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DRAFT Construction Maintenance AgreementKalispell Bypass Maintenance/Construction Agreement 022 NH 15(32) Kalispell Bypass: Foys Lake Section UPN 2038 This Agreement by and between City of Kalispell (City of Kalispell), and the Montana Department of Transportation (MDT, Department, or State), establishes the responsibilities and duties of the parties in respect to project activities on a portion of US 93 Bypass located within the City of Kalispell of Kalispell, Montana. Whereas, the construction will be accomplished through Uniform Project Number 2038, Federal -Aid Project Number 022 NH 15(32), titled Kalispell Bypass: Foys Lake Section (Project) located on US 93 Bypass between 1.7 and 3.6; and, Whereas, State and/or Federal Highway Administration (FHWA) funds will be used to pay for the construction, the City of Kalispell and State must ensure that federal and state requirements are met in fulfilling its obligations to the FHWA and for the project to remain eligible for state and/or federal funding; and, Whereas, the Project lies on the designated National Highway System under the jurisdiction of the Montana Transportation Commission and MDT as per Mont. Code Ann. 60-2-110; and, Whereas, the City has applied for and received funds from the U.S. Department of Transportation, Better Utilizing Investments to Leverage Development (BUILD) Grants program pursuant to The Consolidated Appropriations Act, 2018 (Pub. L. 115-141, March 23, 2018), hereinafter called "BUILD Award", to construct an additional section to the Kalispell Bypass, UPN (FAIN #/Award Date/Award Duration/Award Amount), titled Kalispell Bypass: Foys Lake Section (hereinafter the "Project"); and Whereas, the BUILD Award amounts to $12,750,000 with National Highway Performance Plan (NHPP) funds consisting of $5,369,800 being matched by MDT at $823,324 for a total cost of $18,952,124 for the Project; and Whereas, the Project will fund the construction of an interchange and 4-lane connection for a 1.9-mile section of US Highway 93 Bypass in the CITY; and Whereas, the City wishes to engage MDT to assists the parties in utilizing these funds; and Whereas, the funding and federal requirements are agreed to under the "Sub -Recipient Agreement for the BUILD Award and the "Grant Agreement Under The Consolidated Appropriations Act, 2018 (PUB. L. 115-141, March 23, 2018) For The National Infrastructure Investments Discretionary Grant Program (FY 2018 BUILD TRANSPORTATION DISCRETIONARY GRANTS)" Whereas, the City of Kalispell and MDT recognize the need to construct the Project and to duly execute this Agreement in advance of construction phase programming; and, Whereas, the City of Kalispell desires to have the Project constructed, the City of Kalispell deeming it to be a valuable and beneficial consideration, and it will perform the functions, duties and responsibilities as set forth in Agreement; Now, therefore, the parties agree as follows: ARTICLE I. GENERAL OBLIGATIONS OF MDT 1. MDT will design and award a Contract to construct the Project. 2. MDT will provide the City of Kalispell opportunities to participate in the Project's development, including invitation to the final inspection of the project. 3. MDT will maintain the roadway surface, including pavement repair, pavement preservation, and snowplowing, and will maintain all features, including signals (if present) and non -decorative roadway lighting, within the roadway prism unless otherwise noted herein. 4. If the City of Kalispell does not fulfill any maintenance requirements stated herein, MDT may complete the required maintenance and seek compensation from the City of Kalispell. In doing so, MDT must first provide notice to the City of Kalispell allowing time to complete any such maintenance. If MDT performs such maintenance under this section, it must provide detailed invoices of such costs to the City of Kalispell. S. For any maintenance requirements that are the obligation of the City of Kalispell, as stated herein, MDT may complete any maintenance required due to a public emergency and seek compensation from the City of Kalispell for any costs incurred. In doing so, MDT may first provide notice to the City of Kalispell, when possible, allowing time to complete any such maintenance. If MDT performs maintenance under this section, it must provide detailed invoices of such costs to the City of Kalispell. 6. MDT is the issuing authority for all future encroachment and approach permits. ARTICLE II. GENERAL OBLIGATIONS OF THE CITY OF KALISPELL The City of Kalispell agrees to conform in all regards to Mont. Code Ann. Title 61, Chapter 8, and will not take any action, by enacting an ordinance or otherwise, in contradiction of the traffic laws in Mont. Code Ann. Title 61, Chapter 8. 