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Home My WebLink AboutAgenda Packet for 11/16/2015 ��/�-_:: � , CITY OF � � �� AGENDA !� City Council Regular Meeting 7:00 PM-Monday, November 16,2015 Council Chambers, 7th Floor, City Hall—1055 S. Grady Way 1. CALL TO ORDER AND PLEDGE OF ALLEGIANCE 2. ROLL CALL 3. SPECIAL PRESENTATION a) Renton Reporter's 2015 FilmFrenzy People's Choice Award 4. PUBLIC HEARINGS a) Street Vacation Request: Portion of a Right-of-Way in the Vicinity of 300 Rainier Ave. N. (Petitioner:City of Renton;VAC-15-003) b) 2016 School District Impact Fees 5. ADMINISTRATIVE REPORT 6. AUDIENCE COMMENT • Speakers must sign-up prior to the Council meeting. • Each speaker is altowed five minutes. • The first comment period is limited to 30 minutes. • The second comment period, later on the agenda, is unlimited in duration. • When recognized, please state your name&city of residence for the record. NOTICE to all participants: pursuant to state law, RCW 42.17A.555,campaigning for any ballot measure or candidate in City Hall and/or during any portion of the council meeting, including the audience comment portion of the meeting,is PROHIBITED. 7. CONSENT AGENDA The following items are distributed to Councilmembers in advance for study and review,and the recommended actions will be accepted in a single motion.Any item may be removed for further discussion if requested by a Councilmember. a) Approval of the November 9, 2015 Council meeting minutes. Council Concur b) Mayor Law reappoints Robert Dempster(Primary Position -Aircraft Owners&Pilots Association)to the Airport Advisory Committee for a term expiring on May 7,2018. Council Concur c) Mayor Law appoints Kelly Beymer as the new Community Services Administrator at step A of salary grade m49,effective 1/1/2016. Council Concur d) City Attorney requests authorization to hire a Senior Assistant City Attorney at step D of salary grade m42. Council Concur e) Community&Economic Development recommends approval of a Facade Improvement Agreement to loan$200,000,from Community Development Block Grant(CDBG)funds, to Cortona LLC,for the purposes of assisting with exterior improvements to their property located at 724 S.3rd St. Council Concur f) Community&Economic Development Department recommends approval to extend the sunset clause to 12/31/2018 for accepting applications for the Multi-Family Housing Property Tax Exemption Program. Refer to Planning&Development Committee g) Community&Economic Development Department recommends approval to extend the sunset clause to 12/31/2018 for accepting applications for the Owner-Occupied and Rental Housing Incentive Programs. Refer to Planning&Development Committee h) Community& Economic Development Department requests approval of an Exemption Agreement for The Lofts at Second and Main project to receive a partial property tax exemption upon completion. Refer to Planning&Development Committee i) Human Resources/Risk Management Department recommends approval of the 2016 Group Health Cooperative medical coverage contracts for LEOFF I retirees and all active employees, in the total amount of$219,721. Council Concur j) Human Resources/Risk Management Department recommends approval of a contract in the amount of$323,202 with Healthcare Management Administrators(HMA)and Envision Rx for 2016 medical, dental, and prescription claims processing. Council Concur k) Transportation Systems Division recommends approval of an amendment to the Seaplane Base Dredging&Shoreline Mitigation Project(CAG-12-008) in the amount of$55,330 to extend the time of the project and raise the costs and scope of work;the funding will be provided via a transfer of$40,000 from the Airport ending fund balance. Refer to Transportation(Aviation)Committee 8. UNFINISHED BUSINESS Topics listed below were discussed in Council committees during the past week. Those topics , marked with an asterisk(*) may include legislation. Committee reports on any topics may be held by the Chair if further review is necessary. aj Finance Committee:2016 School District Impact Fees*,Vouchers, Utility Bill Adjustment Requests 9. RESOLUTIONS AND ORDINANCES Ordinances for first reading: a) 2016 School District Impact Fees(See item S.a.J Ordinance for second and final reading: �, b) CA Zoning Ordinance(First reading 11/9/2015J � 10. NEW BUSINESS (Includes Council Committee agenda topics;visit rentonwa.gov/cityclerk for more information.) 11. AUDIENCE COMMENTS 12. ADJOURNMENT COMMITTEE OF THE WHOLE AGENDA (Preceding Council Meeting) 7TH FLOOR CONFERENCING CENTER , November 16, 2015 Monday, 5:30 p.m. Renton River Days � Neighborhood Program Update � Regional Issues Hearing assistance devices for use in the Council Chambers are available upon request to the City Clerk CITY COUNCIL MEETINGS ARE TELEVISED LIVE ON GOVERNMENT ACCE55 CHANNEL 21 To view Council Meetings online,please visit rentonwa.gov/councilmeetings .. �.,.� .��_�,,��, y�,�� .�� `�` � r � � � ,,� ,�,,,,� ..� � � - �+c� ��I�� ..:. �� . � � �� . � v ,� . . 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'.� .. _ . . � ... ,. ,.... . .. - , _ .. , ,;. � . . � .+" , . . ."r - - . . .. . . . .. .. - . . � . � _ - � - .. . � . . , .. $� . . .;Yv Iss�quah School Dis�r�c� • The Issaquah School District requests an impact fee of $4,635 �� er new sin le famil �� p g Y house . ■ • A $75 increase from • last year n � Z � � �ti`�� o�, m _-- ♦ A � 3 �� RENTON .� o �, AHLAD OF THE CURVE �� : , - ..,..:�,�:_..,,- - � - � _ _ , . � r.�.�:�.:".,_. . � :.__- _ -.;; - �µ . �.. - > - _, ._.. r, . . .... ... .._ . . ..,, ,__��.,,:, =-. . , , . _ � ,��:T _^.��$�.�:::�,�ti.��.:;�:;��,�..� . ,,:.�.., . .. . ... ., �...., .. :. � Issaq�� Schaol Dis��ic� � The Issaquah School District requests an , impact fee of $1,534 ■� ■� per new multi-famil �' " y unit . ■ • A $76 increase from • last year n � Z v n - U��Y ° rn ___----_. • �' 3 --�.� . � ♦ � RENTON ��, o� a, AHEAD OF THE C(JRVE "' •� `,. � �;� ,�a'� „,�J ,,,„ ,,, ., � y� .� �"��'� �„,� �-:� ��-'� y�'�°�'�, ,, , ., ,". , �._ � ��4/.� t� _. _ f ..,� �'-re��$' _ „�� 3 ... . �,.s . � C-��x ..�, E h'�k 'r.. 3, i .. .:..._ . - -.. - . ,> . . , . .., .. . . . :.. ..0 , .. ' -+ . . ; . P , : �__. . : .. . . . . . ., ` f�. � . . ; . �. . . ,, , , . ." - .`: . � . ,.. ,�. . ':. ' � .... .. . . . ' -.:. . ...._ :� . . .: , . . , .. . . . � ....c�..�r.cWu'Y' '" '-a...., . .e .', . �- ., , s:w,.r:,vt.., � . ':,.,� .�. ,, .. . .� .. - .;�b;:.�`:';, ...i .,, _3,.�•,'.a . .. s:_�- .._._. Ker�� ScMooi Dis��ic� � The Kent School District requests an impact fee of $4,990 per new �� sin le-famil house '� �� g y • A $496 decrease ■ from last year • n � z n _ �ti`�� o�, m _._____._. A + 3 � � � RENTON �'.� �o� �, AHEAD OF THE Cl7RVE � `� � � —._— — � _ f � �_ - fi � - - ,� �. � . . _ �� ,.�.,.._�.r , r.. ....:;,,;� ��, '`��.-4. _.-.a._, n.':;�� r •,,,,, ---� � '�^r #,�::��. Xr a , . � , .: . - . - . r � . �� t�C+�r�� • The Kent School District re uests an impact fee q of $2,163 per new ■■ ■■ ■■ ■■ multi-family unit � A $1,215 decrease, r from last year ' � � rn � ' o � _ �� o rn C� g � � } + � -- -.�� ,��` �,� . R. ENTQN �N`� a AHEAD Of Tl3E CURYE .. , � ,,. . - :�:�. -_; ..n.. �. .,...�:��, x ��, ,�, �.Ex 5.. . � � �.`�. � .,�., ..... ..�. ;... . _ - � . _ n,.. ,�. .�: .:.�,,,.�.�.,�;_v,� ,.f., 3.. �� r� ,e '� c � �:.. . � �,� ,_ _ . r � . .�. , ` ,,- ` r � . - < �aa ...., �� The Renton School District requests an im act fee of $5,643 ■� ■■ p �� ' - ar�r�li �� ! per new singie f y house '� . ■ t a $1�2 �ncrease from i � I�S# ��C ', y � � � � '� � ! � `�� a m i �,ti �' � � � _...,._.....�.....,,..�,� ♦ �, ♦ � I - T C�� '�' �Q a� � � E l�J �r ,�. � AHEAp QF T!-IE CURVE ' �_._,._:.,a ;._�..-_.:-.�.. ..,.,. ._ � _ ,� �.�_ .. _ . =_ �<_.r m,�.� .��,, .�� .�, .,�� . . ... ._:, : _...�_,,.,�:�-� � �� . . ,..��.�..�,,,�� ,,.,,,;--.::. ,..: ..:., .:..., � �.. . �t�n�on Sc�oal Dis�r�c� � The Renton School District requests an impact fee of $1,385 ■� ■� per new multi-family �' " unit . ■ • A $25 �ncrease from • last year � � z 0 n - ��.`�Y o�, m _— 8 3 , � ♦ � RENT � N �� o� • AHEAD OF THE CIJRVL• '` �� , ��, ',. v'W#��N{-�. 4 rt'f• ` �"._Y�' _f ��`�'�� '3^ 5 -: �4 - . _ � � ��p�. - __ ":T f... - ��..:. R .. ,:-``R� a ��" °�.ye ..- , , - .. . , _ _ _ _ _ � ..'�".Y?6� - . +InRsmJ x.,+e. _ a:-. , '.i:.__, ,.. � �ri-. � �' _ - _.., . .,. � .. y�� _ �`��J_ .a � " u' n= •t- a.a„ �'S� �+�:�,, i n.� � �,_ ' ., . .. . ,� t . c ' . , . , ,. ' a T...4 ?�'�Y. ., _ �� This item has been referred to the Finance �ommittee fior review • �it �auncii actian to b� taken t�night: �� v • r Pubiic Testiman '�� Hea Y • ' e Co m m itte e Re o rt � Apprave Financ p • ' first readin '� Present ordinance for � , � � � � m z 0 a `' I �,`�� o,� m � � g � ' ♦ � _..._ .`\ ,�,��` ,� . RENTON �N�° a r1HEA(� QF T'HE C[SRVE AGENDA /TEM #7, a) ��s � CITY OF n n � MINUTES City Council Regular Meeting 7:00 PM-Monday,November 9,2Qi5 Council Chambers,7th Floor, City Hall—1055 S.Grady Way CALL TO ORDfR AND PLEDGE OF ALLEGIANCE Mayor Pro Tem Prince called the meeting of the Renton City Council to order at 7:00 PM and led the Pledge of Allegiance. ROLL CALL Councilmembers Present: Councilmembers Absent: Ed Prince, Mayor Pro Tem Don Persson Randy Corman,Council President Pro Tem Armondo Pavone Ruth Perez Marcie Palmer Greg Taylor MOVED BY CORMAN,SECONDED BY PAVONE,COUNCIL EXCUSE ABSENT COUNCILMEMBER DON PERSSON.CARRIED. ADMINISTRATIVE STAFF PRESENT 1ay Covington, Chief Administrative Officer Alex Tuttle,Assistant City Attorney Megan Gregor, Deputy City Clerk , Gregg Zimmerman, Public Works Administrator Jennifer Henning, Planning Director Commander Mike Luther, Police Department PROCLAMATION Leadership Eastside Day-November 9,2015.A proclamation by Mayor Law was read declaring November 9,2015 to be Leadership Eastside Day in the City of Renton,and all citizens were encouraged to join in recogn�zing the many contributions that Leadership Eastside has made to the community. MOVED BY CORMAN,SECONDED BY PAVONE,COUNCIL ADOPT THE PROCLAMATION AS READ.CARRIED. November 9, 2015 REGULAR COUNCIL MEETING MINUTES 1 I --- AGENDA 1TEM #7. a) ADMINISTRATIVE REPORT Chief Administrative Officer Jay Covington reviewed a written administrative report summarizing the City's recent progress towards goals and work programs adopted as part of its business plan for 2015 and beyond. Items noted were: • Public Works Maintenance Services workers Kip Braaten and Rob Blackburn participated in the state APWA ROADEO competition on Thursday,October 29th in Yakima.Out of a total of 52 competitors Kip Braaten received 11th place in Snow Plow/Sander Truck Course and 37th place in Loader. Rob Blackburn received 25th place in Snow Plow/Sander Truck Course,3rd place in Backhoe Course,20th place in Loader and 7th place overall. • Preventative street maintenance will continue to impact traffic and result in occasional street closures. AUDIENCE COMMENT Amanda Scofield, Renton,addressed concerns about the cleanliness and safety of Cascade Park.She believes that the condition of the park has deteriorated and wanted to know what she could do to make the park a safer place for children and families. MOVED BY CORMAN,SECONDED BY PAVONE,COUNCIL REFER PUBLIC SAFETY • ISSUES REGARDING CASCADE PARK TO THE ADMINISTRATION.CARRIED. CONSENT AGENDA Items listed on the consent agenda were adopted with one motion,following the listing. a) Approval of the November 2,2015 Council meeting minutes. Council Concur. b) Administrative Services Department submitted a request for utility billing adjustments at Westgate Condominiums and Stir Restaurant,and recommended approving adjustments in the amounts of$13,250.38 and$14,292.24. Refer to Finance Committee. c) City Clerk submitted a request for the partial release of Easement by Chris Tonkin of Bellevue TT LLC,to construct a new storm water drainage line located in the vicinity of NE 4th St.& Union Ave. NE. Refer to Utilities Committee. d) Fire&Emergency Services Department recommended approval of an agreement with the Washington State Military Department to accept Department of Homeland Security Emergency Management Performance Grant(EMPG)funds in the amount of$73,093 to support the emergency management program.Council Concur. e) Utility Systems Division submitted CAG-15-099,SE 165th Sanitary Sewer Extension project, contractor Scotty's Generat Construction;and requested acceptance of the project, approval of the final pay estimate in the amount of$6,640.76,and release of the retainage bond after 60 days, if all required releases are obtained.Council Concur. MOVED BY CORMAN,SECONDED BY PAVONE, COUNCIL CONCUR TO APPROVE THE CONSENT AGENDA AS PRESENTED.CARRIED. November 9, 2015 REGULAR COUNCIL MEETING MINUTES 2 AGENDA ITEM #7, a) UNFINISHED BUSINESS , , a) Committee on Committees Chair Palmer presented a report recommending the following council committee assignments for 2016: FINANCE UTILITIES (2"d &4th Mondays, 5:00 pm) (15t & 3�d Mondays,4:30 pm) Don Persson, Chair Council Seat 4, Chair Armondo Pavone, Vice Chair Ruth Perez,Vice Chair Ruth Perez, Member Council Seat 3, Member PUBLIC SAFETY PLANNING & DEVELOPMENT (2"d &4th Mondays, 4:00 pm) (2"d &4th Thursdays, 3:00 pm) � Armondo Pavone, Chair Ed Prince, Chair ' Don Persson,Vice Chair Council Seat 4, Vice Chair Ed Prince, Member Armondo Pavone, Member COMMUNITY SERVICES TRANSPORTATION (2nd &4th Thu�sd8y5, 4:00 pm) (15t & 3`d Mondays, 5:00 pm) I Council Seat 3, Chair Ruth Perez, Chair , Ed Prince,Vice Chair Council Seat 3,Vice Chair Council Seat 4, Member pon Persson, Member MOVED BY CORMAN,SECONDED BY PAVONE,COUNCIL CONCUR IN THE COMMITTEE REPORT.CARRIED. b) Planning&Development Committee Chair Corman presented a report recommending concurrence with the Planning Commission and staff recommendation to amend the maximum density allowed in the Commercial Arterial(CA)zone by Communiry Planning Areas as follows: City Center and Highlands 60 dwelling units per acre; East Plateau and Kennydale 30 dwelling units per acre;and no attached housing in Cedar River, Benson,Talbot and Valley.The , Committee further recommended repealing the moratorium on new residential development in the CA zone.The Planning and Development Committee also recommended the ordinance regarding this matter be presented for first reading. MOVED BY CORMAN,SECONDED BY PAVONE,COUNCIL CONCUR IN THE COMMITTEE REPORT. CARRIED. ' RESOLUTIONS AND ORDINANCES Ordinance for first reading: aj Ordinance No.5778:An ordinance was read amending Sections 4-2-080 and 4-2-120 of Chapter 2,Zoning Districts—Uses and Standards,of Title IV(Development Regulations)of the Renton Municipal Code,amending the residential zoning standards in the CA(Commercial Arterial)Zone. MOVED BY CORMAN,SECONDED BY PAVONE,COUNCIL REFER THE ORDINANCE FOR SECOND AND FINAL READING ON 11/16/2015.CARRIED. November 9, 2015 REGULAR COUNCIL MEETING MINUTES 3 AGENDA 1TEM #7. a) Ordinances for second and final reading: b) Ordinance No.5774:An ordinance was read establishing the Property Tax Levy for the year 2016 for general City operational purposes in the amount of$37,250,000. MOVED BY CORMAN,SECONDED BY PAVONE,COUNCIL ADOPT THE ORDINANCE AS READ.ROLL CALL:ALL AYES.CARRIED. c) Ordinance No.5775:An ordinance was read authorizing the Property Tax Levy for the year 2016. MOVED BY CORMAN,SECONDED BY PAVONE,COUNCIL ADOPT THE ORDINANCE AS READ. ROLL CALL:ALL AYES.Carried d) Ordinance No.5776:An ordinance was read relating to the regutar Property Tax Levies for coltection in 2016, implementing RCW 84.55.0101 and finding substantial need to increase the regular property tax limit factor above the rate of inflation to one percent(1%),for a total limit factor of one hundred and one percent(101%). MOVED BY CORMAN,SECONDED BY PAVONE,COUNCIL ADOPT THE ORDINANCE AS READ. ROLL CALL:ALL AYES. Carried NEW BUSlNESS See attached Council committee meeting calendar. ADJOURNMENT MOVED BY CORMAN,SECONDED BY PAVONE,COUNCIL ADJOURN.CARRIED.TIME 7:18 P.M. Jason A.Seth,CMC,City Clerk Megan Gregor, Recorder Monday, November 9,2015 November 9, 2015 REGULAR COUNCIL MEETING MINUTES 4 AGENDA ITEM #7. a) Council Committee Meeting Calendar November 9, 2015 .,, . - November Y0,2015 . Tuesday 11:00 AM Transportation Committee, Chair Palmer, Council Conference Room 1. Bridge Replacement Contract 2. Logan Ave. Update 3. Emerging Issues in Transportation November 16.2015 : � Monday , 3:30 PM Public Safety Committee, Chair Pavone, Council Conference Room t. Emerging Issues in Public Safety 4:30 PM Finance Committee,Vice Chair Taylor, Council Conference Room 1. Schoo) Impact Fees 2. Vouchers 3. Utility Bill Adjustment Requests 5:30 PM Committee of the Whole, Chair Prince, Conferencing Center 1. Renton River Days Wrap-up 2. Neighborhood Program Update 3. Regionallssues i AGENDA ITEM #7. b) � CITY OF ~ - enton � � • • . . . � SUBJECT/TITLE: Reappointment of Airport Advisory Committee member RECOMMENDED ACTION: Council Concur DEPARTM ENT: Executive STAFF CONTACT: April Alexander, Executive Assistant EXT.: 6520 . .. ' Expenditu�e Required: . $,N%A � Transfer Amen�lmettt: -s � $ N/A Amount Budgeted: $ N/A Revenue Generated: $ N/A ,�"atat,�Pro'�ct Bud et: ;�,:N� - � Cit Shar��Tota�.�?`:q ect: �1 A. } � , ��;�>,; Y, $�� . .� . , � `i t, ,. ....._,. ,.M �,. ... . ,,:,.�.. .. . ,. ..,.. �� ,� ., P.. .. . .:;.� ' :� , _..:;;>:, �a. ..�, . � . �_. ,ro.�.�.... . ..... .... ....�u��,..,..,,�,�::n�:�....�4;��,,�.�.;,M �,: w. . M��:.��,�v�.��, ��;�..�.m�;,�..�x.-w ��,�_.��=.��,a�. + • • � • Mayor Law appoints Robert Dempster(primary position-Aircraft Owners& Pilots Association)to the Airport Advisory Committee for a term expiring May 7, 2018. None � � ' • � � • Concur with Mayor Law's appointment of Mr. Dempster to the Airport Advisory Committee for a term expiring on May 7, 2018. AGENDA /TEM #7. c) �-: � CITY OF --.''' �rl�t�rl � . . . . . , SUBJECT/TITLE: Appointment of Community Services Administrator RECOMMENDED ACTION: Council Concur DEPARTMENT: Executive STAFF CONTACT: Jay Covington, Chief Administrative Officer EXT.: 6500 . . . ..,�,.....,. ::�t��..,.._ _. ,.: �. .K. ._,M,.,_.;. :,. ._ . . __. Expenditure Required: $128,800, ' Transfer Amendment: ' , '- $ N/A Amount Budgeted: $ 128,800 Revenue Generated: $ N/A Total Project Budget: $N,%A° City Share To�al Pr�ject ;_ $�1/A . . _ �.�.._. .. . __ . ��.�_.�.._ � - , � � • � • In February 2016, the position of Community Senrices Administrator will become vacant when Terry Higashiyama (current Community Services Administrator) retires. Mayor Law is appointing Kelly Beymer, Parks & Golf Course Director,to this position. Beymer has served in the director position since 2008. She previously was the general manager of Maplewood Golf Course from 2002 to 2008. Because the Community Services Administrator position was included in the 2016 budget,there is no additional cost to the City. Under RMC 1-4-3, this position is subject to confirmation by a majority of the members of Renton City Council. None. , � • • � � • Confirm the appointment of Kelly Beymer to the Community Services Administrator position, grade m49, step A, effective January 1, 2016. AGENDA ITEM #7. d) � CITY OF � �� ' � • • • � SUBJECT/TITLE: Compensate Shane Moloney as a Senior Assistant City Attorney at Step D Grade m42 RECOMMENDED ACTION: Council Concur DEPARTMENT: City Attorney STAFF CONTACT: Larry Warren, City Attorney EXT.: 6484 . •. «...,,.. , W,.. .. _. .. e :. :�- :;.::-:.... ; . , .. Expenditure Required: $ N/A Transfer Amenidment: $N/A Amount Budgeted: $ N/A Revenue Generated: $ N/A Total Project Budget: $'Nf.A.= � - , C'►ty Share Total{�'�to�ect a;$��A , , � • • � • Shane Moloney is a talented attorney with over 10 years of experience working in the public sector as an attorney and has been the City Attorney of Mill Creek for the last four years. If hired, he would bring to the City of Renton an experienced employee who would provide quality service to the community. Shane is currently being compensated by Mill Creek in an amount equivalent to Step D of Grade m42.The difference I between Step C, the entry step that could be offered without Council approval, and Step D is$504/month or '' $6,048/year,which would be covered by the existing budget for the position. Shane will replace Garmon Newsom II who left the City's employ at the end of August.The 2016 budget anticipated Garmon remaining with the City at Step E Grade m42. Therefore,this request creates no � additional increase in the Senior Assistant City Attorney Salaries and Wages line item. 'i . '� None. , � • • � � • Authorizie hiring Shane Moloney at Step D Grade m42. AGENDA ITEM #7, e) ` �i,.. _ CITY OF � �Y1tC)�'1 � . . . . . . SUBJECT/TITLE: Facade Improvement Agreement for 724 South 3rd Street RECOMMENDED ACTION: Council Concur DEPARTMENT: Community& Economic Development STAFF CONTACT: John Collum, Community Development Project Manager EXT.: 6589 , •. ,,. , :�=:�:��.:;�.. . ,..,.-�:.,z n.., . ._ ., - , .�_ _ -;: - N . ... , .. Expenditure Required: $ N/A` Transfer Ame��me�tt:: ` ��N�a` Amount Budgeted: $ N/A Revenue Generated: $ N/A Totai,�roj�ct BNdget: ,$11�A,� � , . , . . Cit�Shar�.'�%i�ta�'3�� $�IIA r . . ...� .. . �, .��`��r. _r, -� a.��.�� .. ,..�,..��.. .. . . . ., .. . . � ' • � � In 2014, City Council approved the Downtown Commercial Rehabilitation and Fa�ade Improvement Loan Program ("Program") as part of an action to allocate Community Development Block Grant (CDBG) monies to fund local economic development activities.The Program provides financial assistance as an incentive for owners in the Downtown and South Renton subareas(as designated in the City Center Community Plan)to rehabilitate their commercial buildings, improve existing building facades, encourage private investment, provide marketable space for new and expanding businesses, achieve significant visual improvements, and improve the combined subareas' overall health and safety. In June 2015, the City received an application for Program funding from the owners (Cortona LLC) of the property located at 724 South 3rd Street.The owners are requesting$200,000 in Program funding to assist with the exterior improvements, and plan to use personal funds to cover the balance of the exterior costs.The Agreement and its funding will allow the owners to select a contractor and move forward with construction, which they expect to begin within 30 days following execution of the Agreement. : A. Issue Paper B. Facade Improvement Agreement and Exhibits � � ' • �� • Authorize the Mayor to execute the Facade Improvement Agreement with Cortona LLC. AGENDA 1TEM #7, e) DEPARTMENT OF COMMUNITY -�� C�TYOF & ECONOMIC DEVELOPMENT �Renton O M E M O R A N D U M DATE: November 16, 2015 ' T0: Ed Prince, Council President Members of Renton City Council VIA: Denis Law, Mayor FROM: Chip Vincent, Community& Economic Development Administrator STAFF CONTACT: John W. Collum, Community Development Project Manager SUBJECT: Fasade Improvement Agreement for 724 South 3�Street ISSUE: Should the City enter into an agreement with Cortona LLC to provide $200,000 in Community Development Block Grant (CDBG) assistance for fa4ade improvements to the building located at 724 South 3�d Street in Downtown Renton? RECOMMENDATION: Authorize the Mayor to execute the Fa�ade Improvement Agreement with Cortona LLC. BACKGROUND SUMMARY: In 2014, City Council approved the Downtown Commercial Rehabilitation and Fa�ade Improvement Loan Program ("Program") as part of an action to allocate CDBG monies to fund local economic development activities. The Program provides financial assistance as an incentive for owners in the Downtown and South Renton subareas (as designated in the City Center Community Plan) to rehabilitate their commercial buildings, improve existing building facades, encourage private investment, provide marketable space for new and expanding businesses, achieve significant visual improvements, and improve the combined subareas' overall health and safety. In June 2015, the City received an application for Program funding from the owners (Cortona LLC) of the property located at 724 South 3�d Street. The owners plan to significantly rehabilitate the property's existing building, commonly known as the Old Renton Western Wear Building. The owners are planning to make over$500,000 worth of renovations to the building's exterior, along with significant additional improvements to the building's interior to accommodate an office use on the second floor and three-to-four retail/restaurant tenant spaces on the ground itoor. The owners are requesting$200,000 in Program funding to assist with the exterior improvements, and plan to use personal funds to cover the balance of the exterior costs. AGENDA ITEM #7, e) Ed Prince,Council President Page 2 of 2 November 16,2015 Economic Development staff reviewed the funding request and believes it presents a prime opportunity to utilize Program funding to provide significant improvements and investment to a long-vacant building in the center of the downtown area. The proposed improvements will attract new retail and restaurant opportunities that will increase pedestrian and economic activity, with the opportunity of generating additional downtown revitalization activity. Economic Development staff and the owners negotiated a set of proposed loan terms that were reviewed by the Program Loan Committee (consisting of representatives from the City's Finance and Community& Economic Development departments and a local financial institution). The Loan Committee approved the requested funding on September 10, 2015, with the condition that the owners provide a Personal Guarantee to re-pay the loan in the case of a default and there are no other remedies available to the City to recover the loan funds. Economic Development staff and the City Attorney Office drafted a Fa�ade Improvement Agreement ("Agreement," attached)that embodies the terms under which the Program funding would be provided to the owners as a conditional loan. The owners have signed the Agreement, and it is now awaiting the Mayor's signature on behalf of the City. The general terms of the Agreement are as follows: • Loan amount not to exceed $200,000, to be matched dollar for dollar by owners' funds; • Loan proceeds disbursed on a reimbursement basis; • Loan funds used only for exterior improvements in accordance with architectural drawings attached to the Agreement; • Zerointerest; • loan term of five years following completion of construction; loan is eligible to be forgiven at end of term based upon owners meeting certain performance standards during the term period; • Loan secured by a Promissory Note, Deed of Trust, and a Personal Guarantee (forms of which are attached to the Agreement); and • Owners to provide insurance and meet other required standards f�r projects utilizing federal CDBG funds managed through the amended "King County Housing and Community Development Contract—2014" between the City and King County. The Agreement and its funding will allow the owners to select a contractor and move forward with construction, which they expect to begin within 30 days following execution of the Agreement. Construction of the fa�ade improvements are expected to be completed in March 2016. The owners are in discussions with severa► prospective tenants to occupy the ground floor retail space and hope to begin interior improvements while the exterior work is on-going. AGENDA 1TEM #7. e) FACADE IMPROVEMENT AGREEMENT DEVELOPER/OWNER This Fa4ade Improvement Agreement (the "Agreement"j is made this _ day of 2015, between Cortona, LLC ("Developer"), and the City of Renton ("City"), acting by and through the Department of Community and Economic Development(CED), having its office at 1055 South Grady Way, Renton, Washington 98057, and is executed for the purpose of providing funding to Developer througf� City's Fa�ade Improvement Loan Program (the "Program") for the rehabilitation of the fa�ade of a building located at 724 S. 3`d Street, Renton, Washington (the "Property"j. IN CONSIDERATION OF DEVELOPER'S COMPLIANCE WITH THIS FACADE IMPROVEMENT AGREEMENT, CITY AGREES TO PROVIDE DEVELOPER THE FOLLOWING FUNDING FOR REHABILITATION OF PROPERTY: A conditional loan not to exceed $200,000. The Program funding will be provided in the form of a loan that will be forgiven following a five (5)-year period, beginning with the recordation of a deed of trust but subject to certain provisions within this Agreement, and provided that Developer is in compliance with the terms below, the Developer remains the owner of the Property, the Property and the fa�ade continue to be maintained, and insurance and property taxes are paid and current. The source of loan funds is the City of Renton Community Development Block Grant ("CDBG")funds. DEVELOPER AGREES TO THE FOLLOWING TERMS AND CONDITIONS: 1. Use of Loan Funds. Developer shall use the loan proceeds for customary and reasonable project specific expenses necessary for the rehabilitation of the fa�ade of the building located on the Property, which will be used for commercial purposes. The {oan funds shall be used only for exterior improvements. The loan funds shall not be used for interior rehabilitation or improvements that are not included in the approved architectural designs related to the fa�ade renovation. 2. Bud et. Developer agrees to adhere to the project budget, which is attached hereto as Exhibit A and incorporated herein by reference in carrying out the rehabilitation project described in this Agreement. Any line-item changes in the budget require submission of a written budget amendment request to CED. If approved, CED will respond with a written letter of approval to Developer, and will keep a record of the budget amendment on file. 3. Licensed Contractor Procurement. A, Developer agrees to solicit a minimum of three (3) competitive quotes for the fa�ade improvement work from general contractors licensed by the State of Washington. 1 AGENDA ITEM #7, e) B. Developer is advised to develop written quoting instructions for invited contractors to include in its record of evidence for the procurement process. C. Developer shall ensure that there is no conflict of interest between the City and the Developer's selected general contractor and subcontracting team, specifically in relation to Section 17, Ethical Standards, of this Agreement. D. Quotes shall be solicited solely for the Program eligible work. If non-fa�ade (building interior) work is to be completed before, simultaneously, or following fa�ade work funded through this loan, Developer shall delineate non-fa�ade improvements into a separate contract. E. In accordance with U.S. Department of Housing and Urban Development (HUD) requirement A24 CFR 85.36 (b) (9), Developer agrees to provide evidence to the City to support the significant history of the procurement action, including the rationale for the selected method of procurement, the selection of the contract type, contractor selection or rejection, and the basis for the contract price. City may request a capy of all quotes received and the amount of each quote. Typically, the City would expect that Developer select the lowest most responsive quoting contractor, taking into consideration contractor quali�cations to sufficiently complete work within budget and project timeline. An award should be made to the quoting contractor whose quote is responsive to the solicitation and is most advantageous to the Developer, price, quality and other factors considered. 4. Proiect Timetable. Developer shall camplete the Project within the time frames established within the project schedule listed below, unless the City approves an alternative schedule, at the City's sole discretion: # Task Deadline Responsible Party(ies) 1 Environmental review complete August 14, 2015 King County and clearance provided by HUD. Housing and Community Development (HCD) (via NUD) 2 a. Fu�ding approval provided by a. September 10, a. City the City's Program Loan 2015 b. City Committee. b. b. Funding commitment letter provided to Developer. 3 Approval of monitoring plan for Include approved HCD project ground-disturbing plan as part of activities (Environmental quoting and 2 A GENDA 1 TEM #7. e) Conditions and Mitigation construction Measures for Archaeology). documents; complete prior to execution of construction contract. 4 Execute Agreement. Following approval City, Developer of Agreement terms by Developer and City following negotiations, and approval of King County HCD following its review of Agreement draft. S Submit loan package No less than seven City (commitment letter and (7) business days executed Agreement with Loan before loan closing. Reimbursement Request Form format and signed Promissory Note and Deed of Trustj to King County HCD. 6 Close loan. No earlier than City, Developer seven (7) business days following submittal of loan closing package to King County HCD. 7 a. Complete quoting process Prior to start of a. Developer and select general contractor. construction. b. Developer b. Submit procurement action records to City. 8 Execute construction contract. Following selection Developer of general contractor. 9 Hold pre-construction meeting to Following execution Developer(with review project schedule and of construction contractor team), compliance with CDBG Pragram contract and prior to City, King County Regulations (including federal issuance of Notice HCD labor standards). to Proceed. 10 Issue Notice to Proceed. Following pre- City construction meeting and prior to 3 AGENDA ITEM #7. e) beginning construction. , 11 Install "Coming Soon"poster in Following receipt of Developer building window with project Notice ta Proceed, rendering, details, and funding but prior to source (City of Renton CDBG beginning building Program). improvements. 12 Begin building improvements Within 30 days Qeveloper ' included within project budget following execution attached as Exhibit A. of Agreement by City and Developer. 13 Submit a completed Loan No more often than Developer Reimbursement Request Form every 30 days with all supporting (unless approved in documentation for: advance by CED), costs claimed in the request and within 45 days (purchase orders, subcontractor of start of invoices, receipts), evidence of construction. payment of costs by Developer, evidence of City inspections as related to the items included in the request, federally compliant certified weekly payrolls of construction activity, and supporting documents for the ' request period. 14 a. Complete review of Loan a. Within 15 days of a. City, King Reim6ursement Request Form receipt of each County HCD (labor and supporting documentation, monthly submittal compliance only) including requesting any missing by Developer. b. City or corrected information needed b. Within 30 days of , to complete review and approve receipt of each payment. monthly submittal b. Remit reimbursement from Developer. payment to Developer. 15 a. Complete construction. March 2016 a. Developer b. Record Deed of Trust. b. City 16 a. Review and accept labor April 2016 a. King County standards. HCD b. Release retainage. b. City 17 Complete and submit project April 2016 City funding report to King County HCD. 4 AGENDA ITEM #7. e) 18 Close project. No later than May City, King County � 30, 2016 HCD 19 Submit annual �eports on leasing Once peryear, Developer and occupancy status to CED. starting six (6) months after start of construction and every one year anniversary of the first report thereafter for five �5)years. 5. Accomalishment of Work. Developer agrees to carry out the rehabilitation work specified in this Agreement with all practical dispatch in a sound, economical, and efficient manner. At its option, the City reserves the right to cancel and terminate the Agreement if Developer faits or refuses to cause commencement of physical rehabilitation work on the Property after a period of sixty (60) days from the date of execution of this Agreement, or if Developer fails or refuses to complete such rehabilitation work within a reasonable time. The City's failure to exercise its right to terminate this Agreement due to the Developer's failure or . refusal to cause commencement of or to complete the physical rehabilitation work on the Property shall not be deemed a waiver thereof. 