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HomeMy WebLinkAboutFinal Agenda Packet CITY OF RENTON AGENDA - City Council Regular Meeting 7:00 PM - Monday, November 10, 2025 Council Chambers, 7th Floor, City Hall – 1055 S. Grady Way Please note that this regular meeting of the Renton City Council is being offered as a hybrid meeting and can be attended in person at the Council Chambers, 7th floor of City Hall, 1055 S Grady Way, Renton, 98057 or remotely through Zoom. For those wishing to attend by Zoom: Please (1) click this link https://us02web.zoom.us/j/84938072917?pwd=TUNCcnppbjNjbjNRMWpZaXk2bjJnZz09 (or copy/paste the URL into a web browser) or (2) call-in to the Zoom meeting by dialing 253-215- 8782 and entering 849 3807 2917 Passcode 156708, or (3) call 425-430-6501 by 5 p.m. on the day of the meeting to request an invite with a link to the meeting. Registration for Audience Comment: Registration will be open at all times, but speakers must register by 5 p.m. on the day of a Council meeting in order to be called upon. Anyone who registers after 5 p.m. on the day of the Council meeting will not be called upon to speak and will be required to re-register for the next Council meeting if they wish to speak at that next meeting.  Request to Speak Registration Form: o Click the link or copy/paste the following URL into your browser: https://forms.rentonwa.gov/Forms/registertospeakform  You may also call 425-430-6501 or email counciladmin@rentonwa.gov to register. Please provide your full name, city of residence, email address and/or phone number, and topic in your message.  A sign-in sheet is also available for those who attend in person. Video on Demand: Please click the following link to stream Council meetings live as they occur, or to select previously recorded meetings: Renton Channel 21 Video on Demand 1. CALL TO ORDER AND PLEDGE OF ALLEGIANCE 2. ROLL CALL 3. SPECIAL PRESENTATION a) Police Department Awards Special Presentation 4. ADMINISTRATIVE REPORT a) Administrative Report 5. AUDIENCE COMMENTS  All remarks must be addressed to the Council as a whole, if a response is requested please provide your name and address, including email address, to the City Clerk to allow for follow-up.  Speakers must sign-up prior to the Council meeting.  Each speaker is allowed three minutes.  When recognized, please state your name & city of residence for the record. NOTICE to all participants: Pursuant to state law, RCW 42.17A.555, campaigning for or against 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. 6. 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 November 3, 2025. Council Concur b) AB - 3972 City Clerk recommends adoption of a resolution setting a public hearing on December 1, 2025, to consider the street vacation petition submitted by the Renton Regional Fire Authority for the vacation of unopened right-of-way located east of 158th Ave SE and south of NE 128th St. Council Concur; Set Public Hearing on December 1, 2025. c) AB - 3971 Community & Economic Development Department recommends adoption of an ordinance authorizing the acquisition of King County Parcel Nos. 3023059096, 3023059098, 3023059099, and 3023059091, including through the use of eminent domain and initiation of condemnation action if necessary, which will be repurposed for the relocation of a Parks Maintenance Shop. Refer to Finance Committee d) AB - 3962 Finance Department submits a utility billing adjustment request for Trevi, LLC, owner of a multi-family property located at 333 Vuemont Pl NE, and recommends approval to adjust the account in the amount of $23,892.10 for excess water usage caused by a qualified water line leak in accordance with RMC 8-4-46 and 8-5-23. Refer to Finance Committee e) AB - 3973 Public Works Airport recommends execution of Addendum 12-25 to LAG-87- 001, lessee Boeing Employees Flying Association, Inc., which increases the annual lease revenue to $191,716.80 plus leasehold excise tax, and includes updates to insurance coverage and lessor's current address. Refer to Transportation (Aviation) Committee f) AB - 3957 Public Works Facilities Division recommends adoption of an ordinance extending the waiver of parking fees for periods of up to ten (10) hours at the City Center Parking Garage through December 31, 2026. Refer to Finance Committee g) AB - 3961 Public Works Transportation Systems Division recommends execution of Change Order No. 52 to CAG-22-163, contractor Pivetta Brothers Construction, Inc., in the amount of $224,018.90, for additional work related to the Rainier Ave S Corridor Improvement - Phase 4 project. Refer to Transportation (Aviation) Committee h) AB - 3964 Public Works Transportation Systems Division recommends execution of Amendment No. 4 to CAG-20-340, contractor Western Systems, in the amount of $123,200, for SCOOT (Split Cycle Offset Optimization Technique) services to support the installation and integration, and the purchase of vehicle detection equipment from Swarco in the amount of $133,683.60 for seven traffic signals. These signals are located at NE 3rd St from Monterrey Ave NE to Sunset Blvd, Sunset Blvd from NE 3rd St to I-405 on-ramp and Maple Valley Hwy/Bronson Way, and Bronson Way/Maple Valley Hwy from Factory Ave N/Houser Way to Cedar River Park Drive. This project expands the city's SCOOT system to 34 adaptive signal control intersections. Refer to Transportation (Aviation) Committee i) AB - 3970 Public Works Utility Systems Division recommends adoption of a resolution authorizing execution of the First Amendment to CAG-11-093, contractor City of Seattle, that updates cost shares, redistributes cost savings, and continues to exempt the city from City of Seattle facilities charges. Refer to Utilities Committee 7. 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: 1) Vouchers; 2) Renewal of Stop Loss Coverage for 2026 b) Planning & Development Committee: 1) Critical Areas Ordinance 8. LEGISLATION Resolution: a) Resolution No. 4569: Setting public hearing for RFA Street Vacation Petition (See Item 6.a) Ordinance for first reading: a) Ordinance No. 6173: Amending RMC 4-2, 4-4, and 4-11 (Co-Living Housing) D-239 (Approved via Planning & Development Committee 8/11/2025) 9. NEW BUSINESS (Includes Council Committee agenda topics; visit rentonwa.gov/cityclerk for more information.) 10. ADJOURNMENT COMMITTEE OF THE WHOLE MEETING AGENDA (Preceding Council Meeting) CANCELED 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 To view Council Meetings online, please visit rentonwa.gov/councilmeetings DATE: November 6, 2025 TO: James Alberson, Jr., Council President Members of the Renton City Council FROM: Armondo Pavone, Mayor Ed VanValey, Chief Administrative Officer SUBJECT: Administrative Report • On Thursday, October 30 at the Renton Highlands Park and Neighborhood Center, city staff joined Renton School District officials, community leaders, and HCP OneHealthPort, as they celebrated the success and continued growth of the Renton Student Health Hub. The Hub is a collaborative initiative aimed at improving student access to behavioral health and housing services and now serves all 26 schools in the Renton School District. The celebration marked a significant milestone in the program’s development, highlighting the power of cross-sector collaboration in addressing community needs. Future plans include exploring opportunities to build on this foundation and ensure every Renton student has access to the care and support needed to thrive. • Information about preventative street maintenance, traffic impact projects, and road closures happening this week can be found at http://rentonwa.gov/traffic. All projects are weather permitting and unless otherwise noted, streets will always remain open.  Monday, November 10 through Friday, November 14, 8:00am-3:00pm. Intermittent lane closure on S 3rd St between Morris Ave S and Logan Ave S for construction work. Approve traffic control plans were issued for all work and will be followed. Questions may be directed to Joel McCann, 425-757-959.  Monday, November 10 through Friday, November 14, 8:00am-3:00pm. Road closure on 125th Ave SE between SE 172nd St and SE 168th St for construction work. Approved traffic control plans were issued for all work and will be followed, including detour and spotters to assist with local traffic and pedestrians. Questions may be directed to Rob Blackburn, 206- 379-1489  Monday, November 10 through Friday, November 14, 8:00am-3:00pm. Intermittent lane closure on SE 172nd St from 122nd Ave SE to 127th Ave SE for construction work. Approved traffic control plans were issued for all work and will be followed. Questions may be directed to Rob Blackburn, 206-379-1489.  Monday, November 10 through Friday, November 14. Intermittent lane closure on Rainier Ave N between 3rd St and Airport Way for construction work. Approved traffic control plans were issued for all work and will be followed. Questions may be directed to Joe Nerlfi, 425- 757-9657. AGENDA ITEM #4. a) James Alberson, Jr., Council President Members of the Renton City Council Page 2 of 2 November 6, 2025  Monday, November 10 through Friday, 14, 8:00am-3:00pm. Intermittent lane closure on NE Sunset Blvd at Anacortes Ave NE for utility installation. Approved traffic control plans were issued for all work and will be followed. Questions may be directed to Pat DeCaro, 425- 207-6013.  Monday, November 10 through Friday, November 14, 7:00am-4:00pm. Intermittent lane closure on Union Ave NE between NE 5th St and NE 7th St for construction work. Approved traffic control plans were issued for all work and will be followed. Questions may be directed to Piero D’Amore, 206-999-1833. AGENDA ITEM #4. a) November 3, 2025 REGULAR COUNCIL MEETING MINUTES CITY OF RENTON MINUTES - City Council Regular Meeting 7:00 PM - Monday, November 3, 2025 Council Chambers, 7th Floor, City Hall – 1055 S. Grady Way CALL TO ORDER AND PLEDGE OF ALLEGIANCE Mayor Pavone called the meeting of the Renton City Council to order at 7:00 PM and led the Pledge of Allegiance. ROLL CALL Councilmembers Present: James Alberson, Jr., Council President Carmen Rivera, Council Position No. 2 Valerie O'Halloran, Council Position No. 3 Ryan McIrvin, Council Position No. 4 Ed Prince, Council Position No. 5 Ruth Pérez, Council Position No. 6 Kim-Khánh Vǎn, Council Position No. 7 Councilmembers Absent: ADMINISTRATIVE STAFF PRESENT Armondo Pavone, Mayor Ed VanValey, Chief Administrative Officer Shane Moloney, City Attorney Jason Seth, City Clerk Gina Estep, Community & Economic Development Administrator Martin Pastucha, Public Works Administrator Kari Roller, Finance Department Administrator David Topaz, Human Resources / Risk Management Administrator Maryjane Van Cleave, Parks & Recreation Department Administrator Young Yoon, IT Director Laura Pettitt, Communications & Engagement Director Jennifer Spencer, Recreation Director Rob Shuey, Development Services Director Eric Perry, Government Affairs Manager Chief Jon Schuldt, Police Department Administrator AGENDA ITEM #6. a) November 3, 2025 REGULAR COUNCIL MEETING MINUTES Deputy Chief Ryan Rutledge, Police Department Deputy Chief Jeffery Hardin, Police Department Commander Dan Figaro, Police Department Attended Remotely: Judith Subia, Chief of Staff Kristi Rowland, Deputy CAO Yanna Filippidis, Judicial Administrative Officer ADMINISTRATIVE REPORT CAO Ed VanValey reviewed a written administrative report summarizing the City’s recent progress towards goals and work programs adopted as part of its business plan for 2025 and beyond. Items noted were: • Veterans and non-veterans age 50 and older are invited to celebrate an evening of music and dancing at the annual Veteran’s Day Dance Thursday, November 6 from 5:30-7:30 at the Don Persson Renton Senior Activity Center. Light refreshments will also be provided. Space is limited. To register visit Rentonwa.gov/register and select course #26557 or call 425-430-6633. • Renton’s beloved annual holiday events are right around the corner. Mark your calendars now to save the dates. More information forthcoming! o November 21-22 – Holiday Bazaar, Renton Community Center. o December 5 – Opening Night of Clam Lights, Gene Coulon Memorial Beach Park. o December 6 – Battle of the Badges, Renton Technical College. o December 7 – K9 Candy Cane 5K Fun Run & Walk. o December 14 – Renton City Concert Band’s Holiday Concern, Renton IKEA Performing Arts Center. o January 1 – Polar Bear Double Dip, Lake Washington or Henry Moses Aquatic Center. • Renton residents are encouraged to participate in the public comment process for the City of Tukwila’s proposed alternative trucking route (Alternative 6). This route will reduce truck impacts to Tukwila’s Allentown neighborhood. The proposed reroute could impact roads and nearby neighborhoods in Renton along Martin Luther King, Jr. Way South, SW Sunset Blvd, and Rainier Avenue South. Please submit your comments online before Wednesday, November 12 by visiting tukwilawa.gov/allentown or submit them via email to allentowntruckrerouth@tukwilawa.gov. A paper copy of the draft document is also currently available at the Renton Library located at 100 Mill Avenue South. • Information about preventative street maintenance, traffic impact projects, and road closures happening this week can be found at http://rentonwa.gov/traffic. All projects are weather permitting and unless otherwise noted, streets will always remain open. AUDIENCE COMMENTS • Thy Nguyen, Renton, spoke about predatory towing issues at The Reserve apartment complex. He stated that he believes his business was being targeted by management and requested assistance from city officials. AGENDA ITEM #6. a) November 3, 2025 REGULAR COUNCIL MEETING MINUTES • Miny Tafesse, Renton, spoke about safety issues at her business located 203 S 2nd St. She requested additional police patrols in the area. • Regina Weaver, Renton, thanked city officials for their assistance after speaking to Council last week. She noted that she still does not have hot water but is very appreciative of support she received from the city. • Gabriel Dias, spoke in opposition to the elimination of the Electronic Home Monitoring program from the budget. • Lumen (Sunny) Nguyen, Renton, spoke about predatory towing practices at The Reserve apartment complex. She stated that she has lost customers because of the towing issues. She requested assistance from city officials. • Victor Yan, Renton, speaking on behalf of his mother, stated that she lives at The Reserve complex and has had her car towed because of the predatory towing practices from the management of the complex. He stated that most residents are low-income, elderly, and do not speak English. He requested assistance from city officials. 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. Approval of Council Meeting minutes of October 27, 2025. Council Concur. AB - 3959 Human Resources / Risk Management Department recommends execution of 2026 Excess Loss insurance contract with Symetra, in the amount of $1,267,282 to protect the City from the cost of high-dollar claims; and approve the additional appropriations to cover the budget gap. Refer to Finance Committee. MOVED BY ALBERSON, SECONDED BY PÉREZ, COUNCIL CONCUR TO APPROVE THE CONSENT AGENDA AS PUBLISHED CARRIED. 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. Utilities Committee: Chair Văn presented a report recommending concurrence in the staff recommendation to authorize the Mayor and City Clerk to execute Contract Amendment No. 2 to CAG-23-451 with Cascadia Consulting Group, in the amount of $198,689.23, to continue implementing a waste reduction and recycling program for commercial customers. MOVED BY VǍN, SECONDED BY RIVERA, COUNCIL CONCUR IN THE COMMITTEE RECOMMENDATION. CARRIED. AGENDA ITEM #6. a) November 3, 2025 REGULAR COUNCIL MEETING MINUTES LEGISLATION Ordinances for second and final reading: a) Ordinance No. 6170: An ordinance of the City of Renton, Washington, establishing the property tax levy for the year 2026 for general city operational purposes in the amount of $26,770,023, providing for severability, and establishing an effective date. MOVED BY PÉREZ, SECONDED BY O'HALLORAN, COUNCIL ADOPT THE ORDINANCE AS READ. ROLL CALL: ALL AYES. CARRIED. b) Ordinance No. 6171: An ordinance of the City of Renton, Washington, authorizing a one percent (1%) increase in the property tax to be levied for the year 2026, plus increases attributable to new construction and prior year refunds, providing for severability, and establishing an effective date. MOVED BY PÉREZ, SECONDED BY O'HALLORAN, COUNCIL ADOPT THE ORDINANCE AS READ. ROLL CALL: ALL AYES. CARRIED. c) Ordinance No. 6172: An ordinance of the City of Renton, Washington, amending the City of Renton fiscal years 2025/2026 biennial budget as adopted by Ordinance No. 6147 and amended by Ordinance Nos. 6156, 6158 and 6163, by increasing the budgeted revenues and expenditures by $64,410,665 and $76,520,979 respectively, authorizing position changes, amending the 2025 salary table, and adopting the 2026 salary table; authorizing separation pay for eliminated positions; providing for severability; and establishing an effective date. MOVED BY PÉREZ, SECONDED BY O'HALLORAN, COUNCIL ADOPT THE ORDINANCE AS READ. ** Ayes: Alberson, Pérez, Prince, McIrvin, O’Halloran. Nayes: Vǎn, Rivera **MOTION CARRIED. MOVED BY RIVERA, SECONDED BY VǍN, COUNCIL AMEND THE ORDINANCE TO REMOVE THE ELIMINATION OF THE ELECTRONIC HOME MONITORING PROGRAM FROM THE BUDGET AMENDMENT UNTIL ADDITIONAL FEEDBACK FROM THE COMMUNITY IS RECEIVED. * Ayes: Vǎn, Rivera, McIrvin Nayes: Alberson, Pérez, Prince, O’Halloran *MOTION DEFEATED. NEW BUSINESS (Includes Council Committee agenda topics; visit rentonwa.gov/cityclerk for more information.) AGENDA ITEM #6. a) November 3, 2025 REGULAR COUNCIL MEETING MINUTES ADJOURNMENT MOVED BY PRINCE, SECONDED BY ALBERSON, COUNCIL ADJOURN. CARRIED. TIME: 7:36 PM Jason A. Seth, MMC, City Clerk Jason Seth, Recorder 03 Nov 2025 AGENDA ITEM #6. a) Council Committee Meeting Calendar November 3, 2025 November 10, 2025 Monday 4:30 p.m. * Community Services Committee, Chair O’Halloran Location: Council Conference Room/Videoconference 1. Human Services Update 2. Emerging Issues in Parks & Recreation 5:15 p.m. * Finance Committee, Chair Pérez Location: Council Conference Room/Videoconference 1. Renewal of Stop Loss Coverage for 2026 2. Vouchers 3. Emerging Issues in Finance 6:00 p.m. * Planning & Development Committee, Chair Prince Location: Council Conference Room/Videoconference 1. Parks, Recreation, and Open Space (PROS) Plan Briefing 2. Critical Areas Ordinance 3. Emerging Issues in CED CANCELED * Committee of the Whole, Chair Alberson 7:00 p.m. Council Meeting Location: Council Chambers/Videoconference * revised 11/06/25 AGENDA ITEM #6. a) AB - 3972 City Council Regular Meeting - 10 Nov 2025 SUBJECT/TITLE: Street Vacation Petition: Unopened Right-of-way near 158th Ave SE and NE 128th St; Petitioner: Renton Regional Fire Authority; VAC-25- 001 RECOMMENDED ACTION: Council Concur; Set Public Hearing on XX/XX/XXXX DEPARTMENT: City Clerk STAFF CONTACT: Jason Seth, City Clerk EXT.: 6502 FISCAL IMPACT SUMMARY: N/A SUMMARY OF ACTION: The Renton Regional Fire Authority submitted a petition to vacate a unopened right-of-way, east of 158th Ave SE and south of NE 128th St, bisecting King County Parcel No. 366450008 and between Parcel Nos. 3664500330 and 3664500007 on November 6, 2024, and the filing fee of $560 was paid on October 6, 2025. The Community and Economic Development Department verified the petition as complete on October 23, 2025. This request is to adopt a resolution setting the mandatory public hearing to consider the street vacation petition. After the hearing Council has the following options:  Accept the petition and direct staff to have the petitioner order an appraisal of the affected property.  Reject the petition. If the petition is accepted, staff will submit another agenda bill for Council's review and potential approval of the appraisal once received from the petitioner. EXHIBITS: A. Issue Paper B. Petition C. CED Validation Memo D. Resolution Setting Public Hearing STAFF RECOMMENDATION: Set a public hearing on December 1, 2025, to consider the matter of the Street Vacation Petition (VAC-25-001) submitted by the Renton Regional Fire Authority for the vacation of unopened right-of-way located east of 158th Ave SE and south of NE 128th St. AGENDA ITEM #6. b) DATE:November 10, 2025 TO:James Alberson, Jr., Council President Members of Renton City Council VIA:Armondo Pavone, Mayor FROM:Gina Estep, CED Administrator STAFF CONTACT:Amanda Free, Economic Development Director SUBJECT:Resolution Setting Public Hearing regarding Petition for Street Vacation: Unopened Right-of-Way, East of 158th Ave SE / South of NE 128th St, Bisecting King County Parcel No. 366450008 and Between Parcel Nos. 3664500330 and 366450007 Petitioner: Renton Regional Fire Authority VAC-25-001 ISSUE: Should Council set a public hearing to consider a petition for vacation of the unopened right-of-way, east of 158th Ave SE and south of NE 128th St, bisecting King County Parcel No. 366450008 and between Parcel Nos. 3664500330 and 366450007? RECOMMENDATION: Pass the resolution setting a public hearing on December 1, 2025 to consider the petition for vacation. BACKGROUND SUMMARY: Renton Regional Fire Authority filed a petition with the City Clerk petitioning for the vacation of the above-mentioned unopened right-of-way. CONCLUSION: Pass the resolution setting a public hearing on December 1, 2025 to consider the right- of-way vacation. AGENDA ITEM #6. b) AGENDA ITEM #6. b) AGENDA ITEM #6. b) EXHIBIT A ALLEY VACATION THAT PORTION OF THE 16.00 FOOT WIDE ALLEY LYING BETWEEN LOTS 6, 7, 8, AND 9, BLOCK 1, AND THE EAST 228 FEET OF THE WEST 234 FEET OF LOT 1, BLOCK 1, ALL IN JANETT'S RENTON BOULEVARD TRACTS, ACCORDING TO THE PLAT THEREOF RECORDED IN VOLUME 17 OF PLATS, PAGE 60, RECORDS OF KING COUNTY, WASHINGTON. SITUATE IN THE NW QUARTER OF THE NE QUARTER OF SECTION 14, TOWNSHIP 23 NORTH, RANGE 05 EAST, W.M., KING COUNTY, WASHINGTON. AGENDA ITEM #6. b) SE 128TH ST 1 6 0 T H A V E S E 1 5 8 T H A V E S E LINE TABLE LINE #LENGTH DIRECTION N 5804 Road 90, Suite H, Pasco, WA 99301 509.380.5883 TEL 509.380.5885 FAX EXHIBIT "B" "ALLEY VACATION" AGENDA ITEM #6. b) 6211 Roosevelt Way Northeast | Seattle, WA 98115 | 206 522 3830 | www.tca-inc.com EXHIBIT C - PUBLIC BENEFIT Renton Regional Fire Authority intends to develop parcels 3664500008, 3664500330, 3664500007 and 3664500009 for their new Fire Station 16 and Maintenance Building which will improve emergency services to the City of Renton. As part of the development, Renton Regional Fire Authority intends to vacate a portion of the existing alley which bisects the parcels noted above. The existing alley runs east/west from 158th Avenue and terminates at parcel 3664500320 – Lord of Life Lutheran Church. The existing alley is currently unused by Lord of Life Lutheran Church and vacation of the alley will not impact access to their site which is accessed directly from 160th Avenue Southeast. Access to the newly developed Regional Fire Authority site will occur via a new driveway located on parcel 3664500009. Once the project is completed, including the proposed alley vacation, the site can be fully fenced and secured, thus enhancing public safety by preventing unauthorized access through the middle of the site to both the newly developed Renton Regional Fire Authority facilities and the existing Lord of Life Lutheran Church. This is critical for a fire station and maintenance building due to the millions of public dollars invested in apparatus stored at the facilities. This vacation is important for responder safety and security, since the unauthorized use of the site has already been encountered in the past. The unified site additionally allows for an appropriate amount of code conforming impervious surface for natural site infiltration and provides for safe access to accommodate standard drive-through fire station bays which reduces accident risk. AGENDA ITEM #6. b) DATE: October 22, 2025 TO: Jason Seth, City Clerk FROM: Stephanie Rary, Property Services Specialist SUBJECT: Petition for Street Vacation: Unopened Right-of-Way, East of 158th Ave SE / South of NE 128th St, Bisecting King County Parcel No. 366450008 and Between Parcel Nos. 3664500330 and 366450007 Petitioner: Renton Regional Fire Authority VAC-25-001 We have received and reviewed the above-referenced petition and find it valid. • More than two-thirds of the abutting property owners have signed the petition. 100% of the lineal frontage is represented by the entity that has signed the petition. • The petitioner’s legal description and map were provided. City staff will provide a map and legal description to be used for the recorded document. • The petitioner’s explanation of public benefit was provided and will be used in the public hearing. Please request that the City Council pass a resolution which fixes a time for a public hearing, pursuant to Section 9-14-3 of the RMC. Finally, please add the following Department File Number to your indexing information: PRM-25-0076. AGENDA ITEM #6. b) 1 CITY OF RENTON, WASHINGTON RESOLUTION NO. _______ A RESOLUTION OF THE CITY OF RENTON, WASHINGTON, SETTING A PUBLIC HEARING DATE REGARDING VACATION OF THE UNOPENED RIGHT-OF-WAY, EAST OF 158TH AVE SE AND SOUTH OF NE 128TH ST, BISECTING KING COUNTY PARCEL NO. 366450008 AND BETWEEN PARCEL NOS. 3664500330 AND 366450007, ALSO REFERRED AS RENTON REGIONAL FIRE AUTHORITY STREET VACATION PETITION, VAC-25-001. WHEREAS, a petition was filed with the City Clerk pursuant to the requirements of chapter 35.79 RCW and Renton Municipal Code 9-14-2, petitioning for the vacation of the unopened right-of-way, east of 158th Ave SE and south of NE 128th St, bisecting King County Parcel No. 366450008 and between Parcel Nos. 3664500330 and 366450007, as hereinafter more particularly described, and the petition was signed by the owners of more than two-thirds (2/3) of the property abutting upon that portion of the right-of-way sought to be vacated, and same being described in Exhibit A, and depicted in Exhibit B, attached hereto and made a part hereof as if fully set forth herein; NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF RENTON, WASHINGTON, DO RESOLVE AS FOLLOWS: SECTION I. That the 1st day of December, 2025, at the hour of 7:00 p.m., is hereby fixed as the date and time for a public hearing to consider the above-mentioned petition for vacating the right-of-way; which hearing is not more than sixty (60) days nor less than twenty (20) days from the date of passage of this resolution. SECTION II. The City Clerk is hereby authorized and directed to give notice of the time and date of the public hearing as provided in RMC 9-14-3.A, including instructions on accessing the AGENDA ITEM #6. b) RESOLUTION NO. ________ 2 hearing via Zoom, if applicable, and/or providing comment, and any and/or all persons interested therein or objecting to said vacation may then appear and be heard, or they may file their written objections with the City Clerk at or prior to the time of public hearing on the vacation. SECTION III. After the close of the public hearing, the City Council shall determine whether the vacation of the right-of-way should be granted. If the City Council determines that the right- of-way should be vacated, the City reserves the right to retain an easement for public utilities and related purposes. SECTION IV. If the City Council determines that the right-of-way should be vacated, at a future date to be determined, the City Council shall determine the classification of the right-of- way to be vacated and, in accordance with the discretion provided in RCW 35.79.030, the amount of compensation, if any, to be paid by the petitioner-owner(s) to the City for such vacation. PASSED BY THE CITY COUNCIL this day of , 2025. ______________________________ Jason A. Seth, City Clerk APPROVED BY THE MAYOR this day of , 2025. Armondo Pavone, Mayor Approved as to form: Shane Moloney, City Attorney RES-EX:25RES026:10/31/2025 AGENDA ITEM #6. b) EXHIBIT A ALLEY VACATION THAT PORTION OF THE 16.00 FOOT WIDE ALLEY LYING BETWEEN LOTS 6, 7, 8, AND 9, BLOCK 1, AND THE EAST 228 FEET OF THE WEST 234 FEET OF LOT 1, BLOCK 1, ALL IN JANETT'S RENTON BOULEVARD TRACTS, ACCORDING TO THE PLAT THEREOF RECORDED IN VOLUME 17 OF PLATS, PAGE 60, RECORDS OF KING COUNTY, WASHINGTON. SITUATE IN THE NW QUARTER OF THE NE QUARTER OF SECTION 14, TOWNSHIP 23 NORTH, RANGE 05 EAST, W.M., KING COUNTY, WASHINGTON. AGENDA ITEM #6. b) AGENDA ITEM #6. b) AB - 3971 City Council Regular Meeting - 10 Nov 2025 SUBJECT/TITLE: Threat of Condemnation – Stacey Holdings LLC; King County Parcels 3023059096, 3023059098, 3053059099, and 3023059091 RECOMMENDED ACTION: Refer to Finance Committee DEPARTMENT: Community & Economic Development Department STAFF CONTACT: Amanda Free, Economic Development Director EXT.: 7369 FISCAL IMPACT SUMMARY: No additional funds requested for this action - purchase request was approved by Council on June 23, 2025 SUMMARY OF ACTION: The proposed acquisition parcels, King County parcels 3023059096, 3023059098, 3053029099, and 3023059091, will provide opportunities for a Parks Maintenance Shop and future uses of the vacant land located on East Valley Road. The existing improvements include an office building, a shop building, paved parking and drive, security fences, and outside storage locations, which will be repurposed for the relocation of a Parks Maintenance Shop. The City has notified the Owner of the intent to acquire the Real Property and to the extent necessary, to exercise its power of eminent domain. The City and Owner are negotiating an agreement under the imminent threat of eminent domain. If an agreement is met as to terms, the city will waive its right to eminent domain. EXHIBITS: 25ORD025 Authorizing Eminent Domain Acquisition (Compton Lumber site) STAFF RECOMMENDATION: Staff recommends approval to authorize the acquisition of King County Parcels 3023059096, 3023059098, 3023059099, and 3023059091, including through the use of eminent domain and initiation of condemnation action if necessary. AGENDA ITEM #6. c) 1 CITY OF RENTON, WASHINGTON ORDINANCE NO. ________ AN ORDINANCE OF THE CITY OF RENTON, WASHINGTON, PROVIDING FOR THE ACQUISITION OF REAL PROPERTY LOCATED IN RENTON, WASHINGTON, TAX PARCEL NUMBER 3023059096, 3023059098, 3023059099 and 3023059091, INCLUDING THROUGH THE EXERCISE OF EMINENT DOMAIN FOR A CITY MAINTENANCE FACILITY AND RESOURCE CENTER; PROVIDING FOR SEVERABILITY; AND ESTABLISHING AN EFFECTIVE DATE. WHEREAS, the City of Renton (the “City”) is a non-charter optional municipal code city as provided in Title 35A RCW, incorporated under the laws of the State of Washington, and authorized to acquire title to real property for public purposes pursuant to chapter 8.12 RCW; and WHEREAS, the City plans to construct and operate a City maintenance facility and resource center in Renton, Washington (the “Project”); and WHEREAS, the City determined that the acquisition of the parcel, fully described in Exhibit A attached hereto, and known as King County Tax Parcel No. 3023059096, 3023059098, 3023059099 and 3023059091 ("Real Property”), is necessary to complete the Project; and WHEREAS, Stacey Holdings LLC (“Owner”), a Washington limited liability company (UBI 604 261 096) acquired title to the Real Property by statutory warranty deed recorded October 25, 2023 in Official Records under Recording No. 20231025000498; and WHEREAS, the City notified Owner of its intent to acquire the Real Property and to the extent necessary, to exercise its power of eminent domain with respect to the City’s desire to acquire the Real Property; and AGENDA ITEM #6. c) ORDINANCE NO. ________ 2 WHEREAS, on June 23, 2025, the City approved the acquisition of the Real Property from Owner and subsequent to such approval, the City and Owner entered into a purchase agreement (“Purchase and Sale Agreement”) relating to the purchase and sale of the Real Property; and WHEREAS, the Owner has now defaulted under the Purchase Agreement; and WHEREAS, the City and Owner continue to negotiate the purchase and sale of the Real Property by negotiating an amendment to the Purchase and Sale Agreement, provided, however, the City desires to authorize the acquisition of the Real Property should those negotiations fail; and WHEREAS, it is anticipated that Owner, under the terms of an amendment to the Purchase and Sale Agreement, will waive its right to require the City to comply with the acquisition procedures under RCW 8.26.180; and WHEREAS, it is anticipated that Owner, under the terms of an amendment to the Purchase and Sale Agreement, will waive its right to notice of final action under RCW 8.25.290; and WHEREAS, it is anticipated that Owner, under the terms of an amendment to the Purchase and Sale Agreement, will waive its right to adjudication of the issue of public use and necessity; and WHEREAS, it is anticipated that Owner, under the terms of an amendment to the Purchase and Sale Agreement, will affirm that no individual or business occupies the Real Property being acquired and therefore no individual or business will be displaced by the City’s Project (as defined by chapter 8.26 RCW); AGENDA ITEM #6. c) ORDINANCE NO. ________ 3 NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF RENTON, WASHINGTON DO ORDAIN AS FOLLOWS: SECTION I. The recitals set forth above are hereby adopted and incorporated herein as if set forth in full. SECTION II. The City Council of the City of Renton finds and declares that: i) the Project is a public use; ii) the acquisition of the Real Property legally described in Exhibit A is necessary for the completion of the Project; and iii) the acquisition of the Real Property and the construction of the Project are in the best interests of the citizens residing within the City of Renton. SECTION III. The City Council authorizes the acquisition of the Real Property, including through the use of eminent domain and initiation of a condemnation action if necessary, subject to the making or paying of just compensation to the owners thereof in the manner provided by law. SECTION IV. Nothing in this Ordinance limits the City in its identification and acquisition of property and property rights necessary for the Project. The City reserves the right to acquire additional or different properties or property rights as needed for the Project. SECTION V. The Mayor, by and through the Mayor’s designees, is authorized and directed to complete the purchase of the Real Property under imminent threat of eminent domain, and, if needed, to prosecute actions and proceedings in the manner provided by law to condemn, take, damage and appropriate the Real Property to carry out the provisions of this Ordinance. SECTION VI. The compensation to be paid to Owner of the Real Property acquired for the Project shall be paid from the City's general funds or from such other monies that the City may have available or attain for the acquisition. AGENDA ITEM #6. c) ORDINANCE NO. ________ 4 SECTION VII. If any section, subsection, sentence, clause, phrase or word of this Ordinance should be held to be invalid or unconstitutional by a court of competent jurisdiction, such invalidity or unconstitutionality thereof shall not affect the constitutionality of any other section, subsection, sentence, clause, phrase or word of this Ordinance. SECTION VIII. This ordinance shall be in full force and effect five (5) days after publication of a summary of this ordinance in the City's official newspaper. The summary shall consist of this ordinance's title. PASSED BY THE CITY COUNCIL the day of , 2025. ______________________________ Jason A. Seth, City Clerk APPROVED BY THE MAYOR this day of , 2025. ______________________________ Armondo Pavone, Mayor Approved as to form: Shane Moloney, City Attorney Date of Publication: ORD-CED: 25ORD025: 11.3.2025 AGENDA ITEM #6. c) ORDINANCE NO. ________ 5 EXHIBIT A Property Legal Description PARCEL A: 302305-9096 THE NORTH 200 FEET OF THAT PORTION OF THE SOUTHWEST QUARTER OF THE NORTHEAST QUARTER OF SECTION 30, TOWNSHIP 23 NORTH, RANGE 5 EAST, W.M., IN KING COUNTY, WASHINGTON, LYING WEST OF PRIMARY STATE HIGHWAY NO. 5 AS ESTABLISHED BY DEED RECORDED UNDER RECORDING NO. 5346369; EXCEPT THE WEST 30 FEET THEREOF CONVEYED TO THE STATE OF WASHINGTON FOR ROAD PURPOSES BY DEED RECORDED UNDER RECORDING NO. 1079782. PARCEL B: 302305-9098 THE SOUTH 230 FEET OF THE NORTH 430 FEET OF THAT PORTION OF THE NORTH HALF OF THE SOUTHWEST QUARTER OF THE NORTHEAST QUARTER OF SECTION 30, TOWNSHIP 23 NORTH, RANGE 5 EAST, W.M., IN KING COUNTY, WASHINGTON, LYING WEST OF PRIMARY STATE HIGHWAY NO. 5 AS ESTABLISHED BY DEED RECORDED UNDER RECORDING NO. 5346369; EXCEPT THE WEST 30 FEET THEREOF CONVEYED TO THE STATE OF WASHINGTON FOR ROAD PURPOSES BY DEED RECORDED UNDER RECORDING NO. 1079782. PARCEL C: 302305-9099 THE NORTH HALF OF THE SOUTHWEST QUARTER OF THE NORTHEAST QUARTER OF SECTION 30, TOWNSHIP 23 NORTH, RANGE 5 EAST, W.M., IN KING COUNTY, WASHINGTON, LYING WEST OF PRIMARY STATE HIGHWAY NO. 5 AS ESTABLISHED BY DEED RECORDED UNDER RECORDING NO. 5346369; EXCEPT THE WEST 30 FEET THEREOF CONVEYED TO THE STATE OF WASHINGTON FOR ROAD PURPOSES BY DEED RECORDED UNDER RECORDING NO. 1079782; AND EXCEPT THE NORTH 430 FEET THEREOF; AND EXCEPT THE EAST 167 FEET OF THE WEST 197 FEET OF THE SOUTH 108 FEET OF SAID NORTH HALF OF THE SOUTHWEST QUARTER OF THE NORTHEAST QUARTER OF SAID SECTION. PARCEL D: 302305-9091 THE EAST 167 FEET OF THE WEST 197 FEET OF THE SOUTH 108 FEET OF THE NORTH HALF OF THE SOUTHWEST QUARTER OF THE NORTHEAST QUARTER OF SECTION 30, TOWNSHIP 23 NORTH, RANGE 5 EAST, W.M., IN KING COUNTY, WASHINGTON. AGENDA ITEM #6. c) AB - 3962 City Council Regular Meeting - 10 Nov 2025 SUBJECT/TITLE: Utility Bill Leak Adjustment Request for Trevi LLC RECOMMENDED ACTION: Refer to Finance Committee DEPARTMENT: Finance Department STAFF CONTACT: Victoria Appleberry, Utility Accounts Supervisor EXT.: 6921 FISCAL IMPACT SUMMARY: This leak adjustment request for $23,892.10 is broken down as follows: Water: $3,193.37 Sewer: $6,798.20 Metro: $13,900.53 TOTAL: $23,892.10 SUMMARY OF ACTION: In accordance with Renton Municipal Code (RMC) 8-4-46 and 8-5-23, the city will grant a billing adjustment of up to a maximum of two (2) regular meter reading cycles during the billing period when a water or wastewater leak has occurred on the customer's side of the water meter that are located on the service line only. Water may be adjusted by 50% of leaked consumption; sewer may be adjusted by 100% of all leaked water that did not enter the sanitary sewer system. The finance department received a formal leak adjustment request from Trevi LLC., a multi-family property, for a leak that occurred at the service address 333 Vuemont PL NE. The water leak was located at the main service line from the meter to the foundation of the building in the parking lot. The leak was repaired on July 9th, 2025. The property owner has met the requirements outlined in the code, including submitting proof of repair, to adequately qualify for the leak adjustment for water and sewer charges. June 2025 July 2025 Total Water $2,361.56 $831.81 $3,193.37 Sewer $5,027.40 $1,770.80 $6,798.20 Metro $10,279.71 $3,620.82 $13,900.53 Total $17,668.67 $6,223.43 $23,892.10 EXHIBITS: A. Issue Paper STAFF RECOMMENDATION: Approve the adjustment to customer account 51426-000 for a total of $23,892.10 for excess water usage caused by a qualified water line leak in accordance with RMC 8-4-46 and 8-5-23. AGENDA ITEM #6. d) DATE:November 3, 2025 TO:James Alberson, Jr., Council President Members of Renton City Council VIA:Armondo Pavone, Mayor FROM:Kari Roller, Administrator STAFF CONTACT:Victoria Appleberry, Utility Accounts Supervisor SUBJECT:Utility Bill Leak Adjustment Request Utility Account: 51426-000 Owner: Trevi LLC ISSUE Should City Council grant the request for a reduction of increased city water, sewer, and King County metro charges resulting from a water leak at the service address 333 Vuemont PL NE. BACKGROUND In accordance with Renton Municipal Code (RMC) 8-4-46 and 8-5-23, the city will grant a billing adjustment of up to a maximum of two (2) regular meter reading cycles during the billing period when a water or wastewater leak has occurred on the customer's side of the water meter that are located on the service line only. Water may be adjusted by 50% of leaked consumption; sewer may be adjusted by 100% of all leaked water that did not enter the sanitary sewer system. The finance department received a formal leak adjustment request from Trevi LLC., a multi-family property, for a leak that occurred at the service address 333 Vuemont PL NE. The water leak was located at the main service line from the meter to the foundation of the building in the parking lot. The leak was repaired on July 9th, 2025. The property owner has met the requirements outlined in the code, including submitting proof of repair, to adequately qualify for the leak adjustment for water and sewer charges. June 2025 July 2025 Total Water $2,361.56 $831.81 $3,193.37 Sewer $5,027.40 $1,770.80 $6,798.20 Metro $10,279.71 $3,620.82 $13,900.53 Total $17,668.67 $6,223.43 $23,892.10 AGENDA ITEM #6. d) James Alberson, Jr., Council President Members of Renton City Council Page 2 of 2 November 3, 2025 RECOMMENDATION Staff recommends an adjustment to this customer’s account for a total of $23,892.10 in excess water usage caused by a qualified water line leak in accordance with RMC 8-4- 46 and 8-5-23. AGENDA ITEM #6. d) AB - 3973 City Council Regular Meeting - 10 Nov 2025 SUBJECT/TITLE: Addendum 12-25 to Lag-87-001 with Boeing Employees Flying Association Inc. RECOMMENDED ACTION: Refer to Transportation (Aviation) Committee DEPARTMENT: Public Works Airport STAFF CONTACT: Joey Root, Business Coordinator EXT.: x7478 FISCAL IMPACT SUMMARY: The City will receive annual lease revenue of $191,716.80 plus leasehold excise tax, which is an increase of $60,419.84, from the previous lease rate of $131,296.96 annually. SUMMARY OF ACTION: The City and Boeing Employees Flying Association Inc.entered into a lease agreement LAG-87-001 on January 1, 1987, for the ground lease of 840 W Perimeter Road at the Renton Airport. Parcel 840 is 95,493 square feet; 6,736 of which is a joint used access driveway at 50% ground rate. Boeing Employees Flying Association Inc.owns the two buildings on the parcel which are used for office space, aircraft storage and maintenance. The agreement also includes parcel 846, a 24,067 square foot parcel, used for aircraft storage. Arbitration established a rental rate of $1.13 per square foot for the period of January 1, 2020, through December 31, 2022. On March 14, 2025, a new land rental rate was established to its fair market value of $1.65 per square foot per year. This agreement accounts for a lease rate increase retroactive to January 1, 2026, if necessary, and continuing until December 31, 2028. Additionally, Section 10, Insurance, is updated to reflect required insurance coverage, and Section 22, Notices, is updated to reflect Lessor’s new address. EXHIBITS: A. Addendum 12-25 to LAG-87-001 with Boeing Employees Flying Association Inc. B. Map View of 840 and 846 parcel STAFF RECOMMENDATION: Authorize the Mayor and City Clerk to execute Addendum 12-25 to LAG-87-001 with Boeing Employees Flying Association Inc., which increases the annual lease revenue to $191,716.80 plus leasehold excise tax, and includes updated required insurance coverage, and Lessor’s current address. AGENDA ITEM #6. e) LEASE,,,,,,, LAG-87— 001Addendum 12-25 ADDENDUM TO AGREEMENT (City of Renton to Boeing Employees Flying Association Inc.) THIS ADDENDUMto Lease Agreement LAG-87—001,is effective as of the date of execution by the City of Renton,as indicated on the last page of this addendum. RECITALS: WHEREAS,Boeing Employees Flying Association Inc.(hereinafter ”Lessee”)has a Lease Agreement with the City of Renton (hereinafter ”Lessor"),known to Lessor and Lessee (collectively,the "Parties")as LAG-87-001,executed on January 1,1987 and subsequently amended by and through its addendums,Addendum 01-88,Addendum 02-92,Addendum 03- 98,Addendum 04-98,Addendum 05-01,Addendum 06-05,Addendum 07-10,Addendum 08-10, Addendum 09-15,Addendum 10-18 and Addendum 11-21 (hereinafter,collectively,the ”Lease");and WHEREAS,on January 1,2020,the land rental rate was adjusted by arbitration,to a rate of $1.13 per square foot per year for the 112,824 square feet of leased land,resulting in an annual rental amount of $127,491.12 (112,824 x $1.13),and continuing until December 31, 2022;and WHEREAS,on January 1,2020,the land rental rate was adjusted by arbitration,to a rate of $0.565 per square foot per year for the 6,736 square feet ofjoint use access driveway area rate,resulting in an annual rental amount of $3,805.84 (6,736 x $0.565),and continuing until December 31,2022;and WHEREAS,on March 14,2025,the Lessor conducted an independent market appraisal of all Airport leased areas to determine the fair market value (hereinafter ”market appraisal”). The market appraisal determined the fair market ground lease rate to be $1.65 per square foot per year;and WHEREAS,Lessor intends to use the most recent market appraisal study to adjust the annual land rental rate to its fair market value;and WHEREAS,pursuant to the Lease,in a letter dated October 7,2025,Lessee was notified that the rental rate would be readjusted using a means other than the CPI-U;and WHEREAS,Lessor and Lessee do hereby agree to amend paragraph 2 of the Lease to provide an annual land rent of $191,716.80 (112,824 x $1.65 +6,736 x $0.825),PLUS leasehold excise tax,for the 119,560 square feet identified in the Lease,effective January 1,2026, through December 31,2028;and WHEREAS,Lessee shall make a lump sum payment to Lessor of the back payment of rent at the new land rental rate for the period beginning on January 1,2026,upon execution of this Addendum,if necessary;and Addendum to Lease LAG-87-001 1 City of Renton to Boeing Employees Flying Association Inc. AGENDA ITEM #6. e) Personal Pro en LAG— 87-001Addendum12— 25 WHEREAS,it is necessary and desirable to amend this Lease by updating certain sections as detailed below;and WHEREAS,pursuant to Section 3.6.7 of the Airport Regulations and Minimum Standards, Lessee is required to provide insurance coverage in a manner and form acceptable to the City and its Risk Manager;and WHEREAS,pursuant to Section 5 of the Lease,the buildings and improvements become the property of the Lessor upon the expiration of the lease on January 1,2030;and WHEREAS,all other terms and conditions of the Lease and the addenda thereto shall remain in full force and effect; NOW,THEREFORE,IN CONSIDERATION OF THETERMS AND CONDITIONS HEREIN CONTAINED AND FOR OTHER GOOD AND VALUABLECONSIDERATION,THE RECEIPTAND SUFFICIENCYOF WHICH IS HEREBYACKNOWLEDGED,LESSORAND LESSEEAGREE TO AMEND THE LEASEAND LEASEADDENDA AS SET FORTH BELOW: WlTN ESSETH 1.Lessor and Lessee do hereby agree to amend paragraph 2 of LAG-87-001 to establish an annual land rent of $191,716.80 (112,824 x $1.65 +6,736 x $0.825),PLUS leasehold excise tax, for the 119,560 square feet identified in lease LAG—87—001,effective January 1,2026,through December 31,2028,as follows: (112,824 square feet)($1.65 per square foot per year)=$186,159.60/yr; Plus,(6,736 square feet)($0.825 per square foot per year)=$5,557.20/yr; Total:$191,716.80 ($191,716.80/12 months =$15,976.40 per month)PLUS,leasehold excise tax 2.Following the execution of this Addendum,if necessary,Lessee shall pay to Lessor a lump sum of the back payment in an amount equal to the new Minimum Monthly Rent rate for the period beginning January 1,2026,and ending with the first day of the month AFTERthis Addendum 12-25 is entered into,PLUS Leasehold Excise Tax. 3.Effective on the date of this Addendum,Section 10 of LAG—87-001is hereby amended to read as follows: 10.INSURANCE: 10a.:Lessee,at its expense,shall maintain in force during the Term a policy of special form —causes of loss or all risk property insurance on all of Lessee’s alterations,improvements,trade fixtures,furniture and other personal property in,on or about the Premises,in an amount equal to at least their full replacement cost.Any proceeds of any such policy available to Lessee shall be used by Lessee for the restoration of Lessee’s alterations,improvements and trade fixtures and the replacement of Lessee’s furniture and Addendum to Lease LAG—87-001 2 City of Renton to Boeing Employees Flying Association Inc. AGENDA ITEM #6. e) Insurance W er ofSubrugation LAG— 87-001Addendum12-25 other personal property.Any portion of such proceeds not used for such restoration shall belong to Lessee.It is agreed that Lessor shall not be held liable in any manner for,or on account of,any loss or damage to personal property of the Lessee,Lessee's invitees or other persons,which may be sustained by fire or water or other peril,or for the loss of any articles by burglary,theft or any other cause from or upon the Premises.It is acknowledged that Lessor does not cover any of the personal property of Lessee,Lessee's invitees or other persons upon the Premises through its insurance.Lessee,its invitees and other persons upon the Premises are solely responsible to obtain suitable personal property insurance. 10b.Liability :Lessee,at its expense,shall maintain in force during the Term the following types of insurance (or equivalents):a policy of commercial general liability insurance (including premises liability),with the following minimum limits:$1,000,000 per occurrence,$2,000,000 annual aggregate.Lessor shall be named as an additional insured on Lessee’s liability insurance solely with respect to the operations of the named insured (i.e., Lessee)and that coverage being primary and non—contributory with any other policy(ies) carried by,or available to,the Lessor.The Lessee shall provide the Lessor with written notice of any policy cancellation,within two business days of their receipt of such notice. 10c.Insurance Policies:Insurance required hereunder shall be written by a company or companies acceptable to Lessor.Lessor reserves the right to establish and,from time-to— time,to increase minimum insurance coverage amounts.Insurance required herein shall provide coverage on an occurrence basis,not a claims—madebasis,except as may be authorized in writing by the Parties.Notice of increased minimum insurance coverage amounts shall be sent to the Lessee at least forty—five(45)days prior to the annual renewal date of the Lessee’s insurance.Prior to possession the Lessee shall deliver to Lessor documents,in a form acceptable to Lessor,evidencing the existence and amounts of such insurance.Lessee shall, prior to the expiration of such policies,furnish Lessor with evidence of renewal of such insurance,in a form acceptable to Lessor.Lessee shall not do or permit to be done anything which shall invalidate the insurance policies referred to above.Lessee shall forthwith,upon Lessor’s demand,reimburse Lessor for any additional premiums for insurance carried by Lessor attributable to any act or omission or operation of Lessee causing such increase in the cost of insurance.If Lessee shall fail to procure and maintain such insurance,then Lessor may,but shall not be required to,procure and maintain the same,and Lessee shall promptly reimburse Lessor for the premiums and other costs paid or incurred by Lessor to procure and maintain such insurance.Failure on the part ofthe Lessee to maintain the insurance as required shall constitute a material breach of the Lease,Upon which the Lessor may,after giving five business days notice to the Lessee to correct the breach,terminate the Lease or,at its discretion, procure or renew such insurance and pay any and all premiums in connection therewith,with any sums so expended to be repaid to the Lessor on demand. 10d.:Lessee and Lessor each waives any and all rights of recovery against the other,or against the officers,employees,agents and representatives of the other,for loss of or damage to such waiving Party or its property or the property of others under its control,where such loss or damage is insured against under any insurance policy in Addendum to Lease LAG—87-001 3 City of Renton to Boeing Employees Flying Association Inc. AGENDA ITEM #6. e) LAG-87— 001Addendum 12-25 force at the time of such loss or damage.Lessee shall,upon obtaining the policies of insurance required hereunder,give notice to the insurance carriers that the foregoing mutual waiver of subrogation is contained in this Lease. 4.Effective on the date of this Addendum,Paragraph 22 of LAG-87—001is hereby amended to read as follows: 22.NOTICES:All notices or requests required or permitted under this Lease shall be in writing;shall be personally delivered,delivered by a reputable express delivery service such as Federal Express or DHL,delivered by email,or sent by certified mail,return receipt requested,postage prepaid.Any notice given by hand,by courier,or by email shall be deemed given when delivered and any notice sent by mail shall be deemed to have been received when three days have elapsed from the time such notice was deposited in the U.S.mail.All notices or requests to Lessor shall be sent to Lessor at Lessor’s address set forth below and all notices or requests to Lessee shall be sent to Lessee at Lessee’s address set forth below: Lessor’s Address:City Clerk Attn:Airport Director 1055 South Grady Way Renton,Washington 98057 cityclerk@rentonwa.gov and rentonairport@rentonwa.gov Lessee’s Address Boeing Employees Flying Association Inc. attn:President 840 W Perimeter Road Renton,WA 98057 befapresident@gmail.com Either Party may change the address to which notices shall be sent by written notice to the other Party. 5.All other terms and conditions of the original Lease Agreement and Addenda thereto, insofar as they are not inconsistent herewith,shall remain in full force and effect. Addendum to Lease LAG-87-001 4 City of Renton to Boeing Employees Flying Association Inc. AGENDA ITEM #6. e) an LESSEE: BOEING EMPLOYEESFLYING ASSOCIATIONINC. a Washington corporation Bob Moore President Addendum to Lease LAG-87-001 City of Renton to Boeing Employees Flying Association Inc. LAG-87-001 Addendum 12— 25 LESSOR CITYOF RENTON a Washington municipal corporation Armondo Pavone Mayor Date Attest: Jason A.Seth City Clerk Approved as to legal form: City Attorney AGENDA ITEM #6. e) 40.00’I NO4'49’43”W PARCEL 846 24,066 sq.ft. 0.55 ACRES ‘62“113“:L,If.LO$_N7‘OO )E82.09 22.00'ACCESS 301-31’17’75 EASEMENT CONTAINING5,736 sq.ft. PARCEL 840 E 95,493 sq.ft.-.\.2.19 ACRES N .9006.ZZ'SOI”MHOQQOZOSM,,QZ,OL.OOS POINT OF BEGINNING «us'3.;__W PerimeterRd ~ .—2. 