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HomeMy WebLinkAboutResolution 4433, implementing portions of Ordinance 1853, deferral of Transportation Impact Fees1 Commission Memorandum REPORT TO: Honorable Mayor and City Commission FROM: Chris Saunders Steve Worthington SUBJECT: Commission Resolution 4433 implementing the impact fee payment deferral provisions of Ordinance 1853 as directed by the City Commission. MEETING DATE: April 1, 2013. AGENDA ITEM TYPE: Action. RECOMMENDATION: Adopt Resolution 4433 with specific options for edits as selected by the City Commission. SUGGESTED MOTION: Having received and considered the draft resolution and having heard and considered public comment I move to approve resolution 4433 {note any specific additions or deletions to the draft text as needed}. BACKGROUND: The Bozeman Municipal Code contains Chapter 2, Article 6, Division 9, Impact Fees which is the local enabling legislation for the City’s impact fee program. This division of the Municipal Code sets the general parameters for the impact fee program. Implementation of the program is then executed by adopted Commission resolutions, an administrative procedures manual, general practices and standards of the City, and daily administrative actions by the staff. From time to time, changes to the code are identified which are expected to make it more functional and effective. Most recently this occurred with Ordinance 1853 which took effect on March 30, 2013. Among other changes made, Ordinance 1853 authorized and set general parameters for the opportunity to defer payment of impact fees. One of the required parameters was to have an implementing resolution to establish the details and procedures of the deferral program. The Commission gave direction to staff to prepare a deferral program only for the transportation impact fees. Resolution 4433 is proposed in response to this direction. Resolution 4433 addresses the following: A) Defining which fee is eligible, i.e. transportation. B) Sets criteria for excluding certain higher hazard for non-payment projects from program participation. C) A description and generalized timeline for participation. 120 2 D) Requires an agreement and creation of a lien against the property as a required term of participation in the deferral program. This is a mechanism to ensure eventual payment. E) Sets terms of the payment including penalties for failure to pay when due. F) Sets a fee for participation and to assign costs for recording of documents. G) States whether interest will be required on the deferred funds or not. Staff suggests the third option as presented in the resolution where interest is only charged in a condition of default on the deferral agreement. H) Describes a variety of administrative provisions to implement the program. Commission action is only required on the text of Resolution 4433. The other attached documents are for reference only. UNRESOLVED ISSUES: The primary focus of the consideration of Resolution 4433 is to implement the transportation impact fee deferral option. Unresolved issues are: 1) Under item 3 of Section 1 – shall these five items be criteria by which a project is barred from participating in the impact fee deferral program. 2) Under item 9 of Section 1 – should there be a fixed additional cost if payment is not made in a timely way. 3) Under item 10 of Section 1 – is the application fee amount appropriate and shall the applicant pay for required recording fees. 4) Under item 11 of Section 1 – Payment of interest. Collecting interest reduces the effect of the deferred payment on the city but adds additional complexity to the administration of the program for collection and obtains modest financial return. Payment of interest could be addressed in one of three ways as described in the resolution. The Commission will need to select the preferred option and delete the other two in the motion to adopt. ALTERNATIVES: 1) Decide not to adopt Resolution 4433; 2) Delay adoption to a future time; or 3) Adopt Resolution 4433 with changes and selected elements as directed by the City Commission. FISCAL EFFECTS: The fiscal effects of this resolution are difficult to quantify with certainty. Assuming a smooth process it is estimated that there will be a commitment of an additional 1.5-2 hours of staff time to process a deferral from initial request to completion compared to a project which did not seek a deferral. An offsetting fee has been included with the draft resolution. The City will not obtain the interest typically earned on the funds for the period of the deferral but this amount will vary by project and cannot be quantified at this time. Attachments: Resolution 4433 Sample agreement Sample forms 121 Resolution 4433 Page 1 of 6 COMMISSION RESOLUTION NO. 4433 A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF BOZEMAN, MONTANA, IMPLEMENTING PORTIONS OF ORDINANCE 1853 BY ALLOWING FOR DEFERRAL OF PAYMENT OF TRANSPORTATION IMPACT FEES UNDER DEFINED CONDITIONS AND TERMS WHEREAS, On February 25, 2013 the Bozeman City Commission adopted Ordinance 1853 amending Chapter 2, Article 6, Division 9 BMC to allow for a deferral of payments of fees; and WHEREAS, Ordinance 1853 established certain