02-24-25 Work Session Agenda and MaterialsCITY COUNCIL
KCITY OF WORK SESSION AGENDA
ALISPELL February 24, 2025, at 7:00 p.m.
City Hall Council Chambers, 201 First Avenue East
See the bottom of the agenda to learn how to provide public comment
and watch meetings live or later.
A. CALL TO ORDER
B. ROLL CALL
C. DISCUSSION
1. Alternative Project Delivery Contracts Process Review
D. PUBLIC COMMENT
Persons wishing to address the council are asked to do so at this time. See the bottom of
the agenda to learn the protocol for providing comment.
E. CITY MANAGER, COUNCIL, AND MAYOR REPORTS
F. ADJOURNMENT
UPCOMING SCHEDULE
Next Regular Meeting — March 3, 2025, at 7:00 p.m. — Council Chambers
Next Work Session — March 24, 2025, at 7:00 p.m. — Council Chambers
(No Work Session March 10, 2025)
PARTICIPATION
When addressing council please give your name and address, see the last page of the agenda for
the proper manner of addressing the council, and limit comments to three minutes. Comments
can also be emailed to publiccomment2kalispell.com.
To provide public comment live, remotely, join the video conference through zoom at:
httDs://us02web.zoom.us/webinar/reizister/" 50HRvhdbOWSZIc4NnkZvLA.
Raise your virtual hand to indicate you want to provide comment. Due to occasional technical
difficulties, the most reliable way to participate is through in -person attendance. Electronic
means are not guaranteed.
Watch City Council meetings live with the agenda and documents or later with time stamped
minutes at: https://www.kalispell.com/48O/Meeting-Videos or live or later on YouTube at:
hlt2s://www.youtube.com/2cilyofkalis]2ellmontana9632/streams.
ofkalispellmontana9632/streams.
Page 1 of 2
Kalispell City Council Agenda, February 24, 2025
The City does not discriminate on the basis of disability in its programs, services, activities, and
employment practices. Auxiliary aids are available. For questions about disability
accommodation please contact the City Clerk at 406-758-7756.
ADMINISTRATIVE CODE
Adopted July 1, 1991
Section 2-20 Manner of Addressing Council
a. Each person not a Council member shall address the Council, at the time designated in the agenda
or as directed by the Council, by stepping to the podium or microphone, giving that person's
name and address in an audible tone of voice for the record, and unless further time is granted by
the Council, shall limit the address to the Council to three minutes.
b. All remarks shall be addressed to the Council as a body and not to any member of the Council or
Staff.
C. No person, other than the Council and the person having the floor, shall be permitted to enter into
any discussion either directly or through a member of the Council, without the permission of the
Presiding Officer.
d. No question shall be asked of individuals except through the Presiding Officer.
PRINCIPLES FOR CIVIL DIALOGUE
Adopted by Resolution 5180 on February 5, 2007
■ We provide a safe environment where individual perspectives are respected, heard, and
acknowledged.
■ We are responsible for respectful and courteous dialogue and participation.
■ We respect diverse opinions as a means to find solutions based on common ground.
■ We encourage and value broad community participation.
■ We encourage creative approaches to engage in public participation.
■ We value informed decision -making and take personal responsibility to educate and be educated.
■ We believe that respectful public dialogue fosters healthy community relationships, understanding
and problem solving.
■ We acknowledge, consider and respect the natural tensions created by collaboration, change, and
transition.
■ We follow the rules & guidelines established for each meeting.
Page 2 of 2
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KALISPELL
To: Doug Russell, City Manager
From: Susie Turner, Public Works Director
Re: Alternative Project Delivery Contracts Process Review
Meeting Date: Febuary 24, 2025
Attachment: MCA: Title 18 Public Contracts, Chapter 2. Construction Contract, Part 5.
Alternative Project Delivery Contracts
Background: City Staff are currently planning to utilize the alternative project delivery method
of General Contractor Construction Manager (GCCM) for the upcoming Wastewater Treatment
Plant (WWTP) Biosolids Treatment and Disposal Project. The project includes:
• Demolishing outdated equipment
• Installing new solids dewatering equipment
• Arranging existing solids dewatering equipment and piping for a potential dryer
equipment installation phase (if necessary)
• Updating the polymer unit
• Improving pumping and piping to support the new dewatering operations
The goal is to have the construction substantially completed by the fall of 2026, prior to the
expiration of the City contract with Glacier Gold Composting.