2. The City of Kalispell will provide appropriate and timely input during the Project's development. 3. The City of Kalispell will continue to enforce the ordinances, laws and/or regulations necessary and essential for the operations of the project. 4. The City of Kalispell, at its sole expense, will maintain the City of Kalispell signs installed as part of this project. For the purposes of this Agreement, "maintenance of MDT-ENG-011 V 1.2 - Rev 07/31/19 Page 2 of 6 signs", is defined as: the inspection, cleaning, repair and replacement of signs damaged through weathering, vandalism, the wind, or other means. S. The City of Kalispell agrees no fixture, building, structure, or other permanent installation other than those approved by MDT shall be constructed or placed within MDT right-of-way without prior written approval from MDT. 6. Unless specified otherwise herein, the City of Kalispell agrees it will fund any additional costs MDT may incur on future MDT projects due to any amenities the City of Kalispell places in the MDT right-of-way. The City of Kalispell agrees that any City of Kalispell -performed maintenance that occurs within MDT right-of-way must be reviewed and approved by the appropriate MDT District Maintenance Office prior to initiation of the maintenance. ARTICLE III. PROJECT -SPECIFIC PROVISIONS 1. Construction Storm Water General Permit a. Upon completion of all physical work associated with construction activity, the parties will inspect the temporary erosion and sediment control measures and devices as part of MDT's final inspection with MDT's Contractor. MDT will provide the City of Kalispell with the Storm Water Pollution Prevention Plan (SWPPP) package for City of Kalispell review. Within ten (10) days of receiving the package, the City of Kalispell will provide MDT with an itemized list of any outstanding records or deficiencies associated with the SWPPP. Upon MDT's and the City of Kalispell's approval of site conditions and Contractor records, MDT will provide the City of Kalispell a Permit Transfer Notification (PTN) form. The City of Kalispell must return the signed PTN form to MDT within ten (10) business days. MDT will forward the completed PTN form and transfer fees to the Montana Department of Environmental Quality (DEQ). b. Once DEQ transfers the Construction Storm Water General Permit Authorization, the City of Kalispell will inspect, maintain, and revise the Best Management Practice devices (BMPs) in accordance with DEQ permit requirements until final stabilization is met and permit coverage is terminated. c. MDT agrees to pay annual fees associated with permit coverage until termination. To assure payment, the City of Kalispell must forward invoices to the MDT's Environmental Services Bureau for payment. MDT-ENG-011 V 1.2 - Rev 07/31/19 Page 3 of 6 2. Small Municipal Separate Storm Sewer System (MS4) Permit a. MDT concludes, and the City of Kalispell agrees, the project work is designed in compliance with applicable Small MS4 Permit requirements. b. The City of Kalispell agrees to operate, monitor and maintain storm water management features in compliance with applicable MS4 requirements. ARTICLE IV. PROJECT -SPECIFIC FEATURES 1. Shared -Use Path a. Upon completion of the Project by the State and its Contractor, the City of Kalispell agrees that it is responsible, at no cost to MDT, to service, maintain, repair, and pay the cost of operating the path within the project limits, such that it does not negatively impact the operation of the path or the safety of the traveling public. If all or part of the shared use path becomes unsafe for use, the City of Kalispell agrees to restrict access to the affected area until the condition has been remedied. b. For the purposes of this Agreement, "maintenance of a shared -use path" is defined as: grinding or milling down displacements; surface patching; crack sealing; sweeping; cleaning; washing; replacing portions of damaged path; removal of snow and ice; repair of chipped, fractured, or broken surface from any cause, including but not limited to frost heaving, landscaping, tree roots, or encroachments; removal of debris and other obstructions or impediments to the safe travel of pedestrians or other path users; maintenance of all associated drainage features; maintenance of path -related signs; and any and all other normally accepted maintenance practices. c. For the purposes of this Agreement, "maintenance of shared -use path signs," is defined as: the inspection, cleaning, repair and replacement of signs damaged through weathering, vandalism, wind, and other means. 