers. e. Costs if Green Resource is Not Repaired or Replaced. If the Green Resource is not repaired or replaced and is no longer in Commercial Operation as a result of the Force Majeure event, Community Subscriber will pay NorthWestern the Exit Fee, less any GPP Credits accrued during the temporary suspension. NorthWestern shall apply the Community Subscriber’s portion of the Reserve Fund toward offsetting the total Exit Fee due from Community Subscriber. Community Subscriber will have the option to pay this amount in one payment, or to pay off this amount over the original Depreciable Life of the Green Resource. If the Green Resource is not repaired or replaced yet remains in Commercial Operation after the Force Majeure event, Community Subscriber has the right to continue participating in the Green Program. 11. Insurance Requirements. NorthWestern represents it has significant insurance coverage for its real and personal property; as such, NorthWestern must insure the Green Resource in the same manner and extent of coverage that NorthWestern insures all of its real and personal property assets. 12. Notice. All notices, requests, consents, claims, demands, waivers and other communications under this Agreement must be in writing and will be deemed to have been given (i) when delivered by hand (with written confirmation of receipt); (ii) when received by the addressee if sent by a nationally-recognized overnight courier (receipt requested); (iii) on the date sent by electronic transmission (including by e-mail) if sent during normal business hours of the recipient, and on the next business day if sent after normal business hours of the recipient, or (iv) on the 3rd day after the date mailed, by certified or registered mail, return receipt requested, postage prepaid. Unless a Party has designated a different officer or address for itself by written notice to the other hereunder, such communications will be sent to the respective Party as follows: If to NorthWestern: NorthWestern Corporation d/b/a NorthWestern Energy [Title] [Bin Number] 11 E. Park Street Butte, Montana 59701 Email: [______________________] If to Community Subscriber: [Community Subscriber Name] 443 Green Power Program – Community Subscription Agreement Page 9 of 11 Attention: [___________________] [Address Line 1] [Address Line 2] [City], [State] [Zip Code] Email: [______________________] 13. No Third-Party Benefit. Nothing in this Agreement will be construed to create any duty, obligation or liability of NorthWestern or Community Subscriber to any person not a party to this Agreement. 14. Severability. If any portion of this Agreement is held to be void or unenforceable, the balance thereof shall continue to be effective. 15. Survival. All covenants, representations, warranties and agreements of the Parties shall survive the expiration or termination of this Agreement and continue until such time as the obligations of the Parties hereto have been discharged in full. 16. Binding Effect. This Agreement is binding upon and inures to the benefit of the heirs, legal representatives, successors and assigns of the Parties. 17. Headings. The headings used in this Agreement are for convenience only and cannot be construed as a part of the Agreement or as a limitation on the scope of the particular paragraphs to which they refer. 18. Counterparts. This Agreement may be executed in two or more counterparts, each of which will be deemed an original but all of which together will constitute one and the same instrument. 19. Governing Law. The validity, interpretation and performance of this Agreement, and each of its provisions, will be governed by the laws of the State of Montana without giving effect to principles of conflicts of law that would require the application of laws of another jurisdiction. The Parties agree that the state and federal courts, as applicable, of the State of Montana will have exclusive jurisdiction for the resolution of disputes under this Agreement and the Parties consent to such jurisdiction. 20. Waiver. A waiver by either Party of any of its rights with respect to the performance of any of the other Party’s obligations in this Agreement will not be deemed a waiver of the performance of any other obligation in this Agreement, nor will it be construed as a waiver to the same obligation in the future. 21. Amendment. Any modification or amendment to this Agreement (except as specifically set forth in Section 7) must be in writing and signed by both Parties. 22. Authority. Each Party represents that it has full power and authority to enter into and perform this Agreement and the person signing this Agreement on behalf of each Party has been properly authorized and empowered to sign this Agreement. 23. Entire Agreement. This Agreement, including the Green Tariff and the Lead Community Support Agreement if applicable, constitutes the entire Agreement between the Parties with respect to the subject matter hereof, and supersedes all prior contracts or understandings with respect to that subject matter. 444 Green Power Program – Community Subscription Agreement Page 10 of 11 IN WITNESS WHEREOF, the Parties have caused this Agreement to be duly executed as of the day and year first above written. NORTHWESTERN ENERGY Signature: _____________________________ Name: ________________________________ Title: _________________________________ Date: _________________________________ [COMMUNITY SUBSCRIBER] Signature: _____________________________ Name: ________________________________ Title: _________________________________ Date: _________________________________ 445 Green Power Program – Community Subscription Agreement Page 11 of 11 APPENDIX A Green Power Program Premises Community Subscriber currently receives electric bundled service from NorthWestern under the identified Community Subscriber account(s) at each of the premises selected by Community Subscriber to participate in the Green Program and listed below. Premises, and related account numbers, are subject to change from time to time. No. Community Subscriber Name / Billing Name Account Number Location Address Annual Total Energy Consumption (akWh) Subscription Level (akWh) 1 [Community Subscriber Name] [NorthWestern Account Number] [Address Line 1] [City], Montana [Zip Code] 2 3 4 5 6 7 8 9 10 11 446 Green Power Program – Commercial and Industrial Subscription Agreement Page 1 of 11 Green Power Program Commercial and Industrial Subscription Agreement This Green Power Program C&I Subscription Agreement (“Agreement”) is entered into this _____ day of ________, 20__, by and between NorthWestern Corporation d/b/a NorthWestern Energy (“NorthWestern”), a Delaware corporation, and ___________ (“C&I Subscriber”), a [insert business organization]. NorthWestern and C&I Subscriber may individually or collectively be referred to herein as a “Party” or “Parties,” respectively. RECITALS C&I Subscriber currently receives electric supply service from NorthWestern and distribution and/or retail transmission electric service from NorthWestern under Tariff Schedule Nos. GSEDS-1 or GSEDS-2 for the premises listed in Appendix A; C&I Subscriber desires to reduce its greenhouse gas emissions and participate in NorthWestern’s Green Power Program (“Green Program”); and C&I Subscriber’s subscription to the Green Program is further described in the Green Power Program Tariff (“Green Tariff”) approved by the Montana Public Service Commission (“PSC”) in Docket No. ________. AGREEMENT Subject to NorthWestern’s Rules and Regulations for Electric Service and the PSC- approved Green Tariff and applicable tariff schedules of NorthWestern, NorthWestern and C&I Subscriber agree as follows: 1. Definitions. Unless otherwise defined in this Agreement, all capitalized terms have the meaning ascribed to them in the Green Tariff. a. Commercial Operation means the date in which the Green Power Resource (“Green Resource”) is in-service providing energy and capacity to NorthWestern’s system that is not considered test energy. b. Force Majeure means a cause or event that hinders or prevents a Party from performing its obligations under the Green Tariff if such act or event (i) is beyond the reasonable control of, and without the fault of negligence of the Party claiming Force Majeure, (ii) such condition, event, or circumstance, despite the exercise of due diligence, could not be prevented, avoided or removed by the party claiming Force Majeure, (iii) such condition, event, or circumstance has a material adverse effect on the ability of the Party claiming Force Majeure to fulfill its obligations under the Green Tariff, or (iv) such condition, event, or circumstance frustrates the purpose of the Green Tariff. These causes or events include, but are not limited to, emergency, floods, wildfires, named storms, sinkholes, lightning strikes, earthquakes, hurricanes, tornados, pandemics, adverse weather conditions not reasonably anticipated or acts of God; sabotage; vandalism beyond that which could reasonably be prevented by a party claiming Force Majeure; terrorism; war; riots; fire; wildfire; explosion; blockades; insurrection; and action or failure to take action by any governmental authority after the date of 447 Green Power Program – Commercial and Industrial Subscription Agreement Page 2 of 11 effectiveness of this Agreement including the adoption or change in any rule or regulation or environmental constraints lawfully imposed by such governmental authority that impact the completion or operation of the Green Resource, but only if such requirements, actions, or failures to act either prevent or delay (i) the ability of the Green Resource to operate as originally designed and generate energy and capacity to NorthWestern’s system; or (ii) the ability, despite due diligence, for NorthWestern to obtain any licenses, permits, or approvals required by any governmental authority. 