HomeMy WebLinkAboutA3 Resolution 4589
Commission Memorandum
REPORT TO: Honorable Mayor and City Commission
FROM: David Fine, Economic Development Specialist
SUBJECT: Resolution 4589 amending the Fiscal Year 2015 (FY15) North 7th Tax
Increment Finance District Fund Budget to Include Additional
Expenditures of $20,000 for District Consultant Services, $100,000 for
Fiber Optic Engineering and Project Management Costs, and $75,000 for Design Standard Creation.
MEETING DATE: March 16, 2015
AGENDA ITEM TYPE: Action RECOMMENDATIONS:
Staff recommends adoption of Resolution 4589.
SUGGESTED MOTION: Having conducted a public hearing, considered written and spoken public testimony, and based
on the findings contained in this and other related staff memoranda, the content of Resolution No. 4589 and findings articulated by the Commission during discussion, I hereby move to adopt Resolution No. 4589. BACKGROUND:
1) Comprehensive Design Standards for the North 7th Tax Increment Finance District - $75,000
Economic Development and Planning staff are working together to provide a broad
spectrum of support and input to the North Seventh Urban Renewal Board (NSURB). As the
Board works to implement the final phases of the installation of the lighting and sidewalk project it is time to look forward to the next stage in the development of the N 7th corridor. As the Board considers a new branding effort, support for the broadband initiative to
increase the viability of redevelopment of underutilized parcels, and possible expansion of the
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district, now is the time for the Board along with the broader community to update the initial
design plan for the TIF.
The existing North 7th Avenue Plan was drafted to primarily address street connections
and improvements. The implementation of the lighting plan will realize much of what the plan called for in terms of street improvements. Other recommended plan improvements, such as the
inclusion of traffic circles at major intersections were recommendations that cannot be realized
due to right of way constraints. The district and the community have moved beyond the scope
of the initial study and would benefit from the cooperative development of a new design plan to
address the continuing evolution of the district. As the TIF matures, broader design guidelines are needed in order to address the goal of
district revitalization. The key to altering the suburban development patterns of the area that
seem to be devaluing property – overly wide roads, large, barren and numerous parking lots,
wasted space, and outdated site design – is to create a design plan that can guide the Board and
the Commission in the allocation of limited funds to create the greatest impact to revitalize the district. Developing a vision and plan for the district will assist property owners in seeing the
unrealized value in their property. Retrofitting is incremental and adaptive, but needs to be
guided by an overall vision for the district. Maximizing the use of one “suburban” property, with
denser, walkable, synergistic uses, results in the retrofit of another. One successful retrofit
begets another, but we are now at the point where we are not sure how to move forward to incentivize the courageous civic minded development entrepreneur to take bold steps to
maximize the value of properties for the benefit of the owner, adjacent owners, and the
community.
A new design plan will help the NSURB to create implementing policies that maximize
market forces to encourage diversification and redevelopment. Recommendations to address key design challenges to altering the suburban development pattern to create internal and external
integration of the parts over time and over multiple parcels is a critical policy that is needed to
move the district to the next stage. Innovative ideas to address zoning and subdivision
regulations to overcome the existing fragmentation are needed. Transforming a parcel of as little
as 15 acres can transform the character of an area and spark excitement. We have seen this in Bozeman already with the redevelopment of the Cannery District. A new urban design plan is
needed to continue to move this TIF district from “blight” to buzz.
The NSURB voted on February 5, 2015 to amend their work plan and budget to request
$75,000 to develop design standards for the District.
2) Professional Services Contract with Community Development Services of Montana to
rewrite the Urban Renewal Plan for the North 7th TIF and to complete the necessary activities for the possible expansion of the North 7th TIF by the City Commission - $20,000
The North Seventh Urban Renewal Board (NSURB) voted on January 8, 2015 to recommend that the Commission consider five (5) areas contiguous to the district for expansion.
Those areas are indicated on the attached map. The City Commission would have the ultimate
authority to include any of these areas in a proposed district. If, however, an area is not included
in the study area, the area cannot be included in any expanded district. The contract with
Community Development Services of Montana (CDS) includes considerable time for public outreach and engagement with key stakeholders like the school board and county commission.
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Staff recommends continuing with the expansion study for all five areas and making an
expansion decision later in the process.
The NSURB and staff recommend completely rewriting the Urban Renewal Plan for the
North 7th District. The existing TIF plan is outdated and could provide much better direction regarding the specifics of the urban renewal projects that should take place within the district. The Administrative Rules of the State of Montana (ARM) governing TIF district expansion
specify processes that are very similar to the creation of a new TIF district, including submitting
the proposed TIF plan to the Montana Department of Revenue. The contract with CDS includes
rewriting the TIF plan, in conjunction with the NSURB, to better meet the needs of the District and the requirements of the Department of Revenue should the district be expanded. The NSURB believes that rewriting the TIF plan is in the best interests of the District, even if the
Commission elects not to expand the boundaries of the district.
3) Fiber Optic Engineering and Project Management - $100,000 The Commission approved work plan and budget for the Downtown TIF included
$100,000 for expenses related to provisioning fiber optic infrastructure. On January 8, 2015, the
NSURB voted to request an amendment to their work plan and budget requesting similar funding
for engineering and project management services to plan for fiber optic infrastructure within the District. This funding request is consistent with the goals of the Bozeman Fiber Master Plan. Moreover, it would allow the district to plan more comprehensively for fiber optic infrastructure
throughout the district to facilitate blight remediation by means of enhanced infrastructure that
may attract new businesses and support existing businesses.
UNRESOLVED ISSUES:
• No decision has been made about the expansion of the N. 7th TIF. Staff recommends that
the Commission make an expansion decision further into the study process.
ALTERNATIVES: As determined by the Commission.