In August 2024, the City signed a professional services agreement with AE2S to design the
project. During the preliminary engineering process, it became clear that the project would
benefit from an alternative project delivery method for several reasons: the aggressive project
completion schedule of early fall 2026, the need to procure construction materials and equipment
early, the desire to manage project risk through early contractor involvement, and maintain
permit compliance during construction.
The typical project delivery method used by the City is the Design Bid Build method. This linear
process involves designing the project, producing construction bidding documents, publicly
advertising and bidding the project, selecting the lowest responsible bidder, and then
constructing the project. However, Montana law allows alternative project delivery methods for
complex projects that meet certain criteria, including the GCCM alternative process.
The GCCM method involves selecting a qualified contractor early in the design process through
a Request for Qualifications and Request for Proposals (RFQ & RFP) in accordance with
Montana Code Annotated (MCA) 18-2-503. The benefits of this method include:
• Accelerating the project schedule
• Facilitating contractor collaboration during the design process
• Ensuring transparency in project pricing
a Allowing for the negotiation of a project construction cost before construction begins
Meeting Discussion:
During this work session, staff and AE2S consultants will present an overview of the GCCM
alternative bid process and the required council approvals per Montana Code Annotated. The
review will include:
Project Delivery Overview
Design Bid Build Comparison
GCCM Process (see Figure 1 below)
o Council adoption of GCCM bid process
o Contractor RFQ/P, Evaluation, Selection, and Council Approval
o Contractor Pre -construction Agreement
o Design Collaboration (City, Consultant, Contractor)
o Guaranteed Maximum Price for Contract — Council Approval
o Construction Phase
Summary and Questions
Upon reviewing the alternative bid process, staff will seek direction on Council's acceptance to
support the next steps to initiate the GCCM process for this project.
Design -Bid -Build (DBB)
Contract 1
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Contract 2
Procurement Construction
BID
General Contractor / Construction Manager (GC -CM)
Contract t
Opportunity
• Accelerate schedule
• Collaboration
Construction input
• Insight into Bost
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roles of individuals.
2
MCA Contents / TITLE 18 / CHAPTER 2 / Part 5 / 18-2-501 Definitions
Montana Code Annotated 2023
TITLE 18. PUBLIC CONTRACTS
CHAPTER 2. CONSTRUCTION CONTRACTS
Part 5. Alternative Project Delivery Contracts
Definitions
18-2-501. (Temporary) Definitions. As used in this part, unless the context clearly requires otherwise, the
following definitions apply:
(1) "Alternative project delivery contract" means a construction management contract, a general contractor
construction management contract, a design -build contract, or a comprehensive agreement.
(2) "Best value" means a procurement in which the decision is based on the primary objective of meeting the
specific goals and best interests of the state agency or governing body, including but not limited to qualifications,
technical, design, pricing, financing viability, and schedule. This selection must be based on criteria that have
been communicated to the proposers in the final request for proposals.
(3) "Comprehensive agreement" means an agreement setting forth the firm fixed price, duration, risk transfer,
and all other commercial and technical terms to be adhered to with respect to an awarded eligible project utilizing
innovative financing delivery with a private party.
(4) "Construction management contract" means a contract in which the contractor acts as the public owner's
construction manager and provides leadership and administration for the project, from planning and design, in
cooperation with the designers and the project owners, to project startup and construction completion.
(5) "Contractor" has the meaning provided in 18-4-123.
(6) "Design -build contract" means a contract in which the designer -builder assumes the responsibility and the
risk for architectural or engineering design and construction delivery under a single contract with the owner.
(7) "Eligible project" means any asset owned by a state agency or governing body, except for toll roads, toll
bridges, and any broadband infrastructure projects.
(8) "General contractor construction management contract" means a contract in which the general contractor,
in addition to providing the preconstruction, budgeting, and scheduling services, procures necessary construction
services, equipment, supplies, and materials through competitive bidding contracts with subcontractors and
suppliers to construct the project.
(9) "Governing body" means:
(a) the legislative authority of:
(i) a municipality, county, or consolidated city -county established pursuant to Title 7, chapter 1, 2, or 3;
(ii) a school district established pursuant to Title 20; or
(iii) an airport authority established pursuant to Title 67, chapter 11;
(b) the board of directors of a county water or sewer district established pursuant to Title 7, chapter 13, parts
22 and 23; or
(c) the trustees of a fire district established pursuant to Title 7, chapter 33, or the county commissioners or
trustees of a fire service area established pursuant to 7-33-2401.