2. Lighting a. Upon completion of the Project by the State and its Contractor, the City of Kalispell agrees that it is responsible, at no cost to MDT, to service, maintain, MDT-ENG-011 V 1.2 - Rev 07/31/19 Page 4 of 6 repair and pay the costs of operating (including utility costs) the decorative and/or pedestrian lighting installed as part of this project. b. For the purposes of this Agreement, "maintenance of street lighting", is defined as: the inspection of the lighting system for operation, cleaning lamps, lenses and reflectors, stocking of replacement parts, bulb replacement, and repairs to and replacement of damaged fixtures. c. Any major repair costs for lighting damage not recoverable from third parties shall be the responsibility of the City of Kalispell. d. If the cost of energy is raised by the utility company, the City of Kalispell, town or special improvement district shall pay their proportionate share of the rate increase. 3. Sidewalks a. Upon completion of the Project by the State and its Contractor, the City of Kalispell agrees that it is responsible, at no cost to MDT, to service, maintain, repair, and pay the cost of operating the sidewalk within the project limits, such that it does not negatively impact the operation of the sidewalk or the safety of the traveling public. If all or part of the Project becomes unsafe for use, the City of Kalispell agrees to restrict access to the affected area until the condition has been remedied. b. For the purposes of this Agreement, "maintenance of a sidewalk" is defined as: grinding or milling down displacements; surface patching; crack sealing; sweeping; cleaning; washing; replacing portions of damaged sidewalk; removal of snow and ice; repair of chipped, fractured, or broken surface from any cause, including but not limited to frost heaving, landscaping, tree roots, or encroachments; removal of debris and other obstructions or impediments to safe pedestrian travel; and any and all other normally accepted maintenance practices. 4. Landscaping/Irrigation Equipment a. Upon completion of the Project by the State and its Contractor, the City of Kalispell agrees that it is responsible, at no cost to MDT, to service, maintain and repair the landscaping and irrigation equipment installed as part of this project. b. For the purposes of this Agreement, "maintenance of landscaping and irrigation system," is defined as: mowing, watering, debris removal, weed control, fertilizing, tree/shrub trimming including removal, replacement and MDT-ENG-011 V 1.2 - Rev 07/31/19 Page 5 of 6 maintenance of sight triangles, the repair and replacement of fences, and maintenance of all features in compliance with ADA/PROWAG. The irrigation system shall be fully operational, free of leaks, with heads selected and adjusted to reduce water waste. c. If the City of Kalispell is not able to complete the maintenance on the landscaping and irrigation system as per this Agreement, the improvements may become the property of MDT, without reimbursement. If landscaping or irrigation become MDT property, MDT will maintain the property as it sees fit and may remove the landscaping and irrigation system without City of Kalispell approval. MDT may seek compensation for the maintenance or removal of the landscaping and irrigation system from the City of Kalispell. ARTICLE V. GENERAL TERMS AND CONDITIONS Term - The term of this Agreement shall be ten (10) years. After the initial ten (10) year term, this Agreement will renew automatically, for successive one (1) year terms, unless superseded by a new Agreement between the parties. 2. Termination - This Agreement may be terminated by MDT if the City of Kalispell violates or breaches any term, condition, or article of this Agreement and the City of Kalispell has failed to correct (or reasonably initiate correction) within 60 days of receiving notice in writing addressed to the City of Kalispell's representative, of such violation or breach of any term, condition, or article of this Agreement. If this Agreement is terminated, the improvements become the property of MDT, without reimbursement. MDT will maintain the property as it sees fit and may remove the improvements without City of Kalispell or landowner approval. MDT may seek compensation for maintenance or removal of the improvements from the City of Kalispell. 3. Other Agreements -Other Agreements pertaining to the project area remain in full force and effect. In the case of a conflict between this Agreement and a previously executed Agreement, the terms of this Agreement apply. 