requirements including a required resolution, data to be provided and procedures in order for any deferral of payments of fees to be implemented; and WHEREAS, the City Commission directed that an implementing resolution be prepared to allow the deferral of transportation impact fees. NOW, THEREFORE, BE IT RESOLVED by the City Commission of the City of Bozeman, Montana, that the following impact fee deferral program is hereby adopted: CITY OF BOZEMAN IMPACT FEE DEFERRAL PROGRAM 1. INTRODUCTION Impact fees are typically paid at the time a building permit or connection to water and sewer systems permit is issued. The development impact fee deferral program instead allows for impact fees to be paid after issuance of a building permit but prior to the time a certificate of occupancy is issued for projects which require such a certificate. 123 Resolution 4433 Page 2 of 6 2. The transportation impact fees are the only fees that can be deferred until a Final Certificate of Occupancy is issued by the City of Bozeman. DEVELOPMENT IMPACT FEES 3. New Residential and Non-Residential Constructions projects may be eligible to participate in the deferral program. Under this program, all deferred fees are due prior to the issuance of a Certificate of Occupancy. Only properties located within the City of Bozeman are eligible for this program. Obligor means the person or entity responsible for the payment of impact fees. A deferral will not be allowed when the Obligor has had any of the following as they are considered to be at a higher risk of non-payment of the deferred fees: WHICH PROJECTS QUALIFY FOR DEFERRAL 1. The Obligor has had a foreclosure on any properties in the past four years. 2. The Obligor has had any bankruptcy filing in the past four years. 3. The Obligor has outstanding and unsatisfied Civil Judgment(s). 4. The Obligor has unpaid taxes and fees or other unpaid amounts due to the City of Bozeman for the project which is the subject of the deferral request; or other properties within the City of Bozeman. 5. If no Certificate of Occupancy is required for the project. No deferral may be granted until all required zoning or subdivision review steps have been completed. No deferral may be granted until any required documents have been completed and if necessary recorded with the Gallatin County Clerk and recorder and evidence of recording provided to the City. 4. Process FEE DEFERRAL PROCESS Anticipated Time Frame Application for deferral submitted to the Community Development Department in conjunction with the initial Building Permit application Application is reviewed by staff. The department will notify the applicant of approval or denial. 5-10 working days Agreement and Notice of intent to lien is prepared by the City (please contact staff at least 5-7 working days prior to the anticipated date that the building permit will be issued for the project) 5-7 working days Applicant signs Agreement and records the Agreement at the Gallatin County Clerk and Recorder and provides evidence of the recording at least two working days before issuance of the building permit. 2-3 working days Building Permit issued, less deferred fees Project is built/completed varies Applicant notifies Building Division of request for final inspection and Certificate of Occupancy ((please contact Community Development staff at 10 working days 124 Resolution 4433 Page 3 of 6 least 10 working days prior to anticipated date that the Certificate of Occupancy is desired) Payment of deferred fees – Prior to issuance of Certificate of Occupancy and preparation of Release (please contact Community Development staff 2-3 working days prior to anticipated date that the Certificate of Occupancy will be issued for the project) 2-3 working days Any agreement to defer fees shall be between the City and the record owner of the property and shall run with the land. 5. The fee amount approved for a fee deferral is based on the actual fees which are determined as part of the Building Permit review process as described in Chapter 2, Article 6, Division 9, BMC. DEVELOPMENT FEE CALCULATION 6. AFFECTED PROPERTY The affected property shall be clearly described by either a metes and bounds description or by reference to a recorded certificate of survey or plat. The affected property consisting of one or more parcels for which development impact fees have been deferred and which collectively is encumbered by the outstanding fee balance shall be subject to the Notice of Intent to Lien until all deferred fees are paid to the City. 7. LIEN CREATED The property owner shall execute an Agreement and Notice of Intent to Lien. In the event of default the City shall execute a lien against the property. Said lien is intended to guarantee the payment in full, plus accrued interest, processing fees, and the cost of collection, if applicable, of the deferred development impact fees. 8. PAYMENT DEMAND The property owner shall agree to provide payment of the deferred development impact fees prior to issuance of a certificate of occupancy, whether temporary or permanent; and prior to any physical occupancy of the building. The property owner further agrees that failure to provide such payment within said time frame shall constitute a material breach of this resolution. 