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Council 08/20/2007
Nkro AGENDA 14411 RENTON CITY COUNCIL REGULAR MEETING August 20, 2007 Monday, 7 p.m. 1. CALL TO ORDER AND PLEDGE OF ALLEGIANCE 2. ROLL CALL 3. PROCLAMATION: 16th Anniversary Ukrainian Independence Day - August 24, 2007 4. SPECIAL PRESENTATIONS: a. Puget Sound Regional Council Prosperity Partnership Update b. Washington State Department of Transportation I-405 - Tukwila to Renton- Project Update 5. PUBLIC MEETING: Invited speakers shall present pro and con positions on the regional Roads& Transit ballot measure that will appear on the 11/6/2007 ballot for all voters in the Sound Transit and Regional Transportation Investment District Planning Committee Districts, which includes Renton 6. PUBLIC HEARING: 2008 - 2013 Six-Year Transportation Improvement Program 7. ADMINISTRATIVE REPORT 8. AUDIENCE COMMENT (Speakers must sign up prior to the Council meeting. Each speaker is allowed five minutes. The comment period will be limited to one-half hour. The second audience kirsi comment period later on in the agenda is unlimited in duration.) When you are recognized by the Presiding Officer,please walk to the podium and state your name and address for the record, SPELLING YOUR LAST NAME. NOTICE to all participants: pursuant to state law,RCW 42.17.130, campaigning for any ballot measure or candidate from the lectern during any portion of the council meeting, and particularly, during the audience comment portion of the meeting, is PROHIBITED. 9. CONSENT AGENDA The following items are distributed to Councilmembers in advance for study and review, and the recommended actions will be accepted in a single motion. Any item may be removed for further discussion if requested by a Councilmember. a. Approval of Council meeting minutes of 8/6/2007. Council concur. b. Approval of Council meeting minutes of 8/13/2007. Council concur. c. Community Services Department recommends approval of a lease with Sound Publishing, Inc. for space on the ground'floor of the 200 Mill Building. Expenditure required: $2,367.75; revenue generated over three-year term: $47,354.96. Refer to Finance Committee. d. Economic Development,Neighborhoods and Strategic Planning Department recommends approval to extend and modify the waiver of certain development and mitigation fees associated with owner-occupied housing incentives in the downtown area. Refer to Planning and Development Committee. e. Utility Systems Division recommends approval of the new program request required to comply with the National Pollutant Discharge Elimination System Phase II Municipal Stormwater Permit, and the associated surface water utility rates increase necessary to fund the new program. Lo, Refer to Utilities Committee. f. Utility Systems Division recommends approval of the increases to the water(6%), wastewater (6%), and surface water(6.5%)2008 piped utility rates, and to the 2008 System Development Charges. Refer to Utilities Committee. (CONTINUED ON REVERSE SIDE) 10. CORRESPONDENCE 11. UNFINISHED BUSINESS Topics listed below were discussed in Council committees during the past week. Those topics marked with an asterisk(*) may include legislation. Committee reports on any topics may be held by the Chair if further review is necessary. a. Community Services Committee: Planning Commission Appointments b. Finance Committee: Vouchers; City's Official Newspaper Designation*; Fund Balance Reserves and Annual Capital Improvement Plan c. Planning&Development Committee: Vacation Petition for Portion of Whitworth Ave. S. (VAC- 07-002) d. Transportation(Aviation)Committee: Six-Year Transportation Improvement Plan*; 2007 Walkway Improvement Contract with Pacific Engineering Design e. Utilities Committee: Relocation of Benson Hill Water Line Cost Sharing Agreement with WSDOT*; Benson Hill Water Line Project Bid Award 12. RESOLUTIONS AND ORDINANCES Resolutions: a. Regarding Roads &Transit ballot measure (see 5.) b. 2008- 2013 Six-Year Transportation Improvement Program(see 11.d.) c. Regarding City's official newspaper designation(see 11.b.) d. Agreement with WSDOT re: Benson Rd. water line relocation project(see 11.e.) Ordinance for second and final reading: Water shut off charge(1st reading 8/13/2007) . 13. NEW BUSINESS (Includes Council Committee agenda topics; call 425-430-6512 for recorded information.) 14. AUDIENCE COMMENT 15. ADJOURNMENT COMMITTEE OF THE WHOLE AGENDA (Preceding Council Meeting) Council Chambers 5:30 p.m. Public Defense Contract& Standards; Bike Path&Trails Master Plan Update; Valley Communications Status Report Hearing assistance devices for use in the Council Chambers are available upon request to the City Clerk + CITY COUNCIL MEETINGS ARE TELEVISED LIVE ON GOVERNMENT ACCESS CHANNEL 21 AND ARE RE-CABLECAST TUES.&THURS.AT 11 AM&9 PM,WED.&FRI.AT 9 AM&7 PM AND SAT.&SUN.AT 1 PM&9 PM RENTON CITY COUNCIL Regular Meeting August 20, 2007 Council Chambers Monday, 7 p.m. MINUTES Renton City Hall CALL TO ORDER Mayor Kathy Keolker called the meeting of the Renton City Council to order and led the Pledge of Allegiance to the flag. ROLL CALL OF TONI NELSON, Council President; RANDY CORMAN; DON PERSSON; COUNCILMEMBERS MARCIE PALMER; TERRI BRIERE; DENIS LAW; DAN CLAWSON. (Councilmember Briere was excused from the meeting at 9:02 p.m.) CITY STAFF IN KATHY KEOLKER,Mayor; LAWRENCE J. WARREN, City Attorney; ATTENDANCE BONNIE WALTON, City Clerk;PETER HAHN,Deputy Planning/Building/Public Works Administrator-Transportation;JIM SEITZ, Transportation Planning and Programming Supervisor; ALEX PIETSCH, Economic Development Administrator; SUZANNE DALE ESTEY,Economic Development Director; MARTY WINE,Assistant CAO; PREETI SHRIDHAR, Communications Director; DEPUTY CHIEF TIM TROXEL and COMMANDER DAVID LEIBMAN,Police Department. PROCLAMATION A proclamation by Mayor Keolker was read declaring the day of 8/24/2007 to 16th Anniversary Ukrainian be "16th Anniversary Ukrainian Independence Day" in the City of Renton as Independence Day - 8/24/2007 Ukraine declared its independence from the Soviet Union on August 24, 1991. Citizens were encouraged to join in the special observance. MOVED BY BRIERE, SECONDED BY NELSON, COUNCIL CONCUR IN THE PROCLAMATION. CARRIED. Ukrainian Club of Washington board members Maria Galagan,Mariya Khomlyak, Roman Khomlyak, and Volodymyr Martynovich accepted the proclamation. Mayor Keolker noted that many members of the Renton community are from Ukraine. SPECIAL Puget Sound Regional Council Director of Economic Development Bill PRESENTATIONS McSherry provided an update on Prosperity Partnership, a coalition of over 200 EDNSP: PSRC Prosperity government, business, labor and community organizations from King,Kitsap, Partnership Update Pierce and Snohomish counties dedicated to developing and implementing a common economic strategy. Mr. McSherry reported that during the past year, additional organizations have joined as partners, sixteen of the eighteen 2006 action items have been accomplished,two new alliances were created,regional competitiveness indicators were published, and higher education problems were addressed. Mr. McSherry reviewed Prosperity Partnership's foundation initiative concerning higher education, noting that students are not being provided with skills that the economy requires, and that Washington's degree production is not concentrated in high demand fields. In conclusion, he stated that Prosperity Partnership is moving forward with nineteen 2007 action items, starting an international benchmarking project, conducting roundtable field meetings, and adding two additional industry clusters. WSDOT: 1-405 Corridor Washington State Department of Transportation Project Engineer Lisa Hodgson Program, 1-5 to SR-169 Stage reported on the 1-405 Corridor Program- 1-5 to SR-169 Stage 1 Widening 1 Widening Project Update Project. She reviewed the overall I-405 Master Plan,pointing out that the I-405 funded projects are funded by 2003 Nickel funds ($485 million)and 2005 Transportation Partnership Account funds ($972 million). Explaining that the August 20, 2007 Renton City Council Minutes Page 289 projects are funded to address the worst congested areas along the corridor, Ms. Hodgson noted that the I-405/SR-167 interchange is the second worst congested interchange in the State. Ms. Hodgson reported that the 1-5 to SR-169 Stage 1 Widening Project was awarded to Bilfinger/Tri-State Joint Venture in June in the amount of$91.5 million dollars. The project will add one new north and southbound lane from I-5 to SR-167, add one new southbound auxiliary lane on SR-167, and lengthen the southbound HOV lane on SR-167. Bilfinger/Tri State Contractor Manager Dipak Parekh gave an overview of the construction project and listed the benefits of design-build projects, of which this is one. He stated that construction will begin in September, and the goal is to maintain pre-construction conditions through the project zones by construction staging and coordination with other projects. Responding to Councilmember Persson's inquiry, Ms. Hodgson confirmed that the replacement of the highway bridges that access Renton Hill is to take place during Stage 2 of the project. PUBLIC MEETING This being the date set and proper notices having been posted and published in Transportation: Roads & accordance with local and State laws, Mayor Keolker opened the public meeting Transit Ballot Measure, to consider the regional Roads and Transit ballot measure that will appear on November 2007 the 11/6/2007 ballot for all voters in the Sound Transit and the Regional Transportation Investment District(RTID)Planning Committee Districts. Economic Development Administrator Pietsch reported that the City invited both a proponent and an opponent of the ballot measure to make brief presentations of their positions before Council this evening. King County Councilmember Julia Patterson presented the "pro" position while Dick Paylor, Chair-elect of the Eastside Transportation Association and former Bothell Councilmember,presented the "con" position. Councilmember Patterson explained that the ballot measure targets road and transit investments in the most congested corridors in the region. She reviewed the various proposed transit and road improvements, and detailed how the roads and transit package would benefit the region. Emphasizing that the improvements need to be made now and that the region needs both road and transit improvements, Ms. Patterson pointed out that no other plan is being considered or worked on. Ms. Patterson indicated that the proposal will be paid for by a combination of two new taxes: an additional six cents of sales tax on a$10 purchase, and an $80 car tab fee for every $10,000 the car is worth. She stated that this investment matches the scale of the problem, as the cost of doing nothing is significant. Councilmember Patterson closed by saying that a State-required expert review panel reviewed all the cost figures. Presenting the opposing position, Mr. Paylor stated that 90 percent of all the taxes that the public would pay if the roads and transit package were approved would serve 1 percent of all the trips taken every day, and that every transit agency carries less than 5 percent of all the trips taken every day. Focusing primarily on the transit portion of the package, Mr. Paylor reviewed statistics related to costs, taxes, etc., which he pointed out came from Sound Transit, RTID, Puget Sound Regional Council, and WSDOT. Mr. Paylor reported that while RTID and Sound Transit do not have another plan, volunteers are trying to figure out what should be done as far as transit is August 20,2007 Renton City Council Minutes Page 290 concerned. He described what can be done to address the transportation challenges, and where the investments should be focused. In conclusion,Mr. Paylor stated that the joint package is unbalanced and does little to address the top priority need of the region, which is reducing congestion. A question and answer period commenced during which Councilmembers asked questions pertaining to the annual motor vehicle excise tax and the differences between the proponent's and opponent's cost figures. Public comment was invited. Bill Taylor,Renton Chamber of Commerce President/CEO, 300 Rainier Ave. N., Renton, 98057, stated that the Chamber of Commerce endorses the Roads and Transit ballot measure. Correspondence was read from Shaunta R. Hyde, Boeing Local Government Relations Manager,PO Box 3707, Seattle, 98124, expressing support for the Roads and Transit ballot measure. There being no further public comment, it was MOVED BY CLAWSON, SECONDED BY PALMER, COUNCIL CLOSE THE PUBLIC MEETING. CARRIED. Councilmembers Clawson, Law,Nelson, Corman, and Persson voiced their support for the Roads and Transit ballot measure. MOVED BY NELSON, SECONDED BY CLAWSON, COUNCIL SUSPEND THE RULES AND ADVANCE TO THE RESOLUTION REGARDING THIS MATTER. CARRIED. Resolution #3901 A resolution was read supporting the proposed 2007 "Roads and Transit" Transportation: Roads & regional transportation ballot measure. MOVED BY LAW, SECONDED BY Transit Ballot Measure, CLAWSON, COUNCIL ADOPT THE RESOLUTION AS READ. CARRIED. November 2007 PUBLIC HEARING This being the date set and proper notices having been posted and published in Transportation: 2008-2013 TIP accordance with local and State laws, Mayor Keolker opened the public hearing to consider the annual update of the Six-Year Transportation Improvement Program(TIP), 2008-2013. Peter Hahn, Deputy Planning/Building/Public Works Administrator- Transportation, reported that the TIP details a multi-year work and funding plan for the development of transportation facilities that is required for State and Federal funding programs,used to coordinate projects and programs with other jurisdictions, and mandated by State law. The TIP supports Renton's Business Plan and Comprehensive Plan, and the Growth Management Act. Continuing, Mr. Hahn highlighted the accomplishments of the past year,which include completing the design for the SR-169 HOV Queue Jump Phase 2 project, continuing the design for the S. 3rd St. and Shattuck Ave. S. pedestrian improvements, completing the South Lake Washington infrastructure improvements, completing the NE Sunset Blvd./Duvall Ave. NE intersection improvements, and upgrading school zone signs. Mr. Hahn stated that the total expenditure for the 2008-2013 TIP is $121,428,835, of which $64,462,801 is funded and $56,966,034 is unfunded. In conclusion, he reviewed the various funding sources, the 2006/2007 grants obtained for projects such as the South Lake Washington infrastructure improvements, and the funding partnerships with WSDOT, Sound Transit, and King County. August 20,2007 Renton City Council Minutes Page 291 In response to Councilmember Clawson's inquiry regarding the signal project at NE Sunset Blvd. and Hoquiam Ave. NE (in the vicinity of Hazen High School), Mr. Hahn indicated that due to citizen pressure, WSDOT is reconsidering its original decision of not approving the signal. Referring to Mr. Hahn's comments regarding the new vehicle license fee funding source, Councilmember Persson emphasized that Council has not yet discussed the local vehicle license fee. Councilmember Law requested that the project to upgrade the railroad tracks at Houser Way S.,between Main Ave. S. and Burnett Ave. S.,be moved higher up in the project ranking. Mr. Hahn stated that the City has been in discussion with BNSF Railway Company to determine how the project could be scaled down into smaller pieces, and that the City is still trying to come up with a funding package. He explained that the City's larger transportation projects continue to dominate the TIP, and money is hard to find for all of the projects. In response to Councilmember Persson's inquiry regarding the possibility of starting the railroad track upgrade project sooner that 2010, Transportation Planning and Programming Supervisor Seitz reported that BNSF agreed to work on the project in phases so that in 2010 one or two blocks could be completed and the final section could be completed in 2012. Mr. Hahn stated that staff will try to persuade BNSF to start the project in 2009. Councilmember Corman reported receipt of an e-mail from a resident residing just to the west of the Maplewood Golf Course who was inquiring about the City's walkway program and the lack of walkways in that neighborhood. Reporting that work was done in the subject neighborhood last year, Councilmember Palmer pointed out that although a lot of work is still needed, the neighborhood did receive the largest portion of the walkway program funding. Public comment was invited. There being none, it was MOVED BY PERSSON, SECONDED BY NELSON, COUNCIL CLOSE THE PUBLIC HEARING. CARRIED. (See page 294 for Transportation Committee report.) RECESS MOVED BY NELSON, SECONDED BY CORMAN, COUNCIL RECESS FOR FIVE MINUTES. CARRIED. Time: 8:55 p.m. The meeting was reconvened at 9:02 p.m.; roll was called; all Councilmembers present except Briere. MOVED BY NELSON, SECONDED BY CORMAN, COUNCIL EXCUSE ABSENT COUNCILMEMBER BRIERE. CARRIED. ADMINISTRATIVE Assistant CAO Wine reviewed a written administrative report summarizing the REPORT City's recent progress towards goals and work programs adopted as part of its business plan for 2007 and beyond. Items noted included: * The Fall "What's Happening..." brochure of recreation programs will be available beginning August 24. * The City is working with BNSF Railway Company to replace three downtown railroad bridges at Shattuck,Rainier, and Hardie Avenues. The Rainier Ave. Bridge demolition is complete, and the Hardie Ave. Bridge demolition proceeded well within schedule last week. During the course of the work on the Hardie Ave. Bridge, Renton stormwater management staff became aware of an opportunity to repair part of the City's stormwater / August 20,2007 Renton City Council Minutes Page 292 system under the railroad bridge while the street is closed. This added work will mean that Hardie Ave. is likely to be closed for the entire advertised duration(through August 20) and perhaps a day longer. * A team of assessors from the Commission on Accreditation for Law Enforcement Agencies will arrive on August 26 to examine all aspects of the Renton Police Department's policy and procedures,management, operations, and support services. Agency employees and members of the community are invited to offer comments to the assessment team. AUDIENCE COMMENT Howard McOmber,475 Olympia Ave. NE,Renton, 98056, favored vacating a Citizen Comment: McOmber- portion of Index Pl. NE. He noted the presence of a trail near the vacation area, Index PINE Vacation,A&D saying it will adequately serve the neighborhood. Pointing out that he also Quality Const Co, VAC-07- represents the Highlands Community Association and neighbors in the area,Mr. 001 McOmber stated that he has not found anyone who wants Index Pl.NE to be left open. (See page 294 for further discussion regarding this matter.) CONSENT AGENDA Items on the consent agenda are adopted by one motion which follows the listing. At Councilmember Persson's request, item 9.c. was removed for separate consideration. Council Meeting Minutes of Approval of Council meeting minutes of 8/6/2007. Council concur. 8/6/2007 Council Meeting Minutes of Approval of Council meeting minutes of 8/13/2007. Council concur. 8/13/2007 Planning: Owner-Occupied Economic Development, Neighborhoods and Strategic Planning Department Housing Incentive Extension recommended approval to extend and modify the waiver of certain development and Modification and mitigation fees associated with owner-occupied housing incentives in the downtown area. Refer to Planning and Development Committee. Utility: NPDES Stormwater Utility Systems Division recommended approval of the new program request Permit Program Request& required to comply with the National Pollutant Discharge Elimination System Surface Water Utility Rates Phase II Municipal Stormwater Permit, and the associated surface water utility rates increase necessary to fund the new program. Refer to Utilities Committee. Utility: Utility Rates & System Utility Systems Division recommended approval of the increases to the water(6 Development Charges percent), wastewater(6 percent), and surface water(6.5 percent) 2008 piped utility rates, and to the 2008 System Development Charges. Refer to Utilities Committee. MOVED BY NELSON, SECONDED BY PALMER, COUNCIL APPROVE THE CONSENT AGENDA AS AMENDED TO REMOVE ITEM 9.c. FOR SEPARATE CONSIDERATION. CARRIED. Separate Consideration Community Services Department recommended approval of a lease with Sound Item 9.c. Publishing, Inc. for space on the ground floor of the 200 Mill Building. Lease: Sound Publishing, 200 Expenditure required: $2,367.75;revenue generated over three-year term: Mill Bldg(Ground Floor) $47,354.96. MOVED BY PERSSON, SECONDED BY CORMAN, COUNCIL APPROVE ITEM 9.c. AS PRESENTED. CARRIED. August 20,2007 Renton City Council Minutes Page 293 UNFINISHED BUSINESS Community Services Committee Chair Corman presented a report Community Services recommending concurrence in Mayor Keolker's appointments of Yong Lee Committee (unexpired term expires 1/31/2008) and Brad Miller(three-year term expires Appointment: Planning 6/30/2010) to the Planning Commission. MOVED BY CORMAN, Commission SECONDED BY PALMER, COUNCIL CONCUR IN THE COMMITTEE REPORT. CARRIED. Finance Committee Finance Committee Chair Persson presented a report recommending City Clerk: Official Newspaper concurrence in the staff recommendation to award the bid for the official newspaper to the Renton Reporter,published by King County Publications Ltd. The Committee further recommended that the resolution regarding this matter be presented for reading and adoption. MOVED BY PERSSON, SECONDED BY CLAWSON, COUNCIL CONCUR IN THE COMMITTEE REPORT. CARRIED. (See page 295 for resolution.) Finance: Vouchers Finance Committee Chair Persson presented a report recommending approval of Claim Vouchers 262811 -263511 totaling $2,646,202.12. MOVED BY PERSSON, SECONDED BY LAW, COUNCIL CONCUR IN THE COMMITTEE REPORT. CARRIED. Finance: Fund Balance Finance Committee Chair Persson presented a report regarding revisions to the Reserves/Annual Capital Financial Management Policies. As a result of the review of fund balance Improvement Plan (Financial reserves and the annual Capital Improvement Plan,the Committee Management Policies recommended that the Financial Management Policies be revised as follows: Revisions) 1. Clarify that the quarterly financial report shall be submitted to the City Council in writing. 2. Clarify that the quarterly financial report shall include a list of any outstanding interfund loans. 3. Change the budget basis from cash to Generally Accepted Accounting Principles (GAAP). 4. Clarify that Section 1.a concerning Stabilization Funds refers to General Government Funds as a whole. 5. Add a requirement for two-thirds affirmative approval of the City Council before an expenditure can be made from the "anti-recessionary reserve." 6. Modify the reserve targets for the Golf Funds to be between 25 percent and 50 percent of operating expenses. 7. Delete the Debt Policy number 11.a. regarding competitive sale of City bonds. 8. Add a policy calling for full disclosure of City financial information to those holding or considering the purchase of City bonds. The Committee further recommended that these policies be included in the Mayor's proposed 2008 Budget document that will be presented to the City Council at the end of October 2007. This action does not close the Fund Balance Reserves and Annual Capital Improvement Plan referral of 3/12/2007. MOVED BY PERSSON, SECONDED BY LAW, COUNCIL CONCUR IN THE COMMITTEE REPORT. CARRIED. Transportation (Aviation) Transportation (Aviation)Committee Chair Palmer presented a report Committee recommending concurrence in the staff recommendation to approve a design Transportation: 2007 Walkway contract with Pacific Engineering Design, LLC for the 2007 Walkway Improvement Project, Pacific Improvement project in the amount of$152,056.63 to be completed 12/31/2008. Engineering Design The Committee further recommended that the Mayor and City Clerk be August 20,2007 Renton City Council Minutes Page 294 authorized to sign the design contract. MOVED BY PALMER, SECONDED BY PERSSON, COUNCIL CONCUR IN THE COMMITTEE REPORT. CARRIED. Transportation: 2008-2013 TIP Transportation (Aviation) Committee Chair Palmer presented a report recommending concurrence in the staff recommendation to approve the annual updates to the 2008-2013 Six-Year Transportation Improvement Program and the 2008 Arterial Street Plan. The Committee further recommended that the resolution regarding this matter be presented for reading and adoption. MOVED BY PALMER, SECONDED BY CORMAN, COUNCIL CONCUR IN THE COMMITTEE REPORT. CARRIED. (See page 295 for resolution.) Utilities Committee Utilities Committee Chair Clawson presented a report recommending Utility: Benson Rd S Water concurrence in the staff recommendation to authorize the Mayor and City Clerk Line Relocation, WSDOT to execute a utility construction agreement with Washington State Department of Transportation for construction of the relocation of the water line at Benson Rd. S. and I-405. The Committee further recommended that the resolution regarding this matter be presented for reading and adoption.* Councilmember Clawson noted that WSDOT is paying half of the construction cost. *MOVED BY CLAWSON, SECONDED BY LAW, COUNCIL CONCUR IN THE COMMITTEE REPORT. CARRIED. (See page 295 for resolution.) CAG: 07-140, Benson Rd S Utilities Committee Chair Clawson presented a report recommending Water Line Relocation, concurrence in the staff recommendation to award the construction contract for Ceccanti the Water Line Relocation for Realignment of Benson Rd. S. and I-405 Overpass project to the low bidder, Ceccanti, Inc., in the amount of $869,421.66. MOVED BY CLAWSON, SECONDED BY LAW, COUNCIL CONCUR IN THE COMMITTEE REPORT. CARRIED. Planning& Development Planning and Development Committee Vice Chair Clawson presented a report Committee regarding the vacation of a portion of Index Pl. NE. The Committee Vacation: Index P1 NE, A&D recommended concurrence in the staff recommendation to preserve the street Quality Const Co, VAC-07- vacation status as approved by Council on 5/7/2007. The current approved 001 petition amended the vacation area to exclude the east 15 feet of the requested area; required the petitioner to re-establish the existing trail in the retained right- of-way with reconnection to the existing trail north of the vacated right-of-way and that costs for such relocation be deducted from the value established for the vacated right-of-way as part of the compensation phase of the street vacation; and required the petitioner to provide satisfactory proof that outside utilities have received and are satisfied with any easements necessary to protect their facilities. The 2007 Citywide Comprehensive Walkway Study and the Highlands Task Force, Phase II, which are both currently underway, will provide an opportunity for a comprehensive review of the City's walkways and will determine if there is a continued need for the 15 feet excluded from the area of this vacation request. At the conclusion of these review efforts, if the excluded 15 feet has been determined as unnecessary for walkway purposes, the Committee encouraged Kevie Russell to initiate a vacation petition. The Committee further recommended that the filing and processing fees be waived for Mr. Russell should he decide to file a petition for this area. Councilmember Clawson moved to concur in the committee report. The motion died for lack of a second. August 20, 2007 Renton City Council Minutes Page 295 Planning and Development Committee Member Palmer noted the existence of a nearby walkway that is more heavily used, and expressed her support for dividing the vacation area down the middle. Councilmember Clawson reported that Council already approved the vacation and would need to undo its previous action. City Attorney Warren explained that adoption of an ordinance is necessary to finalize the vacation, which has not yet occurred, and therefore Council can still change its decision. Continuing,Mr. Clawson explained that for petitioner Keith Demps to subdivide his property, he needs to have 35 feet of the 50-foot vacation area. Mr. Demps is obtaining the 35 feet via a purchase agreement with the other affected party. Mr. Clawson expressed concern regarding causing Mr.Demps to delay his project as he is redeveloping in the Highlands area which is what Council is encouraging. He supported enabling Mr. Demps to go forward with his project,but voiced concern that a bad precedent is being set because the Highlands Task Force will not have an opportunity to review the walkway study prior to this action. Mr. Clawson noted that at this point,the City does not know what the neighborhood wants with regards to walkways. Councilmember Persson pointed out the presence of the other walkway near the vacation area. Councilmember Corman commented that development in the Highlands is being encouraged; however,parties who are interested in developing property are now being held up. He supported the initial request of dividing the vacation area down the middle. City Attorney Warren stated that a vacated area is normally split down the middle, and Council is strictly removing the retained easement for the walkway. MOVED BY CORMAN, SECONDED BY LAW, COUNCIL APPROVE VACATING THE PROPERTY AND REMOVING THE RETAINED EASEMENT ON THE 50-FOOT VACATED PORTION. CARRIED. RESOLUTIONS AND The following resolutions were presented for reading and adoption: ORDINANCES Resolution #3902 A resolution was read updating the City's Six-Year Transportation Improvement Transportation: 2008-2013 TIP Program, 2008-2013. MOVED BY PALMER, SECONDED BY PERSSON, COUNCIL ADOPT THE RESOLUTION AS READ. CARRIED. Resolution #3903 A resolution was read designating the Renton Reporter as the City's official City Clerk: Official Newspaper newspaper. MOVED BY LAW, SECONDED BY CORMAN, COUNCIL ADOPT THE RESOLUTION AS READ. CARRIED. Resolution#3904 A resolution was read authorizing the Mayor and City Clerk to enter into an Utility: Benson Rd S Water interlocal agreement with WSDOT for the construction of the relocation of a Line Relocation, WSDOT water line in Benson Rd. S., entitled "Utility Construction Agreement-Work by Utility-Actual Cost." MOVED BY CLAWSON, SECONDED BY LAW, COUNCIL ADOPT THE RESOLUTION AS READ. CARRIED. The following ordinance was presented for second and final reading and adoption: Ordinance#5300 An ordinance was read amending Section 8-4-34 of City Code by adding Finance: Water Shut Off Subsection C. providing for discretion in administration of the fees provided for Charge Adjustments for therein. MOVED BY PERSSON, SECONDED BY CLAWSON, COUNCIL Special Circumstances ADOPT THE ORDINANCE AS READ. ROLL CALL: ALL AYES. CARRIED. August 20,2007 Renton City Council Minutes Page 296 NEW BUSINESS Noting that emergency medical aid call response times have been increasing and Fire: Emergency Response that nearly half exceed the national acceptable standard of five minutes, it was Times for Medical Aid MOVED BY LAW, SECONDED BY PERSSON, COUNCIL REFER MEDICAL AID RESPONSES TO THE PUBLIC SAFETY COMMITTEE. CARRIED. EDNSP: Downtown MOVED BY NELSON, SECONDED BY PALMER, COUNCIL REMOVE Wayfinding System THE TOPIC OF WAYFINDING SIGNS FROM THE TRANSPORTATION (AVIATION) COMMITTEE AND REFER THE MATTER TO COMMITTEE OF THE WHOLE. CARRIED. ADJOURNMENT MOVED BY CLAWSON, SECONDED BY PERSSON, COUNCIL ADJOURN. CARRIED. Time: 9:47 p.m. /de/16r-) Bonnie I. Walton, CMC, City Clerk Recorder: Michele Neumann August 20, 2007 RENTON CITY COUNCIL COMMITTEE MEETING CALENDAR k Office of the City Clerk COUNCIL COMMITTEE MEETINGS SCHEDULED AT CITY COUNCIL MEETING August 20, 2007 COMMITTEE/CHAIRMAN DATE/TIME AGENDA COMMITTEE OF THE WHOLE MON., 8/27 No Meeting (Council Holiday) (Nelson) MON., 9/03 No Meeting (Labor Day Holiday) MON., 9/10 Emerging Issues in 6 p.m. Transportation/Aviation and Economic Development; Information Services Strategic Planning Briefing *Council Conference Room* COMMUNITY SERVICES (Corman) FINANCE MON., 9/10 Vouchers; (Persson) 5 p.m. Maplewood LLC Utility Bill Adjustment • Request PLANNING & DEVELOPMENT THURS., 9/06 Owner-Occupied Housing Incentives (Briere) 1:30 p.m. Extension and Modification; 2007 Comprehensive Plan Amendments; Political Sign Placement PUBLIC SAFETY (Law) TRANSPORTATION (AVIATION) WED., 9/05 CANCELLED (Palmer) UTILITIES THURS., 9/06 2008 Piped Utility Rate Proposal & (Clawson) 3 p.m. System Development Charges; National Pollutant Discharge Elimination System Phase II Municipal Permit New Program Request NOTE: Committee of the Whole meetings are held in the Council Chambers unless otherwise noted. All other committee meetings are held in the Council Conference Room unless otherwise noted. �07 �J CITY RENTON 4. g co Mayor J �; Kathy Keolker v,�'rC® fi*Wej ProcZctM'wttCo-vli Wherein; on August 24, 1991, Ukraine declared its independence from the Soviet Union and in December of that same year, over 90% of Ukrainian citizens confirmed their desire to live in a sovereign state through a national referendum; and Wherecw, Ukraine has declared its course toward democracy and the establishment of a market economy, as well as re-integration into the international community of free democratic states; and Wherect4; during the past sixteen years Ukraine has continuously advanced along the path toward a stable democracy founded on market economic principles and has achieved tremendous success in this respect,which has been noted by the United States, as well as the international community, with numerous legislative acts passed to improve political and economic relations with Ukraine; and Wherein; the people of Ukraine reaffirmed their desire to live in a democratic state during the Orange Revolution of 2004 by reclaiming their right to free and fair elections; and Wherea4, the Ukrainian citizenry confirmed it unwavering will to integrate into the Euro-Atlantic community by electing leadership that continues to guide Ukraine toward that goal; and Wherecw, Ukraine continues to act as a guarantor of regional stability by actively and successfully assisting in conflict resolution between neighboring states, as well as maintaining friendly relations with all Imoloe its neighbors; and Wherein; Ukraine has proven its commitment to international peace and security by declaring its goal of NATO membership, acting as a reliable and long-term ally in the war against terrorism in Afghanistan and Iraq, and cooperating in international programs aimed at improving security throughout the world; and Wherecw,the recent resolution of the political crisis in Ukraine by means of political dialogue and without the use of force demonstrates the high level of democratic culture that has already been established among Ukraine's leadership, as well as at the grass-roots level; Noiu, Therefore; I, Kathy Keolker, Mayor of the City of Renton, do hereby proclaim August 24, 2007, to be 16th A era ry U , I nciopmcioncei Day in the City of Renton, and encourage all citizens to join me in this special observance. In witness whereof, I have hereunto set my hand and caused the seal of the City of Renton;.o b-. .ffixed this 20th day of August 2007. -L , Pc: 1 1,P _ > � Kathy Keo( .