HomeMy WebLinkAboutREGULAR COUNCIL - 16 Nov 2015 - Agenda - Pdf
AGENDA
City Council Regular Meeting
7:00 PM - Monday, November 16, 2015
Council Chambers, 7th Floor, City Hall – 1055 S. Grady Way
1. CALL TO ORDER AND PLEDGE OF ALLEGIANCE
2. ROLL CALL
3. SPECIAL PRESENTATION
a) Renton Reporter's 2015 FilmFrenzy People's Choice Award
4. PUBLIC HEARINGS
a) Street Vacation Request: Portion of a Right-of-Way in the Vicinity of 300 Rainier Ave. N.
(Petitioner: City of Renton; VAC-15-003)
b) 2016 School District Impact Fees
5. ADMINISTRATIVE REPORT
6. AUDIENCE COMMENT
Speakers must sign-up prior to the Council meeting.
Each speaker is allowed five minutes.
The first comment period is limited to 30 minutes.
The second comment period, later on the agenda, is unlimited in duration.
When recognized, please state your name & city of residence for the record.
NOTICE to all participants: pursuant to state law, RCW 42.17A.555, campaigning for any
ballot measure or candidate in City Hall and/or during any portion of the council meeting,
including the audience comment portion of the meeting, is PROHIBITED.
7. CONSENT AGENDA
The following items are distributed to Councilmembers in advance for study and review, and
the recommended actions will be accepted in a single motion. Any item may be removed for
further discussion if requested by a Councilmember.
a) Approval of the November 9, 2015 Council meeting minutes.
Council Concur
b) Mayor Law reappoints Robert Dempster (Primary Position - Aircraft Owners & Pilots
Association) to the Airport Advisory Committee for a term expiring on May 7, 2018.
Council Concur
c) Mayor Law appoints Kelly Beymer as the new Community Services Administrator at step A
of salary grade m49, effective 1/1/2016.
Council Concur
d) City Attorney requests authorization to hire a Senior Assistant City Attorney at step D of
salary grade m42.
Council Concur
e) Community & Economic Development Department recommends approval of a Facade
Improvement Agreement to loan $200,000, from Community Development Block Grant
(CDBG) funds, to Cortona LLC, for the purposes of assisting with exterior improvements to
their property located at 724 S. 3rd St.
Council Concur
f) Community & Economic Development Department recommends approval to extend the
sunset clause to 12/31/2018 for accepting applications for the Multi-Family Housing
Property Tax Exemption Program.
Refer to Planning & Development Committee
g) Community & Economic Development Department recommends approval to extend the
sunset clause to 12/31/2018 for accepting applications for the Owner-Occupied and
Rental Housing Incentive Programs.
Refer to Planning & Development Committee
h) Community & Economic Development Department requests approval of an Exemption
Agreement for The Lofts at Second and Main project to receive a partial property tax
exemption upon completion.
Refer to Planning & Development Committee
i) Human Resources / Risk Management Department recommends approval of the 2016
Group Health Cooperative medical coverage contracts for LEOFF I retirees and all active
employees, in the total amount of $219,721.
Council Concur
j) Human Resources / Risk Management Department recommends approval of a contract in
the amount of $323,202 with Healthcare Management Administrators (HMA)and Envision
Rx for 2016 medical, dental, and prescription claims processing.
Council Concur
k) Transportation Systems Division recommends approval of an amendment to the Seaplane
Base Dredging & Shoreline Mitigation Project (CAG-12-008) in the amount of $55,330 to
extend the time of the project and raise the costs and scope of work; the funding will be
provided via a transfer of $40,000 from the Airport ending fund balance.
Refer to Transportation (Aviation) Committee
8. UNFINISHED BUSINESS
Topics listed below were discussed in Council committees during the past week. Those topics
marked with an asterisk (*) may include legislation. Committee reports on any topics may be
held by the Chair if further review is necessary.
a) Finance Committee: 2016 School District Impact Fees*, Vouchers, Utility Bill Adjustment
Requests
9. RESOLUTIONS AND ORDINANCES
Ordinances for first reading:
a) 2016 School District Impact Fees (See item 8.a.)
Ordinance for second and final reading:
b) CA Zoning Ordinance (First reading 11/9/2015)
10. NEW BUSINESS
(Includes Council Committee agenda topics; visit rentonwa.gov/cityclerk for more
information.)
11. AUDIENCE COMMENTS
12. ADJOURNMENT
COMMITTEE OF THE WHOLE AGENDA
(Preceding Council Meeting)
7TH FLOOR CONFERENCING CENTER
November 16, 2015
Monday, 5:30 p.m.
Renton River Days | Neighborhood Program Update | Regional Issues
Hearing assistance devices for use in the Council Chambers are available upon request to the City Clerk
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To view Council Meetings online, please visit rentonwa.gov/councilmeetings
Vacation Petition
VAC-15-003
Monday, November 16, 2015
Public Hearing AGENDA ITEM #4. a)
LOCATION AGENDA ITEM #4. a)
LOCATION AGENDA ITEM #4. a)
LOCATION AGENDA ITEM #4. a)
BACKGROUND
•Petition received September 18, 2015
•Pursuant to State and City Code, more
than 2/3 of the abutting owners must
sign the petition
•100% of abutting owners have signed
AGENDA ITEM #4. a)
BACKGROUND
•Right-of-way originally dedicated in
plats and also Highway ROW.
•Recorded Survey from 2000 shows
the Renton Airport Boundary to
accurately show the ROW along
Rainier Avenue N. AGENDA ITEM #4. a)
PUBLIC BENEFIT
•The ROW is adjacent to the Renton
Airport and more specifically located
on the proposed Aerospace Training
Facility.
•The vacation will realign the irregular
shaped ROW and has been reviewed
and conforms to the scheduled street
improvements for Rainier Avenue N. AGENDA ITEM #4. a)
RESEARCH/SURVEY
•Vacation request was circulated to
various City departments and outside
agencies for review.
•No objections to the vacation were
raised, however PSE provided
recommended conditions of approval. AGENDA ITEM #4. a)
RESEARCH/SURVEY
Internal Review Comments
•No comments from Internal Reviews. AGENDA ITEM #4. a)
RESEARCH/SURVEY
Outside Agency Review Comments
•PSE has a transformer located in the ROW and is
planned to be removed during the redevelopment.
Until the City has entered a customer agreement
with PSE, an electrical easement will be required.
•To date, Qwest and Electric Lightwave have not
responded to the City’s request for comments. AGENDA ITEM #4. a)
The Community and Economic Development
Department recommends that Council approve the
request to vacate subject to the following conditions:
The petitioner shall provide satisfactory proof that
PSE has an electric easement over the requested
area OR PSE and the City have entered into a
customer agreement.
STAFF RECOMENDATION AGENDA ITEM #4. a)
NEXT STEPS
If Council approves this vacation petition:
•Petitioner will use previous appraisal
on the Renton Airport property;
•Staff reviews the appraisal and
returns to Council so that
compensation can be set, if
necessary. AGENDA ITEM #4. a)
School District Impact Fees
Public Hearing
Date
Names/Titles
City Council
November 16, 2015
Paul Hintz, Associate Planner AGENDA ITEM #4. b)
•Requested fees are based on an assessment in
the School District’s Capital Facilities Plan
•Helps to offset the impact of growth on school
facilities.
•Fees are only assessed on new development.
•Money can only be used for capital facility
projects, not for operations or maintenance.
Impact Fees AGENDA ITEM #4. b)
•The Issaquah School
District requests an
impact fee of $4,635
per new single family
house
•A $75 increase from
last year
Issaquah School District AGENDA ITEM #4. b)
•The Issaquah School
District requests an
impact fee of $1,534
per new multi-family
unit
•A $76 increase from
last year
Issaquah School District AGENDA ITEM #4. b)
•The Kent School District
requests an impact fee
of $4,990 per new
single-family house
•A $496 decrease
from last year
Kent School District AGENDA ITEM #4. b)
•The Kent School District
requests an impact fee
of $2,163 per new
multi-family unit
•A $1,215 decrease
from last year
Kent School District AGENDA ITEM #4. b)
•The Renton School
District requests an
impact fee of $5,643
per new single-family
house
•A $102 increase from
last year
Renton School District AGENDA ITEM #4. b)
•The Renton School
District requests an
impact fee of $1,385
per new multi-family
unit
•A $25 increase from
last year
Renton School District AGENDA ITEM #4. b)
Next Steps
•This item has been referred to the Finance
Committee for review
•City Council action to be taken tonight:
•Hear Public Testimony
•Approve Finance Committee Report
•Present ordinance for first reading
AGENDA ITEM #4. b)
November 9, 2015 REGULAR COUNCIL MEETING MINUTES 1
MINUTES
City Council Regular Meeting
7:00 PM - Monday, November 9, 2015
Council Chambers, 7th Floor, City Hall – 1055 S. Grady Way
CALL TO ORDER AND PLEDGE OF ALLEGIANCE
Mayor Pro Tem Prince called the meeting of the Renton City Council to order at 7:00 PM and
led the Pledge of Allegiance.
ROLL CALL
Councilmembers Present:
Ed Prince, Mayor Pro Tem
Randy Corman, Council President Pro Tem
Armondo Pavone
Ruth Pérez
Marcie Palmer
Greg Taylor
Councilmembers Absent:
Don Persson
MOVED BY CORMAN, SECONDED BY PAVONE, COUNCIL EXCUSE ABSENT
COUNCILMEMBER DON PERSSON. CARRIED.
ADMINISTRATIVE STAFF PRESENT
Jay Covington, Chief Administrative Officer
Alex Tuttle, Assistant City Attorney
Megan Gregor, Deputy City Clerk
Gregg Zimmerman, Public Works Administrator
Jennifer Henning, Planning Director
Commander Mike Luther, Police Department
PROCLAMATION
Leadership Eastside Day - November 9, 2015. A proclamation by Mayor Law was read
declaring November 9, 2015 to be Leadership Eastside Day in the City of Renton, and all
citizens were encouraged to join in recognizing the many contributions that Leadership
Eastside has made to the community.
MOVED BY CORMAN, SECONDED BY PAVONE, COUNCIL ADOPT THE
PROCLAMATION AS READ. CARRIED.
AGENDA ITEM #7. a)
November 9, 2015 REGULAR COUNCIL MEETING MINUTES 2
ADMINISTRATIVE REPORT
Chief Administrative Officer Jay Covington reviewed a written administrative report
summarizing the City’s recent progress towards goals and work programs adopted as part of
its business plan for 2015 and beyond. Items noted were:
Public Works Maintenance Services workers Kip Braaten and Rob Blackburn participated
in the state APWA ROADEO competition on Thursday, October 29th in Yakima. Out of a
total of 52 competitors Kip Braaten received 11th place in Snow Plow/Sander Truck
Course and 37th place in Loader. Rob Blackburn received 25th place in Snow Plow/Sander
Truck Course, 3rd place in Backhoe Course, 20th place in Loader and 7th place overall.
Preventative street maintenance will continue to impact traffic and result in occasional
street closures.
AUDIENCE COMMENT
Amanda Scofield, Renton, addressed concerns about the cleanliness and safety of Cascade
Park. She believes that the condition of the park has deteriorated and wanted to know what
she could do to make the park a safer place for children and families.
MOVED BY CORMAN, SECONDED BY PAVONE, COUNCIL REFER PUBLIC SAFETY
ISSUES REGARDING CASCADE PARK TO THE ADMINISTRATION. CARRIED.
CONSENT AGENDA
Items listed on the consent agenda were adopted with one motion, following the listing.
a) Approval of the November 2, 2015 Council meeting minutes. Council Concur.
b) Administrative Services Department submitted a request for utility billing adjustments at
Westgate Condominiums and Stir Restaurant, and recommended approving adjustments in
the amounts of $13,250.38 and $14,292.24. Refer to Finance Committee.
c) City Clerk submitted a request for the partial release of Easement by Chris Tonkin of Bellevue
TT LLC, to construct a new storm water drainage line located in the vicinity of NE 4th St. &
Union Ave. NE. Refer to Utilities Committee.
d) Fire & Emergency Services Department recommended approval of an agreement with the
Washington State Military Department to accept Department of Homeland Security
Emergency Management Performance Grant (EMPG) funds in the amount of $73,093 to
support the emergency management program. Council Concur.
e) Utility Systems Division submitted CAG-15-099, SE 165th Sanitary Sewer Extension project,
contractor Scotty’s General Construction; and requested acceptance of the project, approval
of the final pay estimate in the amount of $6,640.76, and release of the retainage bond after
60 days, if all required releases are obtained. Council Concur.
MOVED BY CORMAN, SECONDED BY PAVONE, COUNCIL CONCUR TO APPROVE
THE CONSENT AGENDA AS PRESENTED. CARRIED.
AGENDA ITEM #7. a)
November 9, 2015 REGULAR COUNCIL MEETING MINUTES 3
UNFINISHED BUSINESS
a) Committee on Committees Chair Palmer presented a report recommending the following council
committee assignments for 2016:
FINANCE
(2nd & 4th Mondays, 5:00 pm)
Don Persson, Chair
Armondo Pavone, Vice Chair
Ruth Pérez, Member
UTILITIES
(1st & 3rd Mondays, 4:30 pm)
Council Seat 4, Chair
Ruth Pérez, Vice Chair
Council Seat 3, Member
PUBLIC SAFETY
(2nd & 4th Mondays, 4:00 pm)
Armondo Pavone, Chair
Don Persson, Vice Chair
Ed Prince, Member
PLANNING & DEVELOPMENT
(2nd & 4th Thursdays, 3:00 pm)
Ed Prince, Chair
Council Seat 4, Vice Chair
Armondo Pavone, Member
COMMUNITY SERVICES
(2nd & 4th Thursdays, 4:00 pm)
Council Seat 3, Chair
Ed Prince, Vice Chair
Council Seat 4, Member
TRANSPORTATION
(1st & 3rd Mondays, 5:00 pm)
Ruth Pérez, Chair
Council Seat 3, Vice Chair
Don Persson, Member
MOVED BY CORMAN, SECONDED BY PAVONE, COUNCIL CONCUR IN THE
COMMITTEE REPORT. CARRIED.
b) Planning & Development Committee Chair Corman presented a report recommending
concurrence with the Planning Commission and staff recommendation to amend the maximum
density allowed in the Commercial Arterial (CA) zone by Community Planning Areas as follows:
City Center and Highlands 60 dwelling units per acre; East Plateau and Kennydale 30 dwelling
units per acre; and no attached housing in Cedar River, Benson, Talbot and Valley. The
Committee further recommended repealing the moratorium on new residential development in
the CA zone. The Planning and Development Committee also recommended the ordinance
regarding this matter be presented for first reading.
MOVED BY CORMAN, SECONDED BY PAVONE, COUNCIL CONCUR IN THE
COMMITTEE REPORT. CARRIED.
RESOLUTIONS AND ORDINANCES
Ordinance for first reading:
a) Ordinance No. 5778: An ordinance was read amending Sections 4-2-080 and 4-2-120 of
Chapter 2, Zoning Districts – Uses and Standards, of Title IV (Development Regulations) of the
Renton Municipal Code, amending the residential zoning standards in the CA (Commercial
Arterial) Zone.
MOVED BY CORMAN, SECONDED BY PAVONE, COUNCIL REFER THE ORDINANCE
FOR SECOND AND FINAL READING ON 11/16/2015. CARRIED.
AGENDA ITEM #7. a)
November 9, 2015 REGULAR COUNCIL MEETING MINUTES 4
Ordinances for second and final reading:
b) Ordinance No. 5774: An ordinance was read establishing the Property Tax Levy for the year
2016 for general City operational purposes in the amount of $37,250,000.
MOVED BY CORMAN, SECONDED BY PAVONE, COUNCIL ADOPT THE ORDINANCE
AS READ. ROLL CALL: ALL AYES. CARRIED.
c) Ordinance No. 5775: An ordinance was read authorizing the Property Tax Levy for the year
2016.
MOVED BY CORMAN, SECONDED BY PAVONE, COUNCIL ADOPT THE ORDINANCE
AS READ. ROLL CALL: ALL AYES. Carried
d) Ordinance No. 5776: An ordinance was read relating to the regular Property Tax Levies for
collection in 2016, implementing RCW 84.55.0101 and finding substantial need to increase
the regular property tax limit factor above the rate of inflation to one percent (1%), for a total
limit factor of one hundred and one percent (101%).
MOVED BY CORMAN, SECONDED BY PAVONE, COUNCIL ADOPT THE ORDINANCE
AS READ. ROLL CALL: ALL AYES. Carried
NEW BUSINESS
See attached Council committee meeting calendar.
ADJOURNMENT
MOVED BY CORMAN, SECONDED BY PAVONE, COUNCIL ADJOURN. CARRIED. TIME
7:18 P.M.
Jason A. Seth, CMC, City Clerk
Megan Gregor, Recorder
Monday, November 9, 2015
AGENDA ITEM #7. a)
Council Committee Meeting Calendar
November 9, 2015
November 10, 2015
Tuesday
11:00 AM Transportation Committee, Chair Palmer, Council Conference Room
1. Bridge Replacement Contract
2. Logan Ave. Update
3. Emerging Issues in Transportation
November 16, 2015
Monday
3:30 PM Public Safety Committee, Chair Pavone, Council Conference Room
1. Emerging Issues in Public Safety
4:30 PM Finance Committee, Vice Chair Taylor, Council Conference Room
1. School Impact Fees
2. Vouchers
3. Utility Bill Adjustment Requests
5:30 PM Committee of the Whole, Chair Prince, Conferencing Center
1. Renton River Days Wrap-up
2. Neighborhood Program Update
3. Regional Issues
AGENDA ITEM #7. a)
REGULAR COUNCIL - 16 Nov 2015
SUBJECT/TITLE: Reappointment of Airport Advisory Committee member
RECOMMENDED ACTION: Council Concur
DEPARTMENT: Executive
STAFF CONTACT: April Alexander, Executive Assistant
EXT.: 6520
FISCAL IMPACT:
Expenditure Required: $ N/A Transfer Amendment: $ N/A
Amount Budgeted: $ N/A Revenue Generated: $ N/A
Total Project Budget: $ N/A City Share Total Project: $ N/A
SUMMARY OF ACTION:
Mayor Law appoints Robert Dempster (primary position-Aircraft Owners & Pilots Association) to the Airport
Advisory Committee for a term expiring May 7, 2018.
EXHIBITS:
None.
STAFF RECOMMENDATION:
Concur with Mayor Law's appointment of Mr. Dempster to the Airport Advisory Committee for a term expiring
on May 7, 2018.
AGENDA ITEM #7. b)
REGULAR COUNCIL - 16 Nov 2015
SUBJECT/TITLE: Appointment of Community Services Administrator
RECOMMENDED ACTION: Council Concur
DEPARTMENT: Executive
STAFF CONTACT: Jay Covington, Chief Administrative Officer
EXT.: 6500
FISCAL IMPACT:
Expenditure Required: $ 128,800 Transfer Amendment: $ N/A
Amount Budgeted: $ 128,800 Revenue Generated: $ N/A
Total Project Budget: $ N/A City Share Total Project: $ N/A
SUMMARY OF ACTION:
In February 2016, the position of Community Services Administrator will become vacant when Terry
Higashiyama (current Community Services Administrator) retires. Mayor Law is appointing Kelly Beymer, Parks
& Golf Course Director, to this position. Beymer has served in the director position since 2008. She previously
was the general manager of Maplewood Golf Course from 2002 to 2008.
Because the Community Services Administrator position was included in the 2016 budget, there is no
additional cost to the City.
Under RMC 1-4-3, this position is subject to confirmation by a majority of the members of Renton City Council.
EXHIBITS:
None.
STAFF RECOMMENDATION:
Confirm the appointment of Kelly Beymer to the Community Services Administrator position, grade m49, step
A, effective January 1, 2016.
AGENDA ITEM #7. c)
REGULAR COUNCIL - 16 Nov 2015
SUBJECT/TITLE: Compensate Shane Moloney as a Senior Assistant City Attorney at
Step D Grade m42
RECOMMENDED ACTION: Council Concur
DEPARTMENT: City Attorney
STAFF CONTACT: Larry Warren, City Attorney
EXT.: 6484
FISCAL IMPACT:
Expenditure Required: $ N/A Transfer Amendment: $ N/A
Amount Budgeted: $ N/A Revenue Generated: $ N/A
Total Project Budget: $ N/A City Share Total Project: $ N/A
SUMMARY OF ACTION:
Shane Moloney is a talented attorney with over 10 years of experience working in the public sector as an
attorney and has been the City Attorney of Mill Creek for the last four years. If hired, he would bring to the
City of Renton an experienced employee who would provide quality service to the community. Shane is
currently being compensated by Mill Creek in an amount equivalent to Step D of Grade m42. The difference
between Step C, the entry step that could be offered without Council approval, and Step D is $504/month or
$6,048/year, which would be covered by the existing budget for the position.
Shane will replace Garmon Newsom II who left the City’s employ at the end of August. The 2016 budget
anticipated Garmon remaining with the City at Step E Grade m42. Therefore, this request creates no
additional increase in the Senior Assistant City Attorney Salaries and Wages line item.
EXHIBITS:
None.
STAFF RECOMMENDATION:
Authorizie hiring Shane Moloney at Step D Grade m42.
AGENDA ITEM #7. d)
REGULAR COUNCIL - 16 Nov 2015
SUBJECT/TITLE: Facade Improvement Agreement for 724 South 3rd Street
RECOMMENDED ACTION: Council Concur
DEPARTMENT: Community & Economic Development
STAFF CONTACT: John Collum, Community Development Project Manager
EXT.: 6589
FISCAL IMPACT:
Expenditure Required: $ N/A Transfer Amendment: $ N/A
Amount Budgeted: $ N/A Revenue Generated: $ N/A
Total Project Budget: $ N/A City Share Total Project: $ N/A
SUMMARY OF ACTION:
In 2014, City Council approved the Downtown Commercial Rehabilitation and Façade Improvement Loan
Program (“Program”) as part of an action to allocate Community Development Block Grant (CDBG) monies to
fund local economic development activities. The Program provides financial assistance as an incentive for
owners in the Downtown and South Renton subareas (as designated in the City Center Community Plan) to
rehabilitate their commercial buildings, improve existing building facades, encourage private investment,
provide marketable space for new and expanding businesses, achieve significant visual improvements, and
improve the combined subareas’ overall health and safety.
In June 2015, the City received an application for Program funding from the owners (Cortona LLC) of the
property located at 724 South 3rd Street. The owners are requesting $200,000 in Program funding to assist
with the exterior improvements, and plan to use personal funds to cover the balance of the exterior costs. The
Agreement and its funding will allow the owners to select a contractor and move forward with construction,
which they expect to begin within 30 days following execution of the Agreement.
EXHIBITS:
A. Issue Paper
B. Facade Improvement Agreement and Exhibits
STAFF RECOMMENDATION:
Authorize the Mayor to execute the Facade Improvement Agreement with Cortona LLC.
AGENDA ITEM #7. e)
DEPARTMENT OF COMMUNITY
& ECONOMIC DEVELOPMENT
M E M O R A N D U M
DATE:November 16, 2015
TO:Ed Prince, Council President
Members of Renton City Council
VIA:Denis Law, Mayor
FROM:Chip Vincent, Community & Economic Development Administrator
STAFF CONTACT:John W. Collum, Community Development Project Manager
SUBJECT:Façade Improvement Agreement for 724 South 3rd Street
ISSUE:
Should the City enter into an agreement with Cortona LLC to provide $200,000 in Community
Development Block Grant (CDBG) assistance for façade improvements to the building located at
724 South 3rd Street in Downtown Renton?
RECOMMENDATION:
Authorize the Mayor to execute the Façade Improvement Agreement with Cortona LLC.
BACKGROUND SUMMARY:
In 2014, City Council approved the Downtown Commercial Rehabilitation and Façade
Improvement Loan Program (“Program”) as part of an action to allocate CDBG monies to fund
local economic development activities. The Program provides financial assistance as an
incentive for owners in the Downtown and South Renton subareas (as designated in the City
Center Community Plan) to rehabilitate their commercial buildings, improve existing building
facades, encourage private investment, provide marketable space for new and expanding
businesses, achieve significant visual improvements, and improve the combined subareas’
overall health and safety.
In June 2015, the City received an application for Program funding from the owners (Cortona
LLC) of the property located at 724 South 3rd Street. The owners plan to significantly
rehabilitate the property’s existing building, commonly known as the Old Renton Western Wear
Building. The owners are planning to make over $500,000 worth of renovations to the
building’s exterior, along with significant additional improvements to the building’s interior to
accommodate an office use on the second floor and three-to-four retail/restaurant tenant
spaces on the ground floor. The owners are requesting $200,000 in Program funding to assist
with the exterior improvements, and plan to use personal funds to cover the balance of the
exterior costs.
AGENDA ITEM #7. e)
Ed Prince, Council President
Page 2 of 2
November 16, 2015
Economic Development staff reviewed the funding request and believes it presents a prime
opportunity to utilize Program funding to provide significant improvements and investment to a
long-vacant building in the center of the downtown area. The proposed improvements will
attract new retail and restaurant opportunities that will increase pedestrian and economic
activity, with the opportunity of generating additional downtown revitalization activity.
Economic Development staff and the owners negotiated a set of proposed loan terms that
were reviewed by the Program Loan Committee (consisting of representatives from the City’s
Finance and Community & Economic Development departments and a local financial
institution). The Loan Committee approved the requested funding on September 10, 2015,
with the condition that the owners provide a Personal Guarantee to re-pay the loan in the case
of a default and there are no other remedies available to the City to recover the loan funds.
Economic Development staff and the City Attorney Office drafted a Façade Improvement
Agreement (“Agreement,” attached) that embodies the terms under which the Program
funding would be provided to the owners as a conditional loan. The owners have signed the
Agreement, and it is now awaiting the Mayor’s signature on behalf of the City.
The general terms of the Agreement are as follows:
Loan amount not to exceed $200,000, to be matched dollar for dollar by owners’ funds;
Loan proceeds disbursed on a reimbursement basis;
Loan funds used only for exterior improvements in accordance with architectural
drawings attached to the Agreement;
Zero interest;
Loan term of five years following completion of construction; loan is eligible to be
forgiven at end of term based upon owners meeting certain performance standards
during the term period;
Loan secured by a Promissory Note, Deed of Trust, and a Personal Guarantee (forms of
which are attached to the Agreement); and
Owners to provide insurance and meet other required standards for projects utilizing
federal CDBG funds managed through the amended “King County Housing and
Community Development Contract – 2014” between the City and King County.
The Agreement and its funding will allow the owners to select a contractor and move forward
with construction, which they expect to begin within 30 days following execution of the
Agreement. Construction of the façade improvements are expected to be completed in March
2016. The owners are in discussions with several prospective tenants to occupy the ground
floor retail space and hope to begin interior improvements while the exterior work is on-going.