2. Subscription Level. a. The subscription level for this Agreement, established as annual kilowatt hours (“akWh”) is [insert amount] (the “Subscription Level”), and represents C&I Subscriber’s allocated commitment to the Green Program and determines its responsibility for the cost of the Green Program and the costs and benefits from the Green Resource. b. C&I Subscriber’s Subscription Level is less than the aggregate annual total energy consumption in akWh required by the premises as of the effective date of this Agreement, listed in Appendix A. 3. Tariff Rate. a. Beginning on the first day of the month following the date in which the Green Resource achieves Commercial Operation and through the entire term of the Agreement, C&I Subscriber shall monthly pay, or be credited by, NorthWestern the net of the Green Power Program Costs and Credits detailed in the Green Tariff. The Green Power Costs and Credits may change from time to time upon receipt of approval from the PSC. Charges and credits as provided in the Green Tariff will be stated as separate line items on C&I Subscriber’s monthly electric invoice(s). As of the effective date of this Agreement, the GPP Cost Rate set forth in the Green Tariff is estimated by NorthWestern to be $[the greater of the price/kWh associated with the top scoring bids identified in the RFP process]/kWh. As of the effective date of this Agreement, the GPP Credit Rate set forth in the Green Tariff is estimated by NorthWestern to be $[the estimated credits associated with the bid selected for the cost estimate, including a 12-month historical average of the market price for the LMP or market hub that best correlates with the bid selected for the cost estimate]/kWh. Upon completion of the PSC compliance filing process contemplated by Section 9.a, within 10 business days, NorthWestern will provide C&I Subscriber with notice of the estimated rate set forth in the Green Tariff. b. During the term of this Agreement, NorthWestern will deliver to C&I Subscriber energy and service pursuant to the NorthWestern retail electric service tariffs in which C&I Subscriber participates. The charges assessed to C&I Subscriber under the Green Tariff do not replace or modify the charges incurred by C&I Subscriber under the retail electric service tariffs in which C&I Subscriber participates associated with the receipt of electric service. 4. Green Resource/RECs. 448 Green Power Program – Commercial and Industrial Subscription Agreement Page 3 of 11 a. NorthWestern will maintain the Green Resource consistent with Good Utility Practices. NorthWestern shall submit maintenance reports and capital equipment costs in its annual compliance filing to the PSC. b. The amount of energy generation and quantity of the renewable energy certificates (“RECs”) produced by the Green Resource may vary annually due to a variety of reasons, including but not limited to weather conditions, periodic maintenance, emergency outages and curtailments. Although a minimum amount of energy and RECs from the Green Resource is not guaranteed, NorthWestern will, consistent with Good Utility Practice, operate the Green Resource in a manner with a goal of maximizing the production of generation and RECs for the benefit of Subscribers. If NorthWestern receives compensation for loss of generation during the term of this Agreement, such compensation will be passed on to Subscribers through GPP Cost and Credit Rates, as applicable. C&I Subscriber acknowledges this variability in the Green Resource. c. C&I Subscriber will not receive title or have any direct right to any of the energy produced by the Green Resource. NorthWestern will retain all energy, capacity, and other attributes and benefits associated with the Green Resource except as specifically set forth in this Agreement, and excluding Energy Credits, Capacity Credits, and Exit Fee Credits as calculated in the Green Tariff. d. NorthWestern agrees to track and administer all RECs produced by the Green Resource in a manner consistent with similar RECs produced by NorthWestern’s own renewable generating facilities. C&I Subscriber is entitled to a proportional share of RECs produced by the Green Resource as described in the Green Power Program Tariff. NorthWestern will not sell any RECs generated by the Green Resource and shall retire, on behalf of the C&I Subscriber, the C&I Subscriber’s allocated RECs annually, so that the C&I Subscriber can claim all attributes and benefits of the RECs from the Green Resource. NorthWestern will provide C&I Subscriber with an annual statement reflecting the RECs generated by the Green Resource and retired on behalf of C&I Subscriber. 5. Term and Termination. a. This Agreement is effective on the date first noted above and shall remain in effect until fifteen (15) years after the Commercial Operation Date of the Green Resource, at which point the Subscriber may terminate the Agreement subject to the Exit Fee provided for in Section 6, or take no action to have the Agreement renew automatically for additional five (5) year terms, with a final term not to exceed the Depreciable Life of the Green Resource defined in the Green Tariff, unless terminated earlier in accordance with this Agreement. Upon achieving Commercial Operation of the Green Resource, NorthWestern will provide C&I Subscriber with notice: (i) of the commencement of its tariff obligation set forth in Section 3a; and (ii) confirming the Depreciable Life. b. This Agreement will automatically terminate with no force and effect and no further obligations owed by either Party if the PSC does not approve the compliance filing made by NorthWestern pursuant to Section 9.a of this Agreement. Further, NorthWestern may terminate this Agreement with no force and effect and no 449 Green Power Program – Commercial and Industrial Subscription Agreement Page 4 of 11 further obligations owed by either Party if the PSC does not approve the compliance filing in Section 9.a upon acceptable terms and conditions to NorthWestern. c. NorthWestern may terminate this Agreement if C&I Subscriber fails to comply with any of its material obligations under this Agreement or the Green Tariff. Upon the occurrence of a default, including but not limited to C&I Subscriber’s failure to pay the Green Tariff rate in accordance with Section 3.a, NorthWestern shall provide written notice to the C&I Subscriber. Within 60 days after receipt of notice, C&I Subscriber shall remedy the default. If C&I Subscriber fails to remedy the default or fails to commence efforts and thereafter with due diligence pursue resolution of the default, NorthWestern may terminate this Agreement and invoice C&I Subscriber for the Exit Fee in accordance with Section 6 of this Agreement. NorthWestern may also terminate this Agreement upon the occurrence of C&I Subscriber’s repetitive failure (two or more notifications in the same calendar year) to timely pay the Green Tariff rate in accordance with Section 3. d. C&I Subscriber may terminate this Agreement at any time during the term in this Agreement upon delivery of the Exit Fee to NorthWestern in accordance with Section 6 of this Agreement. e. C&I Subscriber may reduce its Subscription Level if either (1) NorthWestern approves of an Eligible Community Customer(s) or an Eligible C&I Customer(s) assuming the reduced Subscription Level amount by executing an appropriate Subscription Agreement or (2) the C&I Subscriber pays the Exit Fee for the reduced Subscription Level as set forth in Section 6. 6. Exit Fee. a. The Parties agree that it would be difficult and impracticable under the presently known and anticipated facts and circumstances to ascertain all damages NorthWestern would incur should C&I Customer terminate this Agreement before the end of the Depreciable Life of the Green Resource, or otherwise fail to make payments in accordance with the Green Tariff through the end of the Depreciable Life of the Green Resource. Accordingly, the Parties hereby agree that if NorthWestern terminates this Agreement in accordance with Section 5.b above for cause or if C&I Subscriber terminates this Agreement in accordance with Section 5.d for its convenience, then C&I Subscriber shall pay, as NorthWestern’s sole and exclusive remedy, as liquidated damages and not as a penalty, an Exit Fee to NorthWestern. b. For the purpose of this Agreement, the “Exit Fee” means an amount not less than zero that is equal to C&I Subscriber’s remaining monetary obligation under the Agreement, less an estimate of the credits C&I Subscriber would have received under the Green Tariff. NorthWestern shall determine the remaining monetary obligation by calculating the costs and subtracting a forecasted credit over the remaining years of the Agreement. The cost will be calculated by multiplying the monthly Subscription Level by the then-applicable Green Tariff monthly cost rate by the number of months remaining until the end of the Depreciable Life of the Green Resource. The credit will be forecasted for the Capacity Credit as well as the Energy Credit and the current Exit Fee Credit will be applied. The Capacity Credit for exiting customers will be based on the Capacity Value and the current Capacity 450 Green Power Program – Commercial and Industrial Subscription Agreement Page 5 of 11 Accreditation, reduced or increased by any historical trend of the accredited capacity for that particular resource. The forecasted Energy Credit will be calculated on a net present value basis at the time the C&I Subscriber exits and will reflect the expected hourly delivery of the Green Resource for the remainder of the applicable term. The forecasted energy credit will be based on the LMP or market hub that best correlates with the historical Energy Credit calculated for the Green Resource and for which a market price forecast is available to NorthWestern. The Exit Fee Credit will be calculated as the sum of all revenues received from Exit Fees less Monthly Exit Fee Credits applied to the GPP Credit Rate in prior months. The Monthly Exit Fee Credit will be equal to the Exit Fee Credit divided by the number of months of the remaining Depreciable Life of the Green Resource. c. Exit Fee payments are final. If there is a difference between the Exit Fee and the actual costs or credits of the Green Program, this difference is distributed across remaining Subscribers through the GPP Cost Rate and GPP Credit Rate calculations as described in the Green Tariff. d. NorthWestern shall provide written notice to C&I Subscriber with the amount of the Exit Fee and documentation of its calculation upon request. C&I Subscriber shall pay the Exit Fee to NorthWestern within 90 