<)', �+."fel =' Mayor of the City of Renton, Washington � 1055 South Grady Way-Renton,Washington 98057-(425)430-6°' , , '' '' ' AHEAD OETHE CURVE Thispaper contains 50%recvcleamat-nal 30%p.,) , i a . ^ ,,,:::,,,,,,t,•,-: ,,,,,,,..:7•,,,, ,,,,,,,,,,,,,,45, " ? `i41 Puget Sound Regionalional Council� ;r¢lY Cutin Au us o Puget Sound Regional Council • Regional Growth, PSRC.A , Economic and c "�� 'z Transportation Planning '_ a ': • I!i :: II ation rojects)issues• Partnership Prosperity Partnership - �; Baa Summer Briefing 2007 Federal MPO ,". State RTPO i_ ...t _-, ', I mtioScoSe r I oven.ieur. Achievements I 2001 AOGonf' I Next Steps Prosperity Partnership Co-Chairs i Prosperity Partner Growth t,,, Vis• . , t ,, 7- min )E t P .. tm -- Mark Ma Ryder, Torero Brad Smith, Scott , Emmert YWCA MTorero, SP,sor Cancat, 00b Rro Charles [ yya President, President Chairman Vice- President Laden Pierce Veneer, Mncefl 1, ^' v} 24 Pierre %ehdat Ch 0500 t gm. UNversM Strateg!c and Chet P-Psrden[, Arid CEO, Canty Washmytai seattlP. 1111 Se ar.xm` 0f Itnbabves EvaroOve, MlQosnR Bove, Executive state Labor Community ^ washavton UwaPma0 Corporation Lommemal CouncA College —.g — ! Airplanes TZ-Zt Msmct ? FAMIIIIIIIIIIIIIIIIIIIIIIIIIII TT y:',3bbmMrlsUM Mrcx f.pp6 601•mbery300b March;x006 Seltenpvr 410os IW91,2007 p ""' W N� ,..A hohna10' c.,Wer+n 'R��>!f w.`wYer....::•...m. [�. �({{}}��.....x��,-llt3«6L tntmdu<tnn i Overview -1 Achievements , 2007Activns i Next Step. (nerddocthn Crcery*n, I Avhievementsw i 2001 Acta., I .Next Steps `,t. Two Pronged Strategy 4*:._. Accomplished 16 2006 Action Items li PROSPERI TY PART NERSN I P } ✓work within the region to ECONOHK SiN T ' 9l Pore. _,e '�md Yvasmaximize a potentialinfor tl" Two-Kron ` 0,rl �C ft: success of a regional O 40' :`D Rcbuad 1 --- Y'nyre� Zn ,„ -. ,z t=_ --'7',... transportation investment ��' �2a e e 8 t0r .. ,04,:;:n4; � �xcrr - ballot measure. �1 , ES °�_ u • aM E ✓Develop a stmt to .x..,, a .� nwnora tyres • J' .?.�.��::.t'-- P strategy �.�w. Q� R , 'i _15';11-. "' - celebrate and promote arks O FOUN ATIONS df o ,�" ""` ;V.=.., ,....,. and culture as a strategic COMPE71TivE „ tT=::�.=.==---.--.- :�•� - economic advantage' w Y zxa<6y • gt1... r�was »r v.., 0 °T .., r- y ✓Develop a vision for the w i life sciences. ', 4ti w, N1T� ti�.�. .,_":= 7:-..,-.. `--V - ✓Integrate the Regional ' .),-,-,-4,1-14---,----- a; rot a N Economic Strategy into the -z --, VISION 2040 long range � " •". .� - -�.�... _�___ regional planning document. mnvancean I a'001-oem `I 'Achio€rn nts , 2007 act!Pn, I Next steps mvmneewn j overolew I: reis�A,emanss z oc 000cns l nexe seeps 1 • ••, Created New Alliances :i •iii Published Regional Competitiveness Indicators top R&D subHes in Wash ow.ROM mg ki--- n Washington..CteanTechnotogyAt;iance #" ,,.. I Aerospace Futures Alliance i `Nmhvg[nn _ i •First statewide •First statewide clean technology E..MMd dN aerospace industry industry association '° i association ,.«...__ ---*...W_. ------w-.,-• •Includes aerospace •Includes green builders,alternative """m" :_m manufacturers, energy businesses and related " suppliers and related companies S,q companies ,—�` ;4 •100 members by the •Over 30 members in its first six ./ end of the year months of existence - ,m ietroduchan I Overview I Ac0levemenoo I 2007 Action. I Next Steps Ietrnducnee 1 Over..w : I Achievements I 2007 Accent I Next Steps. Addressed Higher Education problem: Washington's degree production is not We produce too few degrees : concentrated in high demand fields Washington Leads the Nation in Using Bachelor's Degrees, But is 36th in the Nation in the Production of Bachelor's Degrees cemil m �%•e Swrcn u i.O.pahner✓d Com.e.ce 2 YS i X U.5d.nmp h'T #t 673% ., .. . h$ Nmw. ... rn • H 'rrt Zc;gr ae ate''' , x ai er 2x v sQ� X.. .,.s 3 M d I Wwmch ''s%✓ ✓ e emwidso-ed/°s-n,.uoe/ smu0"i..0n,0mn0r v,ex.r,-v.e:dd,apn"•".vea entTa V:1;17 t ..7n.R d;'n tyr.i b.E.°�.�.1w." Washington Job Openings R uirinfl Bachelor's Degree,2007-2012 inCurrent Pe roProduction Washington's A-Year System wor.za 10,000 xOcie!"/ eeee re anon Soune.Emdwnen Securry O.pMmeM Swc¢Imgerishr t2iedmr Ed�ka Oow Senn. work"" ey,"c/ 10,000 engine."" E;:,'.f Wmhirga HiO.Eames.Cardnarg Bond 10?0G .rork.n ,°;72,IS, r rata: :IB�.^h Souse USC.pv,en.,.a&Dewe.2001 Stam SCMre 6 rcvelopyxdpxer ,ear dos tntwductson I Overview I .4c0ievement. I 2007 Actions I Nextstep. Introduction I >'.Overview I Aclriescrnents ,I': 2007 Actien. I Next Steps Higher Education Goals for our State a ` Filled Existing Capacity in Higher Education In order to meet the needs of our students and workforce,our state's colleges and universities need ' �& to produce: • 36,625 total degrees by 2010(8,000 over 2005 levels) • ir ,x' , • 38,625 total degrees by 2020 d `,, PLUS ;: 6' Aklit C .. • Concentrate those degrees in high demand fields such as computer science,engineering,life sciences and secondary teachers in math,chemistry,physics,ESL and special education ✓2007 Goal:Fill existing capacity for degrees in high demand • Add capacity in Community Colleges for accompanying fields at Washington's higher education institutions. two-year degrees. Introdacten I overview I m9014 I 2007 Actions I Next steps Introduction I Overv.ew I Aahiev'ruents I 2007Ac0ons I Nee steps 2 4 •ii Next Steps in Higher Education • .:. Moving Forward: 2007 Action Items highhighimpact fields. ✓Research impact of ✓ Fund current capacityto demand, 2007 Act:en item. ».»�; Washington's business :0 Study capital needs beyond current capacity. -- closures rate. �r IDµ 3. Develop and implement a public awareness pilot project. 7- ,;=•-,,--•--:;:::=L--.1•L' I` ._ %Create a new Foreign A. ..M„ ,, •' Direct Investment • ?:-,"1::-.. WorkingGroup 4. Provide more financial aid to encourage students to pursue degrees in ..z.:.-. ...-.....2"•-•--:-•-i-••••••=:.-_-=:-.-=.1-...:--'r ' �_ u __ high demand,high impact fields. —.,,......!.......^1.4.-,–,.....,...7L... µ > Finalize efforts in Social 5. Fund FTEs at actual cost. Capital: :-.=.-......--.-....-..t--•-:.,-------. < •,-----,,...-:-.7;:::: o Cultural Taskforce 6. Adopt accountability standards and outcomes-based management ofi.-....,,,-.:-iw o Regional Housing higher education. w..-" 77 3 Strategy Working � Group "xc ve. -" 40- '• o Minority Economic 7. Commit to a percentage of general fund budget for higher education d_ investment. `','"..-• Wim, .».' Development Working Group '..msrodpctwn I.::. werdew I '.,.-atiutex nenti I 2007aeuoe:.. l'..Next Steps 1. int,odp<tion i ;:.Oeennew I arniavemenm I 2007A<tmne: t' Nextsteps, a! '° Starting International Benchmarking Project `si ^' Bringing the Region and the State Together Comparison to Peer '*.� "c �. Prosperity Partnership Roundtable e `- International Regions: )• Field Meetings • Barcelona,Spain ;< : pa ��, t ���� � (Next Meeting-Kitsap County, *:4*- .4 • Daejeon,South Korea :5,-.:j x� September 14,2007) !' • Dublin,Ireland x F Fukuoka Japan r ..; .�`� �, , a•:,,,,,,,,,.c-7.,-. • Helsinki,Finland � �� • Melbourne,Australia s; yt•S s b i :~,y .° ,,2,,, • Munich,Germany1:::;...:1::.:".'::',"."2-,L� fa• �e Central Washington Tour "• 3 m ,,,L41.::-..--, , _, G June 25-27,2006 kt ."z.-. ,A . • Stockholm,Sweden = h v ' '9 � .. - 1 : •'9 � * :'„ 1 a f ofVlYw . 9 . • p.,:"` ,} ' v.... Intredncten I Overview I6 Achievements I 2467 Arbon, I Next Steps Introduction I Overview I Achievements I 1oozatoms I Next StePs :g Adding Two Additional Industry Clusters .* '. SAVE THE DATE! Indust tyCluster Employment by County Prosperity Partnership " �_ Fall luncheon - " ,' Cluster King Kitsap Pierce Snohomish Total Thursday,November 1,2007 3. Employment 11:30 am Military 7,400 13,290 23,950 7,610 52,520 The Westin Hotel,Seattle ' ;WS ' Tourism 49,024 2,820 8,730 7,982 68,556 _ '' t •Tourism:Travel spending generates an estimated$760 million in ivy ,� sa state and local tax revenues annually. _ i - ,' r •Military:Sales by Puget Sound companies to local bases total ,yr,', ,t "` $350 million per year.In addition,businesses in the region contract '' '4 %/4 '' '' 'a t v with bases in other states and countries,as well as directlywith the ' Pentagon. � iet,eauct,on o•arview ` R`.... .t s 1, E Achievements I2o67A<tmns. I. "raa-estop. mvmn<tien I o•nn,mw I A<h�e•empnts I '.' 2007 Actions I Nextstnpr 3 .,- Agenda ■ 1-405 Overview 1-405 Corridor Program -� • Project scope, funding, benefits 1-5 to SR 169 Stage I Widening Project ■ Project dates, milestones ■ Design-build project team August 20,2007 Renton City Hall 405 7 _'' -, (4U6 ; o " � , 1-405 Funded Projects :: - Regional 1-405 Master Plan: : .Consensus - nE,B2m St Bridgem "a., " •EIS Record of Decision,2002 HE„2np...chat, .� ..'. _ 'oe 07-,9 T Roadways ..-a•onaB.e., 6 7e .2 new lanes in each direction � R6nB�umSRszoBraided Cross, ..._.1507 1 ."'' "#` nu loin se B 6•ro e •Local arterial improvements y112th Soto.SE to SE Bth St ransit&Transportation Choices , f „annVe tte 90 B5 ; as atn :7f7.477,1 i •Bus Rapid Transit system ,: = 6B«,n uw„4,nRh SB.- ...... .so •9 new transit centers added "t. 20 •50transit service increase 14i„ q S18 s3o "I •NOV'direct access ramps and flyer stops SR 18798 1405 to 94,Sotn 9t 507 , •5000 new Park&Ride spaces �,„� - on SOStn,er•nenee........ - . ._„o •1700 new vanpools ..}.�. is --. rmatS Rmket sooasos.............._sees .. 5 k-} 2665 Recount ..._5974 eM Environmental Enhancements - ^rr�. 1.406 Corridor Taal sea,e Investment s,,a57 -Arn40 ' arm X405 0.--..--- :::: ===- ::;; I-405 Congestion Chokepoints , 1-405, 1-5 to SR 169 Stage 1 Addressing the Worst FirstWidening Project B^nn.en°na i © * Hnrdwo•.a .F I-5 to SR 769 Stagg 1 $91.5 Ur' �� � l�l .6 � Ezmulsommom � , 5, q, 44 `. One new north and southbound � .-,y -=e” general purpose lane from 1-5 to 'rti6'^'•` 't' �r` . .'.�. SR 167 .� • One new southbound auxiliary i"y; tillMwttw '. et A • lane on SR 167 1',••-77>,- 5 .. • Lengthen southbound HOV lane on SR 167 1 j l •r•.'+f77yyr' „ea„* .u FS.SR 166 .� d7. 1 �"" - "1•- 405) �_ 1405] ®.-.�.._ 1 ,. ) Construction Project .. - Project Team �G '"-, Overview ,417,77.-7 • Bilfinger/Tri State Joint Venture E �� Design-Build Team �� Lu� .• �. David Evans&Assoc. !,.............,./...**,...., � �� • • Shannon&Wilson i ,, • DKS t PBS Environmental cir S • Envirolssues • Osborn Pacific • Obunko Engineering 707 South Grady Way Lisa Hodgson Keith WoolleySuite 550 WSDOT Doak Parekh • Why design-build? Design-Build Team City of Renton • Key milestone dates • Staged construction priorities �4� 7.: Keeping Traffic Moving During Construction Questions? �_w ;.7(-"'-... --- Lisa Hodgson Dipak Parkeh • Goal:maintain pre- • WSDOT Project Engineer • Bilfinger/Tri-State construction conditions u through project zones hodgsol@wsdot.wa.gov Contractor Manager '.. • dipak.parekh@bbcius.com • How? • Construction staging 'In-person Mtgs • Coordinate with other •Businesses projects Neighborhood Meetings • Real-time information •Construction Alerts • Stepped-up incident •Listserve response • Maximize transit use Web Page •Local papers •Malls,community centers IBJ • =— ,05 aw Existing I-405/SR 167 Interchange ` "' I-405/SR 167 Interchange Implementation Plan :+Y` ,y - �40 j X405 �= 2 i ....,.. , ,. , k ''*•t* •=••' • * ' • ,,, ,,„nbron p„4. • . .-,,,,l, 11 ' - s••,... ' * : . t ,ky, t ,.- ''''—',, 4=T•#.1 ..-',„ 1 1,,1 7- .'-''' # s. ;'...v...".t.. '':-••-., mtbgl a'ant.l°ICnn..'.Bank * , TheB 'Z:04." th1"2,e.-Y 5 .'1ii<:,.It,ie‘'tr•.A•.*•*R%•-•Z:,4.l".i:4wt*•.'4.•,t...14.It.•4,t0• 1.,i10 110•I.-.lI,4t:li41 )1* .7i11 1: "%, ',.•.''4',%t,,,/--•`.,•••.'-.,.#1..,, \,f•0•\r'<.-,,_,,...;r,1 z, , t• •.• *, f-vI..'wer.,Pr°,7=other.qu'tt*,,t*. lyn',*•*';'.141•: ,;1, ---. ....- :p.,—"-- 2.7 ', ' ., Z.A;4•',P.iollit*v ... ' 4,\ . prqe0 ---- . ,. ,--2 3 INTERSTATE' 405 Corridor Program Congestion Relief&Bus Rapid Transit Projects 1-405 Renton Construction Coming Soon What is the Project? 1-5 to SR 169 Stage 1-Widening The 1-405/1-5 to SR 169 Stage 1-Widening Project will: ft • Add one new general purpose lane in each direction on 1 1-405 from SR 167 to 1-5 NE 5 • Add an auxiliary lane on southbound SR 167 between , -_i, 1-405 and SW 41st Street Tukwila • Extend the SR 167 southbound HOV lane north to 1-405 ' " „ • Replace the 1-405 bridges over Springbook Creek and N --aos Renton Oakesdale Avenue A CED • Rehabilitate multiple ramp connections at SR 167 and SR 181 4 SE+aau sr Nom Nickel Why is WSDOT constructing these new ',! Transportation lanes? Project Cost: $151.97 M iliiiiiiiii■ Partnership Account High volumes of commuters travel through this area, making the 1-405/SR 167 interchange one of the most congested in the state. This project is a first step to address the congestion at this critical interchange. The U new lanes will help to increase total capacity between 1-5 it*.: rt and SR 169 by 50%. , What can drivers do'? �• t -� � • Check flow maps before you travel: *"; wwwsdot.wa.gov/traffic/seattle '` f w. • Dial 511 for travel information ` I t - • Visit the project Web site for scheduled lane closures: ► .. wwwwsdot.wa.gov/Projects/i405/15toSR169 e. • Plan your bus ride with Metro http://TripPlanner.Metrokc.gov :,`k • Find a rideshare partner: www.RideshareOnline.com r • i' Increasing safety is one of our priorities y This project reduces congestion-related accidents byii„ t increasing capacity on north and southbound 1-405. ' , Congestion-related accidents-rear-end and side-swipe ' crashes-make up the largest percentage of accidents t on 1-405. YI . E i :_ 5 r 4. ;I 1 - '' Project Timeline p T July 2007 Pre-construction activities Northbound congestion on 1-405 through Renton September 2007 Full construction begins 2010 New lanes open to traffic Ink Washington State August 14, 2007 �, Department of Transportation • 405 Corridor Program Congestion Relief&Bus Rapid Transit Projects 1-405 Renton Construction Stage 2 What is the Project? The 1-405/1-5 to SR 169 Stage 2-Widening and SR 515 Stage 2-Widening and SR 515 I/C Interchange Project will: • Construct a new half-diamond interchange at SR 515, i including an off-ramp from southbound 1-405 to SR 515 ' ,NE3tdS1. i and an on-ramp from SR 515 to northbound 1-405 _ `� • Add a northbound and southbound lane on 1-405 Tukwila'` C` �' - \An) between SR 167 and SR 169 \. • Reconstruct the Benson Road Bridge over 1-405 X18 _- 405 -_— Renton Why is WSDOT constructing this Project? A CD The Stage 2 Project will reduce traffic congestion, im- ® mim Nickel prove safety, and improve access to Renton, particularly .-r..,': SEl8OfhSI., on to Talbot Hill and the Soos Creek Plateau. This project is Partnership A Project Cost: $172.81 M Partnership Account a step forward to address the congestion in the Renton area. This new project is part of a broad long-range plan Interchange approved in 2002 by the cities and counties along the corridor, the Federal Highway Administration, Federal Transit Authority, Sound Transit, King County Metro and WSDOT. This vision includes four new freeway lanes, bus rapid transit and other improved transit services, additional HOV direct-access points, vanpools, carpool lanes and more park-and-ride spaces. What are the Project Benefits? • Safety. The new interchange provides enhanced access to Renton from 1-405, resulting in reduced con- gestion-related accidents. • Congestion relief. The new interchange reduces congestion at 1-405 interchanges at SR 167 and SR 169 and for the SR 167 interchange at S 180th St. The new interchange improves access to neighborhoods southeast of Renton. The 1-5 to SR 169 Stage 2 Project reduces congestion by adding a northbound and sounthbound lane, increasing capacity between SR 167 and 169. • Environment. WSDOT's 1-405 Corridor Program team is designing the project to avoid and minimize im- pacts to the environment. • j}as1. Project Timeline r -- �:; �i �.- 2009 Construction begins -..% - , < y9• }� 2011 Open to traffic ' • , ; ' ,4 %:• Looking north on 1-405 in Renton nWashington State Aunu.et 14 2nm �, Department of Transportation (INTERSTATE 405 Corridor Program Congestion Relief&Bus Rapid Transit Projects What is the Springbrook Creek Wetland and Habitat Mitigation Bank Project? What is the Springbrook Creek Wetland and Habitat Mitigation Bank Project? What is Wetland WSDOT and the City of Renton launched an innovative partnership to re-establish and enhance over 130 acres of wetlands in the Renton area Mitigation Banking? addressing the effects of development within the city and from WSDOT Mitigation banking has been transportation projects.Additionally, WSDOT and the City of Renton are defined as wetland restoration, building an interpretive trail throughout the site to educate the public on the creation,enhancement, and benefits of wetlands and the habitat they support. in exceptional circumstances, preservation undertaken expressly Why is WSDOT creating this wetland mitigation bank now? for the purpose of compensating Springbrook Creek Wetland and Habitat Mitigation Bank is an early for unavoidable wetland losses in environmental investment(EEI) project. The Springbrook Creek Wetland and advance of development actions, Habitat Mitigation Bank will provide mitigation for highway construction and when such compensation cannot be city development projects prior to the impacts on wetlands and other aquatic achieved at the development site resources. When the project is complete, WSDOT will have enhanced 110 or would not be as environmentally acres of wetlands and buffer, restored and created a larger connected 20 beneficial. 1995 Federal Guidance acres of wetland; totaling 130 acres of wetlands. Thousands of native plants will be planted over the entire project site; including black cottonwood, pacific on Wetland Mitigation Banking(U.S. willow, sitka spruce, western red cedar, snowberry, douglas-fir, and big-leaf Army Corps of Engineers 1995). I maple. These trees, shrubs and plants will attract and create habitat for many -- , different species of wildlife. - r.. `.. . 7 '" ` v r ii rr."7►. t . ` � s + , 1 4:1 6... ttlG .. - �, 7'�, '�,... IF ,01." ell , T.,..,- ^ ...i, ` Y f yaw 411,,000.„ a► ... V.`k .1.' , 1006:+4 f -,.. -.4,.,‘.1:. 405 Project Timeline Construction of Springbrook Bank is underway. Reaching this goal has been ` a two-year process of planning and designing the project;coordinating with regulatory agencies, including the U.S.Army Corps of Engineers, Washington Department of Ecology, U.S. Fish and Wildlife Service, and U.S. Environmental Protection Agency; 181 and negotiating numerous agreements required to formalize this project. The final • "•- agreements have been signed, the project permits have been obtained, and the i 1fi7 construction contract has been awarded to Scarsella Brothers. Y 1 9 • Scarsella Brothers was selected as the primary contractor to build this project in i �._• x 2006. • Construction kick-off event held Dec. 7, 2006. „ , • Site work begins Spring 2007. • Project completion expected May 2008. Washington State January 31, 2007 ilir Department of Transportation if ell ' - ' ‘‘ ,,,:', - *,, ': ) Conceptual Map of Regional t �kepoints and Investments. • � How Would the Inv.Itments Help Us Get Ai ound? �" y" .I ' 4r The Roads &Transit package would give our region the most significant transportation improvements in nearly 50 ' . ' '',s "Sk; I - ® "" Arlington years. It would build on projects currently underway to make a difference for everyone who lives and works in the 3t.`;\4. ' . region, whether they drive a car or truck or take transit. +1 P 7 The transit improvements would: .«■ 1 .. * I - ',,. , . f► ' g, Et w -,. ,y Marysville ■ Add 50 miles of light rail, building on the 19-mile system Sound f ' ! ^ ,1F •. '- �►♦ - o Lake Transit will open in 2009 to Sea-Tac Airport and in 2016 to the UW. 1 �` Stevens tin •'1 }: Everett • Extend light rail north from the UW to Lynnwood and 164th Street • '� SW, south from Sea-Tac Airport to the Tacoma Dome, and east from I I li� II Mukilteo Roads & Transit � .- ■ © p roe MSeattle to Microsoft/Overlake via Bellevue. Plan • Provide fast, frequent, and reliable service—no matter how bad ., _, Would Target Major • ; traffic is— Traffic Chokepoints Edmonds• Yn '°:".. oo�i ‘41' `is between major housing and job centers. '� Bojell • Move thousands more people through the region's most congested The proposed Roads&Transit plan is Shoreline Woodinville corridors, taking cars off the road. '1 _-- intended to improve the flow of traffic 40 • Provide reliable light-rail service across the region—trains running - t v....,...1 _.....4, I o : +orth ate !tr =r.zci.li,, at major chokepoints in the region. ♦ gKirkland 20 hours a day and departing every few minutes during peak times. ri = = p .0! The conceptual map to the right shows m ; Redmond + :University of • Enhance bus service and commuter rail to serve tens of thousands at ` --.5•_-t--- --,_.-, , chokepoints and current and proposed Washington — �."-^ 0 „: . Overla e rush hour. u�` road and transit investments. °r® ■■ . = Capitol Hill :Bellevue ■ • Buy property and develop plans to expand light rail to Redmond Town Center The new projects proposed in this pack- •First Hill ■ Sammamish if funding is available. age would leverage existing projects Seattle ■.■■•■■.■■ 90 • currently being built by Sound Transit 1 I Mercer ■ ■ Conduct planning studies to prepare for extending light rail to Everett in the next phase. and the State of Washington. AL Island !aS Rainier 05 The road improvements would: m Valley 9 me i r ■ Increase mobility by improving interchanges at chokepoints on 1-5 O ��'r` between Everett and Tacoma, and on 1-405 between Bellevue and Burien • #' Renton 1 '-- 'gin Tukwila. Chokepoints ,t► '�' • ®I o ° --- - . ,__ _ � • Address serious congestion on US 2 Trestle, SR 522, SR 9, SR 167 US 2 Trestle '_ SR 9 Tukwila i 1144 and SR 162 by widening lanes and adding safety improvements. I-5 and Northgate : N ,, ' ' ,i ° : • Provide additional capacity and improve safety on a new SR 520 1-5 at SR 520 SeaTa10 '� Kent MAP KEY Bridge by adding HOV lanes, bicycle lanes and shoulders in each SR 520 e• al Transit ., ` direction. 1-5 at 1-90 Federal' L 1 =1 Underway !' • Increase traffic flows by improving the SR 167/1-405 interchange and 1-405 from Bellevue (I-90)to Renton Tacoma Way ; ° ` °Auburn ""Proposed - , . by providing a direct exit from the 1-5 HOV lanes to the busway serving -405/SR 167 Interchange m ; Roads downtown Seattle. Southcenter Hill: I-5/SR 509 � �o I Underway _ _ SR 167 in Auburn ■ 4 Sumner ■■■■Proposed �s '1M' 4'1�1 AD ` • Improve truck and freight mobility by building new connections I-5/SR18'Tnangle"Interchange between 1-5 and SR 509 and between SR 167 and the Port of Tacoma. 1-5 in FifePuyall ;. ®a Proposed Lakewood' IN' ■ Mitigate construction disruption by building more Park and Ride lots cCho d i County '" and increasing transit services, including vanpools and bus service. ...,,AFB ei0 east-west corridor • Improve safety and provide more transportation choices by building Fort•• investment overpasses, sidewalks and bicycle lanes on major highways across the Lewis rederickso rP Y 1 Orting three-county region. Roads & Transit Capital Investment: New taxes proposed: The new Roads&Transit capital investments are creating • 0.6 of one percent of sales tax (.5 Sound Transit, VVIII GO t0 Voters assets worth approximately$17.8 billion in 2006 dollars .1 RTID) November 6, 2007 ($10.8 billion for Sound Transit and $7 billion for RTID). • $80 for every$10,000 of value per vehicle (RTID only) „� Arlington f C • Tub<« /WA!” ;:;, The RTID district includes iuRoads 6 i( ,. ,d, +� the entire Sound Transit �(/t " ,_. {� district and a portion of , " • A * ' I Snohomish County ,, ',� • ,'` including the cities of litt Vii, �4 Marysville,Arlington, Everett Lake Stevens,Snohomish ' 11 i, N and Monroe and their Monroe .,,, Its Time to Tackle Traffic it._ surrounding urban areas. t ilk_$ *..r.„ `- Traffic wastes our time.This November One Region, One Plan Timeline to November 2007 Vote �' _, �', a plan to ease our worst congestion Roads&Transit is a joint effort by Sound February-March �� .� F by improving roads, bridges and Transit and the Regional Transportation • Public comment on draft Roads&Transit package �\ it expanding mass transit across Investment District(RTID) Planning ..w ,- Committee to create the first-ever April-May _'' . '— ' r + , Snohomish, King and Pierce Coun- integrated set of highway, bridge and • Sound Transit Board recommends final Sound Transit 2 Plan a _:.-. -- ties, will be on the ballot. transit improvements for Snohomish, Seatt - r • RTID Executive Board recommends final ��-- - King and Pierce counties. \��-, t, - Everyone knows that traffic is a problem. Blueprint for Progress \� ' 1 People are frustrated by congested The investments in light rail, commuter • RTID Planning Committee recommends final \ ,,,, .. ; dam_ chokepoints throughout the Puget rail, HOV lanes, park-and-rides, new Blueprint for Progress \\ II. Sound region: on SR 9 in Snohomish on-and off-ramps, and more would June \�' 111.44( ,'°m" y o I . County, SR 520 between Seattle and connect the busiest population and job RTID district onlyi?`_ •. ` • the Eastside, 1-405 between Bellevue centers, providing more reliable trans- r , and Renton, 1-5 near Fife and others. portation for people and goods. `� 7......................1Sound Transit and �' -. RTID districts It's time for action to open up the major The Roads&Transit package integrates • County councils place plan on the ballot Ta \ '' JATEINitk traffic logjams and expand our region's the Sound Transit 2 plan for transit August �" J II transit options. Our quality of life and Investments—which extends the • Ballot title filed with county elections offices "�. our economic prosperity depend on region's light-rail system to 70 miles— November 6 `` it—now and in the future. The region's and the RTID Blueprint for Progress, . - . population is projected to increase by which details investments in state • General election ._. more than 40 percent by 2040. Without highways, bridges and local roads in 1I action,traffic will only get worse. the three-county region. Note:Portions of Snohomish County outside the Sound Transit district would be subject to RTID taxes only. Sound Transit and the RTID Planning Committee received thousands of comments Regional from the public that helped shaped the Roads& Transit plan. Transportation What Would `°� Investment f District Roads &Transit '" T SOLIlY IV IT , r PlanningCommittee �� ti : Do for Us RTID is charged with developing a transportation investment Sound Transit plans, builds and operates regional transit " " w package that reduces congestion on roadways and bridges in systems and serves to improve mobility for people in the • Expand light rail and transit, `4` Snohomish, King and Pierce counties. For more information, Central Puget Sound region. For more information, visit: and improve highways visit: www.rtid.org www.soundtransit.org . • Reduce congestion `' - l -, ■ Move people and freight faster * ' �'-.. ..„. '�` ` Sound Transit Board David Enslow Aaron Reardon Dow Constantine,King County Bob Ferguson,King County p p g , ,Y �r„� .• Summer City Council Snohomish County Executive more reliably '* -# acv . John W.Ladenburg,Chair Reagan Dunn,King County Barbara Gelman,Pierce County yji Pierce County Executive Doug MacDonald,Secretary Ron Sims Tim Farrell,Pierce County Calvin Goings,Pierce County Connie Marshall,Vice Chair Washington State Department King County Executive ■ Give travelers more options , Bellevue CityCouncil of Transportation Claudia Thomas Dave Gossett,Snohomish Larry Gossett,King County County to avoid traffic , " Mark Olson,Vice Chair Richard Marin Mayor of Lakewood John Koster,Snohomish County _ lto Edmonds Ci Council Gary Nelson,Snohomish County .-. Everett City Council Pete von Reichbauer Kathy Lambert,King County • Fix safety problems aae,. KingCountyCouncil PlanningCommittee: I •`ll Julie Anderson Richard McIver Terry Lee,Pierce County �" i Tacoma City Council Seattle City Council Regional Transportation All Executive RTID Board • Coordinate projects to keep Mary-Alyce Burleigh GregNickels Investment District members Dick Muri,Pierce County . J) ' Kirkland City Council Mayor of Seattle Executive Board: Doug MacDonald,Secretary of Larry Phillips,King County people moving during "�. x . m Fred Butler Julia Patterson Transportation,Non-voting Chair Pete von Reichbauer,King construction ,� i Shawn Bunney,Pierce County ,, 7 Issaquah City Council King County Council Chair Roger Bush,Pierce County County =_ Kirke Sievers,Snohomish County • Build on existing investments . .;^ ���-_. Dow Constantine Larry Phillips Julia Patterson,King County Jane Hague,King County King County Council King County Council Vice-Chair Dave Somers,Snohomish County in transit and roads c 06-20-07 NTERSTATE 405 Corridor Program Congestion Relief&Bus Rapid Transit Projects What is the Springbrook Creek Wetland and Habitat Mitigation Bank Project? What is the Springbrook Creek Wetland and Habitat Mitigation Bank Project? What is Wetland WSDOT and the City of Renton launched an innovative partnership to Mitigation Banking? re-establish and enhance over 130 acres of wetlands in the Renton area addressing the effects of development within the city and from WSDOT Mitigation banking has been transportation projects.Additionally, WSDOT and the City of Renton are defined as wetland restoration, building an interpretive trail throughout the site to educate the public on the creation,enhancement, and benefits of wetlands and the habitat they support. in exceptional circumstances, preservation undertaken expressly Why is WSDOT creating this wetland mitigation bank now? for the purpose of compensating Springbrook Creek Wetland and Habitat Mitigation Bank is an early for unavoidable wetland losses in environmental investment(EEI) project. The Springbrook Creek Wetland and advance of development actions, Habitat Mitigation Bank will provide mitigation for highway construction and when such compensation cannot be city development projects prior to the impacts on wetlands and other aquatic achieved at the development site resources. When the project is complete, WSDOT will have enhanced 110 or would not be as environmentally acres of wetlands and buffer, restored and created a larger connected 20 acres of wetland; totaling 130 acres of wetlands. Thousands of native plants beneficial. 1995 Federal Guidance will be planted over the entire project site; including black cottonwood, pacific on Wetland Mitigation Banking(U.S. willow, sitka spruce, western red cedar, snowberry, douglas-fir, and big-leaf Army Corps of Engineers 1995). maple. These trees, shrubs and plants will attract and create habitat for many different species of wildlife. ;r _ ��jJ'L1i • 11111. CO Project Timeline Construction of Springbrook Bank is underway. Reaching this goal has been a two-year process of planning and designing the project;coordinating with regulatory agencies, including the U.S.Army Corps of Engineers, Washington Department of Ecology, U.S. Fish and Wildlife Service, and U.S. Environmental Protection Agency; 18_- and negotiating numerous agreements required to formalize this project. The final agreements have been signed, the project permits have been obtained, and the 167 construction contract has been awarded to Scarsella Brothers. • Scarsella Brothers was selected as the primary contractor to build this project in 2006. • Construction kick-off event held Dec. 7, 2006. • Site work begins Spring 2007. • Project completion expected May 2008. Washington State January 31, 2007 W; Department of Transportation r . ., 1 I Light rail and Sound Transit 2 Sound Transit 2 Plan The Sound Transit 2 Plan T SOUNDTRANSIT • Everett RIDE THE WAVE The map at right shows the Sound Transit 2 Plan,the main transit component of the Roads & Transit package headed for the ballot in November. The centerpiece of Sound Transit © Connecting the region with light rail Mukikeo 2 is nearly 50 miles of additions (dark purple) to the core light rail line currently under development (light purple). 164th/Ash way If approved, the region will see light rail lines that run: Alderwood Light rail contributes ,-, • North from the University of Washington to Northgate, — g Edmonds QQ TT Shoreline, Mountlake Terrace, Lynnwood, and 164th St. Lynnwood to the ability of the - Light rail today �7C, tomorrow regional transit system -� S.W. in Snohomish County; • Mountlake Bothell g Terrace Woodinville to keep people and r Light rail will soon become a major piece of the regional • East from Seattle, across I-90 to Mercer Island, Bellevue, Shoreline i and Redmond's Overlake Transit Center; and Jackson Park V-. goods moving. It , transportation network. in 2009, Sound Transit's Link Northgate adds people-moving • South from Sea-Tac Airport to Kent-Des Moines Road, Downtown ` �r � '•, light rail line,from downtown Seattle to Sea-Tac Airport : Roosevelt Redmond capacity in corridors Federal Way, and downtown Tacoma. 