AGENDA ITEM #7. e)
FACADEIMPROVEMENTAGREEMENTDEVELOPER/OWNERThisFaçadeImprovementAgreement(the“Agreement”)ismadethisdayof__________2015,betweenCortona,LLC(“Developer”),andtheCityofRenton(“City”),actingbyandthroughtheDepartmentofCommunityandEconomicDevelopment(CED),havingitsofficeat1055SouthGradyWay,Renton,Washington98057,andisexecutedforthepurposeofprovidingfundingtoDeveloperthroughCity’sFaçadeImprovementLoanProgram(the“Program”)fortherehabilitationofthefaçadeofabuildinglocatedat7245.3ft1Street,Renton,Washington(the“Property”).INCONSIDERATIONOFDEVELOPER’SCOMPLIANCEWITHTHISFACADEIMPROVEMENTAGREEMENT,CITYAGREESTOPROVIDEDEVELOPERTHEFOLLOWINGFUNDINGFORREHABILITATIONOFPROPERTY:Aconditionalloannottoexceed$200,000.TheProgramfundingwillbeprovidedintheformofaloanthatwillbeforgivenfollowingafive(5)-yearperiod,beginningwiththerecordationofadeedoftrustbutsubjecttocertainprovisionswithinthisAgreement,andprovidedthatDeveloperisincompliancewiththetermsbelow,theDeveloperremainstheowneroftheProperty,thePropertyandthefaçadecontinuetobemaintained,andinsuranceandpropertytaxesarepaidandcurrent.ThesourceofloanfundsistheCityofRentonCommunityDevelopmentBlockGrant(“CDBG”)funds.DEVELOPERAGREESTOTHEFOLLOWINGTERMSANDCONDITIONS:1.UseofLoanFunds.DevelopershallusetheloanproceedsforcustomaryandreasonableprojectspecificexpensesnecessaryfortherehabilitationofthefaçadeofthebuildinglocatedontheProperty,whichwillbeusedforcommercialpurposes.Theloanfundsshallbeusedonlyforexteriorimprovements.Theloanfundsshallnotbeusedforinteriorrehabilitationorimprovementsthatarenotincludedintheapprovedarchitecturaldesignsrelatedtothefaçaderenovation.2.Budget.Developeragreestoadheretotheprojectbudget,whichisattachedheretoasExhibitAandincorporatedhereinbyreferenceincarryingouttherehabilitationprojectdescribedinthisAgreement.Anyline-itemchangesinthebudgetrequiresubmissionofawrittenbudgetamendmentrequesttoCED.Ifapproved,CEDwillrespondwithawrittenletterofapprovaltoDeveloper,andwillkeeparecordofthebudgetamendmentonfile.3.LicensedContractorProcurement.A.Developeragreestosolicitaminimumofthree(3)competitivequotesforthefaçadeimprovementworkfromgeneralcontractorslicensedbytheStateofWashington.1AGENDA ITEM #7. e)
B.Developerisadvisedtodevelopwrittenquotinginstructionsforinvitedcontractorstoincludeinitsrecordofevidencefortheprocurementprocess.C.DevelopershallensurethatthereisnoconflictofinterestbetweentheCityandtheDeveloper’sselectedgeneralcontractorandsubcontractingteam,specificallyinrelationtoSection17,EthicalStandards,ofthisAgreement.D.QuotesshallbesolicitedsolelyfortheProgrameligiblework.Ifnon-façade(buildinginterior)workistobecompletedbefore,simultaneously,orfollowingfaçadeworkfundedthroughthisloan,Developershalldelineatenon-façadeimprovementsintoaseparatecontract.E.InaccordancewithU.S.DepartmentofHousingandUrbanDevelopment(HUD)requirementA24CFR85.36(b)(9),DeveloperagreestoprovideevidencetotheCitytosupportthesignificanthistoryoftheprocurementaction,includingtherationalefortheselectedmethodofprocurement,theselectionofthecontracttype,contractorselectionorrejection,andthebasisforthecontractprice.Citymayrequestacopyofallquotesreceivedandtheamountofeachquote.Typically,theCitywouldexpectthatDeveloperselectthelowestmostresponsivequotingcontractor,takingintoconsiderationcontractorqualificationstosufficientlycompleteworkwithinbudgetandprojecttimeline.AnawardshouldbemadetothequotingcontractorwhosequoteisresponsivetothesolicitationandismostadvantageoustotheDeveloper,price,qualityandotherfactorsconsidered.4.ProjectTimetable.DevelopershallcompletetheProjectwithinthetimeframesestablishedwithintheprojectschedulelistedbelow,unlesstheCityapprovesanalternativeschedule,attheCity’ssolediscretion:#TaskDeadlineResponsibleParty(ies)1EnvironmentalreviewcompleteAugust14,2015KingCountyandclearanceprovidedbyHUD.HousingandCommunityDevelopment(HCD)(viaHUD)2a.Fundingapprovalprovidedbya.September10,a.CitytheCity’sProgramLoan2015b.CityCommittee.b.b.Fundingcommitmentletterprovided_to_Developer.3ApprovalofmonitoringplanforIncludeapprovedHCDprojectground-disturbingplanaspartofactivities(Environmentalquotingand2AGENDA ITEM #7. e)
ConditionsandMitigationconstructionMeasuresforArchaeology),documents;completepriortoexecutionofconstructioncontract.4ExecuteAgreement.FollowingapprovalCity,DeveloperofAgreementtermsbyDeveloperandCityfollowingnegotiations,andapprovalofKingCountyHCDfollowingitsreviewofAgreement_draft.5SubmitloanpackageNolessthansevenCity(commitmentletterand(7)businessdaysexecutedAgreementwithLoanbeforeloanclosing.ReimbursementRequestFormformatandsignedPromissoryNoteandDeedofTrust)toKingCounty_HCD.6Closeloan.NoearlierthanCity,Developerseven(7)businessdaysfollowingsubmittalofloanclosingpackagetoKing_County_HCD.7a.CompletequotingprocessPriortostartofa.Developerandselectgeneralcontractor.construction.b.Developerb.Submitprocurementactionrecords_to_City.8Executeconstructioncontract.FollowingselectionDeveloperofgeneralcontractor.9Holdpre-constructionmeetingtoFollowingexecutionDeveloper(withreviewprojectscheduleandofconstructioncontractorteam),compliancewithCDBGProgramcontractandpriortoCity,KingCountyRegulations(includingfederalissuanceofNoticeHCDlaborstandards).toProceed.10IssueNoticetoProceed.Followingpre-Cityconstructionmeetingandpriorto3AGENDA ITEM #7. e)
beginningconstruction.11Install“ComingSoon”posterinFollowingreceiptofDeveloperbuildingwindowwithprojectNoticetoProceed,rendering,details,andfundingbutpriortosource(CityofRentonCDBGbeginningbuildingProgram).improvements.12BeginbuildingimprovementsWithin30daysDeveloperincludedwithinprojectbudgetfollowingexecutionattachedasExhibitA.ofAgreementbyCity_and_Developer.13SubmitacompletedLoanNomoreoftenthanDeveloperReimbursementRequestFormevery30dayswithallsupporting(unlessapprovedindocumentationfor:advancebyCED),costsclaimedintherequestandwithin45days(purchaseorders,subcontractorofstartofinvoices,receipts),evidenceofconstruction.paymentofcostsbyDeveloper,evidenceofCityinspectionsasrelatedtotheitemsincludedintherequest,federallycompliantcertifiedweeklypayrollsofconstructionactivity,andsupportingdocumentsfortherequest_period.14a.CompletereviewofLoana.Within15daysofa.City,KingReimbursementRequestFormreceiptofeachCountyHCD(laborandsupportingdocumentation,monthlysubmittalcomplianceonly)includingrequestinganymissingbyDeveloper.b.Cityorcorrectedinformationneededb.Within30daysoftocompletereviewandapprovereceiptofeachpayment.monthlysubmittalb.RemitreimbursementfromDeveloper.payment_to_Developer.15a.Completeconstruction.March2016a.Developerb.RecordDeedofTrust.b.City16a.ReviewandacceptlaborApril2016a.KingCountystandards.HCDIiReleaseretainage.b.City17CompleteandsubmitprojectApril2016CityfundingreporttoKingCountyHCD.4AGENDA ITEM #7. e)
18Closeproject.NolaterthanMayCity,KingCounty30,2016HCD19SubmitannualreportsonleasingOnceperyear,DeveloperandoccupancystatustoCED.startingsix(6)monthsafterstartofconstructionandeveryoneyearanniversaryofthefirstreportthereafterforfive(5)years.5.AccomplishmentofWork.DeveloperagreestocarryouttherehabilitationworkspecifiedinthisAgreementwithallpracticaldispatchinasound,economical,andefficientmanner.Atitsoption,theCityreservestherighttocancelandterminatetheAgreementifDeveloperfailsorrefusestocausecommencementofphysicalrehabilitationworkonthePropertyafteraperiodofsixty(60)daysfromthedateofexecutionofthisAgreement,orifDeveloperfailsorrefusestocompletesuchrehabilitationworkwithinareasonabletime.TheCity’sfailuretoexerciseitsrighttoterminatethisAgreementduetotheDeveloper’sfailureorrefusaltocausecommencementofortocompletethephysicalrehabilitationworkonthePropertyshallnotbedeemedawaiverthereof.6.Records.Foraperiodofsix(6)yearsfollowingcompletionoftheimprovementsspecifiedinthisAgreement,Developeragreestokeepthefollowingrecords:allloandocuments;contracts;invoices;materials;personnelandpayrollrecords;conditionsofemployment;booksofaccount;tenantleases;tenantincomeverifications;andanyotherdocumentationpertinenttotheconstructionoftheProperty,theoccupancyandrentaloftheProperty,andthedispositionoftheloanproceeds.DevelopershallpermitCity,HCD,HUD,theComptrolleroftheUnitedStates,andtheirdesigneestohavefullandfreeaccesstotheserecordsforthepurposeofmakingaudits,examinations,excerpts,andtranscriptions.7.Security,TerminationandRepayment.A.Security/Termination.ThisconditionalloanshallbeevidencedbyaPromissoryNoteexecutedbyBorrower(ExhibitB),andsecuredbyaPersonalGuarantee(ExhibitC)andaDeedofTrust(ExhibitD)ontheProperty.TheDeedofTrustshallberecordedintheRecorder’sOfficeforKingCounty,Washingtonwhenprojectconstructioniscomplete;thefinalreimbursementrequestissubmittedandapprovedbytheCityandHCD;andthefinalloanamounthasbeendeterminedbasedupontheapprovedloanexpenditures.DeveloperagreesthatCityshallhavetherighttocancelorterminatetheloan,andthatthefullamountoftheloanthathasbeenpaidouttotheDeveloperbyCityshallbedueandpayablebytheDevelopertoCityondemandif:5AGENDA ITEM #7. e)
I.TherehabilitationconstructionisnotcarriedoutwithreasonablediligenceorisdiscontinuedatanytimeforanyreasonotherthanaForceMajeureevent,notwithinthecontrolofeitherparty,asdescribedinSection32(M)ofthisAgreement;ii.DevelopermakesmaterialchangesinthescopeofworkorentersintoanothercontractorsubcontractforworkonthePropertywithoutthepriorwrittenapprovalofCity;iii.AllDeveloper’sprincipalsdie,becomelegallyincapacitated,orotherwisebecomelegallyunabletoactbeforethecompletionoftheconstruction;iv.DeveloperabandonstheProperty;failstokeepinsuranceandtaxescurrent;failstoobtainpermits;violatesbuildingcode;orotherwisefailstomaintainthefaçade;v.Thesale,lease,orothertransferofanykindornatureofthePropertybeforethecompletionoftheconstructionwithoutthepriorwrittenconsentofCity,excluding(a)creationofapurchase-moneysecurityinterestforhouseholdappliances,or(b)atransferbydevise,descent,oroperationoflawuponthedeathofajointtenant;vi.Developerdefaultsonanycovenant;agreement;term;orconditionofthisAgreementoranyotheragreementmadebetweenDeveloperandCity;orvii.DevelopertransfersownershipofthePropertyordiscontinuestheapproveduseduringthefive(5)-yearperiodafterconstructioncompletion.However,DevelopermayrequestCityapprovaltousethePropertyforanothereligiblepurpose.TerminationorcancellationshallbeaccomplishedbymailingbycertifiedmailorbypersonallydeliveringwrittennoticeofterminationtoDeveloperatDeveloper’sbusinessaddress,ortoanyotheraddressthatDeveloperhasmadeknowntoCityeitherpersonallyorbymail.TerminationshallbeeffectiveonthedatethenoticeismailedorpersonallydeliveredtoDeveloper’saddress,regardlessofwhetherthenoticeisactuallyreceivedbyDeveloper.B.Repayment.Anypaymentsaredeferredtotheendofloanterm.Norepaymentwillberequiredifalltermsaremetandadeterminationhasbeenmaderegardingloanforgiveness(seenextsection).C.LoanForgiveness.Theloanamountwillbeforgivenattheendoftheterm,providedallAgreementrequirementshavebeencompleted;theDeveloperisingoodstanding;andthepropertycontinuestobemaintainedinaccordancewiththeProgramandAgreementrequirements,including(a)theDeveloperremainstheownerofthebuildingandproperty,(b)remainscurrentonCityandCountypropertytaxesandfees,(c)maintainsinsuranceonthepropertyinaccordancewiththetermsofthisAgreement,and(d)maintainsthefaçade6AGENDA ITEM #7. e)
improvementsfundedthroughthisAgreementandDeveloper’sfundsingoodrepairandfreefromanyaccumulationofdebris,graffiti,orwastematerials,andtakesallotheractionsnecessarytomaintainandensuretheneatandcleanappearanceofthesurroundingstreetscapearea.i.Inadditiontothetermsprovidedaboveregardingtheloanamountbeingforgivenattheendoftheterm,theDevelopermustalsoreachandmaintainanacceptablelevelofgroundleveloccupancyoftheProperty.UponcompletionofthefaçadeimprovementsfundedthroughthisAgreementandrecordationoftheDeedofTrust,Developerhasonehundredeighty(180)daystoinstalltenantswithinatleastfiftypercent(50%)ofthebuilding’sgroundlevelcommercialspacesquarefootage,andwithinone(1)yeartoachieveatleasteightypercent(80%)occupancyofthebuilding’sgroundlevelcommercialspacesquarefootage.Shouldthegroundlevelcommercialspacesquarefootagenotreacheightypercent(80%)occupancywithinthisone(1)-yearperiodornotmaintaineightypercent(80%)occupancythroughoutthetermofthePromissoryNote,theDevelopershallnotifytheCityimmediately.TheCity,atitssolediscretion,maythengrantDeveloperaninety(90)-daygraceperiodforDevelopertoshowproofofactiveandaggressiveeffortstoobtaintenantsforthepropertytoachieveatleasteightypercent(80%)occupancy,includingbutnotlimitedto,theengagementofaprofessionalcommercialbrokeragefirm.Proofofeffortstoobtaintenantsmayalsoincludeinvoicesforadvertising,copiesofadvertisementruns,andanyotherproofofactivemarketingoftheProperty.IftheDeveloperhasexecutedalease(s)toreachatleasteightypercent(80%)occupancyofthegroundfloorcommercialspacesquarefootageduringthisgraceperiod,theCity,atitssolediscretion,maythengrantDeveloperanadditionalninety(90)-daygraceperiodtoensurethatthetenant(s)occupythespacetoachieveatleasteightypercent(80%)occupancy.“Occupancy”referstohavinganactivebusinessopentothepublic,ortenantinthecaseofmixeduseproperties.Useofthebuildingforstoragedoesnotqualifyasoccupancy.Aftertheinitialone(1)-yearperiodandexpirationofanygraceperiodsthathavebeengrantedbytheCityduringthetermofthePromissoryNote,ifthegroundfloorcommercialspacesquarefootageisnotatleasteightypercent(80%)occupied,oranyoftheothertermsforloanforgivenessunderthissectionhavenotbeenmet,Developerwillbenotifiedthattheloanshallbecomeimmediatelydueandpayable.ii.DevelopershallsubmitarequesttotheCEDforeachidentifiedtenantforanacknowledgementthatthetenantgenerallymeetstheintentoftheProgramGuidelinessubsectionentitled“ProjectImpact&PublicBenefit”under“ApplicationEvaluation”.7AGENDA ITEM #7. e)
8.Term.A.ThisAgreementshallbeeffectiveuntilDeveloperhaswellandtrulyperformedallthetermsandconditionsofthisAgreementandanyotheragreementmadebetweenDeveloperandtheCity.B.AllactivitiesspecifiedinSection4ofthisAgreementshallbeginandbecompletedwithinthetimeframesprovided,unlesstheCityapprovesanychanges,attheCity’ssolediscretion.C.Thedateoftotalforgivenessshallbefive(5)yearsaftertherecordationoftheDeedofTrust,estimatedtobeMarch31,2021,providedDeveloperhaspaidallothersums,withinterest,advancedtoprotectthesecurityoftheDeedofTrust,andcompliedwithallcovenantsandagreements.9.ArchitecturalDrawingsandSpecifications/DesignStandards.ThefaçadeimprovementsshallbebasedupontheexteriorimprovementdrawingsdatedJune4(DrawingsPart1)and10(DrawingsPart2),2015,attachedasExhibitEandsubmittedtotheNationalParkServiceaspartoftheDeveloper’ssubmittaltonominatethesubjectpropertyforinclusionontheNationalRegisterofHistoricPlacesandeligibleforfederalhistorictaxcredits.A.Asthepropertyiseligiblefor,andisbeingnominatedfor,theNationalRegister,allworkmustcomplywiththeSecretaryofInterior’sStandardsforRehabilitationofHistoricProperties.B.Allworkshallbeperformedbyqualifiedcontractorsinaccordancewithindustrystandards,localcodes,ordinances,permitandinspectionrequirements,andbothlocalandfederalrequirementsrelatedtoaccessibilityforpersonswithdisabilities.C.Anyfinishesproposedatthegroundlevelthatmaybeaccessibletohumansaresubjecttoananti-graffiticoatingbeingappliedtoensureeasyremovalofgraffiti.Therecommendedproductforthispurposeisfoundatthefollowinglink:https://www.sherwinwilliams.com/painting-contractors/business-builders/paint-technology-and-application/swarticle-pro-antigraffiticoa.html.Alternativeproductsmaybeconsidered,butshallbesubmittedtotheCEDforreviewandapprovalpriortoapplicationofthecoating.D.Anyspecificsignsthatareproposedforthebuildingastenantsareidentified,duringtheeffectiveperiodofthisAgreement,shallbesubmittedtoCEDforreviewandapprovalpriortopermittingbytheCityortheNationalParkService,manufacture,andinstallation.10.EnvironmentalReview.KingCountyHCDreceivedaletterfromHUDdatedAugust14,2015,indicatingthatthesubjectprojecthasreceivedsatisfactoryenvironmentalclearance.Attachedtotheletterwasan“AuthoritytoUseGrantFunds”formauthorizinga8AGENDA ITEM #7. e)
releaseoffundsfortheproject.(AttachedheretoasExhibitF).Developerherebyagreestothefollowingmitigationmeasures,asrequiredbyHUDinExhibitF:A.TheDevelopershallimplementallofthefollowingmitigationmeasuresincludedintheKingCountyEnvironmentalReviewCompendium,ProjectNumberC14753-CortonaBuilding,EnvironmentalReviewRecord,signedJuly16,2015,including:i.Archaeology:Projectground-disturbingactivitiesshallbemonitoredbyaprofessionalarchaeologist.Monitoringshouldbeconductedunderamonitoringplanthatspecifiestheprocedurestofollowshouldanyarchaeologicalresourcesbediscovered.ii.AnUnanticipatedDiscoveryPlanforunknownarchaeologicalandhumanremainsshallbeineffectduringconstruction.Intheeventthatarchaeologicalorhistoricmaterialsarediscoveredduringprojectactivities,workintheimmediatevicinityshallstop,theareasecured,andtheKingCountyProjectManager,StateDepartmentofArchaeology&HistoricPreservationandconcernedtribesnotified,andanyrelatedissuesshallberesolvedbeforeconstructionworkcontinues.11.Permitting.DevelopershallobtainallpermitsnecessaryfromtheCityorotherapplicablejurisdictionstoconstructtheapprovedprojectimprovements.12.FinancialRequirements.A.MatchingFunds.Developershallmatch,asaconditionofreceivingfundspursuanttothisAgreement,ataminimum,theamountoftheloaninthisAgreement.Thematchingfundsmustbespentontheapprovedexteriorprojectimprovements.Developershallprovideevidenceofpaymentfrommatchingfundswitheachrequestforreimbursement.B.FinancialCapacity.i.Developershallprovidefinancialinformationconfirmingthatithasthecapacitytoprovidematchingfunds,including,butnotlimitedto,credithistory,mortgageverification,businessandpersonaltaxreturns,reviewedorauditedbusinessfinancialstatements(ifapplicable),andevidenceofmatchingfunds(bankstatementorsimilarifpersonalfundsorloandocumentsifdebt).ii.Developershallatalltimesremaincurrentonallpropertytaxes,mortgagesandinsurance.13.FeesandClosingCosts.9AGENDA ITEM #7. e)
A.DevelopershallpayaLoanOriginationFeeofonehundredfiftydollars($150)oronequarterofonepercent(0.25%)oftheactualloanamount,whicheverisgreater.ThefeecannotbepaidoutofCityloanproceeds.B.Developershallpayfiftypercent(50%)ofactualclosingcosts,includinganylegalfees.14.LoanClosing.Aloanclosingshallbescheduledonceallrequisitedocumentshavebeenprepared.Aspartoftheclosingprocess,theCityshallprovidethefollowingmaterialstoHCDnolessthanseven(7)daysbusinessdaysbeforethescheduledloanclosing:A.Copyofexecutedcommitmentletter;B.CopyofthesignedloanAgreement;andC.LoanReimbursementRequestForm.15.Disbursements.A.Allfinancialassistanceshallbeprovidedonareimbursementbasisastheprojectisunderconstruction.B.Developermayrequestreimbursementoffundsforreasonableexpensesincurredduringthefaçadeimprovementwork.C.Reimbursementrequestsmaynotbesubmittedmorefrequentlythaneverythirty(30)days,unlessapprovedinadvancebyCED.D.Cityreservestherighttoretainuptotenpercent(10%)offundsavailableperreimbursementrequestuntilworkisinspectedandcertifiedcompleteatcompletionofentireproject.E.DisbursementoffundsshallbecontingentuponDeveloper’sanditscontractor’scompliancewithfederalregulationsrelatedtofunding,includinganyapplicablefederallaborstandards.F.Paymentofeachreimbursementrequestiscontingentupon:i.CompletionofagreeduponprojectimprovementsidentifiedinExhibitEandthisAgreementandforwhichthereimbursementrequestintendstocover,andallapplicableCityinspectionshavebeenapproved.10AGENDA ITEM #7. e)
ii.HCDstaffhasverifiedthatallfederallaborrequirements,HUDSection3requirements,andotherregulatoryrequirementshavebeenmetpriortoapprovinganypaymentbytheCityontheproject.a.HCDshallbetherecipientoffederallycompliantcertifiedweeklypayrollsofconstructionactivityandsupportingdocumentsforlaborcompliance.Uponreviewandapprovalofsaiddocuments,HCDshallapprovepayment.b.PaymentshallbewithheldbytheCityforanycostsbythegeneralcontractororsubcontractorsthatareoutofcompliance.G.Foreachreimbursementrequest,theDevelopershallsubmitacompleted“LoanReimbursementRequestForm”(ExhibitG)toindicateallprojectcostsforthatrequestperiod’swork,andindicatingcoststobereimbursedbytheCityandthosetobepaidfromDeveloper’smatchingfundsduringthatrequestperiod.Foreachrequestformsubmitted,theDevelopershallprovideallsupportingdocumentationforcostsclaimedintherequest.Supportingdocumentationforcostsclaimedincludes,butisnotlimitedto,purchaseordersandsubcontractorinvoices.TheDevelopershallalsosubmitevidenceofpaymentforcostsincludedineachrequest.H.UponDeveloper’ssubmittalofanycompletedLoanReimbursementRequestFormandallnecessarysupportingdocumentation,theCityshallworkwithHCDtocompleteatimelyreviewandapprovepayment.TheCitywillseektoremitreimbursementpaymentstotheDeveloperwithinthirty(30)daysofreceiptoftheDeveloper’sreimbursementrequests,pendingDeveloper’scooperationinsubmittinganymissingorcorrectedinformationrequestedbytheCityorHCD.16.Default.A.Developershallbeconsideredindefaultandthebalanceoffinancialassistanceshallbeimmediatelydueandpayableupon:1)failureoftheborrowertoretainownershipofthepropertyforthedurationoftheforgivableloan;2)failuretoproperlymaintainthefaçadeafterimprovementsarecompleted;3)becomingdelinquentinpayingcityandcountypropertytaxesandfees;4)failuretomaintainpropertyinsurancelistingtheCityofRentonasanAdditionallyInsured;5)failuretooperateincompliancewithallapplicablelocal,state,andfederalcodes,laws,andregulations;or6)intheeventofbreachofthisAgreement.B.RemediesofDefault.Intheeventofdefault,theCitymayexerciseanycombinationoftheremediesavailabletoitwithrespecttothesecurityagreements.TheCitymaytakewhateveractionatlaw,orinequity,asmayappearnecessaryordesirabletocollectanyoutstandingbalanceortoenforcetheperformanceandobservationofanyotherobligationoragreementoftheDeveloper.11AGENDA ITEM #7. e)
17.EthicalStandards.Developertakesnoticeofandrepresentsthatitisnotinviolationof,orhasnotparticipatedandwillnotparticipatein,theviolationofanyofthefollowingethicalstandardsprescribedbyTitleI,Chapter6oftheRentonMunicipalCode(CodeofEthics),including,butnotlimitedtothefollowing:RMC1-6-4AcceptanceofGifts:Nopublicofficialshallreceive,accept,take,seek,orsolicit,directlyorindirectly,anythingofeconomicvalueasagift,gratuity,orfavor,fromanypersonifsuchpublicofficialhasreasontobelievethedonorwouldnotgrantorgivesuchgift,gratuity,orfavor,butforsuchpublicofficial’sofficeorpositionwithintheCityofRenton.Nopublicofficialshallreceive,accept,take,seek,orsolicit,whetherdirectlyorindirectly,anythingofeconomicvalueasagift,gratuity,orfavor,fromanypersonorfromanyofficerordirectorofsuchpersonifsuchpublicofficialhasreasontobelievesuchperson:A.Has,orisseekingtoobtaincontractualorotherbusinessorfinancialrelationshipwiththeCityofRenton;orB.ConductsoperationsoractivitieswhichareregulatedbytheCityCouncil,itscommitteesoranyboardorcommissionoftheCityofRenton;orC.Hasinterestswhichmaybesubstantiallyaffectedbysuchpublicofficial’sperformanceornonperformanceofhisorherofficialduty.RMC1-6-5InterestinContractsProhibited;Exceptions:Nopublicofficialshallbebeneficiallyinterested,directlyorindirectly,inanycontractwhichmaybemadeby,through,orunderthesupervisionordirectionofsuchpublicofficial,inwholeorinsubstantialpart,orwhichmaybemadeforthebenefitofhisoffice,oraccept,directlyorindirectly,anycompensation,gratuityorrewardinconnectionwithsuchcontractfromanyotherpersonbeneficiallyinterestedtherein.TheforegoingshallnotapplytotheexceptionsspecifiedinRCW42.23.030whichareincorporatedhereinasiffullysetforth.RemoteInterest:ApublicofficialshallnotbedeemedtobeinterestedinacontractasspecifiedintheimmediatelyprecedingparagraphifhehasonlyaremoteinterestinthecontractandifthefactandextentofsuchinterestisdisclosedtothegoverningbodyoftheCityofRentonofwhichheisamemberandnotedintheofficialminutesorsimilarrecordsoftheCitypriortotheconsummationofthecontract,andthereafterthegoverningbodyauthorizes,approvesorratifiesthecontractingoodfaithbyavoteofitsmembershipsufficientforthepurposewithoutcountingthevoteorvotesofthepublicofficialhavingaremoteinteresttherein.RMC1-6-6IncompatibleService;ConfidentialInformation:Noelectedpublicofficialshallengageinoracceptprivateemploymentorrenderservicesforanypersonorengageinanybusinessorprofessionalactivitywhensuch12AGENDA ITEM #7. e)
employment,serviceoractivityisincompatiblewiththeproperandfaithfuldischargeofhisofficialdutiesassuchelectedofficial,orwhenitwouldrequireorinducehimtodiscloseconfidentialinformationacquiredbyhimbyreasonofhisofficialposition.Nosuchofficialshalldiscloseconfidentialinformationgainedbyreasonofhisofficialposition,norshallheotherwiseusesuchinformationforhispersonalgainorbenefit.RMC1-6-7PersonalorPrivateInterests:Everyelectedpublicofficialwhohasafinancialorotherprivateorpersonalinterestinanyordinance,resolution,contract,proceeding,orotheractionpendingbeforetheCityCounciloranyofitscommittees,shallpromptlydisclosesuchinterestatthefirstpublicmeetingwhensuchmatterisbeingconsideredbytheCityCouncil,ontherecordsoftheofficialCouncilminutes,thenatureandextentofsuchpersonalorprivateinterestandsameshallbeincorporatedintheofficialminutesoftheCityCouncilproceedings.Suchdisclosureshallinclude,butnotbelimitedto,thefollowinginformationwhichshallbesubmittedinwritingbysuchCouncilman,sworntounderpenaltyofperjury,to-wit:A.Thenameandaddressofanyprivatebusinesscorporation,firmorenterpriseaffectedbysuchcouncilmanicactionofwhichtheCouncilmanorotherelectedpublicofficialisorhasbeenduringtheprecedingtwelve(12)monthsashareholder,bondholder,securedcreditor,partner,jointentrepreneurorsoleproprietor,wheneverthetotalvalueofhisindividualorundividedlegalandequitablefinancialinterestthereinisandatanytimeduringtheprecedingtwelve(12)monthshasbeeninexcessofonethousandfivehundreddollars($1,500.00).B.Thenameofanysuchprivatebusinessorcorporation,firmorenterpriseofwhichsuchelectedpublicofficialorhisrelativesareorhavebeenduringtheprecedingtwelve(12)monthsasofficer,director,partner,attorney,agent,oremployee,who,forservicesrenderedduringsuchprecedingtwelve(12)monthsortoberenderedinanysuchcapacity,hasreceivedorhasbeenpromisedcompensationinexcessofonethousandfivehundreddollars($1,500.00).C.Everyofficeordirectorshipheldbysuchelectedpublicofficialorhisspouseinanycorporation,partnership,soleproprietorshiporlikebusinessenterprise,whichconductsitsbusinessactivitieswithintheboundariesoftheRentonSchoolDistrictandwhichissubjecttoanyregulationorcontrolbytheCityofRenton,andfromwhichsuchelectedpublicofficialhasreceivedcompensationorhasbeenpromisedcompensationduringtheprecedingtwelve(12)monthperiodinexcessofonethousandfivehundreddollars($1,500.00),orservices;oranyotherthingofvalueinexcessofsaidamount.D.AlistcontainingacorrectlegaldescriptionofanyandallrealpropertylocatedwithintheCitylimitsofRentoninwhichanysuchelectedpublicofficialhasanyinterestwhatsoever,asowner,purchaser,optionee,optionor,oranyotherproprietaryinterest,acquiredduringtheprecedingtwelve(12)monthperiodwheneversuchproprietaryinterestis13AGENDA ITEM #7. e)