FISCAL EFFECTS: The increased appropriations shall be funded from un-used cash reserves in the North 7th Tax
Increment District Fund. Current Beginning and Ending Reserves estimates are as follows:
Beginning FY15 Estimated Revenues Amended
Appropriations
Amended FY15 Ending
Balance
$1,466,251 $728,013 $1,243,500 $950,764
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Attachments:
• Resolution No. 4589
• Map of Proposed Expansion Areas
• Professional Services Agreement and Phased Scope of Work for the contract with Community
Development Services of Montana.
• NSURB Minutes from January 8, 2015
• NSURB Minutes from February 5, 2015
Report prepared on March10, 2015
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COMMISSION RESOLUTION NO. 4589
A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF
BOZEMAN, MONTANA, AMENDING FISCAL YEAR 2015 (FY15) NORTH
7TH TAX INCREMENT FINANCE DISTRICT FUND BUDGET TO
INCLUDE ADDITIONAL EXPENDITURES OF $20,000 FOR DISTRICT CONSULTANT SERVICES, $100,000 FOR FIBER OPTIC PROJECT COSTS, AND $75,000 FOR DESIGN STANDARD CREATION.
WHEREAS, on June 2, 2014, the North 7th Urban Renewal District (the District ) presented
their annual work-plan report and budget request for Fiscal Year 2015 to the City Commission; and
WHEREAS, the City Commission exercises its authority to adopt budgets and authorize
expenditures for the District in accordance with Montana Code Annotated 7-15-4281; and
WHEREAS, the City Commission did, on the 23rd day of June, 2014, after due and proper
legal notice conduct a public hearing on and adopt Resolution No. 4531 - A RESOLUTION OF THE
CITY COMMISSION OF THE CITY OF BOZEMAN, MONTANA, APPROPRIATING FUNDS FOR
VARIOUS BUDGET UNITS, AND FURTHER ESTIMATING REVENUE NECESSARY TO
OPERATE AND MAINTAIN SERVICES OF MUNICIPAL GOVERNMENT FOR THE FISCAL
YEAR ENDING JUNE 30, 2015; and
WHEREAS, on January 8, 2015 the District approved a motion to amend the work-plan and
budget to include $20,000 for TIF consultant services for analysis of the district boundaries and for
rewriting the urban renewal plan.
WHEREAS, on January 8, 2015 the District approved a motion to amend the work plan and
budget to include $100,000 for fiber optic engineering design and project management within the
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district; and
WHEREAS, on February 5, 2015 the District approved a motion to amend the work plan and
budget to include $75,000 to create comprehensive design standards for the North 7th Avenue Corridor;
and
WHEREAS, the North 7th Tax Increment Finance District Special Revenue Funds are to be
expended on projects included in the North 7th Urban Renewal District’s work-plan, to benefit the
District; and
WHEREAS, the City Commission did, on the 16th day of March, 2015, after due and proper
legal notice, conduct a public hearing on the proposed budget amendments.
NOW, THEREFORE, BE IT RESOLVED by the City Commission of the City of Bozeman,
Montana, to wit:
Section 1 – Appropriation Additions The City Commission of the City of Bozeman, Montana, does hereby authorize additional
expenditures within the North 7th Tax Increment District Fund in Fiscal Year 2015 in the following
amounts:
North 7th Tax Increment District Fund:
Consulting Services – TIF District $20,000
Consulting Services – Fiber Optic Engineering & Project Management $100,000
Consulting Services – Design Standards $75,000
GRAND TOTAL – Additional Appropriations $ 195,000
Section 2 – Use of Fund Reserves
The increased appropriations shall be funded from un-used cash reserves in the North 7th Tax
Increment District Fund. Current Beginning and Ending Reserves estimates are as follows:
Beginning FY15 Estimated Revenues Amended
Appropriations
Amended FY15 Ending
Balance
$1,466,251 $728,013 $1,243,500 $950,764
Section 3
Pursuant to Section 7-6-4030, M.C.A., this resolution, upon its passage, shall be in full force and effect on July 1, 2014.
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Section 4 That should it be found by any court of competent jurisdiction that any section, clause, portion,
sentence, word, or phrase of this resolution is deemed to be contrary to any existing law or regulations,
that in this instance, it is the intent of the City Commission of the City of Bozeman, Montana, that all
other portions, sections, words, clauses, phrases, or paragraphs of this document shall remain in full
force and effect.
PASSED AND APPROVED by the City Commission of the City of Bozeman, Montana, at a
regular session thereof held on the 16th day of March, 2015.
________________________________________
JEFFREY K. KRAUSS Mayor ATTEST:
_____________________________________ STACY ULMEN, CMC City Clerk
APPROVED AS TO FORM:
________________________________________
GREG SULLIVAN City Attorney
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Professional Services Agreement for Tax Increment Finance District Expansion FY 2014 – FY 2015
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PROFESSIONAL SERVICES AGREEMENT
THIS AGREEMENT is made and entered into this _____ day of ____________, 2014, 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, Community Development Services of Montana, with a
mailing address of 954 West Caledonia St., Butte, MT 59701 hereinafter referred to as
“Contractor.”
In consideration of the mutual covenants and agreements herein contained, the receipt and
sufficiency whereof being hereby acknowledged, the parties hereto agree as follows:
1. Purpose: City agrees to enter this Agreement with Contractor to perform for City
services described in the Scope of Services attached hereto as Attachment “A” and by this reference
made a part hereof.
2. Term/Effective Date: This Agreement is effective upon the date of its execution
and will terminate on January 2, 2016.
3. Scope of Work: Contractor will perform the work and provide the services in
accordance with the requirements of the Scope of Services (the frequency and work schedule). For
conflicts between this Agreement and the Scope of Services, unless specifically provided otherwise,
the Agreement governs.