1111(110'SE Redmond 'a -, III will open for business. In 2008, construction will begin Brookr n where road expansion universe of h In addition, Sound Transit 2 identifies a further extension to €Ballard Washinon HgSpital • OvedakeTranstCenter is difficult or very f on a northern extension to the University of Washington. ovedake Village :r_._ Further additions depend on voter approval. Visitors to downtown Redmond if additional funding or cost savings Capitol Dowmown I: �l R� costly. In choosing• v - p Pp Hal Bellevue g ." Tacoma are alreadyexperiencing the benefits of light are identified. It lays the groundwork for future phases with , elleVUe light rail expansion � Where is 1i ht rail workin toay ? More benefits of light rail • • • g g y .. , Cities across the country have built light rail systems, and the experiences in those cities helped to inform the decision making of the Sound Transit Board. Studies show \ _ _' _ ' '-'` -- s> that light rail stimulates economic development, attracts new riders to transit and c r - r gets strongsupport from the communities which it serves. Some examples: ,' I " . ! • ;dill - . C.!kr- --t ___. __ . „.„„izt ' Ili e. ill ,,,,, r.1111111111=111•111111� ! / 1 ' f r 'AI®MFT 1 ..-- i ill Ili 1 IF) Aea, . ill ► .64 . ! Cleaner tray Light rail provides an alternative to -..••••••—........ � '�`—� r 'r,' . . --_.. qiiiii , i� �, driving a car that will encourage more people to leave r MAX ` s ��_ -� ,; :ar ' mmlit their cars at home, helping to keep our air and water ��„�;�� _ ,�� • - 1 Frequent and easy-to-use service. Light rail trains clean while addressingclimate change. Light rail trains _ _ ` 6111111 ,,01111•11.• _.,,. p Y 99 _alEeiitt��flrr � �/ _li t i l run every few minutes,which means riders don't need also help by running on electricity. - - - ' all :. Tacoma Link light rail connects a schedule. • Tacoma's downtown core with the regional PO According to TriMet—Portland, Oregon's transit agency— transportation hub at the Tacoma Dome Station. in the first year of operation, ridership on the MAX Yellow Line "far In its first week of service, Tacoma Link more -'''` outpaces ridership on the former bus line"that operated along the than doubled the previous bus ridership along acity. Light rail same route.Overall,the line carries 95%more passengers. that same route. trains can be easily expanded a to accommodate growth. For . yM••.� �' """� `. - - -.r- -r example,as demand grows --- , , � . gym,:: . . ,� - - �� for light rail to Sea-Tac Airport -14f*---'�'�c,_, ; -. ' - (scheduled to open in 2009, - - rte'=`. ilrewi - ,,..«....i,_ Economic studies show a. 1 ,t shown at left in a conceptual _ ~ --- - - �F 4.,'`,. � _-„ that the Dallas-area DART rail jilt photo),trains can run up to ..._ - .. system has stimulated more i 400 feet in length, carrying 800 ` than$3.3 billion in private : I _ ; ;,� �.=-- people every few minutes. k '� � ''.5's " investment since the rail line ''� f `-- •• ' - ,,,li L �'- Ale launched �4 -- ..� `� M"1.111.16"."1"1"1-4, 1� in 1996. imir • F� - �_ . , - At' ---.:e-arr. Fa 1.01111b,- - - --- Economic dc--1,'oment and growth ma -igement. Light rail lines assist in the development of walkable, high- •11111 ■U II density communities and keep the economy moving.A r Since Salt Lake City opened its TRAX light ..� 1999 study done for the American Public Transit Association �� ' rail service in 1999, valley residents have twice voted to ---- M'" . �' expand the system. Last November,the four-county region I' lam` kfl! D °r r concluded that business gains in sales are three times the d ___ Wb - ' - voted to raise its sales tax to accelerate construction of light .0/ , 1 I investment in transit capital. it , ° 40 / 1 • - - ' • ;'' 1 rail extensions: lines originally planned for completion in • g _ ,Pt--.—;— - '•t , - ., .4.11 Frz _ , 2030 will now be ready for service in 2015. 11 tr u �' n �, Ili 11ia o t� r— I `a it 1 / 1 _ # .. ..- :e.. i 9-S/ � I 4. .. F ?�. -_ _ ', '° l , Integrates with buses Light rail works well as the core of a i a k t •t , • .11 transit system, serving areas where congestion and demand are _ ..1 till In Denver, Colorado, nearly50%of li ht rail riders �' i /". - 9 greatest. Stations serve as hubs, providing seamless connections previouslydrove their cars to work.Overall, more than 25°/s of • - I - i for riders who walk, drive or take the local bus. Light rail also ,ologiiiiimilliA commuters to Denver's city center get there by transit. � '` , o ' i frees buses so they can better serve local routes. 4 Y 1:0;§ -1 Stkiour P�.ylfrt, Coming this November will be a Roads & Transit package seeking all-or-nothing voter approval of new taxes to support the transportation improvement needs of the three-county urban region What You Need to Know About the Roads & Transit Programs Prepared for the Eastside Transportation Association Prepared by James W. MacIsaac, P.E. July 16, 2007 Program Facts Summary ➢ The initial RTID capital needs program was cut by half to share a tax increase with a transit capital program. But zeal for expanding the light rail system doubled the transit "half' of the combined package ➢ The Roads & Transit package will cost $38.1 billion thru 2027: — RTID -- $14.5 billion; ST2 - $23.6 billion. ➢ In 2028 there will be a combined bonded debt balance of $12.3 billion. Total cost of the programs with bond interest will be: — RTID -- $16.1 billion(34%); ST2 -- $30.8 billion (66%); Total -- $46.9 billion ➢ The RTID program will be completed and bonds paid off by 2037 with a total cumulative cost of $16.1 billion, all paid by local tax collections that will sunset in 2037 ➢ But in addition to debt service, ST2 will have large ongoing O&M costs and capital replacement reserve contributions after 2027 — These costs will likely result in continuing the local tax collections in full thru 2057 when the bonds are paid off — By the time the ST2 bonds are paid off in 2057 the cumulative ST2 tax collections will total $77 billion. — There is no sunset being promised for the ST2 tax commitment —only a partial reduction after the bonds are paid off IF a "Phase 3" is not pursued for further rail extensions ➢ Approval of ST2 will include approval of extending the ST1 (Sound Move) sales tax levy. From 2008 thru 2057 Sound Transit will have collected $141 billion of extended ST1 plus ST2 local tax revenues ➢ The 50-year tax commitment thru 2057 with approval of the Roads and Transit Package: — Sound Transit ST1 Tax Revenues -- $64.4 billion (41%) — Sound Transit ST2 Tax Revenues -- $77.0 billion (49%) — The reduced RTID Program Revenues -- $16.1 billion (10%) — Total Regional New Tax Revenues --$157.5 billion ➢ See pages 5-9 for expanded detail on the financial plans for these three programs and what the programs will provide 2 Mythical Facts & Corrections ➢ Sound Transit claims that the per-household costs of the Roads & Transit package will be $150 per year plus $80 per auto — This is a lowball estimate that claims that only 40% of sales tax revenues are paid by household taxpayers and consumers — Understand that approval of ST2 will also perpetuate the ST1 sales taxes — Combined ST1 + ST2 + RTID taxes will range up to $890 per household in 2008 and inflate at ST's estimated 5.2% per year thereafter(see page 10). ➢ Sound Transit claims that its ST2 program would greatly reduce traffic congestion (see pages 12-14) — Yet its estimates show that by 2030 ST2 would only attract 74,000 new transit trips per day out of the region's total of 16.4 million trips per day by 2030— a 0.5% shift from auto use compared to No Action — The region-wide transit share of all trips by 2030 is estimated at 3.2% without ST2 increasing to only 3.7% with ST2. Currently the transit share is 2.7%. ➢ But, ST says, with ST2 transit will serve 40% of all peak period trips — A huge exaggeration. By 2030 transit will serve 40% of work trips to downtown Seattle where only 10% of the region's jobs are located; — It will serve 9% of all other Seattle work trips, and only 2% of the work trips for the balance of the region where 70% of the region's jobs are located — Work trips constitute only 22% of total weekday trips and less than half of all freeway trips during the PM peak period — The region-wide transit share of peak period trips by 2030 is estimated at 4.6% without ST2 increasing to 5.3% with ST2. ➢ Sound Transit touts rail as "reliable transit" — But does reliability for portions of less than 2% of the region's trips predicted by ST to be able to use light rail warrant its tremendous expense? — Does that mean that we have wasted $billions on Transit/HOV lanes that we will allow to stagnate? ➢ "Road funding has received large gas tax increases over the past few years; now it is time for more transit spending" — The fuel tax increase from 23c/gal fixed in 1991 to 37.5c/gal by 2008 will simply compensate for inflation at 1.0 x the CPI (Consumer Price Index). — Transit tax revenues grow at double the rate of the CPI. In addition, new transit taxes have been approved in this region since 1995 equivalent to 24c/gal in tax revenue generation — As the result, we are currently spending 52% of every transportation tax dollar in this region on public transit(see page 11) 3 Building the R&T Package ➢ Survey pundits originally believed that the voters might approve the equivalent of a 0.5% sales tax increase to address the region's growing traffic congestion problems ➢ The RTID/Roads package was conceived to supplement funding of improvements for our major "highways of statewide significance" ➢ To accommodate the identified major highway replacement and expansion needs, the RTID capital funding needs were initially estimated at up to $18 billion in completed construction dollars, to be implemented over a 20-year period from 2008 thru 2027 ➢ But public transit proponents insisted that we plan for a "balanced" roads AND transit package ➢ The RTID project list and capital cost estimates were reduced from $18 billion to $9 billion to allow up to $9 billion of a joint package to be spent on transit improvements ➢ The transit half of the spending package was given over to Sound Transit to plan and implement a Phase 2 of its Regional Transit system that was initiated by a major tax increase in 1996 ➢ But as the emerging transit package began to i• focus more and more on expansions of Ktn Sound Transit's 18-mile Central Link "starter rail" line, the light rail extensions 7i, grew to 50 miles and the capital cost of the • ST2 plan doubled to $18 billion os� N ➢ Any major expansion of Sound Transit's successful Regional Express Bus system was eliminated ➢ In its mission to build a rail transit system, Sound Transit has sheltered the public from its shattered promises for a 10-year Phase 1 rail program that would be on-time and on-budget ➢ This package provides summary observations on the full costs of the Roads & Transit package, and focuses on providing a more complete public understanding of the now greatly unbalanced Roads & Transit package 4 . ...„ ,....„ Status of ST1 (Sound Move) ➢ Sound Transit's Regional Transit Plan (RTP) Phase 1 was approved by voters in 1996 with voter understanding that it would "conservatively"cost $3.9 billion in 1995$ (actual inflated cost$5.0 billion)and be easily completed by 2006 ➢ Phase 1 included a 21-mile light rail line from S.200th in SeaTac to NE 45th street in the U- District for$2.3 billion in year-of-expense (YOE) dollars, plus Commuter Rail from Everett to Tacoma for a capital cost of YOE $647 million ➢ Sound Transit eventually admitted that its "conservative"capital cost estimates for Central Link and Sounder were underestimated by half. Central Link was reduced to an "initial segment"from downtown Seattle to Tukwila with a later extension to Sea-Tac Airport. The time of Phase 1 completion was extended 4 years out to 2010 ➢ In an attempt to bring its Phase 1 Central Link promise closer to completion, in 2005 Sound Transit modified its financial policies and initiated a 2nd federal grant application to finance a $1.6 billion North Link extension to the U of W Husky Stadium by 2016 - a potential interim north terminus acceptable to none other than Sound Transit ➢ Summarized below is the Sound Move (ST1)financial plan as originally promised versus what its costs have expanded to thru 2016, and what costs will increase to by 2027 with approval of ST2. Note that five stations have also been deferred or eliminated. Sound Move (ST1) Financial Plan Summary ., University $millions Original Promise Current Estimates in YOE$ Link 2006 Completion' Thru2 Thru3 Thru _ _ �. Revenues 1995$ YOE$ 2006 2016 2027 w."*°• ~.Convention Place U°A rots 54n0• and 1"Hill slatl�'li ; • Local Taxes $1,980 $2,446 2,618 6,887 $14,801eliminated ' rot4meimol asuogickrovw.•S e a"I(' Fed Grants $727 956 588 1,908 2,320 .• Bond Sales 1,052 1,383 764 2,215 $2,215 u,-,'. , �Mcml®6 Fares/Other 133 178 429 884 1,965 =�= °W Total $3,892 $4,963 4,399 11,894 $21,302 aCo,u,�,Car Expensesweal, Capital Projects $3,009 $3,849 2.935 6.132 6,275 s.yeie°T .«ruo Commuter Rail $539 647 912 1,247 1,247 . Regional Express $724 936 463 807 807 .a:is... Light Rail $1,746 2,266 1,560 4,078 4,221 °oi4ieA�rr�. t, ,NI Agency Admin $148 181 251 503 710 O&M Costs4 480 609 578 2,586 6,638 ',, S.144°Station in Debt Service 171 221 181 1,185 2,826 Tukwila eliminated Reserves/Other 84 103 79 591 1,424 „ T.kwoo rmanuNlorW anus Total $3,892 $4,963 $4,023 10,998 17,873 - - .r. mporr uak Ending Cash 0 0 376 896 3,429 1. 5.311044:R'2 i ' YOE$means actual Revenues and Expenses through program completion--promised by 2006. 2 Actual Revenue and Expense thru 2006. Completion extended 4 years thru 2010. 3 Only 19 of 22 miles of Central Link completed. Remaining 3 miles/$1.0 billion transferred to ST2. 5 4 Sound Transit's Citizen Oversight Panel warns that O&M costs are significantly underestimated. ,,,,,,..., ,...„,0, . . ST2 & Its Financial Plan > As of January 2005 the Draft ST2 Project List included 80 projects desired by Sound Transit's participating county/city agencies. They included 33 projects to expand the Regional Express Bus program and 18 projects to enhance the Sounder commuter rail program ➢ In its exuberance to maximize its light rail transit system, the ST Board eliminated 27 of the 33 REx projects and 11 of the Sounder projects. For East King this in effect eliminated the Bus Rapid Transit(BRT) program for the I-405/SR-167 corridor-- the adopted priority program for addressing the transit needs of East and SE King County to serve their travel patterns > The ST2 program has now simply maximized a Seattle-centric overlay of the already best- served express bus transit corridors of the region > The ST2 light rail program offers NO new transit service for travel patterns not already well- served by existing express bus services ➢ Summarized below is the ST2 financial plan thru its capital program completion in 2027 plus only its ongoing bond finance costs thru 2057. Not included are its ongoing operating costs in perpetuity. But the bottom line shows expected cumulative local tax collections thru 2057. ➢ Sound Transit has disclosed that the ST2 capital costs will total $17.5 billion thru completion in 2027 plus admin and O&M costs that bring its total cost commitment thru 2027 up to $23.6 billion. But post-2027 debt service commitments will require collection of an additional $14.3 billion in local tax collections thru 2057. > Thru 2057 when the bonds are paid off, Sound Transit will have collected $77 billion in ST2 taxes before the earliest year any ST2 tax reductions might possibly occur ST2 Financial Plan Summary vas YOE$millions 2008 thru 20272 Post-2027Milr' a Revenues Remaining Debt Service e..,, Phase 1 Taxes $3,380 Bond Principal $7,080 '' 4, 1; New ST2 Taxes3 $11,610 Bond Interest 7.220 Bond Sales 7,320 Balance Due $14,300 -.:A.,:,), ,,_,� .— Fed Grants/Other 1.250 , Total $23,560 Total Tax Collection Extends thru 2057 Expenses Total Proaram Costs s-. Capital Projects4 $17,500 Thru 2027- $23,560 < Admin/0&M 2,630 Interest Balance- 7,220 116J Finance Costs 2,010 TOTAL COST- $30,780 ( o --'s 0 Reserves/Other 1,420 Tax Revenue thru 2037 $23,700 Total $23,560 Tax Revenue thru 2057 $77,000 95% of the ST2 program I YOE$means actual Revenues and Expenses through program completion. costs go to Light 2 Sound Transit final ST2 Financial Plan summary adopted by the Board on 5/25/2007). Rail transit expansion 3 Being publicized as$7.5 billion in 2006$. 4 Being publicized as$10.8 billion in 2006$. 6 5 Excluding post-2027 O&M costs that will likely cause ST2 taxes to continue in perpetuity. RTID and Its Financial Plan ➢ As noted above, the essential RTID program to address traffic congestion on our highway system was cut in half from established primary road enhancement financing needs ➢ The reduced program eliminated any funding of the Alaskan Viaduct replacement project, leaving its financing to existing state road funding. It limited needed supplementary funding for the 1-405 corridor expansion to expansion from Renton to Bellevue only, leaving up to $2 billion of the 1-405 expansion program north to 1-5 unfunded. ➢ It leaves $2 billion of the $4.4 billion SR-520 Bridge Replacement project to tolls and other state funding. It reduced the SR-167 extension project in Pierce County. It reduced the funding for full completion of the SR-509 extension project south of SeaTac and left much of the supporting expansion of 1-5 south of S.210th unfunded. It reduced or eliminated RTID financing of other projects highly needed to address this region's traffic congestion ➢ In effect, the high priority on a rail transit program has severely reduced the ability of a sensible Roads & Transit project from addressing our primary#1 concern in this region of reducing highway congestion ➢ Shown below is a summary of the reduced RTID program financial plan. Note that its reduced $9.5 billion capital program plus admin and bond financing costs will be fully paid off by 2037 for a cumulative total tax cost of $16.1 billion RTID Financial Summary YOE$millions' 2008 thru 20272 Post-2027 Revenues Remaining Debt Service RTID Taxes3 $8,040 Bond Principals $5,460 Bond Sales 6,314 Bond Interest 1,780 Other/Interest 156 Balance Due $7,240 Total $14,510 Tax collection ends in 2037. Expenses Total Program Costs Capital Projects4 $9,520 Thru 2027- $14,510 Admin Costs $194 Interest Balance- 1,590 Finance Costs 4,500 TOTAL COSTS- $16,100 Reserves/Other 296 Total $14,510 Total Tax Collection $16,100 1 YOE$means actual Revenues and Expenses through program completion. 2 RTID final financial plan approved June 8,2007. 3 Being publicized as$4.7 billion in 2006$. ' Being publicized as$6.7 billion in 2006$. 5 Since bond proceeds are included in the Capital Project costs,the principal repayment is considered a negative revenue. Remaining bond interest less bond reserves add to 2027 expense for Total Cost. 7 Combined Costs of ST1, ST2 & RTID > Combined actual program costs thru 2027 = $56 billion Delayed debt interest thru 2057 brings the total up to $65.6 billion excluding post-2027 ST1 and ST2 O&M expense > RTID tax revenues will total $16.1 billion thru 2037 when eliminated > ST1 and ST2 tax revenues will total $144 billion thru 2057 - likely the earliest year any sales tax reduction might occur > Tax ratio of ST2+RTID thru 2057: RTID - 17%; Sound Transit - 83% Sound Transit& RTID Programs --Final Packages as of June 2007 Program Element Cumulative thru 2027 Transportation Packages Cumulative Totals YOE Smillions ST1r 5122 RTID3 ST1+ST2 ST2+RTID All Three Sources of Funds Local Taxes.' 11,420 15,000 8,040 26,420 23,040 34,460 Federal Grants 2,320 900 0 3,220 900 3,220 Net Bond Proceeds 2,215 7,320 6,315 9,535 13,635 15,850 Fares&Other Sources 1,965 340 155 2,305 495 2,460 Total Sources 17,920 23,560 14,510 41,480 38,070 56,000 Uses of Funds Capital Programs: 6.270 17,510 9 520 23.780 27.030 33.300 Commuter Rail 1,250 330 1,580 330 1,580 Regional Express 800 500 1,300 500 1,300 Light Rail 4,220 16,680 20,900 16,680 20,900 Regional Roads 9,520 9,520 9,520 Operating Costs 6,685 1,070 7,755 1,070 7,755 Agency Costs 710 1,560 195 2,270 1,755 2,465 Debt Service 2,830 2,010 4,500 4,840 6,510 9,340 Contributions to reserve funds 1,425 1,410 295 2,835 1,705 3,130 Total Uses 17,920 23,560 14,510 41,480 38,070 56,000 Remaining Post-2027 Debt Services 2,350 14,300 6,850 16,650 21,150 23,500 Bond Principal (Negatve Revenue) 1570 7,080 5,250 8,650 12,330 13,900 Bond Interest 780 7,220 1,600 8,000 8,820 9,600 Total Program Cost° 18,700 30,800 16,100 49,500 46,900 65,600 Local Tax Revenues thru 2037' 24,700 23,700 16,100 48,400 39,800 64,500 Local Tax Revenues thru 20577 67,300 77,000 16,100 144,300 93,100 160,400 ' Source: Sound Transt Drat 2007 Financial Plan(November 2006). Note: Some slight rounding is included. 2 Source: Sound Tram trial ST2 Financial Plan summary as of 5117107(added by Board on 5/24107). 3 Source: RTID Financial Plan as of June 8,2007. 6 ST1:0.4%Sales Tax ri perpetuity phis 0.3%MVET aim 2028. ST2: 40.5%Sales Tax at least thru 2057. The ST2 revenue assumes that trere will be$3.4 bison in excess ST1 revenues available to transfer b ST2. RTID: +0.1%Sales Tax plus+0.8%MVET nail bonds are paid of(expended in 2037). s Bond principal repayment is treated as negative income to avoid in To Program Cost 6 includes Taal Uses Mar 2027 plus bond interest ammit nests tserealer. Not included is ST1 and ST2 O&M expense that wit add to Taal Program Cost and continue in perpetuty alter 2027. T The post-2027 RTID debt service payments we be accelerated and the bonds paid of by 2037. ST1 sales taxes are expected b continue in perpetuly. ST2 tax colecion we cosine in ful at least thru 2057 when al ST2 bonds are pad of. Prepared by: James W.Mactsaac,P.E. June 30,2007 Endorsed by the Eastside Transportation Association(ETA) 8 Comparison of Tax Commitments ➢ When approved in 1996, ST1 (Sound Move) taxes were to be reduced when the Phase 1 program was completed in 2006 ➢ In 2000 the Legislature eliminated the MVET tax on vehicles. But through legal means ST managed to retain its MVET thru 2028 ➢ Approval of ST2 will likely extend the ST1 sales tax in full at least thru 2057. Thru 2057 Sound Transit will have collected $67 billion in ST1 taxes ➢ Approval of ST2 will increase the ST sales tax from 0.4% to 0.9%. Since it will likely be used to back all 30-year bond sales thru 2027, it likely cannot be reduced until at least after 2057 ➢ In 2057 Sound Transit will collect$7.5 billion in local annual taxes. Thru 2057 Sound Transit will have collected $144 billion in local taxes ➢ The RTID will pay off its bonded debt by 2037 and end its tax collection. Thru its entire program, it will have collected$16 billion in local taxes ➢ When added to ST1 taxes, approval of the Roads & Transit package will create a combined commitment of $160 billion local tax dollars thru 2057 with 10% dedicated to Roads. ST1, ST2 and RTID Annual Tax Revenues $10,000 ST1--0.4%Sales Tax+0.3%MVET $9,000 Capital Program 67%Light Rail Earliest Year that any Reduction of ST2-0.5%Sales Tax Beginning 2008 ST1 and ST2 Taxes might occur-->' c $8,000 Capital Program 95%Light Rail RTID-0.1%Sales Tax+0.8%MVET a $7,000 I Beginning 2008 and Ending 2037 w RTID Taxes End $6,000 ST1 MVET Ends-> $5,000 ear Ca• Pro ram _■_ Period for ST2 and RTID $4,000 Cumulative Collections x I " thru 2057-$77 billion $3,000 Cumulative Collections thru 2037-$16 billion 'RTID c $2,000 1.111111111111.P.- ST2 $1,000 r Cumulative Collections ST1 thru 2057-$67 billion $0 0^1 g O pO ' U) ^ Of N N N N N 01 g 0) U) n M 01 O O O N O O O O N O O O O O N O N N N NUO) N. OO N ■ ST1 ■ ST2 ■ RTID 9 Tax Costs per Household ➢ Sound Transit has published annual cost per household of the Roads & Transit package as $150 in sales taxes plus $80 per$10,000 of auto values. This is the "Iowball" estimate of the real costs to household taxpayers > In preparing these estimates Sound Transit eliminated the 40% of sales tax revenues obtained from businesses. In reality, up to 90% of the business taxes are passed thru to the household/consumer in the costs of goods and services ➢ Sound Transit further reduced its estimates by an additional 20% by eliminating the very high-income households from its estimates, by assuming that all householders claim sales tax deductions on their federal income taxes, and other reductions > Sound Transit has totally omitted the fact that approval of ST2 would also extend its ST1 (Sound Move) taxes thru the duration of the ST2 program ➢ The table below presents the "highball"estimate of annual taxes per household of the Sound Transit and RTID taxes that will be committed by approval of the Roads &Transit package, assuming a full year of tax collections would occur in 2008 ➢ In 2008$the annual cost of the ST2/RTID package would be up to $635 per household plus $253 in ST1 taxes for a total of up to $888 per household • Thru 2057 when the ST2 bonds are paid off, the average household will have paid $100,000 in Sound Transit taxes and $10,500 in RTID taxes 2008 Taxes Per Household* Cumulative Taxes thru: RTID Taxes In 2008** 2027 2057 RTID Tax Area Population 2,942,600 3,321,700 3,596,800 Average Household Size 2.46 Tax Area Households 1,196,200 1,350,300 1,533,600 2008 Tax Revenue $301,200,000 $7,900,000,000 $16,100,000,000 Cost per Household $253 $5,850 $10,500 Sound Transit Taxes Tax Area Population 2,763,600 3,067,600 3,474,300 Average Household Size 2.46 Tax Area Households 1,123,400 1,269,400 1,441,700 Current Phase I Taxes Sound Move Tax Revenue $358,053,000 $11,843,000,000 $67,350,000,000 Cost per Household $320 $9,330 $46,700 Proposed Phase II Taxes ST2 Tax Revenue $353,253,000 $11,700,000,000 $77,000,000,000 Cost per Household $315 $9,220 $53,400 Combined Total RTID and ST Taxes Cost per Household $888 $24,400 $110,600 *Assumes all sales taxes pass thru to household residents of the tax area--an upside estima This gives the head of household an upside estimate of ST and RTID tax costs per year. ** Reflects cost if taxes applied for the full year. 10 Prepared by James W. Maclsaac,P.E. May 2007 ' 'eeer r✓ Use of Transportation Taxes ➢ Many transit supporters believe the lion's share of our transportation revenues go to streets and roads, protected by the 18th Amendment ➢ In 1991 71% of transportation tax revenues in this region went to roads and 29% went to transit — perhaps a reasonable split though transit served less than 5% of all motorized person trips. Public transit is a widely-accepted social subsidy ➢ But fixed fuel taxes and weight fees dwindle against inflation while transit taxes increase at double the CPI inflation rate. In addition we have approved several new transit taxes since 1995 — In 1996 for Sound Transit a +0.4% sales tax increase and +0.3% MVET — In 2001-3 +0.2% to +0.3% sales tax increases for county transit — In 2006 a +0.1% sales tax increase for"Transit Now" in King County ➢ As a result, currently about 52% of all transportation tax revenues go to public transit. Unless fuel taxes and weight fees are indexed, current law transportation tax revenues by 2030 will be 63% to public transit ➢ The unbalanced Roads & Transit package would further skew transportation tax revenues to 65% for public transit by 2030 Enhanced Transport Tax Revenues -- King, Pierce, Snoli With RTID and ST2 Added in 2008 ode Shares of Total Person Trips $6,000 1998 2020 2030 ,I Sound Transit- 0 0.7% 14% ST2 Proposal+0.5%Sales Tax Increase; Local Transit 27% 2.5% 23% RTID+0.1%S.TaxIncrease Plus 0.8%MVET Roads&Streets- 973% 968% 963% _—__— ` • $5 000 ource. PS RC 2006MTP Update . z 111 —$4000 :::l66' et 11111 stax ncreasa 't Now" ----> 0{ LTrsns t ro• $3.000 2-0_rosale A tease for c 56% KC Metro D,CI,PT A :nits stem- ' S h and ET Transit • Q 4 $• 2.000 puipP-mmirg- 42% d ������� *� k $1,000 29% x t .( yy t $0 z..v«-_,...P ox•1_r.+.w w ....v...3'P-n'•. .v..,.a.u,.,.-wJ�:L.>:.%�_,..x..i.t•.i'.. 4.-...3 ..... .e,-a.. Yi v.. -"... �, __M�.�_,_�._ ......4," 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 2014 2016 2018 2020 2022 2024 2026 2028 2030 r Current Law Roads II Current Law Transit Planned Transit n Planned Transit 11 *4.0 Truth About Ridership ➢ Sound Transit has published the following "boardings" estimates: - Total Weekday Without ST2 - 189,000 With ST2 -359,000 - The increase is implied to be new transit"trips"; these are transit "boardings" > The truth about transit ridership is shown in the tablefelow - Based upon PSRC regional travel estimates and ST transit"trip" estimates - Shown in terms of full transit"trips" from origin to destination - Bus-bus and bus-rail transfers cause two to three transit"boardings" per"trip" - Rail with limited stations requires feeder bus service, increasing transfers ➢ ST2 would attract 74,000 new transit trips by 2030 - If all transfer from private vehicles, vehicle trips would be reduced by 57,000 - This represents a 0.5% reduction in vehicle travel by 2030 vs Without ST2 - Peak period freeway traffic would be reduced by about 1% > A large share of rail ridership is merely raided from existing bus - Note the "Change with ST2" by transit mode with reduced bus ridership - The light Rail system merely overlays the best-served existing bus corridors ➢ ST2 Will Have Minimal Effect on Reducing Traffic Congestion ST2 Transportation Impacts Average Weekday Trips Existing 2030 2030 Change 2006 w/o ST2 with ST2 with ST2 Total Weekday Trips per PSRC:1 Total Person Trips 12,000,000 16,400,000 16,400,000 0 Vehicle Trips 8,775,200 11,534,800 11,481,200 (53,600) Vehicle Persons 11,671,000 15,918,000 15,844,000 (74,000) Vehicle Mode Share 97.3% 97.1% 96.6% Total Weekday Transit Trips per Sound Transit2 Transit Trips 329,000 482,000 556,000 74,000 Transit Mode Share 2.7% 2.9% 3.4% Transit Transit Boardings 424,000 661,000 818,000 157,000 Boardings Transfer Transfer Rate 1.29 1.37 1.47 with ST2 Rate Weekday Transit Trips by Mode: Link Light Rail 2,000 71,600 175,000 103,400 310,400 1.77 Sounder CR 4,300 10,700 9,600 (1,100) 15,400 1.60 ST Express 23,700 36,400 22,000 (14,400) 33,000 1.50 Local Transit 299.000 363.300 349,400 (13.900) 459.200 1.31 Total Transit 329,000 482,000 556,000 74,000 818,000 1.47 1 PSRC 2006 MTP update, regional land use/transportation model findings. 12 2 Sound Transit,ST2 Making Transit Connections, Appendix C, May 24,2007. . ST2 Effect on Regional Travel ➢ Sound Transit makes claims that ST2 will have a major effect on Regional Traffic travel reduction ➢ Let us first focus on total Weekday travel ➢ The table below summarizes total weekday Regional travel by Roads & Transit for three major sectors of the region in a 1998 Base Year before Sound Transit and by 2030 with Sound Transit Phases 1 and 2 ➢ 1998 Base Year before Sound Transit - Downtown Seattle attracts 5.4% of all Regional Person Trips and 54% of all Transit Trips, with a transit mode share of 27% -- a good transit share - The "Balance of Seattle" attracts 20% of all Regional Person Trips and 34% of all Transit Trips, with a transit share of 4.6% -- not good for the transit-oriented city - The "Balance of the Region attracts 75% of all Regional Person Trips but only 12% of all transit Trips, with a poor transit share of only 0.4% ➢ 2030 with Completion of ST1 and ST2 - Downtown Seattle attracts 4.6% of all Regional Person Trips and 54% of all Transit Trips, with a transit mode share of 43% -- a great transit share increase - The "Balance of Seattle" attracts 18% of all Regional Person Trips and 31% of all Transit Trips, with a transit share of 6.3% -- a minor increase in transit use - The "Balance of the Region attracts 77% of all Regional Person Trips but only 15% of all transit Trips, with a poor transit share of only 0.7% ➢ The Regional Transit Plan Does Little for the Suburban Region Total Regional Person Trip Attractions' Total Person Trips Transit Person Trips Transit Trips %Region Trips % Region Share 1998 Base Year Seattle CBD 553,383 5.4% 148,516 53.5% 26.8% Balance of Seattle 2,079,378 20.2% 95,056 34.2% 4.6% Balance of Region 7,652,597 74.4% 34,113 12.3% 0.4% Total Region 10,285,358 100.0% 277,685 100.0% 2.7% 2030 MTP Completion Year2 Seattle CBD 740,674 4.6% 319,289 53.9% 43.1% Balance of Seattle 2,913,863 18.0% 182,958 30.9% 6.3% Balance of Region 12,546,938 77.4% 90,606 15.3% 0.7% Total Region 16,201,474 100.0% 592,853 100.0% 3.7% 1 Source: PSRC 2001 MTP Update. "Attractions" represent the destination end of trips. 2 Reflects full completion of the ST1 and ST2 light rail programs by 2030. 13 'far► i>� . ST2 Effect on Work Trips ➢ Sound Transit claims that the major benefit of its Rail Transit programs is in reducing peak period vehicle travel dominated by Home-Work trips ➢ It claims that with ST2 transit will serve up to 40% of all trips on the region's major travel corridors - a gross exaggeration - Transit serves only 40% of work trips to the 10% of jobs in downtown Seattle ➢ But Work trips constitute less than half of all freeway trips during the PM peak period of travel ➢ YES, ST1 and ST2 will increase the work trip mode share for downtown Seattle from 40% of its 10% of the region's jobs today to 56% of its 9% of the region's jobs in 2030 ➢ But for the other 20% of Seattle jobs, the transit mode share with ST1 and ST2 would only increase from 10.3% in 1998 to 11.2% by 2030 ➢ And for the 70% of jobs in the "Balance of the Region", ST1 and ST2 would only increase the transit share of work trips from 1.3% in 1998 to 1.9% by 2030 ➢ Sound Transit's claim that by 2030 with ST1 and ST2 transit would serve up to 40% of all trips in the major corridors of the region is an abusive misuse and unsubstantiated gross exaggeration of regional travel forecast data. ➢ ST's ST2 program would have minimal effect on traffic congestion during peak periods as well as all day Home-Work Person Trip Attractions Total Person Trips Transit Person Trips Transit Employment Trips %Region Trips %Region Share Jobs %Region 1998 Base Year Seattle CBD 203,383 9.1% 83,880 53.1% 41.2% 183,200 10.5% Balance of Seattle 529,798 23.7% 54,797 34.7% 10.3% 353,300 20.2% Balance of Region 1,504,568 67.2% 19,244 12.2% 1.3% 1,212,200 69.3% Total Region 2,237,749 100.0% 157,921 100.0% 7.1% 1,748,700 100.0% 2030 MTP Completion Year2 Seattle CBD 276,580 8.6% 155,218 55.0% 56.1% 224,600 9.9% Balance of Seattle 721,671 21.2% 80,872 28.7% 11.2% 454,400 19.9% Balance of Region 2,478,026 70.2% 45,926 16.3% 1.9% 1,599,600 70.2% Total Region 3,476,277 100.0% 282,016 100.0% 8.1% 2,278,600 100.0% 1 Source: PSRC 2001 MTP Update. "Attractions"represent the destination end of trips. 2 Reflects full completion of the ST1 and ST2 light rail programs by 2030. 