inexcessofonethousandfivehundreddollars($1,500.00).Thissubsectionshallnotapplytotheresidencehomeofsuchofficial.Theforegoingprovisionsshallnotapplytopoliciesoflifeinsuranceissuedtosuchpublicofficialorhisspouseormembersofhisfamily,accountsinanycommercialbank,savingsandloanassociationorcreditunions,orsimilarfinancialinstitutionssubjecttoregulationbytheStateofWashingtonoranyothergovernmentalagencyhavingjurisdictionthereover.Anysuchelectedpublicofficialwhoisdisqualifiedbyreasonofsuchpersonal,privateorsimilarconflictofinterestinanymatterashereinabovedefined,shall,afterhavingmadetherequireddisclosureashereinsetforth,removehimselffromhiscustomaryseatduringsuchdebateand,bypermissionofthepresidingofficer,leavetheCouncilchamberuntilsuchtimeasthematterathand,fromwhichsuchpublicofficialhasbeendisqualified,hasbeendisposedofintheregularcourseofbusiness.18.IndemnificationofCity.Developershallindemnify,defendandholdharmlessRenton,itselectedofficials,officers,agents,employeesandvolunteers,fromandagainstanyandallclaims,lossesorliability,oranyportionofthesame,includingbutnotlimitedtoreasonableattorneys’fees,legalexpensesandlitigationcosts,arisingfrominjuryordeathtopersons,includinginjuries,sickness,diseaseordeathofDeveloper’sownemployees,agentsandvolunteers,ordamagetopropertycausedbyDeveloper’snegligentactoromission,exceptforthoseactscausedbyorresultingfromanegligentactoromissionbyRentonanditsofficers,agents,employeesandvolunteers.ShouldacourtofcompetentjurisdictiondeterminethatthisagreementissubjecttoRCW4.24.115,(Validityofagreementtoindemnifyagainstliabilityfornegligencerelativetoconstruction,alteration,improvement,etc.,ofstructureorimprovementattachedtorealestate...)then,intheeventofliabilityfordamagesarisingoutofbodilyinjurytopersonsordamagestopropertycausedbyorresultingfromtheconcurrentnegligenceofDeveloperandRenton,itsofficers,officials,employeesandvolunteers,Developer’sliabilityshallbeonlytotheextentofDeveloper’snegligence.ItisfurtherspecificallyandexpresslyunderstoodthattheindemnificationprovidedinthisAgreementconstituteDeveloper’swaiverofimmunityundertheIndustrialInsuranceAct,RCWTitle51,solelyforthepurposesofthisindemnification.ThePartieshavemutuallynegotiatedandagreedtothiswaiver.TheprovisionsofthissectionshallsurvivetheexpirationorterminationofthisAgreement.Claimsshallinclude,butnotbelimitedto,assertionsthatuseortransferofsoftware,book,document,report,film,tape,orsoundreproduction,ormaterialofanykind,deliveredhereunder,constitutesaninfringementofanycopyright,patent,trademark,tradenameand/orotherwiseresultsinunfairtradepractice.14AGENDA ITEM #7. e)
Developeragreesnottoperformanyactsthatincludeuseortransferofsoftware,book,document,report,film,tape,orsoundreproduction,ormaterialofanykind,deliveredhereunder,thatconstitutesaninfringementofanycopyright,patent,trademark,tradenameand/orotherwiseresultsinunfairtradepractice.DeveloperagreestoindemnifytheCityforanyharmresultingfromunfairtradepractices.Theprovisionsinthissectionshallsurvivetheterminationand/ordurationofthecontracttern.Nothingcontainedwithinthisprovisionshallaffectand/oraltertheapplicationofanyotherprovisioncontainedwithinthisContract.Theindemnification,protection,defenseandholdharmlessobligationscontainedhereinshallsurvivetheexpiration,abandonmentorterminationofthisContract.19.JointAgreementProvisions.Theamended“KingCountyHousingandCommunityDevelopmentContract—2014”(“JointAgreement”)withtheCitycontainsseveralprovisionsthattheCityisresponsibleformonitoringorimplementingshoulditutilizeCDBGfederalfundsforprojects,suchastheprojectcoveredthroughthisAgreement.AsthisAgreementmeetsthedefinitionof“subcontract”asdefinedintheJointAgreement,certainapplicableprovisionsmustbeincludedinthisAgreement,andtheDevelopershallberesponsibleformonitoringandimplementingthemwithoversightbytheCity.Theprovisions(verbatimfromtheJointAgreement)followinthisAgreement(Sections20to29),withtheJointAgreementsectionreferencesnotedtoidentifythem.Referencesto“Contractor”areintendedtobetheCity.ForpurposesofthisAgreement,theDeveloperwouldreplacetheCitywithinsomeprovisions.TheremaybeprovisionsincludedthatarenotapplicabletotheDeveloper.DevelopershouldconsultCityandHCDwherenecessary.20.Not-for-profitCorporations.(SectionV.GofJointAgreement)IftheContractorisanot-for-profitcorporation,costsforwhichtheContractorrequestsreimbursementshallcomplywith,unlessotherwiseprovidedintheProject/ProgramExhibit(s),thepolicies,guidelinesandrequirementsof2CERPart230,‘CostPrinciplesforNon-ProfitOrganizations,”andthesectionsof24CFRPart84,UniformAdministrativeRequirementsforGrantsandAgreementswithInstitutionsofHigherEducation,Hospitals,andOtherNon-ProfitOrganizations,identifiedat2CFRPart215and24CFR§570.502(b),ApplicabilityofUniformAdministrativeRequirements.21.ProgramIncome.(SectionV.1ofJointAgreement)TheContractorshallreportallCDBGandHOMEProgramIncome,asdefinedin24CFR§92.2,92.503and570.504(c)andintheICAs,generatedunderthisContractforthepurposesspecifiedhereinorgeneratedthroughtheproject(s)fundedunderthisContract.ProgramincomeistobereportedtotheCounty.ProgramincomeshallbereturnedtotheCountyunlesstheCountyspecifiesthatitmayberetainedbytheContractor.IftheCountyauthorizestheContractortoretaintheProgram15AGENDA ITEM #7. e)
Incometocontinueorbenefitaproject(s),theContractorshallcomplywithallprovisionsofthisContractinexpendingthefunds.ThisdutytorepaytheCountyshallnotbediminishedorextinguishedbythepriorterminationoftheContractpursuanttoSectionII.DurationofContractorSectionXV.Termination.22.HoldHarmlessAndIndemnification.(SectionXVIIofJointAgreement)A.ContractorisanIndependentContractor.InprovidingservicesunderthisContract,theContractorisanindependentcontractorandneitherit,noritsofficers,agentsoremployees,areemployeesoftheCountyforanypurpose.TheContractorshallberesponsibleforallfederaland/orstatetax,industrialinsurance,andSocialSecurityliabilitythatmayresultfromtheperformanceofandcompensationfortheseservicesandshallmakenoclaimofcareerserviceorcivilservicerightswhichmayaccruetoaCountyemployeeunderstateorlocallaw.TheCountyassumesnoresponsibilityforthepaymentofanycompensation,wages,benefitsortaxesby,oronbehalfof,theContractor,itsemployees,and/orothersbyreasonofthisContract.TheContractorshallprotect,indemnify,andholdharmlesstheCity,itsofficers,agentsandemployeesfromandagainstanyandallclaims,costs,and/orlosseswhatsoeveroccurringorresultingfrom:1.TheContractor’sfailuretopayanysuchcompensation,wages,benefitsortaxes;and/or2.ThesupplyingtotheContractorofwork,services,materialsorsuppliesbyContractoremployeesorothersuppliersinconnectionwithorsupportoftheperformanceofthisContract.B.ContractorAgreementtoRepay.TheContractorfurtheragreesthatitisfinanciallyresponsibleforandshallrepaytheCountyallindicatedamountsfollowinganauditexceptionthatoccursduetothenegligence,intentionalact,and/orfailure,foranyreason,tocomplywiththetermsofthisContractbytheContractor,itsofficers,employees,agents,and/orrepresentatives.ThisdutytorepaytheCountyshallnotbediminishedorextinguishedbythepriorterminationoftheContractpursuanttotheDurationofContractortheTerminationSections.C.ContractorIndemnificationofCounty.1.TheContractorshallprotect,defend,indemnify,andholdharmlesstheCounty,itsofficers,employeesandagents,fromandagainstanyandallcosts,claims,judgmentsand/orawardsofdamages,arisingoutof,orinanywayresultingfrom,thenegligentactsoromissionsoftheContractor,itsofficers,employees,contractors,subcontractorsand/oragents,initsperformanceand/ornon-performanceofitsobligationsunderthisContract.TheContractoragreesthatitsobligationsunderthissubparagraphextendtoanyclaim,demand,and/orcauseofactionbroughtby,oronbehalfof,anyofitsemployees16AGENDA ITEM #7. e)
oragents.Forthispurpose,theContractor,bymutualnegotiation,herebywaives,asrespectstotheCountyonly,anyimmunitythatwouldotherwisebeavailableagainstsuchclaimsundertheindustrialinsuranceprovisionsofRCW,Title51.IntheeventtheCountyincursanyjudgment,awardand/orcostarisingtherefromincludingattorneys’feestoenforcetheprovisionsofthisarticle,allsuchfees,expenses,andcostsshallberecoverablefromtheContractor.TotheextentthataContractorsubcontractorfailstosatisfyitsobligationtodefendandindemnifyKingCounty,asdetailedinSectionXVII.HoldHarmlessandIndemnification,theContractorshallprotect,defend,indemnifyandholdharmlessKingCounty,itsofficers,employees,andagentsfromanyandallcosts,claims,judgments,and/orawardsordamagesarisingoutof,orinanywayresultingfromthenegligentactoromissionsoftheContractor’scontractor/subcontractor,itsofficers,employees,and/oragentsinconnectionwithinorsupportofthisContract.2.Claimsshallinclude,butnotbelimitedto,assertionsthatuseortransferofsoftware,book,document,report,film,tape,orsoundreproduction,ormaterialofanykind,deliveredhereunder,constitutesaninfringementofanycopyright,patent,trademark,tradenameand/orotherwiseresultsinunfairtradepractice.3.TheContractoragreesnottoperformanyactsthatincludeuseortransferofsoftware,book,document,report,film,tape,orsoundreproduction,ormaterialofanykind,deliveredhereunder,thatconstitutesaninfringementofanycopyright,patent,trademark,tradenameand/orotherwiseresultsinunfairtradepractice.TheContractoragreestoindemnifytheCountyforanyharmresultingfromunfairtradepractices.4.Theprovisionsinthissectionshallsurvivetheterminationand/ordurationofthecontracttern.5.Nothingcontainedwithinthisprovisionshallaffectand/oraltertheapplicationofanyotherprovisioncontainedwithinthisContract.6.Theindemnification,protection,defenseandholdharmlessobligationscontainedhereinshallsurvivetheexpiration,abandonmentorterminationofthisContract.23.InsuranceRequirements-General.(SectionXVIIIofJointAgreement)A.InsuranceRequired.BythedateofexecutionofthisContract,theContractorshallprocureandmaintainforthedurationofthisContract,insuranceagainstclaimsforinjuriestopersonsordamagestopropertywhichmayarisefrom,orinconnectionwith,theperformanceofworkhereunderbytheContractor,itsagents,representatives,employeesand/orcontractor/subcontractors.TheContractororcontractor/subcontractorshallpaythecostsofsuchinsurance.TheContractorshallfurnishseparatecertificatesofinsuranceandpolicyendorsementsfromeachcontractor/subcontractorasevidenceofcompliancewiththeinsurancerequirementsofthisContract.17AGENDA ITEM #7. e)
TheContractorisresponsibleforensuringcompliancewithalloftheinsurancerequirementsstatedherein.FailurebytheContractor,itsagents,employees,officers,contractor/subcontractors,providersand/orprovidersubcontractorstocomplywiththeinsurancerequirementsstatedhereinshallconstituteamaterialbreachofthisContract.Eachinsurancepolicyshallbewrittenonan“occurrence”form;exceptthatinsuranceona“claimsmade”formmaybeacceptablewithpriorCountyapproval.Ifcoverageisapprovedandpurchasedona“claimsmade”basis,theContractorwarrantscontinuationofcoverage,eitherthroughpolicyrenewalsorthepurchaseofanextendeddiscoveryperiod,ifsuchextendedcoverageisavailable,fornotlessthanthreeyearsfromthedateofContracttermination,and/orconversionfroma“claimsmade”formtoan“occurrence”coverageform.Nothingcontainedwithintheseinsurancerequirementsshallbedeemedtolimitthescope,applicationand/orlimitsofthecoverageaffordedbysaidpolicies,whichcoveragewillapplytoeachinsuredtothefullextentprovidedbythetermsandconditionsofthepolicy(s).Nothingcontainedinthisprovisionshallaffectand/oraltertheapplicationofanyotherprovisioncontainedwithinthisContract.B.RiskAssessmentbyContractor.Byrequiringsuchminimuminsurance,theCountyshallnotbedeemedorconstruedtohaveassessedtherisksthatmaybeapplicabletotheContractorunderthisContract,norshallsuchminimumlimitsbeconstruedtolimitthelimitsavailableunderanyinsurancecoverageobtainedbytheContractor.TheContractorshallassessitsownrisksand,ifitdeemsappropriateand/orprudent,maintaingreaterlimitsand/orbroadercoverage.C.MinimumScopeofInsurance.Coverageshallbeatleastasbroadasthefollowing:1.GeneralLiability.InsuranceServicesOfficeformnumber(CG0001)coveringCOMMERCIALGENERALLIABILITY.2.ProfessionalLiability,ErrorsandOmissionsCoverage.IntheeventthatservicesdeliveredpursuanttothisContracteitherdirectlyorindirectlyinvolveorrequireprofessionalservices,ProfessionalLiability,ErrorsandOmissionscoverageshallbeprovided.“ProfessionalServices”,forthepurposeofthisContractsection,shallmeananyservicesprovidedbyalicensedprofessionalorthoseservicesthatrequireaprofessionalstandardofcare.3.AutomobileLiability.InsuranceServicesOfficeformnumber(CA0001)coveringBUSINESSAUTOCOVERAGE,symbol1“anyauto”;ortheappropriatecoverageprovidedbysymbols2,7,8,or9.4.Workers’Compensation.Workers’Compensationcoverage,asrequiredbytheIndustrialInsuranceActoftheStateofWashington,aswellasanysimilarcoveragerequiredforthisworkbyapplicablefederalor“OtherStates”statelaw.18AGENDA ITEM #7. e)
5.StopGap/EmployersLiability.CoverageshallbeatleastasbroadastheprotectionprovidedbytheWorkers’CompensationpolicyPart2(EmployersLiability)or,instateswithmonopolisticstatefunds,theprotectionprovidedbythe“StopGap”endorsementtothegeneralliabilitypolicy.6.PropertyInsurance.InsuranceServicesOfficeformnumber(CP0010)coveringBUILDINGANDPERSONALPROPERTYCOVERAGEandInsuranceServicesOfficeformnumber(CP1030)CAUSESOFLOSS-SPECIALFORMorprojectappropriateequivalent.7.NationalFloodInsurance.TheuseofCDBGandHOMEfundsforacquisitionorconstructionpurposesinidentifiedspecialfloodhazardareasshallbesubjecttoContractormandatorypurchaseoffloodinsuranceasrequiredbySection102(a)oftheFloodDisasterProtectionActof1973(PubL.93-237).8.Builder’sRisk/InstallationFloater.TheContractorshallprocureandmaintainduringthelifeoftheContract,oruntilacceptanceoftheprojectbyKingCounty,whicheverislonger,“AllRisk”BuildersRiskInsuranceatleastasbroadasISOformnumberCPOO2O(BuildersRiskCoverageForm)withISOformnumberCPOO3O(CausesofLoss-SpecialForm)includingcoverageforcollapse,theftandpropertyintransit.Thecoverageshallinsurefordirectphysicallosstopropertyoftheentireconstructionproject,foronehundredpercentofthereplacementvaluethereof.Thepolicyshallbeendorsedtocovertheinterests,astheymayappear,ofKingCounty,Owner,ContractorandsubcontractorsofalltierswithKingCountylistedasalosspayee.D.MinimumLimitsofInsurance-CapitalProjects.TheContractorDevelopershallmaintainlimitsnolessthanthefollowing:1.CommercialGeneralLiability:$1,000,000combinedsinglelimitperoccurrencebybodilyinjury,personalinjury,andpropertydamage;andforthosepolicieswithaggregatelimits,a$2,000,000aggregatelimit.2.ProfessionalLiability,Errors,andOmissions:$1,000,000,PerClaimandintheAggregate.3.AutomobileLiability:$1,000,000combinedsinglelimitperaccidentforbodilyinjuryandpropertydamageiftheuseofmotorvehiclesiscontemplated.4.Workers’Compensation:Statutoryrequirementsofthestateofresidency.5.StopGap/EmployersLiability:$1,000,000.19AGENDA ITEM #7. e)
6.PropertyInsurance:Onehundredpercentreplacementvalueoffundedstructure.E.MinimumLimitsofInsurance-BuildingConstructionPeriod.PriortocommencementofbuildingconstructionanduntilconstructioniscompleteandapprovedbytheContractor,theContractorshallcausetheconstructioncontractorandrelatedprofessionalstoprocureandmaintainInsuranceagainstclaimsforinjuriestopersonsordamagestopropertywhichmayarisefrom,orinconnectionwiththeactivitiesrelatedtothisContract.TheContractorandCountyshallbenamedasadditionalinsuredsonliabilitypoliciesexceptWorkersCompensationandProfessionalLiability,andasNamedInsuredsonBuildersRiskpolicies.ThecostofsuchinsuranceshallbepaidbytheContractorand/oranyoftheContractor’scontractors/subcontractors.TheContractorshallmaintainlimitsnolessthanthefollowing:1.CommercialGeneralLiability:$1,000,000combinedsinglelimitperoccurrenceforbodilyinjury,personalinjuryandpropertydamageand$2,000,000intheaggregate.2.AutomobileLiability:$1,000,000combinedsinglelimitperaccidentforbodilyinjuryandpropertydamage.3.ProfessionalLiability,Errors&Omissions:$1,000,000,PerClaimandintheAggregate.4.Builder’sRiskInsurance:Onehundredpercentreplacementcostvalue.5.WorkersCompensation:StatutoryrequirementsoftheStateofresidency.6.StopGaporEmployersLiabilityCoverage:$1,000,000.F.MinimumLimitsofInsurance-ServicesAgreements:TheContractorshallmaintainlimitsnolessthanthefollowing:1.CommercialGeneralLiability:$1,000,000combinedsinglelimitperoccurrenceforbodilyinjury,personalinjuryandpropertydamageand$2,000,000intheaggregate.2.AutomobileLiability:$1,000,000combinedsinglelimitperaccidentforbodilyinjuryandpropertydamage.3.ProfessionalLiability,Errors&Omissions:$1,000,000,PerClaimandintheAggregate.4.WorkersCompensation:StatutoryrequirementsoftheStateofResidency.5.StopGaporEmployersLiabilityCoverage:$1,000,000.20AGENDA ITEM #7. e)
ParagraphsG,H,I,J,KandLbelowapplytoCapitalProjects,ConstructionProjectsandServicesContracts.G.DeductiblesandSelf-InsuredRetentions.Anydeductiblesorself-insuredretentionsmustbedeclaredto,andapprovedby,theCounty.Thedeductibleand/orself-insuredretentionofthepoliciesshallnotapplytotheContractor’sliabilitytotheCountyandshallbethesoleresponsibilityoftheContractor.H.OtherInsuranceProvisions.TheinsurancepoliciesrequiredinthisContractaretocontain,orbeendorsedtocontain,thefollowingprovisions:1.AllLiabilityPoliciesexceptProfessionalandWorkersCompensation.a.TheCounty,itsofficers,officials,employees,andagentsaretobecoveredasadditionalinsuredsasrespectsliabilityarisingoutofactivitiesperformedbyoronbehalfoftheContractorinconnectionwiththisContract.SuchcoverageshallincludeProducts-CompletedOperations.b.TotheextentoftheContractor’snegligence,theContractor’sinsurancecoverageshallbeprimaryinsuranceasrespectstheCounty,itsofficers,officials,employees,andagents.Anyinsuranceand/orself-insurancemaintainedbytheCounty,itsofficers,officials,employees,oragentsshallnotcontributewiththeContractor’sinsuranceorbenefittheContractorinanyway.c.TheContractor’sinsuranceshallapplyseparatelytoeachinsuredagainstwhomclaimismadeand/orlawsuitisbrought,exceptwithrespecttothelimitsoftheinsurersliability.2.PropertyCoveragePolicies.a.TheCountyshallbeaddedtoallPropertyCoveragePoliciesasalosspayeeasitsinterestsmayappear.b.TheCountyshallbeaddedasaNamedInsuredasitsinterestsmayappeartoallBuildersRiskpolicies.3.AllPolicies.Coverageshallnotbesuspended,voided,canceled,reducedincoverageorinlimits,exceptbythereductionoftheapplicableaggregatelimitbyclaimspaid,untilafter30dayspriorwrittennoticehasbeengiventotheCounty.I.AcceptabilityofInsurers.UnlessotherwiseapprovedbytheCounty,insuranceistobeplacedwithinsurerswithaBests’ratingofnolessthanA:VIII,or,ifnotratedwithAMBests,withminimumsurplusestheequivalentofAMBests’surplussizeVIII.21AGENDA ITEM #7. e)
ProfessionalLiability,Errors,andOmissionsinsurancemaybeplacedwithinsurerswithAMBests’ratingofB+VlI.AnyexceptionmustbeapprovedbytheCounty.If,atanytime,theforegoingpoliciesshallfailtomeettheaboverequirements,theContractorshall,uponnoticetothateffectfromtheCounty,promptlyobtainanewpolicy,andshallsubmitthesametotheCounty,withappropriatecertificatesandendorsements,forapproval.J.VerificationofCoverage.TheContractorshallfurnishtheCountywithcertificatesofinsuranceandendorsementsrequiredbythisContract.Thecertificatesandendorsementsforeachinsurancepolicyaretobesignedbyapersonauthorizedbythatinsurertobindcoverageonitsbehalf.ThecertificatesandendorsementsforeachinsurancepolicyaretobeonformsapprovedbytheCountypriortothecommencementofactivitiesassociatedwiththeContractTheCountyreservestherighttorequirecomplete,certifiedcopiesofallrequiredinsurancepoliciesatanytime.litheAgency/ContractingPartyisaMunicipalCorporationoranagencyoftheStateofWashingtonandisamemberoftheWashingtonCitiesInsuranceAuthority(WCIA)oranyotherself-insuranceriskpool,awrittenacknowledgement/certificationofcurrentmembershipwillbeattachedtotheAgreementasExhibitIandsatisfiestheinsurancerequirementsspecifiedabove.K.Subcontractors.TheContractorshallincludeallsubcontractorsasinsuredsunderitspoliciesorshallrequireseparatecertificatesofinsuranceandpolicyendorsementsfromeachsubcontractor.IftheContractorisrelyingontheinsurancecoveragesprovidedbysubcontractorsasevidenceofcompliancewiththeinsurancerequirementsofthisContract,thensuchrequirementsanddocumentationshallbesubjecttoalloftherequirementsstatedherein.L.MunicipalorStateContractorProvisions,IftheContractorisamunicipalcorporationoraContractorofthestateofWashingtonandisself-Insuredforanyoftheaboveinsurancerequirements,acertificationofself-insuranceshallbeprovidedfortheself-insuredrequirementsandattachedheretoandbeincorporatedbyreferenceandshallconstitutecompliancewiththisSection.Ifthecertificateofself-insurancedoesnotcoverallmandatoryrequirements,theContractorshallprovideseparatecertificatesandendorsementsthatdocumentcoverage.24.NondiscriminationandEqualEmploymentOpportunity.(SectionXIXofJointAgreement)A.EqualBenefitstoEmployeeswithDomesticPartnersTotheextentprohibitedbyKCCChapter12.19,KingCounty’s“EqualBenefits”(EB)ordinance,andrelatedadministrativerulesadoptedbytheCountyExecutive,asaconditionof22AGENDA ITEM #7. e)
acompetitiveawardofacontractvaluedat$25,000ormore,non-publicContractorsagreenottodiscriminateintheprovisionofemployeebenefitsbetweenanemployeeswithspouses,employeeswithdomesticpartnersoremployeeswhoresidewithlegallydomiciledmembersofhouseholdsduringtheperformanceofthisContract.FailuretocomplywiththisprovisionshallbeconsideredamaterialbreachofthisContract,andmaysubjecttheContractortoadministrativesanctionsandremediesforbreach.Whenacompetitivelyawardedcontractisvaluedat$25,000ormore,theContractorshallcompleteaWorksheetandDeclarationformforCountyreviewandacceptancepriortoContractexecution.TheEBComplianceforms,KCCChapter12.19,andrelatedadministrativerulesareincorporatedhereinbyreference.Theyarealsoavailableonlineat:http://www.kingcounty.gov/operations/procurement/Services/EgualBenefits.aspxB.NondiscriminationinEmploymentProvisionofServicesTotheextentprohibitedbyKCCChapter12.16or12.17,duringtheperformanceofthisContract,neithertheContractornoranypartysubcontractingundertheauthorityofthisContractshalldiscriminateortolerateharassmentonthebasisofsex,race,color,maritalstatus,nationalorigin,religiousaffiliation,disability,sexualorientation,genderidentityorexpressionorageexceptbyminimumageandretirementprovisions,unlessbaseduponabonafideoccupationalqualification.C.NondiscriminationinSubcontractingPracticesTotheextentprohibitedbyKCCChapter12.16or12.17,duringthetermofthisContract,theContractorshallnotcreatebarrierstoopenandfairopportunitiestoparticipateinCountycontractsortoobtainorcompeteforcontractsandsubcontractsassourcesofsupplies,equipment,constructionandservices.Inconsideringoffersfromanddoingbusinesswithsubcontractorsandsuppliers,theContractorshallnotdiscriminateagainstanypersonbecauseoftheirsex,race,color,maritalstatus,nationalorigin,religiousaffiliation,disability,sexualorientation,genderidentityorexpressionorageexceptbyminimumageandretirementprovisions,unlessbaseduponabonafideoccupationalqualification.D.CompliancewithLawsandRegulationsTheContractorshallcomplyfullywithallapplicablefederal,stateandlocallaws,ordinances,PresidentialExecutiveOrdersandregulationsthatprohibitdiscrimination,totheextentapplicable.Theselawsinclude,butarenotlimitedto,RCWChapter49.60,TitlesVIandVIIoftheCivilRightsActof1964,theAmericanwithDisabilitiesAct,andtheRestorationActof1987.Inaddition,KingCountyCodechapters12.16,12.17and12.18areincorporatedhereinbyreferenceandtherequirementsinthesecodechaptersshallspecificallyapplytothiscontract,tothefullextentapplicable.TheContractorshallfurthercomplyfullywithanyequal23AGENDA ITEM #7. e)
opportunityrequirementssetforthinanyfederalregulations,statuesorrulesincludedorreferencedinthecontractdocuments.E.SmallContractorsandSuppliersandMinorityandWomenBusinessEnterprisesOpportunitiesKingCountyencouragestheContractortoutilizesmallbusinesses,includingSmallContractorsandSuppliers(SCS),asdefinedbelow,andminority-ownedandwomen-ownedbusinessenterprisescertifiedbytheWashingtonStateOfficeofMinorityandWomen’sBusinessEnterprises(OMWBE)inCountycontracts.TheCountyencouragestheContractortousethefollowingvoluntarypracticestopromoteopencompetitiveopportunitiesforsmallbusinesses,includingSCSfirmsandminority-ownedandwomen-ownedbusinessenterprises.1.InquireaboutKingCounty’sContractingOpportunitiesProgram.KingCountyhasestablishedaContractingOpportunitiesProgramtomaximizetheparticipationofSCSintheawardofKingCountycontracts.TheProgramisopentoallSCSfirmscertifiedbyKingCountyBusinessDevelopmentandContractCompliance(BDCC).AsdeterminedbyBDCCandidentifiedinthesolicitationdocumentsissuedbytheCounty,theProgramorforwhichtheContractorelectednottoparticipateintheProgramduringthesolicitationstage,theContractorisstillencouragedtoinquirevoluntarilyaboutavailablefirms.Programmaterials,includingapplicationformsandadirectoryofcertifiedSCSfirms,areavailableatthefollowingwebsiteaddress:http://www.kingcounty.gov/bdccTheterm“SmallContractorsandSuppliers”(SCS)meansthatabusinessandthepersonorpersonswhoownandcontrolitareinafinancialconditionwhichputsthebusinessatasubstantialdisadvantageinattemptingtocompeteforpubliccontracts.TherelevantfinancialconditionforeligibilityundertheProgramissetatfiftypercentoftheFederalSmallBusinessAdministration(SBA)smallbusinesssizestandardsusingtheNorthAmericanIndustryClassificationSystemandOwners’PersonalNetWorthlessthan$750,000dollars.2.ContactOMWBEtoobtainalistofcertifiedminority-ownedandwomen-ownedbusinessenterprisesbyvisitingtheirwebsiteathttp://www.omwbe.wa.gov/orbyTollFreetelephone(866)208-1064.3.Usetheservicesavailablecommunityorganizations,consultantgroups,localassistanceoffices,theCounty,andotherorganizationsthatprovideassistanceintherecruitmentandplacementofsmallbusinesses,includingSCSfirmsandminority-ownedandwomen-ownedbusinessenterprises.F.EqualEmploymentOpportunityEffortsTheContractorshallundertakeequalemploymentopportunityeffortstoensurethatapplicantsandemployeesaretreated,withoutregardtotheirsex,race,color,maritalstatus,nationalorigin,religiousaffiliation,disability,sexualorientation,genderidentityor24AGENDA ITEM #7. e)
