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Regular Council Agenda Packet - 19 Aug 2013 - Agenda - Pdf
AGENDA RENTON CITY COUNCIL REGULAR MEETING August 19, 2013 Monday, 7 p.m. *REVISED* 1.CALL TO ORDER AND PLEDGE OF ALLEGIANCE 2.ROLL CALL 3.PROCLAMATION a. Ready In Renton Month - September 2013 4.PUBLIC MEETINGS a. Alpine Nursery Annexation - 10% Notice of Intent to Annex approximately 17.1 acres bordered by parcel lines in proximity to SE 142nd Pl. to the north, 161st Ave. SE to the east, SE 146th Pl. to the south, and 160th Ave. SE to the west. b. Colacurcio Annexation - 10% Notice of Intent to Annex approximately 4.1 acres bordered by parcel lines in proximity to S 114th St. to the north, Lake Washington to the east, S 115th St. to the south, and Rainier Ave. S to the west. c. Maertins Annexation -10% Notice of Intent to Annex approximately 4.2 acres bordered by NE 16th St. at the north, parcel lines in proximity to 145th Pl. SE to the east, SE Renton-Issaquah Rd to the south, and 144th Ave. SE to the west. 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 one-half hour. The second comment period later on in the agenda is unlimited in duration.) When you are recognized by the Presiding Officer, please walk to the podium and state your name and city of residence for the record, SPELLING YOUR LAST NAME. 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 Council meeting minutes of 8/12/2013. Council concur. b. Mayor Law appoints Sojin Thompson to the youth position on the Parks Commission for a term expiring 6/1/2017. Refer to Community Services Committee. c. Mayor Law reappoints the following individuals to the City Center Community Plan Advisory Board: Angela Beneditti, Dana Rochex, Rod Swift, Brian Van Houten for terms expiring 8/31/2016; and Doug Baugh for a term expiring 8/31/2014. Council concur. Page 1 of 200 d. Mayor Law reappoints David Fleetwood and Michael Drollinger to the Planning Commission for a three-year term expiring 6/30/2016. Council concur. e. Administrative Services Department recommends approval of an addendum for Project #65 to the Community Connectivity Consortium agreement (CAG-11-176), to provide additional fiber optic cable from SW 7th St. and Rainier Ave. S to the intersection of State Route 181, also known as West Valley highway and Southwest Grady Way to King County Regional Communications and Emergency Coordination Center, KC-RCECC. Council concur. f. City Attorney recommends amending City Code Section 2-9-8 by reducing the penalty for possessing or consuming alcohol in parks to a civil violation. Refer to Community Services Committee. g. Community and Economic Development Department recommends waiver of compensation and the processing fee for the area along Sunset Lane NE to be vacated in Street Vacation VAC-13- 001, Renton Housing Authority, Petitioner. Council concur. h. Community Services Department recommends approval of a one-year lease agreement, with up to four mutual-agreement one-year extensions, of the Tiffany Park Recreation Building with Renton Youth Advocacy Center (RYAC) to provide after-school programs for youth age 12- 18. Revenue generated is $7,200 per year. Council concur. i. Community Services Department recommends approval of a new thirty-year lease agreement with the Department of Natural Resources (DNR) for use of State-Owned aquatic land for Gene Coulon Memorial Beach Park. Council concur. j. Community Services Department recommends approval of Job Order Contract (JOC) Work Order #1 with Bergschauer Phillips (CAG-13-149), in the amount of $320,028.44 for City Attorney Office tenant improvements in the 200 Mill Building. Council concur. k. Transportation Systems Division recommends approval of an agreement with Federal Aviation Administration for Grant 026 application to accept up to $150,000 for a Wildlife Hazard Assessment (WHA). Council concur. 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: Vouchers; Gene Coulon Memorial Beach Park Log Boom Replacement Project 9.RESOLUTIONS AND ORDINANCES Resolution: a. Aquatic Lands Lease for Gene Coulon Memorial Beach Park (See 7.i.) Ordinance for first reading: a. Sunset Lane NE street vacation; VAC-13-001, Renton Housing Authority (See 7.g.) 10.NEW BUSINESS (Includes Council Committee agenda topics; call 425-430-6512 for recorded information.) 11.AUDIENCE COMMENT Page 2 of 200 12.ADJOURNMENT COMMITTEE OF THE WHOLE AGENDA (Preceding Council Meeting) 7TH FLOOR CONFERENCING CENTER August 19, 2013 Monday, 6 p.m. Emerging Issues in Finance - CIP Criteria, Fund Balance Policies (briefing); Second Quarter Financial Report (briefing) • Hearing assistance devices for use in the Council Chambers are available upon request to the City Clerk • CITY COUNCIL MEETINGS ARE TELEVISED LIVE ON GOVERNMENT ACCESS CHANNEL 21 AND ARE RECABLECAST: Tues. & Thurs. at 11 AM & 9 PM, Wed. & Fri at 9 AM & 7 PM and Sat. & Sun. at 1 PM & 9 PM Page 3 of 200 3a. - Ready In Renton Month - September 2013 Page 4 of 200 CITY OF RENTON COUNCIL AGENDA BILL Subject/Title: Appointment to Parks Commission - Sojin Thompson, Youth Position Meeting: Regular Council - 19 Aug 2013 Exhibits: Communication from Community Services Dept Administrator Youth Application for boards/commissions/committee Submitting Data: Dept/Div/Board: Executive Staff Contact: April Alexander, Executive Assistant Recommended Action: Refer to Community Services Committee 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 Denis Law appoints the following to a youth position on Parks Commission: Mr. Sojin Thompson, 3719 Park Avenue N, Renton, 98056, for a term expiring 6/1/2017 STAFF RECOMMENDATION: Confirm Mayor Law's appointment of Mr. Thompson to the youth position on Parks Commission. 7b. - Mayor Law appoints Sojin Thompson to the youth position on the Parks Page 5 of 200 7b. - Mayor Law appoints Sojin Thompson to the youth position on the Parks Page 6 of 200 7b. - Mayor Law appoints Sojin Thompson to the youth position on the Parks Page 7 of 200 CITY OF RENTON COUNCIL AGENDA BILL Subject/Title: Reappointments to City Center Community Plan Advisory Board Meeting: Regular Council - 19 Aug 2013 Exhibits: Memo to Mayor Law recommending reappointments Submitting Data: Dept/Div/Board: Executive Staff Contact: April Alexander, Executive Assistant Recommended Action: Council concur 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 reappoints the following to the City Center Community Plan Advisory Board: Ms. Angela Beneditti, 721 Grant Ave S, Renton 98057, for a term expiring 8/31/16 Ms. Dana Rochex, 76 Monterey Pl NE, Renton 98056, for a term expiring 8/31/16 Mr. Rod Swift, 10655 NE 4th St, Suite 901, Bellevue 98004, for a term expiring 8/31/16 Mr. Brian Van Houten, 508 Morris Ave S, Renton 98057, for a term expiring 8/31/16 Mr. Doug Baugh, 750 Houser Way N, Renton 98057, for a term expiring 8/31/14 STAFF RECOMMENDATION: Concur with Mayor Law's reappointments of Ms. Beneditti, Ms. Rochex, Mr. Swift, Mr. Van Houten, and Mr. Baugh to the City Center Community Plan Advisory Board. 7c. - Mayor Law reappoints the following individuals to the City Center Community Page 8 of 200 7c. - Mayor Law reappoints the following individuals to the City Center Community Page 9 of 200 7c. - Mayor Law reappoints the following individuals to the City Center Community Page 10 of 200 CITY OF RENTON COUNCIL AGENDA BILL Subject/Title: Reappointments to Planning Commission Meeting: Regular Council - 19 Aug 2013 Exhibits: Memo to Mayor re: reappointments to Planning Commission Submitting Data: Dept/Div/Board: Executive Staff Contact: April Alexander, Executive Assistant Recommended Action: Council concur 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 Denis Law resppoints the following to the Planning Commission: Mr. David Fleetwood, 818 Kirkland Ave NE, Renton 98056, for a term expiring 6/30/2016 Mr. Michael Drollinger, 11406 SE 171st St, Renton 98055, for a term expiring 6/30/2016 STAFF RECOMMENDATION: Concur with Mayor Law's reappointments of Mr. David Fleetwood and Mr. Michael Drollinger to the Planning Commission. 7d. - Mayor Law reappoints David Fleetwood and Michael Drollinger to the Page 11 of 200 7d. - Mayor Law reappoints David Fleetwood and Michael Drollinger to the Page 12 of 200 CITY OF RENTON COUNCIL AGENDA BILL Subject/Title: Consortium Fiber Project Agreement 65 Meeting: Regular Council - 19 Aug 2013 Exhibits: Issue Paper Submitting Data: Dept/Div/Board: Administrative Services Staff Contact: Ron Hansen, Network Systems Manager, x6873 Recommended Action: Council Concur Fiscal Impact: Expenditure Required: $ $-0- Transfer Amendment: $ Amount Budgeted: $ Revenue Generated: $ Total Project Budget: $ City Share Total Project: $ SUMMARY OF ACTION: Council approved an updated and expanded interlocal agreement that consolidates the Eastside Fiber Consortium and government agencies in the Valley Cities group into the “Community Connectivity Consortium” to jointly construct, manage, and share fiber optic resources in August of 2011 The City of Renton and the fiber Consortium have worked under this Consortium Agreement and partnered on a number of projects which have resulted in many schools and City facilities within the community being connected with high-speed fiber optic connections as well as getting access to fiber and facilities outside the City. This specific project will Provide a 288 strand fiber optic cable from Southwest 7th Street and Rainier Avenue South in Renton, through Southwest 7th Street, Powell Avenue Southwest, and Southwest Grady Way to the intersection of State Route 181, also known as West Valley Highway, and Southwest Grady Way (known as the Fun Center.), as generally illustrated in Exhibit A (Route Illustration) and Rainier Ave S. (SE corner) in Renton, adding to consortium backbone fiber and continuing to build around Lake Washington and to Snohomish and Pierce counties. The total cost of this project is approximately $162,450, including $37K UASI Grant funds and $125,000 in kind contribution (sharing conduit) from the City of Renton. No cash contribution is required. STAFF RECOMMENDATION: Approve the interlocal agreement and authorize the Mayor and City Clerk to sign the Consortium Project Agreement to be executed with participating agencies. 7e. - Administrative Services Department recommends approval of an addendum Page 13 of 200 7e. - Administrative Services Department recommends approval of an addendum Page 14 of 200 7e. - Administrative Services Department recommends approval of an addendum Page 15 of 200 CITY OF RENTON COUNCIL AGENDA BILL Subject/Title: Ordinance Decriminalizing Possessing or Consuming Alcohol in Parks Meeting: Regular Council - 19 Aug 2013 Exhibits: Ordinance Submitting Data: Dept/Div/Board: City Attorney Staff Contact: Zanetta Fontes, x6486 Recommended Action: Refer to Community Services Committee Fiscal Impact: Expenditure Required: $ Transfer Amendment: $ Amount Budgeted: $ Revenue Generated: $ Total Project Budget: $ City Share Total Project: $ SUMMARY OF ACTION: In RCW 66.44.100, the state legislature decriminalized the crime of opening and consuming alcohol in a public place. State law defines a public place to include parks. This change is to make our park rules consistent with state law. STAFF RECOMMENDATION: Adopt the ordinance amending RMC 2-9-8 decriminalizing possessing or consuming alcohol in parks in order to be consistent with state law. 7f. - City Attorney recommends amending City Code Section 2-9-8 by reducing the Page 16 of 200 1 CITY OF RENTON, WASHINGTON ORDINANCE NO. ________ AN ORDINANCE OF THE CITY OF RENTON, WASHINGTON, AMENDING SECTION 2-9-8 OF CHAPTER 9, PARKS COMMISSION, OF TITLE II (COMMISSIONS AND BOARDS) OF THE RENTON MUNICIPAL CODE, BY REDUCING THE PENALTY FOR POSSESSING OR CONSUMING ALCOHOL IN PARKS TO A CIVIL VIOLATION. THE CITY COUNCIL OF THE CITY OF RENTON, WASHINGTON, DOES ORDAIN AS FOLLOWS: SECTION I. Subsection 2-9-8.B.4, Alcohol, of Chapter 9, Parks Commission, of Title II (Commissions and Boards) of the Renton Municipal Code, is hereby deleted and the remaining subsections shall be renumbered accordingly. SECTION II. Subsection 2-9-8.C, Civil Violations, of Chapter 9, Parks Commission, of Title II (Commissions and Boards) of the Renton Municipal Code, is hereby amended to add a new subsection 2-9-8.C.17, Alcohol, to read as follows: 17. Alcohol: Possess or consume alcoholic beverages except in areas designated by the Administrator. Designated areas are (a) Maplewood Golf Course, when such beverages are purchased and consumed within the concessionaire’s licensed premises; and (b) designated areas of the Renton Community Center and Renton Senior Activity Center facilities as part of a facility rental. All activities shall comply with all Washington State Liquor Control Board requirements. SECTION III. This ordinance shall be effective upon its passage, approval, and thirty (30) days after publication 7f. - City Attorney recommends amending City Code Section 2-9-8 by reducing the Page 17 of 200 ORDINANCE NO. ________ 2 PASSED BY THE CITY COUNCIL this _______ day of ___________________, 2013. Bonnie I. Walton, City Clerk APPROVED BY THE MAYOR this _______ day of _____________________, 