4. Payment: The City agrees to compensate CDS of Montana an amount not
exceeding $2,500 for Phase 1 of the scope of work as detailed in Attachment A to this agreement
based on an hourly rate of $80.00 per hour plus expenses. If the City chooses to continue with
subsequent phases, the City will agree to compensate CDS of Montana an additional amount, not to
exceed $17,500, based on an hourly rate of $80.00 per hour plus expenses for Phases 2 and 3 of the
scope of work as detailed in Attachment A to this agreement. Compensation will be made within
fifteen (15) days of submittal of an invoice via electronic mail to David Fine, dfine@bozeman.net,
by CDS of Montana. Any alteration or deviation from the described services that involves
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additional costs above the Agreement amount will be performed by Contractor after written request
by the City, and will become an additional charge over and above the amount listed in the Scope of
Services. The City must agree in writing upon any additional charges.
5. Contractor’s Representations: To induce City to enter into this Agreement,
Contractor makes the following representations:
a. Contractor has familiarized itself with the nature and extent of this Agreement, the
Scope of Services, and with all local conditions and federal, state and local laws, ordinances, rules,
and regulations that in any manner may affect cost, progress or performance of the Scope of
Services.
b. Contractor represents and warrants to City that it has the experience and ability to
perform the services required by this Agreement; that it will perform said services in a professional,
competent and timely manner and with diligence and skill; that it has the power to enter into and
perform this Agreement and grant the rights granted in it; and that its performance of this
Agreement shall not infringe upon or violate the rights of any third party, whether rights of
copyright, trademark, privacy, publicity, libel, slander or any other rights of any nature whatsoever,
or violate any federal, state and municipal laws. The City will not determine or exercise control as
to general procedures or formats necessary to have these services meet this warranty.
6. Independent Contractor Status/Labor Relations: The parties agree that
Contractor is an independent contractor for purposes of this Agreement and is not to be considered
an employee of the City for any purpose. Contractor is not subject to the terms and provisions of
the City’s personnel policies handbook and may not be considered a City employee for workers’
compensation or any other purpose. Contractor is not authorized to represent the City or otherwise
bind the City in any dealings between Contractor and any third parties.
Contractor shall comply with the applicable requirements of the Workers’ Compensation
Act, Title 39, Chapter 71, MCA, and the Occupational Disease Act of Montana, Title 39, Chapter
71, MCA. Contractor shall maintain workers’ compensation coverage for all members and
employees of Contractor’s business, except for those members who are exempted by law.
Contractor shall furnish the City with copies showing one of the following: (1) a binder for
workers’ compensation coverage by an insurer licensed and authorized to provide workers’
compensation insurance in the State of Montana; or (2) proof of exemption from workers’
compensation granted by law for independent contractors.
Contractor shall indemnify, defend, and hold the City harmless from any and all claims,
demands, costs, expenses, damages, and liabilities arising out of, resulting from, or occurring in
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connection with any labor problems or disputes or any delays or stoppages of work associated with
such problems or disputes.
In the event that, during the term of this Agreement, any labor problems or disputes of any
type arise or materialize which in turn cause any services to cease for any period of time, Contractor
specifically agrees to take immediate steps, at its own expense and without expectation of
reimbursement from City, to alleviate or resolve all such labor problems or disputes. The specific
steps Contractor shall take to services shall be left to the discretion of Contractor; provided,
however, that Contractor shall bear all costs of any related legal action. Contractor shall provide
immediate relief to the City so as to permit the services to continue at no additional cost to City.
Contractor shall indemnify, defend, and hold the City harmless from any and all claims,
demands, costs, expenses, damages, and liabilities arising out of, resulting from, or occurring in
connection with any labor problems or disputes or any delays or stoppages of work associated with
such problems or disputes and for any claims regarding underpaid prevailing wages.
7. Indemnity/Waiver of Claims/Insurance: For other than professional services
rendered, to the fullest extent permitted by law, Contractor agrees to release, defend, indemnify, and
hold harmless the City, its agents, representatives, employees, and officers (collectively referred to
for purposes of this Section as the City) from and against any and all claims, demands, actions, fees
and costs (including attorney’s fees and the costs and fees of and expert witness and consultants),
losses, expenses, liabilities (including liability where activity is inherently or intrinsically
dangerous) or damages of whatever kind or nature connected therewith and without limit and
without regard to the cause or causes thereof or the negligence of any party or parties that may be
asserted against, recovered from or suffered by the City occasioned by, growing or arising out of or
resulting from or in any way related to: (i) the negligent, reckless, or intentional misconduct of the
Contractor; (ii) any negligent, reckless, or intentional misconduct of any of the Contractor’s agents;
or (iii) the negligent, reckless, or intentional misconduct of any other third party.
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
willful misconduct of the Contractor or Contractor’s agents or employees.
Such obligations shall not be construed to negate, abridge, or reduce other rights or
obligations of indemnity that would otherwise exist. The indemnification obligations of this Section
must not be construed to negate, abridge, or reduce any common-law or statutory rights of the
indemnitee(s) which would otherwise exist as to such indemnitee(s).
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Contractor’s indemnity 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 the Contractor
to assert its right to defense or indemnification under this Agreement or under the Contractor’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 the Contractor 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.
Contractor also waives any and all claims and recourse against the City or its officers, agents
or employees, including the right of contribution for loss or damage to person or property arising
from, growing out of, or in any way connected with or incident to the performance of this
Agreement except “responsibility for his own fraud, for willful injury to the person or property of
another, or for violation of law, whether willful or negligent” as per 28-2-702, MCA.
These obligations shall survive termination of this Agreement and the services performed
hereunder.