expressionorage.TheContractor’sequalemploymentopportunityeffortsshallincludebutnotbelimitedto,thefollowing;employment,upgrading,demotionortransfer;recruitmentorrecruitmentadvertising;layoffortermination;ratesofpayorotherformsofcompensation;andselectionfortraining,includingapprenticeships.TheContractoragreestopostinconspicuousplacesavailabletoemployeesandapplicantsforemploymentnoticessettingforththisnondiscriminationclause.InaccordancewithKCC12.16.O10.J.“equalemploymentopportunityefforts”shallmeanactiveeffortstoensureequalopportunityinemploymentthatisfreefromallformsofdiscrimination.6.CompliancewithSection504oftheRehabilitationActof1973asamended(Section504)andtheAmericanDisabilitiesActof1990asamended(ADA)PursuanttoTitleIIoftheADAandSection504theCountymustnotdiscriminateagainstpeoplewithdisabilitiesinprovidingservices,programsoractivitiesevenifthoseservices,programsoractivitiesarecarriedoutbycontractors.TheContractoragreesthatitshallprovideallprograms,servicesandactivitiestoCountyemployeesormembersofthepublicunderthisContractinthesamemannerasKingCountyisobligatedtounderTitleIIoftheADA,andSection504andshallnotdenyparticipationorthebenefitsofsuchservices,programsoractivitiestopeoplewithdisabilitiesonthebasisofsuchdisability.Failuretocomplywiththissectionshallbeamaterialbreachof,andgroundsfor,theimmediateterminationofthisContract.1.TheContractoragreestoprovidetopersonswithdisabilitiesaccesstoprograms,activitiesandservicesprovidedundertheContractoragreement,asrequiredbythedisabilityaccesslawsasdefinedbyKCC12.16;and2.TheContractorshallnotdiscriminateagainstpersonswithdisabilitiesinprovidingtheworkundertheContract.Inanysubcontractsfortheprograms,activitiesandservicesundertheircontractoragreement,theContractorshallincludetherequirementthatthesubcontractorprovidetopersonswithdisabilitiesaccesstoprograms,activitiesandservicesprovidedunderthecontractoragreementasrequiredbythedisabilityaccesslawsasdefinedbyKCC12.16,thatthesubcontractorshallnotdiscriminateagainstpersonswithdisabilitiesinprovidingtheworkundertheContractandthatthesubcontractorshallprovidethattheCountyisathirdpartybeneficiarytothatrequiredprovision.H.SanctionsforViolationsAnyviolationofthemandatoryrequirementsoftheprovisionsofthissectionshallbeamaterialbreachofcontractforwiththeContractormaybesubjecttodamages,withholdingpaymentandanyothersanctionsprovidedforbytheContractandbyapplicablelaw.25AGENDA ITEM #7. e)
I.FairHousingProtectionsTheContractorshallcomplywiththefederalFairHousingAct,PublicLaw90-284(42USC3601etseq.).TheContractorshalltakenecessaryandappropriateactionstopreventdiscriminationinanyhousing-relatedprojectunderthisContract,whichincludesrentalhousingprojectsand/orprojectsthatincluderesidentialrealestate-relatedtransactions,asrequiredbytheFederalFairHousingActasamended(42USC3601)andtheWashingtonStateLawAgainstDiscrimination(RCWChapter49.60).Residentialrealestate-relatedtransactionsincludethemakingorpurchasingofloansortheprovisionoffinancialassistanceforthepurchasing,constructing,improving,repairingormaintainingofadwelling.Rentalhousingincludesanydwellingthatisintendedforoccupancyasaresidenceforoneormorefamiliesbylease,subleaseorbygrantforaconsiderationoftherighttooccupyPremisesnotownedbytheoccupant.Inaddition,exceptforprojectslocatedinincorporatedjurisdictions,theContractorshallcomplywiththeapplicableprovisionsoftheKingCountyOpenHousingOrdinance,codifiedatChapter12.20oftheKingCountyCode,whichprohibitspracticesofhousingdiscriminationagainstanypersononthebasisofage,ancestry,color,disability,maritalstatus,nationalorigin,parentalstatus,possessionofSection8housingassistance,race,religion,retaliation,sex,andsexualorientation.ProjectsusingfederalfundsshallalsocomplywithsubsectionsJ,K,L,andMbelow.J.AdditionalFederalNondiscriminationRequirementsTheContractorshallcomplywithallapplicablefederallawsprohibitingdiscrimination,includingthefollowing:1.PresidentialExecutiveOrder11063asamendedandimplementingregulationsat24CFRPart107;2.Section109oftheHCDActof1974,asamended(42USC5301);3.TheAmericanswithDisabilitiesAct(42USC1213;47USC155,201,218and225);and4.Section504oftheRehabilitationActof1973andregulationsat24CFRPart8.K.ProhibitedDiscriminatoryActions1.Exceptwhereexpresslyauthorizedbyfederallaw,theContractormaynot,underanyprogramoractivitytowhichthisContractapplies,directlyorthroughcontractualorotherarrangements,discriminateonthegroundsofage,color,creed,familialstatus,maritalstatus,nationality,religion,race,sex,sexualorientation,orthepresenceofanyphysical,26AGENDA ITEM #7. e)
mentalorsensorydisability.Discriminatoryactionsmayincludebutarenotlimitedtothefollowing:a.Denyinganypersonaccesstofacilities,services,financialaidorotherbenefitsprovidedundertheprogramoractivity;b.DenyinganypersonservicestolimitedEnglishproficiency;c.Providinganypersonwithfacilities,services,financialairorotherbenefits,whicharedifferent,orareprovidedinadifferentformfromthatprovidedtoothersundertheprogramoractivity;d.Subjectinganypersontosegregatedorseparatetreatmentinanyfacilityorinanymatterorprocessrelatedtoreceiptofanyserviceorbenefitundertheprogramoractivity;e.Restrictinginanywayaccesstoorintheenjoymentofanyadvantageorprivilegeenjoyedbyothersinconnectionwithfacilities,services,financialairorotherbenefitsundertheprogramoractivity;f.Treatinganypersondifferentlyfromothersindeterminingwhetherthepersonsatisfiesanyadmission,enrollment,eligibility,membership,orotherrequirementorconditionwhichindividualsmustmeetinordertobeprovidedanyfacilities,servicesorotherbenefitprovidedundertheprogramoractivity;g.Denyinganypersonanyopportunitytoparticipateinaprogramoractivityasanemployee;andh.FailingtodesignandconstructfacilitiesforfistoccupancyafterJanuary26,1993,thatarereadilyaccessibletoandusablebyindividualswithdisabilitiesandfailuretoremovearchitecturalandcommunicationbarriersthatarestructuralinnatureinexistingfacilities,wheresuchremovalcanbeaccomplishedwithoutdifficultyandexpense.2.TheContractorshallnotutilizecriteriaormethodsofadministrationthathavetheeffectofsubjectingindividualstodiscriminationonthebasisofage,color,familialstatus,nationality,race,religion,sex,orsexualorientation;ormental,physical,orsensorydisability;orhavetheeffectofdefeatingofsubstantiallyimpairingaccomplishmentoftheobjectivesoftheprogramoractivitywithrespecttoindividualsofaparticularage,color,familialstatus,nationality,race,religion,sex,orsexualorientation;orthepresenceofanymental,physical,orsensorydisability.3.TheContractor,indeterminingthesiteorlocationofhousingoffacilitiesprovidedinwholeorinpartwithfundsunderthiscontract,maynotmakeselectionsofsuch27AGENDA ITEM #7. e)
siteorlocationwhichhavetheeffectofexcludingindividuals,denyingthembenefits,orsubjectingthemtodiscriminationonthegroundsofage,sex,maritalstatus,familialstatus,religion,race,creed,color,sexualorientation,nationality,orthepresenceofanysensory,mentalorphysicaldisability;orwhichhavethepurposeoreffectofdefeatingorsubstantiallyimpairingtheaccomplishmentoftheobjectivesoftheHCDActortheHUDRegulations.L.EmploymentProjectionsInallsolicitationsunderthisContract,theContractorshallstatethatallqualifiedapplicantswillbeconsideredforemployment.Thewords“equalopportunityemployer:inadvertisementsshallconstitutecompliancewiththissection.M.NoConflictwithFederalRequirementsAsindicatedbyHUDNoticeCPD04-10,afaith-basedorganization’sexemptionfromthefederalprohibitiononemploymentdiscriminationonthebasisofreligion,setforthin42USC2000e-1(a),isnotforfeitedwhentheorganizationreceivesHUDfunding.Faith-basedorganizations,likeanyotherentityparticipatinginaHUD-fundedprogram,must,however,complywithallthestatutoryrequirementsofthatparticularHUD-fundedprogram.BoththeCDBGandHOMEProgramscontainstatutoryprovisionsimposingnon-discriminationrequirementsonallsubrecipients,subgranteesorcontractors.Religiousorganizationthatbelievethatcertainnon-discriminationstatutoryrequirementsaresubstantiallyburdensomemaybeentitledtoprotectionundertheReligiousFreedomRestorationAct[42USC4000bb-2(1)]whichappliestoallfederallawanditsimplementation.Subrecipients,subgrantees,orcontractorsshouldbeawarethatanti-discriminationprovisionsofSection109oftheHousingandCommunityDevelopmentActof1974,Section282oftheHOMEInvestmentPartnershipActmayposequestionsofconformancewithTitleVIIoftheCivilRightsActof1964andfuturecourtrulingscoulddefinemorespecificallytheapplicationoftheselawstofaith-basedorganizations.IntheeventthataprovisionofthisContractisdeemedtobeinactualconflictwithfederallaw,theconflictingprovisioninthisContractshallnotapply.25.SubcontractsandPurchases.(SectionXXofJointAgreement)A.SubcontractDefined.“Subcontract”shallmeananyagreementbetweentheContractorandasubcontractororbetweensubcontractorsthatisbasedonthisContract,providedthattheterm“subcontract”doesnotincludethepurchaseof(1)supportservicesnotrelatedtothesubjectmatterofthisContract,or(2)supplies.B.WritingRequired.AnyworkorservicesassignedorsubcontractedhereundershallbeinwritingandmustbeapprovedbytheCountyasprovidedinSectionXIV.Assignment.TheContractoragreesthatitisasfullyresponsibletotheCountyfortheactsandomissionsofitssubcontractorsandtheiremployeesandagents,asitisfortheactsandomissionsofitsownemployeesandagents,asspecifiedinSectionXVII.HoldHarmlessandIndemnificationSubsectionC.28AGENDA ITEM #7. e)
C.RequiredContractTerms.TheContractorshallincludetheapplicableprovisionsofSectionsXVIII.InsuranceRequirements-General,XIX.NondiscriminationandEqualEmploymentOpportunity,andXX.SubcontractsandPurchasesineverysubcontractorpurchaseorderforgoodsorserviceswhicharepaidforinwholeorinpartwithfundsprovidedunderthisContract.TheContractoragreestoincludethefollowinglanguageverbatimineverysubcontract,provideragreement,orpurchaseagreementforservices,whichrelatetothesubjectmatterofthisContract:“Subcontractorshallprotect,defend,indemnify,andholdharmlessKingCounty,itsofficers,employees,andagentsfromanyandallcosts,claims,judgments,and/orawardsofdamagesarisingoutof,orinanywayresultingfromthenegligentactoromissionsofsubcontractor,itsofficers,employee,and/oragentsinconnectionwithorinsupportofthisContract.SubcontractorexpresslyagreesandunderstandsthatKingCountyisathirdpartybeneficiarytothisContractandshallhavetherighttobringanactionagainstsubcontractortoenforcetheprovisionsofthisparagraph.”ProjectsusingfederalfundsmustalsocomplywithsubsectionsD,E,GandH.D.DebarredContractors.DevelopercertifiesthatneithertheContractornoranypersonorentitywithacontrollinginterestintheContractorisundersuspension,debarment,voluntaryexclusionordeterminationofineligibilityfromparticipationinfederalassistanceprogramsunderPresidentialExecutiveOrder12549or12689,“DebarmentandSuspension”.TheContractorfurthercertifiesthatneithertheContractornoranypersonorentitywithacontrollinginterestintheContractorhasanyproceedingpendingtosuspend,debar,excludeordeterminethemineligiblefromparticipationinfederalassistanceprogramsunderPresidentialExecutiveOrder12549or12689.TheContractorshallnotmakeanyawardatanytimetoanycontractor,whichisdebarred,suspendedorexcluded,fromparticipationinfederalassistanceprogramsunderPresidentialExecutiveOrder12549,“DebarmentandSuspension”.TheContractorshallensurethatallsubcontractorsreceivinganyfederalfundspursuanttothisagreementhavenotbeendisbarredorsuspendedfromfederalcontractparticipation.ThismaybedonebycheckingtheSystemforAwardManagementathttps://www.sam.gov,whichlistsallsuspendedanddebarredentities.E.SubcontractingRequirements.AContractorwhichreceivesfederalfundsunderthisContractalsoshallincludethefollowingsectionsineverysubcontractorpurchaseorderforgoodsandserviceswhicharepaidinwholeorInpartwithfundsprovidedunderthisContract:SectionV.CompensationandMethodofPaymentSubsectionsF.orG.andI.,SectionsXVII.HoldHarmlessandIndemnificationSubsectionB.,XVIII.InsuranceRequirements-General,SubsectionK,XIX.NondiscriminationandEqualEmploymentOpportunityandXXII.NoConflictofInterestSubsectionB.and,ifthesubcontractisforconstruction,SectionsXXXIV.LaborStandardsandXXXV.EmploymentOpportunities.29AGENDA ITEM #7. e)
G.FederalBidGuaranteeandBondRequirements.IftheContractorissubcontractingconstructionworkunderthisContract,thesubcontractshallrequireforanyconstructioncontractsexceeding$100,000:1.Abidguaranteefromeachbidderequivalenttofivepercentofthebidprice;2.Aperformancebondfromthecontractorforonehundredpercentofthecontractprice;and3.Apaymentbondfromthecontractorforonehundredpercentofthecontractprice.TheContractormay,atitsdiscretion,requireanyoftheserequirementsonconstructioncontractsoflessthan$100,000.Thespecificrequirementsforbidguaranteesandbondsareat24CER§84.48(c)fornonprofitcorporationsand24CFR§85.36(h)formunicipalcorporationsandagenciesoftheStateofWashington.4.(ThisSection4isnotincludedintheJointAgreement,butaddedtoclarifytheapplicabilityoftheFederalBidGuaranteeandBondRequirementsforthisproject.)ForpurposesofthisAgreement,theDevelopershallobtainquotes(notbids),andispermittedtobasetheperformanceandpaymentbondamountsonthe$200,000valueoftheloanofCDBGfundsbytheCity.ThelatterisbasedupontherequirementthattheDeveloperprovideaPersonalGuaranteetoensurerepaymentoftheloaninthecaseofdefaultorinaccordancewithanyotherapplicabletermsoftheAgreementorthePersonalGuaranteedocument.H.FailuretoComplyisDefault.FailurebytheContractortorequirecompliancewiththeabovetermsandconditionsinsubcontractsshallconstituteabreachofthisContract.26.NondiscriminationinSubcontractingPractices.(SectionXXIofJointAgreement)Projectsusingfederalsfundsshallcomplywiththefollowingrequirements:A.FederalRequirements.InsolicitingsubcontractorstosupplygoodsorservicesfortheactivitiesunderthisContract,theContractorshallcomplywith24CFR85.36(e)asamendediftheContractorisamunicipalcorporationoranAgencyoftheStateofWashington,and24CFR84.44(b)(1)-(5)iftheContractorisanonprofitcorporation.Inaccordancewiththeseregulations,theContractorshalltakeallnecessaryaffirmativestepstoassureM/WBE5andlaborsurplusareafirmsareusedassubcontractorswhenpossible.AffirmativestepsshallincludethoseactionsspecifiedaboveinthissectionoftheContract.B.Non-discriminationinFederallyAssistedConstruction.TheContractorshallalsorequirecompliancewithPresidentialExecutiveOrder11246asamendedand41CFRPart60regardingnondiscriminationinbidconditionsforconstructionprojectsover$10,000.27.NoConflictofInterest.(SectionXXII.BofJointAgreement)30AGENDA ITEM #7. e)
TheContractorshallabidebytheprovisionof24CFR$4.42and570.611,ifapplicable,andbythefollowing:1.TheContractorshallmaintainawrittencodeofstandardsofconductthatshallgoverntheperformanceofitsofficer,employeesoragentsengagedintheawardandadministrationofcontractssupportedbyfundsunderthisContract.2.Noemployee,director,officeroragentoftheContractorshallparticipateintheselectionofintheaward,oradministrationofacontractsupportedbyfundsunderthiscontractifaconflictofinterest,realorapparent,wouldbeinvolved.Bywayofexample,suchaconflictwouldariseifsuchaperson,orhisorheremployer,immediatefamilymemberorpartnerhasfinancialorotherinterestintheentityselected;and3.NocoveredpersonswhoexerciseorhaveexercisedanyfunctionsorresponsibilitieswithrespecttoanyContract-assistedactivities,orwhoareinapositiontoparticipateinadecision-makingprocesstogaininsideinformationwithregardtosuchactivities,mayhaveorobtainafinancialinterestinanycontract,subcontractoragreementregardingaContract-assistedactivity,eitherforthemselvesorthosewithwhomtheyhavebusinessorimmediatefamilyties,duringtheirtenureandforoneyearthereafter.Forpurposesofthisparagraph,“coveredpersons”includesanypersonwhoisanemployee,agent,consultant,officer,ordirectoroftheContractorortheCounty.28.LaborStandards.(SectionXXXIVofJointAgreement)AgenciesreceivingaCDBGand/orHOMEawardshallcomplywithSubsectionsAandCbelow.A.Davis-BaconRequirementsForprojectsassistedwithCDBGfunds,thisSubsectionshallnotapplytoconstructionorrehabilitationofresidentialpropertyconsistingoffewerthaneightunits.ForprojectsassistedwithHOMEfunds,thisSubsectionshallnotapplytorehabilitationofrentalpropertyconsistingoffewerthantwelveunits.AllconstructionworkfundedinwholeorinpartunderthisContractmustbeperformedinaccordancewiththeDavis-BaconAct,asamended(40USCsections276(a)-276(a)f5)),theCopeland“Anti-Kickback”Act,asamended(40USC276(c))andtheContractWorkHoursandSafetyStandardsAct(40USC327etseq.)asfurtherprescribedat29CFRParts1,3,5,6and7.TheContractorwillfollowallDavis-BacondocumentationrequirementsandregularlysubmitrequireddocumentationtotheCountyshallmaintainrecordssufficienttoevidencecompliancewiththissectionandshallmakesuchrecordsavailablefortheCounty’sreviewuponrequest.31AGENDA ITEM #7. e)
AcopyofthecurrentDavis-Baconwagesmustbeincludedinallconstructionbidspecifications,contracts,and/orsubcontractsovertwothousanddollars($2,000),exceptwheretheprojectincludesacopyofapplicablestateprevailingwagesthatarehigherthancurrentDavis-Baconwages.Agenciesreceivinganawardoflocalfunds(HOF,RAHP,HB2331,VeteransandHumanServicesLevyorMIDDfunds)orfederalfundsthatdonottriggerDavis-BaconshallcomplywithSubsectionsBandCbelow:B.PrevailingWagesProjectsthatarenotsubjecttoSectionAabove,shallpayStateresidentialprevailingwageratesasaminimum.ProjectsthataresubjecttoStateprevailingwagerequirementsofchapter39.12RCWshallpayprevailingwagesatorabovetheapplicableStateclassificationrate.TheContractorshallprovideannualcertificationtotheCountyofitscompliancewiththerequirementsofthissection.ThecontractorshalladditionallymaintainrecordssufficienttoevidencecompliancewiththissectionandshallmakesuchrecordsavailablefortheCounty’sreviewuponrequest.C.UseofVolunteersTheContractorshallobtainthewrittenapprovaloftheCountypriortoallowinganyvolunteerstoperformconstructionworkonaprojectassistedunderthisContract.D.LaborCompliance(FromJointAgreementAmendmentSectionll.F.3.d.i)HCDwillpresenteachprimecontractorandtheiraccountingand/orpayrollstaffwithdetailedInformationregardingcompliancewithCDBGProgramRegulationsincluding,butnotlimitedto,federallaborstandardsfiles(Davis-BaconandRelatedActsdocumentation)andSection3regulations.PertinentfederalformswillbedistributedatapreconstructionmeetingpriortoaNoticetoProceedbeingissued.29.EmploymentOpportunitiesonAssistedConstructionProjects.(SectionXXXVofJointAgreement)A.Section3Requirements.TheworktobeperformedunderthisContractmaybesubjecttotherequirementsofSection3oftheHousingandUrbanDevelopmentActof196$,asamended,12USC1701u(Section3).ThepurposeofSection3istoensurethatemploymentandothereconomicopportunitiesgeneratedbyHUDassistanceorHUD-assistedprojectscoveredbySection3,shall,tothegreatestextendfeasible,bedirectedtolowandverylowincomepersons,particularlypersonswhoarerecipientsofHUDassistanceforhousing.32AGENDA ITEM #7. e)
B.Section3CriteriaforCapitalProjects.AssetforthintheHCDPlan,Section3regulationsfoundat24CFR§135.38applytoallProject/ProgramExhibitswhichmeetallthreeofthefollowingcriteria:1.TheProject/ProgramExhibitmustinclude$200,000ormoreintotalHUDfundsfromoneormoreprogramyears;2.TheProject/ProgramExhibitmustincludeconstructionorrehabilitationworkasataskthatwillbefundedinfullorinpartwiththeHUDfunds;and3.Theconstructionorrehabilitationworkthatwillbefundedmusthaveacontractvalue,whichexceeds$100,000.Actualcontractvalueofconstructionorrehabilitationworkisthedeterminingfactor,notacostestimate.Additionally,Section3regulationsareapplicabletoProject/ProgramExhibit(s),whichdonotinitiallymeettheabovecriteriabutwhichareamendedsoastoaddfundsorchangetheactivitiesforwhichthefundsareused.Section3regulationsdonotapplytoprojectsthatinclude$200,000ormoreinHUDfundswhenthefundsarebeingusedforacquisitionand/orprofessionalservicesonlyandnotforconstructionorrehabilitationwork.30.OtherGeneralRequirements.A.Theproposedprojectisaneligibleactivity(EconomicDevelopment—CommercialRehabilitation)andmeetstheCDBGprogram’snationalobjectiveofbenefittinglow-andmoderate-incomepersonsonanareabasis.ThecombinedDowntownandSouthRentonsubareas(asdesignatedintheCityCenterCommunityPlan)arelocatedwithinthree(3)censustractblockgroups(Nos.53033025300-3,-4and-5)whereatleastfifty-onepercent(51%)oftheresidentsareconsideredtomeetlow-andmoderate-incomelevelsasdefinedbyHUDguidelines.B.Allworkmustbedoneinaccordancewithindustrystandards,allapplicablelocal,stateandfederalcodes,ordinances,permitandinspectionrequirements,andrulesandregulationsfortheCDBGprogram.C.AnyrenovationworkundertakenpriortotheCity’sfinalwrittenauthorizationtobeginconstructionisnoteligibleforassistanceunderthisloanagreement.D.AllrehabilitationworkundertakeninconjunctionwiththeProgramandthisAgreementwhichexceedsapprovedfinancialassistanceshallbebornebytheDeveloper.E.AllconstructionmanagementshallbetheresponsibilityoftheDeveloper.AllworkundertakenissubjecttotheDavis-BaconAct.33AGENDA ITEM #7. e)
F.UniformRelocationAct.DeveloperagreestocomplywithallapplicableprovisionsoftheUniformRelocationAssistanceandRealPropertyAcquisitionPoliciesActof1970,asamended,42U.S.C.§4601etseq.(the“URA”).Developerisresponsibleforallacquisitionandrelocationcostswhendisplacementoftenantsoccursasaresultoftheproject,inaccordancewiththeURA.G.Contacts.Forpurposesofsubmittingnoticesorotherwrittencorrespondencebetweenpatties,thefollowingwillserveasprimarycontacts:DEVELOPER:DaveBrethauerCortona,[CC1023263rdAvenueSouthSeattle,WA9817$CITY:JohnW.CollumCommunity&EconomicDevelopmentDepartment1055SouthGradyWayRenton,WA9805731.PropertyMaintenance.ForthedurationofthisAgreement,theDevelopershall:A.MaintainallimprovementsincompliancewithallrequirementsundertheRentonMunicipalCode(RMC).B.Beresponsibleforassuringthepropertyismaintainedingoodrepairandfreefromaccumulationofdebris,graffitiorwastematerials;andtakeallotheractionsnecessarytomaintainandensuretheneatandcleanappearanceofthesurroundingstreetscapearea.Duringrehabilitationoftheproperty,theDevelopershallmaintainawell-keptconstructionsite.C.ProvidetheCity,itsagentsand/oritsrepresentativetherighttoinspectthePropertyatanyreasonablehourofthedaytodetermineDeveloper’scompliancewiththeserequirements.32.MiscellaneousProvisions.A.IndependentContractor.TheDevelopershallperformallobligationsunderthisAgreementasanindependentcontractor;neitheritnoritsemployeesshallbeconsideredemployees,partnersoragentsoftheCity,norshallitoritsemployeesbeentitledtoanybenefits,insurance,pension,orworkers’compensationasanemployeeoftheCity.34AGENDA ITEM #7. e)
B.Assignment.TheDevelopershallnotassignortransferanyinterestinthisAgreementwithoutobtainingthepriorwrittenapprovaloftheCity.C.SubcontractstotheAgreement.TheDevelopershallnotenterintoasubcontractforanyoftheservicesperformedunderthisAgreementwithoutobtainingthepriorwrittenapprovaloftheCity.D.WrittenAmendments.ThisAgreementmaybemodifiedonlybyawrittenamendmentoraddendumthathasbeenexecutedandapprovedbytheappropriateofficialsshownonthesignaturepageofthisAgreement.E.RequiredApprovals.NeithertheDevelopernortheCityisboundbythisAgreementuntilitisapprovedbytheappropriateofficialsshownonthesignaturepageofthisAgreement.F.ArticleCaptions.ThecaptionsappearinginthisAgreementareforconvenienceonlyandarenotapartofthisAgreement;theydonotinanywaylimitoramplifytheprovisionsofthisAgreement.G.AnnualReports.DevelopershallsubmitanannualreporttotheCityprovidingastatusofthebuilding’sleasingactivityandoccupancystatus,includingastatusreportonitemsdiscussedinSection7.Cabove.ThereportwillassisttheCityindeterminingwhethertheDeveloperismeetingrequirementsnecessarytoachieveloanforgiveness.Thefirstreportshallbesubmittedsix(6)monthsafterstartofconstructionandtheneveryoneyearanniversaryofthefirstreportthereafterforfive(5)years.H.ProjectPoster.FollowingreceiptofaNoticetoProceedwithbuildingimprovements,theDevelopershallinstalla“ComingSoon”posterinabuildingwindowfacingSouth3tdStreetannouncingtheproject.Thepostershall:i.Measureaminimum48inchesby72inches.ii.Includearendering(s)oftheproject(southeastcornerperspectivepreferred).iii.Includeafloorplanofthestreetlevelspace.iv.Providealistofprimaryprojectdetails(projectname,size,amenities,specialfeatures,completiondate,developer,contractor,andanygroundfloortenantsthathavesignedleases).v.Includethefollowing:“AprojectfundedbytheCityofRentonCommunityDevelopmentBlockGrantProgram,”andlistthenamesofthecurrentMayorandCityCouncilmembers.35AGENDA ITEM #7. e)
I.Severability.IfanyprovisionofthisAgreementisdeterminedtobeunenforceableorinvalid,suchdeterminationshallnotaffectthevalidityoftheotherprovisionscontainedinthisAgreement.FailuretoenforceanyprovisionofthisAgreementdoesnotaffecttherightsofthepartiestoenforcesuchprovisioninanothercircumstance,nordoesitaffecttherightsofthepartiestoenforceanyotherprovisionofthisAgreementatanytime.J.Federal,StateandLocalRequirements.TheDeveloperisresponsibleforfullcompliancewithallapplicablefederal,state,andlocallaws,rulesandregulations.K.NoBenefitforThirdParties.TheservicestobeperformedbytheDeveloperpursuanttothisAgreementwiththeCityareintendedsolelyforthebenefitoftheCity,andnobenefitisconferredhereby,norisanycontractualrelationshipestablishedherewith,uponorwithanypersonorentitynotapartytothisAgreement.NosuchpersonorentityshallbeentitledtorelyontheDeveloper’sperformanceofitsserviceshereunder,andnorighttoassertaclaimagainsttheCityortheDeveloper,itsofficers,employees,agentsorcontractorsshallaccruetotheDeveloperortoanysubcontractors,independentlyretainedprofessionalconsultant,supplier,fabricator,manufacturer,lender,tenant,insurer,suretyoranyotherthirdpartyasaresultofthisAgreementortheperformanceornon-performanceoftheDeveloper’sserviceshereunder.C.Non-RelianceofParties.PartiesexplicitlyagreethattheyhavenotrelieduponanyearlieroroutsiderepresentationsotherthanwhathasbeenincludedinthisAgreement.Furthermore,neitherpartyhasbeeninducedtoenterintothisAgreementbyanythingotherthanthespecificwrittentermssetforthherein.M.ForceMajeure.IntheeventthatDeveloperispreventedordelayedintheperformanceofanyofitsobligationsunderthisAgreementbyreason(s)beyondthereasonablecontrolofDeveloper(each,a“ForceMajeureEvent”),thenDeveloper’sperformanceshallbeexcusedduringtheForceMajeureEvent.UponremovalorterminationoftheForceMajeureEvent,DevelopershallpromptlyperformtheaffectedobligationsinanorderlyandexpeditedmannerunderthisAgreementorprocureasubstituteforsuchobligationorperformancethatisreasonablysatisfactorytoRenton.Developershallnotbeexcusedbymereeconomichardshiporbymisfeasanceormalfeasanceofitsdirectors,officersoremployees.Asusedherein,ForceMajeureEventsinclude,butarenotlimitedto,ActsofGod,war,actsofdomesticterrorismorviolence,civilcommotion,labordisputes,strikes,earthquakes,fire,floodorothercasualty,shortagesoflaborormaterials,governmentregulationsorrestrictions,extremeweatherconditions,anyothercauseoreventnotreasonablywithinthecontrolofeitherparty,oranyfailureordelayintheperformancebyRentonoranythirdpartythatisnotanemployee,agentorcontractorofDeveloper.ThePartiesshalluseallcommerciallyreasonableeffortstoeliminateorminimizeanydelaycausedbyaForceMajeureEvent.N.GoverningLawandVenue.ThisAgreementshallbegovernedandconstruedinaccordancewiththelawsoftheStateofWashington.AnyactionforbreachofthisAgreement36AGENDA ITEM #7. e)
ortoenforceornullifyanyprovisionofthisagreementshallbeinstitutedonlyinacourtofappropriatejurisdictioninKingCounty,Washington.0.EntireAgreement.ThisAgreementformstheentireAgreementbetweentheCityandtheDeveloper.Anypriorrepresentations,promises,agreements,oralorotherwise,betweentheparties,whicharenotembodiedinthiswriting,shallbeofnoforceoreffect.(Signaturesappearonfollowingpages)37AGENDA ITEM #7. e)
INWITNESSWHEREOF,thisAgreementhasbeendulyexecutedanddeliveredandiseffectiveonthelatestofthedatessetforthbelow.DEVELOPER:By:Date:NoeName:_______________________Title:P2ei.tJr£LBy:__________________________Date:2tName:/71OI2’Ct,r*kazLerTitle:________________________3$AGENDA ITEM #7. e)
