I2. Recission of DNRC Stillwater Roundabout MOUCity of Kalispell
Charles A. Harball Office of City Attorney
City Attorney 201 First Avenue East
P.O. Box 1997
Kalispell, MT 59903-1997
TO:
FROM:
MEMORANDUM
Doug Russell, City Manager
Charles Harball, City Attorney
Tel 406.758.7709
Fax 406.758.7758
charball@kalispell.com
SUBJECT: Agreement to Rescind Memorandum of Understanding with the State of
Montana DNRC Regarding Funding of Roundabout at Stillwater Road
and Farmstead Parkway
MEETING DATE: July 6, 2021 — Regular Council Meeting
BACKGROUND: On September 29, 2008, the City of Kalispell entered into a Memorandum of
Understanding with the State of Montana Department of Natural Resources and Conservation [DNRC]
regarding transportation improvements that would be necessitated at the intersection of Stillwater Road
and the future Farmstead Parkway to be constructed in the anticipated development in Section 35
which had just then been annexed into the City by petition of that landowner as well as the
development of property by DNRC in Section 36. The DNRC, as a condition of the final plat approval
for its Timberwolf Phase I -A Subdivision entered into the MOU, anticipating the imminent
development of Section 35, on the other side of Stillwater Road, and considering that development
would also be financially contributing to the intersection improvements. The DNRC therefore agreed
to contribute approximately $500,000 toward the project conceived to be a roundabout intersection and
further waived, within its plat, the right to protest the creation of any special improvement district for
the financing of the project. Previous to this, the DNRC, upon annexing Section 36 into the City, and
recognizing its role as a developer of property within the City, waived its statutory right to agency
exemption from City regulation.
To this date, Section 35 has not yet been developed or generated traffic upon Stillwater Road so as to
warrant any intersection improvements, nor has the development by DNRC to Section 36 created such
traffic at this intersection to warrant the intersection improvements. The MOU has required the DNRC
to include the $500,000 pledged amount in its budget for the past 13 years creating an unanticipated
burden for the agency. Further, the amount that was pledged would likely be insufficient today to
construct DNRC's share of the future improvements.
The owner of the property within Section 35 is just now planning the phased development of that
property which includes the construction of Farmstead Parkway. The design of the required
improvements to the intersection will be determined by means of traffic studies as the development
within both Section 35 and Section 36 builds out and the usage patterns of the intersection are
ascertained.
A Motion to Rescind MOU
With DNRC Regarding the
Financing of the Stillwater
Road Roundabout
Page - 2
With these facts in mind, the DNRC requested that the City of Kalispell agree to rescind the referenced
2008 MOU and to establish the financing of the intersection at a later date when the need becomes
more current, and the parties are in a position to discuss the timing of the necessary financing.
RECOMMENDATION: It is recommended that the Council approve the rescission of the September
29, 2008, Memorandum of Understanding with the State of Montana DNRC regarding the funding for
the construction of a roundabout on Stillwater Road at Farmstead Parkway.
ALTERNATIVES: The Council may discuss other alternatives with city staff regarding this
agreement with the State of Montana.
Office of City Attorney
City of Kalispell
RECISSION OF AGREEMENT
2008 STILLWATER ROAD ROUNDABOUT MEMORANDUM
OF UNDERSTANDING
This Termination of Agreement is dated the of July, 2021 by and between the
State of Montana DNRC, (State), whose address and phone number are 655
Timberwolf Parkway, Kalispell, MT 59901, (406) 751-2242 and the City of Kalispell,
(City), whose address and phone number are 201 1st Ave East, Kalispell, MT 59901
and (406) 758-7703.
1. Background. The State and City, entered into a Memorandum of
Understanding (MOU) dated September 29, 2008. The parties wish to terminate
this MOU due to lack of activity to construct the roundabout for over ten years
and an apparent lack of need at the current time.
2. Termination. The State and City agree to terminate the Contract
effective July , 2021.
3. Effect of Termination. The parties agree that the effect of the termination
shall be to void all duties and liabilities of the parties toward one another that were
created by means of the MOU. This recission shall have no effect on any other rights,
obligations, duties, or responsibilities of the parties toward one another that may
otherwise exist under law.