27 m; al _p3 Ja)a|u!1:ld M.naluuad M AGENDA ITEM #6. e) AB - 3957 City Council Regular Meeting - 10 Nov 2025 SUBJECT/TITLE: 25ORD007 Extending Waiver of Garage Fees through 2026 City Center Parking Garage RECOMMENDED ACTION: Refer to Finance Committee DEPARTMENT: Public Works Facilities Division STAFF CONTACT: Jeff Minisci , Facilities Director EXT.: 425-430-6643 FISCAL IMPACT SUMMARY: Allowing patrons to utilize the garage without charge (for free) is important to ensuring that it remains an available option that drivers will utilize either for multi-hour parking for longer downtown visits, or for quicker visits and times when on-street parking options are more limited. With construction impacts to downtown on- street parking, the availability of free parking is an important tool for promoting downtown Renton. Estimated pre-covid revenue was approximately $5,000 annually. SUMMARY OF ACTION: Facilities Division requests the Ordinance Extension toDecember 31, 2026, temporarily waives parking fees for periods of up to 10 hours at the CityCenterGarage. Although the pandemic has ended, downtown businesses remain in recovery mode and actual usage of the garage remains low, coupled with City construction in the downtown that has impacted the availability of on street parking. Providing sufficient, convenient, and free parking at the garage will assist in the recovery effort for downtown. EXHIBITS: A. Ordinance Extension STAFF RECOMMENDATION: Approve the ordinance extending the temporary waiver of parking fees for up to 10 hours at the City Center Parking Garage until December 31, 2026. AGENDA ITEM #6. f) 1 CITY OF RENTON, WASHINGTON ORDINANCE NO. _______ AN ORDINANCE OF THE CITY OF RENTON, WASHINGTON, EXTENDING THE TEMPORARY WAIVER OF PARKING FEES FOR THE CITY CENTER PARKING GARAGE ESTABLISHED BY ORDINANCE NO. 6139 FOR PERIODS OF UP TO 10 HOURS WITHIN THE CITY’S CITY CENTER PARKING GARAGE LOCATED AT 655 SOUTH 2ND STREET, PROVIDING FOR SEVERABILITY, AND ESTABLISHING AN EFFECTIVE DATE. WHEREAS, the City Center Parking Garage is an important asset for the downtown area as it provides convenient parking for persons visiting downtown for events, dining, shopping, recreation, and other business-related activities; and WHEREAS, the actual usage of the garage remains fairly low. Allowing patrons to utilize the garage without charge (for free) is important to ensuring that it remains an available option that drivers will utilize either for multi-hour parking for longer downtown visits or for quicker visits and times when on-street parking options are more limited; and WHEREAS, construction of the nearby Pavilion is set to begin in the second quarter of 2025. During construction, property and business owners have been encouraged to recommend the garage and its free parking option as an alternative place to park for customers and employees. Leaving the free parking in place during 2026 allows the streetscape improvements team to continue promoting this option during the remainder of the construction period; and WHEREAS, although the pandemic has ended, downtown businesses remain in recovery mode. Providing sufficient, convenient, and free parking at the garage will assist in the recovery effort for Downtown’s small and locally-owned businesses by encouraging more customers to visit Downtown to patronize them; and AGENDA ITEM #6. f) ORDINANCE NO. _________ 2 WHEREAS, in order to accommodate the anticipated increases in short-term parking the area zoned Center Downtown (CD) and to assist the struggling downtown business community, Ordinance No. 5997 temporary waived hourly parking fees in the City’s City Center Parking Garage located at 655 South 2nd Street for parking up to 10 hours; and WHEREAS, the City Council extended and amended Ordinance No. 5997 in Ordinance Nos. 6018, 6039, 6065, 6131, and 6139,and the City Council desires to extend the waiver of fees for an additional year; NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF RENTON, WASHINGTON, DO ORDAIN AS FOLLOWS: SECTION I. Council hereby temporarily extends the waiver of the following parking fees established in Section III of the City of Renton Fee Schedule for the following parking periods with the City Center Parking Garage:  Zero (0) to two (2) hours;  Two (2) to four (4) hours;  Four (4) to six (6) hours;  Six (6) to (10) hours to December 31, 2026. SECTION II. If any section, subsection, sentence, clause, phrase, or word of this ordinance should be held to be invalid or unconstitutional by a court of competent jurisdiction, such invalidity or unconstitutionality thereof shall not affect the constitutionality of any other section, subsection, sentence, clause, phrase, or word of this ordinance. AGENDA ITEM #6. f) ORDINANCE NO. _________ 3 SECTION III. This ordinance shall be in full force and effect five (5) days after publication of a summary of this ordinance in the City's official newspaper. The summary shall consist of this ordinance's title. PASSED BY THE CITY COUNCIL the day of , 2025. ______________________________ Jason A. Seth, City Clerk APPROVED BY THE MAYOR this day of , 2025. ______________________________ Armondo Pavone, Mayor Approved as to form: Shane Moloney, City Attorney Date of Publication: ORD-PW:25ORD007:04.10.2025 AGENDA ITEM #6. f) AB - 3961 City Council Regular Meeting - 10 Nov 2025 SUBJECT/TITLE: Change Order No. 52 to CAG-22-163 with Pivetta Brother’s Construction, Inc. for the Rainier Ave S Corridor Improvements - Phase 4 Project RECOMMENDED ACTION: Refer to Transportation (Aviation) Committee DEPARTMENT: Public Works Transportation Systems Division STAFF CONTACT: Bob Hanson, Transportation Design Manager EXT.: 7223 FISCAL IMPACT SUMMARY: The fiscal impact of Change Order No. 52 to CAG-22-163 with Pivetta Brother’s Construction Inc. is $224,018.90. The Rainier Ave S Corridor Improvement Project has a current unencumbered balance of $560,659.85. There is sufficient funding for this change order. SUMMARY OF ACTION: The Rainier Ave S - Phase 4 (S 3rd St to NW 3rd Pl) Project will extend previous corridor improvements from South 3rd Street to 1,000 feet north of Airport Way (NW 3rd Pl). Project elements include extending a southbound BAT lane from S 2nd St to S 3rd St, pedestrian improvements with street scaping, pedestrian actuated traffic signal (HAWK), transit facility upgrades, access management, and a segment of a regional pedestrian/bike path trail (Lake Washington Loop Trail). This change order addresses a discrepancy between the Contract’s provisions for driveway closures and the City's operational intent. A field directive was issued requiring phased driveway construction to maintain continuous access, limiting the impact to affected businesses. The original contract was written to allow for a single driveway closure when a parcel has multiple driveways, however many of the businesses indicated they always needed access to both driveways. This impacted the amount of work required per driveway where there was more than one driveway per parcel, as each had to be constructed in separate phases rather than in a single continuous phase. Constructing the driveways in halves where there was more than one driveway per parcel reduced the overall efficiency of the Contractor's operations, requiring additional time, mobilizations, and effort to complete a smaller scope of work twice rather than completing the full driveway entrance in a single, continuous phase. To accelerate reopening of driveways and further reduce effects to the businesses, the City required the use of 1-day high early strength concrete, which impacted the way driveway work could be completed. The rapid set time of the material limited workable finishing time, requiring increased manpower to finish the concrete. Additionally, the 1-day high early strength concrete cannot be placed using a curb machine, requiring it to be hand-formed at driveway entrances. These revised construction requirements were not anticipated in the original bid items and resulted in additional effort and cost. This Change creates new bid items to compensate the Contractor for the increased scope of AGENDA ITEM #6. g) work necessary to meet the City’s intent for uninterrupted business access and minimized public impact and provides a credit for those bid items that were affected by the change. EXHIBITS: A. Change Order No. 52 STAFF RECOMMENDATION: Authorize the Mayor and City Clerk to execute Change Order No. 52 to CAG-22-163 extending previous corridor improvements from South 3rd Street to 1,000 feet north of Airport Way (NW 3rd Pl) in the amount of $224,018.90 with Pivetta Brother’s Construction Inc. for the Rainier Ave S Corridor Improvements – Phase 4 project. AGENDA ITEM #6. g) AGENDA ITEM #6. g) Change Order No. 52 Contract Title: Rainier Ave S. Corridor Improvements – Phase 4 Contract No. CAG-22-163 Page 2 of 29 THE CONTRACT IS MODIFIED AS FOLLOWS: Description of Change: The Contractor shall construct driveway entrances, including adjoining curb and gutter, in such a manner as to keep all driveways open at all times, unless otherwise approved by the Engineer and affected property owner in writing, in accordance with Field Directive #89. The Contractor shall use 1-day high early strength concrete for driveway pavement at D23, driveway entrances, and adjoining curb and gutter, in accordance with Field Directive #95. Proposal Schedule of Prices: DELETE the following from Schedule A: A37 – Cement Conc. Pavement For Driveways, -6 CY @ $324.00 = -$1,944.00 A113 – Cement Conc. Traffic Curb & Gutter, -1,200 LF @ $42.28 = -$50,736.00 A118 – Cement Conc. Driveway Entrance, -2,170 SY @ $99.63 = -$216,197.10 ADD the following to Schedule A: 52-A219 – Phased Construction for Maintained Driveway Access, 21 EA @ $6,500.00 = $136,500.00 52-A220 – 1-Day High Early Cement Conc. Pavement For Driveways, 6 CY @ $421.00 = $2,526.00 52-A221 – 1-Day High Early Cement Conc. Traffic Curb & Gutter, 1,200 LF @ $58.00 = $69,600.00 52-A222 – 1-Day High Early Cement Conc. Driveway Entrance, 2,170 SY @ $131.00 = $284,270.00 Specification and/or Special Provision: Delete 1-07.23(1), Item 3 as follows: All driveways shall remain open except as necessary to permit curing of construction materials or for short periods of time as required for excavations. However, at least one (1) driveway per parcel shall remain open to vehicular traffic at all times unless otherwise approved by the Engineer and affected property owner in writing. If a parcel has only one driveway, then that driveway must be constructed one-half at a time to allow the passage of vehicles. The amount of time that a driveway can be closed will be limited. Business owners and/or residents shall be notified in writing at least 48 hours in advance of any planned driveway closures. Replace 1-07.23(1), Item 3 as follows: All driveways shall remain open at all times unless otherwise approved by the Engineer and affected property owner in writing. If a parcel has only one driveway, then that driveway must be constructed one-half at a time to allow the passage of vehicles. The amount of time that a AGENDA ITEM #6. g) Change Order No. 52 Contract Title: Rainier Ave S. Corridor Improvements – Phase 4 Contract No. CAG-22-163 Page 3 of 29 driveway can be closed will be limited. Business owners and/or residents shall be notified in writing at least 48 hours in advance of any planned driveway closures. ADD the following to SP 5-05: The Contractor shall use 1-day high early strength cement concrete pavement for driveways at D23. This concrete shall achieve 2500 PSI compressive strength at 24 hours so that the driveways can be quickly reopened in accordance with 5-05.3(17). ADD the following to SP 8-04: The Contractor shall use 1-day high early strength concrete for traffic curb and gutter at driveway entrances. This concrete shall achieve 2500 PSI compressive strength at 24 hours so that the driveways can be quickly reopened in accordance with 5-05.3(17). ADD the following to SP 8-06: The Contractor shall use 1-day high early strength concrete for driveway entrances. This concrete shall achieve 2500 PSI compressive strength at 24 hours so that the driveways can be quickly reopened in accordance with 5-05.3(17). Description: None. Materials: None. Measurement: ADD the following section 1-07.23(4): Measurement for "Phased Construction for Maintained Driveway Access" shall be per each of the following driveways for which the requirement of phased construction has been added: D2, D3, D4, D11, D11A, D12A, D12B, D13, D14, D17, D18, D20, D23, D25, D27, D28, D30, D33C, D36, D39, D40. This item includes all work necessary to maintain continuous driveway access in accordance with Field Directive #89, including but not limited to phased concrete placement, installation and removal of temporary access ramps, additional mobilizations, and coordination with affected property owners. ADD the following to 5-05.4: “1-Day High Early Cement Conc. Pavement For Driveways,” per cubic yard. ADD the following to 8-04.4: “1-Day High Early Cement Conc. Traffic Curb & Gutter,” per linear foot. AGENDA ITEM #6. g) Change Order No. 52 Contract Title: Rainier Ave S. Corridor Improvements – Phase 4 Contract No. CAG-22-163 Page 4 of 29 ADD the following to 8-06.4: “1-Day High Early Cement Conc. Driveway Entrance,” per square yard. Payment: ADD the following section 1-07.23(5): Payment for "Phased Construction for Maintained Driveway Access" shall be full compensation for all labor, materials, equipment, and incidentals required to complete the work as specified, including phased construction, furnishing and removing temporary access measures, and any additional work necessary to comply with access requirements. ADD the following to 5-05.5: “1-Day High Early Cement Conc. Pavement For Driveways,” cubic yard. ADD the following to 8-04.5: “1-Day High Early Cement Conc. Traffic Curb & Gutter,” linear foot. ADD the following to 8-06.5: “1-Day High Early Cement Conc. Driveway Entrance,” square yard. Plans: None. Reason for Change: This Change addresses a discrepancy between the Contract’s provisions for driveway closures and the City's operational intent. Field Directive #89 clarified this expectation, requiring phased driveway construction to maintain continuous access, limiting the impact to affected businesses and the traveling public. This impacted the amount of work required per driveway where there was more than one driveway per parcel, as each had to be constructed in separate phases rather than in a single continuous phase. Constructing the driveways in halves where there was more than one driveway per parcel reduced the overall efficiency of the Contractor's operations, requiring additional time, mobilizations, and effort to complete a smaller scope of work twice rather than completing the full driveway entrance in a single, continuous phase. To accelerate reopening of driveways and further reduce effects to the public and businesses, Field Directive #95 required the use of 1-day high early strength concrete, which impacted the way driveway work could be completed. The rapid set time of the material AGENDA ITEM #6. g) Change Order No. 52 Contract Title: Rainier Ave S. Corridor Improvements – Phase 4 Contract No. CAG-22-163 Page 5 of 29 limited workable finishing time, requiring increased manpower to finish the concrete. Additionally, the 1-day high early strength concrete cannot be placed using a curb machine, requiring it to be hand-formed at driveway entrances. These revised construction requirements were not anticipated in the original bid items and resulted in additional effort and cost. This Change creates new bid items to compensate the Contractor for the increased scope of work necessary to meet the City’s intent for uninterrupted access and minimized public impact. Equitable Adjustment: This Change Order does include an equitable adjustment per Section 1-09.4 of the 2022 WSDOT/APWA Standard Specifications. See attached. Estimated Cost: $224,018.90 Extended Overhead: $ 0.00 Force Account Time Related Damages per 1-09.6.6.d: $ 0.00 Estimated Sales Tax (if applicable): $ 0.00 Total: $224,018.90 52-A219 – Phased Construction for Maintained Driveway Access An independent estimate was prepared for the cost of phasing construction for maintained driveway access. This cost was calculated to be $6,431.04 per driveway ($135,051.90 for 21 driveways). This has been rounded to an estimated cost of $6,500.00 per driveway ($136,500.00 for 21 driveways). 52-A220 – 1-Day High Early Cement Conc. Pavement For Driveways An independent estimate was prepared for the cost of placing 1-day high early cement concrete pavement for driveways at D23. This cost was calculated to be $421.39/CY and has been rounded to an estimated cost of $421.00/CY ($2,526.00 for 6 CY.) 52-A221 – 1-Day High Early Cement Conc. Traffic Curb & Gutter An independent estimate was prepared for the cost of placing 1-day high early cement concrete for traffic curb and gutter. This cost was calculated to be $58.30 /LF and has been rounded to an estimated cost of $58.00/LF ($69,600.00 for 1,200 LF.) 52-A222 – 1-Day High Early Cement Conc. Driveway Entrance An independent estimate was prepared for the cost of placing 1-day high early cement concrete for driveway entrances. This cost was calculated to be $130.90 /SY and has been rounded to an estimated cost of $131.00/SY ($284,270.00 for 2,170 SY.) AGENDA ITEM #6. g) Change Order No. 52 Contract Title: Rainier Ave S. Corridor Improvements – Phase 4 Contract No. CAG-22-163 Page 6 of 29 Extension of Time: The Time for Completion is extended 0 Working Days. Affects DBE Work: No. Sections 1-04.4 and 1-04.5 of the 2022 WSDOT/APWA Standard Specifications shall govern this Change Order. The Work of the referenced Contract is modified to include the changes detailed herein. The payment provided for herein shall constitute the complete and final settlement for all costs of labor, equipment, materials, overhead, profit, permit fees, and all other claims that may be made by the Contractor because of this change. To be attached to Change Order: ☒ 1-Estimated Change Order Cost ☐ 2-Plans ☒ 3-Field Directive/Request for Information Response ☒ 4-Change Order Quotation ☐ 5-Project Labor List ☐ 6-Force Account Equipment Rate Request (DOT Form 422-010 EF) ☐ 7-Equitable Adjustment Determination ☐ 8-Additional Working Days Calculation AGENDA ITEM #6. g) STPUL-1615(005)By: Perteet Date: Item No. Quantity Unit Price Estimated Cost 52-A219 HOURS RATE 63.0 108.00$ 6,804.00$ 126.0 104.00$ 13,104.00$ 126.0 104.00$ 13,104.00$ 126.0 98.00$ 12,348.00$ 110.25 36.00$ 3,969.00$ 126.0 24.00$ 3,024.00$ 52,353.00$ 0.31$ 16,229.43$ 63.0 32.00$ 2,016.00$ 126.0 28.00$ 3,528.00$ 126.0 111.00$ 13,986.00$ 42.0 30.00$ 1,260.00$ 63.0 64.00$ 4,032.00$ 21.0 30.00$ 630.00$ 21.0 58.00$ 1,218.00$ 26,670.00$ 0.21$ 5,600.70$ 24 425.00$ 10,200.00$ 10,200.00$ 0.21$ 2,142.00$ 10080.0 1.25$ 12,600.00$ 12,600.00$ 0.21$ 2,646.00$ 21.0 92.50$ 1,942.50$ 21.0 92.50$ 1,942.50$ 3,885.00$ 0.31$ 1,204.35$ 21.0 32.00$ 672.00$ 672.00$ 0.21$ 141.12$ 5,902.47$ 0.12$ 708.30$ 135,051.90$ 6,431.04$ 6,500.00$ 52-A220 HOURS RATE 1.0 92.50$ 92.50$ 92.50$ 0.31$ 28.68$ 6 55.17$ 331.03$ 331.03$ 0.21$ 69.52$ 521.73$ 0.12$ 62.61$ 584.33$ 97.39$ 324.00$ 421.39$ 421.00$ CALCULATED TOTAL: CALCULATED TOTAL ADDITIONAL: Labor - Pivetta (Flagger OT Premium)Hours Labor - Wilson Concrete (Additional forming work)Hours Equipment - Pivetta (Excavator)Hours Equipment - Pivetta (Crew Truck)Hours Services Markup Cents/Dollar Services - Pivetta (Steel Sheet Rental, 12 sheets over 5 months)Hours BI Price per CY: CALCULATED TOTAL per CY Hours ESTIMATED TOTAL per EA: CALCULATED TOTAL ADDITIONAL per CY: Equipment - Wilson Concrete (Pickup Truck)Hours Equipment Markup - Wilson Concrete Cents/Dollar ESTIMATED TOTAL per CY Subcontractor Markup Cents/Dollar Labor - Wilson Concrete (Additional forming work)Hours Labor Markup - Wilson Concrete Cents/Dollar Hours Materials (1-day Concrete)CY Materials Markup Cents/Dollar Subcontractor Markup, < $25,000 Cents/Dollar Labor - Pivetta (Operator)Hours Labor - Pivetta (Operator)Hours Labor - Pivetta (Grade Checker)Hours CALCULATED TOTAL: Equipment Markup - Pivetta Cents/Dollar Materials - Pivetta (Water Barriers)EA Materials Markup Cents/Dollar Labor Markup - Wilson Concrete Cents/Dollar Labor - Wilson Concrete (Finishing 1-day mix) Contract No:CAG-22-163 Federal Aid No: Change Order Cost (Equitable Adjustment)Change Order No. 52 Project Name:Rainier Ave S Corridor Improvements - Phase 4 Contractor:Pivetta Brothers Construction, Inc. Shannon Tremper Construction Manager: 10/16/2025 1-Day High Early Cement Conc. Pavement For Driveways Description Unit Phased Construction for Maintained Driveway Access Labor - Pivetta (Foreman)Hours Independent Cost Estimate Equipment - Pivetta (Pickup Truck)Hours Equipment - Pivetta (Dump Truck)Hours Equipment - Pivetta (Plate Compactor)Hours Equipment - Pivetta (Water Truck)Hours Labor - Pivetta (25% OT Premium)Hours Labor Markup (Pivetta)Cents/Dollar Equipment - Pivetta (Breaker) Driveway Access - Estimated Change Order Cost CO #52, Page 7 of 29 AGENDA ITEM #6. g) STPUL-1615(005)By: Perteet Date: Item No. Quantity Unit Price Estimated Cost Contract No:CAG-22-163 Federal Aid No: Change Order Cost (Equitable Adjustment)Change Order No. 52 Project Name:Rainier Ave S Corridor Improvements - Phase 4 Contractor:Pivetta Brothers Construction, Inc. Shannon Tremper Construction Manager: 10/16/2025 Description Unit Phased Construction for Maintained Driveway Access Independent Cost Estimate 52-A221 HOURS RATE 48.0 92.50$ 4,440.00$ 48.0 92.50$ 4,440.00$ 8,880.00$ 0.31$ 2,752.80$ 48.0 32.00$ 1,536.00$ 1,536.00$ 0.21$ 322.56$ 55 55.17$ 3,034.48$ 3,034.48$ 0.21$ 637.24$ 17,163.07$ 0.12$ 2,059.57$ 19,222.64$ 16.02$ 42.28$ 58.30$ 58.00$ 52-A222 HOURS RATE 134.6 92.50$ 12,450.50$ 12,450.50$ 0.31$ 3,859.66$ 673 55.17$ 37,130.94$ 37,130.94$ 0.21$ 7,797.50$ 25,000.00$ 0.12$ 3,000.00$ 36,238.59$ 0.10$ 3,623.86$ 67,862.45$ 31.27$ 99.63$ 130.90$ 131.00$ A37 -6 324.00$ (1,944.00)$ A113 -1200 42.28$ (50,736.00)$ A118 -2170 99.63$ (216,197.10)$ 52-A219 21 6,500.00$ 136,500.00$ 52-A220 6 421.00$ 2,526.00$ 52-A221 1200 58.00$ 69,600.00$ 52-A222 2170 131.00$ 284,270.00$ 224,018.90$ Summary of Contractors Quotes: Item Quote Location SL057 SL059 Total Quoted Added Cost: ESTIMATED TOTAL per SY $203,752.28 BI Price per SY: CALCULATED TOTAL per SY Subcontractor Markup, < $25,000 Cents/Dollar Subcontractor Markup, > $25,000 Cents/Dollar CALCULATED TOTAL ADDITIONAL: CALCULATED TOTAL ADDITIONAL per SY: Materials (1-day Concrete)CY Materials Markup Cents/Dollar 1-Day High Early Cement Conc. Traffic Curb & Gutter at Driveway Entrances LF TOTAL CHANGE ORDER COST 1-Day High Early Cement Conc. For Driveway Entrance CALCULATED TOTAL per LF: BI Price per LF: ESTIMATED TOTAL per LF Materials (1-day Concrete)CY Labor - Wilson Concrete (Finishing 1-day mix)Hours Labor Markup - Wilson Concrete Cents/Dollar Labor - Wilson Concrete (hand-forming c & g)Hours Labor - Wilson Concrete (hand-forming c & g)Hours Subcontractor Markup, < $25,000 Cents/Dollar CALCULATED TOTAL ADDITIONAL: CALCULATED TOTAL ADDITIONAL per LF: Labor Markup - Wilson Concrete Cents/Dollar Equipment - Wilson Concrete (Pickup Truck)Hours Cents/Dollar Equipment Markup - Wilson Concrete Cents/Dollar Materials Markup EA Cement Conc. Traffic Curb & Gutter LF Cement Conc. For Driveways Entrance SY 1-Day High Early Cement Conc. For Driveway Entrance SY $250,781.78 Quoted Cost $47,029.50 Item Change 1-Day High Early Cement Conc. Traffic Curb & Gutter at Driveway Entrances 1-Day High Early Cement Conc. Pavement For Driveways CY Cement Conc. Pavement For Driveways CY Phased Construction for Maintained Driveway Access Driveway Access - Estimated Change Order Cost CO #52, Page 8 of 29 AGENDA ITEM #6. g) FIELD DIRECTIVE Project Name Federal Aid #Contract No.Date Field Directive Description Field Directive No. Contractor Project Engineer (or Representative) Date Jordan Howe Rainier Ave S Corridor Improvements - Phase 4 (S 3rd ST to NW 3rd PL) 801 2nd Avenue, Suite 302, Seattle, WA 98104 | P 206.436.0515 3/21/2025 Pivetta Brothers Construction Revised Driveway Access Requirements 089 STPUL-1615(005) CAG-22-163 3/21/2025 The following is documentation of an oral order given by the Engineer per WSDOT Specification 1-04.4. The Contractor shall install the cement concrete driveway entrances so that all driveways remain open at all times unless otherwise approved by the Engineer and affected property owner in writing. This revision will not impact the existing requirement in SP 1-07.23(1) that driveways for parcels with only one driveway be constructed in a manner that the driveway access is maintained at all times. Please provide a cost proposal for the impacts of this added requirement which will be addressed as part of a future change order. Driveway Access - Field Directive #89 CO #52, Page 9 of 29 Phased Construction for Maintained Driveway Access AGENDA ITEM #6. g) FIELD DIRECTIVE Project Name Federal Aid #Contract No.Date Field Directive Description Field Directive No. Contractor Project Engineer (or Representative) Date Jordan Howe Rainier Ave S Corridor Improvements - Phase 4 (S 3rd ST to NW 3rd PL) 801 2nd Avenue, Suite 302, Seattle, WA 98104 | P 206.436.0515 4/21/2025 Pivetta Brothers Construction 1-Day High Early Strength Concrete for Driveways 095 STPUL-1615(005) CAG-22-163 4/21/2025 The following is documentation of an oral order given by the Engineer per WSDOT Specification 1-04.4. The Contractor shall use 1 day high early strength concrete for driveways to facilitate the completion of this work to minimize additional costs related to Field Directive #89 and to minimize the impact on the travelling public. This concrete shall achieve 2500 PSI compressive strength at 24 hours so that the driveways can be quickly reopened in accordance with 5-05.3(17). Please provide a cost proposal for impacts caused by this field directive which will be incorporated into a future change order. Driveway Access - Field Directive #95 CO #52, Page 10 of 29 1-Day High Early Cement Concrete Pavement for Driveways 1-Day High Early Cement Concrete Pavement for Curb and Gutter 1-Day High Early Cement Concrete Pavement for Driveway Approach AGENDA ITEM #6. g) Driveway Access - Contractor's Quote CO #52, Page 11 of 29 Phased Construction for Maintained Driveway Access AGENDA ITEM #6. g) Driveway Access - Contractor's Quote CO #52, Page 12 of 29 Phased Construction for Maintained Driveway Access AGENDA ITEM #6. g) Driveway Access - Contractor's Quote CO #52, Page 13 of 29 Phased Construction for Maintained Driveway Access AG E N D A I T E M # 6 . g ) Driveway Access - Contractor's Quote CO #52, Page 14 of 29 Phased Construction for Maintained Driveway Access AGENDA ITEM #6. g) Driveway Access - Contractor's Quote CO #52, Page 15 of 29 1-Day High Early Cement Concrete Pavement for Driveways 1-Day High Early Cement Concrete Pavement for Curb and Gutter 1-Day High Early Cement Concrete Pavement for Driveway Approach AGENDA ITEM #6. g) Driveway Access - Contractor's Quote CO #52, Page 16 of 29 1-Day High Early Cement Concrete Pavement for Driveways 1-Day High Early Cement Concrete Pavement for Curb and Gutter 1-Day High Early Cement Concrete Pavement for Driveway Approach AGENDA ITEM #6. g) Driveway Access - Contractor's Quote CO #52, Page 17 of 29 1-Day High Early Cement Concrete Pavement for Driveways 1-Day High Early Cement Concrete Pavement for Curb and Gutter 1-Day High Early Cement Concrete Pavement for Driveway Approach AGENDA ITEM #6. g) Driveway Access - Contractor's Quote CO #52, Page 18 of 29 1-Day High Early Cement Concrete Pavement for Driveways 1-Day High Early Cement Concrete Pavement for Curb and Gutter 1-Day High Early Cement Concrete Pavement for Driveway Approach AGENDA ITEM #6. g) Driveway Access - Contractor's Quote CO #52, Page 19 of 29 1-Day High Early Cement Concrete Pavement for Driveways 1-Day High Early Cement Concrete Pavement for Curb and Gutter 1-Day High Early Cement Concrete Pavement for Driveway Approach AGENDA ITEM #6. g) Driveway Access - Contractor's Quote CO #52, Page 20 of 29 Phased Construction for Maintained Driveway Access AGENDA ITEM #6. g) Driveway Access - Contractor's Quote CO #52, Page 21 of 29 Phased Construction for Maintained Driveway Access AGENDA ITEM #6. g) Driveway Access - Contractor's Quote CO #52, Page 22 of 29 Phased Construction for Maintained Driveway Access AGENDA ITEM #6. g) Driveway Access - Contractor's Quote CO #52, Page 23 of 29 Phased Construction for Maintained Driveway Access AGENDA ITEM #6. g) Driveway Access - Contractor's Quote CO #52, Page 24 of 29 Phased Construction for Maintained Driveway Access AGENDA ITEM #6. g) Driveway Access - Contractor's Quote CO #52, Page 25 of 29 Phased Construction for Maintained Driveway Access AGENDA ITEM #6. g) Driveway Access - Contractor's Quote CO #52, Page 26 of 29 Phased Construction for Maintained Driveway Access AGENDA ITEM #6. g) Driveway Access - Contractor's Quote CO #52, Page 27 of 29 Phased Construction for Maintained Driveway Access AGENDA ITEM #6. g) Driveway Access - Contractor's Quote CO #52, Page 28 of 29 Phased Construction for Maintained Driveway Access AGENDA ITEM #6. g) Driveway Access - Contractor's Quote CO #52, Page 29 of 29 Phased Construction for Maintained Driveway Access AGENDA ITEM #6. g) AB - 3964 City Council Regular Meeting - 10 Nov 2025 SUBJECT/TITLE: Adaptive Signal Control at Maple Valley Hwy, Sunset Blvd, NE 3rd St RECOMMENDED ACTION: Refer to Transportation (Aviation) Committee DEPARTMENT: Public Works Transportation Systems Division STAFF CONTACT: Flora Lee, Transportation Principal Civil Engineer EXT.: 7303 FISCAL IMPACT SUMMARY: This agenda item has two cost elements. An amendment to CAG-20-340 with Western Systems in the amount of $123,200 and a contract award to SWANCO for vehicle detection equipment purchase in the amount of $133,683.60. The project will be charged to TIP ITS Program (317.122162), which has a total 2025 budget of $846,000 with $500,000 currently encumbered. The TIP ITS program has sufficient balance to fund this project ($256,883.60). SUMMARY OF ACTION: This project will implement adaptive signal control at the seven (7) traffic signals on the following corridors shown in Exhibit C:  NE 3rd St from Monterey Ave NE to Sunset Blvd;  Sunset Blvd from NE 3rd St to I-405 southbound on-ramp and Maple Valley Hwy/Bronson Way;  Bronson Way/Maple Valley Hwy from Factory Ave N/Houser Way to Cedar River Park Drive. This will expand City’s SCOOT (“Split Cycle Offset Optimization Technique”) system to 34 adaptive signal control intersections. Installation of the vehicle detection and SCOOT will allow the system to adjust green times dynamically and optimize traffic flow until demand exceeds physical capacity or the point of saturation. The Transportation Section obtained two (2) quotes for this project: (1) Quote QUO-20251022 from Swarco in the amount of $133,683.60 to procure sensor fusion vehicle detection equipment to provide stop bar and advance (distance) detection for adaptive signal control; (2) Quote Q-20786 from Western Systems in the amount of $123,200 for additional SCOOT support services to install adaptive signal control at the new intersections and integrate with the existing SCOOT system. The vendors were selected pursuant to Policy & Procedure No. 250-02, 5.3.2 Interlocal Purchasing Authorized, Agreement No. K2127 between Washington State Department of Enterprise Services (DES) and City of Renton. Both vendors are under DES Contract No. 29023 for the procurement of products and support services related to Illumination Transportation and Traffic Systems in compliance with RCW 39.26 and state procurement policies. The city’s system currently holds adequate intersection licenses, and no additional licenses for the SCOOT[JS1] [FL2] system are required to support this project. EXHIBITS: A. Vehicle Detection Equipment Quote B. CAG-20-340 Amendment No. 4 for Scoot C. Project Vicinity Map AGENDA ITEM #6. h) STAFF RECOMMENDATION: Authorize Mayor and City Clerk to execute Amendment No. 4 to CAG-20-340 with Western Systems in the amount of $123,200 for SCOOT services to support installation and integration, and authorize the purchase of vehicle detection equipment from Swarco in the amount of $133,683.60 for the seven SCOOT intersections. AGENDA ITEM #6. h) ____________________________________________ QUOTATION Estimator:Artie Santisteban Quote #:QUO-20251022-2873-01 (425)219-1242 Agency:Renton Contract 29023 Job Name:5 No Traffic Camera systems Bid Date:10/27/25 Bid Item Qnty Description Price Extension M97438 5 NOTRAFFIC NEXUS UNIT $4,630.00 $23,150.00 M97439 5 NOTRAFFIC SENSOR UNIT V2X, TYPE 2 $3,800.00 $19,000.00 M97440 15 NOTRAFFIC SENSOR UNIT, TYPE 1 $3,500.00 $52,500.00 M97441 5 NOTRAFFIC MAIN DIN $2,000.00 $10,000.00 M97442 5 NOTRAFFIC SYNERGY 9 IN 1 ANTENNA $500.00 $2,500.00 M97444 5 NOTRAFFIC POWER DIN $860.00 $4,300.00 M97577 5000 3CON, 16AWG CABLE $0.75 $3,750.00 M97443 5 NOTRAFFIC SDLC CABLE, NEMA TS2/15PIN TO 15PIN $100.00 $500.00 M97481 20 SKYBRACKET CAMERA MOUNT, SS, 66" CABLE, 74" POLE, SS-SBC66-ACM- 74 $275.00 $5,500.00 Tax 10.3%$12,483.60 Swarco is an international corporation with factories, vendors and suppliers located throughout the world. Unless specifically noted, we are not aware and/or may not comply with Buy America requirements particular to this project. Reference Total $133,683.60 Prices firm for 30 days. Add sales tax. AGENDA ITEM #6. h) A 3% processing surcharge is added to invoices paid by credit card. Sale is subject to Swarco's standard terms and conditions. The information transmitted is intended only for the person or entity to which it is addressed and may contain confidential and/or legally privileged material. Any review, retransmission, dissemination or other use of, or taking of any action in reliance upon, this information by persons or entities other than the intended recipient is prohibited. If you received this in error, please contact the sender and delete the material from any computer. AGENDA ITEM #6. h) AMENDMENT NO. 4 TO AGREEMENT FOR CAG-20-340 THIS AMENDMENT, dated for reference purposes only as _________________, _____, is by and between the City of Renton (the “City”), a Washington municipal corporation, and Western Systems, Inc. (“Consultant”), a Washington Corporation. The City and the Consultant are referred to collectively in this Amendment as the “Parties.” Once fully executed by the Parties, this Amendment is effective as of the last date signed by both parties. Whereas, the City engaged the services of the Consultant under Agreement CAG-20-340, dated October 7, 2020, to provide necessary services for the additional SCOOT licenses and services (referred to herein as the “Agreement”); Whereas, the Parties wish to amend the Agreement to change the scope of work, and change the compensation] in order to implement SCOOT adaptive signal control for additional intersections. NOW THEREFORE, It is mutually agreed upon that CAG-20-340 is amended as follows: 1. Scope of Work: Section 1, Scope of Work, is amended to add work as specified in Exhibit A-4, which is attached and incorporated herein. 2. Time of Performance: Section 3, Time of Performance, is amended pursuant to the schedule(s) set forth in Exhibit A-4. All Work shall be performed by no later than December 31, 2030. 3. Compensation: Section 4, Compensation, is amended so that the maximum amount of compensation payable to Consultant is increased by $123,200.00 from $254,066.94 to $377,266.94, including any applicable state and local sales taxes. The additional compensation shall be paid based upon Work actually performed according to the rate(s) or amounts specified in Exhibit B-4 of the Agreement. 4. All terms of the Agreement not explicitly modified herein shall remain in full force and effect and such terms shall apply to Work performed according to this Amendment as if fully set forth herein. IN WITNESS WHEREOF, the Parties have voluntarily entered into this Amendment as of the date last signed by the Parties below. AGENDA ITEM #6. h) PAGE 2 OF 2 CITY OF RENTON By:_____________________________ CONSULTANT By:____________________________ Armondo Pavone Mayor Kai Antrim Sales Manager _____________________________ Date _____________________________ Date Attest _____________________________ Jason A. Seth City Clerk Approved as to Legal Form By: __________________________ Shane Moloney City Attorney Contract Template Updated 06/17/2021 10/22/2025 AGENDA ITEM #6. h) CAG-20-340 EXHIBIT A-4 Page 1 of 7 SCOPE OF WORK PROJECT: SCOOT licenses and services CONSULTANT: Western Systems, Inc. A. PROJECT DESCRIPTION In 2018, City of Renton (City) installed a real-time Adaptive Signal Control (ASC) system, Split Cycle Offset Optimization Technique (SCOOT), to reduce traffic congestion and maximize the efficiency of the road network. ASC allows the system to quickly respond to changes from daily fluctuations, incidents, or special events that are not accounted for in fixed traffic signal timing plans. This Agreement provides additional SCOOT Licenses and Services to expand the existing ASC system. The City can use available capacity with ASC to achieve greater network-wide efficiency, other than adding capacity through roadway construction. The City has identified projects and future programs for the expansion of the existing SCOOT system. B. PURPOSE The City is requesting services from Western Systems, Inc. (Consultant) for the SCOOT ASC expansion project. The project scope includes the development and the integration of new intersection(s) to the existing SCOOT system, as outlined in the project’s fee section. The following Project Tasks will be implemented in this scope: 1. Project Management Support 2. Detection Layout 3. Concept of Operations (ConOps) Coordination 4. SCOOT Communication Server (SCS) Configuration 5. Node Architecture and UTC/SCOOT Database 6. Preliminary System Operation and System Diagnostics 7. Calibration and Validation of SCOOT Model 8. Fine Tuning 9. Schedules, CASTs, and Region Settings 10. System Inspection Support 11. 30-Day System Monitoring 12. Project Close Out C. GENERAL ASSUMPTIONS The Consultant will coordinate with the City for on-call or site support, as needed, to perform the project tasks. The City will make available throughout the project to support the Consultant, if requested, as defined in Project Tasks. All work may be conducted between 6 AM and 7 PM during weekdays and weekends as agreed upon by the City. Traffic signal controller, cabinet, and detection upgrades and/or replacements, and/or communications infrastructure necessary for SCOOT deployment are in place prior to the implementation of SCOOT. The Consultant will coordinate with the City for support on AGENDA ITEM #6. h) CAG-20-340 EXHIBIT A-4 Page 2 of 7 issues, if any, involving non-SCOOT, communication, and/or detection that are not provided by the Consultant in this contract. The Consultant will provide software license and/or upgrades and software installation. The cost for any additional license(s) and/or upgrades for this project shall be included in the fee section when required. The Consultant will coordinate with the vendor, YUNEX (formerly Siemens), to resolve any software issues, if any. The Consultant will provide support documentation for SCOOT/SEPAC software upgrades as well as remote support and/or training to the City, if requested. The City will process payments for invoices based on completed task item(s) as identified in the fee section. Project meetings with the City will be held at Renton City Hall or virtually via Teams as an option to the City. Project coordination or communication between the Consultant and the City may be in-person at Renton City Hall, Traffic Management Center (TMC), via Teams, conference calls, or email, as appropriate. D. DELIVERABLES All deliverables to be prepared and produced by the Consultant, as part of this scope of work, are identified at the end of each task listed below. D. SCHEDULE The City anticipates this project with a target objective completion date within one (1) year from Notice to Proceed (NTP). For the purpose of this scope, the project duration is assumed to be up to twelve (12) months. The Consultant shall provide the City with a project schedule that meets the project duration after this contract has been executed. Upon mutually agreed the project schedule, the City will issue a NTP in writing to the Consultant to begin the project work. Unless otherwise noted in the scope of work, the completion date for all deliverables described in the scope of work will be determined by the project schedule. Time is a material consideration in the performance of all work by the Consultant under this contract. The Consultant shall complete its work and services within its control to meet the agreed upon schedule. The Consultant shall provide to the City updates to the project schedule that identify task(s) and deliverables that require time extensions due to reasonable and/or unforeseen circumstances. The City shall not unreasonably withhold written acceptance of the time extensions. F. SCOPE OF WORK The SCOOT expansion project is divided among the following tasks, with the fee breakout as shown in the fee section. Task 1 – Project Management Support AGENDA ITEM #6. h) CAG-20-340 EXHIBIT A-4 Page 3 of 7 The Consultant will provide overall project management, coordination with the City project manager, and provide the progress reports and invoicing throughout the duration of the project. This effort will include the following elements. 1.1 – Administration, Coordination, and Supervision: • Initiate project set-up including establishment of creation of project files (electronic and physical) and scheduling of Consultant personnel work activities. • Coordination with the City for any meetings that may be required for the work to be performed in this contract. • Supervision of Consultant, including sub-consultants, personnel and activities to ensure compliance with contract scope, schedule, and budget. • Manage the project tasks to control costs, maintain schedule, and provide quality product appropriate to the goals and completion of the project. • Conduct internal communication or coordination meetings with the vendor or sub- consultants, if necessary. 1.2 – Invoicing: • Preparation of invoices with progress reports that include the following: o Provide invoice(s) for completed task item(s) as identified in the fee section. o Summary of budget, expenses to date, and expenses for invoice period. o Summary of work accomplished for the invoice period and project updates. 1.3 – Project Schedule and Updates: • Develop a project schedule with assistance from the City. This project schedule will include each project task and cover the entire timeframe of the project from NTP to project completion. • Provide bi-weekly project updates and/or address outstanding issues. Deliverables: Invoices with Progress Reports to City Project Manager. Project Schedule – Delivered to the City within one (1) week from contract execution. Bi-weekly project Updates with Outstanding Issues, if any. Task 2 – Detection Layout The Consultant will support the design task for detection and detection zones either in advance and/or at the time of the project. This task will include Consultant’s assistance for intersection detection zone placement and configuration for the project. Deliverables: Intersection Detection Zone Schematics Layout in PDF format. Task 3 – Concept of Operations (ConOps) Coordination The Consultant will set up and facilitate a project kickoff meeting with key City and project team personnel. The purpose of the meeting is to discuss key elements of the scope of work and project schedule timelines. This task will help to guide the objectives for AGENDA ITEM #6. h) CAG-20-340 EXHIBIT A-4 Page 4 of 7 coordination and determine the traffic management decisions and goals for programming SCOOT. Deliverables: Concept of Operations (ConOps) Coordination Meeting Minutes in PDF format. Task 4 – SCOOT Communication Server (SCS) Configuration The Consultant will program the SCOOT Communication Server (SCS) for the intersections within the project and/or reconfigure the existing SCS for the City’s SCOOT system. This task will cover any required coordination or assistance from YUNEX to the Consultant for the system. Deliverables: (SCOOT) Additional SCOOT License(s), if applicable. (SCOOT) Installation of SCOOT Upgrade, if applicable. Task 5 – Node Architecture and UTC/SCOOT Database The Consultant will program the traffic signal timing, phasing, and other parameters in the City’s existing Central Advanced Traffic Management System (TACTICS) as required for the SCOOT operational programming in the Urban Traffic Control (UTC) and SCOOT databases. City uses TACTICS Phase Bank 4 for SCOOT programming. The Consultant will configure the Phase Bank 4 and SCOOT module in TACTICS for intersections in the project. In addition, the Consultant will configure a node architecture schematic for this project, with consideration for future SCOOT expansion. Deliverables: (SCOOT/TACTICS) UTC/SCOOT and TACTICS Data Loaded into Databases. Preliminary UTC/SCOOT Database Design Spreadsheets in Excel or PDF format. Node Architecture Schematic in PDF format. Task 6 – Preliminary System Operation and System Diagnostics The Consultant will bring each of the intersections within the project online with SCOOT operation for diagnostics. The purpose of this task is to conduct basic detection, communication and systems diagnostics, and where issues exist, coordinate for support with City as necessary. Deliverables: (SCOOT) Completion of System Diagnostics. Task 7 – Calibration and Validation of SCOOT Model The Consultant will begin the field calibration activities in this task following the diagnostics task and associated revisions. In this task, the Consultant will adjust the SCOOT model for individual intersections based upon on field observations to create a more accurate representation of real-world conditions. The Consultant will made these AGENDA ITEM #6. h) CAG-20-340 EXHIBIT A-4 Page 5 of 7 observations during the AM, midday and PM peak periods. After observing that the SCOOT model outcomes are reasonable and consistent with the observed traffic conditions, the model will be considered Validated at the intersection level. Deliverables: (SCOOT) UTC/SCOOT Database Updates. (SCOOT) Completion of Calibration and Validation of SCOOT Model. Task 8 – Fine Tuning After the SCOOT traffic model has been Validated on an intersection basis, the fine-tuning task will be undertaken by the Consultant. In this task, groups of SCOOT intersections will be brought online together from the SCOOT system for observations of platoon progression, congestion and other issues. The Consultant will adjust the SCOOT system parameters that provide for improved progression via optimal bandwidth, offsets, congestion settings, and other parameters. Deliverables: (SCOOT) UTC/SCOOT Database Updates. (SCOOT) Completion of Fine Tuning of the SCOOT Model. Task 9 – Schedules, CASTs, and Region Settings The Consultant will determine the following SCOOT settings: • Schedules (SCOOT Timetables) to implement various traffic signal timing, phasing (SCOOT Stages) and traffic engineering strategies, • SCOOT Commands Actioned and Stored Together (CASTs) for the SCOOT program to implement these strategies, and • SCOOT Region coding for the groups of signals that will be operated under SCOOT control at the same common signal cycle time. The goals for this task will be based upon the ConOps, traffic observations, and coordination with the City. Deliverables: (SCOOT) SCOOT Timetables (Schedules) for weekdays, Saturday, and Sunday. (SCOOT) SCOOT CASTs programming. (SCOOT) UTC/SCOOT Database Updates for SCOOT Region settings. Task 10 – System Inspection Support The Consultant will collaborate with the City to complete this task. The Consultant will adjust SCOOT programming to satisfy the traffic operational needs per City’s discretion and complete the SCOOT Display Maps or Graphical User Interface (GUI). Deliverables: (SCOOT) Completion of SCOOT Display Maps. AGENDA ITEM #6. h) CAG-20-340 EXHIBIT A-4 Page 6 of 7 (SCOOT/TACTICS) UTC/SCOOT and TACTIC SCOOT Module Databases Updates. Completion of City Inspection Punch List items in PDF format, if any. Task 11 – 30-Day System Monitoring The Consultant will notify the City when the 30-Day System Monitoring period will begin and expire. After the System Inspection Support task is completed, the Consultant will place each of the intersections within the project into automatic, scheduled operation in SCOOT for a 30-day burn-in period. The SCOOT system log will be used to determine any programming changes (i.e., bug fixes) that may be needed. The Consultant will complete diagnostics with associated changes made in the SCOOT system as necessary from the findings. Deliverables: (SCOOT) Completion of SCOOT programming and system diagnostics. Task 12 – Project Close Out The Consultant will compile a SCOOT configuration summary to document the project. The summary will include a report memorandum that will cover a short description of SCOOT operations (i.e. weekday/weekend schedule, start/end time, area/region), observations of the system performance recommendations for future detection changes, and potential programming variables that could be explored for improving operations. In addition, the consultant will provide the documentation of the SCOOT design configuration settings and parameters/commands (i.e. Timetables, Regions, and CASTs, Translation Plans, UTC settings, detector masks…) with a schematic of Node Architecture (i.e. SCOOT Phasing: Intersection Node, Link, Outstation, Junction, Stage) for intersections within the project. Deliverables: • SCOOT Configuration Summary – delivered to the City within one (1) month from the completion of SCOOT programming and system diagnostics, including: 1. Project Report Memorandum in PDF format. 2. Final Schematic of the Node Architecture in PDF format. 3. Final SCOOT Database Design Spreadsheets in Excel/PDF format. For each intersection, the design spreadsheet will include: location name, node, junction, outstation; IP address/SCS port; signal phasing/overlap, EPAC minimums, SCOOT stages, UTC Stages, inbound/outbound detector (link, mask, position), minimum split times and cycle lengths, translation plans. 4. Final UTC Settings Spreadsheets in Excel/PDF format. 5. Final Timetables in PDF format. 6. Final List of Parameters/Commands for each assigned CAST in PDF format. 7. Final List of Cast Names in PDF format. 8. Final List of Regions including list of intersections within the Regions in PDF format. • (SCOOT) Final Intersection, Area, Citywide Maps or Graphical User Interface (GUI). AGENDA ITEM #6. h) CAG-20-340 EXHIBIT A-4 Page 7 of 7 ADDITIONAL SERVICES The City may require additional services of the Consultant. The scope of work for additional services will be determined based on anticipated or unanticipated project needs or other considerations at the sole discretion of the City. The work may include items identified in the current task authorization as well as other items, which may include, but are not necessarily limited to the following: • Transit Signal / Bus Priority (TSP) • Other services not specifically referenced in this scope of work These services will be authorized under a future contract amendment if necessary. At the time these services are required, the Consultant shall provide a detailed scope of work and an estimate of costs. The consultant shall not proceed with the work until the City has authorized the work and issued an NTP. AGENDA ITEM #6. h) Rev # Phone: Contact: Phone: Fax: Email: Qty 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 Subtotal Shipping Tax*10.30% Grand Total $6,300.00 $6,300.00 $6,300.00 $6,300.00 $0.00 $7,000.00 $7,000.00 $7,000.00 $7,000.00 $7,000.00 SOFTWARE SCOOT ADAPTIVE; PROJECT MANAGEMENT SOFTWARE SCOOT ADAPTIVE; DETECTOR LAYOUT CONCEPT OF OPERATIONS COORDINATION SOFTWARE SCOOT ADAPTIVE; SCS CONFIGURATION Node Architecture and UTC/SCOOT Database CONSULTING SERVICES / SCOOT FIELD TUNING & VALIDATION PRELIMINARY SYSTEM OPERATION AND SYSTEM DIAGNOSTICS CALIBRATION AND VALIDATION OF THE SCOOT MODEL FINE TUNING SCHEDULES, CASTS AND REGION SETTINGS CONSULTING SERVICES / SYSTEM VERIFICATION SYSTEM INSPECTION SUPPORT 30 DAY SYSTEM MONITORING PROJECT CLOSE OUT $15,400.00 $15,400.00 $15,400.00 $15,400.00 $15,400.00 $0.00 TERMS AND CONDITIONS See General Conditions below for exceptions and changes to freight and lead time policies Delivery: Material lead time date is based after the release of the order. Purchase Order: All purchases require a written purchase order. Email or verbal communication does not constitute an acceptable purchase order. *Line Items in this proposal are not taxable Date 10/21/25 1122 Industry Street, Bldg. B, Everett, WA 98203 Phone: (425) 438-1133 | Fax: (425) 438-1585 Quote # Q-20786 Address: City/State: Net 30 $0.00 3555 Northeast 2nd Street Renton, Washington 98056 Description 4740050459 4740050457 0000000000 4740050464 0000000000 NOTES 0000000000 0000000000 0000000000 0000000000 NOTES 0000000000 $123,200.00 Freight Terms:FOB DstFrt PP&ADD Material Lead Time: $123,200.00 Prepared For:To place an order: *This order is subject to the terms & conditions 0000000000 0000000000 $15,400.00 $15,400.00 $15,400.00 $15,400.00 $15,400.00 $0.00 $6,300.00 $6,300.00 $6,300.00 $6,300.00 $0.00 $7,000.00 Terms: Quotation Contact: Company: Email: Project Agency: City of Renton, WAMaple Valley Highway SCOOT +1 4255309017 (425) 438-1585 City of Renton, WA Part # NOTES Unit Price Kai Antrim kantrim@westernsystems-inc.com Ext. Price $0.00CONSULTING SERVICES / SCOOT PROJECT MANAGEMENT $0.00 $0.00 1 of 2 Exhibit B-4 *This project does not require new SCOOT licenses. AGENDA ITEM #6. h) FOB Destination and FOB Destination, Prepay & Add terms as quoted imply that the customer will be available to receive material deliveries. Any repeated delivery attempts, trucking reroutes, enroute cancellations or product factory returns which incur additional shipping costs shall be billed to the purchaser. This quote is based on the current prices being paid by Western Systems for parts and components. It assumes delivery within a normal time frame after acceptance (in any case within 90 days). If delivery is delayed or postponed beyond normal delivery time frames at no fault of Western Systems, it reserves the right to adjust the pricing based on its estimate of increased costs and expenses resulting from the delay, unless contractually obligated otherwise or contrary to applicable law, Warranty: Products are sold subject to manufacturer’s warranty. Products manufactured by Western Systems carry a one-year warranty. For additional information on Western Systems warranty, please send an email to info@westernsystems-inc.com. Return and Restocking Policy: Western Systems will be the sole source in determining whether any item is eligible for return. To be eligible the item(s) must be standard product models, new and unused, in the original packaging, and invoiced within the last 90 days. Restocking fees are applied to all returns and can vary between 20-50% based on annual sales activity. In no case will Western Systems be obligated to take returns for items that are obsolete, custom orders, or past the 90-day invoice period. Delivery Inspection: All materials deliveries must be inspected upon receipt from freight carrier. Any freight damages must be reported to the carrier at the time of receipt of goods. Any materials shortages or inaccuracies in shipment must be reported to Western Systems within ten days receipt of goods. Thereafter, any discrepancies will be considered incidental and the responsibility of the receiver. On-Site Services: On-site services such as signal or video system turn-on support shall be scheduled three weeks in advance. If services need to be cancelled or postponed, any non-reimbursable travel expenses will be billed to purchaser. This quotation does not include nor imply any on-site support services unless expressly stated herein. If on-site support services are required, and not included as part of this proposed scope of work, please contact Western Systems for a revised quotation. 2 of 2 AGENDA ITEM #6. h) M M M M M M M M Adaptive – SCOOT Maple Valley Hwy Sunset Blvd NE 3rd St Fa c to r y A v e N AG E N D A I T E M # 6 . h ) AB - 3970 City Council Regular Meeting - 10 Nov 2025 SUBJECT/TITLE: First Amendment to Water Supply Contract (CAG-11-093) between the City of Renton and the City of Seattle RECOMMENDED ACTION: Refer to Utilities Committee DEPARTMENT: Public Works Utility Systems Division STAFF CONTACT: Abdoul Gafour, Water Utility Engineering Manager EXT.: 7210 FISCAL IMPACT SUMMARY: This amendment has no additional fiscal impact to the city. Renton’s costs for wholesale water purchases from Seattle, as well as participation in Seattle’s Regional Water Conservation Program, are already included in the Water Utility Engineering and Maintenance annual budgets. SUMMARY OF ACTION: The Water Utility requests Council’s approval of the First Amendment to the Water Supply Contract between the City of Renton and the City of Seattle. This amendment will ensure Renton maintains access to a long- term, reliable water supply to meet future needs. In 2011, the City of Renton (“Renton”) entered into a 50-year long-term water supply contract (contract no. CAG-11-093) with the City of Seattle (“Seattle”), effective from 2012 to 2062, to secure supplemental water supply beyond Renton’s existing sources. Currently, Renton’s own sources supply approximately 99% of the City’s water demand, with Seattle supplying the remaining 1%, primarily to serve the Renton Boeing plant. As part of the agreement, Renton participates in Seattle’s Regional Water Conservation Program. For 2025, Renton’s share of the conservation program cost is $172,212. In exchange for participation, Renton is exempt from Seattle’s facilities charges for new water service connections. In March 2021, Seattle and its 17 wholesale water purveyors, including Renton, began negotiations on the first contract amendment, as permitted under the original water agreement. From April 2021 to May 2025, Seattle convened monthly workshops with representatives from all wholesale purveyors to review proposed changes to contract sections. Several large purveyors retained legal counsel (Inslee & Best, Johnson & Johnson) and a financial consultant (FCS Group) to provide technical and legal expertise throughout the negotiation process. By September 2025, Seattle and all purveyors reached agreement on the amendment terms, pending approval by their respective city councils and boards. Most revisions in the First Amendment have minimal operational and financial impact on Renton, given the City’s relatively small volume of water purchases from Seattle compared to other wholesale purveyors. Key changes are summarized in Exhibit B (attached). Key Impacts for Renton • Updated Conservation Cost Share: Renton’s share of the Regional Conservation Program has been adjusted from 5.7% to 6.8%, based on a recalculation of average annual water usage over the past five years, AGENDA ITEM #6. i) relative to the total usage across Seattle's retail and wholesale service areas (see Sections II.E and IV.E.2.c of the amendment). • 2024 Conservation Program Surplus: In 2025, Seattle completed its true-up report for the 2024 program year. The report shows a surplus, including interest, of $123,752 attributable to Renton. This amount will be credited to Renton in 2026, reducing the City’s 2026 conservation cost from a projected $156,047 to $32,295. • Continued Exemption from Facilities Charges: Renton remains exempt from Seattle’s facilities charges for new water service connections. Budget Considerations The Water Utility has incorporated sufficient funding in its annual operations and maintenance budgets to cover the costs associated with participation in Seattle’s Regional Conservation Program and ongoing and future water purchases from Seattle. EXHIBITS: A. First Amendment Water Supply Contract with the City of Seattle B. Key Elements of Amendment No. 1 C. Resolution STAFF RECOMMENDATION: Adopt the resolution authorizing the Mayor and City Clerk to execute the First Amendment to the Water Supply CAG-11-093 between the City of Renton and the City of Seattle. AGENDA ITEM #6. i) First Amended and Restated Contract for the Supply of Water City of Renton FIRST AMENDED AND RESTATED CONTRACT BETWEEN THE CITY OF SEATTLE AND THE CITY OF RENTON FOR THE SUPPLY OF WATER DATE: _____________________________ AGENDA ITEM #6. i) i First Amended and Restated Contract for the Supply of Water City of Renton TABLE OF CONTENTS Page(s) FIRST AMENDED AND RESTATED CONTRACT BETWEEN THE CITY OF SEATTLE AND THE CITY OF RENTON FOR THE SUPPLY OF WATER ........................................................... 1 RECITALS ....................................................................................................................................................................... 1 SECTION I. DEFINITIONS .......................................................................................................... 3 SECTION II. TERM OF CONTRACT AND GENERAL CONDITIONS .................................. 10 II.A. Term of Contract ...................................................................................................................................... 10 II.B. Agreement to Supply and Purchase Water ............................................................................................. 13 II.C. Continuity of Service within the Term of the Contract ......................................................................... 23 II.D. Water Quality ........................................................................................................................................... 25 II.E. Regional Water Conservation Program .................................................................................................. 32 II.F Cedar River Watershed Education Center and other facilities ............................................................ 34 SECTION III. CONDITIONS OF SERVICE ............................................................................. 35 III.A. Minimum Hydraulic Gradient and Flow Rates ..................................................................................... 35 III.B. Resale to Other Parties ............................................................................................................................. 37 III.C. Interconnection With Other Systems ...................................................................................................... 37 III.D. Development of Seattle Regional Water Supply System Infrastructure ............................................... 39 III.E. Metering Equipment ................................................................................................................................. 40 SECTION IV. COST OF WATER SUPPLY & TRANSMISSION ............................................... 