9. TERM OF PAYMENT The outstanding fee balance indicated on any recorded Agreement and Notice of Intent to Lien shall be payable to the City prior to the issuance of a certificate of occupancy. Should the deferred fees not be paid when they become due and payable or should the property owner be in breach or any provisions of this agreement: (a) all remaining and unpaid impact fees shall be accelerated and become immediately due and payable; and (b) an additional One Thousand and no/100 Dollars ($1,000.00) shall be added to the unpaid balance to cover the initial administrative costs incurred in processing the fee deferral application; and (c) any additional costs required to collect unpaid deferred fees. 125 Resolution 4433 Page 4 of 6 10. FEES The applicant shall pay an initial application fee of $50 dollars at the time the request for deferral of impact fees is submitted to the City. The applicant is responsible for payment of all fees associated with recording documents with the Gallatin County Clerk and Recorder. 11. INTEREST Interest on the deferred impact fees shall accrue from the date the building is occupied until the deferred fees and all accrued interest is paid. The rate of interest agreed to between the parties hereto shall not be less than the amount of the annual interest the City earns on its investment of pooled funds. The parties agree that the rate of interest applicable to this Agreement shall be simple interest at the rate of _____% per annum. OR No interest is charged on the deferred fee amount. OR Interest shall be charged at the rate of the annual interest the City earns on its investment of pooled funds for any deferred fees not paid when due and payable in accordance with the deferral Agreement. Interest will be retroactive to the beginning of the date of payment deferral. 12. SUBORDINATION The lien created hereunder shall not be subordinated. 13. RELEASE OF LIEN Upon full payment of all deferred impact fees and associated costs to the City and complete satisfaction of all terms and conditions by the property owner of an Agreement prepared to execute this Resolution, the City shall promptly release the lien created hereunder by executing a lien release clearly releasing the City’s interests in the property. 14. COLLECTION The City may pursue collection through all available legal and administrative means including, but shall not be limited to, judicial or non-judicial foreclosure of the recorded lien against the Affected Property and/or civil judgment against the property owner for breach of this Agreement and/or security provided hereunder. As part of the obligation secured hereby and in addition to the amount of the deferred fees stated above, there shall be included cost and reasonable expenses and fees, including reasonable attorneys’ fees, incurred by the City in successfully enforcing such obligation, all to be taxed as costs and included in any judgment rendered. 15. ASSIGNMENT This interests in the deferral shall not be assigned or otherwise transferred to a person or entity not a party to the deferral without the express prior written consent of the City. Any person or entity seeking assignment or transfer of the deferral shall meet all the terms and conditions under this Resolution of the City Commission adopting standards for the fee deferrals. Assignment shall not be effective until proposed assignee/transferee executes an assignment and assumption agreement, in a form acceptable to the City Attorney, assuming all duties and obligations of the property owner under this resolution. Any assignment or transfer not in strict compliance with this provision shall: (a) be null and void; (b) constitute a material breach of this resolution; and 126 Resolution 4433 Page 5 of 6 (c) cause all impact fees deferred under this Agreement to become due and immediately payable at the time of the attempted assignment or transfer. 16. INTREGRATION An agreement created under the terms of this resolution constitutes the complete, entire, exclusive, and final agreement and understanding between the parties as to the subject matter herein, superseding all negotiations, prior discussions, and preliminary agreements or contemporaneous understandings, written or oral. 17. MODIFICATIONAND AMENDMENT Any Notice or Release shall not be amended, modified, or otherwise changed unless in writing and signed. 18. SUCCESSORS AND ASSIGNS This resolution and any action taken pursuant to it shall be binding upon and inure to the benefit of the parties and their respective successors and assigns. 19. AUTHORITY TO EXECUTE A property owner or other person making application or signing a form prepare pursuant to this resolution warrants and represents that they have the authority to execute an Agreement on behalf of their entity and have the authority to bind their party to the performance of its obligations hereunder. False representation shall constitute perjury or false swearing. 