6. Records. For a period of six (6) years following completion of the improvements specified in this Agreement, Developer ag�ees to keep the following records: all loan documents; contracts; invoices; materials; personnel and payroll retords; conditions of employment; books of account; tenant leases; tenant income verifications; and any other documentation pertinent to the construction of the Property, the occupancy and rental of the Property, and the disposition of the loan proceeds. Developer shall permit City, HCD, HUD, the Comptroller of the United States, and their designees to have full and free access to these records for the purpose of making audits, examinations, excerpts, and transcriptions. 7. Securitv.Termination and Repavment. A. Securitv/Termination. This conditional loan shall be evidenced by a Promissory Note executed by Borrower (Exhibit B), and secured by a Personal Guarantee (Exhibit C) and a Deed of Trust(Exhibit D) on the Property. The Deed of Trust shall be recorded in the Recorder's Office for King County, Washington when project construction is complete; the final reimbursement request is submitted and approved by the City and HCD; and the final loan amount has been determined based upon the approved loan expenditures. Developer agrees that City shall have the right to cancel or terminate the loan, and that the full amount of the loan that has been paid out to the Developer by City shall be due and payable by the Developer to City on demand if: 5 AGENDA ITEM #7. e) i.The rehabilitation construction is not carried out with reasonable diligence or is discontinued at any time for any reason other than a Force Majeure event, not within the control of either party, as described in Section 32(M) of this Agreement; ii. Developer makes material changes in the scope of work or enters into another contract or subcontract for work on the Property without the prior written approval of City; iii. All Developer's principals die, become legally incapacitated, or otherwise become legally unable to act before the completion of the construction; iv. Developer abandons the Property; fails to keep insurance and taxes current; fails to obtain permits;violates buifding code; or otherwise fails to maintain the fa�ade; v. The sale, lease, or other transfer of any kind or nature of the Property before the completion of the construction without the prior written consent of City, excluding (a) creation of a purchase-money security interest for household appliances, or (b) a transfer by devise, descent, or operation of law upon the death of a joint tenant; vi. Developer defaults on any covenant; agreement; term; or condition of this Agreement or any other agreement made between Developer and City;or vii. Developer transfe�s ownership of the Property or discontinues the approved use during the five (5)-year period after construction completion. However, Developer may request City approval to use the Property for another eligible purpose. Termination or cancellation shall be accomplished by mailing by certified mail or by personally delivering written notice of termination to Developer at Developer's business address, or to any other address that Developer has made known to City either personally or by mail. Termination shall be effective on the date the notice is mailed or personally delivered to Developer's address, regardless of whether the notice is actually received by Developer. B. Reaavment. Any payments are deferred to the end of loan term. No repayment will be required if all terms are met and a determination has been made regarding loan forgiveness (see next section). C. Loan For�iveness. The loan amount will be forgiven at the end of the term, provided all Agreement requirements have been completed;the Deveioper is in good standing; and the property continues to be maintained in accordance with the Program and Agreement requirements, including (a) the Developer remains the owner of the building and property, (b) remains current on City and County property taxes and fees, (c) maintains insurance on the property in accordance with the terms of this Agreement, and (d) maintains the fa�ade 6 A GENDA 1 TEM #7, e) improvements funded through this Agreement and Developer's funds in good repair and free from any accumulation of debris, graffiti, or waste materials, and takes ail other actions necessary to maintain and ensure the neat and clean appearance of the surrounding streetscape area. i. In addition to the terms provided above regarding the loan amount being forgiven at the end of the term, the Developer must also reach and maintain an acceptable level of ground level occupancy of the Property. Upon completion of the fa�ade improvements funded through this Agreement and recordation of the Deed of Trust, Developer has one hundred eighty (180) days to install tenants within at least fifty percent (50%) of the building's ground levef tommercial space square footage, and within one (1) year to achieve at least eighty percent (80%) occupancy of the building's ground level commercial space square footage. Should the ground level commercial space square footage not reach eighty percent (80%) occupancy within this one (1)-year period or not maintain eighty percent (80�0) occupancy throughout the term of the P�omissory Note, the Developer shall notify the City immediately. The City, at its sole discretion, may then grant Developer a ninety (90)-day grace period for Developer to show proof of active and aggressive efforts to obtain tenants for the property to achieve at least eighty percent (80%) occupancy, including but not limited to, the engagement of a professional commercial brokerage firm. Proof of efforts to obtain tenants may also include invoices for advertising, copies of advertisement runs, and any other proof of active marketing of the Property. If the Developer has executed a lease(s) to reach at least eighty percent (80%) occupancy of the ground floor commercial space 5quare footage during this grace period,the City, at its sole discretion, may then grant Developer an additional ninety (90)-day grace period to ensure that the tenant(s) occupy the space to achieve at least eighty percent (80%) occupancy. "Occupancy" refers to having an active business open to the public, or tenant in the case of mixed use properties. Use of the building for storage does not qualify as occupancy. After the initial one (1)-year period and expiration of any grace periads that have been granted by the City during the term of the Promissory Note, if the ground floor commercial space square footage is not at least eighty percent (80%) occupied, or any of the other terms for loan forgiveness under this section have not been met, Developer will be notified that the loan shall become immediately due and payable. ii. Developer shall submit a request to the CED for each identified tenant for an acknowledgement that the tenant generally meets the intent of the Program Guidelines subsection entitled "Project Impact& Public Benefit" under"Application Evaluation". 7 AGENDA ITEM #7, e) 8.Term. A.This Agreement shall be effective until Developer has well and truly performed all the terms and conditions of this Agreement and any other agreement made between Developer and the City. B.All activities specified in 5ection 4 of this Agreement shall begin and be completed within the timeframes provided, unless the City approves any changes, at the City's sole discretion. C. The date of total forgiveness shall be five (5) years after the recordation of the Deed of Trust, estimated to be March 31, 2021, provided Developer has paid all other sums, with interest, advanced to protect the security of the Deed of Trust, and complied with a11 covenants and agreements. 9. Architectural Drawin�s and Specifications/Desi�n Standards. The fa�ade improvements shall be based upon the exterior improvement drawings dated June 4 (Drawings Part 1) and 10 (Drawings Part 2), 2015, attached as Exhibit E and submitted to the National Park Service as part af the Developer's submittal to nominate the subject property for inclusion on the National Register of Historic Places and eligible for federal historic tax credits. A. As the property is eligible for, and is being nominated for, the National Register, all work must comply with the Secretary of Interior's Standards for Rehabilitation of Historic Properties. B. All work shall be performed by qualified contractors in accordance with industry standards, local codes, ordinances, permit and inspection requirements, and both local and federal requirements related to accessibility for pe�sons with disabilities. C. Any finishes proposed at the ground level that may be accessible to humans are subject to an anti-graffiti coating being applied to ensure easy removal of graffiti. The recommended product for this purpose is found at the following link: https://www.sherwin- williams.com/paintin�-contractors/bu5iness-builders/paint-technoloQv-and-application/sw- article-pro-anti�raffiticoa.html. Alternative products may be considered, but shall be submitted to the CED for review and approval prior to application of the coating. D. Any specific signs that are proposed for the building as tenants are identified, during the effective period of this Agreement, shall be submitted to CED for review and approval prior to permitting by the City or the National Park Service, manufacture, and installation. 10. Environmental Review. King County HCD received a letter from HUD dated August � 14, 2015, indicating that the subject project has received satisfactory environmental clearance. Attached ta the letter was an "Authority to Use Grant Funds" form authorizing a 8 AGENDA 1TEM #7, e) release of funds for the project. (Attached hereto as Exhibit F). Developer hereby agrees to the following mitigation measures, as required by HUD in Exhibit F: A. The Developer shall implement all of the following mitigation measures included in the King County Environmental Review Compendium, Project Number C14753-Cortona Building, Environmental Review Record,signed July 16, 2015, including: I i. Archaeology: Project ground-disturbing activities shall be monitored by a professional archaeologist. Monitoring should be conducted under a monitoring plan that specifies the procedures to follow should any archaeological resources be discovered. ', ii. An Unanticipated Discovery Plan for unknown archaeological and human � remains shall be in effect during construction. In the event that archaeological or historic materials are discovered during project activities, work in the immediate vicinity shall stop, the area secured, and the King County Project Manager, State Department of Archaeology & Historic Preservation and concerned tribes notified, and any related issues shall be resolved ; before construction work continues. '� 11. Permitting. Developer shall obtain all permits necessar from the Cit or other �� Y Y applicable jurisdictions to construct the approved project improvements. ' 12. Financial Requirements. A. Matchins Funds. Developer shall match, as a condition of receiving funds pursuant to this Agreement, at a minimum, the amount of the loan in this Agreement. The matching funds must be spent on the approved exterior project improvements. Developer shall provide evidence of payment from matching funds with each request for reimbursement. B. Financia) Capacitv. i. Developer shall provide financial information confirming that it has the capacity to provide matching funds, including, but not limited to, credit history, mortgage verification, business and personal tax returns, reviewed or audited business financial statements (if applicable), and evidence of matching funds (bank statement or similar if personal funds or loan documents if debt). ii. Developer shall at all times remain current on all property taxes, mortgages and insurance. 13. Fees and Closin�Costs. 9 AGENDA ITEM #7, e) A. Developer shall pay a Loan Origination Fee of one hundred fifty dollars ($150) or one quarte� of one percent (0.25%) of the actual loan amount, whichever is greater. The fee cannot be paid out of City loan proceeds. B. Developer shall pay fifty percent (50%) of actual ciosing costs, including any legal fees. 14. Loan Closin�. A loan closing shall be scheduled once all requisite documents have been prepared. As part of the closing process, the City shall provide the following materials to HCD no less than seven (7) days business days before the scheduled loan closing: ' A. Copy of executed commitment letter; B. Copy of the signed loan Agreement; and C. Loan Reimbursement Request Form. 15. Disbursements. A. All financial assistance shall be provided on a reimbursement basis as the project is under construction. B. Developer may request reimbursement of funds for reasonable expenses incurred during the fa�ade improvement work. C. Reimbursement requests may not be submitted more frequently than every thirty (30) days, unless approved in advance by CED. D. City reserves the right to retain up to ten percent (10%) of funds available per reimbursement request until work is i�spected and certified complete at completion of entire project. E. Disbursement of funds shall be contingent upon Developer's and its contractor's compliance with federal regulations related to funding, including any applicable federal labor standards. F. Payment of each reimbursement request is contingent upon: i. Completion of agreed upon project improvements identified in Exhibit E and this Agreement and for which the reimbursement request intends to cover, and all applicable City inspections have been approved. 10 AGENDA ITEM #7. e) ii. HCD staff has verified that all federai labor requirements, HUD Section 3 requirements, and other regulatory requirements have been met prior to approving any payment by the City on the project. a. HCD shall be the recipient of federally compliant certified weekly payrolls of construction activity and supporting documents for labor compliance. Upon review and approval of said documents, HCD shall approve payment. b. Payment shall be withheld by the City for any costs by the general contractor or subcontractors that are out of compliance. G. For each reimbursement request, the Developer shall submit a completed "loan Reimbursement Request Form" (Exhibit G}to indicate all project costs for that request period's work, and indicating costs to be reimbursed by the City and those to be paid from Developer's matching funds du�ing that request period. For each request form submitted, the Developer shall provide all supporting documentation for costs claimed in the request. Supporting documentation for costs claimed includes, but is not limited to, purchase orders and subcontractor invoices. The Developer shall also submit evidence of payment for costs included in each request. H. Upon Developer's submittal of any completed Loan Reimbursement Request Form and all necessary supporting documentation, the City shall work with HCD to complete a timely review and approve payment. The City will seek to remit reimbursement payments to the Developer within thirty (30) days of receipt of the Developer's reimbursement requests, pending Developer's cooperation in submitting any missing or corrected information requested by the City or HCD. 16. Default. A. Developer shall be considered in default and the balance of financial assistance shall be immediately due and payable upon: 1) failure of the borrower to �etain ownership of the property for the duration of the forgivable loan; 2) failure to properly_maintain the fa�ade after improvements are completed; 3) becoming delinquent in paying city and county property taxes and fees; 4) failure to maintain property insurance listing the City of Renton as an Additionally Insured; 5) failure to operate in compliance with all applicable local, state, and federal codes, laws, and regulations; or 6) in the event of breach of this Agreement. B. Remedies of Default. In the event of default, the City may exercise any combination of the remedies available to it with respect to the security agreements. The City may take whatever action at law, or in equity, as may appear necessary or desirable to collect any outstanding balance or to enforce the performance and observation of any other obligation or agreement of the Developer. 11 AGENDA ITEM #7. e) 17. Ethical Standards. Developer takes notice of and represents that it is not in violation of, or has not participated and will not participate in, the violation of any of the following ethical standards prescribed by Title I, Chapter 6 of the Renton Municipal Code (Code of Ethics), including, but not limited to the following: RMC 1-6-4 Acceptance of Gifts: No public official shall receive, accept, take, seek, or solicit, directly or indirectly, anything of economic value as a gift, gratuity, or favor, from any person if such publit official has reason to believe the donor would not grant or give such gift, gratuity, or favor, but for such ' public official's office or position within the City of Renton. No public official shall receive, accept, take, seek, or solicit, whether directly o� indirectly, anything of economic value as a gift, gratuity, or favor, from any person or from any officer or director of such person if such public official has reason to believe such person: A. Has, or is seeking to obtain contractual or other business or financial relationship with the City of Renton; or B. Conducts operations or activities which are regulated by the City Council, its committees or any board or commission of the City of Renton; or C. Has interests which may be substantially affected by such public official's performance or nonperformance of his or her official duty. RMC 1-6-5 Interest in Contracts Prohibited; Exceptions: No public official shall be beneficially interested, directly or indi�ectly, in any contract which may be made by, through, or under the supervision or direction of such public official, in whole or in substantial part, or which may be made for the benefit of his office, or accept, directly or indirectly, any compensation, gratuity or reward in connection with such contract from any other person beneficially interested therein. The fo�egoing shall not apply to the exceptions specified in RCW 42.23.030 which are incorporated herein as if fully set forth. Remote Interest:A public official shall not be deemed to be interested in a contract as specified in the immediately preceding paragraph if he has only a remote interest in the contract and if the fact and extent of such interest is disclosed to the governing body of the City of Renton of which he is a member and noted in the official minutes or similar records of the City prior to the consummation of the contract, and thereafter the governing body authorizes, approves or ratifies the contract in good faith by a vote of its membership sufficient for the purpose without counting the vote or votes of the public official having a remote interest therein. RMC 1-6-6 Incompatible Service; Confidential Information: No elected public official shall engage in or accept private employment or render services for any person or engage in any business or professional activity when such 12 AGENDA 1TEM #7, e) �, employment, service or activity is incompatible with the proper and faithful discharge of his official duties as such elected official, or when it would require or induce him to disclose confidential information acquired by him by reason of his official position. No such official shall disclose confidential information gained by reason of his official position, nor shall he otherwise use such information for his personal gain or benefit. RMC 1-6-7 Personal or Private Interests: Every elected public official who has a financial or other private or personal interest in any ordinance, resolution, contract, proceeding, or other action pending before the City Council or any of its committees, shall promptly disclose such interest at the first public meeting when such matter is being considered by the City Council, on the records of the official Council minutes, the nature and extent of such personal o� private interest and same shall be incorparated in the official minutes of the City Council proceedings. Such disclosure shall include, but not be limited to, the following information which shall be submitted in writing by such Councilman, sworn to under penalty of perjury,to-wit: A. The name and address of any private business corporation, firm or enterprise affected by such councilmanic action of which the Councilman or ather elected public official is or has been during the preceding twelve (12) months a shareholder, bond holder, secured creditor, partner, joint entrepreneur or sole proprietor, whenever the total value of his individual or undivided legal and equitable financial interest therein is and at any time during the preceding twelve (12) months has been in excess of one thousand five hundred dollars ($1,500.00). B. The name of any such private business or corporation, firm or enterprise of which such elected public official or his relatives are or have been during the preceding twelve (12) months as officer, director, partner, attorney, agent, or employee, who, for services rendered during such preceding twelve (12J months or to be rendered in any such capacity, has received or has been promised compensation in excess of one thousand five hundred dollars ($1,500.00). C. Every office or directorship held by such elected public official or his spouse in any corporation, partnership, sole proprietorship or like business enterprise, which conducts its business activities within the boundaries of the Renton School District and which is subject to any regulation or control by the City of Renton, and from which such elected public official has received compensation or has been promised compensation during the preceding twelve (12) month period in excess of one thousand five hundred dollars ($1,500.00), or services; or any other thing of value in excess of said amount. D. A list containing a correct legal description of any and all real property located within the City limits of Renton in which any such elected public official has any interest whatsoever, as owner, purchaser, optionee, optionor, or any other proprietary interest, acquired during the preceding twelve (12} month period whenever such proprietary interest is 13 AGENDA ITEM #7. e) in excess of one thousand five hundred dollars ($1,500.00). This subsection shall not apply to the residence home of such official. The foregoing provisions shall not apply to policies of life insurance issued to such public official or his spouse or members of his family, accounts in any commercia) bank, savings and loan association or credit unions, or similar financial institutions subject to regulation by the State of Washington or any other governmental agency having jurisdiction thereover. Any suth elected public official who is disqualified by reason of such personal, private or similar conflict of interest in any matter as hereinabove defined, shall, after having made the required disclosure as herein set forth, remove himself from his customary seat during such debate and, by permission of the presiding officer, leave the Council chamber until such time as the matter at hand,from which such public official has been disqualified, has been disposed of in the regular course of business. 18, Indemnification of Citv. Developer shall 'rndemnify, defend and hold harmless Renton, its elected officials, officers, agents, employees and volunteers, from and against any and ali claims, losses or liability, or any portion of the same, including but not limited to reasonable attorneys' fees, le�al expenses and litigation costs, arising from injury or death to persons, including injuries, sickness, disease or death of Developer's own employees, agents and volunteers, or damage to property caused by Developer's negligent act or omission, except for those acts caused by or resulting from a negligent act or omission by Renton and its officers, agents,employees and volunteers. Should a court of competent jurisdiction determine that this agreement is subject to RCW 4.24.115, (Validity of agreement to indemnify against liability for negligence relative to construction, alteratio�, improvement, etc., of structure or improvement attached to real estate...) then, in the event of liability for damages arising out of bodily injury to persons or damages to property caused by or resulting from the concurrent negligence of Developer and Renton, its officers,officials, employees and volunteers, Developer's liability shall be only to the extent of Developer's negligence. It is further specifically and expressly understood that the indemnification provided in this Agreement constitute Developer's waiver of immunity under the Industrial Insurance Act, RCW Title S1, solely for the purposes of this indemnification. The Parties have mutually negotiated and agreed to this waiver. The provisions of this section shall survive the expiration or termination of this Agreement. Claims shall include, but not be limited to, assertions that use or transfer of software, book, document, report, film, tape, or sound reproduction, or material of any kind, delivered hereunder, constitutes an infringement of any copyright, patent, trademark,trade name and/or otherwise results in unfair trade p�actice. 14 AGENDA ITEM #7, e) Developer agrees not to perform any acts that include use or transfer of software, book, document, report, film, tape, or sound reproduction, or material of any kind, delivered hereunder, that constitutes an infringement of any copyright, patent, trademark, trade name and/or othenivise results in unfair trade practice. Developer agrees to indemnify the City for any harm resulting from unfair trade practices. The provisions in this section shall survive the termination and/or duration of the contract tern. Nothing contained within this provision shall affect and/or alter the application of any other provision contained within this Contract. The indemnification, protection, defense and hold harmless obligations contained herein shall survive the expiration, abandonment or termination of this Contract. 19.Joint A�reement Provisions. The amended "King County Housing and Community Development Contract — 2014" ("Joint Agreement") with the City contains several provisions that the City is responsible for monitoring or implementing should it utilize CDBG federal funds for projects, such as the project covered through this Agreement. As this Agreement meets the definition of "subcontract" as defined in the loint Agreement, certain applicable provisions must be included in this Agreement, and the Developer shall be responsible for monitoring and implementing them with oversight by the City. The provisions (verbatim from the Joint Agreement) follow in this Agreement (Sections 20 to 29), with the Joint Agreement section references noted to identify them. References to "Contractor" are intended to be the City. For purposes of this Agreement, the Developer would replace the City within some provisions. There may be p�ovisions included that are not applicable to the Developer. Developer should consult City and HCD where necessary. 20. Not-for-profit Corporations. (Section V.G of Joint Agreement) If the Contractor is a not-for-profit corporation, costs for which the Contractor requests reimbursement shall compiy with, unless otherwise provided in the Project/Program Exhibit(s), the policies, guidelines and requirements of 2 CFR Part 230, "Cost Principles for Non-Profit Organizations," and the sections of 24 CFR Part 84, Uniform Administrative Requirements for Grants and Agreements with Institutions of Higher Education, Hospitals, and Other Non-Profit Organizations, identified at 2 CFR Part 215 and 24 CFR§ 570.502 {b),Applicability of Uniform Administrative Requirements. 21. Pro�ram Income. (Section V.I of Joint Agreement) The Contractor shall report all CDBG and HOME Program Income, as defined in 24 CFR § 92.2, 92.503 and 570.504(c) and in the ICAs, generated under this Contract for the purposes specified herein or generated th�ough the project(s) funded under this Contract. Program income is to be reported to the County. Program income shall be returned to the County unless the County specifies that it may be retained by the Contractor. If the County authorizes the Contractor to retain the Program 15 AGENDA ITEM #7. e) Income to continue or benefit a project(s), the Contractor shall comply with all provisions of this Contract in expending the funds. This duty to repay the County shall not be diminished or extinguished by the prior termination of the Contract pursuant to Section II. Duration of Contract or Section XV.Termination. 22. Hold Harmless And Indemnification. (Section XVII of loint Agreement) A. Contractor is an Independent Contractor. In providing services under this Contract, the Contractor is an independent contractor and neither it, nor its officers, agents or employees, are employees of the County for any purpose. The Contractor shall be responsible for all federal and/or state tax, industrial insurance, and Social Security liability that may result from the performance of and compensation for these services and shall make na claim of career service or civil service rights which may accrue to a County employee under state or local law. Tfie County assumes no responsibility for the payment of any compensation, wages, benefits or taxes by, or on behalf of, the Contractor, its employees, and/or others by reason of this Contract. The Contractor shall protect, indemnify, and hold harmless the City, its officers, agents and employees from and against any and all claims, costs, and/or Iosses whatsoever occurrin�or resulting from: 1. The Contractor's failure to pay any such compensation, wages, benefits o� taxes; and/or 2. The supplying to the Contractor of work, services, materials or supplies by Contractor employees or other suppliers in connection with or support of the performance of this Contract. B. Contractor A�reement to Repav.The Contractor further agrees that it is financially • responsible for and shall repay the County all indicated amounts following an audit exception that occurs due to the negligence, intentional act, and/or failure,for any reason,to comply with the terms of this Contract by the Contractor, its officers, employees, agents, and/or representatives. This duty to repay the County shall not be diminished or extinguished by the prior termination of the Contract pursuant to the Duration of Contract or the Termination Sections. ' C. Contractor Indemnification of Countv. 1. The Contractor shall protect, defend, indemnify, and hold harmless the County, its officers, employees and agents, from and against any and all cost5, claims, judgments and/or awards of damages, arising out of, or in any way resulting from, the negligent acts or omissions of the Contractor, its officers, employees, contrattors, subcontractors and/or agents, in its performance and/or non-performance of its obligations under this Contract. The Contractar agrees that its obligations under this subparagraph extend to any claim, demand, and/or cause of action brought by, or on behalf of, any of its employees 16 AGENDA 1TEM #7. e) or agents. For this purpose, the Contractor, by mutual negotiation, hereby waives, as respects to the County only, any immunity that would otherwise be available against such claims under the industrial insurance provisions of RCW, Title 51. In the event the County incurs any judgment, award and/or cost arising there from including attorneys' fees to enforce the provisions of this article, all such fees, expenses, and costs shall be recoverable from the Contractor. To the extent that a Contractor subcontractor fails to satisfy its obligation to defend and indemnify King County, as detailed in Section XVII. Ho1d Harmless and ' Indemnification, the Contractor shall protect, defend, indemnify and hold harmless King County, its officers, employees, and agents from any and all costs, claims, judgments, and/or awards or damages arising out of, or in any way resulting from the negligent act or omissions of the Contractor's contractor/subcontractor, its officers, employees, and/or agents in connection � with in or support of this Contract. 2. Claims shall include, but not be limited to, assertions that use or transfer of � software, book, document, report, film, tape, or sound reproduction, or material of any kind, delivered hereunder, constitutes an infringement of any copyright, patent, trademark, trade name and/or otherwise results in unfair trade practice. 3. The Contractor agrees not to perform any acts that include use or transfer of software, book, document, report, film, tape, or sound reproduction, or material of any kind, delivered hereunder, that constitutes an infringement of any copyright, patent, trademark, trade name and/or otherwise results in unfair trade practice. The Contractor agrees to indemnify the County for any harm resulting from unfair trade practices. 4. The provisions in this section shall survive the termination and/or duration of the contract tern. 5. Nothing contained within this provision shall affect and/or alter the application of any other provision contained within this Contract. 6. The indemnification, protection, defense and hold harmless obligations contained herein shall survive the expiration, abandonment or termination of this Contract. 23. Insurance Reauirements-General. (Section XVIII of Joint Agreement) A. Insurance Reauired. By the date of execution of this Contract,the Contractor shall procure and maintain for the duration of this Contract, insurance against claims for injuries to persons or damages to property which may arise from, or in connection with, the performance of work hereunder by the Contractor, its agents, representatives, employees and/or contracto�/subcontractors. The Contractor or contractor/subcontractor shall pay the costs of such insurance. The Contractor shall furnish separate certificates of insurance and policy endorsements from each contractor/subcontractor as evidence of compliance with the insurance requirements of this Cont�act. 17 AGENDA ITEM #7. e) The Contractor is responsible for ensuring compliance with all of the insurance requirements stated herein. Failure by the Contractor, its agents, employees, officers, contractor/subcontractors, providers and/or provide� subcontractors to comply with the insurance requirements stated herein shall constitute a material breach of this Contract. Each insurance policy shall be written on an "occurrence" form; except that insurance on a "claims made" form may be acceptable with prior County approval. If coverage is approved and purchased on a "claims made" basis, the Contracto� warrants continuation of coverage, either through policy renewals or the purchase of an extended discovery period, if such extended coverage is available, for not less than three years from the date of Contract termination, and/or conversion from a "claims made"form to an "occurrence"coverage form. Nothing contained within these insurance requirements shall be deemed to limit the scope, application and/or limits of the coverage afforded by said policies, which coverage will apply to each insured to the full extent provided by the terms and conditions of the policy(s). Nothing contained in this provision shall affect and/or alter the application of any other provision contained within this Contract. B. Risk Assessment bv Contractor. By requiring such minimum insurance,the County shall not be deemed or construed to have assessed the risks that may be applicable to the Contractor under this Contract, nor shall such minimum limits be construed to limit the limits available under any insu�ance coverage obtained by the Contractor. The Contractor shall assess its own risks and, if it deems appropriate and/or prudent, maintain greater limits andjor broader coverage. C. Minimum Scoqe of Insurance. Coverage shall be at least as broad as the following: 1. General Liabilitv. Insurance Services Office form number (CG 00 01) covering COMMERCIAL GENERAL LIABILITY. 