41 IV.A. Rate-making and Cost-allocation Principles .......................................................................................... 41 IV.B. Ratemaking Framework .......................................................................................................................... 44 IV.C. Seattle Regional Water Supply System Cost Pools ............................................................................... 45 IV.D. Allocation of Costs and Revenues into Cost Pools .................................................................................. 50 IV.E Allocation of Cost Pools by Customer or Customer Class. ........................................................... 61 IV.F Elective Services ....................................................................................................................................... 65 IV.G Rate Setting, Adjustments and Special Charges .................................................................................... 65 IV.H. Cost Review and Truing Actual Costs and Actual Revenues ................................................................ 73 SECTION V. OPERATING BOARD ........................................................................................... 77 SECTION VI. PLANNING ........................................................................................................ 78 VI.A. Reporting of Planning Data ..................................................................................................................... 78 VI.B. Submittal of Water Utility Water System Plans ..................................................................................... 80 VI.C. Seattle as Water Planning Agency ........................................................................................................... 80 VI.D. Capital Improvement Plan ....................................................................................................................... 81 SECTION VII. PAYMENT ......................................................................................................... 83 VII.A. Collection of Money Due City .................................................................................................................. 83 VII.B. Penalties for Late Payment ...................................................................................................................... 83 AGENDA ITEM #6. i) ii First Amended and Restated Contract for the Supply of Water City of Renton VII.C. Billing Disputes ......................................................................................................................................... 83 VII.D Availability of Records ............................................................................................................................. 84 SECTION VIII. CONTRACT AMENDMENTS .......................................................................... 84 SECTION IX. DISPUTE RESOLUTION .................................................................................. 84 IX.A. Operating Board Review .......................................................................................................................... 84 IX.B. Seattle Mayor Review ............................................................................................................................... 85 IX.C. Mediation ................................................................................................................................................... 85 IX.D. Resort to Litigation ................................................................................................................................... 86 IX.E. Efficiency of Review .................................................................................................................................. 86 SECTION X. MISCELLANEOUS ............................................................................................... 86 X.A. Notification ................................................................................................................................................ 86 X.B. Severability ................................................................................................................................................ 87 X.C. Consent ...................................................................................................................................................... 88 X.D. Emergency Situations ............................................................................................................................... 88 X.E. No Joint Venture - Individual Liability ................................................................................................... 88 X.F. Complete Agreement ................................................................................................................................ 88 X.G. Venue, Jurisdiction and Specific Performance ....................................................................................... 89 X.H. Default and Non-Waiver .......................................................................................................................... 89 X.I. Force Majeure ........................................................................................................................................... 89 X.J. Successors .................................................................................................................................................. 90 X.K. Exhibits ...................................................................................................................................................... 90 SIGNATURE PAGE ........................................................................................................................ 91 LIST OF EXHIBITS ........................................................................................................................ 92 EXHIBIT I ..................................................................................................................................................................... 93 PURCHASE COMMITMENT & EMERGENCY, INDEPENDENT AND PURCHASED SUPPLIES ............... 93 EXHIBIT II .................................................................................................................................................................... 99 SERVICE CONNECTIONS, MINIMUM HYDRAULIC GRADIENTS, AND FLOW RATES OF WATER SUPPLIED ..................................................................................................................................................................... 99 EXHIBIT III ................................................................................................................................................................ 101 DEMAND CHARGE METHODOLOGY ................................................................................................................. 101 EXHIBIT IV ................................................................................................................................................................. 104 OPERATING BOARD STRUCTURE ...................................................................................................................... 104 EXHIBIT V .................................................................................................................................................................. 106 FACILITIES CHARGES ........................................................................................................................................... 106 EXHIBIT VI ................................................................................................................................................................. 108 REGIONAL FACILITIES ......................................................................................................................................... 108 EXHIBIT VII ............................................................................................................................................................... 112 SUBREGIONAL FACILITIES AND ALLOCATIONS .......................................................................................... 112 AGENDA ITEM #6. i) iii First Amended and Restated Contract for the Supply of Water City of Renton EXHIBIT VIII ............................................................................................................................................................. 117 INDEX O&M COST CATEGORIES ........................................................................................................................ 117 EXHIBIT IX ................................................................................................................................................................. 119 STRANDED AND AVOIDED COSTS ...................................................................................................................... 119 AGENDA ITEM #6. i) Page 1 First Amended and Restated Contract for the Supply of Water City of Renton FIRST AMENDED AND RESTATED CONTRACT BETWEEN THE CITY OF SEATTLE AND CITY OF RENTON FOR THE SUPPLY OF WATER THIS FIRST AMENDED AND RESTATED CONTRACT (“Contract”) is entered into between the CITY OF SEATTLE (“Seattle”), a municipal corporation of the State of Washington, and the CITY OF RENTON (“Water Utility”), a municipal corporation of the State of Washington. RECITALS 1. Seattle owns and operates a system for the supply, treatment, transmission, and distribution of potable water and is authorized to sell and distribute water to its residents and to other persons and customers located outside the corporate limits of Seattle. 2. Seattle's water system is integral to the health and welfare of the residents located within the retail and wholesale water service areas shown in Seattle's Water System Plan. Seattle intends to provide water from the system to meet the current and future needs of the residents of the wholesale water service areas pursuant to long-term water supply contracts. 3. In meeting this service commitment, Seattle must ensure that this role does not place financial burdens on its retail customers for which they do not receive a corresponding benefit. 4. This Contract and contracts of a similar nature with other Wholesale Customers of Seattle located within Seattle’s wholesale water service area are intended to provide those Wholesale Customers and Seattle with the assurance of a long-term service commitment for reliable and sustainable high quality water supply and to describe the terms and AGENDA ITEM #6. i) Page 2 First Amended and Restated Contract for the Supply of Water City of Renton conditions associated with that commitment. 5. Under this Contract, Seattle intends to provide wholesale water to Water Utility at an equivalent Wholesale Level of Service with the same pricing and operational principles as it provides itself. 6. Given the extensive growth of Seattle and the surrounding areas and the impacts upon infrastructure and costs, this Contract is intended to provide sufficient water for growth. As a general philosophy for cost sharing purposes, the parties desire to adopt the principle that “growth should pay for growth.” 7. Seattle and Water Utility, together with other Wholesale Customers of Seattle, have agreed to establish an Operating Board comprised of representatives from Seattle and Wholesale Customers, along with an independent representative, all pledged to represent the best interests of the region, to provide advice and direction in certain areas to the Administrator of the Seattle Regional Water Supply System. 8. Pursuant to Section II.A.4.a, Seattle, Water Utility and the other Wholesale Customers have undertaken a review of the Contract and have mutually agreed to amend certain terms and conditions of the Contract to update and clarify obligations of the parties and to strengthen the partnership, resiliency and sustainability of the Seattle Regional Water Supply System. NOW, THEREFORE, in consideration of mutual covenants herein, the parties mutually agree as follows: AGENDA ITEM #6. i) Page 3 First Amended and Restated Contract for the Supply of Water City of Renton SECTION I. DEFINITIONS For the purposes of this Contract, the following terms have been defined as: “Administrator” - The General Manager of Seattle Public Utilities or any other title given to that person who maintains the executive authority to operate and manage the Seattle Regional Water Supply System. “Alternate Supply(ies)” – The Emergency, Independent and Purchased Supplies, if any, available to Water Utility. “Annual O&M Costs” – The annual total O&M Costs included in each cost pool as determined in Section IV.D.3. “Automatically Allowed Reduction” – The purchase reduction amount automatically allowed as defined in Section II.B.5.d.viii. “Avoided Costs” – The proportional share of the projected capital and operating cost of the next planned source of supply of the Seattle Regional Water Supply System represented by the size of a Wholesale Customer's qualifying reduction in demand, as more particularly defined in Section II.B.5 and Exhibit IX. “Block Purchase Contract” – A contract in which Seattle sells a fixed quantity of water to a block wholesale customer on a take or pay basis. “Customer-driven Demand Fluctuations” – Demand fluctuations that are out of Seattle or Water Utility’s control and result from retail customer discretion or behavior, such as weather or economic-related demand, use of efficient fixtures, use of reuse water alternatives or redevelopment of property, etc. “Eastern Subregional Facilities” – Certain subregional transmission facilities used, in part, to serve those Wholesale Customers in the Eastern Subregion as more particularly described in AGENDA ITEM #6. i) Page 4 First Amended and Restated Contract for the Supply of Water City of Renton Section I of Exhibit VII. “Emergency Supply(ies)” – Water supplies that Water Utility receives or purchases from another water purveyor to use on an emergency or temporary basis as specifically identified in Section I of Exhibit I. Emergency Supplies do not include Independent or Purchased Supplies, or periodic or intermittent water supplies used for peak or seasonal demand or other domestic demand. “Existing Regional Facilities” – Components of the Seattle Regional Water Supply System which consist of supply and transmission resources and facilities that Seattle exclusively owns and operates; related deferred costs; and facilities owned by others for which Seattle has entered into an agreement to use, all of which are used to produce, treat and convey water to the Seattle Retail Distribution System, Water Utility, other Wholesale Customers, and block or other wholesale customers as set forth in Section I of Exhibit VI. This does not include New Supply, New Transmission or Subregional Facilities. “Facilities Charges” – Facilities Charges (FCs) are the product of the Equivalent Residential Unit (ERU) Charge and the ERU Factor, as further described in Section IV.D.2.c. and Exhibit V. FCs are only as described in this Contract. “Firm Yield” - Firm yield is the amount of water that Seattle is able to supply system-wide as published in the Seattle Water System Plan. “Full Requirements Contract” – A contract in which Seattle supplies a Wholesale Customer with its Full Water Requirements. “Full Water Requirements” – All of the water, except for Emergency Supplies, if any, that Water Utility needs to meet the demand of its present and future retail water customers within its retail distribution service area, as shown in Water Utility’s water system plan in effect on the Effective Date of this Contract, as may be amended according to the provisions of this Contract. AGENDA ITEM #6. i) Page 5 First Amended and Restated Contract for the Supply of Water City of Renton “Independent Supply(ies)” – Water supplies that are owned and operated by Water Utility pursuant to existing or transferred water rights, claims or permits as specifically identified in Section II of Exhibit I or new water supplies acquired by Water Utility through a merger with another water purveyor not supplied by Seattle water. Independent Supplies do not include Emergency or Purchased Supplies. “Index O&M Costs” – The portion of O&M Costs used to support the Seattle Regional Water Supply System only, except those identified as Non-Index O&M Costs, as more particularly described by the O&M Cost categories specified in Exhibit VIII. “Infrastructure Adder” – 1.5% that is added as a component of the Rate of Return on Investment to the Net Book Value of facilities recognized under the Utility Basis. “Mixed-use Assets” – Capitalized facilities or assets that are shared between or used to support both the Seattle Retail Distribution System and the Seattle Regional Water Supply System. “Mixed-use O&M Costs” –The portion of O&M Costs that are shared between or used to support both the Seattle Retail Distribution System and the Seattle Regional Water Supply System. “New Supply Facilities” – New resources and facilities developed after January 1, 2002, or portions of rehabilitated or replaced Existing Regional Facilities as may be allocated by the Operating Board, that expand the supply capacity of the Seattle Regional Water Supply System as set forth in Section II of Exhibit VI. This does not include Existing Regional, New Transmission or Subregional Facilities. “New Transmission Facilities” – New resources and facilities developed after January 1, 2002, or portions of rehabilitated or replaced Existing Regional Facilities as may be allocated by the Operating Board, that expand the transmission capacity of the Seattle Regional Water Supply System as set forth in Section III of Exhibit VI. This does not include Existing Regional, New AGENDA ITEM #6. i) Page 6 First Amended and Restated Contract for the Supply of Water City of Renton Supply or Subregional Facilities. “Non-index O&M Costs” – A portion of O&M Costs to support the Seattle Regional Water Supply System only, but not included in the Index O&M Costs because they are nonrecurring or other special circumstances, as determined by Seattle, which may include, but are not limited to pre-or post-capital expenses claims or net disposition costs. “Operating Board” – A board of representatives established by Section V of this Contract and having the specific roles and limited authorities as more particularly set forth throughout this Contract. “O&M Costs” - The fully loaded costs of labor (i.e. all wages and fringe benefits); costs of materials, supplies, and equipment; and other direct or indirect costs or expenses that are not capitalized; or portions thereof, required or expended to operate, maintain, repair and support the Seattle Regional Water Supply System and the Seattle Retail Distribution System in good working order consistent with all applicable local, state and federal laws, policies and standards and to meet the obligations of this Contract. “Partial Requirements Contract” - A contract in which Seattle supplies a Wholesale Customer with its Partial Water Requirements during the Contract term. "Partial Water Requirements" – All of the water that is over and above the aggregate amount of Water Utility’s Independent and Purchased Supplies that Water Utility needs to meet the demand of its present and future retail water customers within its service area as shown in Water Utility’s water system plan in effect on the Effective Date of this Contract, as may be amended according to the provisions of this Contract. “Purchase Commitment” – Water Utility’s Full or Partial Water Requirements, as appropriate, as specified in Exhibit I. AGENDA ITEM #6. i) Page 7 First Amended and Restated Contract for the Supply of Water City of Renton “Purchased Supplies” – Water supplies Water Utility purchases from another water purveyor to meet the demand of its present or future retail water customers as specifically identified in Section III of Exhibit I. “Qualified Partial Requirements Contract” - A contract in which Seattle supplies a Wholesale Customer with its future partial or full requirements during the Contract term- following a customer's demand reduction due to Purchased Supplies. “Qualified Partial Water Requirements” – Water Utility’s Partial Water Requirements less the amount of a new Purchased Supply that becomes effective pursuant to a reduction of Water Utility’s Purchase Commitment under Section II.B.5. "Rate of Return on Investment" - Seattle’s Average Cost of Debt plus the Infrastructure Adder. “Regional Facilities” – All of the Existing Regional, New Supply and New Transmission Facilities. “Regional Water Conservation Program” - A regional program, implemented collaboratively between Seattle and Wholesale Customers, to help retail customers use water efficiently, defer development of new supply resources and meet applicable regulations and agreements as more particularly described in Section II.E. “Renton Subregional Facilities” - Certain subregional transmission facilities used, in part, to serve those Wholesale Customers in the Renton Subregion as more particularly described in Section III of Exhibit VII. Seattle Average Cost of Debt (“ACOD”) – The weighted average interest rate on Seattle’s water system debt outstanding over the course of a calendar year calculated at the end of each calendar year during the term of this Contract. “Seattle’s Cash Pool Rate” - The interest rate earned by the Seattle Water Fund for cash deposited AGENDA ITEM #6. i) Page 8 First Amended and Restated Contract for the Supply of Water City of Renton in the City of Seattle’s cash pool. “Seattle Retail Distribution System” – Seattle’s retail water distribution system consisting of its retail customers within the Seattle retail water service area as defined in its Water System Plan, and including storage facilities, distribution mains, pumps, disinfection facilities, retail service connections, and all other facilities not included in the Seattle Regional Water Supply System. "Seattle Regional Water Supply System" - Seattle's regional water supply system consisting generally of water rights (including permits and claims), real property rights, dams, impounded water, supply and transmission mains, pumps, treatment facilities, Subregional Facilities, Service Connections and all other resources and facilities utilized in producing, treating and conveying water up to but not including the Seattle Retail Distribution System, and through to the end of the Service Connections of the Water Utility and other Wholesale Customers, and block or other wholesale customers. “Seattle’s Service Area Boundary” - Seattle’s then current designated place of use of Seattle’s water certificates, permits, claims or service area under Seattle’s approved Water System Plan. “Seattle Water Enterprise Fund” - A public utility enterprise fund of the City of Seattle established to account for activities of the water system operated by Seattle. "Seattle Water System Plan" - Seattle's 2019 Water System Plan, dated August 2019, and amendments and updates thereto, prepared by Seattle to comply with the requirements of WAC 246-290-100, and successor regulations, including each successive Water System Plan issued approximately every 10 years. "Service Connection” - The Seattle-owned and operated metered delivery locations as specified in Exhibit II, beginning at the outlet from the regional supply pipeline (which may be a subregional pipeline) to the end of the Seattle-owned vault, or the first isolation valve downstream AGENDA ITEM #6. i) Page 9 First Amended and Restated Contract for the Supply of Water City of Renton of the vault; including the water meter and associated appurtenances through which Seattle delivers water at a defined level of service from the Seattle Regional Water Supply System to a Wholesale Customer's retail distribution water system. “Southwest Subregional Facilities” - Certain subregional transmission facilities used, in part, to serve those Wholesale Customers in the Southwest Subregion, as more particularly described in Section II of Exhibit VII. “Stranded Costs” – Those portions of infrastructure costs that Seattle has incurred and fixed operations costs committed for the Seattle Regional Water Supply System, but not yet recovered through rates and charges, at the time a Wholesale Customer reduces or terminates its Purchase Commitment, that other Wholesale Customers, including Seattle, would have to pay due to the loss of expected revenue resulting from that Wholesale Customer’s reduction or termination as more particularly described in Exhibit IX. “Subregional Facilities” – All of the Eastern, Southwestern and Renton Subregional Facilities, or other subregions, if any, that may be added during the term of this Contract. “Wholesale Customer” – Those water utilities who purchase water from Seattle under a Full or Partial Requirements Contract for the purposes of reselling to their retail customers. “Wholesale Level of Service” – Water delivered by Seattle to the Service Connection(s) in accordance with the conditions listed in Exhibit II and this Contract intended for Wholesale Customers’ distribution to their retail customers through their own distribution systems. Except as may be specifically provided in this Contract, Seattle is not responsible for, and Wholesale Level of Service does not include, compliance with Department of Health (“DOH”) standards, including fire flow, emergency back-up and water quality within Water Utility’s retail service area or distribution system. AGENDA ITEM #6. i) Page 10 First Amended and Restated Contract for the Supply of Water City of Renton SECTION II. TERM OF CONTRACT AND GENERAL CONDITIONS II.A. Term of Contract 1. Term. This First Amended and Restated Contract shall be in effect beginning at 12:01 AM on the Effective Date and shall remain in effect until 12:00 AM on January 1, 2062 (“Contract Term”). 2. Effective Date. This First Amended and Restated Contract shall be effective on January 1, 2026 (“Effective Date”). 3. Review of the Contract Term. The parties acknowledge and agree that it is desirable to manage the expiration or extension of this Contract Term prior to expiration, and therefore agree that the Contract Term in Section II.A.1 shall be automatically extended for an additional ten (10) years (“Extension”) on January 1, 2032, and every ten (10) years thereafter (“Extension Date”). The Water Utility may opt out of such extension of the Contract Term by providing written notice to Seattle prior to the Extension Date. If Water Utility opts out of the Extension, Seattle shall plan to supply water to Water Utility for only the remaining Contract Term and shall plan for Water Utility to not purchase any water supplies from Seattle as of the expiration of such Contract Term. 4. Periodic Review and Right to Change Certain Terms and Conditions. The parties may review and change certain terms and conditions governing the sale of water under this Contract by January 1, 2042 (“1st Review”), and January 1, 2062 (“2nd Review”), and by January 1 every 20 years thereafter during the term of this Contract or as soon as practicable after the respective January 1, as follows. a. Mutual Agreement. On or before January 1, 2041, and then again on or before January 1, 2061, and every 20 years thereafter, respectively, Seattle, Water Utility AGENDA ITEM #6. i) Page 11 First Amended and Restated Contract for the Supply of Water City of Renton or any Wholesale Customer may provide the other party and Wholesale Customers with a written proposal to amend the Contract terms. All parties, including Seattle, Water Utility, and other Wholesale Customers, shall consider the proposal(s), if any. If the parties mutually agree to the proposal(s), or as negotiated, prior to January 1, 2042 or January 1, 2062, or every 20 years thereafter, respectively, or a date later than January 1 as may be mutually and reasonably agreed to by the parties to continue negotiations, a written amendment to this Contract shall be approved and executed by both parties and this Contract shall be amended accordingly. b. Seattle's Right to Amend. If the parties are unable to mutually agree on a proposal by Seattle pursuant to subsection II.A.4.a above within the one-year period associated with the 1st Review, or mutually agreed later date, Seattle may propose in writing its desired amendment to the Operating Board by March 31, 2042, or by 90 days past the expiration of a mutually agreed later date. The Operating Board shall review and recommend revisions, if any, to the proposed amendment. Seattle and the Operating Board shall use reasonable efforts to resolve any concerns in the proposal. After 90 days from Seattle's written proposal to the Operating Board, Seattle may propose its desired amendment to the Seattle City Council. If the Operating Board does not agree with Seattle’s proposal, it may submit a revised proposal to the Seattle City Council within 90 days of Seattle’s submission of its proposal to the Seattle City Council. After receiving the Operating Board’s alternate proposal, or after the lapse of the 90 day period for the Operating Board to make an alternate proposal, the Seattle City AGENDA ITEM #6. i) Page 12 First Amended and Restated Contract for the Supply of Water City of Renton Council may then deny both proposals or approve one of them and issue an amendment to this Contract, which shall be in effect for the remaining term of the Contract from the date of issuance, unless later amended pursuant to this subsection II.A.4, or by mutual agreement. Seattle shall not have the right to unilaterally amend the Contract after the First Review period and all subsequent Contract amendments must be mutually agreed to by Seattle and Water Utility. c. Limitation on Seattle's Right to Amend. Notwithstanding subsection II.A.4.b above, Seattle shall not have the right to amend the Contract under that provision in a manner to: (i) reduce its obligation to provide the Full or Partial Water Requirements of Water Utility, as appropriate; (ii) cease to provide wholesale water to Water Utility at an equivalent Wholesale Level of Service as it provides to itself; (iii) charge a higher wholesale rate for water supply and transmission to Water Utility than that charged to the Seattle Retail Distribution System,; (iv) reduce its water quality obligations for the Seattle Regional Water Supply System; (v) change the methodology for calculating Rate of Return on Investment; (vi) restrict Water Utility's right to terminate or reduce its Purchase Commitment,; (vii) disband or significantly reduce the powers of the Operating Board; (viii) amend any Contract provision that will apply only to Water Utility; ix) change the definition of the Seattle Regional Water Supply System; (x) extend or expand its contractual rights to any portion of Water Utility’s retail water distribution systems; (xi) include taxes or surcharges beyond what the water rate setting industry would consider normal in wholesale rates or that are not in accordance with applicable laws and regulations; (xii) amend any Contract AGENDA ITEM #6. i) Page 13 First Amended and Restated Contract for the Supply of Water City of Renton provision relating to Seattle's obligation to approve Water Utility's proposal to introduce Alternate Supplies into Water Utility's retail distribution system as provided in Section II.D.9; (xiii) change the criteria for approval of Alternate Supplies. d. Intent. The purpose and intent of the provisions allowing Seattle a limited right to amend the Contract as provided in Section II.A.4.b-c. are to provide Seattle with flexibility to administer numerous Full and Partial Requirements Contracts in a consistent manner when changes to the Contract are desired by Seattle but are not approved by the Operating Board and/or all of the Wholesale Customers as well as to make reasonable changes in response to changing conditions, laws, and regulations over the course of this long-term Contract. Any proposed amendments to the Contract are subject to the procedures and limitations provided in Section II.A.4.b-c. When Seattle no longer has this limited right to amend, Wholesale Customers may agree to different contract terms which could necessitate the creation of separate Full and Partial Requirements Customer Classes each with their own Wholesale Statements and administered according to each Class’s agreed-to contract terms. II.B. Agreement to Supply and Purchase Water 1. Full or Partial Requirements Commitment. Seattle shall supply, and Water Utility shall purchase, Water Utility’s Full or Partial Water Requirements as specified in Exhibit I, for the term of this Contract, unless amended pursuant to the provisions below. 2. Expansions in Water Utility’s Service Area. Seattle shall supply the Full or Partial Water Requirements, as appropriate, if Water Utility acquires additional service area that is: 1) AGENDA ITEM #6. i) Page 14 First Amended and Restated Contract for the Supply of Water City of Renton located outside of the service area as defined in Water Utility’s Water System Plan in effect on the Effective Date of this Contract and 2) which is not already served with water from the Seattle Regional Water Supply System, subject to a) the availability of water in the Seattle Regional Water Supply System as reasonably determined by Seattle; b) the limitation of Seattle’s Service Area Boundary; and c) Water Utility’s payment of Facilities Charges (“FCs”) for the retail service connections in that additional service area in accordance with Section IV.D. The parties will cooperate to amend, by letter agreement Exhibits I and II, as appropriate, for the limited purpose of documenting the changed circumstances resulting from acquiring the additional service area. 3. Contractions in Water Utility’s Service Area. In the event Water Utility’s entire service area and service responsibilities, or portion thereof, are assumed by or are transferred to another utility or utilities, then this Contract shall become null and void at the time, and to the extent, the assumption or transfer becomes effective; provided, however, 1) this Contract will remain in full force and effect for Water Utility’s remaining service area, if any; and 2) if the transferee of the service area is a Wholesale Customer, Seattle shall provide water to the transferee according to the terms of the transferee's water supply contract with Seattle. Seattle, Water Utility and the transferee Wholesale Customer will cooperate to amend, by letter agreement Exhibits I and II, as appropriate, for the limited purpose of documenting the changed circumstances resulting from the transfer. If the transferee is not a Wholesale Customer, then Seattle may offer the transferee a water supply contract for the transferred service area subject to terms and conditions as Seattle shall determine. 4. Annexation by Seattle. If Water Utility’s entire service area, or a portion thereof, is AGENDA ITEM #6. i) Page 15 First Amended and Restated Contract for the Supply of Water City of Renton annexed to Seattle, then this Contract shall become null and void to the extent of the annexation and upon the effective date of Seattle's assumption of Water Utility's water system or a portion thereof. In the event Water Utility has remaining service area after the assumption, this Contract will remain in full force and effect for the remaining service area, and Seattle and Water Utility will cooperate to amend, by letter agreement Exhibits I and II, as appropriate, for the limited purpose of documenting the changed circumstances resulting from the annexation of a portion of Water Utility’s service area. 5. Water Utility’s Right to Terminate or Reduce Purchase Commitment. Water Utility may terminate or reduce its Purchase Commitment subject to the terms and conditions set forth below. a. Notice Required: i. Timing: Water Utility must submit 5 years’ advance written notice (“Notice Period”) to Seattle indicating its desire to terminate or reduce its Purchase Commitment (“Notice”), except as provided below. (a) If Seattle amends the terms and conditions of this Contract pursuant to Section II.A.4.b above, Water Utility must submit 1 years’ advance written notice to Seattle to terminate its Purchase Commitment within 1 year of the effective date of the amendment. (b) Any notice previously issued by Water Utility to Seattle prior to December 31, 2022 in accordance with the terms and conditions of the Contract then in existence shall be effective to terminate or reduce Water Utility’s Purchase Commitment under the Contract. All such notices will be described in Exhibit I. AGENDA ITEM #6. i) Page 16 First Amended and Restated Contract for the Supply of Water City of Renton ii. Contents of Notice: The Notice shall include the following: (a) A resolution of Water Utility’s governing body approving the Notice and acknowledging Water Utility is subject to the relevant conditions in Section II.B.5.c. (b) A description of the relevant information, including but not limited to: a description of any new Alternate Supply consistent with the information in Exhibit I; the scope (e.g. termination or reduction, amount); and brief description of actions necessary to put the proposed Alternate Supply into use (e.g. regulatory approvals, capital projects, water quality analysis, contract approvals, etc.) or that it is terminating based on Section II.B.5.a.i.(a) above. (c) Except for a termination pursuant to Section II.B.5.a.i.(a) above, Water Utility may include a request for a Notice Period shorter than 5 years, which request shall include a justification. (d) Water Utility will provide additional information upon reasonable request by Seattle or the Operating Board. iii. Pre-Notice Request for Calculation of Stranded Costs: Water Utility shall have the right to request Seattle to perform a calculation of Stranded Costs that would be incurred by Water Utility if it issues a Notice to terminate or reduce its Purchase Commitment (“Pre-Notice Request”). A Pre-Notice Request shall be made by Water Utility in writing and shall include the amount of the reduction in its Purchase Commitment and the anticipated effective date of such reduction. Seattle shall respond to Water Utility’s AGENDA ITEM #6. i) Page 17 First Amended and Restated Contract for the Supply of Water City of Renton Pre-Notice Request by providing a written estimate to Water Utility within thirty (30) days (“Pre-Notice Calculation Estimate”). Water Utility agrees to provide Seattle with additional information requested by Seattle that is necessary to allow Seattle to perform the Pre-Notice Calculation Estimate. The Pre-Notice Calculation Estimate will not be binding on either party and will be based on Stranded Cost only; any Avoided Cost calculation will not be included. The Pre-Notice Calculation Estimate shall be completed as described in Exhibit IX, will be based on the current asset schedule, and will not include any changes that occur or information that becomes known between the estimate and the Notice. b. Effective Date: The termination or reduction will become effective 5 years from the date of the Notice, or 1 year in the case of a termination under Section II.B.5.a.i.(a). Alternatively, if Water Utility requested, and the Operating Board approved a shorter notice period, the termination or reduction will become effective upon the date approved by the Operating Board. In either case, Water Utility must meet the relevant conditions in Section II.B.5.c. below for the termination or reduction to become effective. Additionally, upon Operating Board approval, the parties may mutually agree in writing to extend the 5-year or approved shorter Notice Period for a reasonable and specific amount of time to allow Water Utility additional time to meet the relevant conditions or complete actions to put the Alternate Supply into use. The Operating Board may approve a shorter or extended notice period upon a determination that it is in the best interests of the Seattle Regional Water Supply System. Water Utility may rescind its Notice in writing any time prior to the effective AGENDA ITEM #6. i) Page 18 First Amended and Restated Contract for the Supply of Water City of Renton date. For any notice other than those provided under Section II.B.5.a.i.(b), if Water Utility has not met the conditions by the effective date, the Notice will be rescinded automatically. In either case, when a Notice is rescinded, the Contract will remain in full force and effect. c. Conditions/Effect of Termination or Reduction: i. Termination: Water Utility will be subject to the following conditions if it terminates its Purchase Commitment in its entirety: (a) Water Utility will lose representation or membership on the Operating Board upon the date of the Notice. (b) This Contract will terminate in its entirety as of the effective date of the Notice as specified in Section II.B.5.b above. (c) Water Utility will pay the full costs for Seattle to decommission Water Utility’s Service Connections as listed in Exhibit II. This obligation will survive the termination of the Contract. (d) Water Utility will pay, or receive credit, as the case may be, for its proportional share of any deficit or surplus running balances in any cost pool as of the end of the year of the Effective Date, which shall be prorated by Water Utility’s share of total demand (e.g. flow) since the most recent year the running balances were zero. (e) Water Utility will pay the Final Net Stranded Cost Payment, or receive the Final Net Billing Credit, as described below in Section II.B.5.c.ii (e)(i) as determined by Seattle pursuant to Exhibit IX. (f) Seattle, in its sole discretion, may offer Water Utility a new water AGENDA ITEM #6. i) Page 19 First Amended and Restated Contract for the Supply of Water City of Renton supply contract if Water Utility wants to purchase water from the Seattle Regional Water Supply System again in the future, however any new contract will be subject to: i) Seattle’s determination of the availability of water; ii) no guarantee of a Full or Partial Requirements Contract; and iii) terms and conditions as Seattle may require, including but not limited to, special charges and rates, provided the terms and conditions are consistent with the Ratemaking Principles in this Contract. ii. Reduction: Water Utility will be subject to the following conditions if it reduces its Purchase Commitment in part: (a) The parties will cooperate to amend, by letter agreement, Exhibits I and II, as appropriate, for the limited purpose of documenting the reduction in Water Utility’s Purchase Commitment, the new Alternate Supply, and the amount and effective date of any Purchase Commitment reductions. Water Utility’s Full or Partial Requirements Contract may be converted to a Partial Water Requirements or Qualified Partial Water Requirements Contract, as the case may be, consistent with this Section II.B.5.c. (b) Water Utility will pay the full costs for Seattle to decommission Water Utility’s Service Connections listed in Exhibit II or add new Service Connections, if appropriate. (c) Water Utility will pay the Final Net Stranded Cost Payment, or will receive the Final Net Billing Credit, as described below in AGENDA ITEM #6. i) Page 20 First Amended and Restated Contract for the Supply of Water City of Renton II.B.5.c.ii(e)(i), if applicable, as determined by Seattle pursuant to Exhibit IX, unless Water Utility provided Seattle with written notice of its intention to reduce its purchase commitment between January 1, 2009 and December 31, 2022. (d) Will receive a Facilities Charge Allowance pursuant to Section IV.D.2.c. (e) For reductions related to the use of new or increased production of Independent Supplies only, Water Utility: (i) May be eligible for an Avoided Cost offset to Stranded Costs (or if the offset is large enough, a Net Billing Credit) as determined by Seattle pursuant to Exhibit IX and if Seattle determines the Independent Supply: 1. Will be used entirely within Water Utility’s retail distribution system; 2. Results in Avoided Costs of future supply for the Seattle Regional Water Supply System; and 3. Meets all applicable eligibility criteria that Seattle may develop in consultation with the Operating Board to ensure the offset (or Net Billing Credit) is only applicable to independent supplies that provide reliable, high- quality water, which criteria will include, but not be limited to operational reliability, water quality, and environmental impact. AGENDA ITEM #6. i) Page 21 First Amended and Restated Contract for the Supply of Water City of Renton (f) For reductions related to the use of new or increased Purchased Supplies, Water Utility: (i) Will be converted to a Qualified Partial Requirements Contract. If Water Utility loses its Purchased Supply, in whole or in part, and wants to purchase additional water from the Seattle Regional Water Supply System to replace the lost Purchased Supply, the purchase may be subject to: availability of water as determined by Seattle; or terms and conditions such as special charges to convert back to a Full or Partial Requirements Contract, provided the terms and conditions are consistent with the Ratemaking Principles in this Contract. (ii) May not use Purchased Supplies in a manner that will have adverse impacts on the Seattle Regional Water Supply System due to constraints or other terms and conditions in the contract for the Purchased Supply. Seattle, in consultation with the Operating Board, reserves the right to require terms and conditions to protect against adverse impacts or constraints, such as prohibiting impacts to seasonal shaping or peak demands or waiving rights under Section II.C.2. (iii) Exhibit I will be updated by Seattle whenever Water Utility or other Wholesale Customer terminates or reduces purchases pursuant to this section and such update will be provided to all Wholesale Customers and the Operating AGENDA ITEM #6. i) Page 22 First Amended and Restated Contract for the Supply of Water City of Renton Board. d. Not Considered Reduction: For the purposes of this Section II.B.5, reductions under the following circumstances are not considered a reduction of Water Utility’s Purchase Commitment and this Section II.B.5 will not apply: i. The use of Emergency Supplies listed in Section I of Exhibit I; ii. Customer-driven Demand Fluctuations; iii. Participation in the Regional Water Conservation Program; iv. Participation in Regional Shortage Management Contingency Plan or similar plans requiring restrictions on water deliveries. v. Contraction of Water Utility’s service area pursuant to Sections II.B.3 and 4 above. vi. Acquisition of additional Independent Supplies through a merger or acquisition of another water purveyor that is not currently a customer of Seattle. vii. Reductions defined in any notice previously issued by Water Utility to Seattle prior to December 31, 2022 in accordance with the terms and conditions of the Contract then in effect. viii. Reductions in demand, or portions thereof, that result in aggregate reductions under this Contract for Water Utility that are equal to or less than the Automatically Allowed Reduction applicable to Water Utility, which shall be equal to 5.0% of Water Utility’s average purchases from Seattle for the five most recent calendar years at the time of Water Utility’s initial Purchase Commitment Reduction as described in Exhibit I. AGENDA ITEM #6. i) Page 23 First Amended and Restated Contract for the Supply of Water City of Renton ix. Demand fluctuations that are out of Seattle or Water Utility’s control and result from new laws or regulations, including legal rulings, that require the use of reuse water by Water Utility. 6. New or Extended Water Supply Contracts. The full terms and conditions of any new, amended, or extended water supply contracts, along with Seattle’s analysis and explanation of the same, will be submitted to the Operating Board for review and comment prior to adoption. II.C. Continuity of Service within the Term of the Contract 1. Parity of Service. Seattle shall provide wholesale water to Water Utility at an equivalent Wholesale Level of Service that it provides to the Seattle Retail Distribution System. 2. Emergency and Water Shortage Contingency Planning. Seattle shall adopt, as part of its Water System Plan, emergency plans to provide for water supply in the event of drought or disaster. It is recognized by both parties that Seattle may adopt plans to manage emergencies or water shortages that are implemented on a regional basis in order to meet an emergency condition or a water shortage that impacts the Seattle Regional Water Supply System and may offer trainings or coordinate emergency preparedness activities amongst water utilities within the Seattle Regional Water Supply System. Seattle will follow the Seattle Water Shortage Contingency Plan or any other emergency plan in effect as of the effective date of this Contract, and as may be added or amended from time to time. The Operating Board may review and recommend revisions to any amended water shortage contingency plans or other relevant emergency plan before Seattle adopts the plan. Restrictions placed on water deliveries under any adopted plan will be applied consistently to Water Utility, other Wholesale Customers, and the Seattle Retail AGENDA ITEM #6. i) Page 24 First Amended and Restated Contract for the Supply of Water City of Renton Distribution System. Water Utility shall assist with and support all procedures or emergency plans, including cooperating with restrictions on water deliveries, that are implemented under Seattle’s then current Water Shortage Contingency Plan, or another adopted emergency plan that impacts the Seattle Regional Water Supply System. Water Utility is responsible for adopting its own plans for emergencies or water shortages from Alternate Supplies or within its retail distribution system. Seattle may offer assistance or coordinate with Water Utility to make mutual aid plans together, including via WA WARN or other platform as mutually agreed. 3. Other Emergencies or Interruptions to Service. It is recognized by both parties that Seattle may temporarily interrupt or reduce deliveries of water or revise conditions of service (e.g. minimum hydraulic gradient) (collectively “Temporary Interruptions”), to Water Utility if Seattle determines that Temporary Interruptions are necessary or reasonable in case of system emergencies or in order to conduct necessary operations and maintenance, including but not limited to, installing equipment, making repairs, replacements, investigations and inspections or performing other maintenance work on the Seattle Regional Water Supply System. Except in cases of emergency, and in order that Water Utility's operations will not be unreasonably interrupted, Seattle shall give Water Utility and the Operating Board reasonable notice of any Temporary Interruptions, the reasons for and the probable duration. Seattle shall use its best efforts to minimize Temporary Interruptions to Water Utility. 4. Waiver of Charges. If Temporary Interruptions require that Water Utility draw water supply in a manner that would potentially subject Water Utility to demand charges under Section IV.G.5.a, Seattle shall waive the demand charges during the period of the AGENDA ITEM #6. i) Page 25 First Amended and Restated Contract for the Supply of Water City of Renton Temporary Interruption. II.D. Water Quality 1. Seattle Regional Water Supply System. Seattle shall be responsible for water quality within the Seattle Regional Water Supply System. Seattle and Water Utility shall work collaboratively to address water quality concerns raised by Water Utility. The Water Utility may request Operating Board review of any water quality concerns that it believes are not reasonably resolved by Seattle. Seattle shall construct, operate and maintain water quality treatment and other facilities and programs and use its best efforts to carry out its water quality responsibilities to deliver safe, high-quality water in the most cost-effective manner for the region. 2. Applicable Standards. Seattle shall at all times during the term of this Contract deliver water through the end of the Service Connection(s) that meets or exceeds all applicable Federal and State regulations as may be amended from time to time. The parties acknowledge and agree that a minor regulatory violation (e.g. missed sample collection) is not considered a default of Seattle’s water quality obligations under this Section II.D except to the extent it is significant in duration and risk to public health and Seattle has not made good faith efforts to correct the violation consistent with the applicable regulations. 3. System-wide Water Quality Program. Seattle, in consultation with the Operating Board, may develop and implement a system-wide water quality program, portions of which will guide its obligations for water quality within the Seattle Regional Water Supply System under this Section II.D consistent with applicable regulatory requirements, industry standards and operational needs. The system-wide program may include, but not be AGENDA ITEM #6. i) Page 26 First Amended and Restated Contract for the Supply of Water City of Renton limited to objectives, policies and procedures, and roles and responsibilities for water quality treatment, regulatory and non-regulatory monitoring, reporting, water quality incident response, cross-connection control, and best or adaptive management practices. Seattle will allocate these program costs to the appropriate cost pools as provided in Section IV. 4. Role of Operating Board. The Operating Board may: a. review and recommend revisions to the relevant portions of Seattle’s system-wide water quality program related to the Seattle Regional Water Supply System or obligations under this Contract; b. recommend best or adaptive water quality management practices for the Seattle Regional Water Supply System; c. approve allowances for flushing when Seattle or Operating Board determines flushing is the best available option to maintain or improve regional water quality; d. review and recommend revisions to the water quality criteria Seattle adopts and applies prior to: (1) approving the introduction of a new water source into the Seattle Regional Water Supply System or into Water Utility’s retail distribution system if the new water source will be mixed with water from the Seattle Regional Water Supply System under Section II.D.9 and Seattle can establish that the revisions to the water quality criteria are related to the Seattle Regional Water Supply System, or (2) determining whether a new or increased Independent Supply may be eligible for an offset or Billing Credit under Section II.B.5.c.ii; e. approve any changes to the water quality obligations under this Section II.D upon recommendation by Seattle, resulting from changes in regulatory requirements during the AGENDA ITEM #6. i) Page 27 First Amended and Restated Contract for the Supply of Water City of Renton term of this Contract. The parties will amend this Section II.D by letter agreement in the event the Operating Board approves changes to the water quality obligations under this subsection; and f. establish a technical subcommittee(s) to assist in its roles under this Section II.D.4. 5. Distribution Systems. Water Utility shall be responsible for compliance with all applicable federal, state, and local water quality laws and regulations with in its retail distribution system. Seattle is not responsible for water quality compliance for water from Alternate Supplies. 6. Monitoring. Monitoring generally consists of sample collection, testing and reporting. Seattle is responsible for water quality monitoring for the Seattle Regional Water Supply System and Water Utility is responsible for water quality monitoring for its retail distribution system. Notwithstanding the foregoing, the parties acknowledge and agree that it is in the best interests of the region for Seattle to perform certain monitoring responsibilities as described below within those Wholesale Customers’ retail distribution systems that have not opted out of the monitoring services as described below and to include the costs of such monitoring services in the appropriate cost pools under Section IV of this Contract. Seattle will not monitor the water within a Wholesale Customer’s retail distribution system that opts out of monitoring services. A Wholesale Customer that elects to opt out of Seattle’s monitoring services shall submit a written notice to Seattle of its election to opt out of these monitoring services. Water Utility may contract with Seattle to perform water quality monitoring and reporting services that are in addition to Seattle’s obligations under this Section II.D as an elective service under Section IV.F. of this Contract. Specific monitoring procedures for Rules identified in the Federal Safe AGENDA ITEM #6. i) Page 28 First Amended and Restated Contract for the Supply of Water City of Renton Drinking Water Act (40 CFR 141) and Chapter 246-290 WAC are described below: a. Surface Water Treatment Rule (“SWTR”) and Groundwater Rule (“GWR”). Seattle shall perform all monitoring for the water sources it owns in the Seattle Regional Water Supply System, and any chlorine residual sample collection and testing in Water Utility’s distribution system, which is done in conjunction with Seattle’s TCR monitoring consistent with Section II.D.6.c below. Seattle will report SWTR and GWR results to WA DOH and chlorine residual data to Water Utility. Water Utility is responsible for any applicable monitoring for its Independent or other Alternate Supplies and any other chlorine residual monitoring within its retail distribution system required under the SWTR. b. Lead and Copper Rule (“LCR”). Seattle shall perform monitoring within retail distribution systems for Wholesale Customers who hold Full Requirements Contracts under a regional LCR program. If Water Utility is a holder of a Full Requirements Contract, Water Utility is responsible for coordinating the location and collection of samples and reporting results to property owners as part of the regional LCR program. If Water Utility is a holder of a Partial Requirements Contract, Water Utility is responsible for all monitoring for LCR within its retail distribution system. In that case, Water Utility may elect to use the Seattle WQ Lab to test any LCR samples it collects as an Elective Service pursuant to Section IV.F. c. Total Coliform Rule (“TCR”). Seattle shall perform all routine sample collection and testing within Water Utility’s retail distribution system, unless Water Utility notifies Seattle in writing that it will be responsible for all routine TCR AGENDA ITEM #6. i) Page 29 First Amended and Restated Contract for the Supply of Water City of Renton monitoring within its retail distribution system. When Seattle performs routine TCR monitoring, Seattle shall report results to Water Utility and WA DOH, and Water Utility shall verify number and location for routine sample collection. Water Utility is responsible for performing any repeat sample collection, testing, and required reporting to WA DOH. Water Utility may elect to use the Seattle WQ Lab to test any samples it collects as an Elective Service under Section IV.F and Seattle will report results to Water Utility and WA DOH. d. Disinfection By-Products Rule (“DBP”). Seattle shall perform all routine sample collection at designated sample stands and testing of those samples within Water Utility’s retail distribution system unless Water Utility notifies Seattle in writing that it will be responsible for all DBP monitoring within its retail distribution system. When Seattle performs routine DBP monitoring, Seattle shall report results to Water Utility and WA DOH, and Water Utility shall verify number and location for sample collection. Water Utility is responsible for any routine sample collection at sites that are not designated sample stands and any additional sample collection, testing of samples it collects, and required reporting to WA DOH. Water Utility may elect to use the Seattle WQ Lab to test any samples it collects as an Elective Service under Section IV.F and Seattle will report results to Water Utility and WA DOH. e. Unregulated Contaminant Monitoring Rule (“UCMR”). Seattle shall perform all applicable monitoring required under the UCMR within the Seattle Regional Water Supply System. Water Utility will be responsible for all applicable monitoring required under the UCMR within its retail distribution system. Upon AGENDA ITEM #6. i) Page 30 First Amended and Restated Contract for the Supply of Water City of Renton recommendation by Seattle, the Operating Board may approve an alternate allocation of monitoring responsibilities under the UCMR when it is in the best interests of the Seattle Regional Water Supply System. The costs of any monitoring Seattle performs within the Seattle Regional Water Supply System or as approved by the Operating Board will be allocated to the appropriate cost pool under Section IV of this Contract. f. Other Monitoring. Seattle shall perform any other regulatory or non-regulatory monitoring within the Seattle Regional Water Supply System it deems necessary to ensure safe, high quality water; including but not limited to, other source and miscellaneous monitoring; taste and odor sampling; and emerging contaminants. Water Utility will be responsible for any additional regulatory or non-regulatory monitoring within its retail distribution system. 