In addition to and independent from the above, Contractor shall at Contractor’s expense
secure insurance coverage through an insurance company or companies duly licensed and
authorized to conduct insurance business in Montana which insures the liabilities and obligations
specifically assumed by the Contractor in this Section. The insurance coverage shall not contain any
exclusion for liabilities specifically assumed by the Contractor in subsection (a) of this Section.
The insurance shall cover and apply to all claims, demands, suits, damages, losses, and
expenses that may be asserted or claimed against, recovered from, or suffered by the City without
limit and without regard to the cause therefore and which is acceptable to the City and Contractor
shall furnish to the City an accompanying certificate of insurance and accompanying endorsements
in amounts not less than as follows:
• Workers’ Compensation – statutory;
• Commercial General Liability - $1,000,000 per occurrence; $2,000,000 annual
aggregate;
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• Automobile Liability - $100,000 property damage, each accident/ bodily injury
$500,000, each accident; and
The City of Bozeman, its officers, agents, and employees, shall be endorsed as an additional
or named insured on a primary non-contributory basis on the Commercial Liability policy. The
insurance and required endorsements must be in a form suitable to City and shall include no less
than a sixty (60) day notice of cancellation or non-renewal. The City must approve all insurance
coverage and endorsements prior to the Contractor commencing work. Contractor shall notify City
within two (2) business days of Contractor’s receipt of notice that any required insurance coverage
will be terminated or Contractor’s decision to terminate any required insurance coverage for any
reason.
The City must approve all insurance coverage and endorsements prior to the
Contractor commencing work.
8. Termination for Contractor’s Fault:
a. If Contractor refuses or fails to timely do the work, or any part thereof, or
fails to perform any of its obligations under this Agreement, or otherwise breaches any terms
or conditions of this Agreement, the City may, by written notice, terminate this Agreement
and the Contractor’s right to proceed with all or any part of the work (“Termination Notice
Due to Contractor’s Fault”). The City may then take over the work and complete it, either
with its own resources or by re-letting the contract to any other third party.
b. In the event of a termination pursuant to this Section 8, Contractor shall be
entitled to payment only for those services Contractor actually rendered.
c. Any termination provided for by this Section 8 shall be in addition to any
other remedies to which the City may be entitled under the law or at equity.
d. In the event of termination under this Section 8, Contractor shall, under no
circumstances, be entitled to claim or recover consequential, special, punitive, lost business
opportunity, lost productivity, field office overhead, general conditions costs, or lost profits
damages of any nature arising, or claimed to have arisen, as a result of the termination.
9. Termination for City’s Convenience/Contractor Termination:
a. Should conditions arise which, in the sole opinion and discretion of the City,
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make it advisable to the 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 shall be effective in the manner specified in the Notice of
Termination for City’s Convenience and shall be without prejudice to any claims that the
City may otherwise have against Contractor.
b. Upon receipt of the Notice of Termination for City’s Convenience, unless
otherwise directed in the Notice, the Contractor shall immediately cease performance under
this Agreement and make every reasonable effort to refrain from continuing work, incurring
additional expenses or costs under this Agreement and shall immediately cancel all existing
orders or contracts upon terms satisfactory to the City. Contractor shall do only such work
as may be necessary to preserve, protect, and maintain work already completed or
immediately in progress.
c. In the event of a termination pursuant to this Section 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 shall, under no circumstances,
be entitled to claim or recover consequential, special, punitive, lost business opportunity,
lost productivity, field office overhead, general conditions costs, or lost profits damages of
any nature arising, or claimed to have arisen, as a result of the termination.
e. Contractor may terminate this Professional Services Agreement in whole or
in part for any reason at any time upon giving written notice. Such termination shall be
effective in the manner specified in said notice. The City will compensate Contractor for
services performed up to the date of termination. If Contractor terminates pursuant to this
subsection, Contractor shall immediately provide City with all Contractor’s work product.
10. Limitation on Contractor’s Damages; Time for Asserting Claim:
a. In the event of a claim for damages by Contractor under this Agreement,
Contractor’s damages shall be limited to contract damages and Contractor hereby expressly
waives any right to claim or recover consequential, special, punitive, lost business
opportunity, lost productivity, field office overhead, general conditions costs, or lost profits
damages of any nature or kind.
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b. In the event Contractor wants to assert a claim for damages of any kind or
nature, Contractor shall provide City with written notice of its claim, the facts and
circumstances surrounding and giving rise to the claim, and the total amount of damages
sought by the claim, within ten (10) days of the facts and circumstances giving rise to the
claim. In the event Contractor fails to provide such notice, Contractor shall waive all rights
to assert such claim.
11. Representatives:
a. City’s Representative: The City’s Representative for the purpose of this
Agreement shall be Brit Fontenot (Economic Development Director) or such other
individual as City shall designate in writing. Whenever approval or authorization from or
communication or submission to City is required by this Agreement, such communication or
submission shall be directed to Brit Fontenot as the City’s Representative and approvals or
authorizations shall be issued only by such Representative; provided, however, that in
exigent circumstances when City’s Representative is not available, Contractor may direct its
communication or submission to other designated City personnel or agents as listed above
and may receive approvals or authorization from such persons.
b. Contractor’s Representative: The Contractor’s Representative for the
purpose of this Agreement shall be Janet Cornish or such other individual as Contractor
shall designate in writing. Whenever direction to or communication with Contractor is
required by this Agreement, such direction or communication shall be directed to
Contractor’s Representative; provided, however, that in exigent circumstances when
Contractor’s Representative is not available, City may direct its direction or communication
to other designated Contractor personnel or agents.
12. Permits: Contractor shall provide all notices, comply with all applicable laws,
ordinances, rules, and regulations, obtain all necessary permits, licenses, including a City of
Bozeman business license, and inspections from applicable governmental authorities, and pay all
fees and charges in connection therewith.