2. Professional Liabilitv, Errors and Omissions Covera�e. In the event that services delivered pursuant to this Contract either directly or indirectly involve or require professional services, Professional Liability, Errors and Omissions coverage shall be provided. "Professional Services", for the purpose of this Contract section, shall mean any services provided by a licensed professional or those services that require a professional standard of care. 3. Automobile Liabilitv. Insurance Services Office form number (CA 00 01) I covering BUSINESS AUTO COVERAGE, symbol 1 "any auto"; or the appropriate coverage provided by symbols 2, 7, 8, or 9. 4. Workers' Comqensation. Workers' Compensation coverage, as required by the Industrial Insurance Act of the State of Washington, as well as any similar coverage required for this work by applicable federal or"Other States"state law. 18 AGENDA ITEM #7, e) 5. Stop Gap/Emplovers Liabilitv, Coverage shall be at least as broad as the protection provided by the Workers' Compensation policy Part 2 (Employers Liability) or, in states with monopolistic state funds, the protection provided by the "Stop Gap" endorsement to the general liability policy. 6. Proqertv Insurance. Insurance Services Office form number (CP 00 10) covering BUILDING AND PERSONAL PROPERTY COVERAGE and Insurance Services Office form number (CP 10 30) CAUSES OF LOSS- SPECIAL FORM or project appropriate equivalent. 7. National Flood Insurance. The use of CDBG and HOME funds for acquisition or construction purposes in identified special flood hazard areas shall be subject to Contractor mandatory purchase of flood insurance as required by Section 102(a) of the Flood Disaster Protection Act of 1973 (Pub L. 93-237). 8. Builder's Risk/Installation Floater. The Contractor shall procure and maintain during the life of the Contract, or until acceptance of the project by King County, whichever is longer, "All Risk" Builders Risk lnsurance at least as broad as I50 form number CP0020 (Builders Risk Coverage Form) with ISO form number CP0030 (Causes of Loss-Special Form) including coverage for collapse,theft and property in transit. The coverage shall insure for direct physical loss to property of the entire construction project, for one hundred percent of the replacement value thereof. The policy shall be endorsed to cover the interests, as they may appear, of King County, Owner, Contractor and subcontractors of all tiers with King County listed as a loss payee. D. Minimum Limits of Insurance-Capital Proiects. The Contractor Developer shall maintain limits no less than the following: 1. Comme�cial General Liabilitv: S1,OOO.00Q combined single limit per occurrence by bodily injury, personal injury, and property damage; and for those policies with aggregate limits, a $2,000,000 aggregate limit. 2. Professional Liabilitv, Errors, and Omissions: $1,000,000, Per Claim and in the Aggregate. 3. Automobile Liabilitv: $1.000,000 combined single limit per accident for bodily injury and property damage if the use of motor vehicles is contemplated. 4. Workers' Comoensation: Statutory requirements of the state of residency. S. Stop Gap/Emplovers Liabi{itv: $1.000,000. 19 AGENDA ITEM #7. e) 6. Propertv Insurance: One hundred percent replacement value of funded structure. E. Minimum Limits of Insurance-Buildin� Construction Period. Prior to commencement of building construction and until construction is complete and approved by the Contractor,the Contractor shall cause the construction contractor and related professionals to procure and maintain Insurance against claims for injuries to persons or damages to property which may arise from, or in connection with the activities related to this Contract. The Contractor and County shafl be named as additional insureds on liability policies except Workers Compensation and Professional Liability, and as Named Insureds on Builders Risk policies. The cost of such insurance shall be paid by the Contractor and/or any of the Contractor's contractors/subcontractors. The Contractor shall maintain limits no less than the following: 1. Commercial General Liabilitv: $1,000,000 combined single limit per occurrence for bodily injury, personal injury and property damage and $2,000,000 in the aggregate. 2. Automobile Liabilitv: $1,000,000 combined single limit per accident for bodily injury and property damage. 3. Professional Liabilitv. E�rors & Omissions: 1000 000 Per Claim and in the Aggregate. 4. Builder's Risk Insurance: One hundred percent replacement cost value. 5. Workers Compensation: Statutory requirements of the State of residency. 6. Stop Gap or Emplovers Liability Covera�e: $1,000,000. F. Minimum Limits of Insurance-Services A�reements: The Contractor shall maintain limits no less than the following: 1. Commercial General Liabilitv: $1,000,000 combined single limit per occurrence for bodily injury, personal injury and property damage and $2,000,000 in the aggregate. 2. Automobile Liabilitv: 51,000,000 combined single limit per accident for bodily injury and property damage. 3. Professional Liability, Errors & Omissions: $1,000.000, Per Claim and in the Aggregate. 4. Workers Compensation: Statutory requirements of the State of Residency. 5. Stop Gap or Emplovers Liabilitv Covera�e: $1,000,000. 20 � AGENDA 1TEM #7, e) Paragraphs G, H, i, J, K and L below apply to Capital Projects, Construction Projects and Services Contracts. G. Deductibles and Self-Insured Retentions. Any deductibles or self-insured retentions must be declared to, and approved by, the County. The deductible and/or self- insured �etention of the policies shall not apply to the Contractor's liability to the County and shall be the sole responsibility of the Contractor. H. Other Insurance Provisions. The insurance policies required in this Contract are to contain, or be endorsed to contain,the following provisions: 1. All Liabilitv Policies exceat Professional and Workers Compensation. a. The County, its officers, officials, employees, and agents are to be covered as additional insureds as �espects liability arising out of activities performed by or on behalf of the Contractor in connection with this Contract. Such coverage shall include Products- Completed Operations. b. To the extent of the Contractor's negligence, the Contractor's insurance coverage shall be primary insurance as respects the County, its officers, officials, employees, and agents. Any insurance and/or self-insurance maintained by the County, its officers, officials, employees, or agents shall not contribute with the Contractor's insurance or benefit the Contractor in any way. c. The Contractor's insurance shall apply separately to each insured against whom claim is made and/or lawsuit is brought, except with respect to the limits of the insurer's liability. 2. Propertv Covera�e Policies. a. The County shall be added to all Property Coverage Policies as a loss payee as its interests may appear. b. The County shall be added as a Named Insured as its interests may appear to all Builders Risk policies. 3. All Policies. Coverage shall not be suspended, voided, canceled, reduced in coverage or in limits, except by the reduction of the applicable aggregate limit by claims paid, until after 30 days prior written notice has been given to the County. I. Acceptabilitv of Insurers. Unless otherwise approved by the County, insurance is to be placed with insurers with a Bests' rating of no less than A: VIII, or, if not rated with AM Bests, with minimum surpluses the equivalent of AM Bests' surplus size VIII. 21 AGENDA ITEM #7, e) Professional Liability, Errors, and Omissions insurance may be placed with insurers with AM Bests' rating of B+VII. Any exception must be approved by the County. If, at any time, the foregoing policies shall fail to meet the above requi�ements, the Contractor shall, upon notice to that effect from the County, promptly obtain a new policy, and shall submit the same to the County, with appropriate certificates and endorsements, for approval. 1. Verification of Covera�e. The Contractor shall furnish the County with certificates of insurance and endorsements required by this Contract. The certificates and endorsements for each insurance policy are to be signed by a person authorized by that insurer to bind coverage on its behalf. The certificates and endorsements for each insurance policy are to be on forms approved by the County prior to the commencement of activities associated with the Contract The County reserves the right to require complete, certified copies of all required insurance policies at any time. If the Agency/Contracting Party is a Municipal Corporation or an agency of the State of Washington and is a member of the Washington Cities Insurance Authority (WCIA) or any other self-insurance risk pool, a written acknowledgement/certification of current membership will be attached to the Agreement as Exhibit I and satisfies the insurance requirements specified above. K. Subcontractors. The Contractor shall include all subcontractors as insureds under its policies or shall require separate certificates of insurance and policy endorsements from each subcontractor. If the Contractor is relying on the insurance coverages provided by subcontractors as evidence of compliance with the insurance requirements of this Contract, then such requirements and documentation shall be subject to all of the requirements stated herein. L. Municipal or State Contractor Provisions. If the Contractor is a municipal ' corporation or a Contractor of the state of Washington and is self-Insured for any of the above insurance re uirements a certification of self-insurance shall be rovided for the self-insured � , P requirements and attached hereto and be incorporated by reference and shall constitute compliance with this Section. If the certificate of self-insurance does not cover all mandatory requirements, the Contractor shall provide separate certificates and endorsements that document coverage. 24. Nondiscrimination and Equal Emplovment Opportunity. (5ection XIX of loint Agreement) A. EQual Benefits ta Emplovees with Domestic Partners To the extent prohibited by KCC Chapter 12.19, King County's "Equal Benefits" (EB) ordinance, and related administrative rules adopted by the County Executive, as a condition of 22 AGENDA ITEM #7. e) � a competitive award of a contract valued at$25,000 or more, non-public Contractors agree not ' to discriminate in the provision of employee benefits between an employees with spouses, employees with domestic partners or employees who reside with legally domiciled members of households during the performance of this Contract. Failure to comply with this provision shall be considered a material breach of this Contract, and may subject the Contractor to administrative sanctions and remedies for breach. When a competitively awarded contract is valued at $25,000 or mo�e, the Contractor shall complete a Worksheet and Declaration form for County review and acceptance prior to Contract execution. The EB Compliance forms, KCC Chapter 12.19, and related administrative rules are incorporated herein by reference. They are also available online at: http://www.kin�countV•�ov/operations/procurement/Servites/Equal Benefits.aspx 8. Nondiscrimination in Emplovment Provision of Services To the extent prohibited by KCC Chapter 12.16 or 12.17, during the performance of this Contract, neither the Contractor nor any party subcontracting under the authority of this Contract shall discriminate or tolerate harassment on the basis of sex, race, color, marital status, national origin, religious affiliation, disability, sexual orientation, gender identity or expression or age except by minimum age and retirement provisions, unless based upon a bona fide occupational qualification. C. Nondiscrimination in Subcontractin�Practices To the extent prohibited by KCC Chapter 12.16 ar 12.17, during the term of this Contract, the Contractor shall not create barriers to open and fair opportunities to participate in County contracts or to obtain or compete for contracts and subcontracts as sources of supplies, equipment, construction and services. In considering offers from and doing business with subcontractors and suppliers, the Contractor shall not discriminate against any person because of their sex, race, color, marital status, national arigin, religious affiliation, disability, sexual orientation, gender identity or expre5sion or age except by minimum age and retirement provisions, unless based upon a bona fide occupational quatification. D. Compliance with Laws and ReQulations The Contractor shall comply fully with all applicable federal, state and local laws, ordinances, Presidential Executive Orders and regulations that prohibit discrimination, to the extent applicable. These laws include, but are not limited to, RCW Chapter 49.60, Titles VI and VII of the Civil Rights Act of 1964, the American with Disabilities Act, and the Restoration Act of 1987. In addition, King County Code chapters 12.16, 12.17 and 12.18 are incorporated herein . by reference and the requirements in these code chapters shall specifically apply to this contract, to the full extent applicable. The Contractor shall further comply fully with any equal 23 AGENDA 1TEM #7, e) opportunity requirements set forth in any federal regulations, statues or rules included or referenced in the contract documents. E. Small Contractors and Suppliers and Minoritv and Women Business Enterprises Opportunities King County encourages the Contractor to utilize small businesses, including Small Contractors and Suppliers (SCS), as defined below, and minority-owned and women-owned business enterprises certified by the Washington State Office of Minority and Women's Business Enterprises (OMWBE) in County contracts. The County encourages the Contractor to use the following voluntary practices to promote open competitive opportunities for small businesses, including SCS firms and minority-owned and women-owned business enterprises. 1. Inquire about King County's Contracting Opportunities Program. King County has established a Contracting Opportunities Program to maximize the participation of SCS in the award of King Caunty contracts. The Program is open to all SCS firms certified by King County Business Development and Contract Compliance (BDCC). As determined by BDCC and identified in the solicitation documents issued by the County, the Program or for which the Contractor elected not to participate in the Program during the salicitation stage, the Contractor is still encouraged to inquire voluntarily about available firms. Program materials, including application forms and a directory of certified SCS firms, are available at the folfowing website address: http://www.kingcounty.gov/bdcc The term "Small Contractors and Suppliers" (SCS) means that a business and the person or persons who own and control it are in a financial condition which puts the business at a substantial disadvantage in attempting to compete for public cont�acts. The relevant financial condition for eligibility under the Program is set at fifty percent of the Federal Small Business Administration (58A) small business size standards using the North American Industry Classification System and Owners' Personal Net Worth less than $750,000 dollars. 2. Contact OMWBE to obtain a list of certified minority-owned and women- owned business enterprises by visiting their website at http://www.omwbe.wa.�ov/or by Toll � Free telephone (866)208-1064. 3. Use the services available community organizations, consultant groups, local assistance offices, the County, and other organizations that provide assistance in the recruitment and placement of small businesses, including SCS fi�ms and minority-owned and women-owned business enterprises. F. EQual Emplovment Opportunitv Efforts The Contractor shall undertake equal employment opportunity efforts to ensure that applicants and employees are treated, without regard to their sex, race, color, marital status, national origin, religious affiliation, disability, sexual orientation, gender identity or 24 AGENDA ITEM #7, e) expression or age.The Contractor's equal employment opportunity efforts shall include but not �� be limited to, the following; employment, upgrading, demotion or transfer; recruitment or recruitment advertising; layoff or termination; rates of pay or other forms of compensation; and selection for training, including apprentic�ships. The Contractor agrees to post in conspicuous places available to employees and applicants for employment notices setting forth this nondiscrimination clause. In accordance with KCC 12.16.010.J. "equal employment opportunity efforts" shall mean active efforts to ensure equal opportunity in employment that is free from all forms of discrimination. G. Compliance with Section 504 of the Rehabilitation Act of 1973 as amended (Section 504) and the American Disabilities Act of 1990 as amended (ADA1 Pursuant to Title II of the ADA and Section 504 the County must not discriminate against people with disabilities in providing services, programs or activities even if those services, programs or activities are carried out by contractors. The Contractor agrees that it shall provide all programs, services and activities to County employees or membe�s of the public under this Contract in the same manner as King County is obligated to under Title II of the ADA, and Section 504 and shall not deny participation or the benefits of such services, programs or activities to people with disabilities on the basis of such disability. Failure to comply with this section shall be a material breach of, and grounds for, the immediate termination of this Contract. 1. The Contractor agrees to provide to persons with disabilities access to prog�ams, activities and services provided under the Contract or agreement, as required by the disability access laws as defined by KCC 12.16; and 2. The Contractor shall not discriminate against persons with disabilities in providing the work under the Contract. In any subcontracts for the programs, activities and services under their contract or agreement, the Contractor sha�l include the requirement that the subcontractor provide to persons with disabilities access to programs, activities and services provided under the contract or agreement as required by the disability access laws as defined by KCC 12.16, that the subcontractor shall not discriminate against persons with disabilities in providing the work under the Contract and that the subcontractor shall provide that the County is a third party beneficiary to that required provision. H. Sanctions for Violations Any violation of the mandatory requirements of the provisions of this section shall be a material breach of contract for with the Contractor may be subject to damages, withholding payment and any other sanctions provided for by the Contract and by applicable law. 25 AGENDA ITEM #7. e) I. Fair Housin� Protections The Contractor shall comply with the federal Fair Housing Act, Public Law 90-284 (42 USC 3601 et seq.). The Contractor shall take necessary and appropriate actions to prevent discrimination in any housing-related project under this Contract, which includes rental housing projects and/or projects that include residential real estate-related transactions, as required by the Federal Fair Housing Act as amended (42 USC 3601j and the Washington State Law Against Discrimination (RCW Chapter 49.60). Residential real estate-related transactions include the making or purchasing of loans or the provision of financial assistance for the purchasing, constructing, improving, repairing or maintaining of a dwelling. Rental housing includes any dwelling that is intended for occupancy as a residence for one or more families by lease, sublease or by grant for a consideration of the right to occupy Premises not owned by the occupant. In addition, except for projects located in incorporated jurisdictions, the Contractor shall comply with the applicable provisions of the King County Open Housing Ordinance, codified at Chapter 12.20 of the King County Code, which prohibits practices of housing discrimination against any person on the basis of age, ancestry, color, disability, marital status, national origin, parental status, possession of Section 8 housing assistance, race, religion, retaliation, sex, and sexual orientation. Projects using federal funds shall also comply with subsections 1, K, L, and M below. J.Additional Federal Nondiscrimination Requirements The Contractor shall comply with all applicable federal laws prohibiting discrimination, including the following: 1. Presidential Executive Order 11063 as amended and implementing regulations at 24 CFR Part 107; 2. Sectian 109 of the HCD Act of 1974, as amended (42 USC 5301); 3. The Americans with Disabilities Act (42 USC 1213; 47 USC 155, 201, 218 and 225); and 4. Section 504 of the Rehabilitation Act of 1973 and regulations at 24 CFR Part 8. K. Prohibited Discriminatorv Actions 1. Except where expressly authorized by federal law, the Contractor may not, under any program or activity to which this Contract applies, directly or through contractual or other arrangements, discriminate on the grounds of age, color, creed, familial status, marital status, nationality, religion, race, sex, sexual orientation, or the presence of any physical, 26 AGENDA 1TEM #7. e) mental or sensory disability. Discriminatory actions may include but are not limited to the following: a. Denying any person access to facilities, services, financial aid or other benefits provided under the program or activity; b. Denying any person services to limited English proficiency; c. Providing any person with facilities, services, financial air or other benefits, which are different, or are provided in a different form from that provided to others under the program or activity; d. Subjecting any person to segregated or separate treatment in any facility or in any matter or process related to receipt of any service or benefit under the program or activity; e. Restricting in any way access to or in the enjoyment of any advantage or privilege enjoyed by others in connection with facilities, services, finantial air or other benefits under the program or activity; f. Treating any person differently from others in determining whether the person satisfies any admission, enrollment, eligibility, membership, or other requirement or condition which individuals must meet in order to be provided any facilities, services or other benefit provided under the program or activity; g. Denying any person any opportunity to participate in a program or activity as an employee; and h. Failing to design and construct facilities for fist occupancy after January 26, 1993, that are readily accessible to and usable by individuafs with disabilities and failure to remove architectural and communication barriers that are structural in nature in existing facilities, where such removal can be accornplished without difficulty and expense. 2. The Contracto�shall not utilize triteria or methods of administration that have the effect of subjecting individuals to discrimination on the basis of age, color, familial status, nationatity, race, religion, sex, or sexual orientation; or mental, physical, or sensory disability; or have the effect of defeating of substantially impairing accomplishment of the objectives of the program or activity with respect to individuals of a particular age, color, familial status, nationality, race, religion, sex, or sexual orientation; or the presence of any mental, physical, or sensory disability. 3. The Contractor, in determining the site or location of housing of facilities provided in whole or in part with funds under this contract, may not make selections of such 27 � AGENDA 1TEM #7. e) site or location which have the effect of excluding individuals, denying them benefits, or subjecting them to discrimination on the grounds of age, sex, marital status, familial status, religion, race, creed, color, sexual orientation, nationality, or the presence of any sensory, mental or physical disability; or which have the purpose or effect of defeating or substantially impairing the accomplishment of the objectives of the HCD Act or the HUD Regulations. L. Emplovment Proiections In all solicitations under this Contract, the Contractor shall state that all qualified applicants will be considered for employment. The words "equal opportunity employer: in advertisements shall constitute compliance with this section. M. No Conflict with Federal Repuirements As indicated by HUD Notice CPD 04-10, a faith-based organization's exemption from the federal prohibition on employment discrimination on the basis of religion, set forth in 42 USC 2000e-1(a), is not forfeited when the organization receives HUD funding. Faith-based organizations, like any other entity participating in a HUD-funded program, must, however, comply with all the statutory requirements of that particular HUQ-funded program. Both the CDBG and HOME Programs contain statutory provisions imposing non-discrimination requirements on all subrecipients, subgrantees or contractors. Religious organization that believe that certain non-discrimination statutory requirements are substantially burdensome may be entitled to protection unde� the Religious Freedom Restoration Act [42 USC 4000bb- 2(1)] which applies to all federal law and its implementation. Subrecipients, subgrantees, or contractors should be aware that anti-discrimination provisions of Section 109 of the Housing and Community Development Act of 1974, Section 2$2 of the HOME Investment Partnership Act may pose questions of conformance with Title VII of the Civil Rights Act of 1964 and future court rulings could define more specifically the application of these laws to faith-based organizations. In the event that a provision of this Contract is deemed to be in actual conflict with federal law,the conflicting provision in this Contract shall not apply. 25. Subcontracts and Purchases. (Section XX of Joint Agreement) A. Subcontract Defined. "Subcontract" shall mean any agreement between the Contractor and a subcontractor or between subcontractors that is based on this Contract, provided that the term "subcontract" does not include the purchase of(1) support services not related to the subject matter of this Contract,or(2)supplies. B. Writin� ReQuired.Any work or services assigned or subcontracted hereunder shall be in writing and must be approved by the County as provided in Section XIV. Assignment.The Contractor agrees that it is as fully responsible to the County for the acts and omissions of its subcontractors and their employees and agents, as it is for the acts and omissions of its own employees and agents, as specified in Section XVII. Hold Harmless and Indemnification Subsection C. Z8 AGENDA ITEM #7, e) C. Reauired Contract Terms.The Contractor shail include the applicable provisions of Sections XVII1. Insurance Requirements - General, XIX. Nondiscrimination and Equal Employment Opportunity, and XX. Subcontracts and Purchases in every subcontract or purchase order for goods or services which are paid for in whole or in part with funds provided under this Contract.The Contractor agrees to include the following language verbatim in every subcontract, provider agreement, or purchase agreement for services, which relate to the subject matter of this Contract: "Subcontractor shall protect, defend, indemnify, and hold harmless King County, its officers, employees, and agents from any and all costs, claims, judgments, and/or awards of damages arising out of, or in any way resulting from the negligent act or omissions of subcontractor, its office�s, employee, and/or agents in connection with or in support of this Contract. Subcontractor expressly agrees and understands that King County is a third party beneficiary to this Contract and shall have the right to bring an action against subcontractor to enforce the provisions of this paragraph." Projects using federal funds must also comply with subsections D, E, G and H. D. Debarred Contractors. Developer certifies that neither the Contractor nor any person or entity with a controlling interest in the Contractor is under suspension, debarment, voluntary exclusion or determination of ineligibility from participation in federal assistance programs under Presidential Executive Order 12549 or 12689, "Debarment and Suspension". The Contractor further certifies that neither the Contractor nor any person or entity with a controlling interest in the Contractor has any proceeding pending to suspend, debar, extlude or determine them ineligible from participation in federal assistance programs under Presidential Executive Order 12549 or 12689. The Contractor shall not make any award at any time to any contractor, which is debarred, suspe�ded or excluded, from participation in federal assistance programs under Presidential Executive Order 12549, "Debarment and Suspension". The Contractor shall ensure that all subcontractors receiving any federal funds pursuant to this agreement have not been disbarred or suspended from federal contract participation. This may be done by checking the System for Award Management at https://www.sam.gov, which lists all suspended and debarred entities. E. Subcontractin� Reauirements. A Contractor which receives federal funds under this Contract also shall include the following sections in every subcontract or purchase order for goods and services which are paid in whole or In part with funds provided under this Contract: Section V. Compensation and Method of Payment Subsections F. or G. and I., Sections XVII. Hold Harmless and Indemnification Subsection B., XVIII. Insurance Requirements - General, Subsection K, XIX. Nondiscrimination and Equal Employment Opportunity and XXI1. No Conflict of Interest Subsection B. and, if the subcontract is for construction, Sections XXXIV. Labor Standards and XXXV. Employment Opportunities. 29 AGENDA /TEM #7. e) G. Federal Bid Guarantee and Bond Requirements. If the Contractor is subcontracting construction work under this Contract, the subcontract shall require for any construction contracts exceeding$100,000: 1. A bid guarantee from each bidder equivalent to five percent of the bid price; 2. A performance bond from the contractor for one hundred percent of the contract price; and 3. A payment bond from the contractor for one hundred percent of the contract � price.The Contractor may, at its discretion, require any of these requirements on construction contracts of less than $100,000.The specific requirements for bid guarantees and bonds are at 24 CFR § 84.48(c) for nonprofit corporations and 24 CFR § 85.36(h) for municipal corporations and agencies of the State of Washington. 4. (This Section 4 is not included in the Joint Agreement, but added to clarify the applicability of the Federal Bid Guarantee and Bond Requirements for this project.) For purposes of this Agreement, the Developer shall obtain quates (not bids), and is permitted to base the performance and payment bond amounts on the $200,000 value of the loan of CDBG funds by the City. The latter is based upon the requirement that the Developer provide a Personal Guarantee to ensure repayment of the loan in the case of default or in accordance with any other applicable terms of the Agreement or the Personal Guarantee document. H. Failure to Complv is Default. Failure by the Contractor to require compliance with the above terms and conditions in subcontracts shall constitute a breach of this Contract. 26. Nondiscrimination in Subcontractin�Practices. (Section XXI of Joint Agreement) Projects using federals funds shall comply with the following requirements: A. Federal Requirements. In soliciting subcontractors to supply goods or services for the activities under this Contract,the Contractor shall comply with 24 CFR 85.36(e) as amended if the Contractor is a municipal corporation or an Agency of the State of Washington, and 24 CFR 84.44(b)(1)-(5) if the Contractor is a nonprofit corporation. In accordance with these regulations, the Contractor shall take all necessary affirmative steps to assure M/WBES and labor surplus area firms are used as subcontractors when possible. Affirmative steps shall include those actions specified above in this sectio� of the Contract. , B. Non-discrimination in Federallv Assisted Construction. The Contractor shall also require compliance with Presidential Executive Order 11246 as amended and 41 CFR Part 60 regarding nondiscrimination in bid conditions for construction projects over$10,000. 27. No Conflict of Interest. (Section XXII.B of Joint Agreement) 30 AGENDA ITEM #7. e) The Contractor shall abide by the provision of 24 CFR 84.42 and 570.611, if applicable, and by the following: 1. The Contractor shall maintain a written code of standards of conduct that shall govern the performance of its officer, employees or agents engaged in the award and administration of contracts supported by funds under this Contract. 2. No employee, director, officer or agent of the Contractor shall participate in the selection of in the award, or administration of a contract supported by funds under this contract if a conflict of interest, real or apparent,would be involved. By way of example, such a conflict would arise if such a person, or his or her employer, immediate family member or partne�has financial or other interest in the entity selected; and 3. No covered persons who exercise or have exercised any functions or responsibilities with respect to any Contract-assisted activities, or who are in a position to participate in a decision-making process to gain inside information with regard to such activities, may have or obtain a financial interest in any contract, subcontract or agreement regarding a Contract-assisted activity, either for themselves or those with whom they have business or immediate family ties, during their tenure and for one year thereafter. For purposes of this paragraph, "covered persons" includes any person who is an employee, agent, consultant, officer, or director of the Contractor or the County. 28. Labor Standards. (Section XXXIV of loint Agreement) Agencies receiving a CDBG and/or HOME award shall comply with Subsections A and C below. A. Davis-Bacon Reauirements For projects assisted with CDBG funds, this Subsection shall not apply to construction or rehabilitation of residential property consisting of fewer than eight units. For projects assisted with HOME funds, this Subsection shall not apply to rehabilitation of rental property consisting of fewer than twelve units. All construction work funded in whole or in part under this Contract must be performed in accordance with the Davis-Bacon Act, as amended (40 USC sections 276(a)- 276(a)(5)), the Copeland "Anti-Kickback" Act, as amended (40 USC 276 (c)) and the Contract Work Hours and Safety Standards Act (40 USC 327 et seq.) as further prescribed at 29 CFR Parts 1, 3, 5, 6 and 7. The Contractor will follow all Davis-Bacon documentation requirements and regularly submit required dflcumentation to the County shall maintain records sufficient to evidence compliance with this section and shall make such records available for the County's review upon request. 31 AGENDA ITEM #7, e) A copy of the cur�ent Davis-Bacon wages must be included in all construction bid � specifications, contracts, and/or subcontracts over two thousand dollars ($2,000), except where the project includes a copy of applicable state prevailing wages that are higher than current Davis-Bacon wages. Agencies receiving an award of local funds (HOF, RAHP, HB 2331, Veterans and , Human Services Levy or MIDD funds) or federal funds that do not trigger Davis-Bacon shall comply with Subsections B and C below: B. Prevailin�Wa�es Projects that are not subject to Section A above, shall pay State residential prevailing I wage rates as a minimurn. Projects that are subject to State prevailing wage requirements of chapter 39.12 RCW shall pay prevailing wages at or above the applicable State classification rate. The Contractor shall provide annual certification to the County of its compliance , with the requirements of this section. The contractor shall additionally maintain records ' sufficient to evidence compliance with this section and shall make such records available for the i County's review upon request. C. Use of Volunteers ', The Contractor shall obtain the written approval of the County prior to allowing any I volunteers to perform construction work on a project assisted under this Contract. I D. Labor Compliance (From loint Agreeme�t Amendment Section II.F.3.d.i) '� HCD will present each prime contractor and their accounting and/or payroll staff '� with detailed Information regarding compliance with CDBG Program Regulations including, but I, not limited to, federal labor standards files (Davis-Bacon and Related Acts documentation) and I, Section 3 regulations. Pertinent federal forms will be distributed at a preconstruction meeting �i prior to a Notice to Proceed being issued. 