7. Water Quality Reporting to Regulatory Agencies and Retail Customers (Consumer Confidence Reports). Each Wholesale Customer, including Water Utility, and Seattle, at its sole cost, is responsible for periodic water quality notifications and reporting to its respective retail customers and regulatory agencies as required by law. Seattle shall provide Water Utility all relevant water quality monitoring data consistent with its responsibilities in Section II.D.6 above in a timely manner so that Water Utility may incorporate the water quality data in its required notifications or reports and Seattle may offer public notification assistance, training, or other public notification resources to Water Utility. 8. Flushing. Water Utility shall be solely responsible for flushing water mains within its retail distribution system. Flushing allowances will be provided by Seattle when Seattle AGENDA ITEM #6. i) Page 31 First Amended and Restated Contract for the Supply of Water City of Renton or the Operating Board determine flushing is the best available option to maintain or improve regional water quality. 9. New Water Sources. To ensure public health and regional reliability, the parties agree that blending of water supplies is a matter of regional importance to be managed with the cooperation of the Water Utility, the Operating Board, and Seattle. Therefore, before Water Utility may introduce a new Alternate Supply into its retail distribution system that will mix with water from the Seattle Regional Water Supply System, Seattle must approve the Alternate Supply in writing as a compatible source after an evaluation using customary and reasonable water quality criteria developed in consultation with the Operating Board from time to time. Seattle is required to approve the proposed Alternate Supply when the evaluation establishes that the proposed Alternate Supply meets the following criteria: 1) satisfactory results from a blending study to determine the compatibility of the new Alternate Supply with existing sources already in the Seattle Regional Water Supply System or Water Utility’s retail distribution system; 2) the appropriate method and level of treatment and the probable distribution area of the new Alternate Supply within Water Utility’s retail distribution system; and 3) satisfactory evidence that Water Utility has obtained all necessary and appropriate regulatory permits, reviews, agreements and approvals for rights to and operational use of the Alternate Supply. The requirements under this Section II.D.9 are in addition to any other requirements, e.g. Section II.B.5, under this Contract to add a new Alternate Supply. 10. Transfers Outside Water Utility’s Retail Distribution System. If Water Utility has approval pursuant to Section III.B and transfers water from the Seattle Regional Water Supply System through its retail distribution system to the distribution system of another AGENDA ITEM #6. i) Page 32 First Amended and Restated Contract for the Supply of Water City of Renton water utility, Water Utility, the other water utility, or both, shall be fully responsible for meeting all applicable water quality standards related to the transfer of such water between their respective systems. Seattle will not be responsible for water quality for water transferred outside of Water Utility’s retail distribution system. II.E. Regional Water Conservation Program The parties acknowledge and agree that conservation is an important ongoing tool to manage water supply resources and that a regional program, implemented collaboratively between Seattle and Wholesale Customers, to assist retail customers in using water efficiently will help defer development of New Supply Facilities and meet applicable regulations and agreements including, but not limited to, Washington State’s Municipal Water Law (Chapter 90.03 RCW, as may be amended from time to time) and associated Water Use Efficiently (WUE) Rule (WAC 246-290 Part 8, as amended from time to time), Seattle’s 2000 Cedar River Habitat Conservation Plan (HCP) and the 2006 Muckleshoot Indian Tribe (MIT) Settlement Agreement. As a condition of service under this Contract, Water Utility agrees to participate in the Regional Water Conservation Program (“Program”), as it may be amended from time to time during the term of this Contract, consistent with the Program guidelines below. 1. Program Elements. The Regional Water Conservation Program generally consists of the adoption of a regional WUE goal, good faith participation by all Wholesale Customers and Seattle, measurement of performance toward the regional WUE goal on a regional basis, and a combination of measures such as education, technical assistance and financial incentives to achieve the regional WUE goal. 2. Role of Operating Board. The Operating Board will approve the regional WUE goal subject to the additional approval under Section II.E.5 below and the total Program AGENDA ITEM #6. i) Page 33 First Amended and Restated Contract for the Supply of Water City of Renton budget subject to further approval by Seattle City Council, and set the strategic priorities for the Program consistent with any applicable requirements from regulations, agreements or orders. The Operating Board will also determine the cost recovery mechanism for the infrastructure costs of the Program, i.e. New Supply Rates or FCs, pursuant to Section IV.C.2.b. The Operating Board may also establish and provide strategic direction to a technical subcommittee of the Operating Board, the Conservation Technical Forum (“CTF”), comprised of program level staff from each Wholesale Customer and Seattle. 3. Role of Conservation Technical Forum. The CTF participates in designing the Regional Water Conservation Program, consistent with the strategic direction from the Operating Board, and may include review or generation of proposed Program elements or measures. 4. Role of Seattle. Seattle will administer the Regional Water Conservation Program, consistent with the approved regional WUE goal and total Program Budget, Program priorities and in consultation with the CTF. Administration includes, but is not limited to: staffing, including any consultants, to implement the Program; maintaining the Program website; maintaining a system to accept, process, and pay rebates; providing technical assistance to retail customers; developing template education and outreach materials for Wholesale Customers and Seattle to use in their retail distribution service areas (“Program materials”); coordinating certain regional marketing efforts with CTF; and providing each Wholesale Customer, including Water Utility, information related to achievement of the regional WUE goal and Program activity level within their respective retail distribution service areas. AGENDA ITEM #6. i) Page 34 First Amended and Restated Contract for the Supply of Water City of Renton 5. Role of Wholesale Customers. At their own cost and expense, Seattle and each Wholesale Customer, including Water Utility, is responsible for marketing the Program using the Program materials within their retail service area that are in addition to any regional marketing efforts coordinated with CTF; adopting the regional WUE goal by their governing body; any required reporting of the regional WUE goal and performance to the State and their respective retail customers; and data collection as needed to track the regional WUE goal in their respective retail distribution systems. 6. Conservation in Addition to the Regional Program. Water Utility may elect to implement its own water conservation program or measures, in addition to the Regional Water Conservation Program, at its own discretion and its sole cost. 7. Postponing the Need for New Supply Facilities. In order to avoid the necessity of developing or acquiring New Supply Facilities for as long as reasonably practicable, any water saved through the Regional Water Conservation Program shall be dedicated first to the municipal water supply purposes of the Seattle Regional Water Supply System before any other use of such water may be undertaken. 8. Responding to changes in Conservation Program requirements. The parties acknowledge and agree that changes in conservation regulation, agreements, and other conservation requirements may occur from time to time. Upon Seattle’s request, Water Utility will cooperate to amend, by letter agreement, this Contract as appropriate, for the limited purpose of documenting adjustments to the Regional Water Conservation Program or documenting other conservation activities resulting from such changed circumstances. II.F Cedar River Watershed Education Center and Other Facilities Water Utility may use the Cedar River Watershed Education Center up to two times per year AGENDA ITEM #6. i) Page 35 First Amended and Restated Contract for the Supply of Water City of Renton without charge, subject to availability. Water Utility may request occasional guided tours of the Cedar River Watershed or other facilities in the regional system. Water Utility may coordinate any use under this provision with the Wholesale Contracts Manager. SECTION III. CONDITIONS OF SERVICE III.A. Minimum Hydraulic Gradient and Flow Rates 1. Initial Minimum and Flow Rates. Seattle shall operate and maintain the Regional Facilities, and Subregional Facilities, if applicable, as necessary to maintain the minimum hydraulic gradients at each Service Connection as long as Water Utility does not exceed the flow rates at each Service Connection that are allocated from and based on maximum day demand, both of which are more specifically described in Exhibit II for each Service Connection. Seattle and Water Utility will include this information in their respective water system plans. Seattle, in consultation with the Operating Board, may increase the flow rates in Exhibit II from time to time based on updated average daily demand projections subject to transmission system capacity. Water Utility shall use best efforts to operate and maintain its retail distribution system in a manner consistent with the flow rates described in Exhibit II. Water Utility may use all or some of the flow rates allocated to each Service Connection on any other Service Connection that is located on the same Pipeline Segment Number, but in that case, the minimum hydraulic gradients are not guaranteed. Water Utility shall avoid taking water from a Service Connection in a manner that exceeds the flow rates for that Service Connection (or the aggregate flow rate for the Service Connections on the same Pipeline Segment Number) or take the flow at a rate faster than 24 hours, e.g. excessive intraday peaking, which could impact Regional Facilities or other Wholesale Customers downstream or upstream of Water Utility’s AGENDA ITEM #6. i) Page 36 First Amended and Restated Contract for the Supply of Water City of Renton Service Connections. Upon notice by Seattle, Water Utility shall immediately reduce water deliveries at the Service Connection to no more than the flow rates for a Service Connection (or aggregate on same Pipeline Segment Number) in Exhibit II. In the event that Water Utility does not reduce deliveries as required under this provision, Seattle may install and operate flow restricting devices at the Service Connection(s), at Water Utility’s expense. Water Utility shall maintain sufficient storage in its retail distribution system to manage peak demands in excess of the flow rates in Exhibit II and may be subject to the Demand Charges pursuant to Section IV.G.5.a. if storage is insufficient. The parties will amend Exhibit II by letter agreement to reflect any modifications pursuant to this Section III.A.1. 2. Modifications. If Seattle proposes a capital improvement project that would result in needing to modify the minimum hydraulic gradient and the corresponding flow rates at one or more Service Connections, Seattle may modify the minimum hydraulic gradient and corresponding flow rates described in Exhibit II if Seattle finds, and the Operating Board concurs, that Seattle’s proposed capital improvement project would benefit the Seattle Regional Water Supply System and that it is feasible from an economic, land use and engineering perspective for Water Utility to adapt to the modification at its expense. Seattle may make these modifications only once during any fifteen (15) year period provided that four (4) years advance written notice is given to Water Utility unless a shorter notice is approved by the Operating Board. The parties will amend Exhibit II by letter agreement to reflect any modifications pursuant to this Section III.A.2. 3. New or Changed Service Connections. Seattle, in consultation with the Operating Board, and Water Utility may mutually agree, to new or relocated Service Connections or AGENDA ITEM #6. i) Page 37 First Amended and Restated Contract for the Supply of Water City of Renton adjustments to the minimum hydraulic gradients and corresponding flow rates. The parties will amend Exhibit II by letter agreement to reflect any changes under this provision. Any costs associated with a new or changed Service Connection will be allocated consistent with Section IV.C.1.c. III.B. Resale to Other Parties Water Utility may sell, or supply for emergency purposes, water supplied by Seattle to other water utilities located outside of Water Utility's existing or future retail service area and within Seattle’s Service Area Boundary, or to Seattle’s other Wholesale Customers, block customers or retail customers, only upon the prior written consent of Seattle (or oral, in case of emergency), which consent may include any terms and conditions or limitations Seattle may require. Agreements for resale or emergency supply of water by Water Utility listed in Sections I or IV of Exhibit I, as appropriate, are hereby approved by Seattle subject to whatever written terms, conditions and limitations that Seattle has imposed on such resale or emergency supply. III.C. Interconnection With Other Systems 1. Prohibition on Interconnection. Water Utility shall not interconnect any part of its retail distribution system supplied with water from Seattle with other water systems without the prior written approval of Seattle, in consultation with the Operating Board, or, in case of emergency, upon oral approval by Seattle, which shall not be unreasonably withheld. Any such interconnection also shall be subject to the approval of the Washington State Department of Health and the installation of a meter. The interconnecting systems must be in compliance with all applicable laws and regulations including the requirement that they have a valid operating permit issued by the Washington State Department of Health. The parties will revise Exhibit I by letter AGENDA ITEM #6. i) Page 38 First Amended and Restated Contract for the Supply of Water City of Renton agreement to include any interconnections approved under this Section III.C.1. 2. Requests by Seattle to Interconnect. Seattle may request that Water Utility interconnect its retail distribution system to the distribution system of an adjacent Wholesale Customer for the purposes of wheeling water from the Seattle Regional Water Supply System through Water Utility’s retail distribution system to the adjacent Wholesale Customer, provided that the adjacent Wholesale Customer has agreed to be subject to the provisions of Section III.C.2.b below. Water Utility shall comply with that request subject to the terms and conditions set forth below. a. Requirement for Interconnection. If Water Utility does not consent to Seattle's request for interconnection, Seattle may submit its request to the Operating Board. Water Utility may present the reasons it does not consent to the interconnection to the Operating Board, and may include alternatives for consideration to serve the adjacent Wholesale Customer. The Operating Board shall consider the matter. Upon (a) a written finding by the Operating Board that the proposed interconnection with an adjacent Wholesale Customer for wheeling purposes is feasible taking into account Water Utility's capabilities, limitations, and obligations, (b) a written finding by the Operating Board that such interconnection benefits the Seattle Regional Water Supply System and (c) a written demand of the Operating Board that Water Utility carry out the interconnection, Water Utility shall be required to interconnect its facilities to the adjacent Wholesale Customer for the purposes of wheeling water to that Wholesale Customer through its retail distribution system, provided that the adjacent Wholesale Customer has agreed to be subject to the provisions of Section III.C.2.b below. AGENDA ITEM #6. i) Page 39 First Amended and Restated Contract for the Supply of Water City of Renton b. Payment and Indemnity. Seattle will require that the adjacent Wholesale Customer agree: 1) to perform or cause to perform the interconnection, at adjacent Wholesale Customer’s cost, in a location and according to specifications and a schedule acceptable to Seattle and Water Utility that do not unduly disrupt Water Utility’s operations; 2) pay Water Utility its actual costs incurred to review, inspect and accept the installation of the interconnection; 3) pay Water Utility a reasonable rate or charge for the cost of wheeling the water to the adjacent Wholesale Customer as determined by the Water Utility; and 4) indemnify Water Utility from any liability that may result from operating the interconnection to deliver water to the adjacent Wholesale Customer. The Operating Board may adopt a standard methodology based on industry standards for calculating costs that ensures that Water Utility is fairly compensated for wheeling water through its retail distribution system. The adjacent Wholesale Customer may request review of Water Utility's wheeling rate by the Operating Board. The Operating Board shall have the authority to revise any rate that it determines is in excess of the Water Utility's full costs of owning, operating, maintaining, repairing and replacing and supporting the water facilities necessary to wheel water to the adjacent Wholesale Customer. III.D. Development of Seattle Regional Water Supply System Infrastructure Final decisions and authority to approve construction of capital infrastructure related to the Seattle Regional Water Supply System shall rest with the Seattle City Council. Capital construction activities include, but are not limited to installations, renewals, replacements, upgrades, expansions, and any other costs included in Seattle’s Capital Improvement Plan as more AGENDA ITEM #6. i) Page 40 First Amended and Restated Contract for the Supply of Water City of Renton particularly described in Section VI.D. III.E. Metering Equipment 1. Service Connection Meters. Seattle shall own and perform reading, testing, cleaning, routine maintenance and recalibration on the meters within each Service Connection to measure the amount of water delivered to Water Utility through the Service Connection pursuant to this Contract. Seattle shall perform all other work on the Service Connections including major maintenance, repairs, and replacements, at Water Utility’s expense regardless of the cause, provided that the cause is consistent with AWWA and safety standards and practices (e.g. major maintenance, repairs and replacements) except to the extent the costs are a result of 1) Seattle’s negligence, or 2) a meter failure within 5 years of the original installation; in which for both cases, the costs shall be allocated to the Existing Regional System Cost Pool. Water Utility shall operate and maintain its retail distribution system in a manner that the water flowing through the Service Connection meter operates within the normal operating range for the meter as specified by the manufacturer. In the event Seattle fails to conduct routine maintenance on the meters, including vault structures, Water Utility may notify Seattle of its failure and request that Seattle conduct the necessary and appropriate maintenance within a period of 90 days. Water Utility may in its discretion install additional water meters within Water Utility's water system to measure the supply of water from Seattle under this Contract. In the event of a discrepancy in meter readings, the parties will work in good faith to resolve the discrepancy. 2. Deliveries to Seattle. Until such time as Seattle determines it to be economical to install metering devices to measure the amount of water delivered from the Seattle Regional AGENDA ITEM #6. i) Page 41 First Amended and Restated Contract for the Supply of Water City of Renton Water Supply System to the Seattle Retail Distribution System, the amount of water delivered to the Seattle Retail Distribution System shall be measured indirectly by subtracting the metered water delivered to all of Seattle’s Wholesale Customers and other wholesale customers, e.g. block contract holders, from 98% of the total amount of water exiting Seattle’s sources of supply as measured by the supply meters. Seattle shall perform routine maintenance and recalibration of its supply meters in accordance with industry standards to ensure the accuracy of the data and information being provided by the supply meter. SECTION IV. COST OF WATER SUPPLY & TRANSMISSION Cost-based rates are a water industry accepted practice and the historical practice of Seattle and the Wholesale Customers. The ratemaking principles, policies and methodologies set forth in this Section IV are intended to meet the objective of equitable and cost-based rates. IV.A. Ratemaking and Cost-allocation Principles The parties will apply the following general principles and policies to the establishment of all rates, charges, and cost allocations for water supply, transmission, and related services under this Contract. 1. No expenses attributable to electric power development may be allocated to the cost pools identified herein unless the pools are allocated a commensurate share of revenue derived from such development. 2. Seattle shall utilize the governmental accounting and financial reporting standards established by the Governmental Accounting Standards Board (“GASB standards”) that follow generally accepted accounting principles, as may be amended from time to time, consistently applied as a basis for developing the financial information upon which rates AGENDA ITEM #6. i) Page 42 First Amended and Restated Contract for the Supply of Water City of Renton and charges are based. 3. Abrupt changes in financial policies should be avoided. 4. The rate structure should encourage the efficient use of water, conservation and the timely development of new environmentally responsible, cost-efficient, and high-quality water sources and should incorporate seasonal rates and other pricing approaches to encourage efficient use. 5. The rate structure should be innovative, flexible, and adaptive whenever it is cost effective and beneficial in furthering the ratemaking policies. 6. The rate structure should be simple to administer and easily understandable. 7. The rate structure should be designed to recover the costs to own, operate and support the Seattle Regional Water Supply System fairly and objectively. 8. Unless modified with the approval of the Operating Board or implemented prior to the initiation of the current Contract review process in 2020, Seattle’s ratemaking processes will reflect the generally accepted guidelines and practices of the U.S. water industry. 9. When revenues for regional or subregional assets are received outside of rates or Facilities Charges (such as but not limited to capital contributions, grants, donated plant, insurance or FEMA reimbursements, payments based on allowances or other agreed- upon terms), that portion of the asset equal to the amount of outside revenue received shall be removed from the applicable cost pool. When revenues for Index O&M Costs or Non-Index O&M Costs are received outside of rates (such as but not limited to grants, fee for services, insurance or FEMA reimbursements, payments based on allowances or other agreed-upon terms), the Index O&M Costs or Non-Index O&M Costs shall be reduced by the corresponding amount. AGENDA ITEM #6. i) Page 43 First Amended and Restated Contract for the Supply of Water City of Renton 10. Certain costs may be recovered through allowances or other mutually negotiated terms. Any costs recovered through such terms must be recognized and accounted for appropriately within Seattle’s ratemaking processes to eliminate the possibility of double-recovery. 11. Any portion of Seattle’s Non-Index O&M Costs or capital costs which benefit only an individual Wholesale Customer or serves growth of a customer having a Block Purchase Contract shall be allocated to that customer or to a cost pool in which the customer bears an appropriate share, except as specifically provided in Sections IV.C.3.b, IV.D.2, and VI.D.2 of this Contract. 12. Only those costs incurred by the Seattle Water Enterprise Fund to own, operate, and reasonably support the Seattle Regional Water Supply System are eligible for recovery through the rates and charges pursuant to the terms of this Contract. 13. Seattle shall provide reasonable and early notice and appropriate information to the Operating Board so that it can carry out its roles with reasonable opportunity for meaningful input. 14. The Seattle Retail Distribution System shall be treated as the equivalent of a Wholesale Customer of the Seattle Regional Water Supply System for the purpose of charging Seattle the same applicable wholesale rates and charges as Water Utility for water supply and transmission unless specifically provided otherwise in this Contract. Costs calculated under the costs pools described below shall apply to all Wholesale Customers and to the Seattle Retail Distribution System consistently. 15. All parties will use best efforts in establishing rates and cost allocations that reflect the ratemaking and cost allocation principles set forth in this Section IV.A. AGENDA ITEM #6. i) Page 44 First Amended and Restated Contract for the Supply of Water City of Renton 16. Costs should be capitalized for wholesale ratemaking purposes by applying the same capitalization policy as applied to the Seattle Water Enterprise Fund, except as allowed under Section IV.D.2.a.i. IV.B. Ratemaking Framework Subject to the foregoing principles, wholesale rates and charges for the services described in this Contract shall be developed by Seattle based on the following framework: 1. Water Supply and Transmission Services. The costs of water supply and transmission of water shall be accounted for in the cost pools described in Section IV.C below. Seattle will recover the costs in each cost pool by establishing separate rates or charges for each cost pool but may charge composite rates. Rates and charges will be applied consistently to Wholesale Customers within a Customer Class and the Seattle Retail Distribution System except as may be specifically defined as a charge to an individual or subset of Wholesale Customers, including Seattle. 2. Mixed-use Allowances. Seattle owns and operates Mixed-use Assets and performs Mixed-use O&M that are shared between or used to support both the Seattle Regional Water Supply System and the Seattle Retail Distribution System. The parties mutually agree to the recovery of costs of the portion of the Mixed-use Assets and Mixed-use O&M used to support the Seattle Regional Water Supply System to the extent specified in this Contract, including in Sections IV.D.2.b and 3.a.ii. 3. Seattle Retail Distribution System. Seattle may not allocate the costs of the Seattle Retail Distribution System or the portion of the Mixed-use Assets and Mixed-use O&M used to support the Seattle Retail Distribution System to any cost pools under this Contract. AGENDA ITEM #6. i) Page 45 First Amended and Restated Contract for the Supply of Water City of Renton IV.C. Seattle Regional Water Supply System Cost Pools For the purposes of determining costs of water supply and transmission, there shall be the cost pools described below. 1. Existing Regional System Cost Pool.. The Existing Regional System Cost Pool shall be accounted for as follows: a. A rate shall be charged to recover the full costs of owning, operating, maintaining, repairing, renewing, and replacing and supporting the Existing Regional Facilities, which are assigned to this cost pool. Seattle may amend the list of Existing Regional Facilities in Exhibit VI, if necessary, to add or delete Existing Regional Facilities, as appropriate. The amended Exhibit VI will be incorporated as part of this Contract. b. The Operating Board may approve the allocation of 1) any portion of a New Supply or New Transmission Facility project that enhances reliability of Existing Regional Facilities to the Existing Regional System Cost Pool and 2) any portion of an Existing Regional Facility project that expands the supply capacity of the Seattle Regional Water Supply System to the New Supply Cost Pool or the transmission capacity of the Seattle Regional Water Supply system to the New Transmission Cost Pool. Seattle will amend the relevant lists of Regional Facilities in Exhibit VI, as appropriate, to document any portion of a project or costs that are allocated by the Operating Board under this Section IV.C.1.b. The amended Exhibit VI will be incorporated as part of this Contract. c. Costs of Service Connections and Metering Equipment. If Seattle requests a change in the location of the Service Connection to Water Utility for the benefit AGENDA ITEM #6. i) Page 46 First Amended and Restated Contract for the Supply of Water City of Renton of the Seattle Regional Water Supply System or incurs costs for metering equipment that meet one of the exceptions in Section III.E, then the costs, including any retirement costs of the old Service Connection, shall be included in the Existing Regional System Cost Pool. If Water Utility requests a new Service Connection, a change in location, an adjustment to service conditions of an existing Service Connection or Seattle incurs any other costs that are allocated to Water Utility pursuant to Section III.E., then Seattle shall invoice Water Utility for the costs of the new, replaced/repaired or changed Service Connection, including any retirement costs of the old Service Connection consistent with Section III.E. 2. New Supply Cost Pool. The New Supply Cost Pool shall be accounted for as follows: a. A rate shall be charged to recover the full costs of owning, constructing, operating, maintaining, repairing, renewing and replacing and supporting the New Supply Facilities, which are assigned to this cost pool, and which includes the costs of the Regional Water Conservation Program. Seattle may amend the list of New Supply Facilities in Exhibit VI, to add or delete New Supply Facilities, as appropriate. The amended Exhibit VI will be incorporated as part of this Contract. b. The Operating Board may approve the allocation of certain costs to the New Supply Cost Pool consistent with Section IV.C.1.b above. Seattle will amend the relevant lists of Regional Facilities in Exhibit VI, as appropriate, to document any portion of a project or costs that are allocated by the Operating Board under this Section IV.C.2.b. The amended Exhibit VI will be incorporated as part of this Contract. AGENDA ITEM #6. i) Page 47 First Amended and Restated Contract for the Supply of Water City of Renton c. The Operating Board shall determine whether the infrastructure costs of New Supply Facilities shall be recovered through FCs or new supply rates. d. The Operating Board may allocate the reasonable expenses of the Operating Board to this cost pool. 3. New Transmission Cost Pool. The New Transmission Cost Pool shall be accounted for as follows: a. A rate shall be charged to recover the full costs of owning, constructing, operating, maintaining, repairing, renewing, and replacing and supporting the New Transmission Facilities, which are assigned to this cost pool. Seattle may amend the list of New Transmission Facilities in Exhibit VI, if necessary, to add or delete New Transmission Facilities, as appropriate. The amended Exhibit VI will be incorporated as part of this Contract. b. The Operating Board may approve the allocation of certain costs to the New Transmission Cost Pool consistent with Section IV.C.1.b above. In addition, the Operating Board may approve the allocation of any portion of a New Transmission Facility project that benefits only a subset of Wholesale Customers or an individual Wholesale Customer to a subregional cost pool or the individual Wholesale Customer. Seattle will amend the relevant lists of Regional or Subregional Facilities in Exhibits VI or VII, as appropriate, to document any portion of a project or costs that are allocated by the Operating Board under this subsection IV.C.3.b. The amended Exhibits VI or VII will be incorporated as part of this Contract. c. The Operating Board shall determine whether the infrastructure costs of New AGENDA ITEM #6. i) Page 48 First Amended and Restated Contract for the Supply of Water City of Renton Transmission Facilities shall be recovered through FCs or new transmission rates. d. The Operating Board may allocate the reasonable expenses of the Operating Board to this cost pool. 4. Operating Board Review. Prior to commencing in the design and construction of facilities eligible for inclusion in the New Supply or New Transmission Cost Pools, Seattle will review the purpose, timing, and need for said new supplies with the Operating Board. The Operating Board will have 90 days to provide Seattle with written comments on the proposed new supply or transmission development along with its recommendation on whether or not Seattle should proceed with the proposed plan. Nothing in this provision shall be interpreted to prevent Seattle from engaging in preliminary design efforts necessary to determine the feasibility of, or costs associated with, a particular project. 5. Subregional Cost Pools. Certain Wholesale Customers are served, in part, by subregional transmission facilities that only benefit those Wholesale Customers in the specific subregions. If Water Utility is served by subregional transmission facilities as described in Exhibit I, Water Utility is subject to the relevant provisions of this Section IV.C.5. If Water Utility is not served by subregional transmission facilities, this provision does not apply. The following subregional cost pools shall be accounted for as follows: a. Eastside, Southwest and Renton Subregional Cost Pools. A rate for each subregion shall be charged to the appropriate Wholesale Customers who are served by the respective subregional facilities to recover the full costs, as defined by this Contract, of owning, constructing, operating, maintaining, repairing, renewing and replacing and supporting the Eastside, Southwest or Renton AGENDA ITEM #6. i) Page 49 First Amended and Restated Contract for the Supply of Water City of Renton Subregional Facilities, respectively, which are assigned to the respective subregional cost pools. Seattle may amend the list of Subregional Facilities in Exhibit VII, if necessary, to add or delete Subregional Facilities. The amended Exhibit VII will be incorporated as part of this Contract. b. The Operating Board may approve the allocation of other costs that benefit the specific Wholesale Customers served by the Eastside, Southwest or Renton Subregional Cost Pools, as appropriate. 6. Renton New Supply Cost Pool. The Renton New Supply Cost Pool shall be accounted for as follows: The full costs of owning, constructing, operating, maintaining, repairing, renewing and replacing and supporting the New Supply Facilities developed after January 1, 2012, including the costs of the Regional Water Conservation Program beginning January 1, 2012, shall be included in the Renton New Supply Cost Pool. 7. Creation of Additional Cost Pools. Seattle, in its discretion, may create additional cost pools, including its allocation by customer or customer class, to provide equity and flexibility in payment arrangements and the allocation of costs as the Seattle Regional Water Supply System expands to include new infrastructure, operations, and customers or responds to changed circumstances such as new regulatory requirements. The Operating Board may review and recommend revisions to the definition of the additional cost pool, and how it will be accounted for or allocated by customer or customer class. The Operating Board may approve the allocation of costs, or portion thereof, between a newly created additional cost pool and an existing cost pool if the costs to be allocated satisfy the criteria for allocation to the existing cost pool. Seattle and Water Utility will AGENDA ITEM #6. i) Page 50 First Amended and Restated Contract for the Supply of Water City of Renton revise the Contract by letter agreement for the limited purposes of documenting the creation and allocation of an additional cost pool under this Section IV.C.7. 8. Approval of Cost Allocation Method. The Operating Board shall use its best efforts to determine and approve a cost allocation method for infrastructure projects and related capital costs within the Seattle Regional Water Supply System prior to the project obtaining construction approval from the Seattle City Council. Failure of the Operating Board to approve a cost allocation method, however, shall not hinder Seattle from approving such projects in order to assure Seattle’s fulfillment of its obligations under this Contract. IV.D. Allocation of Costs and Revenues into Cost Pools 1. Accounting. Seattle shall maintain and use a cost accounting system consistent with the provisions of this Contract and the GASB standards, as amended from time to time, consistently applied in developing the financial information for determining the costs of acquisition or ownership, construction, repair, renewal, replacement, upgrade, expansion, maintenance and operation of the Seattle Regional Water Supply System. Seattle’s compliance with GASB standards will take precedence over any conflicting accounting provisions under this Contract. a. Asset Accounts. An asset account shall be maintained for each facility and within that account, Seattle shall record the original cost of that facility, plus betterments, and less retirements. b. Depreciation. Facilities shall be depreciated according to industry-standard water system asset lives and a record of life-to-date depreciation shall be maintained for each facility. No depreciation shall be recorded in the first calendar year of AGENDA ITEM #6. i) Page 51 First Amended and Restated Contract for the Supply of Water City of Renton operation of a facility. A full year’s depreciation shall be recorded in every subsequent year. c. Net Book Value. The Net Book Value of any facility shall be its original cost, plus betterments, and less retirements as recorded in its facility asset account, less life-to-date depreciation. 2. Infrastructure Costs. Each cost pool shall include the infrastructure costs for the facilities assigned to each cost pool as more particularly listed in Exhibits VI and VII (Regional Facilities and Subregional Facilities, respectively) and recognized on a utility or cash basis depending upon the facility and the cost pool as set forth below. a. Cost Basis. Seattle shall determine one of the following bases to recognize the infrastructure costs for ratemaking purposes and use it consistently throughout the life of the facility. i. Utility Basis. Seattle shall use the Utility Basis to recognize the infrastructure costs for all Existing Regional and Subregional Facilities, as well as their replacements and betterments or portions thereof. Seattle shall also use the Utility Basis for New Supply and New Transmission Facilities. Under the Utility Basis, the infrastructure cost for a facility in any year shall be the sum of (i) the annual depreciation expense recorded for that facility and (ii) the product of the Net Book Value of that facility and the Rate of Return on Investment of that facility. (a) Seattle, in its discretion, may consider interest costs as current infrastructure costs during the construction of a facility. However, any such interest costs must be considered contributions in aid of AGENDA ITEM #6. i) Page 52 First Amended and Restated Contract for the Supply of Water City of Renton construction, and not included in the Net Book Value of the facility for purposes of recognizing infrastructure costs under the Utility Basis in future years. (b) For ratemaking purposes and with the approval of the Operating Board, assets may be depreciated over a different time frame than that used by Seattle for financial reporting purposes in preparation of its audited Financial Statements. ii. Cash Basis. Seattle, with the approval of the Operating Board, may use the Cash Basis to recognize infrastructure costs for any Regional or Subregional Facilities or a portion thereof. Under the Cash Basis, the infrastructure cost for a facility in any year shall be the actual cash expenditure made by Seattle in that year for either the payment of construction costs or actual principal and interest costs on debt issued to finance its construction. In the event that the depreciation lifetime of the facility listed in the asset account is less than the term of the debt issued to finance all or a portion of the facility, Seattle will select debt maturities such that the construction cost of the facility will be fully amortized under the Cash Basis at the end of its depreciation lifetime. b. Infrastructure Adder. The parties agree the Infrastructure Adder provides a reasonable way to recover an allowance for 1) the regional portion of infrastructure costs of Mixed-use Assets; 2) the regional portion of mixed-use unrestricted cash assets; and 3) the equity or higher opportunity cost of cash financing Regional Facilities or the regional portion of Mixed-use Assets. c. Facilities Charges. AGENDA ITEM #6. i) Page 53 First Amended and Restated Contract for the Supply of Water City of Renton i. Establishing Facilities Charges. If the Operating Board determines to recover infrastructure costs for certain New Supply or New Transmission Facilities through FCs, then Seattle will establish FCs as follows: (a) ERU Charge. At the time the designated New Supply or New Transmission Facilities are put into service, Seattle shall establish a charge per one Equivalent Residential Unit (ERU Charge) for the Facility, or Facilities as the case may be, pursuant to the methodology in Exhibit V, which may include adjusting existing ERU Charges, if any, to include the new ERU Charges being established. (b) ERUs. (i) ERU Definition. Seattle, in its discretion, shall set, or amend from time to time, the capacity of one ERU to reflect the typical consumption of a single-family residence based on appropriate information consistent with accepted industry standards. The Operating Board may review and recommend revisions to Seattle’s ERU definition. The then current ERU definition will be used in the methodology in Exhibit V to establish an ERU Charge. (ii) ERU Factor. Seattle shall use the table of ERU Factors set forth in Exhibit V, which assigns a multiplier to each retail meter connection size. Seattle may propose, and the Operating Board may approve, adjustments to the table of ERU Factors. In the event the Operating Board approves an adjustment to the ERU Factors, the AGENDA ITEM #6. i) Page 54 First Amended and Restated Contract for the Supply of Water City of Renton parties will amend Section B of Exhibit V by letter agreement for the limited purposes of documenting adjustments to the ERU Factors. (c) Facilities Charges. Seattle shall adopt Facilities Charges for each meter connection size based on the then current ERU Charge multiplied by the ERU Factor. ii. Imposition and Payment of Facilities Charges. Seattle shall collect and Water Utility shall pay FCs based on the following: (a) Water Utility’s Retail Connections. Until such time as Seattle develops another basis, Water Utility shall track the number and size of each retail meter installed by Water Utility during each month and pay the appropriate Facilities Charges, taking into account the size of each meter, within 30 days of the end of the next month, unless Water Utility has an FC Allowance balance pursuant to Section IV.D.2.c.iii below. (b) Seattle shall pay FCs on the same basis. (c) If Water Utility has an FC Allowance as listed in Section 2 of Exhibit I, the FC Allowance balance will be reduced by an amount equal to the aggregate of the ERU Factors for each meter added by Water Utility during the previous month, and such reduction of the FC Allowance balance shall be in lieu of payment of FCs until the FC Allowance is zero. (d) Seattle will allocate FC revenues to offset infrastructure costs in AGENDA ITEM #6. i) Page 55 First Amended and Restated Contract for the Supply of Water City of Renton the New Supply or New Transmission Cost Pools, respectively, based on which cost pool the Regional Facility whose infrastructure costs are being recovered through FCs is assigned. Seattle and Water Utility agree that FC revenues are the sole property of Seattle. iii. FC Allowance for Supplies. If Water Utility operates Independent Supplies or Purchased Supplies as listed in Exhibit I, Seattle shall establish a growth allowance (“FC Allowance”) based on the amount of additional ERUs the Independent Supply or Purchased Supply is sufficient to serve within Water Utility's retail distribution service area as specifically described in Section 2 of Exhibit I as of the effective date of this Contract. The FC Allowance shall be a credit against the imposition of FCs until the FC Allowance reaches zero, then Water Utility shall pay FCs in accordance with Section IV.D.2.c.ii above. (a) Increase in FC Allowance. If Water Utility develops new Independent Supplies, makes improvements to an existing Independent Supply, or acquires new Purchased Supplies that increases the average annual production listed in Section 2 and/or Section 3 of Exhibit 1, the FC Allowance shall be adjusted as follows. If the new or improved Independent Supply or Purchased Supply produces at least one-third of its average annual production during the period between mid-May and mid-September, a trial period ("Trial Period") for the new or improved Independent AGENDA ITEM #6. i) Page 56 First Amended and Restated Contract for the Supply of Water City of Renton Supply or Purchased Supply shall commence on January 1st of the calendar year following the year in which the new or improved Independent Supply or Purchased Supply was placed into production. The Trial Period shall extend for three calendar years. At the conclusion of the Trial Period, the FC Allowance shall be increased by the additional number of ERUs, using the then current ERU definition, served by the average annual production of the new or improved Independent Supply or Purchased Supply during the Trial Period. The parties will amend Exhibit I by letter agreement to document the adjusted FC Allowance and the average annual production of the new or improved Independent Supply or Purchased Supply. (b) Decrease in FC Allowance. In the event that the average annual production of an Independent Supply or Purchased Supply, or of all Independent or Purchased Supplies in aggregate, is lower than the average annual production as listed and under the conditions provided in Section II or Section III of Exhibit 1, the outstanding FC Allowance shall be reduced by the number of ERUs, at the then current ERU definition, that could be served, on an annual basis, by a supply of the same size as the reduction in average annual production of the Independent Supplies or Purchased Supplies. In the event that this adjustment results in a negative FC Allowance, Water Utility shall pay Seattle an amount equal to the then-current AGENDA ITEM #6. i) Page 57 First Amended and Restated Contract for the Supply of Water City of Renton ERU Charge multiplied by the (negative) FC Allowance multiplied by minus one. The FC Allowance shall be zero upon full payment or commencement of payments under a payment agreement pursuant to Section VII.A.2. iv. Record-Keeping. (a) Monthly Report. Water Utility shall provide Seattle with a monthly report, in a form acceptable to Seattle, along with its monthly payment of FCs, showing the number of retail connections by size that Water Utility installed in the previous month. (b) Annual Report. Water Utility shall provide Seattle with an annual report by January 31st of each year for the previous year, in a form acceptable to Seattle, showing the total number of its retail connections by size as of December 31 of each year. (c) Seattle Annual Report on ERUs. Seattle shall prepare and distribute a report, no later than March 31st of each year, showing the ERUs for the Seattle Retail Distribution System and each Wholesale Customer for the previous year and each year since the original effective date of this Contract. 3. O&M Costs. The parties mutually agree to handle the O&M Costs for each cost pool as follows: a. Annual O&M Costs. For each of the Existing Regional System, New Supply and New Transmission Cost Pools, the Annual O&M Costs shall consist of the AGENDA ITEM #6. i) Page 58 First Amended and Restated Contract for the Supply of Water City of Renton relevant Index O&M Costs times the Mixed-Use Multiplier, plus any Non-index O&M Costs in that year, if any. i. Index O&M Costs. The Index O&M Costs are the O&M Costs for the regional O&M Cost categories for each cost pool as more particularly described in Exhibit VIII and are intended to reflect the O&M Costs for Regional Facilities and regional-only programs and support functions. Seattle, in consultation with the Operating Board, may amend the list of Index O&M Cost categories in Exhibit VIII, if necessary, when a Regional Facility is added to or deleted from Exhibit VI or a regional-only program or support function is established or discontinued. The amended Exhibit VIII will be incorporated as part of this Contract. ii. Mixed-use Multipliers. The parties agree to use an initial Mixed-use Multiplier of 2.001, which, as applied above, results in an allowance for the portion of Mixed-use O&M Costs that support the Seattle Regional Water Supply System. The initial Mixed-use Multiplier established in this Contract, and any adjusted Mixed-use Multiplier, shall be consistent with the Ratemaking Principles in Section IV.A of this Contract and will be subject to periodic adjustment and review as provided in subsection (a) and (b) below and Section IV.H.1.a. (a) The Mixed-Use Multiplier shall be adjusted every five years as a part of the Wholesale Statements, following the procedure below. (i) Categorize the prior three years’ O&M Costs of the Seattle Water Enterprise Fund, net of debt service and taxes on water AGENDA ITEM #6. i) Page 59 First Amended and Restated Contract for the Supply of Water City of Renton sales, into the following: Index O&M Costs, Non-index O&M Costs, Mixed-use O&M Costs, and the remainder, which is assigned as Seattle’s retail costs. (ii) Divide the Index O&M Cost by the sum of the Index O&M Cost and the retail cost. This calculation produces a percentage. (iii) Apply the percentage produced in (ii) to the Mixed-use O&M Costs. The result is the portion of the Mixed-use O&M that will be recovered by the Mixed-use Multiplier. (iv) To calculate the Mixed-use Multiplier, add the result from (iii) to the Index O&M Cost and divide that sum by the Index O&M Cost. (b) Seattle, in its discretion, may adjust the Mixed-use Multiplier from time to time when 1) it determines that the allowance produced by the then current Mixed-use Multiplier should not change in proportion to a change in the Index O&M Costs; and 2) the change in the Index O&M Costs was due to the addition or deletion of a Regional Facility resulting in a change of more than $100,000 of Index O&M Costs. The calculation of the adjusted Mixed-use Multiplier shall follow the procedure outlined in Section IV.D.3.a.ii.(a) above, except that the anticipated change in cost for the added or deleted Regional Facility shall be added to or subtracted from the Index O&M Cost, respectively. The calculation of the adjusted Mixed-use AGENDA ITEM #6. i) Page 60 First Amended and Restated Contract for the Supply of Water City of Renton Multiplier will be documented in the Wholesale Statements described in Section IV.H. iii. Non-index O&M Costs. Seattle, in its discretion, may add certain regional O&M Costs that are unique or nonrecurring to the Annual O&M Cost in any year(s), as appropriate. For Non-Index O&M Costs larger than 1% of the annual Index O&M Costs, the Operating Board may elect to amortize the costs over a timeframe of the Board's choosing, not to exceed ten years. The annual amortization shall be included in the applicable cost pool, as well as the product of the unamortized cost and Seattle's Cash Pool Rate.. b. Subregional O&M Costs. For each of the Subregional Cost Pools, the Annual O&M Costs shall consist of the actual O&M Costs for the respective Subregional Facilities assigned to each Subregional Cost Pool, including any net disposition costs for any of the Subregional Facilities in that cost pool, if any; together with any additional O&M Costs for the Subregional Facilities approved by Operating Board. c. Renton New Supply O&M Costs. For the Renton New Supply Cost Pool, the Annual O&M Costs shall be the same as the Annual O&M Costs in the New Supply Cost Pool. d. Disposition Costs. The costs of disposing of Regional or Subregional Facilities shall be included in the cost pool to which the Regional or Subregional Facilities are assigned. In the case of Regional Facilities, the net disposition costs will be added as a Non-index O&M Cost. Net disposition costs shall be calculated as follows: AGENDA ITEM #6. i) Page 61 First Amended and Restated Contract for the Supply of Water City of Renton i. Disposition Under the Utility Basis. The Net Book Value of the facility, less any sales, salvage, or other revenues derived from the disposition of that facility. If an alternate life is being used for ratemaking purposes as compared to Seattle's financial reporting and Financial Statement purposes, the Net Book Value refers to the remaining asset value under the alternate life. ii. Disposition Under the Cash Basis. The value of principal of unpaid maturities of debt used to finance the construction cost of the facility, less any sales, salvage or other revenues derived from the disposition of that facility. iii. Certain Large Net Disposition Costs. For net disposition costs larger than 1% of the annual Index O&M Costs, the Operating Board may elect to amortize the net disposition costs over the remaining life of the asset(s), or another timeframe of the Board's choosing not to exceed ten years. The annual amortization shall be included in the applicable cost pool, as well as the product of the unamortized net disposition cost and Seattle's Cash Pool Rate. IV.E Allocation of Cost Pools by Customer or Customer Class. The costs and revenues in the cost pools shall be allocated within the pools as follows: 1. Allocation of Existing Regional System Cost Pool. The total cost of the Existing Regional System Cost Pool shall be allocated to customer classes as follows: a. Block Purchase Customer Class. The portion of costs in the Existing Regional System Cost Pool allocated to holders of Block Purchase Contracts shall be AGENDA ITEM #6. i) Page 62 First Amended and Restated Contract for the Supply of Water City of Renton determined pursuant to those contracts, if any. b. Other wholesale customers. The portion of costs in the Existing Regional System Cost Pool or Existing Supply and Existing Transmission Cost Pools, depending how they are named in the Block Contracts, allocated to holders of other types of wholesale water supply contracts with Seattle shall be determined pursuant to those contracts, if any. c. Full and Partial Requirements Customer Class. The holders of Full and Partial Requirements Contracts and the Seattle Retail Distribution System shall be allocated the remaining costs in the Existing Regional System Cost Pool after the allocations in Sections IV.E.1.a and b above. 