14 Post-Script on Atlanta We still continue to hear from the rail transit proponents that the transfer of federal funds for a Seattle starter rail system to Atlanta in 1970 was a great mistake. But few if any have researched this issue. The rejections of a rail system for our region in 1968 and 1970 caused a major change in the way we provide bus transit in this region. King County set out on a program called"Metro Transition". It adopted a plan for regional bus transit with subregional transit centers and park-ride lots with express bus services using Transit/HOV lanes on the regional freeway system. The program included the embracing of a car/vanpool program to share the freeway HOV lanes. When the Pierce and Snohomish County transit systems were created, they immediately adopted this type of local and regional transit center and express bus service, and joined with KC Metro in inter-county service agreements. The Central Puget Sound bus transit system became a regional model for promotion by the FTA. The 2000 Census found our Seattle-Tacoma-Everett bus transit system the 8th best in the nation in capturing a 7.6% share of all home-work trips in the region. West of the Mississippi only the San Francisco Bay Area transit systems carried a higher share of work trips. The Seattle urban area share of work trips was higher than those for every urban area that had developed a light rail system. For the combined bus and MARTA transit systems in the Atlanta urban region, the 2000 Census found that the transit share of serving work trips was less than half of that for our region -- 3.5%. Here is how a colleague of mine has better summarized the grim transit situation in Atlanta. "Let's take a look at what happened to Atlanta since they got the UMTA grant Seattle sought. What we see is that the Atlanta region did indeed build a rail system, but it hasn't solved their problems. They have terrible traffic congestion, awful suburban sprawl(far worse than the Seattle area), serious air quality problems, and transit ridership is lower today than it was ten years ago. Why should the Puget Sound region look upon that situation with envy? Atlanta may have gotten a rail system, but they ended up with exactly the kind of transportation and land use mess Puget Sound residents desperately want to avoid. And you can forget that nonsense about having the bonds paid off by now. In fact, the MARTA system in Atlanta ended up costing more to operate and maintain than projected. As a result, that agency is still about a billion dollars in debt at the very time when they need a massive infusion of revenue to renovate their aging rail lines. To help bridge the funding gap they have raised fares and cut bus service. No wonder ridership is falling. In summary, it can be seen that rather than making a blunder back in the late 60's, the voters of the Puget Sound region chose prudently. They had reason to believe there was a better alternative, and history has shown them to be correct. The combination of a freeway HOV network(a billion+ dollar investment now finally approaching completion), well funded local bus systems, and strong TDM programs have succeeded in the Puget Sound region to a far greater degree than the rail lines Atlanta built. Atlanta learned the hard way. An objective look at their experience shows they have set an example we should do everything possible to avoid, not emulate. And just as voters in the late 1960's had reason to believe there was a better alternative than the one on the ballot, the same question should be asked about the ST2/RTID 15 package today." ,. ,..., ,..., . . "What is Your Plan?" > This is the question continuously thrown at rail transit opponents > After rejection in 1995, Sound Move greatly reduced the rail program and added the Regional Express Bus program that was implemented over just a few years with an ultimate cost of under $1 billion that includes many BRT-type enhancements > "Our transit plan" is to continue expanding the bus transit system that has placed this region 8t'' in the nation in share of work trips served by public transit and gained FTA recognition as a model bus system > Preserve and enhance the Transit/HOV fast lane system 'k. .,.t ',,•A Hie K% ' a `� -This? 4 �' ►enetl ,� \ / \I ) ...„..") a Uti 7i Paine Field �,_.� . f yli min O r Z I� �l( Creek�nn- t,. r� Monroe i-W This ._an This 4 . c • 9 Totem ) r9 i • y_ , _Totem For one- F • , '. Redmond Po' . mond �. tenth the '-'14,.. .. Orrlake - ' . Sear- t • , -:.Bellevue cost, five , ,� !� • II' . .tt ti 3 1, U3 1 , years for '. * a `t . ,e <, Issaquah II ' rieri Renton basic route • {, '�;� • nton_ quah • . implemen- 4' s �` •S20011 tation and ; " Phase I r/,,d-'--- to ent .... cbongoing1 ii 4 .• Phase II enhances ,- .r REx-Phase 1 • ($34 billion) overtime? . ''',.>„,-.- A bbu REx-Phase II • Fife „,r,..,„ rlI. �._.- .Tacoma , `'- S aco . \-13- 1111111 L d. Puyallup - `.. - :,. -, o u Puyallup -t - 16 Alternate RTID Plan ➢ The RTID package for supplemental regional road funding is badly needed, but it has been severely reduced by planned transit spending ➢ Examples of its capital project funding shortfalls — It provides no funding support for the Alaskan Viaduct replacement — It provides only 25% of the funding support needed for the SR-520 bridge replacement project, no funding for additional GP lanes to relieve the serious bridge bottleneck, and no funding for other SR-520 corridor improvement needs east of 1-405 — It helps fund only one-third of the 30-mile 1-405 corridor roadway expansion plans and none of its arterial access improvement needs — It leaves the SR-509 extension project in SeaTac only partially funded without HOV lanes and without the 1-5 supplemental lanes to accommodate the SR-509 traffic additions — It leaves the SR-167 extension from Puyallup to SR-509 in the Port of Tacoma incomplete — It does nothing for the seriously overloaded 1-5 corridor — It has deleted a number of other project improvement needs for "highways of statewide significance"that were originally identified for inclusion in the RTID ➢ The RTID and ST2 plans need to be reevaluated for better balance in addressing the region's transportation needs — Roadway congestion reduction should be given the highest priority — Least-cost planning as required by state law needs to be taken into serious account on behalf of the region's taxpayers — The 1-405 Corridor Program has illustrated that freeway capacity enhancements are physically doable — 1-5 severe traffic demand overloads from Tacoma to Everett must be addressed — Serious consideration should be given to a regional road improvement plan developed and proposed by an Eastside development company ➢ Serious consideration must be given to ridesharing — Two-thirds of the seat capacity of all private vehicles served by our regional highway system remain unused — Our transportation plan must refocus on ways and means to increase private vehicle ridesharing (only a 1% increase in average vehicle occupancy could match the vehicle reduction estimated for the ST2 project) — We need to refocus on major expansion of the publicly aided vanpool programs ➢ We need to focus a transportation plan on more efficient use of our major highway/freeway systems rather than on rail transit 17 14111W 41110 A Sad Choice for this Region ➢ It will be a sad day for this region to have to reject a major transportation improvement package ➢ But it is so unbalanced toward funding a Seattle-centric rail transit overlay of the already best served Seattle transit access routes that it does little to address the top priority need of this region to address a significant reduction of highway congestion ➢ The transit element does little to address the unserved or poorly served transit needs of the suburban region where 85% of the travel needs require serious address ➢ The transit element provides no new transit alternative for those not already served by transit except for those few that would have a choice of riding rail rather than local or express bus ➢ The RTID has been so seriously cut back in the press to expand rail transit that it only marginally addresses the highway congestion problem ➢ If separately offered to the taxpayers, the RTID offers nearly all of the traffic congestion reduction potential of the joint package. But that is not a choice being offered ➢ Voters must reject the combined package and insist that government come back with a more cost efficient package much more oriented toward the number 1 public concern — addressing and hopefully reducing highway congestion that all regional planning models predict will double with approval of the current joint package — This paper has not included the dismal congestion and congestion cost estimates that are predicted to come by 2030 with this package ➢ This is a sad recommendation coming for this regional transportation analyst over the past 45 years James W. Maclsaac is a professional transportation engineer that has spent 45 years in the planning of this region's transportation systems beginning with the first 4-county computerized regional land use and transportation planning study in the 1960's. He was a "charter senior engineer"for the Transportation Division of the PSRC when it was created in 1967. He since served as senior transportation planning engineer for international transportation consulting firms before creating and managing his own local transportation planning firm for 20 years. Since 1995 he has devoted his professional time to monitoring, analyzing and reporting on this region's major transportation projects and programs. 18 Me661y LIues du+.ce 0000 From: "Hyde, Shaunta R" <shaunta.r.hyde@boeing.com> To: "Corman, Randy" <randy.corman@boeing.com>, "Dan Clawson" <dclawson@seanet.com>, "Dennis Law" <dlaw@ci.renton.wa.us>, "Don Persson" <dpersson@ci.renton.wa.us>, "Jay Covington" <jcovington@ci.renton.wa.us>, "Julia Medzegian" <jmedzegian@ci.renton.wa.us>, "Kathy Keolker" <mayorkathy@ci.renton.wa.us>, "Marcie Palmer" <mpalmer@ci.renton.wa.us>, "Terri Briere" <tbriere@ci.renton.wa.us>, "Toni Nelson" <tnelson@ci.renton.wa.us> Date: 8/19/2007 8:01:11 AM Subject: RTID Testimony.doc Good Morning Mayor Keolker and Member of the City Council, Please find attached my statement on behalf of my company regarding your discussion tomorrow on the Roads and Transit ballot measure for this fall. I wish I could be there in person but hope this submission for the record clarifies our position on the ballot measure. Thank you for the questions that have come my way in the recent weeks and I look forward to continuing to stay in touch. If you have any questions, please let me know. Regards, Shaunta Shaunta R. Hyde Government Relations Manager The Boeing Company (206) 544-0182 - direct (206) 856-6444 - cell (206) 662-0498 -fax (425) 294-9317-efax e-mail: shaunta.r.hyde@boeing.com <<RTID Testimony.doc>> CC: "Bonnie Walton" <Bwalton@ci.renton.wa.us>, "Suzanne Dale Estey" <SDaleEstey@ci.renton.wa.us>, "Pietsch, Alexander" <Apietsch@ci.renton.wa.us>, "Peter Hahn" <PHahn@ci.renton.wa.us>, "Conte, Peter B" <peter.b.conte@boeing.com> 44.09 *40 August 19, 2007 The Honorable Kathy Keolker, Mayor City of Renton 1055 South Grady Way Renton, WA 98055 Dear Mayor Keolker: The Boeing Company is delighted to see the Regional Transportation Improvement District(RTID) "Roads and Transit ballot measure" discussion being reviewed by your municipality. As the largest private employer in the State of Washington, transportation mobility is one of our highest priorities in the region. Direct movement of our employees is critical to remaining competitive in today's global marketplace. In addition, all parts for Boeing Commercial Airplanes (737, 747, 767, 777 and the new 787 Dreamliner) from our supply chain partners come into Puget Sound for final assembly. Boeing continues to be supportive of transportation infrastructure projects throughout our State. We have supported the nickel and the 9 1/2 cent package the legislature passed in recent sessions. The combined projects in the RTID/ST ballot measure, if passed by voters in November 2007 will address major chokepoints reducing congestion; retrofitting and replacing overpasses and bridges that are vulnerable to earthquakes, and improving all of our freight mobility. The Boeing Company has the largest private trucking organization in the state to support both our Commercial and Integrated Defense Systems products and programs. The benefits to the South King County Region have been highlighted, and we recognize that many jurisdictions would like to see the addition of two lanes in each direction on 1-405 from Renton to 1-90 to improve access and reduce congestion; along with the building of a direct ramp connecting between HOV lanes on I-405 and SR 167 reducing back-ups on this interchange. Now Now In closing, improving freight mobility will allow our region and State to continue to compete in the expanding global economy. We appreciate the City's Leadership on this issue and working together partnership. We eagerly look forward to positive results in November! Sincerely, Shaunta Hyde Shaunta Hyde, Manager Local Government Relations Manager The Boeing Company Cc: The Renton City Council The Honorable Toni Nelson, Council President The Honorable Denis Law, Councilmember The Honorable Marcie Palmer, Councilmember The Honorable Dan Clawson, Councilmember The Honorable Don Persson, Councilmember The Honorable Randy Corman, Councilmember The Honorable Teri Briere, Councilmember Suzanne Dale Estey, City of Renton liyendot T-i-een l npot avi I CITY OF RENTON, WASHINGTON /gal op cal r-,20- 7 RESOLUTION NO. 3 90/ A RESOLUTION OF THE CITY OF RENTON, WASHINGTON, SUPPORTING THE PROPOSED 2007 "ROADS AND TRANSIT" REGIONAL TRANSPORTATION BALLOT MEASURE. WHEREAS, according to the 2000 report of the Washington State Blue Ribbon Commission on Transportation, traffic congestion costs Puget Sound residents over $2 billion annually and undermines economic prosperity, environmental quality, and the quality of life for individuals and families; and WHEREAS, the ability of Renton to remain the "Center of Opportunity" where families and businesses thrive is dependent on established land use and transportation plans consistent with the Washington State Growth Management Act, Renton's Comprehensive Plan, the City's 2007-2012 Transportation Improvements Program, and Renton's longstanding commitment to preserve and protect its neighborhoods; and WHEREAS, investing in transportation improves the Puget Sound region's economy by moving people and goods faster and more reliably; and WHEREAS, improving freight mobility will allow the region to compete in an expanding global economy; and WHEREAS, the Washington State Legislature created the Regional Transit Authority, Sound Transit, in 1992 and the Regional Transportation Investment District in 2002 and their related regional taxing authorities to allow the central Puget Sound region to plan for and raise sufficient revenues for important transportation projects; and WHEREAS, during the 2006 legislative session, the Washington State Legislature found that increased investments in both roads and transit are necessary to relieve traffic congestion 1 RESOLUTION NO. and improve mobility, and required Sound Transit and the Regional Transportation Investment District to submit to the voters a transportation plan which addresses these goals; WHEREAS, the Regional Transportation Investment District's roads plan, in combination with Sound Transit's Phase Two plan, provides a comprehensive regional transportation investment plan that addresses major chokepoints to reduce congestion, upgrades infrastructure to improve safety, and includes multimodal solutions; and WHEREAS, Sound Transit and the Regional Transportation Investment District have worked jointly over the past year to develop the first-ever integrated system of highway, bridge, and transit improvements for the central Puget Sound region; and WHEREAS, the Regional Transportation Investment District's plan includes projects to expand Interstate 405 (I-405) between Renton and Bellevue by two lanes in each direction, construct a new I-405/SR 169 flyover ramp, provide a direct High Occupancy Vehicle (HOV) to HOV connection between SR 167 and I-405, eliminate chokepoints on SR 167, construct a new HOV direct access ramp at North 8th Street and build the Express Bus North 8th Street parking garage, all of which will benefit Renton residents and businesses; and WHEREAS, the City of Renton is committed to supporting such improvements that provide regional transportation capacity to address existing and future growth in population and employment; and WHEREAS, the Metropolitan King County Council approved Ordinance #2007-0357 on June 25, 2007, placing the Regional Roads and Transit System proposition on the November 6, 2007 ballot; NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF RENTON, WASHINGTON, DOES RESOLVE AS FOLLOWS: 2 RESOLUTION NO. SECTION I. The above findings are true and correct in all respects. SECTION II. The City Council of the City of Renton hereby declares its support of Ballot Proposition# , the Regional Roads and Transit System proposition which will be presented to the voters at the November 6, 2007 General Election. PASSED BY THE CITY COUNCIL this day of , 2007. Bonnie I. Walton, City Clerk APPROVED BY THE MAYOR this day of , 2007. Kathy Keolker, Mayor Approved as to form: Lawrence J. Warren, City Attorney RES:1293:08/09/07:ch 3 2008-2013 0 Purpose 0 TIP Supports Transportation Improvement Program(TIP) •Comprehensive Plan • Reflects involvement with citizens and elected The TIP supports overall objectives and policies Officials of land use,downtown,Capital Facilities Plan, and Transportation Elements. • Details multi-year work plan and funding plan for • �,,p, ,eM Growth Management Act 1 G -_" the development of transportation facilities This TIP also supports GMA in terms of ti —% '` • Required for State&Federal funding programs financing,consistency,end coordination efforts. _,: • Used to coordinate transportation projects and •City's Business Plan C, programs with other jurisdictions and agencies The TIP supports the City's business plan goalsOOH - • Mandated by State Law by promoting citywide economic development ,`_ 'r5" and neighborhood revitalization,improving the ;';;2-;;,',4 Planning!Building I Public Works Department City's image in the community and region and Transportation Systems Division influencing regional decisions that impact the I W - _ City Council City' " August 20,2007MINN Council, August zo,2007 Council,August zo,2007 0 0 2007 Highlights 0 2007 Highlights Development of Six-Year TIP DESIGN CONSTRUCTION • Complete design of SR 169 HOV Queue Jump • Complete South Lake Washington Infrastructure Phase 2 Improvements • • Complete design for Rainier,Hardie and • Complete the Sunset/Duvall Intersection Planning Shattuck Railroad Bridge Replacements • • Finalize design of the Duvall Ave NE project • Start Rainier,Hardie and Shattuck Railroad Bridge Financing • Continue design of the Rainier Ave project Replacements •Scheduling • Continue design of the railroad realignment for • Start SR 169 HOV Queue Jump Improvements, the SW 27th St/Strander project Phase 2 • Past Commitment • Continue design for the S 3rd and Shattuck Ave • Start the Benson Road SIS 31et St signal project pedestrian improvements • Start the NE 4th St and Hoquiam Ave signal project • Start NE Sunset Blvd(SR 900)and Hoquiam Ave NE signal project m04 137 21043 IVIP Council, ust20,2007 4 50 AupCouncil,Actg.(20,2007 Council,August 20,2007 1 0 2007 Highlights 0 Successes and Opportunities Reconfigured Project ONGOING PROGRAMS A-- •= Rainier Avenue—S Grady Way to S rd signal indicators from incandescent to �`y��I` '1 • Retrofit all As currently envisioned,this joint ;,,,F, LED indicators Sound Transit and City of Renton ., • Install uninterruptible power supplies(NE 40^St., Project will add Business Access r and Sunset Blvd NE) �`'^� and Transit(BAT)lanes;add left t turn lanes at intersections;widen I . 4 _ • School Zone sign upgrades: ssidewalks with landscape;add McKnight Middle School • Sunset Blvd/Duvall Ave *.".' g NE Intersection litit C pedestrian scale Illumination, +r�-.r." 4,,. NE Tiffany Park Elementary transit facility improvements ._ y,,, St.Anthony School • S Lake Washington „ r (shelters,benches,info kiosks); Hillcrest Special Services Center Roadway Improvements planted buffer strips and Renton High School • Rainier Ave Railroad t3�4� .; landscaped medians. �� '� .. ,.' .r. Bridge replacement2818,137 �y11�� q�' gqaayy__ga9�y�9}�p 118181J1Y , f11aIYL71P Council,August 20,2007 Council,August 20,2007 Council,August 20,2007 0 Project Funding 0 Funding Sources Six-Year Period Funding Sources 6-Year Total Revenues=$64,462,801 ^.--- $80,000,000 ®Num Balance pgs&7171 $60,000,000 • Vehicle Fuel Tax vA©1•om�l a�•n•, $40,000,000 • Business License Fee 50,500,000 511,400,000 oft�$ ¢ Unfunded • Grants $0 ' Fended • Mitigation 1a�° � c ❑Bu,ise.a Lice•se Mee • Vehicle License Fee .Gv Fuel Tax ®Funded $64,462,801 u=»=a=� ■nuW;.n•nM«. ©Unfunded $56,966,034 ❑c..•motn•. ■c.wa:l.keme Mie Total :$121,428,835 nape 811813Th 10.0010Z7 81 Council,August 2007 1° 11 12 0 Council,August 20,2007 Council,Aupucf I0,2007 2 Y 0 :fit 02007-Biggest construction 2006/2007 Grants Awarded Partnerships year ever! Continues in 2008 • US Dept of Commerce—EDA WSDOT 2007: -South Lake Washington $ 2,054,314 SR 169 HOV Queue Jump Phase 2 • South Lake Washington Roadway • State Pedestrian and Bicycle Safety 1-405 Corridor Program Improvements - $25 M -Rainier Ave $ 230,000 Sound Transit • Rainier/Hardie Railroad bridge rebuild -$9 M • TIB UAP-Rainier(R-O-W/Constr.) $ 1,906,200 Rainier Ave Project-$14.9 M 2008: • WSDOT Mobility-Strander Blvd. $ 2,500,000 SW 27th/Strander Project-$4 M (out of a$5,500,000 grant for Sound Transit Station) King County • SW 27th St/Strander Blvd,Phase 1, Segment 2a,railroad track relocation-$18 M Duvall Avenue-$6 M SR 169 Improvements at 1-405-$10 M TOTAL GRANTS $6,690,514 Benson Rd S/S 31st St • nP • Duvall Ave Widening-$8 M211,111317 324:13TP Counall,August 20 200) I� Council,August 00,2007 I< Council,August 10,2007 IS 0 x 2'6:: .. ,,, „.- -,..: :40 3 C.)O`SYO� ADMINISTRATIVE, JUDICIAL, AND • , LEGAL SERVICES DEPARTMENT i,N� MEMORANDUM DATE: August 20, 2007 TO: Toni Nelson, Council President Members of the Renton City Council FROM: Kathy Keolker, Mayor Jay Covington, Chief Administrative Officer SUBJECT: Administrative Report In addition to our day-to-day activities, the following items are worthy of note for this week: GENERAL INFORMATION • Do you know someone who promotes and supports Renton? Someone who is dedicated to making the Renton community a great place to live, work, play, and learn? Here is your chance to recognize that special person for their commitment to Renton. Please nominate individuals for Renton's Citizen of the Year who are from the Renton community and perform acts of good will in an effort to help others and improve the quality of life in Renton. Download an application from rentonwa.gov or call the Renton Chamber of Commerce at 425-226-4560. The nomination deadline is August 31st. COMMUNITY SERVICES DEPARTMENT • The Renton Community Center will be closed for annual maintenance August 20th through August 26th. The pool, beaches, park sites, Senior Activity Center, and Carco Theatre will remain open and operational. During the closure, the Community Center front desk will be available by phone at 425-430-6700 Monday through Friday from 10 a.m. to 4 p.m. • The Fall "What's Happening..." brochure of recreation programs and activities will be available beginning August 24th. Registration for fall programs starts August 28th for Renton residents and August 30th for non-residents. • The Henry Moses Aquatic Center will close for the season on Labor Day, Monday, September 3rd. Be sure to stop by before it closes! The swimming areas at both Gene Coulon Memorial Beach Park and Kennydale Beach Park also will close for the season on Labor Day. ECONOMIC DEVELOPMENT, NEIGHBORHOODS & STRATEGIC PLANNING DEPARTMENT • Neighborhood picnics help enhance our quality of life and build a greater sense of community. Residents are encouraged to bring their favorite potluck dish and attend their designated picnic to get to know their immediate and surrounding neighbors and meet City representatives. Here's what's coming up: Renton Hill Neighborhood Association Annual Neighborhood Picnic Wednesday, August 22nd 6 to 8 p.m. Philip Arnold Park, 720 Jones Avenue South Administrative Report August 20, 2007 Page 2 Honey Creek Park Neighborhood Association Kick Off Picnic Thursday, August 23rd 5:30 to 7:30 p.m. 3533 NE 17th Place, off Sunset Boulevard in the Renton Highlands Liberty Ridge Homeowners Association Annual Picnic Wednesday, August 29th 5:30 to 8 p.m. Common area located on NE 1st between Ferndale and Glennwood Place Vineyards Homeowners Association Kick Off Picnic Thursday, August 30th 5:30 to 8 p.m. Common area located on NE 5th by the playground Kennydale Neighborhood Association Annual Neighborhood Picnic Wednesday, September 5th 5 to 8 p.m. Kennydale Lions Park, 2428 Aberdeen Avenue NE Earlington Neighborhood Association Annual Picnic Thursday, September 6th 5:30 to 8 p.m. Earlington Park, 272 Thomas Avenue SW PLANNING/BUILDING/PUBLIC WORKS DEPARTMENT • The City is working with BNSF Railway to replace three downtown railroad bridges at Shattuck, Rainier, and Hardie Avenues. The Rainier Avenue bridge demolition is complete, and the Hardie Avenue Railroad bridge demolition proceeded well within schedule last week. During the course of the work on the Hardie Avenue bridge, City of Renton stormwater management staff became aware of an opportunity to repair(upgrade the catchbasins in the road) part of the city's stormwater system under the railroad bridge while the street is closed. This added work will mean that Hardie Avenue is likely to be closed for the entire advertised duration (through August 20th) and perhaps a day longer. POLICE DEPARTMENT • A team of assessors from the Commission on Accreditation for Law Enforcement Agencies (CALEA) will arrive on August 26th to examine all aspects of the Renton Police Department's policy and procedures, management, operations, and support services. Agency employees and members of the community are invited to offer comments to the assessment team at a public information session on August 27th in the 7th Floor Conferencing Center at Renton City Hall beginning at 7 p.m. Comments may also be submitted to the assessment team by phone at 425- 430-7582 on August 28th between the hours of 1 and 5 p.m. Telephone comments as well as appearances at the public information session will be limited to 10 minutes. CITY OF RENTON COUNCIL AGENDA BILL AI#: q• e Submitting Data: For Agenda of: August 20,2007 Dept/Div/Board.. Economic Development,Neighborhoods & Strategic Planning Staff Contact Mark Santos-Johnson(ext. 6584) Agenda Status Consent X Subject: Public Hearing... Owner-Occupied Housing Incentives—Extension& Correspondence.. Modification Ordinance Resolution Business Exhibits: New Business • Issue paper Study Sessions • Ordinance with text for Renton Code 4-1-210 Waived Information Fees (owner-occupied housing incentives) Recommended Action: Approvals: Refer to the Planning&Development Committee Legal Dept Finance Dept Other Fiscal Impact: Expenditure Required... 0 Transfer/Amendment Amount Budgeted 0 Revenue Generated 0 Total Project Budget 0 City Share Total Project100% Summary of Action: In August 2001,the City Council approved the"Owner-Occupied Housing Incentive District"to help encourage owner-occupied housing in the Center Downtown and the Residential Multi-Family Urban zoning areas downtown(Renton Code 4-1-210 Waived Fees). The incentives were useful in helping to establish the 37-unit 55 Williams and the 50-unit Chateau de Ville condominium projects as new owner- occupied housing development in downtown. The incentives will sunset on October 1, 2007,unless extended by City Council action. Staff Recommendation: • Per the provisions of RMC 4-9-015, approve an exemption to proceed outside of the annual Title 4 amendment process due to the sunset of the "Owner-Occupied Housing Incentives" in RMC 4-1- 210 on October 1,2007. • Extend the owner-occupied housing incentives in place for downtown Renton through December 31, 2009,unless otherwise extended by the City Council. • Modify the eligibility criteria, identify an application process, implement a restrictive covenant requiring the benefited project to be "For Sale" housing, and make other changes to the existing text. • Adopt an ordinance to extend and modify Renton Code 4-1-210 Waived Fees. CITY OF RENTON ECONOMIC DEVELOPMENT, NEIGHBORHOODS, AND STRATEGIC PLANNING DEPARTMENT MEMORANDUM DATE: August 13, 2007 TO: Toni Nelson, Council President City Council Members VIA: Mayor Kathy Keolker FROM: Alex Pietsch, Administrator pcylte STAFF CONTACT: Mark Santos-Johnson, Senior Economic Development Specialist (ext. 6584) SUBJECT: Owner-Occupied Housing Incentives—Extension & Modification ISSUE: Should the City extend the owner-occupied housing incentives in place for downtown Renton(now scheduled to expire on October 1, 2007)? Additionally, should the City modify the language of the code to better clarify the criteria to qualify, as well as the fees that may be waived? Finally, should the City add language to the code that outlines the application process and institutes a provision that would ensure the incentive only be used for owner-occupied housing? RECOMMENDATION: • Per the provisions of RMC 4-9-015, approve an exemption to proceed outside of the annual Title 4 amendment process due to the sunset of the "Owner- Occupied Housing Incentives"in RMC 4-1-210 on October 1, 2007. • Extend the owner-occupied housing incentives in place for downtown Renton through December 31, 2009, unless otherwise extended by the City Council. • Modify the eligibility criteria, identify an application process, implement a restrictive covenant requiring the benefited project to be "For Sale"housing, and make other changes to the existing text. • Adopt an ordinance to extend and modify Renton Code 4-1-210 Waived Fees. BACKGROUND SUMMARY: On August 13, 2001, the City Council approved the"Downtown Owner-Occupied NIS Housing Incentive District"to help encourage owner-occupied housing in the Center Downtown(CD) and Residential Multi-Family Urban(RM-U) zoning areas downtown. Established by Ordinance#4913 on August 27,2001, the provision allowed certain development and mitigation fees to be waived for"For Sale"housing within the district. The fee waivers were effective for building permits issued after August 13, 2001, and will sunset on October 1, 2007, unless extended by City Council action. To date, there have been two projects that have taken advantage of the waived fees incentive, 37-unit 55 Williams and the 50-unit Chateau de Ville. 55 Williams has been completed and Chateau de Ville is expected to be completed by the end of the year. Together these projects will have helped place an additional 87 homeowners in downtown Renton. This number of units is relatively low when compared with the capacity for units in the downtown and the larger need for moderately priced housing in Puget Sound. Additionally, thus far only the CD zone has received the benefit of for sale condominium projects that have taken advantage of the fee waiver. The RM-U zone has not had any projects to date. Recently, the Renaissance apartments in the downtown were converted to condominiums and are being sold under the Revo 225 name. This demonstrates a slight shift in the market in Renton. When the Renaissance was built the developer believed that there was not a market for condominiums in downtown Renton,but in 2007 under the Wasatch group the condominium conversion has taken place. While this conversion did not qualify to receive the waived fees incentive, it does demonstrate that the market is interested in condominium units in downtown Renton. However, staff believes that the waived fees incentive is still necessary to encourage new owner-occupied development in downtown Renton. Example of Potential Development and Mitigation Savings 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 incentives, 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.) These incentives worked out to a savings of approximately$3,216 per unit. The Chateau de Ville project with 50 units was expected to receive a total savings of approximately$169,485 from the owner-occupied housing incentives, including$59,100 in fire, transportation and parks mitigation fees, $73,465 in water, wastewater system development and surface water charges, and $36,919 in building permit fees. These incentives worked out to a savings of approximately$3,390 per unit. The waived fees incentive was initially scheduled to sunset in October 2004,but the City Council previously extended the sunset to October 1,2007. 