days from the termination date. e. C&I Subscriber is not obligated to pay the Exit Fee if: (i) this Agreement is assigned to a third party in accordance with Section 8 who assumes C&I Subscriber’s remaining obligations under this Agreement; (ii) C&I Subscriber transfers a premise listed in Appendix A to a NorthWestern customer who is eligible to participate in the Green Program and that customer executes an applicable Green Program Subscription Agreement for the portion of the Subscription Level attributable to that premise set forth in this Agreement within 90 days after NorthWestern issues notice of termination of this Agreement or (iii) C&I Subscriber transfers its Subscription Level commitment, or a portion thereof as described in Section 5.e, to another customer who is eligible to participate in the Green Program, and such customer executes, subject to approval by NorthWestern, an applicable Green Program Subscription Agreement with a commitment equal to or greater than the Subscription Level of C&I Subscriber within 90 days of termination of this Agreement. If only part of the Subscription Level is successfully transferred to another Subscriber by executing a Subscription Agreement with NorthWestern, C&I Subscriber shall be responsible for the Exit Fee based on the Subscription Level not assumed by another Subscriber. f. If C&I Subscriber fails to pay the Exit Fee, NorthWestern will make reasonable efforts to collect the Exit Fee from C&I Subscriber. C&I Subscriber shall be responsible for any attorneys’ fees incurred by NorthWestern in its efforts to collect the Exit Fee. g. C&I Subscriber acknowledges that if another Subscriber fails to pay its appropriate Exit Fee, after NorthWestern has taken all reasonable efforts necessary to obtain payment of the Exit Fee, NorthWestern will seek to redistribute costs and credits of the Green Power Program across remaining Subscribers and Residential Subscribers as described in the Green Tariff. When seeking to redistribute costs and credits associated with defaulting Subscribers from unpaid Exit Fees, 451 Green Power Program – Commercial and Industrial Subscription Agreement Page 6 of 11 NorthWestern shall document its efforts to collect the Exit Fees from the defaulting Subscriber. 7. Green Tariff Incorporation. The terms and conditions of the Green Tariff, as approved by the PSC, are incorporated by reference into this Agreement. If a conflict arises between the Agreement and the Green Tariff, the Green Tariff controls. NorthWestern will post on its website notice of any filings with the PSC impacting the Green Tariff and will notify C&I Subscriber of any such approved changes to the Green Tariff and need to amend this Agreement. NorthWestern will provide notice to C&I Subscriber of any filings made by NorthWestern impacting the Green Tariff. 8. Assignment. C&I Subscriber may not assign the Agreement or any of the rights, obligations or benefits of the Agreement to any other person or entity without NorthWestern’s approval, such approval not to be unreasonably withheld provided the assignee satisfies NorthWestern’s requirements for participation. 9. Compliance Filing/Regulation by the PSC. a. NorthWestern shall submit a Green Tariff compliance filing to the PSC reflecting the estimated GPP Cost Rate for the development, operation and maintenance of the Green Resource no later than 60 days from (1) receipt and acceptance of Subscription Agreements by NorthWestern equal to or above the akWh of the selected Green Resource and (2) the execution of a material procurement, construction or build/transfer contract(s) with the developer of the Green Resource. b. NorthWestern shall submit a Green Tariff compliance filing to the PSC establishing the GPP Cost Rate after construction costs are finalized and shall submit subsequent annual compliance filings as described in the Green Tariff. c. C&I Subscriber acknowledges that NorthWestern, as a public utility, is subject to regulation by the PSC and that this Agreement may be filed with the PSC. As such, NorthWestern may be required to submit information, data, or documents regarding this Agreement to the PSC, including in any related docket or regulatory proceeding. C&I Subscriber acknowledges that, notwithstanding anything herein to the contrary, NorthWestern may submit a copy of this Agreement and any other related information, including C&I Subscriber’s energy use data, related to this Green Program to the PSC. If C&I Subscriber believes that any information, data, or documents, other than this Agreement, that NorthWestern plans or is required to submit to the PSC is confidential information subject to protection, C&I Subscriber shall notify NorthWestern immediately and C&I Subscriber shall be responsible for seeking the relevant protective order from the PSC for such information. 10. Force Majeure. a. Suspension/Costs. If the Green Resource is completely or partially destroyed by events constituting Force Majeure, NorthWestern and C&I Subscriber shall have their respective obligations under this Agreement immediately and temporarily suspended during the period the Green Resource is producing significantly less energy than its average energy production. The temporary suspension will end when NorthWestern decides whether to repair or replace the resource and any 452 Green Power Program – Commercial and Industrial Subscription Agreement Page 7 of 11 intended repair or replacement is completed. During a suspension, and until a decision is made pursuant to this Section and a new GPP Annual Revenue Requirement is approved by the PSC, if applicable, C&I Subscriber may not transfer its Subscription or exit the Green Program. Within 60 days of the initiation of temporary suspension, NorthWestern must determine all necessary costs to repair or replace the Green Resource and provide written documentation to C&I Subscriber of the costs, insurance proceeds, and the remaining balance of the GPP Annual Revenue Requirement not covered by insurance proceeds. NorthWestern may extend this 60-day period by providing notice to C&I Subscriber detailing their due diligence to compile and distribute this information to C&I Subscriber. b. Application of Property Insurance: NorthWestern must apply the proceeds of all property insurance covering the Green Resource to repair or replacement if the Green Resource is repaired or replaced. If the Green Resource is not repaired or replaced, NorthWestern must apply all insurance proceeds to the GPP Annual Revenue Requirement to reduce costs to Subscribers. c. Discretionary Repair or Replacement. If the Green Resource is damaged by a Force Majeure event such that repair or replacement is required, NorthWestern will evaluate the costs, schedule, insurance proceeds, and other relevant considerations associated with repairing or replacing the Green Resource. NorthWestern will provide the Subscribers with the information reasonably necessary to understand the estimated costs, the application of available insurance proceeds, and the potential impact on the GPP Annual Revenue Requirement and will inform Subscribers that any resulting cost recovery is subject to Commission review. NorthWestern will allow Subscribers a reasonable opportunity to provide input regarding the repair or replacement of the Green Resource. NorthWestern will meaningfully consider this input in good faith before making a final decision. After considering such input, NorthWestern will determine whether to repair or replace the Green Resource. d. Costs Beyond Insurance Proceeds. If the Green Resource is repaired or replaced pursuant to this Section, NorthWestern must first apply all available insurance proceeds to such costs for repair or replacement. NorthWestern shall use the Reserve Fund to cover any costs for repair or replacement of the Green Resource that are not covered by insurance proceeds. Any remaining costs for repair or replacement shall be included in the GPP Annual Revenue Requirement to be recovered from Subscribers over the Depreciable Life of the Green Resource. The original Depreciable Life of the Green Resource may be extended by NorthWestern for a commercially reasonable time by any such repair or replacement. Any GPP Credits unpaid during the temporary suspension shall be added to the GPP Credit Rate and delivered to Subscribers. e. Costs if Green Resource is Not Repaired or Replaced. If the Green Resource is not repaired or replaced and is no longer in Commercial Operation as a result of the Force Majeure event, C&I Subscriber will pay NorthWestern the Exit Fee, less any GPP Credits accrued during the temporary suspension. NorthWestern shall apply the C&I Subscriber’s portion of the Reserve Fund toward offsetting the total Exit Fee due from C&I Subscriber. C&I Subscriber will have the option to pay this 453 Green Power Program – Commercial and Industrial Subscription Agreement Page 8 of 11 amount in one payment, or to pay off this amount over the original Depreciable Life of the Green Resource. If the Green Resource is not repaired or replaced yet remains in Commercial Operation after the Force Majeure event, C&I Subscriber has the right to continue participating in the Green Program. 11. Insurance Requirements. NorthWestern represents it has significant insurance coverage for its real and personal property; as such, NorthWestern must insure the Green Resource in the same manner and extent of coverage that NorthWestern insures all of its real and personal property assets. 12. Notice. All notices, requests, consents, claims, demands, waivers and other communications under this Agreement must be in writing and will be deemed to have been given (i) when delivered by hand (with written confirmation of receipt); (ii) when received by the addressee if sent by a nationally-recognized overnight courier (receipt requested); (iii) on the date sent by electronic transmission (including by e-mail) if sent during normal business hours of the recipient, and on the next business day if sent after normal business hours of the recipient, or (iv) on the 3rd day after the date mailed, by certified or registered mail, return receipt requested, postage prepaid. Unless a Party has designated a different officer or address for itself by written notice to the other hereunder, such communications will be sent to the respective Party as follows: If to NorthWestern: NorthWestern Corporation d/b/a NorthWestern Energy [Title] [Bin Number] 11 E. Park Street Butte, Montana 59701 Email: [______________________] If to C&I Subscriber: [C&I Subscriber Name] Attention: [___________________] [Address Line 1] [Address Line 2] [City], [State] [Zip Code] Email: [______________________] 13. No Third-Party Benefit. Nothing in this Agreement will be construed to create any duty, obligation or liability of NorthWestern or C&I Subscriber to any person not a party to this Agreement. 