2013. Denis Law, Mayor Approved as to form: Lawrence J. Warren, City Attorney Date of Publication: ORD:1795:7/24/13:scr 7f. - City Attorney recommends amending City Code Section 2-9-8 by reducing the Page 18 of 200 CITY OF RENTON COUNCIL AGENDA BILL Subject/Title: VAC13-001 RHA Street Vacation Determination of Compensation Meeting: Regular Council - 19 Aug 2013 Exhibits: Issue Paper Appraisal Ordinance Map Exhibit Waiver Request Submitting Data: Dept/Div/Board: Community and Economic Development Staff Contact: Rocale Timmons, Senior Planner Recommended Action: Council Concur Fiscal Impact: Expenditure Required: $ 0 Transfer Amendment: $0 Amount Budgeted: $ 0 Revenue Generated: $0 Total Project Budget: $ 0 City Share Total Project: $ 0 SUMMARY OF ACTION: An appraisal has been submitted on behalf of the Renton Housing Authority for acceptance and determination of compensation due to the City for the area to be vacated in Street Vacation VAC-13-001 for approximately 6,310 feet of Sunset Lane NE right-of-way, between Harrington Ave NE and NE 10th St. However, as part of the Highlands Library Mixed Use Project, land is to be dedicated along Sunset Blvd, and should be used as a swap for the approved vacation. As a result, compensation and the processing fee should be waived. Appraisal value of property = $77,000. Processing Fee = $2,000. STAFF RECOMMENDATION: Waive compensation and the processing fee for Street Vacation VAC-13-001 due to anticipated dedication of land for Sunset Blvd, between Harrington Ave NE and NE 10th St, right-of-way as a swap for the approximately 6,310 square feet of Sunset Lane NE right-of-way, between Harrington Ave NE and NE 10th St; and adopt the Ordinance 7g. - Community and Economic Development Department Page 19 of 200 DEPARTMENT OF COMMUNITY & ECONOMIC DEVELOPMENT M E M O R A N D U M DATE:August 12, 2013 TO:Randy Corman, Council President Members of Renton City Council VIA:Denis Law, Mayor FROM:Chip Vincent, CED Administrator STAFF CONTACT:Rocale Timmons, x-7219 SUBJECT:Determination of Compensation, VAC13-001 Sunset Lane NE between Harrington Ave NE and NE 10th St ISSUE Does Council wish to accept staff’s recommendation to waive compensation and the processing fee for the area to be vacated in Street Vacation VAC-13-001? RECOMMENDATION Waive compensation and processing fee for Street Vacation VAC-13-001 due to anticipated dedication of land for Sunset Blvd, between Harrington Ave NE and NE 10th St, right-of-way as a swap for the approximately 6,310 square feet of Sunset Lane NE right-of-way, between Harrington Ave NE and NE 10th St. BACKGROUND SUMMARY The petition for Street Vacation request VAC-13-001 was approved on June 17, 2013, for the approximately 6,310 square feet of Sunset Lane NE right-of-way, between Harrington Ave NE and NE 10th St. In August of 2013, an appraisal was submitted by Mark Gropper on behalf of the Renton Housing Authority for the area to be vacated. Staff has reviewed the appraisal and concludes that the appraisal meets industry standards. The appraisal report provides a fair market value of $80,000.00 for the right-of-way to be vacated in Street Vacation VAC13-001. Staff believes the estimate determined in the appraisal represents a reasonable and fair market value. State law and City code allow for compensation in the amount of the full-appraised value if a street or alley was acquired at public expense. The portion of right-of-way included in this petition was dedicated to the City on January 4, 1963 (Recording 7g. - Community and Economic Development Department Page 20 of 200 Determination of Compensation VAC13-001 Page 2 of 2 August 12, 2013 #5527075), through a quitclaim deed. Thus, state law and City code allow for compensation amounts to be set at the full-appraised value. However, the pending owner of the subject property intends to dedicate land along Sunset Blvd, also between Harrington Ave NE and NE 10th St, as part of the Highlands Library Mixed Use Project. Staff recommends the land to be dedicated as part of the Highlands Library Mixed Use Project, along Sunset Blvd, be used as a swap for the approved vacation and as a result compensation should be waived. Additionally, per the 2013 Fee Schedule, a $2,000 processing fee would be applicable to the request. However, a request to waive the processing fee was received due to the nature of the project and supported waiver of compensation. Staff recommends approval of the requested waiver of the processing fee. CONCLUSION Staff has reviewed the appraisal submitted by Mark Gropper on behalf of the Renton Housing Authority. The Department of Community and Economic Development recommends that Council waive the compensation and processing fee for Street Vacation VAC-13-001 for approximately 6,310 square feet of Sunset Lane NE right-of- way, between Harrington Ave NE and NE 10th St due to planned dedication from the subject parcel along Sunset Blvd. cc:Jay Covington, CAO Chip Vincent, CED Administrator Terry Higashiyama, CS Administrator Iwen Wang, FIT Administrator Kevin Milosevich, Police Chief Mark Peterson, Fire Chief Gregg Zimmerman, Public Works Administrator 7g. - Community and Economic Development Department Page 21 of 200 Summary Appraisal Report The Sunset Lane NE Street Vacation Southwest of NE 10th Street and Northeast Harrington Avenue NE Renton, Washington FOR Renton Housing Authority Mr. Mark Gropper 2900 NE 10th Street, P.O. Box 2316 Renton, WA 98056 Valbridge Property Advisors | Allen Brackett Shedd 12320 NE 8th Street, Suite 200 Bellevue, WA 98005 425-450-4040 425-688-1819 fax valbridge.com Valbridge Job #: 13-0142 7g. - Community and Economic Development Department Page 22 of 200 July 25, 2013 Mr. Mark Gropper Executive Director Renton Housing Authority 2900 NE 10th Street P.O. Box 2316 Renton, Washington 98056-0316 RE: APPRAISAL OF THE SUNSET LANE NE STREET VACATION LOCATED SOUTHWEST OF NE 10TH STREET AND NORTHEAST OF HARRINGTON AVENUE NE IN RENTON, WASHINGTON (Our File #13-0142) Dear Mr. Gropper: In response to your request, I have completed an appraisal of the proposed street vacation referenced above in Renton, Washington. The purpose of this report is to provide a conclusion of the market value of the right-of-way to be vacated, which includes a portion of the Sunset Lane NE right-of-way extending southwest from its intersection with NE 10th Street and northeast from its intersection with Harrington Avenue NE. The intended use of this appraisal is to aid in decision making and determination of the market value of the proposed right-of-way vacation. The intended users include the Renton Housing Authority and City of Renton. It is not intended for any other use. In accordance with standard valuation methodology, the valuation assumes the subject parcel is an economic unit as it will be assembled with adjacent properties. As such, any disadvantages due to small size and irregular shape are disregarded. I have valued the right-of-way based on its assumed assemblage with adjacent parcels, which will be utilized for future redevelopment by the Renton Housing Authority. With the above factors in mind, the subject of this appraisal consists of a portion of the existing right-of-way for Sunset Lane NE. The right-of-way to be vacated is located southwest of NE 10th Street and northeast of Harrington Avenue NE. It is mostly rectangular in shape, with a width of 19 feet and length of approximately 325 feet, and consists of the majority of the southern half of the existing Sunset Lane NE right -of-way between NE 10th Street and Harrington Avenue NE. Overall, the area to be vacated totals 6,170 square feet. 7g. - Community and Economic Development Department Page 23 of 200 Valbridge Property Advisors Allen Brackett Shedd 2 13-0142.docx - Copyright © 2013 The proposed vacation is to allow for the assemblage of the subject right -of-way with the southeasterly abutting property. The southeasterly abutting property contains 39,460 square feet and is owned by the Renton Housing Authority (RHA). While this site is currently improved with four multifamily structures, the buildings are considered to be of no contributory value. In this regard, RHA plans to demolish the structures to make way for redevelopment of the site with a mixed-use comprised of multifamily and commercial uses, the latter of which will include a new public library. Information provided by the client indicates that an easement for power lines will be retained and encumbers the entire subject right-of-way. This easement has been considered in the analysis and conclusion of market value for the subject property. This is a Summary Appraisal Report which is intended to comply with the reporting requirements set forth under Standards Rule 2-2(b) of the Uniform Standards of Professional Appraisal Practice (USPAP) for a Summary Appraisal Report. As such, it presents only summary discussions of the data, reasoning, and analyses that were used in the appraisal process to develop the appraiser's opinion of value. Supporting documentation concerning the data, reasoning, and analyses is retained in the appraiser's file. The depth of discussion contained in this report is specific to the needs of the client and for the intended use stated below. The appraiser is not responsible for unauthorized use of this report. Based on an investigation and analysis of all relevant data, it is my opinion that the market value of the subject property, as of July 15, 2013, is: SEVENTY-SEVEN THOUSAND DOLLARS ($77,000) If you have further questions not answered in the accompanying appraisal report, please do not hesitate to call. Sincerely, VALBRIDGE PROPERTY ADVISORS ALLEN BRACKETT SHEDD Gregory L. Goodman, MAI mkf Enclosures 7g. - Community and Economic Development Department Page 24 of 200 Valbridge Property Advisors Allen Brackett Shedd 13-0142.docx - Copyright © 2013 ASSUMPTIONS AND LIMITING CONDITIONS This appraisal report was made after personal inspection of the property identified in this report. The conclusions in the report have been arrived at and are predicated upon the following cond itions: a) No responsibility is assumed for matters, which are legal in nature, nor is any opinion rendered on title of land appraised. Title to the property is assumed to be good and marketable unless otherwise stated in this report. b) Unless otherwise noted, the property has been appraised as though free and clear of all liens, encumbrances, encroachments, and trespasses. c) All maps, areas, and other data furnished your appraiser have been assumed to be correct; however, no warranty is given for its accur acy. If any error or omissions are found to exist, the appraiser reserves the right to modify the conclusions. Any plot plans and illustrative material in this report are included only to assist the reader in visualizing the property. d) It is assumed there is full compliance with all applicable federal, state, and local environmental regulations and laws unless otherwise stated in this report. e) It is assumed all applicable zoning and use regulations and restrictions have been complied with, unless a nonconformity has been stated, defined, and considered in this appraisal report. f) The appraiser has no interest, present or contemplated, in the subject properties or parties involved. g) Neither the employment to make the appraisal nor the compensation is contingent upon the amount of the valuation report. h) To the best of the appraiser’s knowledge and belief, all statements and information in this report are true and correct, and no important facts have been withheld or overlooked. i) Possession of this report, a copy, or any part thereof, does not carry with it the right of publication, nor shall the report or any part thereof be conveyed to the public through advertising, public relations, news, sales, or other media valuation conclusions, identity of the appraiser, or firm, and any reference made to the Appraisal Institute or any professional designation. j) There shall be no obligation required to give testimony or attendance in court by reason of this appraisal, with reference to the property in question, unless satisfact ory arrangements are made in advance. k) This appraisal has been made in accordance with rules of professional ethics of the Appraisal Institute. l) The Valbridge Property Advisors office responsible for the preparation of this report is independently owned and operated by Allen Brackett Shedd. Neither Valbridge Property Advisors, Inc., nor any of its affiliates, has been engaged to provide this report. Valbridge Property Advisors, Inc., does not provide valuation services and has taken no part in the preparatio n of this report. m) No one other than the appraiser prepared the analysis, conclusions, and opinions concerning real estate that are set forth in the appraisal report. n) Statements or conclusion offered by the appraiser are based solely upon visual examinatio n of exposed areas of the property. Areas of the structure and/or property, which are not exposed to the naked eye, cannot be inspected; and no conclusions, representations, or statements offered by the appraiser are intended to relate to areas not exposed to view. No obligation is assumed to discover hidden defects. 