2 Extension and Modification of Owner-Occupied Housing Incentives Nome? The Washington State Legislature has been working to address some of the liability issues related to condos to help stimulate more condo development in the state. Although some progress has been made, many developers are still reluctant or unwilling to build condos in the current environment. For the developers who are building new condos as opposed to converting apartments to condominiums, there are other stronger market areas for them to develop their projects than downtown Renton. Consequently, it is still a challenge to promote new owner-occupied housing in downtown Renton. In December 2003, the City Council established the Multi-Family Property Tax (Exemption)to help stimulate construction of new multi-family development in selected targeted areas, including Downtown Renton, the Highlands, and South Lake Washington. As adopted, the program allows owners of eligible multi-family housing projects (e.g., apartments or condominiums)to receive a partial property tax exemption for up to 10 years as an added financial incentive for developers to create multi-family housing in targeted areas in our community. Although the Exemption applies to both eligible condos and apartments in the Center Downtown(CD) and Residential Multi-Family Urban zones in downtown Renton, Chateau de Ville is the only one of the current six Exemption projects that are condominiums in the three targeted areas. PROPOSED CHANGES: The changes staff has recommended clarify what projects qualify to receive the waived fees, identify an application process, and seek to ensure that those projects that receive the fee waiver actually are built and sold as owner-occupied housing. In order to encourage land assembly and/or larger scale projects, staff has amended the waived fees code language to add the Residential Multi-Family Traditional (RM-T) zone to the eligible zones and to increase the project size threshold for each zone from the current minimum of four housing units. In the RM-T zone the threshold is a minimum of ten units and in both the CD and RM-U zones the minimum project size is thirty units. The requirement that the project be new construction still applies. Staff has also specifically identified which fees may be waived and omitted the existing text regarding repayment of waived(mitigation) fees. The fees that may be waived are: building permit fees, building permit plan review fees, water, surface water, and wastewater system development charges, Public Works plan review and inspections fees, and fire, transportation, and parks impact mitigation fees. The amended language also states that those who intend to apply for the waived fees incentive would need to disclose their intent to apply for the fee waiver at the Administrative Site Plan Review and that the application for the fee waiver must be made at the time of the Land Use Application. Finally, the amended code includes a provision for a restrictive covenant that would be placed on the project requiring that the units for which waived fees are received be sold as owner-occupied housing. If the developer should modify the nature of their project to a rental or other type housing product that would not be "for sale" after receiving the waived fees incentive, they would be required to pay all applicable fees with interest. Noe3 Please refer to the attached redline version of the proposed text for RMC 4-1-210 for more information. CONCLUSION: The owner-occupied housing incentives established in August 2001 were useful in helping to establish the 37-unit 55 Williams and the 50-unit Chateau de Ville project as new owner-occupied housing in downtown Renton. Although there continues to be some interest and plans for condo conversion downtown, EDNSP believes that future prospects for new additional potential condominium developments will be significantly improved if the owner-occupied housing incentives are extended through December 31, 2009, unless otherwise extended by the Council. Attachments: • RMC 4-1-210 Waived Fees—Proposed New Text(Redline Version) cc: Jay Covington Gregg Zimmerman Michael Bailey Neil Watts *4600/ 4 RMC 4-1-210 WAIVED FEES - PROPOSED NEW TEXT (REDLINE VERSION) A. GENERAL The Renton City Council shall, upon stating an equitable or legal reason for waiver, have the authority to waive any and all fees authorized under this Chapter of Title 4. (Ord. 5153, 9-26-2005) B. DOWNTOWN OWNER-OCCUPIED HOUSING INCENTIVE: 1. Purpose: To encourage owner-occupied housing in the CD, RM-U, and RM-T zones of the Urban Center Comprehensive Plan designation within the City of Renton, certain development and mitigation fees for"For Sale"housing may be waived for eligible projects, subject to City Council approval. Fees which may Public Works plan review and inspection fees, and impact mitigation fees. Waived fees will be replenished from tax revenues from the projects over time. dwelling units each in the CD, RM U, or RM T zones. 2. Eligibility Criteria: To qualify for waived fees, projects must meet the following criteria: a. the project is new construction, and b. all of the housing units will platted or condominium "For Sale"housing, `ow and c. the project will be a minimum ten(10) units if in the RM-T, or d. the project will be a minimum thirty(30) units if in the CD zone or RM-U zone. 3. Applicable Fees: Fees which may be waived are: building permit fees,building permit plan review fees, water, surface water, and wastewater system development charges, Public Works plan review and inspection fees, and fire, transportation, and parks impact mitigation fees. 4. Application Process: Persons who intend to apply for the Downtown Owner- Occupied Housing Incentive waived fees shall disclose their intent to apply for waived fees at the Administrative Site Plan Review. The application for waived fees must be made to the Development Services Director at the time of the Land Use Application,unless otherwise approved by City Council. 5. Restrictive Covenant: All residential units for which waived fees are granted shall be placed in a restrictive covenant that declares the units will be platted or condominium housing. After approval by the City, the City provided covenant is to be executed and recorded, at the applicants expense when provided by the City and not later than the issuance of the building permit for the project, unless otherwise approved by City Council. Applicants who fail to execute and record the covenant in a timely manner will be required to pay all an.licable fees with interest. 6. Cancellation of Covenant: If after the application has been approved and/or the restrictive covenant is recorded, the type of housing to be offered is altered from owner-occupied for sale new housin• type, all applicable fees must be paid with interest. 7. Effective Date and Sunset: These fee waivers are effective for building permits issued after August 13, 2001, and will sunset on October 2�TDecember 31, 2009,unless extended by City Council action. (Ord. 4913, 8-27-2001; Amd. Ord. 5095, 9-13-2004; Ord. 5153, 9-26-2005) DRAFT CITY OF RENTON, WASHINGTON Nome ORDINANCE NO. AN ORDINANCE OF THE CITY OF RENTON, WASHINGTON, AMENDING SECTION 4-1-210, WAIVED FEES, OF CHAPTER 1, ADMINISTRATION AND ENFORCEMENT, OF TITLE IV (DEVELOPMENT REGULATIONS) OF ORDINANCE NO. 4260 ENTITLED "CODE OF GENERAL ORDINANCES OF THE CITY OF RENTON, WASHINGTON" BY EXTENDING AND MODIFYING THE WAIVER OF CERTAIN DEVELOPMENT AND MITIGATION FEES. WHEREAS,the Renton City Council approved Ordinance No. 4913 on August 27, 2001, to allow certain development and mitigation fees for"For Sale"housing to be waived to encourage owner-occupied housing in the CD and RM-U zones; and WHEREAS, these development and mitigation fees waivers are effective for building permits issued after August 13, 2001, and will sunset on October 1, 2007, unless extended by City Council action; and WHEREAS,the provisions of Section 4-1-210, Waived Fees, were useful in helping to establish the 37-unit 55 Williams and the 50-unit Chateau de Ville projects as new owner-occupied housing in downtown Renton; and WHEREAS, the Renton City Council desires to continue to encourage additional owner-occupied housing in the Urban Center Comprehensive Plan designation and thereby extend the development and mitigation fee waivers through December 31, 2009, unless further extended by Renton City Council action; and WHEREAS, the Renton City Council desires to modify the eligibility criteria, identify an application process, implement a restrictive covenant requiring the benefited project to be "For Sale"housing, and make other changes to the existing text; 1 ORDINANCE NO. NOW,THEREFORE, THE CITY COUNCIL OF THE CITY OF RENTON, WASHINGTON, DO ORDAIN AS FOLLOWS: SECTION I. Section 4-1-210, Waived Fees, of Chapter 1, Administration and Enforcement, of Title IV (Development Regulations) of Ordinance No. 4260 entitled"Code of General Ordinances of the City of Renton, Washington", B. OWNER-OCCUPIED HOUSING INCENTIVE is hereby entirely amended to read as follows: B. DOWNTOWN OWNER-OCCUPIED HOUSING INCENTIVE: 1. Purpose: To encourage owner-occupied housing in the CD, RM-U, and RM-T zones of the Urban Center Comprehensive Plan designation within the City of Renton, certain development and mitigation fees for"For Sale"housing may be waived for eligible projects, subject to City Council approval. 2.. Eligibility Criteria: To qualify for waived fees, projects must meet the following criteria: a. the project is new construction, and b. all of the housing units will platted or condominium"For Sale"housing, and c. the project will be a minimum ten(10) units if in the RM-T, or d. the project will be a minimum thirty(30)units if in the CD zone and RM-U zone. 3. Applicable Fees: Fees which may be waived are: building permit fees,building permit plan review fees, water, surface water, and wastewater system 2 ORDINANCE NO. development charges, Public Works plan review and inspection fees, and fire, No ' transportation, and parks impact mitigation fees. 4. Application Process: Persons who intend to apply for the Downtown Owner- Occupied Housing Incentive waived fees shall disclose their intent to apply for waived fees at the Administrative Site Plan Review. The application for waived fees must be made to the Development Services Director at the time of the Land Use Application, unless otherwise approved by City Council. 5. Restrictive Covenant: All residential units for which waived fees are granted shall be placed in a restrictive covenant that declares the units will be platted or condominium housing. After approval by the City, the City provided covenant is to be executed and recorded, at the applicants expense when provided by the City and not later than the issuance of the building permit for the project, unless No otherwise approved by City Council. Applicants who fail to execute and record the covenant in a timely manner will be required to pay all applicable fees with interest. 6. Cancellation of Covenant: If after the application has been approved and/or the restrictive covenant is recorded, the type of housing to be offered is altered from owner-occupied for sale new housing type, all applicable fees must be paid with interest. 7. Effective Date and Sunset: These fee waivers are effective for building permits issued after August 13, 2001, and will sunset on December 31, 2009, unless extended by City Council action. (Ord. 4913, 8-27-2001; Amd. Ord. 5095, 9-13- 2004; Ord. 5153, 9-26-2005) 3 ORDINANCE NO. SECTION II. This ordinance shall be effective upon its passage, -yeti approval, and five (5)days after its publication. PASSED BY THE CITY COUNCIL this day of , 2007. Bonnie I. Walton, City Clerk APPROVED BY THE MAYOR this day of , 2007. Kathy Keolker, Mayor Approved as to form: Lawrence J. Warren, City Attorney Date of Publication: ORD.xx 4 • y. CITY OF RENTON COUNCIL AGENDA BILL AI #: 9. e- kitioi Submitting Data: For Agenda of: Dept/Div/Board.. PBPW/Utility Sys/Surface Water August 20, 2007 Staff Contact Ron Straka,x-7248 Agenda Status Consent X Subject: Public Hearing.. NPDES Phase II Municipal Stormwater Permit Correspondence.. Compliance New Program and Rate Increase Ordinance Resolution Old Business Exhibits: New Business Issue Paper Study Sessions Information Recommended Action: Approvals: Refer to Utilities Committee Legal Dept Finance Dept Other Fiscal Impact: Expenditure Required... $1,561,651 Transfer/Amendment Amount Budgeted $0 Revenue Generated Total Project Budget City Share Total Project.. SUMMARY OF ACTION: The National Pollutant Discharge Elimination System(NPDES)Phase II Municipal Stormwater Permit was issued on January 17, 2007, by the Washington State Department of Ecology. The permit is a requirement of the Federal Clean Water Act. The permit requires specific actions and deadlines for implementation of the programs in order to be in compliance over a five-year period. As part of the Surface Water Utility Master Plan update, City staff, along with project consultant RW Beck, have conducted a review of existing programs and identified a realistic assessment of program changes with respect to the minimum staffing, equipment, and other work that is needed to comply with the permit requirements. A previous briefing of the Utilities Committee regarding the permit requirements and the new program needs was provided on July 5, 2007. The new program requests a total of 4.7 new full time employees (FTEs). These positions are needed for storm system maintenance (2.0 FTEs),public involvement, education and record keeping (1.0 FTE), storm system mapping and GIS work(0.7 FTE) and illicit discharge detection and elimination and private storm water facility inspection program (1.0 FTE in 2009), all of which are required by the permit. The purchase of a new vactor truck($416,500) is needed to meet the storm system cleaning requirements of the permit. Additional funding will be needed in the Surface Water Utility CIP ($680,000) over a two-year period to perform field work to map the storm system in the City to comply with the permit requirements and to improve Utility maintenance and operations. The Surface Water Utility rate increase needed to fund the new program for an average single family residential rate would need to increase by $1.63 from $5.72 per month to $7.35 per month(28.5%increase). STAFF RECOMMENDATION: Approve the Surface Water Utility's new program request required to comply with the NPDES Stormwater Permit and the Surface Water Utility rates increase necessary to fund the new program. H:\Fi1e Sys\SWA-Surface Water Section Administration\SWA 01-Financial&Budget\2008 Budget\New Program Request\070809 NPDES Compliance New Program AGENDA BILL.doc\RStp ti` ;O PLANNING/BUILDING/;� , PUBLIC WORKS DEPARTMENT bAk ‘e'�N�O� MEMORANDUM DATE: August 10, 2007 TO: Toni Nelson, Council President Members of the Renton City Council VIA: .-jKathy Keolker, Mayor FROM: Gregg Zimmerman, Administrator(J STAFF CONTACT: Ron Straka, Surface Water Utility Engineering Supervisor(ext. 7248) SUBJECT: Surface Water Utility NPDES Permit Compliance New Program and Rate Increase ISSUE: Should the Council approve the Surface Water Utility's new program request required to comply with the National Pollution Discharge Elimination System Phase II Municipal wr Stormwater Permit and the associated increase in Surface Water Utility rates necessary to fund the program? RECOMMENDATION: Approve the Surface Water Utility's new program request required to comply with the National Pollution Discharge Elimination System Phase II Municipal Stormwater Permit and the associated increase in Surface Water Utility rates necessary to fund the program. BACKGROUND SUMMARY: The National Pollutant Discharge Elimination System (NPDES) Phase II Municipal Stormwater Permit (Permit) was issued on January 17, 2007, by the Washington State Department of Ecology. The Permit is a requirement of the Federal Clean Water Act and the Department of Ecology administers the Permit for the Environmental Protection Agency in Washington. There are a total of 80 cities and 5 counties in Western Washington that have to comply with the Permit. The permit has specific requirements and deadlines for implementation of the programs in order to be in compliance with the permit over a five-year period(Permit Schedule attached). The purpose of the programs is to minimize the discharge of pollution from municipal stormwater systems into our streams, lakes, rivers and wetlands to protect their beneficial uses (swimming, boating, fishing, aesthetics) and other environmental resources. The implementation of the ,,,r,,, programs required by the permit will help to reduce costs associated with the clean-up of Council/NPDES New Program August 10,2007 Page 2 of 4 polluted water bodies, storm system maintenance and operation, and the capital improvement program. As part of the Surface Water Utility Master Plan update, City staff, along with project consultant RW Beck,have conducted a review of existing programs and identified a realistic assessment of program changes with respect to the minimum staffing, equipment, and other work that is needed to comply with the permit requirements. A previous briefing of the Utilities Committee regarding the permit requirements and the new program needs was provided on July 5, 2007. The new program requests (attached) a total of 4.7 new full-time employees for a total cost for salaries, benefits, computer equipment and workstation $465,151. The following is a summary of the new program requests needed to comply with the permit: 1. The Permit requires the inspection and cleaning, if needed, of every public catch basin in the next 5 years. To accomplish this, two additional Surface Water Utility Maintenance Workers (2.0 FTEs) are needed to increase our existing storm system-cleaning program to meet the Permit standard. In addition, a new storm system cleaning vactor truck is needed, which is estimated to cost $300,000 and have an annual replacement and operation and maintenance cost of$116,500 ($416,500 total). These positions and equipment are needed in 2008. 2. The Permit requires the implementation of a public education and outreach and education program aimed at residents, business, industries, elected officials, "a/` policy makers and City employees. The goal of the program is to reduce or eliminate behaviors and practices that cause or contribute to adverse stormwater impacts. In addition, the Permit requires extensive record keeping and reporting of activities and costs associated with complying with the permit. A new position in the Surface Water Utility Engineering Section is needed in 2008 to meet the requirements of the Permit associated with public education and outreach along with the record keeping and reporting. 3. The Permit requires Geographic Information System (GIS) mapping of the City storm systems, outfalls, tributary basin areas, the land uses in basins, along with data about the storms system type, material and size type, size and other attributes. This information is needed to meet the illicit discharge and elimination (IDDE) and public and private inspection and maintenance program requirements of the Permit. The information will also help the Utility in the maintenance and operation of the City storm system, future capital improvement program planning and tracking of Permit compliance. The Surface Water Utility currently funds a 0.3 FTE to maintain a storm system inventory map, but the information is not GIS based. A 0.7 FTE increase in the existing mapping position is needed in 2008 to meet the Permit requirements. This would allow the Surface Water Utility to work towards including the City's storm system as a layer in the City GIS, which would also improve access to information for other City employees and the public, and improve work efficiency and customer service. H:\File Sys\SWA-Surface Water Section Administration\SWA 01-Financial&Budget\2008 Budget\New Program Request\070810 NPDES Compliance New Program Issue Paper.doc\RStp Council/NPDES New Program August 10,2007 Page 3 of 4 Nose 4. In order to accomplish the mapping requirements associated with the Permit and develop a functional GIS that has multiple benefits, an additional $680,000 of funding is needed in the Surface Water Utility Capital Improvement Program to implement a contract to field map the existing public storm system in the City through the use of Global Positioning System. The program will build upon existing work that has been completed and help map storm systems in areas where there are no as-built drawings of the storm systems. This will help the Utility determine a more accurate estimate of the quantity of storm systems and facilities that need to be maintained and operated for use in tracking of maintenance programs and Permit compliance. The work would be implemented over a minimum of 2-years starting in 2008. The information collected from the field work will be used by the additional 0.7 FTE GIS mapping position above to build the storm system layer in the City's GIS. 5. The Permit requires the implementation of an illicit discharge detection and elimination (IDDE)program and a private facility inspection program. The IDDE program requires the adoption of regulations prohibiting the improper disposal of non-stormwater discharges in to the pubic storm systems. The Permit requires the development and implementation of an ongoing program to detect and address non-stormwater discharges, spills, illicit connections and illegal dumping into the public storm system. The permit also requires the adoption of regulations and implementation of a program to inspect and enforce maintenance of privately "oe" owned storm systems that discharge to the pubic storm system. To accomplish the work associated with the IDDE and private stormwater facility inspection programs as required by the Permit, 1.0 FTE is needed in the Surface Water Utility Engineering Section starting in 2009. The Permit includes other requirements associated with controlling runoff from new development, redevelopment and construction sites, along with pollution prevention and operation and maintenance for Municipal operations. These requirements will be accomplished with existing staff resources. The most significant work item associated with these Permit requirements is the adoption of storm water design standards that are equivalent to the Ecology 2005 Stormwater Management Manual for Western Washington. The total cost associated with the Surface Water Utility NPDES Phase II Municipal Stormwater Permit compliance new program is $1,561,651. The required rate increase needed to fund the new program was analyzed using the Surface Water Utility rate model. The monthly Surface Water Utility rate increase needed to fund the new program for an average single-family residential rate would need to increase by$1.63 from $5.72 per month to $7.35 per month (28.5% increase). The rates for other Surface Water Utility customer classes would increase by the same percentage as the residential rate. err H:\File Sys\SWA-Surface Water Section Administration\SWA 01-Financial&Budget\2008 Budget\New Program Request\070810 NPDES Compliance New Program Issue Paper.doc\RStp Council/NPDES New Program August 10,2007 Page 4 of 4 CONCLUSION: 4,40' It is recommended that Council approve the Surface Water Utility's new program request required to comply with the National Pollution Discharge Elimination System (NPDES) Phase II Municipal Stormwater Permit and the associate increase in Surface Water Utility rates necessary to fund the required new program. Attachments cc: Peter Hahn,PBPW Deputy Administrator-Transportation Lys Hornsby,Utility Systems Director Mike Stenhouse,Maintenance Systems Director Nenita Ching,PBPW Principal Financial and Admin Analyst H:\File Sys\SWA-Surface Water Section Administration\SWA 01-Financial&Budget\2008 Budget\New Program Request\070810 NPDES Compliance New Program Issue Paper.doc\RStp ( ( . ( CITY OF RENTON NPDES PHASE II Municipal Stormwater Permit Schedule Year= 0.0 1.0 2.0 2.5 3.0 4.0 4.5 5 2007 2008 2009 2010 2011 2012 2013 if Program Requirement Reporting Section Due from Due 01 02 03 04 01 02 03 04 01 02 03 04 01 02 03 04 01 02 03 04 01 02 03 04 01 02 03 04 Effective Date A 51.Permit Coverage Area and Permittees(Notice of Intent req'd to be submitted) Done X, B 52.Authorized Discharges - - , C 53.Responsibilities of Permittees - , D 54-Compliance with Standards - E 54.F.2.Required responses to WQ Standards violations Within 30days 03/15/07 F S4.F.2.a.Response to Ecology with report of SWMP and cleanup per plan description. Within 60days 04/15/07 1 S5.A.1 SWMP to be developed and FULLY implemented 180401(expir) 08/19/11 ,x U 2 55.A.3.a SWMP Tracking Cost Reporting , JAN.1,2009 01/01/09 X X - X X 3 S5.A.3.b Track number inspections,enforcements,educational programs. Annually 03/31/08 X X X X X 4 S5.C.1.a Education and Outreach Program Provided for Service Area 2 yr(eff) 02/15/09 X X , X x 5 S5.C.1.0 Education and Outreach-Adopted Behaviors Measurement Reporting 2 yr(eff) 02/15/09 'X X` X X 6 55.0 2.a Public Involv:Create opport.For Public in decision making process,SWMP comm 1 yr(eff) 02/15/08 X X XX X 7 S5.C.2.b Pubic Invoty.Make SWMP avail to Public,website developed,reprt into website. 1 yr(eff) 02/15/08 X X X X X 8 55.C.3 IDD&E:Fully implement IDDE program by end of this period. 180d of(expir) 08/19/11 X U 9 S5.C.3.a IDD&E:Map of MS4 4 yrs(elf) ,02/15/11 - _ X , U. 10 S5.C.3.a.0 IDO&E:Develop Program for Mapping 1 yr(eff) 02/15/08 X X X X X 11 S5.C.3.a.vi IDD&E:Provide Maps to Cp-permittees/2ndary - 12 S5.C.3.b IDD&E:Develp 4 Implement Ordinances to prohibit discharges 2.5 yrs(ell) 08/15/09 X U U U 13 S5.C.3.c IDD&E:Dev.&Implement Ongoing IDD$Program , 180d of(expir) 08/19/11 , X ,U 14 S5.C.3.c.ii IDD&E'Prioritize Receiving Waters for Visual Insp. 3 yrs(ell) 02/15/10 X U U 15 S5.C.3.c.ii IDD&E.Field Assessment of 3 high priority receiving waters 4 yrs(eff) 02/15/11 X U 16 S5.C.3.c.ii IDD&E:Ongoing Field Assessment of High Priority Receiving Waters 4 yrs(elf) 02/15/11 U A U U X U 17 S5.C.3.c.iii IDD&E:Spills,improper disposal,&complaint procedures 180d of(expir) 08/19/11 X U 19 55.C.3.p.iv IDD&E:Procedures for tracing illicit discharges 180d of(expir) 08/19/11 .. X U 20 S5.C.3-c.v IDD&E'Procedures for removal of illicit discharges 180d of(expir) 08/19/11 X U 21 55-C.3.d.i IDD&E:Distr.Of info to targeted audiences 180d of(expir) 08/19/11; , X U 22 S5.C.3.d.ii IDD&E:Publicly list and publicise hotline 2 yrs(eff) 02/15/09 , X U U U 23 55.C.3.e IDD&E:Adopt procedures to evaluate and assess program 180d of(expir),08/19/11 X U 24 S5-C.3.f.1 IDD&E'Ensure responsible staff are trained 2.5 yrs(elf) 08/15/09 X' U U 25 S5.C.3.f.ii IDD&E:On-going training for all municipal field staff 3 yrs(eff) 02/15/10 .- ' X - U U 26 S5.C.4 Controlling Runoff:Dev.,implement,and enforce program 2.5 yrs(eff) 08/15/09 , X U U U 27 S5.C.4.a Controlling Runoff:Apopt-Ordinance 2.5 yrs(eff) -08/15/09 , X U - U U 28 S5.C.4.b Controlling Runoff:Dev.Permitting Process Plan Review/Insp. 2 5 yrs(eff) ,08/15/09 X U U U 29 S5.C.4.b.vi Controlling Runoff:Enforcement strategy to be developed and implemented. 2.5 yrs(eff) 08/15/09 - X U U U 30 55.C,4.c Controlling Runoff;O$.M of permitted lard.&BMPs 2.5 yrs(eff) 08/15/09, X U U U , 31 55.C.4.c.1 Contropmg Runoff,Adoption of O&M ordinance 2.5 yrs(eff) ,08/15/0.9 , , , X U U U 32 55-C.4.c.ii Controlling Runoff:Adoption of maintenance standards 2.5 yrs(elf) 08/15/09X U U U 33,S5.C.4.d Controlling Runoff:Record keeping of all inspections and enforcements by staff Immediately 02/15/07 X .X X= -X X, X 34 S5.C.4,e Controlling Runoff'Provide copies of NOI for constr.Or indust activity 2.5 yrs(eff) 08/15/09 X U U U - 35 S5.C.4.f Controlling Runoff:Stag Training 2.5 yrs(elf) 08/15/09 X U U U 3,6 S5.C.5 Pollution Prevention&Operation&Maintenance for Municipal Operations Program 3 yrs(elf) 02/15/10r X U U 37 55.0.5 Pollution Prevention'Dev.&Imp!.O&M Program with Maintenance Standard Dev. 3 yrs(elf) 02/15/10 X U U 38 S5,C.5.b Pollution Prevention:Annua)Inspection of all Muni.WQ and Det.Facilities 3 yrs(eft) 02/15/10, X U U' , 39 S5.C.5.c$pot Checks alter mlr.Storm events&repairs 3 yrs(elf) 02/15/10 , 4 X u„ U 40 S5.C.5.d Pollution Prevention:Insp and cleaning of CBs&inlets 3 yrs(eff) 02/15/10 X U U 41 S5.C.5.f Pollution Prevention:Estb.&Imp!.Practices to reduce SW impacts 3 yrs(eff) ,02/15/10 X' U U+ 42 S5.C.5.q Pollution Prevention.Estb&ugpl.Policies to reduce SW impacts 3 yrs(eff) 02/15/10 - X U U 43 S5.C.5.h Pollution Prevention:Staff Training 3 yrs(eff) 02/15/10 - , X U U 44 S5.C.5.1 Pollution Prevention:Dev.,Imps.,SW PPP for facil. 3 yrs(eff) 02/15/10 X U U 45 S7.Compliance with Total Maximum Daily Load Requirements(TMDLs),QAPP regwremen Appendix 2 I 45$8.B.1 Monitoring:Provide monitoring studies in each annual report Annually 03/31/08 X X X X X' 46 58.8.2 Monitoring:Assessment of the appropriateness of BMP5 identified for SWMP Annually 03/31/08 X XX X X 47 S8.0 Monitonng' Future Long Term Monitoring Program Annually 03/31/08 X X "X' X X 48 S8.C.1.a Monitoring.Stormwater Monitoring,City to identify two outfalls for sampling Annually 03/31/08 X X X X X 49 S8.C.1.b Monitoring.Stormwater effectiveness Monitoring for two sites and questions Annually 03/31/08 X X X , X X 50 S8.C.2.Monitoring:Reporting requirements for monitoring x' x 51 S9 Reporting Requirements Annually 03/31/08 X X X X X 1 4, Permit Effective Date'(02/16/2007) Permit Renewal Date(02/15/2012) e nd: '= Permit Expiration and Renewal Deadline X = Permit Reposing Requirement,Major Deadline U = Permit Update Summary Only 1= Working periods eff = From Effective Date of the Permit(Febr.16,2007) H:\File Sys\SWP-Surface Water Projects\SWP-27-Surface Water Projects(CIP)\27-3058 2003 NPDES Phase II Stormwater Permit\NPDES Phase 2 Perms\Scheduling\NPDESII-01-22-07-FINAL-WITHNOTES.XLS „. r ! 2008 New Request Form c�� ci#, ivvo Planning/Building/Public Works Dept# 018 k. ct' Ron Straka,x7248 Date Submitted 8/1/07 441111 ogram Name NPDES Stormwater Permit Compliance Program Priority 1 Program New ® Existing ❑ Fund# 407 Program type Ongoing ® One time ® Division Name Utility Systems Why do you need this? (Describe the program and how it addresses the City's goals. Detail the outcomes and measurable that will be attained with this request. If you need more space,attach additional sheet.) The NPDES Phase II Municipal Stormwater Permit(Permit)was issued on January 17,2007,by the Washington State Department of Ecology and became effective on February 16,2007. The permit is a requirement of the Federal Clean Water Act and is administered by the Department of Ecology for the Environmental Protection Agency. The Permit identifies specific program requirements and deadlines for implementation of the programs in order to be in compliance with the permit over a 5-year period, intended to protect surface water quality from non-point source pollution. The Permit includes programs related to public education,pubic involvement, compliance tracking and reporting,illicit discharge detection and elimination,controlling runoff from new construction,increased operation and maintenance of public and private storm systems,and training and ordinance adoption. These programs will meet the City's business goal by meeting service demands that contribute to a more livable City. The intended outcome of the programs is to comply with the permit requirements and meet all deadlines for compliance. Information about the need for this new program was provided to Council,and the Utilities Committee was briefed about the Permit compliance requirements on July 5, 2007. The City is legally required to comply with the permit. Check all business goal#'s that this program addresses Goal 1 ❑ Goal 2 ❑ Goal 3 ❑ Goal 4 ® Goal 5 ❑ City Programs : 1. % ti 2. % 3. % 4. Environment/Utility Systems— Surface Water 100% 5. % Summary of New Request Costs Summary of FTE Requested<Complete Section A > 10 Salaries&Wages $284,905 No. of FTE End Date <Complete Section A> 10 Overtime Regular Full Time 4.7 20 Benefits $147,246 Limited Term FTE 30 Supplies Regular Part Time Equipment/Uniform Annual Hours 9776 Computer/Software 3 X$5,000=$15,000 Temporary/Intermittent 40 Other Services and Charges 60 Capital Needs(>$5000) <Complete Section B > Summary of Funding Sources Vehicle Grants Workstation 3 X$6,000=$18,000 Fees/Rates 100% Major Equipment $416,500 General Fund 427 Other Costs <Complete Section C> Mitigation One time—CIP funded $680,000 Other TOTAL EXPENDITURES $1,561,651 TOTAL REVENUES $1,561,651 H:\File Sys\SWA-Surface Water Section Administration\SWA 01-Financial&Budget 2008 Budget\New Program Request\NPDES Phase II Municipal Stormwater Permit Compliance.doc ti'SY 0 Section A : Staff Adjustments (Complete a separate form for each FTE) ALW heck one: ® Request to add new position: Position Name 2-Maintenance Worker III Positions ❑ Reclassification Grade&Step Al2,C Effective Date:1/1/2008 Total Salary Salary $49,021 X 2=$98,042 Benefits $31,329 X 2=$62,658 Total Cost $80,350 X 2=$160,700 Explanation for adding/reclassing position(s). Include description of position,responsibilities and impact on office staff. The two(2)Maintenance Worker III positions are needed to comply with the National Pollutant Discharge Elimination System Phase II Municipal Stormwater permit requirements related to cleaning of City-owned storm systems. Their primary responsibilities will focus on cleaning storm pipe system,catch basins,and other City-owned storm flow control and treatment facilities. National Pollutant Discharge Elimination System Phase II Municipal Stormwater permit requires the inspection and cleaning,if needed,of all municipally owned flow control facilities,water quality treatment facilities,and catch basins within a 5-year period ending in January 2012. There is approximately 219 miles of storm system that the Surface Water Utility owns and maintains that would need to be inspected and cleaned. It is assumed that the two Maintenance Worker III positions will not need a computer or workstation space,since they work out of the City Shops(PBPW Maintenance Services Division). Section B: New Equipment/Vehicle (Complete a separate form for each equipment) Type of Equipment Vactor Truck Estimated life 5-yrs otal Cost $416,500($300,000 one time initial purchase cost+ Nortr $116,500/yr replacement and M&O cost) Brief Explanation for need of Equipment National Pollutant Discharge Elimination System Phase II Municipal Stormwater permit requires the inspection and cleaning, if needed,of all municipally owned flow control facilities,water quality treatment facilities,and catch basins within a 5-year period ending in January 2012. There is approximately 219 miles of storm system that the Surface Water Utility owns and maintains that would need to be inspected and cleaned. The vactor truck is needed for cleaning catch basins,pipes and other storm water facilities. As part of the work on the Surface Water Utility Master Plan development,an analysis of the annual miles of storm system cleaning that would need to be performed in order to comply with the permit requirements determined that a new vactor truck and two new Maintenance Worker positions to operate the truck was needed. vection C: Other Costs Noisy H:\File Sys\SWA-Surface Water Section Administration\SWA 01-Financial&Budget\2008 Budget\New Program Request\NPDES Phase II Municipal Stormwater Permit Compliance.doc IL t• Adjustments (Complete a separate form for each FTE) 11 tI �c#70 Civil Engineer III �,F c one: ®Request to add new position: Position Name g El Reclassification Grade&Step A27,C Effective Date: 1/1/2008 Total Salary Salary $70,930 Benefits $31,329 Total Cost $102,259 Explanation for adding/reclassing position(s). Include description of position,responsibilities and