(10) "Innovative financing delivery" means a project delivery method whereby a state agency or a governing
body procures an eligible project that includes private financing and any combination of design, build, operate, or
maintain with a private party. In doing so, the state agency or governing body may pay for the development of the
eligible project with public funds appropriated to that eligible project, including fees to compensate the private
party for the operation and maintenance of the project for the defined term.
(11) "Project" means any construction or any improvement of the land, a building, or another improvement that
is suitable for use as a state or local governmental facility.
(12) "Publish" means publication of notice as provided for in 7-1-2121, 7-1-4127, and 20-9-204 or the
provision of public notice pursuant to 18-2-301.
(13) "Request for proposals" means the final solicitation document requesting detailed proposals from short-
listed, qualified proposers for evaluation and selection.
(14) "State agency" has the meaning provided in 2-2-102, except that the department of transportation,
provided for in 2-15-2501, is not considered a state agency. (Terminates July 1, 2033--sec. 6, Ch. 418, L. 2023.)
18-2-501. (Effective July 2, 2033) Definitions. As used in this part, unless the context clearly requires
otherwise, the following definitions apply:
(1) "Alternative project delivery contract" means a construction management contract, a general contractor
construction management contract, or a design -build contract.
(2) "Construction management contract" means a contract in which the contractor acts as the public owner's
construction manager and provides leadership and administration for the project, from planning and design, in
cooperation with the designers and the project owners, to project startup and construction completion.
(3) "Contractor" has the meaning provided in 18-4-123.
(4) "Design -build contract" means a contract in which the designer -builder assumes the responsibility and the
risk for architectural or engineering design and construction delivery under a single contract with the owner.
(5) "General contractor construction management contract" means a contract in which the general contractor,
in addition to providing the preconstruction, budgeting, and scheduling services, procures necessary construction
services, equipment, supplies, and materials through competitive bidding contracts with subcontractors and
suppliers to construct the project.
(6) "Governing body" means:
(a) the legislative authority of:
(i) a municipality, county, or consolidated city -county established pursuant to Title 7, chapter 1, 2, or 3;
(ii) a school district established pursuant to Title 20; or
(iii) an airport authority established pursuant to Title 67, chapter 11;
(b) the board of directors of a county water or sewer district established pursuant to Title 7, chapter 13, parts
22 and 23; or
(c) the trustees of a fire district established pursuant to Title 7, chapter 33, or the county commissioners or
trustees of a fire service area established pursuant to 7-33-2401.
(7) "Project" means any construction or any improvement of the land, a building, or another improvement that
is suitable for use as a state or local governmental facility.
(8) "Publish" means publication of notice as provided for in 7-1-2121, 7-1-4127, and 20-9-204 or the provision
of public notice pursuant to 18-2-301.
(9) "State agency" has the meaning provided in 2-2-102, except that the department of transportation,
provided for in 2-15-2501, is not considered a state agency.
History: En. Sec. 1, Ch. 574, L. 2005; amd. Sec. 1, Ch. 29, L. 2009; amd. Sec. 2, Ch. 54, L. 2017; amd.
Sec. 1, Ch. 147, L. 2017; amd. Sec. 2, Ch. 111, L. 2021; amd. Sec. 8, Ch. 96, L. 2023; amd. Sec. 1, Ch. 418,
L. 2023.
Created by
MCA Contents / TITLE 18 / CHAPTER 2 / Part 5 / 18-2-502 Alternative pr...
Montana Code Annotated 2023
TITLE 18. PUBLIC CONTRACTS
CHAPTER 2. CONSTRUCTION CONTRACTS
Part 5. Alternative Project Delivery Contracts
Alternative Project Delivery Contract -- Authority --
Criteria
18-2-502. (Temporary) Alternative project delivery contract -- authority -- criteria. (1) Subject to the
provisions of this part, a state agency or a governing body may use an alternative project delivery contract. A
state agency or governing body that uses an alternative project delivery contract shall:
(a) demonstrate that the state agency or the governing body has or will have knowledgeable staff or
consultants who have the capacity to manage an alternative project delivery contract;
(b) clearly describe the manner in which:
(i) the alternative project delivery contract award process will be conducted; and
(ii) subcontractors and suppliers will be selected.