14. Severability. If any portion of this Agreement is held to be void or unenforceable, the balance thereof shall continue to be effective. 15. Survival. All covenants, representations, warranties and agreements of the Parties shall 454 Green Power Program – Commercial and Industrial Subscription Agreement Page 9 of 11 survive the expiration or termination of this Agreement and continue until such time as the obligations of the Parties hereto have been discharged in full. 16. Binding Effect. This Agreement is binding upon and inures to the benefit of the heirs, legal representatives, successors and assigns of the Parties. 17. Headings. The headings used in this Agreement are for convenience only and cannot be construed as a part of the Agreement or as a limitation on the scope of the particular paragraphs to which they refer. 18. Counterparts. This Agreement may be executed in two or more counterparts, each of which will be deemed an original but all of which together will constitute one and the same instrument. 19. Governing Law. The validity, interpretation and performance of this Agreement, and each of its provisions, will be governed by the laws of the State of Montana without giving effect to principles of conflicts of law that would require the application of laws of another jurisdiction. The Parties agree that the state and federal courts, as applicable, of the State of Montana will have exclusive jurisdiction for the resolution of disputes under this Agreement and the Parties consent to such jurisdiction. 20. Waiver. A waiver by either Party of any of its rights with respect to the performance of any of the other Party’s obligations in this Agreement will not be deemed a waiver of the performance of any other obligation in this Agreement, nor will it be construed as a waiver to the same obligation in the future. 21. Amendment. Any modification or amendment to this Agreement (except as specifically set forth in Section 7) must be in writing and signed by both Parties. 22. Authority. Each Party represents that it has full power and authority to enter into and perform this Agreement and the person signing this Agreement on behalf of each Party has been properly authorized and empowered to sign this Agreement. 23. Entire Agreement. This Agreement, including the Green Tariff, constitutes the entire Agreement between the Parties with respect to the subject matter hereof, and supersedes all prior contracts or understandings with respect to that subject matter. IN WITNESS WHEREOF, the Parties have caused this Agreement to be duly executed as of the day and year first above written. NORTHWESTERN ENERGY Signature: _____________________________ Name: ________________________________ Title: _________________________________ [C&I SUBSCRIBER] Signature: _____________________________ Name: ________________________________ Title: _________________________________ 455 Green Power Program – Commercial and Industrial Subscription Agreement Page 10 of 11 Date: _________________________________ Date: _________________________________ 456 Green Power Program – Commercial and Industrial Subscription Agreement Page 11 of 11 APPENDIX A Green Power Program Premises C&I Subscriber currently receives electric bundled service from NorthWestern under the identified C&I Subscriber account(s) at each of the premises selected by C&I Subscriber to participate in the Green Program and listed below. Premises, and related account numbers, are subject to change from time to time. No. C&I Subscriber Name / Billing Name Account Number Location Address Annual Total Energy Consumption (akWh) Subscription Level (akWh) 1 [C&I Subscriber Name] [NorthWestern Account Number] [Address Line 1] [City], Montana [Zip Code] 2 3 4 5 6 7 8 9 10 11 457 NorthWestern Energy Green Power Program Residential Customer Enrollment Form ____________________ ____________________ First Name Last Name ______________________________ ____________________ Email Phone # ______________________________ ____________________ Address Address 2 ____________________ ____________________ City/Town State ____________________ ZIP/Postal Code ____________________ NorthWestern Energy Account Number I would like to subscribe to __[number of blocks]______ number of Green Power Program blocks. Each block represents 100 kilowatt hours (kWhs) of your electricity use. Terms and Conditions By submitting this electronic form, you authorize NorthWestern Energy to enroll you in the Green Power Program. Each month you will be billed for the amount of power that you subscribed for, as indicated on this form. Power will be sold as blocks, which are defined in the “Rates, Terms, and Conditions” section on the next page. Green Power Program blocks are billed at a rate approved by the Montana Public Service Commission. The current monthly cost rate and a 12-month historical average of the credit rate, as well as additional terms and conditions, can be found on NorthWestern Energy’s website [link to website]. Your decision to participate is voluntary, but by enrolling, you agree to commit to the Green Power Program for a 12-month period. Residents may only subscribe to the Green Power Program if they reside within a participating community that has made a portion of its subscription available to residential customers. By enrolling, you allow the participating community within which you reside to verify the eligibility of your address. All funds collected from participants in the Green Power Program are used to develop, maintain, and operate a clean, renewable electric power facility in Montana. 458 NORTHWESTERN ENERGY GREEN POWER PROGRAM RATES, TERMS AND CONDITIONS Who do I call with questions? Call a NorthWestern Energy Customer Service Representative at #__________. What is the Green Power Program? The Green Power Program is a Public Service Commission-approved tariff program designed to provide eligible NorthWestern customers with new renewable energy in Montana to reduce greenhouse gas emissions associated with their electricity service. Your participation will fund construction, operation, and maintenance of a new utility-scale clean energy project. This new renewable resource is in addition to NorthWestern’s existing energy resources. What are the eligibility requirements for participation? Participants must be a residential electric customer residing in a community that has decided to participate in the Green Power Program and make a portion of its subscription available to customers. The participant must also be enrolled in EFT payments and E-bill, and must be up to date on their utility bill. Recipients of Low Income Home Energy Assistance Program (LIHEAP) benefits are not eligible to participate unless there are government funds available to pay the cost to participate in the Green Power Program. What is a block of Green Power and how many can I purchase? One block in the Green Power Program is 100 kilowatt-hours (kWh) per month. There is no limit to the number of Green Power blocks you can purchase so long as the number of total blocks purchased does not exceed the amount allocated by your community. To estimate your energy use (to help determine how much renewable power you would like to sign up for), examples of your past electricity use in kWh can be found on your NorthWestern Energy bill. To give an example, a house that uses 800 kWh per month could purchase 8 blocks to support renewable energy development that aligns with your usage. The number of Green Power Program blocks you subscribe to does not change with your actual energy use. 459 How does subscribing to the Green Power Program impact my bill? Participants will receive a Green Power Program cost and a Green Power Program credit on their bill. The monthly GPP Cost Rate and estimated Green Power Program Credit Rate for each block is set forth in the Green Tariff on our website. What is the length of the obligation? Once enrolled, a participant is obligated for a period of one calendar year. Residential participants enrolled in the program will automatically be reenrolled in the program for the next program year unless they choose to opt out of the program during the enrollment period of September 1 through October 31. How will I be billed? You will continue to get your utility bill as normal. The amount that you owe for participation in the Green Power Program will be adjusted to reflect the costs and credits associated with your Green Power Program subscription. Green Power Program costs and credits will appear as separate line items on your bill. Will my rates change over time? The Green Power rate may be adjusted periodically with the approval of the Montana Public Service Commission. Is there a termination fee if I cancel the contract? If you cancel the contract or move while enrolled in the program, your termination fee will equal your remaining monetary obligation to the Green Power Program for the rest of the contract year. That is to say, you are responsible for the remaining cost of the clean energy kWh blocks that you signed up to purchase. 