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13 Laws and Regulations: Contractor shall comply fully with all applicable state and
federal laws, regulations, and municipal ordinances including, but not limited to, all workers’
compensation laws, all environmental laws including, but not limited to, the generation and disposal
of hazardous waste, the Occupational Safety and Health Act (OSHA), the safety rules, codes, and
provisions of the Montana Safety Act in Title 50, Chapter 71, MCA, all applicable City, County,
and State building and electrical codes, the Americans with Disabilities Act, and all non-
discrimination, affirmative action, and utilization of minority and small business statutes and
regulations.
14. Nondiscrimination: The Contractor will have a policy to provide equal
employment opportunity in accordance with all applicable state and federal anti-discrimination
laws, regulations, and contracts. The Contractor will not refuse employment to a person, bar a
person from employment, or discriminate against a person in compensation or in a term, condition,
or privilege of employment because of race, color, religion, creed, political ideas, sex, age, marital
status, national origin, actual or perceived sexual orientation, gender identity, physical or mental
disability, except when the reasonable demands of the position require an age, physical or mental
disability, marital status or sex distinction. The Contractor shall be subject to and comply with Title
VI of the Civil Rights Act of 1964; Section 140, Title 2, United States Code, and all regulations
promulgated thereunder. The Contractor shall require these nondiscrimination terms of its sub-
Contractors providing services under this agreement.
15. Intoxicants; DOT Drug and Alcohol Regulations/Safety and Training:
Contractor shall not permit or suffer the introduction or use of any intoxicants, including alcohol or
illegal drugs, by any employee or agent engaged in services to the City under this Agreement.
Contractor acknowledges it is aware of and shall comply with its responsibilities and obligations
under the U.S. Department of Transportation (DOT) regulations governing anti-drug and alcohol
misuse prevention plans and related testing. City shall have the right to request proof of such
compliance and Contractor shall be obligated to furnish such proof.
The Contractor shall be responsible for instructing and training the Contractor's employees
and agents in proper and specified work methods and procedures. The Contractor shall provide
continuous inspection and supervision of the work performed. The Contractor is responsible for
instructing his employees and agents in safe work practices.
16. Modification and Assignability: This document contains the entire agreement
between the parties and no statements, promises or inducements made by either party or agents of
either party, which are not contained in this written Agreement, may be considered valid or binding.
This Agreement may not be enlarged, modified or altered except by written agreement signed by
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both parties hereto. The Contractor may not subcontract or assign Contractor’s rights, including the
right to compensation or duties arising hereunder, without the prior written consent of City. Any
subcontractor or assignee will be bound by all of the terms and conditions of this Agreement.
17. Reports/Accountability/Public Information: Contractor agrees to develop and/or
provide documentation as requested by the City demonstrating Contractor’s compliance with the
requirements of this Agreement. Contractor shall allow the City, its auditors, and other persons
authorized by the City to inspect and copy its books and records for the purpose of verifying that the
reimbursement of monies distributed to Contractor pursuant to this Agreement was used in
compliance with this Agreement and all applicable provisions of federal, state, and local law. The
Contractor shall not issue any statements, releases or information for public dissemination without
prior approval of the City.
18. Non-Waiver: A waiver by either party any default or breach by the other party of
any terms or conditions of this Agreement does not limit the other party’s right to enforce such term
or conditions or to pursue any available legal or equitable rights in the event of any subsequent
default or breach.
19. Attorney’s Fees and Costs: That in the event it becomes necessary for either Party
of this Agreement to retain an attorney to enforce any of the terms or conditions of this Agreement
or to give any notice required herein, then the prevailing Party or the Party giving notice shall be
entitled to reasonable attorney's fees and costs, including fees, salary, and costs of in-house counsel
to include City Attorney.
20. Taxes: Contractor is obligated to pay all taxes of any kind or nature and make all
appropriate employee withholdings.
21. Dispute Resolution:
a. Any claim, controversy, or dispute between the parties, their agents,
employees, or representatives shall be resolved first by negotiation between senior-level
personnel from each party duly authorized to execute settlement agreements. Upon mutual
agreement of the parties, the parties may invite an independent, disinterested mediator to
assist in the negotiated settlement discussions.
b. If the parties are unable to resolve the dispute within thirty (30) days from the
date the dispute was first raised, then such dispute may only be resolved in a court of
competent jurisdiction in compliance with the Applicable Law provisions of this Agreement.
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Page 10 of 11
22. Survival: Contractor’s indemnification shall survive the termination or expiration of
this Agreement for the maximum period allowed under applicable law.
23. Headings: The headings used in this Agreement are for convenience only and are
not be construed as a part of the Agreement or as a limitation on the scope of the particular
paragraphs to which they refer.
24. Severability: If any portion of this Agreement is held to be void or unenforceable,
the balance thereof shall continue in effect.
25. Applicable Law: The parties agree that this Agreement is governed in all respects
by the laws of the State of Montana and the parties expressly agree that venue will be in Gallatin
County, Montana, and no other venue.
26. Binding Effect: This Agreement is binding upon and inures to the benefit of the
heirs, legal representatives, successors, and assigns of the parties.
27. No Third-Party Beneficiary: This Agreement is for the exclusive benefit of the
parties, does not constitute a third-party beneficiary agreement, and may not be relied upon or
enforced by a third party.
28. Counterparts: This Agreement may be executed in counterparts, which together
constitute one instrument.
29. Integration: This Agreement and all Attachments attached hereto constitute the
entire agreement of the parties. Covenants or representations not contained therein or made a part
thereof by reference, are not binding upon the parties. There are no understandings between the
parties other than as set forth in this Agreement. All communications, either verbal or written,
made prior to the date of this Agreement are hereby abrogated and withdrawn unless specifically
made a part of this Agreement by reference.