29. Employment Opportunities on Assisted Construction Proiects. (Section XXXV of Joint Agreement) A. Section 3 Requirements. The work to be performed under this Contract may be subject to the requirements of Section 3 of the Housing and Urban Development Act of 1968, as ' amended, 12 USC 1701u (Section 3). The purpose of Section 3 is to ensure that employment and other economic opportunities generated by HUD assistance or HUD-assisted projects covered by Section 3, shall, to the greatest extend feasible, be directed to low and very low- income persons, particularly persons who are recipients of HUD assistance for housing. 32 AGENDA ITEM #7, e) B. Section 3 Criteria for Capital Projects. As set forth in the HCD Plan, Section 3 regulations found at 24 CFR § 135.38 apply to all Project/Program Exhibits which meet all three of the following criteria: 1. The Project/Program Exhibit must include $200,000 or mo�e in total HUD funds from one or more program years; 2. The Project/Program Exhibit must include construction or rehabilitation work as a task that will be funded in full or in part with the HUD funds; and 3. The construction or rehabilitation work that wili be funded must have a contract value,which exceeds $100,000. Actual contract value of construction or rehabilitation work is the determining factor, not a cost estimate. Additionally, Section 3 regulations are applicab{e to Project/Program Exhibit(s), which do not initially meet the above criteria but which are amended so as to add funds or change the activities for which the funds are used. Section 3 regulations do not apply to projects that include $200�000 or more in HUD funds when the funds are being used for acquisition and/or professional services only and not for construction or rehabilitation work. 30. Other General Reauirements. A. The proposed projed is an eligible activity (Economic Development—Commercial Rehabilitation) and meets the CDBG program's national objective af benefitting low- and moderate-income persons on an area basis. The combined Downtown and South Renton subareas (as designated in the City Center Community Plan) are located within three (3) census tract block groups (Nos. 53 033 025300-3, -4 and -5) where at least fifty-one percent (51%) of the �esidenis are considered to meet low- and moderate-income levels as defined by HUD guidelines. B. All work must be done in accordance with industry standards, all applicable local, state and federal codes, ordinances, permit and inspection requirements, and rules and regulations for the CDBG program. C. Any renovation work undertaken prior to the City's final written authorization to begin construction is not eligible for assistance under this loan agreement. D, All rehabilitation work undertaken in conjunction with the Program and this Agreement which exceeds approved financial assistance shall be borne by the Developer. E. All construction management shall be the responsibility of the Developer. All work undertaken is subject to the Davis-Bacon Act. 33 AGENDA ITEM #7, e) F. Uniform Relocation Act. Developer agrees to comply with all applicable provisions of the Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970, as amended, 42 U.S.C. § 4601 et seq. (the "URA"). Developer is responsible for all acquisition and relocation costs when displacement of tenants occurs as a result of the project, in accordance with the URA. G. Contacts. For purposes of submitting notices or other written correspondence between parties, the following will serve as primary contacts: DEVELOPER: Dave Brethauer Cortona, LLC 10232 63`d Avenue South Seattle,WA 98178 CITY: John W. Collum Community& Economic Development Department 1055 South Grady Way Renton, WA 98Q57 31. Propertv Maintenance. For the duration of this Agreement,the Developer shall: A. Maintain all improvements in compliance with all requirements unde�the Renton Municipal Code (RMC�. B. Be responsible for assuring the property is maintained in good repair and free from accumulation of debris, graffiti or waste materials; and take all other actions necessary to maintain and ensure the neat and clean appearance of the surroundin� streetscape area. During rehabilitation of the property, the Developer shall maintain a wetl-kept construction site. C. Provide the City, its agents and/or its representative the right to inspect the Property at any reasonable hour of the day to determine Developer's compliance with these requirements. 32. Miscellaneous Provisions. A. Independent Contractor. The Developer shall perform all obligations under this Agreement as an independent contractor; neither it nor its employees shall be considered employees, partners or agents of the City, nor shall it or its employees be entitled to any benefits, insurance, pension, or workers' compensation as an employee of the City. 34 AGENDA 1TEM #7, e) B. Assi�nment. The Developer shail not assign or transfer any interest in this Agreement without obtaining the prior written approva) of the City. C. Subcontracts to the A�reement. The Developer shall not enter into a subcontract for any of the services performed under this Agreeme�t without obtaining the prior written approval of the City. D. Written Amendments. This Agreement may be modified only by a written amendment or addendum that has been executed and approved by the appropriate officials shown on the signature page of this Agreement. E. Required Approvals. Neither the Developer nor the City is bound by this Agreement until it is approved by the appropriate officials shown on the signature page of this Agreement. F. Article Captions. The captions appearing in this Agreement are for convenience only and are not a part of this Agreement; they do not in any way limit or amplify the provisions of this Agreement. G. Annual Reqorts. Developer 5hall submit an annual report to the City providing a status of the building's leasing activity and occupancy status, including a status report on items discussed in Section 7.0 above. The �eport will assist the City in determining whether the Developer is meeting requirements necessary to achieve loan forgiveness. The first report shall be submitted six (6) months aher start of const�uction and then every one year anniversary of the first report thereafter for five (5)years. H. Proiect Poster. Following receipt of a Notice to Proceed with building improvements, the Developer shall install a "Coming Soon" poster in a building window facing South 3'd Street announcing the project. The poster shall: i. Measure a minimum 4$ inches by 72 inches. ii. Include a rendering(s)of the project (southeast corner perspective preferredj. iii. Include a floor plan of the street level space. iv. Provide a list of primary project details (project name, size, amenities, special features, completion date, developer, contractor, and any ground floor tenants that have signed leases). v. Include the following: "A project funded by the City of Renton Community Development Block Grant Program," and list the names of the current Mayor and City Council members. 35 AGENDA /TEM #7, e) I. Severabilitv. If any provision of this Agreement is determined to be unenforceable or invalid, such determination sha11 not affect the validity of the other provisions contained in this Agreement. Failure to enforce any provision of this Agreement does not affect the rights of the parties to enforce such provision in another circumstance, nor does it affect the �ights of the parties to enforce any other provision of this Agreement at any time. 1. Federal. State and Local Repuirements. The Developer is responsible for full compliance with all applicable federal, state, and local laws, rules and regulations. K. No Benefit for Third Parties. The services to be performed by the Developer pursuant to this Agreement with the City are intended solely for the benefit of the City, and no benefit is conferred hereby, nor is any contractual relationship established herewith, upon or with any person or entity not a party to this Agreement. No such person or entity shall be entitled to rely on the Developer's performance of its services hereunder, and no right to assert a claim against the City or the Developer, its officers, employees, agents or contractors shall accrue to the Developer or to any subcontractors, independently retained professional , consultant, supplier, fabricator, manufacturer, lender, tenant, insurer, surety or any other third party as a result of this Agreement or the performance or non-performance of the D'eveloper's services hereunder. L. Non-Reliance of Parties. Parties explicitly agree that they have not relied upon any earlier or outside representativns other than what has been included in this Agreement. Furthermore, neither party has been induced to enter into this Agreement by anything other than the speci�c written terms set forth herein. ' M. Force Maieure. In the event that Developer is prevented or delayed in the performance of any of its obligations under this Agreement by reason(s) beyond the reasonable control of Developer (each, a "Force Majeure Event"), then Developers performance shall be excused during the Force Majeure Event. Upon removal or termination of the Forte Majeure Event, Developer shall promptly perform the affected obligations in an orderly and expedited manner under this Agreement or procure a substitute for such obligation or performance that is reasonably satisfactory to Renton. Developer shall not be excused by mere economic hardship or by misfeasance or malfeasance of its directors, officers or employees. As used herein, Force Majeure Events include, but are not limited to, Acts of God, war, acts of domestic terrorism or violence, civil commotion, labor disputes, strikes, earthquakes, fire, flood or other casualty, shortages of labor or materials, government regulations or restrictions, extreme weather conditions, any other cause or event not reasonably within the control of either party, or any failure or delay in the performance by Renton or any third party that is not an employee, agent or contractor of Developer. The Parties shall use all commercially reasonable efforts to eliminate or minimize any delay caused by a Force Majeure Event. N. GoverninQ Law and Venue. This Agreement shall be governed and construed in accordance with the laws of the State of Washington. Any action fo� breach of this Agreement 36 AGENDA ITEM #7. e) or to enforce or nullify any provision of this agreement shall be instituted only in a court of �I appropriate jurisdiction in King County,Washington. 0. Entire A�reement. This Agreement forms the entire Agreement between the City and the Developer. Any prior representations, promises, agreements, oral or atherwise, between the parties,which are not embodied in this writing,shall be of no force or effect. (Signatures appea�on following pages) 37 AGENDA ITEM #7, e) IN WITNESS WHEREOF, this Agreement has been duly executed and delivered and is effective on the latest of the dates set forth below. DEVELOPER: By: Gi O�r9"LGiv_�`'�}�'��V�—�C 4�--' Date: /�D v'P,w�� J J .. � � , N a m e: �r�E�IYuuA.�.r' , Title:__1�,P�^ �d-r'�t�A.,. LLC.. By: /�1.�2(-1 f'(� ,(�C,( �-�---- Oate: /yoV'6�/l6�Y� �� ZOI.S� rt _ , N a m e: /IZO/].�C�{,.. �1'�P-�'�-�"" Title: ,l�P�J�". C.b►'�8�� LL.� i 38 AGENDA ITEM #7. e) LLC/CORPORATE FORM Of ACKNOWLEDGMENT Notary Seal must be STATE OF ►,rr�-�*�ti 6 rvv� 1 SS within box COUNTY OF K� � G- ) On this 4�'�-- day of 20L��before me personaily appeared: �,�c, � � maw:�A 6�.e�-�� v�.✓' to me ��"`� known to�e the — � � / N�-,2 =��` ��COLq��i of �7��./ S �� S-t �� and acknowledged the �' ,,,,,,,,,,,s,�,, .�- - ��,g'O"f'�'°�4'��,, said instrument to be the free and voluntary act and deed of = 4;a}��RY �`"�'; �said limited liability company/corporation, for the uses and % ;� " � �� = �purposes therein mentioned, and each on oath stated that % ., AUe� '1� � '% �'�'`��,, 8-0��='� he/she was authorized to execute said instrument and that '�,l��T�''O'fi�WPc,�`� the seal affixed, if any, is the corporate seal of said co�poration. �� -��P� Notary P�blic in and for th tate of�/�c+►-�,�Fi-t�rJ , Notaty(Print) � �T M�J�c G�A-IZ t �: My appointment expires: R - � - � 7 Dated: /o- y - I S 39 AGENDA ITEM #7, e) CITY OF RENTON By: Denis Law, Mayor ATTEST: By: Jason A.Seth, City Clerk APPROVED AS TO FORM By: Lawrence J. Warren, City Attorney 40 AGENDA ITEM #7, e) EXHIBIT A PROJECT BUDGET AGENDA ITEM #7. e) EXHIBIT A PROJECT BUDGET Item Cost Consultant $33,750.00 Permits $500.00 Financing $10,000.00 Sitework $55,154.00 � Masonry $10,000.00 Metals/Awning $53,395.00 Thermal and Moisture Protection $36,060.00 Doors and Windows $81,163.00 Finishes $15,275.00 Mechanical $12,132.00 Electrical $11,810.00 General Requirements $56,243.00 Signage $10,000.00 Subtotal $385,482.00 Contingency on Subtotal (5°�) $19,274.10 Contingent Subtotal $404,756.10 Profit and Overhead on Contingent Subtotal (15%)� $60,713.42 Contingent P&O Subtotal� $465,469.52 Sales Tax on Contingent P&0 Subtotal (9.5%)� $44,219.60 Total Project Budget� $509,689.12 Prevailing Wages , The Cit is utilizin CDBG monies to fund fa ade im rovements for this ro'ect. Y � � P P 1 Federal prevailing wage rates are the minimum requirement whenver CDBG funds are used for construction. Projects receiving federal funds are required to follow federal Davis Bacon wage rate requirements The Developer has certified that federal wage requirements are reflected in the project budget above. AGENDA ITEM #7. e) EXHIBIT B PROMISSORY NOTE AGENDA /TEM #7, e) PROMISSORY NOTE $ 200.000 Date Renton.WA City,State FOR VALUE RECEIVED, Cortona, LLC, hereinafter"Maker" promises to pay to the City of Renton, a Washington municipal corporation, hereinafter "Holder" or order, at 1055 South Grady Way, Renton, Washington 98057, or other such place as may be designated by the Holder from time to time, the principal 5um of two hundred thousand dollars ($200,000), with interest on the unpaid principal at the rate of zero percent(0%) per annum as follows: 1. PAYMENTS: During the term of this Note, Maker shall make no payments of principal or interest provided, however, that if Maker shall be found in default of any of the terms or conditions of this Note, then the full balance shall become immediate{y due and payable. Payment of the principal amount of this Note will be forgiven five years following the recorded date of the attached Deed of Trust (Exhibit A) as long as (a) the Maker remains the owner of the building and property that is financed in full or in part by this Note and secured by a Deed of Trust and a Personal Guarantee, (b) remains current on City and County property taxes and fees, (c) maintains insurance on the property in accordance with the terms of the Fa�ade Improvement Agreement, and (d) maintains the faSade improvements funded through this loan and Maker's funds in good repair and free from any accumulation of debris, graffiti, or waste materials, and takes all other actions necessary to maintain and ensure the neat and clean appearance of the surrounding st�eetscape area. "Owner" means that the Maker owns the ro ert in fee sim le and does not enter into a lease urchase land sales contract or P P Y P p , , I other similar property agreement. 2. DUE DATE: The entire balance of this Note together with any and all interest accrued thereon shall be due and payable in full on March 31, 2021, subject to the terms of the Fa�ade Improvement Agreement. 3. ALLOCATION OF PAYMENTS: Each payment sha�l be credited first to any late charge due, second to interest, and the remainder to principal. 4. PREPAYMENT: Maker may prepay all or part of the balance owed under this Note at an time without enalt . Y P Y 5. USE FOR FAC,ADE IMPROVEMENT ONLY:This Note evidences a loan by the Holder to the Maker for the exclusive purpose of fa�ade improvements to real estate located at 724 NOTE-Page 1 AGENDA 1TEM #7, e) South Third Street, Renton, Washington (tax parcel ID # 7231502210) (hereafter referred to as the "Property"), as described in the Fa�ade Improvement Agreement between the Maker and the Holder, dated , 20_ . Maker agrees to comply with all provisions of the Fa4ade Improvement Agreement in carrying out the rehabilitation work. Proceeds of the loan not required for the rehabilitation shall be applied against the principal balance of the Note. 6. INTEREST IN EVENT OF DEFAULT: Upon default of any of the terms and conditions of this Note, this Note will accrue interest at a rate of four percent (4�0) per annum until the principal amount of this Note is paid. 7. LOAN FORGIVENESS: In addition to the terms provided under Section 1 above regarding the principal amount of this Note being forgiven five (5)years following the recorded date of the Deed of Trust, the Maker must also reach and maintain an acceptable level of ground level occupancy of the Property. Upon completion of the fa�ade improvements funded through the Fa�ade Improvement Agreement and recordation of the Deed of Trust, Maker has one hundred eighty (180) days to install tenants within at least fifty percent (509'0) of the building's ground level commercial space square footage, and within one (1) year to achieve at least eighty percent (80%) occupancy of the building's ground level commercial space square footage. Should the ground level commercial space square footage not reach eighty percent (80%) occupancy within this one (1)-year period or not maintain eighty percent (80%} occupancy throughout the term of the Note, the Maker shall notify the Holder immediately. Holder, at its sole discretion, may then grant Maker a ninety (90)-day grace period for Maker to show proof of active and aggressive efforts to obtain tenants for the property to achieve at least eighty percent (80%) occupancy, including but not limited to, the engagement of a professional commercial brokerage firm. Proof of efforts to obtain tenants may also include invoices for advertising, copies of advertisement runs, and any other proof of active marketing of the Property. If the Maker has executed a lease(s) to reach at least eighty percent (80%) occupancy of the ground floor commercial space square footage during this grace period, Holder, at its sole discretion, may then grant Maker an additional ninety (90)-day grace period to ensure that the tenant(s) occupy the space to achieve at least eighty percent (80°�)occupancy. "Occupancy" refers to having an active business open to the public, or tenant in the case of mixed use properties. Use of the building for storage does not qualify as occupancy. After the initial one (1)-year period and expiration of any grace periods that have been granted by the Holder during the term of the Note, if the ground floor comme�cial space square footage is not at least eighty percent (80%) occupied, or any of the other te�ms for loan forgiveness under Section 1 have not been met, Maker will be notified that the loan shall become immediately due and payable. NOTE-Page 2 � AGENDA ITEM #7, e) 8. HOLDER'S RIGHTS IN EVENT OF DEFAULT:At the Holder's option, breach or default in any of the above-described conditions in this Note or in the Deed of Trust shall cause this Note to become due and payable without notice, and the principal will nat be forgiven from and after the date of the breach or default. Failure to exercise this option shall not constitute a waiver of the right to exercise this option in the event of any subsequent default. 9. CURRENCY: All principal and interest payments shall be made in lawful money of the United States. 10. DUE ON SALE: If this Note is secured by a Deed of Trust or any other instrument securing repayment of this Note, the property described in such security instruments may not be sold or transferred without the Holder's consent. Upon breach of this provision, Holder may declare all sums due under this Note immediately due and payable, unless prohibited by applicable law. 11.ACCELERATION: If Maker fails to abide b the terms of the Fa ade Im rovement Y � P Agreement, or if Maker defaults under any Deed of Trust or any other instruments securing repayment of this Note, and such default is not cured within thirty (30) days after written notice of such default, then Holder may, at its option, declare all outstanding sums owed on ' e to be immediatel due and a able in addition to an other ri hts or remedies that this Not y p y , y g Holder may have under the Deed of Trust or other instruments securing repayment of this Note. R Y ' F AND COSTS: Maker shail a all costs incurred b Holder in 12.ATTO NE S EES p y y collecting sums due under this Note after a default, including reasonable attorneys' fees, whether or not suit is brought. If Maker or Holder sues to enforce this Note or obtain a declaration of its rights hereunder, the prevailing party in any such proceeding shall be entitled to recover its reasonable attorneys' fees and costs incurred in the proceeding (including those , inwrred in any bankruptcy proceeding or appeal)from the non-prevailing party. 13.WAIVER OF PRESENTMENTS: Maker waives presentment for payment, notice of dishonor, protest and notice of protest. 14.NON-WAIVER: No failure or dela b Holder in exercisin Holder's ri hts under this Y Y 8 g Note shall be a waiver of such rights. 15.SEVERABILITY: If any clause or any other portion of this Note shall be dete�mined to be void or unenforceable for any reason, such determination shall �ot affect the validity or enforceability of any other clause or portion of this Note, all of which shall remain in full force and effect. NOTE-Page 3 AGENDA�1TEM #7. e) 16.INTEGRATION: There are no verbal or other agreements which modify or affect the terms of this Note. This Note may not be modified or amended except by written agreement signed by Maker and Holder. ' 17.CONFLICTING TERMS: In the event of any conflict between the terms of this Note and the terms of any Deed of Trust or other instruments securing payment of this Note, the terms of this Note shall prevail. 18.EXECUTION: Each Maker executes this Note as a principa) and not as a surety. If there is more than one Maker, each such Maker shall be jointly and severally liable under this Note. 19.COMMERCIAL PROPERTY: Maker represents and warrants to Holder that the sums represented by this Note are being used for business, investment or commercial purposes, and not for personal, family or household purposes. 20. ORAL AGREEMENTS: Oral Agreements or oral commitments to loan money, to extend credit, or to forebear from enforcing repayment of a debt are not enforceable under Washington law. 21. DEFINITIONS: The word Maker shalt be construed interchangeably with the words Maker or Payer and the word Holder shall be construed interchangeably with the words lender or Payee. In this Note, singular and plural words shall be construed interchangeably as may be appropriate in the context and circumstances to which such words apply. 22.ADDITIONAL TERMS AND CONDITIONS: (check one) a. ( ) NONE OR b. (✓)As set forth on the Fa�ade Improvement Agreement, attached hereto as "Exhibit B"which is incorporated by this reference. (Note: If neither a or b is checked, then option "a"applies) NOTE-Page 4 AGENDA ITEM #7. e) 23.THIS NOTE IS SECURED BY (✓) DEED OF TRUST, ( ) MORTGAGE, ( } Of EVEN DATE. Maker(signatures) B�� By George Brethauer Monica Brethauer Member, Cortona LLC Member, Cortona LLC Maker's address for all notices given by Holder under this Note: 10232 63`d Avenue South Seattle, WA 98178 DO NOT DESTROY THIS NOTE WHEN PAID this original Note together with the Deed of T�ust securing the same must be surrendered to the Trustee for cancellation and retention before any reconveyance can be p rocessed. NOTE-Page 5 AGENDA ITEM #7, e) NOTE-Page 6 AGENDA ITEM #7. e) EXHIBIT A DEED OF TRUST NOTE-Page 7 AGENDA 1TEM #7, e) EXHIBIT B FA4ADE IMPROVEMENT AGREEMENT NOTE-Page 8 AGENDA 1TEM #7, e) PERSONAL GUARANTEE THIS GUARANTEE dated this day of ,20 From: George Brethauer and Monica Brethauer(The Guarantor) To: City of Renton of 1055 South Grady Way, Renton,WA 98057(The Lender) Re: Cortona LLC of 10232 63'd Ave Sauth, Seattle, WA 98178(The Debtor) I, IN CONSIDERATION OF the Lender extending a loan of two hundred thousand dollars($200,000) to the Debtor pius other valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the Guarantor personally guarantees the prompt, full and complete perFormance of any and all present and futu�e duties, obligations and indebtedness (the "Debt") due to the Lender by the pebtor, up to a limit of $200,000, under the terms of the Promissory Note dated ' signed by Debtor (the "A�reement") and under the following term5 and conditions: 1. The Guarantor guarantees that Debtor will promptly pay the full amount of principal and ', interest of the Debt as and when the same will, in any manner, be or become due, either ' according to the terms and conditions provided by the Agreement or upon acceleration of the payment under the Agreement by reason of a default; 2. The Guarantor agrees not to pledge, hypothecate, mortgage, sell or otherwise transfer all or substantially all of Guarantor's assets without the prior written consent of the Lender; 3. To the extent permitted by law, the Guarantor waives all defenses, counterclaims or offsets that are legally available to the Guarantor with respect to the payment of the Debt of Debtor; and 4. If Guarantor is married, Guarantor hereby expressly agrees that Guarantor is acting on behalf of Guarantor's marital community, that this Guarantee benefits or is expected to benefit the community, and that recourse may be had against both Guarantor's separate property and community property. This Personal Guarantee shall be construed exclusively in accordance with, and governed by, the laws of the State of Washington. Any dispute a�ising hereunder may only be brought within the King County Superior Court, State of Washington. This Personal Guarantee embodies the entire promise of Guarantor to personally guarantee Debtor's Debt and supersedes all prior agreements and understandings relating to the subject matter here, whether oral or in writing. This Personal Guarantee may not be assigned or transferred without a written document, signed by the Guarantor, Debtor, and Lender, permitting such assignment or transfer. Dated this day of ,20 George Brethauer—Guarantor Monica Brethauer—Guarantor AGENDA ITEM #7, e) EXHIBIT D DEED OF TRUST AGENDA ITEM #7, e) When recorded return to: City Clerk City of Renton 1055 South Grady Way Renton, WA 98057-3232 DEED OF TRUST I Assessor's Property Parcel/Tax Account Number: 7231502210 Reference Number(s) of Documents assigned or released: N/A Grantor�s): Grantee(s): 1. Cortona LIC,a Washington Limited 1. City of Renton, a Washington Municipal Liability Company Corporation LEGAL DESCRIPTION: (Abbreviated or full lega/must go here. Additional legal on Exhibit A) Ptn. Lots 11& 12, Blk 25 Town of Renton Vol 1 Pg 135 DEED OF TRUST THIS DEED OF TRUST, made this day of , between Cortona LLC, a Washington corporation/limited liability company, having its office at 10232 63�d Avenue South, Seattle, WA 98178 ("Grantor"), First American Title Company, having its office at 818 Stewart Street, Suite 800, Seattle, WA 98101 ("Trustee"), and the City of Renton, a Washington municipal corporation, having its office at 1055 South Grady ' Way, Renton,Washington 98057("Beneficiary"). I WITNESSETH: Grantor hereby bargains, sells, and conve s to Trustee in trust with ower of II� Y , p sale, the following described real property in King County,Washington: See Exhibit A, Legal Description,attached hereto and incorporated herein by this reference. King County Parcel Number: 7231502210, which real property is not used principally for agricultural or farming purposes, together with all the tenements, hereditaments, and DEED OF TRUST-Page 1 AGENDA ITEM #7, e) appurtenances now or hereafter thereunto belonging or in any wise appertaining, and the rents, issues,and profits thereof. This Deed of Trust is for the purpose of securing performance of each agreement of Grantor contained in this Deed of Trust, and payment of the sum of two hundred thousand dollars ($200,000) with interest, in accordance with the terms of a Promissory Note of even date herewith, payable to Beneficiary or order, and made by Grantor, and all renewals, modifications, and extensions thereof, and also such further sums as may be advanced or loaned by Beneficiary to Grantor, together with interest thereon at such rate as shall be agreed upon, and the perFormance of the covenants and agreements of the Grantor, which follow.The Promissory Note is described as follows: One Promissory Note, describing a Deferred Payment Loan in the principal amount of two hundred thousand dollars($200,000). Upon default of any of the terms and conditions of the Note, interest will accrue at the rate of four percent (4�) per annum and the principal balance will become due and payable. DUE DATE: The date of total forgiveness shall be five years after the recordation of this Deed of Trust, estimated to be March 31, 2021, provided Grantor has paid all other sums, with interest, advanced to protect the security of this Deed of Trust, and complied with a11 covenants and agreements. A. To protect the security of this Deed of Trust, Grantor covenants and agrees: 1. To keep the property in good condition and repair; to permit no accumulation of debris, grafFiti, or waste thereof; to take all actions necessary to maintain and ensure the neat and clean appearance of the surrounding streetscape area; to complete any building, structure, or improvement being built or about to be built thereon; to restore promptly any building, structure, or improvement thereon which may be damaged or destroyed; and to comply with all laws, ordinances, regulations, covenants, conditions, and restrictions affecting the property. 2. To pay before delinquent all lawful taxes and assessments upon the property; to keep the property free and clear of all other charges, liens, or encumbrances impairing the security of this Deed of Trust. 3. To keep all buildings now or hereafter erected on the property described herein continuously insured against loss by fire or other hazards in an amount not less than the total debt secured by this Deed of Trust. All policies shall be held by the Beneficiary, and be in such companies as the Beneficiary may approve and have loss payable first to the Beneficiary, as its interest may appear, and then to the Grantor. The amount collected under any insurance policy may be applied upon any indebtedness hereby secured in such DEED OF TRUST-Page 2 A GENDA 1 TEM #7, e) order as the Beneficiary shall determine. Such application by the Beneficiary shall not cause discontinuance of any proceedings to foreclose this Deed of Trust. In the event of foreclosure, all rights of the Grantor in insurance policies then in force shall pass to the purchaser at the foreclosure sale. 4. To defend any action or proceeding purporting to affect the security hereof or the rights or powers of Beneficiary or Trustee, and to pay all costs and expenses, including cost of title search and attorney's fees in a reasonable amount, in any such action or proceeding, and in any suit brought by Beneficiary to foreclose this Deed of Trust. 5. To pay all costs, fees, and expenses in connection with this Deed of Trust, including the expenses of the Trustee incurred in enforcing the obligation secured hereby and Trustee's and attorney's fees actually incurred, as provided by statute. 6. Should Grantor fail to pay when due any taxes, assessments, insurance premiums, liens, encumbrances, or other charges against the property hereinabove described, Beneficiary may pay the same, and the amount so paid, with interest at the rate set forth in the note secured hereby, shall be added to and become a part of the debt secured in this Deed of Trust. 7. This Deed of ?rust and Promissory Note were executed and delivered to secure monies advanced to the Grantor by the Beneficiary as or on account of a loan evidenced by the Promissory Note,for the purpose of rehabilitating the property. 8. DUE ON SALE:The property described in this security instrument may not be sold or transferred without the Beneficiary's consent. Upon breach of this provision, Beneficiary may declare all sums due under the note and Deed of Trust immediately due and payable, unless prohibited by applicable law. 9. NO FURTHER ENCUMBRANCES: As an express condition of Beneficiary making the loan secured by this Deed of Trust, Grantor shall not further encumber, pledge, mortgage, hypothecate, place any lien, charge or claim upon, or otherwise give as security the property or any interest the�ein nor cause or allow by operation of law the encumbrance of the Trust Estate or any interest therein without the written consent of a Beneficiary even though such encumbrance may be junior to the encumbrance created by this Deed of Trust. Encumbrance of the property contrary to the provisions of this provision shall constitute a default and Beneficiary may, at Beneficiary's option, declare the entire balance of principal and interest immediately due and payable, whether the same be c�eated by Grantor or a� unaffiliated third party asserting a judgment lien, mechanic's or materialmen's lien or any other type of encumbrance or title defect. DEED OF TRUST-Page 3 AGENDA ITEM #7, e) B. IT IS MUTUALLY AGREED THAT: 1. In the event any portion of the property is taken or damaged in an eminent domain proceeding, the entire amount of the award or such portion as may be necessary to fully satisfy the obligation secured by this Deed of Trust shall be paid to Beneficiary to be applied to said obligation. 2. By accepting payment of any sum secured by this Deed of Trust after its due date, Beneficiary does nat waive its right to require prompt payment when due of all other sums so secured or to declare default for failure to so pay. 3. The Trustee shall reconvey, at the Grantor's sole expense, all or any part of the property covered by this Deed of Trust to the person entitled thereto, on written request of the Grantor and the Beneficiary, or upon satisfaction of the obligation secured and written request for reconveyance made by the Benefic+ary or the person entitled thereto. 4. Upon default by Grantor in the payment of any indebtedness secured by this Deed of Trust or in the performance of any agreement contained in this Deed of Trust, all sums secured hereby shall immediately become due and payable at the option of the Beneficiary subject to any cure period provided in the note secured by this Deed of Trust. In such event and upon written request of Beneficiary, Trustee shall sell the trust property, in accardance with the Deed of Trust Act of the State of Washington, at public auction to the highest bidder. Any person except Trustee may bid at Trustee's sale. Trustee shall apply the proceeds of the sale as follows: (1) to the expense of the sale, including a reasonable Trustee's fee and attorney's fee; (2) to the obligation secured by this Deed of Trust; and (3) the surplus, if any,shall be distributed to the persons entitled thereto. 5. Trustee shall deliver to the purchaser at the sale its deed, without warranty, which shall convey to the purchaser all right, title and interest in the real and personal p�operty which Grantor had or had the power to convey at the time of the execution of this Deed of Trust, and such as Grantor may have acquired thereafter. Trustee's deed shall recite the facts showing that the sale was conducted in compliance with all the requirements of law ' and of this Deed of Trust,which recital shall be prima facie evidence of such compliance and conclusive evidence thereof in favor of bona fide purchaser and encumbrancers for value. 