460 Memorandum REPORT TO:City Commission FROM:Chuck Winn, City Manager SUBJECT:Ordinance Dissolving Department of Strategic Services and Creating Department of Communications & Engagement MEETING DATE:July 21, 2026 AGENDA ITEM TYPE:Ordinance RECOMMENDATION:Consider the Motion: I move to provisionally adopt this Ordinance Dissolving Department of Strategic Services and Creating Department of Communications & Engagement. STRATEGIC PLAN:1.2 Community Engagement: Broaden and deepen engagement of the community in city government, innovating methods for inviting input from the community and stakeholders. BACKGROUND:Earlier this year, the Bozeman City Commission adopted four overarching priorities to guide the City's work: Advance Bozeman as a safe and welcoming place for all. Engage meaningfully with the community. Bridge the affordability gap. Protect Bozeman's heritage, neighborhoods, and natural environment. A strong and intentional communication and community engagement strategy is fundamental to achieving each of these priorities and the work plans that support them. Effective communication and engagement efforts help connect elected officials and staff with the community, improve the quality of public decision-making, and strengthen public trust in local government. These functions are integral to nearly every service the City provides. Currently, Communications & Engagement operates as a division within the City Manager's Office and is responsible for a broad range of citywide initiatives and programs, including working with the local press, social media, the Neighborhood Program and the Inter-Neighborhood Council, the MSU Bozeman Town and Gown program, Belonging in Bozeman initiatives, podcast production, the City newsletter, and graphic design services including managing content on the city's website. Communication & Engagement also oversees the city's engagement efforts and Engage Bozeman Platform. 461 Establishing Communications & Engagement as a standalone department led by a director-level position will further strengthen the City's ability to coordinate and integrate communication and engagement efforts across the organization while continuing to improve service delivery and public outreach. This organizational change will not increase the total number of City departments or department heads. The proposed ordinance eliminates the Strategic Services Department and establishes the Communications & Engagement Department in its place. Functions previously housed within Strategic Services are currently reporting to an Assistant City Manager. UNRESOLVED ISSUES:None ALTERNATIVES:As directed by the Commission. FISCAL EFFECTS:Any additional costs are offset by the elimination of the Strategic Services Director position. Attachments: Ordinance Final cp 7 6 26 cw.docx Report compiled on: July 16, 2026 462 ORDINANCE AN ORDINANCE OF THE CITY COMMISSION OF THE CITY OF BOZEMAN, MONTANA AMENDING SECTION 2.04.010 AND THE TITLE OF DIVISION 13 OF THE BOZEMAN MUNICIPAL CODE TO DISSOLVE THE DEPARTMENT OF STRATEGIC SERVICES AND ESTABLISH THE DEPARTMENT OF COMMUNICATIONS & ENGAGEMENT. WHEREAS, pursuant section 2.11 of the charter the city commission must adopt an ordinance to establish, alter, or abolish any city department; and WHEREAS, the assigned duties of the Department of Strategic Services have been subsumed within the City Manager’s office and as such the City no longer needs to organize and administer a department to provide these services; and WHEREAS, the Commission determines a department is necessary to administer the City’s programs and services related to communication and engagement. NOW THEREFORE, BE IT ORDAINED BY THE CITY COMMISSION OF THE CITY OF BOZEMAN, MONTANA: Section 1 That Section 2.04.010, Bozeman Municipal Code, will be amended as follows: Sec. 2.04.010. – Administrative departments established. A. The following administrative departments of the city are established: 1. Department of finance; 2. Department of fire; 3. Department of human resources; 4. Department of information technology; 5. Department of law; 6. Department of parks and recreation; 7. Department of community development; 463 8. Department of police; 9. Department of transportation and engineering; 10. Department of utilities; 11. Department of economic development; and 12. Department of strategic services Department of communications & engagement. Section 2 That the title of Chapter 2, Article 4, Division 13, Bozeman Municipal Code, be renamed Department of Communications and Engagement and remain reserved. 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. 464 Section 6 Codification. The provisions of Sections 1 and 2 of this Ordinance shall be codified in the Bozeman Municipal Code as shown. Section 7 Effective Date. This Ordinance shall be in full force and effect thirty (30) days after final adoption. PROVISIONALLY ADOPTED by the City Commission of the City of Bozeman, Montana, on first reading at a regular session held on the _____ day of ________________, 20__. ____________________________________ JOEY MORRISON Mayor ATTEST: ____________________________________ MIKE MAAS City Clerk 465 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 ____________________, 20__. The effective date of this ordinance is __________, __, 20__. _________________________________ JOEY MORRISON Mayor ATTEST: _______________________________ MIKE MAAS City Clerk APPROVED AS TO FORM: _________________________________ GREG SULLIVAN City Attorney 466 Construction Agreement for MDT sewer lift station 2026 Page 1 of 16 CONSTRUCTION AGREEMENT This Construction Agreement is made and entered into this 13th day of July, 2026 (“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, Peak Water Services, 81 Gold Miner Ln, Belgrade MT 59714, hereinafter referred to as “Contractor.” City and Contractor may be referred to individually as “Party” and collectively as “Parties.” In consideration of the covenants, agreements, representations, and warranties contained herein, the Parties agree as follows: 1.Work to be Performed: a.Contractor will make entry into the sewer wet well for the Montana Department of Transportation sewer lift station, located at 100 Nelson Road, to investigate and repair leaks, (the “Construction Project”). b.Prior to the commencement of any work on Construction Project, Contractor’s representatives and City’s representatives must hold a meeting to establish a working understanding among the Parties as to the scope of Construction Project and duties of Contractor. c.Except as provided elsewhere in this Agreement, Contractor must furnish all the labor, materials, equipment, tools, and services necessary to perform and complete Construction Project. The City will vacuum the fluid from the wet well prior to each entry. d.During work on Construction Project, and as part of the final completion of Construction Project, Contractor must clean up the Project site, including the removal and satisfactory disposal of all waste, garbage, excess materials, and equipment, and the Docusign Envelope ID: 2BB7D9A7-2588-8DC9-8316-58C90AE79DF9 213467 Construction Agreement for MDT sewer lift station 2026 Page 2 of 16 performance of any other work necessary to restore the site to at least as good order and condition as at the commencement of Construction Project. 2.City-Supplied Materials: City may supply materials from time to time in furtherance of Construction Project. Such materials will be noted as an addendum to this Agreement. 3.Time of Performance: Contractor must begin Construction upon execution of this agreement by the Owner. The contract shall remain in effect for a period of one year from above date of Agreement or until the work has been completed. Time is of the essence of completion of all work and each phase of Construction Project. 4.Compensation: a.City must pay to Contractor, and Contractor must accept as full payment for the performance of this Agreement and Construction Project an amount in accordance with the scheduled rates attached as Exhibit A of this agreement not to exceed $10,000. Any additional payment requested shall be agreed to by the Parties via a written change order. 5.Inspection and Testing: a.City has the right to inspect and test any work performed by Contractor on Construction Project. Contractor must allow City and its agents access to Construction Project at all times and must provide access for inspection and testing, including temporarily discontinuing portions of the work or uncovering or removing portions of the work. Any inspection and testing performed by City and its agents is for the sole benefit of City and must not relieve Contractor of its duties, responsibilities, and obligations to ensure the work strictly complies with the Scope of Services and all applicable laws and building and safety codes. City’s inspection and testing is not deemed or considered acceptance by City of any portion of Construction Project. City’s inspection and testing does not serve to nullify, amend, or waive any warranties provided by Contractor under this Agreement. b.Contractor must, without charge, replace any material or correct any work found by City or its agents to be defective or otherwise not in compliance with the terms and conditions of this Agreement. If Contractor fails to replace or correct any defective work or materials after receiving reasonable written notice by City, City may take corrective action. Corrective action may include using City’s own materials and employees or retaining a third Party. City will deduct the cost and expense of the corrective action from Contractor’s compensation. Docusign Envelope ID: 2BB7D9A7-2588-8DC9-8316-58C90AE79DF9 214468 Construction Agreement for MDT sewer lift station 2026 Page 3 of 16 6.Partial Utilization of Construction Project: City has the right to use or occupy any portion of Construction Project City and Contractor mutually agree is substantially completed. If City takes possession of any portion of Construction Project, this possession is not an acceptance of Construction Project, in whole or in part. Any use by City of Construction Project is not grounds for extensions of any construction deadlines or a change in Contractor’s compensation. Contractor’s warranties runs from the completion of the total Construction Project and not from the date City may take possession of selected portions of Construction Project. 