20. APPEALS Appeals of actions taken under this Resolution shall follow the procedures of Section 2.06.1700.I, BMC. 21. ADMINISTRATION This program shall be administered by the Community Development Department who shall be aided by other City departments as may be necessary. SEVERABILITY Section 2 If any portion of this Resolution is held by a court of competent jurisdiction to be invalid, void, or unenforceable, the remainder of the provisions of this Resolution shall remain in full force and effect and shall in no way be affected, impaired, or invalidated. PASSED AND APPROVED by the City Commission of the City of Bozeman, Montana, at a regular session thereof held on the _____ day of ________, 2013. 127 Resolution 4433 Page 6 of 6 ___________________________________ SEAN A BECKER Mayor ATTEST: ________________________________________ STACY ULMEN, CMC City Clerk APPROVED AS TO FORM: ___________________________________ GREG SULLIVAN City Attorney 128 Return to: Community Development Department 20 E. Olive Street Bozeman MT 59715 AGREEMENT FOR THE PAYMENT OF DEFERRED IMPACT FEES AND NOTICE OF INTENT TO LIEN THIS AGREEMENT is made and entered into this _______ day of ____________, 20__, by and between ____________________________________________________ hereinafter called the “Developer,” and the City of Bozeman, a Municipal Corporation of the State of Montana, hereinafter called the “City.” WHEREAS, it is the intent and purpose of the Developer to meet the requirement of Commission Resolution #4433 to allow the issuance of building permit __________________ prior to payment of transportation impact fees required by 2.06.1640 BMC on property located at ____________________________________________________________ and legally described as____________________________________________________________, City of Bozeman, Gallatin County, Montana. WHEREAS, it is the intent of the Developer to defer payment of transportation impact fees until occupancy for the construction authorized under building permit ______________; and WHEREAS, it is the intent and purpose of both the Developer and the City to hereby enter into an Agreement which will guarantee the full and satisfactory completion of the required payment; and it is the intent of this Agreement, and of the parties hereto, to satisfy the requirements of the municipal code and Commission Resolution #4433. NOW, THEREFORE, in consideration of the mutual covenants and conditions contained herein, it is hereby agreed as follows: 1. Property Description This Agreement pertains to and includes those properties which are designated and identified as ________________ and legally described as ___________________________, City 129 Agreement for Payment of Deferred Impact Fees and Notice of Intent to Lien Agreement for Payment of Deferred Impact Fees and Notice of Intent to Lien Page 2 of Bozeman, Gallatin County, Montana. 2. Payment of Deferred Impact Fees This Agreement specifically includes the payment of transportation impact fees calculated for building permit _______, in the amount of $numeric_____________, (written____________). Developer acknowledges that the above impact fee must be paid before the Certificate of Occupancy may be issued. Developer agrees to pay the above stated fee in accordance with this agreement and Commission Resolution #XXXX before the structure identified in the building permit referenced above is occupied. 3. Guarantee, Time for Completion of Agreement No occupancy of the structure, either temporary or permanent prior to payment of the deferred transportation impact fee and completion of this agreement. This agreement constitutes a Notice of Intent to Lien against the property in the event that the deferred impact fees are not paid. Should the fees not be paid the City may without further action lien against the property in the full amount of the deferred fees as stated above and for costs required for collection of the deferred fee. 4. Inspection Representatives of the City shall have the right to enter upon the property at any reasonable time in order to inspect it and to determine if the Developer is in compliance with this Agreement, and the Developer shall permit the City and its representatives to enter upon and inspect the property at any reasonable time. 5. Default Time is of the essence for this Agreement. If the Developer shall default in or fail to fully perform any of its obligations in conformance with the time schedule under this Agreement, and such default or failure shall continue for a period of thirty (30) days after written notice specifying the default is deposited in the United States mail addressed to the developer at ______________________________________________________________________________ or such other address as the Developer shall provide to the City from time to time, without being completely remedied, satisfied, and discharged, the City may elect to enforce any of the 130 Agreement for Payment of Deferred Impact Fees and Notice of Intent to Lien Agreement for Payment of Deferred Impact Fees and Notice of Intent to Lien Page 3 following specified remedies: A) The City may, at its option, lien against the property. B) The City may enforce any other remedy provided by law. 6. Indemnification The Developer hereby expressly agrees to indemnify and hold the City harmless for and against all claims, costs and liability of every kind and nature, for injury or damage received or sustained by any person or entity in connection with, or on account of the performance of work at the development site and elsewhere pursuant to this Agreement. The Developer further agrees to aid and defend the City in the event that it is named as a defendant in an action concerning the performance of work pursuant to this Agreement except where such suit is brought by the Developer. The Developer is not an agent or employee of the City. 7. Governing Law and Venue This Agreement shall be construed under and governed by the laws of the State of Montana. In the event of litigation concerning this Agreement, venue is in the Eighteenth Judicial District Court, Gallatin County, State of Montana. 