7g. - Community and Economic Development Department Page 25 of 200 Valbridge Property Advisors Allen Brackett Shedd 13-0142.docx - Copyright © 2013 o) Unless otherwise stated in this report, the existence of pollution and/or hazardous waste material, which may or may not be present on the property, was not observed by the appraiser. The appraiser has no knowledge of the existence of such materials on or in the property. The appraiser, however, is not qualified to detect such substances. The presence of substances such as asbestos, urea-formaldehyde foam insulation, or other potentially h azardous materials or pollution may affect the value of the property. The value estimate is predicated on the assumption that there is no such material on or in the property that would cause a loss in value. No responsibility is assumed for any such cond itions or for any expertise or engineering knowledge required to discover them. The client is urged to retain an expert in this field, if desired. p) Statements, representations, or conclusions offered by the appraiser do not constitute an express or implied warranty of any kind. q) Neither appraiser nor Allen Brackett Shedd shall be liable for any direct, special, incidental, or consequential damages whatever, whether arising in tort, negligence, or contract, nor for any loss, claim, expense, or damage caused by or arising out of its inspection of a property and/or structure. r) The Americans with Disabilities Act (ADA) became effective January 26, 1992. We have not made a specific compliance survey and analysis of this property to determine whether or not it is i n conformity with the various detailed requirements of the ADA. It is possible that a compliance survey of the property, together with a detailed analysis of the requirements of the ADA, could reveal that the property is not in compliance with one or more of the requirements of the Act. If so, this fact could have a negative effect upon the value of the property. Since we have no direct evidence relating to this issue, we did not consider possible non -compliance with the requirements of ADA in estimating the value of the property. s) With regard to prospective value opinions, future changes in market conditions necessitate an assumption that the appraiser cannot be held responsible for unforeseeable events that alter market conditions prior to the effective date of the appraisal or date of value. t) This report and any associated work files may be subject to evaluation by Valbridge Property Advisors, Inc., or its affiliates, for quality control purposes. 7g. - Community and Economic Development Department Page 26 of 200 Valbridge Property Advisors Allen Brackett Shedd 13-0142.docx - Copyright © 2013 TABLE OF CONTENTS Page Letter of Transmittal Assumptions and Limiting Conditions Executive Summary Part I - Introduction Identification of the Subject Property ............................................................................................. 1 Summary of Appraisal Problem ........................................................................................................ 1 Legal Description .................................................................................................................................... 1 History and Ownership ......................................................................................................................... 2 Date of Inspection/Valuation ............................................................................................................. 2 Purpose of the Appraisal ..................................................................................................................... 2 Property Rights Appraised .................................................................................................................. 2 Scope of the Appraisal.......................................................................................................................... 3 Intended Use/Users ............................................................................................................................... 3 Extraordinary Assumptions ................................................................................................................. 4 Hazardous Waste ..................................................................................................................... 4 Personal Property ................................................................................................................................... 4 Exposure Period ...................................................................................................................................... 4 Area Description...................................................................................................................................... 4 Immediate Neighborhood ................................................................................................... 5 Part II - Factual Data Description of the Subject Property ................................................................................................ 6 Site................................................................................................................................................. 6 Topography ............................................................................................................................... 6 Access and Exposure .............................................................................................................. 6 Soils ............................................................................................................................................... 6 Sensitive Areas .......................................................................................................................... 6 Utilities ......................................................................................................................................... 6 Zoning .......................................................................................................................................... 6 Assessed Value and Real Estate Taxes ............................................................................. 7 Improvements Description ................................................................................................... 7 Part III - Highest and Best Use Highest and Best Use Definition ....................................................................................................... 8 As if Vacant ................................................................................................................................ 8 Part IV - Analyses and Conclusions to Value Valuation ................................................................................................................................................. 10 Sales Comparison Approach ............................................................................................ 10 Discussion of Sales ............................................................................................................. 11 Discussion of Adjustments ................................................................................................ 11 Reconciliation of Sales and Conclusion of Fee Simple Value .............................. 13 Discount for Existing Easements to be Retained ...................................................... 13 Conclusion of Value ............................................................................................................................ 15 Certification of Value .......................................................................................................................... 16 Addenda Legal Description Easement Qualifications of Appraisers 7g. - Community and Economic Development Department Page 27 of 200 Valbridge Property Advisors Allen Brackett Shedd 13-0142.docx - Copyright © 2013 EXECUTIVE SUMMARY Project: Sunset Lane NE Street Vacation Location: South 19 feet of Sunset Lane NE, between NE 10th Street and Harrington Avenue NE Site Size: 6,170 square feet Improvements: The subject property consists of an existing street right-of-way that includes asphalt-paving Utilities: All utilities necessary for development currently service the subject site. Zoning: CV, Center Village, allowing for development of commercial uses, residential uses, or mix thereof. Highest and Best Use: Assemblage with abutting ownership to allow for redevelopment with a mixed use comprised of commercial and multifamily residential uses. Value Conclusion: $77,000 Date of Valuation: July 15, 2013 Appraiser: Gregory L. Goodman, MAI File: 13-0142 7g. - Community and Economic Development Department Page 28 of 200 Valbridge Property Advisors | Allen Brackett Shedd 13-0142 Copyright © 2013 SUBJECT PROPERTY PHOTOGRAPHS Subject property facing southwest from NE 10th Street Facing east along NE 10th Street from Sunset Lane NE 7g. - Community and Economic Development Department Page 29 of 200 Valbridge Property Advisors | Allen Brackett Shedd 13-0142 Copyright © 2013 SUBJECT PROPERTY PHOTOGRAPHS Subject property facing northeast from Harrington Avenue NE Facing south along Harrington Avenue NE from Sunset Land NE 7g. - Community and Economic Development Department Page 30 of 200 Valbridge Property Advisors | Allen Brackett Shedd 13-0142 Copyright © 2013 Aerial Map 7g. - Community and Economic Development Department Page 31 of 200 Valbridge Property Advisors Allen Brackett Shedd Page 1 13-0142.docx - Copyright © 2013 PART I - INTRODUCTION Identification of the Subject Property The subject parcel consists of a smaller tract of land located southwest of NE 10th Street and northeast of Harrington Avenue NE, consisting of the majority of the southern half of the existing Sunset Lane NE right-of-way between NE 10th Street and Harrington Avenue NE. The property is mostly rectangular in shape, with a width of 19 feet and length of approximately 325 feet. As the subject represents a portion of an open street, it includes asphalt paving. Overall, the subject totals 6,170 square feet. Summary of Appraisal Problem The purpose of this appraisal is to provide an opinio n of the market value of the subject, which represents existing right-of-way to be vacated by the City of Renton. As is typical in the valuation of street right-of-ways, the subject property is valued using an “at the fence” methodology. In other words, no discount is considered for its size or irregular shape. Rather, the parcel is valued based on the assumed assemblage with abutting properties and thus reflects the value as if it were part of the larger site with which it would be assembled. The proposed vacation is to allow for the assemblage of the subject right-of-way with the southeasterly abutting property. The southeasterly abutting property contains 39,460 square feet and is owned by the Renton Housing Authority (RHA). While this site is currently improved with four multifamily structures, the buildings are considered to be of no contributory value. In this regard, RHA plans to demolish the structures to make way for redevelopment of the site with a mixed-use comprised of multifamily and commercial uses, the latter of which will include a new public library. Information provided by the client indicates that an easement for power lines will be retained within the subject right-of-way. The easement will encumber the entire subject right-of-way and will allow Puget Sound Energy (PSE) the right to use the Easement Area to construct, operate, maintain, repair, replace, improve, remove and enlarge one or more utility systems for purposes of transmission, distribution and sale of electricity . Included in the easement is the right to place overhead, surface and subterranean facilities within the easement area. This easement has been considered in the analysis and valuation of the subject property contained in this report. Legal Description A complete legal description and mapping for the subject right-of-way to be vacated was provided by the client and is included in the Addenda to this report. 