7.Related Work at the Site: Nothing in this Agreement prevents or precludes City, through its employees or by contract with a third Party, from performing work related to the Project not otherwise addressed in the Scope of Services. Such work may not interfere with Contractor’s performance of this Agreement. Contractor must allow access for any City employee, agent or representative, or any third Party under contract with City to perform the work. 8.Contractor’s Representations and Warranties: Contractor represents and warrants as follows: a.Unless otherwise specified by the terms of this Agreement, all materials used by Contractor on Construction Project must be new and of the most suitable grade for their intended uses. b.The quality of services and materials must be of a kind and nature acceptable to City. All services provided to, on, or for Construction Project must be free of defects and nonconformities. c.Contractor’s representation and warranty begins with the commencement of the work on Construction Project and ends one (1) year from the final completion and acceptance by City of Construction Project, regardless of whether such equipment, materials, or labor were supplied by Contractor or by Contractor’s subcontractors or suppliers. Other express warranties for materials that provide for a longer warranty period are not reduced by this provision. When Contractor receives City’s written notice of a defective or nonconforming condition during an applicable warranty period, Contractor must take all actions, including redesign and replacement, to correct the defective or nonconforming condition within a time frame acceptable to City and at no additional cost to City. Contractor must also, at its sole cost, perform any tests required by City to verify that Contractor corrected the defective or nonconforming condition. Contractor Docusign Envelope ID: 2BB7D9A7-2588-8DC9-8316-58C90AE79DF9 215469 Construction Agreement for MDT sewer lift station 2026 Page 4 of 16 warrants the corrective action taken against defective and nonconforming conditions for a period of an additional one (1) year from the date of City’s acceptance of the corrective action. d.Contractor and its sureties are liable for the satisfaction and full performance of all warranties. e.Contractor is responsible for the completion of Construction Project. Contractor, or its duly authorized representative assigned to serve as Construction Project Manager, must be personally present at the site of Construction Project during working hours for the term of this Agreement until the completion of Construction Project. f.Contractor has examined all available records and made field examinations of the site of Construction Project. Contractor has knowledge of the field conditions to be encountered during Construction Project. Contractor has knowledge of the types and character of equipment necessary for the work, the types of materials needed and the sources of such materials, and the condition of the local labor market. g.Contractor is responsible for the safety of the work and the safety of the site at all times. i.Fall protection must be utilized when the wet well hatches are open. ii.Proper OSHA procedures for confined space entry and fall protection must be followed. iii.Contractor acknowledges that wet well entry to perform this service is required and this may be considered an abnormally dangerous activity. iv.Contractor assumes all responsibility for ensuring and enforcing safe working conditions and compliance with all safety-related rules and regulations for the benefit of its own employees, the employees of subcontractors and the public when conducting the work, including all duties related to safety and will indemnify the City for any losses or damages the City may incur as a result of work conditions. h.All work must be performed at Contractor’s risk, and Contractor must promptly repair or replace all damage and loss at its sole cost and expense regardless of the reason or cause of the damage or loss. i.Contractor is responsible for any loss or damage to materials, tools, or other articles used or held for use in the completion of performance of Construction Project. Docusign Envelope ID: 2BB7D9A7-2588-8DC9-8316-58C90AE79DF9 216470 Construction Agreement for MDT sewer lift station 2026 Page 5 of 16 j.Contractor’s performance must be without damage or disruption to any other work or property of City or of others and without interference with the operation of existing machinery or equipment, unless otherwise agreed to in writing. k.Title to all work, materials, and equipment covered by any payment of Contractor’s compensation by City, will pass to City at the time of payment, free and clear of all liens and encumbrances. 9.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, City may, by written notice, terminate this Agreement and Contractor’s right to proceed with all or any part of Construction Project (“Termination Notice Due to Contractor’s Fault”). City may then take over Construction Project and complete it, either with its own resources or by re-letting the contract to any other third party, and may immediately take possession of and use such materials, appliances, tools, and equipment as may be on the site and which may be necessary for the completion of Construction Project. b.In the event of a termination pursuant to this Section 10, Contractor is entitled to payment only for those services Contractor actually rendered. In the case of a lump sum or unit price contract, Contractor is not entitled to any further payment until Construction Project has been completed. Upon completion of Construction Project, if the unpaid balance of Contractor’s compensation exceeds the cost to City of completing the work, including all costs paid to any subcontractors or third Parties retained by City to complete Construction Project and all administrative costs resulting from the termination (“City’s Cost for Completion”), such excess must be paid to Contractor. If City’s Cost for Completion exceeds the unpaid balance of Contractor’s compensation, then Contractor and its sureties must be liable for and must pay the difference, plus interest at the rate applicable to court judgments, to City. c.Any termination provided for by this Section 10 is in addition to any other remedies to which City may be entitled under the law or at equity. d.In the event of termination under this Section 10, Contractor is not, under any circumstances, 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. Docusign Envelope ID: 2BB7D9A7-2588-8DC9-8316-58C90AE79DF9 217471 Construction Agreement for MDT sewer lift station 2026 Page 6 of 16 10.Termination for City’s Convenience: a.Should conditions arise which, in the sole opinion and discretion of City, make it advisable to City to cease work on Construction Project, City may terminate this Agreement by written notice to Contractor (“Notice of Termination for City’s Convenience”). The termination must be effective in the manner specified in the Notice of Termination for City’s Convenience and must be without prejudice to any claims that City may otherwise have against Contractor. b.Upon receipt of the Notice of Termination for City’s Convenience, unless otherwise directed in the Notice, Contractor must immediately cease work on Construction Project, discontinue placing orders for materials, supplies, and equipment for Construction Project, and make every reasonable effort to cancel all existing orders or contracts upon terms satisfactory to City. Contractor must do only such work as may be necessary to preserve, protect, and maintain work already completed, in progress, or in transit to the construction site. c.In the event of a termination pursuant to this Section 11, Contractor is entitled to payment only for those services Contractor actually rendered and materials actually purchased or which Contractor has made obligations to purchase on or before the receipt of the Notice of Termination for City’s Convenience, and reasonably incurred costs for demobilization of Contractor’s and any subcontractor’s crews. It is agreed that any materials that City is obligated to purchase from Contractor will remain City’s sole property. d.The compensation described in Section 11(c) is the sole compensation due to Contractor for its performance of this Agreement. Contractor is not, under any circumstances, entitled to claim or recover consequential, special, punitive, lost business opportunity, lost productivity, field office overhead, general conditions costs, or lost profits damages of any nature arising, or claimed to have arisen, as a result of the termination. 11.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 must be limited to contract damages and Contractor 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 must provide City with written notice of its claim, the facts and circumstances Docusign Envelope ID: 2BB7D9A7-2588-8DC9-8316-58C90AE79DF9 218472 Construction Agreement for MDT sewer lift station 2026 Page 7 of 16 surrounding and giving rise to the claim, and the total amount of damages sought by the claim, within ten (10) days of the facts and circumstances giving rise to the claim. In the event Contractor fails to provide such notice, Contractor must waive all rights to assert such claim. c.Upon acceptance of final payment and for other good and valuable consideration, Contractor must and hereby does release and forever discharge City, its officers, agents, and employees of and from any and all claims, demands, actions, causes of action, obligations, and liabilities of every kind and character whatsoever, in law and in equity, whether now known or in the future discovered, arising from or related to this Agreement or Construction Project that Contractor may have or assert against City, its officers, agents, and employees. 12.Representatives and Notices: a.City’s Representative: City’s Representative for the purpose of this Agreement is Nick Pericich, Water & Sewer Superintendent, or such other individual as City must designate in writing. Whenever approval or authorization from or communication or submission to City is required by this Agreement, such communication or submission must be directed to City’s Representative and approvals or authorizations must be issued only by such Representative; provided, however, that in exigent circumstances when City’s Representative is not available, Contractor may direct its communication or submission to other designated City personnel or agents and may receive approvals or authorization from such persons. b.Contractor’s Representative: Contractor’s Representative for the purpose of this Agreement must be Jennifer Bos or such other individual as Contractor must designate in writing. Whenever direction to or communication with Contractor is required by this Agreement, such direction or communication must 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 must be in writing and must be provided to the Representatives named in this Section. Notices must 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. Docusign Envelope ID: 2BB7D9A7-2588-8DC9-8316-58C90AE79DF9 219473 Construction Agreement for MDT sewer lift station 2026 Page 8 of 16 13. Permits: Contractor must provide all notices, comply with all applicable laws, ordinances, rules, and regulations, obtain all necessary permits, licenses, including a City of Bozeman business license, and inspections from applicable governmental authorities, pay all fees and charges in connection therewith, and perform all surveys and locations necessary for the timely completion of Construction Project. 