2. Allocation of New Supply Cost Pool. The total costs of the New Supply Cost Pool shall be allocated as follows: a. Block Purchase Customer Class. The portion of costs in the New Supply Cost Pool allocated to holders of Block Purchase Contracts shall be determined pursuant to those contracts, if any. b. Other wholesale customers. The portion of costs in the New Supply Cost Pool allocated to holders of other types of wholesale water supply contracts with Seattle shall be determined pursuant to those contracts, if any. c. Full and Partial Requirements Customer Class. The holders of Full and Partial Requirements Contracts, except for Renton, and the Seattle Retail Distribution System shall be allocated the remaining costs in the New Supply Cost Pool after the allocations to Block Purchase Customers or other wholesale customers, if any, pursuant to Sections IV.E.2.a and b above; and after deducting an equivalent AGENDA ITEM #6. i) Page 63 First Amended and Restated Contract for the Supply of Water City of Renton amount of costs that are allocated to Renton under the Renton New Supply Cost Pool pursuant to Section IV.E.5 below. 3. Allocation of New Transmission Cost Pool. The costs allocated to the New Transmission Cost Pool shall be allocated as follows: a. Block Purchase Customer Class. The portion of costs in the New Transmission Cost Pool allocated to holders of Block Purchase Contracts shall be determined pursuant to those contracts, if any. b. Other wholesale customers. The portion of costs in the New Transmission Cost Pool allocated to holders of other types of wholesale water supply contracts with Seattle shall be determined pursuant to those contracts, if any. c. Full and Partial Requirements Customer Class. The holders of Full and Partial Requirements Contracts and the Seattle Retail Distribution System shall be allocated the remaining costs in the New Transmission Cost Pool after allocations to Block Purchase Customers or other wholesale customers, if any, pursuant to Section IV.E.3.a and b above. 4. Allocation of Eastside, Southwest and Renton Subregion Cost Pools. All costs in the Eastside, Southwest and Renton Subregional Cost Pools shall be allocated to the Wholesale Customers served by the respective Subregional Facilities according to Exhibit VII. 5. Allocation of the Renton New Supply Cost Pool. A portion of the costs in the Renton New Supply Cost Pool shall be allocated as follows: a. Block Purchase Customer Class and other wholesale customers. The holders of Block Purchase Contracts or other wholesale customers shall not be allocated any AGENDA ITEM #6. i) Page 64 First Amended and Restated Contract for the Supply of Water City of Renton costs from the Renton New Supply Cost Pool. b. Full and Partial Requirements Customers. Except for Renton, the holders of Full and Partial Requirements Contracts and the Seattle Retail Distribution System shall not be allocated any costs from the Renton New Supply Cost Pool. c. Renton. Renton shall be allocated 6.8% of the remaining costs in the Renton New Supply Cost Pool after deducting an amount equivalent to the amount of costs from the New Supply Cost Pool allocated to the Block Purchase Customer Class or other wholesale customers, if any, pursuant to Section IV.E.2.a and b above. Seattle will recover the costs allocated to Renton from the Renton New Supply Cost Pool by a block payment paid in 12 equal installments in lieu of paying new supply rates or Facilities Charges (FCs) from the New Supply Cost Pool. i. Seattle may update the percentage share of the costs in this cost pool allocated to Renton if Renton acquires additional retail distribution service area pursuant to Section II.B.2, or on January 1, 2022 and every 5 years thereafter during the term of this Contract. The basis for any adjustments to the percentage allocation will be based on the percentage of average annual flows of Renton’s retail customers over the 5 prior years as compared to the average annual flows of all retail customers of the Wholesale Customers and the Seattle Regional Distribution System over the same 5 years. 6. Allocation of Additional Cost Pools. At the time an additional cost pool is created by Seattle pursuant to Section IV.C.7, the additional cost pool will be allocated by customer or customer class. The parties will enter into a letter agreement for the limited purposes AGENDA ITEM #6. i) Page 65 First Amended and Restated Contract for the Supply of Water City of Renton of documenting the allocation of an additional cost pool. IV.F. Elective Services 1. Elective Services. Seattle may provide certain elective services that are in addition to the services provided under this Contract to Water Utility upon request by Water Utility. Such services shall be negotiated and contracted for separately between Water Utility and Seattle or provided at then current standard charges, if applicable. Elective services may include: a. Transmission Wheeling. Seattle, at its sole discretion, may provide Water Utility access to excess transmission capacity, if any, for a fee and under any conditions it deems reasonable to protect the Seattle Regional Water Supply System for purposes of wheeling compatible water to or from Water Utility through the Seattle Regional Water Supply System. The Operating Board may review and recommend revisions to any policies or criteria Seattle may use to consider a request for wheeling services from a Wholesale Customer. b. Water Quality. So long as Seattle owns and operates a water quality lab, Water Utility may request the services of that lab based on its published rates for testing of samples for water quality monitoring that Water Utility performs. IV.G. Rate Setting, Adjustments and Special Charges 1. Wholesale Rate Setting. Seattle, in its sole discretion, shall determine the structure of FCs and wholesale water rates, except that the FCs or wholesale rates may not, without approval of the Operating Board, be set to collect more than the projected costs included in the cost pools as described in this Section IV. AGENDA ITEM #6. i) Page 66 First Amended and Restated Contract for the Supply of Water City of Renton 2. Retail Rate Setting. Each party to this Contract shall have sole authority for establishing retail rates, connection charges and other fees and charges within its respective jurisdiction, including the manner of passing through or incorporating any wholesale rates and charges due under this Contract. 3. Wholesale Rate Adjustment. Seattle may adjust water service rates and FCs from time to time. Rate adjustments will be effective only within five years of the completion of a rate study consistent with Section IV.G.4 below and provided that Seattle transmits its final rate adjustment proposal to the Operating Board and Water Utility for final review at least 30 days before it transmits it to Seattle City Council for consideration. The Operating Board may review and recommend revisions to the final rate proposal. Seattle will provide a written explanation of any recommendations that are not accepted and forwarded to Seattle City Council. 4. Rate Study and Review Consultant. Seattle shall conduct a rate study in accordance with accepted industry standards and this Contract. Seattle shall provide Water Utility and the Operating Board 30 days’ advance written notice of its intent to conduct a rate study and shall make detailed information and progress reports during the course of the rate study available to Water Utility, other Wholesale Customers and the Operating Board for review and comment. Seattle shall select an independent rate consultant to review the rate study, including an independent review of the allocation of costs and revenues between cost pools. The Operating Board may review and recommend revisions to the scope of work for the rate consultant. Seattle shall cause a final rate consultant report to be made available to Water Utility and the Operating Board not less than 30 days before Seattle formally transmits any resulting rate adjustment proposal to the Operating Board. Unless otherwise AGENDA ITEM #6. i) Page 67 First Amended and Restated Contract for the Supply of Water City of Renton approved by the Operating Board, Seattle shall conduct a cost-of-service rate study no less frequently than once every five years. 5. Special Charges. a. Demand Charge. i. Seattle, in its discretion, may adopt and implement a demand charge in accordance with the methodology described in Exhibit III. The demand charge consists of a calculation of Water Utility’s deficient storage, if any, and a Storage Deficiency Rate (i.e., dollars per 1000 gallons of deficient storage) that is based on an equivalent annualized cost of providing the deficient storage, and which shall be updated with each rate study. ii. Seattle shall be exempt from the demand charge until such time as metering devices are installed pursuant to Section III.E.2. iii. The costs and revenues from implementing the demand charge will be allocated to the Existing Regional System Cost Pool. The Operating Board may approve the allocation of these costs and revenues to the New Transmission Cost Pool in the future to offset other costs that may be allocated to the New Transmission Cost Pool in the future. iv. Seattle shall suspend the implementation of demand charges, if any, in the event of emergencies and unforeseen conditions. b. Emergency Surcharge. In the event of a drought, catastrophe, or other extraordinary condition that requires emergency expenditures to maintain sufficient and safe water supply or transmission capacity, or both, Seattle, through its City Council, may impose an emergency surcharge on all Wholesale AGENDA ITEM #6. i) Page 68 First Amended and Restated Contract for the Supply of Water City of Renton Customers, including Seattle, in order to pay for emergency expenditures or maintain financial stability of the Seattle Regional Water Supply System, or both (“Emergency Surcharge”). The Operating Board may review and recommend revisions to any proposed Emergency Surcharge prior to submission to the Seattle City Council for consideration. Seattle shall provide a written explanation of any recommendations that are not accepted and forwarded to City Council. Revenues from an Emergency Surcharge will be applied to the appropriate cost pool that relates to the emergency situation giving rise to the Emergency Surcharge. For the avoidance of doubt, and for example only, an Emergency Surcharge issued in response to a drought would be applied to offset costs in the Existing Regional System Cost Pool and an Emergency Surcharge issued to pay for extensive transmission repair on New Transmission Facilities would offset costs in the New Transmission Cost Pool. If the emergency is not related to any particular cost pool, the Operating Board shall make the final determination as to which cost pool the revenues shall be applied. c. New Wholesale Customer Charge. Seattle will charge any new customer who signs a Full or Partial Requirements Contract after the Effective Date of this Contract and who has not previously contributed to the costs in the New Supply Cost Pool or the development of New Supply Facilities an appropriate charge for an equitable share of the New Supply Facilities. This charge may be satisfied by either paying FCs and new supply rates or arranging a special water supply rate in lieu of paying FCs. The revenue from this charge will be allocated to offset costs in the New Supply Cost Pool. AGENDA ITEM #6. i) Page 69 First Amended and Restated Contract for the Supply of Water City of Renton 6. Transition. a. Initial Existing Regional System Running Balance Surplus. As part of the contract transition process, Seattle shall implement a one-time return of the lesser of the full amount of the Existing Regional System Cost Pool running balance surplus or $82M to Wholesale Customers in lump sum payments following completion of the updated contracts (either fully executed with mutual agreement or amended through the process identified in Section II.A.4(b)) with all Wholesale Customers. Water Utility will receive payment for its prorated portion of the amount above based on each Wholesale Customer’s demand since the balance last crossed zero within 60 days following the completion of the updated contracts (as defined above), even if such payments are made before the Effective Date of the Contract. b. Cost-of-Service Rate Study. Seattle agrees to begin performing a cost-of-service rate study no later than three months of the date on which all Wholesale Customer contracts are either fully executed pursuant to Section II.A.4.a or amended pursuant to Section II.A.4.b. c. Rebate Based on Alternate Utility Basis Cost. As a result of negotiations pursuant to Section II.A.4.a, an Alternate Utility Basis will be applied as described below to calculate an annual rebate to Wholesale Customers signing this First Amended and Restated Contract for the Supply of Water. Water Utility will be eligible for an annual rebate in the form of a credit on its bill for a portion of the difference between Utility Basis cost AGENDA ITEM #6. i) Page 70 First Amended and Restated Contract for the Supply of Water City of Renton and the Alternate Utility Basis cost (for assets whose cost is calculated on a Utility Basis) as described below, if the Alternate Utility Basis results in a lower cost. This comparison will be conducted annually as part of the Wholesale Statement Review and the Water Utility’s portion will be based on Water Utility’s percentage of Wholesale Customer demand for each applicable Cost Pool in that year. i. Definitions. The following definitions will be used to calculate the Alternate Utility Basis cost: “Alternate Infrastructure Adder” – A certain percentage amount that is applied as a component of the Rate of Return on Investment to the Net Book Value of facilities recognized under the Utility Basis, which may be adjusted pursuant to Section IV.G.6.c.iii below. “Alternate Mixed-use Assets” – Capitalized facilities or assets that are shared between or used to support both the Seattle Retail Distribution System and the Seattle Regional Water Supply System. "Alternate Rate of Return on Investment" – Alternate Seattle’s Average Cost of Debt plus the Alternate Infrastructure Adder. “Alternate Seattle’s Average Cost of Debt” (“Alternate ACOD”) - The weighted average coupon interest rate on Seattle’s water system debt outstanding over the course of a calendar year with adjustments to recognize i) outstanding amortized premium or discount on water system debt; ii) gains/losses on water system bond refunding's; iii) issuance costs AGENDA ITEM #6. i) Page 71 First Amended and Restated Contract for the Supply of Water City of Renton including third party costs paid by bond proceeds; iv) prepaid insurance costs; v) net interest expense on debt service reserves; and vi) any other appropriate ongoing debt costs, e.g. variable rate remarketing, ongoing credit rating agency monitoring fees, calculated at the end of each calendar year during the term of this Contract. ii. Under the Alternate Utility Basis, the infrastructure cost for a facility in any year shall be the sum of (i) the annual depreciation expense recorded for that facility and (ii) the product of the Net Book Value of that facility and the Alternate Rate of Return on Investment of that facility. a. Seattle, in its discretion, may consider interest costs as current infrastructure costs during the construction of a facility. However, any such interest costs must be considered contributions in aid of construction, and not included in the Net Book Value of the facility for purposes of recognizing infrastructure costs under the Utility Basis in future years. b. For ratemaking purposes and with the approval of the Operating Board, assets may be depreciated over a different time frame than that used by Seattle for financial reporting purposes in preparation of its audited Financial Statements. iii. Alternate Infrastructure Adder. The parties mutually agree to use an initial Alternate Infrastructure Adder of 1.40%, which Seattle will apply as a component of the Rate of Return on Investment, to the Net Book Value of facilities that are recognized under the Utility Basis. The parties agree the AGENDA ITEM #6. i) Page 72 First Amended and Restated Contract for the Supply of Water City of Renton Alternate Infrastructure Adder provides a reasonable way to recover an allowance for 1) the regional portion of infrastructure costs of Mixed-use Assets; 2) the regional portion of mixed-use unrestricted cash assets; and 3) the equity or higher opportunity cost of cash financing Regional Facilities or the regional portion of Mixed-use Assets. The parties agree that Seattle may adjust the Alternate Infrastructure Adder that is applied to facilities recognized under the Alternate Utility Basis from time to time as follows: a. In order to maintain an equitable allocation of costs through the allowance, Seattle may increase or decrease the then current Alternate Infrastructure Adder annually by 0.12% for every 1.00% increase or decrease to Seattle’s Alternative ACOD, or portion thereof, as the case may be, e.g. if Seattle’s Alternative ACOD increases from 4.08% to 5.08%, the Infrastructure Adder would increase from 1.40% to 1.52%. b. In the event the Operating Board determines to use the Cash Basis to recognize costs for a Regional or Subregional Facility, Seattle may adjust the then current Alternate Infrastructure Adder by multiplying it by an amount equal to the sum of the then current NBV of Regional and Subregional Facilities recognized under the Alternate Utility Basis plus the current NBV of such Facilities recognized under the Cash Basis, divided by the then current NBV of Regional and Subregional Facilities recognized under the Alternative Utility Basis only. AGENDA ITEM #6. i) Page 73 First Amended and Restated Contract for the Supply of Water City of Renton IV.H. Cost Review and Truing Actual Costs and Actual Revenues 1. Wholesale Statement Review. At the end of each fiscal year, Seattle shall cause an independent review of its statement of actual costs and revenues received allocated to each cost pool (“Wholesale Statements”). Seattle will select an independent accountant, which may be Seattle’s independent auditor for its audited financial statements., a. Scope of Review. The procedures for the annual review shall be set by the Operating Board and shall include, at a minimum: (i) a comparison of the actual costs and revenues received to Seattle’s accounting records, (ii) a comparison of the procedures used by Seattle to allocate costs and revenues to each cost pool to those procedures and requirements specified in this Contract, (iii) in years where the Mixed-use Multiplier is adjusted, the accuracy of the adjustment calculation, and (iv) identification of any corrective actions necessary. The scope of review may include additional elements identified by the independent accountant, as well as procedures at Seattle’s discretion together with any reasonable requests of the Operating Board. b. Operating Board and Water Utility Review of Report of Independent Accountant. Seattle will cause the independent accountant to present a copy of the review report to the Operating Board and Water Utility. c. Operating Board and Water Utility Right to Review. The Operating Board, or Water Utility at its sole expense, may select its own independent accountant to review the Wholesale Statements including the Mixed-use Multiplier under separate agreed-upon procedures at their discretion. Subject to Seattle’s reasonable requests for security and confidentiality procedures and agreement to AGENDA ITEM #6. i) Page 74 First Amended and Restated Contract for the Supply of Water City of Renton the same, an independent accountant retained by Water Utility, may at any time upon prior reasonable notice to Seattle and in coordination with Seattle’s reasonable scheduling ability, during normal business hours, review the books, records and accounts of Seattle to the extent that such books, records and accounts are directly used in the production of the Wholesale Statements or other allocations, charges or payments under this Contract. Seattle shall maintain all such books, records and accounts. Independent accountant’s access shall include the right to make copies and discuss the books and records with Seattle’s personnel having knowledge of the facilities, systems, processes and document contents. Water Utility’s right to review shall survive the expiration or termination of this Contract for a period of three (3) years. If an inspection or examination pursuant to this section discloses overpricing or overcharges by Seattle in excess of one percent (1%) of the appropriate amount due, in addition to making adjustments for the overcharges, the reasonable actual cost of Water Utility’s review shall be reimbursed to Water Utility by Seattle, and the costs will be included in the Existing Regional Cost Pool. Any adjustments which must be made as a result of any such review shall be reflected in the Wholesale Statements. 2. Truing Actual Costs and Actual Revenues. Seattle shall reconcile the projected costs and revenue targets for the various cost pools and the actual expenses and revenues received during each year of this Contract as follows: a. Running Balances. For each cost pool, Seattle shall maintain a running balance of the surplus or deficit of actual rate revenues collected from each class of AGENDA ITEM #6. i) Page 75 First Amended and Restated Contract for the Supply of Water City of Renton customers less actual expenses incurred, except that Seattle shall maintain separate running balances for FC revenues pursuant to Section IV.H.2.c below. Each running balance shall earn simple interest at Seattle’s Cash Pool Rate. At the end of each fiscal year, Seattle shall adjust each balance to reflect the operating results of that year. The year-end statement of these balances shall be reviewed as described in Section IV.H.1 above. b. Running Balance Deficits. Seattle shall design rates to eliminate any deficit in the cost pool running balances, except as provided herein. c. Running Balance Surpluses. i. Running Balance Surplus at True Up. Annually, after presentation of the Wholesale Statements to the Operating Board, the Board shall decide the portions of any surplus to be a) returned to the Wholesale Customers as a credit on their bill in the following year, with the balance prorated to each Wholesale Customer based on each Wholesale Customer’s demand since the balance last crossed zero, b) redeemed as a capital contribution towards specific assets assigned to the applicable Cost Pool, and/or c) retained for rate smoothing purposes as determined by the Operating Board based on the review of the most recent rate study following the process in Section IV.H.2.iii below. The Operating Board may select one or any combination of these options for implementation. When returned as a credit on the bill or redeemed as a capital contribution, the surplus balance shall be reduced by those amounts. AGENDA ITEM #6. i) Page 76 First Amended and Restated Contract for the Supply of Water City of Renton ii. Running Balance Surplus at Contract Transition. The running surplus balance existing as of December 31, 2024 shall be fully or partially returned as provided in Section IV.G.6, Contract Transition. iii. Running Balance Surplus at Rate Study. During each rate study, the Operating Board shall decide the portion of the surplus, up to an amount not to exceed 30 percent of the annual projected costs in the relevant cost pool for the first year of the rate study, to retain for future rate smoothing purposes. Seattle shall design rates to eliminate any surpluses above this amount in the cost pool running balances. d. FC Running Balances. Seattle shall maintain separate running balances within the New Supply and New Transmission Cost Pools, as appropriate, of the surplus or deficit balances of actual FC revenues received in any year over the facility’s annual utility or cash basis costs to be recovered through FCs for that year. Running surplus FC balances shall earn simple interest at Seattle’s Cash Pool Rate. For any year with a running FC deficit balance, Seattle shall transfer an amount from the running balance of rate revenues in the New Supply or New Transmission Cost Pool, as the case may be, to eliminate the FC deficit balance for that year even if it results in a deficit running balance in rates. FC surplus balances in any subsequent year shall be transferred back to the running balance in the New Supply or New Transmission Cost Pools until the amount transferred to eliminate the prior deficit FC balance is repaid. Any remaining surplus FC balances, if any, may upon Operating Board approval, be transferred to the running balances of rate revenues in the New AGENDA ITEM #6. i) Page 77 First Amended and Restated Contract for the Supply of Water City of Renton Supply or New Transmission cost pools for rate smoothing purposes. Otherwise, they shall be retained as a surplus FC balance in an amount up to two times the Net Book Value of the Regional Facilities whose infrastructure costs are being recovered by FCs. Any surplus FC balance that exceeds two times the Net Book Value of those facilities shall be transferred to the running balance for the New Supply or New Transmission Cost Pools, as appropriate, (and the FC surplus balance shall be reduced by the amount transferred). This transfer is permanent and not repaid. ERU Charges are based on Section IV.D.2.c and shall not be adjusted to reflect surpluses or deficits in FC balances. SECTION V. OPERATING BOARD 1. Purpose. The purpose of the Operating Board is to provide advice and direction in certain areas of limited authority over policy, financial and operational matters as they affect the Seattle Regional Water Supply System. The representatives of the Operating Board shall, to the best of their ability, act in the best interests of the Seattle Regional Water Supply System as a whole, not for the benefit of a group of Wholesale Customers or an individual Wholesale Customer. Therefore, only Wholesale Customers that have agreed to automatic extensions of this Contract, committed to purchase their Full or Partial Requirements as set out on Exhibit I, and agreed to the limitations on purchase reductions contained in Section II.B.5, are eligible to have their representative voted onto the Operating Board. 2. Structure and Authority. The Operating Board shall have only the roles and limited authorities as specifically and explicitly set forth in specific provisions of this Contract. AGENDA ITEM #6. i) Page 78 First Amended and Restated Contract for the Supply of Water City of Renton The Operating Board shall have the structure described in Exhibit IV. 3. Review. The parties may review the structure and roles and limited authorities of the Operating Board as of January 1, 2027 and every five years thereafter to determine its effectiveness in addressing regional and contractual issues. The review may address the composition of the Board and its roles and limited authorities as set forth in the Contract and Exhibit IV. Any Wholesale Customer, including Water Utility, or Seattle may initiate the review. The initiating party shall provide all Wholesale Customers and Seattle, as the case may be, with its proposals. Water Utility and Seattle agree to consider each other’s and any other Wholesale Customer's comments and proposals and to respond in writing stating its reasons for rejecting any proposals and the reasons for its own counter proposal. Notwithstanding any other provisions in this Contract, any changes to the Operating Board structure shall be made through an Amendment to the Operating Board Bylaws; provided that any such changes shall be subject to the restrictions and limitations contained in this Contract. SECTION VI. PLANNING VI.A. Reporting of Planning Data 1. By no later than March 1 of each year, Water Utility shall report to Seattle and the Operating Board the following data for the previous calendar year as follows, except as otherwise provided in Section VI.A.4 below: a. The amount of water produced each month from its Independent Supplies, listed by source. b. The amount of water purchased each month from any other water utilities, listed by other utility name and whether Emergency or Purchased Supply. AGENDA ITEM #6. i) Page 79 First Amended and Restated Contract for the Supply of Water City of Renton c. The amount of water sold each month to any other water utilities, listed by other utility name and whether Emergency or Resale Supply. d. The amount of water wheeled through Water Utility’s distribution system each month, listed by both utility names that deliver water to and receive water from Water Utility. e. The amount of water sold to retail and wholesale customers, by customer class and by month. f. The number of accounts billed, by customer class and month. g. Other data reasonably necessary to track, report and plan for the metrics used for the regional WUE Goal, upon Seattle’s request. 2. Water Utility shall report other data as may be reasonably requested by Seattle for water planning purposes or as may be required by amendments to applicable regulations from time to time, except as otherwise provided in Section VI.A.4 below. This data may include, but not be limited to: a. Water Utility’s forecasts of the amount of water to be used by Water Utility from Alternate Supplies. Forecasts will reflect best judgement of Water Utility and be consistent with industry standards. b. Water Utility’s forecasts of annual growth in the number of meters installed by Water Utility by the size of the meter as necessary for establishing Facility Charges pursuant to Section IV.D.2.c. c. Water Utility’s rates and charges, including background information such as rate studies. d. Water Utility’s maps, land use and growth projections, and geographical AGENDA ITEM #6. i) Page 80 First Amended and Restated Contract for the Supply of Water City of Renton information system (“GIS”) layers of current and future retail service areas of Water Utility, provided that Water Utility shall be permitted to withhold information or records which Water Utility reasonably believes the release of such information and records presents a security risk associated with Water Utility’s facilities, infrastructure and operations. 3. Records relevant to water supply and consumption within the possession of Seattle or Water Utility shall be provided to the other upon reasonable request. 4. Water Utility shall not be required to provide records, including related information or data, that are exempt from disclosure under the Public Records Act, Chapter 42.56 RCW, or other applicable federal and state laws. VI.B. Submittal of Water Utility Water System Plans Water Utility shall provide a copy of its proposed water system plan, including any amendments, to Seattle for review and comment before adoption by its legislative body, and a copy of its final approved water system plan or amendments. VI.C. Seattle as Water Planning Agency 1. Seattle shall be the lead agency and primary planning authority for the purposes of fulfilling its obligations to provide for the Full or Partial Water Requirements of Water Utility, as appropriate. 2. Seattle, in consultation with the Operating Board, shall examine and investigate water supplies suitable and adequate to meet the present and reasonable future needs of Seattle and the Wholesale Customers. 3. Seattle, in consultation with the Operating Board, shall prepare and adopt a plan for acquiring new, high quality water supplies in a timely and cost-effective manner. The AGENDA ITEM #6. i) Page 81 First Amended and Restated Contract for the Supply of Water City of Renton plan shall provide for the lands, waters, water rights and easements necessary therefor, and facilities for retaining, storing and delivering such waters, including dams, reservoirs, aqueducts and pipelines to convey same throughout the Seattle Regional Water Supply System. In preparing or adopting the plan, Seattle shall consider as possible alternatives or additional water supply sources, the acquisition of water from sources controlled or developed by individual water utilities, legally constituted groups of water utilities or utilities which are not presently supplied by the Seattle Regional Water Supply System. Seattle has final responsibility for the plan and for fulfilling the obligations of this Contract. However, the Operating Board may participate in developing the plan by proposing goals and objectives for the Seattle Regional Water Supply System, by making any additional suggestions and by acting in a review capacity. If Water Utility opts out of an Extension pursuant to Section II.A.3, Seattle shall begin planning for Water Utility to stop purchasing water from Seattle at the expiration of its Contract Term. VI.D. Capital Improvement Plan 1. To fulfill the requirements of this Contract, Seattle shall make improvements to the Seattle Regional Water Supply System based on a Capital Improvement Plan adopted by the Seattle City Council. The projects and programs in the Capital Improvement Plan will include those that meet operational, regulatory, or contractual requirements, provide for growth, improve reliability and resiliency, and are cost-effective. Prior to submission of the proposed Capital Improvement Plan to the Seattle City Council for approval, Seattle shall provide the Operating Board a reasonable and meaningful opportunity to review and recommend revisions to the relevant portions of the proposed Capital Improvement Plan that affect the Seattle Regional Water Supply System. Seattle shall give serious AGENDA ITEM #6. i) Page 82 First Amended and Restated Contract for the Supply of Water City of Renton consideration to the recommendations of the Operating Board. Seattle will transmit the final adopted Capital Improvement Plan to the Operating Board and Water Utility within 30 days of adoption. Seattle shall provide periodic updates of major projects and programs affecting the Seattle Regional Water Supply System upon request of the Operating Board. Seattle shall also review and respond to concerns expressed by the Operating Board or any Wholesale Customer regarding the scheduling of or delays in completing projects included in Seattle’s Capital Improvement Plan or questions about the budgets or actual costs incurred on projects included in Seattle’s Capital Improvement Plan. Seattle shall, upon request, provide opportunities for the Operating Board, or a designee of the Operating Board, to participate in options analysis, design review or value engineering for relevant projects or programs that substantially affect the Seattle Regional Water Supply System or Wholesale Customers. 2. The Operating Board may approve the allocation to a cost pool in Section IV.C of reasonable costs for capital improvements that serve or benefit an individual Wholesale Customer, including Water Utility, that are reasonably necessary to alleviate a disproportionate adverse impact to the retail distribution system(s) of Water Utility or another Wholesale Customer, to the extent it is caused by a capital project in the Capital Improvement Plan for the Seattle Regional Water Supply System. Water Utility, or another Wholesale Customer may request consideration of this provision, and the Operating Board will make a determination of whether 1) there is a disproportionate adverse impact and either (i) such disproportional adverse impact could have been reasonably avoided through a different project design in the Capital Improvement Plan, or (ii) the other Wholesale Customers, including the Seattle Retail Distribution System, AGENDA ITEM #6. i) Page 83 First Amended and Restated Contract for the Supply of Water City of Renton receive tangible benefits, directly or indirectly, from the project in the Capital Improvement Plan; 2) the proportion of capital costs to include, if any; and 3) the cost pool the costs would be allocated to, if any. Water Utility and Seattle will enter into a separate agreement consistent with this section if the Operating Board determines this provision applies to Water Utility and the costs will be allocated to the cost pool identified by the Operating Board. SECTION VII. PAYMENT VII.A. Collection of Money Due City 1. Seattle shall bill Water Utility on a monthly basis for all charges due under this Contract unless the Contract expressly provides otherwise, in which case Water Utility will submit payment according to the Contract. Water Utility shall pay all charges within 60 days of the invoice or billing date or, if another provision is applicable, when due. 2. For those charges that are not monthly commodity charges or Facilities Charges, Water Utility and Seattle may mutually agree by letter agreement to a reasonable monthly payment plan and any outstanding balance shall be charged interest at Seattle’s Cash Pool Rate until paid in full. VII.B. Penalties for Late Payment All late payments, and any refund of an amount in dispute that was paid under protest, shall accrue interest at 1% per month. VII.C. Billing Disputes 1. Water Utility may dispute the accuracy of any portion of charges billed by Seattle by notifying Seattle in writing within the 60-day payment period of the specific nature of the dispute and paying the undisputed portion of the charges. This provision is not intended AGENDA ITEM #6. i) Page 84 First Amended and Restated Contract for the Supply of Water City of Renton to limit Water Utility’s right to dispute billing errors or charges that are not reasonably discoverable by Water Utility within the 60-day payment period. 2. Seattle shall consider and decide any billing dispute in a reasonable and timely manner. Any billing disputes that remain after such consideration shall be reconciled pursuant to the dispute resolution procedures of this Contract. VII.D. Availability of Records Upon request with reasonable notice, Water Utility or Seattle shall make any public records that support the charges or payments under this Contract available to the other party for inspection and copying during normal business hours. SECTION VIII. CONTRACT AMENDMENTS Seattle shall notify Water Utility and all other holders of Full or Partial Requirements Contracts of any amendments to such contracts within 30 days of the execution of such amendment. Water Utility shall then have 90 days to decide whether to include such amendment in this Contract by giving written notice to Seattle of its election to do so. Upon the issuance of such notice, Seattle shall issue the amendment to Water Utility and the amendment shall be final and binding upon both parties upon mutual execution. SECTION IX. DISPUTE RESOLUTION Dispute resolution shall proceed as follows: IX.A. Operating Board Review Any dispute regarding this Contract that remains unresolved after good faith negotiations between Water Utility and Seattle shall be referred to the Operating Board for consideration and recommendation. Each party shall submit a written statement regarding the dispute to the AGENDA ITEM #6. i) Page 85 First Amended and Restated Contract for the Supply of Water City of Renton Operating Board. 1. If the dispute cannot be resolved in discussions with the Operating Board, then the Operating Board shall provide written recommendations to each party within 60 days of receiving the written statements, which shall include any applicable findings or interpretations of the applicable facts or contract provisions. 2. If either party rejects the written recommendation of the Operating Board, that party shall, within 10 days, notify the other party in writing of its reasons. IX.B. Seattle Mayor Review If the dispute remains unresolved, the written statements of the parties, the recommendations of the Operating Board, if applicable, and the written reasons for either party’s rejection of those recommendations shall then be submitted to the Seattle Mayor for review. 1. Within 60 days of the submittal of the written materials, the Seattle Mayor shall provide written recommendations to resolve the dispute. 2. If either party rejects the written recommendation of the Seattle Mayor, that party shall, within 10 days, notify the other party in writing of its reasons. IX.C. Mediation Within 10 days of receiving the written rejection of the Seattle Mayor’s recommendations by one or both parties, each party shall designate in writing not more than 5 candidates it proposes to act as an impartial mediator. 1. If the parties cannot agree on one of the mediators from the combined list within 5 days, the Operating Board shall, within an additional 5 days, select one of the mediators from either list to serve as mediator. 2. Upon selection of the mediator, the parties shall use reasonable efforts to resolve the AGENDA ITEM #6. i) Page 86 First Amended and Restated Contract for the Supply of Water City of Renton dispute within 30 days, or other mutually agreed timeframe, with the assistance of the mediator. IX.D. Resort to Litigation or Arbitration If mediation fails to resolve the dispute within 30 days, or the other mutually agreed timeframe, of selection of the mediator, the parties may thereafter seek redress in court subject to Section X.G. below. Alternatively, the parties may mutually agree to resolve any disputes through arbitration using a single arbitrator acceptable to parties. Nothing in this provision shall be construed to require arbitration without the mutual agreement of the parties. IX.E. Efficiency of Review In order to facilitate a more efficient review of disputes under this Section, the parties may agree to skip the step in Section IX.A above in order to avoid a redundant act. The parties may also mutually agree to skip the step in Section IX.C, if it is in the best interests of the parties in resolving the dispute. SECTION X. MISCELLANEOUS X.A. Notification 1. Whenever written notice is required by this Contract, that notice shall be given to the following representatives, or their designees, by email with receipt requested, actual delivery or by the United States mail (registered or certified with return receipt requested), addressed to the respective party at the following addresses or a different address hereafter designated in writing by the party: AGENDA ITEM #6. i) Page 87 First Amended and Restated Contract for the Supply of Water City of Renton The date of giving such notice shall be deemed to be the email date or postmarked date of mailing. 2. Seattle’s Wholesale Contracts Manager will be the initial point of contact for all other issues arising under the Contract. X.B. Severability The purpose of this Contract is to provide for long-term water supply planning and certainty for both Seattle and Water Utility through adoption of orderly plans calling for the expenditure of significant sums of money for the Seattle Regional Water Supply System. It is the intent of the parties that if any provision of this Contract or its application is held by a court of competent jurisdiction to be illegal, invalid, or void, the validity of the remaining provisions of this Contract or its application to other entities, or circumstances shall not be affected. The remaining provisions shall continue in full force and effect, and the rights and obligations of the parties shall be construed and enforced as if the Contract did not contain the particular invalid provision; provided, however, if the invalid provision or its application is found by a court of competent SEATTLE:WATER UTILITY: General Manager Public Works Director City of Renton 1055 S Grady Way Renton, WA 98057 Seattle Public Utilities City of Renton Seattle Municipal Tower 1055 S Grady Way PO Box 34018 , 700 Fifth Ave, Suite 4900 Seattle, WA 98124-4018 AGENDA ITEM #6. i) Page 88 First Amended and Restated Contract for the Supply of Water City of Renton jurisdiction to be substantive and to render performance of the remaining provisions unworkable and non-feasible, is found to seriously affect the consideration and is inseparably connected to the remainder of the Contract, the entire Contract shall be null and void. X.C. Consent Whenever it is provided in this Contract that the prior written consent or approval of either party is required as a condition precedent to any actions, in each such instance said consent or approval shall not be unreasonably withheld, and in each such instance where prior consent is sought, failure of the party to respond in writing within 90 days of the request shall be deemed as that party's consent or approval unless expressly stated herein. This provision does not apply to requests for amendments of this Contract. X.D. Emergency Situations Nothing in this Contract shall be deemed to preclude either party from taking necessary action to maintain or restore water supply in emergency situations and such action shall not be deemed a violation of this Contract. X.E. No Joint Venture - Individual Liability This is not an agreement of joint venture or partnership, and no provision of this Contract shall be construed so as to make Water Utility individually or collectively a partner or joint venturer with any other Wholesale Customer or with Seattle. Neither party is an agent of the other. Neither Seattle nor Water Utility shall be liable for the acts of the other in any representative capacity whatsoever. X.F. Complete Agreement This Contract represents the entire agreement between the parties hereto concerning the subject matter hereof. This Contract may not be amended except as provided herein. AGENDA ITEM #6. i) Page 89 First Amended and Restated Contract for the Supply of Water City of Renton X.G. Venue, Jurisdiction and Specific Performance In the event of litigation between the parties, venue and jurisdiction shall lie with the King County Superior Court of the State of Washington. The parties shall be entitled to specific performance of the terms hereof. X.H. Default and Non-Waiver In the event of default of any provision of the Contract, the non-defaulting party shall issue written notice to the other party setting forth the nature of the default. If the default is for a monetary payment due hereunder, the defaulting party shall have thirty (30) days to cure the default. In the event of other defaults, the defaulting party shall use its best efforts to cure the default within ninety (90) days. If such default cannot be reasonably cured within such ninety (90) day period, the defaulting party shall, upon written request prior to the expiration of the ninety (90) day period, be granted an additional sixty (60) days to cure the default. Any waiver of the breach or default of any provision, term or condition of this Contract shall not be deemed to be a waiver of any preceding or succeeding breach or default of the same or any other provision, term or condition. X.I. Force Majeure The time periods for the parties’ performance under any provisions of this Contract shall be extended for a reasonable period of time during which a party’s performance is prevented, in good faith, due to circumstances beyond the party’s control such as fire, flood, earthquake, lockouts, strikes, embargoes, pandemics, acts of God, war and civil disobedience. If this provision is invoked, the parties agree to immediately take all reasonable steps to alleviate, cure, minimize or avoid the cause preventing such performance, at their sole expense. AGENDA ITEM #6. i) Page 90 First Amended and Restated Contract for the Supply of Water City of Renton X.J. Successors This Contract shall inure to the benefit of and be binding upon the parties and their successors and assigns. X.K. Exhibits Exhibits I through IX are attached hereto and incorporated herein. To the extent this Contract authorizes the parties to amend a specific exhibit by letter agreement, such amended exhibit will become attached and incorporated herein upon the effective date of the letter agreement. AGENDA ITEM #6. i) Page 91 First Amended and Restated Contract for the Supply of Water City of Renton SIGNATURE PAGE IN WITNESS WHEREOF, the parties hereby execute this Contract. THE CITY OF RENTON BY: TITLE: _ DATE AUTHORIZING LEGISLATION: ORDINANCE/RESOLUTION THE CITY OF SEATTLE BY: General Manager, Seattle Public Utilities DATE: AUTHORIZING LEGISLATION: ORDINANCE No. AGENDA ITEM #6. i) Page 92 First Amended and Restated Contract for the Supply of Water City of Renton LIST OF EXHIBITS I. Purchase Commitment & Emergency, Independent and Purchased Supplies II. Service Connections, Minimum Hydraulic Gradients, and Flow Rates of Water Supplied III. Demand Charge Methodology IV. Operating Board Structure V. Facilities Charges VI. Regional Facilities VII. Subregional Facilities VIII. Index O&M Cost Categories IX. Stranded and Avoided Costs AGENDA ITEM #6. i) Pa g e 9 3 Fi r s t A m e n d e d a n d R e s t a t e d C o n tr a c t f o r t h e S u p p l y o f W a t e r Ci t y o f R e n t o n EX H I B I T I PU R C H A S E C O M M I T M E N T & E M E R G E N C Y , I N D E P E N D E N T A N D P U R C H A S E D S U P P L I E S Ci t y o f R e n t o n ’ s Pu r c h a s e C o m m i t m e n t i s i t s Pa r t i a l W a t e r R e q u i r e m e n t s . Ci t y o f R e n t o n i s se r v e d b y t h e Re n t o n Su b r e g i o n Ci t y o f R e n t o n re p r e s e n t s t h a t i t h a s a c c e s s t o t h e f o l l o w i n g Al t e r n a t e S u p p l i e s : I. EM E R G E N C Y S U P P L I E S A. Pu r c h a s e d S u p p l i e s / I n t e r t i e s : WA T E R U T I L I T Y LO C A T I O N O F IN T E R T I E ME T E R SI Z E CA P A C I T Y TY P E O F SE R V I C E AG R E E M E N T DA T E WA T E R S U P P L Y To / F r o m Co a l C r e e k U t i l i t y Di s t r i c t 26 1 0 L y n n w o o d A v e N E 8” 1, 2 5 0 g p m On e - w a y Em e r g e n c y 20 1 3 CA G - 1 9 3 - 01 Fr o m R e n t o n t o C o a l C r e e k Ci t y o f T u k w i l a (P R V 2 3 ) 17 3 0 0 W V a l l e y H w y S 8” 1, 8 7 5 g p m Tw o - w a y Em e r g e n c y 19 9 5 CA G - 9 5 - 03 4 Bo t h D i r e c t i o n s Ci t y o f K e n t (P R V 2 5 ) SE 4 3 rd S t & L i n d A v e S W 10 ” 1, 9 5 0 g p m Tw o - w a y Em e r g e n c y 19 9 5 CA G - 9 5 - 07 1 Bo t h D i r e c t i o n s Sk y w a y W a t e r & S e w e r Di s t r i c t 12 6 0 3 8 2 nd A v e S 12 ” 1, 2 5 0 g p m On e - w a y Em e r g e n c y 20 1 1 CA G - 1 1 - 18 7 Fr o m S k y w a y t o R e n t o n Ci t y o f S e a t t l e 20 0 0 K i r k l a n d A v e S E 8” 1, 4 0 0 g p m On e - w a y Em e r g e n c y 20 0 2 CA G - 1 1 - 18 8 Fr o m R e n t o n t o S e a t t l e Ci t y o f S e a t t l e Un i o n A v e S E & S E 2 nd P l 10 ” 2, 4 0 0 g p m On e - w a y Em e r g e n c y 20 0 2 CA G - 1 1 - 18 8 Fr o m R e n t o n t o S e a t t l e Wa t e r D i s t r i c t 9 0 SR - 9 0 0 & 1 4 4 th A v e S E No n e 1, 2 5 0 g p m On e - w a y Em e r g e n c y 20 1 4 CA G - 1 4 - 12 9 Fr o m R e n t o n t o W D 9 0 AGENDA ITEM #6. i) Pa g e 9 4 Fi r s t A m e n d e d a n d R e s t a t e d C o n tr a c t f o r t h e S u p p l y o f W a t e r Ci t y o f R e n t o n B. In d e p e n d e n t S u p p l i e s / W e l l s ( N o F a c i l i t i e s C h a r g e A l l o w a n c e ) : SO U R C E N A M E LO C A T I O N CA T E G O R Y (G W / S W * ) PE R M I T o r CL A I M # AM O U N T O F WA T E R R I G H T AV E R A G E A N N U A L PR O D U T I O N II . IN D E P E N D E N T S U P P L I E S ( C o n t i n u o u s U s e ) SO U R C E N A M E LO C A T I O N CA T E G O R Y (G W / S W ) PE R M I T o r CL A I M # AM O U N T O F W A T E R RI G H T AV E R A G E AN N U A L PR O D U T I O N FA C I L I T Y CH A R G E AL L O W A N C E In f i l t r a t i o n G a l l e r y (S p r i n g b r o o k S p r i n g ) GW GI - 2 0 6 0 5 - C 1, 6 8 0 - a c r e f e e t / y r 1, 0 5 0 g p m NA RW - 1 GW GW C - 8 8 6 - D 1, 6 7 6 - a c r e f e e t / y r 1, 0 4 0 g p m NA RW - 1 GW GW C - 5 8 3 8 - A 1, 5 3 6 - a c r e f e e t / y r 96 0 g p m NA RW - 2 GW GW C - 8 8 7 - D 83 8 - a c r e - f e e t / y r 1, 4 0 4 g p m NA RW - 3 GW GW C - 5 8 3 5 - A 2, 5 6 0 - a c r e f e e t / y r 1, 6 0 0 g p m NA RW - 1 , 2 , 3 GW GW C 5 8 3 6 - A 3, 1 3 6 - a c r e f e e t / y r 1, 9 6 0 g p m NA PW - 8 GW GW C 6 7 7 5 - A 4, 8 3 9 a c r e f e e t / y r 3, 0 0 0 g p m NA PW - 8 GW GW C 6 7 7 6 - A 80 0 - a c r e f e e t / y r 50 0 g p m NA AGENDA ITEM #6. i) Pa g e 9 5 Fi r s t A m e n d e d a n d R e s t a t e d C o n tr a c t f o r t h e S u p p l y o f W a t e r Ci t y o f R e n t o n SO U R C E N A M E LO C A T I O N CA T E G O R Y (G W / S W ) PE R M I T o r CL A I M # AM O U N T O F W A T E R RI G H T AV E R A G E AN N U A L PR O D U T I O N FA C I L I T Y CH A R G E AL L O W A N C E PW - 9 GW GI - 2 4 1 9 1 - C 1, 0 4 0 - a c r e f e e t / y r 1, 3 0 0 g p m NA PW - 5 A GW GW C - 3 5 9 1 - A 2, 0 0 0 - a c r e f e e t / y r 1, 3 0 0 g p m NA PW - 5 A GW GW C - 5 8 3 4 - A 32 0 - a c r e f e e t / y e a r 20 0 g p m NA Sp r i n g b r o o k C r e e k SW G1 - 2 0 6 0 5 - P 1, 6 8 0 - a c r e f e e t / y r 1, 0 5 0 g p m NA PW - 1 1 GW GI - 2 4 7 8 1 - P 1, 7 9 2 - a c r e f e e t / y r 1, 6 0 0 g p m NA PW - 1 1 GW GI - 2 5 3 9 6 - P 1, 0 0 8 - a c r e f e e t / y r 90 0 g p m NA PW - 1 2 GW GI - 2 4 7 8 2 - P 1, 7 9 2 - a c r e f e e t / y r 1, 6 0 0 g p m NA PW - 1 7 GW GI - 2 5 3 9 7 - P 1, 6 8 0 - a c r e f e e t / y r 1, 5 0 0 g p m NA T O T A L 1 4, 8 0 9 . 5 a c r e f e e t / y r * * * * 1 5 , 1 5 2 . 3 g p m * * * * * ** * * T o t a l a n n u a l w i t h d r a w a l f r o m a l l s o u r c e s a n d w a t e r r i g h t s sh a l l n o t e x c e e d 1 4 , 8 0 9 a c r e - f e e t pe r D e p a r t m e n t o f E c o l o g y ’ s p e rm i t c o n d i t i o n s ** * * * T o t a l i n s t a n t a n e o u s f l o w r a t e s f r o m a l l c e r t i f i c a t e d w a t e r r i g h t s i s 1 5 , 1 5 2 g p m 1. W a t e r U t i l i t y s h a l l u s e i t s b e s t e f f o r t s t o m a i n t a i n a n d o p e r a t e t h e I n d e p e n d e n t S u p p l i e s l i s t e d a b o v e , i f a n y , i n o r d e r t o ma i n t a i n t h e l i s t e d a v e r a g e an n u a l p r o d u c t i o n f o r e a c h I n d e p e n d e n t S u p p l y . 2. W a t e r U t i l i t y s h a l l p r o v i d e w r i t t e n n o t i c e t o S e a t t l e w i t h i n t h i r t y d a y s o f d e t e r m i n i n g t h a t i t i s n o t p o s s i b l e o r n o t c o s t ef f e c t i v e t o m a i n t a i n a n d o p e r a t e an I n d e p e n d e n t S u p p l y a t i t s l i s t e d a v e r a g e a n n u a l p r o d u c t i o n . S u ch w r i t t e n n o t i c e s h a l l d e s c r i b e t h e n e w l e v e l o f a v e r a g e a n n u al p r o d u c t i o n e x p e c t e d fo r I n d e p e n d e n t S u p p l y . S e a t t l e m a y d e c r e a s e th e F C A l l o w a n c e u n d e r S e c t i o n I V . D . 2 . c . T h e p a r t i e s w i l l r e v i s e t h i s S e c t i o n I I o f E x h i b i t I b y l e t t e r AGENDA ITEM #6. i) Pa g e 9 6 Fi r s t A m e n d e d a n d R e s t a t e d C o n tr a c t f o r t h e S u p p l y o f W a t e r Ci t y o f R e n t o n ag r e e m e n t t o r e f l e c t t h e n e w a v e r a g e a n n u a l p ro d u c t i o n o r d e c r e a s e d F C A l l o w a n c e . 3. W a t e r U t i l i t y s h a l l u s e i t s b e s t e f f o r t s t o c u r e a n y t e m p o r a r y in t e r r u p t i o n o f w a t e r s u p p l y f r o m a n I n d e p e n d e n t S u p p l y . W a t e r U t i l i t y s h a l l p r o v i d e o r a l no t i c e t o S e a t t l e o f a n y i n t e r r u p t i o n l a s t i n g l o ng e r t h a n 1 w e e k a n d t h e e x p e c t e d a d d i t i o na l d e m a n d f o r w a t e r d e l i v e r i e s f r o m S ea t t l e r e s u l t i n g f r o m t h e in t e r r u p t i o n . W a t e r U t i l i t y s h a l l u s e i t s b e s t ef f o r t s t o m i n i m i z e t h e i m p a c t o f a n i n t e r r u p ti o n o f a n I n d e p e n d e n t S u p p l y o n t h e S e a t t l e R e g i o n a l W a t e r Su p p l y S y s t e m b y u t i l i z i n g i t s o t h e r I n d e p e n d e n t S u p p l i e s , i f a n y , u n a f f e c t e d b y t h e i n t e r r u p t i o n w i t h i n t h e i r o p e r a t i n g a n d m ai n t e n a n c e c o n s t r a i n t s . 4. I t i s t h e i n t e n t o f t h e p a r t i e s t h a t t h e l i s t e d a v e r a g e a n n u al p r o d u c t i o n f a i r l y r e p r e s e n t s th e a v e r a g e a n n u a l p r o d u c t i o n o f t h e I n d e p e n d e n t S u p p l i e s . I n th e e v e n t t h a t , o v e r a 5 y e a r p e r i o d , ( i ) t h e a c t u a l a v e r a g e a n nu a l p r o d u c t i o n , a s m a y b e a d j u s t e d t o r e f l e c t a r e a s o n a b l y u n f o re s e e a b l e i n t e r r u p t i o n i n t h e In d e p e n d e n t S u p p l i e s t h a t l a s t s a s u b s t a n t i a l am o u n t o f t i m e a n d i s c u r e d w i t h i n a r ea s o n a b l e t i m e , i s c o n s i s t e n t l y l e s s t h a n re p r e s e n t e d , a n d ( i i ) t h e an n u a l d e l i v e r i e s o f w a t e r t o W a t e r U t i l i t y b y S e a t t l e a r e c o n s i s te n t l y i n c r e a s i n g , t h e l i s t e d a v er a g e a n n u a l p r o d u c t i o n s h a l l be r e v i s e d b y l e t t e r a g r e e m e n t to r e f l e c t t h e r e d u c t i o n . S e a t t l e m a y a l s o d e c r e a s e t h e F C A l l o w a nc e u n d e r S e c t i o n I V . D . 2 . c , w h i c h d e c r e a s e s h a l l a l s o b e r e v i s ed i n t h e l e t t e r a g r e e m e n t . 5. W a t e r U t i l i t y s h a l l p r o v i d e S e a t t l e w i t h s i x m o n t h s ’ w r i t t e n n o t i c e b e f o r e p l a c i n g a n y n e w o r i m p r o v e d I n d e p e n d e n t S u p p l y i n to p r o d u c t i o n a n d t h e pa r t i e s w i l l r e v i s e t h i s S e c t i o n I I o f E x h i bi t I t o r e f l e c t t h e n e w o r i m p r o v e d I n d e p e nd e n t S u p p l y a n d n e w o r i n c r e a s e d a v e r a g e a n n u a l p r o d u c t i o n c a p a c i t y . Th i s c o n d i t i o n i s i n d e p e n d e n t o f a n d i n a d d i t i o n t o a n y o t h e r ap p l i c a b l e p r o v i s i o n s i n t h e C o n t r a c t r e l a t i n g t o a d d i n g a n e w o r i m p r o v e d I n d e p e n d e n t Su p p l y ( e . g . S e c t i o n s I I . B . 5 , r e d u c i n g P u r c ha s e C o m m i t m e n t a n d I I . D . 9 , W a t e r Q u a l i t y p r ov i s i o n s f o r i n t r o d u c i n g n e w A l t e r n a t e S up p l y ) . 6. W a t e r U t i l i t y s h a l l m a i n t a i n r e c o r d s o f t h e mo n t h l y p r o d u c t i o n o f e a c h I n d e p e n d e n t S u p p l y i n a m a n n e r c o n s i s t e n t w i t h i n d u s t ry s t a n d a r d s . II I . P U R C H A S E D S U P P L I E S ( C o n t i n u o u s U s e ) NA M E LO C A T I O N ME T E R SI Z E AM O U N T CO N D I T I O N S ON U S E DA T E RE C E I V E D RE Q U E S T EF F E C T I V E DA T E EX P I R A T I O N DA T E FA C I L I T I E S CH A R G E AL L O W A N C E 1. W a t e r U t i l i t y s h a l l u s e i t s b e s t e f f o r t s t o m a i n t a i n u s e o f P u rc h a s e d S u p p l i e s l i s t e d a b o v e , i f a n y , i n o r d e r t o m a i n t a i n t h e l i s t e d a v e r a g e a n n u a l pr o d u c t i o n f o r e a c h P u r c h a s e d S u p p l y . 