6. The power of sale conferred by this Deed of Trust and by the Deed of 7rust Act of the State of Washington is not an exclusive remedy; Beneficiary may cause this Deed of Trust to be foreclosed as a mortgage. 7. In the event of the death, incapacity, disability, or resignation of Trustee, or at the discretion of the Beneticiary, Beneficiary may appoint in writing a successor trustee, and upon the recording of such appointment in the mortgage records of the county in which this DEED OF TRUST-Page 4 AGENDA ITEM #7, e) Deed of Trust is recorded, the successor trustee shail be vested with all powers of the original trustee. The trustee is not obligated to notify any party hereto of pending sale under any other Deed of Trust or of an action or p�oceeding in which Grantor, Trustee, or Beneficiary shall be a party unless such action or proceeding is brought by the Trustee. 8. This Deed of Trust applies to, inures to the benefit of, and is binding not only on the , ' parties hereto, but on his/her/their heirs, devisees, legatees, administrators, executors, and ', assigns. The term Beneficiary shall mean the holder and owner of the note secured hereby, whether or not named as Beneficiary herein. 9. ADDITIONAL TERMS AND CONDITIONS: (check one) , a. ( ) None �, b. (✓) As set forth on the Fayade Improvement Agreement, attached hereto as Exhibit I, B,which is incorporated by this reference. I (Note: If neither"a" nor"b" is checked,then option"a"applies.) I DEED OF TRUST-Page 5 AGENDA /TEM #7. e) Grantor—Cortona LLC �Y BY George Brethauer Monica Brethauer Member, Cortona LLC Member, Cortona LLC LLC/CORPORATE FORM OF ACKNOWLEDGMENT Notary Seal must be within STATE OF ) SS bO" COU NTY�OF ) On this day of ,20 , before me personally appeared: to me known to be the of , and acknowledged the said instrument to be the free and voluntary act and deed of said limited liability company/corporation, for the I uses and purposes therein mentioned, and each on oath stated that he/she was authorized to execute said instrument and that the seal affixed, if any, is the corporate seal of said corporation. Notary Public in and for the State of Notary(Print) My appointment expires: Dated: DEED OF TRUST-Page 6 AGENDA ITEM #7, e) REQUEST FOR FULL RECONVEYANCE-Do not record. To be used only when note has been paid. TO: TRUSTEE The undersigned is the legal owner and holder of the note and all other indebtedness secured by the within Deed of Trust. Said note, together with all other indebtedness secured by said Deed of Trust, has been fully paid and satisfied; and you are hereby requested and directed, on payment to you of any sums owing to you under the terms of said Deed of Trust,to cancel said note above mentioned, and all other evidences of indebtedness secured by said Deed of Trust delivered to you herewith, together with the said peed of Trust, and to reconvey, without warranty, to the parties designated by the terms of said Deed of Trust, all the estate now held by you thereunder. 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G� Z v n ADAMS _ MeR10fy BON-Proposed Facade PerzpeclNe , �ARCHITECTURE � Wednesday,),�ne 10,2015 m � � V �. �' 4 4 4 4 Q � � ' I I I I 1 r � 1 i ' I I TWO(2)EXTG WtN00WS _ ; �TO REPLACE WITH SIMILAR • ` � NEW ALUMINUM , � FUTURE SIGNAGE TO BE FlLED - r '_ " � "' � FUTURE SIGNAGE TO 8E FILED UN�R SEF�ARATE PERMIT UNOER SEPARATE PERMIT E O � � � NEW GLASS A G �� r 4 �� EXiG CANOPY 70 REMAIN-REPUICE r,-�--_Z � � �---FACIA TRIM WITH NEW MTL TRIt+�iRC.RECESS INFILL EXTC � EIfTG y , + 1 ; - ROOF ANO REPLACE SO IT TO REMAN�I f RECESS �,� RECESS ' - s � /p� �EXTG BRICK � � � � 4, � �. •` .7-�.""• v'�_..... _--- .._ _- - - - ..-1 -_ - - ' -- - -- . . 2 �.� • • • t ' ..�. ••• •r ••• . . _ . - ti�,•. . o. � � - t '-_ �� , . . ,.,,. �-- ------ - _r . . _ �INDICATES LOCATION SAFE7Y `'�,_�_�µr STOREFRONT WINDOW GLNZ�NG REDUIRED PER IBC 2406 SYSTEM PER PLANS /�� Y� � . � �ADAMS � MemOrjl BOx-Proposed facade Elevauon ARCHITECTURE � Wednesday,lune 10,2015 �� V � AGENDA ITEM #7, e) EXHIBIT F HUD LETTER AGENDA ITEM #7, e) O�'�.n1�ENi�,yo� U.S.Department of Housing and Urban Development 4 ; * *o Seattle Regional O(fice z � Seattle Federal OfFce Building �,� �.+ Office of Community Planning 6 Development °'w oev� 909 Ftst Avenue,Suite 300 Seattle,WA 9$1041000 www.hud.gov/washington.htmi August 14,2015 Mr.Mazk Ellerbrook Manager,Regional Housing&Communiry Development King County 401 Sth Avenue,Suite 510 Seattle,WA 98104-2377 Deaz Mr.Ellerbrook: SUBJECT: Authority to Use Grant Funds for Renton Cortona Building Fa�ade Improvements We have received the Request for Release of Funds and Certification submitted with your signature on July 29,2015. The activity listed on the enclosed Authority to Use Grants Funds(HUD Form 7015.16)has received satisfactory environmeatal i cleazance. ' Enclosed is an Authority to Use Grant Funds for activities requiring a release of II funds by HUD under the Environmental Review Procedures at 24 CFR Part 58. You aze hereby authorized to incur costs for the activity listed above and on the enclosed form as of August 14,2015,provided there are no other conditions that must be removed or cleazed. If you have any questions please call Cristina Yamamoto at(206)220-5367. � Sincerely, �J'�,�.�,.. John W.Peters Director Office of Community Planning and Development Enclosure AGENDA ITEM #7, e) AGENDA /TEM #7. e) EXHIBIT G LOAN REIMBURSEMENT REQUEST FORM AGENDA ITEM #7, e) EXHIBIT G LOAN REIMBURSEMENT REQUEST FORM City of Renton 1055 S Gredy Way Attn:John Col�um,6th Floor Check if Final Invoice� Re�ton,WA 98057 Project Name Requestor(Payable to) DUNS Name CCR/CAGE# Address CCR Expiretion Request Number Phone invoice Period Developer Portion This City Portion City PoRion City Portion Total Origina) Total Revised Total This Request This Request Cumulative Remaining Budget line Item Budset Budget Request (50%) (50%) to Date Balance � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � ( � � � � � � � � � � � � � � � ( � � � � � � � � � � � � � � � � � � � � � � � ( � � � � � � � � I � � � � � � � � � � � � ( � � I � � I � � � � � ( � ( � � � � ( � � � � � � � � � � � � � � Total� I I � � � � I, the undersigned, do hereby certify under penalty of perjury, that this is a true and correct claim for CDBG eligible costs incurred in compliance with applicable environmental mitigation measures. I understand that any false claims,statements, documents,or concealment of material fact may be prosecuted under applicable Federal and State laws. This certification includes any attachments which serve as supporting documentation to this request. Authorized Signature Date Davis-Bacon Law-if applicable,HCD Davis-6acon Officer's signature is required. ; Isthisafederallyfundedprojectln I Yes I No I �rve:,thisformmustbeslgnedbyHCDDavis•8atonOfficer whlch Davls Bacon is applicable? � ❑ ❑ �Punding Sources: � Source� PRO � ORG I EXP � TAS � AWA � Budget ( InvofceTotal I YTDAmount I Bala�ce � � � � � � � � � � � Total� � � � �HCO Progrem/Project ManagerApproval for Payment �Date i AGENDA /TEM #7, fl �, 1 uTY aF --.�......r.r��r� �' I �� • � • • . � SUBJECT/TITLE: Multi-Family Housing Property Tax Exemption- Extension ! RECOMMENDED ACTION: Refer to Planning& Development Committee � DEPARTMENT: Community& Economic Development STAFF CONTACT: Mark Santos-Johnson, Community Development Project Manager EXT.: 6584 , •. :. ..,.. .. .-...,......-_.. � - _ __ _ .,. ... Expenditu�e Required: ;��l�A� , a Transfer Arrient�ment $h1��A��; �;� r. � Amount Budgeted: $ N/A Revenue Generated: $ N/A ,Tdtat Proje.ct t�d�(j}e}�r'. �_;, , .:$N �k( �` � �., City St�. re +�t m�� [�� ..x��;.;. :. �,:� .� G n ,��KC*'S#:�Rtl�2A..,.a'.�.:Xi.tu'�.N'#'ad'a w�'-�"��6N:�P'�..1'�' �.�.=n� �.� ..w'9�bd .'�a`e.dN'aF�w'fi:v�t.. �� .�[a��M k� ��s_ . ,.,,... :7 `bn 3g '(tww`�.lU�a �.G.a ��.9i« .,..W:'� .F'n.�+r'. utN,. � � � � � As authorized by Chapter 84.14 RCW, Council established the Multi-Famity Housing Property Tax Exemption ("Exemption") in 2003 (codified in RMC 4-1-220, as subsequently amended)to currently encourage multi- family housing development in Downtown Renton and the Sunset Area. Eligible multi-family housing projects must, for example, be newly constructed and have a minimum of 30 attached dwelling units if located in the CD zone.The Exemption is scheduled to sunset on December 31, 2015, unless extended by Council action. The City has used the Multi-Family Housing Property Tax Exemption Program since 2003 to encourage increased residential opportunities within designated urban centers that lack sufficient, desirable, and convenient residential housing. Staff believes that extending the Exemption through December 31, 2018, will greatly enhance future redevelopment opportunities in the City's two designated residential targeted areas. In particular,the proposed extension will help achieve the City's vision and improve future prospects for additional new multi-family housing in Downtown Renton and the Sunset Area. : A. Issue Paper B. Draft Ordinance . � � � • Adopt an ordinance to amend the Property Tax Exemption for Multi-Family Housing in Residential Targeted Areas to extend the sunset clause for accepting new applications for the multi-family housing property tax exemption for three years to December 31, 2018, unless further extended by Council action. AGENDA ITEM #7. t� DEPARTMENT OF COMMUNITY �,r/"�—��T�oF - & ECONOMIC DEVELOPMENT Renton Q M E M O R A N D U M DATE: November 6, 2015 TO: Ed Prince, Council President Members of Renton City Council VIA: Denis Law, Mayor FROM: C. E. "Chip"Vincent, CED Administrator STAFF CONTACT: Mark Santos-Johnson, Community Development Project Manager x6584 SUBJECT: Multi-Family Housing Property Tax Exemption—Extension ISSUE: Should the City extend the Multi-Family Housing Property Tax Exemption Program provided for in RMC 4-1-220 and currently scheduled to sunset on December 31, 2015? RECOMMENDATION: Adopt an ordinance to amend the Property Tax Exemption for Multi-Family Housing in Residential Targeted Areas in RMC 4-1-220 to extend the sunset clause for accepting new applications for the multi-family housing property tax exemption for three years to December 31, 2018, unless further extended by City Council action. BACKGROUND SUMMARY: Overview of Current Exemption Pro�ram As authorized by Chapter 84.14 RCW,the Council established the Multi-Family Housing Property Tax Exemption ("Exemption") in 2003 (codified in RMC 4-1-220 as subsequently amended)to currently encourage multi-family housing development in Downtown Renton and the Sunset Area. Eligible multi-family housing projects must,for example, be newly constructed and have a minimum of 30 attached dwelling units if located in the Center powntown(CD)or Center Village(CV)zones. The Exemption is scheduled to sunset on December 31, 2015, unless extended by City Council action. As provided for in Chapter 84.14 RCW and RMC 4-1-220,the Exemption provision currently allows the value of qualified new housing construction to be exempt from ad valorem property tax for eight to twelve years depending upon when the project applied for the Exemption and whether the project provides at least 20%of the units as affordable housing. However,the Exemption does not include the value of the land,existing improvements, or non-housing-related improvements (e.g.,commercial space). The Exemption applies to all levels of the ad valorem property tax, including the local jurisdiction,county,state,and all local taxing districts. The Exemption is in addition to any other tax credits,grants,or incentives provided by law for the multi-family housing. AGENDA ITEM #7, fl Ed Prince,Council President Page 2 of 4 November 6,2015 Example of Potential Exemqtion Savinss As noted above,the Exemption applies to all levels of the ad valorem property tax, including the local jurisdiction,county,state,and all local taxing districts. For projects in Renton,this amounts to a total of$12.63 per$1,000 of assessed value for 2015. The value of the property tax exemption will of course be determined by the nature,quality, and cost of the multi-family housing(e.g.,size,type, parking, and amenities)and the future assessed value of the project and the future ad valorem property tax rates. The City has a pending Exemption application for The Lofts at Second and Main in Downtown Renton. As an example,the estimated property tax savings related to The Lofts at Second and Main is approximately$155,046 per year($1.24 million for the applicable eight-year Exemption period). This equates to a potential property tax savings of approximately$1,535 per year per housing unit($12,281 per housing unit for the eight-year Exemption period). The City of Renton's portion of the above estimated potential property tax savings related to the Exemption is approximately$34,741 per year($277,929 for the eight-year period)for The Lofts at Second and Main project. Although the City will receive additional property tax revenue from the new commercial space and any increased assessed value for the land as a result of the new construction on site,the City will not receive property tax revenue from the residential improvements until after the eight-year property tax exemption period. Exemption Prolects Approved to Date As noted in Figure 1 below,the City has approved nine multi-family housing projects to date with a total of 1,795 housing units, including 1,745 rental apartments and 50 for-sale condominiums. The projects are located in all three of the historical designated residential targeted areas, including five projects in Downtown Renton (503 housing units),three projects in South Lake Washington (1,075 housing units), and one project in the Sunset Area (217 housing units). The projects range in size from 50 housing units to 440 housing units with an average of 199 housing units per project. Figure 1-Multi-Family Housing Property Tax Exemption—Approved Project Applications Number of Designated Application Housing Residential Type of Approval Project Name Units Targeted Area Housing Date Project Status Merrill Gardens at Renton Centre 154 Downtown Rental 5/13/2005 Completed 2007 Parkside at 95 Burnett 106 Downtown Rental 5/13/2005 Completed 2007 The Bristol II at Southport 195 South Lake WA Rental 2/28/2006 Completed 2008 Chateau de Ville 50 Downtown For Sale 6/13/2006 Completed 2008 T n 440 South Lake WA Rental 1 26 2007 Com leted 2009 he Sa ctuary / / p The Reserve 440 South Lake WA Rental 1/26/2007 Completed 2010 Harrington Square 217 Sunset Area Rental 9/27/2007 Completed 2011 Second & Main Apartments 101 Downtown Rental 7/21/2008 Cancelled 2011 Liberty Square Apartments 92 Downtown Rental 4/13/2009 Completed 2008 Total � 1795 AGENDA 1TEM #7, fl Ed Prince,Council President Page 3 of 4 November 6,2015 Proposed Extension: To encourage additional multi-family housing in Downtown Renton and the Sunset Area,staff recommends that the City Council extend the Exemption for an additional three years to December 31, 2018, unless further extended by City Council action. As noted in figure 1 above,the City has approved nine multi-family housing projects to date with a total of 1,795 housing units. Eight projects have been completed (with 1,694 units—an average of 212 units per project)and one project(Second&Main Apartments with 101 units)was unable to secure financing and was cancelled in 2011.The Lofts at Second and Main project is located on the same site as the former proposed Second& Main Apartments Of the eight completed projects,four projects with 635 housing units are located Downtown and one project,the Harrington Square Apartments with 217 housing units, is located in the Sunset Area;the batance of the projects and housing units were located in South Lake Washington. The Exemption, if extended,would continue to encourage developers to build new multi-family housing in Downtown Renton and the Sunset Area. Due primarily to changes in market conditions and available financing since the recession hit in late- 2008,the City did not receive an Exemption application for a number of years since the Liberty Square Apartments submitted an application in early-2009. However,the City received an Exemption application for The Lofts at Second and Main in September 2015 and we expect additional developers to utilize the Exemption in the future for projects in Downtown Renton and the Sunset Area. For example,Colpitts Development Company plans to use the Exemption to help develop approximately 400 housing units on the former Sunset Terrace public housing site as part of the Sunset Area Community Revitalization and CTB Venture LLC's plans to use the Exemption to hetp build the 15-unit Brandon Place Townhomes for owner-occupied housing in the Sunset Area. When the City established the Exemption in 2003, it was the first city in South King County to utilize the incentive. However, in subsequent years almost all of the other eligible cities in South King County (including Kent, Federal Way,Auburn, Burien, Des Moines,SeaTac,and Covington) now have an Exemption program with one or more designated residential targeted areas. Consequently, it is even more important for Renton to maintain the Exemption in order to market opportunities for additional multi-family housing development and capital investment in Downtown Renton and the Sunset Area given the competition for new developments and other opportunities available in South King County. Summarv: The proposed extension supports the City's vision as the center of opportunity in the Puget Sound Region where families and businesses thrive and the 2016-2021 Business Plan Goals. The Exemption also supports affordable workforce housing development so that Renton employees can live in the community where they work to help combat transportation congestion and related environmental impacts. AGENDA ITEM #7, fl Ed Prince,Council President Page 4 of 4 November 6,2015 CONCLUSION: The City has used the Multi-Family Housing Property Tax Exemption Program since 2003 to encourage increased residential opportunities within designated urban centers that lack sufficient, desirable,and convenient residential housing. Staff believes that extending the Exemption through December 31, 2018,will greatly enhance future redevelopment opportunities in the City's two designated residential targeted areas. In particular,the proposed extension will help achieve the City's vision and improve � future prospects for additional new multi-family housing in Downtown Renton and the Sunset Area. Attachments: 1) Draft Ordinance cc: Jay Covington,CAO Jason Seth,City Clerk Iwen Wang,Administrative Services Administrator Gregg Zimmerman,Public Works Administrator Hi hi ama Communit Services Administrator Terry gas y , y Cliff Long,Economic Development Director AGENDA ITEM #7, t� CITY OF RENTON, WASHINGTON ORDINANCE N0. AN ORDINANCE OF THE CITY OF RENTON, WASHINGTON, AMENDING SECTION 4-1-220, PROPERTY TAX EXEMPTION FOR MULTI-FAMILY HOUSING IN RESIDENTIAL TARGETED AREAS, OF CHAPTER 1, ADMINISTRATION AND ENFORCEMENT, OF TITLE IV (DEVELOPMENT REGULATIONS) OF THE RENTON MUNICIPAL CODE, BY EXTENDING THE PROPERTY TAX EXEMPTION. WHEREAS, on December 22, 2003, the Renton City Council approved Ordinance No. 5061 (codified in RMC 4-1-220) to establish a limited property tax exemption to encourage multi-family housing development in designated residential targeted areas; and WHEREAS, the property tax exemption will sunset on December 31, 2015, unless extended by City Council action; and WHEREAS, the provisions of Section 4-1-220, Property Tax Exemption for Multi-Family Housing in Residential Targeted Areas, have been successful in encouraging increased residential opportunities and in stimulating new construction of multi-family housing in residential targeted areas; and WHEREAS, the existing purpose and applicability of the property tax exemption will remain the same; and WHEREAS, the City seeks to amend RMC 4-1-220 to extend the property tax exemption to encourage additional future multi-family housing projects in the residential targeted areas; NOW,THEREFORE,THE CITY COUNCIL OF THE CITY OF RENTON, WASHINGTON, DOES ORDAIN AS FOLLOWS: 1 . AGENDA /TEM #7. fl ORDINANCE N0. SECTION I. Subsection 4-1-220.M, Sunset of Exemption for Applications for Conditional Certificates, of Chapter 1, Administration and Enforcement, of Title IV (Development Regulations) of the Renton Municipal Code, is hereby amended as follows: M. SUNSET OF EXEMPTION FOR APPLICATIONS FOR CONDITIONAL CERTIFICATES: The City shall not accept new applications for conditional certificates as provided in RMC 4-1-220_E after the close of business on December 31, �8� 2018, unless extended by City Council action. The City shall process (1) pending complete applications for a conditional certificate submitted before the close of business on December 31, �� 2018, and (2) applications for an extension of the conditional certificate and/or a final certificate received after the close of business on December 31, �5 2018, as provided in subsections D through J of � this Section. Subsections C and J through L^{*"�< <��+�^^ shall continue to apply to all properties that have been or are issued a final certificate of tax exemption under RMC 4-1-220 until expiration, termination or cancellation of the tax exemption. Incomplete applications for conditional certificates as of the close of business on December 31, �A�S 2018, shall be denied and/or returned to owners. SECTION II. This ordinance shall be effective upon its passage, approval, and thirty (30) days after publication. 2 AGENDA ITEM #7, fl ORDINANCE N0. PASSED BY THE CITY COUNCIL this day of , 2015. Jason A. Seth, City Clerk APPROVED BYTHE MAYOR this day of , 2015. Denis Law, Mayor Approved as to form: Lawrence J. Warren, City Attorney Date of Publication: ORD:1893:11/3/15:scr II 3 AGENDA /TEM #7, g) .,-"''`_. ' CITY OF �r1�O�1 � � • • . . � SUBJECT/TITLE: Owner-Occupied Housing Incentive& Rental Housing Incentive - Extensions RECOMMENDED ACTION: Refer to Planning& Development Committee DEPARTMENT: Community& Economic Development STAFF CONTACT: Mark Santos-Johnson, Community Development Project Manager EXT.: 6584 . • . �. ,�.�; .� ..;�:�„.�.._ , ... , �Expenditure Required: $ N/A Transfer Amendmeht: $N/A P � � Amount Budgeted: $ N/A Revenue Generated: $ N/A __/ t Q . , j � Cii{,�{�� h .�Q Tci �i� ��..� r�. . $��I A I Pro e �u et� . � r�� S �� . -. ��i�t�a , �, �I . . .��. . . r _ � � a.o-,.�^-z7r.: , . �.., :^aw�w,.�,xro,�Y u� . .. . , .�;�I�U,A,.✓',uk�»'i�L�. .az,��v:t.w�,e ,:a�.,. . �..�"Yi,�:,w>.,�,�7.o'a:Sa.._..��.#Tar�a:z��.w�:�.,<�.x�i.�.��G��. ., .. .�),n.N ."1.::, _ � � � � � � Council approved the Owner-Occupied Housing Incentive (codified in RMC 4-1-210B as subsequentty amended)to allow certain development and mitigation fees for"For Sale" housing to be waived to encourage owner-occupied housing in Downtown Renton and the Sunset Area. Council also approved the Rental Housing Incentive (codified in RMC 4-1-210C as subsequently amended)to allow certain development and mitigation fees for rental housing to be waived to encourage new multi-family rental housing in the Sunset Area. Both incentives are scheduled to sunset on December 31, 2015, unless extended by Council action. The City has used the Owner-Occupied Housing Incentive and the Rental Housing Incentive to encourage increased residential opportunities in Downtown Renton and the Sunset Area. Staff believes that extending the Owner-Occupied Housing Incentive and the Rental Housing Incentive through December 31, 2018 will greatly enhance future redevelopment opportunities for both Downtown Renton and the Sunset Area.The incentives will encourage capital investment in new multi-family housing development in the targeted areas and help stimulate additional revitalization and commercial development in Downtown Renton and the Sunset Area. : A. Issue Paper B. Ordinance � ' • � � • Adopt an ordinance to amend the Owner-Occupied Housing Incentive in RMC 4-1-2106 and the Rental Housing Incentive in RMC 4-1-210C to extend the sunset clauses for three years to December 31, 2018, unless further extended by City Council action. AGENDA ITEM #7, g) DEPARTMENT OF COMMUNITY �CITYOF � &ECONOMIC DEVELOPMENT —, —.�Renton O M E M O R A N D U M DATE: November 6, 2015 T0: Ed Prince, Council President Members of Renton City Council VIA: Denis Law, Mayor FROM: C. E. "Chip"Vincent, CED Administrator STAFF CONTACT: Mark Santos-Johnson, Community Development Project Manager x6584 SUBJECT: Owner-Occupied Housing Incentive and Rental Housing Incentive - Extensions ISSUE: Should the City extend the Owner-Occupied Housing Incentive and the Rental Housing Incentive provided for in RMC 4-1-2106 and 4-1-210C, respectively,and both currently scheduled to sunset on December 31, 2015? RECOMMENDATION: Adopt an ordinance to amend the Owner-Occupied Housing Incentive in RMC 4-1-2106 and the Rental Housing Incentive in RMC 4-1-210C to extend the sunset clauses for thPee years to December 31, 2018, unless further extended by City Council action. BACKGROUND: Owner-Occupied Housin�Incentive Back�round In August 2001,the Renton City Council approved Ordinance No.4913 (codified in RMC 4-1-2106 as subsequently amended)to allow certain development and mitigation fees for"For Sale" housing to be waived to encourage owner-occupied housing in Downtown Renton. In February 2010,the City Council extended the incentive to include eligible owner-occupied housing in the Sunset Area. The Owner-Occupied Housing Incentive currently applies to eligible new construction projects with 100%of the housing units platted or condominium "For Sale" housing in the Center powntown (CD), Center Village(CV), Residential 14 Dwelling Units/Acre(R-14), and Residential Multi-Family(RM-F) zones that are also located in Downtown Renton or the Sunset Area. In addition to being located in one of the targeted areas noted above, eligible multi-family owner- occupied housing projects must,for example, be newly constructed and have a minimum of 30 attached dwelling units if located in the CD or CV zones. Eligible owner-occupied housing projects must currently have a minimum of ten attached dwelling units if located in one of the other zones AGENDA ITEM #7, g) Ed Prince,Council President Page 2 of 4 November 6,2015 noted above. The Owner-Occupied Housing Incentive is scheduled to sunset on December 31, 2015 unless extended by City Council action. To date,the Owner-Occupied Housing Incentive was instrumental in helping construct two projects in Downtown Renton,the 37 condos at 55 Williams and the SO condos at the Chateau de Ville. No projects in the Sunset Area have been built to date using the Owner-Occupied Housing Incentive, but there is one proposed project in the Sunset Area in the pipeline, CTB Venture LLC's 15-unit Brandon Place Townhomes. H in Incentive Back round , Rental ous � � In August 2011,the Renton City Council approved Ordinance 5617 (codified in RMC 4-1-210C as subsequently amended)to allow certain development and mitigation fees for rental housing to be waived to encourage new multi-family rental housing in the Sunset Area (but not Downtown Renton— where only owner-occupied housing continues to be eligible for waived fees). The incentive applies to eligible new multi-family rental housing in the CV, RM-F,and R-14 zones and also located in the Sunset Area. Eligible new affordable multi-family rental housing projects in the Sunset Area receive a 100� fee waiver and eligible new market-rate multi-family rental housing projects receive a 50%fee waiver. In addition to being located in the Sunset Area,eligible multi-family rental housing projects must,for example, be newly constructed and have a minimum of 30 attached dwelling units if located in the CV zone or a minimum of eight attached dwelling units if located in the RM-F or R-14 zones. The Rental Housing Incentive is scheduled to sunset on December 31, 2015, unless extended by City Council action. To date,the Rental Housing Incentive was instrumental in helping construct two projects in the Sunset � Area,the eight-unit Glennwood Avenue Townhomes and the 18-unit Kirkland Avenue Townhomes, ' both part of the Renton Housing Authority's replacement housing for the Sunset Terrace redevelopment. Example of Potential Develoqment and Miti�ation Fee Savin�s The amount of development and mitigation fee savings for a project depends upon many things, I including the nature,quality,and cost of the multi-family housing(e.g.,size,type, parking,and amenities)and the applicable fee rates at the time. For illustration purposes,the estimated savings are noted below for one Owner-Occupied Housing Incentive project and one Rental Housing Incentive project. Based on the analysis completed at the time,the 55 Williams project with 37 units was expected to receive a total savings of approximately$118,994 from the Owner-Occupied Housing Incentive, including$43,748 in fire,transportation and parks mitigation fees,$41,440 in water and wastewater system development charges,and$33,806 in building permit fees. (There were no surface water system development charges since 100%of the site was already an impervious surface from the prior use.) The incentive worked out to a savings of approximately$3,216 per unit. Based on the ana�ysis completed at the time,the Glennwood Avenue Townhomes with eight units was expected to receive a total savings of approximately$52,916 from the Rental Housing Incentive, AGENDA ITEM #7, g) Ed Prince,Council President Page 3 of 4 November 6,2015 including$28,609 in water,wastewater, and surface water system development charges,and$24,307 in building permit and plan review and inspection fees. (There were no mitigation fees since the project included eight replacement housing units.) The incentive worked out to a savings of approximately$6,615 per unit. PROPOSED EXTENSIONS: To encourage additional new owner-occupied housing in Downtown Renton and the Sunset Area and additional new rental housing in the Sunset Area,staff recommends that the City Council extend both the Owner-Occupied Housing Incentive and the Rental Housing Incentive for three years to December 31, 2018. Owner-Occupied Housin�Incentive Extension To date,the City has had limited success at encouraging new owner-occupied housing development in Downtown Renton and the Sunset Area. Both projects that utilized the Owner-Occupied Housing Incentive since 2001,the 55 Williams condo project(completed in 2002)and the Chateau de Ville condo project(completed in 2008), had significant challenges selling units when constructed. In particular,the Chateau de Ville was completed in late-2008 at the beginning of the recession. Given the cost to construct the project and the significant decrease in housing values and available financing for home buyers at the time,the developer was only able to sell three condo units. As a result,the project was foreclosed and 47 of the 50 units were purchased by Jade Investments LLC which has used the units to date for rental housing. It's unclear if or when the units will be made available for sale as owner-occupied housing. For developers who are building new condos or converting apartments to condominiums,there are other stronger market areas for them to develop their projects than Downtown Renton or the Sunset Area. Consequently, it is a major challenge to promote new owner-occupied housing in Downtown � Renton and the Sunset Area. Staff believes that the Owner-Occupied Housing Incentive is an essential incentive to help stimulate and encourage new owner-occupied housing development in Downtown Renton and the Sunset Area in the future. As noted above,there is one proposed project in the pipeline,CTB Venture LLC's 15-unit Brandon Place Townhomes in the Sunset Area. Rental Housin�Incentive Extension Redevelopment of the Highlands or Sunset Area has been a priority business plan goal for the City since the 1990's. Unfortunately, capital investment in the Sunset Area (particularly for residential construction) has been very limited, in part due to significant development costs for builders to compensate for the limited utility infrastructure in the area. The Rental Housing Incentive was established to provide an additional catalyst for redevelopment in the Sunset Area to help stimulate and support additional new multi-family rental housing in the community. The Renton Housing Authority(RHA) used the Rental Housing Incentive to help construct the 8-unit Glennwood Avenue Townhomes and the 18-unit Kirkland Avenue Townhomes as replacement housing for the Sunset Terrace redevelopment. We expect other multi-family rental housing projects to use the incentive in the future, including RHA's additional planned Sunset Terrace replacement housing projects and Colpitts Development Company's proposed three buildings with approximately 400 housing units on the former Sunset Terrace public housing site. Maintaining the Rental Housing AGENDA ITEM #7. g) Ed Prince,Council President Page 4 of 4 November 6,2015 Incentive is a central part of the City's efforts to support the Sunset Area Community Investment Strategy and, in particular,the Sunset Terrace redevelopment project. Summarv: The proposed extensions support the City's vision as the center of opportunity in the Puget Sound Region where families and businesses thrive and the 2016-2021 Business Plan Goals. In addition,the incentives for new owner-occupied housing and new multi-family rental housing in the Sunset Area supports the Sunset Area Community Investment Strategy adopted by the City Council in 2009 and the City Center Plan adopted by the City Council in 2011. CONCWSION: The City has used the Owner-Occupied Housing Incentive and the Rental Housing Incentive to encourage increased residential opportunities within designated urban centers that lack sufficient, desirable,and convenient residential housing. Staff believes that extending the Owner-Occupied Housing Incentive and the Rental Housing Incentive through December 31, 2018 will greatly enhance future redevelopment opportunities for both Downtown Renton and the Sunset Area. In particular, the proposed extensions will help achieve the City's vision and improve future prospects for additional new owner-occupied housing in Downtown Renton and additional new owner-occupied housing and rental housing in the Sunset Area. The incentives will encourage capital investment in new multi- family housing development in the targeted areas and help stimulate additional revitalization and commercial development in Downtown Renton and the Sunset Area. Attachments: 1. Draft Ordinance cc. Jay Covington,CAO Jason Seth,City Clerk Iwen Wang,Administrative Services Administrator Terry Higashiyama,Community Services Administrator Gregg Zimmerman,Public Works Administrator Mark Peterson, Fire Chief/Emergency Services Administrator Cliff Long,Economic Development Director Jennifer Henning, Planning Director Vanessa Dolbee,Current Planning Manager Karen Bergsvik, Human Services Manager AGENDA 1TEM #7, g) CITY OF RENTON, WASHINGTON ORDINANCE N0. AN ORDINANCE OF THE CITY OF RENTON, WASHINGTON, AMENDING SECTION 4-1-210, WAIVED FEES, OF CHAPTER 1, ADMINISTRATION AND ENFORCEMENT, OF TITLE IV(DEVELOPMENT REGULATIONS) OF THE RENTON MUNICIPAL CODE, BY EXTENDING THE WAIVER OF CERTAIN DEVELOPMENT AND MITIGATION FEES. WHEREAS, on August 27, 2001, the Renton City Council approved Ordinance No. 4913 (codified in RMC 4-1-210.B) to allow certain development and mitigation fees for housing that is for sale to be waived to encourage new owner-occupied housing in Downtown Renton; and WHEREAS, on February 1, 2010, the City Council approved Ordinance No. 5524(codified in RMC 4-1-210.B) to allow certain development and mitigation fees for housing that is for sale to be waived to encourage new owner-occupied housing in the Sunset Area; and WHEREAS, on August 1, 2011, the City Council approved Ordinance No. 5617 (codified in RMC 4-1-210.C) to allow certain development and mitigation fees for rental housing to be waived to encourage new multi-family rental housing in the Sunset Area; and WHEREAS, these development and mitigation fee waivers will sunset on December 31, 2015, unless extended by City Council action; and WHEREAS, the provisions of Subsection 4-1-210.6, Owner-Occupied Housing Incentive, and Subsection 4-1-210.C, Rental Housing Incentive, have been successful in encouraging increased residential opportunities and in stimulating new construction of multi-family housing in Downtown Renton and the Sunset Area; and WHEREAS, the existing purpose and applicability of the development and mitigation fee waivers will remain the same; and 1 AGENDA ITEM #7, g) ORDINANCE N0. WHEREAS, the City seeks to amend RMC 4-1-210.B and 4-1-210.0 to extend the development and mitigation fee waivers to encourage additional new owner-occupied housing in Downtown Renton and the Sunset Area and additional new rental housing in the Sunset Area; NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF RENTON, WASHINGTON, DOES ORDAIN AS FOLLOWS: SECTION I. Subsection 4-1-210.B.8, Effective Date and Sunset, of Chapter 1, Administration and Enforcement, of Title IV (Development Regulations) of the Renton Municipal Code, is hereby amended as follows: 8. Effective Date and Sunset: These fee waivers are effective for building permits issued after August 13, 2001, and will sunset at the close of business on December 31,��2018, unless extended by City Council action. SECTION 11. Subsection 4-1-210.C.8, Effective Date and Sunset, of Chapter 1, Administration and Enforcement, of Title IV (Development Regutations) of the Renton Municipal Code, is hereby amended as follows: 8. Effective Date and Sunset: These fee waivers are effective for II building permits issued after September 5, 2011, and will sunset at the close of I business on December 31,��2018, unless extended by City Council action. SECTION III. This ordinance shall be effective upon its passage, approval, and thirty ' (30) days after publication. 