NotarySealmustbewithinboxLLC/CORPORATEFORMOFACKNOWLEDGMENTSTATEOFJprrvJCOUNTYOF<,J&Onthisdayofkr-,20ibeforemepersonallyappeared:÷OJ(AcH6C-e-Ytomeknowntolethe/wJ-va______of-f’cv—,andacknowledgedthesaidinstrumenttobethefreeandvoluntaryactanddeedofsaidlimitedliabilitycompany/corporation,fortheusesandpurposesthereinmentioned,andeachonoathstatedthathe/shewasauthorizedtoexecutesaidinstrumentandthatthesealaffixed,ifany,isthecorporatesealofsaidcorporation.NotaryPbIicinandforthetateof,rJtrJNotary(Print))J1hLA-I2lhcMyappointmentexpires:-(-17Dated:/0-L//ç39AGENDA ITEM #7. e)
CITYOFRENTONBy:____________DenisLaw,MayorATTEST:By:___________________JasonA.Seth,CityClerkAPPROVEDASTOFORMBy:LawrenceJ.Warren,CityAttorney40AGENDA ITEM #7. e)
EXHIBITAPROJECTBUDGETAGENDA ITEM #7. e)
EXHIBITAPROJECTBUDGETItemCostConsultant$33,7S0.00Permits$500.00Financing$10,000.00Sitework$55,154.00Masonry$10,000.00Metals/Awning$53,395.00ThermalandMoistureProtection$36,060.00DoorsandWindows$21,163.00Finishes$15,275.00Mechanical$12,132.00Electrical$11,210.00GeneralRequirements$56,243.00Signage$10,000.00Subtotal$385,482.00ContingencyonSubtotal(5%)$19,274.10ContingentSubtotal$404,756.10ProfitandOverheadonContingentSubtotal(15%)$60,713.42ContingentP&OSubtotal$465,469.52SalesTaxonContingentP&OSubtotal(9.5%)$44,219.60TotalProjectBudget$5O9,689.12PrevailingWagesTheCityisutilizingCDBGmoniestofundfaçadeimprovementsforthisproject.FederalprevailingwageratesaretheminimumrequirementwhenverCDBGfundsareusedforconstruction.ProjectsreceivingfederalfundsarerequiredtofollowfederalDavisBaconwageraterequirementsTheDeveloperhascertifiedthatfederalwagerequirementsarereflectedintheprojectbudgetabove.AGENDA ITEM #7. e)
EXHIBITBPROMISSORYNOTEAGENDA ITEM #7. e)
PROMISSORYNOTE$200,000__________________________DateRenton,WACity,StateFORVALUERECEIVED,Cortona,LLC,hereinafter“Maker”promisestopaytotheCityofRenton,aWashingtonmunicipalcorporation,hereinafter“Holder”ororder,at1055SouthGradyWay,Renton,Washington98057,orothersuchplaceasmaybedesignatedbytheHolderfromtimetotime,theprincipalsumoftwohundredthousanddollars($200,000),withinterestontheunpaidprincipalattherateofzeropercent(0%)perannumasfollows:1.PAYMENTS:DuringthetermofthisNote,Makershallmakenopaymentsofprincipalorinterestprovided,however,thatifMakershallbefoundindefaultofanyofthetermsorconditionsofthisNote,thenthefullbalanceshallbecomeimmediatelydueandpayable.PaymentoftheprincipalamountofthisNotewillbeforgivenfiveyearsfollowingtherecordeddateoftheattachedDeedofTrust(ExhibitA)aslongas(a)theMakerremainstheownerofthebuildingandpropertythatisfinancedinfullorinpartbythisNoteandsecuredbyaDeedofTrustandaPersonalGuarantee,(b)remainscurrentonCityandCountypropertytaxesandfees,(c)maintainsinsuranceonthepropertyinaccordancewiththetermsoftheFaçadeImprovementAgreement,and(d)maintainsthefaçadeimprovementsfundedthroughthisloanandMaker’sfundsingoodrepairandfreefromanyaccumulationofdebris,graffiti,orwastematerials,andtakesallotheractionsnecessarytomaintainandensuretheneatandcleanappearanceofthesurroundingstreetscapearea.“Owner”meansthattheMakerownsthepropertyinfeesimpleanddoesnotenterintoaleasepurchase,landsalescontract,orothersimilarpropertyagreement.2.DUEDATE:TheentirebalanceofthisNotetogetherwithanyandallinterestaccruedthereonshallbedueandpayableinfullonMarch31,2021,subjecttothetermsoftheFaçadeImprovementAgreement.3.ALLOCATIONOFPAYMENTS:Eachpaymentshallbecreditedfirsttoanylatechargedue,secondtointerest,andtheremaindertoprincipal.4.PREPAYMENT:MakermayprepayallorpartofthebalanceowedunderthisNoteatanytimewithoutpenalty.5.USEFORFACADEIMPROVEMENTONLY:ThisNoteevidencesaloanbytheHoldertotheMakerfortheexclusivepurposeoffaçadeimprovementstorealestatelocatedat724NOTE-Page1AGENDA ITEM #7. e)
SouthThirdStreet,Renton,Washington(taxparcelID#7231502210)(hereafterreferredtoasthe“Property”),asdescribedintheFaçadeImprovementAgreementbetweentheMakerandtheHolder,dated______________,20_.MakeragreestocomplywithallprovisionsoftheFaçadeImprovementAgreementincarryingouttherehabilitationwork.ProceedsoftheloannotrequiredfortherehabilitationshallbeappliedagainsttheprincipalbalanceoftheNote.6.INTERESTINEVENTOFDEFAULT:UpondefaultofanyofthetermsandconditionsofthisNote,thisNotewillaccrueinterestatarateoffourpercent(4%)perannumuntiltheprincipalamountofthisNoteispaid.7.LOANFORGIVENESS:InadditiontothetermsprovidedunderSection1aboveregardingtheprincipalamountofthisNotebeingforgivenfive(5)yearsfollowingtherecordeddateoftheDeedofTrust,theMakermustalsoreachandmaintainanacceptablelevelofgroundleveloccupancyoftheProperty.UponcompletionofthefaçadeimprovementsfundedthroughtheFaçadeImprovementAgreementandrecordationoftheDeedofTrust,Makerhasonehundredeighty(180)daystoinstalltenantswithinatleastfiftypercent(50%)ofthebuilding’sgroundlevelcommercialspacesquarefootage,andwithinone(1)yeartoachieveatleasteightypercent(80%)occupancyofthebuilding’sgroundlevelcommercialspacesquarefootage.Shouldthegroundlevelcommercialspacesquarefootagenotreacheightypercent(80%)occupancywithinthisone(1)-yearperiodornotmaintaineightypercent(80%)occupancythroughoutthetermoftheNote,theMakershallnotifytheHolderimmediately.Holder,atitssolediscretion,maythengrantMakeraninety(90)-daygraceperiodforMakertoshowproofofactiveandaggressiveeffortstoobtaintenantsforthepropertytoachieveatleasteightypercent(80%)occupancy,includingbutnotlimitedto,theengagementofaprofessionalcommercialbrokeragefirm.Proofofeffortstoobtaintenantsmayalsoincludeinvoicesforadvertising,copiesofadvertisementruns,andanyotherproofofactivemarketingoftheProperty.IftheMakerhasexecutedalease(s)toreachatleasteightypercent(80%)occupancyofthegroundfloorcommercialspacesquarefootageduringthisgraceperiod,Holder,atitssolediscretion,maythengrantMakeranadditionalninety(90)-daygraceperiodtoensurethatthetenant(s)occupythespacetoachieveatleasteightypercent(80%)occupancy.“Occupancy”referstohavinganactivebusinessopentothepublic,ortenantinthecaseofmixeduseproperties.Useofthebuildingforstoragedoesnotqualifyasoccupancy.Aftertheinitialone(1)-yearperiodandexpirationofanygraceperiodsthathavebeengrantedbytheHolderduringthetermoftheNote,ifthegroundfloorcommercialspacesquarefootageisnotatleasteightypercent(80%)occupied,oranyoftheothertermsforloanforgivenessunderSection1havenotbeenmet,Makerwillbenotifiedthattheloanshallbecomeimmediatelydueandpayable.NOTE-Page2AGENDA ITEM #7. e)
8.HOLDER’SRIGHTSINEVENTOFDEFAULT:AttheHolder’soption,breachordefaultinanyoftheabove-describedconditionsinthisNoteorintheDeedofTrustshallcausethisNotetobecomedueandpayablewithoutnotice,andtheprincipalwillnotbeforgivenfromandafterthedateofthebreachordefault.Failuretoexercisethisoptionshallnotconstituteawaiveroftherighttoexercisethisoptionintheeventofanysubsequentdefault.9.CURRENCY:AllprincipalandinterestpaymentsshallbemadeinlawfulmoneyoftheUnitedStates.10.DUEONSALE:IfthisNoteissecuredbyaDeedofTrustoranyotherinstrumentsecuringrepaymentofthisNote,thepropertydescribedinsuchsecurityinstrumentsmaynotbesoldortransferredwithouttheHolder’sconsent.Uponbreachofthisprovision,HoldermaydeclareallsumsdueunderthisNoteimmediatelydueandpayable,unlessprohibitedbyapplicablelaw.11.ACCELERATION:IfMakerfailstoabidebythetermsoftheFaçadeImprovementAgreement,orifMakerdefaultsunderanyDeedofTrustoranyotherinstrumentssecuringrepaymentofthisNote,andsuchdefaultisnotcuredwithinthirty(30)daysafterwrittennoticeofsuchdefault,thenHoldermay,atitsoption,declarealloutstandingsumsowedonthisNotetobeimmediatelydueandpayable,inadditiontoanyotherrightsorremediesthatHoldermayhaveundertheDeedofTrustorotherinstrumentssecuringrepaymentofthisNote.12.ATTORNEYS’FEESANDCOSTS:MakershallpayallcostsincurredbyHolderincollectingsumsdueunderthisNoteafteradefault,includingreasonableattorneys’fees,whetherornotsuitisbrought.IfMakerorHoldersuestoenforcethisNoteorobtainadeclarationofitsrightshereunder,theprevailingpartyinanysuchproceedingshallbeentitledtorecoveritsreasonableattorneys’feesandcostsincurredintheproceeding(includingthoseincurredinanybankruptcyproceedingorappeal)fromthenon-prevailingparty.13.WAIVEROFPRESENTMENTS:Makerwaivespresentmentforpayment,noticeofdishonor,protestandnoticeofprotest.14.NON-WAIVER:NofailureordelaybyHolderinexercisingHolder’srightsunderthisNoteshallbeawaiverofsuchrights.15.SEVERABILITY:IfanyclauseoranyotherportionofthisNoteshallbedeterminedtobevoidorunenforceableforanyreason,suchdeterminationshallnotaffectthevalidityorenforceabilityofanyotherclauseorportionofthisNote,allofwhichshallremaininfullforceandeffect.NOTE-Page3AGENDA ITEM #7. e)
16.INTEGRATION:TherearenoverbalorotheragreementswhichmodifyoratfectthetermsofthisNote.ThisNotemaynotbemodifiedoramendedexceptbywrittenagreementsignedbyMakerandHolder.17.CONFLICTINGTERMS:IntheeventofanyconflictbetweenthetermsofthisNoteandthetermsofanyDeedofTrustorotherinstrumentssecuringpaymentofthisNote,thetermsofthisNoteshallprevail.18.EXECUTION:EachMakerexecutesthisNoteasaprincipalandnotasasurety.IfthereismorethanoneMaker,eachsuchMakershallbejointlyandseverallyliableunderthisNote.19.COMMERCIALPROPERTY:MakerrepresentsandwarrantstoHolderthatthesumsrepresentedbythisNotearebeingusedforbusiness,investmentorcommercialpurposes,andnotforpersonal,familyorhouseholdpurposes.20.ORALAGREEMENTS:OralAgreementsororalcommitmentstoloanmoney,toextendcredit,ortoforebearfromenforcingrepaymentofadebtarenotenforceableunderWashingtonlaw.21.DEFINITIONS:ThewordMakershallbeconstruedinterchangeablywiththewordsMakerorPayerandthewordHoldershallbeconstruedinterchangeablywiththewordsLenderorPayee.InthisNote,singularandpluralwordsshallbeconstruedinterchangeablyasmaybeappropriateinthecontextandcircumstancestowhichsuchwordsapply.22.ADDITIONALTERMSANDCONDITIONS:(checkone)a.()NONEORb.(V)AssetforthontheFaçadeImprovementAgreement,attachedheretoas“ExhibitB”whichisincorporatedbythisreference.(Note:Ifneitheraorbischecked,thenoption“a”applies)NOTE-Page4AGENDA ITEM #7. e)
23.THISNOTEISSECUREDBY()DEEDOFTRUST,()MORTGAGE,__________OFEVENDATE.Maker(signatures)By________________________________________By________________________________________GeorgeBrethauerMonicaBrethauerMember,CortonaLLCMember,CortonaLLCMaker’saddressforallnoticesgivenbyHolderunderthisNote:1023263rdAvenueSouthSeattle,WA9817$DONOTDESTROYTHISNOTEWHENPAIDthisoriginalNotetogetherwiththeDeedofTrustsecuringthesamemustbesurrenderedtotheTrusteeforcancellationandretentionbeforeanyreconveyancecanbeprocessed.NOTE-Page5AGENDA ITEM #7. e)
NOTE-Page6AGENDA ITEM #7. e)
EXHIBITADEEDOFTRUSTNOTE-Page7AGENDA ITEM #7. e)
EXHIBITBFACADEIMPROVEMENTAGREEMENTNOTE-Page8AGENDA ITEM #7. e)
EXHIBITCPERSONALGUARANTEEAGENDA ITEM #7. e)
PERSONALGUARANTEETHISGUARANTEEdatedthis______dayof-,20From:GeorgeBrethauerandMonicaBrethauer(TheGuarantor)To:CityofRentonof1055SouthGradyWay,Renton,WA98057(TheLender)Re:CortonaLLCof1023263tdAveSouth,Seattle,WA98178(TheDebtor)INCONSIDERATIONOFtheLenderextendingaloanoftwohundredthousanddollars($200,000)totheDebtorplusothervaluableconsideration,thereceiptandsufficiencyofwhichisherebyacknowledged,theGuarantorpersonallyguaranteestheprompt,fullandcompleteperformanceofanyandallpresentandfutureduties,obligationsandindebtedness(the“Debt”)duetotheLenderbytheDebtor,uptoalimitof$200,000,underthetermsofthePromissoryNotedated____________________________signedbyDebtor(the“Agreement”)andunderthefollowingtermsandconditions:1.TheGuarantorguaranteesthatDebtorwillpromptlypaythefullamountofprincipalandinterestoftheDebtasandwhenthesamewill,inanymanner,beorbecomedue,eitheraccordingtothetermsandconditionsprovidedbytheAgreementoruponaccelerationofthepaymentundertheAgreementbyreasonofadefault;2.TheGuarantoragreesnottopledge,hypothecate,mortgage,sellorotherwisetransferallorsubstantiallyallofGuarantor’sassetswithoutthepriorwrittenconsentoftheLender;3.Totheextentpermittedbylaw,theGuarantorwaivesalldefenses,counterclaimsoroffsetsthatarelegallyavailabletotheGuarantorwithrespecttothepaymentoftheDebtofDebtor;and4.IfGuarantorismarried,GuarantorherebyexpresslyagreesthatGuarantorisactingonbehalfofGuarantor’smaritalcommunity,thatthisGuaranteebenefitsorisexpectedtobenefitthecommunity,andthatrecoursemaybehadagainstbothGuarantor’sseparatepropertyandcommunityproperty.ThisPersonalGuaranteeshallbeconstruedexclusivelyinaccordancewith,andgovernedby,thelawsoftheStateofWashington.AnydisputearisinghereundermayonlybebroughtwithintheKingCountySuperiorCourt,StateofWashington.ThisPersonalGuaranteeembodiestheentirepromiseofGuarantortopersonallyguaranteeDebtor’sDebtandsupersedesallprioragreementsandunderstandingsrelatingtothesubjectmatterhere,whetheroralorinwriting.ThisPersonalGuaranteemaynotbeassignedortransferredwithoutawrittendocument,signedbytheGuarantor,Debtor,andLender,permittingsuchassignmentortransfer.Datedthis
__________dayof_________________,20.GeorgeBrethauer—GuarantorMonicaBrethauer—GuarantorAGENDA ITEM #7. e)
EXHIBITDDEEDOFTRUSTAGENDA ITEM #7. e)
Whenrecordedreturnto:CityClerkCityofRenton1055SouthGradyWayRenton,WA98057-3232DEEDOFTRUSTAssessor’sPropertyParcel!TaxAccountNumber:7231502210ReferenceNumber(s)ofDocumentsassignedorreleased:N/AGrantor(s):Grantee(s):1.CortonaLLC,aWashingtonLimited1.CityofRenton,aWashingtonMunicipalLiabilityCompanyCorporationLEGALDESCRIPTION:(Abbreviatedorfulllegalmustgohere.AdditionallegalonExhibitA)Ptn.Lots11&12,BIk25TownofRentonVol1Pg135DEEDOFTRUSTTHISDEEDOFTRUST,madethis____________dayof_______________________________betweenCortonaLLC,aWashingtoncorporation/limitedliabilitycompany,havingitsofficeat1023263rdAvenueSouth,Seattle,WA98178(“Grantor”),FirstAmericanTitleCompany,havingitsofficeat818StewartStreet,Suite800,Seattle,WA98101(“Trustee”),andtheCityofRenton,aWashingtonmunicipalcorporation,havingitsofficeat1055SouthGradyWay,Renton,Washington98057(“Beneficiary”).WITNESSETH:Grantorherebybargains,sells,andconveystoTrusteeintrust,withpowerofsale,thefollowingdescribedrealpropertyinKingCounty,Washington:SeeExhibitA,LegalDescription,attachedheretoandincorporatedhereinbythisreference.KingCountyParcelNumber:7231502210,whichrealpropertyisnotusedprincipallyforagriculturalorfarmingpurposes,togetherwithallthetenements,hereditaments,andDEEDOFTRUST-Page1AGENDA ITEM #7. e)
appurtenancesnoworhereafterthereuntobelongingorinanywiseappertaining,andtherents,issues,andprofitsthereof.ThisDeedofTrustisforthepurposeofsecuringperformanceofeachagreementofGrantorcontainedinthisDeedofTrust,andpaymentofthesumoftwohundredthousanddollars($200,000)withinterest,inaccordancewiththetermsofaPromissoryNoteofevendateherewith,payabletoBeneficiaryororder,andmadebyGrantor,andallrenewals,modifications,andextensionsthereof,andalsosuchfurthersumsasmaybeadvancedorloanedbyBeneficiarytoGrantor,togetherwithinterestthereonatsuchrateasshallbeagreedupon,andtheperformanceofthecovenantsandagreementsoftheGrantor,whichfollow.ThePromissoryNoteisdescribedasfollows:OnePromissoryNote,describingaDeferredPaymentLoanintheprincipalamountoftwohundredthousanddollars($200,000).UpondefaultofanyofthetermsandconditionsoftheNote,interestwillaccrueattherateoffourpercent(4%)perannumandtheprincipalbalancewillbecomedueandpayable.DUEDATE:ThedateoftotalforgivenessshallbefiveyearsaftertherecordationofthisDeedofTrust,estimatedtobeMarch31,2021,providedGrantorhaspaidallothersums,withinterest,advancedtoprotectthesecurityofthisDeedofTrust,andcompliedwithallcovenantsandagreements.A.ToprotectthesecurityofthisDeedofTrust,Grantorcovenantsandagrees:1.Tokeepthepropertyingoodconditionandrepair;topermitnoaccumulationofdebris,graffiti,orwastethereof;totakeallactionsnecessarytomaintainandensuretheneatandcleanappearanceofthesurroundingstreetscapearea;tocompleteanybuilding,structure,orimprovementbeingbuiltorabouttobebuiltthereon;torestorepromptlyanybuilding,structure,orimprovementthereonwhichmaybedamagedordestroyed;andtocomplywithalllaws,ordinances,regulations,covenants,conditions,andrestrictionsaffectingtheproperty.2.Topaybeforedelinquentalllawfultaxesandassessmentsupontheproperty;tokeepthepropertyfreeandclearofallothercharges,liens,orencumbrancesimpairingthesecurityofthisDeedofTrust.3.TokeepallbuildingsnoworhereaftererectedonthepropertydescribedhereincontinuouslyinsuredagainstlossbyfireorotherhazardsinanamountnotlessthanthetotaldebtsecuredbythisDeedofTrust.AllpoliciesshallbeheldbytheBeneficiary,andbeinsuchcompaniesastheBeneficiarymayapproveandhavelosspayablefirsttotheBeneficiary,asitsinterestmayappear,andthentotheGrantor.TheamountcollectedunderanyinsurancepolicymaybeapplieduponanyindebtednessherebysecuredinsuchDEEDOFTRUST-Page2AGENDA ITEM #7. e)
orderastheBeneficiaryshalldetermine.SuchapplicationbytheBeneficiaryshallnotcausediscontinuanceofanyproceedingstoforeclosethisDeedofTrust.Intheeventofforeclosure,allrightsoftheGrantorininsurancepoliciestheninforceshallpasstothepurchaserattheforeclosuresale.4.TodefendanyactionorproceedingpurportingtoaffectthesecurityhereofortherightsorpowersofBeneficiaryorTrustee,andtopayallcostsandexpenses,includingcostoftitlesearchandattorney’sfeesinareasonableamount,inanysuchactionorproceeding,andinanysuitbroughtbyBeneficiarytoforeclosethisDeedofTrust.5.Topayallcosts,fees,andexpensesinconnectionwiththisDeedofTrust,includingtheexpensesoftheTrusteeincurredinenforcingtheobligationsecuredherebyandTrustee’sandattorney’sfeesactuallyincurred,asprovidedbystatute.6.ShouldGrantorfailtopaywhendueanytaxes,assessments,insurancepremiums,liens,encumbrances,orotherchargesagainstthepropertyhereinabovedescribed,Beneficiarymaypaythesame,andtheamountsopaid,withinterestattheratesetforthinthenotesecuredhereby,shallbeaddedtoandbecomeapartofthedebtsecuredinthisDeedofTrust.7.ThisDeedofTrustandPromissoryNotewereexecutedanddeliveredtosecuremoniesadvancedtotheGrantorbytheBeneficiaryasoronaccountofaloanevidencedbythePromissoryNote,forthepurposeofrehabilitatingtheproperty.8.DUEONSALE:ThepropertydescribedinthissecurityinstrumentmaynotbesoldortransferredwithouttheBeneficiary’sconsent.Uponbreachofthisprovision,BeneficiarymaydeclareallsumsdueunderthenoteandDeedofTrustimmediatelydueandpayable,unlessprohibitedbyapplicablelaw.9.NOFURTHERENCUMBRANCES:AsanexpressconditionofBeneficiarymakingtheloansecuredbythisDeedofTrust,Grantorshallnotfurtherencumber,pledge,mortgage,hypothecate,placeanylien,chargeorclaimupon,orotherwisegiveassecuritythepropertyoranyinterestthereinnorcauseorallowbyoperationoflawtheencumbranceoftheTrustEstateoranyinterestthereinwithoutthewrittenconsentofaBeneficiaryeventhoughsuchencumbrancemaybejuniortotheencumbrancecreatedbythisDeedofTrust.EncumbranceofthepropertycontrarytotheprovisionsofthisprovisionshallconstituteadefaultandBeneficiarymay,atBeneficiary’soption,declaretheentirebalanceofprincipalandinterestimmediatelydueandpayable,whetherthesamebecreatedbyGrantororanunaffiliatedthirdpartyassertingajudgmentlien,mechanic’sormaterialmen’slienoranyothertypeofencumbranceortitledefect.DEEDOFTRUST-Page3AGENDA ITEM #7. e)
B.ITISMUTUALLYAGREEDTHAT:1.Intheeventanyportionofthepropertyistakenordamagedinaneminentdomainproceeding,theentireamountoftheawardorsuchportionasmaybenecessarytofullysatisfytheobligationsecuredbythisDeedofTrustshallbepaidtoBeneficiarytobeappliedtosaidobligation.2.ByacceptingpaymentofanysumsecuredbythisDeedofTrustafteritsduedate,Beneficiarydoesnotwaiveitsrighttorequirepromptpaymentwhendueofallothersumssosecuredortodeclaredefaultforfailuretosopay.3.TheTrusteeshallreconvey,attheGrantor’ssoleexpense,alloranypartofthepropertycoveredbythisDeedofTrusttothepersonentitledthereto,onwrittenrequestoftheGrantorandtheBeneficiary,oruponsatisfactionoftheobligationsecuredandwrittenrequestforreconveyancemadebytheBeneficiaryorthepersonentitledthereto.4.UpondefaultbyGrantorinthepaymentofanyindebtednesssecuredbythisDeedofTrustorintheperformanceofanyagreementcontainedinthisDeedofTrust,allsumssecuredherebyshallimmediatelybecomedueandpayableattheoptionoftheBeneficiarysubjecttoanycureperiodprovidedinthenotesecuredbythisDeedofTrust.InsucheventanduponwrittenrequestofBeneficiary,Trusteeshallsellthetrustproperty,inaccordancewiththeDeedofTrustActoftheStateofWashington,atpublicauctiontothehighestbidder.AnypersonexceptTrusteemaybidatTrustee’ssale.Trusteeshallapplytheproceedsofthesaleasfollows:(1)totheexpenseofthesale,includingareasonableTrustee’sfeeandattorney’sfee;(2)totheobligationsecuredbythisDeedofTrust;and(3)thesurplus,ifany,shallbedistributedtothepersonsentitledthereto.5.Trusteeshalldelivertothepurchaseratthesaleitsdeed,withoutwarranty,whichshallconveytothepurchaserallright,titleandinterestintherealandpersonalpropertywhichGrantorhadorhadthepowertoconveyatthetimeoftheexecutionofthisDeedofTrust,andsuchasGrantormayhaveacquiredthereafter.Trustee’sdeedshallrecitethefactsshowingthatthesalewasconductedincompliancewithalltherequirementsoflawandofthisDeedofTrust,whichrecitalshallbeprimafacieevidenceofsuchcomplianceandconclusiveevidencethereofinfavorofbonaflUepurchaserandencumbrancersforvalue.6.ThepowerofsaleconferredbythisDeedofTrustandbytheDeedofTrustActoftheStateofWashingtonisnotanexclusiveremedy;BeneficiarymaycausethisDeedofTrusttobeforeclosedasamortgage.7.Intheeventofthedeath,incapacity,disability,orresignationofTrustee,oratthediscretionoftheBeneficiary,Beneficiarymayappointinwritingasuccessortrustee,andupontherecordingofsuchappointmentinthemortgagerecordsofthecountyinwhichthisDEEDOFTRUST-Page4AGENDA ITEM #7. e)
DeedofTrustisrecorded,thesuccessortrusteeshallbevestedwithallpowersoftheoriginaltrustee.ThetrusteeisnotobligatedtonotifyanypartyheretoofpendingsaleunderanyotherDeedofTrustorofanactionorproceedinginwhichGrantor,Trustee,orBeneficiaryshallbeapartyunlesssuchactionorproceedingisbroughtbytheTrustee.8.ThisDeedofTrustappliesto,mutestothebenefitof,andisbindingnotonlyonthepartieshereto,butonhis/her/theirheirs,devisees,legatees,administrators,executors,andassigns.ThetermBeneficiaryshallmeantheholderandownerofthenotesecuredhereby,whetherornotnamedasBeneficiaryherein.9.ADDITIONALTERMSANDCONDITIONS:(checkone)a.()Noneb.(V)AssetforthontheFaçadeImprovementAgreement,attachedheretoasExhibitB,whichisincorporatedbythisreference.(Note:Ifneither“a”nor“b”ischecked,thenoption“a”applies.)DEEDOFTRUST-Page5AGENDA ITEM #7. e)
Grantor—CortonaLLCBy____________________________________ByGeorgeBrethauerMonicaBrethauerMember,CortonaLLCMember,CortonaLLCLLc/CORPORATEFORMOFACKNOWLEDGMENTNotarySealmustbewithinSTATEOF____________________)boxCOUNTYOF___________Onthis________dayof______________,20,beforemepersonallyappeared:_______________________tomeknowntobethe__________________of_______________________,andacknowledgedthesaidinstrumenttobethefreeandvoluntaryactanddeedofsaidlimitedliabilitycompany/corporation,fortheusesandpurposesthereinmentioned,andeachonoathstatedthathe/shewasauthorizedtoexecutesaidinstrumentandthatthesealaffixed,ifany,isthecorporatesealofsaidcorporation.NotaryPublicinandfortheStateofNotary(Print)_____________________Myappointmentexpires:__________________________Dated:DEEDOFTRUST-Page6AGENDA ITEM #7. e)
REQUESTFORFULLRECONVEYANCE-Donotrecord.Tobeusedonlywhennotehasbeenpaid.TO:TRUSTEETheundersignedisthelegalownerandholderofthenoteandallotherindebtednesssecuredbythewithinDeedofTrust.Saidnote,togetherwithallotherindebtednesssecuredbysaidDeedofTrust,hasbeenfullypaidandsatisfied;andyouareherebyrequestedanddirected,onpaymenttoyouofanysumsowingtoyouunderthetermsofsaidDeedofTrust,tocancelsaidnoteabovementioned,andallotherevidencesofindebtednesssecuredbysaidDeedofTrustdeliveredtoyouherewith,togetherwiththesaidDeedofTrust,andtoreconvey,withoutwarranty,tothepartiesdesignatedbythetermsofsaidDeedofTrust,alltheestatenowheldbyyouthereunder.Dated:___________DEEDOFTRUST-Page7AGENDA ITEM #7. e)
EXHIBITALEGALDESCRIPTIONAGENDA ITEM #7. e)
EXHIBITBFACADEIMPROVEMENTAGREEMENTAGENDA ITEM #7. e)
EXHIBITEARCHITECTURAl.DRAWINGSAGENDA ITEM #7. e)
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EXHIBITFHUDLETTERAGENDA ITEM #7. e)
U.S.DepartmentofHousingandUrbanDevelopmentSeattleRegionalOfficeSeattleFederalOfficeBuildingOfficeofCommunityPlanning&Development909FirstAvenue,Suite300Seattle,WA98104-1000www.hud.gov/washington.htmlAugust14,2015Mr.MarkEllerbrookManager,RegionalHousing&CommunityDevelopmentKingCounty4015thAvenue,Suite510Seattle,WA98104-2377DearMr.Ellerbrook:SUBJECT:AuthoritytoUseGrantFundsforRentonCortonaBuildingFacadeImprovementsWehavereceivedtheRequestforReleaseofFundsandCertificationsubmittedwithyoursignawreonJuly29,2015.TheactivitylistedontheenclosedAuthoritytoUseGrantsFunds(FIUDForm7015.16)hasreceivedsatisfactoryenvironmentalclearance.EnclosedisanAuthoritytoUseGrantFundsforactivitiesrequiringareleaseoffundsbyHUDundertheEnvironmentalReviewProceduresat24CFRPart58.YouareherebyauthorizedtoincurcostsfortheactivitylistedaboveandontheenclosedformasofAugust14,2015,providedtherearenootherconditionsthatmustberemovedorcleared.ifyouhaveanyquestionspleasecallCristinaYamamotoat(206)220-5367.Sincerely,JohnW.PetersDirectorOfficeofCommunityPlanningandDevelopmentEnclosureAGENDA ITEM #7. e)
AGENDA ITEM #7. e)
EXHIBITGLOANREIMBURSEMENTREQUESTFORMAGENDA ITEM #7. e)
EXHIBIIGLOANREIMBURSEMENTREQUESTFORMCityofRenton10555GradyWayAttn:JohnCoIlum,6thfloorRenton,WA98057ProiectNameCheckifFinalInvoicePhoneDUNSCCR/CAGE3*CCRExpirationRequestNumberInvoicePeriodDeveloperPortionThisCityPortionCityPortionCityPortionTotalOriginalTotalRevisedTotalThisRequestThisRequestCumulativeRemainingBudgetLineItemBudgetBudgetRequest(50%)(50%)toDateBalanceTotalI,theundersigned,doherebycertifyunderpenaltyofperjury,thatthisisatrueandCorrectclaimforCDBGeligiblecostsincurredincompliancewithapplicableenvironmentalmitigationmeasures.Iunderstandthatanyfalseclaims,statements,documents,orconcealmentofmaterialfactmaybeprosecutedunderapplicableFederalandStatelaws.Thiscertificationincludesanyattachmentswhichserveassupportingdocumentationtothisrequest.AuthorizedSignatureDateDavis-BaconLaw-ifapplicable,HCDDavis-BaconOfficer’ssignatureisrequired.IsthisafederallyfundedprojectinYesNolfyes,thisformmostbesigoedbyHCODocis-BaconOfficerwhichDavisBaconisapplicable?EFundingSources:SourcePROORGEXPTASAWABudgetInvoiceTotalYTDAmountBalanceTotalHCDProgram/ProjectManagerApprovalforPaymentIDateRequestor(Payableto)NameAddressAGENDA ITEM #7. e)
REGULAR COUNCIL - 16 Nov 2015
SUBJECT/TITLE: Multi-Family Housing Property Tax Exemption - Extension
RECOMMENDED ACTION: Refer to Planning & Development Committee
DEPARTMENT: Community & Economic Development
STAFF CONTACT: Mark Santos-Johnson, Community Development Project Manager
EXT.: 6584
FISCAL IMPACT:
Expenditure Required: $ N/A Transfer Amendment: $ N/A
Amount Budgeted: $ N/A Revenue Generated: $ N/A
Total Project Budget: $ N/A City Share Total Project: $ N/A
SUMMARY OF ACTION:
As authorized by Chapter 84.14 RCW, Council established the Multi-Family Housing Property Tax Exemption
(“Exemption”) in 2003 (codified in RMC 4-1-220, as subsequently amended) to currently encourage multi-
family housing development in Downtown Renton and the Sunset Area. Eligible multi-family housing projects
must, for example, be newly constructed and have a minimum of 30 attached dwelling units if located in the
CD zone. The Exemption is scheduled to sunset on December 31, 2015, unless extended by Council action.