2. W a t e r U t i l i t y s h a l l p r o v i d e w r i t t e n n o t i c e t o S e a t t l e w i t h i n t h i r t y d a y s o f d e t e r m i n in g t h a t i t i s n o t p o s s i b l e o r n o t c o s t ef f e c t i v e t o m a i n t a i n u s e o f Pu r c h a s e d S u p p l y a t i t s l i s t e d a v e r a g e a n nu a l p r o d u c t i o n . S u c h w r i t t e n n o t i c e s h a l l d e s c ri b e t h e n e w l e v e l o f a v e r a g e a n n u a l p r od u c t i o n e x p e c t e d f o r Pu r c h a s e d S u p p l y . S e a t t l e m a y d e c r e a s e t h e F C A l l o w a n c e u n d e r S e c t i o n I V . D . 2 . c . T h e p a r t i e s w i l l r e v i s e t h i s S e c t i o n I I I o f E x hi b i t I b y l e t t e r a g r e e m e n t to r e f l e c t t h e n e w a v e r a g e a n n u a l p r o d u c ti o n o r d e c r e a s e d F C A l l o w a n c e . AGENDA ITEM #6. i) Pa g e 9 7 Fi r s t A m e n d e d a n d R e s t a t e d C o n tr a c t f o r t h e S u p p l y o f W a t e r Ci t y o f R e n t o n 3. W a t e r U t i l i t y s h a l l u s e i t s b e s t e f f o r t s t o c u r e a n y t e m p o r a ry i n t e r r u p t i o n o f w a t e r s u p p l y fr o m a P u r c h a s e d S u p p l y . W a t e r U ti l i t y s h a l l p r o v i d e o r a l no t i c e t o S e a t t l e o f a n y i n t e r r u p t i o n l a s t i n g l o ng e r t h a n 1 w e e k a n d t h e e x p e c t e d a d d i t i o na l d e m a n d f o r w a t e r d e l i v e r i e s f r o m S ea t t l e r e s u l t i n g f r o m t h e in t e r r u p t i o n . W a t e r U t i l i t y s h a l l u s e i t s b e s t e f f o r t s t o m i n i m i z e t h e i m p a c t o f a n i n t e r r u p t i o n o f a Pu r c h a s e d S u p p l y o n t h e S ea t t l e R e g i o n a l W a t e r S u p p l y Sy s t e m b y u t i l i z i n g i t s o t h e r P u r c h a s e d S u pp l y S o u r c e s u n a f f e c t e d b y t h e i n t e r r u p t i o n w i t h i n t h e i r o p e r a t i n g a n d m a i n t e n a n c e c o ns t r a i n t s . 4. I t i s t h e i n t e n t o f t h e p a r t i e s t h a t th e l i s t e d a m o u n t f a i r l y r e p r e s e n t s t h e a v er a g e a n n u a l a m o u n t o f t h e P u r c h a s e d S u p p l i e s . I n t h e e v e n t t h a t , o v e r a 5 ye a r p e r i o d , ( i ) t h e a c t u a l a v e r a g e a n n u a l a m o u nt , a s m a y b e a d j u s t e d t o r e f l e c t a r e as o n a b l y u n f o r e s e e a b l e i n t e r r u p t i o n i n t h e P u r c h a s e d S u p p l i e s t h a t la s t s a s u b s t a n t i a l a m o u n t o f t i m e a n d i s c u r e d w i t h i n a r e a s o n a b l e t i m e , i s c o n s i s t e n tl y l e s s t h a n r e p r e s e n t e d , a n d ( i i ) t h e a n n u a l d e l i v e r i e s o f w a t e r t o Wa t e r U t i l i t y b y S e a t t l e a r e c o n s i s t e n t l y i n c r e a s i n g , t h e l i s t e d a v e r a g e a n n u a l p r o d u c t i o n s h a l l b e r e v i s e d b y l e t t e r a g r e e m e n t t o r e f l e c t t h e r e d u c t i o n . Se a t t l e m a y a l s o d e c r e a s e t h e F C A l l o w a n c e u n d e r S e c t i o n I V . D . 2 . c , w h i c h d e c r e a s e s h a l l a l s o b e r e v i s e d i n t h e l e t t e r a g r e e m e n t . 5. W a t e r U t i l i t y s h a l l p r o v i d e S e a t t l e w i t h s i x m o n t h s ’ w r i t t e n n o ti c e b e f o r e p l a c i n g a n y n e w o r i m p r o v e d P u r c h a s e d S u p p l y i n t o p r o d u c t i o n a n d t h e pa r t i e s w i l l r e v i s e t h i s S e c t i o n I I I o f E x h i b i t I t o r e f l e c t t h e ne w o r i m p r o v e d P u r c h a s e d S u p p l y a n d n e w o r i n c r e a s e d a m o u n t . Th i s c o n d i t i o n i s in d e p e n d e n t o f a n d i n a d d i t i o n t o a n y o t he r a p p l i c a b l e p r o v i s i o n s i n t h e C o n t r a c t r el a t i n g t o a d d i n g a n e w o r i m p r o v e d P u r c h a s e d S u p p l y ( e . g . S e c t i o n s II . B . 5 , r e d u c i n g P u r c h a s e C o m m i t m e n t a n d I I . D . 9 , W a t e r Q u a l i t y p r o v i s i o n s f o r i n t r o d u c i n g ne w A l t e r n a t e S u p p l y ) . 6. W a t e r U t i l i t y s h a l l m a i n t a i n r e c o r d s o f t h e m o nt h l y a m o u n t o f e a c h P u r c h a s e d S u p p l y in a m a n n e r c o n s i s t e n t w i t h i n d u s t r y s t a nd a r d s . IV . R E D U C T O N S I N P U R C H A S E C O M M I T M E N T S – S T R A N D E D C O S T NA M E RE D U C T I O N NO T I C E RE C E I V E D AM O U N T O F RE D U C T I O N AU T O M A T I C A L L Y AL L O W E D RE D U C T I O N S I N II . B . 5 . d . v i i i RE D U C T I O N NO T I C E S R E C E I V E D AF T E R E F F E C T I V E DA T E ST R A N D E D C O S T AGENDA ITEM #6. i) Pa g e 9 8 Fi r s t A m e n d e d a n d R e s t a t e d C o n tr a c t f o r t h e S u p p l y o f W a t e r Ci t y o f R e n t o n V. A P P R O V E D R E S A L E O F S E A T T L E W A T E R NA M E LO C A T I O N ME T E R SI Z E AM O U N T CO N D I T I O N S ON U S E EF F E C T I V E DA T E EX P I R A T I O N DA T E Sk y w a y W a t e r a n d S e w e r D i s t r i c t (f o r m a l l y B r y n M a w r / L a k e r i d g e W a t e r an d S e w e r D i s t r i c t ) 80 th A v e S & S 1 2 6 th S t 10 ” 1, 9 5 0 g p m Wh o l e s a l e w a t e r to S k y w a y 19 9 3 CA G - 9 3 - 09 7 Ef f e c t i v e u n t i l te r m i n a t e d b y pa r t i e s VI . W A T E R S U P P L Y C O N T R A C T S O R A G R E E M E N T S W I T H O T H E R W A T E R U T I L I T I E S x CA G - 9 3 - 0 9 7 – A g r e e m e n t w i t h B r y n M a w r / L a k e r i d g e W a t e r a n d S e w e r D i s t r i c t , no w k n o w n a s S k y w a y W a t e r & S e w e r D i s t r i c t f o r W a t e r S u p p l y an d J o i n t S t o r a g e a n d T r a n s m i s s i o n f a c i l i t i e s . T h i s a g r e e m e n t d a t e d J a n u a r y 1 , 1 9 9 3 , i s f o r t h e f i n a n c i n g a n d c o s t - s h a r i n g b e t we e n t h e C i t y a n d th e D i s t r i c t f o r t h e d e s i g n , c o n s t r u c t i o n , op e r a t i o n , m a i n t e n a n c e a n d j o i n t - u s e o f t h e C i t y ’ s W e s t H i l l 1 . 3 M G r e s e r v o i r a n d t r an s m i s s i o n m a i n s . Th e a g r e e m e n t a l s o p r o v i d e s f o r t h e w h o l e s a l e o f w a t e r f r o m t h e C i t y t o t h e D i s t r i ct . T h e C i t y s u p p l i e d t h e D i s t r i c t a n a v e r a g e o f 0 . 1 5 M G D o v e r th e p a s t s i x y e a r s t h r o u g h a s i g n a l 1 0 - i n c h m e t e r e d c o n n e c t i o n . T h e a g r e e m e n t w a s e f fe c t i v e o n J a n u a r y 1 9 9 3 a n d s h a l l r e m a i n e ff e c t i v e u n t i l i t i s te r m i n a t e d b y a g r e e m e n t o f t h e p a r t i e s . x CA G 0 2 - 1 2 3 – Ag r e e m e n t f o r t h e s a l e o f w a t e r i n a n e m er g e n c y b y t h e C i t y o f R e n t o n t o t h e C it y o f S e a t t l e , d a t e d N o v e m b e r 3 0 , 2 0 0 2 . x CA G 9 5 - 0 3 4 – Ag r e e m e n t f o r t h e s a l e o f w a t e r i n a n e m e r g e n c y b y t h e C it y o f R e n t o n a n d t h e C i t y o f T u k w i l a , d a t e d M a r c h 2 1 , 1 9 9 5 . x CA G 9 5 - 0 7 1 – Ag r e e m e n t f o r t h e s a l e o f w a t e r i n a n e m e r g e n c y b y t h e Ci t y o f R e n t o n a n d t h e C i t y o f K e n t , d a t e d M a y 1 5 , 1 9 9 5 . x 20 1 1 A g r e e m e n t - Ag r e e m e n t f o r t h e s a l e o f w a t e r i n a n e m e r g e n c y b y t h e C i t y o f R e n t o n a n d S k y w a y W a t e r a n d S e w e r D i s t r i c t . T h i s a g r e e m e n t wa s s i g n e d b y b o t h a g e n c i e s o n O c t o b e r 1 0 , 2 0 1 1 . T h e e m e r g e n c y i n t e r t i e w a s c o n s t r u c t e d i n 2 0 0 6 a n d i s c u r r e n t l y o p e r a t i o n a l . x 20 1 1 A g r e e m e n t – fo r t h e s a l e o f w a t e r i n a n e m e r g e n c y b y th e C i t y o f R e n t o n a n d C o a l C r e e k U t i l i t y D i s t ri c t . T h i s a g r e e m e n t w a s s i g n e d b y b o t h ag e n c i e s o n F e b r u a r y 2 5 , 2 0 1 3 . T h e e m e r g e n c y i n t e r t i e w a s c o n s t r u c t e d i n 2 0 0 9 a n d is c u r r e n t l y o p e r a t i o n a l . AGENDA ITEM #6. i) Pa g e 9 9 Fi r s t A m e n d e d a n d R e s t a t e d C o n tr a c t f o r t h e S u p p l y o f W a t e r Ci t y o f R e n t o n EX H I B I T I I SE R V I C E C O N N E C T I O N S , M I N I M U M H Y D R A U L I C G R A D IE N T S , A N D F L O W R A T E S O F W A T E R S U P P L I E D SE R V I C E C O N N E C T I O N ( 1 ) MI N I M U M H Y D R A U L I C GR A D I E N T F O R P L A N N I N G PU R P O S E S A T S T A T I O N UP S T R E A M O F M E T E R (F E E T NA V D - 8 8 D a t u m ) FL O W R A T E U P T O W H I C H TH E M I N I M U M HY D R A U L I C GR A D I E N T AP P L I E S ( g p m ) (3 ) ( 4 ) LO C A T I O N ST A T I O N NU M B E R (2 ) PI P E L I N E SE G M E N T NU M B E R (2 ) SI Z E O F ME T E R (I N . ) CR P L 4 R O W & S h a t t u c k A v e S 33 13 6 46 5 Ba c k u p CR P L 4 R O W & B e n s o n R d S 34 13 8 47 0 Ba c k u p CR P L s R O W & J o n e s A v e S 36 10 6 47 0 Ba c k u p CR P L s R O W e a s t o f R e n t o n A v e S 37 10 3 47 0 Ba c k u p CR P L s R O W & 8 4 th A v e S 38 10 6 46 5 Ba c k u p CR P L s R O W & K i r k l a n d A v e S E (1 2 3 rd A v e S E ) 39 10 10 47 5 Ba c k u p Lo g a n A v e n e a r 2 nd S t (5 ) 17 9 10 10 46 0 13 5 Lo g a n A v e n e a r 2 nd S t (5 ) 18 0 10 10 46 0 CR P L 4 R O W n e a r B o e i n g ’ s Lo n g a c r e s s i t e 19 6 13 10 46 0 65 To t a l 20 0 AGENDA ITEM #6. i) Pa g e 1 0 0 Fi r s t A m e n d e d a n d R e s t a t e d C o n tr a c t f o r t h e S u p p l y o f W a t e r Ci t y o f R e n t o n No t e s : (1 ) Wa t e r i s p r o v i d e d t o S e r v i c e C o n n e c t i o n s a t a W h o l e s a l e L e v e l o f S e r v i c e . (2 ) St a t i o n a n d P i p e l i n e S e g m e n t N u m b e r s a r e f o r i n f o r m a t i o n p u r p o s e s a n d p e r t a i n t o c o s t a l l o c a t i o n s a n d t h e d e m a n d m e t e r i n g p r o g r am . (3 ) Th e T o t a l i s b a s e d o n C i t y o f S e a t t l e ’ s e s ti m a t e o f Wa t e r U t i l i ty ’ s a v e r a g e d a i l y d e m a n d f o r 2 0 4 0 mu l t i p l i e d b y a p e a k i n g f a c t o r o f 2 . 0 f o r p e a k d a y u s e . S e a t t l e a n d W a t e r Ut i l i t y a g r e e d t o t h e a l l o c a t i o n s o f t h e T o t a l t o e a c h S e r v i c e C o n n e c t i o n . (4 ) Pu r s u a n t t o S e c t i o n I I I . A o f t h e C o n t r a c t , Wa t e r U t i l i t y m a y u s e a l l o r so m e o f t h e f l o w s r a t e s a l l o ca t e d t o e a c h Se r v i c e C o n n e ct i o n o n a n y o t h e r S e r v i c e C o n n e c t i o n t h a t i s lo c a t e d o n t h e s a m e P i p e l i n e S e g m e n t N u m b e r , b u t i n t h a t c a s e t h e m i n i m u m h y d r a u l i c g r a d i e n t s a r e n o t g u a r a n t e e d . (5 ) Th e s e S e r v i c e C o n n e c t i o n s i n c l u d e t h e S P U m e t e r v a u l t a n d a l l a p p u r t e n a n c e s n o r t h u p t o t h e f l a n g e s b e f o r e t h e 9 0 - d e g r e e b e n d s , a s d e f i n e d i n S e c t i o n I . AGENDA ITEM #6. i) Page 101 First Amended and Restated Contract for the Supply of Water City of Renton EXHIBIT III DEMAND CHARGE METHODOLOGY In order to meet the conditions of service in Section III and Exhibit II of the Contract, each Wholesale Customers has to construct adequate storage volume within their individual retail distribution system to avoid excessive peak flow withdrawals at the Service Connection and potential adverse impacts to the Seattle Regional Water Supply System or other Wholesale Customers. When Seattle has determined to implement demand charges for any period, Water Utility shall be subject to a demand charge if its average peak hourly flow rate from its 10 highest daily flow days exceeds its average daily flow rate from the same 10 days by more than 30% as more particularly described below. The demand charge and method of application shall be as follows: 1. At Water Utility’s cost, Seattle shall install metering devices that record hourly water deliveries at Service Connections. All other costs Seattle incurs to implement demand charges shall be allocated to the Existing Regional System Cost Pool; or New Transmission Cost Pool, upon approval by the Operating Board. 2. There shall be no requirement for Seattle to install demand-metering equipment or monitor water deliveries at all Service Connections for the purposes of implementing demand charges. Seattle, in its discretion, may choose to monitor water deliveries at all Service Connections, or the Service Connections of one or more Wholesale Customers based on considerations such as hydraulic capacity or other operational constraints in the Seattle Regional Water Supply System may be occurring. 3. When calculating Water Utility’s deficient storage and whether demand charges apply: a. Seattle may consider Service Connections to Water Utility on the same pipeline segment, or Service Connections that are on the same pipeline segment and subject to a joint operating agreement between Water Utility and another Wholesale Customer, as 1 Service Connection; and b. A “Day” commences at 9:00 a.m. and ends at 9:00 a.m. the following calendar day. c. The “Monitoring Period” will generally consist of the summer months of June, July, and August. However, if peak flow rates create adverse hydraulic or other operating conditions at other times, Seattle, in consultation with the Operating Board, may establish a different Monitoring Period. 4. For each Service Connection, Seattle will determine the ten Days within the Monitoring Period with the highest daily volume of water delivered. AGENDA ITEM #6. i) Page 102 First Amended and Restated Contract for the Supply of Water City of Renton 5. For each of those ten Days, Seattle will determine the “Demand Factor” for each Service Connection by dividing the peak hourly flow rate by the average flow rate for the same Day expressed in gallons per hour. 6. Seattle will average: a) the Demand Factors for the ten Days to get an “Average Demand Factor” and b) the daily volume for the same ten Days to get an “Average Daily Quantity” of water in gallons for each Service Connection. 7. If Water Utility’s Average Demand Factor exceeds 1.30 at any Service Connection(s), Water Utility will be subject to a demand charge. 8. If Water Utility is subject to a demand charge, Seattle will determine Water Utility’s deficient storage volume at each Service Connection where the Average Demand Factor exceeds 1.3 using the following formula: S = (F-1) Q: where S = deficient storage volume in gallons, F = Average Demand Factor and Q = Average Daily Quantity. 9. Seattle shall establish a Storage Deficiency Rate each rate study that is based on Seattle’s most recent actual cost to construct a reservoir, inflated to the most recent year that the Engineering News Record “ENR” index or equivalent inflation data is available. The Storage Deficiency Rate is the flat debt service payment required to finance the storage facility over 30 years at Seattle’s Average Cost of Debt at the time of each rate study, prorated for 1,000 gallons of storage. Example: Annual debt service cost of new reservoir at Average Cost of Debt Actual cost of new reservoir in 2012 $ 60,000,000 ENR Index in 2012 100.00 ENR Index in 2019 125.00 Increase in Index 1.25 Cost of new reservoir inflated to 2019 $ 75,000,000 Term of Debt 30 Years Seattle Average Cost of Debt in 2020 4.15% Annual Cost $ 4,416,596 Volume of new reservoir 61,000,000 Gallons Annual Debt Service per 1,000 Gallons $ 72 Storage Deficiency Rate $ 72 10. At each Service Connection subject to the demand charge, the demand charge shall be calculated as S/1000 times the Storage Deficiency Rate. The total demand charge for Water Utility shall be the sum of the demand charges for each Service Connection. The demand charge shall be due by March 31 the following calendar year, or Water Utility may request a payment agreement pursuant to Section VII of the Contract. AGENDA ITEM #6. i) Page 103 First Amended and Restated Contract for the Supply of Water City of Renton 11. Peak flows caused by emergencies in the Seattle Regional Water Supply System or Water Utility's retail distribution system during any Monitoring Period will be excluded in determining the demand charge. Peak flows caused by other unusual situations may also be excluded at Seattle’s sole discretion. Seattle may request documentation of any emergency or other situation from Water Utility to support a determination to exclude certain flows from demand charges during a Monitoring Period. 12. At Seattle sole discretion, Seattle may disallow daily flow rates which differ substantially from customer's daily consumption patterns in calculating the demand charge. 13. In case of malfunction of metering equipment during certain period causing loss of data, Seattle shall use the remaining data to determine the demand charge, if any. AGENDA ITEM #6. i) Page 104 First Amended and Restated Contract for the Supply of Water City of Renton EXHIBIT IV OPERATING BOARD STRUCTURE 1. Structure. The Operating Board (or “Board”) shall be structured as follows: a. The Board shall consist of seven (7) members, composed of three members representing Seattle Public Utilities (SPU), three members representing Seattle’s Wholesale Customers selected as described below, and one independent party selected as set forth below to be a tie-breaker as needed. Board members shall, to the best of their ability, act in the best interests of the Seattle Regional Water Supply System as a whole, not the interest of a group of utilities or an individual utility. b. The term of each Board position shall commence on January 1 and shall be for four (4) years. Terms of each Board position shall be staggered such that no more than two positions are renewed in any single year. Except for SPU members, Board members may serve not more than three successive terms. c. Three Board members representing the Wholesale Customers will be selected from the holders of the First Amended and Restated Contract for the Supply of Water, mutually agreed to pursuant to Section II.A.4.a. Wholesale Customers will be sorted into three categories based on utility size. The selected categories will be small, medium, and large utilities, which will be made up from approximately equal numbers of holders of Full and Partial Requirements Contracts. Each category of utility may elect, by majority vote (one vote per utility) its representative to the Operating Board. The Board will be recomposed on January 1, 2012 and every 5 years thereafter. Only Wholesale customers demonstrating their commitment to the region by agreeing to limits on purchase reductions contained in Section II.B.5 shall be eligible to be elected as a member of the Operating Board. d. The seventh member of the Board shall be a person having expertise in the operations of regional water supply systems. Such person shall be selected by majority vote of the other Board members. In the event of a deadlock in selecting the independent representative, the independent Board member shall be selected by Judicial Arbitration and Mediation Services Inc., of Seattle, Washington, or its successor. The seventh member shall not vote on issues coming before the Board unless there is a deadlock in the voting among the other six Board members. The seventh member may nevertheless express his or her opinions in Operating Board discussions. Such member shall have no employment, financial or contractual relationship with Seattle nor any Wholesale Customer or any other actual or apparent conflict of interest in holding this position. 2. Voting. Except as otherwise provided above, each member of the Board shall have one vote on all matters coming before the Board. Each Board member may appoint an alternate to vote in his or her absence. A quorum of four (4) Board members present shall be required for any vote. Members of the Board may not grant proxies for any vote. 3. Chairperson. The Board shall have a Chairperson who will be selected and have duties as defined below: AGENDA ITEM #6. i) Page 105 First Amended and Restated Contract for the Supply of Water City of Renton a. The Chairperson shall be selected at the first regularly scheduled meeting of each new year. b. All Chairpersons shall be selected by the Board using a nomination and voting process. c. Nomination for the position of Chairperson shall be taken from Board members. The Chairperson shall be selected based upon the simple majority vote of Board members. Should the Board fail to elect a Chairperson at the first regularly scheduled meeting of the new year, Seattle shall designate one of the SPU members to be the Acting Chairperson until such time as the Board elects a Chairperson. d. The Chairperson shall have the responsibility to call meetings, determine the agenda and preside over meetings. In the absence of the Chairperson, for whatever reason, Seattle shall designate one of the SPU members to be the Acting Chairperson for that meeting. The Chairperson shall also act as the spokesperson for the Board and liaison between the Administrator and the then current Seattle City Council’s Committee that considers matters related to Seattle Public Utilities. 4. Schedule/Procedures/Bylaws. The Board shall adopt a regular meeting schedule and notify all Wholesale Customers of the schedule. The Operating Board may adopt its own internal procedures and Bylaws. The latest edition of Roberts Rules of Order shall, in the absence of agreement by the Operating Board on procedural matters, govern all meetings and votes of the Operating Board. 5. Reporting. The Board will provide reports to the Wholesale Customers, SPU and to the appropriate Seattle City Council Committee, on its decisions and recommendations in a timely manner. 6. Responsibilities and Authority of the Board. The Operating Board shall have only those powers and authorities specifically and explicitly established by the clear terms of this Contract. 7. Expenses. The Board shall be authorized to incur reasonable expenses which will be allocated by the Board to either or both of the New Transmission or New Supply Cost Pools. AGENDA ITEM #6. i) Page 106 First Amended and Restated Contract for the Supply of Water City of Renton EXHIBIT V FACILITIES CHARGES A. Methodology to Calculate ERU Charges The ERU Charge is: the flat annual debt service payment required to finance the New Supply or New Transmission Facility for the lesser of (i) the facility life or (ii) the period over which new demand is projected to fully utilize the facility’s projected supply or transmission capacity - divided by - the average annual number of new ERUs of demand expected in each year. Seattle’s Average Cost of Debt at the time the facility is put into service shall be used to determine the flat debt service payment above. In the event that several New Supply or New Transmission Facilities are put into service simultaneously, the facilities may be considered together as providing a total new supply or new transmission capacity for a total construction cost. Example: A New Supply Facility costing $100 million is built with a projected total capacity of 100,000 ERUs and a 50-year facility life. Growth of 5,000 ERUs per year is projected over the next 20 years, so the facility is projected to be supplying its full capacity in 20 years. If this facility were financed over 20 years at Seattle’s Average Cost of Debt of 6% interest, the flat annual debt service payment would be $8.7 million and the ERU Charge would be $1,740 (8,700,000/5,000). At the time a subsequent New Supply or New Transmission Facility is put into service, but the capacity of a prior New Supply Facility has not yet been fully utilized, an ERU Charge for the subsequent facility shall be calculated separately according to the formula above, then averaged with the then-current ERU Charge from the prior facility. This average shall be weighted by the remaining number of ERUs at the then-current ERU Charge and the number of new ERUs being added at the new ERU Charge. This weighted average shall be the new ERU Charge, and the number of ERUs available at that weighted ERU Charge shall be the sum of the remaining ERUs for the prior facility plus the number of new ERUs for the subsequent facility. Example: 10 years ago, a $100 million New Supply Facility was constructed that can supply 100,000 ERUs. 50,000 ERUs remain at the ERU Charge of $1,740. This year, we construct a New Supply Facility costing $70 million and a 50-year facility life, with a projected capacity of 40,000 ERUs that is projected to be fully utilized in 10 years. The ERU Charge of the subsequent New Supply Facility alone using the formula above is $2,375. The weighted average ERU Charge for any of the 90,000 available ERUs is $2,022 (50,000 * $1,740 + 40,000 * $2,375) / 90,000). AGENDA ITEM #6. i) Page 107 First Amended and Restated Contract for the Supply of Water City of Renton B. ERU Factors by Connection Size Connection Size ERU Factors 1” and smaller 1.12 1 1/2" 5 2” 8 3” 22 4” 31 6” 66 8” 112 10” 169 12” 238 ERU Proving Methodology The size of the retail water service connection used to serve a retail customer depends upon both the total demand and the instantaneous flow required by that retail customer. For this reason, connection size is only a general indicator of the annual demand placed on water supplies by any particular retail customer. AGENDA ITEM #6. i) Page 108 First Amended and Restated Contract for the Supply of Water City of Renton EXHIBIT VI REGIONAL FACILITIES I. Existing Regional Facilities 1. Cedar Source x All roads, buildings, structures, water supply facilities, other equipment and infrastructure, recreational and educational facilities, downstream habitat enhancement, fisheries enhancement and mitigation facilities located within or close to the Cedar River Hydrographic Watershed boundary as defined by Seattle land ownership or other contractual rights, including the land itself, and any capitalized or amortized studies or obligations related to the above. Excepted are facilities solely owned by Seattle City Light for the purpose of power generation. Facilities shared by Seattle City Light and Seattle Public Utilities shall be part of the Seattle Regional Water Supply System only to the extent of SPU share or responsibility. x All roads, buildings, structures, water supply facilities, and other equipment and infrastructure located within the Lake Youngs Reservation as defined by Seattle ownership of the land, including the land itself and any capitalized or amortized studies or obligations related to the above. x All facilities, structures, and other equipment and infrastructure located within the Lake Youngs Aqueduct, the Landsburg Tunnel, and the Lake Youngs Supply Lines right-of-way, including the right-of-way itself. 2. Tolt Source x All roads, buildings, structures, water supply facilities, other equipment and infrastructure, recreational and educational facilities, downstream habitat enhancement, fisheries enhancement and mitigation facilities located within or close to the South Fork Tolt River Hydrographic Watershed boundary as defined by Seattle land ownership or other contractual rights, including the land itself, and any capitalized or amortized studies or obligations related to the above. Excepted are facilities solely owned by Seattle City Light for the purpose of power generation. Facilities shared by Seattle City Light and Seattle Public Utilities shall be part of the Seattle Regional Water Supply System only to the extent of SPU share or responsibility. x Tolt Pipeline No. 1, from the Tolt Regulating Basin to the outlet of the Tolt Treatment Facility, including any transfer and ancillary small diameter parallel pipes. x Tolt Pipeline No. 2, from the Tolt Regulating Basin to the inlet of the Tolt Treatment Facility, including any transfer and ancillary small diameter parallel pipes, and including the connection to Tolt Pipeline No. 1 (a.k.a. TPL2 Phase 6b). x Tolt Treatment Facility, including its outlet line up to the connection to Tolt Pipeline No. 1. 3. Seattle Wellfields (formerly known as Highline Wells) x Riverton Wells, including all pumping and treatment equipment, original yard piping, to the AGENDA ITEM #6. i) Page 109 First Amended and Restated Contract for the Supply of Water City of Renton connection to CRPL4, and the low flow piping to Riverton Reservoir. x Boulevard Well, including all pumping and treatment equipment, and all piping up to the connection to CRPL4. x Any facilities related to operation of the Seattle Wellfields, such as for streamflow augmentation or mitigation. 4. Other x GIS Projects related to facilities identified herein as part of the Seattle Regional Water Supply System. x Hardware and Software projects related to facilities identified herein as part of the Seattle Regional Water Supply System. 5. Pipelines x Tolt Pipeline No. 1, from the outlet pipeline of the Tolt Treatment Facility to Lake Forest Reservoir, including any transfer and ancillary small diameter parallel pipes. x Tolt Pipeline No. 2, where constructed, west of the outlet of the Tolt Treatment Facility (a.k.a TPL2 Phases 1, 2, 3, and 4), including any transfer and ancillary small diameter parallel pipes. x Tolt Tieline. x Tolt Eastside Supply Line (from TESS Junction to the intersection of SE 16th Street and 145th Place SE). x Tolt Eastside Line Extension (from the intersection of SE 16th Street and 145th Place SE to Eastside Reservoir). x The 550 head Pipeline from Maple Leaf Reservoir to Lake Forest Reservoir, sections of which also known as “The Haller Lake Pipeline”, and “The 195th Street Pipeline”. x Lake Youngs Bypass No. 4 from the outlet of each of the Cedar Treatment Facility clearwells to Control Works, including Flow Control Facility 4. x Lake Youngs Bypass No. 5 from the outlet of each of the Cedar Treatment Facility clearwells to the Lake Youngs Tunnel, including Flow Control Facility 5. x The Lake Youngs Tunnel (from the original lake outlet to Control Works). x The Maple Leaf Pipeline (from the intersection of 18th Avenue E. and E. Prospect Street to Maple Leaf Reservoir). x Cedar River Pipeline No. 1 (CRPL1) from Control Works to the 24-inch remote controlled valve (a.k.a. “The CRPL1 to CRPL2 Valve” in the vicinity and east of Beacon Reservoir (primarily 66-inch pipeline). x The primarily 54-inch Pipeline known as “The Old Cedar River Pipeline No. 2”, from the 24-inch remote controlled valve (a.k.a. “The CRPL1 to CRPL2 Valve”) in the vicinity of Beacon Reservoir to the intersection of 18th Avenue E and E Prospect Street. x Cedar River Pipeline No. 2 (CRPL2) from Control Works to the 20-inch butterfly valve (a.k.a. “The CRPL2 to CRPL1 Valve”) in the vicinity and east of Beacon Reservoir (primarily 54-inch pipeline). x The primarily 42-inch pipeline known as “The Old Cedar River Pipeline No. 1”, from the 20-inch butterfly valve (a.k.a. “The CRPL2 to CRPL1 Valve”) in the vicinity and east of Beacon Reservoir to the intersection of 12th Avenue and E Olive Street. x The short pipeline sections of various diameters in the vicinity and east of Beacon Reservoir AGENDA ITEM #6. i) Page 110 First Amended and Restated Contract for the Supply of Water City of Renton connecting CRPL1, CRPL2, Old CRPL1 and Old CRPL2. x Cedar River Pipeline No. 3 from Control Works to the intersection of 18th Avenue E. and E. Prospect Street (primarily 66-inch). x 30” intertie pipeline between “The Old CRPL1” and CRPL3 in E Olive Street, from 12th Avenue to 18th Avenue. x The interconnections between the Maple Leaf Pipeline, Cedar River Pipeline No. 3, and the Old Cedar River Pipeline No. 2 in the vicinity of the intersection of 18th Avenue E and E Prospect Street. x Cedar River Pipeline No. 4 from Control Works to the West Seattle Pipeline. x West Seattle Pipeline from Augusta Gatehouse to Cedar River Pipeline 4. x The interconnections between the Cedar River Pipelines 1, 2, and 3 in the vicinity of 51st Avenue S and S Leo Street. x Cedar Eastside Supply Line (from the Cedar Wye to the intersection of SE 16th Street and 145th Place SE). x The 8th Avenue S. Pipeline between S. 146th Street and S. 160th Street. x The Bow Lake Pipeline (between 8th Avenue S. and CRPL 4, and as relocated outside runways at SeaTac Airport). x The Burien Feeder (in S. 146th Street between 8th Avenue S. and CRPL 4). x The Fairwood Line (between Fairwood Pump Station and Soos Reservoirs). x The 24-inch discharge pipeline of Lake Youngs Pump Station up to Soos Reservoirs. x The 12-inch discharge pipeline of Lake Youngs Pump Station up to Soos Reservoirs. x The 630 head pipeline between Lake Youngs Pump Station and the Cedar River WSD pump station at the eastern boundary of the Lake Youngs Reservation. 6. Reservoirs Reservoirs, Tanks, and Standpipes, including overflow pipes, all valves, appurtenances, and disinfection facility located on the premises of each storage facility, unless otherwise noted x Lake Forest Reservoir x Eastside Reservoir x Riverton Reservoir x Maple Leaf Reservoir (excluding Roosevelt Way Pump Station and its suction and discharge piping, Maple Leaf Tank and 520 zone piping, except where solely serving the disinfection facility) x Soos Reservoirs 7. Pump Stations Pump Stations, Major Valve Structures, and other transmission Facilities x Eastgate Pump Station x TESS Junction Pump Station x Lake Hills Pump Station x Maplewood Pump Station x Maple Leaf Pump Station x Bothell Way Pump Station AGENDA ITEM #6. i) Page 111 First Amended and Restated Contract for the Supply of Water City of Renton x Fairwood Pump Station x Lake Youngs Pump Station x The Control Works x Augusta Gatehouse x Duvall Shops 8. Service Connections to Wholesale Customers installed before January 1, 2002, and Service Connections assigned to the Existing Regional System Cost Pool pursuant to Section III.E.1., are part of the Existing Regional Facilities. Unless otherwise identified as regional, Service Connections to Wholesale Customers installed after December 31, 2001 shall not be considered Existing Regional Facilities. 9. The Existing Regional Facilities include all necessary and convenient appurtenances, including, but not limited to, rights of way, land ownership or contractual rights to use, e.g. easements, security infrastructure, dewatering facilities, line valves, system meters, and remote automation devices. II. New Supply Facilities 1. Regional Water Conservation Program. The capitalized or deferred cost of the Regional Water Conservation Program, which generally consists of rebate programs for customers to upgrade fixtures or equipment to more efficient models III. New Transmission Facilities [Reserved.] AGENDA ITEM #6. i) Page 112 First Amended and Restated Contract for the Supply of Water City of Renton EXHIBIT VII SUBREGIONAL FACILITIES AND ALLOCATIONS I. Eastern Subregion A. List of Eastern Subregional Facilities SEGMENT 1 (Cascade, Mercer Island, and Seattle) 1. The portion of the of the original Mercer Island Pipeline from the tee off the Cedar Eastside Supply Line in Factoria Boulevard SE to the west flange of the main line tee at the east end of the 16-inch Mercer Slough Bridge Pipeline (30-inch). SEGMENT 2 (Cascade, Mercer Island, and Seattle) l. The portion of the of the original Mercer Island Pipeline from the west flange of the main line tee at the east end of the 16-inch Mercer Slough Bridge Pipeline to the west flange of the 20- inch valve west of the wye to the East Channel Bridge Pipeline (30-inch). 2. The entire 16-inch Mercer Slough Bridge Pipeline (16-inch). 3. The portion of the East Channel Bridge 16-inch Pipeline, from the wye off item 1 of Segment 2 above to the north flange of the 16-inch line valve, including the valve bypass line. SEGMENT 3 (Mercer Island and Seattle) 1. The portion of the original Mercer Island Pipeline from the west flange of the 20-inch valve west of the Enatai service to Bellevue to the west flange of the tee for the Shorewood Apartments service on Mercer Island (20-inch across the East Channel, 24inch on Mercer Island). 2. The 16-inch East Channel Bridge Pipeline, except for the portion listed as item 3 of Segment 2 above. SEGMENT 4 (Mercer Island only) 1. The portion of the original Mercer Island Pipeline from the west flange of the tee for the Shorewood Apartments service on Mercer Island to the west end of the original Mercer Island pipeline near SE 43rd Street & 89th Ave SE on Mercer Island (24-inch). The facilities include the appurtenance of these transmission facilities including but not limited to rights of way, line valves, system meters and remote automation devices. AGENDA ITEM #6. i) Page 113 First Amended and Restated Contract for the Supply of Water City of Renton B. Allocation of Costs in the Eastern Subregional Cost Pool In each year, the costs of each Eastside Subregional Facility shall be allocated by the segments identified in Section I.A above based on Peak 7 Day flows through each segment. In the event that Peak 7 Day flow data is not available, Peak Month flows may be substituted. The annual cost of each segment is adjusted by the annual utility basis cost of the following initial amounts, amortized over 50 years starting in 1998. Segment 1: $73,157.01 increase Segment 2: $1,296,845.17 decrease Segment 3: $136,782.17 increase Segment 4: $72,442.13 increase Seattle shall establish a common rate for each Eastside Subregional segment that recovers the costs allocated to that segment plus any costs allocated from preceding segments to downstream segments based on the flow data used. Wholesale Customers served by Eastern Subregional Facilities as may be identified in Exhibit I will pay the applicable segment rates for every unit of water delivered to the Service Connection(s), or in Seattle’s case to the retail connection, on the identified segment, e.g. Service Connections on Segment 3 would pay the rate for Segment 3, which rate would recover costs allocated from Segments 1, 2 and 3. Seattle will track running balances and actual costs and actual revenues for each segment within the Eastside Subregional Cost Pool and shall true up each segment in a manner consistent with Section IV.H, except that Seattle may adjust the running balances between Segments 3 and 4 for a Wholesale Customer served by both Segments as follows: Seattle will track the portion of surplus or deficit balance created by each Wholesale Customer, including Seattle, in Segment 3 based on the percentage of revenues paid by each. If there is a surplus balance for Segment 3, Seattle may transfer all or a portion of the surplus created by the Wholesale Customer served by both Segments to reduce a running deficit balance for Segment 4 and credit Seattle for a proportionate share of the Segment 3 surplus. If there is a surplus balance for Segment 4, Seattle may transfer all or a portion of the surplus in Segment 4 to reduce the portion of a running deficit balance in Segment 3 created by the Wholesale Customer served by both Segments and charge Seattle for a proportionate share of the Segment 3 deficit balance. II. Southwestern Subregion A. List of Southwest Subregion Transmission Facilities 585 ZONE FACILITIES Pipelines 1. The discharge pipeline of Burien Pump Station, from the pump station to Ambaum Boulevard SW. AGENDA ITEM #6. i) Page 114 First Amended and Restated Contract for the Supply of Water City of Renton 2. The pipeline in 8 Ave SW from SW Kenyon Street to SW 108 Street. 3. The discharge pipeline of Highland Park Pump Station to SW 108th Street. 4. The 585 Pipeline in SW 108th Street between 4th Avenue SW and 12th Avenue SW. 5. The 585 head Pipeline in 4th Avenue SW between SW 108th Street and SW 146th Street. 6. The 585 Pipeline in 12th Avenue SW and Ambaum Boulevard SW between SW 108th Street and SW 146th Street. 7. The 585 Pipeline in Ambaum Boulevard SW between SW 146th Street and SW 149th Street. 8. The 585 pipeline in SW 149th Street between Ambaum Boulevard SW and 14th Avenue SW. 9. The 585 pipeline in 12 Ave SW from SW 108 Street to SW 106 Street. 10. The discharge of the Trenton Turbines pump station within the West Seattle Reservoir property, and up to SW Cloverdale Street. 11. The 585 pipeline in 5 Ave SW from SW Cloverdale Street to SW Kenyon Street. 12. The 585 pipeline in SW Kenyon Street from 5 Ave SW to 8 Ave SW. 13. The 585 pipeline in SW Kenyon Street from 8 Ave SW to 35 Ave SW. 14. The 585 pipeline in 35 Ave SW from SW Kenyon Street to SW Myrtle Street. 15. The 585 pipeline in SW Myrtle Street from 35 Ave SW to Myrtle Tanks. Pump Stations 1. Burien Pump Station, including its suction line from the 24-inch tee to the pump station. 2. Highland Park Pump Station, including its suction line from the tee off the 42-inch West Seattle Reservoir inlet-outlet line to the pump station. 3. Trenton Turbines Pump Station, including the suction/supply line from the pump station to the 36x36x20 tee. Tanks l. Beverly Park Tank, and all associated appurtenances and connections to the 585 zone. 2. Myrtle Tanks, and all associated appurtenances and connections to the 585 zone. WEST SEATTLE RESERVOIR FACILITIES l. The reservoir Gate House, except for the West Seattle Low Service Pump Station. 2. All reservoir appurtenances, including but not limited to the reservoir drain, washout, and overflow pipelines. 3. The reservoir bypass from the tee off the West Seattle Pipeline to the reservoir easterly outlet pipeline. AGENDA ITEM #6. i) Page 115 First Amended and Restated Contract for the Supply of Water City of Renton WEST SEATTLE PIPELINE FACILITY From the connection to Cedar River Pipeline No. 4 to the West Seattle Reservoir Gate House. DES MOINES WAY PIPELINE FACILITIES l. From the connection to the Bow Lake Pipeline as relocated outside SeaTac Airport, to S 168th Street. 2. South 168 Street to the terminus of the pipeline near S 208th Street. MILITARY ROAD FEEDER FACILITY THE EAST MARGINAL WAY FEEDER FACILITY From the West Seattle Pipeline to S 115 Street, including pressure reducing and pressure relief facilities from the West Seattle Pipeline to that feeder. The facilities include the appurtenance of these transmission facilities including but not limited to rights of way, line valves, system meters and remote automation devices. B. Allocation of Costs in the Southwest Subregional Cost Pool In each year, the cost of each Southwest Subregional Facility identified in Section II.A above shall be allocated between the Seattle Retail Distribution System and Wholesale Customers served by the Southwest Subregional Facilities as may be identified in Exhibit I as a group based on the following agreed upon allocations to the Wholesale Customers: FACILITY Allocation to Wholesale Customers 585 Zone 50% West Seattle Reservoir 10% West Seattle Pipeline 22% Des Moines Way Pipeline 100% Military Road Feeder 100% East Marginal Way Feeder 100% Wholesale Customers served by the Southwest Subregional Facilities shall pay a uniform rate to recover the costs from the Southwest Subregional Cost Pool allocated to the Wholesale Customers. This rate shall apply to every unit of water delivered to a Wholesale Customer served by Southwest Subregional Facilities without regard to the specific location at which that water was delivered. Actual costs and actual revenues for the Southwest Sub-region shall be trued up in a manner consistent with Section IV.H. AGENDA ITEM #6. i) Page 116 First Amended and Restated Contract for the Supply of Water City of Renton III. Renton Subregion A. List of Renton Subregional Facilities The 12-inch pipelines, from the outlets off the CRPLs l, 2, and 3 up to the south wall of the SPU meter vaults in Logan Avenue South. B. Allocation of Costs in the Renton Subregional Cost Pool In each year, the cost of all Renton Subregional Facilities shall be allocated to the Wholesale Customer(s) served by the Renton Subregional Facilities as may be identified in Exhibit 1. The Wholesale Customer(s) served by the Renton Subregional Facilities shall pay either a rate established by Seattle or a lump sum, to recover the costs allocated to the Renton Subregional Cost Pool. The rate shall apply to every unit of water delivered to Wholesale Customer(s) served by the Renton Subregional Facilities. The parties may agree to a payment agreement for a lump sum pursuant to Section VII.A. AGENDA ITEM #6. i) Page 117 First Amended and Restated Contract for the Supply of Water City of Renton EXHIBIT VIII INDEX O&M COST CATEGORIES The following cost categories as may be amended further from time to time, that capture the portion of O&M Costs to support Seattle Regional Water Supply System only shall be used as the Index O&M Costs in the Existing Regional System, New Supply and New Transmission Cost Pools. 1. Existing Regional System Cost Pool o Cedar, Tolt, and Lake Youngs Watersheds, including but not limited to ƒ Infrastructure and land: buildings, equipment, pipelines, security, roads, bridges, communication, IT ƒ Forest management, ecological management including ecological thinning net of timber sales revenue ƒ Dam safety ƒ Limnology ƒ Costs to comply with external requirements such as those imposed by Ecology, Tribes, FERC ƒ Management of the public, Patrols, Recreation ƒ Fire Protection including Wildland Fire Teams o Transmission ƒ Infrastructure and land: buildings, equipment, pipelines, security, roads, bridges, communication, IT, for the Pipelines, reservoirs, pump stations, major valve structures, and other transmission facilities as listed in Exhibit VII ƒ Vegetation Management ƒ Litter and vehicle removal ƒ Property costs including Fire Protection, permits, easements, and franchise fees o Treatment ƒ Infrastructure and land: buildings, equipment, pipelines, security, roads, bridges, communication, IT x Cedar Treatment Plant x Tolt Filtration Facility x Landsburg Treatment Facility x Other treatment in the Seattle Regional Water Supply System ƒ Water Quality Testing for tests described in Section II.D.6. o Regional planning ƒ Water rights ƒ Climate as it pertains to water supply or infrastructure in the Seattle Regional Water Supply System 2. New Supply Cost Pool o The Regional Water Conservation Program o Operating Board expenses, if allocated AGENDA ITEM #6. i) Page 118 First Amended and Restated Contract for the Supply of Water City of Renton 3. New Transmission Cost Pool o [Reserved] AGENDA ITEM #6. i) Page 119 First Amended and Restated Contract for the Supply of Water City of Renton EXHIBIT IX STRANDED AND AVOIDED COSTS 1. General Provisions Within 30 days of receipt of a Notice to reduce or terminate Water Utility’s Purchase Commitment under Section II.B.5.a, Seattle shall send a written notice to Water Utility, with a copy to the Operating Board, defining the amount of the reduction or termination that results in aggregate Water Utility reductions under this Contract that is in excess of the Water Utility’s total Automatically Allowed Reduction, and providing an annual schedule of the Preliminary Net Stranded Cost, or Preliminary Net Billing Credit, if applicable, calculated pursuant to the methodology in Section 2 below using the available documented information as of the time of the Notice. If any reduction by Water Utility results in it having aggregate reductions greater than 5% of the average purchases from Seattle for the most recent five years but less than or equal to its Automatically Allowed Reduction, the Stranded Cost for the portion above 5% will be paid by Seattle, through annual Stranded Cost payments as calculated below. Note: This basis for Seattle payments will apply both to Regional Stranded Cost calculations and to Subregional Stranded Cost calculations, as further defined below. On or before 180 days prior to the effective date of the Notice under Section II.B.5.b, Seattle shall send a written notice to Water Utility, with a copy to the Operating Board, providing a revised schedule of the Final Net Stranded Cost, or Final Net Billing Credit, if applicable, calculation pursuant to the methodology in Section 2 below using the available documented information as of 180 days prior to the effective date of the Notice under Section II.B.5.b which may reflect appropriate adjustments for changed circumstances during the Notice Period, as well as a calculation of any Stranded Cost obligation to be met by Seattle, as defined above. The Final Net Stranded Cost, or Final Net Billing Credit, if applicable, will be the payment, or credit, if applicable, required pursuant to Section II.B.5.c. Water Utility will pay the Final Net Stranded Cost, or agree to a schedule of payments with equivalent discounted present value, or receive the Final Net Billing Credit, if applicable, on or before the effective date of the Notice under Section II.B.5.b. If Water Utility is reducing its Purchase Commitment and will remain a Wholesale Customer, the parties may mutually agree to a payment schedule agreement to pay the Final Net Stranded Cost pursuant to Section VII.A of the Contract. For rate smoothing or financial performance purposes, Seattle, in consultation with the Operating Board, may select which cost pool the revenues are applied to and whether or not to delay revenue recognition to future years. In the event that Seattle acquires a new wholesale customer or a new block wholesale customer, or extends the size of the block contract to Cascade Water Alliance or other existing block wholesale AGENDA ITEM #6. i) Page 120 First Amended and Restated Contract for the Supply of Water City of Renton customer, these new regional sales will reduce prior demand reductions that are subject to Stranded Costs as follows: i) adjustments to prior reductions will be effective for all remaining years of the Contract, beginning with the first year of the new sales; ii) new customer sales or additional block sales amounts will be assigned to past Wholesale Customer demand reductions in order of their effective dates; iii) if the new sales amount is greater than the size of the first-in-time prior demand reduction, the remainder will be applied to the next-in-time demand reduction, and so on until either the new sales amount is exhausted or all prior reductions have been reduced to zero. In such cases, the schedule(s) of Water Utility’s Annual Stranded Costs for remaining years will be reduced proportionately or entirely as the case may be, and Water Utility will pay the reduced amount from that year forward or, if it has made a prior payment in excess of its Annual Stranded Costs, it will receive a credit of equivalent present value. 2. Stranded and Avoided Cost Methodology A. Annual Regional Stranded Costs and Annual Regional Avoided Costs: Seattle will first calculate Annual Regional Stranded Costs, and Annual Regional Avoided Costs, if applicable, for each year beginning with the first year Water Utility’s reduction or termination of its Purchase Commitment is effective through the last year of the current Contract term using the formula below. Seattle will use the most up to date and available documented information from its then current Water System Plan, or annual plans and statements including financial and accounting statements, official demand forecasts, etc. for all the projections required in the methodology i) as of the date of the Notice for the Preliminary Net Stranded Costs, or Preliminary Net Billing Credit, if applicable; and ii) as of 180 days prior to the effective date of the Notice for the Final Net Stranded Costs or Final Net Billing Credit, if applicable. AGENDA ITEM #6. i) Page 121 First Amended and Restated Contract for the Supply of Water City of Renton Annual Regional Stranded Costs for Year X = [DEP + NBV*RORI + FOC] * Share where: x DEP - the projected annual depreciation for the Regional Facilities as of the effective date of the Notice of the reduction or termination of Water Utility’s Purchase Commitment for year X, x NBV - the projected Net Book Value of the Regional Facilities as of the effective date of the Notice of the reduction or termination of Water Utility’s Purchase Commitment for year X, x RORI - the Rate of Return on Investment in effect at the time of the calculation (remains constant for all years), x FOC - the projected fixed portion of the Annual O&M Costs for year X, calculated as the Annual O&M Costs for the first year after the Effective Date (“year 1”) (i.e. Annual O&M Costs in year 1 * 90% , which represents a deduction of an agreed upon amount for variable operations costs that are reduced in proportion to Water Utility’s reduction or termination and therefore not included as Stranded Costs in the methodology), and escalated at 2.5% per year for each of the remaining years’ calculations through year X. x Share - the amount of Water Utility’s reduction or termination in excess of its Automatically Allowed Reduction, divided by the projected total Wholesale Customer demand for year X, multiplied by the total Wholesale Customer share of revenue requirements for year X (i.e. (Firm yield – block contract demand)/Firm yield). For this calculation, block demand priced at Wholesale Customer rates shall be considered Wholesale Customer demand. Annual Regional Avoided Costs for Year X = [DSN + NOC] * NSS where: DSN - The projected annual debt service payment for year X of 30-year debt at the then current Seattle Average Cost of Debt to finance the full cost of any New Supply Facility deferred by the reduction or termination, based on the then most current Seattle Water System Plan, NOC – The projected operations cost for year X for the SPU New Supply Facility, escalated at 2.5% per year from the first year through the end of the contract period, and NSS - The New Supply Share, defined as the ratio of the Water Utility's reduction in demand divided by the projected design capacity of the deferred New Supply Facility, as measured by average daily demand (ADD). B. Annual Subregional Stranded Costs: If Water Utility is served by Subregional Facilities, Seattle will calculate Annual Subregional Stranded Costs for each year beginning with the first year AGENDA ITEM #6. i) Page 122 First Amended and Restated Contract for the Supply of Water City of Renton Water Utility’s reduction or termination of its Purchase Commitment is effective through the last year of the Contract term using the formula below. Annual Subregional Stranded Costs for Year X = [SRDEP + SRNBV*RORI + SRFOC] * SRShare where: x SRDEP - the projected annual depreciation for the Subregional Facilities for year X x SRNBV - the projected Net Book Value of the Subregional Facilities for year X, x RORI - the Rate of Return on Investment in effect at the time of the calculation (remains constant for all years), x SRFOC - the projected fixed portion of the Annual O&M Costs for year X, calculated as the Annual O&M Costs for the first year after the Effective Date (“year 1”) (i.e. Annual O&M Costs in year 1 * 90% , which represents a deduction of an agreed upon amount for variable operations costs that are reduced in proportion to Water Utility’s reduction or termination and therefore not included in the methodology), and escalated at 2.5% per year for each of the remaining years’ calculations through year X. x SRShare - the amount of Water Utility’s reduction or termination divided by the projected total Subregional demand for year X in the relevant subregion. C. Totaling the Stranded Costs or Avoided Costs for all years: Seattle will then calculate the Net Stranded Costs or Net Billing Credit, if applicable, as follows by discounting each year of Annual Regional Stranded Costs and Annual Regional Avoided Costs (except year 1) and Annual Subregional Stranded Costs (if any, and except year 1) to its present value and then adding the first year and each of the discounted remaining years of the Annual Regional Stranded Costs; and subtracting first year and each of the discounted remaining years of the Annual Avoided Costs, if applicable; and adding the first year and each of the discounted remaining years of the Annual Subregional Stranded Costs, if any. If the difference is positive, a total Final Net Stranded Cost Payment is due from Water Utility and will reflect any applicable offset from Annual Avoided Costs. If the difference is negative, a total Final Net Billing Credit will be due from Seattle to Water Utility. Net Stranded Cost (or Net Billing Credit if negative) = Annual Regional Stranded Cost(1) – Annual Regional Avoided Cost(1) + Annual Subregional Stranded Cost(1) + [Annual Regional Stranded Cost (2) – Annual Regional Avoided Cost (2)+ Annual Subregional Stranded cost (2)]*Discount Factor(2) + …calculated for each year from 3 to n (see Illustrative Example of Annual Stranded & Avoided Cost Calculation)… + AGENDA ITEM #6. i) Page 123 First Amended and Restated Contract for the Supply of Water City of Renton [Annual Regional Stranded Cost(n) -Annual Regional Avoided Cost(n) + Annual Stranded Subregional Cost(n), if applicable]*Discount Factor(n) where: x Annual Regional Stranded Cost(1) – the Annual Regional Stranded Cost in the first year the reduction or termination is in effect, x Annual Regional Avoided Cost(1) – the Annual Avoided Cost in the first year the reduction or termination is in effect, x Annual Subregional Stranded Cost(1) – the Annual Subregional Stranded Cost in the first year the reduction or termination is in effect, x Annual Regional Stranded Cost(2) - the Annual Regional Stranded Cost in the second year the reduction or termination is in effect, x Annual Regional Avoided Cost(2) – the Annual Avoided Cost in the second year the reduction or termination is in effect, x Annual Subregional Stranded Cost(2) – the Annual Subregional Stranded Cost in the second year the reduction or termination is in effect, x Discount Factor(2) - the factor for discounting costs in the second year by one year, deemed to be the Annual O&M Cost escalation plus 2.5%. x Annual Regional Stranded Cost(n) - the Annual Regional Stranded Cost in the last year of the Contract term, deemed to be the Annual O&M Cost escalation plus 2.5%, x Annual Regional Avoided Cost(n) - the Avoided Cost in the last year of the Contract term, x Annual Subregional Stranded Cost(n) - the Annual Subregional Stranded Cost in the last year of the Contract term, and x Discount Factor(n) is the multiplied factor for discounting costs in the last year of the Contract term back to the first year the reduction is in effect, deemed to be the Annual O&M Cost escalation plus 2.5% per year, with the calculation including each of the years of the Contract term. AGENDA ITEM #6. i) Page 124 First Amended and Restated Contract for the Supply of Water City of Renton Illustrative Example of Annual Stranded & Avoided Cost Calculation: Reduction of 1.0 mgd (Million Gallons/Day) of Demand, not in a Subregion Annual Cost for 1 Year (2030) Projected Annual Depreciation $22 M Projected Net Book Value $400 M RORI 6.0% Total Annual Capital Costs $22 M + ($400M*6%) = $46 M $46 M Projected Annual O&M Cost in Year 1 $60 M Projected Fixed Operations Costs (FOC) in Year 1 $60 M*.90 $54 M1 Total Annual Regional System Cost $46 M + $54 M = $100 M $100 M Share of Annual Cost Associated with Reduction Regional System Firm Yield 172 mgd Block Contracts Portion of Firm Yield2 34.4 mgd Wholesale Customer plus Cascade Supplemental Block Share of Annual Revenue Requirements3 (172 – 34.4)/172 mgd = 80% Wholesale Customer Forecasted Demand plus Cascade Supplemental Block 100 mgd Water Utility’s Reduction 1 mgd Water Utility’s Share of Wholesale Customer plus Cascade Supplemental Block Demand associated with Reduction 80% * (1.0/100) = 0.80% 0.80% Annual Stranded Cost Water Utility’s Share = Annual Stranded Cost (2030) 0.80% * $100 M = $800,000 $800,000 Annual Regional Avoided Cost, New Supply (beginning 2055) New Supply Facility (2055 Cost) $600 M New Supply Facility Financing 30 years, 4% interest => $34.7 M/yr New Supply Facility O&M Cost in 2055 $8.5 M4 New System Supply Capacity 24 mgd Water Utility's Avoided Supply Share (beginning in 2055) (1.0/24.0)*($34.7 M + $8.5 M)=$1.80M $1,800,000 1 Each Year X after Year 1, the projected FOC will be escalated at 2.5%. 