impact on office staff. The Civil Engineer III position is needed to comply with the National Pollutant Discharge Elimination System Phase II Municipal Stormwater permit requirements relating to public education,public outreach,and record keeping and reporting. The position will be responsible for developing a public education and outreach program to educate the public,business, developers,engineers and City staff about the importance to protect water quality,and methods and practices to protect water quality. This will be done in coordination with other City sponsored public educations,outreach and training programs. The position will also be responsible for tracking the City's compliance with the permit,cost of compliance and reporting progress on complying with the permit conditions and their deadlines annually to Ecology,as required by the permit. Section B: New Equipment/Vehicle (Complete a separate form for each equipment) Type of Equipment Workstation Estimated life Total Cost $6,000 Brief Explanation for need of Equipment This position will need a workstation and an engineering level computer. ►ection C: Other Costs H:\File Sys\SWA-Surface Water Section AdministrationSWA 01-Financial&Budget\2008 Budget\New Program Request\NPDES Phase II Municipal Stormwater Permit Compliance2.doc `. e.. ti`SY fJ 1, , t, Adjustments (Complete a separate form for each FTE) E i o° Position Name Engineering Specialist III(0.7 FTE) ' one: ®Request to add new position: (Change existing position from 0.3 FTE to 1.0 FTE) Grade&Step A23,C Effective Date: 1/1/2008 ❑ Reclassification Total Salary Salary $45,003 Benefits $21,930 Total Cost $66,933 Explanation for adding/reclassing position(s). Include description of position,responsibilities and impact on office staff. The 0.7 FTE Engineering Specialist III position increase is needed to comply with the National Pollutant Discharge Elimination System Phase II Municipal Stormwater permit requirements relating to storm system mapping. The Surface Water Utility currently funds a 0.3 FTE position for storm system mapping and inventory. The Permit requires the mapping of all municipally owned and maintained storm sewer systems,connections to City storm systems,drainage areas,land use and areas that don't discharge to surface waters. The information is needed for the illicit discharge detection and elimination program,private facility inspection program and to improve the M&O of the City's storm systems. The existing storm system inventory map would be used but transferred to the City GIS with database link information that cans assist in the tracking and reporting of permit compliance. The information will also be useful in asset management and identifying future infrastructure replacement needs. Section B: New Equipment/Vehicle (Complete a separate form for each equipment) Type of Equipment Workstation Estimated life liovotal Cost $6,000 Brief Explanation for need of Equipment This position will need a workstation and an engineering level computer. lection C: Other Costs The funding for a consultant contract for mapping in the Surface Water Utility CIP is needed to do field mapping of the City's storm systems using Global Positioning System(GPS). The work will determine a more accurate quantity of storm system that has to be maintained and operated by the City and provide the information needed to map the City's storm systems as required by the Permit. The work will build upon the existing storm system inventory map and database. The information will be added to the City's GIS to use in tracking permit compliance,to provide better information to customers(City staff, developers,engineers,contractors,public),and to improve the maintenance and operation of the system. The work will help build a City GIS storm system layer that would be part of a City GIS. The cost is estimated to be$340,000 per year for a minimum two years starting in 2008 for a total cost of$680,000. H:\File Sys\SWA-Surface Water Section Administration\SWA 01-Financial&Budget\Z008 Budget\New Program Request\NPDES Phase 11 Municipal Stormwater Permit Compliance4.doc 3 i ry ~�Y QA 1 '<t Adjustments (Complete a separate form for each FTE) t:` eck one: ®Request to add new position: Position Name Civil Engineer III El Reclassification Grade&Step A27,C Effective Date: 1/1/2009 Total Salary Salary $70,930 Benefits $31,329 Total Cost $102,259 Explanation for adding/reclassing position(s). Include description of position,responsibilities and impact on office staff. The Civil Engineer III position is needed to comply with the National Pollutant Discharge Elimination System Phase II Municipal Stormwater permit requirements relating to illicit discharge and detection program and private facility inspection program. The permit requires the City to identifying and eliminating illicit discharges to the City-owned storm systems. This includes researching and investigating identified illicit discharges,developing and implementing ordinances related to prohibiting illicit discharges,assessing and prioritizing receiving waters that need protection. The permit also requires the implementation of a program to inspect and enforce maintenance of private storm systems to ensure they are maintained and operated to established standards. This includes working with facilities owners to inspect the facilities,developing ordinances to establish maintenance standards and authority for inspection and enforcement of maintenance by the facility owner. This position would need to be filled in 2009. Section B: New Equipment/Vehicle (Complete a separate form for each equipment) Type of Equipment Workstation Estimated life Total Cost $6,000 "rrr ` Brief Explanation for need of Equipment This position will need a workstation and an engineering level computer. Lection C: Other Costs NINO H:\File Sys\SWA-Surface Water Section Administration\SWA 01-Financial&Budget\2008 Budget\New Program Request\NPDES Phase II Municipal Stormwater Permit Compliance3.doc CITY OF RENTON COUNCIL AGENDA BILL AI#: geg. kkie Submitting Data: For Agenda of: August 20, 2007 Dept/Div/Board.. PBPW/Utility Systems Staff Contact Lys Hornsby(ext. 7239) Agenda Status Consent X Subject: Public Hearing.. 2008 Piped Utility Rate Proposal and System Correspondence.. Development Charges Ordinance Resolution Old Business Exhibits: New Business Issue Paper Study Sessions Information Recommended Action: Approvals: Refer to Utilities Committee Legal Dept Finance Dept X Other Fiscal Impact: N/A iitipe Expenditure Required... Transfer/Amendment Amount Budgeted Revenue SDC $550,000; Water$550,000; Generated Wastewater$280,000; Surface Water$200,000 Total Project Budget City Share Total Project.. SUMMARY OF ACTION: In 2006, the Utility Systems Division completed a comprehensive rate study. The results of this study indicated that to maintain infrastructure and quality service, it is necessary to increase revenue for 2008 in each of the three piped utilities—water,wastewater and surface water. In addition,to keep rates lower, the rate consultant recommended an increase in the System Development Charges so that development pays a fair share of impact to the utility infrastructure. STAFF RECOMMENDATION: Approve the proposed 2008 revenue increases for the three piped utilities as follows: 6 percent for water, 6 percent for wastewater and 6.5 percent for surface water, and the proposed 2008 System Development Charges. In addition, approve preparation of an ordinance to increase these rates and charges to be processed with the budget ordinance. H:\File Sys\USA-Utility Systems Division Administration\USA-03-CORRESPONDENCE\USA-03-0001 Utility Director's Conespondence\2008 Rates Agenda Bill.doc\LHHtp OZ`S O� PLANNING/BUILDING/ a, ♦ PUBLIC WORKS DEPARTMENT �•NrVO'� MEMORANDUM DATE: August 9, 2007 TO: Toni Nelson, Council President Members of the Renton City Council VIA: JKathy Keolker, Mayor FROM: Gregg Zimmerman, Administrator 6 Z STAFF CONTACT: Lys Hornsby, Utility Systems Director(ext. 7239) SUBJECT: 2008 Piped Utility Rates and System Development Charges ISSUE: Should Council approve the proposed 2008 revenue increases for the three piped utilities as follows: 6 percent for water, 6 percent for wastewater and 6.5 percent for surface water, and the proposed 2008 System Development Charges increases? ow RECOMMENDATION: Approve the proposed 2008 revenue increases of 6 percent for water, 6 percent for wastewater, and 6.5 percent for surface water and approve the proposed 2008 System Development Charges. Approve preparation of an ordinance allowing the City to charge the 2008 rates and System Development Charges to be processed with the budget ordinance. BACKGROUND SUMMARY: In 2006, the City hired a consultant to conduct a comprehensive rate study. As part of this study, the consultant developed a new rate model and provided recommendations for annual revenue increases and System Development Charges (SDCs). Each year, we use the rate model to determine the revenue requirements for each of the three piped utilities including estimated revenue from the system development charges. System Development Charges: Using recommendations from the rate study, Utility Systems would like to implement the proposed SDCs. Setting appropriate SDCs allow the utilities to charge a fair share to new projects to cover its impact to the utility system. The proposed SDCs are summarized in Table 1 - System Development Charges. Historically, Renton's SDCs have been lower than surrounding jurisdictions due to our Nifty use of the area based assessment method. The past methodology used to calculate the Council/2008 Rates August 9,2007 Page 2 of 2 SDCs was less accurate in collecting charges based on the impact on the utility as closely ` 411 as the actual commodity use does. The industry standard and recommended method utilizes meter size for water and wastewater, and equivalent residential unit (ERU) for surface water. This method will more accurately reflect the impact of a project on the utility. If the new SDCs are implemented, Renton's charges will still be one of the lowest in the region. With additional revenue from SDCs, rate increases can also be reduced. If Council approves the proposed SDCs, water rate increases can be reduced by 1 percent, wastewater by 2 percent, and surface water by 6.5 percent. Rates: Using the new rate model, staff determined the revenue requirements for 2008. A summary of the proposed revenue requirements is shown in Table 2 - 2008 Utility Rate Proposal Summary. The primary factors that are driving the need for a revenue increase include covering new debt, increases in labor and benefits, and increases in electricity. In addition to covering increased costs, the utilities are requesting the addition of two maintenance workers(water and wastewater). Also, new regulations require that the water utility significantly increase its conservation and efficiency program. We are requesting that Council approve continuation of the WashWise Rebate Program that we started this year. The recommended rate proposal includes the two new maintenance workers, the WashWise Rebate Program, and additional revenue from SDCs. The needed revenue increase is $1.92 or 6 percent for water, $0.88 or 6 percent for wastewater and $0.37 or 6.5 percent for surface water. CONCLUSION: Implementing recommended new charges and rates will allow the utilities to maintain infrastructure and quality utility service while meeting regulatory requirements and financial policies. Attachments cc: Nenita Ching,PBPW Financial and Admin Analyst Nod H:\File Sys\USA-Utility Systems Division Administration\USA-03 -CORRESPONDENCE\USA-03 - 0001 Utility Director's Correspondence\2008 Rates Issue Paper.doc\LHHtp ' Table 1 : System Development Charges Water Meter Additional Meter Size Capacity Existing Proposed Fire SDC Ratio SDC [a] SDC [b] 5/8 x 3/4-inch 1.00 $ 1,956 $ 2,236 $ 292 1-inch 2.50 n/a 5,589 729 1 1/2-inch 5.00 n/a 11,179 1,458 2-inch 8.00 n/a 17,886 2,332 3-inch 16.00 n/a 35,771 4,665 4-inch 25.00 n/a 55,893 7,288 6-inch 50.00 n/a 111,786 14,577 8-inch 80.00 n/a 178,857 23,323 [a] Per dwelling unit for single family and multi family residential customers and gross square footage for all other customers. [b] Based on the fire allocation of existing plant-in-service. Wastewater Nifty Meter Existing Proposed Meter Size Capacity SDC [a] SDC Ratio 5/8 x 3/4-inch 1.00 $ 1,017 $ 1,591 1-inch 2.50 n/a 3,977 1 1/2-inch 5.00 n/a 7,954 2-inch 8.00 n/a 12,726 3-inch 16.00 n/a 25,452 4-inch 25.00 n/a 39,768 6-inch 50.00 n/a 79,537 8-inch 80.00 n/a 127,258 [a] Per dwelling unit for single family and multi family residential customers and gross square footage for all other customers. Surface Water Total Charge Per ERU $1,012 *Maximum Allowable SDC per ERU H:USA\03-Correspondence\03-001-Director\2008 Rates SDC Table 1 Table 2 2008 Utility Rate Proposal Summary '""d • Implement new System Development Charges. • Approve new Maintenance Worker III for water and wastewater, WashWise Rebate Program and NPDES Compliance Program. • Implement revenue increase as follows: Utility % Revenue Increase Average Monthly Bill Increase, $ Water 6.0% $1.92 Wastewater 6.0% $0.88 Surface Water 6.5% (35% with NPDES) $0.37 ($2.00 with NPDES) TOTAL $3.17 ($4.80 with NPDES) Even with an increase of$4.80, Renton will continue to have some of the lowest utility rates in the region. Of the 12 surrounding jurisdictions, only two (Tukwila and Kent) have utility rates lower than Renton's and they are only slightly lower. Water Proposed Revenue Increase (no new programs included)* 2008 6% $1.92 2009 6% $2.04 *System Development Charges: If SDCs are increased, reduces revenue requirement by approximately 1 percent, resulting in a base revenue requirement of$1.60 or 5%. Main Drivers of Rate Increase: New debt. Increase in labor and benefits. Increase in electricity costs. Funding from rates. Increase in IS cost allocation. Rate Impact— Significant New Program Requests • Maintenance Worker III ($49,100): increase of 0.6 percent or $0.18 • WashWise Rebate Program ($45,000): increase of 0.5 percent or $0.16 '41400,- WATER SUMMARY 2008 Recommended Rate Proposal: • Implement new System Development Charges. • Add Maintenance Worker III, WashWise Rebate program. • Recommended 2008 revenue increase of$1.92 or 6.0 percent. err H:\File Sys\USA-Utility Systems Division Administration\USA-03-CORRESPONDENCE\USA-03-0001 Utility Director's Correspondence\2008 Rate Summary Review.doc\LHHtp Wastewater Proposed Revenue Increase (no new programs included)* 2008 7% $1.03 2009 7% $1.10 *System Development Charges: If SDCs are increased, reduces revenue requirement by approximately 2 percent, resulting in a base revenue requirement of$0.74 or 5 percent. Main Drivers of Rate Increase: New debt. Funding from rates. Increase in labor and benefits. Increase IS cost allocation. Rate Impact— Significant New Program Requests • Maintenance Worker III ($49,100): increase of 1.1 percent or $0.16 WASTEWATER SUMMARY 2008 Recommended Rate Proposal: • Implement new System Development Charges. • Add Maintenance Worker III. • Recommended 2008 revenue increase of$0.88 or .6.0 percent. II:\Pile Sys\USA-Utility Systems Division Administration\USA-03-CORRESPONDENCE\USA-03-0001 Utility Director's Correspondence\2008 Rate Summary Review.doc\LI-IHtp Surface Water Proposed Revenue Increase (no new programs included)* 2008 13% $0.74 2009 13% $0.84 *System Development Charges: If SDCs are increased, reduces revenue requirement by approximately 6.5 percent, resulting in a base revenue requirement of$0.37 or 6.5 percent. Main Drivers of Rate Increase: Funding from rates. New debt. Increase in labor and benefits. Rate Impact— Significant New Program Requests • NPDES Permit Compliance program: increase of 28.5 percent or $1.63 to a total of 35 percent or$2.00 SURFACE WATER SUMMARY 2008 Recommended Rate Proposal: • Implement new System Development Charges. • Add NPDES Permit Compliance program. • Recommended 2008 revenue increase of$2.00 or 35 percent. H:\File Sys\USA-Utility Systems Division Administration\USA-03-CORRESPONDENCE\USA-03-0001 Utility Director's Correspondence\2008 Rate Summary Review.doc\LHHtp CITY OF RENTON COUNCIL AGENDA BILL I AI#: 9. 0 . Submitting Data: For Agenda of: August 20, 2007 Dept/Div/Board: Community Services/Facilities Staff Contact: Peter Renner,Facilities Director Agenda Status Ext. 6605 Consent X Subject: Public Hearing. Lease Agreement with Sound Publishing Inc. for space Correspondence. on the ground floor of the 200 Mill Building. Ordinance Resolution Old Business Exhibits: New Business Issue Paper Study Sessions Lease Information Recommended Action: Approvals: Refer to Legal Dept x.... 0,0 01.6it 0171WAJ Finance Dept.x... Other Fiscal Impact: Expenditure Required... $2,367.75 Transfer/Amendment kkiiiiAmount Budgeted Revenue Generated $47,354.96 over the three-year lease term. Total Project Budget City Share Total Project SUMMARY OF ACTION: There is a small isolated area on the ground floor of the 200 Mill Building that is not occupied by King County Sexual Assault Resource Center(KCSARC). KCSARC has the right of first refusal for the space,but chose not to exercise it. The business terms of the proposed Lease have been favorably reviewed by our real estate team and by City staff. Business terms include a brokerage fee of 5%to the property manager. The small amount of tenant improvement costs are being borne by the tenant,but a 11/2-month rental abatement is provided to assist with moving expenses. STAFF RECOMMENDATION: Approve the Lease with Sound Publishing Inc. for space on the ground floor of the 200 Mill Building and authorize the Mayor and City Clerk to sign the Lease. iiirroi H:\Peter Remier\Peter Renner 2007\AgBillSoundPub.doc 8/7/2007 4:22:52 PM (Y � C. COMMUNITY SERVICES DEPARTMENT ♦ .. u � M E M O R A N D U M N� DATE: August 6, 2007 TO: Toni Nelson, Council President Members of the Renton City Council VIA: . Kathy Keolker, Mayor rioFROM: Terry Higashiyama, Community Services Administrator 4 STAFF CONTACT: Peter Renner, Facilities Director, Ext. #660 F( SUBJECT: Lease with Sound Publishing Inc. Issue: Should the Council authorize the Mayor and the City Clerk to sign a Lease with Sound Publishing Inc., for space on the ground floor of the 200 Mill Building? Recommendation: Council authorize the Mayor and City Clerk to sign the Lease. Nil., Background: • Most of the ground floor is occupied by King County Sexual Assault Resource Center(KCSARC). However, an isolated space exists at the rear of their leasehold that is ill-suited for any of their expressed expansion needs. KCSARC's lease expires in 2010. The space is not useful for KCSARC expansion and they waived their right of first refusal. • Sound Publising Inc. expressed an interest in leasing this space as it suits their needs, is centrally located, and has reasonable rents. • The lease includes the following business points: o The Lease is a three-year contract. o There is no early termination provision, nor is there a renewal option. o The lease provides 1 %2 months rent abatement at the inception, to help offset moving costs. o There is no tenant improvement allowance. Any tenant improvements will be paid by the leasee. o The lease rate for the 1,100 square feet starts at $14.18 for the year and grows to $15.30 per foot for the final year of the contract. o There is no secondary broker involved in this transaction. Brokerage fees due to GVA Kidder Matthews would total $2,357.75. o Revenue generated over the term of the lease would total $47,354.96. City of Renton Memorandum Lease with Sound Publishing August 6,2007 Page 2 of 2 Conclusion: This lease provides the City with additional revenue and does not counteract the City's potential need to regain space for its own employees. cc: Jay Covington,Chief Administrative Officer Michael Bailey,Finance&IS Administrator Larry Warren,City Attorney H:\Peter Renner\Peter Renner 2007\InfoPaperSoundPub.doc 8/7/2007 4:24:20 PM GVA KIDDER MATHEWS 601 UNION STREET OFFICE LEASE-GROSS Ntaire— SUITE 4720 SEATTLE,WA 98101 200 MILL AVENUE BUILDING TEL 398-2271 FAX 398-2290 This Lease is made this 5th day of July,2007 by and between The City of Renton,Washington,a Washington municipal corporation ("Landlord"), and Sound Publishing Inc., a Washington corporation("Tenant"),who agree as follows: 1. Fundamental Terms.As used in this Lease,the following capitalized terms shall have the following meanings: (a) "Land"means the land on which the Building is located,situated in the City of Renton,County of King,State of Washington,which is described on Exhibit A. (b) "Building"means the building in which the Premises are located,commonly known as the 200 Mill Avenue Building, the street address of which is 200 Mill Avenue South, Renton, Washington 98055- 3232. (c) "Premises"means that certain space crosshatched on Exhibit B, located on the ground floor of the Building and designated as Suite 70. (d) "Agreed Areas" means the agreed amount of rentable square feet of space in the Building and the Premises. Landlord and Tenant stipulate and agree for all purposes under this Lease that the Building contains approximately 49,480 rentable square feet of space (the "Building Area") and that the Premises contain approximately 1,100 rentable square feet of space (the"Premises Area"). The parties agree that the Premises will be remeasured by Landlord's architect to accurately determine the number of rentable square feet of space in the Premises,which determination shall be made in accordance with the Building Owners and Managers Association International ("BOMA") standards, namely the "Standard Method for Measuring Floor Area in Office Buildings–American National Standard,"ANSI Z65.1-1996. Promptly after Landlord's architect makes such determination,this Lease shall be amended to accurately reflect the number of rentable square feet of space in the Building and the Premises as so determined. In addition,the Minimum Monthly Rent, and Tenant's Share, shall be proportionately adjusted based on the actual number of rentable square feet of space in the Premises as so determined. Landlord and Tenant further agree that the Building Area may exclude portions of the Building which are used for other than office purposes,such as areas used for retail purposes. (e) "Tenant's Share" means the Premises Area divided by the Building Area, expressed as a percentage, which is two point 22/100ths percent(2.22%). Notwithstanding the foregoing, if one or more of the facilities, services and utilities the costs of which are included within the definition of Operating Costs is not furnished to one or more spaces or to particular types of spaces,then in connection with the calculation of Tenant's Share of each of such costs the Building Area shall be reduced by the number of rentable square feet contained in such space and Tenant's Share shall be separately computed as to each of such costs. If the Building shall contain non-office uses during any period, Landlord shall have the right to determine,in accordance with sound accounting and management principles,Tenant's Share of Real Property Taxes and Operating Costs for only the office portion of the Building;in such event,Tenant's Share shall be based on the ratio of the rentable area of the Premises to the rentable area of such office portion for such period. If a portion of the Building is damaged or condemned, or any other event occurs which alters the number of rentable square feet of space in the Premises or the Building,then Landlord shall adjust Tenant's Share to equal the number of rentable square feet of space then existing in the Premises(as altered by such event)divided by the number of rentable square feet of space then existing in the Building(as altered by such event). (f) "Commencement Date" means August 15, 2007, or such earlier or later date as provided in Section 4 hereof. (g) "Expiration Date"means August 31,2010. (h) "Term" means the period of time commencing on the Commencement Date and ending on the Expiration Date,unless sooner terminated pursuant to this Lease. (i) "Minimum Monthly Rent"means the following amounts as to the following periods during the Term of this Lease: Period Monthly Amount August 15,2007 to September 30,2007 $ 0.00 per month October 1,2007 to August 31,2008 $1,300.00 per month Sept.1,2008 to August 31,2007 $1,352.08 per month Sept.1,2009 to August 31,2010 $1,402.50 per month 1 (j) "Permitted Use" means use for purposes of general business offices for offices and publication services. (k) "Base Year"means the calendar year 2007. ‘411010 (I) "Prepaid Rent"means One Thousand Three Hundred and 00/100 Dollars($1,300.00). (m) "Security Deposit"means One Thousand Four Hundred Two and 50/100 Dollars($1,402.50). (n) "Landlord's Address for Notice" means 200 Mill Avenue Building, do GVA Kidder Mathews, 601 Union Street,Suite 4720,Seattle,WA 98101. (o) "Landlord's Address for Payment of Rent"means 200 Mill Avenue Building, c/o GVA Kidder Mathews,P.O.Box 34860,Seattle,WA 98124-1860. (p) "Tenant's Address for Notice"means Sound Publications,Inc.,200 Mill Avenue Building,Suite 70,Renton,WA 98055-3232 on and after the Commencement Date. (q) "Landlord's Agent"means GVA Kidder Mathews or such other agent as Landlord may appoint from time to time. (r) "Broker(s)"means GVA Kidder Mathews representing the Landlord. (s) "Exhibits"means the following Exhibits to this Lease: Exhibit A-Legal Description of the Property Exhibit B-Outline Drawing of the Premises Exhibit C-Work Letter Exhibit D-Rules and Regulations (t) "Rider"means the following Rider which is attached hereto:N/A. (u) "Definitions"means the words and phrases defined in Section 41 captioned"Definitions". 2. Consent and Notices. Whenever the consent of either Landlord or Tenant is required under this Lease, such consent shall not be effective unless given in writing and shall not be unreasonably withheld or delayed, provided, however, that such consent may be conditioned as provided in this Lease. All notices or requests required or permitted under this Lease shall be in writing as provided in Section 42(g). 3. Premises and Appurtenances. Landlord leases to Tenant and Tenant leases from Landlord the Premises for the Term.Tenant,and its authorized representatives,shall have the right to use,in common with others and subject to the Rules and Regulations,the Common Areas of the Building. Landlord shall have the right, in Landlord's sole discretion,from time to time to(i)make changes to the Building interior and exterior and Common Areas,including without limitation,changes in the location,size,shape,number and appearance thereof, (ii)to close temporarily any of the Common Areas for maintenance purposes so long as reasonable access to the Premises remains available, and (iii)to use the Common Areas while engaged in making additional improvements, repairs or alterations to the Building.All of the windows and exterior walls of the Premises and any space in the Premises used for shafts, stacks, pipes, conduits, ducts, electrical equipment or other utilities or Building facilities are reserved solely to Landlord and Landlord shall have rights of access through the Premises for the purpose of operating, maintaining and repairing the same,provided,however,that such changes shall not materially affect Tenant's access to,or use and occupancy of,the Premises. 4. Term. (a) Commencement Date.The Term shall commence on the Commencement Date and expire on the Expiration Date,unless sooner terminated pursuant to this Lease.The Commencement Date shall be: (i) The date specified in Section 1, unless notice is delivered pursuant to Subsection 4(a)(ii),in which case the Commencement Date shall be such later date,or Tenant occupies the Premises earlier pursuant to Subsection 4(a)(iii),in which case the Commencement Date shall be such earlier date; (ii) Such later date on which the Tenant Improvements to be made to the Premises by Landlord, if any, are substantially complete, provided, however, that Landlord shall give notice of substantial completion to Tenant at least five(5)days before such date. (iii) If Tenant shall occupy the Premises for the Permitted Use prior to the Commencement Date specified in Section 1 or the date specified in the notice provided for pursuant to Subsection 4(a)(ii), then the date of such early occupancy. (b) Tenant Obligations. If the Tenant Improvements, if any, are not substantially completed on the Commencement Date specified in Section 1 primarily due to Tenant's failure to promptly review and approve the plans and specifications for the Tenant Improvements or change orders with respect to the Tenant Improvements or to Tenant's failure to fulfill any other obligation under this Lease,then the Term *4111110* shall be deemed to have commenced on the Commencement Date specified in Section 1. 2 (c) Tenant Termination Rights. If Landlord is unable to deliver possession of the Premises with the Tenant Improvements, if any, substantially completed to Tenant on the Commencement Date as a result of causes beyond its reasonable control, Landlord shall not be liable for any damage caused by Nisio' failing to deliver possession and this Lease shall not be void or voidable. Tenant shall not be liable for Rent until Landlord delivers possession of the Premises to Tenant. No delay in delivery of possession of the Premises to Tenant shall change the Expiration Date or operate to extend the Term. If Landlord does not deliver possession of the Premises to Tenant within six(6)months of the Commencement Date,then Tenant may elect to terminate this Lease by giving notice to Landlord within ten (10) days following the end of such six(6)month period. (d) Confirmation of Commencement Date. When the Commencement Date as provided in Subsection 4(a)(ii) or Subsection 4(a)(iii) has been established as an earlier or later date than the Commencement Date specified in Section 1,Landlord shall confirm the Commencement Date by notice to Tenant. 5. Minimum Monthly Rent;Late Charge. (a) Minimum Monthly Rent. Tenant shall pay to Landlord the Minimum Monthly Rent without deduction, offset, prior notice or demand, in advance on the first day of each month during the Term. Minimum Monthly Rent for any partial month shall be prorated at the rate of 1/30th of the Minimum Monthly Rent per day.Minimum Monthly Rent is exclusive of any sales,franchise, business or occupation or other tax based on rents (other than Landlord's general income taxes) and should such taxes apply during the Term,the Minimum Monthly Rent shall be increased by the amount of such taxes.All Rent shall be paid to Landlord at Landlord's Address for Payment of Rent or at such other address as Landlord may specify by notice to Tenant. (b) Late Charge. Tenant acknowledges that the late payment by Tenant of any Rent will cause Landlord to incur administrative, collection, processing and accounting costs and expenses not contemplated under this Lease, the exact amount of which are extremely difficult or impracticable to fix. Therefore, if any Rent is not received by Landlord from Tenant by the fifth (5th)calendar day after such Rent is due, Tenant shall immediately pay to Landlord a late charge equal to five percent (5%) of the amount of such Rent or Seventy-five and No/100th Dollars ($75.00), whichever is greater. Landlord and Tenant agree that this late charge represents a reasonable estimate of such costs and expenses and is fair compensation to Landlord for its loss caused by Tenant's nonpayment. Should Tenant pay said late charge but fail to pay contemporaneously therewith all unpaid amounts of Rent, Landlord's acceptance of this late charge shall not constitute a waiver of Tenant's default with respect to Tenant's nonpayment nor prevent Landlord from exercising all other rights and remedies available to Landlord under this Lease or under law. 6. Prepaid Rent and Security Deposit. As partial consideration for Landlord's execution of this Lease, on execution of this Lease, Tenant shall deposit with Landlord the Prepaid Rent, as monthly rent for the first full month of the Term for which Rent is payable, and the Security Deposit, as a Security Deposit for the performance by Tenant of the provisions of this Lease. If Tenant is in default, Landlord may use the Security Deposit,or any portion of it,to cure the default, including without limitation, paying for the cost of any work necessary to restore the Premises,the Tenant improvements and any alterations to good condition or to compensate Landlord for all damage sustained by Landlord resulting from Tenant's default. Tenant shall within five (5) days of demand pay to Landlord a sum equal to the portion of the Security Deposit expended or applied by Landlord as provided in this Section so as to maintain the Security Deposit in the sum initially deposited with Landlord. If Tenant is not in default as of the expiration or termination of the Term,including without limitation,in default in payment of the Rent for the last month of the Term, then Landlord shall return the Security Deposit, without interest, to Tenant within a reasonable period of time not to exceed thirty(30)days after the expiration or termination of the Term, provided, however,that Landlord may retain a portion of the Security Deposit for payment of increases in Real Property Taxes and Operating Costs the exact amount of which has not been determined as of the expiration or termination of the Term.Landlord's obligations with respect to the Security Deposit are those of a debtor and not a trustee. Landlord may commingle the Security Deposit with Landlord's general and other funds. 