4. Hold Harmless & Indemnification a. The City of Kalispell agrees to protect, defend, indemnify, and hold MDT, its elected and appointed officials, agents, and employees, while acting within their duties as such, harmless from and against all claims, liabilities, demands, causes of action, and judgments ( including the cost of defense and reasonable attorney fees) arising in favor of or asserted by the City of Kalispell's employees or third parties on account of personal or bodily injury, death or damage to property, arising out of the acts or omissions of the City of MDT-ENG-011 V 1.2 - Rev 07/31/19 Page 6 of 6 Kalispell, its agents, or sub -contractors, under this Agreement, except the negligence of MDT. b. The State and Department of Transportation agrees to protect, defend, indemnify, and hold the City of Kalispell, its elected and appointed officials, agents, and employees, while acting within their duties as such, harmless from and against all claims, liabilities, demands, causes of action, and judgments ( including the cost of defense and reasonable attorney fees) arising in favor of or asserted by the MDT's employees or third parties on account of personal or bodily injury, death or damage to property, arising out of the acts or omissions of MDT, its agents, or sub -contractors, under this Agreement, except the negligence of the City of Kalispell. S. Insurance a. General Requirements: Each party shall maintain for the duration of this Agreement, at its own cost and expense, insurance against claims for injuries to persons or damages to property that may arise from or in connection with the performance of the duties and obligations in this Agreement by each party, its agents, employees, representatives, assigns, or sub -contractors. This insurance shall cover such claims as may be caused by any negligent act or omission. b. General Liability Insurance: Each party shall purchase and maintain occurrence coverage with combined single limits for bodily injury, personal injury, and property damage of $1 million per occurrence and $2 million aggregate per year to cover such claims as may be caused by or arising out of any negligent acts or omissions in work or services performed under this Agreement, or as established by statutory tort limits as provided by a public entity self-insurance program either individually or on a pool basis as provided by Mont. Code Ann. Title 2, Chapter 9. c. General Provisions: All insurance coverage must be with a carrier licensed to do business in the State of Montana or by a public entity self -insured program either individually or on a pool basis. Each party must notify the other immediately of any material change in insurance coverage, such as changes in limits, coverage, change in status of policy, etc. Each party reserves the right to request complete copies of the other party's insurance policy or self -insured memorandum of coverage at any time. d. Workers' Compensation Insurance: The City of Kalispell must maintain workers' compensation insurance and require its contractors and its contractor's sub -contractors to carry their own workers compensation coverage while performing work within MDT right-of-way in accordance with Mont. Code Ann. §§39-71-401 and 39-71-405. Neither the contractor nor its employees are employees of MDT. This insurance/exemption must be valid for the entire Agreement period. MDT-ENG-011 V 1.2 - Rev 07/31/19 Page 2 of 6 6. Public Safety It is agreed, if any repairs to the elements of the Project must be performed to address or prevent a public hazard, the City of Kalispell will immediately protect the area from public access, contact the appropriate MDT District Maintenance Office, and make reasonable and timely effort to correct or repair the hazard. 7. Invoicing and Indirect Cost (IDC). a. If MDT incurs any costs resulting from this Agreement, MDT shall be entitled to be compensated for such costs by the City of Kalispell and the City of Kalispell shall pay the same within thirty (30) days of its receipt of such invoices. Mont. Code Ann. §17-1-106, requires any state agency, including MDT, which receives non -general funds to identify and recover its indirect costs (IDC). These costs are in addition to direct project costs. MDT's IDC rate is determined annually as a percentage of the project's direct costs to cover the project's share of MDT's IDC as defined by 2 CFR Part 200, Appendix VI1. MDT's current IDC rate is 10.41% for fiscal year 2020 (July 1, 2019 to June 30, 2020). If the work occurs or extends into fiscal year 2021 or beyond the IDC rate will be charged at the rate agreed to by MDT and the Federal Highway Administration (FHWA). Invoice will be sent to: Attu: Town Clerk V're;,,isurer MMRHSS ii. Payments shall be made to: Montana Department of Transportation Attention: Collections 2701 Prospect Avenue PO Box 201001 Helena, MT 59620-1001 8. Choice of Law and Venue - This Agreement shall be governed by the laws of Montana. The parties agree that any litigation concerning this Agreement must be brought in the First Judicial District Court, in and for the County of Lewis and Clark, State of Montana, and each party shall pay its own costs and attorney fees except as otherwise noted in this agreement. In case of conflict between the terms and conditions of this Agreement and the laws of the State of Montana, the laws of the State of Montana shall control. 