8. Changes in Fee During Deferral Period The fees due at conclusion of the deferral period shall not change from the amount determined. In the event the amount of fees either decreases or increase no change in the amount of fees due will be made unless the project constructs less demand generating improvements than originally depicted on the building permit for the work. 9. Attorney’s Fees In the event it becomes necessary for either party to this Agreement to retain an attorney to enforce any of the terms or conditions of this Agreement, then the prevailing party shall be entitled to reasonable attorney’s fees and costs, to include the salary and costs of in-house counsel including City Attorney. 10. Modifications or Alterations No modifications or amendment of this Agreement shall be valid, unless agreed to in writing by the parties hereto. 131 Agreement for Payment of Deferred Impact Fees and Notice of Intent to Lien Agreement for Payment of Deferred Impact Fees and Notice of Intent to Lien Page 4 11. Invalid Provision The invalidity or unenforceability of any provision of this Agreement shall not affect the other provisions hereof, and this Agreement shall be construed in all respects as if such invalid or unenforceable provision were omitted. 12. No Assignment It is expressly agreed that the Developer shall not assign this Agreement in whole, or in part, without prior written consent of the City. 13. Successors Except as provided in paragraph 10, this Agreement shall be binding upon, enure to the benefit of, and be enforceable by the parties hereto and their respective heirs, successors and assigns. 132 Agreement for Payment of Deferred Impact Fees and Notice of Intent to Lien Agreement for Payment of Deferred Impact Fees and Notice of Intent to Lien Page 5 CORPORATION ________________________ On behalf of MT Stewards, LLC STATE OF MONTANA ) )ss. County of Gallatin ) On this ________ day of ____________________, 2013, before me, the undersigned, a Notary Public for the State of , personally appeared , known to me to be the of _____________________ the corporation that executed the within instrument, and acknowledged to me that he executed the same for and on behalf of said corporation. 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 Residing at Bozeman My Commission Expires _______________ 133 Agreement for Payment of Deferred Impact Fees and Notice of Intent to Lien Agreement for Payment of Deferred Impact Fees and Notice of Intent to Lien Page 6 THE CITY OF BOZEMAN _______________________________ Steve Worthington Community Development Director. STATE OF MONTANA ) )ss. County of GALLATIN ) On this day of , 2013, before me, a Notary Public for the State of Montana, personally appeared Steve Worthington, known to me to be the person described in and who executed the foregoing instrument as Community Development Director of the City of Bozeman, whose name is subscribed to the within instrument and acknowledged to me that she executed the same for and on behalf of said City. 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 Residing at _______________________________ My Commission Expires:____________________ (Use four digits for expiration year) 134 DRAFT Community Development Department 20 E Olive Street • PO Box 1230 Bozeman, MT 59771-1230 Phone: (406) 582-2260 • Fax: (406) 582-2263 City of Bozeman Impact Fee Deferral Program Forms 135 Page 1 Name of Applicant:______________________________________________________________ Property Owner Name: __________________________________________________________ Property Owner Address: _________________________________________________________ Phone Number:_________________________________________________________________ Project Name:__________________________________________________________________ Property Address: ______________________________________________________________ The undersigned property owner seeks a fee deferral for the above referenced project and proposes to enter into an Impact Fee Deferral Agreement to be recorded against the affected property as an: Initial Agreement and Notice of Intent to Lien The Applicant acknowledges the following: (please review and initial) Initial The property owner has reviewed the fee deferral provisions for the City of Bozeman and understands the deferral times periods, those fees which are due and payable at the time the building permit is issued and those fees which may be deferred and costs which may be incurred by deferring fees. Initial The property owner has not had a foreclosure on any properties