2 As of the Effective Date of this Contract, includes Cascade (Base Block only, not Supplemental Block) and Northshore Utility District block contract demand in each Year X at the full amount of their Blocks. 3 Cascade’s Supplemental Block is priced at the same regional rate paid by Wholesale Customers and is therefore included with Wholesale Customer demand at its full Supplemental Block size. 4 Each Year X after 2055, the projected NOC will be escalated at 2.5%. AGENDA ITEM #6. i) Page 125 First Amended and Restated Contract for the Supply of Water City of Renton Total Present Value of Annual Stranded Costs and Avoided Costs for a 1.0 mgd (Million Gallons/Day) Reduction Beginning in 2030, Reducing New Supply Needs in 2055 Year Annual Stranded Cost ($000) Annual Avoided Cost ($000) Annual Net Cost or Credit PV of Stranded & Avoided Costs ($000) 2030 $800 $0 $800 $800 2031 $796 $0 $796 $758 2032 $792 $0 $792 $718 2033 $788 $0 $788 $681 2034 $784 $0 $784 $645 2035 $780 $0 $780 $611 2036 $776 $0 $776 $579 2037 $772 $0 $772 $549 2038 $768 $0 $768 $520 2039 $764 $0 $764 $492 2040 $760 $0 $760 $467 2041 $768 $0 $768 $449 2042 $776 $0 $776 $432 2043 $784 $0 $784 $416 2044 $792 $0 $792 $400 2045 $800 $0 $800 $385 2046 $808 $0 $808 $370 2047 $816 $0 $816 $356 2048 $824 $0 $824 $342 2049 $832 $0 $832 $329 2050 $840 $0 $840 $317 2051 $850 $0 $850 $305 2052 $860 $0 $860 $294 2053 $870 $0 $870 $283 2054 $880 $0 $880 $273 2055 $890 $1,800 ($910) ($269) 2056 $900 $1,809 ($909) ($256) 2057 $910 $1,818 ($908) ($243) 2058 $920 $1,827 ($907) ($231) 2059 $930 $1,837 ($907) ($220) 2060 $940 $1,846 ($906) ($210) 2061 $950 $1,856 ($906) ($200) Total Net Stranded Cost $10,143 AGENDA ITEM #6. i) Exhibit B Key Elements of First Amendment to Water Supply Contract (CAG -11-093) Contract Section Description of amendment II.A.3 – Review of Contract Term New: Allows for successive 10-year contract extensions beginning Jan. 1, 2032. Utility may opt out at any extension. SII.A.4.b. – Seattle’s Right to Amend New - Establishes two review periods Jan. 1, 2042 (1st Review) and Jan. 1, 2062 (2nd Review). Seattle’s last limited right to amend the contract without agreement will be during the 1st Review period. II.A.4.c. – Limitations on Seattle’s Right to Amend. New - Provisions ix–xiii added at request of full and partial contact holders. II.B.5.* – Water Utility’s Right to Terminate or Reduce Purchase Commitment New – Adds provision for “Stranded Cost” (see Exhibit IX and details below). II.B.5.a.iii – Pre-Notice Request for Calculation of Stranded Costs New – Water Utility can request Seattle to perform preliminary calculation of stranded cost incurred by Utility prior to issuing a termination or reduction notice. II.B.6. – New or Extended Water Supply Contracts New – Any new or extended water supply contracts will be submitted to Operating Board for review and comment. II.C.2. – Emergency and Water Shortage Contingency Planning New – Seattle may provide training or coordinate emergency preparedness among utilities. II.D. – Water Quality Clarification in monitoring roles and flushing allowance updates. II.D.1. – Seattle Regional Water Supply System New – Utility may request Operating Board review of water quality concerns that it believes are not reasonably resolved by Seattle. II.E.2. – Regional Water Conservation - Role of Operating Board New- Formalizes Operating Board role in setting WUE goal and program budget. II.F. – Cedar River Watershed New – Adds use of Cedar River Watershed Education Center and tours. III.C.b. – Interconnections with other Systems - Payment and Indemnity. New – Removes prescribed formula; wheeling rate may be reviewed by Operating Board upon customer request. AGENDA ITEM #6. i) Contract Section Description of amendment III.E. – Metering Equipment New –Updates Seattle’s meter maintenance responsibilities and regional cost allocation criteria. IV.A.8 & 9. – Rate Making Principles Clarification - Capital contributions, FEMA reimbursements, etc., are excluded from rate setting. IV.C.1. – Existing Regional Cost Pool Modified - Merges Existing Supply and Transmission Cost Pools for improved rate stability and clarity. IV.C.1.a., 2.a., 3.a., and 5.a. – Cost Pools New – Seattle may update and add or delete regional or subregional assets as necessary. IV.C.4. – Operating Board Review New – Operating Board reviews/comments on design/construction of new supply or transmission facilities. IV.C.5. – Subregional Cost Pools Modified – All contracts now include all subregional cost pool information. IV.D.2.a. – Cost Basis New- Operating Board can choose between utility or cash basis. IV.D.2.c.iii. – Facility Charge Allowance for Supplies Modified - Purchased supplies now eligible for Facilities Charge Allowance during contract term. IV.D.3.a.i. – Index O&M Costs Clarified - Mechanics of current O&M calculation and updated 2002-vintage Multiplier. IV.D.3.a.ii. – Mixed-use Multiplier New – Added 5-year update cycle for Multiplier. IV.D.3.a.iii. – Non-index O&M Costs New – Establishes a mechanism to include non-index regional O&M costs—originally included in regional/subregional assets but excluded due to GASB changes. IV.D.3.d.iii. – Certain Large Net Disposition Costs New – Grants the Operating Board authority to amortize disposition costs exceeding 1% of Annual Index Costs. IV.G.4 - Rate Study and Review Consultant New – Operating Board to review and recommend revisions to scope work of independent rate consultant. New – Seattle shall conduct a cost-of- service rate study no less frequently than once every 5 years. at least once every five years. AGENDA ITEM #6. i) Contract Section Description of amendment IV.G.5.b.– Emergency Surcharge New – For emergency surcharges not linked to a specific cost pool, the Operating Board shall determine the cost pool to which revenues are applied. Section IV.G.5.b.– Emergency Surcharge New – For a surcharge not related to a specific cost pool, Operating Board shall determine to which cost pool the revenues shall be applied. IV.G.6.a. – Initial Existing Regional System Running Balance Surplus New – Seattle shall return the lesser of the Existing Regional System Cost Pool balance, or $82 million via lump sum payments within 60 days following full execution/amendment of all Full &Partial contracts, prorated by each utility’s water use since the balance became positive. IV.G.6.b. – Initial Existing Regional System Running Balance Surplus New – Seattle to begin cost-of- service rate study within 3 months following full execution/amendment of all Full & Partial contracts. IV.G.6.c. – Rebate based on Alternate Utility Costs New – Provides for a rebate if an alternative method of calculating return on investment results in a lower rate than the current contractual method. IV.H.1.a. – Wholesale Statement Review, Scope of Review New – Operating Board to determine procedures for annual review. IV.H.1.c. –Operating Board and Water Utility Right to Review New – If the utility’s accountant identifies overcharges exceeding 1% of the amount due, the accountant’s costs will be included in the Existing Regional Cost Pool. IV.H.2.a. – Running Balances Modification - Balances will now earn or accrue interest at Seattle’s cash pool rate, rather than the average cost of debt. IV.H.2.c. – Running Balance Surpluses New – Operating Board will annually decide whether any surplus is retained, applied toward assets, or returned to customers. During rate studies, the Board will determine the portion to retain versus the portion to apply toward rates. AGENDA ITEM #6. i) Contract Section Description of amendment IV.H.2.d. – Facility Charge Running Balances Modification –The upper limit of the Facility Charge surplus is increased from one time to two times the Net Book Value of New Supply Facilities. V. – Operating Board New - Wholesale customers who have agreed to automatic contract extensions, committed to purchasing full or partial requirements per Exhibit I, and accepted Section II.B.5, are eligible to have representatives voted onto the Operating Board. VI.C.3. – Seattle as Water Planning Agency Clarified – Seattle will serve as the Water Planning Agency for the contract duration, which may vary for customers who opt out of contract extensions. Exhibit I – Purchase Commitment, Emergency, Independent and Purchased Supplies Update – Revised to reflect updates to each utility’s Exhibit I. Exhibit VII – Subregional Facilities and Allocations New - Inclusion – Now part of all contracts. Memorializes historic adjustment of Mercer Island pipeline cost. Sets SW Subregional allocation percentages based on recent historical averages. Exhibit VIII – Index O&M Cost Categories Update – Updated descriptions of Regional Operations & Maintenance (O&M) cost categories. Exhibit IX – Stranded & Avoided Costs New – Establishes stranded cost and billing credit calculation methods. *Section II.B.5. Stranded Cost section - Water Utility may terminate or reduce its Purchase Commitment, subject to the following: • 5-year advance notice is required. • Utilities may request pre-notice calculations on stranded cost prior to submitting a termination or reduction request. Conditions/Effects of termination include: • Loss of Operating Board representation. • Contract terminates. • Full payment of decommissioning costs for connections. AGENDA ITEM #6. i) • Utility pays Final Net Stranded Cost Payment or receives Final Net Billing Credit (per Exhibit IX). Seattle may offer a new contract, subject to: • Seattle’s determination of available water. • No guarantee of Full or Partial Requirements contract. • New terms, possibly including special charges/rates. Conditions/Effects of reduction include: • Seattle may offer a new contract, subject to: • Seattle’s determination of available water. • No guarantee of Full or Partial Requirements contract. • New terms, possibly including special charges/rates. Not Considered Reduction: • Use of Emergency Supplies listed in Exhibit I • Customer-driven demand fluctuations • Participation in Conservation programs • Participation in Regional Shortage Management Contingency Plan • Contraction of Water Utility’s service area • Acquisition of additional independent supply through merger or acquisition. • Reduction notification prior to December 31, 2022 • Reduction in demand equal or less than 5% • Demand fluctuations that are outside Seattle or Water Utility control as a result from laws or regulations (e.g., reuse water) AGENDA ITEM #6. i) ϭ /dzK&ZEdKE͕t^,/E'dKE  Z^K>hd/KEEK͘_______  Z^K>hd/KEK&d,/dzK&ZEdKE͕t^,/E'dKE͕hd,KZ//E'd, DzKZE/dz>Z<dKyhdd,'ͲϭϭͲϬϵϯͶ&/Z^dDEE Z^ddKEdZddtEd,/dzK&^dd>Ed,/dzK&ZEdKE &KZd,^hWW>zK&tdZ͘  t,Z^͕ƚŚĞŝƚLJŽĨ^ĞĂƚƚůĞĂŶĚƚŚĞŝƚLJŽĨZĞŶƚŽŶĞŶƚĞƌĞĚŝŶƚŽĂWĂƌƚŝĂůZĞƋƵŝƌĞŵĞŶƚƐ ŽŶƚƌĂĐƚĨŽƌƚŚĞ^ƵƉƉůLJŽĨtĂƚĞƌ;ŽŶƚƌĂĐƚEŽ͘'ͲϭϭͲϬϵϯͿ͕ǁŚŝĐŚŝƐƐĞƚƚŽĞdžƉŝƌĞŽŶ:ĂŶƵĂƌLJϭ͕ ϮϬϲϮ͖ĂŶĚ t,Z^͕ƚŚĞŝƚLJŽĨ^ĞĂƚƚůĞĂŶĚƚŚĞŝƚLJŽĨZĞŶƚŽŶŚĂǀĞĐŽŵƉůĞƚĞĚŶĞŐŽƚŝĂƚŝŽŶƐĨŽƌƚŚĞ &ŝƌƐƚŵĞŶĚĞĚĂŶĚZĞƐƚĂƚĞĚŽŶƚƌĂĐƚĨŽƌƚŚĞ^ƵƉƉůLJŽĨtĂƚĞƌ͕ǁŚŝĐŚŝŶĐůƵĚĞƐƉƌŽǀŝƐŝŽŶƐĨŽƌƚŚĞ ŝƚLJŽĨ^ĞĂƚƚůĞƚŽƉƌŽǀŝĚĞƌĞŐŝŽŶĂůǁĂƚĞƌĐŽŶƐĞƌǀĂƚŝŽŶƐĞƌǀŝĐĞƐƚŽƚŚĞŝƚLJŽĨZĞŶƚŽŶ͖ĂŶĚ  t,Z^͕ŝƚǁŽƵůĚďĞŝŶƚŚĞƉƵďůŝĐďĞƐƚŝŶƚĞƌĞƐƚƚŽĞdžĞĐƵƚĞƚŚĞ&ŝƌƐƚŵĞŶĚĞĚĂŶĚ ZĞƐƚĂƚĞĚŽŶƚƌĂĐƚĨŽƌƚŚĞ^ƵƉƉůLJŽĨtĂƚĞƌ͖ EKt͕d,Z&KZ͕ d,/dzKhE/>K&d,/dzK& ZEdKE͕t^,/E'dKE͕K Z^K>s^&K>>Kt^͗ ^d/KE/͘dŚĞĂďŽǀĞƌĞĐŝƚĂůƐĂƌĞŚĞƌĞďLJĨŽƵŶĚƚŽďĞƚƌƵĞĂŶĚĐŽƌƌĞĐƚŝŶĂůůƌĞƐƉĞĐƚƐ͘  ^d/KE//͘dŚĞDĂLJŽƌĂŶĚŝƚLJůĞƌŬĂƌĞŚĞƌĞďLJĂƵƚŚŽƌŝnjĞĚƚŽĞdžĞĐƵƚĞƚŚĞ&ŝƌƐƚŵĞŶĚĞĚ ĂŶĚZĞƐƚĂƚĞĚŽŶƚƌĂĐƚĨŽƌƚŚĞ^ƵƉƉůLJŽĨtĂƚĞƌǁŝƚŚƚŚĞŝƚLJŽĨ^ĞĂƚƚůĞ͕'ͲϭϭͲϬϵϯŵĞŶĚŵĞŶƚ EŽ͘ϭĂƚƚĂĐŚĞĚĂŶĚŝŶĐŽƌƉŽƌĂƚĞĚŚĞƌĞŝŶďLJƌĞĨĞƌĞŶĐĞ͘  W^^zd,/dzKhE/>ƚŚŝƐ ĚĂLJŽĨ ͕ϮϬϮϱ͘    ______________________________ :ĂƐŽŶ͘^ĞƚŚ͕ŝƚLJůĞƌŬ AGENDA ITEM #6. i) Z^K>hd/KEEK͘_______ Ϯ  WWZKszd,DzKZƚŚŝƐ ĚĂLJŽĨ ͕ϮϬϮϱ͘    ______________________________  ƌŵŽŶĚŽWĂǀŽŶĞ͕DĂLJŽƌ     ƉƉƌŽǀĞĚĂƐƚŽĨŽƌŵ͗   ^ŚĂŶĞDŽůŽŶĞLJ͕ŝƚLJƚƚŽƌŶĞLJ  Z^ͲWt͗ϮϱZ^ϬϮϱ͗ϭϬͬϮϮͬϮϬϮϱ  AGENDA ITEM #6. i) 1 CITY OF RENTON, WASHINGTON RESOLUTION NO. _______ A RESOLUTION OF THE CITY OF RENTON, WASHINGTON, SETTING A PUBLIC HEARING DATE REGARDING VACATION OF THE UNOPENED RIGHT-OF-WAY, EAST OF 158TH AVE SE AND SOUTH OF NE 128TH ST, BISECTING KING COUNTY PARCEL NO. 366450008 AND BETWEEN PARCEL NOS. 3664500330 AND 366450007, ALSO REFERRED AS RENTON REGIONAL FIRE AUTHORITY STREET VACATION PETITION, VAC-25-001. WHEREAS, a petition was filed with the City Clerk pursuant to the requirements of chapter 35.79 RCW and Renton Municipal Code 9-14-2, petitioning for the vacation of the unopened right-of-way, east of 158th Ave SE and south of NE 128th St, bisecting King County Parcel No. 366450008 and between Parcel Nos. 3664500330 and 366450007, as hereinafter more particularly described, and the petition was signed by the owners of more than two-thirds (2/3) of the property abutting upon that portion of the right-of-way sought to be vacated, and same being described in Exhibit A, and depicted in Exhibit B, attached hereto and made a part hereof as if fully set forth herein; NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF RENTON, WASHINGTON, DO RESOLVE AS FOLLOWS: SECTION I. That the 1st day of December, 2025, at the hour of 7:00 p.m., is hereby fixed as the date and time for a public hearing to consider the above-mentioned petition for vacating the right-of-way; which hearing is not more than sixty (60) days nor less than twenty (20) days from the date of passage of this resolution. SECTION II. The City Clerk is hereby authorized and directed to give notice of the time and date of the public hearing as provided in RMC 9-14-3.A, including instructions on accessing the AGENDA ITEM # 8. a) RESOLUTION NO. ________ 2 hearing via Zoom, if applicable, and/or providing comment, and any and/or all persons interested therein or objecting to said vacation may then appear and be heard, or they may file their written objections with the City Clerk at or prior to the time of public hearing on the vacation. SECTION III. After the close of the public hearing, the City Council shall determine whether the vacation of the right-of-way should be granted. If the City Council determines that the right- of-way should be vacated, the City reserves the right to retain an easement for public utilities and related purposes. SECTION IV. If the City Council determines that the right-of-way should be vacated, at a future date to be determined, the City Council shall determine the classification of the right-of- way to be vacated and, in accordance with the discretion provided in RCW 35.79.030, the amount of compensation, if any, to be paid by the petitioner-owner(s) to the City for such vacation. PASSED BY THE CITY COUNCIL this day of , 2025. ______________________________ Jason A. Seth, City Clerk APPROVED BY THE MAYOR this day of , 2025. Armondo Pavone, Mayor Approved as to form: Shane Moloney, City Attorney RES-EX:25RES026:10/31/2025 AGENDA ITEM # 8. a) EXHIBIT A ALLEY VACATION THAT PORTION OF THE 16.00 FOOT WIDE ALLEY LYING BETWEEN LOTS 6, 7, 8, AND 9, BLOCK 1, AND THE EAST 228 FEET OF THE WEST 234 FEET OF LOT 1, BLOCK 1, ALL IN JANETT'S RENTON BOULEVARD TRACTS, ACCORDING TO THE PLAT THEREOF RECORDED IN VOLUME 17 OF PLATS, PAGE 60, RECORDS OF KING COUNTY, WASHINGTON. SITUATE IN THE NW QUARTER OF THE NE QUARTER OF SECTION 14, TOWNSHIP 23 NORTH, RANGE 05 EAST, W.M., KING COUNTY, WASHINGTON. AGENDA ITEM # 8. a) AGENDA ITEM # 8. a) 1 CITY OF RENTON, WASHINGTON ORDINANCE NO. ________ AN ORDINANCE OF THE CITY OF RENTON, WASHINGTON, AMENDING CHAPTER 4-2 SECTIONS 4-2-060, 4-2-080.A.6.d, 4-2-080.A.38, 4-2- 080.A.39, 4-2-110.C.4, 4-2-110.F.12, AND 4-2-110.F.6; CHAPTER 4-4 SECTIONS 4-4-080.F.10.e AND 4-4-155; AND CHAPTER 4-11 SECTIONS 4- 11-010, 4-11-020, 4-11-030, 4-11-040, 4-11-200.V, AND 4-11-200.W OF THE RENTON MUNICIPAL CODE, AMENDING ZONING REGULATIONS, REPEALING OUTDATED TERMS, ADDING CO-LIVING HOUSING DEFINITIONS AND STANDARDS, AUTHORIZING CORRECTIONS, PROVIDING FOR SEVERABILITY, AND ESTABLISHING AN EFFECTIVE DATE. WHEREAS, the City seeks to adopt regulations allowing co-living housing, as required by House Bill (HB) 1998; and WHEREAS, HB 1998 requires cities to allow co-living housing on any lot within an urban growth area where at least six multifamily units are allowed, including lots zoned for mixed-use development; and WHEREAS, this amendment establishes standards for co-living housing related to unit eligibility, parking, and density; and WHEREAS, the City of Renton is required to implement the new co-living housing requirements by December 31, 2025, in accordance with the provisions of HB 1998; and WHEREAS, this matter was duly referred to the Planning Commission for investigation and study, and the matter was considered by the Planning Commission; and WHEREAS, pursuant to RCW 36.70A.106, on June 13, 2025, the City notified the State of Washington of its intent to adopt amendments to its development regulations; and AGENDA ITEM # 8. a) ORDINANCE NO. ________ 2 WHEREAS, the Planning Commission held a public hearing on July 2, 2025, considered all relevant matters, and heard all parties in support or opposition, and subsequently forwarded a recommendation to the City Council; NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF RENTON, WASHINGTON, DO ORDAIN AS FOLLOWS: SECTION I. All portions of the Renton Municipal Code in this ordinance that are not shown in strikethrough and underline edits or are not explicitly repealed herein remain in effect and unchanged. SECTION II. Section 4-2-060 of the Renton Municipal Code is amended as as shown in Exhibit A. SECTION III. Subsection 4-2-080.A.6.d. of the Renton Municipal Code is amended as follows: d. Mixed-Income Housing: Upon any site and its abutting lots in the CV zone: i. There shall be no more than: (a) One hundred (100) dwelling units for rent/lease with income restrictions; provided, that an additional ten (10) such units may be created for every twenty (20) market-rate dwelling units (e.g., if twenty (20) market-rate units are created, ten (10) more income-restricted units may be created); or (b) Two hundred (200) dwelling units for sale with income restrictions; provided, that an additional ten (10) such units may be created for every twenty (20) market-rate dwelling units; or (c) Any combination of one hundred fifty (150) or more dwelling units for rent/lease or sale with income restrictions; provided, that an additional ten (10) such units may be created for every twenty (20) market-rate dwelling units. ii. Within a site, market-rate units shall not have substantially less floor area, number of bedrooms or bathrooms as compared to the varying sizes and AGENDA ITEM # 8. a) ORDINANCE NO. ________ 3 number of bedrooms and bathrooms for income-restricted units (i.e., inasmuch as the floor area or number of bedrooms and bathrooms varies among income- restricted units, market-rate units shall have a similar mix of unit floor area and number of bedrooms and bathrooms). This provision does not apply to co-living housing. This provision can only be altered if based on a market study and in conjunction with a modification granted per RMC  4-9- 250. iii. For the purposes of these standards the terms “market-rate” and “income-restricted” dwelling units shall have the following meanings: (a) Market-rate units: dwelling units for which homeowners (and renters, if rented) do not have income eligibility restrictions and the sale price (or rent, if applicable) is not artificially restricted in any manner. (b) Income-restricted units: dwelling units that are only eligible for households or individuals earning no more than a certain income level, or for which the rent or sale price is restricted by any legal instrument. SECTION IV. Subsection 4-2-080.A.38. of the Renton Municipal Code is amended as follows: 38. Reserved. Specified use(s) are permitted when located within ¼ mile walking distance of a Major Transit Stop (Area B). The distance is measured through the creation of a walkshed, which represents the collective spatial area within a defined walking distance from major transit stops (e.g. one quarter (¼) mile). Geospatial tools incorporating major transit stop locations and mapped pedestrian networks are used to approximate and map the walkshed boundary. Lots that partially intersect or partially fall within the walkshed shall be treated as entirely within. SECTION V. Subsection 4-2-080.A.39. of the Renton Municipal Code is amended as follows: AGENDA ITEM # 8. a) ORDINANCE NO. ________ 4 39. Reserved. Specified use(s) are permitted if the net density of the corresponding zone allows at least six (6) dwelling units on the subject site. SECTION VI. Subsection 4-2-110.C.4. of the Renton Municipal Code is amended as follows: 4. DEVELOPMENT STANDARDS: The following development standards are established for ADUs: GENERAL REQUIREMENTS4, 10 Maximum Number of Units24 Two (2) ADUs are allowed per legal lot as an accessory use to a principal dwelling. Configuration Either one (1) attached ADU and one (1) detached ADU, two (2) attached ADUs, or two (2) detached ADUs. ADUs may be established within or as an addition to the principal dwelling. In RC, R-1, R-4, R-6, and R-8 zones, when two (2) ADUs are proposed, the second ADU shall comply with the location and setback requirements applicable to the principal dwelling. Maximum Gross Floor Area40 1,000 sq. ft. Maximum Building Area26, 41 1,000 sq. ft. Conversions25 If a conversion unit occupies an entire single floor of the primary dwelling, it may be allowed to increase the maximum unit size to efficiently use all the floor area. Conversion units greater than 1,250 sq. ft. shall be classified as an attached dwelling rather than ADU. Parking20 A minimum of 1.0 parking space per dwelling unit. No off-street parking required for ADUs located on lots within a ½ mile walking distance fromof a Major Transit Stop (Area A). Design Standards See RMC 4-2-115, Residential Design Standards. ATTACHED AND INTERNAL ADUs Setbacks and Building Height ADUs shall comply with the standards applicable to primary structures, pursuant to RMC 4-2-110A, Development Standards for Residential Low Density and Medium Density Zones – Primary Structures, and RMC 4- AGENDA ITEM # 8. a) ORDINANCE NO. ________ 5 2-110B, Development Standards for Residential High Density Zones. DETACHED ADUs Front Yard and Secondary Front Yard Setbacks ADUs shall comply with the location and front yard setback requirements of the underlying zone, pursuant to RMC 4-2-110A, Development Standards for Residential Low Density and Medium Density Zones and RMC 4-2-110B, Development Standards for Residential High Density Zones. Detached ADUs shall be located at least 4 ft. from any residential structure otherwise the structure shall be considered an attached ADU. Side Yard Setbacks RC and R-1 zones: 25 ft. R-4, R-6, and R-8 zones: 5 ft. R-10 and R-14 zones: 4 ft. Rear Yard Setbacks 5 ft. When located within 10 ft. of the rear property line, at least 25% of the lineal length of the rear yard shall remain unoccupied from accessory dwellings. ADUs may be sited at the rear lot line where an alley is present. Building Height23, 42 24 ft. measured to the highest point of a flat roof or the highest ridge of a pitched roof. SECTION VII. Subsection 4-2-110.F.6. of the Renton Municipal Code is amended as follows: 6. Maximum Dwelling Units per Legal Lot: A maximum number of dwelling units are allowed per legal lot, within applicable zones, as shown in the following table. For the purposes of this subsection, accessory dwelling units and single-family dwelling units are included in the calculation of maximum dwelling units per lot. For middle housing unit lot subdivisions, the maximum dwelling units per legal lot shall apply to the parent site as a whole, rather than to individual unit lots. Lots in all Applicable Zones Lots located within ¼ mile walking distance20 of a Major Transit Stop (Area B) Lots with Affordable Housing AGENDA ITEM # 8. a) ORDINANCE NO. ________ 6 4 dwelling units per lot. 6 dwelling units per lot. 6 dwelling units per lot, provided at least 2 units are reserved for affordable housing pursuant to subsection 9, Affordable Middle Housing Units. SECTION VIII. Subsection 4-2-110.F.12. of the Renton Municipal Code is amended as follows: 12. Parking and Driveway Standards: Middle housing developments shall comply with all driveway and parking design standards applicable to single family development, pursuant to RMC 4-4-080, Parking, Loading and Driveway Regulations, except for the number of required parking spaces, which shall be subject to the following: a. Off-Street Parking Spaces Required for Middle Housing: Lots 6,000 sq. ft. or Less Lots greater than 6,000 sq. ft. Lots located within ½ mile walking distance20 of a Major Transit Stop (Area B) A minimum of 1.0 per dwelling unit. A minimum of 2.0 per dwelling unit. No off-street parking required. Developers that provide off-street parking spaces, when not required by this subsection, are eligible for parking incentives pursuant to subsection 12.b of this section. b. Parking Incentives for Middle Housing Development Located within ½ Mile Walking Distance20 of a Major Transit Stop (Area B): Middle housing developments that provide off-street parking spaces as shown in the following table, when not otherwise required by this subsection, are eligible for the following parking incentives, provided the increase is feasible and consistent with the Surface Water Design Manual. For each increase in number of parking spaces provided, the applicant is eligible for an additional parking incentive. For example, applicants that provide a minimum of 2.0 parking spaces per dwelling unit are eligible for the incentives below. AGENDA ITEM # 8. a) ORDINANCE NO. ________ 7 Number of Off-Street Parking Stalls Provided Incentives A minimum of 1.0 per dwelling unit. 10% Increase in Maximum Impervious Surface Area permitted by the subject zone, pursuant to RMC 4-2-110A; and A minimum of 2.0 per dwelling unit. 5% Increase in Maximum Building Coverage permitted by the subject zone, pursuant to RMC 4-2-110A. SECTION IX. Subsection 4-4-080.F.10.e. of the Renton Municipal Code is amended as follows: e. Parking Spaces Required Based on Land Use: USE NUMBER OF REQUIRED SPACES GENERAL: Uses not specifically identified in this Section: Department staff shall determine which of the below uses is most similar based upon staff experience with various uses and information provided by the applicant. The amount of required parking for uses not listed above shall be the same as for the most similar use listed below. Bicycle parking: See minimum requirements in subsection F11 of this Section. Parking in Excess of Maximum Standards: Maximum ratios for off-street parking facilities may be exceeded by up to 10% if the applicant implements low impact development techniques that reduce stormwater runoff and manages stormwater on site in a way that exceeds the requirements of surface water management in RMC 4-6-030. COMMERCIAL MIXED USES OUTSIDE OF CENTER DOWNTOWN ZONE: Commercial mixed use with 2 or 3 individual establishments (except vertical mixed use developments): The total requirement for off-street parking facilities shall be the sum of the requirements for each use computed separately. AGENDA ITEM # 8. a) ORDINANCE NO. ________ 8 Shopping centers (4 or more individual commercial establishments): A minimum of 2.5 per 1,000 square feet of net floor area and a maximum of 5.0 per 1,000 square feet of net floor area. In the UC-1 and UC-2 Zones, a maximum of 4.0 per 1,000 square feet of net floor area is permitted unless structured parking is provided, in which case 5.0 per 1,000 square feet of net floor area is permitted. Drive-through retail or drive-through service uses must comply with the stacking space provisions listed below. Commercial within vertical mixed-use developments: A minimum of 2.5 per 1,000 square feet of net floor area and a maximum of 5.0 per 1,000 square feet of net floor area. In the UC-1 and UC-2 Zones, a maximum of 4.0 per 1,000 square feet of net floor area is permitted unless structured parking is provided, in which case 5.0 per 1,000 square feet of net floor area is permitted. RESIDENTIAL USES OUTSIDE OF CENTER DOWNTOWN ZONE: Detached dwellings and townhouses: A minimum of 2.0 per dwelling unit, however, 1.0 per dwelling unit may be permitted for 1 bedroom or less dwelling units. Attached dwellings in R- 10, R-14, and RMF Zones: Attached dwellings in R-10, R-14, and RMF Zones1: , A minimum and maximum of 1.6 per 3 bedroom or large dwelling unit; 1.4 per 2 bedroom dwelling unit; 1.0 per 1 bedroom or studio dwelling unit. In addition to the minimum parking stalls required, a minimum 10% of the total number of required parking spaces shall be provided for guest parking and located in a common area accessible by guests. Attached dwellings in Commercial Zones: 1.0 per dwelling unit is required. A maximum of 1.75 per dwelling unit is allowed. Affordable housing dwelling units: A minimum of 1.0 for each 4 dwelling units is required. A maximum of 1.75 per dwelling unit is allowed. Middle housing dwelling units: See RMC 4-2-110F, Development Standards for Middle Housing, for number of required parking spaces. Accessory dwelling units: See RMC 4-2-110C, Development Standards for Accessory Dwelling Units, for number of required parking spaces. Cottage house developments: A minimum and maximum of 1.6 per cottage house of 3 bedrooms or greater; 1.4 per 2- bedroom cottage house; 1.0 per 1-bedroom AGENDA ITEM # 8. a) ORDINANCE NO. ________ 9 cottage house or studio. In addition to the minimum parking stalls required, a minimum 20% of the total number of required parking spaces in the cottage house development shall be provided for guest parking and located in a common area accessible by guests. Manufactured homes within a manufactured home park: A minimum of 2.0 per manufactured home site, plus a screened parking area shall be provided for boats, campers, travel trailers and related devices at a ratio of 1.0 screened space per 10 units. Congregate residencesCo-living housing: A minimum and maximum of 1.0 per sleeping room and 1.0 for the proprietor, plus 1.0 additional space for each 4 persons employed on the premises. A minimum of 0.25 parking space per sleeping unit and a maximum of 1.0 parking space per sleeping unit. No minimum off-street parking is required for co- living housing located on lots within a ½ mile walking distance of a Major Transit Stop (Area A). Assisted living: A minimum and maximum of 1.0 space per residential unit of assisted living, plus dedicated parking spaces for facility fleet vehicles. Live-work unit, residential unit: A minimum and maximum of 1.0 per unit. RESIDENTIAL USES IN CENTER DOWNTOWN ZONE: Attached dwellings: A minimum and maximum of 1.0 per unit. Affordable housing dwelling units: 1.0 for every 4 dwelling units is required. A maximum of 1.75 per dwelling unit is allowed. Congregate residences: A minimum and maximum of 1.0 per 4 sleeping rooms and 1.0 for the proprietor, plus 1.0 additional space for each 4 persons employed on the premises. Assisted living: A minimum and maximum of 1.0 space per residential unit of assisted living, plus dedicated parking spaces for facility fleet vehicles. Detached dwellings (existing legal): A minimum of 2.0 per unit. COMMERCIAL ACTIVITIES OUTSIDE OF THE CENTER DOWNTOWN ZONE: Drive-through retail or drive-through service: Stacking spaces: The drive-through facility shall be so located that sufficient on-site vehicle stacking space is provided for the handling of motor vehicles using such facility during peak business hours. Typically 5.0 stacking spaces per AGENDA ITEM # 8. a) ORDINANCE NO. ________ 10 window are required unless otherwise determined by the Administrator. Stacking spaces cannot obstruct required parking spaces or ingress/egress within the site or extend into the public right-of-way. Banks: A minimum of 2.5 per 1,000 square feet of net floor area and a maximum of 5.0 per 1,000 square feet of net floor area. Convalescent centers: A minimum and maximum of 1.0 for every 2 employees plus 1.0 for every 3 beds. Day care centers, adult day care (I and II): A minimum and maximum of 1.0 for each employee and 2.0 drop-off/pick-up spaces within 100 feet of the main entrance for every 25 clients of the program. Hotels and motels: A minimum and maximum of 1.0 per guest room plus 1.0 for every 3 employees. Bed and breakfast houses: A minimum and maximum of 1.0 per guest room. Mortuaries or funeral homes: A minimum and maximum of 10 per 1,000 square feet of floor area of assembly rooms. Vehicle sales (large and small vehicles) with outdoor retail sales areas: A minimum and maximum of 1.0 per 5,000 square feet. The sales area is not a parking lot and does not have to comply with dimensional requirements, landscaping or the bulk storage section requirements for setbacks and screening. Any arrangement of motor vehicles is allowed as long as: • A minimum 5-foot perimeter landscaping area is provided; • They are not displayed in required landscape areas; and • Adequate fire access is provided per Fire Department approval. Vehicle service and repair (large and small vehicles): A minimum and maximum of 2.5 per 1,000 square feet of net floor area. Offices, medical and dental: A minimum and maximum of 5.0 per 1,000 square feet of net floor area. Offices, general: A minimum of 2.0 per 1,000 square feet of net floor area and a maximum of 4.5 parking spaces per 1,000 square feet of net floor area. AGENDA ITEM # 8. a) ORDINANCE NO. ________ 11 Eating and drinking establishments and taverns: A minimum and maximum of 10 per 1,000 square feet of dining area. Eating and drinking establishment combination sit- down/drive-through restaurant: A minimum and maximum of 1.0 per 75 square feet of dining area. Retail sales and wholesale retail sales: A minimum and maximum of 2.5 per 1,000 square feet of net floor area, except wholesale retail sales, which is allowed a maximum of 5.0 per 1,000 square feet of net floor area if shared and/or structured parking is provided. Retail marijuana: A minimum of 4.0 and a maximum of 5.0 per 1,000 square feet of net floor area. Services, on-site (except as specified below): A minimum and maximum of 3.0 per 1,000 square feet of net floor area. Clothing or shoe repair shops, furniture, appliance, hardware stores, household equipment: A minimum and maximum of 2.0 per 1,000 square feet of net floor area. Uncovered commercial area, outdoor nurseries: A minimum and maximum of 0.5 per 1,000 square feet of retail sales area in addition to any parking requirements for buildings. Recreational and entertainment uses: Outdoor and indoor sports arenas, auditoriums, stadiums, movie theaters, and entertainment clubs: A minimum and maximum of 1.0 for every 4 fixed seats or 10 per 1,000 square feet of floor area of main auditorium or of principal place of assembly not containing fixed seats, whichever is greater. Bowling alleys: A minimum and maximum of 2.0 per alley. Dance halls, dance clubs, and skating rinks: A minimum and maximum of 1.0 per 40 square feet of net floor area. Golf driving ranges: A minimum and maximum of 1.0 per driving station. Marinas: A minimum and maximum of 2.0 per 3 slips. For private marina associated with a residential complex, then 1.0 per 3 slips. Also 1 loading area per 25 slips. Miniature golf courses: A minimum and maximum of 1.0 per hole. AGENDA ITEM # 8. a) ORDINANCE NO. ________ 12 Other recreational: A minimum and maximum of 1.0 per occupant based upon 50% of the maximum occupant load as established by the adopted Building and Fire Codes of the City of Renton. Travel trailers: A minimum and maximum of 1.0 per trailer site. COMMERCIAL ACTIVITIES WITHIN THE CENTER DOWNTOWN ZONE: Convalescent center, drive-through retail, drive-through service, hotels, mortuaries, indoor sports arenas, auditoriums, movie theaters, entertainment clubs, bowling alleys, dance halls, dance clubs, and other recreational uses: These uses follow the standards applied outside the Center Downtown Zone. Retail marijuana: A minimum of 4.0 and a maximum of 5.0 per 1,000 square feet of net floor area. All commercial uses allowed in the CD Zone except for the uses listed above: A maximum of 1.0 space per 1,000 square feet of net floor area, with no minimum requirement. INDUSTRIAL/STORAGE ACTIVITIES: Airplane hangars, tie- down areas: Parking is not required. Hangar space or tie-down areas are to be utilized for necessary parking. Minimum and maximum parking for offices associated with hangars is 5.0 per 1,000 square feet. Manufacturing and fabrication, laboratories, and assembly and/or packaging operations: A minimum of 1.0 per 1,000 square feet of net floor area and a maximum of 1.5 spaces per 1,000 square feet of net floor area (including warehouse space). Self service storage: A minimum and maximum of 1.0 per 3,500 square feet of net floor area. Maximum of 3.0 moving van/truck spaces is permitted. Outdoor storage area: A minimum and maximum of 0.5 per 1,000 square feet of area. Warehouses and indoor storage buildings: A minimum and maximum of 1.0 per 1,500 square feet of net floor area. PUBLIC/QUASI-PUBLIC ACTIVITIES: AGENDA ITEM # 8. a) ORDINANCE NO. ________ 13 Religious institutions: A minimum and maximum of 1.0 for every 5 seats in the main auditorium; however, in no case shall there be less than 10.0 spaces. For all existing institutions enlarging the seating capacity of their auditoriums, 1.0 additional parking space shall be provided for every 5 additional seats provided by the new construction. For all institutions making structural alterations or additions that do not increase the seating capacity of the auditorium, see “outdoor and indoor sports arenas, auditoriums, stadiums, movie theaters, and entertainment clubs.” Medical institutions: A minimum and maximum of 1.0 for every 3 beds, plus 1.0 per staff doctor, plus 1.0 for every 3 employees. Cultural facilities: A minimum and maximum of 40 per 1,000 square feet. Public post office: A minimum and maximum of 3.0 for every 1,000 square feet. Secure community transition facilities: A minimum and maximum of 1.0 per 3 beds, plus 1.0 per staff member. Schools: Elementary and junior high: A minimum and maximum of 1.0 per employee. In addition, if buses for the transportation of students are kept at the school, 1.0 off-street parking space shall be provided for each bus of a size sufficient to park each bus. Senior high schools: public, parochial and private: A minimum and maximum of 1.0 per employee plus 1.0 space for every 10 students enrolled. In addition, if buses for the private transportation of children are kept at the school, 1.0 off-street parking space shall be provided for each bus of a size sufficient to park each bus. Colleges and universities, arts and crafts schools/studios, and trade or vocational schools: A minimum and maximum of 1.0 per employee plus 1.0 for every 3 student rooming units, plus 0.5 space for every full-time student not residing on campus. In addition, if buses for transportation of students are kept at the school, 1.0 off-street parking space shall be provided for each bus of a size sufficient to park each bus. SECTION X. Section 4-4-155.B of the Renton Municipal Code is amended as follows: AGENDA ITEM # 8. a) ORDINANCE NO. ________ 14 B. APPLICABILITY: The standards of this Section shall apply to all attached dwelling units, excluding Middle Housing and co-living housing. SECTION XI. Section 4-11-010 of the Renton Municipal Code is amended as follows: For the purpose of this Title, the following words, terms, phrases and their derivations shall have the meaning given herein, unless the context otherwise indicates. 4-11-010 DEFINITIONS A: A. ABANDONMENT OF UNDERGROUND STORAGE FACILITIES: See RMC 4- 5-120G. B. ABUTTING: Lots sharing one or more property lines or easements; provided, that any improved or unimproved right-of-way of the City, other cities, or the State shall, for the purposes of this definition, disqualify lots as abutting. C. ACCESS EASEMENT: See EASEMENT, ACCESS. D. ACCESSORY BUILDING: A subordinate building located upon the same lot occupied by a principal use or building with which it is customarily associated, but clearly incidental to. This definition excludes accessory dwelling units. E. ACCESSORY DWELLING UNIT: See DWELLING UNIT, ACCESSORY. F. ACCESSORY USE, AGRICULTURE OR ANIMAL HUSBANDRY: Subordinate and incidental uses, typically located upon the same lot, which support the agricultural or animal husbandry use of a site including, but not limited to the storage of agricultural products and equipment, and the sheltering of animals. AGENDA ITEM # 8. a) ORDINANCE NO. ________ 15 G. ACCESSORY USE, COMMERCIAL/INDUSTRIAL/PUBLIC/COMMUNITY FACILITY: A use typically subordinate in size to the principal commercial, industrial, public, community facility, or other similar principal use; that would not contribute significantly to traffic generation, noise, or nuisance; and that supports the primary use operation without displacing it. Uses are typically located upon the same lot occupied by a principal use. H. ACCESSORY USE, RESIDENTIAL: A subordinate use, which supports the principal residential use without displacing it, typically located upon the same lot occupied by the principal residential use with which it is customarily associated, but clearly incidental to. The accessory use is typically subordinate in size and supports the principal residential use without displacing it. I. ACT, SHORELINE MANAGEMENT: (This definition for RMC 4-3-090, Shoreline Master Program Regulations, use only.) The Shoreline Management Act of 1971, chapter 90.58 RCW as amended. J. ACTIVE RECREATION: See RECREATION, ACTIVE. K. ACTIVITY: A happening associated with a use; the use of energy toward a specific action or pursuit. Examples of shoreline activities include but are not limited to fishing, swimming, boating, dredging, fish spawning, wildlife nesting, or discharging of materials. Not all activities necessarily require a shoreline location. L. ADDITIONAL ANIMALS LICENSE: An annually renewed license issued by the Finance Department to individuals permitted to keep additional animals. M. ADDITIONAL ANIMALS PERMIT: A conditionally granted permit for the keeping of household pets and/or domestic animals, when they are accessory, at greater numbers than allowed outright. For dogs, cats, and/or combinations of dogs and cats the maximum number allowable with this permit is six (6). Animals kept in small animal hospitals, clinics, pet shops, or grooming services are excluded from this definition. N. ADJACENT: Lots located across a street, railroad, or right-of-way, except limited access roads. AGENDA ITEM # 8. a) ORDINANCE NO. ________ 16 O. ADMINISTRATIVE HEADQUARTERS OFFICE: A use containing one or more of the day-to-day functions (e.g., management, payroll, information systems, inventory control) related to the operation of a company or affiliated corporate group. P. ADMINISTRATOR: Unless otherwise specified in this Title, Administrator shall mean the Administrator of the Department of Community and Economic Development or designee. Q. ADULT DAY CARE/HEALTH: A program designed to meet the needs of adults with functional impairments through an individualized plan of care. It is a structured, comprehensive program that provides a variety of health, social, and related support services in a protective setting during any part of a day for a minimum of four (4) hours, but less than twenty four (24) hour care. While beds may be provided for rest periods, adult day care/health uses are not intended to function as residential facilities. A number, where specified, is the maximum number of clients present at any one period of time during the program operation. Adult day care/health programs are subclassified as follows: 1. Adult Day Care/Health Category I: A maximum of four (4) clients upon a property containing a residential use; and a maximum of twelve (12) clients upon a property in nonresidential use. 2. Adult Day Care/Health Category II: Five (5) or more clients upon a property containing a residential use; and thirteen (13) or more clients upon a property in nonresidential use. R. ADULT ENTERTAINMENT BUSINESS: 1. Any enterprise which, for money or any other form of consideration, features “adult live entertainment” as defined herein; or 2. Any “adult motion picture theater” as defined herein; or AGENDA ITEM # 8. a) ORDINANCE NO. ________ 17 3. Any adult arcade containing individual viewing areas or stations or booths, where for money or any other form of consideration one or more still or motion picture projectors, slide projectors, or similar machines, or other image-producing machines are used to show films, motion pictures, video cassettes, slides or other photographic reproduction of specified sexual activities or specified anatomical areas. S. ADULT FAMILY HOME: A state-licensed facility providing personal care, room and board within a dwelling unit to more than one person, but not more than four (4) adults, not related by blood or marriage to the person(s) providing the service. A maximum of eight (8) adults may be permitted if the Washington State Department of Social and Health Services determines the home is of adequate size and the home and provider are capable of meeting standards and qualifications as provided for in chapters 70.128 RCW and 388-76 WAC. T. ADULT LIVE ENTERTAINMENT: A person appearing nude or a live performance which is characterized by specified sexual activities as defined in RMC 4-11-190. This definition includes, but is not limited to, peep shows. U. ADULT MOTION PICTURE THEATER: An enclosed building used for presenting motion picture films, video cassettes, cable television, or any other such visual media for observation by patrons there, distinguished or characterized by an emphasis on matter depicting, describing or relating to specified sexual activities or specified anatomical areas. V. ADULT RETAIL USE: A retail establishment which, for money or any other form of consideration, either: (1) has as one of its principal purposes to sell, exchange, rent, loan, trade, transfer, and/or provide for viewing or use, off the premises, any adult-oriented merchandise; or (2) provides, as its substantial stock in trade, for the sale, exchange, rental, loan, trade, transfer, and/or provide for viewing or use, off the premises, any adult-oriented merchandise. W. ADULT-ORIENTED MERCHANDISE: Any goods, products, commodities, or other wares, including but not limited to, videos, CD roms, DVDs, magazines, books, pamphlets, posters, cards, periodicals or nonclothing novelties, which depict, describe or simulate specified anatomical areas or specified sexual activities. This definition is not intended to include movies rated R by the Motion Picture Association of America or its successor organization. X. AFFORDABLE HOUSING: A dwelling unit reserved for occupancy as a primary residence by an eligible household that qualifies as affordable under applicable program eligibility requirements. AGENDA ITEM # 8. a) ORDINANCE NO. ________ 18 Y. AGGRIEVED PARTY: A person seeking to protect what must be “arguably within the zone of interests to be protected or regulated by the statute or constitutional guarantee in question” and must allege an “injury in fact,” i.e., that he or she will be specifically and perceptibly harmed by the proposed action. Z. AGRICULTURE: Use of land for growing crops for sale or consumption, other than for home agriculture. This use includes the accessory uses for sales, packing, treating, or storing the produce; provided, that the operation of the accessory use is clearly incidental to the agricultural activity. This definition includes but is not limited to produce farms, vineyards, and Christmas tree farms. This definition excludes nurseries and animal husbandry. AA. AGRICULTURE, HOME: The accessory use of land to grow crops at a small or limited scale, for sale or consumption, when it occurs on the same site as the residence of the person primarily responsible for the crops. BB. AIR GAP: See RMC 4-6-100. CC. AIRPLANE SALES AND REPAIR: Facilities where airplanes are displayed for sale and/or brought for repair services. DD. AIRPORT COMPATIBLE LAND USE: Uses and structures within the Airport Influence Area that must be considered as to compatibility with aviation operations associated with the Renton Municipal Airport. EE. AIRPORT HAZARD: Any structure, tree or use of land which obstructs the air space required for the flight of aircraft in landing or taking off at the airport or is otherwise hazardous to landing or takeoff of aircraft. FF. AIRPORT INFLUENCE AREA: The area defined by the outer perimeter of “Safety Zone Six,” the Traffic Pattern Zone, on the Airport Influence Area Map (RMC 4-3-020F). GG. AIRPORT, MUNICIPAL: The Renton Municipal Airport, a general aviation facility located in Renton, Washington. HH. AIRPORT-RELATED USES: Uses that require proximity and access to an airport runway. II. ALLEY: A vehicular right-of-way not over thirty feet (30') wide which is not designed for general travel and primarily used as means of vehicular and pedestrian access to the rear of abutting properties. AGENDA ITEM # 8. a) ORDINANCE NO. ________ 19 JJ. ALTERATION OF WATERCOURSE: Any action that will change the location of the channel occupied by water within the banks of any portion of a riverine water body. KK. ANIMAL FOSTER CARE PROVIDER: A homeowner and/or tenant who cares for an animal or animals not considered their household pet/pets or domestic animal/animals on a temporary basis that is not longer than one hundred twenty (120) days per animal. LL. ANIMAL HUSBANDRY: The raising of domestic animals other than common household pets. MM. ANIMALS, DOMESTIC: Animals that have been bred to be tame, are dependent on human intervention for food and shelter, and are kept continually at the premises of the owner. These animals are to include: large lot domestic animals, medium lot domestic animals, small lot domestic animals, and other animals as approved by the Community and Economic Development Administrator. Bees, peafowl, and roosters are excluded from this definition. NN. ANIMALS, DOMESTIC – EXTRA LARGE LOT: Livestock to include horses, donkeys, cows, llamas and other animals of similar size and characteristics as approved by the Development Services Division. OO. ANIMALS, DOMESTIC – LARGE LOT: Animals that typically require a lot size of at least one acre; to include goats, pigs, and other animals of similar size and characteristics as approved by the Development Services Division. PP. ANIMALS, DOMESTIC – MEDIUM LOT: Animals that typically require at least twelve thousand five hundred (12,500) gross square feet of lot size; to include miniature goats that are smaller than twenty-four inches (24") at the shoulder and/or not more than one hundred fifty (150) pounds in weight, sheep and other animals of similar size and characteristics as approved by the Development Services Division. QQ. ANIMALS, DOMESTIC – SMALL LOT: Animals that typically require at least four thousand five hundred (4,500) gross square feet of lot size; to include chickens, ducks, geese, pigeons, and other animals of similar size and characteristics as approved by the Development Services Division. RR. APPEAL: A request for a review of any action pursuant to this Title, or of the interpretation of any provision of the Title by any City official. SS. APPELLANT: A person, organization, association or other similar group who files a complete and timely appeal as set forth in Renton Municipal Code. AGENDA ITEM # 8. a) ORDINANCE NO. ________ 20 TT. APPLICANT: A person who files an application of permit under this Title and who is either the owner of the land on which that proposed activity would be located, a contract vendee, a lessee of the land, the person who would actually control and direct the proposed activity, or the authorized agent of such a person. UU. APPROVED: See RMC 4-6-100. VV. AQUACULTURE: The culture of farming of aquatic animals and plants. WW. AQUIFER: A geological unit of porous and permeable rock, sand or gravel capable of yielding usable amounts of water. XX. AQUIFER PROTECTION AREA (APA): Shall be the portion of an aquifer within the zone of capture and recharge area for a well or well field owned or operated by the City, and as identified in the City of Renton’s COR Maps, the City’s online interactive mapping application available through the City’s website. The term shall be synonymous with “wellhead protection area.” YY. AQUIFER PROTECTION AREA PERMIT: An authorization by the Department for a person to store, handle, treat, use or produce a hazardous material within an APA. The two (2) types of permits that will be issued pursuant to RMC 4-9-015, Aquifer Protection Areas Permits, and RMC 4-3- 050, Critical Areas Regulations, are an operating permit and a closure permit. ZZ. ARBORIST, CITY: The Urban Forestry and Natural Resources Manager of the City of Renton, or his or her designee. AAA. AREA OF SHALLOW FLOODING: A designated zone AO, AH, AR/AO or AR/AH (or VO) on a community’s Flood Insurance Rate Map (FIRM) with a one percent (1%) or greater annual chance of flooding to an average depth of one to three feet (1 to 3') where a clearly defined channel does not exist, where the path of flooding is unpredictable, and where velocity flow may be evident. Such flooding is characterized by ponding or sheet flow. Also referred to as the sheet flow area. BBB. AREA OF SPECIAL FLOOD HAZARD: The land in the floodplain within a community subject to a one percent (1%) or greater chance of flooding in any given year. It is shown on the flood insurance rate map (FIRM) as zone A, AO, AH, A1-30, AE, A99, AR (V, VO, V1-30, VE). “Special flood hazard area” is synonymous in meaning with the phrase “area of special flood hazard.” CCC. ARTERIAL: A street classified as a principal arterial on the City’s Arterial Street Plan. AGENDA ITEM # 8. a) ORDINANCE NO. ________ 21 DDD. ARTERIAL PASS-THROUGH TRAFFIC: Traffic that has neither an origin nor destination in an affected area which is diverted from an arterial road. EEE. ARTERIAL STREET: See STREET, ARTERIAL. FFF. ARTICULATION: The giving of emphasis to architectural elements (like windows, balconies, entries, etc.) that create a complementary pattern or rhythm dividing large buildings into smaller identifiable pieces. GGG. ARTIFICIAL CHANNEL: A stream channel that is entirely manmade but does not include relocated natural channels. HHH. ARTS AND CRAFTS SCHOOLS/STUDIOS: See SCHOOLS/STUDIOS, ARTS AND CRAFTS. III. ASSEMBLY AND PACKAGING OPERATIONS: A facility where pre- manufactured components are assembled to construct a product. Products may be packaged and moved off-site for wholesale or retail sale. This use includes but is not limited to assembly and packaging of computer, electronics, office equipment, chemicals and allied products, fabricated metal products, and other products. JJJ. ASSISTED LIVING: A facility containing two (2) or more dwelling units where residents live in private units and receive assistance with limited aspects of personal care, such as taking medication, bathing, or dressing. Staff is on duty twenty four (24) hours per day to ensure the welfare and safety of residents. Dwelling units include a full kitchen (sink, oven or range, and refrigerator) or a kitchenette, a bathroom, a living area, and may include a call system. On the premises, facilities include: a professional kitchen, common dining room, recreation area(s), activity room, and a laundry area. Meals may be provided multiple times daily in a common dining area. This definition does not include: convalescent centers, congregate residencesco-living housing, boarding and lodging houseshomes, adult family homes, and group homes I and II. KKK. ATTIC: A finished or unfinished area, not considered a story, located between the upper surface of the topmost floor and the ceiling or roof above, and having a floor-to-ceiling height of seven feet (7') or greater for an area that constitutes no more than fifty percent (50%) of the building footprint. LLL. AUTOMOBILE: See VEHICLE. MMM. AUXILIARY WATER SUPPLY: See RMC 4-6-100. AGENDA ITEM # 8. a) ORDINANCE NO. ________ 22 NNN. AVERAGE DAILY TRAFFIC (ADT): The average number of motor vehicles crossing in one direction per working day for any continuous thirty (30) day period. OOO. AVERAGE HORIZONTAL ILLUMINATION: The quantity of light measured at the pavement surface and averaged over the traveled lanes expressed in foot-candles. PPP. AVIATION-RELATED USES: Uses that offer aeronautical services to the public or provide support services to airport-related uses. QQQ. AWNING: A shelter, typically for a pedestrian walkway, that projects from and is supported by the exterior wall of a building. Awnings have noncombustible frames, but may have combustible coverings. Awnings may be fixed, retractable, folding or collapsible. Any structure which extends above any adjacent parapet or roof of a supporting building is not included within the definition of awning. SECTION XII. Section 4-11-020 of the Renton Municipal Code is amended as follows: 4-11-020 DEFINITIONS B: A. BACKFLOW: See RMC 4-6-100. B. BACKFLOW PREVENTER: See RMC 4-6-100. C. BACKGROUND AREA: The entire face of a sign upon which text and/or graphics could be placed. D. BACKSIPHONAGE: See RMC 4-6-100. E. BASE FLOOD: A flood having a one percent (1%) chance of being equaled or exceeded in any given year. Also referred to as the “one hundred (100) year flood.” Designation on flood maps always includes the letters A or V. F. BASE FLOOD ELEVATION (BFE): The elevation to which floodwater is anticipated to rise during the base flood. G. BASEMENT: Any floor level below the first story in a building, except that a floor level in a building having only one floor level shall be classified as a basement unless such floor level qualifies as a first story as defined herein. H. BASEMENT: (This definition for RMC 4-3-050, flood hazard regulations, use only.) Any area of the building having its floor subgrade (below ground level) on all sides. AGENDA ITEM # 8. a) ORDINANCE NO. ________ 23 I. BATTERY ENERGY STORAGE SYSTEM FACILITY: One or more utility-scale energy storage systems designed to receive, store, and discharge energy to and from the electrical grid or energy generation facility for later use. Battery energy storage systems generally consist of batteries assembled together and may include on-site switchyard, inverters, associated interconnection transmission line, and supervisory control and data acquisition system. This definition excludes individual residential and commercial use systems for on- site energy use, standalone twelve (12) volt car battery or electric motor vehicles, and other consumer products. J. BED AND BREAKFAST HOUSE, ACCESSORY: Overnight accommodations and a morning meal in a dwelling unit with less than four (4) guest rooms provided to transients for compensation. Accessory bed and breakfast houses are proprietor-occupied, or the proprietor lives on a contiguous property, and morning meals are provided to the house residents and the overnight guests only. This definition does not include congregate residences, professional bed and breakfast houses, hotels, or motels. K. BED AND BREAKFAST HOUSE, PROFESSIONAL: Overnight accommodations and a morning meal in a dwelling unit with four (4) to ten (10) guest rooms provided to transients for compensation. Professional bed and breakfast houses are proprietor-occupied, or the proprietor lives on a contiguous property, and morning meals are provided to the house residents and the overnight guests only. This definition does not include congregate residences, accessory bed and breakfast houses, hotels, or motels. L. BEDROCK: In-place subsurface material consisting of solid rock. M. BEEKEEPING: The management and maintenance of colonies of honeybees. N. BEST MANAGEMENT PRACTICES, WETLANDS: Conservation practices or systems of practices and management measures that: 1. Control soil loss and reduce water quality degradation caused by nutrients, animal waste, toxins and sediment; 2. Minimize adverse impacts to surface water and groundwater flow, circulation patterns, and to the chemical, physical and biological characteristics of wetlands; and 3. Includes allowing proper use and storage of fertilizers/pesticides. O. BINDING SITE PLAN: A drawing as authorized by chapter 58.17 RCW and provided for in RMC 4-7-230 which: AGENDA ITEM # 8. a) ORDINANCE NO. ________ 24 1. Identifies and shows the areas and locations of all streets, roads, improvements, utilities, open spaces, and any other matters specified by RMC 4-8-120C, Submittal Requirements; and 2. Contains inscriptions or attachments setting forth such appropriate limitations and conditions for the use of the land as are established by the City; and 3. Contains provisions requiring site development to be in conformity with the approved binding site plan. P. BLOCK: A block consists of two (2) facing block fronts bounded on two (2) sides by alleys or rear property lines and on two (2) sides by the centerline of platted streets, with no other intersecting streets intervening. Q. BLOCK FRONT: A block front is the frontage of property along one side of a street bound on three (3) sides by the centerline of platted streets and on the fourth side by an alley or rear property lines. R. BMPs: Best management practices, see supra, and RMC 4-6-100. S. BOARDING HOUSE: See CONGREGATE RESIDENCE. TS. BOAT LAUNCHING RAMP: A facility with an inclined surface extending into the water which allows launching of boats directly into the water from trailers. UT. BODY SHOP: An establishment which conducts any of the following operations: 1. Collision repair services, including body, frame or fender straightening, repair, or replacement; and/or 2. Overall painting of vehicles or painting of vehicles in a paint shop, but excluding minor painting with an airbrush or roller brush utilized in customizing or detailing operations; and/or AGENDA ITEM # 8. a) ORDINANCE NO. ________ 25 3. Welding, molding, and similar operations conducted on vehicles. VU. BREAKWATER: A protective structure, usually built off-shore for the purpose of protecting the shoreline or harbor area from wave action. WV. BUFFER, CRITICAL AREA: A naturally vegetated and undisturbed, enhanced, or revegetated area that surrounds and protects a critical area from adverse impacts to its functions and values, and/or which protects developed areas from potentially hazardous conditions. XW. BUFFER, LANDSCAPE: Landscaped area used to physically separate or screen one use or property from another so as to visually shield or block views, noise, lights, or other potential nuisances. YX. BUFFER, SHORELINES: A strip of land that is designated to permanently remain vegetated in an undisturbed and natural condition to protect an adjacent aquatic, riparian, or wetland site from upland impacts, to provide habitat for wildlife and to afford limited public access. Uses and activities within the buffer are extremely limited. The buffer is measured horizontally upland from and perpendicular to the OHWM. ZY. BUILDABLE AREA: The portion of a lot or site, exclusive of required yard areas, setbacks, landscaping or open space within which a structure may be built. AAZ. BUILDING: As defined by the International Building Code. BBAA. BUILDING: (This definition for RMC 4-3-090, Shoreline Master Program Regulations, use only.) Any structure having a roof intended to be used for the shelter or enclosure of persons, plants, animals or property. CCBB. BUILDING CODE: The International Building Code, promulgated by the International Conference of Building Officials, as adopted by this jurisdiction. DDCC. BUILDING COMPLEX, MULTIPLE: A group of structures housing more than one type of retail business, office or commercial venture and generally under one ownership and control. EEDD. BUILDING DRAIN: See RMC 4-6-100. FFEE. BUILDING FACADE: That portion of any exterior elevation of a building extending from the grade to the top of the parapet wall or eaves, and the entire width of the building elevation. AGENDA ITEM # 8. a) ORDINANCE NO. ________ 26 GGFF. BUILDING FOOTPRINT: The area of a lot or site included within the surrounding exterior walls of a building or portion of a building, exclusive of courtyards. In the absence of surrounding exterior walls, the building footprint shall be the area under the horizontal projection of the roof. HHGG. BUILDING HEIGHT: The measurement of building height depends on the applicable zone, as follows: 1. Within the RC, R-1, R-4, R-6, R-8, R-10, R-14, and RMF Zones: Primary structures and accessory dwelling units shall be measured by the vertical distance from grade plane to the highest wall plate combined with the height of any portion of the structure that extends above the wall plate (e.g., roof, deck, etc.), excluding chimneys, ventilation stacks, and similar elements as determined by the Administrator. Detached accessory structures shall be measured by the vertical distance from grade plane to the average height of the highest roof surface. 