9. Binding Effect -- The benefits and obligations set forth in this Agreement shall be binding upon, and inure to the benefit of, their respective successors, administrators and assigns of the Parties. MDT-ENG-011 V 1.2 - Rev 07/31/19 Page 3 of 6 10. Relationship of Parties -- Nothing contained in this Agreement shall be deemed or construed (either by the parties hereto or by any third party) to create the relationship of principal and agent or create any partnership joint venture or other association between the Parties. 11. Non -Discrimination - The City of Kalispell will require that during the performance of any work arising out of this Agreement the City of Kalispell, for itself, assignees, and successors shall comply with all applicable non-discrimination regulation set forth in Attachment "A" attached hereto and made part of this Agreement. 12. ADA - MDT requires that any construction resulting from this Agreement must include appropriate pedestrian facilities that meet or exceed current MDT standards for accessibility as set forth by the United States Department of Justice 2010 ADA Standards for Accessibility Design, United States Access Board Proposed Guidelines for Pedestrian Facilities in the Public Right -of -Way (2011 PROWAG), and MDT's detailed drawings, 608 series. 13. Audit - The City of Kalispell grants to the Legislative Auditor and the Legislative Fiscal Analysts the right, without prior notice and during normal business hours, to audit, at their own costs and expense, all records, reports, and other documents, the City of Kalispell maintains in connection with this Agreement. 14. Utilities -- This Agreement is subject to the right of any private or public utility entity now lawfully occupying the right-of-way to continue to operate and maintain utility facilities thereupon. Copies of existing utility permits may be obtained from the MDT District Utility Agent. 15. Amendment and Modification -- This Agreement may be modified or amended only by written Addendum signed by the parties. In addition to the terms and conditions contained herein, the provisions of any Addendum may be incorporated and made a part hereof by this reference in the terms of the amendment so provided. In the event of any conflict between the terms and conditions hereof and the provisions of any Addendum, the provision of the Addendum shall control, unless the provisions thereof are prohibited by law. 16. Representatives a. City of Kalispell's Representative: The City of Kalispell's Representative for this Agreement shall be the City of Kalispell Manager or designee or such other individual as City of Kalispell shall designate in writing. Whenever approval or authorization from or communication or submission to City of Kalispell is required by this Agreement, such communication or submission shall be directed to the City of Kalispell's Representative and approvals or authorizations shall be issued only by such Representative; provided, however, that in exigent circumstances when City of Kalispell's Representative is not available, MDT may direct its communication or submission to other designated City of Kalispell personnel or agents. b. MDT's Representative: The MDT Representative for this Agreement shall be the District Administrator or Maintenance Chief or such other individual as MDT-ENG-011 V 1.2 - Rev 07/31/19 Page 4 of 6 MDT shall designate in writing. Whenever direction to or communication with MDT is required by this Agreement, such direction or communication shall be directed to MDT's Representative; provided, however, that in exigent circumstances when MDT's Representative is not available, City of Kalispell may direct its direction or communication or submission to other designated MDT personnel or agents. 17. Counterpart Execution - This Agreement may be executed in two or more counterparts, each of which shall be deemed an original but all of which together shall constitute one and the same Agreement. The counterparts of this Agreement may be executed and delivered by facsimile or other electronic signature by any of the parties to any other party and the receiving party may rely on the receipt of such document so executed and delivered by facsimile or other electronic means as if the original had been received. MDT-ENG-011 V 1.2 - Rev 07/31/19 Page 5 of 6 IN WITNESS WHEREOF, MDT's authorized representative has hereunto signed on behalf of the State of Montana, and the City of Kalispell's authorized representative on behalf of the City of Kalispell, has signed and affixed hereto the seal of the City of Kalispell. STATE OF MONTANA, DEPARTMENT OF TRANSPORTATION Montana Department of Transportation Date Approved for Legal Content Approved for Civil Rights CITY OF KALISPELL OF KALISPELL Name Title Attest: Name Title MDT-ENG-011 V 1.2 - Rev 07/31/19 Page 6 of 6 ATTACHMENT A: MDT NONDISCRIMINATION AND DISABILITY ACCOMMODATION NOTICE