30. Extensions: this Agreement may, upon mutual agreement, be extended by written
agreement of the Parties. In no case, however, may this Agreement run longer than May 31st, 2016.
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Page 11 of 11
**** END OF AGREEMENT EXCEPT FOR SIGNATURES ****
IN WITNESS WHEREOF, the parties hereto have executed this instrument the day and
year first above written.
CITY OF BOZEMAN, MONTANA ____________________________________
CONTRACTOR (Type Name Above)
By________________________________ By__________________________________
Chris Kukulski, City Manager
Print Name:
Print Title: ____________________________
APPROVED AS TO FORM:
By_______________________________
Greg Sullivan, Bozeman City Attorney
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Attachment A to the Professional Services Agreement between the City of Bozeman and CDS of Montana
1
Attachment A to the Professional Services Agreement between CDS of Montana
and the City of Bozeman
The City of Bozeman is considering the expansion of the existing North Seventh Street
Urban Renewal District for the purposes of furthering its efforts to revitalize this
commercial area and surrounding neighborhoods. If the expansion is determined to be
feasible and appropriate, the City also intends to extend its North Seventh Tax
Increment Financing (TIF) program to the new portions of the urban renewal district.
The analysis of feasibility and appropriateness (Phase 1) per the scope of work will
include the following elements:
• An on-site review of the area(s) proposed to be included in the expanded urban
renewal district, to establish whether it potentially meets the statutory
requirements with respect to blight (7-15-4206, MCA)
• The identification of a preliminary boundary based on these statutory
requirements
• Interviews with City staff to help identify blight and infrastructure deficiencies in
the proposed area(s)
• A cursory review of current urban renewal program and the status of the
existing TIF
• A presentation of findings to the Urban Renewal Agency Board
If the existence of blight is substantiated within the area proposed to be added to the
existing district, the City may choose to proceed with the balance of work (Phases 2 and
3) necessary to expand the district with a base year of 2015 per the following:
Scope of Work and Associated Costs
The total cost associated with completing all of the steps necessary to expand the
Bozeman North 7th Urban Renewal TIF district is $20,000. The ability to keep the cost at
this amount, relies on the timely cooperation of the local government in:
• selecting the boundary of the project
• developing legal descriptions in a digital format
• generating maps in a JPEG/PDF format
• collecting information including geocodes and property owner information
• providing relevant documents including adopted growth policies and zoning
regulations
• providing previously adopted and/or similar board and governing body notices,
resolutions, ordinances, etc. in a digital format
• facilitating the flow of various communications
• publishing and posting public hearing notices as required
• making sure ordinances and resolutions are introduced and acted upon
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Attachment A to the Professional Services Agreement between the City of Bozeman and CDS of Montana
2
• mailing required information to property owners
• providing other on-site functions as needed
The City of Bozeman will pay for such things as publication of all documents, provision
of printed growth policy for state certification, hearing notices, certified mailings, and
map production.
The following provides a description of the scope of work, in phases with associated
costs:
Phase 1. Site Review and Feasibility Analysis - “not to exceed” $2,500.00
a. Assess proposed urban renewal area (s) and determine suitability as such,
based on 7-15-4206 MCA
b. Meet with City staff to identify infrastructure deficiencies
c. Meet with City staff to review the existing urban renewal program, timing
and funds and appropriateness of new/expanded district
d. Meet with City Manager, Administrative Services Director, and Economic
Development staff to discuss the policy implications of Urban Renewal
District Expansion.
e. On a second site visit, make preliminary recommendations to the Urban
Renewal Board regarding the proposed (expanded) district with respect
to:
i. Potential findings of blight and associated statutory issues
ii. Boundary delineation
iii. Time frame
iv. Other, as appropriate
Phase 2. Project Kick-Off - “not to exceed” $3,500.00
f. Conduct initial training and orientation sessions regarding Tax Increment
Financing and the steps involved in creating/amend a district.
g. Hold meetings with staff, Urban Renewal Agency Board of Directors, City
Council and other stakeholders to determine the specific boundaries of the
proposed district expansion and to identify all of the available resources
and information
h. Hold meetings with the affected taxing jurisdictions (schools, county, fire
districts, etc.) to provide information on the proposed Urban Renewal TIF
District expansion
i. Conduct educational meeting with property owners within the proposed
Urban Renewal TIF District
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Attachment A to the Professional Services Agreement between the City of Bozeman and CDS of Montana
3
Phase 3. Assist the local government in completing the steps necessary to expand
the Urban Renewal TIF District, which include the following - “not to exceed”
$14,000
j. Identify a definitive district boundary
k. Assure that the property proposed for inclusion within the (expanded) TIF
District consists of a continuous area with an accurately described
boundary (including a legal description and a map)
l. Compile a list of geo-codes for the properties included in the proposed
TIF District
m. Generate Property Owners’ Names and Addresses for Mailing Labels
n. Prepare Statement of Blight
o. Develop a Resolution of Necessity for adoption by the City Council
p. Prepare (amendments to) the Urban Renewal Plan with a TIF provision
q. Review Growth Policy to determine whether it adequately provides for
the proposed Urban Renewal Plan
r. Amend Growth Policy as required
s. Review Zoning Regulations with respect to the proposed Urban Renewal
Plan
t. Amend Zoning Regulations if required
u. Request determination of conformance with the Growth Policy from the
Planning Board
v. Prepare the local government's finding that the property within the
proposed TIF is not included within an existing urban renewal district
w. Prepare Ordinance Adopting the (amended) Urban Renewal Plan with a
TIF provision
x. Develop the hearing notice for publication and for mailing by certified
mail to all property owners in the proposed Urban Renewal TIF District
y. Hold the public hearing and adopt the Urban Renewal TIF Plan by
ordinance.
z. Assure that the ordinance becomes effective no later than December 31st of
the 2015 for the purpose of calculating the tax increment
aa. Compile all documents per the Montana Department of Revenue
Administrative Rules concerning the certification of the TIF District
bb. Provide the Department of Revenue and all Affected Taxing Jurisdictions
with package of materials.
cc. Monitor certification by DOR until conclusion of contract
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Attachment A to the Professional Services Agreement between the City of Bozeman and CDS of Montana
4
Payment Schedule
CDS of Montana bills on a monthly basis at the end of each month, by email. Our
requested payment schedule is for each monthly bill to be paid within fifteen days of
receipt.