7. Real Property Taxes. (a) Payment of Tenant's Share of Increases in Real Property Taxes. Tenant shall pay to Landlord, as Additional Rent, monthly, in advance on the first day of each month during the Term, an amount equal to one-twelfth(1/12th)of Tenant's Share of all increases in Real Property Taxes that are or will be levied or assessed against the Property during each calendar year during the Term over and above the Real Property Taxes that are levied or assessed against the Property during the Base Year as reasonably estimated by Landlord.Such Additional Rent is exclusive of any sales,franchise,business or occupation or other tax based on rents and should such taxes apply during the Term,such Additional Rent shall be increased by the amount of such taxes. Within one hundred twenty(120)days after the end of each calendar year during the Term or within such longer period of time as may be reasonably necessary, Landlord shall furnish to Tenant a statement of the Real Property Taxes for the preceding calendar year and Tenant's Share of the increase in Real Property Taxes.If Tenant's Share of the increase in such Real Property Taxes for that calendar year over such Real Property Taxes for the Base Year exceeds the monthly payments made by Tenant, then Tenant shall pay Landlord the deficiency within thirty(30)days after receipt of the statement. If Tenant's payments made during that calendar year exceed Tenant's Arew Share of the increase in such Real Property Taxes for that calendar year over such Real Property Taxes for the Base Year, then, at Landlord's option, either Landlord shall pay Tenant the excess at the time Landlord furnishes the statement to Tenant, or Tenant shall be entitled to offset the excess against the 3 next installment(s)of Minimum Monthly Rent and Additional Rent, provided, however, that at the end of the Term Landlord shall pay Tenant the excess at the time Landlord furnishes the statement to Tenant. (b) General and Special Assessments. With respect to any general or special assessments ''ulOO which may be levied against or upon the Property,or which under the laws then in force may be evidenced by improvement or other bonds or may be paid in annual installments, only the amount of such annual installment,and interest due thereon,shall be included in the computation of Real Property Taxes. (c) Proration.Tenant's Share of Real Property Taxes shall be prorated on the basis of a 360-day year to account for any fractional portion of a tax year included in the Term at its commencement and expiration. (d) No Effect on Minimum Monthly Rent. Notwithstanding anything to the contrary in this Section, the Minimum Monthly Rent payable by Tenant shall in no event be less than the Minimum Monthly Rent specified in Section 1. (e) Leasehold Excise Tax. Notwithstanding anything to the contrary contained in this Section 7, Landlord and Tenant agree that Landlord is a municipal corporation under the State of Washington,and, as such, pays leasehold excise taxes based on rent in lieu of Real Property Taxes. For purposes of establishing a Base Year for taxes based on rent, Landlord and Tenant shall agree upon a tax assessment based on the valuation of the Property for the Base Year,and Tenant shall pay to Landlord as Additional Rent,monthly, in advance on the first day of each month during the Term,an amount equal to one-twelfth (1/12th) of Tenant's Share of all increases in the valuation of the Property over the agreed upon Base Year valuation that are or will be levied or assessed against the Property for each calendar year during the Term. 8. Personal Property Taxes. Tenant shall pay prior to delinquency all personal property taxes assessed against and levied upon trade fixtures,furnishings,equipment and all other personal property of Tenant contained in the Premises or elsewhere. If possible, Tenant shall cause such trade fixtures, furnishings, equipment and all other personal property of Tenant to be assessed and billed separately from the Property. 9. Operating Costs. (a) Payment of Tenant's Share of Increases in Operating Costs.Tenant shall pay to Landlord, as Additional Rent,monthly,in advance on the first day of each month during the Term,an amount equal to one-twelfth (1/12th)of Tenant's Share of the increase in the Operating Costs of the Property for each calendar year during the Term over the Operating Costs for the Base Year as reasonably estimated by Landlord.Landlord may,in accordance with sound accounting and management principles,both reasonably estimate,and finally determine,the Operating Costs for the Base Year and for each calendar year during the Term based on the Operating Costs that would have been incurred if the Building had been 95% occupied during the Base Year or each such calendar year, as the case may be, taking into account historical operating costs for the Building. Landlord may, in accordance with sound accounting and management principles, make any other appropriate changes to reflect adjustments to Operating Costs for prior years or for the then current calendar year.Such Additional Rent is exclusive of any sales,franchise, business or occupation or other tax based on rents and should such taxes apply during the Term, such Additional Rent shall be increased by the amount of such taxes. Within one hundred twenty (120) days after the end of each calendar year during the Term or within such longer period of time as may be reasonably necessary, Landlord shall furnish to Tenant a statement of the Operating Costs for the preceding calendar year and Tenant's Share of the increase in the Operating Costs. If Tenant's Share of the increase in the Operating Costs for that calendar year over the Operating Costs for the Base Year exceeds the monthly payments made by Tenant, then Tenant shall pay Landlord the deficiency within thirty (30) days after receipt of the statement. If Tenant's payments made during that calendar year exceed Tenant's Share of the increase in the Operating Costs for that calendar year over the Operating Costs for the Base Year, then, at Landlord's option, either Landlord shall pay Tenant the excess at the time Landlord furnishes the statement to Tenant, or Tenant shall be entitled to offset the excess against the next installment(s)of Minimum Monthly Rent and Additional Rent, provided, however,that at the end of the Term Landlord shall pay Tenant the excess at the time Landlord furnishes the statement to Tenant. (b) Proration. Tenant's Share of Operating Costs shall be prorated on the basis of a 360-day year to account for any fractional portion of a year included in the Term at its commencement and expiration. (c) No Effect on Minimum Monthly Rent. Notwithstanding anything to the contrary in this Section, the Minimum Monthly Rent payable by Tenant shall in no event be less than the Minimum Monthly Rent specified in Section 1. 10. Use. Tenant shall use the Premises for the Permitted Use and for no other use without Landlord's prior consent. Tenant agrees that it has determined to its satisfaction that the Premises can be used for the Permitted Use.Tenant waives any right to terminate this Lease if the Premises cannot be used for the Permitted Use during the Term unless the prohibition on use is the result of actions taken by Landlord. Tenant's use of the Premises shall be in accordance with the following: (a) Insurance. Tenant shall not do, bring, or keep anything in or about the Premises or the Property that will cause a cancellation of any insurance covering the Property.If the rate of any insurance carried by Landlord on the Property as published by the Washington Survey and Rating Bureau, or any successor rating bureau or agency, is increased as a result of Tenant's use, then Tenant shall pay to 4 Landlord not less than ten (10) days before the date Landlord is obligated to pay a premium on the insurance,a sum equal to the difference between the original premium and the increased premium. °'rr+ (b) Compliance with Laws. Tenant shall comply with all laws concerning the Premises and Tenant's use of the Premises. (c) Waste, Nuisance and Improper Use.Tenant shall not use the Premises in any manner that will constitute waste, nuisance or unreasonable annoyance to other tenants in the Building, including without limitation, (i) the use of loudspeakers or sound or light apparatus that can be heard or seen outside the Premises, (ii)for cooking or other activities that cause odors that can be detected outside the Premises,or(iii)for lodging or sleeping rooms. (d) Damage to Property. Tenant shall not do anything in, on or about the Premises that will cause damage to the Property. (e) Rules and Regulations. Tenant and its authorized representatives shall comply with the Rules and Regulations set forth on Exhibit D attached hereto. Landlord shall have the right to reasonably amend the Rules and Regulations from time to time. In the event of a conflict between this Lease and the Rules and Regulations,as amended,this Lease shall control.Landlord shall have the right to enforce the Rules and Regulations. Landlord shall have no liability or responsibility whatsoever with respect to the noncompliance by other tenants or their authorized representatives with any of such Rules and Regulations. 11. Hazardous Substances. Tenant shall not dispose of or otherwise allow the release of any Hazardous Substances in, on or under the Premises, or the Property, or in any tenant improvements or alterations placed on the Premises by Tenant.Tenant represents and warrants to Landlord that Tenant's intended use of the Premises does not involve the use, production, disposal or bringing on to the Premises of any Hazardous Substances, except for products normally used in general business offices which constitute Hazardous Substances,provided that such products are used,stored and disposed of in accordance with applicable laws and manufacturer's and supplier's guidelines. Tenant shall promptly comply with all laws and with all orders, decrees or judgments of governmental authorities or courts having jurisdiction,relating to the use,collection,treatment,disposal,storage,control,removal or cleanup of Hazardous Substances, on or under the Premises or the Property, or incorporated in any tenant improvements or alterations,at Tenant's expense. (a) Compliance; Notification.After notice to Tenant and a reasonable opportunity for Tenant to effect such compliance, Landlord may, but is not obligated to, enter upon the Premises and take such actions and incur such costs and expenses to effect such compliance as it deems advisable to protect its interest in the Premises and the Property, provided, however that Landlord shall not be obligated to give Tenant notice and an opportunity to effect such compliance if (i) such delay might result in material adverse harm to the Premises, or the Property, or (ii) an emergency exists. Tenant shall reimburse Landlord for the full amount of all costs and expenses incurred by Landlord in connection with such compliance activities,and such obligation shall continue even after expiration or termination of the Term. Tenant shall notify Landlord immediately of any release of any Hazardous Substances on the Premises or the Property. (b) Indemnity by Tenant.Tenant agrees to hold Landlord harmless from and against any and all damages, charges, cleanup costs, remedial actions, costs and expenses, which may be imposed on, incurred or paid by, or asserted against Landlord, the Premises or the Property by reason of, or in connection with(1)any misrepresentation,breach of warranty or other default by Tenant under this Lease, or(2)the acts or omissions of Tenant,its authorized representatives,or any subtenant or other person for whom Tenant would otherwise be liable, resulting in the release of any Hazardous Substances on the Premises or the Property. (c) Indemnity by Landlord.Landlord agrees to hold Tenant harmless from and against any and all damages, charges,cleanup costs, remedial actions,costs and expenses,which may be imposed on, incurred or paid by, or asserted against Tenant, the Premises or the Property by reason of, or in connection with the acts or omissions of Landlord, or its employees, resulting in the release of any Hazardous Substances on the Premises or the Property. (d) Acknowledgment as to Hazardous Substances. Tenant acknowledges that the Premises may contain Hazardous Substances, and Tenant accepts the Premises and the Building notwithstanding such Hazardous Substances. If Landlord is required by any law to take any action to remove or abate any Hazardous Substances, or if Landlord deems it necessary to conduct special maintenance or testing procedures with regard to any Hazardous Substances,or to remove or abate any Hazardous Substances, Landlord may take such action or conduct such procedures at times and in a manner that Landlord deems appropriate under the circumstances,and Tenant shall permit the same. (e) Survival. The provisions of this Section shall survive the expiration or sooner termination of the Term. No subsequent modification or termination of this Lease by agreement of the parties or otherwise shall be construed to waive or to modify any provisions of this Section unless the termination or modification agreement or other document expressly so states in writing. 12. Landlord's Maintenance;Inclusion in Operating Costs. (a) Landlord's Maintenance. Except as provided in Section 13 captioned "Tenant's Maintenance; Remedies", Section 23 captioned"Destruction"and Section 24 captioned"Condemnation" and except for damage caused by any negligent or intentional act or omission of Tenant or its authorized 5 representatives, Landlord shall maintain in good condition and repair the following: (i)the structural parts of the Building, which structural parts include only the foundations, bearing and exterior walls, exterior glass,glass entrance doors(excluding interior glass and interior glass doors),subflooring and roof,(ii)the building standard lighting fixtures, window coverings and ceiling tiles and the unexposed electrical, *4410 plumbing and sewage systems,including without limitation,those portions lying outside the Premises, (iii) the heating, ventilating and air-conditioning system, if any, servicing the Building, (iv) the lobbies, corridors, elevators, public or common restrooms and other common areas of the Building, and (v)the sidewalks, grounds, landscaping, parking and loading areas, if any, and other common areas of the Property. (b) Inclusion in Operating Costs.The cost of maintaining, repairing, replacing or servicing the portions of the Building that Landlord is required to maintain pursuant to this Section shall be included in Operating Costs to the extent provided in Section 9 captioned"Operating Costs". 13. Tenant's Maintenance;Remedies. (a) Tenant's Maintenance. Except as provided in Section 12 captioned "Landlord's Maintenance; Inclusion in Operating Costs",Section 23 captioned"Destruction"and Section 24 captioned "Condemnation"and except for damage caused by any grossly negligent or intentional act or omission of Landlord or its authorized representatives,Tenant,at its cost, shall maintain in good condition and repair the Premises, including without limitation, all of the Tenant Improvements,Tenant's alterations, Tenant's trade fixtures, Tenant's personal property, signs, walls, interior partitions, wall coverings, windows, non- building standard window coverings, glass within the Premises, doors, carpeting and resilient flooring, non-building standard ceiling ties, plumbing fixtures and non-building standard lighting fixtures. Tenant shall be liable for any damage to the Premises and the Building resulting from the acts or omissions of Tenant or its authorized representatives. (b) Landlord's Remedies. If Tenant fails to maintain the Premises in good condition and repair as required by Subsection 13(a)and if such failure is not cured within thirty(30)days after notice of such failure is given by Landlord to Tenant, then Landlord may, at its option, cause the Premises to be maintained in good condition and repair and Tenant shall promptly reimburse Landlord for all reasonable costs incurred by Landlord in performance of Tenant's obligation to maintain the Premises. 14. Tenant Improvements;Alterations and Trade Fixtures. (a) Tenant Improvements. Tenant accepts the Premises in their "AS IS"condition without any agreements, representations, understandings or obligations on the part of Landlord to perform any alterations,repairs or improvements or to provide any allowances unless otherwise expressly provided in this Lease or in the Work Letter attached hereto as Exhibit C. Tenant shall not make any improvements or alterations to the Premises without Landlord's prior consent. (b) Alterations. Any improvements and alterations made by either party shall remain on and be surrendered with the Premises on expiration or termination of the Term,except that Landlord can elect by giving notice to Tenant within thirty(30) days before the expiration of the Term,or within thirty(30)days after termination of the Term,to require Tenant to remove any improvements and alterations that Tenant has made to the Premises. If Landlord so elects, Tenant, at its cost, shall restore the Premises to the condition designated by Landlord in its election, before the last day of the Term, or within thirty(30)days after notice of election is given,whichever is later.Any improvements and alterations that remain on the Premises on expiration or termination of the Term shall automatically become the property of Landlord and title to such improvements and alterations shall automatically pass to Landlord at such time without any payment therefor by Landlord to Tenant. If Tenant or its authorized representatives make any improvements or alterations to the Premises as provided in this Section, then such improvements and alterations (i) shall be made in a first class manner in conformity with then building standard improvements, (ii) shall be made utilizing then building standard materials, (iii) shall be made in compliance with the Rules and Regulations and the reasonable directions of Landlord,(iv)shall be made pursuant to a valid building permit to be obtained by Tenant, at its cost, and (v) shall be made in conformity with then applicable laws,including without limitation,building codes. (c) Trade Fixtures. Tenant shall not install any trade fixtures in or on the Premises without Landlord's prior consent. 15. Mechanics' Liens. Tenant shall pay, or cause to be paid, all costs of labor, services and/or materials supplied in connection with any Work. Tenant shall keep the Property free and clear of all mechanics' liens and other liens resulting from any Work. Prior to the commencement of any Work costing more than an amount equal to one(1)month's Minimum Monthly Rent,or the supply or furnishing of any labor, services and/or materials in connection with any such Work,Tenant shall provide Landlord with a labor and material payment bond, a letter of credit or other security satisfactory to Landlord in an amount equal to one hundred percent(100%)of the aggregate price of all contracts therefor,with release of the bond conditioned on Tenant's payment in full of all claims of lien claimants for such labor,services and/or materials supplied in the prosecution of the Work. Said payment bond shall name Landlord as a primary obligee, shall be given by a surety which is satisfactory to Landlord,and shall be in such form as Landlord shall approve in its sole discretion. Tenant shall have the right to contest the correctness or validity of any such lien if, immediately on demand by Landlord, it procures and records a lien release bond issued by a responsible corporate surety in an amount sufficient to satisfy statutory requirements therefor in the State of Washington. Tenant shall promptly pay or cause to be paid all sums awarded to the claimant on its suit, and, in any event, before any execution is issued with respect to any judgment obtained by the claimant in its suit or before such judgment becomes a lien on the Premises,whichever is earlier. If Tenant shall be in default under this Section, by failing to provide security for or satisfaction of 6 any mechanic's or other liens,then Landlord may(but shall not be obligated to), in addition to any other rights or remedies it may have,discharge said lien by(i)paying the claimant an amount sufficient to settle and discharge the claim,(ii)procuring and recording a lien release bond,or(iii)taking such other action as "'11re Landlord shall deem necessary or advisable,and,in any such event,Tenant shall pay as Additional Rent, on Landlord's demand, all reasonable costs (including reasonable attorney fees) incurred by Landlord in settling and discharging such lien together with interest thereon in accordance with Section 39 captioned "Interest on Unpaid Rent"from the date of Landlord's payment of said costs. Landlord's payment of such costs shall not waive any default of Tenant under this Section. 16. Utilities and Services. (a) Utilities and Services Furnished by Landlord.Landlord shall furnish the Premises with: (i) Electricity for lighting and power suitable for the use of the Premises for ordinary general office purposes;provided, however,that Tenant shall not at any time have a connected electrical load for lighting purposes in excess of the wattage per square foot of Premises Area required for building standard amounts of lighting, or a connected load for all other power requirements in excess of four(4) watts per square foot of Premises Area as determined by Landlord, and the electricity so provided for lighting and power shall not exceed such limits, subject to any lower limits set by any governmental authority with respect thereto; (ii) Subject to the reasonable limitations of the existing building systems, heating, ventilating and air-conditioning, if the Building has an air-conditioning system, to maintain a temperature range in the Premises which is customary for similar office space in the Seattle,Washington area(but in compliance with any applicable governmental regulations with respect thereto). Tenant agrees to keep closed,when necessary, blinds, draperies and windows which must be closed to provide for the efficient operation of the heating and air conditioning systems, if any, and Tenant agrees to cooperate with Landlord and to abide by the regulations and requirements which Landlord may prescribe for the proper functioning and protection of the heating,ventilating and air-conditioning system,if any.If Tenant requires heating, ventilating and air conditioning to the Premises other than during normal business hours from 7:30 A.M. to 6:00 P.M. daily, except Saturdays, Sundays and those legal holidays generally observed in the State of Washington, Landlord shall, upon Tenant's request made not less than 24 hours before the time Tenant requires the after hour service,and not later than Noon on the Friday before any Saturday or Sunday on which Tenant requires such service,and not later than Noon of the day before any holiday on which Tenant requires such service(except as otherwise provided in the Rules and Regulations),furnish such heating, ventilating and air conditioning. If Tenant receives such services, then Tenant shall pay, upon demand, an amount equal to Tenant's proportionate share of the actual direct cost to Landlord in providing the heating, ventilating and air conditioning outside of normal business hours which Landlord and Tenant agree will be$25.00 per hour at this time; (iii) Water for restroom and drinking purposes and access to restroom facilities; (iv) Elevator service for general office pedestrian usage if the Building is serviced by elevators; (v) Relamping of building-standard light fixtures; (vi) Washing of interior and exterior surfaces of exterior windows with reasonable frequency;and (vii) Janitorial service five(5)times per week,except holidays. (b) Payment for Excess Utilities and Services. All services and utilities for the Premises not required to be furnished by Landlord pursuant to Section 16(a) shall be paid for by Tenant. If Tenant requires, on a regular basis,water, heat, air conditioning, electric current, elevator or janitorial service in excess of that provided for in Section 16(a), then Tenant shall first obtain the consent of Landlord which consent may be withheld in Landlord's sole discretion. If Landlord consents to such excess use,Landlord may install an electric current or water meter(including,without limitation,any additional wiring,conduit or panel required therefor) to measure the excess electric current or water consumed by Tenant or may cause the excess usage to be measured by other reasonable methods(e.g.by temporary"check"meters or by survey). Tenant shall pay to Landlord upon demand (i) the cost of any and all water, heat, air conditioning, electric current,janitorial, elevator or other services or utilities required to be furnished to Tenant in excess of the services and utilities required to be furnished by Landlord as provided in Section 16(a); (ii)the cost of installation, maintenance and repair of any meter installed in the Premises; (iii)the cost of all electricity and water consumed by Tenant in connection with any dedicated heating,ventilating and/or air conditioning, computer power and/or air conditioning, telecommunications or other special systems of Tenant, including any power usage other than through existing standard 110-volt AC outlets; and (iv) any reasonable cost incurred by Landlord in keeping account of or determining such excess utilities or services furnished to Tenant. Landlord's failure to bill Tenant for any such excess utilities or services shall not waive Landlord's right to bill Tenant for the excess at a later time. (c) Temperature Balance. Landlord makes no representation to Tenant regarding the adequacy or fitness of the heating,ventilating and air-conditioning systems in the Building to maintain temperatures that may be required for, or because of, any of Tenant's equipment other than normal office equipment, *Nor such as personal computers, laser printers, copiers, dictating machines and other small equipment normally used in business offices, and Landlord shall have no liability for loss or damage suffered by Tenant or others in connection therewith. If the temperature otherwise maintained in any portion of the Premises by the heating, air conditioning or ventilation system is affected as a result of (i) any lights, 7 machines or equipment(including without limitation electronic data processing machines)used by Tenant in the Premises or the use of more than one personal computer per person, (ii) the occupancy of the Premises by more than one person per two hundred (200) square feet of rentable area therein, (iii) an -4116101 electrical load for lighting or power in excess of the limits per square foot of rentable area of the Premises specified in Section 16(a),or(iv)any rearrangement of partitioning or other improvements, Landlord may install any equipment, or modify any existing equipment (including the standard air conditioning equipment) Landlord deems necessary to restore the temperature balance. The cost of any such equipment, including without limitation, the cost of design and installation thereof, and the cost of operating,metering,maintaining or repairing the same,shall be paid by Tenant to Landlord upon demand. Tenant shall not install or operate window-mounted heating or air-conditioning units. (d) Special Electrical or Water Connections; Electricity Use.Tenant will not,without the prior consent of Landlord, which Landlord in its sole discretion may refuse, connect or use any apparatus or device in the Premises (i) using current in excess of 110 volts or (ii) which will cause the amount of electricity, water, heating, air conditioning or ventilation furnished to the Premises to exceed the amount required for use of the Premises for ordinary general office purposes, as determined by Landlord,during normal business hours or (iii) which would cause Tenant's connected load to exceed any limits established in Section 16(a).Tenant shall not connect with electric current except through existing outlets in the Premises and shall not connect with water pipes except through existing plumbing fixtures in the Premises. In no event shall Tenant's use of electricity exceed the capacity of existing feeders to the Building or the risers or wiring installation,and Landlord may prohibit the use of any electrical equipment which in Landlord's opinion will overload such wiring or interfere with the use thereof by other tenants in the Building. If Landlord consents to the use of equipment requiring such changes,Tenant shall pay the cost of installing any additional risers,panels or other facilities that may be necessary to furnish energy to the Premises. Landlord will not permit additional coring of the floor of the Premises in order to install new electric outlets in the Premises unless Tenant furnishes Landlord with X-ray scans of the floor area where the Tenant wishes to place additional electrical outlets and Landlord,in its absolute discretion,is satisfied,on the basis of such X-ray scans and other information obtained by Landlord,that coring of the floor in order to install such additional outlets will not weaken the structure of the floor. (e) Landlord's Duties. Landlord shall not be in default under this Lease or liable for any damages resulting from,or incidental to,any of the following,nor shall any of the following be an actual or constructive eviction of Tenant,nor shall the Rent be abated by reason of: (i)failure to furnish or delay in furnishing any of the services described in this Section when such failure or delay is caused by accident or any condition beyond the reasonable control of Landlord, including the making of necessary repairs or improvements to the Premises or to the Building, (ii)any electrical surges or spikes,or(iii)failure to make any repair or to perform any maintenance,unless such failure shall persist for an unreasonable time after notice of the need for such repair or maintenance is given to Landlord by Tenant. Landlord shall use reasonable efforts to remedy any interruption in the furnishing of such services. (f) Governmental Regulations. Any other provisions of this Section notwithstanding, if any governmental authority or utility supplier imposes any laws,controls,conditions,or other restrictions upon Landlord, Tenant, or the Building, relating to the use or conservation of energy or utilities, mandated changes in temperatures to be maintained in the Premises or the Building or the reduction of automobile or other emissions (collectively, the "Controls"), or in the event Landlord is required or elects to make alterations to the Building in order to comply with the Controls,Landlord may,in its sole discretion,comply and may require Tenant to comply with the Controls or make such alterations to the Building in order to comply with the Controls. Such compliance and the making of such alterations shall not constitute an actual or constructive eviction of Tenant,impose on Landlord any liability whatsoever,or entitle Tenant to any abatement of Rent. 17. Indemnity. (a) Generally. Tenant shall defend, indemnify,and hold harmless Landlord, its officers, officials, employees and volunteers from and against any and all claims, suits, actions, or liabilities for injury or death of any person,or loss of damage to property,which arises out of Tenant's use of the Premises,or from the conduct of Tenant's business,or from any activity,work or thing done,permitted,or suffered by Tenant in or about the Premises,except only such injury or damage as shall have been occasioned by the negligence of Landlord. Landlord shall defend, indemnify, and hold harmless Tenant, its officers, officials, and employees from and against any and all claims, suits, actions, or liabilities for injury or death of any person, or loss of damage to property, which arises out of any damage to any persons or property occurring in,on or about the Premises or the Property resulting from the acts or omissions of Landlord or its authorized representatives, excluding any injury, death, loss or damage which arises as a result of Tenant's negligence. A party's obligation under this Section to indemnify and hold the other party harmless shall be limited to the sum that exceeds the amount of insurance proceeds, if any, received by the party being indemnified. (b) Provisions Specifically Negotiated. LANDLORD AND TENANT ACKNOWLEDGE BY THEIR EXECUTION OF THIS LEASE THAT EACH OF THE INDEMNIFICATION PROVISIONS OF THIS `SII LEASE (SPECIFICALLY INCLUDING BUT NOT LIMITED TO THOSE RELATING TO WORKER'S COMPENSATION BENEFITS AND LAWS)WERE SPECIFICALLY NEGOTIATED AND AGREED TO BY LANDLORD AND TENANT. 8 18. Exemption of Landlord from Liability. Landlord and Landlord's Agent shall not be liable for injury to Tenant's business or loss of income therefrom or for damage which may be sustained by the person, mlrrr goods,wares,merchandise or property of Tenant,its authorized representatives,or any other person in or about the Premises,caused by or resulting from fire,steam,electricity,gas,water or rain,which may leak or flow from or into any part of the Premises,or from the breakage,leakage,obstruction or other defects of the pipes, sprinklers, wires, appliances, plumbing, air conditioning or lighting fixtures of the same, whether the said damage or injury resulting from conditions arising upon the Premises or upon other portions of the Building or the Property unless such injury or damage is caused by the gross negligence or willful misconduct of Landlord or its authorized representatives. 19. Commercial General Liability and Property Damage Insurance. Tenant, at its cost, shall maintain commercial general liability insurance(including contractual liability and products and completed operations liability)with liability limits of not less than$2,000,000 per occurrence,and$3,000,000 annual aggregate if the Premises contain less than 5,000 rentable square feet of space or $5,000,000 annual aggregate if the Premises contain 5,000 rentable square feet of space or more,insuring against all liability of Tenant and its authorized representatives arising out of or in connection with Tenant's use and occupancy of the Premises and property damage insurance with liability limits of not less than$1,000,000. All such commercial general liability and property damage insurance shall insure performance by Tenant of the indemnity provisions of Section 17 captioned "Indemnity". Landlord and Landlord's Agent shall be additional named insureds on such insurance policy. 20. Tenant's Fire Insurance. Tenant, at its cost, shall maintain on all of Tenant's Alterations, Trade Fixtures and Personal Property in,on or about the Premises,a policy of standard Alf Risk fire insurance,in an amount equal to at least their full replacement cost.The proceeds of any such policy shall be used by Tenant for the restoration of Tenant's Alterations and Trade Fixtures and the replacement of its Personal Property.Any portion of such proceeds not used for such restoration shall belong to Tenant. 