The City has used the Multi-Family Housing Property Tax Exemption Program since 2003 to encourage
increased residential opportunities within designated urban centers that lack sufficient, desirable, and
convenient residential housing. Staff believes that extending the Exemption through December 31, 2018, will
greatly enhance future redevelopment opportunities in the City’s two designated residential targeted areas. In
particular, the proposed extension will help achieve the City’s vision and impr ove future prospects for
additional new multi-family housing in Downtown Renton and the Sunset Area.
EXHIBITS:
A. Issue Paper
B. Draft Ordinance
STAFF RECOMMENDATION:
Adopt an ordinance to amend the Property Tax Exemption for Multi -Family Housing in Residential Targeted
Areas to extend the sunset clause for accepting new applications for the multi-family housing property tax
exemption for three years to December 31, 2018, unless further extended by Council action.
AGENDA ITEM #7. f)
DEPARTMENT OF COMMUNITY
& ECONOMIC DEVELOPMENT
M E M O R A N D U M
DATE:November 6, 2015
TO:Ed Prince, Council President
Members of Renton City Council
VIA:Denis Law, Mayor
FROM:C. E. “Chip” Vincent, CED Administrator
STAFF CONTACT:Mark Santos-Johnson, Community Development Project
Manager x6584
SUBJECT:Multi-Family Housing Property Tax Exemption – Extension
ISSUE:
Should the City extend the Multi-Family Housing Property Tax Exemption Program provided for in RMC
4-1-220 and currently scheduled to sunset on December 31, 2015?
RECOMMENDATION:
Adopt an ordinance to amend the Property Tax Exemption for Multi-Family Housing in Residential
Targeted Areas in RMC 4-1-220 to extend the sunset clause for accepting new applications for the
multi-family housing property tax exemption for three years to December 31, 2018, unless further
extended by City Council action.
BACKGROUND SUMMARY:
Overview of Current Exemption Program
As authorized by Chapter 84.14 RCW, the Council established the Multi-Family Housing Property Tax
Exemption (“Exemption”) in 2003 (codified in RMC 4-1-220 as subsequently amended) to currently
encourage multi-family housing development in Downtown Renton and the Sunset Area. Eligible
multi-family housing projects must, for example, be newly constructed and have a minimum of 30
attached dwelling units if located in the Center Downtown (CD) or Center Village (CV) zones. The
Exemption is scheduled to sunset on December 31, 2015, unless extended by City Council action.
As provided for in Chapter 84.14 RCW and RMC 4-1-220, the Exemption provision currently allows the
value of qualified new housing construction to be exempt from ad valorem property tax for eight to
twelve years depending upon when the project applied for the Exemption and whether the project
provides at least 20% of the units as affordable housing. However, the Exemption does not include the
value of the land, existing improvements, or non-housing-related improvements (e.g., commercial
space). The Exemption applies to all levels of the ad valorem property tax, including the local
jurisdiction, county, state, and all local taxing districts. The Exemption is in addition to any other tax
credits, grants, or incentives provided by law for the multi-family housing.
AGENDA ITEM #7. f)
Ed Prince, Council President
Page 2 of 4
November 6, 2015
Example of Potential Exemption Savings
As noted above, the Exemption applies to all levels of the ad valorem property tax, including the local
jurisdiction, county, state, and all local taxing districts. For projects in Renton, this amounts to a total
of $12.63 per $1,000 of assessed value for 2015. The value of the property tax exemption will of
course be determined by the nature, quality, and cost of the multi-family housing (e.g., size, type,
parking, and amenities) and the future assessed value of the project and the future ad valorem
property tax rates.
The City has a pending Exemption application for The Lofts at Second and Main in Downtown Renton.
As an example, the estimated property tax savings related to The Lofts at Second and Main is
approximately $155,046 per year ($1.24 million for the applicable eight-year Exemption period). This
equates to a potential property tax savings of approximately $1,535 per year per housing unit ($12,281
per housing unit for the eight-year Exemption period).
The City of Renton’s portion of the above estimated potential property tax savings related to the
Exemption is approximately $34,741 per year ($277,929 for the eight-year period) for The Lofts at
Second and Main project. Although the City will receive additional property tax revenue from the new
commercial space and any increased assessed value for the land as a result of the new construction on
site, the City will not receive property tax revenue from the residential improvements until after the
eight-year property tax exemption period.
Exemption Projects Approved to Date
As noted in Figure 1 below, the City has approved nine multi-family housing projects to date with a
total of 1,795 housing units, including 1,745 rental apartments and 50 for-sale condominiums. The
projects are located in all three of the historical designated residential targeted areas, including five
projects in Downtown Renton (503 housing units), three projects in South Lake Washington (1,075
housing units), and one project in the Sunset Area (217 housing units). The projects range in size from
50 housing units to 440 housing units with an average of 199 housing units per project.
Figure 1 - Multi-Family Housing Property Tax Exemption – Approved Project Applications
Project Name
Number of
Housing
Units
Designated
Residential
Targeted Area
Type of
Housing
Application
Approval
Date Project Status
Merrill Gardens at Renton Centre 154 Downtown Rental 5/13/2005 Completed 2007
Parkside at 95 Burnett 106 Downtown Rental 5/13/2005 Completed 2007
The Bristol II at Southport 195 South Lake WA Rental 2/28/2006 Completed 2008
Chateau de Ville 50 Downtown For Sale 6/13/2006 Completed 2008
The Sanctuary 440 South Lake WA Rental 1/26/2007 Completed 2009
The Reserve 440 South Lake WA Rental 1/26/2007 Completed 2010
Harrington Square 217 Sunset Area Rental 9/27/2007 Completed 2011
Second & Main Apartments 101 Downtown Rental 7/21/2008 Cancelled 2011
Liberty Square Apartments 92 Downtown Rental 4/13/2009 Completed 2008
Total 1,795
AGENDA ITEM #7. f)
Ed Prince, Council President
Page 3 of 4
November 6, 2015
Proposed Extension:
To encourage additional multi-family housing in Downtown Renton and the Sunset Area, staff
recommends that the City Council extend the Exemption for an additional three years to December 31,
2018, unless further extended by City Council action.
As noted in figure 1 above, the City has approved nine multi-family housing projects to date with a
total of 1,795 housing units. Eight projects have been completed (with 1,694 units – an average of 212
units per project) and one project (Second & Main Apartments with 101 units) was unable to secure
financing and was cancelled in 2011. The Lofts at Second and Main project is located on the same site
as the former proposed Second & Main Apartments
Of the eight completed projects, four projects with 635 housing units are located Downtown and one
project, the Harrington Square Apartments with 217 housing units, is located in the Sunset Area; the
balance of the projects and housing units were located in South Lake Washington. The Exemption, if
extended, would continue to encourage developers to build new multi-family housing in Downtown
Renton and the Sunset Area.
Due primarily to changes in market conditions and available financing since the recession hit in late-
2008, the City did not receive an Exemption application for a number of years since the Liberty Square
Apartments submitted an application in early-2009. However, the City received an Exemption
application for The Lofts at Second and Main in September 2015 and we expect additional developers
to utilize the Exemption in the future for projects in Downtown Renton and the Sunset Area. For
example, Colpitts Development Company plans to use the Exemption to help develop approximately
400 housing units on the former Sunset Terrace public housing site as part of the Sunset Area
Community Revitalization and CTB Venture LLC’s plans to use the Exemption to help build the 15-unit
Brandon Place Townhomes for owner-occupied housing in the Sunset Area.
When the City established the Exemption in 2003, it was the first city in South King County to utilize
the incentive. However, in subsequent years almost all of the other eligible cities in South King County
(including Kent, Federal Way, Auburn, Burien, Des Moines, SeaTac, and Covington) now have an
Exemption program with one or more designated residential targeted areas. Consequently, it is even
more important for Renton to maintain the Exemption in order to market opportunities for additional
multi-family housing development and capital investment in Downtown Renton and the Sunset Area
given the competition for new developments and other opportunities available in South King County.
Summary:
The proposed extension supports the City’s vision as the center of opportunity in the Puget Sound
Region where families and businesses thrive and the 2016-2021 Business Plan Goals. The Exemption
also supports affordable workforce housing development so that Renton employees can live in the
community where they work to help combat transportation congestion and related environmental
impacts.
AGENDA ITEM #7. f)
Ed Prince, Council President
Page 4 of 4
November 6, 2015
CONCLUSION:
The City has used the Multi-Family Housing Property Tax Exemption Program since 2003 to encourage
increased residential opportunities within designated urban centers that lack sufficient, desirable, and
convenient residential housing. Staff believes that extending the Exemption through December 31,
2018, will greatly enhance future redevelopment opportunities in the City’s two designated residential
targeted areas. In particular, the proposed extension will help achieve the City’s vision and improve
future prospects for additional new multi-family housing in Downtown Renton and the Sunset Area.
Attachments:
1)Draft Ordinance
cc:Jay Covington, CAO
Jason Seth, City Clerk
Iwen Wang, Administrative Services Administrator
Gregg Zimmerman, Public Works Administrator
Terry Higashiyama, Community Services Administrator
Cliff Long, Economic Development Director
AGENDA ITEM #7. f)
1
CITY OF RENTON, WASHINGTON
ORDINANCE NO. ________
AN ORDINANCE OF THE CITY OF RENTON, WASHINGTON, AMENDING SECTION
4‐1‐220, PROPERTY TAX EXEMPTION FOR MULTI‐FAMILY HOUSING IN
RESIDENTIAL TARGETED AREAS, OF CHAPTER 1, ADMINISTRATION AND
ENFORCEMENT, OF TITLE IV (DEVELOPMENT REGULATIONS) OF THE RENTON
MUNICIPAL CODE, BY EXTENDING THE PROPERTY TAX EXEMPTION.
WHEREAS, on December 22, 2003, the Renton City Council approved Ordinance No.
5061 (codified in RMC 4‐1‐220) to establish a limited property tax exemption to encourage
multi‐family housing development in designated residential targeted areas; and
WHEREAS, the property tax exemption will sunset on December 31, 2015, unless
extended by City Council action; and
WHEREAS, the provisions of Section 4‐1‐220, Property Tax Exemption for Multi‐Family
Housing in Residential Targeted Areas, have been successful in encouraging increased
residential opportunities and in stimulating new construction of multi‐family housing in
residential targeted areas; and
WHEREAS, the existing purpose and applicability of the property tax exemption will
remain the same; and
WHEREAS, the City seeks to amend RMC 4‐1‐220 to extend the property tax exemption
to encourage additional future multi‐family housing projects in the residential targeted areas;
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF RENTON, WASHINGTON, DOES
ORDAIN AS FOLLOWS:
AGENDA ITEM #7. f)
ORDINANCE NO. _______
2
SECTION I. Subsection 4‐1‐220.M, Sunset of Exemption for Applications for
Conditional Certificates, of Chapter 1, Administration and Enforcement, of Title IV
(Development Regulations) of the Renton Municipal Code, is hereby amended as follows:
M. SUNSET OF EXEMPTION FOR APPLICATIONS FOR CONDITIONAL
CERTIFICATES:
The City shall not accept new applications for conditional certificates as
provided in RMC 4‐1‐220.E after the close of business on December 31, 2015
2018, unless extended by City Council action. The City shall process (1) pending
complete applications for a conditional certificate submitted before the close of
business on December 31, 2015 2018, and (2) applications for an extension of
the conditional certificate and/or a final certificate received after the close of
business on December 31, 2015 2018, as provided in subsections D through J of
this Section. Subsections C and J through L of this Section shall continue to apply
to all properties that have been or are issued a final certificate of tax exemption
under RMC 4‐1‐220 until expiration, termination or cancellation of the tax
exemption.
Incomplete applications for conditional certificates as of the close of business
on December 31, 2015 2018, shall be denied and/or returned to owners.
SECTION II. This ordinance shall be effective upon its passage, approval, and thirty
(30) days after publication.
AGENDA ITEM #7. f)
ORDINANCE NO. _______
3
PASSED BY THE CITY COUNCIL this _______ day of _______________________, 2015.
Jason A. Seth, City Clerk
APPROVED BY THE MAYOR this _______ day of _______________________, 2015.
Denis Law, Mayor
Approved as to form:
Lawrence J. Warren, City Attorney
Date of Publication:
ORD:1893:11/3/15:scr
AGENDA ITEM #7. f)
REGULAR COUNCIL - 16 Nov 2015
SUBJECT/TITLE: Owner-Occupied Housing Incentive & Rental Housing Incentive -
Extensions
RECOMMENDED ACTION: Refer to Planning & Development Committee
DEPARTMENT: Community & Economic Development
STAFF CONTACT: Mark Santos-Johnson, Community Development Project Manager
EXT.: 6584
FISCAL IMPACT:
Expenditure Required: $ N/A Transfer Amendment: $ N/A
Amount Budgeted: $ N/A Revenue Generated: $ N/A
Total Project Budget: $ N/A City Share Total Project: $ N/A
SUMMARY OF ACTION:
Council approved the Owner-Occupied Housing Incentive (codified in RMC 4-1-210B as subsequently
amended) to allow certain development and mitigation fees for “For Sale” housing to be waived to encourage
owner-occupied housing in Downtown Renton and the Sun set Area. Council also approved the Rental Housing
Incentive (codified in RMC 4-1-210C as subsequently amended) to allow certain development and mitigation
fees for rental housing to be waived to encourage new multi-family rental housing in the Sunset Area. Both
incentives are scheduled to sunset on December 31, 2015, unless extended by Council action.
The City has used the Owner-Occupied Housing Incentive and the Rental Housing Incentive to encourage
increased residential opportunities in Downtown Renton and the Sunset Area. Staff believes that extending
the Owner-Occupied Housing Incentive and the Rental Housing Incentive through December 31, 2018 will
greatly enhance future redevelopment opportunities for both Downtown Renton and the Sunset Area. The
incentives will encourage capital investment in new multi-family housing development in the targeted areas
and help stimulate additional revitalization and commercial development in Downtown Renton and the Sunset
Area.
EXHIBITS:
A. Issue Paper
B. Ordinance
STAFF RECOMMENDATION:
Adopt an ordinance to amend the Owner-Occupied Housing Incentive in RMC 4-1-210B and the Rental
Housing Incentive in RMC 4-1-210C to extend the sunset clauses for three years to December 31, 2018, unless
further extended by City Council action.
AGENDA ITEM #7. g)
DEPARTMENT OF COMMUNITY
& ECONOMIC DEVELOPMENT
M E M O R A N D U M
DATE:November 6, 2015
TO:Ed Prince, Council President
Members of Renton City Council
VIA:Denis Law, Mayor
FROM:C. E. “Chip” Vincent, CED Administrator
STAFF CONTACT:Mark Santos-Johnson, Community Development Project
Manager x6584
SUBJECT:Owner-Occupied Housing Incentive and Rental Housing
Incentive - Extensions
ISSUE:
Should the City extend the Owner-Occupied Housing Incentive and the Rental Housing Incentive
provided for in RMC 4-1-210B and 4-1-210C, respectively, and both currently scheduled to sunset on
December 31, 2015?
RECOMMENDATION:
Adopt an ordinance to amend the Owner-Occupied Housing Incentive in RMC 4-1-210B and the Rental
Housing Incentive in RMC 4-1-210C to extend the sunset clauses for three years to December 31, 2018,
unless further extended by City Council action.
BACKGROUND:
Owner-Occupied Housing Incentive Background
In August 2001, the Renton City Council approved Ordinance No. 4913 (codified in RMC 4-1-210B as
subsequently amended) to allow certain development and mitigation fees for “For Sale” housing to be
waived to encourage owner-occupied housing in Downtown Renton. In February 2010, the City
Council extended the incentive to include eligible owner-occupied housing in the Sunset Area.
The Owner-Occupied Housing Incentive currently applies to eligible new construction projects with
100% of the housing units platted or condominium “For Sale” housing in the Center Downtown (CD),
Center Village (CV), Residential 14 Dwelling Units/Acre (R-14), and Residential Multi-Family (RM-F)
zones that are also located in Downtown Renton or the Sunset Area.
In addition to being located in one of the targeted areas noted above, eligible multi-family owner-
occupied housing projects must, for example, be newly constructed and have a minimum of 30
attached dwelling units if located in the CD or CV zones. Eligible owner-occupied housing projects
must currently have a minimum of ten attached dwelling units if located in one of the other zones
AGENDA ITEM #7. g)
Ed Prince, Council President
Page 2 of 4
November 6, 2015
noted above. The Owner-Occupied Housing Incentive is scheduled to sunset on December 31, 2015
unless extended by City Council action.
To date, the Owner-Occupied Housing Incentive was instrumental in helping construct two projects in
Downtown Renton, the 37 condos at 55 Williams and the 50 condos at the Chateau de Ville. No
projects in the Sunset Area have been built to date using the Owner-Occupied Housing Incentive, but
there is one proposed project in the Sunset Area in the pipeline, CTB Venture LLC’s 15-unit Brandon
Place Townhomes.
Rental Housing Incentive Background
In August 2011, the Renton City Council approved Ordinance 5617 (codified in RMC 4-1-210C as
subsequently amended) to allow certain development and mitigation fees for rental housing to be
waived to encourage new multi-family rental housing in the Sunset Area (but not Downtown Renton –
where only owner-occupied housing continues to be eligible for waived fees). The incentive applies to
eligible new multi-family rental housing in the CV, RM-F, and R-14 zones and also located in the Sunset
Area. Eligible new affordable multi-family rental housing projects in the Sunset Area receive a 100%
fee waiver and eligible new market-rate multi-family rental housing projects receive a 50% fee waiver.
In addition to being located in the Sunset Area, eligible multi-family rental housing projects must, for
example, be newly constructed and have a minimum of 30 attached dwelling units if located in the CV
zone or a minimum of eight attached dwelling units if located in the RM-F or R-14 zones. The Rental
Housing Incentive is scheduled to sunset on December 31, 2015, unless extended by City Council
action.
To date, the Rental Housing Incentive was instrumental in helping construct two projects in the Sunset
Area, the eight-unit Glennwood Avenue Townhomes and the 18-unit Kirkland Avenue Townhomes,
both part of the Renton Housing Authority’s replacement housing for the Sunset Terrace
redevelopment.
Example of Potential Development and Mitigation Fee Savings
The amount of development and mitigation fee savings for a project depends upon many things,
including the nature, quality, and cost of the multi-family housing (e.g., size, type, parking, and
amenities) and the applicable fee rates at the time. For illustration purposes, the estimated savings are
noted below for one Owner-Occupied Housing Incentive project and one Rental Housing Incentive
project.
Based on the analysis completed at the time, the 55 Williams project with 37 units was expected to
receive a total savings of approximately $118,994 from the Owner-Occupied Housing Incentive,
including $43,748 in fire, transportation and parks mitigation fees, $41,440 in water and wastewater
system development charges, and $33,806 in building permit fees. (There were no surface water
system development charges since 100% of the site was already an impervious surface from the prior
use.) The incentive worked out to a savings of approximately $3,216 per unit.
Based on the analysis completed at the time, the Glennwood Avenue Townhomes with eight units was
expected to receive a total savings of approximately $52,916 from the Rental Housing Incentive,
AGENDA ITEM #7. g)
Ed Prince, Council President
Page 3 of 4
November 6, 2015
including $28,609 in water, wastewater, and surface water system development charges, and $24,307
in building permit and plan review and inspection fees. (There were no mitigation fees since the
project included eight replacement housing units.) The incentive worked out to a savings of
approximately $6,615 per unit.
PROPOSED EXTENSIONS:
To encourage additional new owner-occupied housing in Downtown Renton and the Sunset Area and
additional new rental housing in the Sunset Area, staff recommends that the City Council extend both
the Owner-Occupied Housing Incentive and the Rental Housing Incentive for three years to December
31, 2018.
Owner-Occupied Housing Incentive Extension
To date, the City has had limited success at encouraging new owner-occupied housing development in
Downtown Renton and the Sunset Area. Both projects that utilized the Owner-Occupied Housing
Incentive since 2001, the 55 Williams condo project (completed in 2002) and the Chateau de Ville
condo project (completed in 2008), had significant challenges selling units when constructed. In
particular, the Chateau de Ville was completed in late-2008 at the beginning of the recession. Given
the cost to construct the project and the significant decrease in housing values and available financing
for home buyers at the time, the developer was only able to sell three condo units. As a result, the
project was foreclosed and 47 of the 50 units were purchased by Jade Investments LLC which has used
the units to date for rental housing. It’s unclear if or when the units will be made available for sale as
owner-occupied housing.
For developers who are building new condos or converting apartments to condominiums, there are
other stronger market areas for them to develop their projects than Downtown Renton or the Sunset
Area. Consequently, it is a major challenge to promote new owner-occupied housing in Downtown
Renton and the Sunset Area. Staff believes that the Owner-Occupied Housing Incentive is an essential
incentive to help stimulate and encourage new owner-occupied housing development in Downtown
Renton and the Sunset Area in the future. As noted above, there is one proposed project in the
pipeline, CTB Venture LLC’s 15-unit Brandon Place Townhomes in the Sunset Area.
Rental Housing Incentive Extension
Redevelopment of the Highlands or Sunset Area has been a priority business plan goal for the City
since the 1990’s. Unfortunately, capital investment in the Sunset Area (particularly for residential
construction) has been very limited, in part due to significant development costs for builders to
compensate for the limited utility infrastructure in the area. The Rental Housing Incentive was
established to provide an additional catalyst for redevelopment in the Sunset Area to help stimulate
and support additional new multi-family rental housing in the community.
The Renton Housing Authority (RHA) used the Rental Housing Incentive to help construct the 8-unit
Glennwood Avenue Townhomes and the 18-unit Kirkland Avenue Townhomes as replacement housing
for the Sunset Terrace redevelopment. We expect other multi-family rental housing projects to use
the incentive in the future, including RHA’s additional planned Sunset Terrace replacement housing
projects and Colpitts Development Company’s proposed three buildings with approximately 400
housing units on the former Sunset Terrace public housing site. Maintaining the Rental Housing
AGENDA ITEM #7. g)
Ed Prince, Council President
Page 4 of 4
November 6, 2015
Incentive is a central part of the City’s efforts to support the Sunset Area Community Investment
Strategy and, in particular, the Sunset Terrace redevelopment project.
Summary:
The proposed extensions support the City’s vision as the center of opportunity in the Puget Sound
Region where families and businesses thrive and the 2016-2021 Business Plan Goals. In addition, the
incentives for new owner-occupied housing and new multi-family rental housing in the Sunset Area
supports the Sunset Area Community Investment Strategy adopted by the City Council in 2009 and the
City Center Plan adopted by the City Council in 2011.
CONCLUSION:
The City has used the Owner-Occupied Housing Incentive and the Rental Housing Incentive to
encourage increased residential opportunities within designated urban centers that lack sufficient,
desirable, and convenient residential housing. Staff believes that extending the Owner-Occupied
Housing Incentive and the Rental Housing Incentive through December 31, 2018 will greatly enhance
future redevelopment opportunities for both Downtown Renton and the Sunset Area. In particular,
the proposed extensions will help achieve the City’s vision and improve future prospects for additional
new owner-occupied housing in Downtown Renton and additional new owner-occupied housing and
rental housing in the Sunset Area. The incentives will encourage capital investment in new multi-
family housing development in the targeted areas and help stimulate additional revitalization and
commercial development in Downtown Renton and the Sunset Area.
Attachments:
1.Draft Ordinance
cc.Jay Covington, CAO
Jason Seth, City Clerk
Iwen Wang, Administrative Services Administrator
Terry Higashiyama, Community Services Administrator
Gregg Zimmerman, Public Works Administrator
Mark Peterson, Fire Chief/Emergency Services Administrator
Cliff Long, Economic Development Director
Jennifer Henning, Planning Director
Vanessa Dolbee, Current Planning Manager
Karen Bergsvik, Human Services Manager
AGENDA ITEM #7. g)
1
CITY OF RENTON, WASHINGTON
ORDINANCE NO. ________
AN ORDINANCE OF THE CITY OF RENTON, WASHINGTON, AMENDING SECTION
4‐1‐210, WAIVED FEES, OF CHAPTER 1, ADMINISTRATION AND ENFORCEMENT,
OF TITLE IV (DEVELOPMENT REGULATIONS) OF THE RENTON MUNICIPAL CODE,
BY EXTENDING THE WAIVER OF CERTAIN DEVELOPMENT AND MITIGATION
FEES.
WHEREAS, on August 27, 2001, the Renton City Council approved Ordinance No. 4913
(codified in RMC 4‐1‐210.B) to allow certain development and mitigation fees for housing that
is for sale to be waived to encourage new owner‐occupied housing in Downtown Renton; and
WHEREAS, on February 1, 2010, the City Council approved Ordinance No. 5524 (codified
in RMC 4‐1‐210.B) to allow certain development and mitigation fees for housing that is for sale
to be waived to encourage new owner‐occupied housing in the Sunset Area; and
WHEREAS, on August 1, 2011, the City Council approved Ordinance No. 5617 (codified
in RMC 4‐1‐210.C) to allow certain development and mitigation fees for rental housing to be
waived to encourage new multi‐family rental housing in the Sunset Area; and
WHEREAS, these development and mitigation fee waivers will sunset on December 31,
2015, unless extended by City Council action; and
WHEREAS, the provisions of Subsection 4‐1‐210.B, Owner‐Occupied Housing Incentive,
and Subsection 4‐1‐210.C, Rental Housing Incentive, have been successful in encouraging
increased residential opportunities and in stimulating new construction of multi‐family housing
in Downtown Renton and the Sunset Area; and
WHEREAS, the existing purpose and applicability of the development and mitigation fee
waivers will remain the same; and
AGENDA ITEM #7. g)
ORDINANCE NO. _______
2
WHEREAS, the City seeks to amend RMC 4‐1‐210.B and 4‐1‐210.C to extend the
development and mitigation fee waivers to encourage additional new owner‐occupied housing
in Downtown Renton and the Sunset Area and additional new rental housing in the Sunset
Area;
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF RENTON, WASHINGTON, DOES
ORDAIN AS FOLLOWS:
SECTION I. Subsection 4‐1‐210.B.8, Effective Date and Sunset, of Chapter 1,
Administration and Enforcement, of Title IV (Development Regulations) of the Renton
Municipal Code, is hereby amended as follows:
8. Effective Date and Sunset: These fee waivers are effective for
building permits issued after August 13, 2001, and will sunset at the close of
business on December 31, 2015 2018, unless extended by City Council action.
SECTION II. Subsection 4‐1‐210.C.8, Effective Date and Sunset, of Chapter 1,
Administration and Enforcement, of Title IV (Development Regulations) of the Renton
Municipal Code, is hereby amended as follows:
8. Effective Date and Sunset: These fee waivers are effective for
building permits issued after September 5, 2011, and will sunset at the close of
business on December 31, 2015 2018, unless extended by City Council action.
SECTION III. This ordinance shall be effective upon its passage, approval, and thirty
(30) days after publication.
AGENDA ITEM #7. g)
ORDINANCE NO. _______
3
PASSED BY THE CITY COUNCIL this _______ day of ___________________, 2015.
Jason A. Seth, City Clerk
APPROVED BY THE MAYOR this _______ day of _____________________, 2015.
Denis Law, Mayor
Approved as to form:
Lawrence J. Warren, City Attorney
Date of Publication:
ORD:1894:11/3/15:scr
AGENDA ITEM #7. g)
REGULAR COUNCIL - 16 Nov 2015
SUBJECT/TITLE: The Lofts at Second and Main – Multi-Family Housing Property Tax
Exemption Agreement
RECOMMENDED ACTION: Refer to Planning & Development Committee
DEPARTMENT: Community & Economic Development
STAFF CONTACT: Mark Santos-Johnson, Community Development Project Manager
EXT.: 6584
FISCAL IMPACT:
Expenditure Required: $ N/A Transfer Amendment: $ N/A
Amount Budgeted: $ N/A Revenue Generated: $ N/A
Total Project Budget: $ N/A City Share Total Project: $ N/A
SUMMARY OF ACTION:
In September 2015, the City received a Multi-Family Housing Property Tax Exemption (“Exemption”)
application for The Lofts at Second and Main project in the Downtown designated residential targeted area. As
provided for in RMC 4-1-220, the Department of Community and Economic Development (CED) Administrator
needs to approve or deny the Exemption application within 90 days of receipt of the application and, if
approved, the applicant must enter into an agreement approved by Council that addresses the terms a nd
conditions for The Lofts at Second and Main project to receive a partial property tax exemption upon
completion. Subject to Council’s approval of the agreement, the CED Administrator intends to approve the
Exemption application for The Lofts at Second a nd Main project.
The six-story mixed-use apartment project with one level of underground parking has 101 apartment units,
3,987 square feet of non-residential (commercial retail) space, and 117 structured parking spaces.
EXHIBITS:
A. Issue Paper
B. Draft Multi-Family Housing Property Tax Exemption Agreement
STAFF RECOMMENDATION:
Approve the Exemption Agreement that addresses the terms and conditions for The Lofts at Second and Main
project to receive a partial property tax exemption upon completion and authorize the Mayor to execute the
agreement.
AGENDA ITEM #7. h)
DEPARTMENT OF COMMUNITY
& ECONOMIC DEVELOPMENT
M E M O R A N D U M
DATE:November 5, 2015
TO:Ed Prince, Council President
Members of Renton City Council
VIA:Denis Law, Mayor
FROM:C. E. “Chip” Vincent, CED Administrator
STAFF CONTACT:Mark Santos-Johnson, Community Development Project
Manager x6584
SUBJECT:The Lofts at Second and Main – Multi-Family Housing
Property Tax Exemption Agreement
ISSUE:
Should the City Council approve the Multi-Family Housing Property Tax Exemption Agreement
for The Lofts at Second and Main and authorize the Mayor to execute the agreement?