2 AGENDA ITEM #7, g) ORDINANCE N0. PASSED BY THE CITY COUNCIL this day of , 2015. Jason A. Seth, City Clerk APPROVED BY THE MAYOR this day of , 2015. Denis Law, Mayor Approved as to form: Lawrence J. Warren, City Attorney Date of Publication: ORD:1894:11/3/15:scr 3 AGENDA ITEM #7, h) � � CITY OF - en�o� � � • � . . . � SUBJECT/TITLE: The Lofts at Second and Main-Multi-Family Housing Property Tax Exemption Agreement RECOMMENDED ACTION: Refer to Planning& Development Committee DEPARTMENT: Community& Economic Development STAFF CONTACT: Mark Santos-Johnson, Community Development Project Manager EXT.: 6584 , • . . ..,... . ... . .. , .. ,: -. .. . , _.. .. _....r,...,.;,�:.;:.: . Expenditure Required: $ NjA Tran'sfer Amendment: ` $N/A Amount Budgeted: $ N/A Revenue Generated: $ N/A Totat Project Budget:, �N1A' Cit�Share Total��aject. $�N/A , � � • � • In September 2015, the City received a Multi-Family Housing Property Tax Exemption ("Exemption") application for The Lofts at Second and Main project in the Downtown designated residential targeted area. As provided for in RMC 4-1-220, the Department of Community and Economic Development (CED)Administrator needs to approve or deny the Exemption application within 90 days of receipt of the application and, if approved, the applicant must enter into an agreement approved by Council that addresses the terms a nd conditions for The Lofts at Second and Main project to receive a partial property tax exemption upon completion. Subject to Council's approval of the agreement, the CED Administrator intends to approve the Exemption application for The Lofts at Second and Main project. The six-story mixed-use apartment project with one level of underground parking has 101 apartment units, 3,987 square feet of non-residential (commercial retail) space, and 117 structured parking spaces. : A. Issue Paper B. Draft Multi-Family Housing Property Tax Exemption Agreement . � • • �� • Approve the Exemption Agreement that addresses the terms and conditions for The Lofts at Second and Main project to receive a partial property tax exemption upon completion and authorize the Mayor to execute the agreement. AGENDA 1TEM #7, h) ' DEPARTMENT OF COMMUNITY �iT�oF & ECONOMIC DEVELOPMENT ____—---�Renton Q M E M O R A N D U M DATE: November 5, 2015 TO: Ed Prince, Council President Members of Renton City Council VIA: Denis Law, Mayor FROM: C. E. "Chip"Vincent, CED Administrator STAFF CONTACT: Mark Santos-Johnson, Community Development Project Manager x6584 SUBJECT: The Lofts at Second and Main— Multi-Family Housing Property Tax Exemption Agreement ISSUE: Should the City Council approve the Multi-Family Housing Property Tax Exemption Agreement for The Lofts at Second and Main and authorize the Mayor to execute the agreement? RECOMMENDATION: Staff recommends that the Council: (1) approve the Exemption Agreement that addresses the terms and conditions for The Lofts at Second and Main project to receive a partial property tax exemption upon completion; and (2) authorize the Mayor to execute said agreement in substantially the same form. BACKGROUND SUMMARY: On September 24, 2015, the City received a Multi-Family Housing Property Tax Exemption ("Exemption") application for The Lofts at Second and Main project in the Downtown designated residential targeted area. As provided for in RMC 4-1-220, the Department of Community & Economic Development (CED)Administrator needs to approve or deny the Exemption application within 90 days of receipt of the application and, if approved, the applicant must enter into an agreement approved by the Council that addresses the terms and conditions for The Lofts at Second and Main project to receive a partial property tax exemption upon completion. Subject to the Council's approval of the agreement, the CED Administrator intends to approve the Exemption application for The Lofts at Second and Main project. BACKGROUND: As authorized by Chapter 84.14 RCW, the Council established the Multi-Family Housing Property Tax Exemption ("Exemption") in 2003 (codified in RMC 4-1-220 as subsequently AGENDA /TEM #7, h) Ed Prince,Council President Page 2 of 3 November 5,2015 amended)to currently encourage multi-family housing development in Downtown Renton and the Sunset Area. The Exemption provision allows the value of qualified new housing construction to be exempt from ad valorem property tax for a limited period of time after completion of the projectl. However, the Exemption does not include the value of the land, existing improvements or non-housing-related improvements (e.g., commercial space). The Exemption applies to all levels of the ad valorem property tax, including the local jurisdiction, county, state, and all local taxing districts. The Exemption is in addition to any other tax credits, grants, or incentives provided by law for the multi-family housing. The City received an Exemption application for The Lofts at Second and Main project on September 24, 2015. The Lofts at Second and Main project is a mixed-use residential rental project located at 207—219 Main Avenue S (at the southwest corner of S Second Street and Main Avenue S) in Downtown Renton. The six-story mixed-use apartment project has one level of underground parking (five residential stories over one story of structured parking and ' commercial retail and residential amenity spaces, plus one below-grade level of structured parking), 101 apartment units, 132,171 sf of residential space, 3,987 sf of non-residential (commercial retail) space, and 117 structured parking spaces (101 residential ar�d 16 commercial). The estimated potential property tax savings related to the Exemption is approximately $155,046 per year($1.24 million for the eight-year period)for The Lofts at Second and Main project. This equates to a potential property tax savings of approximately $1,535 per year per housing unit ($12,281 per housing unit for the eight-year period). The City of Renton's portion of the above estimated potential property tax savings related to the Exemption is approximately$34,741 per year($277,929 for the eight-year period) for The Lofts at Second and Main project. Although the City will receive additional property tax revenue from the new commercial space and any increased assessed value for the land as a result of the new construction on site,the City will not receive property tax revenue from the � residential improvements until after the eight-year property tax exemption period. The project paid a $1,000 initial application fee and satisfies the City's Exemption eligibility requirements as outlined in RMC 4-1-220D: • The multi-family housing units are located in one or more new buildings designed for permanent residential occupancy, each with four or more dwelling units; • The project is located in the Center powntown (CD) zone as part of the Downtown designated residential targeted area; � In 2007,the Washington State Legislature passed the Engrossed Second Substitute House Bill 1910, in part,to modify the limited the property tax exemption for future eligible projects to eight years or 12 years(the longer term being available if the project provides at least 20%of the units as affordable housing). AGENDA ITEM #7. h) Ed Prince,Council President Page 3 of 3 November S,2015 • The project is a mixed-use development; and � • The project consists of a minimum of 30 dwelling units. As provided for in RMC 4-1-220F, the CED Administrator needs to approve or deny the Exemption application within 90 days of receipt and, if approved, the applicant must enter into an agreement approved by the Council that addresses the terms and conditions for The Lofts at Second and Main project to receive a partial property tax exemption upon completion. Subject to the Council's approval of the agreement, the CED Administrator intends to approve the application for The Lofts at Second and Main project. (Please see Attachment 1 for the proposed Exemption Agreement for The Lofts at Second and Main project.) The Lofts at Second and Main project is a high-profile, mixed-use project at a major gateway to Downtown Renton. The project will provide$17 mitlion in private investment in Downtown Renton, significantly expand the housing opportunities Downtown, and support the City's ongoing revitalization efforts in Downtown Renton. CONCLUSION: Renton's Multi-Family Housing Property Tax Exemption program was established to help increase housing opportunities in designated residential targeted areas, including Downtown Renton. The Lofts at Second and Main project will provide an additional 101 apartment units in Downtown Renton and further the City's 2016-2021 Business Plan Goals. cc: Jay Covington,CAO Jason Seth,City Clerk Iwen Wang,Administrative Services Administrator Gregg Zimmerman,Public Works Administrator Terry Higashiyama,Community Services Administrator Cliff Long, Economic Development Director AGENDA ITEM #7. h) ATTACHMENT 1 MULTI-FAMILY HOUSING PROPERTY TAX EXEMPTION AGREEMENT FOR THE LOFTS AT SECOND AND MAIN THIS AGREEMENT is entered into this day of , 201 by and between RENTON HERITAGE LLC, a Washington limited liability company (hereinafter referred to as the "Applicant"), and the CITY OF RENTON, a municipal corporation (hereinafter referred to as the "City"). Recitals. 1. Applicant has applied to the City for a limited property tax exemption as provided for in Chapter 84.14 RCW and RMC 4-1-220 for multi-family housing residential rental housing located in the Center powntown (CD) zone as part of the Downtown residential targeted area and the Department of Community and Economic Development Administrator has approved the application; and 2. Applicant has submitted to the City preliminary site plans, floor plans, and elevations for The Lofts at Second and Main with one hundred and one (101) new multi-family housing units to be constructed as part of a mixed-use projec (hereinafter referred to as the "Project") on property located at 207 — 219 Main Avenue S, Renton, Washington, and more fully described in Exhibit A attached hereto, (hereinafter referred to as the "Property"); and ' 3. Applicant is the owner of the Property; and 4. The City has determined that the Project will, if developed as proposed, satisfy the requirements for a Final Certificate of Tax Exemption. NOW, THEREFORE, the City and Applicant do mutually agree as follows: 1. Conditional Certificate of Acceptance of Tax Exemption City agrees, upon execution of this Agreement following approval by the City Council, to issue a Conditional Certificate of Acceptance of Tax Exemption, which ' conditional certificate shall expire three (3) years from the date of approval of this Agreement by the City Council, unless extended by the Administrator of the Department of Community and Economic Development (or any other City office, department or agency that shall succeed to its functions), or his or her designee, (hereafter referred to as "Administrator") as provided in RMC 4-1-2201. . Multi-Family Housing Property Tax ExemptionAgreement � The Loft at Second and Main 1 AGENDA ITEM #7, h) 2. AQreement to Construct Multi-Familv Housina. a. Applicant agrees to construct the Project on the Property substantially as ' described in the site plans, floor plans, and elevations on file with the City's Department of Community and Economic Development or its functional successor (hereafter referred to as "Department") as of the date of the City Council's approval of this Agreement, subject to such modifications thereto as may be required to comply with applicable codes and ordinances; provided, that in no event shall such construction provide fewer than thirty (30) new multi-family housing dwelling units designed for permanent residential occupancy, nor shall permanent residential housing comprise less than fifty percent (50°/a) of the gross floor area of the mixed-use project constructed pursuant to this Agreement. b. Applicant agrees to construct the Project on the Property to comply with all applicable zoning requirements, land use regulations, and building and housing code requirements, including but not limited to the City's development regulations in Title IV of the RMC and the City's applicable design standards and guidelines. The Applicant further agrees that approval of this Agreement by the City Council, its execution by the Mayor, or issuance of a Conditional Certificate of Acceptance of Tax Exemption by the City pursuant to RMC 4-1-220F3 in no way constitutes approval of proposed improvements on the Property with respect to applicable provisions of the City's development regulations included in Title IV of the RMC or any other applicable regulation or obligates the City to approve proposed improvements to the Property. c. Applicant agrees that the Project will be completed within three (3) years from the date of approval of this Agreement by the Council, unless extended by the Administrator for cause as provided in RMC 4-1-2201. 3. Reauirements for Final Certificate of Tax Exemption. Applicant may, upon completion of the Project and upon issuance by the City of a temporary certificate of occupancy, or a permanent certificate of occupancy if no temporary certificate is issued, request a Final Certificate of Tax Exemption. The request shall be in writing directed to the Administrator and be accompanied by the following: a. A statement of expenditures made with respect to each multi-family housing unit and the total expenditures made with respect to the entire Project and Property; b. A description of the completed work and a statement of qualification for the multi-family housing property tax exemption; Multi-Family Housing Property Tax Exemption Agreement The Loft at Second and Main 2 AGENDA 1TEM #7. h) c. A statement that the Project was completed within the required three-(3) year period or any authorized extension and documentation that the Project was completed in compliance with the terms of this Agreement; d. The total monthly rent of each multi-family housing unit rented to date; e. The income of each renter household to date at the time of initial occupancy; and f. Any such further information that the Administrator deems necessary or useful to evaluate the Project's eligibility for the Final Certificate of Tax Exemption. 4. Aqreement to Issue Final Certificate of Tax Exemption. The City agrees to file a Final Certificate of Tax Exemption with the King County Assessor within forty (40) days of submission by the Applicant of all materials required by paragraph 3 above, if Applicant has: a. Successfully completed the Project in accordance with the terms of this Agreement and RMC 4-1-220; b. Filed a request with the City for a Final Certificate of Tax Exemption with the Administrator and submitted the materials described in paragraph 3 above; I c. Paid the City a fee in the amount of one thousand dollars ($1,000); and d. Met all other requirements provided in RMC 4-1-220 for issuance of the Final Certificate of Tax Exemption. 5. Duration of the Propertv Tax Exemption Subject to the terms of this Agreement and the requirements of RMC 4-1-220, the value of improvements qualifying under RMC 4-1-220 is exempt from ad valorem property taxation for eight (8) successive years beginning January 1 st of the year immediately following the calendar year of issuance of the final certificate of tax exem tion. P 6. Annual Certification and Report. Within thirty (30) days after the first anniversary of the date the City issued the Final Certificate of Tax Exemption and each year thereafter for the duration of the tax , exemption period noted in paragraph 5 above, Applicant agrees to file an annual repo�t with the Administrator. The report shall contain such information as required by RCW Multi-Family Housing Property Tax Exemption Agreement The Loft at Second and Main 3 AGENDA ITEM #7, h) 84.14 and as the Administrator may deem necessary or useful, and shall at a minimum include the following: a. A statement of the occupancy and vacancy of the multi-family housing units during the twelve months ending with the anniversary date; b. A certification that the multi-family housing units, Project, and Property have not changed use since the date the City issued the Final Certificate of Tax Exemption, c. A statement that the multi-family housing units, Project, and Property continue to be in compliance with this Agreement and the requirements of RCW 84.14 and RMC 4-1-220; d. A description of any improvements or changes to the Project made after the City issued the Final Certificate of Tax Exemption; e. The total monthly rent of each multi-family housing unit rented or the total sale amount of each multi-family housing unit sold to an initial purchaser during the twelve months ending with the anniversary date; f. The income of each renter household at the time of initial occupancy and the income of each initial purchaser of owner-occupied multi-family housing units at the time of purchase during the twelve months ending with the anniversary date; g. Any additional information requested by the City pursuant to meeting any reporting requirements under RCW 84.14; and h. Any such further information that the Administrator deems necessary or useful to evaluate the Applicant's compliance with this Agreement and the requirements of RCW 84.14 and RMC 4-1-220. 7. No Violations for Duration of Exem�tion. For the duration of the property tax exemption granted under RMC 4-1-220 and noted in paragraph 5 above, Applicant agrees that the Project and the Property will have no violations of applicable zoning requirements, land use regulations, and building and housing code requirements, including but not limited to the development regulations in Title IV of the RMC, for which the Department of Community and Economic Development or its functional successor shall have issued a notice of violation, citation or other notification that is not resolved by a certificate of compliance, certificate of release, withdrawal or otherwise, within the time period for compliance, if any, provided in such notice of violation, citation or other notification or any extension of Multi-Family Housing Property Tax Exemption Agreement The Loft at Second and Main 4 AGENDA ITEM #7. h) the time period for compliance granted by the Department of Community and Economic Development. 8. Notification of Transfer of Interest or Chan4e in Use. Applicant agrees to notify the Administrator within thirty (30) days of any transfer of Applicant's ownership interest in the Project, the Property or any improvements made to the Property. Applicant further agrees to notify the Administrator and the King County Assessor within sixty (60) days of any change of use of any or all of the multi- family housing units on the Property to another use. Applicant acknowledges that such a change in use may result in cancellation of the property tax exemption and imposition of additional taxes, interest, and penalty pursuant to State law. 9. Cancellation of Exemption - Appeal. a. The City reserves the right to cancel the Final Certificate of Tax Exemption if at any time the multi-family housing units, the Project, or the Property no longer complies with the terms of this Agreement or with the requirements of RMC 4-1- 220, or for any other reason no longer qualifies for a property tax exemption. b. If the property tax exemption is canceled for non-compliance, Applicant acknowledges that state law requires that an additional real property tax is to be imposed in the amount of: [a}the difference between the property tax paid and the prope�ty tax that would have been paid if it had included the value of the nonqualifying improvements, dated back to the date that the improvements became nonqualifying; [b] a penalty of 20% of the difference calculated under paragraph (a) of this paragraph 9; [c] interest at the statutory rate on delinquent property taxes and penalties, calculated from the date the tax would have been due without penalty if the improvements had been assessed without regard to the exemptions provided by Chapter 84.14 RCW and RMC 4-1-220. Applicant acknowledges that, pursuant to RCW 84.14.110, any additional tax owed, together with interest and penalty, become a lien on the Property and attach at the time the Property or portion of the Property is removed from multi- family housing use or the amenities no longer meet applicable requirements, and that the lien has priority to and must be fully paid and satisfied before a recognizance, mortgage, judgment, debt, obligation, or responsibility to or with which the Property may become charged or liable. Applicant further acknowledges that RCW 84.14.110 provides that any such lien may be foreclosed in the manner provided by law for foreclosure of liens for delinquent real property taxes. c. Upon determining that a tax exemption is to be canceled, the Administrator shall notify the property owner by certified mail, return receipt requested. The property owner may appeal the determination in accordance with RMC 4-1-220L2. Multi-Family Housing Property Tax ExemptionAgreement The Loft at Second and Main 5 AGENDA ITEM #7, h) 10. Amendments. No modification of this Agreement shall be made unless mutually agreed upon by the parties in writing and unless in compliance with the provisions of RMC 4-1-220H, including but not limited to the Applicant's payment of a five hundred dollars ($500) contract amendment fee. 11. Bindinp Effect. The provisions, covenants, and conditions contained in this Agreement are binding upon the parties hereto and their legal heirs, representatives, successors, assigns, and subsidiaries. 12. Recordinq of Aareement. The Administrator shall cause to be recorded at the Applicant's expense, or require Applicant to record, in the real property records of the King County Department of Records and Elections, this Agreement and any other documents as will identify such terms and conditions of eligibility for exemption as the Administrator deems appropriate for recording. 13. Audits and Inspection of Records. Applicant understands and agrees that the City has the right to audit or review appropriate records to assure compliance with this Agreement and RMC 4-1-220 and to perForm evaluations of the effectiveness of the multi-family housing property tax exemption program. Applicant agrees to make appropriate records available for review or audit upon seven days' written notice by the City. 14. Notices. All notices to be given pursuant to this Agreement shall be in writing and shall be deemed given when hand-delivered within normal business hours, when actually received by facsimile transmission, or finro business days after having been mailed, postage prepaid, to the parties hereto at the addresses set forth below, or to such other place as a party may from time to time designate in writing. APPLICANT: Aquarius Global LLC 11747 NE 1St Street, Suite 300 Bellevue, WA 98005 Phone: 425-451-8188 Fax: 425-451-8498 Attention: James G.S. Hwang, Manager Multi-Family Housing Property Tax Exemption Agreement The Loft at Second and Main g AGENDA ITEM #7. h) CITY: City of Renton Department of Community and Economic Development 1055 South Grady Way Renton, Washington 98055 Phone: (425)430-6592 Fax: (425) 430-7300 Attention: Administrator 15. Severabilitv. In the event that any term or clause of this Agreement conflicts with applicable law, such conflict shall not affect other terms of this Agreement which can be given effect without the conflicting terms or clause, and to this end, the terms of the Agreement are declared to be severable. u ti- ami y ousing roperty ax xemption greement The Loft at Second and Main 7 AGENDA ITEM #7, h) IN WITNESS WHEREOF, the parties hereto have executed this Agreement on the day and year written above. RENTON HERITAGE LLC A Washington Limited Liability Company By: James G.S. Hwang Managing Member Aquarius Global LLC CITY OF RENTON Denis Law, Mayor APPROVED AS TO FORM: ATTEST: City Attorney Jason Seth, City Clerk Multi-Family Housing Property Tax ExemptionAgreement The Loft at Second and Main 8 AGENDA /TEM #7, h) STATE OF WASHINGTON ) ) ss. COUNTY OF KING ) On this day of , 201 , before the undersigned, a Notary Public in and for the state of Washington, duly commissioned and sworn, personally appeared before me James G.S. Hwang, to me known to be the Managing Member of Aquarius Global LLC that executed the within and foregoing instrument and acknowledged said instrument to be the free and voluntary act and deed of said party, for the uses and purposes therein mentioned, and on oath stated that he was authorized to execute said instrument. In witness whereof I have hereunto set my hand and affixed my official seal the day and year first above written. NOTARY PUBLIC Printed Name: Residing at My commission expires [notary seal] ' I Multi-Family Housing Property Tax Exemption Agreement The Loft at Second and Main 9 AGENDA ITEM #7, h) STATE OF WASHINGTON ) ) ss. COUNTY OF KING ) On this day of , 201 , before the undersigned, a Notary Public in and for the state of Washington, duly commissioned and sworn, personally appeared before me Denis Law, to me known to be the Mayor of the City of Renton, the municipal corporation that executed the within and foregoing instrument, and acknowledged said instrument to be the free and voluntary act and deed of said municipal corporation for the uses and purposes therein mentioned and on oath stated that he was authorized to execute said instrument. In witness whereof I have hereunto set my hand and affixed my official seal the day and year first above written. NOTARY PUBLIC Printed Name: Residing at My commission expires [notary seal] Multi-Family Housing Property Tax ExemptionAgreement The Loft at Second and Main 10 AGENDA /TEM #7, h) MULTI-FAMILY HOUSING PROPERTY TAX EXEMPTION AGREEMENT EXHIBIT A LEGAL DESCRIPTION LOTS 16 THROUGH 20, INCLUSIVE, BLOCK 13, TOWN OF RENTON, ACCORDING TO THE PLAT THEREOF RECORDED IN THE VOLUME 1 OF PLANTS, PAGE 135, IN KING COUNTY, WASHINGTON; EXCEPT THE WEST 5 FEET OF SAID LOT 16 DEEDED TO THE CITY OF RENTON BY QUIT CLAIM DEED RECORDED MAY 7, 1979 UNDER RECORDING NO. 7905070629; AND EXCEPT THE WEST 5 FEET OF SAID LOT 17 DEEDED TO THE CITY OF RENTON BY QUIT CLAIM DEED RECORDED MAY 7, 1979 UNDER RECORDING NO. 7905070628. SITUATE IN THE CITY OF RENTON, COUNTY OF KING, STATE OF WASHINGTON. Exhibit A Multi-Family Housing Property Tax Exemption Agreement x i it — ega escripUon The Lofts at Second and Main i AGENDA ITEM #7. i) .,/�"'''�" ` ` c�TY aF �rlt��'1 � . . . . . , SUBJECT/TITLE: Group Health contract renewal RECOMMENDED ACTION: Council Concur DEPARTMENT: Human Resources/ Risk Management STAFF CONTACT: Nancy Carlson, Administrator EXT.: 7656 Expenditur�Required: $2�.9,�7�� Transfer At�iendment $ N/A � Amount Budgeted: $ 219,721 Revenue Generated: $ N/A Tptat Project Budge� $N��::s"�`-,;§� : C�ty Shar��at�a,.�`�;��e�t� ° ,.�:��'.� , . r�..,.. .,, .,�. ,2. .. . , . ..,<,�`.�. :�rmr.s� ".�'ex:�.a'�.k:c''.'a :G,4 . .,s..;.�rc . .. +.z,ab .�a.w..s.,re.. °�°'sr.&, r ar,.��d:�} „ . �Sn, ... ...... . , . ,. � � � � � Council approval is needed for the annual renewal of Group Health Contract No. 0057500 for LEOFF I Retirees, and Contract No. 1162600 for all active employees. Funding has been previously approved by Council in the 2016 Budget.The revisions are applicable to both of the renewal contracts. As in prior years, Group Health does not send confirming contracts for signature until mid-year.The City Attorney's Office has reviewed and approved the 2016 contracts. Complete copies of the contract are available for review. : A. 2016 rates confirmation B. Contract revisions as of mid-October 2015 � � • • �� • Approve the annual Group Health Cooperative Medical contracts and authorize the Mayor and City Clerk to sign. , �� r � * � .--�� reeR`ent�SS`}ed� .�--- e�veca9e a9 �.---.,'""�' tan�°{� P e • a p�ioan�s a� CON$a�th � � # to�nf�ctn�ate e Shaii cA�s��tute p Gt�u Qf Re�to� � " � � � � • S�gn be�ow ��e�overa9 C�ty11626�Q • � p n sl•P�ea p iu�dUe{O R 9yp36 � � - ^ g Eo��oWin9 �e�t o{a�Y cert Q ,��g6.26 tes riave p��Q�S a d a9Cees that paym ��85a17 d�J ��,2?3.9� e��oW ra er a��ow� 1,�43.58 ��pUcant�� 2 3g5,83 `�e��efits it e �S �2,��e 1tn�p4'��ti�ve �mUm�a�ne standard fo GrouP�am�� ` ��1� ��6y Gt°uP ts and tihe m�n cn v Nu Gro�P EEJ2+C Co�e�a9e p�a o�eia9e ceqU�remen ��St1 essen<<ai� �esa9e. E�S�Z� o{�xc�ds the n`��'+�u� ta�dard for creditabie c° �tat�'�T�e� "/,"`..-� th�s hea\th�Overa98 mge�s �the Med��re Pa�p 5 p<o�ides• ��era9e en ,.--� �t p�escriPtwn dru9 '(h�s��tPaUe in m Z pate� �„ � � m �, S�9�a�`�rg "J . i� �� 526(''C'07-14�5 '�l�� ----_-- � � " i � ,,, i • � � � � � . � � � � . * � verag��9�eeme�t issued. 1 * tance of the co � r " � n below to confirm rates. li�nt s a�ep . lan(s).P�as�sig e shaii constttute app Care remium due for the covefa9 Group Neaith uoted for the foilowina P�en�of any P Leaff I Retirees ' The belnw rates have been�i�s and agrees that p Y City of Renton- APpiicant further acknowiedg 0057500 k RQ-9703T $892.07 �Group Name g 1,413.75 �Graup Number ' EEI 1 $535•65 � S} $717.$6 $416.35 _ { �C� t p,p,C` �� rative Rates bY Tier t Graup Health Coape neflts�t � Caverage Qrovided BY value standard for the be 'aAedicare Ratss bY Tier s the mi��mum essential coverage��u��ments and the m�n�mum This heaith coverage meets or exc.eed � provides. Date Signature, � � m z � o n - m � � V . �: 526GGU7-a4�4 --- � AGENDA ITEM #7. i) GROUP HEALTH COOPERATIVE CONTRACT REVISIONS Effective January 1, 2016 (Created 5/8/15) This is the most current list of revisions, but this list is subject to change at any time. CONTRACT CHANGE EXPLANATION Benefit Details A business decision has been made to include cardiac rehabilitation as part of the rehabilitation benefit. As such,the cardiac rehabilitation provision has been deleted. In accordance with federal department of labor requirements,post-mastectomy bras/forms(as reflected in the Devices and Equipment provision)are limited to 2 every 6 months,with replacements covered within this 6 month period when medically necessary due to a change in the Member's condition. In accordance with Washington state requirements,prescriptive oral agents and blood glucose test strips(as reflected in the Diabetic pharmacy supplies provision)are covered for a supply of 30 days or less per item. A business decision has been made to include a description of specialty drugs, and to include exclusion clarifications regarding over-the-counter equivalent drugs and compound drugs,within the Drugs—Outpatient Prescription provision. A clarification regarding emergency services which include professional services,treatment and supplies,facility costs,outpatient charges for patient observation and medical screening exams required to stabilize a patient has been added to the Emergency Services provision. A clarification regarding coverage for infusion therapy has been added. A clarification regarding homebirths being considered an outpatient service has been added under the Maternity and Pregnancy provision. In accordance with federal department of labor requirements,a clarification has been made to the Plastic and Reconstructive Surgery provision regarding reconstructive surgery of the non-diseased breast to produce a symmetrical appearance(following a mastectomy). A business decision has been made to include pulmonary and cardiac rehabilitation to the Rehabilitation provision,and to revise the limits to reflect 30 inpatient days and 45 outpatient visits per calendar year. General Exclusions The exclusion regarding benefits and related services,supplies and drugs that are not medically necessary for the treatment of an illness,injury or physical disability have been clarified to include the exception for those services required by federal or state law. Eligibility provision The certificate of creditable coverage provision has been removed as this federal requirement no longer applies. GHC(5/8/15) 1 AGENDA /TEM #7,j) � CITY OF ~ - -- enta� � . . . . . . , SUBJECT/TITLE: Renewal of HMA(Healthcare Management Administrators)contract for 2016 RECOMMENDED ACTION: Council Concur DEPARTMENT: Human Resources/ Risk Management STAFF CONTACT: Nancy Carlson,Administrator EXT.: 7656 ' • � �: � , a ::� --��.� � {�-� ,,�... Expenditure Required: � $32�,2� Transfer Ameni�ment -� $N�A " Amount Budgeted: $ 323,202 Revenue Generated: $ N/A °.S�taE Prii�ct Bud et � , b ' : .�.�:,..._ n r�, , �, .� . . _� ;$N1aA.�.g.��,�`��:.�� City SharepTQ�ai;t,�',��e�.