7g. - Community and Economic Development Department Page 32 of 200 Valbridge Property Advisors Allen Brackett Shedd Page 2 13-0142.docx - Copyright © 2013 History and Ownership The property is currently owned by the City of Renton and represents part of an improved portion of Sunset Lane NE between NE 10th Street and Harrington Avenue NE. Date of Inspection/Valuation The subject property was initially inspected on July 8, 2013, with additional informal inspections occurring on subsequent dates, the most recent of which occurred on July 15, 2013. The effective date of this appraisal is July 15, 2013. Purpose of the Appraisal The purpose of this appraisal is to form an opinion of the market value of public right-of-way. The subject property is to b e vacated for assemblage with an adjacent larger parcel. From this conclusion of the market value, a purchase/sale price will be determined by the City Council. Market value is defined as:1 The most probable price which a property should bring in a comp etitive and open market under all conditions requisite to a fair sale, the buyer and seller each acting prudently and knowledgeably, and assuming the price is not affected by undue stimulus. Implicit in this definition is the consummation of a sale as of a specified date and the passing of title from seller to buyer under conditions whereby: 1. buyer and seller are typically motivated; 2. both parties are well-informed or well-advised and acting in what they consider their best interests; 3. a reasonable time is allowed for exposure in the open market; 4. payment is made in terms of cash in United States dollars or in terms of financial arrangements comparable thereto; and 5. the price represents the normal consideration for the property sold unaffected by special or creative financing or sales concessions granted by anyone associated with the sale Property Rights Appraised This appraisal is of the fee simple interest as encumbered by existing easements. Fee simple interest is defined as:2 Absolute ownership unencumbered by any other interest or estate, subject only to the limitations imposed by the governmental powers of taxation, eminent domain, police power, and escheat. 1 From The Appraisal of Real Estate, Thirteenth Edition, 2008, Appraisal Institute, page 24. 2 From The Appraisal of Real Estate, Thirteenth Edition, 2008, Appraisal Institute, page 114 7g. - Community and Economic Development Department Page 33 of 200 Valbridge Property Advisors Allen Brackett Shedd Page 3 13-0142.docx - Copyright © 2013 An easement is defined as follows: 3 An interest in real property that transfers use, but not ownership, of a portion of an owner’s property. This definition may be expanded as: …the right to perform a specific action on a particular parcel of property, or portion thereof, by the grantees who do not hold the underlying fee.4 Scope of the Appraisal The format of this report is a Summary Appraisal Report. The scope of this appraisal includes the consideration of all three approaches to value: the Cost Approach, the Income Approach, and the Sales Comparison Approach. Considering the fact that the subject consists of a public right-of-way, the valuation of the subject site is obtained through an application of the Sales Comparison Approach to Value. In the case of the subject, the Cost Approach and Income Approach are not applicable. Accordingly, data was collected on comparable sales of land, which were then compared to the subject parcel to arrive at a value conclusion. In appraising the subject property, the appraiser did the following: Researched Metroscan, MLS and COMPS, Inc. databases. Researched Valbridge Property Advisors | Allen Brackett Shedd’s existing database. Confirmed all sales with buyers, selling agents, and/or public records. Inspected all comparable sales. Reviewed all documents as cited throughout this report. Intended Use/Users The intended use of the appraisal is for decision making purposes with respect to the right-of-way vacation by the City of Renton, and is not intended for any other use. The client for the appraisal is the Renton Housing Authority, and intended users include the client’s authorized employees, representatives, or agents, as well as the City of Renton. The appraiser does not intend use of this report by others. 3 From The Appraisal of Real Estate, Thirteenth Edition, 2008, Appraisal Institute, page 117. 4 From The Appraisal of Real Estate, Twelfth Edition, 2001, Appraisal Institute, page 85. 7g. - Community and Economic Development Department Page 34 of 200 Valbridge Property Advisors | Allen Brackett Shedd 13-0142 Copyright © 2013 Neighborhood Map 7g. - Community and Economic Development Department Page 35 of 200 Valbridge Property Advisors Allen Brackett Shedd Page 4 13-0142.docx - Copyright © 2013 Extraordinary Assumptions Hazardous Waste No information regarding the presence or absence of hazardous waste on the subject property was provided. This appraisal assumes the absence of any and all hazardous waste on the subject property. If hazardous waste is found to be present on the subject property, an adjustment to the valuation contained in this report may be required. Personal Property There is no personal property included within the appraised value. Exposure Period While the subject property currently consists of existing right-of-way, it is considered to be an economic unit. Thus, the subject consists of a vacant site located in the Renton Highlands area, just north of the primary commercial corridor through the area along NE Sunset Boulevard. As of the date of valuation, the owner of the adjoining parcel with which the subject would be assembled intends to redevelop the site with a mixed-use. When considering this fact, as well as continued signs of stability over the last year or so, an exposure period of approximately 6 to 12 months prior to the date of value is concluded. Area Description The subject property is located in the northeast area of the city of Renton. Renton was first incorporated in 1901 and growth over the years was often fueled by people migrating to the area to work in the booming wartime industries. In 1940, the Boeing Company decided to build a new manufacturing plant at the south end of Lake Washington and this remains one of the cities’ primary economic engines to date. The Washington State Office of Financial Management indicates Renton’s population in 2013 stood at an estimated 95,540. According to the City of Renton’s website, the city encumbers 16.52 square miles and is the 5th largest city in King County and 14th largest in the state. Renton continues to be an important center of employment; providing over 50,000 jobs, roughly half being manufacturing. The downtown area remains fairly lively, with activity centered on government and service-related functions as it is the location of City Hall and the Renton Library. Much of the downtown retail and commercial activity has been displaced by local malls and shopping centers. Tenants in the downtown core tend to be small family-owned restaurants, thrift shops, and antique or “collectibles” businesses. McLendon’s Hardware and Wal-Mart are two of the larger retailers in the CBD. 7g. - Community and Economic Development Department Page 36 of 200 Valbridge Property Advisors Allen Brackett Shedd Page 5 13-0142.docx - Copyright © 2013 Two large projects in Renton have been recently completed, with the most noteworthy being the large multi-use project “The Landing.” Developed by Harvest Partners, this is a $300 million, 46-acre urban village style shopping center immediately at the south end of Lake Washington. It was developed on Boeing surplus property and has approximately 800,000 square feet of retail shops and restaurants and over 1,000 residential units (mostly townhomes and condominiums). It is expected that this project will bring a major revitalization to after-hours businesses and attract complementary office and retail development in other nearby areas of Renton. The second project is the development of a new Seattle Seahawks Training Facility along the eastern shores of Lake Washington in north Renton. Situated on 19 acres of industrial land that was formerly a tar and creosote plant, the building has 200,000 square feet, which makes it the second largest in the NFL. The property was developed by Vulcan Real Estate and opened in summer 2008. Interstate 405 (I-405) bisects the city, with the majority of commercial and retail development occupying the west side, south of Lake Washington. East of the freeway, residential development has expanded for several miles out in the Sunset Highway corridor, as well as the Maple Valley Highway corridor, to the southeast. This is where much of the newer single-family residential product is offered, simply due to the availability of land. The Renton-Maple Valley Highway extends southeasterly from I-405, accessing Maple Valley roughly six miles distant. Single-family homes in Renton tend to show prices ranging from $275,000 to $350,000 for existing entry-level inventory. New construction tends to range between $375,000 and $500,000. Due to economic conditions, tightening credit markets, and continued foreclosures, the residential real estate market in Renton and the greater Puget Sound region has experienced declining property values over the last year. While signs of stability have begun to appear in the more recent past, uncertainty remains into the foreseeable future. Nonetheless, the Renton market still provides entry level housing in close proximity to major employment centers, both of which will aid in providing demand and aid in the anticipated recovery at some point in the future. Immediate Neighborhood The subject property is located at the west end of the Renton Highlands commercial district in the northeastern portion of the city of Renton. The property is located between the intersection of NE Sunset Boulevard with Harrington Avenue NE and NE 10th Street. Sunset Boulevard is a major southwest-northeast corridor connecting Renton and Issaquah and is improved with various commercial properties in the vicinity of the subject. As such, the subject is bordered by commercial/retail to the east and south, and a mix of multifamily and single-family residential areas to the north. 7g. - Community and Economic Development Department Page 37 of 200 Valbridge Property Advisors | Allen Brackett Shedd 13-0142 Copyright © 2013 Vacation Area Map 7g. - Community and Economic Development Department Page 38 of 200 Valbridge Property Advisors Allen Brackett Shedd Page 6 13-0142.docx - Copyright © 2013 PART II - FACTUAL DATA Description of the Subject Property Site The subject of this appraisal consists of almost the entire southern half of the improved portion of the Sunset Lane NE right-of-way stretching between NE 10th Street and Harrington Avenue NE. The right-of-way to be vacated is nearly rectangular in shape, with a width of 19 feet and length of approximately 325 feet. Overall, the area to be vacated totals 6,170 square feet. Topography The subject is generally level and at grade with surrounding properties. Access and Exposure Access to the subject property is provided by the northeasterly abutting NE 10 th Street and southwesterly abutting Harrington Avenue NE. These abutting roadways each consist of 50-foot-wide public right-of-ways improved with 2-lane asphalt-paved roads. These lower volume roads are utilized to access the various residential properties in the immediate vicinity of the subject. Both Harrington Avenue NE and NE 10 th Street intersect with NE Sunset Boulevard. Sunset Boulevard is a major southwest-northeast corridor connecting Renton and Issaquah and is improved with various commercial properties in the vicinity of the subject. Furthermore, Sunset Boulevard provides access to I-405 approximately 0.5 miles west of the subject property. Soils No soils information was provided to the appraisers. Based on existing improvements on the subject and adjacent properties, it is assumed the subject soils are similarly adequate for development of the site. Sensitive Areas While no detailed sensitive area studies of the subject was provided, information and mapping available from the City of Renton and King County indicates there are no sensitive areas on either of the subject property Utilities All utilities necessary for development currently service the subject property. Zoning It is assumed that the subject would be zoned similar to that of the property with which it will be assembled. In this regard, the abutting properties are currently zoned CV, Center Village, by the City of Renton. The City of Renton zoning code states that the 7g. - Community and Economic Development Department Page 39 of 200 Valbridge Property Advisors | Allen Brackett Shedd 13-0142 Copyright © 2013 Plat Map 7g. - Community and Economic Development Department Page 40 of 200 Valbridge Property Advisors Allen Brackett Shedd Page 7 13-0142.docx - Copyright © 2013 purpose of this designation is to provide an opportunity for concentrated mixed-use residential and commercial redevelopment designed to urban rather than suburban development standards that supports transit-oriented development and pedestrian activity. Use allowances promote commercial and retail development opportunities for residents to shop locally. Uses and standards allow complementary, high-density residential development, and discourage garden-style, multi-family development. Furthermore, the CV zone is intended to provide suitable environments for district-scaled retail and commercial development serving more than one neighborhood, but not providing City-wide services. With respect to development conditions, the zoning designation provides for residential development at a minimum density of 20 dwelling units per acre. The maximum density without any bonus incentives is indicated at 80 dwellin g unit per acre. Up to 120 units per acre can be developed with the inclusion of assisted living or affordable housing units. The minimum lot size is 25,000 square feet. A setback of 10 feet is required for the front yard or side yard along a street. This setback can, however, be reduced to zero through the site plan development review process provided that blank walls are not located within the reduced setback. The maximum building height permitted is 50 feet to 60 feet, with the taller height allowed if the main level of the building is in a commercial use. A maximum building coverage of 65% is indicated, but can be increased to 75% if parking is provided within the structure or in an on-site parking garage. Assessed Value and Real Estate Taxes As the subject property consists of a public right-of-way, it is currently tax exempt. Once vacated, the subject will be assembled with the adjacent parcels to the southeast as part of a larger parcel. Based on the levy rate for the area in which the subject resides, taxes would be based on a rate of $14.23446 per thousand of assessed value. Improvements Description As the subject represents a portion of an improved right-of-way, it includes asphalt paving. 