14. Laws and Regulations: Contractor must comply fully with all applicable state and federal laws, regulations, and municipal ordinances including, but not limited to, all workers’ compensation laws, all environmental laws including, but not limited to, the generation and disposal of hazardous waste, the Occupational Safety and Health Act (OSHA), the safety rules, codes, and provisions of the Montana Safety Act in Title 50, Chapter 71, MCA, all applicable City, County, and State building and electrical codes, the Americans with Disabilities Act, and all non- discrimination, affirmative action, and utilization of minority and small business statutes and regulations. 15. Nondiscrimination and Equal Pay: Contractor agrees that all hiring by Contractor of persons performing this Agreement must be on the basis of merit and qualifications. Contractor will have a policy to provide equal employment opportunity in accordance with all applicable state and federal anti-discrimination laws, regulations, and contracts. Contractor will not refuse employment to a person, bar a person from employment, or discriminate against a person in compensation or in a term, condition, or privilege of employment because of race, color, religion, creed, political ideas, sex, age, marital status, national origin, actual or perceived sexual orientation, gender identity, physical or mental disability, except when the reasonable demands of the position require an age, physical or mental disability, marital status or sex distinction. Contractor must 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 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 must require these nondiscrimination terms of its subcontractors providing services under this Agreement. 16. Intoxicants; DOT Drug and Alcohol Regulations: Contractor must not permit or suffer the introduction or use of any intoxicants, including alcohol or illegal drugs, upon the site of Construction Project. Contractor acknowledges it is aware of and must comply with its Docusign Envelope ID: 2BB7D9A7-2588-8DC9-8316-58C90AE79DF9 220474 Construction Agreement for MDT sewer lift station 2026 Page 9 of 16 responsibilities and obligations under the U.S. Department of Transportation (DOT) regulations governing anti-drug and alcohol misuse prevention plans and related testing. City must have the right to request proof of such compliance and Contractor must be obligated to furnish such proof. Contractor must be responsible for instructing and training Contractor's employees and agents in proper and specified work methods and procedures. Contractor must provide continuous inspection and supervision of the work performed. Contractor is responsible for instructing its employees and agents in safe work practices. 17. Labor Relations: a. In the event that, during the term of this Agreement and throughout the course of Contractor’s performance of Construction Project, any labor problems or disputes of any type arise or materialize which in turn cause any work on Construction Project to cease for any period of time, Contractor specifically agrees to take immediate steps, at its own expense and without expectation of reimbursement from City, to alleviate or resolve all such labor problems or disputes. The specific steps Contractor must take to resume work on Construction Project must be left to the discretion of Contractor; provided, however, that Contractor must bear all costs of any related legal action. Contractor must provide immediate relief to City so as to permit the work on Construction Project to resume and be completed within the time frames set forth in the Construction Schedule at no additional cost to City. b. In addition to Contractor’s indemnification obligations under paragraph 20(a) of this Agreement, Contractor must indemnify, defend, and hold City harmless from any and all claims, demands, costs, expenses, damages, and liabilities arising out of, resulting from, or occurring in connection with any labor problems or disputes or any delays or stoppages of work associated with such problems or disputes. The provisions of paragraph 28(b) – (g) apply to this subsection. 18. Subcontractors: a. Contractor may employ subcontractors for any work on Construction Project. Contractor must provide City with a list of all subcontractors employed. b. Contractor remains fully responsible for the acts and omissions of any subcontractor, just as Contractor is for its own acts and omissions, and Contractor must remain fully responsible and liable for the timely completion of Construction Project. Docusign Envelope ID: 2BB7D9A7-2588-8DC9-8316-58C90AE79DF9 221475 Construction Agreement for MDT sewer lift station 2026 Page 10 of 16 c.Contractor is solely liable for any and all payments to subcontractors. Contractor must hold all payments received from City in trust for the benefit of subcontractors, and all such payments must be used to satisfy obligations of Construction Project before being used for any other purpose. Contractor must make any payments due to any subcontractor within seven (7) days of Contractor’s receipt of payment, including a proportional part of the retainage Contractor has received from City. In the event of a dispute regarding any subcontractor’s invoice, Contractor must promptly pay the undisputed amount to the subcontractor and notify the subcontractor in writing of the amount in dispute and the reasons for the dispute. Any withholding of payment must comply with the requirements of §28-2-2103, MCA. In the event Contractor is unwilling or unable to make timely and proper payment to any subcontractor, City may elect to withhold any payment otherwise due to Contractor and upon seven (7) days’ written notice to Contractor, may pay subcontractor by direct or joint payment. 19.Hazard Communication: Contractor must comply with all hazard communication requirements dictated by the Environmental Protection Agency, the Montana Department of Agriculture, OSHA, Hazard Communications Standard, 29 CFR 1910.1200, and applicable City ordinances. Contractor must supply a chemical list, the associated material safety data sheets (MSDS), and other pertinent health exposure data for chemicals that Contractor’s, subcontractor’s or City’s employees may be exposed to while working on City property during the course of Construction Project. One copy of this documentation must be delivered to City to the attention of City’s Representative. This documentation must be delivered before work involving these chemicals may commence. 20.Accounts and Records: During the term of this Agreement and for two (2) years following City’s final acceptance of Construction Project, Contractor must maintain accounts and records related to Construction Project. Upon reasonable notice, City must have the right to inspect all such accounts and records, including but not limited to, Contractor’s records, books, correspondence, instructions, drawings, specifications, field and site notes, receipts, invoices, bills, contracts, or other documents relating to Construction Project. 21.Indemnification; Insurance; Bonds: a.Contractor agrees to release, defend, indemnify, and hold harmless the City, its agents, representatives, employees, and officers (collectively referred to for purposes of this Section as the City) from and against any and all claims, demands, actions, fees and costs (including attorney’s fees and the costs and fees of and expert witness and consultants), losses, expenses, liabilities (including liability where activity is inherently or intrinsically dangerous) or damages of whatever kind or nature connected therewith and without limit and without regard Docusign Envelope ID: 2BB7D9A7-2588-8DC9-8316-58C90AE79DF9 222476 Construction Agreement for MDT sewer lift station 2026 Page 11 of 16 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 Contractor; or (ii) any negligent, reckless, or intentional misconduct of any of Contractor’s agents. b. Such obligations must not be construed to negate, abridge, or reduce other rights or obligations of indemnity that would otherwise exist. The indemnification obligations of this Section must not be construed to negate, abridge, or reduce any common-law or statutory rights of the indemnitee(s) which would otherwise exist as to such indemnitee(s). c. Contractor’s indemnity under this Section must be without regard to and without any right to contribution from any insurance maintained by the City. d. Should the City be required to bring an action against Contractor to assert its right to defense or indemnification under this Agreement or under Contractor’s applicable insurance policies required below the City must 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 Contractor was obligated to defend the claim(s) or was obligated to indemnify the City for a claim(s) or any portion(s) thereof. e. In the event of an action filed against the City resulting from the City’s performance under this Agreement, the City may elect to represent itself and incur all costs and expenses of suit. f. Contractor also waives any and all claims and recourse against the City, including the right of contribution for loss or damage to person or property arising from, growing out of, or in any way connected with or incident to the performance of this Agreement except “responsibility for [the City’s] own fraud, for willful injury to the person or property of another, or for