RECOMMENDATION:
Staff recommends that the Council: (1) approve the Exemption Agreement that addresses the
terms and conditions for The Lofts at Second and Main project to receive a partial property
tax exemption upon completion; and (2) authorize the Mayor to execute said agreement in
substantially the same form.
BACKGROUND SUMMARY:
On September 24, 2015, the City received a Multi-Family Housing Property Tax Exemption
(“Exemption”) application for The Lofts at Second and Main project in the Downtown
designated residential targeted area. As provided for in RMC 4-1-220, the Department of
Community & Economic Development (CED) Administrator needs to approve or deny the
Exemption application within 90 days of receipt of the application and, if approved, the
applicant must enter into an agreement approved by the Council that addresses the terms
and conditions for The Lofts at Second and Main project to receive a partial property tax
exemption upon completion. Subject to the Council’s approval of the agreement, the CED
Administrator intends to approve the Exemption application for The Lofts at Second and Main
project.
BACKGROUND:
As authorized by Chapter 84.14 RCW, the Council established the Multi-Family Housing
Property Tax Exemption (“Exemption”) in 2003 (codified in RMC 4-1-220 as subsequently
AGENDA ITEM #7. h)
Ed Prince, Council President
Page 2 of 3
November 5, 2015
amended) to currently encourage multi-family housing development in Downtown Renton
and the Sunset Area. The Exemption provision allows the value of qualified new housing
construction to be exempt from ad valorem property tax for a limited period of time after
completion of the project1. However, the Exemption does not include the value of the land,
existing improvements or non-housing-related improvements (e.g., commercial space). The
Exemption applies to all levels of the ad valorem property tax, including the local jurisdiction,
county, state, and all local taxing districts. The Exemption is in addition to any other tax
credits, grants, or incentives provided by law for the multi-family housing.
The City received an Exemption application for The Lofts at Second and Main project on
September 24, 2015. The Lofts at Second and Main project is a mixed-use residential rental
project located at 207 – 219 Main Avenue S (at the southwest corner of S Second Street and
Main Avenue S) in Downtown Renton. The six-story mixed-use apartment project has one
level of underground parking (five residential stories over one story of structured parking and
commercial retail and residential amenity spaces, plus one below-grade level of structured
parking), 101 apartment units, 132,171 sf of residential space, 3,987 sf of non-residential
(commercial retail) space, and 117 structured parking spaces (101 residential and 16
commercial).
The estimated potential property tax savings related to the Exemption is approximately
$155,046 per year ($1.24 million for the eight-year period) for The Lofts at Second and Main
project. This equates to a potential property tax savings of approximately $1,535 per year per
housing unit ($12,281 per housing unit for the eight-year period).
The City of Renton’s portion of the above estimated potential property tax savings related to
the Exemption is approximately $34,741 per year ($277,929 for the eight-year period) for The
Lofts at Second and Main project. Although the City will receive additional property tax
revenue from the new commercial space and any increased assessed value for the land as a
result of the new construction on site, the City will not receive property tax revenue from the
residential improvements until after the eight-year property tax exemption period.
The project paid a $1,000 initial application fee and satisfies the City’s Exemption eligibility
requirements as outlined in RMC 4-1-220D:
The multi-family housing units are located in one or more new buildings designed for
permanent residential occupancy, each with four or more dwelling units;
The project is located in the Center Downtown (CD) zone as part of the Downtown
designated residential targeted area;
1 In 2007, the Washington State Legislature passed the Engrossed Second Substitute House Bill 1910, in
part, to modify the limited the property tax exemption for future eligible projects to eight years or 12
years (the longer term being available if the project provides at least 20% of the units as affordable
housing).
AGENDA ITEM #7. h)
Ed Prince, Council President
Page 3 of 3
November 5, 2015
The project is a mixed-use development; and
The project consists of a minimum of 30 dwelling units.
As provided for in RMC 4-1-220F, the CED Administrator needs to approve or deny the
Exemption application within 90 days of receipt and, if approved, the applicant must enter
into an agreement approved by the Council that addresses the terms and conditions for The
Lofts at Second and Main project to receive a partial property tax exemption upon
completion. Subject to the Council’s approval of the agreement, the CED Administrator
intends to approve the application for The Lofts at Second and Main project. (Please see
Attachment 1 for the proposed Exemption Agreement for The Lofts at Second and Main
project.)
The Lofts at Second and Main project is a high-profile, mixed-use project at a major gateway
to Downtown Renton. The project will provide $17 million in private investment in Downtown
Renton, significantly expand the housing opportunities Downtown, and support the City’s
ongoing revitalization efforts in Downtown Renton.
CONCLUSION:
Renton’s Multi-Family Housing Property Tax Exemption program was established to help
increase housing opportunities in designated residential targeted areas, including Downtown
Renton. The Lofts at Second and Main project will provide an additional 101 apartment units
in Downtown Renton and further the City’s 2016-2021 Business Plan Goals.
cc:Jay Covington, CAO
Jason Seth, City Clerk
Iwen Wang, Administrative Services Administrator
Gregg Zimmerman, Public Works Administrator
Terry Higashiyama, Community Services Administrator
Cliff Long, Economic Development Director
AGENDA ITEM #7. h)
Multi-Family Housing Property Tax Exemption Agreement
The Loft at Second and Main 1
ATTACHMENT 1
MULTI-FAMILY HOUSING PROPERTY TAX EXEMPTION
AGREEMENT FOR THE LOFTS AT SECOND AND MAIN
THIS AGREEMENT is entered into this ____ day of _______________, 201___
by and between RENTON HERITAGE LLC, a Washington limited liability company
(hereinafter referred to as the “Applicant”), and the CITY OF RENTON, a municipal
corporation (hereinafter referred to as the “City”).
Recitals.
1.Applicant has applied to the City for a limited property tax exemption as provided
for in Chapter 84.14 RCW and RMC 4-1-220 for multi-family housing residential
rental housing located in the Center Downtown (CD) zone as part of the
Downtown residential targeted area and the Department of Community and
Economic Development Administrator has approved the application; and
2.Applicant has submitted to the City preliminary site plans, floor plans, and
elevations for The Lofts at Second and Main with one hundred and one (101)
new multi-family housing units to be constructed as part of a mixed-use projec
(hereinafter referred to as the “Project”) on property located at 207 – 219 Main
Avenue S, Renton, Washington, and more fully described in Exhibit A attached
hereto, (hereinafter referred to as the “Property”); and
3.Applicant is the owner of the Property; and
4.The City has determined that the Project will, if developed as proposed, satisfy
the requirements for a Final Certificate of Tax Exemption.
NOW, THEREFORE, the City and Applicant do mutually agree as follows:
1.Conditional Certificate of Acceptance of Tax Exemption
City agrees, upon execution of this Agreement following approval by the City
Council, to issue a Conditional Certificate of Acceptance of Tax Exemption, which
conditional certificate shall expire three (3) years from the date of approval of this
Agreement by the City Council, unless extended by the Administrator of the Department
of Community and Economic Development (or any other City office, department or
agency that shall succeed to its functions), or his or her designee, (hereafter referred to
as “Administrator”) as provided in RMC 4-1-220I.
AGENDA ITEM #7. h)
Multi-Family Housing Property Tax Exemption Agreement
The Loft at Second and Main 2
2.Agreement to Construct Multi-Family Housing.
a.Applicant agrees to construct the Project on the Property substantially as
described in the site plans, floor plans, and elevations on file with the City’s Department
of Community and Economic Development or its functional successor (hereafter
referred to as “Department”) as of the date of the City Council’s approval of this
Agreement, subject to such modifications thereto as may be required to comply with
applicable codes and ordinances; provided, that in no event shall such construction
provide fewer than thirty (30) new multi-family housing dwelling units designed for
permanent residential occupancy, nor shall permanent residential housing comprise
less than fifty percent (50%) of the gross floor area of the mixed-use project constructed
pursuant to this Agreement.
b.Applicant agrees to construct the Project on the Property to comply with
all applicable zoning requirements, land use regulations, and building and housing code
requirements, including but not limited to the City’s development regulations in Title IV
of the RMC and the City’s applicable design standards and guidelines. The Applicant
further agrees that approval of this Agreement by the City Council, its execution by the
Mayor, or issuance of a Conditional Certificate of Acceptance of Tax Exemption by the
City pursuant to RMC 4-1-220F3 in no way constitutes approval of proposed
improvements on the Property with respect to applicable provisions of the City’s
development regulations included in Title IV of the RMC or any other applicable
regulation or obligates the City to approve proposed improvements to the Property.
c.Applicant agrees that the Project will be completed within three (3) years
from the date of approval of this Agreement by the Council, unless extended by the
Administrator for cause as provided in RMC 4-1-220I.
3.Requirements for Final Certificate of Tax Exemption.
Applicant may, upon completion of the Project and upon issuance by the City of
a temporary certificate of occupancy, or a permanent certificate of occupancy if no
temporary certificate is issued, request a Final Certificate of Tax Exemption. The
request shall be in writing directed to the Administrator and be accompanied by the
following:
a.A statement of expenditures made with respect to each multi-family
housing unit and the total expenditures made with respect to the entire Project and
Property;
b.A description of the completed work and a statement of qualification for
the multi-family housing property tax exemption;
AGENDA ITEM #7. h)
Multi-Family Housing Property Tax Exemption Agreement
The Loft at Second and Main 3
c.A statement that the Project was completed within the required three-(3)
year period or any authorized extension and documentation that the Project was
completed in compliance with the terms of this Agreement;
d.The total monthly rent of each multi-family housing unit rented to date;
e.The income of each renter household to date at the time of initial
occupancy; and
f.Any such further information that the Administrator deems necessary or
useful to evaluate the Project’s eligibility for the Final Certificate of Tax Exemption.
4.Agreement to Issue Final Certificate of Tax Exemption.
The City agrees to file a Final Certificate of Tax Exemption with the King County
Assessor within forty (40) days of submission by the Applicant of all materials required
by paragraph 3 above, if Applicant has:
a.Successfully completed the Project in accordance with the terms of this
Agreement and RMC 4-1-220;
b.Filed a request with the City for a Final Certificate of Tax Exemption with
the Administrator and submitted the materials described in paragraph 3 above;
c.Paid the City a fee in the amount of one thousand dollars ($1,000); and
d.Met all other requirements provided in RMC 4-1-220 for issuance of the
Final Certificate of Tax Exemption.
5.Duration of the Property Tax Exemption
Subject to the terms of this Agreement and the requirements of RMC 4-1-220,
the value of improvements qualifying under RMC 4-1-220 is exempt from ad valorem
property taxation for eight (8) successive years beginning January 1st of the year
immediately following the calendar year of issuance of the final certificate of tax
exemption.
6.Annual Certification and Report.
Within thirty (30) days after the first anniversary of the date the City issued the
Final Certificate of Tax Exemption and each year thereafter for the duration of the tax
exemption period noted in paragraph 5 above, Applicant agrees to file an annual report
with the Administrator. The report shall contain such information as required by RCW
AGENDA ITEM #7. h)
Multi-Family Housing Property Tax Exemption Agreement
The Loft at Second and Main 4
84.14 and as the Administrator may deem necessary or useful, and shall at a minimum
include the following:
a.A statement of the occupancy and vacancy of the multi-family housing
units during the twelve months ending with the anniversary date;
b.A certification that the multi-family housing units, Project, and Property
have not changed use since the date the City issued the Final Certificate of Tax
Exemption,
c.A statement that the multi-family housing units, Project, and Property
continue to be in compliance with this Agreement and the requirements of RCW 84.14
and RMC 4-1-220;
d.A description of any improvements or changes to the Project made after
the City issued the Final Certificate of Tax Exemption;
e.The total monthly rent of each multi-family housing unit rented or the total
sale amount of each multi-family housing unit sold to an initial purchaser during the
twelve months ending with the anniversary date;
f.The income of each renter household at the time of initial occupancy and
the income of each initial purchaser of owner-occupied multi-family housing units at the
time of purchase during the twelve months ending with the anniversary date;
g.Any additional information requested by the City pursuant to meeting any
reporting requirements under RCW 84.14; and
h.Any such further information that the Administrator deems necessary or
useful to evaluate the Applicant’s compliance with this Agreement and the requirements
of RCW 84.14 and RMC 4-1-220.
7.No Violations for Duration of Exemption.
For the duration of the property tax exemption granted under RMC 4-1-220 and
noted in paragraph 5 above, Applicant agrees that the Project and the Property will
have no violations of applicable zoning requirements, land use regulations, and building
and housing code requirements, including but not limited to the development
regulations in Title IV of the RMC, for which the Department of Community and
Economic Development or its functional successor shall have issued a notice of
violation, citation or other notification that is not resolved by a certificate of compliance,
certificate of release, withdrawal or otherwise, within the time period for compliance, if
any, provided in such notice of violation, citation or other notification or any extension of
AGENDA ITEM #7. h)
Multi-Family Housing Property Tax Exemption Agreement
The Loft at Second and Main 5
the time period for compliance granted by the Department of Community and Economic
Development.
8.Notification of Transfer of Interest or Change in Use.
Applicant agrees to notify the Administrator within thirty (30) days of any transfer
of Applicant’s ownership interest in the Project, the Property or any improvements made
to the Property. Applicant further agrees to notify the Administrator and the King
County Assessor within sixty (60) days of any change of use of any or all of the multi-
family housing units on the Property to another use. Applicant acknowledges that such
a change in use may result in cancellation of the property tax exemption and imposition
of additional taxes, interest, and penalty pursuant to State law.
9.Cancellation of Exemption - Appeal.
a.The City reserves the right to cancel the Final Certificate of Tax
Exemption if at any time the multi-family housing units, the Project, or the Property no
longer complies with the terms of this Agreement or with the requirements of RMC 4-1-
220, or for any other reason no longer qualifies for a property tax exemption.
b.If the property tax exemption is canceled for non-compliance, Applicant
acknowledges that state law requires that an additional real property tax is to be
imposed in the amount of: [a} the difference between the property tax paid and the
property tax that would have been paid if it had included the value of the nonqualifying
improvements, dated back to the date that the improvements became nonqualifying; [b]
a penalty of 20% of the difference calculated under paragraph (a) of this paragraph 9;
[c] interest at the statutory rate on delinquent property taxes and penalties, calculated
from the date the tax would have been due without penalty if the improvements had
been assessed without regard to the exemptions provided by Chapter 84.14 RCW and
RMC 4-1-220. Applicant acknowledges that, pursuant to RCW 84.14.110, any
additional tax owed, together with interest and penalty, become a lien on the Property
and attach at the time the Property or portion of the Property is removed from multi-
family housing use or the amenities no longer meet applicable requirements, and that
the lien has priority to and must be fully paid and satisfied before a recognizance,
mortgage, judgment, debt, obligation, or responsibility to or with which the Property may
become charged or liable. Applicant further acknowledges that RCW 84.14.110
provides that any such lien may be foreclosed in the manner provided by law for
foreclosure of liens for delinquent real property taxes.
c.Upon determining that a tax exemption is to be canceled, the
Administrator shall notify the property owner by certified mail, return receipt requested.
The property owner may appeal the determination in accordance with RMC 4-1-220L2.
AGENDA ITEM #7. h)
Multi-Family Housing Property Tax Exemption Agreement
The Loft at Second and Main 6
10.Amendments.
No modification of this Agreement shall be made unless mutually agreed upon
by the parties in writing and unless in compliance with the provisions of RMC 4-1-220H,
including but not limited to the Applicant’s payment of a five hundred dollars ($500)
contract amendment fee.
11.Binding Effect.
The provisions, covenants, and conditions contained in this Agreement are
binding upon the parties hereto and their legal heirs, representatives, successors,
assigns, and subsidiaries.
12.Recording of Agreement.
The Administrator shall cause to be recorded at the Applicant’s expense, or
require Applicant to record, in the real property records of the King County Department
of Records and Elections, this Agreement and any other documents as will identify such
terms and conditions of eligibility for exemption as the Administrator deems appropriate
for recording.
13.Audits and Inspection of Records.
Applicant understands and agrees that the City has the right to audit or review
appropriate records to assure compliance with this Agreement and RMC 4-1-220 and to
perform evaluations of the effectiveness of the multi-family housing property tax
exemption program. Applicant agrees to make appropriate records available for review
or audit upon seven days’ written notice by the City.
14.Notices.
All notices to be given pursuant to this Agreement shall be in writing and shall be
deemed given when hand-delivered within normal business hours, when actually received
by facsimile transmission, or two business days after having been mailed, postage
prepaid, to the parties hereto at the addresses set forth below, or to such other place as a
party may from time to time designate in writing.
APPLICANT:
Aquarius Global LLC
11747 NE 1st Street, Suite 300
Bellevue, W A 98005
Phone: 425-451-8188 Fax: 425-451-8498
Attention: James G.S. Hwang, Manager
AGENDA ITEM #7. h)
Multi-Family Housing Property Tax Exemption Agreement
The Loft at Second and Main 7
CITY:City of Renton
Department of Community and Economic Development
1055 South Grady W ay
Renton, W ashington 98055
Phone: (425) 430-6592 Fax: (425) 430-7300
Attention: Administrator
15.Severability.
In the event that any term or clause of this Agreement conflicts with applicable
law, such conflict shall not affect other terms of this Agreement which can be given
effect without the conflicting terms or clause, and to this end, the terms of the
Agreement are declared to be severable.
AGENDA ITEM #7. h)
Multi-Family Housing Property Tax Exemption Agreement
The Loft at Second and Main 8
IN WITNESS WHEREOF, the parties hereto have executed this Agreement on the day
and year written above.
RENTON HERITAGE LLC
A Washington Limited Liability Company
____________________________
By: James G.S. Hwang
Managing Member
Aquarius Global LLC
CITY OF RENTON
____________________________
Denis Law, Mayor
APPROVED AS TO FORM:ATTEST:
_______________________________________________________
City Attorney Jason Seth, City Clerk
AGENDA ITEM #7. h)
Multi-Family Housing Property Tax Exemption Agreement
The Loft at Second and Main 9
STATE OF WASHINGTON )
) ss.
COUNTY OF KING )
On this ________ day of _____________________, 201_____, before the
undersigned, a Notary Public in and for the state of Washington, duly commissioned
and sworn, personally appeared before me James G.S. Hwang, to me known to be the
Managing Member of Aquarius Global LLC that executed the within and foregoing
instrument and acknowledged said instrument to be the free and voluntary act and
deed of said party, for the uses and purposes therein mentioned, and on oath stated
that he was authorized to execute said instrument.
In witness whereof I have hereunto set my hand and affixed my official seal the
day and year first above written.
[notary seal]
NOTARY PUBLIC
Printed Name:
Residing at
My commission expires
AGENDA ITEM #7. h)
Multi-Family Housing Property Tax Exemption Agreement
The Loft at Second and Main 10
STATE OF WASHINGTON )
) ss.
COUNTY OF KING )
On this ________ day of _____________________, 201_____, before the
undersigned, a Notary Public in and for the state of Washington, duly commissioned
and sworn, personally appeared before me Denis Law, to me known to be the Mayor
of the City of Renton, the municipal corporation that executed the within and foregoing
instrument, and acknowledged said instrument to be the free and voluntary act and
deed of said municipal corporation for the uses and purposes therein mentioned and on
oath stated that he was authorized to execute said instrument.
In witness whereof I have hereunto set my hand and affixed my official seal the
day and year first above written.
[notary seal]
NOTARY PUBLIC
Printed Name:
Residing at
My commission expires
AGENDA ITEM #7. h)
Exhibit A
Multi-Family Housing Property Tax Exemption Agreement
Exhibit A – Legal Description
The Lofts at Second and Main i
MULTI-FAMILY HOUSING PROPERTY
TAX EXEMPTION AGREEMENT
EXHIBIT A
LEGAL DESCRIPTION
LOTS 16 THROUGH 20, INCLUSIVE, BLOCK 13, TOWN OF RENTON, ACCORDING
TO THE PLAT THEREOF RECORDED IN THE VOLUME 1 OF PLANTS, PAGE 135,
IN KING COUNTY, WASHINGTON;
EXCEPT THE WEST 5 FEET OF SAID LOT 16 DEEDED TO THE CITY OF RENTON
BY QUIT CLAIM DEED RECORDED MAY 7, 1979 UNDER RECORDING NO.
7905070629; AND
EXCEPT THE WEST 5 FEET OF SAID LOT 17 DEEDED TO THE CITY OF RENTON
BY QUIT CLAIM DEED RECORDED MAY 7, 1979 UNDER RECORDING NO.
7905070628.
SITUATE IN THE CITY OF RENTON, COUNTY OF KING, STATE OF WASHINGTON.
AGENDA ITEM #7. h)
REGULAR COUNCIL - 16 Nov 2015
SUBJECT/TITLE: Group Health contract renewal
RECOMMENDED ACTION: Council Concur
DEPARTMENT: Human Resources / Risk Management
STAFF CONTACT: Nancy Carlson , Administrator
EXT.: 7656
FISCAL IMPACT:
Expenditure Required: $ 219,721 Transfer Amendment: $ N/A
Amount Budgeted: $ 219,721 Revenue Generated: $ N/A
Total Project Budget: $ N/A City Share Total Project: $ N/A
SUMMARY OF ACTION:
Council approval is needed for the annual renewal of Group Health Contract No. 0057500 for LEOFF I Retirees,
and Contract No. 1162600 for all active employees. Funding has been previously approved by Council in the
2016 Budget. The revisions are applicable to both of the renewal contracts. As in prior years, Group Health
does not send confirming contracts for signature until mid -year. The City Attorney’s Office has reviewed and
approved the 2016 contracts. Complete copies of the contract are available for r eview.
EXHIBITS:
A. 2016 rates confirmation
B. Contract revisions as of mid-October 2015
STAFF RECOMMENDATION:
Approve the annual Group Health Cooperative Medical contracts and authorize the Mayor and City Clerk to
sign.
AGENDA ITEM #7. i)
526GG07-1015
Rates Confirmation
City of Renton
Effective Date 1/1/2016 thru 1/1/2017
The below rates have been quoted for the following plan(s). Please sign below to confirm rates.
Applicant further acknowledges and agrees that payment of any premium due for the coverage shall constitute applicant's acceptance of the coverage agreement issued.
Core
Group Health
Group Name City of Renton
Group Number 1162600
RQ-97036
Rates by Tier
EE $ 736.26
EE/S $ 1,858.17
EE/1C $ 1,273.94
EE/2+C $ 1,743.58
EE/S/1C $ 2,395.83
EE/S/2+C $ 2,865.44
Coverage Provided By Group Health Cooperative
This health coverage meets or exceeds the minimum essential coverage requirements and the minimum value standard for the benefits it
provides.
This outpatient prescription drug coverage meets the Medicare Part D standard for creditable coverage.
Signature __________________________________________________ Date __________________________AGENDA ITEM #7. i)
526GG07-0414
Rates Confirmation
City of Renton -LEOFF 1 Retirees
Effective Date 1/1/2016 thru 1/1/2017
The below rates have been quoted for the following plan(s). Please sign below to confirm rates.
Applicant further acknowledges and agrees that payment of any premium due for the coverage shall constitute applicant's acceptance of the coverage agreement issued.
Core
Group Health
Group Name City of Renton - Leoff I Retirees
Group Number 0057500
RQ-97037
Rates by Tier
EE $ 892.07
S $ 1,013.75
1C $ 535.65
AAC $ 717.86
Medicare Rates by Tier MedicareAB $ 416.35
Coverage Provided By Group Health Cooperative
This health coverage meets or exceeds the minimum essential coverage requirements and the minimum value standard for the benefits it
provides.
Signature __________________________________________________ Date __________________________AGENDA ITEM #7. i)
GHC (5/8/15) 1
GROUP HEALTH COOPERATIVE
CONTRACT REVISIONS
Effective January 1, 2016
(Created 5/8/15)
This is the most current list of revisions, but this list is subject to change at any time.
CONTRACT CHANGE EXPLANATION
Benefit Details A business decision has been made to include cardiac rehabilitation as part of
the rehabilitation benefit. As such, the cardiac rehabilitation provision has
been deleted.
In accordance with federal department of labor requirements, post-mastectomy
bras/forms (as reflected in the Devices and Equipment provision) are limited to
2 every 6 months, with replacements covered within this 6 month period when
medically necessary due to a change in the Member’s condition.
In accordance with Washington state requirements, prescriptive oral agents and
blood glucose test strips (as reflected in the Diabetic pharmacy supplies
provision) are covered for a supply of 30 days or less per item.
A business decision has been made to include a description of specialty drugs,
and to include exclusion clarifications regarding over-the-counter equivalent
drugs and compound drugs, within the Drugs – Outpatient Prescription
provision.
A clarification regarding emergency services which include professional
services, treatment and supplies, facility costs, outpatient charges for patient
observation and medical screening exams required to stabilize a patient has
been added to the Emergency Services provision.
A clarification regarding coverage for infusion therapy has been added.
A clarification regarding homebirths being considered an outpatient service has
been added under the Maternity and Pregnancy provision.
In accordance with federal department of labor requirements, a clarification
has been made to the Plastic and Reconstructive Surgery provision regarding
reconstructive surgery of the non-diseased breast to produce a symmetrical
appearance (following a mastectomy).
A business decision has been made to include pulmonary and cardiac
rehabilitation to the Rehabilitation provision, and to revise the limits to reflect
30 inpatient days and 45 outpatient visits per calendar year.
General Exclusions The exclusion regarding benefits and related services, supplies and drugs that
are not medically necessary for the treatment of an illness, injury or physical
disability have been clarified to include the exception for those services
required by federal or state law.
Eligibility provision The certificate of creditable coverage provision has been removed as this
federal requirement no longer applies.
AGENDA ITEM #7. i)
REGULAR COUNCIL - 16 Nov 2015
SUBJECT/TITLE: Renewal of HMA (Healthcare Management Administrators) contract
for 2016
RECOMMENDED ACTION: Council Concur
DEPARTMENT: Human Resources / Risk Management
STAFF CONTACT: Nancy Carlson, Administrator
EXT.: 7656
FISCAL IMPACT:
Expenditure Required: $ 323,202 Transfer Amendment: $ N/A
Amount Budgeted: $ 323,202 Revenue Generated: $ N/A
Total Project Budget: $ N/A City Share Total Project: $ N/A
SUMMARY OF ACTION:
While the contract itself is unchanged, the fee schedule for HMA's (Healthcare Management Administrators)
services has been revised. HMA and Envision Rx continue to provide administrative services for the City to
handle its medical, dental and prescription claims within our self-funded plan. The total cost for services will
be approximately $41.50 per employee, per month. The fees include prescription services, administration of
medical and dental claims, and rights to use the Regence Preferred Provider Net work, as well as
utilization/large case management, COBRA and HIPAA administration services. Funds for these services were
included in the 2016 Budget.
EXHIBITS:
A. Revised HMA fee schedule for 2016
STAFF RECOMMENDATION:
Approve the 2016 Revised Fee Schedule and Administrative Services Agreement for medical/dental and
prescription claims processed by HMA and Envision Rx, and authorize the Mayor and City Clerk to sign the
Agreement.