7g. - Community and Economic Development Department Page 41 of 200 Valbridge Property Advisors Allen Brackett Shedd Page 8 13-0142.docx - Copyright © 2013 PART III - HIGHEST AND BEST USE Highest and Best Use Definition Highest and best use is defined as: 5 The reasonably probable and legal use of vacant land or an improved property that is legally permissible, physically possible, appropriately supported, financially feasible, and that results in the highest value. As the definition states, a determination of highest and best use are guided by the following parameters: 1) Physically possible; 2) Legally permissible; 3) Financially feasible; and 4) Maximally productive. Property is typically analyzed on the basis of its highest and best use as if vacant and available for development and as improved. The subject property consists of an existing right-of-way. As such, analysis of highest and best use is limited to “as if vacant.” Furthermore, while the subject represents a narrow site on which stand-alone development would not be physically or legally possible, consideration is given to the overall site assuming its assemblage with abutting properties. In other words, the analysis reflects the ty pical valuation methodology of street right-of-ways in which the highest and best use considers that of the larger parcel with which the subject would be assembled. With these factors in mind, the following analysis is presented As if Vacant Physically Possible. The subject property is surrounded by a mix of commercial, multifamily, and single-family residential uses, and is in close proximity to the primary commercial corridor along NE Sunset Boulevard. The property with which the subject right-of-way would be assembled has all of the necessary utilities available for development, direct access from multiple streets, and a generally level topography. As such, there are no significant physical limitations on the subject. Legally Permissible. The legal constraint for the property is that of zoning, as there are no known exceptional private liens or encumbrances to restrict or limit development. Furthermore, it is assumed that there are no requirements associated with providing low income housing in place on the larger parcel with which the subject would be assembled. As discussed in the Zoning section of this report, the site is zoned CV-Center Village by the City of Renton. This is a mixed-use zoning designation allowing for, and encouraging, development of a mixed-use comprised of higher density multifamily and commercial uses. 5 From The Appraisal of Real Estate, Thirteenth Edition, 2007, Appraisal Institute, page 278 7g. - Community and Economic Development Department Page 42 of 200 Valbridge Property Advisors Allen Brackett Shedd Page 9 13-0142.docx - Copyright © 2013 Financially Feasible/Maximally Productive. The subject is within an area that includes a variety of both commercial and residential uses. More specifically, properties to the east and along NE Sunset Boulevard are generally commercial in nature due to their location on a primary route through the immediate area. To the north and west, single-family uses can be found within the various parcels surrounding the subject and generally the area within one to two blocks of NE Sunset Boulevard is comprised of a mix of single and multifamily developments. Furthermore, it is noted that the subject is in an area that is essentially 100% developed, resulting in a limited supply of vacant land available for development. In addition to being along a main commercial corridor, which provides necessary services and employment opportunities, the subject is also a relatively short commute from significant employment centers in Renton, the Kent Valley, and Bellevue, all of which are positive factors in terms of the potential for residential uses on the site. The significant concentration of existing residential development located to the north and south of the Sunset Boulevard corridor provides a ready customer base and potential pool of employees for commercial uses on the subject. With these factors in mind, and given the subject’s zoning designation, development with a mixed-use is supported. Considering the factors discussed above, including the subject’s zoning, location in close proximity to major arterials through the subject area, its close proximity to major employment centers and densely populated residential neighborhoods, as well as the current status of the real estate market and economy, the highest and best use “as if vacant” is for the assemblage of the subject with abutting ownerships to allow for development of a mixed-use. 7g. - Community and Economic Development Department Page 43 of 200 Valbridge Property Advisors | Allen Brackett Shedd 13-0142 Copyright © 2013 Comparable Land Sales Map 7g. - Community and Economic Development Department Page 44 of 200 Valbridge Property Advisors Allen Brackett Shedd Page 10 13-0142.docx - Copyright © 2013 PART IV - ANALYSES AND CONCLUS IONS TO VALUE Valuation As discussed throughout this report, the subject parcel is valued as an economic unit with no discount for size or shape. In other words, it is valued based on its contribution to the lager parcel with which it would be assembled subsequent to the vacation. Considering this factor, the val uation of the subject site is obtained through an application of the Sales Comparison Approach to Value. In the case of the subject, the Cost Approach and Income Approach are not applicable. Under the Sales Comparison Approach, the subject right-of-way is compared to sales of other similarly-zoned land sites within the area, similar to the larger parcel with which it would be assembled. Adjustments are considered for differences between the sales and the larger assembled site for size, shape, topography, location, and zoning. Based on a comparison with the comparable sales, a value is concluded for the subject site. Sales Comparison Approach In valuing the subject, the subject’s market was researched for sales of sites with similar development potential. As previously discussed, it is recognized that the subject vacation is not developable by itself. However, accepted appraisal practice is f ollowed in valuing the vacation area as though it is an economic parcel. As noted previously, a power line easement encumbering the entire subject right-of-way will to be retained subsequent to the vacation. As such, the valuation involves a two-step process. The first step involves an estimate of the underlying fee simple value of the subject right-of-way as vacant. Upon arriving at a fee simple value conclusion, deductions, or adjustments, are considered to take into account the easement to be retained and its impact on the value of the subject right-of-way. With the above factors in mind, the following sales are utilized in arriving at a value conclusion for the fee simple interest in the subject property: Land Sales Summary Sale Sale Area Price/ Sale Location Date Price (sf)sf Zoning 1 NE 44th Street @ Lake Washington Blvd.01/02/13 $670,000 28,815 *$23.25 CA 2 24012 104th Avenue SE 12/20/12 $395,000 13,112 $30.13 C1R 3 4615 NE 4th Street 12/17/12 $470,000 22,094 $21.27 CA 4 10650 NE 174th Street 05/10/12 $1,000,000 41,426 $24.14 CB-SO 5 421 Union Avenue NE 09/07/11 $875,000 53,013 $16.51 CA * Actual site size of 82,328 square feet, of which 28,815 square feet is useable 7g. - Community and Economic Development Department Page 45 of 200 Valbridge Property Advisors Allen Brackett Shedd Page 11 13-0142.docx - Copyright © 2013 Discussion of Sales Sale 1 consists of an 82,328-square-foot site located on the northeast corner of the intersection between NE 44th Street and Lake Washington Boulevard NE. The property is just east of the I-405/NE 44th Street interchange and is irregular in shape. Of the overall site, approximately 53,513 square feet is unusable due to a stream that runs along the western portion of the site, as well as its associated setbacks and/or buffers. As such, 28,815 square feet of the property is useable resulting in an indicated value on a price per usable square foot basis at $23.25. The buyer purchased the site with the intention of developing a veterinary clinic on the property. Sale 2 is located on the southeast corner of the intersection between 104th Avenue SE and SE 240th Street. The 13,112-square-foot site is rectangular in shape, level, and currently vacant. Due to its corner location, the property enjoys good exposure and access on both of its fronting streets. The buyer purchased the property with plans for the development of a 7-11 on the site. Sale 3 is the purchase of a 22,094-square-foot site located on the southwest corner of the intersection between NE 4th Street and Duvall Avenue NE. The property is rectangular in shape, level and has good access and expos ure on both of its fronting streets. Discussions with the listing agent indicate that the buyer had a “tenant in tow” who would occupy a stand-alone retail structure to be developed on the site. However, and as of the date of this report, no development has occurred. Sale 4 is located on the north side of SE 174th Street and south side of 108th Avenue SE, just west of the intersection between these two roadways. The property is mostly rectangular in shape, generally level and contains 41,426 square feet . Subsequent to the sale, the buyer has completed the development of a 3-story, climate-controlled self-storage facility. Sale 5 is the purchase of a rectangular-shaped, 53,013-square-foot site located on the west side of Union Avenue NE, just north of NE 4th Street. At the time of the purchase, the property was vacant with some rough grading having been completed. Discussions with the listing agent indicate that the property could support a mixed-use building comprised of roughly 60 units over 15,000 square feet of ground floor retail/office. However, the buyer has developed a stand-alone commercial structure on the property utilized as a Firestone store. Discussion of Adjustments Unadjusted, the sales indicate a range from $16.51 to $30.13 per square foot of useable area. In comparing each of the sales to the subject, adjustments have been considered for transaction-related factors (rights conveyed, financing, conditions of sale, and changes in market conditions), as well for differences in physical characteristics (location, size, access/exposure, topography/shape, utilities, and zoning/entitlements). Upward 7g. - Community and Economic Development Department Page 46 of 200 Valbridge Property Advisors Allen Brackett Shedd Page 12 13-0142.docx - Copyright © 2013 adjustments to the comparables are required if the respective characteristic is inferior in comparison to the subject. On the other hand, downward adjustments are required for superior characteristics. None of the sales require adjustments for rights conveyed, financing, or conditions of sale. With respect to market conditions all of the comparables occurred over a period of relatively stable market conditions. As such, no significant adjustment is considered to any of the sales for this factor. With respect to physical characteristics, adjustments that were considered to be appropriate are discussed below. Location: All six sales are considered to be similar to the subject in terms of location as each is in close proximity to major routes, as well as densely developed residential areas and significant employment centers. As such, no significant adjustment to any of the sales for this factor is warranted. Site Size: For the most part, the sales bracket the size of the site with which the subject would be assembled, which contains 39,460 square feet. Nonetheless, and considering the inverse relationship between site size and price per square foot values indicated by the sales and other market activity reviewed, adjustments to a number of the sales are appropriate. In this regard, downward adjustments on a price per square foot basis to Sales 1, 2, and 3 are appropriate to account for their smaller size. Conversely, an upward adjustment to Sale 5 is appropriate. As the remaining comparable, Sale 4, is similar in size, no significant adjustment is necessary. Access/Exposure: The southeasterly abutting site with which the subject would be assembled enjoys access from four fronting streets, one of which is the primary route through the area, NE Sunset Boulevard. As Sales 2 and 3 represent corner lots with access from multiple streets, and frontage on a primary route, no significant adjustment is necessary. The remaining comparables lack access from multiple streets. Furthermore, Sale 5 lacks significant exposure on a primary route. As such, upward adjustments to Sales 1, 4, and 5 are considered. Topog./Shape: The subject and property with which it would be assembled are generally level, rectangular in shape and cleared. Sales 2, 4, and 5 share these characteristics and thus no significant adjustment is necessary. While Sale 1’s usable area has been analyzed, consideration is given to the potential for additional development constraints associated with its proximity to the creek on the site resulting in a slight upward adjustment. In the case of Sale 3, an upward adjustment is considered for the clearing and site wo rk necessary for development to occur. Utilities: All of the comparables are similar to the subject in that all utilities necessary for development are available from abutting streets. As such, none of the sales require an adjustment for this factor. Zoning/Entitlements: The zoning designations of all five comparables are generally similar to that of the subject’s CV zone in terms of uses permitted, building heights and coverage ratios. It is noted, however, that the subject’s CV zone allows for a higher maximum residential density. As such an upward adjustment to each comparable is applied. 