2. All Other Zones: The vertical distance from grade plane to the average height of the highest roof surface. IIHH. BUILDING, MULTI-OCCUPANCY: A single structure housing more than one type of retail business, office or commercial venture and generally under one ownership and control. JJII. BUILDING OFFICIAL: The officer or other person charged with the administration and enforcement of the IBC and the building-related provisions of this Title, or his duly authorized deputy. KKJJ. BUILDING, SINGLE OCCUPANCY: A building occupied by a single tenant. A building is considered to be “single occupancy” if: 1. It has only one occupant; and 2. It has no wall in common with another building; and 3. It has no part of its roof in common with another building. LLKK. BUILDING STEP-BACK: A building step-back applies to stories above the ground floor and is the horizontal distance between one or more stories of a building façade relative to the building façade of the floor directly below. MMLL. BULK STORAGE: See STORAGE, BULK. NNMM. BULKHEAD: A vertical wall constructed of rock, concrete, timber, sheet steel, gabions, or patent system materials. Rock bulkheads are often AGENDA ITEM # 8. a) ORDINANCE NO. ________ 27 termed “vertical rock walls.” Seawalls are similar to bulkheads, but more robustly constructed. OONN. BUOY: A floating object anchored in a lake, river, etc., to warn of rocks, shoals, etc., or used for boat moorage. PPOO. BUSINESS FACADE: That portion of an exterior building wall owned or leased by a business. SECTION XIII. Section 4-11-030 of the Renton Municipal Code is amended as follows: 4-11-030 DEFINITIONS C: A. CALIPER: The diameter of any tree trunk as measured at a height of four and one-half feet (4-1/2') above the ground on the upslope side of the tree. B. CANOPY, BUILDING: A rigid multi-sided structure covered with fabric, metal or other material and supported by a building at one or more points or extremities and by columns or posts embedded in the ground at other points or extremities. Any structure which extends above any adjacent parapet or roof of supporting building is not included within the definition of building canopy. C. CAR: See VEHICLE. D. CAR WASH: A structure with machine-operated or hand-operated facilities used principally for the cleaning, washing, polishing, or waxing of motor vehicles. E. CARD ROOM: A use governed pursuant to the provisions of chapter 9.46 RCW, 1973 Gaming Act, and licensed by the Washington State Gambling Commission that is ancillary to a permitted use where food and AGENDA ITEM # 8. a) ORDINANCE NO. ________ 28 beverages are served on the premises and whose purpose is to serve as a commercial stimulant to the principal activities associated with the primary use. F. CARETAKER’S RESIDENCE: A dwelling unit located on the site of a nonresidential use and occupied only by a caretaker or guard employed on the premises, and consisting of only one residence per permitted establishment. G. CARPOOL: A group of people traveling to the same or relatively nearby locations in the same vehicle. H. CARPORT: A roofed structure, enclosed on less than three sides, without interior parking aisles, for the purpose of storing motor vehicles. I. CEMETERY: Property used for interring of the dead. This definition includes accessory buildings, crematories, and mausoleums. J. CENTER, EMPLOYMENT: An area of higher intensity uses that typically employs thousands of people that is contained by a boundary to prevent it from encroaching on adjacent areas and/or neighborhoods. K. CERTIFIED: A facility and staff qualified and able to provide certain tests and measurements relating to specific tasks and based upon established standards. L. CHANNEL MIGRATION ZONE: The area along a river within which the channel(s) can be reasonably predicted to migrate over time as a result of natural and normally occurring hydrological and related processes when considered with the characteristics of the river and its surroundings. M. CIRCULATION: The movement of passengers or goods to, from, over, or along a transportation corridor. N. CITY COUNCIL: The City Council of the City of Renton, Washington. O. CITY GOVERNMENT OFFICES: Offices for City administration and/or provision of services to the public. This definition includes but is not limited to City Hall. P. CIVIL ENGINEER: A professional engineer registered in the State to practice in the field of civil works. Q. CLEAR VISION AREA: The area bounded by the street property lines of corner lots and a line joining points along said street lines twenty feet (20') from their point of intersection. AGENDA ITEM # 8. a) ORDINANCE NO. ________ 29 R. CLOSED RECORD APPEAL: An administrative appeal on the record to a local government body or officer including the legislative body, following an open record hearing on a project permit application when the appeal is on the record with no or limited new evidence or information allowed to be submitted and only appeal argument allowed. S. CLOSURE OF UNDERGROUND STORAGE FACILITIES: See RMC 4-5- 120G. T. CLUSTER DEVELOPMENT: A residential subdivision comprised of a grouping of single family dwellings on small lots designed to include significant open space or preserve significant natural features, which are commonly held by the residents, in exchange for modifications to certain development standards (e.g., lot dimensions, setbacks, and building standards). AGENDA ITEM # 8. a) ORDINANCE NO. ________ 30 U. COFFEE STAND: A retail business serving primarily coffee, beverages, and other related goods and merchandise, typically for off-site consumption by the traveling public. This definition excludes eating and drinking establishments and walk-up windows. V. CO-LIVING HOUSING: See DWELLING UNIT. W. COLLECTION POINT: The exterior location designation for garbage and recyclables collection by the City’s contractor or other authorized haulers. WX. COLLECTOR STREET: See STREET, COLLECTOR. XY. COMBINED PUBLIC DETENTION: A stormwater detention system designed to accommodate runoff from both public streets and private property. YZ. COMBINED SEWER: See RMC 4-6-100. ZAA. COMMERCIAL LAUNDRIES: A facility where clothing or other fabrics are washed, dried, or dry cleaned for other businesses or institutions. This definition does not include laundromats. AABB. COMMERCIAL USE: A type of land use that includes commercial office activities, services and/or retail sales. BBCC. COMMISSARY KITCHEN: A facility providing leasable commercial kitchen space where food operators prepare, store, portion, or package food, typically intended for off-site sale and consumption. Facilities are typically shared among two (2) or more tenants and may be utilized to fulfill mobile food orders associated with platform-based food-delivery services. Operations may occur as a primary use or as an accessory use to an eating and drinking establishment, as governed by the underlying zoning designation. CCDD. COMMON SPACE AREA (COMMON AREA, COMMON OPEN SPACE, COMMON SPACE): Land that is designed and intended for common use or enjoyment and may include such structures and improvements as are necessary and appropriate. DDEE. COMMUNICATION BROADCAST AND RELAY TOWERS: Establishments that provide point-to-point communication services, whether by wire or radio, including radio and television broadcasting stations and the exchange or recording of messages. This definition excludes all terms related to wireless communication facilities. EEFF. COMMUNITY ACCESS: (This definition for RMC 4-3-090, Shoreline Master Program Regulations, use only.) A means of physical approach to AGENDA ITEM # 8. a) ORDINANCE NO. ________ 31 and/or along the shoreline available to the residents, tenants, customers, patrons, guests, and/or other authorized users of a development. Community access may also include space set aside for outdoor recreation including: picnic areas, view points, water craft launch facilities, and may also include other similar features. FFGG. COMMUNITY AND ECONOMIC DEVELOPMENT ADMINISTRATOR: The Administrator of the Department of Community and Economic Development or designee. GGHH. COMMUNITY HEALTH ENGAGEMENT LOCATION (CHEL): A location designed to provide a hygienic environment where individuals are able to consume illegal or illicit drugs intravenously or by any other means. A CHEL includes all uses established or activities undertaken for the above-defined purpose, irrespective of how the use or activity is described. A CHEL may also be referred to as a “medically supervised injection center,” “supervised injection site or facility,” “safe injection site,” “fix room,” or “drug consumption facility.” HHII. COMPACTION: The densification of an earthen fill by mechanical means. IIJJ. COMPENSATION PROJECT: Actions necessary to replace project- induced wetland and wetland buffer losses, including land acquisition, planning, construction plans, installation, monitoring and contingency actions. JJKK. COMPENSATORY MITIGATION: Replacing project-induced wetland losses or impacts, including but not limited to wetlands restoration and creation, and wetland enhancement in conjunction with wetlands restoration or creation. KKLL. COMPLETE APPLICATION: Unless waived by the Community and Economic Development Administrator, the requirements for a full complete land use, building, or public works permit application shall consist of the information listed in RMC 4-8-120A, B and C, any site-specific information identified in a pre-application meeting summary, and any required application fee pursuant to the City of Renton Fee Schedule. LLMM. COMPREHENSIVE PLAN: The plans, maps and reports that comprise the official development plan and twenty (20) year “vision” for the future physical design and character of the City as adopted by the City Council in accordance with chapter 35.63 RCW. AGENDA ITEM # 8. a) ORDINANCE NO. ________ 32 MMNN. CONCEPTUAL PLAN: A development tool designed to provide a comprehensive overview of proposed uses, site layout, infrastructure concepts, phasing and amenities. A conceptual plan approval establishes conditions with which all concurrent and subsequent land use approvals within its geographic area must comply, unless the conceptual plan itself is amended. It also provides long-term guidance for a larger area than either master plan or detailed site plan review was intended for, so that continuity of the overall development is maintained. NNOO. CONDITIONAL USE, SHORELINE: (This definition for RMC 4-3-090, Shoreline Master Program Regulations, use only.) A use, development, or substantial development which is classified as a conditional use or is not classified within the applicable Master Program. OOPP. CONDOMINIUM: Real property, portions of which are designated for separate ownership and the remainder of which is designated for common ownership solely by the owners of those portions. Real property is not a condominium unless the undivided interests in the common elements are vested in the unit owners, and unless a declaration and a survey map and plans have been recorded pursuant to chapter 64.32 RCW. PPQQ. CONDOMINIUM CONVERSIONS: The filing of a declaration pursuant to the Horizontal Property Regimes Act, of the sale by a developer of condominium units that were previously rental units. QQRR. CONFERENCE CENTERS: Facilities where large gatherings of people converge to meet on a variety of subjects. These facilities are characterized by one large space where exhibits are set up and numerous adjoining meeting rooms. This definition excludes sports arenas, auditoriums, and exhibition halls. RR. CONGREGATE RESIDENCE: Any building or portion thereof that contains facilities for living, sleeping and sanitation and may include facilities for eating and cooking for occupancy for other than a family. A “congregate residence” may include a boarding house, but does not include a group home I or II, convalescent center, jail, hotel, motel or secure community transition facility. (Amd. Ord. 4982, 9-23-2002) SS. CONSERVANCY: A Shoreline Master Program land use designation identifying an area to be managed in essentially its natural state while providing for a moderate to low intensity of land uses surrounding the area. TT. CONSTRUCTION ACTIVITIES: Construction and all activities associated with construction, to include, but not be limited to, construction, remodeling, repair, and maintenance of structures, equipment, roads, and utilities; AGENDA ITEM # 8. a) ORDINANCE NO. ________ 33 mining; grading; landfilling; and excavating. Construction activities may be regulated by permits issued by the City including, but not limited to, public works construction permits, building permits, and mining, excavation, and grading permits and licenses. UU. CONSTRUCTION/CONTRACTOR’S OFFICE: An area where a construction contractor maintains its office, as well as storage for equipment and materials, for the construction and landscaping trades. VV. CONSTRUCTION WASTE: Solid waste resulting from the building or renovation of buildings, roads and other human-made structures. Construction waste includes, but is not limited to, materials such as plasterboard, cement, dirt, wood, and brush. WW. CONTAINMENT DEVICE: A device that is designed to contain an unauthorized release, retain it for cleanup and prevent released materials from penetrating into the ground. XX. CONTAMINANT: See RMC 4-6-100. YY. CONTIGUOUS PROPERTIES: Properties sharing a property line. ZZ. CONTINUOUS MONITORING: See RMC 4-5-120G. AAA. CONVALESCENT CENTER: A facility licensed by the State for patients who are recovering health and strength after illness or injury, or receiving long- term care for chronic conditions, disabilities, or terminal illnesses. Facilities provide twenty-four (24) hour supervised nursing care and feature extended treatment that is administered by a skilled nursing staff. Typically, residents do not live in individual units and the facilities provide personal care, room, board, laundry service, and organized activities. This definition does not include adult family homes, assisted living, group homes II, medical institutions, and/or secure community transition facilities. BBB. CONVERTED BUILDING: Any condominium or cooperative which formerly contained rental dwelling units. CCC. COOPERATIVE: Any existing structure, including surrounding land and improvements, which contains one or more dwelling units and which: (a) is owned by an association organized pursuant to the Cooperative Association Act (chapter 23.86 RCW); or (b) is owned by an association with resident shareholders who are granted renewable leasehold interests in housing units in the building. DDD. COOPERATIVE UNIT: Any dwelling unit in a cooperative. AGENDA ITEM # 8. a) ORDINANCE NO. ________ 34 EEE. COPY: The graphic content of a sign surface in either permanent or removable letter, pictographic, symbolic, or alphabetic form. FFF. CORNER LOT: See LOT TYPES; Lot, Corner. GGG. CORRIDOR: A strip of land forming a passageway between two (2) otherwise separate parts. HHH. COTTAGE HOUSE DEVELOPMENT: A unit-lot subdivision consisting of at least three (3) unit lots containing small scale (no more than one thousand five hundred (1,500) gross square foot) detached, single-family dwelling units clustered around a shared common open space. III. COUNTY AUDITOR: As defined in chapter 36.22 RCW or the office of the person assigned such duties under the King County Charter. JJJ. COVID-19 DEINTENSIFICATION SHELTER: A facility (whether a separate structure, or situated inside or outside a building or a portion of a building) used for the relocation of homelessness shelters and encampments for the purposes of de-intensifying or reducing density in response to the novel coronavirus (COVID-19) pandemic. A COVID-19 deintensification shelter that meets the definition of a homeless services use – overnight shelter – is both a COVID-19 deintensification shelter and a homeless services use – overnight shelter. KKK. CRITICAL AREAS: Wetlands, aquifer protection areas, fish and wildlife habitat, frequently flooded and geologically hazardous areas as defined by the Growth Management Act and RMC 4-3-050, Critical Areas Regulations. LLL. CRITICAL FACILITY: A facility for which even a slight chance of flooding, high geologic hazard, or inundation in the areas of flood hazard or volcanic hazard might be too great. Critical facilities include, but are not limited to, schools, nursing homes, hospitals, police, fire and emergency response installations, and facilities that produce, use or store hazardous materials or hazardous waste. MMM. CRITICAL HABITAT or CRITICAL WILDLIFE HABITAT: Habitat areas associated with threatened, endangered, sensitive, monitored, or priority species of plants or wildlife and which, if altered, could reduce the likelihood that the species would maintain and reproduce over the long term. See also RMC 4-3-050. NNN. CROSS CONNECTION: See RMC 4-6-100. OOO. CUL-DE-SAC: A vehicular turn-around at the end of a dead end street. AGENDA ITEM # 8. a) ORDINANCE NO. ________ 35 PPP. CULTURAL FACILITIES: Facilities which offer passive entertainment and enjoyment activities to the general public. This definition includes, but is not limited to, museums and libraries. This definition excludes adult entertainment businesses; dance halls; dance clubs; religious institutions; and gaming/gambling facilities. QQQ. CURB: A vertical curb and gutter section constructed from concrete. SECTION XIV. Section 4-11-040 of the Renton Municipal Code is amended as follows: 4-11-040 DEFINITIONS D: A. DANCE CLUB: Any facility, restricted to adults over twenty one (21) years of age, at which dancing occurs, as a primary form of entertainment. This definition excludes adult entertainment businesses, entertainment clubs, and gaming/gambling facilities, dance halls and other establishments conducting public dances as defined in RMC 5-13-1. B. DANCE HALL: Any place where a public dance, as defined in RMC 5-13-1, is conducted without restriction on age, or restricted to minors only. Dance halls are further regulated under RMC Title 5 and require a license to operate. This definition excludes adult entertainment businesses, dance clubs, entertainment clubs, and gaming/gambling facilities. C. DANGEROUS BUILDING: As defined by the “Uniform Code for the Abatement of Dangerous Buildings.” D. DATA CENTER: A facility used primarily for off-site storage of computer systems and associated components including applications and secure data. Some data centers may include maintenance areas and a small office. Data centers may be occupied by single or multiple tenants, but typically have a small number of employees and visitors. See RMC 4-11-230, WAREHOUSING. E. DAY CARE CENTER: A day care operation licensed by the State of Washington (WAC 388-73-014), for thirteen (13) or more children in any twenty four (24) hour period, or any number of children in a nonresidential structure. This definition does not include adult day care/health. F. DAY CARE, FAMILY, HOME: A day care operation licensed by the State of Washington (WAC 388-73-014), caring for twelve (12) or fewer children in any twenty four (24) hour period within the caregiver’s place of residence. AGENDA ITEM # 8. a) ORDINANCE NO. ________ 36 G. DAYLIGHTING: Restoration of a culverted or buried watercourse to a surface watercourse. H. DEDICATION: A deliberate appropriation of land by its owner for any general and public uses, reserving to himself/herself no other rights than such as are compatible with the full exercises and enjoyment of the public uses to which the property has been devoted. I. DEED OF DEDICATION: A formal dedication of right-of-way or easement to the City, to be approved by City Council, the Hearing Examiner, the Public Works Administrator or designee, or the Community and Economic Development Administrator or designee. J. DEMOLITION WASTE: Solid waste resulting from the demolition or razing of buildings, roads and other human-made structures. Demolition waste includes, but is not limited to, concrete, brick, bituminous concrete, wood and masonry, composition roofing and roofing paper, steel, and minor amounts of other metals like copper. K. DENSITY, GROSS: A measure of population, dwelling units, number of lots, or building area related to land area, and expressed as a ratio, i.e., one thousand (1,000) people per square mile, one dwelling unit per acre, or one lot per acre. L. DENSITY, NET: A calculation of the number of housing units and/or lots that would be allowed on a property after critical areas, i.e., very high landslide hazard areas, protected slopes (except evaluate on a case-by-case basis those protected slopes created by previous development), wetlands, Class 1 to 4 streams and lakes, or floodways, and public rights-of-way and legally recorded private access easements, are subtracted from the gross area (gross acres minus streets and critical areas multiplied by allowable housing units per acre). Developments meeting the definition of a shopping center are not required to deduct areas within access easements from the gross site area for the purpose of calculating net density. Required critical area buffers, streams that have been daylighted including restored riparian and aquatic areas, public and private alleys, unit lot drives, drives, joint use driveways (and the access easements upon them), and trails shall not be subtracted from gross acres for the purpose of net density calculations. All fractions which result from net density calculations shall be truncated at two (2) numbers past the decimal (e.g., 4.5678 becomes 4.56). Calculations for minimum or maximum density which result in a fraction that is one-half (0.50) or greater shall be rounded up to the nearest whole number. Those density calculations resulting in a fraction that is less than one-half (0.50) shall be rounded down to the nearest whole number. For the purpose of calculating AGENDA ITEM # 8. a) ORDINANCE NO. ________ 37 net density, co-living housing is treated as one-quarter (0.25) of a dwelling unit. M. DEPARTMENT: The Department of Community and Economic Development of the City of Renton, unless otherwise specified. N. DEPARTMENT ADMINISTRATOR: See ADMINISTRATOR. O. DEPOSIT AREA: The designated area(s) where refuse, recyclables, and compostables will be stored. P. DESIGNATED ZONE FACILITY: Any hazardous waste treatment and storage facility that requires an interim or final status permit under rules adopted under chapter 70.105 RCW and that is not a “preempted facility” as defined in RCW 70.105.010. Q. DETENTION/RETENTION FACILITIES: Facilities designed either to hold runoff for a short period of time and then release it to the point of discharge at a controlled rate or to hold water for a considerable length of time during which the volume is reduced through evaporation, evapotranspiration by plants, or infiltration into the ground. R. DETERMINATION OF NONSIGNIFICANCE (DNS): The written decision by the responsible official of the lead agency that a proposal is not likely to have a significant adverse environmental impact, and therefore an EIS is not required (WAC 197-11-310 and 197-11-340). The DNS form is in WAC 197-11- 970. S. DETERMINATION OF NONSIGNIFICANCE, MITIGATED (MDNS): A DNS that includes mitigation measures and is issued as a result of the process specified in WAC 197-11-350. T. DETERMINATION OF SIGNIFICANCE (DS): The written decision by the responsible official of the lead agency that a proposal is likely to have a significant adverse environmental impact, and therefore an EIS is required AGENDA ITEM # 8. a) ORDINANCE NO. ________ 38 (WAC 197-11-310 and 197-11-360). The DS form is in WAC 197-11-980 and must be used substantially in that form. U. DEVELOPABLE AREA: Land area outside of critical areas, critical area and shoreline buffers, and public rights-of-way that is otherwise developable. V. DEVELOPMENT: The division of a parcel of land into two (2) or more parcels; the construction, reconstruction, conversion, structural alteration, relocation or enlargement of any structure; any mining, excavation, landfill or land disturbance and any use or extension of the use of land. W. DEVELOPMENT: (This definition for RMC 4-3-050, Critical Areas Regulations, use only.) Any manmade change to improved or unimproved real estate, including but not limited to buildings or other structures, mining, dredging, filling, grading, paving, excavation or drilling operations or storage of equipment or materials located within the area of special flood hazard. X. DEVELOPMENT: (This definition for RMC 4-3-090, Shoreline Master Program Regulations, use only.) A use consisting of the construction or exterior alteration of structures; dredging; drilling; dumping; filling; removal of any sand, gravel or minerals; bulkheading; driving of piling; placing of obstructions; or any other projects of a permanent or temporary nature which interferes with the normal public use of the surface of the waters overlying lands subject to the Act at any state of water level. This does not include dismantling or removing structures if there is no other associated development or redevelopment. Y. DEVELOPMENT AGREEMENT: A recorded contract entered into by the city and an applicant setting forth development standards and other provisions governing and vesting a development or use for a duration of time specified in the contract. May be used to obligate an applicant to fund or provide services, infrastructure, or other facilities. Z. DEVELOPMENT PERMIT: Written permission after appropriate review for type of application from the appropriate decision-maker authorizing the division of a parcel of land, the construction, reconstruction, conversion, structural alteration, relocation or enlargement of any structure, utility, or any use or extension of the use of the land. AA. DEVELOPMENT REGULATIONS (for vesting purposes): The following controls placed on development or land use activities by the City, including but not limited to: Comprehensive Plan Policies, zoning regulations, subdivision regulations, shoreline management regulations, road design standards, site development regulations, sign regulations, critical areas regulations, and all regulations and land use controls that must be satisfied AGENDA ITEM # 8. a) ORDINANCE NO. ________ 39 as a prerequisite to obtaining approval of an application for development. For the purposes of this definition, construction and utility regulations such as stormwater standards and erosion/sediment control requirements contained in RMC Title IV, Development Regulations, building standards, fire standards, sewer utility standards, and Health Department standards are not considered development regulations or land use controls. RMC Title IV processes and procedures are not considered development regulations or land use controls. BB. DEVELOPMENT SERVICES DIRECTOR: The Director of the Development Services Division of the Department of Community and Economic Development or designee. CC. DISPLAY SURFACE: The area made available by the sign structure for the purpose of displaying the advertising message. DD. DISPLAY WINDOW: A window in a building facade intended for nonpermanent display of goods and merchandise. EE. DIVERSION FACILITY: A facility that provides inpatient healthcare for individuals that are self-admitted or ordered, diverted, or referred from jails, hospitals, doctors or similar treatment facilities or professionals, or by first responders, including law enforcement, hospital emergency department social workers, and similar professionals. Services may include an array of inpatient healthcare treatment and support services including but not limited to screening and assessment, psychological counseling, case management, crisis management, detox services, substance use and trauma-related treatment services, behavioral/mental health care, medical isolation, care, or treatment, counseling, respite services, and various levels of accommodations for sleeping purposes. Some outpatient healthcare services may be provided. Not included in this definition are congregate residences, assisted living facilities, adult family homes, group homes, convalescent centers, social service organizations, or homeless services uses. FF. DOCK: A fixed or floating platform extending from the shore over the water. GG. DOUBLE CHECK VALVE ASSEMBLY: See RMC 4-6-100. HH. DOUBLE-WALLED: See RMC 4-5-120G. II. DOWNTOWN BUSINESS DISTRICT: Those uses, buildings, and walkways within the area mapped in RMC 4-2-080D. In general, the area is bounded at the north by parcel lines near South Second Street, at the east by the Cedar River and I-405, at the south by parcel lines near South Fourth Street and AGENDA ITEM # 8. a) ORDINANCE NO. ________ 40 parcel lines along South Third Street, and at the west by parcels along Burnett Avenue South and Shattuck Avenue South. JJ. DRAINAGE AREA: The total area whose drainage water flows to and across the subject property. KK. DREDGING: The removal of earth from the bottom or banks of a body of water. LL. DRIP LINE: A tree’s drip line shall be described by a line projected to the ground from the outer edge of the tree canopy delineating the outermost extent of foliage in all directions. MM. DRIP LINE, PROTECTED: A tree drip line identified to be retained and preserved as an undisturbed, vegetated area that fully encompasses the drip line of a protected tree removed in violation of a land development permit. NN. DRIVE-IN/DRIVE-THROUGH RETAIL OR SERVICE: A business or a portion of a business where a customer is permitted or encouraged, either by the design of physical facilities or by service and/or packaging procedures, to carry on business in the off-street parking or paved area accessory to the business, while seated in a motor vehicle. In some instances, customers may need to get out of the vehicle to obtain the product or service. This definition shall include but not be limited to drive-in/drive-through services at eating and drinking establishments, fast-food restaurants, coffee stands, and banks and pharmacies. This definition excludes vehicle service and repair, vehicle fueling stations, and car washes. OO. DRIVEWAY, SHARED:  A single driveway serving two (2) or more adjoining lots, parcels, or tracts for the purposes of vehicular access. New shared driveways shall conform to the provisions of RMC 4-6-060J, Shared Driveway Standards. PP. DROP-OFF ZONE: A sidewalk area abutting a street intended for passengers to enter or exit vehicles that are temporarily parked for that purpose. QQ. DWELLING, ATTACHED: A dwelling unit connected to one or more dwellings by common roofs, walls, or floors or a dwelling unit or units attached to garages or other nonresidential uses. This definition includes all structures or portions of structures meeting this definition, but excludes boarding and lodging houses, adult family homes, and group home I or group home II, as defined herein. AGENDA ITEM # 8. a) ORDINANCE NO. ________ 41 RR. DWELLING, DETACHED: A building containing one dwelling unit which is not attached to any other dwelling by any means except fences and is surrounded by open space or yards. This definition includes single-family dwellings and cottages. SS. DWELLING UNIT: A structure or portion of a structure designed, occupied, or intended for occupancy as a single residential unit providing complete, independent living facilities with separated living quarters, a kitchen, sleeping, and sanitary facilities provided for the exclusive use of a single household. For the purposes of this definition, “sanitary facilities” shall include a sink, a toilet, and a shower or bathtub. Dwelling units (attached or detached) include the following types: 1. Apartment(s): Multiple attached dwelling units in a residential building in which units may be separately rented or owned. Unit entrances are provided from a common internal corridor and individual units’ habitable area is provided on a single level. 2. Accessory dwelling unit(s): An independent subordinate dwelling unit that is located on the same lot as a single-family dwelling, courtyard apartment, stacked flat, duplex, triplex, fourplex, and/or townhouse, or on the same lot as a principal building actively operated with a nonresidential use by a religious institution or social service organization. This may include units over detached garages. 3. Co-Living Housing: A residential development with sleeping units that are independently rented and lockable and provide living and sleeping space, and residents share kitchen facilities with other sleeping units in the building. Other terms that refer to co-living housing include, but are not limited to, congregate living facilities, single room occupancy, rooming house, boarding house, lodging house, and residential suites. 4. Cottage(s): A detached, single-family dwelling unit that is oriented around a shared common open space within a unit lot subdivision. 45. Courtyard Apartment(s): Attached dwelling units arranged on two or three sides of a yard or court. 56. Garden Style Apartment(s): A dwelling unit that is one of several stacked vertically, with exterior stairways and/or exterior corridors and surface parking. Parking is not structured and may include detached carports or garages. Buildings and building entries are oriented toward internal drive aisles and/or parking lots and not street frontage. There is typically no formal building entry area connected to a public sidewalk and a public street. AGENDA ITEM # 8. a) ORDINANCE NO. ________ 42 7. Middle Housing: Attached dwelling units that are compatible in scale, form, and character with single-family dwellings, having a permanent foundation, and containing two or more attached or stacked homes, including duplexes, triplexes, fourplexes, townhouses, stacked flats, and courtyard apartments. 8. Single-Family: A detached dwelling unit which is not attached to any other dwelling unit(s) by any means except fences, has a permanent foundation, and is surrounded by open space or yards. This definition does not include accessory dwelling units or manufactured homes. 9. Townhouse(s): A dwelling unit attached to one (1) or more such units by one or more common vertical walls in which each unit occupies the building from the bottom of the foundation to the roof, has at least two (2) exterior faces, front and rear ground-level access to the outside, and no unit is located over another unit. Townhouse units may be multistory. SECTION XV. Subsection 4-11-200.V. of the Renton Municipal Code is amended as follows: V. TRANSIT STOP, MAJOR (AREA A): (This definition applies to RMC 4-2-110C, Development Standards for Accessory Dwelling Units, use only.) A transit stop governed pursuant to the provisions of RCW 36.70A.535(11)(b) and RCW 36.70A.696(8) which includes any of the following: 1. A stop on a high capacity transportation system funded or expanded under the provisions of chapter 81.104 RCW; 2. Commuter rail stops; 3. Stops on rail or fixed guideway systems, including transitways; 4. Stops on bus rapid transit routes or routes that run on high occupancy vehicle lanes; or 5. Stops for a bus or other transit mode providing actual fixed route service at intervals of at least fifteen (15) minutes for at least five (5) hours during the peak hours of operation on weekdays. SECTION XVI. Subsection 4-11-200.W. of the Renton Municipal Code is amended as follows: AGENDA ITEM # 8. a) ORDINANCE NO. ________ 43 W. TRANSIT STOP, MAJOR (AREA B): (This definition applies to RMC 4-2- 110F, Development Standards for Middle Housing, use only.) A transit stop governed pursuant to the provisions of RCW 36.70A.030(257) which includes any of the following: 1. A stop on a high capacity transportation system funded or expanded under the provisions of chapter 81.104 RCW; 2. Commuter rail stops; 3. Stops on rail or fixed guideway systems; or 4. Stops on bus rapid transit routes, including those stops that are under construction. SECTION XVII. Upon approval of the City Attorney, the City Clerk is authorized to direct the codifier to make necessary corrections to this ordinance, including the corrections of scriveners or clerical errors; references to other local, state, or federal laws, codes, rules, or regulations; or ordinance numbering and section/subsection numbering and references. The City Clerk is further authorized to direct the codifier to update any chapter, section, or subsection titles in the Renton Municipal Code affected by this ordinance. SECTION XVIII. If any section, subsection, sentence, clause, phrase, or word of this ordinance should be held to be invalid or unconstitutional by a court of competent jurisdiction, such invalidity or unconstitutionality thereof shall not affect the constitutionality of any other section, subsection, sentence, clause, phrase, or word of this ordinance. SECTION XIX. This ordinance shall be in full force and effect on December 31, 2025. The summary shall consist of this ordinance’s title. AGENDA ITEM # 8. a) ORDINANCE NO. ________ 44 PASSED BY THE CITY COUNCIL this day of , 2025. Jason A. Seth, City Clerk APPROVED BY THE MAYOR this day of , 2025. Armondo Pavone, Mayor Approved as to form: Shane Moloney, City Attorney Date of Publication: ORD-CED:25ORD019:10/10/2025 AGENDA ITEM # 8. a) EXHIBIT A 4-2-060 ZONING USE TABLE – USES ALLOWED IN ZONING DESIGNATIONS: USES: RESIDENTIAL ZONING DESIGNATIONS INDUSTRIAL COMMERCIAL ZONING DESIGNATIONS RC R-1 R-4 R-6 R-8 RMH R-10 R-14 RMF RMF- 2 IL IM IH CN CV CA CD CO COR UC-1 UC-2 A. AGRICULTURE AND NATURAL RESOURCES Agriculture P35 P35 Home agriculture AC3 5 AC3 5 AC3 5 AC3 5 AC3 5 AC3 5 AC3 5 AC35 AC3 5 AC3 5 Natural resource extraction/recovery H H H H H H H H H H H H H H H H H H H Research – Scientific (small scale) P P P P P P P P P P P P P P P P P P P P P B. ANIMALS AND RELATED USES Beekeeping AC AC AC AC AC AC AC AC AC AC Kennels AD P37 P37 P37 AD AD AD AD AD Stables, commercial AD AD Pet day care P37 P37 P37 AD AD AD AD AD AD AD8 2 AD8 2 AG E N D A I T E M # 8 . a ) EXHIBIT A USES: RESIDENTIAL ZONING DESIGNATIONS INDUSTRIAL COMMERCIAL ZONING DESIGNATIONS RC R-1 R-4 R-6 R-8 RMH R-10 R-14 RMF RMF- 2 IL IM IH CN CV CA CD CO COR UC-1 UC-2 Veterinary offices/clinics P AD42 P P P P112 P P P29 P P82 P82 C. RESIDENTIAL Single-family P P P P P P P Cottage P32 P32 P32 P32 P32 P32 P32 Apartments P P P P P6 P6 P6 P6 P16 P6 P6 P6 Middle housing P P P P P Garden style apartments P P P6 Townhouses P P P13 P13 P6 P6 P6 Accessory dwelling unit AC7 AC7 AC7 AC7 AC7 AC7 AC7 Manufactured homes P50 P50 P50 P50 P50 P P50 P50 D. OTHER RESIDENTIAL, LODGING AND HOME OCCUPATIONS Adult family home P P P P P P P P P P P P3 AG E N D A I T E M # 8 . a ) EXHIBIT A USES: RESIDENTIAL ZONING DESIGNATIONS INDUSTRIAL COMMERCIAL ZONING DESIGNATIONS RC R-1 R-4 R-6 R-8 RMH R-10 R-14 RMF RMF- 2 IL IM IH CN CV CA CD CO COR UC-1 UC-2 Assisted living AD AD P P P P P3 P40 P P96 P96 Caretaker’s residence AC AC AC AC AC AC AC AC Congregate residenceCo- Living Housing P38 P38 P38 P38 P38 P39 ADP39 P39 P39 P6 P6 P6 P36 P16 P6 P6 P6 Group homes I AD H3 Group homes II for 6 or less AD P P P P P P P P P P P3 P Group homes II for 7 or more H H H H H H H H H P H H3 AD Home occupations (RMC 4-9-090) AC AC AC AC AC AC AC AC AC AC AC AC AC AC AC AC AC Live-work unit AD AD AD Permanent supportive housing88 H H H H H H H H H H H H H H6 H6 H6 H6 H16 H6 H6 H6 Transitional housing88 H H H H H H H H H H H H H H6 H6 H6 H6 H16 H6 H6 H6 E. SCHOOLS AG E N D A I T E M # 8 . a ) EXHIBIT A USES: RESIDENTIAL ZONING DESIGNATIONS INDUSTRIAL COMMERCIAL ZONING DESIGNATIONS RC R-1 R-4 R-6 R-8 RMH R-10 R-14 RMF RMF- 2 IL IM IH CN CV CA CD CO COR UC-1 UC-2 K-12 educational institution (public or private) H9 H9 H9 H9 H9 H9 H9 H9 H9 H9 H H H H9 H9 H9 H9 H9 H87 H87 Other higher education institution P29 P29 P29 P P P P21 AD8 7 AD8 7 Schools/studios, arts and crafts P P29 P29 P P P P Trade or vocational school P P H H H77 H77 F. PARKS Parks, neighborhood P P P P P P P P P P P P P P P P P P P P P Parks, regional/community, existing P P P P P P P P P P P P P P P P P P P P P Parks, regional/community, new AD AD AD AD AD AD AD AD AD AD AD AD AD AD AD AD AD AD AD P P G. OTHER COMMUNITY AND PUBLIC FACILITIES Cemetery H H H H H H H H H H H H H H H H H AG E N D A I T E M # 8 . a ) EXHIBIT A USES: RESIDENTIAL ZONING DESIGNATIONS INDUSTRIAL COMMERCIAL ZONING DESIGNATIONS RC R-1 R-4 R-6 R-8 RMH R-10 R-14 RMF RMF- 2 IL IM IH CN CV CA CD CO COR UC-1 UC-2 Religious institutions H H H H H H H H H H H H H H H H H H H H H Social service organizations H H H H H H H H H H H12 H21 H82 H82 Private club, fraternal organizations H H H H H H H H H H H H H H H H H12 H21 H82 H82 City government offices AD AD AD AD AD AD AD AD AD AD AD AD AD AD AD AD P AD AD AD City government facilities H H H H H H H H H H H H H H H H H H H H H Community health engagement location (CHEL) Jails, existing municipal P Diversion facility H71 H71 Secure community transition facilities H71 H71 Other government facilities H H H H H H H H H H H H H H H AG E N D A I T E M # 8 . a ) EXHIBIT A USES: RESIDENTIAL ZONING DESIGNATIONS INDUSTRIAL COMMERCIAL ZONING DESIGNATIONS RC R-1 R-4 R-6 R-8 RMH R-10 R-14 RMF RMF- 2 IL IM IH CN CV CA CD CO COR UC-1 UC-2 Other government maintenance facilities H H Other government offices AD42 P P P AD P112 P P P P P92 P92 Homeless services use H H H H H H H H H H H COVID-19 deintensification shelter P101 P101 P101 P101 P101 P101 H. OFFICE AND CONFERENCE Conference centers P P P H P P P P21 P18 P18 Medical and dental offices AD42 P P P AD P112 P P P P P92 P92 Offices, general AD42 P P P AD P112 P P P P P92 P92 I. RETAIL Adult retail use (RMC 4-3- 010) P P P P P P P12 Coffee stand80, 81 AD AD AD AD AD AD AD8 2 AD8 2 AG E N D A I T E M # 8 . a ) EXHIBIT A USES: RESIDENTIAL ZONING DESIGNATIONS INDUSTRIAL COMMERCIAL ZONING DESIGNATIONS RC R-1 R-4 R-6 R-8 RMH R-10 R-14 RMF RMF- 2 IL IM IH CN CV CA CD CO COR UC-1 UC-2 Commissary kitchen31 P P P AC AC P26 AC P27 AC AC AC Drive-in/drive-through, retail19, 80 AC AC AC AC AC6 1 AC AC6 1 AC8 2 AC8 2 Eating and drinking establishments80, 81 P1 P1 P1 P1 P1 P1 P1 AD33 AD3 4 AD3 4 P29 P P P22 P61 P P61 P12 P82 P82 P82 Horticultural nurseries, existing AD AD AD AD AD AD AD AD AD AD AD AD AD AD AD AD AD AD AD AD Horticultural nurseries, new AD AD2 9 Marijuana retail (RMC 4-1- 250) AD P AD P21 P82 P82 Mobile food vending P10 P10 P10 P10 P10 P10 P10 P10 P10 P10 P23 P23 P23 P10 P23 P23 P23 P23 P10 P10 P10 Retail sales AD33 AD AD AC AC AC P22 P P P P54 P21 P82 P82 Retail sales, outdoor P15 P15 P30 P30 P30 P15 P15 P15 P15 P15 Taverns AD P20 AD P21 P82 P82 AG E N D A I T E M # 8 . a ) EXHIBIT A USES: RESIDENTIAL ZONING DESIGNATIONS INDUSTRIAL COMMERCIAL ZONING DESIGNATIONS RC R-1 R-4 R-6 R-8 RMH R-10 R-14 RMF RMF- 2 IL IM IH CN CV CA CD CO COR UC-1 UC-2 Vehicle sales, large P29 P29 P29 P29 Vehicle sales, small P P P P68 Walk-up window81 AD1 AD1 AD1 AD1 AD1 AD1 AD1 AD33 AD3 3 AD3 3 AD AD AD AD AD AD AD AD AD AD AD Wholesale retail P P P P29 P79 P79 J. ENTERTAINMENT AND RECREATION Adult entertainment business (RMC 4-3-010) P P P P P P12 Card room P52 P52 P52 P52 Cultural facilities H H H H H H H H H H AD AD AD AD AD AD AD AD AD AD AD Dance clubs P29 P29 P29 AD P20 AD P29 AD Dance halls P29 P29 P29 AD P20 AD P29 AD Gaming/gambling facilities, not-for-profit H29 H29 H29 H20 H29 AG E N D A I T E M # 8 . a ) EXHIBIT A USES: RESIDENTIAL ZONING DESIGNATIONS INDUSTRIAL COMMERCIAL ZONING DESIGNATIONS RC R-1 R-4 R-6 R-8 RMH R-10 R-14 RMF RMF- 2 IL IM IH CN CV CA CD CO COR UC-1 UC-2 Movie theaters P29 P29 P29 AD P20 P P12 P82 P82 Smoking lounge Sports arenas, auditoriums, exhibition halls, indoor AD2 9 AD2 9 AD2 9 P20 P AD2 9 H18 H18 Sports arenas, auditoriums, exhibition halls, outdoor AD2 9 AD2 9 AD2 9 AD2 0 AD2 9 H18 H18 Golf courses (existing) P P P P P P P Golf courses, new H P H H H H H Marinas P P21 H H Recreational facilities, indoor, existing H P33 P29 P29 P29 P P P P54 P21 P82 P82 Recreational facilities, indoor, new H P29 P4 P P P91 P12 P21 P82 P82 AG E N D A I T E M # 8 . a ) EXHIBIT A USES: RESIDENTIAL ZONING DESIGNATIONS INDUSTRIAL COMMERCIAL ZONING DESIGNATIONS RC R-1 R-4 R-6 R-8 RMH R-10 R-14 RMF RMF- 2 IL IM IH CN CV CA CD CO COR UC-1 UC-2 Recreational facilities, outdoor P29 P29 P29 H20 H29 H83 H83 K. SERVICES Bed and breakfast house, accessory AD AD AD AD AD AD AD AD AD P Bed and breakfast house, professional AD AD AD5 AD5 AD P Hotel P29 P29 P29 P P20 P P P P18 P18 Hotel, extended stay P29 P29 P29 P29 P Motel P29 P29 P29 P P20 Off-site services P29 P29 P29 P29 On-site services AD33 P29 P29 P29 P22 P P P P54 P21 P82 P82 Drive-in/drive-through service AC6 1 AC6 1 AC6 1 AC8 0 AC6 1 AC8 0 AC6 1 AC6 1 AC6 1 AC8 2 AC8 2 Adult day care I AC AC AC AC AC AC AC AC AC AC P P P P P P P P P P100 P100 AG E N D A I T E M # 8 . a ) EXHIBIT A USES: RESIDENTIAL ZONING DESIGNATIONS INDUSTRIAL COMMERCIAL ZONING DESIGNATIONS RC R-1 R-4 R-6 R-8 RMH R-10 R-14 RMF RMF- 2 IL IM IH CN CV CA CD CO COR UC-1 UC-2 Adult day care II H H H H H H H H P P P P P P P P12 P21 P100 P100 Day care centers H25 H25 H25 H25 H25 H25 H25 H25 P P P P P P P P P21 P100 P100 Family day care AC AC AC AC AC AC AC AC AC AC AC AC AC AC AC AC AC3 AC AC AC AC Convalescent centers H H H H H P AD P3 P40 AD AD9 6 AD9 6 Medical institutions H H H H H H H H H H29 H29 H H H H P H H H L. VEHICLE RELATED ACTIVITIES Car washes P P P AD2 P2 Fuel dealers H59 P Industrial engine or transmission rebuild P28 P28 P28 Parking garage, structured, commercial or public P P P P P20 P3 P P P92 P92 AG E N D A I T E M # 8 . a ) EXHIBIT A USES: RESIDENTIAL ZONING DESIGNATIONS INDUSTRIAL COMMERCIAL ZONING DESIGNATIONS RC R-1 R-4 R-6 R-8 RMH R-10 R-14 RMF RMF- 2 IL IM IH CN CV CA CD CO COR UC-1 UC-2 Parking, surface, commercial or public, existing P29 P29 P29 P20 P3 AD Parking, surface, commercial or public, new P29 P29 P29 P20 AD Park and ride, dedicated P107 P107 P107 P107 P107 P107 P107 P107 P107 Park and ride, shared-use P P P P P P P P P P P P107 P109 P107 P P107 P107 Railroad yards P Taxi stand P AD AD Tow truck operation/auto impoundment yard P36 H59 P AD3 6 Transit centers H29 H29 H29 P H20 P H29 P P Truck terminals P Vehicle fueling stations P P P P P P29 AG E N D A I T E M # 8 . a ) EXHIBIT A USES: RESIDENTIAL ZONING DESIGNATIONS INDUSTRIAL COMMERCIAL ZONING DESIGNATIONS RC R-1 R-4 R-6 R-8 RMH R-10 R-14 RMF RMF- 2 IL IM IH CN CV CA CD CO COR UC-1 UC-2 Vehicle fueling stations, existing legal P P P AD P P P29 Vehicle rental, small P P P P20 Vehicle and equipment rental, large P29 P29 P29 Vehicle service and repair, large AD2 P P Vehicle service and repair, small P2 P2 P2 AD2 AD2 AD2 Wrecking yard, auto H59 H Airplane manufacturing H59 P78 P78 Airplane manufacturing, accessory functions AC P78 P78 Airplane sales and repair P Airport, municipal P AG E N D A I T E M # 8 . a ) EXHIBIT A USES: RESIDENTIAL ZONING DESIGNATIONS INDUSTRIAL COMMERCIAL ZONING DESIGNATIONS RC R-1 R-4 R-6 R-8 RMH R-10 R-14 RMF RMF- 2 IL IM IH CN CV CA CD CO COR UC-1 UC-2 Airport-related or aviation- related uses AC Helipads P111 H29 H29 H29 H H H78 H78 Helipads, commercial H H78 H78 M. STORAGE Bulk storage P29 P29 P29 Hazardous material storage, on site or off site, including treatment H24 H24 H24 Fulfillment center AD1 1 AD1 1 Outdoor storage, existing P29 P29 P29 P64 Outdoor storage, new P29 P29 P29 P64 Self-service storage AD2 9 P59 P H17 AG E N D A I T E M # 8 . a ) EXHIBIT A USES: RESIDENTIAL ZONING DESIGNATIONS INDUSTRIAL COMMERCIAL ZONING DESIGNATIONS RC R-1 R-4 R-6 R-8 RMH R-10 R-14 RMF RMF- 2 IL IM IH CN CV CA CD CO COR UC-1 UC-2 Vehicle storage AD2 9 AD2 9 AD2 9 Warehousing AD1 1 AD1 1 AD1 1 Warehousing and distribution AD1 1 AD1 1 N. INDUSTRIAL Assembly and/or packaging operations P P P P86 P86 Commercial laundries, existing P29 P29 P29 P4 Commercial laundries, new P29 P29 P29 Construction/contractor’s office P P P Craft distilleries with tasting rooms, small wineries, and micro- breweries P P P P P P P P AG E N D A I T E M # 8 . a ) EXHIBIT A USES: RESIDENTIAL ZONING DESIGNATIONS INDUSTRIAL COMMERCIAL ZONING DESIGNATIONS RC R-1 R-4 R-6 R-8 RMH R-10 R-14 RMF RMF- 2 IL IM IH CN CV CA CD CO COR UC-1 UC-2 Industrial, heavy P14 Laboratories: light manufacturing P29 P29 P29 AD P20 P3 AD5 4 P86 P86 Laboratories: research, development and testing P28 P P H P20 AD3 AD H P86 P86 Manufacturing and fabrication, heavy H59 P67 Manufacturing and fabrication, medium P67 P67 Manufacturing and fabrication, light P P P AD2 9 P P Recycling collection and processing center P28 P28 P28 P29 Recycling collection station P P P P P P P P P Sewage disposal and treatment plants H59 H AG E N D A I T E M # 8 . a ) EXHIBIT A USES: RESIDENTIAL ZONING DESIGNATIONS INDUSTRIAL COMMERCIAL ZONING DESIGNATIONS RC R-1 R-4 R-6 R-8 RMH R-10 R-14 RMF RMF- 2 IL IM IH CN CV CA CD CO COR UC-1 UC-2 Waste recycling and transfer facilities H59 P O. UTILITIES Battery energy storage system facility Communication broadcast and relay towers H H H H H H H H H H H29 H29 H29 H H H H H H Electrical power generation and cogeneration H H H66 H66 H66 H66 H66 H66 H66 H66 H66 Utilities, small P5 P5 P5 P5 P5 P5 P5 P5 P5 P5 P P P P P P P P P P P Utilities, medium AD5 AD5 AD5 AD5 AD5 AD5 AD5 AD5 AD5 AD5 AD AD AD AD AD AD AD AD AD AD AD Utilities, large H5 H5 H5 H5 H5 H5 H5 H5 H5 H5 H H H H H H H H H H H Solar energy system, ground-mounted, small- scale AC AC AC AC AC AC AC AC AC AC P. WIRELESS COMMUNICATION FACILITIES AG E N D A I T E M # 8 . a ) EXHIBIT A USES: RESIDENTIAL ZONING DESIGNATIONS INDUSTRIAL COMMERCIAL ZONING DESIGNATIONS RC R-1 R-4 R-6 R-8 RMH R-10 R-14 RMF RMF- 2 IL IM IH CN CV CA CD CO COR UC-1 UC-2 Amateur radio antenna AD8 AD8 AD8 AD8 AD8 AD8 AD8 AD8 AD8 AD8 AD8 AD8 AD8 AD8 AD8 AD8 AD8 Camouflaged WCF AD AD AD AD AD AD AD AD AD AD AD AD AD AD AD AD AD AD AD AD AD Concealed WCF AD AD AD AD AD AD AD AD AD AD AD AD AD AD AD AD AD AD AD AD AD Major alterations to existing WCF structures AD AD AD AD AD AD AD AD AD AD AD AD AD AD AD AD AD AD AD AD AD Minor alterations to existing WCF structures P P P P P P P P P P P P P P P P P P P P P Monopole I support structures H47 H47 H47 H47 H47 H47 H47 H47 H47 H47 H47 H47 H47 H47 H47 H47 H47 H47 H47 Monopole II support structures H47 H47 H47 H47 H47 H47 H47 H47 H47 H47 H47 H47 Small cells complying with a preferred concealment technique P P P P P P P P P P P P P P P P P P P P P Small cells submitting a concealment element plan AD AD AD AD AD AD AD AD AD AD AD AD AD AD AD AD AD AD AD AD AD AG E N D A I T E M # 8 . a ) EXHIBIT A USES: RESIDENTIAL ZONING DESIGNATIONS INDUSTRIAL COMMERCIAL ZONING DESIGNATIONS RC R-1 R-4 R-6 R-8 RMH R-10 R-14 RMF RMF- 2 IL IM IH CN CV CA CD CO COR UC-1 UC-2 Stealth tower AD AD AD AD AD AD AD AD AD AD AD AD AD AD AD AD AD AD AD AD AD Q. GENERAL ACCESSORY USES Accessory uses per RMC 4-2-050 and as defined in chapter 4- 11 RMC, where not otherwise listed in Use Table AC AC AC AC AC AC AC AC AC AC AC AC AC AC AC AC AC AC AC AC AC Blank=Not Allowed P#=Permitted AD=Administrative Conditional Use AC=Accessory Use P=Permitted Use provided condition can be met H=Hearing Examiner Conditional Use #=Condition(s) Uses may be further restricted by: RMC 4-3-020, Airport Related Height and Use Restrictions; RMC 4-3-040C, Uses Permitted in the Renton Automall Improvement District; RMC 4-3-050, Critical Areas Regulations; RMC 4-3-090, Shoreline Master Program Regulations AG E N D A I T E M # 8 . a )