in the past four years. Initial The property owner has not had any bankruptcy filing in the past four years. Initial The property owner has no outstanding and unsatisfied Civil Judgment. Community Development Department 20 E Olive Street • PO Box 1230 Bozeman, MT 59771-1230 Phone: (406) 582-2260 • Fax: (406) 582-2263 APPLICATION FOR DEFERRAL OF DEVELOPMENT IMPACT FEES 136 Page 2 Initial No taxes or other governmental fees due on this property or other properties owned by the same property owner are late or unpaid. Initial All zoning or subdivision review steps for this site have been completed. I declare under the penalty of perjury under the laws of the State of Montana that the foregoing is true and correct. Dated:___________________ _______________________________ Property Owner’s Signature _______________________________ Print Name _______________________________ Title _______________________________ Company 137 Page 1 Name of Applicant: ____________________________________Phone No._________________ Property Owner: ______________________________________Phone No._________________ Project Name: __________________________________________________________________ Address: ______________________________________________________________________ Upon review and consideration of the Application for Deferral of Development Impact Fees, the following transportation impact fees are eligible for deferral under the City of Bozeman Development Impact Fee program. Deferred Transportation Impact Fees $_______________________ Deferred impact fees are subject to the provision of the City of Bozeman Development Impact Fee Deferral Program terms and conditions. The Fee Deferral Agreement shall be executed by the Applicant. Date: ___________________ ______________________________________ Name ______________________________________ Title City of Bozeman Department of Planning and Community Development 20 E Olive Street • PO Box 1230 Bozeman, MT 59771-1230 Phone: (406) 582-2260 • Fax: (406) 582-2263 ADMINISTRATIVE APPROVAL FOR DEFERRAL OF DEVELOPMENT IMPACT FEES 138 Page 1 Name of Applicant: ______________________________________Phone No._______________ Property Owner: ________________________________________Phone No._______________ Project Name: __________________________________________________________________ Address: ______________________________________________________________________ Building Permit Number: _________________________________________________________ Upon review and consideration of the Application for Deferral of Development Impact Fees, it is determined that the Application should be denied and it is hereby denied due to the Applicant not meeting the following Eligibility Criteria established pursuant to the City of Galt Fee Deferral Agreement: □ The property owner has had one or more of its properties foreclosed within the past four years. □ The property owner has filed for bankruptcy protection within the past four years. □ The property owner has an outstanding Civil Judgment. [HOW DO WE VERIFY] □ Taxes or fees are unpaid for this property or other properties owned by the same owner WITHIN GALLATIN COUNTY. □ Other: __________________________________________________________________ □ Other: __________________________________________________________________ Dated: ___________________ ___________________________________ Name Community Development Department 20 E Olive Street • PO Box 1230 Bozeman, MT 59771-1230 Phone: (406) 582-2260 • Fax: (406) 582-2263 ADMINISTRATIVE DENIAL FOR DEFERRAL OF DEVELOPMENT IMPACT FEES 139 Page 2 ___________________________________ Title City of Bozeman 140 Page 1 WHEN RECORDED MAIL TO: City of Bozeman Community Development Department PO Box 1230 Bozeman, MT 59771 (Space above for Recorder’s Use) RELEASE OF NOTICE OF AGREEMENT AND INTENT TO LIEN UPON REAL PROPERTY WHEREAS, on __________________, _______ an Agreement and Notice of Intent to Lien to Secure Payment of Deferred Development Impact Fees was recorded as Document No. _______________, with the Gallatin County Clerk and Recorder; and, WHEREAS, Grantor has satisfied the conditions for the release of lien encumbering certain parcels under said Agreement. NOW THEREFORE, the Grantee hereby releases all of its right, title, and interest to the lien in the real property described as: __________________________________________________. DATED this day of ____________________, 20____. THE CITY OF BOZEMAN Name ____________________________________ Title 141 Page 2 STATE OF MONTANA ) :ss County of Gallatin ) On this ______ day of ______________, 20____, before me, a Notary Public for the State of Montana, personally appeared _______________, known to me to be the person described in and who executed the foregoing instrument as __________________________________________ of the City of Bozeman, whose name is subscribed to the within instrument and acknowledged to me that he executed the same for and on behalf of said City. IN WITNESS WHEREOF, I have hereunto set my hand and affixed my seal on the day and year first written above. (Signature above) (Seal) (Printed Name above) Notary Public for State of Montana Residing at: Commission Expires: (Use 4 digits for expiration year) 142