7g. - Community and Economic Development Department Page 47 of 200 Valbridge Property Advisors Allen Brackett Shedd Page 13 13-0142.docx - Copyright © 2013 The adjustments discussed above are not meant to be precise adjustments, but rather are utilized to show the thought process of the appraiser, and factors considered in our analysis. With this in mind, the following chart summarizes the analysis: Reconciliation of Sales and Conclusion of Fee Simple Value After adjustments, a price per square foot value for the subject toward the upper end of the range is indicated. Such a value is appropriate when considering the subject’s good access and exposure, yet larger size upon assemblage. Considering all of these factors, a value for the subject at $25.00 per square foot is concluded. Applying this value to the subject right-of-way to be vacated results in a total fee simple land value conclusion calculated as follows: 6,170 sf @ $25.00/sf= $154,250 ROUNDED $155,000 Discount for Existing Easements to be Retained As noted previously, existing power lines are located within the boundaries of the subject right-of-way. As such, an easement for power lines will be retained within the subject right-of-way subsequent to the vacation. The easement will encumber the entire 6,170-square-foot subject right-of-way and will allow Puget Sound Energy (PSE) the right to use the Easement Area to construct, operate, maintain, repair, replace, improve, remove and enlarge one or more utility systems for purposes of transmission, distribution and sale of electricity. Included in the easement is the right to place overhead, surface and subterranean facilities within the easement area. The previously concluded fee value reflects a value contribution for the subject right-of-way as part of the larger parcel with which it would be assembled and as if vacant and available for development consistent with its zoning. In reality, the power line easement to be retained restricts the utility of the subject right-of-way compared to the more traditional uses reflected in the comparable sales and fee simple value conclusion. Accordingly, an adjustment or discount for the burden of the easement to be retained for these items must be made to the fee value. Adjustment Chart - Land Sales Actual Rights Conditions Market Access/Topog./Zoning/Cumulative Sale Price/sf Conveyed Financ.of Sale Conditions Location Size Exposure Shape Utilities Entitlements Indication 1 $23.25 0 0 0 0 Similar Sup (-)Inf (+)Inf (+)Similar Inf (+)Inferior 2 $30.13 0 0 0 0 Similar Sup (-)Similar Similar Similar Inf (+)Similar 3 $21.27 0 0 0 0 Similar Sup (-)Similar Inf (+)Similar Inf (+)Inferior 4 $24.14 0 0 0 0 Similar Similar Inf (+)Similar Similar Inf (+)Inferior 5 $16.51 0 0 0 0 Similar Inf (+)Inf (+)Similar Similar Inf (+)Inferior 7g. - Community and Economic Development Department Page 48 of 200 Valbridge Property Advisors Allen Brackett Shedd Page 14 13-0142.docx - Copyright © 2013 In accordance with the “bundle of rights” theory of property, real property can be analyzed as a bundle of rights or a bundle of sticks with the fee interest representing the complete bundle. An easement under this analogy represents the loss or the taking of some of these rights or sticks in the bundle. Typically, the property is then of less value due to the owner’s loss of some rights associated with fee ownership. Damages due to easements are based upon actual sales, transactions by public and private entities, case studies, and literature published by the Appraisal Institute and the American Right of Way Association. Our easement experience includes: appraisal and acquisition of easements for powerline; sewer lines; gas lines; water lines; sidewalk, slope, and construction easements; road right-of-ways; and conservation easements. Our experience reflects the full range of loss depending on utility for future development. Based a review of various information and acquisitions, easement discounts of 50% or more are associated with overhead powerline right-of-ways. Subsurface easements for water, sewer, or gas lines can be less intrusive and discounts less than 50% are experienced. Such easement discounts are also reflected in a 1999 Washington State Railroad Right-of-Way Study, a copy of which is retained in our files. This study surveyed various public utilities as to the appropriate amount which utilities should pay to utilize railroad right-of-ways for linear easements or crossings. In the study, various utilities including water and electric companies were interviewed with water companies indicating they typically purchase subsurface between easements for 15% and 25% of the land value of the easement area prior to encumbrance. Power companies surveyed responded that they typically acquire overhead powerline easements at between 40% to 67% of the land value of the easement area prior to encumbrance. Such discounts apply in situations where only the easement area is impacted. In situations where the easement creates impacts to a larger parcel, severance damages to the area outside the easement area would exist. Where damage exists outside the easement areas, such discount ratios as discussed above would not apply. However, based on the analysis, the remainder area outside of the existing easement is not impacted. Therefore, more typical easement discounts are warranted. The easement on the subject represents a potential aerial surface and/or subsurface easement. While the encumbered area associated with the easement, which consists of the subject right-of-way in its entirety, cannot be utilized for building construction, it can be included in density calculations and can be used for setback requirements, access and/or parking. In the case of the subject’s zoning, a 10-foot setback is required and thus it can be argued that a portion of the subject right-of-way upon assemblage would not be able to be developed anyway. However, the subject zoning code allows for a reduction of the setback to zero through a design review. As a result of the easement, the potential reduction in the setback is lost. Based on these factors, a discount from the previously concluded fee simple value of 50% is concluded to be appropriate. This 7g. - Community and Economic Development Department Page 49 of 200 Valbridge Property Advisors Allen Brackett Shedd Page 15 13-0142.docx - Copyright © 2013 discount is applied to the area encumbered by the easement, which in this case consists of the entire 6,170-square-foot subject right-of-way. When considering a discount of 50% of the fee simple value, a value for the subject right-of-way at $12.50 per square foot is concluded. As such, the overall value for the subject right-of-way can be calculated as follows: 6,170 sf @ $12.50/sf= $77,125 ROUNDED $77,000 Conclusion of Value Considering the analysis discussed above, it is my opinion that the market value of the subject property, as of July 15, 2013, is: SEVENTY-SEVEN THOUSAND DOLLARS ($77,000) 7g. - Community and Economic Development Department Page 50 of 200 Valbridge Property Advisors Allen Brackett Shedd Page 16 13-0142.docx - Copyright © 2013 CERTIFICATION OF VALUE I, the undersigned, do hereby certify that, to the best of my knowledge and belief: The statements of fact contained in this report and upon which the opinions herein are based are true and correct. The reported analyses, opinions, and conclusions are limited only by the reported assumptions and limiting conditions, and are my personal, impartial, and unbiased professional analyses, opinions, and conclusions I have no interest, either present or prospective in the property that is the subject of this report, and no personal interest with respect to the parties involved. I have no bias with respect to the subject property, or to the parties involved. My engagement in this assignment was in no way contingent upon developing or reporting predetermined results, nor was it based on a requested minimum valuation, a specific value, or the approval of a loan. My compensation for completing this assignment is not contingent upon the development or reporting of a predetermined value or direction in value that favors the cause of the client, the amount of the value opinion, the attainment of a stipulated result, or the occurrence of a subsequent event directly related to the intended use of this appraisal. The reported analyses, opinions, and conclusions were developed, and this report has been prepared, in conformity with the requirements of the Code of Professional Ethics & Standards of Professional Appraisal Practice of the Appraisal Institute, which include the Uniform Standards of Professional Appraisal Practice. I have not performed valuation or consulting services on this property in the past three years. I have made a personal inspection of the subject property. No one provided significant real property appraisal assistance to the person signing this certification, with the exception of the person(s) shown on additional certification(s), if enclosed. The use of this report is subject to the requirements of the Appraisal Institute relating to review by its duly authorized representatives. As of the date of this report, I have completed the continuing education program of the Appraisal Institute. Gregory L. Goodman, MAI State Cert. #27011-1101089 7g. - Community and Economic Development Department Page 51 of 200 Valbridge Property Advisors Allen Brackett Shedd 13-0142.docx - Copyright © 2013 ADDENDA 7g. - Community and Economic Development Department Page 52 of 200 Valbridge Property Advisors Allen Brackett Shedd 13-0142.docx - Copyright © 2013 LEGAL DESCRIPTION 7g. - Community and Economic Development Department Page 53 of 200 7g . - C o m m u n i t y a n d E c o n o m i c De v e l o p m e n t D e p a r t m e n t Pa g e 5 4 o f 2 0 0 7g . - C o m m u n i t y a n d E c o n o m i c De v e l o p m e n t D e p a r t m e n t Pa g e 5 5 o f 2 0 0 7g . - C o m m u n i t y a n d E c o n o m i c De v e l o p m e n t D e p a r t m e n t Pa g e 5 6 o f 2 0 0 7g . - C o m m u n i t y a n d E c o n o m i c De v e l o p m e n t D e p a r t m e n t Pa g e 5 7 o f 2 0 0 7g . - C o m m u n i t y a n d E c o n o m i c De v e l o p m e n t D e p a r t m e n t Pa g e 5 8 o f 2 0 0 7g . - C o m m u n i t y a n d E c o n o m i c De v e l o p m e n t D e p a r t m e n t Pa g e 5 9 o f 2 0 0 Valbridge Property Advisors Allen Brackett Shedd 13-0142.docx - Copyright © 2013 EASEMENT 7g. - Community and Economic Development Department Page 60 of 200 7g. - Community and Economic Development Department Page 61 of 200 7g. - Community and Economic Development Department Page 62 of 200 7g. - Community and Economic Development Department Page 63 of 200 7g. - Community and Economic Development Department Page 64 of 200 Valbridge Property Advisors Allen Brackett Shedd 13-0142.docx - Copyright © 2013 QUALIFICATIONS 7g. - Community and Economic Development Department Page 65 of 200 Valbridge Property Advisors Allen Brackett Shedd 13-0142.docx - Copyright © 2013 Qualifications of Gregory L. Goodman, MAI Experience Principal of Allen Brackett Shedd. Involved in the real estate field since February of 1999. Appraisal experience includes a wide variety of appraisal assignments, consisting of vacant and improved commercial, industrial, residential and mixed-use properties. Examples of the wide variety of properties appraised include: large scale mixed-use projects comprised of retail, office and residential uses, subdivisions, sensitive area properties, rail and utility