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APPROVED minutes from January 8, 2015 board meeting
Voted on an approved during February 5, 2015 board meeting
held at the Stiff Building, upper conference room
TO DO List:
Everyone attend February 5 board meeting and bring your
prioritization of these potential 2015 goals: lighting, N7
events, media awareness, setup revolving loan program,
expanding district, other
Bill chat with Bozeman Camera about photography event
Susan work on contest idea
Allyson, Brit and/or David get N7 added to Tony’s contract via Engineering dept;
find proposed itemized billing from Janet Cornish;
submit budget amendment to include $20K for TIF
consultant work; bring listing of the PROs and CONs
for each of the proposed areas of expansion
In attendance: Carson Taylor, Bill Fogarty, Esther Schwier, Scott Hedglin, Susan Fraser,
Allyson Brekke, Econ Dev Ofc Brit Fontenot and David Fine
Call to Order – Scott called the meeting to order at 4:37pm.
Public Comment – none.
Meeting Minutes
Bill motioned to accept December 4 minutes as presented; Susan seconded. All in favor.
TIF consultant presentation on preliminary analysis of current TIF boundaries and
plan
Brit introduced Janet Cornish and Lynette Windemaker, Community Development
Services of Montana, http://cdsofmontana.com . Janet started presentation by noting
they visited Bozeman in November to meet with city staff about issues. She then launched
into slideshow after handing out map discerning six areas board might consider adding
(see Attachment A) and the legal description of blight (see Attachment B).
Discussion involved revolving loan idea, and Brit confirmed such a system is already set
up within the city and run by Prospera. Discussion continued including the following:
Scott asked Staff for their suggestions on sections to consider adding to district:
1)”Barmuda” to Lamme section, 2)section behind Cats Paw, west of 8th, and 3)
proposed convention center site.
Scott then asked about the fairgrounds and Janet noted it would be a boon to
connectivity even with the knowledge of no monetary contribution to tax increment
district fund.
Janet reported their projected timeframe is nine months to finalize expansion.
If nothing else, Brit noted, he would like the consultant team to rework the 2006 city’s
district plan.
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K12 and County have been contacted about possible district expansion. Brit reported
school district is good to simply stay in the information stream; county administrator
Jim in the room and he, too, said it is just good to be included in the informational
conversation but they have no direct concerns about going forward.
Carson noted he will have to be convinced that expansion provides true benefit.
Janet concluded presentation by noting only six years remain for district and asked the
board if expansion is worth it considering short timeframe.
N7Rehab applications and presentations
Allyson gave two project updates: Universal interested in technical assistance grant; and
Cellular/Verizon Jeff called about help with their eastern pad area.
Phase II lighting project status, easements, etc
Kevin Jacobsen with Morrison-Maierle joined the table. Scott summarized yesterday’s
meeting with MDT, noting a really short report as the idea of reducing lane width was met
with very little support. Scott noted he believes we should abandon this idea now.
Yesterday’s meeting also included conversation about including MM moving forward, going
ahead with light installations where we do have easements. MDT supportive of this plan.
Scott went on to say discussion included MM continuing creating easements and exhibits
for remaining district. Bill asked for clarification; Allyson confirmed this work fits within
existing budget parameters.
Brit spoke to easements. Currently adding N. 7th needs to Tony’s existing contract with
city for easement gathering. His work goes thru city engineering, and board already
includes right-of-way costs within annual budgets.
2015 Goals Discussion – lighting, events, media awareness, setup revolving loan
program, etc
Scott opened discussion noting that as a board we need to think about goals for this year.
Bill wants to add to goals the expansion of the district. Scott continued to touch on the
possible goals noted in agenda item, asking board to do a couple of things well this year.
Brit noted they, too, have the same goal.
Discussion continued. Scott requested on February agenda a listing of all possible
priorities and then board will put in order during meeting conversation.
More discussion, including board member’s ideas of events that could get people out. Bill
will pursue the photography event idea, chatting with Bozeman Camera about hosting.
Susan will rough out idea of contests for event ideas, similar rules of sweet pea poster art
contest.
Recruiting board members to fill vacant positions
Scott welcomed Esther Schwier to the board, inviting her to give two minute introduction
of herself. Her appointment is on Monday’s commission agenda as is Bill’s reappointment.
There are still two empty seats on NSURB.
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Action items
TIF consultant
Brit spoke about $20K for TIF consultants would cover entire process over the next nine
months, soup to nuts. Discussion. Scott asked staff to request itemization of the
consultant’s proposed work. Allyson thinks they have already received such. Susan
motioned to amend the work plan and budget up to $20K for TIF consultant services for
analysis of the current district boundaries and plan. Bill seconded the motion. All in favor.
Scott asked staff for their listings of PROs and CONs on all six proposed areas and to
present them at February meeting.
Scott requested TIF consultant be recurring agenda item. Bill requested goals be same.
Fiber optic engineering
David presented map of fiber optic plans (see Attachment C), noted red area is Phase I.
Requesting 180-200K for engineering and looking at 300-400K request of FY16 budget for
summer 2015 install of fiber. Discussion.
Scott made the motion to amend the work plan budget with properly allocated NSURD
section work costs, up to $100K, for fiber optic engineering design and project
management within the district. Bill seconded the motion. All in favor.