violation of law, whether willful or negligent” as per 28-2-702, MCA. g. These obligations must survive termination of this Agreement and the services performed hereunder. h. In addition to and independent from the above, Contractor must 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 Contractor in this Section. The insurance coverage must not contain any exclusion for liabilities specifically assumed by Contractor in subsection (a) of this Docusign Envelope ID: 2BB7D9A7-2588-8DC9-8316-58C90AE79DF9 223477 Construction Agreement for MDT sewer lift station 2026 Page 12 of 16 Section. The insurance must 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 must furnish to the City an accompanying certificate of insurance and accompanying endorsements in amounts not less than as shown below: • Workers’ Compensation – not less than statutory limits; • Employers’ Liability - $1,000,000 per occurrence; $2,000,000 annual aggregate; • Commercial General Liability - $1,000,000 per occurrence; $2,000,000 annual aggregate; • Products and Completed Operations – $1,000,000; • Automobile Liability - $1,000,000 property damage/bodily injury; $2,000,000 annual aggregate (all owned, hired, non-owned vehicles); • Builder’s Risk/Property Insurance at least as broad as that provided by the ISO special causes of loss form (CP10 30) naming at a minimum the City in an amount equal to greater of Contractor’s compensation or full replacement value of the work (covering at a minimum all work, buildings, materials and equipment, whether on site or in transit, loss due to fire, lightening, theft, vandalism, malicious mischief, earthquake, collapse, debris removal, demolition occasioned by enforcement of laws, water damage, flood if site within a flood plain, repair or replacement costs, testing and start-up costs) on an all risk coverage basis. This insurance must include waivers of subrogation between the City and Contractor to the extent that damage to Construction Project or City Hall is covered by other insurance; • Owner’s and Contractor’s Protective Liability: one policy designating the City (including its agents, representatives, employees, and officers) as the insured and another independent policy designated the City’s Representative (including its consultants, consultants, agents and employees) as the insured on the declarations with both policies covering: (i) operations performed by Contractor under this Agreement for the City; and (ii) the City’s and the City’s Representatives acts or omissions, including negligent acts, in connection with its general supervision of the work of Contractor’s and its subcontractors - $1,000,000 per occurrence; $2,000,000 aggregate; • Contractual Liability Insurance (covering Contractor’s indemnity obligations described in this Agreement) - $1,000,000 per occurrence $2,000,000 aggregate Docusign Envelope ID: 2BB7D9A7-2588-8DC9-8316-58C90AE79DF9 224478 Construction Agreement for MDT sewer lift station 2026 Page 13 of 16 The amounts of insurance provided must be exclusive of defense costs. The City of Bozeman must be endorsed as an additional or named insured on a primary non-contributory basis on both the Commercial General and Automobile Liability policies. The insurance and required endorsements must be in a form suitable to the City and must include no less than a thirty (30) day notice of cancellation or non-renewal. Contractor must notify the City within two (2) business days of Contractor’s receipt of notice that any required insurance coverage will be terminated or Contractor’s decision to terminate any required insurance coverage for any reason. The City must approve all insurance coverage and endorsements prior to Contractor commencing work. i. Pursuant to the City’s authority provided for in 18-2-201(4) MCA, Contractor may not be required to provide bonds as required by 18-2-201(1) MCA under this Agreement. 22. Taxes: Contractor is obligated to pay all taxes of any kind or nature and make all appropriate employee withholdings. Contractor understands that all contractors or subcontractors working on a publicly funded project must comply with 15-50-101 through 15-50- 311, MCA. 23. Dispute Resolution: a. Any claim, controversy, or dispute between the Parties, their agents, employees, or representatives must 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 must be resolved in a court of competent jurisdiction in compliance with the Applicable Law provisions of this Agreement. 24. Survival: Contractor’s indemnification and warranty obligations must survive the termination or expiration of this Agreement for the maximum period allowed under applicable law. 25. 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. Docusign Envelope ID: 2BB7D9A7-2588-8DC9-8316-58C90AE79DF9 225479 Construction Agreement for MDT sewer lift station 2026 Page 14 of 16 26. Waiver: A waiver by City of any default or breach by Contractor of any covenants, terms, or conditions of this Agreement does not limit City’s right to enforce such covenants, terms, or conditions or to pursue City’s rights in the event of any subsequent default or breach. 27. 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 must be entitled to reasonable attorney's fees and costs, including fees, salary, and costs of in-house counsel including City Attorney’s Office staff. 28. Severability: If any portion of this Agreement is held to be void or unenforceable, the balance thereof must continue in effect. 29. Applicable Law: The Parties agree that this Agreement is governed in all respects by the laws of the State of Montana. 30. Binding Effect: This Agreement is binding upon and inures to the benefit of the heirs, legal representatives, successors, and assigns of the Parties. 31. Amendments: This Agreement may not be modified, amended, or changed in any respect except by a written document signed by all Parties. 32. 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. 33. Counterparts: This Agreement may be executed in counterparts, which together constitute one instrument. 34. Assignment: Contractor may not assign this Agreement in whole or in part without the prior written consent of City. No assignment will relieve Contractor of its responsibility for the performance of the Agreement and the completion of Construction Project. Contractor may not assign to any third Party other than Contractor’s subcontractors on Construction Project, the right to receive monies due from City without the prior written consent of City. Docusign Envelope ID: 2BB7D9A7-2588-8DC9-8316-58C90AE79DF9 226480 Construction Agreement for MDT sewer lift station 2026 Page 15 of 16 35. Authority: Each Party represents that it has full power and authority to enter into and perform this Agreement and the person signing this Agreement on behalf of each Party has been properly authorized and empowered to sign this Agreement. 36. Independent Contractor: The Parties agree and acknowledge that in the performance of this Agreement and the completion of Construction Project, Contractor must render services as an independent contractor and not as the agent, representative, subcontractor, or employee of City. The Parties further agree that all individuals and companies retained by Contractor at all times will be considered the agents, employees, or independent contractors of Contractor and at no time will they be the employees, agents, or representatives of City. 37. Integration: This Agreement and all Exhibits attached hereto constitute the entire agreement of the Parties. Covenants or representations not contained therein or made a part thereof by reference, are not binding upon the Parties. There are no understandings between the Parties other than as set forth in this Agreement. All communications, either verbal or written, made prior to the date of this Agreement are hereby abrogated and withdrawn unless specifically made a part of this Agreement by reference. 38. Consent to Electronic Signatures: The Parties have consented to execute this Agreement electronically in conformance with the Montana Uniform Electronic Transactions Act, Title 30, Chapter 18, Part 1, MCA. **** END OF AGREEMENT EXCEPT FOR SIGNATURES **** IN WITNESS WHEREOF, Contractor and City have caused this Agreement to be executed, effective on the date written above, and intend to be legally bound thereby. CITY OF BOZEMAN, MONTANA CONTRACTOR By: _______________________________ By:________________________________ Chuck Winn, City Manager Jennifer Bos, Vice President of Operations Docusign Envelope ID: 2BB7D9A7-2588-8DC9-8316-58C90AE79DF9 227481 Construction Agreement for MDT sewer lift station 2026 Page 16 of 16 APPROVED AS TO FORM: By: _______________________________ Greg Sullivan, City Attorney Docusign Envelope ID: 2BB7D9A7-2588-8DC9-8316-58C90AE79DF9 228482 Corporate Office 81 Gold Miner Ln, Unit A Belgrade, MT 59714 www.peakwaterservices.com 406.813.7035 Exhibit A 2026 Rate Chart For MT, ID, ND, UT, CO & WY Regions Rate Unit Additional Call Out Rate (One-time fee) Minimum Charge1 LABOR Standard Straight Time (between 8am & 5pm local time) $140.00 per man hour -$500.00 Contract Straight Time $120.00 per man hour -- Specialized Labor2 $165.00 per man hour -$500.00 ADDITIONS TO STRAIGHT TIME Confined Space3 / Hazardous Space4 -$500 per entrant, per day -$500.00 After Hours5 --$250.00 - Weekends --$250.00 - Holidays6 --$250.00 - Per Diem (lodging not included) + $75.00 per tech, per day -- Various Consumables7 ---$50.00 SPECIALTY EQUIPMENT Crane Truck $250.00 per day -$250.00 Hotsy $250.00 per day -$250.00 Fixturlaser Evo (Shaft Alignment) $125.00 per day -$125.00 Acoem Falcon (Vibration Analysis) $200.00 per day -$200.00 All Test Pro (Motor Circuit Analysis) $125.00 per day -$125.00 Travel Time will be included with standard rate or contract rate for time traveled from shop to shop, per tech. We generally send two (2) service technicians to respond to service calls. Minimum Charge1 does not apply to contract customers. Specialized Labor2 includes work that demands specialized skills or expertise in particular fields involving tasks requiring advanced knowledge and the use of specialty equipment such as vibration analysis to accomplish ‘complex’ objectives. Docusign Envelope ID: 2BB7D9A7-2588-8DC9-8316-58C90AE79DF9 229483