��x_�:,e�.rN�A °' � • • � • While the contract itself is unchanged,the fee schedule for HMA's (Healthcare Management Administrators) senrices has been revised. HMA and Envision Rx continue to provide administrative services for the City to handle its medical, dental and prescription claims within our self-funded plan.The total cost for services will be approximately$41.50 per employee, per month.The fees include prescription services, administration of medical and dental claims, and rights to use the Regence Preferred Provider Network, as well as utitization/large case management, COBRA and HIPAA administration services. Funds for these services were included in the 2016 Budget. : A. Revised HMA fee schedule for 2016 � ' • �� • Approve the 2016 Revised Fee Schedule and Administrative Services Agreement for medical/dental and prescription claims processed by HMA and Envision Rx, and authorize the Mayor and City Clerk to sign the Agreement. AGENDA /TEM #7,j) -I-•IMA EXHIBIT A SCHEDULE OF FEES For Citv of Renton/#4034 5034 Contract Period:O1/O1/2016 through 12/31/2016 � Administrative Fees Rates for the contracted time period apply to services administered by HMA.Fees for outside vendors are subject to change at any time.HMA fees and comxnissions may remain in effect beyond the above-stated term until changed by mutual written agreement of the parties. Claim Administrarive Fees Fee I Description $19.85 PEPM for Medical Plan Administration—Now includes ACA Compliance fee If qualifying for an incentive discount all signed documents must be received by the 7�'calendar day of the month prior to the effecrive date.New PEPM with discount: $19.65 $3.25 I PEPM Dental Indemniry Plan Administration $1.50 PEPM for HMA National Dental Network Access fee — ($0.50 retained by HMA, $1.00 remitted to Regence) ($1.50 PEPM in addition to the Dental Plan Administrarion.) $0.65 PEPM Vision Hardware $5.50 PEPM for HMA Preferred with PHCS National PPO Network HMA Preferred provides access to Regence BlueShield in Western Washington,Asuris NW Health in Eastern Washington,Regence Bh�eCross Blc�eShield of Oregon,Regence BlceeShield of Idaho and Regence BlueCross BlueShield of Utah. PHCS provides network access in all other states. No Bl�eeCard access is provided. *A 30%of savings fee will be charged when a WA, OR,ID or UT employee or dependent seeks care oi�tside of these states. $10.00 Per Claim Medicare re-pricing fee for Kidney Dialysis benefit—only applicable if the kidney dialysis benefit is accepted 30%of Claims Negotiation,Hospital Bill Audit,and Out of Network Claim Re-pricing Savings Services as outlined in Section 4(g)of Agreement 4k(i/x)of the Agreement of Exhibit B $3.75 PEPM Live Well Base Program(Case Managernent,Managed Behavioral Health and HMA TPA Exhibit A Page 1 of 5 revision: 815.2015 BB AGENDA ITEM #7.j) IUtilization Review) $0.75 I PEPM Pharmacy Benefit Management(PBM)coordination and interface fee External Vendor Administrative Services Fee I Description $4.05 I Envision Rx administrative fee$4.05 to Envision Rx,$0.00 to HMA Broker Fees Fee I Description $2,950.00 I PEPM Broker Commission Fee payable to RL.Evans , Additionat Services Accept Decline I Service Description& Cost � � Option 1Willamette Dental{HMA retains 2.5%) ' Employee Only$00.00 Employee+Spouse$00.00 Employee+Children$00.00 Family$00.00 �, � � Option 2 Willamette Dental(HMA retains 2.5%) I, Employee Only$00.00 I Employee+Spouse$00.00 Employee+Children$00.00 Family$00.00 Please contact AM for quote � � I $5.25 PEPM for Total Enroll Elite � � I $2.75 PEPM for Total Enroll COBRA Services$1.35 PEPM � � �MedicaURac �Vision �Dental FSA Administration$5.25 per enrollee per month without debit card($500 annual ❑ ❑ fee) FSA Administration$6.25 per enrollee per month with debit card($500 annual ❑ ❑ fee) HMA TPA Exhibit A Page 2 of 5 revision: 8.25.2015 BB AGENDA ITEM #7,j) ACA Support Services Buy Up: Please note:clients must elect the service for 2015 tax year reporting due in early 2016 by Sept 1,2015 Option 1-1094&1095 Filing Service ❑ � ❑Please refer to Engagement Letter for Specific Fees Option 2—Full Time Eraployee Tracking&Calculation ❑Please refer to Engagement Letter for Specific Fees � 1 � ( Fiduciary Services: $2.00 PEPM ❑ � I HRA Standard Benefit Design$4.00 per enrollee per month($150.00 monthly minimum) ❑ I � f HRA Enhanced Benefit Design$7.50 per enrollee per month($150.00 monthly � minimum) HRA Intcgrated MedicaURx Deductible$9.00 per enrollee per month($250.00 ❑ � monthly minimwn) Integrated Maximum Out of Pocket(MOOP)for PPO and Non-Qualified � 0 HDHP(Shared Accumulator)Fee Schedule: $.90 per earollee per month ❑ ( � I QHDHP Services$.90 per enrollee per month MDLive Telehealth: Medical � � �$1.00 PEPM+$38/visit Behavioral Health n$.30 PEPM+Per visit consultin�fee I Live Well Lite Health Promotion Program-$2.75 PEPM—includes Web Tools � � � health Risk Quesrionnaire.WELCOA membership and 4 mailings to employees. I � ( Live WeU Standard Health Promotlon Progrsm-$4.40 PEPM-includes � ! Disease Management,Web Tools,and Health Risk Questionnaire. Live Well Enhanced Health Promorion Program-56.75 PEPM—adds Lifestyle � � � Coaching to the Standard Health Promotion Program-Additional fees may apply dependent upon%of participarion—See product description for details. " 1 I � I Llve We1124 HourNurse Line 50.65 PEPM 'R��U� �J� M D u�e , ❑ I � I Live Well Matemity Program—$350.00 per case Live Well Biometric Screening—$60.00 per participant(25 minimum ❑ �- participation) � I � Live Well Incentive Gift Card Administration-$0.30 PEPM+Cost of incentive Live Well Member Communication Packages: ❑ � ❑Option 1 -$0.85 PEPM ❑Option 2-$135 PEPM Employee Assistance Program(EAP)PEPM Check one if accepted: ❑ ❑ ❑ $1.25 PEPM 3 session model ❑ 51.50 PEPM 4 session model HMA TPA Exhibit A Page 3 of 5 revision: 8.25.2015 BB AGENDA 1TEM #7,j) � � L] $1•75 PEPM 6 session model Consolidated Billing Option 1-with Premium Remittance and NO Eligibility ❑ ❑ Administration$2.00 PEPM Consolidated Billing Ophon 2-with Premium Remittance and Eligibility � � Administration $3.00 PEPM and$0.50 PEPM for any vendor(s)other than WDS, Willamette Dental Group or VSP I Summary Plan Document(SPD)$1,000 Re-write Fee(for the lg`SPD and$250 for ❑ ❑ each additional) � � I Summary Plan Document(SPD)incorporation of amendments$500.00 per SPD ❑ I ❑ I Amendment Document$125.00 per Amendment � I � Coordination of SPD prinking services-cost+20% ❑Summary Benefit Coverage$350.00 per plan standard delivery—4 weeks from ❑ � receipt of request. ❑ Summary Benefit Coverage$700.00 per plan rush delivery—Less than 4 weeks from receipt of request. � � ( ID recazd fee$2.00 per employee(Incidental reissue no cost) Excess Loss 5ervices In compensation for the work that HMA does to support excess loss carriers, HMA receives an administrative allowance of 2.5% from most of our preferred carriers. If you are using a non- prefened cazrier,there will be an interface fee of 3.0%of excess loss premium that is assessed to the group in lieu of the administrative allowance. These excess loss fees will be reflected on the invoice on a PEPM basis. HMA reserves the right to decline to work with non-preferred excess loss camers. If we agree to administer a plan with an excess loss carrier that is not preferred,we will charge an interface fee of 3.0°/a of excess loss premium and will ask for a signed waiver of liability from the group. For carriers where we are not an approved benefit administrator,HMA reserves the right to decline to proceed with the approval process at our discretion. For new groups, the interface fee for non-preferred carriers is based on the carriers projected enrollment and premium rates. For renewing groups, the interface fee for non-preferred carriers is calculated based on the final stop loss renewal premium rates and enrollment for the last month of the prior contract period. The rates are calculated as follows: [.03 x(single Specific Stop Loss Premium Rate x single enrollment)+(family Specific Stop Loss Premium Rate x family enrollment)+(Aggregate Stop Loss Premium Rate x total enrollment)]/ Total Enroliment HMA TPA Exhibit A Page 4 of 5 revision: 8,25.2015 BB AGENDA ITEM #7.j) Acceptance IN WIT'NESS WHEREOF, the parties have caused this Agreement to be executed by their duly authorized representatives on the respective dates set forth below,effective as of the day and year first above written. City of Renton Healthcare Management Administrators,Inc. I By: By: Name: Name: David Snodgrass Title: Title: President,CEO Date: Date: HMA TPA Exhibit A Page 5 of 5 revision: 8.25.2015 BB AGENDA ITEM #7. k) � CITY OF �r1�0�'1 � . . . . . , SUBJECT/TITLE: CAG-12-008,Supplemental Agreement No.4-Coast& Harbor Engineering:Shoreline Mitigation Project RECOMMENDED ACTION: Refer to Transportation (Aviation) Committee DEPARTMENT: Transportation Systems Division STAFF CONTACT: Kamran Yazdidoost, Airport Civil Engineer EXT.: 7473 . •. , �-�s�c3�;..�<;.�.., .. . ...-. .��r-,d,��;�.�;�:�:-��.;..,,.,.M,-, Expenditure Required: $55,��0 ' Transfer Ameniime�t: $40,000 � Amount Budgeted: $ 50,000 Revenue Generated: $ N/A �,�� ":�i�� Tota1 Proje�t�u�p��.&� .�, ��t�,��:�{.rt . City,Shar�?��`�. ��..� $5��330 �.� , � � • � • The seaplane base dredging phase of the Seaplane Base Dredging& Shoreline Mitigation Project was completed in January 2014. A scope of work for the shoreline mitigation phase of the project has been identified. Coast & Harbor Engineering was selected to complete both phases of the project. Coast & Harbor Engineering has submitted Supplemental Agreement No. 4 to CAG-12-008 that will extend the contract to January 31, 2017 and increase it by$55,330.00,to a total of$203,410.55. The scope of work includes permitting, preliminary and final engineering, preparation of bid documents specific to the shoreline mitigation phase of the project and bidding assistance that will provide a feasibility assessment for removal of woody debris from the Cedar River delta. A transfer of$40,000 from the Airport ending fund balance to the Seaplane Base Dredging &Shoreline Mitigation Project will be included as part of the 2015 carry forward budget adjustment to cover the increase 'I in cost. � A. Supplemental Agreement No.4 to CAG-12-008 � • • � • Authorize the Mayor and City Clerk to execute Supplemental Agreement No. 4 to CAG-12-008 with Coast& Harbor Engineering for the Seaplane Base Dredging&Shoreline Mitigation Project and amend the Maintenance Dredging&Shoreline Mitigation CIP fund, (422.725080.016.594.46.63.000) by transferring $40,000 from the Airport ending fund balance. The transfer will be included as part of the 2015 carry forward budget adjustment. i A GENDA I TEM #7. k) 1 � . I{ � De�a�?�ansporta�ion ! ! Supplemental Agreement �'nizationandAddress Coast & Harbor Engineering i Number 4 110 Jamee Street, Suite 101 ' � Sdmonds WA 98020 � Original Agreement Number � CAG-12-008 PhO�: 425-778-6042 � � Project Number Execution Date Compietion Date i/zs/zoiz a/za/Zoi6 � Project Title New Maximum Amount Payable � Seaplane Base Mainteaance Dredge Project i 203,410.55 i ; Descri�tion�work Perm tting aad final engineering services for the shoreline mitigation project j following the maintenancc dredging work at the Will Rogera Wiley Post Memorial ; Seaplane Base completed in January 2a14. i � ' The LoCai Agency of City of Renton � desires to supplement the a�reemeM entered Into with Coast & Harbor Engineering ( and executed on 1/z5/2oi2 and ident�led as Agreement No. cAc-iz-ooe � All provisions in the basic agreement remain in effect except as expressly modified by this supplement. The changes to the agreement are described as foNows: I Section 1,SCOPE OF WORK,is he�chan�d to read: I', Add Taske 10-15 - see attac ed Exhibit A-2 �� Section N,TIME FOR BEGINNING AND COMPLETION.Is amended to change the number of calendar days fo� COrnpleti0�of the Wolic to fead: January 31, 2017 IU Section V,PAYMENT,shall be amended as foliows: Addition of Taeks in the smount of $55,330 to exfating amount of $148,080.55 $203,410.55 as set forth in the attached Exh�it A,and by this reference made a part of this supplement. If you concur with this supplemeM and agroe to the changes as atated above,please sign in the appropriete speces below and retum to this office for final action. By. R. Shane PhilAips, Principal Engineer By, Denis Law, Mayor � -�'��i� Consultant Signature`�"� Apprvving Authority Signature DOT Fortn 110-083 EF �� Reviled 9f2003 AGENDA ITEM #7. k) f COAST & HARBOR ENGINEERING A Division of Ha[ch Mott MacDonald CAG 12-008 Exhibit A-2—Scope of Work CITY OF RENTON —WILL ROGERS WILEY POST MEMORIAL SEAPLANE BASE MAINTENANCE DREDGING PROJECT—SHORELINE MITiGATION PROJECT Introduction: The City of Renton(City)requested Coast&Harbor Engineering(CHE), a Division of Hatch Mott MacDonald to devetop a scope of services for providing permitting and fmal engineering services for the shoreline mitigation project following the maintenance dredging work at the Will Rogers Wiley Post Memorial Seaplane Base completed in January 2014. The work outlined within this scope of work will commence upon execution of this amended scope of work pursuant to the original contract#CAG 12-008 between CHE and the City. The shoreline mitigation pecmitting support,preliminary and final design, and bidding assistance work outlined witlun this scope of work will include the removal of approximately 75' of existing bulkhead materials(i.e. concrete slabs,various debris and approximately 6-8 treated timber piles). Additionally,new rip rap shoreline prot�ction, a spawning gravel beach and Large Woody ' Material(LWM)will be designed for installation along the length of the 75' shoreline mitigation area. Assumptions: Assumptions that are part of the scope of work are as follows: • All work outlined in this scope of work is limited to that described by the Washington State Department of Fish and Wildlife(WDFW)Hydraulic Project Approval(HPA) #131474-1 dated August 23,2013. � Widener&Associates will be responsible for all permitting related support(i.e. permit document preparation/modification and agency correspondence). • CHE will be responsible for the development of the Plans, Specifications and Estimates , (PS&E)in the final design of all shoreline mitigation work. This scope of work extends , through the completion of final PS&E and project bidding. • It is assumed that preparation of the final bid package will be completed by the City. • Assistance during the project construction phase is not included with this SOW. Scope of Work: Task 10 Permitting Support(Widener & Associates) Purpose: The purpose of this task is to provide permitting support and coordination with agencies (local, state and federal). Scope: Produce or modify and provide permit coordination with agencies for the Section 404, 401, and HPA permits associated with the mitigation work. Assist in developing the water quality monitoring plan. City of Renton Seapiane Base Maintenance Dredging Project-Mitigation October 23, 2015 Scope of Work—Amendment 2 Page 1 of 4 AGENDA ITEM #7, k) � COAST&HARBOR ENGINEERING A Divlsion olHotch Mott MatOonold Task 10 Deliverable: Monthly Perniitting Progress Reports. P�•oductio�r and/or modification to the existing permits�•eqt�ired to complete the mitigation wo�•k. Responding to agency comme�its a�:d qcrestions as reqcri►•ed. Dr•nft Water Qcraliry Mo�iitoririg Plan. Respo�rse to bidder(s)and City questions during the bidcting phase of the projeet. Task 11 Preliminary Engineering Analysis and Design (CHE) Purpose: The purpose of this task is to develop preliminary-level engineering and construction details based upon the mitigation work outlined within the WDFW's HPA dated August 23, 2013, for the purpose of assembling necessary technical information and drawings for regulatory permit application(s). Scope: Preliminary engineering analysis and design(50%design level) for the proposed shoreline mitigation project will be conducted as part of this task. Preliminary engineering analysis for the existing shoreline enhancement area(approximately 75 feet of shoreline east of the Seaplane Base)will include a delineation of the 75' mitigation area and materials to be removed from the site(e.g.concrete slabs, timber piles, metal debris,etc.). The size of rip rap necessary for shoreline protection will be determined and incorporated into the drawings based upon the results of limited numerical modeling of wind waves and riverine currents(100-year peak flo�) at the site. Preliminary engineering analysis will also include developing the geometry of a gravel beach to be constructed waterward of the installed rip rap. An evaluation of LWM plaeement will be conducted and locations will be identified and incorporated into the permitting drawings. Preliminary design work will consist of producing 50°/a design tevel permit drawings and developing a technical description of the proposed work. The 50% level engineering design plans will be assembled in U.S. Army Corps 8.Sx11 format for JARPA drawings. Development of a . preliminary level engineer's estimate of construction cost will also be developed. Task 11 Deliverable: A project technicc�l descriptia� and SO%design drawi�igs (in JAIZPA format)jor permitting will be siibmitted to the City and incorporated in permitting doct�mentation. A preliminary(50%)e»gineer's cost estimate for constrc�ction. Task I1 x>ork will be completed prior to February 1, 2016. Task 12 Final Engineering Design (CHE) Purpose: The purpose of this task is to develop a Basis of Design, final stamped plans,technical specifications,and fmal cost estimates for the project. Scope: • Basis of Design o Updated Basis of Design to reflect current project criteria,design criteria and scope of work. • Final Engineering Design o This task includes finalizing the engineering design for the permitted, shoreline mitigation design and producing the associated drawings and technical specifications and cost estimates(PS&E) for bidding and construction. A 90%completion level set City of Renton Seaplane Base Maintenance Dredging Project-Mitigation � October 23, 2015 Scope of Work—Amendment 2 Page 2 of 4 AGENDA ITEM #7. k) � COAST&HARBOR ENGINEERING ADivisron o/Hmch Mott MacDona/d of PS&E will be submitted to the City for review and comment. The engineer's cost estimate will be submitted at the 90% completion level. CHE will attend a review meeting with the City to discuss the 90% submittal documents. Comments from the 90% submittal will be incorporated into the final for bid plans and specifications. The final engineering design will be developed with sufficient detail for bidding and construction. Electronic files of all ACAD drawings and technical specifications will be submitted to the City at 100 percent completion. Design drawings will be developed using AutoCAD 2013. Technical specifications will be assembled using WSDOT standards. Task Il Deliverable: Bc�sis of Desig►i Technical Memorandum. Electronic I1x17 90%level bid c�rawings, specifications anc�cost estimate i�i electro�7ic PDF for-mat for review. Elect�-onic a�Td one 11x17 hard copy 100%level bid dr•awings, specifications and cost estimate in electronic PDF a»d ACAD forrriat. Attend are meeting u�ith tlre Crty in Rer�ton, Wa. Task 12 deliverables x�ill be completecl2 months followi�rg completion of Task 11. Task 13 Biddin'g Assistance (CHE) ' Purpose: The purpose of this task is to provide technical engineering assistance to the City during the bidding phase of the project. Scope: CHE will provide technical assistance to the City during the bidding phase of the project. Assistance will include respondi»g to bidder's questions and assistance with the development of addendums.Estimated level of engineering assistance was determined to be 10 hours. Task 13 De[iverable: Bid Form Review. Email summary of responses to qc�estions, revisio�is to plctn sheets a��d technicnl specifications crs needed, and language for addendum as needed. Task 14 Large Woody Material Removal Feasibility Assessment(CHE, Widener& Associates) Purpose: Large woody material(LWM)provides bird sanctuary within the delta(located at the end of Runway 16),posing a direct safety concern and danger to arriving/departing aircraft. The pwpose of this task is to conduct a feasibility analysis to investigate the permitting and conceptual design measures necessary to remove the existing large woody material(LWlvn from the Cedar River delta. Scope: CHE will investigate incorporating the removal of the LWM from the Cedar River delta into the mitigation project design and construction. The work will include incorporating the areas to be cleared of LWM within the Cedar River delta into the project plans, constructability assessment and a feasibility analysis to be presented in a separate technical memorandum under this task. Widener&Associates will provide all pernutting support for this task. Task 14 Deliverable: Technical Memorandum. Ciry of Renton Seaplane Base Maintenance Dredging Project-Mitigation October 23,2015 Scope of Work—Amendment 2 Page 3 of 4 AGENDA ITEM #7, k) � COAST&HARBOR ENGINEERING ADivision ofHafch Mott MacDonald Task 15 Topographic Survey Purpose: Conduct new topographic survey to provide baseline conditions for conducting basis for final design and project budgeting, and to serve as the pre-construction survey. • Topographic Survey o A new topographic survey will be conducted within the project work area to provide current conditions for the engineering work. The new survey will will utilize existing property boundary and utility location data for development of a project base map. Survey coverage area will include the proposed mitigation area at the south end of Runway 16 and include waterward locations to the north. Task IS Deliverable: ACAD fcle of base mnp coritaining tlre new topographic survey data. Budget: The following budget was developed for the above described scope of work. All work will be conducted on a negotiated hourly rate of pay with a total not to exceed amount. Contingent work items will require authorization from the City prior to conducting the work outlined in those tasks. � _ _... .. .._ . _.._ - -.. . -.:_,..:� - . --�; ,_, - i: 'SeaplaneaBase 1Vlaintenance Dredging P`r•oject I Task I Budget I 10—Permitting Support(Widener&Associates) I $7,500 I 11 —Preliminary Engineering and Analysis(CHE) I $11,900 I 12—Final Engineering Design(CHE) f $22,400 I 13—Bidding Assistance(CHE) I $1,580 I14—Large Woody Material Removal Feasibility Assessment(CHE $7,600 &Widener&Associates) I � 15—Topographic Survey I $4,350 ISubtotal I $55,330 City of Renton Seapfane Base Maintenance Dredging Project-Mitigation October 23,2015 Scope of Wo�lc—Amendment 2 Page 4 of 4 AGENDA ITEM # 9, a) CITY OF RENTON,WASHINGTON ORDtNANCE NO. AN ORDINANCE OF THE CITY OF RENTON, WASHINGTON, AMENDING SECTION 4-1-160 OF CHAPTER 1, ADMINISTRATION AND ENFORCEMENT, OF TITLE IV (DEVELOPMENT REGUTATIONS) OF THE RENTON MUNICIPAL CODE, SETTING THE IMPACT FEE AT $4,635 PER NEW SINGLE-FAMILY HOME AND $1,534 PER NEW MULTI-FAMILY IN THE ISSAQUAH SCHOOL DISTRICT; SETTING THE IMPACT FEE AT $4,990 PER NEW SINGLE FAMILY HOME AND $2,163 PER NEW MULTI-FAMILY HOME IN THE KENT SCHOOL DISTRICT; SET7ING THE IMPACT FEE AT $5,643 PER NEW SINGLE FAMILY HOME AND $1,385 PER NEW MULTI- FAMILY HOME IN THE RENTON SCHOOL DISTRICT; AND ADOPTING THE CAPITAL FACILITIES PLANS OF THE ISSAQUAH, KENT AND RENTON SCHOOL DISTRICfS. WHEREAS, under Section 4-1-160 of Chapter 1, Administration and Enforcement, of Title IV (Development Regulations), of the Renton Municipal Code, as amended, and the maps , and reports adopted in conjunction therewith, the City of Renton has heretofore collected on behalf of the Issaquah School District an impact fee of$4,560 for each new single-family home and $1,458 for each new multi-family unit built within the District's boundaries; and WHEREAS, the Issaquah School District requested that the City of Renton adopt the District's 2015 Capital Facilities Plan, which includes an increase in the impact fee for new single-family homes to $4,635 and an increase in the impact fee for new multi-family units to $1,534; and WHEREAS, under Section 4-1-160 of Chapter 1, Administration and Enforcement, of Title IV (Development Regulations), of the Renton Municipal Code, as amended, and the maps and reports adopted in conjunction therewith, the City of Renton has heretofore collected on behalf of the Kent School District an impact fee of$5,486 for each new single-family home and $3,378 for each new multi-family unit built within the District's boundaries; and 1 AGENDA ITEM # 9, a) ORDINANCE NO. WHEREAS,the Kent Schoo) District requested that the City of Renton adopt the District's 2015/2016—2020/2021 Capital Facilities Plan, which requests a decrease in the impact fee for new single-family homes to $4,990 and a decrease in the impact fee for new multi-family units to $2,163; and ! WHEREAS, under Section 4-1-160 of Chapter 1, Administration and Enforcement, of Title IV (Development Regulationsj, of the Renton Municipal Code, as amended, and the maps and reports adopted in conjunction therewith, the City of Renton has heretofore collected on behalf of the Renton School District an impact fee of$5,541 for each new single-family home and $1,360 for each new multi-family unit built within the District's boundaries; and WHEREAS, the Renton School District requested that the City of Renton adopt the District's 2015-2021 Capital Facilities Plan, which includes an increase in the impact fee for new single-family homes to$5,643,and increase in the impact fee for multi-family units to$1,385; NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF RENTON, WASHINGTON, DOES ORDAIN AS FOLLOWS: SECTION I. Subsection 4-1-160.D.5 of subsection 4-1-160.D, Fee Calculations, of Chapter 1, Administration and Enforcement, of Title IV (Development Regulations) of the Renton Municipal Code, is hereby amended as follows: 5. The City Council may adjust the fee calculated under this subsection, as it sees fit to take into account local conditions such as, but not limited to, price differentials thraughout each respective school district in the cost of new housing, school occupancy levels, and the percent of each school 2 AGENDA ITEM # 9. a) ORDINANCE N0. district's Capital Facilities Budget, which will be expended locally. The City Council establishes the following fees: Singie Family Fee Multi-Family and Accessory Amount Dwelling Unit Fee Amount Issaquah School District �4,3bA:A� 4 635 �455:� 1 534 Kent School Distrid �5;48g-A9- 4 990 �3,3�8:AA- 2 163 Renton School District �54�8� 5 643 �36�AA- 1385 - .1 f bsection 4-1-160.J Ado tion of Each School SECTION II. Subsection 4-1 160.J o su , p District's Capital Facilities Plan and Submission of the Annual Updates and Report and Data, of n f the Cha ter 1 Administration and Enforcement of Title IV (Development Regulatio s) o p , Renton Municipal Code, is hereby amended as follows: 1. Renton adopts the following capital facilities plans by reference as part of the Capital Facilities Element of Renton's Comprehensive Plan: a. The Issaquah School District No. 411 �4 2015 Capital Facilities Plan; b. The Kent School District No. 415 ��^'� '_n,n.� 2015/2016—2020/2021 Capital Facilities Plan; and c. The Renton School District No. 403 =A�4 —=�� 2015 — 2021 Capital Facilities Plan. 3 AGENDA ITEM # 9, a) ORDINANCE N0. SECTION III. This ordinance shall be effective upon its passage, approval and five (5) days after its publication. PASSED BY THE CITY COtJNCIL this day of , 2015. Jason A.Seth, City Clerk APPROVED BY THE MAYOR this day of , 2015. Denis Law, Mayor � Approved as to form: Lawrence J. Warren, City Attorney Date of Publication: ORD:1892:10/20/15:scr 4 AGENDA 1 TEM # 9, b) CITY OF RENTON, WASHINGTON ORDINANCE N0. AN ORDINANCE OF THE CITY OF RENTON, WASHINGTON, AMENDING SECTIONS 4-2-080 AND 4-2-120 OF CHAPTER 2, ZONING DISTRICTS— USES AND STANDARDS, OF TITLE IV (DEVELOPMENT REGULATIONS) OF THE RENTON MUNICIPAL CODE, AMENDING THE RESIDENTIAL ZONING STANDARDS IN THE CA(COMMERCIAL ARTERIAL)ZONE. WHEREAS, the City seeks to ensure that high density occurs in locations where the infrastructure is adequate, either existing or planned, as well as to balance where new high density occurs with where it exists so that each community can flourish; and WHEREAS, the City Council previously enacted a moratorium on residential development in the CA (Commercial Arterial) Zone in order to allow staff time to review the appropriateness of allowing high density away from central areas not associated with a desi nated re ional rowth center and to re are an ordinance• and g g g , P p . WHEREAS, this matter was duly referred to the Planning Commission for investigation and study, and the matter having been considered by the Planning Commission, and the amendment request being in conformity with the City's Comprehensive Plan, as amended; and WHEREAS, the Planning Commission held a public hearing on October 21, 2015, having considered alf matters relevant thereto, and all parties having been heard appearing in support or in opposition; NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF RENTON, WASHINGTON, DOES ORDAIN AS FOLLOWS: � 1 AGENDA ITEM # 9. b) ORDINANCE N0. SECTION I. Subsection 4-2-080.A.18 of subsection 4-2-OSO.A, Subject to the Following Conditions, of Chapter 2, Zoning Districts — Uses and Standards, of Title IV (Development Regulations) of the Renton Municipal Code, is hereby amended as follows: 18. Specified use(s) are not allowed within one thousand feet (1,000') of the centerline of Renton Municipal Airport runway. In the UC Zone, buildings adjacent to pedestrian-oriented streets, designated as such via Master Plan or similar document approved by the City, shall be mixed use with ground-floor commercial uses; in all other applicable Zones, buildings shall be mixed use with ground-floor commercial. Where required, commercial space shall be provided on the ground floor at thirty feet (30') in depth along any street frontage. Averaging the minimum depth may be permitted through the site plan review process, provided no portion of the depth is reduced to less than twenty feet (20'). All commercial space on the ground floor shall have a minimum floor-to- ceiling height of fifteen feet (15'). Residential uses shall not be located on the ground floor along any street frontage. Residential uses are not permitted in the �a�4e�-� Benson, Cedar River, Talbot, or Vallev Community Planning Areas. Communitv Plannin� Areas are identified in the Citv of Renton's COR Maps, the City's online interactive maooin� application available throu�h the City's website. SECTION II. The subsection entitled "Density" contained in subsection 4-2-120.A, Development Standards for Commercial Zoning Designations (CN, CV, & CA), of Chapter 2, Zoning Districts — Uses and Standards, of Title IV (Development Regulations) of the Renton 2 � �4GENDA ITEM # 9, b) ORDINANCE NO. Municipal Code, is hereby amended as shown on Attachment A. The rest of the subsections shall remain as currently codified. SECTION III. Resolution No. 4263 passed by Council on October 26, 2015, adopting a moratorium upon the submission, acceptance, processing or approval of any applications for residential development within the CA (Commercial Arterial) Zone, except within the City Center Community Area and for previously approved and valid land use applications, is hereby repealed, and the moratorium is hereby repealed. SECTION IV. This ordinance shall be effective upon its passage, approval, and five (5) days after publication. PASSED BY THE CITY COUNCIL this day of , 2015. i lason A. Seth, City Clerk APPROVED BY THE MAYOR this day of , 2015. Denis Law, Mayor Approved as to form: Lawrence J. Warren, City Attorney Date of Publication: ORD:1881:10/5/15:scr 3 oRD,NPN�E N4•/ pS14N5 l�N,��8`CAl pM1NG DE51GN uC a 5�O�COMM�RCiA�Z �A et acre 4-212�' v�` MEN.�SSpN�AR� 2� units USen O� pp Cd dv�tellin� d �N p dydeilir►g un�ts Per net ex�ept f°r m�x� net 1 deveiop�`ent� er Net A�re} 2a dW��1in�,Un�ts per acre• acre}if 15p du� Vnits P dulacce l mmercial is pyoeltin� net 85 a�re. units P�� round fioor�o pEN51't`( t None dWeiiing um Net 9 its per net 6� the��t �ente� pco�ided• bo��5;1.5 times M��'m nSitY g4 dWetling u� acre�n d iiving may be tia�� =� h�ands Assiste densitY Res�den an �ianrin ax;rnum �dWeiiin�un�ts Per �,cre. s• cQmmu,�,t the m ta condit�ons living b��u � Assisted the maX�mu�', ailoW�d sublect t reas. er ne�, p�,5. ucn Ne re' p. �4-9- Maxim 9 strv�tu us�1'5 1.5 time5 its sitY be ailowed --'' p{RM Resid�nt��'��en d living ban Sity 34 dW e11�n un Assiste aX�mu,�,n den d�n5�t�may platQau e5 the rr' ed sublect to to�ond�tiors o{ acre;�the East tim sub�ect a�d Ke�,� dale � maY�y�ai\oW 9 p65• � MC�-9-��i5' RM�4_ - 111 cond►tion5°{R Comm unit Piann�� ,Z AC_�i '3> � � � to a' ..►. A�A�'H�ENT A_1 �� S CITY OF EXECUTIVE DEPARTMENT .--iRenton � ---..... M E M O R A N D U M DATE: November 23, 2015 TO: Ed Prince, Council President Members of the Renton City Council FROM: Denis Law, Mayor� Jay Covington, Chief Administrative Officer SUBJECT: Administrative Report In addition to our day-to-day activities,the following are some items worthy of note for this week: � The 2015 Independent Salary Commission will be meeting on November 24, 2015 at 9:00 a.m.The purpose of this commission is to review the salaries of our elected officials and recommend adjustments if needed. For more information please visit our website. � The Public Works Department would like to remind residents to help us prevent local residential street flooding by monitoring catch basins near your home and keep them clear of leaves and other debris. Also, snow is not far away. Please remember that during snow and ice events, the department sanders and snow plows are dispatched to keep major arterials drivable. It is imperative that motorists do not park or abandon their vehicles within any portion of the traffic lanes. Abandoned vehicles impair snow and ice removal and impact response of emergency vehicles. • Preventative street maintenance, traffic impact projects, and road closures will be at the following locations: ✓ Monday, November 23rd through Friday, November 27th,approximately 8:00 a.m.to 3:00 p.m. Westbound lane closure on 156thAvenue SE, between SE 144th Street and SE 6th Street,for utilities installation. Questions may be directed to Mark Wetherbee at 206-999-1829. ✓ Monday, November 23rd through Friday, November 27th, approximately 8:00 a.m.to 5:00 p.m. The two east lanes on Main between 2nd and 3rd will be closed for water main improvements while the west lane will be open for traffic flow. Questions can be directed to on-site inspector Pat Miller at 206-794-6162. ✓ Monday, November 23rd through Friday, November 27th, approximately B:OOam to S:OOpm. Lane closures on Talbot Road due to a water main installation for the Talbot and 55th Plat. Questions can be directed to Todd Freih, 425-999-1832. Ed Prince,Council President Members of Renton City Council November 23, 2015 Page 2 ✓ Monday, November 23rd through Tuesday, December 15th, approximately 7 a.m.to 5 p.m. Intermittent lane closures both directions of Chelan Avenue SE between SE 2nd Place and SE 4th Place so that crews can install storm drainage pipe and structures. Questions may be directed to Utility Civil Engineer Allen Quynn at 425-430-7247. ✓ Monday, November 23rd through approximately August 31, 2016. Logan Avenue North between N 6th St and Airport Way will be closed 24/7 to all southbound traffic during construction of the Logan Ave Improvement Project. Southbound Logan Ave N traffic will be rerouted along Park Ave N to Bronson Way and S 2nd St. Questions may be directed to James Wilhoit at 425-430-7319 or via email at jwilhoit@rentonwa.gov. For updates visit the project web page at http://rentonwa.�ov/livin�/default.aspx?id=8026. Agenda Item No.: � � RENTON CITY COUNCIL MEETING AUDIENCE COMMENT SIGN-UP SHEET (Page 1j CITIZENS MUST PROVIDE NAME AND ADDRESS IN ORDER TO BE CONTACTED OR TO BE A PARTY OF RECORD WHEN APPROPRIATE DATE: �� I� �' / �� PLEASE PRINT 5 Minute Time Limit 1 5 Name:�/,l�/IIY��l V Dtil �Y� �' Name: � Address:I I�U �/I N��'►�Y� � �l�(Y Address: / City:—��L1/� Zip Code:�� City: Zip Code: J , Email: ' Email: / Topic: G��.�X Topic: / / 2 � 6 Name: Name: � Address: / Address: / City: Zip Code: / City: ip Code: Email: / ' Email: Topic: / Topic: ^/ � � X 3 7 Name: Name: Addr s� / Address: � / � City ' ,I / Zip Code: City: v / Zip Code: Em il: � / Email: / Topi Topic: / 4 8 Name• Name: Ad ess: Addre : ty: Zip Code: Ci . Zip Code: � Email: mail: i Topic: Topic: (CONTINUED ON REVERSE SIDE) (Continued from Reverse Side- Page 2) RENTON CITY COUNCIL MEETING AUDIENCE COMMENT SIGN-UP SHEET CITIZENS MUST PROVIDE NAME AND ADDRESS IN ORDER TO BE CONTACTED OR TO BE A PARTY OF RECORD WHEN APPROPRIATE PLEASE PRINT 5 Minute Time Limit � 9 13 Name: Name: Address: Address: City: Zip Code: City: Zip Cods: Email: Email: / Topic: Topic: 10 14 Name: Name: � Address: Address: City: Zip Code: City: Zip Code: Email: /!