(2) Prior to awarding an alternative project delivery contract, the state agency or the governing body shall
determine that the proposal meets at least two of the sets of criteria described in subsections (2)(a) through (2)
(c) and the provisions of subsection (3). To make the determination, the state agency or the governing body shall
make a detailed written finding that:
(a) the project has significant schedule ramifications and using the alternative project delivery contract is
necessary to meet critical deadlines by shortening the duration of construction. Factors that the state agency or
the governing body may consider in making its findings include, but are not limited to:
(i) operational and financial data that show significant savings or increased opportunities for generating
revenue as a result of early project completion;
(ii) demonstrable public benefits that result from less time for construction; or
(iii) less or a shorter duration of disruption to the public facility.
(b) by using an alternative project delivery contract, the design process will contribute to significant cost
savings. Significant cost savings that may justify an alternative project delivery contract may derive from but are
not limited to value engineering, building systems analysis, life cycle analysis, and construction planning.
(c) the project presents significant technical complexities that necessitate the use of an alternative delivery
project contract.
(3) The state agency or the governing body shall make a detailed written finding that using an alternative
project delivery contract will not:
(a) encourage favoritism or bias in awarding the contract; or
(b) substantially diminish competition for the contract.
(4) In addition to meeting the criteria set forth in subsections (1) through (3), a state agency or governing body
that utilizes a comprehensive agreement must, for each project:
(a) demonstrate a public purpose; and
(b) demonstrate that the innovative financing delivery favors the innovative financing contract method over
other available procurement and alternative project delivery methods. (Terminates July 1, 2033--sec. 6, Ch. 418,
L. 2023.)
18-2-502. (Effective July 2, 2033) Alternative project delivery contract -- authority -- criteria. (1) Subject
to the provisions of this part, a state agency or a governing body may use an alternative project delivery contract.
A state agency or governing body that uses an alternative project delivery contract shall:
(a) demonstrate that the state agency or the governing body has or will have knowledgeable staff or
consultants who have the capacity to manage an alternative project delivery contract;
(b) clearly describe the manner in which:
(i) the alternative project delivery contract award process will be conducted; and
(ii) subcontractors and suppliers will be selected.
(2) Prior to awarding an alternative project delivery contract, the state agency or the governing body shall
determine that the proposal meets at least two of the sets of criteria described in subsections (2)(a) through (2)
(c) and the provisions of subsection (3). To make the determination, the state agency or the governing body shall
make a detailed written finding that:
(a) the project has significant schedule ramifications and using the alternative project delivery contract is
necessary to meet critical deadlines by shortening the duration of construction. Factors that the state agency or
the governing body may consider in making its findings include, but are not limited to:
(i) operational and financial data that show significant savings or increased opportunities for generating
revenue as a result of early project completion;
(ii) demonstrable public benefits that result from less time for construction; or
(iii) less or a shorter duration of disruption to the public facility.
(b) by using an alternative project delivery contract, the design process will contribute to significant cost
savings. Significant cost savings that may justify an alternative project delivery contract may derive from but are
not limited to value engineering, building systems analysis, life cycle analysis, and construction planning.
(c) the project presents significant technical complexities that necessitate the use of an alternative delivery
project contract.
(3) The state agency or the governing body shall make a detailed written finding that using an alternative
project delivery contract will not:
(a) encourage favoritism or bias in awarding the contract; or
(b) substantially diminish competition for the contract.
History: En. Sec. 2, Ch. 574, L. 2005; amd. Sec. 2, Ch. 418, L. 2023.
Created by
MCA Contents / TITLE 18 / CHAPTER 2 / Part 5 / 18-2-503 Alternative pr...
Montana Code Annotated 2023
TITLE 18. PUBLIC CONTRACTS
CHAPTER 2. CONSTRUCTION CONTRACTS
Part 5. Alternative Project Delivery Contracts
Alternative Project Delivery Contract
Criteria
-- Award
18-2-503. (Temporary) Alternative project delivery contract -- award criteria. (1) (a) Whenever a state
agency or a governing body determines, pursuant to 18-2-502, that an alternative project delivery contract is
justifiable, the state agency or the governing body shall publish a request for qualifications.
(b) After evaluating the responses to the request for qualifications, a request for proposals must be sent to
each respondent that meets the qualification criteria specified in the request for qualifications. The request for
proposals must clearly describe the project, the state agency's or the governing body's needs with respect to the
project, the requirements for submitting a proposal, criteria that will be used to evaluate proposals, and any other
factors, including any weighting, that will be used to award the alternative project delivery contract.
(2) The state agency's or the governing body's decision to award an alternative project delivery contract must
be based, at a minimum, on:
(a) the applicant's:
(i) history and experience with projects similar to the project under consideration;
(ii) financial health;
(iii) staff or workforce that is proposed to be committed to the project;
(iv) approach to the project; and
(v) project costs; and
(b) any additional criteria or factors that reflect the project's characteristics, complexities, or goals.