AGENDA ITEM #7. j)
±*1MAEXHIBITASCHEDULEOFFEESForCityofRenton/#40345034ContractPeriod:01/01/2016through12/31/2016AdministrativeFeesRatesforthecontractedtimeperiodapplytoservicesadministeredbyHMA.Feesforoutsidevendorsaresubjecttochangeatanytime.HMAfeesandconmiissionsmayremainineffectbeyondtheabove-statedtermuntilchangedbymutualwrittenagreementoftheparties.ClaimAdministrativeFeesFeeDescription$19.85PEPMforMedicalPlanAdministration—NowincludesACACompliancefeeIfqualifyingforanincentivediscountallsigneddocumentsmustbereceivedbythe7thcalendardayofthemonthpriortotheeffectivedate.NewPEPMwithdiscount:$19.65$3.25PEPMDentalIndemnityPlanAdministration$1.50PEPMforHMANationalDentalNetworkAccessfee—($0.50retainedbyHMA,$1.00remittedtoRegence)($1.50PEPMinadditiontotheDentalPlanAdministration.)$0.65PEPMVisionHardware$5.50PEPMforHMAPreferredwithPHCSNationalPPONetworkHMAPreferredprovidesaccesstoRegenceBlueShieldinWesternWashington,AsurisNWHealthinEasternWashington,RegenceBhteCrossBhteShieldofOregon,RegenceBlueShieldofIdahoandRegenceBitteCrossBhteShieldofUtah.PHCSprovidesnetworkaccessinallotherstates.NoBlueCardaccessisprovided.A30%ofsavingsfeewillbechargedwhenaWA,OR,IDorUTemployeeordependentseekscareoutsideofthesestates.$10.00PerClaimMedicarere-pricingfeeforKidneyDialysisbenefit—onlyapplicableifthekidneydialysisbenefitisaccepted30%ofClaimsNegotiation,HospitalBillAudit,andOutofNetworkClaimRe-pricingSavingsServicesasoutlinedinSection4(g)ofAgreement4k(i/x)oftheAgreementofExhibitB$3.75PEPMLiveWellBaseProgram(CaseManagement,ManagedBehavioralHealthandHMATPAExhibitAPage1of5revision:8.25.2015BBAGENDA ITEM #7. j)
UtilizationReview)$0.75PEPMPharmacyBenefitManagement(PBM)coordinationandinterfacefeeExternalVendorAdministrativeServicesfeeDescription$4.05EnvisionRxadministrativefee$4.05toEnvisionRx,$0.00toHMABrokerFeesfeeDescription$2,950.00PEPMBrokerCommissionFeepayabletoR.L.EvansAdditionalServicesAcceptDeclineServiceDescription&CostOptioniWilametteDental(HMAretains2.5%)EmployeeOnly$00.00Employee+Spouse$00.00Employee+Children$00.00Family$00.00Option2WillametteDental(HMAretains2.5%)EmployeeOnly$00.00Employee+Spouse$00.00Employee+Children$00.00Family$00.00PleasecontactAMforquote$5.25PEPMforTotalEnrollElite$2.75PEPMforTotalEnrollCOBRAServices$1.35PEPMMedicalJRxVisionDentalFSAAdministration$5.25perenrolleepermonthwithoutdebitcard($500annualEUfee)FSAAdministration$6.25perenrolleepermonthwithdebitcard($500annualUUfee)HMATPAExhibitAPage2of5revision:8.25.2015B8AGENDA ITEM #7. j)
ACASupportServicesBuyUp:Pleasenote:clientsmustelecttheservicefor2015taxyearreportingdueinearly2016bySept1,2015Option1—1094&1095FilingServiceDPleaserefertoEngagementLetterforSpecificFeesOption2—fullTimeEmployeeTracking&CalculationPleaserefertoEngagementLetterforSpecificFeesFiduciaryServices:$2.00PEPMHRAStandardBenefitDesign$4.00perenrolleepermonth($150.00monthlyDminimum)HRAEnhancedBenefitDesign$7.50perenrolleepermonth($150.00monthlyDminimum)HRAIntegratedMedicallRxDeductible$9.00perenrolleepermonth($250.00DE1monthlyminimum)IntegratedMaximumOutofPocket(MOOP)forPPOandNon-QualifiedHDHP(SharedAccumulator)FeeSchedule:$.90perenrolleepermonthQHDHPServices$.90perenrolleepermonthD___MDLiveTelehealth:Medical$1.00PEPM+$38/visitBehavioralHealthE$.30PEPM+PervisitconsultingfeeLiveWellLiteHealthPromotionProgram-$2.75PEPM—includesWebToolsIhealthRiskQuestionnaire.WELCOAmembershipand4mailingstoemployees.LiveWellStandardHealthPromotionProgram-$4.40PEPM-includesf—IDiseaseManagement,WebTools,andHealthRiskQuestionnaire.LiveWellEnhancedHealthPromotionProgram-$6.75PEPM—addsLifestyle[CoachingtotheStandardHealthPromotionProgram-Additionalfeesmayapplydependentupon%ofparticipation—Seeproductdescriptionfordetails.\LiveWell24HourNurseLine$0.65PEPM/MC)LiveWellMaternityProgram—$350.00percaseLiveWellBiometricScreening—$60.00perparticipant(25minimumDparticipation)LiveWellIncentiveGiftCardAdministration-$0.30PEPM+CostofincentiveLiveWellMemberCommunicationPackages:D_Option_1-$0.85_PEPM_Option2-$1.35_PEPMEmployeeAssistanceProgram(EAP)PEPMCheckoneifaccepted:DL$1.25PEPM3sessionmodel$1.50PEPM4sessionmodelHMATPAExhibitAPage3of5revision:8.25.2015BBAGENDA ITEM #7. j)
LI$1.75PEPM6sessionmodelConsolidatedBillingOption1-withPremiumRemittanceandNOEligibilityLILIAdministration$2.00PEPMConsolidatedBillingOption2-withPremiumRemittanceandEligibilityLIAdministration$3.00PEPMand$0.50PEPMforanyvendor(s)otherthanWDS,WillametteDentalGrouporVSPSummaryPlanDocument(SPD)$1,000Re-writeFee(forthe1stSPDand$250forLILIeachadditional)gLISummaryPlanDocument($PD)incorporationofamendments$500.00perSPDLILIAmendmentDocument$125.00perAmendmentLICoordinationofSPDprintingservices-cost+20%LISummaryBenefitCoverage$350.00perplanstandarddelivery—4weeksfromreceiptofrequest.LI1LISummaryBenefitCoverage$700.00perplanrushdelivery—Lessthan4weeksfromreceiptofrequest.üLIIDrecardfee$2.00peremployee(Incidentalreissuenocost)ExcessLossServicesIncompensationfortheworkthatHMAdoestosupportexcesslosscarriers,HMAreceivesanadministrativeallowanceof2.5%frommostofourpreferredcarriers.Ifyouareusinganon-preferredcarrier,therewillbeaninterfacefeeof3.0%ofexcesslosspremiumthatisassessedtothegroupinlieuoftheadministrativeallowance.TheseexcesslossfeeswillbereflectedontheinvoiceonaPEPMbasis.HMAreservestherighttodeclinetoworkwithnon-preferredexcesslosscarriers.Ifweagreetoadministeraplanwithanexcesslosscarrierthatisnotpreferred,wewillchargeaninterfacefeeof3.0%ofexcesslosspremiumandwillaskforasignedwaiverofliabilityfromthegroup.Forcarrierswherewearenotanapprovedbenefitadministrator,HMAreservestherighttodeclinetoproceedwiththeapprovalprocessatourdiscretion.Fornewgroups,theinterfacefeefornon-preferredcarriersisbasedonthecarriersprojectedenrollmentandpremiumrates.Forrenewinggroups,theinterfacefeefornon-preferredcarriersiscalculatedbasedonthefinalstoplossrenewalpremiumratesandenrollmentforthelastmonthofthepriorcontractperiod.Theratesarecalculatedasfollows:[.03x(singleSpecificStopLossPremiumRatexsingleenrollment)+(familySpecificStopLossPremiumRatexfamilyenrollment)+(AggregateStopLossPremiumRatextotalenrollment)J/TotalEnrollmentHMATPAExhibitAPage4of5revision:8.25.2015BEAGENDA ITEM #7. j)
Acceptance[NWITNESSWHEREOF,thepartieshavecausedthisAgreementtobeexecutedbytheirdulyauthorizedrepresentativesontherespectivedatessetforthbelow,effectiveasofthedayandyearfirstabovewritten.CityofRentonHealthcareManagementAdministrators,Inc.By:By:Name:Name:DavidSnodgrassTitle:Title:President,CEODate:Date:HMATPAExhibitAPage5of5revision:8.25.2015GBAGENDA ITEM #7. j)
REGULAR COUNCIL - 16 Nov 2015
SUBJECT/TITLE: CAG-12-008, Supplemental Agreement No. 4 - Coast & Harbor
Engineering: Shoreline Mitigation Project
RECOMMENDED ACTION: Refer to Transportation (Aviation) Committee
DEPARTMENT: Transportation Systems Division
STAFF CONTACT: Kamran Yazdidoost, Airport Civil Engineer
EXT.: 7473
FISCAL IMPACT:
Expenditure Required: $ 55,330 Transfer Amendment: $ 40,000
Amount Budgeted: $ 50,000 Revenue Generated: $ N/A
Total Project Budget: $ 50,000 City Share Total Project: $ 55,330
SUMMARY OF ACTION:
The seaplane base dredging phase of the Seaplane Base Dredging & Shoreline Mitigation Project was
completed in January 2014. A scope of work for the shoreline mitigation phase of the project has been
identified. Coast & Harbor Engineering was selected to complete both phases of the project.
Coast & Harbor Engineering has submitted Supplemental Agreement No. 4 to CAG-12-008 that will extend the
contract to January 31, 2017 and increase it by $55,330.00, to a total of $203,410.55. The scope of work
includes permitting, preliminary and final engineering, preparation o f bid documents specific to the shoreline
mitigation phase of the project and bidding assistance that will provide a feasibility assessment for removal of
woody debris from the Cedar River delta.
A transfer of $40,000 from the Airport ending fund balance to the Seaplane Base Dredging & Shoreline
Mitigation Project will be included as part of the 2015 carry forward budget adjustment to cover the increase
in cost.
EXHIBITS:
A. Supplemental Agreement No. 4 to CAG-12-008
STAFF RECOMMENDATION:
Authorize the Mayor and City Clerk to execute Supplemental Agreement No. 4 to CAG-12-008 with Coast &
Harbor Engineering for the Seaplane Base Dredging & Shoreline Mitigation Project and amend the
Maintenance Dredging & Shoreline Mitigation CIP fund, (422.725080.016 .594.46.63.000) by transferring
$40,000 from the Airport ending fund balance. The transfer will be included as part of the 2015 carry forward
budget adjustment.
AGENDA ITEM #7. k)
IISectionIV,TIMEFORBEGINNINGANDCOMPLETION,isamendedtochangethenumberofcalendardaysforcompletionoftheworktoread:January31,2017IIISectionV,PAYMENT,shallbeamendedasfollows:AdditionofTasksintheamountof$55,330toexistingamountof$148,080.55$203,410.ESassetforthintheattachedExhibitA,andbythisreferencemadeapartofthissupplement.Ifyouconcurwiththissupplementandagreetothechangesasstatedabove,pleasesignintheappropriatespacesbelowandreturntothisofficeforfinalaction.By:R.ShanePhillips,PrincipalEngineerBy:DenisLaw,Mayor______ConsultantSignaturApprovingAuthoritySignatureDateaWashingtonStateDepartmentofTransportationSupplementalAgreementNumber110JamesStreet,Suite101EdmondsWA98020OriginalAgreementNumberCAG-12008Phone:425-778-6042ProjectNumber.ExecutionDateCompletionDate1/25/20122/28/2016ProjectTitleNewMaximumAmountPayableSeaplaneBaseMaintenanceDredgeProject$203,410.55DescriptionofWorkPermittingandfinalengineeringservicesfortheshorelinemitigationprojectfollowingthemaintenancedredgingworkattheWillRogersWileyPostMemorialSeaplaneBasecompletedinJanuary2014.CityofRentonTheLocalAgencyofdesirestosupplementtheagreemententeredintowithCoast&HarborEngineeringandexecutedon1/25/2012andidentifiedasAgreementNo.CAD-12-008Allprovisionsinthebasicagreementremainineffectexceptasexpresslymodifiedbythissupplement.Thechangestotheagreementaredescribedasfollows:Section1SCOPEOFWORK,isherebychangedtoread:AddTasks10-15-seeattachedExhibitA-2DOTForm140-063EFRevised9)2005AGENDA ITEM #7. k)
COAST&HARBOR4ENGINEERINGADivisionofHatchMottMacDonaldCAG12-008ExhibitA-2—ScopeofWorkCITYOFRENTON—WILLROGERSWILEYPOSTMEMORIALSEAPLANEBASEMAINTENANCEDREDGINGPROJECT—SHORELINEMITIGATIONPROJECTIntroduction:TheCityofRenton(City)requestedCoast&HarborEngineering(CHE),aDivisionofHatchMottMacDonaldtodevelopascopeofservicesforprovidingpermittingandfinalengineeringservicesfortheshorelinemitigationprojectfollowingthemaintenancedredgingworkattheWillRogersWileyPostMemorialSeaplaneBasecompletedinJanuary2014.Theworkoutlinedwithinthisscopeofworkwillcommenceuponexecutionofthisamendedscopeofworkpursuanttotheoriginalcontract#CAG12-008betweenCHEandtheCity.Theshorelinemitigationpermittingsupport,preliminaryandfinaldesign,andbiddingassistanceworkoutlinedwithinthisscopeofworkwillincludetheremovalofapproximately75’ofexistingbulkheadmaterials(i.e.concreteslabs,variousdebrisandapproximately6-8treatedtimberpiles).Additionally,newriprapshorelineprotection,aspawninggravelbeachandLargeWoodyMaterial(LWM)willbedesignedforinstallationalongthelengthofthe75’shorelinemitigationarea.Assumptions:Assumptionsthatarepartofthescopeofworkareasfollows:•AllworkoutlinedinthisscopeofworkislimitedtothatdescribedbytheWashingtonStateDepartmentofFishandWildlife(WDFW)HydraulicProjectApproval(HPA)#131474-1datedAugust23,2013.•Widener&Associateswillberesponsibleforallpermittingrelatedsupport(i.e.permitdocumentpreparationlmodificationandagencycorrespondence).•CHEwillberesponsibleforthedevelopmentofthePlans,SpecificationsandEstimates(PS&E)inthefinaldesignofallshorelinemitigationwork.ThisscopeofworkextendsthroughthecompletionoffinalPS&Eandprojectbidding.•ItisassumedthatpreparationofthefinalbidpackagewillbecompletedbytheCity.•AssistanceduringtheprojectconstructionphaseisnotincludedwiththisSOW.ScopeofWork:Task10PermittingSupport(Widener&Associates)Purpose:Thepurposeofthistaskistoprovidepermittingsupportandcoordinationwithagencies(local,stateandfederal).Scope:ProduceormodifyandprovidepermitcoordinationwithagenciesfortheSection404,401,andHPApermitsassociatedwiththemitigationwork.Assistindevelopingthewaterqualitymonitoringplan.CityofRentonSeaplaneBaseMaintenanceDredgingProject-MitigationOctober23,2015ScopeofWork—Amendment2Page1of4AGENDA ITEM #7. k)
COAST&HARBOR4ENGINEERINGADivisionofHatchMottMacDonaldTask10Deliverable:MonthlyPermittingProgressReports.Productionand/ormodficationtotheexistingpermitsrequiredtocompletethemitigationwork.Respondingtoagencycommentsandquestionsasrequired.DraftWaterQualityMonitoringPlan.Responsetobidder(sandCityquestionsduringthebiddingphaseoftheproject.Task11PreliminaryEngineeringAnalysisandDesign(CHE)Purpose:Thepurposeofthistaskistodeveloppreliminary-levelengineeringandconstructiondetailsbaseduponthemitigationworkoutlinedwithintheWDFW’sHPAdatedAugust23,2013,forthepurposeofassemblingnecessarytechnicalinformationanddrawingsforregulatorypermitapplication(s).Scope:Preliminaryengineeringanalysisanddesign(50%designlevel)fortheproposedshorelinemitigationprojectwillbeconductedaspartofthistask.Preliminaryengineeringanalysisfortheexistingshorelineenhancementarea(approximately75feetofshorelineeastoftheSeaplaneBase)willincludeadelineationofthe75’mitigationareaandmaterialstoberemovedfromthesite(e.g.concreteslabs,timberpiles,metaldebris,etc.).Thesizeofriprapnecessaryforshorelineprotectionwillbedeterminedandincorporatedintothedrawingsbasedupontheresultsoflimitednumericalinodeliigofwindwavesandriverinecurrents(100-yearpeakflo)atthesite.Preliminaryengineeringanalysiswillalsoincludedevelopingthegeometryofagravelbeachtobeconstructedwaterwardoftheinstalledriprap.AnevaluationofLWMplacementwillbeconductedandlocationswillbeidentifiedandincorporatedintothepermittingdrawings.Preliminarydesignworkwillconsistofproducing50%designlevelpermitdrawingsanddevelopingatechnicaldescriptionoftheproposedwork.The50%levelengineeringdesignplanswillbeassembledinU.S.ArmyCorps8.5x11formatforJARPAdrawings.Developmentofapreliminarylevelengineer’sestimateofconstructioncostwillalsobedeveloped.Task11Deliverable:Aprojecttechnicaldescriptionand50%designdrawings(‘inJARPAforinat)forpermittingwillbesubmittedtotheCityandincorporatedinpermittingdocumentation.Apreliminary(50%)engineer‘scostestimateforconstruction.Task]]workwillbecompletedpriortoFebruary1,2016.Task12FinalEngineeringDesign(CHE)Purpose:ThepurposeofthistaskistodevelopaBasisofDesign,finalstampedplans,technicalspecifications,andfinalcostestimatesfortheproject.Scope:•BasisofDesignoUpdatedBasisofDesigntoreflectcurrentprojectcriteria,designcriteriaandscopeofwork.•FinalEngineeringDesignoThistaskincludesfinalizingtheengineeringdesignforthepermitted,shorelinemitigationdesignandproducingtheassociateddrawingsandtechnicalspecificationsandcostestimates(PS&E)forbiddingandconstruction.A90%completionlevelsetCityofRentonSeaplaneBaseMaintenanceDredgingProject-MitigationOctober23,2015ScopeofWork—Amendment2Page2of4AGENDA ITEM #7. k)
VCOAST&HARBOR4ENGINEERINGADivisionofi-latchMottMacDonaldofPS&EwillbesubmittedtotheCityforreviewandcomment.Theengineer’scostestimatewillbesubmittedatthe90%completionlevel.CHEwillattendareviewmeetingwiththeCitytodiscussthe90%submittaldocuments.Commentsfromthe90%submittalwillbeincorporatedintothefinalforbidplansandspecifications.Thefinalengineeringdesignwillbedevelopedwithsufficientdetailforbiddingandconstruction.ElectronicfilesofallACADdrawingsandtechnicalspecificationswillbesubmittedtotheCityat100percentcompletion.DesigndrawingswillbedevelopedusingAutoCAD2013.TechnicalspecificationswillbeassembledusingWSDOTstandards.Task12Deliverable:BasisofDesignTechnicalMemorandum.Electroniclix]790%levelbiddrawings,specicationsandcostestimateinelectronicFDFforinatforreview.Electronicandone11x17hardcopy100%levelbiddrawings,specUIcationsandcostestimateinelectronicFDFandAC’ADforniat.AttendonemeetingwiththeCityinRenton,Wa.Task12deliverableswillbecompleted2monthsfollowingcompletionofTask11.Task13BiddingAssistance(CHE)Purpose:ThepurposeofthistaskistoprovidetechnicalengineeringassistancetotheCityduringthebiddingphaseoftheproject.Scope:CHEwillprovidetechnicalassistancetotheCityduringthebiddingphaseoftheproject.Assistancewillincluderespondingtobidder’squestionsandassistancewiththedevelopmentofaddendums.Estimatedlevelofengineeringassistancewasdeterminedtobe10hours.Task13Deliverable:BidFormReview.Emailsummaryofresponsestoquestions,revisionstoplansheetsandtechnicalspecfIcationsasneeded,andlanguageforaddendumasneeded.Task14LargeWoodyMaterialRemovalFeasibilityAssessment(CHE,Widener&Associates)Purpose:Largewoodymaterial(LWM)providesbirdsanctuarywithinthedelta(locatedattheendofRunway16),posingadirectsafetyconcernanddangertoarriving/departingaircraft.The•purposeofthistaskistoconductafeasibilityanalysistoinvestigatethepermittingandconceptualdesignmeasuresnecessarytoremovetheexistinglargewoodymaterial(LWM)fromtheCedarRiverdelta.Scope:CHEwillinvestigateincorporatingtheremovaloftheLWMfromtheCedarRiverdeltaintothemitigationprojectdesignandconstruction.TheworkwillincludeincorporatingtheareastobeclearedofLWMwithintheCedarRiverdeltaintotheprojectplans,constructabilityassessmentandafeasibilityanalysistobepresentedinaseparatetechnicalmemorandumunderthistask.Widener&Associateswillprovideallpermittingsupportforthistask.Task14Deliverable:TechnicalMemorandum.CityofRentonSeaplaneBaseMaintenanceDredgingProject-MitigationOctober23,2015ScopeofWork—Amendment2Page3of4AGENDA ITEM #7. k)
COAST&HARBOR4ENGINEERINGADivisionofHatchMottMacDonaldTask15TopographicSurveyPurpose:Conductnewtopographicsurveytoprovidebaselineconditionsforconductingbasisforfinaldesignandprojectbudgeting,andtoserveasthepre-constructionsurvey.TopographicSurveyoAnewtopographicsurveywillbeconductedwithintheprojectworkareatoprovidecurrentconditionsfortheengineeringwork.Thenewsurveywillwillutilizeexistingpropertyboundaryandutilitylocationdatafordevelopmentofaprojectbasemap.SurveycoverageareawillincludetheproposedmitigationareaatthesouthendofRunway16andincludewaterwardlocationstothenorth.Task15Deliverable:ACADfileofbasemapcontainingthenewtopographicsurveydata.Budget:Thefollowingbudgetwasdevelopedfortheabovedescribedscopeofwork.Allworkwillbeconductedonanegotiatedhourlyrateofpaywithatotalnottoexceedamount.ContingentworkitemswillrequireauthorizationfiomtheCitypriortoconductintheworkoutlinedinthosetasks.SeaplaneBaseMaintenanceDredgingProjectTaskBudget10—PermittingSupport(Widener&Associates)$7,50011—PreliminaryEngineeringandAnalysis(CHE)$11,90012—FinalEngineeringDesign(CHE)$22,40013—BiddingAssistance(CHE)$1,58014—LargeWoodyMaterialRemovalFeasibilityAssessment(CHE$7,600&Widener&Associates)15—TopographicSurvey$4,350Subtotal$55,330CityofRentonSeaplaneBaseMaintenanceDredgingProject-MitigationScopeofWork—Amendment2October23,2015Page4of4AGENDA ITEM #7. k)
CITYOFRENTON,WASHINGTONORDINANCENO.______ANORDINANCEOFTHECITYOFRENTON,WASHINGTON,AMENDINGSECTION4-1-160OFCHAPTER1,ADMINISTRATIONANDENFORCEMENT,OFTITLEIV(DEVELOPMENTREGULATIONS)OFTHERENTONMUNICIPALCODE,SETTINGTHEIMPACTFEEAT$4,635PERNEWSINGLE-FAMILYHOMEAND$1,534PERNEWMULTI-FAMILYINTHEISSAQUAHSCHOOLDISTRICT;SETTINGTHEIMPACTFEEAT$4,990PERNEWSINGLEFAMILYHOMEAND$2,163PERNEWMULTI-FAMILYHOMEINTHEKENTSCHOOLDISTRICT;SETTINGTHEIMPACTFEEAT$5,643PERNEWSINGLEFAMILYHOMEAND$1,385PERNEWMULTIFAMILYHOMEINTHERENTONSCHOOLDISTRICT;ANDADOPTINGTHECAPITALFACILITIESPLANSOFTHEISSAQUAH,KENTANDRENTONSCHOOLDISTRICTS.WHEREAS,underSection4-1-160ofChapter1,AdministrationandEnforcement,ofTitleIV(DevelopmentRegulations),oftheRentonMunicipalCode,asamended,andthemapsandreportsadoptedinconjunctiontherewith,theCityofRentonhasheretoforecollectedonbehalfofthelssaquahSchoolDistrictanimpactfeeof$4,560foreachnewsingle-familyhomeand$1,458foreachnewmulti-familyunitbuiltwithintheDistrict’sboundaries;andWHEREAS,thelssaquahSchoolDistrictrequestedthattheCityofRentonadopttheDistrict’s2015CapitalFacilitiesPlan,whichincludesanincreaseintheimpactfeefornewsingle-familyhomesto$4,635andanincreaseintheimpactfeefornewmulti-familyunitsto$1,534;andWHEREAS,underSection4-1-160ofChapter1,AdministrationandEnforcement,ofTitleIV(DevelopmentRegulations),oftheRentonMunicipalCode,asamended,andthemapsandreportsadoptedinconjunctiontherewith,theCityofRentonhasheretoforecollectedonbehalfoftheKentSchoolDistrictanimpactfeeof$5,486foreachnewsingle-familyhomeand$3,378foreachnewmulti-familyunitbuiltwithintheDistrict’sboundaries;and1AGENDA ITEM # 9. a)
ORDINANCENO.WHEREAS,theKentSchoolDistrictrequestedthattheCityofRentonadopttheDistrict’s2015/2016—2020/2021CapitalFacilitiesPlan,whichrequestsadecreaseintheimpactfeefornewsingle-familyhomesto$4,990andadecreaseintheimpactfeefornewmulti-familyunitsto$2,163;andWHEREAS,underSection4-1-160ofChapter1,AdministrationandEnforcement,ofTitleIV(DevelopmentRegulations),oftheRentonMunicipalCode,asamended,andthemapsandreportsadoptedinconjunctiontherewith,theCityofRentonhasheretoforecollectedonbehalfoftheRentonSchoolDistrictanimpactfeeof$5,541foreachnewsingle-familyhomeand$1,360foreachnewmulti-familyunitbuiltwithintheDistrict’sboundaries;andWHEREAS,theRentonSchoolDistrictrequestedthattheCityofRentonadopttheDistrict’s2015-2021CapitalFacilitiesPlan,whichincludesanincreaseintheimpactfeefornewsingle-familyhomesto$5,643,andincreaseintheimpactfeeformulti-familyunitsto$1,385;NOW,THEREFORE,THECITYCOUNCILOFTHECITYOFRENTON,WASHINGTON,DOESORDAINASFOLLOWS:SECTIONI.Subsection4-1-160.D.5ofsubsection4-1-160.D,FeeCalculations,ofChapter1,AdministrationandEnforcement,ofTitleIV(DevelopmentRegulations)oftheRentonMunicipalCode,isherebyamendedasfollows:5.TheCityCouncilmayadjustthefeecalculatedunderthissubsection,asitseesfittotakeintoaccountlocalconditionssuchas,butnotlimitedto,pricedifferentialsthroughouteachrespectiveschooldistrictinthecostofnewhousing,schooloccupancylevels,andthepercentofeachschool2AGENDA ITEM # 9. a)
ORDINANCENO.district’sCapitalFacilitiesBudget,whichwillbeexpendedlocally.TheCityCouncilestablishesthefollowingfees:SingleFamilyFeeMulti-FamilyandAccessoryAmountDwellingUnitFeeAmountlssaquahSchoolDistrict$4,560.00$4,635$1,458.00$1,534KentSchoolDistrict$5,426.00$4,990$3,378.00$2,163RentonSchoolDistrict$5,541.00$5,643$1,360.00$1,385SECTIONII.Subsection4-1-160.i.1ofsubsection4-1-160.i,AdoptionofEachSchoolDistrict’sCapitalFacilitiesPlanandSubmissionoftheAnnualUpdatesandReportandData,ofChapter1,AdministrationandEnforcementofTitleIV(DevelopmentRegulations)oftheRentonMunicipalCode,isherebyamendedasfollows:1.RentonadoptsthefollowingcapitalfacilitiesplansbyreferenceaspartoftheCapitalFacilitiesElementofRenton’sComprehensivePlan:a.ThelssaquahSchoolDistrictNo.41120142015CapitalFacilitiesPlan;b.TheKentSchoolDistrictNo.4152014/2015—2019/20202015/2016—2020/2021CapitalFacilitiesPlan;andc.TheRentonSchoolDistrictNo.4032014—20202015—2021CapitalFacilitiesPlan.3AGENDA ITEM # 9. a)
ORDINANCENO.SECTIONIII.Thisordinanceshallbeeffectiveuponitspassage,approvalandfive(5)daysafteritspublication.PASSEDBYTHECITYCOUNCILthis_____dayof__________________________,2015.JasonA.Seth,CityClerkAPPROVEDBYTHEMAYORthis_____dayof__________________________,2015.DenisLaw,MayorApprovedastoform:LawrenceJ.Warren,CityAttorneyDateofPublication:_________________ORD:1892:10/20/15:scr4AGENDA ITEM # 9. a)
1
CITY OF RENTON, WASHINGTON
ORDINANCE NO. ________
AN ORDINANCE OF THE CITY OF RENTON, WASHINGTON, AMENDING
SECTIONS 4‐2‐080 AND 4‐2‐120 OF CHAPTER 2, ZONING DISTRICTS – USES AND
STANDARDS, OF TITLE IV (DEVELOPMENT REGULATIONS) OF THE RENTON
MUNICIPAL CODE, AMENDING THE RESIDENTIAL ZONING STANDARDS IN THE
CA (COMMERCIAL ARTERIAL) ZONE.
WHEREAS, the City seeks to ensure that high density occurs in locations where the
infrastructure is adequate, either existing or planned, as well as to balance where new high
density occurs with where it exists so that each community can flourish; and
WHEREAS, the City Council previously enacted a moratorium on residential
development in the CA (Commercial Arterial) Zone in order to allow staff time to review the
appropriateness of allowing high density away from central areas not associated with a
designated regional growth center, and to prepare an ordinance; and
WHEREAS, this matter was duly referred to the Planning Commission for investigation
and study, and the matter having been considered by the Planning Commission, and the
amendment request being in conformity with the City's Comprehensive Plan, as amended; and
WHEREAS, the Planning Commission held a public hearing on October 21, 2015, having
considered all matters relevant thereto, and all parties having been heard appearing in support
or in opposition;
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF RENTON, WASHINGTON, DOES
ORDAIN AS FOLLOWS:
AGENDA ITEM # 9. b)
ORDINANCE NO. ________
2
SECTION I. Subsection 4‐2‐080.A.18 of subsection 4‐2‐050.A, Subject to the
Following Conditions, of Chapter 2, Zoning Districts – Uses and Standards, of Title IV
(Development Regulations) of the Renton Municipal Code, is hereby amended as follows:
18. Specified use(s) are not allowed within one thousand feet (1,000') of
the centerline of Renton Municipal Airport runway. In the UC Zone, buildings
adjacent to pedestrian‐oriented streets, designated as such via Master Plan or
similar document approved by the City, shall be mixed use with ground‐floor
commercial uses; in all other applicable Zones, buildings shall be mixed use with
ground‐floor commercial. Where required, commercial space shall be provided
on the ground floor at thirty feet (30') in depth along any street frontage.
Averaging the minimum depth may be permitted through the site plan review
process, provided no portion of the depth is reduced to less than twenty feet
(20'). All commercial space on the ground floor shall have a minimum floor‐to‐
ceiling height of fifteen feet (15'). Residential uses shall not be located on the
ground floor along any street frontage.
Residential uses are not permitted in the Valley or Benson, Cedar River,
Talbot, or Valley Community Planning Areas. Community Planning Areas are
identified in the City of Renton’s COR Maps, the City’s online interactive mapping
application available through the City’s website.
SECTION II. The subsection entitled “Density” contained in subsection 4‐2‐120.A,
Development Standards for Commercial Zoning Designations (CN, CV, & CA), of Chapter 2,
Zoning Districts – Uses and Standards, of Title IV (Development Regulations) of the Renton
AGENDA ITEM # 9. b)
ORDINANCE NO. ________
3
Municipal Code, is hereby amended as shown on Attachment A. The rest of the subsections
shall remain as currently codified.
SECTION III. Resolution No. 4263 passed by Council on October 26, 2015, adopting a
moratorium upon the submission, acceptance, processing or approval of any applications for
residential development within the CA (Commercial Arterial) Zone, except within the City
Center Community Area and for previously approved and valid land use applications, is hereby
repealed, and the moratorium is hereby repealed.
SECTION IV. This ordinance shall be effective upon its passage, approval, and five (5)
days after publication.
PASSED BY THE CITY COUNCIL this _______ day of ___________________, 2015.
Jason A. Seth, City Clerk
APPROVED BY THE MAYOR this _______ day of _____________________, 2015.
Denis Law, Mayor
Approved as to form:
Lawrence J. Warren, City Attorney
Date of Publication:
ORD:1881:10/5/15:scr
AGENDA ITEM # 9. b)
ORDINANCE NO. ________ ATTACHMENT A ‐ 1 4‐2‐120.A DEVELOPMENT STANDARDS FOR COMMERCIAL ZONING DESIGNATIONS (CN, CV, & CA) CN CV CA UC DENSITY (Dwelling Units per Net Acre) Minimum Net Residential Density9 None 20 dwelling units per net acre. 10 dwelling units per net acre. 20 dwelling units per net acre except for mixed use development. Maximum Net Residential Density9 4 dwelling units per structure. Assisted living bonus: 1.5 times the maximum density may be allowed subject to conditions of RMC 4‐9‐065. 80 dwelling units per net acre. Assisted living bonus: 1.5 times the maximum density may be allowed subject to conditions of RMC 4‐9‐065. 60 dwelling units per net acre in the City Center and Highlands Community Planning Areas. 30 dwelling units per net acre in the East Plateau and Kennydale Community Planning Areas. 85 du/acre (150 du/acre) if ground floor commercial is provided. Assisted living bonus: 1.5 times the maximum density may be allowed subject to conditions of RMC 4‐9‐065. AGENDA ITEM # 9. b)