\, Email: � Topic: 1i Topic: 11 � 15 ,. Name: / Name: '� Address: �\ / / Address: � ' City: Zi Code: City: Zip Code: Email: Email: i Topic: j Topic: 12 16 Name: Name: Address: � Address: City: � Zip Code: City: Zip Code: � Email: EmaiL• Topic: Topic: FINANCE COMMITTEE CPj-PyR�VED BY COMMITTEE REPORT C UNC�� t� �� /b�s November 16, 2015 � ` Utility Billing Adjustment � (November 9, 2015) � The Finance Committee recommends concurring in the staff recommendation to grant the waiver requested for the following utility accounts: 1. Sewer and King County Metro related charges from a water leak at at the service address of 2300 Benson Rd South, Bldg B (Account #06322-000), as presented for the total amount of $13,250.38. The adjustment includes City Sewer ($4,736.16) and King County Metro ($8,514.22) charges above their normal usage. r I k t at the service 2. Water Sewer and Kin Count Metro related char es from a wate ea a , g Y g address of 151 Sunset Blvd N (Account #01736-000), as presented for the total amount of$14,292.24. The adjustment includes City Water ($2,359.44), City Sewer ($4,230.72) and King County Metro ($7,702.08) charges above their normal usage. Prince, Substitute Member � � � Greg Taylar� Vice Chair _ � Armondo Pavone, Member cc: Kari Roller,Financial Services Manager Terri Weishaupt,Utility Billing Supervisor FINANCE COMMITTEE COMMITTEE REPORT C p�OVED gy C UNCIL November 16, 2015 ��tc I� � 6�� 2016 School Impact Fees (Referred on November 2, 2015) The Finance Committee recommends concurrence with the staff recommendation to adopt an ordinance to approve impact fee collection changes and Capital Facilities Plans for three school districts within the City of Renton as follows: • Collect the requested impact fee of $4,635, an increase of $75, for each new single-family home and an impact fee of$1,534 for each multi-family unit, an increase of$76, on behalf of the Issaquah School District; and • Collect the requested impact fee of $4,990, a decrease of$496, for each new single-family home and $2,163, a decrease of $1,215, for each new multi-family unit on behalf of the Kent School District; and • Collect the requested impact fee of$5,643, an increase of$102, for each new single-family home and $1,385, an increase of $25, for each new multi-family unit on behalf of the Renton School District. Finally, the Committee recommends that an ordinance regarding this matter be prepared for first reading. t d Prince, Substitute Member � \ � Greg Ta�le�r, Vice-Chair � ndo Pavone, Member C: lennifer Henning, Planning Director FINANCE COMMITTEE REPORT APpRpVED B� cirY cou�vc►� November 16, 2015 �'t�� /�s !� APPROVAL OF CLAIMS AND PAYROLL VOUCHERS The Finance Committee approves for payment on November 16, 2015 claims vouchers 342843 — 343126, 5 wire transfers and 1 payroll run with benefit withholding payments totaling $6,715,360.62 and payroll vouchers including 752 direct deposits and 56 payroll checks totaling $1,645,716.37. � �__ �..___.._ ,-�...:_ �'cl ��N c� �v \v 1 - Greg TaKla�, Vice-Chair Ar�a�do�avone, Member STAFF RECAP COUNCIL MEETING REFERRALS 11/16/2015 MOTIONS REFERRED TO ADMINISTRATION: None. Other Requests: None. MOTIONS REFERRED TO COUNCIL COMMITTEE: (on behalf of Don Persson) Moved by Prince, seconded by Corman, Council refer Fortified Alcohol Impact Area Briefing to the Public Safety Committee. —Vincent & Milosevich* *The consent agenda items were adopted as presented. ��_ � CITY OF • �a M I N UTES City Council Regular Meeting 7:00 PM-Monday,November 16,2015 Council Chambers, 7th Floor, City Hall—1055 S. Grady Way CALL TO ORDER AND PLEDGE OF ALLEGIANCE Mayor Pro Tem Prince called the meeting of the Renton City Council to order at 7:00 PM and led the Pledge of Allegiance. ROLL CALL Councilmembers Present: Councilmembers Absent: Ed Prince, Mayor Pro Tem Don Persson Randy Corman,Council President Pro Tem Armondo Pavone Ruth Perez Marcie Palmer ' Greg Taylor � MOVED BY CORMAN,SECONDED BY PAVONE,COUNCIL EXCUSE ABSENT COUNCILMEMBER DON PERSSON.CARRIED. ADMINISTRATIVE STAFF PRESENT � Jay Covington,Chief Administrative Officer I Zanetta Fontes, Senior Assistant City Attorney Megan Gregor, Deputy City Clerk Doug Jacobson, Deputy Public Works Administrator lonathan Wilson,Airport Manager Amanda Askren, Mapping Supervisor Paul Hintz,Associate Planner Commander Tracy Wilkinson, Police Department SPECIAL PRESENTATION a) Renton Reporter's 2015 FilmFrenzy People's Choice Award -Mitch Shepherd and Ben Andrews from reelRenton,explained the mission of reelRenton and the purpose of the FilmFrenzy competition.Additionally,they shared information about how the competition works,the 21 film making teams this year,and the highly respected judges who participated in the event. Brian Beckley from the Renton Reporter announced that this year's winner of November 16, 2015 REGULAR COUNCIL MEETING MINUTES 1 the 2015 Renton Reporter People's Choice Curvee Award goes to Long Tran for his film titled "Camp Cedar River: Part 1." Mr.Tran accepted the award and thanked his crew and parents, expressing appreciation for the award. PUBLIC HEARINGS a) Street Vacation Request: Portion of a Right-of-Way in the Vicinity of 300 Rainier Ave. N. (Petitioner: City of Renton;VAC-15-003).This being the date set, and proper notices having ' been posted and published in accordance with local and State laws, Mayor Pro Tem Prince opened the public hearing to consider the petition to vacate a portion of a right-of-way (ROW) in the vicinity of 300 Rainier Ave. N.; petitioner City of Renton. Mapping Supervisor Amanda Askran reported that 100�of the abutting property owners have signed the vacation petition.She relayed that the ROW is adjacent to the Renton Airport and more specifically located on the proposed Aerospace Training Facility site, and that the vacation will realign the irregular shaped ROW.She also specified that this request has been reviewed and that it conforms to the scheduled street improvements for Rainier Ave. N. Upon circulation of the petition to City departments and outside agencies,there were no objections to the vacation. However, it was noted that Puget Sound Energy(PSE) has a transformer located in the ROW;though the transformer is slated for removal during a redevelopment project,the City,developer, or WMATI (Washington Manufacturing Advanced Training Institute)will need to enter into a customer service agreement with PSE,and an electrical easement will be required. Senior Assistant City Attorney Fontes clarified that the staff recommendation is to approve the vacation petition and refer the ordinance to vacate the ROW to first reading on next week's agenda under the condition that the property owner, developer,or WMATI enter into a customer service agreement with PSE; and that the City will allow the transformer to remain intact until the customer service agreement is executed or the transformer location is redeveloped. There were no audience comments. MOVED BY CORMAN,SECONDED BY PALMER, COUNCIL CONCUR TO CLOSE THE PUBLIC HEARING.CARRIED. MOVED BY CORMAN,SECONDED BY PALMER,COUNCIL CONCUR IN THE STAFF RECOMMENDATION TO APPROVE THE VACATION PETITION AND PLACE THE ORDINANCE TO VACATE THE RIGHT-OF-WAY FOR FIRST READING ON NEXT WEEK'S AGENDA ON THE CONDITION THAT THE PROPERTY OWNER,DEVELOPER, OR WMATI ENTER INTO A CUSTOMER SERVECE AGREEMENT WITH PSE.CARRIED. b) 2016 School District Impact Fees.This being the date set and proper notices having been posted and published in accordance with local and State laws, Mayor Pro Tem Prince opened the public hearing to consider the collection of impact fees for the Issaquah, Kent, and Renton School Districts. Community and Economic Development Associate Planner Paul Hintz provided a brief presentation explaining the following changes in the school impact fees: November 16, 2015 REGULAR COUNCIL MEETING MINUTES 2 CURRENT COSTS PROPOSED CHANGES Single Family Multi-Family Single Family Multi-Family House Unit House Unit Issaquah School District $4,560 $1,458 $4,653 $1,534 Kent School District $5,486 _ $3,378 $4,990 $2,163 Renton School District 5 541 1360 5 643 1 385 $ , $ , $ , $ . TOTAL PROPOSED CHANGES Single Family House Multi-Family Unit � Issaquah School District $93 $76 � � Kent School District ($496) ($1,215) � � Renton School District $102 $25 Public Hearing Audience Comments: Ralph Fortunado, Director of Fiscal Services for Kent School District,explained that the school impact fees were reduced in the Kent School District because there are fewer families with children living in the newer multi-family units within the Kent School District. MOVED BY TAYLOR,SECONDED BY CORMAN,COUNCIL CONCUR TO CLOSE THE PUBLIC HEARING.CARRIED. ADMINISTRATIVE REPORT Chief Administrative Officer 1a Covin ton reviewed a written administrative re ort v E r summarizing the City's recent progress towards goals and work programs adopted as part of its business plan for 2015 and beyond. Items noted were: • The Governor's Smart Communities Awards judges were asked to select the greatest examples of successful pfanning over the past 25 years of the Growth Management Act (GMA). Because the City of Renton has received the Governor's Smart Communities Award for multiple projects in 2012, 2013, 2014 and 2015 it was awarded the honor of a lifetime achievement award.The Lifetime of GMA Achievement Award was presented at the 25th Anniversary of the GMA reception on November 13, 2015. • Preventative street maintenance will continue to impact traffic and result in occasional street closures. November 16, 2015 REGULAR COUNCIL MEETING MINUTES 3 AUDIENCE COMMENT a) Howard McOmber, Renton,thanked everyone who assisted with the REACH Gala. He also let Council know that the homeless children in the City of Renton are being provided shelter at night through the services of REACH. CONSENT AGENDA Items listed on the consent agenda were adopted with one motion,following the listing. a) Approval of the November 9, 2015 Council meeting minutes. Council Concur. b) Mayor Law reappointed Robert Dempster(Primary Position-Aircraft Owners& Pilots Association)to the Airport Advisory Committee for a term expiring on May 7, 2018. Council Concur. c) Mayor Law appointed Kelly Beymer as the new Community Services Administrator at step A of salary grade m49, effective 1/1/2016. Council Concur. d) City Attorney requested authorization to hire a Senior Assistant City Attorney at step D of salary grade m42.Council Concur. e) Community& Economic Development Department recommended approval of a Facade Improvement Agreement to loan$200,000,from Community Development Block Grant (CDBG)funds,to Cortona LLC,for the purposes of assisting with exterior improvements to their property located at 724 S.3rd St.Council Concur. f) Community& Economic Development Department recommended approval to extend the sunset clause to 12/31/2018 for accepting applications for the Multi-Family Housing Property Tax Exemption Program. Refer to Planning&Development Committee. g) Community& Economic Development Department recommended approval to extend the sunset clause to 12/31/2018 for accepting applications for the Owner-Occupied and Rental Housing Incentive Programs. Refer to Planning&Development Committee. h) Community& Economic Development Department requested approval of an Exemption Agreement for The Lofts at Second and Main project to receive a partial property tax exemption upon completion. Refer to Planning&Development Committee. i) Human Resources/ Risk Management Department recommended approval of the 2016 Group Health Cooperative medical coverage contracts for LEOFF I retirees and all active employees, in the total amount of$219,721. Council Concur. j) Human Resources/ Risk Management Department recommended approval of a contract in the amount of$323,202 with Healthcare Management Administrators (HMA)and Envision Rx for 2016 medical, dental, and prescription ctaims processing.Council Concur. k) Transportation Systems Division recommended approval of an amendment to the Seaplane Base Dredging&Shoreline Mitigation Project(CAG-12-008) in the amount of$55,330 to extend the time of the project and changed the scope of work;the funding will be provided via a transfer of$40,000 from the Airport ending fund balance. Refer to Transportation (Aviation)Committee. MOVED BY CORMAN,SECONDED BY PAVONE, COUNCIL CONCUR TO APPROVE THE CONSENT AGENDA AS PRESENTED.CARRIED. November 16,2015 REGULAR COUNCIL MEETING MINUTES 4 UNFINISHED BUSINESS a) Finance Committee Vice-Chair Taylor presented a report recommending concurrence with the staff recommendation to adopt an ordinance to approve impact fee collection changes and Capital Facilities Plans for three school districts within the City of Renton as follows: • Collect the requested impact fee of$4,635, an increase of$75,for each new single-family home and an impact fee of$1,534 for each multi-family unit, an increase of$76,on behalf of the Issaquah School District; and • Collect the requested impact fee of$4,990, a decrease of$496,for each new single-family home and $2,163, a decrease of$1,215,for each new multi-family unit on behalf of the Kent School District;and • Collect the requested impact fee of$5,643, an increase of$102,for each new single-family ' home and $1,385, an increase of$25,for each new multi-family unit on behalf of the Renton School District. Finally,the Committee recommended that an ordinance regarding this matter be prepared for first reading. (See below for ordinance.J MOVED BY TAYLOR,SECONDED BY PAVONE,COUNCIL CONCUR IN THE COMMITTEE REPORT.CARRIED. b) Finance Committee Vice-Chair Taylor presented a report approving for payment on November 16, 2015 claims vouchers 342843-343126,five wire transfers and one payroll run with benefit withholding payments totaling$6,715,360.62 and payroll vouchers including 752 direct deposits and 56 payroll checks totaling$1,645,716.37. MOVED BY TAYLOR,SECONDED BY PAVONE,COUNCIL CONCUR IN THE COMMITTEE REPORT.CARRIED. ' c) Finance Committee Vice-Chair Taylor presented a report recommending concurrence in the staff recommendation to grant the waiver requested for the following utility accounts: 1. Sewer and King County Metro related charges from a water leak at the service address of 2300 Benson Rd South, Bldg B(Account#06322-000),as presented for the total amount of $13,250.38. The adjustment includes City Sewer($4,736.16)and King County Metro ($8,514.22)charges above their normal usage. 2. Water,Sewer and King County Metro related charges from a water leak at the service address of 151 Sunset Blvd N (Account#01736-000), as presented for the total amount of $14,292.24. The adjustment includes City Water($2,359.44),City Sewer($4,230.72)and King County Metro ($7,702.08)charges above their normal usage. MOVED BY TAYLOR,SECONDED BY PAVONE,COUNCIL CONCUR IN THE COMMITTEE REPORT.CARRIED. November 16,2015 REGULAR COUNCIL MEETING MINUTES 5 RESOLUTIONS AND ORDINANCES Ordinance for first reading: a) Ordinance No.5779:An ordinance was read amending Section 4-1-160 of Chapter 1, Administration and Enforcement,of Title IV(Development Regulations)of the Renton Municipal Code, setting the impact fee at$4,635 per new single-family home and $1,534 per new multi-family in the Issaquah School District; setting the impact fee at$4,990 per new single-family home and $2,163 per new multi-family home in the Kent School District; setting the impact fee at$5,643 per new single-family home and $1,385 per new multi-family home in the Renton School District; and adopting the capital facilities plans of the Issaquah, Kent, and Renton School Districts. MOVED BY TAYLOR,SECONDED BY PAVONE,COUNCIL REFER THE ORDINANCE FOR SECOND AND FINAL READING ON 11/23/2015.CARRIED. Ordinance for second and final reading: b) Ordinance No. 5778:An ordinance was read amending Sections 4-2-080 and 4-2-120 of Chapter 2,Zoning Districts—Uses and Standards, of Title IV(Development Regulations) of the Renton Municipal Code, amending the residential zoning standards in the CA(Commercial Arterial) Zone. MOVED BY CORMAN,SECONDED BY PAVONE, COUNCIL ADOPT THE ORDINANCE AS READ. ROLL CALL:ALL AYES.CARRIED. NEW BUSINE55 See attached Council committee meeting calendar. MOVED BY PRINCE,SECONDED BY CORMAN,COUNCIL REFER A BRIEFING ON THE FORTIFIED ALCOHOL IMPACT AREA TO THE PUBLIC SAFETY COMMITTEE. CARRIED. � ADJOURNMENT MOVED BY CORMAN,SECONDED BY PAVONE,COUNCIL ADJOURN. CARRIED. TIME 7:37 P.M. Jason .Seth CM t Clerk , Y Megan Gregor, Recorder Monday, November 16, 2015 November 16, 2015 REGULAR COUNCIL MEETING MINUTES 6 Council Committee Meeting Calendar November 16, 2015 November�3,��01�5 M�nc�ay �� y `�� `<' . 3:00 PM Planning & Development Committee, Chair Corman, Council Conference Rm 1. Economic Development Update 2. Multi-Family Housing Property Tax Exemption - Extension 3. Owner-Occupied Housing Incentive & Renta) Housing Incentive - Extensions 4. The Lofts at Second b Main - Multi-Family Housing Property Tax Exemption Agreement 4:00 PM Community Services Committee, Chair Perez, Council Conference Room 1. Golf Course Operations Overview 2. Neighborhoods, Resources and Events 5:00 PM Utilities Committee, Chair Taylor- Council Conference Room 1. Partial Release of Easement Request -Taco Time/Starbucks 5:30 PM Committee of the Whole, Chair Prince - Council Chambers 1. Regional Fire Authority 2. 2016 Legislative Priorities _ R CQUNCIL MEETING MEETING - Mt�TtfJN SHEET NQV 16, 2Q15 REGULA � Motion Staff Cantact Interested Agenda 148enda 7itle/Item Parties Place+ment Section Council Excuse NjA N/A 2) ROLL CALL ABSENT:Don Persson absent Councilmemt�er. 4.a) PUBLIC Street Vacation Request:Portion of a Right-of•Way in the Vicinity of Cauncil Cancur. Amanda Askren MeganaGregor HEARING 30Q Rainier Ave.N.(Petitioner:CitY of Renton;VAC-1S-003j. Senior Assistant City Attorney clarified that the staff recommendation is to apprave the uacation petition and refer the ordinance ta vacate the ROW to first reading on next week's agenda as long as the property owner,developer,or WMATI enter inta a customer service agreement with PSE;and that the City wiii a{low the transformer ta remain intact until the customer service agreement is executed ar the transformer location is redeveloped. Cauncil Closed the Public Hearing. Council cancur in the staff recammendation to approve the vacation petitian and place the ardinance to vacate the right-af-way for first � reading on next week`s agenda on the condition that the property owner,develaper,or WMATI enter into a customer service with ' pse. Nja Fees. See below for Ordinance) Councii Concur. Nf A 4.bj PUBLIC 2Q16 School District Impact ( HEARING Cauncil Concur. Jason Seth Megan Gregor 7,a) CONSENT Approval of the November 9,2015 Counci)meeting minutes. � AGENDA Councii Concur. April Alexander lonathan W+Ison .b CQNSENT Mayor law reappainted Robert Dempster(Primary Position- Susan Campbell- 7 } AGENQA Aircraft Owners&Pilots Association)to the Airport Advisory Her Committee far a term expiring on May 7,2018• Sandi Weir � NT Mayor Law appainted KeNy Beymer as the new Community Services Council Concur. 1ay Covington Keily Beymer 7,�� CONSE AGENDA Administrator at step A of salary grade rn49,effective 1/1/2Q16. � � � � -- -- - - --- ----------------------- -- ------------------- -- -- -- -- 7.d) CONSENT City Attorney requested authorization to hire a Senior Assistant City Council Concur. Larry Warren Jo Olson AGENDA Attorney at step D of salary grade m42. Cathryn Laird 7.e) CONSENT Community& Economic Development Department recommended Council Concur. John Collum Judith Subia AGENDA approval of a Facade Improvement Agreement to loan$200,000, Cindy Moya from Community Development Block Grant(CDBG)funds,to Cortona LLC,for the purposes of assisting with exterior improvements to their property located at 724 S. 3rd St. 7.f) CONSENT Community& Economic Development Department recommended Refer to Planning Mark Santos- Judith Subia AGENDA approval to extend the sunset clause to 12/31/2018 for accepting & Development Johnson applications for the Multi-Family Housing Property Tax Exemption Committee. Program. 7.g) CONSENT Community&Economic Development Department recommended Refer to Planning Mark Santos- Judith Subia AGENDA approval to extend the sunset clause to 12/31/2018 for accepting & Development Johnson applications for the Owner-Occupied and Rental Housing Incentive Committee. Programs. 7.h) CONSENT Community&Economic Development Department requested Refer to Planning Mark Santos- Judith Subia AGENDA approval of an Exemption Agreement for The Lofts at Second and & Development Johnson Cindy Moya Main project to receive a partial property tax exemption upon Committee. completion. 7.i) CONSENT Human Resources/ Risk Management Department recommended Council Concur. Nancy Carlson Maria Boggs AGENDA approval of the 2016 Group Health Cooperative medical coverage Mary Ann contracts for LEOFF I retirees and all active employees, in the total Coleman amount of$219,721. Cindy Moya 7.j) CONSENT Human Resources/ Risk Management Department recommended Council Concur. Nancy Carlson Maria Boggs AGENDA approval of a contract in the amount of$323,202 with Healthcare Cindy Moya I Management Administrators(HMA)and Envision Rx for 2016 ��, medical,dental,and prescription claims processing. ' 7.k) CONSENT Transportation Systems Division recommended approval of an Refer to Kamran Heather Ulit AGENDA amendment to the Seaplane Base Dredging&Shoreline Mitigation Transportation Yazdidoost Li Li-Wong Project(CAG-12-008) in the amount of$55,330 to extend the time (Aviation) of the project and raise the costs and scope of work;the funding Committee. will be provided via a transfer of$40,000 from the Airport ending fund balance. S.a) UNFINISHED Finance Committee Vice-Chair Taylor presented a report Council Concur in Paul Hintz Jennifer Henning BUSINESS recommending concurrence with the staff recommendation to adopt the committee Judith Subia an ordinance to approve impact fee collection changes and Capital report. Facilities Plans for three school districts within the City of Renton as follows: • Collect the requested impact fee of$4,635, an increase of$75, for each new single-family home and an impact fee of$1,534 for each multi-family unit, an increase of$76, on behalf of the Issaquah School District; and • Collect the requested impact fee of$4,990, a decrease of$496, for each new single-family home and $2,163, a decrease of $1,215, for each new multi-family unit on behalf of the Kent School District; and • Collect the requested impact fee of$5,643, an increase of$102, for each new single-family home and $1,385, an increase of$25, for each new multi-family unit on behalf of the Renton School District. Finally,the Committee recommended that an ordinance regarding this matter be prepared for first reading. (See below for ordinance.J 8.b) UNFINISHED Finance Committee Vice-Chair Taylor presented a report approving Council Concur in Jamie Thomas Natalie BUSINESS for payment on November 16, 2015 claims vouchers 342843 - the committee Wissbroad 343126,five wire transfers and one payroll run with benefit report. withholding payments totaling$6,715,360.62 and payroll vouchers including 752 direct deposits and 56 payroll checks totaling $1,645,716.37 8.c) UNFINISHED Finance Committee Vice-Chair Taylor presented a report Council Concur in Jamie Thomas Kari Roller BUSINESS recommending concurrence in the staff recommendation to grant the the committee Terri Weishaput waiver requested for the following utility accounts: report. 1. Sewer and King County Metro related charges from a water leak at at the service address of 2300 Benson Rd South, Bldg B (Account#06322-000), as presented for the total amount of $13,250.38. The adjustment includes City Sewer($4,736.16) and King County Metro ($8,514.22) charges above their normal usage. 2. Water,Sewer and King County Metro related charges from a water leak at at the service address of 151 Sunset Blvd N (Account#01736-000), as presented for the total amount of $14,292.24. The adjustment includes City Water($2,359.44), City Sewer($4,230.72) and King County Metro ($7,702.08) charges above their normal usage. 9.a) Ordinance for Ordinance No. 5779:An ordinance was read amending Section 4-1- Council refer Paul Hintz Jennifer Henning first reading: 160 of Chapter 1,Administration and Enforcement,of Title IV ordinance for Judith Subia (Development Regulations) of the Renton Municipal Code, setting the second and final impact fee at$4,635 per new single-family home and $1,534 per new reading on multi-family in the Issaquah School District; setting the impact fee at 11/23/2015. $4,990 per new single-family home and $2,163 per new multi-family home in the Kent School District; setting the impact fee at$5,643 per new single-family home and $1,385 per new multi-family home in the Renton School District; and adopting the capital facilities plans of the Issaquah, Kent, and Renton School Districts. 9.b) Ordinance for Ordinance No. 5778:An ordinance was read amending Sections 4-2- Council Adopt the Chip Vincent Jennifer Henning second and 080 and 4-2-120 of Chapter 2, Zoning Districts—Uses and Standards, ordinance as read. Angie Mathias final reading: of Title IV(Development Regulations) of the Renton Municipal Code, Roll Call:All Ayes. Judith Subia amending the residential zoning standards in the CA(Commercial Cindy Moya Arterial) Zone. 10.a) NEW Council refer a briefing on the Fortified Alcohol Impact Area to the Council Concur to Chip Vincent ludith Subia BUSINESS Public Safety Committee. refer to Public Kevin Milosivich Melissa Day Safety. I��IV��u� �`/��/!� � _ �� 4oWer�be�ZZn,d-2�$n i � Rising homelessness in King County has moved lawmakers to declare a State of Emergency. �I-�O DO �E I�IOT �EE� In alignment with National Homeless and Hunger Awareness Month, REACH is acting to raise recognition of and attention to a growing problem. �I-�O Is BE�-III�ID TI-�E sIC1�I� Find out ways to help at: ❑� �� reachrenton . org 0� - � - � � � � ` � � � � � . � _'^� � ,. , � „ �I�`' : t _..� �{�4' � � �` , _ ,��` �� { �� `� t � � � �" �, � �� '� � , _ �� ^ '�over�be��2Nd-2�$n II�I OI�IE I�IIC�I-�T II�I �AI�IL�AF��... 3772 people in King County were sleeping outside. 3282 were in the shelter system. 79 people were found sleeping outside in Renton. II�I F�EI�ITOI�I sCi-�OOLs.. 439 kids are classed as homeless. 58% of kids in Renton schools rely on free and reduced meals. TOCET�-IEF� �ITI-� PAATI�IEF�s AEAGI-�. . .. Operates a day center to support homeless families. Offers overnight accommodation for up to 75 per night. Provides single adults a safe place to find breakfast, dinner, support and connection to resources. Provides a Community Chaplain to build relationships and offer knowledge and support. Has moved 74 families into housing. Has moved 40 chronically homeless adults towards stability. HAS MADE SURE THAT NO CHILD NEEDS TO SLEEP OUTSIDE IN RENTON C�� '�"'' "�� N"/ � "� Agenda Item No.: � � v RENTON CIIY COUNCIL MEETING PUBLIC HEARING/MEETING SPEAKER SIGN-UP SHEET (Page 1) � CITIZENS MUST PROVIDE NAME AND ADDRESS IN ORDER TO BE CONTACTED OR TO BE A PARTY OF RECORD WHEN APPROPRIATE� DATE: �� 1� � �` 1 � PLEASE PRINT 5 Minute Time Limit ' 1 5 Name: Name: / Address: Address: / City: Zip Code: City: Zip Code: Email: Email: Topic: Topic: 2 6 Name: Name�,�� Address: Ad�dress: City: Zip Code: r�. City: Zip Code: l . Email: / I ` Email: Topic: '' � Topic: � 3 7 Name: Name: Address: / Address: City: Zip ode: City: Zip Code: Email: Email: Topic: /' Topic: 4 8 Name: ��' Name: Ad r s: � Address: City: Zip Code: City: Zip Code: Email: EmaiL• Topic: Topic: ', (CONTINUED ON REVERSE SIDE) (Continued from Reverse Side-Page 2) RENTON CITY COUNCIL MEETING PUBLIC HEARING/MEETING SPEAKER SIGN-UP SHEET CITIZENS MUST PROVIDE NAME AND ADDRESS IN ORDER TO BE CONTACTED OR TO BE � A PARTY Of RECORD WHEN APPROPRIATE PLEASE PRINT 5 Minute Time Limit 9 13 Name: Name: �1 Address: Address: i�/ City: Zip Code: City: Zip Co e: Email: Email: Topic: Topic: / 10 � 14 � / Name: Name: / Address: Address: / City: Zip Code: City: / Zip Code: Email: �---., ail: Topic: / / Topic: � 11 15 Name: f j Name: Address: �� Address: City: Zip Cod City: Zip Code: Email: Email: Topic: � / Topic: � 12 16 Name: Name: � Address: / Address: City: / Zip Code: City: Zip Code: Em� Email: Topic: Topic: SG�� ae� 1 �� Agenda Item No.: �� RENTON CITY COUNCIL MEETING PUBLIC HEARING/MEETING ! SPEAKER SIGN-UP SHEET (Page 1) � ' CITIZENS MUST PROVIDE NAME AND ADDRESS IN ORDER TO BE CONTACTED OR TO BE A PARTY OF RECORD WHEN APPROPRIATE� DATE: !� '�(O I�� PLEASE PRINT 5 Minute Time Limit 1 5 Name: /�G��n �� /�b r�'�'��0 Name: Add ress' 1 a o 3 3 S� o� s�q �t` ��v` Address: City: /�P'`� Zip Code: ��3 b City: Zip Code: / Email: I?rIA�+• �'urE��uEd��r-fi- 1�lt,Wl��u S Email: ,� Topic: �' �CewF $b y��,L� �� S Topic: / 2 6 Name: Name: Address: Address: ,� City: Zip Code: / City: Code: Email: / Email: Topic: / Topic: � / 3 7 Name: Name: Address: / Address:� City: /Zip Code: City: / Zip Code: Email: / Email: � — Topic:� . Topic: / 4 8 Na e: Name: Address: / Addr ss: City: / Zip Code: Ci Zi Code: P Em . mail: Topic: � Topic: (CONTINUED ON REVERSE SIDE) (Continued from Reverse Side-Page 2) RENTON CITY COUNCIL MEETING PUBLIC HEARING/MEETING SPEAKER SIGN-UP SHEET CITIZENS MUST PROVIDE NAME AND ADDRESS IN ORDER TO BE CONTACTED OR TO BE A PARTY OF RECORD WHEN APPROPRIATE PLEASE PRINT 5 Minute Time Limit 9 13 Name: Name: � Address: Address: / City: Zip Code: City: Zip de: Email: Email: Topic: Topic: / 10 � 14 Name: Name: Address: Addres . . City: Zip Code: Ci Zip Code: Email: ��, / Email: � Topic: / \ / Topic: \ / 11 15 Name: Name: .. . Address: �� ,� Address: � li City: Zip Code: / City: Zip Code: Emait: / Email: Topic: � / Topic: 12 16 Name: Name: Address: / Address: City: / Zip Code: City: Zip Code: E ail: Email: Topic: Topic: ..... COUNTY OF K� G � STA'1��F F DAy�T pF PUBLI�ATION AF IC N4TICE u� sworn on oath that she is the Legal PUBL Ml��s�being first d Y Linda M Re resentative of the Advertising p CtTY QF R�NTn� nton geporter voTic�,oF oxosr�ANCE Re ADOI'TEn�Y•r�+,��L eT �f RENTON C[TY COL pf the ga� n��,;�pap �ollowing is a summrhe ttenton Orit�1S Ocdinance ada�ted bY r t6. newspat�r is � le Six m Novembe W�t1Ch ��ty Councit on newspaper, ublished �n 2a�s. �o.s?as a weekly ion and is naw and hasri fterf efer ed t°a p r in King ogo�hA�c�� oF�en- generai circulat ublication here newsPaPe An Ordinance of the Ciry Seo- date of P O�Sl as a wee1�y roved as Washington, am�n��ng � priQr tQ the e continu y orter has been aPP to,,, a-2-i2o ot� the Eng�ish langua� ,I.�� g�nton ReP erior Caurt p� the State Of tions 4-2'dg�} apd nistricts — tari. Chapter 2. 7.oning of the SUP 5tandards, of'Fide �oj, �OUT1ty, Washing b order uses and � Regu1adonsl al NewsPaper y in regular issues tpevetopment �oae, a Leg County• ublished tne Renton Municipai Washington for K�n� exed wU�plem�nt form) �'hich was the Residez�tiaCommeg exact form ann �TiOd. amending in the CA t The not1c��n the riot in P t��b�lo�r,�stated p gtandards -Re orter �a�d � of the cial Aneriaii�,25/2015 Rentan p tQ its subscribeTS�ur�ng �ffective. reg��arly distributed Compiete test of this ordsn�� 8t�riOt1C�, a: Notice can be found on the City, The annex �,ub�i� rentonw��g°Y U�n site at �"^"W (;ierk's office, req�st t°the��co te� wiii aiso (A25) 43(1-FStO; p ��'��1$ be ma�led for a tee• �1erk Seth,City Jason A.�, Re rter on ublished Qn NO`�ember puhiished rn Renton#�46&495. W itS j� November 20,2�15. ed for said foregoin�pub��atian is `�.�`��,G W/��i The full amount of the fee charg ` ,........M ''. the sum o '71.7� �� C��';•yS14�Ekp�9,� �,,� �,/!' . .~. �s� F�" i ,�'?,t !f --'' - '° `t ' � � Renton Rep�rter : �� yp"f PR s = L4�ida Milis of November,2015. : : pug`iC : Z' Le gal Advertising R�P tio me this 20th day - s„Q„ � cn; �.; � � C?. n{�S W O T t l � •• 0�.�3'�0.••• � �.. �UbSCTi�d a ��'9j� ••• . ..• ��,,\ ♦ `�� r ., �� Residingin ��i��iwP��``` � �,��~~`�. o f washington, �-�C� , •�for the State Gate Gwin,Notary Pubi� ,� Puyallup,�ashington � �. � � CtTY OF RENTON �QTICE OF � TY OF KING � PUBLit;flF:ARiN(; COUN REN'TON C('TY c'OUNt:IL NOTtCE 1S HEREBY GNEN OF WASHI�NT O�PUBLICATI4N c,ounc�� has ,�'j'rt�1."11'% AFFIDA'v that the Renton c:i�f November, ('}xed the 16th mdY�y the date and 2015 at�.0�P• time for a pubiic hearing to be held in the seventh flo�� OHa�� IC N4TICE Chambers of Rent�a�'�enton, U�L d�l sworn an oath that she is the Lega> >ass S. Grady p NI�vt,ils,being first y �i�da 9A057.to consider the fotio�;�t g ee Adve�151n�Repr��entative of the , Coitect requested imtk' of�4>653,an inc s pgl�fam9 Y {or each pe collect ihe re- e er huested s�+p�et fee of$1,534, genton R P'o'rt a f�r �a�h an increase of $76'i�nit: and Q f n�w mutti-famrlY r IS a legal newspaper adopt the 20tS School Dis- n��,rspape s�X months trici Cap�tai Fac�lities Pian r� Which flTe than� tor the tssaquah Schoo� Dis- a weekly newspap� �,,� and has been for m ublished in crict;and � hereinafter referred t�� p r in King . �ollect the cequested impact genera1 c�rculation anublica ion weekly newspaPe {'ee of �4,�9�. a decrease of rior to the date of P a5 a � been aPPT°ved a5 for each new singie continuously Re orter ha- State af $`�9�' he English language The Renton p of the fam;ty n,�me�mpa�C°lteet t�f wdshingtan. gu rior Court rtqucsted COUrity, eWS aper aY flrder of the P� $2,t63, a decrease o£$1,215. U;lc`tt 1SSU�S muiti-famt�e a I.,egal N � County. ublished in reg eoT each�nde`x adoPt Washington for King which wa`� uny�; _ 2oz�naa� annexed�'�'as P form) and not in supplement Gtatedperiod. 2o�srzot� rtai Facii- The notice i�n R p°rte�� s durin�the belaw . s�noor v�str'°t c�p of the Rent 1t5 SUbSCr��T itics Pian for the Kent Schoa1 regularlY d�stiri�uted to pistrict;and �ct fee Notiee Cottect the rean�s��mease ot- The annexed natice, a� pub�iC � ot $s,�3, $id2, for each new singie- family hame: and collect thc requested impact fee �f a $2S increuse, for �j 2,�T 5. $�'�g5' mutti-familY unit; ovemb�r , each n��``t the 2015-2a21 was published on N a„� aao�, �b�l�a��on is Schoot D�strict �ap��Renton said foregoing p ities Plan for the ount of the fee charged for .` ��h��,strr�c. .•t i!t t;�f�j artres ace invited The futl am ,`\ �'�� n✓! ��r' 1�11 interea-ted ubiic hearing and af$�29•?S' �` co accena tre � the sum �? .••- " ••• N �r resent written or orai comments ��/��l( l��tl�^— � �•�g�+oN�kA• �r �' the proposai. Rentan � �,�,� j9� . rcgarding liance with /r1�P�`""- + :� `"�n', = City Ital1 is in comP e orter NpTARY the American Di`•+abilities Act, �n�a M��s resentative,Renton R P ber,2a�5' ; = and inter(�retive servYces 1��v d� �gal Advertising ReP me this 6th day of Novern = PUBLIC •:�q; neaT�„g ;mna�rea "'�� n cau �worn to — U' ` C� c`�Ct�- ' '''` '• '' ed upon Prior notice. �u}�5CTi� 5 430-b510 far additional in' �9��•.Qe..�.,o;';:'�jF`'.� (42,1 ^1 w � iri �i�/��•y},r}OS`��t�� formation. ton,Residing �as�„s�cn , ! `-�----------- �rf�r r t;►t t��`' Washing c�cy c�er� N�t�,Pu�1�� far the State of Pubiishcd in the Re�i}15#i�3�77 Gale Gwin, �„ �lovember 6, � -- puyallup,washingtan .,�. � ,� ... ._ v - -� ------- ------- - __ /� �t \ \ \ \ Y OF RF.i�o�NCiL \ CIT� � ��G � REN�BO C�E R1N G,VE!v ''�` OUN�Y �N a��CE�s N c�ry�c un�'��, C ` G`�Qlv'C�,ICATi� h t�he R�btih aay °�e aase�`� � Sx.1.� �j'UB fiXed d'e ,� Q m �he�ing tO �i� QT+�7�1� .vj`t � 2p15, ati ubttc Coon C�'�k��F' A F F Ypp'` ls t h e Le gal �t me �ri t h e pe"Reh°�C'Ren t o n, a�oatr��'at S�e 10��SS G�ato w°nsider the pl`17 9545�' tiion fOt 1��TZC.� first dul�tbe ee�vaca wo�OW'ng' for gcc io�ated LIC bel�� t��e�f petitioo of t��t o 3� Raio�ec Qf Y�' M Mills, Tesenta po�'he vic�n��Y. nec Ci�1 L�nde�1singReP �l'�'e� �Ave. NFilel��lVPC.\ri.po3�he d el� Of ope ace P � T Renton, �s �aes e�� ne`Nspa�nths �e mp,\\�ntet��e reacm�an� R �z �S a le�elt�ansix s'h d in P�ite�1�O a�en oC ora��O Renton � aY lpli t wc ��cion. w;tt� newSpaP Y1f�Z� to,4� �ri� pcesen. �iie t� R,p�ias�ce pcG w�j1G� has bee e fez�� a Y 1� a,S teP�aina 1 �$ �n �sabt\icies the Y, ai1C� t0T t vJSQ � �ed t1 D foc \ news�a��d is�°g�rere1naf �„�eekly nbee� appx Stiate of Lhe Pmet�Tan e Set��ces Co„�a- � a a �ntecP `Cea wiU�o�rfot- � a wee c1T��latloo� Ub��ati�o�sly as Q�er ras U� a� the an mg�YnPa notice. � �e�e�ti tire da�'� uag �°�'e Rent°�'RsupetiOT Cp u1ar iss"e s ed°Qp°ca�\G25.43o'65�� pri°� n��ish lan�' ton, 'T� deT °f tY1e Shed�n Teg�hi�h wa m��o A geth Re��et t1�e E w�hin$ by oX ubli a�ri) e;10C�• Ciesk Rentp° untiy, S apec ounty. ed was p ent f ow te�p P b�5hed�n Che #j4a6��g� a I,e gal�ew fo�ng�f orm a��'ex . SupPle� bel sta ono�co�Y�0.2015 t ln tre washln�t e��tre eXa rtez �and �abers dU�ing �he notgenta�.Re d to its 5Ubs . e °f lazly dlstl1b tiice�a• � 11C��t�C ��e a�nexed n° p b �:�,� .�,. p beT 3 15 oin�P°b��catio�'�S , � ,�`jj>. a�ZO ��o y> as publ�s�ed�� ed for sa�a�oi�� ; - ` w oU�t of��fee��arg � �e full a��9.OQ• � , et �1 � th�Sum �,.�� ,gentQ�'R��ober,Z �� . G ve, day R rese e tih 30ti1� , inaa�il�s �siag ep�o r�at�,s in �bas�bea a�d Swoz�n Resid�n� S° . gtatie°f was��ngtOn, .� P�bll�fa��re Ga1e G`t'�ln�a ti n1 gtion PUya11UP