(3) Under any contract awarded pursuant to this part, architectural services must be performed by an
architect, as defined in 37-65-102, and engineering services must be performed by a professional engineer, as
C•r4=9IitKyE:3Qi III
(4) At the conclusion of the selection process, the state agency or the governing body shall state and
document in writing the reasons for selecting the contractor that was awarded the contract. The documentation
must be provided to all applicants and to anyone else, upon request.
(5) A state agency or the governing body may compensate qualified unsuccessful respondents to the request
for proposal with a designated stipend for the ownership of the work product in the unsuccessful proposal and
partial reimbursement for costs incurred in developing and submitting a proposal, provided that all unsuccessful
applicants are treated equitably.
(6) When utilizing an innovative financing delivery option under this part, a state agency or the governing body
shall follow the applicable procurement guidelines, including all applicable rules and law regarding competitive
public procurement required under Montana law.
(7) When utilizing an innovative financing delivery option under this part, a state agency or the governing body
shall, prior to issuing a request for proposals, establish an evaluation and selection process, including identifying
the individuals who will perform the evaluation and selection. The state agency or the governing body shall
endeavor to utilize individuals in the evaluation and selection process who have expertise in the subject matter.
(8) Awarding of a comprehensive agreement must be based on a best value analysis.
(9) At a minimum, a solicited proposal under an innovative financing delivery option must include the following:
(a) an analysis of the costs, benefits, and risk transfers resulting from the innovative financing delivery;
(b) a fixed fee price for the entirety of the comprehensive agreement, inclusive of design, construction,
financing, operation, or maintenance, as applicable, and reflecting all risk transfer set forth in the terms of the
final request for proposals;
(c) a detailed schedule and construction plans;
(d) a detailed financing plan and financial model for the lifetime of the comprehensive agreement, including
any public funding or milestone payments during construction;
(e) a list of known utilities and rights -of -way that will be impacted by the project;
(f) a list of permits and governmental approvals required for the project; and
(g) a plan for utility relocation and right-of-way acquisition to the extent required by the final request for
proposals.
(10) In addition to the provisions set forth in this part, comprehensive agreements may not:
(a) violate public construction contract provisions provided for in Title 18, chapter 2, part 4; or
(b) transfer ownership of a public asset to a private party.
(11) If operation and maintenance of an existing facility subject to an innovative financing delivery contract
under this section is performed by employees covered by a collective bargaining agreement prior to becoming an
eligible project for innovative financing delivery, the employees performing operation and maintenance of the
completed facility must also be covered by a collective bargaining agreement. (Terminates July 1, 2033--sec. 6,
Ch. 418, L. 2023.)
18-2-503. (Effective July 2, 2033) Alternative project delivery contract -- award criteria. (1) (a) Whenever
a state agency or a governing body determines, pursuant to 18-2-502, that an alternative project delivery contract
is justifiable, the state agency or the governing body shall publish a request for qualifications.
(b) After evaluating the responses to the request for qualifications, a request for proposals must be sent to
each respondent that meets the qualification criteria specified in the request for qualifications. The request for
proposals must clearly describe the project, the state agency's or the governing body's needs with respect to the
project, the requirements for submitting a proposal, criteria that will be used to evaluate proposals, and any other
factors, including any weighting, that will be used to award the alternative project delivery contract.
(2) The state agency's or the governing body's decision to award an alternative project delivery contract must
be based, at a minimum, on:
(a) the applicant's:
(i) history and experience with projects similar to the project under consideration;
(ii) financial health;
(iii) staff or workforce that is proposed to be committed to the project;
(iv) approach to the project; and
(v) project costs; and
(b) any additional criteria or factors that reflect the project's characteristics, complexities, or goals.
(3) Under any contract awarded pursuant to this part, architectural services must be performed by an
architect, as defined in 37-65-102, and engineering services must be performed by a professional engineer, as
defined in 37-67-101.
(4) At the conclusion of the selection process, the state agency or the governing body shall state and
document in writing the reasons for selecting the contractor that was awarded the contract. The documentation
must be provided to all applicants and to anyone else, upon request.
(5) A state agency or the governing body may compensate unsuccessful applicants for costs incurred in
developing and submitting a proposal, provided that all unsuccessful applicants are treated equitably.
History: En. Sec. 3, Ch. 574, L. 2005; amd. Sec. 3, Ch. 418, L. 2023.
Created by