4. Binding Effect. This termination is binding on the parties and their
successors and assigns. It is the entire agreement of the parties regarding
termination and supersedes all prior understandings, agreements, and
representations regarding termination.
5. Authority. The undersigned represent that they are authorized to bind
their respective parties.
STATE OF MONTANA DNRC CITY OF KALISPELL
655 Timberwolf Parkway P.O. Box 1997
Kalispell, MT 59901 Kalispell, MT 59901
am
Greg Poncin
Area Manager
LE
Doug Russell
City Manager
MEMORANDUM OF UNDERSTANDING
between:
State of Montana, Department of Natural Resources and Conservation
and
The City of Kalispell, Montana
concerning:
Providing Financial Security for the construction
of a Roundabout on Stillwater Road
I. Pose. The City of Kalispell, Public Works Department and the State of
Montana, DNRC, agree that, as a condition of final plat approval for the
Timberwolf Phase I -A Subdivision, they should enter into an agreement to secure
the financial requirements of constructing a roundabout traffic structure on
Stillwater Road which is to be constructed when Farmstead Parkway is fully
constructed. The parties agree that DNRC should be obligated to pay for one half
of the roundabout structure and that it currently has sufficient funds for such
obligation. However, it does not possess sufficient funds to provide for both
construction of its portion of the roundabout and to post a performance bond for the
construction of the roundabout traffic structure. Consequently, the City of Kalispell
and the Montana DNRC seek by this MOU to come to an understanding whereby
financial guarantees may be given to ensure that the roundabout traffic structure is
constructed.
II. Objective. The purpose of this Memorandum of Understanding (MOU) is to
establish an agreement between the Montana DNRC and the City of Kalispell to
financially guarantee the construction of DNRC's portion of the Stillwater Road
roundabout traffic structure, and to address any responsibility that DNRC may have
for the construction of the roundabout traffic structure.
III. Authority. This memorandum is entered into under the following authorities:
The funds referred to in this MOU were appropriated in the 2007 May Special
Session, House Bill 4, 76-3-501 MCA, and 28-08-06 KMC. DNRC, through the
Department of Administration under Section 17-7-211(b), MCA, has obtained
spending authority for these funds through a budget amendment for $499,696.88
within fund 02450.
IV. Procedure.
A. Montana DNRC Responsibilities
1. DNRC agrees that a roundabout traffic structure will need to be constructed if
Farmstead Parkway is fully constructed. DNRC hereby agrees that it is responsible
for the payment of one half of the total costs of construction of the roundabout
traffic structure. DNRC shall therefore convey its project budget appropriations in
the amount of $499,696.88, as set forth in the Final Cost Estimate set forth in
Exhibit "A", to the City of Kalispell upon receiving written notice from the City
that the Farmstead Parkway/Stillwater Road intersection project has been
committed.
2. DNRC further agrees that it hereby waives all right to protest the creation of a
Special Improvement District as authorized by Title 7, Chapter 12, Part 41 MCA, or
any right it may have to an agency exemption from the obligations of a Special
Improvement District to the extent that the District is created to pay the costs of
constructing one half of the above described roundabout traffic structure not
otherwise secured in Paragraph IV(1) above.
B. City of Kalispell Responsibilities
1. Upon receipt of the appropriation funds described above from the Montana
DNRC, the City of Kalispell shall complete Montana DNRC's construction
responsibilities for the roundabout traffic within one year of receipt of the funding
and DNRC shall be excused from any further responsibility for its construction.
V. Administration.
Modifications to this MOU may be proposed by either party and shall become effective
upon the written approval by both parties. Changes to this MOU must be initialed and
dated on each replacement page by an authorized agent of each party.
This MOU will become effective upon signature of all of its participants.
DATED thi day of September, 2008.
CITY OF KALISPELL
By: '
J es H. Patrick
City Manager
MONTANA DEPARTMENT OF NATURAL
RESOURCES AND CONSERVATION
By:_
Mary Sex on
Director
2