corridors, lake bedlands, shopping centers, auto dealerships, as well as more typical commercial, industrial and residential improved properties. Valuations have been performed for acquisitions in fee, leased fee and leasehold interests, as well as various partial interests including conservation easements, utility easements, subsurface easements and air rights easements. Numerous appraisal assignments performed have been associated with condemnation of all or a part of a property and involved mediation and other litigation support work. Appraisal assignments include work throughout the Puget Sound Region, including King, Pierce, Snohomish, Kitsap, Thurston, Whatcom, Skagit, and Island Counties. Professional Affiliations Member, Appraisal Institute. Received MAI designation May 12, 2008 Member of the International Right-of-Way Association Education University of Washington, Seattle, Washington: BA Degree in Business Administration with concentrations in Finance and Information Systems, December of 1998. Have completed all appraisal courses required for MAI designation. Additional seminar and continuing education includes: Appraisal Institute: Basic and Advanced Condemnation courses Appraisal Institute: UASFLA (Yellow Book) course Appraisal Institute: Attacking and Defending an Appraisal in Litigation Appraisal Institute: Valuation of Easements and other Divided Interests Representative Client List: Government/Public Agencies City of Auburn City of SeaTac City of Bellevue City of Sumner City of Bellingham City of Seattle City of Bothell City of Tukwila City of Edmonds City of University Place City of Everett Covington Water District City of Kent Edmonds School District City of Kirkland Jefferson County City of North Bend King County Dept. of Transportation City of Puyallup King County Open Space City of Redmond King County Public Works City of Renton Monroe Public Schools 7g. - Community and Economic Development Department Page 66 of 200 Valbridge Property Advisors Allen Brackett Shedd 13-0142.docx - Copyright © 2013 GREGORY L. GOODMAN, MAI (cont.) Government/Public Agencies (cont.) Pierce County Public Works Seattle Public Utilities Port of Seattle Shoreline Public Schools Renton Housing Authority Sound Transit Seattle Housing Authority US Army Corps of Engineers Seattle Monorail Project US Navy Seattle Public Library Washington State Dept. of Transportation Seattle Public School District Woodinville Water District Attorneys-at-Law Cairncross & Hempelmann Perkins Coie Davis Wright Tremaine Riddell Williams Foster Pepper Short, Cressman & Burgess Graham & Dunn Stella Pitts and Associates Hanson, Baker, Ludlow & Drumheller Tousley Brain Stephens K&L Gates Washington State Attorney General’s Office Lane, Powell, Spears & Lubersky Williams & Williams Lasher, Holzapfel, Sperry & Ebberson Private Sector Burlington Northern Santa Fe McDonald’s Corporation Cadman, Inc. Nature Conservancy Cascade Land Conservancy Newmark Realty Capital Certified Land Services New Ventures Group Clise Properties Inc. Palmer Coking Coal David Evans and Associates Pharos Corporation Deposit & Associates Port Blakely Communities Development Services of America Puget Sound Energy Evergreen Center Associates Puget Western Greenwell/Renton LLC Quadrant Jefferson Land Trust San Juan Preservation Trust Johnson Underwood Properties Seattle Art Museum Kittitas Conservation Trust Seattle Pacific University Lakeside Industries Staubach Lynden Incorporated Stellar Holdings, Inc. Master Park Financial Institutions Anchor Savings Bank Toyota Financial Services Bank of America Sterling Savings Bank Charter Bank Union Bank Frontier Bank US Bank Timberland Bank State Certification Number – General: 27011-1101089 Expiration: 12/02/13 (Revised 12/13/11) 7g. - Community and Economic Development Department Page 67 of 200 7g. - Community and Economic Development Department Page 68 of 200 7g. - Community and Economic Development Department Page 69 of 200 7g. - Community and Economic Development Department Page 70 of 200 7g. - Community and Economic Development Department Page 71 of 200 7g. - Community and Economic Development Department Page 72 of 200 7g. - Community and Economic Development Department Page 73 of 200 7g. - Community and Economic Development Department Page 74 of 200 CITY OF RENTON COUNCIL AGENDA BILL Subject/Title: Lease of Tiffany Park Recreation Building to Renton Youth Advocacy Center (RYAC) Meeting: Regular Council - 19 Aug 2013 Exhibits: Issue Paper Lease Submitting Data: Dept/Div/Board: Community Services Staff Contact: Peter Renner, Facilities Director, Ext. 6605 Recommended Action: Council concur Fiscal Impact: Expenditure Required: $ Transfer Amendment: $ Amount Budgeted: $ Revenue Generated: $$7,200.00/year Total Project Budget: $ City Share Total Project: $ SUMMARY OF ACTION: A community-based non-profit organization, Renton Youth Advocacy Center (RYAC), intends to provide after-school programs in the Tiffany Park area for youth ages 12-18. These programs will include tutoring and mentoring with the intent to increase community involvement as well. All of the programs will have no fees, and support will be exclusively provided by volunteers. At inception, the programs will be held twice a week, Tuesdays and Thursdays. STAFF RECOMMENDATION: Approve the RYAC lease and authorize the Mayor and City Clerk to sign 7h. - Community Services Department recommends approval of a one-year lease Page 75 of 200 COMMUNITY SERVICES DEPARTMENT M E M O R A N D U M DATE:July 22, 2013 TO:Randy Corman, Council President Members of Renton City Council VIA:Denis Law, Mayor FROM:Terry Higashiyama, Community Services Administrator STAFF CONTACT:Peter Renner, Facilities Director, Ext. 6605 SUBJECT:Tiffany Park Recreation Building Lease with Renton Youth Advocacy Center Issue: Should the Council approve a one-year lease of the Tiffany Park Recreation Building with Renton Youth Advocacy Center (RYAC)? Recommendation: Council authorize the Mayor and City Clerk to sign the Lease. Background: RYAC is a community-based 501c3 organization that supports youth of middle and high school age by providing mentoring and tutoring in the form of after- school drop-in programs. RYAC has a Board of Directors that consists of youth advocates and program operators, concerned parents, City Public Safety officers and various professionals. Volunteers will be screened through the Washington State Patrol WATCH format. The Tiffany Park Recreation Building has been out of operation for four years, except for the public restrooms, which are accessible from the outside. The lease is for one year, with up to four mutual-agreement one-year extensions. The lease rate is $600.00/month plus excise tax. Excise tax will not be collected if the lessee obtains and maintains a non-profit exemption certification from the Washington Department of Revenue. The City will continue to pay the utility costs, most of which are incurred because of the public restroom operation and the maintenance level operation of heating equipment. 7h. - Community Services Department recommends approval of a one-year lease Page 76 of 200 Randy Corman, Council President Members of Renton City Council Page 2 of 2 July 22, 2013 At inception, the drop-in center will operate on Tuesdays and Thursdays from 3:30 p.m. to 6:30 p.m. The lessee will collaborate in restocking of restroom supplies and garbage disposal. Conclusion: Approving the lease with RYAC will provide the City with valuable youth services and present concerned citizens an opportunity to volunteer in support of healthful and productive child development during the difficult teen years. 7h. - Community Services Department recommends approval of a one-year lease Page 77 of 200 7h. - Community Services Department recommends approval of a one-year lease Page 78 of 200 7h. - Community Services Department recommends approval of a one-year lease Page 79 of 200 7h. - Community Services Department recommends approval of a one-year lease Page 80 of 200 7h. - Community Services Department recommends approval of a one-year lease Page 81 of 200 7h. - Community Services Department recommends approval of a one-year lease Page 82 of 200 7h. - Community Services Department recommends approval of a one-year lease Page 83 of 200 7h. - Community Services Department recommends approval of a one-year lease Page 84 of 200 7h. - Community Services Department recommends approval of a one-year lease Page 85 of 200 7h. - Community Services Department recommends approval of a one-year lease Page 86 of 200 7h. - Community Services Department recommends approval of a one-year lease Page 87 of 200 7h. - Community Services Department recommends approval of a one-year lease Page 88 of 200 7h. - Community Services Department recommends approval of a one-year lease Page 89 of 200 CITY OF RENTON COUNCIL AGENDA BILL Subject/Title: DNR Aquatics Land Lease - Gene Coulon Memorial Beach Park Meeting: Regular Council - 19 Aug 2013 Exhibits: Aquatic Land Lease Resolution Submitting Data: Dept/Div/Board: Community Services Staff Contact: Kelly Beymer, Parks & Golf Course Director - ext. 6617 Recommended Action: Council Concur Fiscal Impact: Expenditure Required: $ $4,481.79 Transfer Amendment: $ Amount Budgeted: $ Revenue Generated: $ Total Project Budget: $ City Share Total Project: $ SUMMARY OF ACTION: The Community Services Department, the City Attorney and the Department of Natural Resources (DNR) Land Manager formerly negotiated a thirty (30) year lease for use of State-Owned Harbor areas for Gene Coulon Memorial Beach Park. The previous lease expired November 1, 2010 and the City has been in 'hold over' status during lease negotiations. The new lease structure identifies rental/lease hold rates for the Non-Water Dependant use on State-owned aquatic land (a portion of Ivar's) $3,981.79 annually that will be paid by Ivar's. An additional one-time financial security amount of $500 from the City is also required. By approving this lease, the use of docks, waterwalks and other areas that lie within the inner and outer harbor lines of State-Owned property will continue to be enjoyed as Gene Coulon Memorial Beach Park. STAFF RECOMMENDATION: Approve the Department of Natural Resources Aquatics Land Lease for Gene Coulon Memorial Beach Park for the 30-year term as written and adopt the Resolution 7i. - Community Services Department recommends approval of a new thirty-Page 90 of 200 7i. - Community Services Department recommends approval of a new thirty-Page 91 of 200 7i. - Community Services Department recommends approval of a new thirty-Page 92 of 200 7i. - Community Services Department recommends approval of a new thirty-Page 93 of 200 7i. - Community Services Department recommends approval of a new thirty-Page 94 of 200 7i. - Community Services Department recommends approval of a new thirty-Page 95 of 200 7i. - Community Services Department recommends approval of a new thirty-Page 96 of 200 7i. - Community Services Department recommends approval of a new thirty-Page 97 of 200 7i. - Community Services Department recommends approval of a new thirty-Page 98 of 200 7i. - Community Services Department recommends approval of a new thirty-Page 99 of 200 7i. - Community Services Department recommends approval of a new thirty-Page 100 of 200 7i. - Community Services Department recommends approval of a new thirty-Page 101 of 200 7i. - Community Services Department recommends approval of a new thirty-Page 102 of 200 7i. - Community Services Department recommends approval of a new thirty-Page 103 of 200 7i. - Community Services Department recommends approval of a new thirty-Page 104 of 200 7i. - Community Services Department recommends approval of a new thirty-Page 105 of 200 7i. - Community Services Department recommends approval of a new thirty-Page 106 of 200 7i. - Community Services Department recommends approval of a new thirty-Page 107 of 200 7i. - Community Services Department recommends approval of a new thirty-Page 108 of 200 7i. - Community Services Department recommends approval of a new thirty-Page 109 of 200 7i. - Community Services Department recommends approval of a new thirty-Page 110 of 200 7i. - Community Services Department recommends approval of a new thirty-Page 111 of 200 7i. - Community Services Department recommends approval of a new thirty-Page 112 of 200 7i. - Community Services Department recommends approval of a new thirty-Page 113 of 200 7i. - Community Services Department recommends approval of a new thirty-Page 114 of 200 7i. - Community Services Department recommends approval of a new thirty-Page 115 of 200 7i. - Community Services Department recommends approval of a new thirty-Page 116 of 200 7i. - Community Services Department recommends approval of a new thirty-Page 117 of 200 7i. - Community Services Department recommends approval of a new thirty-Page 118 of 200 7i. - Community Services Department recommends approval of a new thirty-Page 119 of 200 7i. - Community Services Department recommends approval of a new thirty-Page 120 of 200 7i. - Community Services Department recommends approval of a new thirty-Page 121 of 200 7i. - Community Services Department recommends