Brit noted final approval will be given or denied at January 26 commission meeting.
This topic will also become a recurring NSURB agenda item.
Adjournment
Scott adjourned the meeting at 7:00pm.
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Attachment A
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Attachment B
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Attachment C
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Unapproved minutes from February 5, 2015 board meeting
held at the Stiff Building, upper conference room
TO DO List:
Everyone attend March 5 board meeting
In attendance: Scott Hedglin, Bill Fogarty, Susan Fraser, Brit Fontenot, Carson Taylor,
Allyson Brekke, David Fine, Andrew Cetraro, Carl Solvie, Kevin Cook
Call to Order – Scott called the meeting to order at 4:36pm.
Public Comment – none.
Meeting Minutes
Bill motioned to accept December 4 minutes as presented; Andrew seconded. All in favor.
N7Rehab
Allyson reported slight change to U. Athletics parking layout; might do two grant
applications. Cellplus now asking for monies for work they’ve already done. Scott
encouraged U. Athletics to get apps to board sooner than later.
Carl shared email from D. Cattin asking about façade improvement grant. Allyson will
make contact with Dennis. Discussion went to grant language. Brit noted language will be
considered in TIF consultant work.
Scott shared he is willing to use his professional talents to help property owners, and he
has already asked city legal counsel about this. Legal response: it is not bad form for him
to do so but he would have to recuse himself from any voting attached to work he might
do. Scott wanted his fellow board members feedback on this idea, wanting as public record
that is he pondering such. Discussion.
Phase II lighting project
David reported UHaul easement is ‘in the mail to us’. And he shared the great news that
the IntensiveCar easement is now complete. David also reported the NSURD easement
addition to existing city engineering contract work is on February 9 commission agenda.
The contractor will bring report to April board meeting.
Allyson noted C. Rowland will be chatting with ReCompute neighbors as want to discuss
his shared improvement ideas. David confirmed Morrison-Maierle Kevin is currently
working on design of remaining lighting plan, this following January meeting with MDT.
The contract amendment for this work is also on the February 9 commission agenda.
TIF consultant
David passed around maps and staffs’ listing of PROs and CONS for district expansion
(see Attachments A & B). He then presented the PROs and CONs, noting listed in priority
order, and reminding board that any area must be studied before considered for required
blighting process. He also shared the points brought forward at the January board
meeting by Janet Cornish, including: her work would rework original plan, proposed nine
months to completion of expansion. Staff has decided Southeast section their top priority
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for addition to the district as provides continuity between TIF districts. Staff needs
NSURB”s priority(ies) tonight as commission is waiting for this information before they
approve the study at all.
Continuing thru the proposed sections for study, the second priority for staff is the west
section, David noting large size of section. Discussion continued through the remaining
listing with the northwest section, just west of the forecasted site for the convention
center, at which point David invited Daryl Schliem, Bozeman Chamber, to the table. Daryl
touched on current status of convention center proposals, wanting TIF to help bond the
project so can move forward.
Daryl reporting did a similar work/bond in with TIF in Reno. Adding neighboring property
to the district would be a good sign to owners. Scott noted there is motion from MSU to
use the convention center for future culinary program – Daryl confirmed recently meeting
with MSU Alumni Foundation’s Chris Murray.
David spoke to fairgrounds section. Scott then opened discussion on decision on sections
to study at this time. Brit noted to the inclusion in consultant’s $20k fee of reworking
current district plan, including the grant language.
Discussion continued. Carson taking points to commission, noting NSURB is supportive of
including all six sections in the expansion study.
Goals
Scott opened floor on brainstorming. Update design guidelines brought forward by Brit
and Wendy Thomas as city planning’s top goal for NSURD. Wendy spoke to Mayor Krauss’
recent mayor camp at LA architecture school and all the ideas he brought home with him.
Discussion also included NSURD has moved beyond the Winter Plan. Maybe revision to
the corridor’s design guidelines could include a zoning that is unique to N. 7th.
Discussion included event ideas – getting people to come out and spend some time on N.
7th. Susan shared three ideas, Bill working with Bozeman Camera on his idea. Discussion.
Wendy suggested including in next year’s budget an event planner.
Is developing an annual event a goal? Discussion included no as want to get back to basic
needs/plans for N. 7th. Possibly add a revolving loan fund. Media awareness should be
fairly easy. Maybe outreach coordinator needed.
Fiber project as infrastructure (lights and fiber) category – already moving forward on
these things so no need to worry about them as far as tonight’s 1-year goal discussion,
noted David.
Update the plan is rising to the top priority. Incentivizing development – revolving loan,
etc, is Scott’s top goal.
More discussion will continue at March board meeting.
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Logo
Allyson will run with the idea of updating the logo, bringing it to NSURB later.
Fiber
David rehashed (see Attachment C). Staff wishes to sit still on last month’s $100k budget
amendment, not forward to commission until district plan is rewritten. They fiber project
for the schools will start this summer and N. 7th will then be a Summer 2016 install.
Recruiting board members
Greg Cattin will hopefully attend March meeting and then decide if he’s game to join, per
Carson. Brit introduced Tracy with HRDC Community Café as she, too, is considering
joining the board.
Action item: $75k for redesign of NSURD vision document
Reimagine/rework the design plan for the district – the goal talked about tonight. Allyson
said it would be completing the Clarion work started last year. Redefine from corridor to
district, etc. Carl made the motion as written; Kevin seconded. All in favor.
Kevin asked Carson how to make certain commission will understand a new plan. Carson
said better communication needed for this.
For March agenda, support staff transitioning to Econ Dev. Office.
Adjournment
Scott adjourned the meeting at 7:10pm.
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Attachment A
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Attachment B
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Attachment C
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