approval of a new thirty-Page 122 of 200 7i. - Community Services Department recommends approval of a new thirty-Page 123 of 200 CITY OF RENTON COUNCIL AGENDA BILL Subject/Title: Job Order Contract with Bergschauer Phillips for City Attorney Office Tenant Improvements in the 200 Mill Building Meeting: Regular Council - 19 Aug 2013 Exhibits: Job Order Contract Work Order #1 Submitting Data: Dept/Div/Board: Community Services Staff Contact: Michael J. Nolan/Peter Renner, Facilities Director, Ext 6605 Recommended Action: Council Concur Fiscal Impact: Expenditure Required: $ $320,028.44 Transfer Amendment: $ Amount Budgeted: $ Revenue Generated: $ Total Project Budget: $ City Share Total Project: $ SUMMARY OF ACTION: Council previously approved a Job Order Contract (CAG-13-149, attached) with Berschauer Phillips, that enables the City, by State law, to contract directly with a general contractor for construction projects up to $350,000 each and to an aggregated total of $4,000,000 per year. The attached work order is within 10% of the previous estimate that we received roughly a year ago, with a scope of work slightly larger than that estimate, due to uncovered conditions. STAFF RECOMMENDATION: Approve the Job Order Contract work order with Berschauer Phillips for City Attorney Office tenant improvements in the amount of $320,028.44 at the 200 Mill Building, and authorize the Mayor and City Clerk to sign 7j. - Community Services Department recommends approval of Job Order Page 124 of 200 7j. - Community Services Department recommends approval of Job Order Page 125 of 200 7j. - Community Services Department recommends approval of Job Order Page 126 of 200 7j. - Community Services Department recommends approval of Job Order Page 127 of 200 7j. - Community Services Department recommends approval of Job Order Page 128 of 200 7j. - Community Services Department recommends approval of Job Order Page 129 of 200 7j. - Community Services Department recommends approval of Job Order Page 130 of 200 7j. - Community Services Department recommends approval of Job Order Page 131 of 200 7j. - Community Services Department recommends approval of Job Order Page 132 of 200 7j. - Community Services Department recommends approval of Job Order Page 133 of 200 7j. - Community Services Department recommends approval of Job Order Page 134 of 200 7j. - Community Services Department recommends approval of Job Order Page 135 of 200 7j. - Community Services Department recommends approval of Job Order Page 136 of 200 7j. - Community Services Department recommends approval of Job Order Page 137 of 200 7j. - Community Services Department recommends approval of Job Order Page 138 of 200 7j. - Community Services Department recommends approval of Job Order Page 139 of 200 7j. - Community Services Department recommends approval of Job Order Page 140 of 200 7j. - Community Services Department recommends approval of Job Order Page 141 of 200 7j. - Community Services Department recommends approval of Job Order Page 142 of 200 7j. - Community Services Department recommends approval of Job Order Page 143 of 200 CITY OF RENTON COUNCIL AGENDA BILL Subject/Title: Federal Aviation Administration Grant 026 - Wildlife Hazard Assessment Meeting: Regular Council - 19 Aug 2013 Exhibits: Issue Paper Federal Grant Application Submitting Data: Dept/Div/Board: Public Works Staff Contact: Jonathan Wilson, Assistant Airport Manager (extension 7477) Recommended Action: Council Concur Fiscal Impact: Expenditure Required: $ 166,667.00 Transfer Amendment: $ Amount Budgeted: $ 88,000.00 Revenue Generated: $150,000.00 Total Project Budget: $ 166,667.00 City Share Total Project: $ 16,667.00 SUMMARY OF ACTION: The FAA is offering grant funding for the airport to complete a Wildlife Hazard Assessment (WHA). A WHA is a site specific report designed to document unique wildlife and habitat information at a particular airport. The WHA will identify hazardous species, natural and artificial attractants, and wildlife trends at Renton Airport. The overall goal is to increase the safe operation of aircraft to and from the airport by reducing wildlife interference. Once complete the WHA is the primary tool used to complete the Wildlife Hazard Management Plan (WHMP). The WHMP details the implementation of the recommendations made in the WHA. STAFF RECOMMENDATION: Approve the Federal Aviation Administration Grant 026 application for up to $150,000 for the Wildlife Hazard Assessment and authorize the Mayor and City Clerk to sign the federal grant assurances and accept and sign the grant offer in the amount awarded by the federal granting agency. 7k. - Transportation Systems Division recommends approval of an agreement Page 144 of 200 H:\File Sys\AIR - Airport, Transportation Services Division\03 Projects\01 Tasks\Agenda Bills\2013 Agenda Bills\Agenda bill - FAA Grant 26 Wildlife hazard PUBLIC WORKS DEPARTMENT M E M O R A N D U M DATE:August 19, 2013 TO:Randy Corman, Council President Members of the Renton City Council VIA:Denis Law, Mayor FROM:Gregg Zimmerman, Administrator STAFF CONTACT:Jonathan Wilson, Assistant Airport Manager (ext 7477) SUBJECT:Federal Aviation Administration Grant 026 – Wildlife Hazard Assessment ISSUE: Should the Council approve a Federal Aviation Administration grant for up to $150,000 for a wildlife hazard assessment? RECOMMENDATION: Approve the Federal Aviation Administration Grant 026 application for up to $150,000 for the Wildlife Hazard Assessment and authorize the Mayor and City Clerk to sign the federal grant assurances and accept and sign the grant offer in the amount awarded by the federal granting agency. BACKGROUND: The FAA has recently made federal grant funding available for certain general aviation airports, like Renton, to complete Wildlife Hazard Assessments (WHA). A WHA is a site specific report designed to document unique wildlife and habitat information at a particular airport. The WHA will identify hazardous species, natural and artificial attractants, and wildlife trends at Renton Airport. The overall goal is to increase the safe operation of aircraft to and from the airport by reducing wildlife interference. Historically, only Part 139 certificated airports completed these assessments. Renton is not a certificated airport. 7k. - Transportation Systems Division recommends approval of an agreement Page 145 of 200 Randy Corman, Council President Members of the Renton City Council Page 2 of 2 August 19, 2013 Recently, however, new emphasis has been placed on completing these assessments for a number of non-certificated airports due to some previous high profile bird strike accidents. The NTSB’s recommendation is that “…all federally obligated GA airports located near wildlife attractants…perform WHAs as specified.” The FAA agrees with this recommendation. Renton is a federally obligated airport as we have accepted federal grant funds and agreed to federal grant assurances in the past. Once complete, the WHA becomes the tool to create the Wildlife Hazard Management Plan (WHMP). The WHMP is an action plan created by the Airport that will detail: 1.Authorities and responsibilities; 2.Target dates for WHA recommended actions; 3.Wildlife hazard management procedures; 4.Habitat management; 5.Required permits; 6.Available resources; 7.Recommended training; and 8.WHMP effectiveness reviews and evaluations. The WHMP will be reviewed and evaluated regularly by Airport and USDA staff. The Airport has partnered with the USDA to help with wildlife management duties on the airfield and in the immediate vicinity. The FAA is requesting the Airport solicit private companies to bid on completing the WHA. The lowest responsible and responsive bidder will be awarded the work. The advertisement for this work will be put out by the end of August. The current capital budget for the Wildlife Assessment line item is $88,000.00. The FAA is prepared to offer up to $150,000.00 in grant funding based on the bids received. The grant would be for 90 percent of the project cost with the Airport contributing the remaining 10 percent. FAA staff have indicated that other airports have completed similar WHAs for approximately $70,000.00. cc:Doug Jacobson, Deputy PW Administrator – Transportation Nancy Thompson, Transportation Secretary Susan Campbell-Hehr, Airport Secretary 7k. - Transportation Systems Division recommends approval of an agreement Page 146 of 200 7k. - Transportation Systems Division recommends approval of an agreement Page 147 of 200 7k. - Transportation Systems Division recommends approval of an agreement Page 148 of 200 7k. - Transportation Systems Division recommends approval of an agreement Page 149 of 200 7k. - Transportation Systems Division recommends approval of an agreement Page 150 of 200 7k. - Transportation Systems Division recommends approval of an agreement Page 151 of 200 7k. - Transportation Systems Division recommends approval of an agreement Page 152 of 200 7k. - Transportation Systems Division recommends approval of an agreement Page 153 of 200 7k. - Transportation Systems Division recommends approval of an agreement Page 154 of 200 7k. - Transportation Systems Division recommends approval of an agreement Page 155 of 200 7k. - Transportation Systems Division recommends approval of an agreement Page 156 of 200 7k. - Transportation Systems Division recommends approval of an agreement Page 157 of 200 7k. - Transportation Systems Division recommends approval of an agreement Page 158 of 200 7k. - Transportation Systems Division recommends approval of an agreement Page 159 of 200 7k. - Transportation Systems Division recommends approval of an agreement Page 160 of 200 7k. - Transportation Systems Division recommends approval of an agreement Page 161 of 200 7k. - Transportation Systems Division recommends approval of an agreement Page 162 of 200 7k. - Transportation Systems Division recommends approval of an agreement Page 163 of 200 7k. - Transportation Systems Division recommends approval of an agreement Page 164 of 200 7k. - Transportation Systems Division recommends approval of an agreement Page 165 of 200 7k. - Transportation Systems Division recommends approval of an agreement Page 166 of 200 7k. - Transportation Systems Division recommends approval of an agreement Page 167 of 200 7k. - Transportation Systems Division recommends approval of an agreement Page 168 of 200 7k. - Transportation Systems Division recommends approval of an agreement Page 169 of 200 7k. - Transportation Systems Division recommends approval of an agreement Page 170 of 200 7k. - Transportation Systems Division recommends approval of an agreement Page 171 of 200 7k. - Transportation Systems Division recommends approval of an agreement Page 172 of 200 7k. - Transportation Systems Division recommends approval of an agreement Page 173 of 200 7k. - Transportation Systems Division recommends approval of an agreement Page 174 of 200 7k. - Transportation Systems Division recommends approval of an agreement Page 175 of 200 7k. - Transportation Systems Division recommends approval of an agreement Page 176 of 200 7k. - Transportation Systems Division recommends approval of an agreement Page 177 of 200 7k. - Transportation Systems Division recommends approval of an agreement Page 178 of 200 7k. - Transportation Systems Division recommends approval of an agreement Page 179 of 200 7k. - Transportation Systems Division recommends approval of an agreement Page 180 of 200 7k. - Transportation Systems Division recommends approval of an agreement Page 181 of 200 7k. - Transportation Systems Division recommends approval of an agreement Page 182 of 200 7k. - Transportation Systems Division recommends approval of an agreement Page 183 of 200 7k. - Transportation Systems Division recommends approval of an agreement Page 184 of 200 7k. - Transportation Systems Division recommends approval of an agreement Page 185 of 200 7k. - Transportation Systems Division recommends approval of an agreement Page 186 of 200 7k. - Transportation Systems Division recommends approval of an agreement Page 187 of 200 7k. - Transportation Systems Division recommends approval of an agreement Page 188 of 200 7k. - Transportation Systems Division recommends approval of an agreement Page 189 of 200 7k. - Transportation Systems Division recommends approval of an agreement Page 190 of 200 7k. - Transportation Systems Division recommends approval of an agreement Page 191 of 200 7k. - Transportation Systems Division recommends approval of an agreement Page 192 of 200 7k. - Transportation Systems Division recommends approval of an agreement Page 193 of 200 9a. - Aquatic Lands Lease for Gene Coulon Memorial Beach Park (See 7.i.)Page 194 of 200 9a. - Aquatic Lands Lease for Gene Coulon Memorial Beach Park (See 7.i.)Page 195 of 200 9a. - Sunset Lane NE street vacation; VAC-13-001, Renton Housing Page 196 of 200 9a. - Sunset Lane NE street vacation; VAC-13-001, Renton Housing Page 197 of 200 9a. - Sunset Lane NE street vacation; VAC-13-001, Renton Housing Page 198 of 200 9a. - Sunset Lane NE street vacation; VAC-13-001, Renton Housing Page 199 of 200 9a. - Sunset Lane NE street vacation; VAC-13-001, Renton Housing Page 200 of 200