21. Waiver of Claims; Waiver of Subrogation Landlord and Tenant release each other, and their respective authorized representatives, from, and waive their entire claim of recovery for, any claims for damage to the Premises and the Building and to Tenant's alterations,trade fixtures and personal property that are caused by or result from fire,lightning or any other perils normally included in an"all risk"property insurance policy whether or not such loss or damage is due to the negligence of Landlord, or its authorized representatives, or of Tenant, or its authorized representatives. Landlord and Tenant shall cause each insurance policy obtained by it to provide that the insurance company waives all right of recovery by way of subrogation against either party in connection with any damage covered by such insurance policy. 22. Other Insurance Matters.All insurance required to be carried by Tenant under this Lease shall: (i) be issued by insurance companies authorized to do business in the State of Washington with a rating of ANI or better as rated in the most recent edition of Best's Insurance Reports; (ii)be issued as a primary policy, and (iii)contain an endorsement requiring thirty(30)days'prior written notice from the insurance company to both parties,to Landlord's Agent, and, if requested by Landlord, to Landlord's lender, before cancellation or change in the coverage, scope,or amount of any policy. Each policy or a certificate of the policy,together with evidence of payment of premiums,shall be deposited with Landlord on or before the Commencement Date, and on renewal of the policy not less than ten (10)days before expiration of the term of the policy. 23. Destruction. (a) Insured Damage. If during the Term the Premises or the Building are partially or totally destroyed by any casualty that is covered by any insurance carried by Landlord covering the Building, rendering the Premises partially or totally inaccessible or unusable,Landlord shall restore the Premises or the Building to substantially the same condition as they were in immediately before such destruction,if(i) the insurance proceeds available to Landlord equal or exceed the cost of such restoration, (ii) in the opinion of a registered architect or engineer appointed by Landlord such restoration can be completed within one hundred eighty(180) days after the date on which Landlord obtains all permits necessary for such restoration, and (iii) such restoration is permitted under then existing laws to be done in such a manner as to return the Premises,or the Building,as the case may be,to substantially the same condition as they were in immediately before such destruction.To the extent that the insurance proceeds must be paid to a mortgagee under, or must be applied to reduce any debt secured by, a mortgage covering the Property,the insurance proceeds shall be deemed not to be available to Landlord unless such mortgagee permits Landlord to use the insurance proceeds for such restoration.Such destruction shall not terminate this Lease. (b) Major or Uninsured Damage.If during the Term the Premises or the Building are partially or totally destroyed by any casualty and Landlord is not obligated under Section 23(a) captioned "Insured Damage"to restore the Premises or the Building,as the case may be,then Landlord may,at its election, either (i) restore the Premises or the Building to substantially the same condition as they were in immediately before such destruction, or (ii) terminate this Lease effective as of the date of such destruction. If Landlord does not give Tenant notice within sixty (60) days after the date of such destruction of its election to restore the Premises or the Building,as the case may be, Landlord shall be deemed to have elected to terminate this Lease. If Landlord elects to restore the Premises or the Building, �1rr as the case may be, Landlord shall use commercially reasonable efforts to complete such restoration within one hundred eighty(180)days after the date on which Landlord obtains all permits necessary for such restoration,provided,however,that such one hundred eighty(180)day period shall be extended by a period equal to any delays caused by Force Majeure,and such destruction shall not terminate this Lease. If Landlord does not complete such restoration within one(1)year following the date of such destruction, 9 then Tenant may elect to terminate this Lease by giving notice to such effect to Landlord within ten (10) days following the end of such one(1)year period. (c) Damage to the Building.If during the Term the Building is partially destroyed by any casualty 111100 and if in the opinion of Landlord the Building should be restored in such a way as to materially alter the Premises, then Landlord may, at Landlord's election, terminate this Lease by giving notice to Tenant of Landlord's election to do so within sixty(60)days after the date of such destruction. (d) Extent of Landlord's Obligation to Restore. If Landlord is required or elects to restore the Premises as provided in this Section, Landlord shall not be required to restore alterations made by Tenant, Tenant's trade fixtures and Tenant's personal property, such excluded items being the sole responsibility of Tenant to restore. (e) Abatement or Reduction of Rent. In case of damage to,or destruction of, the Premises or the Building the Minimum Monthly Rent shall be abated or reduced, between the date of destruction and the date of completion of restoration,by an amount that is in the same ratio to the Minimum Monthly Rent as the total number of square feet of the Premises that are so damaged or destroyed bears to the total number of square feet in the Premises. 24. Condemnation. If during the Term there is any taking of part or all of the Premises or the Building by condemnation,then the rights and obligations of the parties shall be as follows: (a) Minor Taking. If there is a taking of less than ten percent(10%)of the Premises,this Lease shall remain in full force and effect. (b) Major Taking. If there is a taking of ten percent (10%) or more of the Premises and if the remaining portion of the Premises is of such size or configuration that Tenant in Tenant's reasonable judgment is unable to conduct its business in the Premises,then the Term shall terminate as of the date of taking. (c) Taking of Part of the Building. If there is a taking of a part of the Building other than the Premises and if in the opinion of Landlord the Building should be restored in such a way as to materially alter the Premises,then Landlord may terminate the Term by giving notice to such effect to Tenant within sixty(60) days after the date of vesting of title in the condemnor and the Term shall terminate as of the date specified in such notice, which date shall not be less than sixty(60) days after the giving of such notice. (d) Award.The entire award for the Premises,the Building and the Property,shall belong to and be paid to Landlord, Tenant hereby assigning to Landlord Tenant's interest therein, if any, provided, however,that Tenant shall have the right to claim and recover from the condemnor compensation for the loss of any alterations made by Tenant, Tenant's trade fixtures, Tenant's personal property, moving expenses and business interruption. (e) Abatement of Rent. If any part of the Premises is taken by condemnation and this Lease remains in full force and effect, on the date of taking the Minimum Monthly Rent shall be reduced by an amount that is in the same ratio to the Minimum Monthly Rent as the total number of square feet in the Premises taken bears to the total number of square feet in the Premises immediately before the date of taking. 25. Assignment and Subletting. (a) Landlord's Consent; Definitions. Tenant acknowledges that the Building is a multi-tenant office building, occupied by tenants specifically selected by Landlord, and that Landlord has a legitimate interest in the type and quality of such tenants,the location of tenants in the Building and in controlling the leasing of space in the Building so that Landlord can better meet the particular needs of its tenants and protect and enhance the relative image, position and value of the Building in the office building market. Tenant further acknowledges that the rental value of the Premises may fluctuate during the Term in accordance with market conditions, and, as a result, the Rent paid by Tenant under the Lease at any particular time may be higher or lower than the then market rental value of the Premises. Landlord and Tenant agree, and the provisions of this Section are intended to so provide, that, if Tenant voluntarily assigns its interest in this Lease or in the Premises or subleases any part or all of the Premises,a portion of the profits from any increase in the market rental value of the Premises shall belong to Landlord. Tenant acknowledges that, if Tenant voluntarily assigns this Lease or subleases any part or all of the Premises,Tenant's investment in the subject portion of the Premises(specifically including,but not limited to,tenant improvements,good will or other assets)may be lost or reduced as a result of such action. (b) Consent Required.Tenant shall not voluntarily assign or encumber its interest in this Lease or in the Premises, or sublease any part or all of the Premises, without Landlord's prior consent,which consent shall not be unreasonably withheld. Any assignment, encumbrance or sublease without Landlord's consent shall be voidable and,at Landlord's election,shall constitute a default by Tenant under this Lease. In determining whether to approve a proposed assignment or sublease, Landlord shall place primary emphasis on the proposed transferee's reputation and creditworthiness, the character of the business to be conducted by the proposed transferee at the Premises and the affect of such assignment or subletting on the tenant mix in the Building. In addition, Landlord shall have the right to approve the specific form of any assignment or sublease agreement. In no event shall Landlord be obligated to consent to any assignment or subletting which increases (i)the Operating Costs, (ii) the burden on the Building services,or(iii)the foot traffic,elevator usage or security concerns in the Building,or creates an increased probability of the comfort and/or safety of the Landlord and other tenants in the Building being 10 unreasonably compromised or reduced (for example, but not exclusively, Landlord may deny consent to an assignment or subletting where the space will be used for a school or training facility,an entertainment, sports or recreation facility, retail sales to the public (unless Tenant's permitted use is retail sales), a 'fire personnel or employment agency,a medical office,or an embassy or consulate or similar office).Landlord shall not be obligated to approve an assignment or subletting to(x)a current tenant of the Building or(y)a prospective tenant of the Building with whom Landlord is then negotiating.Landlord's foregoing rights and options shall continue throughout the entire term of this Lease. No consent to any assignment, encumbrance or sublease shall constitute a waiver of the provisions of this Section and no other or subsequent assignment, encumbrance or sublease shall be made without Landlord's prior consent. Neither an assignment or subletting nor the collection of Rent by Landlord from any person other than Tenant, nor the application of any such Rent as provided in this Section shall be deemed a waiver of any of the provisions of this Section or release Tenant from its obligation to comply with the terms and provisions of this Lease and Tenant shall remain fully and primarily liable for all of Tenant's obligations under this Lease, including the obligation to pay Rent under this Lease. Any personal guarantee(s) of Tenant's obligations under this Lease shall remain in full force and effect following any such assignment or subletting. In addition to Landlord's other rights under this Section,Landlord may condition approval of an assignment or subletting hereunder on an increase in the amount of the Security Deposit or on receipt of personal guarantees of the assignee's or sublessee's obligations under this Lease. If Landlord approves of an assignment or subletting hereunder and this Lease contains any renewal options,expansion options, rights of first refusal, rights of first negotiation or any other rights or options pertaining to additional space in the Building,such rights and/or options shall not run to the assignee or subtenant,it being agreed by the parties hereto that any such rights and options are personal to Tenant named herein and may not be transferred. (c) Conditions to Assignment or Sublease. Tenant agrees that any instrument by which Tenant assigns or sublets all or any portion of the Premises shall expressly provide that the assignee or subtenant may not further assign or sublet the assigned or sublet space without Landlord's prior consent (which consent shall not, subject to Landlord's rights under this Section, be unreasonably withheld or delayed), and that the assignee or subtenant will comply with all of the provisions of this Lease and that Landlord may enforce the Lease provisions directly against such assignee or subtenant. If this Lease is assigned,whether or not in violation of the terms and provisions of this Lease, Landlord may collect Rent from the assignee. If the Premises,or any part thereof,is sublet,Landlord may,upon a default under this Lease,collect rent from the subtenant. In either event, Landlord may apply the amount collected from the assignee or subtenant to Tenant's obligation to pay Rent under this Lease. (d) Events Constituting an Assignment or Sublease. For purposes of this Section, the following events shall be deemed an assignment or sublease, as appropriate: (i)the issuance of equity interests (whether stock, partnership interests or otherwise) in Tenant, or any assignee or subtenant, if NOY applicable, or any entity controlling any of them, to any person or group of related persons, in a single transaction or a series of related or unrelated transactions, such that, following such issuance, such person or group shall have Control (as defined below) of Tenant, or any assignee or subtenant, if applicable;or(ii)a transfer of Control of Tenant,or any assignee or subtenant, if applicable,or any entity controlling any of them, in a single transaction or a series of related or unrelated transactions (including, without limitation, by consolidation, merger, acquisition or reorganization), except that the transfer of outstanding capital stock or other listed equity interests by persons or parties other than"insiders"within the meaning of the Securities Exchange Act of 1934,as amended,through the"over-the-counter"market or any recognized national or international securities exchange, shall not be included in determining whether Control has been transferred. "Control" shall mean direct or indirect ownership of fifty percent (50%)or more of all the legal and equitable interest in any business entity. (e) Processing Expenses. Tenant shall pay to Landlord the amount of Landlord's cost of processing each proposed assignment or subletting,including without limitation,reasonable attorneys'and other professional fees, and the cost of Landlord's administrative, accounting and clerical time (collectively, "Processing Costs"), and the amount of all reasonable direct and indirect expense incurred by Landlord arising from the assignee or sublessee taking occupancy of the subject space, including without limitation, reasonable costs of freight elevator operation for moving of furnishings and trade fixtures, security service, janitorial and cleaning service, rubbish removal service, costs of changing signage, and costs of changing locks and making new keys (collectively, "Occupancy Costs"). Notwithstanding anything to the contrary herein,Landlord shall not be required to process any request for Landlord's consent to an assignment or subletting until Tenant has paid to Landlord Three Hundred Dollars($300.00),or Landlord's estimate of the Processing Costs and the Occupancy Costs,whichever is greater. (f) Consideration to Landlord. In the event of any assignment or sublease, whether or not requiring Landlord's consent,Landlord shall be entitled to receive,as Additional Rent,one-half(1/2)of any consideration, including without limitation,payment for leasehold improvements paid for by Landlord,paid by the assignee or subtenant for the assignment or sublease and, in the case of sublease,the excess of the amount of rent paid for the sublet space by the subtenant over the total amount of Minimum Monthly Rent under Section 5 and Additional Rent under Sections 7 and 9. Upon Landlord's request,Tenant shall assign to Landlord all amounts to be paid to Tenant by the assignee or subtenant and shall direct such assignee or subtenant to pay the same directly to Landlord. If there is more than one sublease under this Lease,the amounts(if any)to be paid by Tenant to Landlord pursuant to the preceding sentence shall be separately calculated for each sublease.and amounts due Landlord with regard to any one sublease may not be offset against rental and other consideration due under any other sublease. `�11r✓ (g) Procedures.If Tenant desires to assign this Lease or any interest therein or sublet all or part of the Premises,Tenant shall give Landlord written notice thereof designating the space proposed to be sublet and the terms proposed. If the proposed sublease covers the entire Premises and if the term of the 11 proposed sublease(including any renewal terms)will expire during the final six(6)months of the Term(or if Tenant has exercised a renewal option,if any,then during the final six(6)months of the subject renewal period), then Landlord shall have the prior right and option (to be exercised by written notice to Tenant 111101 given within fifteen(15)days after receipt of Tenant's notice)(i)to terminate this Lease, or(ii)to approve Tenant's proposal to sublet conditional upon Landlord's subsequent written approval of the specific sublease obtained by Tenant and the specific subtenant named therein. If Landlord exercises its option described in(ii)above,Tenant shall submit to Landlord for Landlord's written approval Tenant's proposed sublease agreement(in which the proposed subtenant shall be named)together with a current reviewed or audited financial statement prepared by a certified public accountant for such proposed subtenant and a credit report on such proposed subtenant prepared by a recognized credit reporting agency. If Landlord fails to exercise its option to terminate this Lease,this shall not be construed as or constitute a waiver of any of the provisions of this Section.If Landlord exercises its option to terminate this Lease,Landlord shall not have any liability for any real estate brokerage commission(s)or with respect to any of the costs and expenses that Tenant may have incurred in connection with its proposed subletting,and Tenant agrees to hold Landlord harmless from and against any and all claims (including, without limitation, claims for commissions) arising from such proposed subletting. Landlord's foregoing rights and options shall continue throughout the Term.For purposes of this Section,a proposed assignment of this Lease in whole or in part shall be deemed a proposed subletting of such space. (h) Documentation. No permitted subletting by Tenant shall be effective until there has been delivered to Landlord a counterpart of the sublease in which the subtenant agrees to be and remain jointly and severally liable with Tenant for the payment of Rent pertaining to the sublet space and for the performance of all of the terms and provisions of this Lease; provided, however, that the subtenant shall be liable to Landlord for rent only in the amount set forth in the sublease. No permitted assignment shall be effective unless and until there has been delivered to Landlord a counterpart of the assignment in which the assignee assumes all of Tenant's obligations under this Lease arising on or after the date of the assignment. The failure or refusal of a subtenant or assignee to execute any such instrument shall not release or discharge the subtenant or assignee from its liability as set forth above. (i) No Merger.Without limiting any of the provisions of this Section, if Tenant has entered into any subleases of any portion of the Premises,the voluntary or other surrender of this Lease by Tenant,or a mutual cancellation by Landlord and Tenant, shall not work a merger, and shall, at the option of Landlord,terminate all or any existing subleases or subtenancies or, at the option of Landlord,operate as an assignment to Landlord of any or all such subleases or subtenancies. 26. Default. The occurrence of any of the following shall constitute a default by Tenant under this Lease: (a) Failure to Pay Rent. Failure to pay Rent when due, if the failure continues for a period of three(3)days after notice of such default has been given by Landlord to Tenant. (b) Failure to Comply with Rules and Regulations. Failure to comply with the Rules and Regulations, if the failure continues for a period of twenty-four (24) hours after notice of such default is given by Landlord to Tenant. If the failure to comply cannot reasonably be cured within twenty-four(24) hours, then Tenant shall not be in default under this Lease if Tenant commences to cure the failure to comply within twenty-four (24) hours and diligently and in good faith continues to cure the failure to comply. (c) Other Defaults. Failure to perform any other provision of this Lease, if the failure to perform is not cured within thirty(30)days after notice of such default has been given by Landlord to Tenant.If the default cannot reasonably be cured within thirty(30)days, then Tenant shall not be in default under this Lease if Tenant commences to cure the default within thirty (30) days and diligently and in good faith continues to cure the default. (d) Appointment of Trustee or Receiver. The appointment of a trustee or receiver to take possession of substantially all of the Tenant's assets located at the Premises or of Tenant's interest in this Lease,where possession is not restored to Tenant within sixty(60)days;or the attachment,execution or other judicial seizure of substantially all of Tenant's assets located at the Premises or of Tenant's interest in this Lease,where such seizure is not discharged within sixty(60)days. (e) Cross-Default. Any material default by Win211 or Bursst, under those certain leases dated January 11, 2007 by and between Landlord and each of these related tenants occupying the 5th Floor of the 200 Mill Avenue Building, ("Related Party Lease")for Suite 505 and 510 shall constitute a default of the United Way of King County Lease. In the event either Win 211 or Bursst is in material default, Landlord may require United Way of King County to terminate the Lease after reasonable notice, forfeit the use of the common hallways and conference room, and shared kitchen area, and or assume and expand into the area leased by the defaulting party, as agreed upon by Landlord and Tenant. Landlord's election of this remedy is without prejudice to Landlord's right to pursue any other remedy available under the Lease. 27. Remedies. If Tenant commits a default, Landlord shall have the following alternative remedies, which are in addition to any remedies now or later allowed by law: (a) Maintain Lease in Force. Maintain this Lease in full force and effect and recover the Rent and other monetary charges as they become due, without terminating Tenant's right to possession, irrespective of whether Tenant shall have abandoned the Premises. If Landlord elects to not terminate the Lease, Landlord shall have the right to attempt to re-let the Premises at such rent and upon such 12 conditions and for such a term, and to do all acts necessary to maintain or preserve the Premises as Landlord deems reasonable and necessary without being deemed to have elected to terminate the Lease including removal of all persons and property from the Premises; such property may be removed and 14111W stored in a public warehouse or elsewhere at the cost of and for the account of Tenant. In the event any such re-letting occurs,this Lease shall terminate automatically upon the new Tenant taking possession of the Premises. Notwithstanding that Landlord fails to elect to terminate the Lease initially, Landlord at any time during the term of this Lease may elect to terminate this Lease by virtue of such previous default of Tenant. (b) Terminate Lease.Terminate Tenant's right to possession by any lawful means,in which case this Lease shall terminate and Tenant shall immediately surrender possession of the Premises to Landlord. In such event Landlord shall be entitled to recover from Tenant all damages incurred by Landlord by reason of Tenant's default including without limitation thereto, the following: (i)The worth at the time of award of any unpaid Rent which had been earned at the time of such termination;plus(ii)the worth at the time of award of the amount by which the unpaid Rent which would have been earned after termination until the time of award exceeds the amount of such rental loss that Tenant proves could have been reasonably avoided;plus(iii)the worth at the time of award of the amount by which the unpaid Rent for the balance of the Term after the time of award exceeds the amount of such rental loss that is proved could be reasonably avoided; plus (iv) any other amount necessary to compensate Landlord for all the detriment proximately caused by Tenant's failure to perform its obligations under this Lease or which in the ordinary course of things would be likely to result therefrom, including without limitation, any costs or expenses incurred by Landlord in(A)retaking possession of the Premises, including reasonable attorney fees therefor, (B) maintaining or preserving the Premises after such default, (C)preparing the Premises for reletting to a new tenant, including repairs or necessary alterations to the Premises for such reletting, (D) leasing commissions incident to reletting to a new tenant, and (E) any other costs necessary or appropriate to relet the Premises; plus (v)at Landlord's election, such other amounts in addition to or in lieu of the foregoing as may be permitted from time to time by applicable state law. The amounts described in clauses(C)and (D)shall be amortized over the term of the new tenant's lease,and Tenant shall only be liable to Landlord for the portion of such amounts attributable to the period prior to the Expiration Date of this Lease set forth in Section 1.Upon any such re-entry Landlord shall have the right to make any reasonable repairs, alterations or modifications to the Premises, which Landlord in its sole discretion deems reasonable and necessary. As used in Subsection 27(b)(i) the "worth at the time of award" is computed by allowing interest at the rate of fifteen percent (15%) per year from the date of default. As used in Subsections 27(b)(ii) and 27(b)(iii) the "worth at the time of award" is computed by discounting such amounts at the discount rate of eight percent(8%)per year. 28. Bankruptcy. (a) Assumption of Lease.If Tenant becomes a Debtor under Chapter 7 of the Bankruptcy Code ("Code")or a petition for reorganization or adjustment of debts is filed concerning Tenant under Chapters 11 or 13 of the Code,or a proceeding is filed under Chapter 7 of the Code and is transferred to Chapters 11 or 13 of the Code, the Trustee or Tenant, as Debtor and as Debtor-In-Possession, may not elect to assume this Lease unless,at the time of such assumption,the Trustee or Tenant has: (i) Cured all defaults under the Lease and paid all sums due and owing under the Lease or provided Landlord with "Adequate Assurance" (as defined below) that: (i)within ten (10) days from the date of such assumption, the Trustee or Tenant will completely pay all sums due and owing under this Lease and compensate Landlord for any actual pecuniary loss resulting from any existing default or breach of this Lease,including without limitation,Landlord's reasonable costs,expenses,accrued interest, and attorneys'fees incurred as a result of the default or breach; (ii)within twenty(20)days from the date of such assumption, the Trustee or Tenant will cure all non-monetary defaults and breaches under this Lease, or, if the nature of such non-monetary defaults is such that more than twenty (20) days are reasonably required for such cure,that the Trustee or Tenant will commence to cure such non-monetary defaults within twenty(20) days and thereafter diligently prosecute such cure to completion; and (iii)the assumption will be subject to all of the provisions of this Lease. (ii) For purposes of this Section,Landlord and Tenant acknowledge that,in the context of a bankruptcy proceeding involving Tenant,at a minimum,"Adequate Assurance"shall mean:(i)the Trustee or Tenant has and will continue to have sufficient unencumbered assets after the payment of all secured obligations and administrative expenses to assure Landlord that the Trustee or Tenant will have sufficient funds to fulfill the obligations of Tenant under this Lease; (ii)the Bankruptcy Court shall have entered an Order segregating sufficient cash payable to Landlord and/or the Trustee or Tenant shall have granted a valid and perfected first lien and security interest and/or mortgage in or on property of Trustee or Tenant acceptable as to value and kind to Landlord,to secure to Landlord the obligation of the Trustee or Tenant to cure the monetary and/or non-monetary defaults and breaches under this Lease within the time periods set forth above;and(iii)the Trustee or Tenant,at the very minimum,shall deposit a sum equal to two(2) month's Minimum Monthly Rent to be held by Landlord (without any allowance for interest thereon) to secure Tenant's future performance under the Lease. (b) Assignment of Lease. If the Trustee or Tenant has assumed the Lease pursuant to the provisions of this Section for the purpose of assigning Tenant's interest hereunder to any other person or entity, such interest may be assigned only after the Trustee, Tenant or the proposed assignee have complied with all of the terms,covenants and conditions of this Lease, including,without limitation,those with respect to Additional Rent. Landlord and Tenant acknowledge that such terms, covenants and `"rrr' conditions are commercially reasonable in the context of a bankruptcy proceeding of Tenant.Any person or entity to which this Lease is assigned pursuant to the provisions of the Code shall be deemed without further act or deed to have assumed all of the obligations arising under this Lease on and after the date of 13 such assignment. Any such assignee shall upon request execute and deliver to Landlord an instrument confirming such assignment. (c) Adequate Protection. Upon the filing of a petition by or against Tenant under the Code, Tenant, as Debtor and as Debtor-In-Possession, and any Trustee who may be appointed agree to adequately protect Landlord as follows: (i) to perform each and every obligation of Tenant under this Lease until such time as this Lease is either rejected or assumed by Order of the Bankruptcy Court; (ii)to pay all monetary obligations required under this Lease, including without limitation, the payment of Minimum Monthly Rent,Tenant's Share of Real Property Taxes,Tenant's Share of Operating Costs and any other sums payable by Tenant to Landlord under this Lease which is considered reasonable compensation for the use and occupancy of the Premises; (iii)provide Landlord a minimum of thirty(30) days prior written notice, unless a shorter period is agreed to in writing by the parties,of any proceeding relating to any assumption of this Lease or any intent to abandon the Premises,which abandonment shall be deemed a rejection of this Lease; and(iv)to perform to the benefit of Landlord as otherwise required under the Code. The failure of Tenant to comply with the above shall result in an automatic rejection of this Lease. 29. Limitation of Actions.Any claim, demand,right or defense of any kind by Tenant which is based upon or arises in connection with this Lease or the negotiations prior to its execution, shall be barred unless Tenant commences an action thereon, or interposes in a legal proceeding a defense by reason thereof,within one(1)year after the date Tenant actually becomes aware of the act or omission on which such claim,demand,right or defense is based. 30. Limitation on Landlord's Liability. Anything in this Lease to the contrary notwithstanding, covenants,undertakings and agreements herein made on the part of Landlord are made and intended not as personal covenants,undertakings and agreements or for the purpose of binding Landlord personally or the assets of Landlord except Landlord's interest in the Property, but are made and intended for the purpose of binding only the Landlord's interest in the Property. No personal liability or personal responsibility is assumed by, nor shall at any time be asserted or enforceable against Landlord or its partners and their respective heirs, legal representatives, successors and assigns on account of this Lease or on account of any covenant,undertaking or agreement of Landlord contained in this Lease. 31. Signs. Tenant shall not have the right to place, construct or maintain any sign, advertisement, awning, banner or other exterior decoration without Landlord's consent. Any sign that Tenant has Landlord's consent to place,construct and maintain shall comply with all laws,and Tenant shall obtain any approval required by such laws. Landlord makes no representation with respect to Tenant's ability to obtain such approval. Landlord will allow Tenant a small sign at the top of the exterior West Stairs, approved by Landlord prior to installation. 32. Landlord's Right to Enter the Premises. Landlord and its authorized representatives shall have the right to enter the Premises at reasonable times and upon reasonable prior notice (except in an emergency when no such notice shall be required) for any of the following purposes: (i) to determine whether the Premises are in good condition and whether Tenant is complying with its obligations under this Lease, (ii) to do any maintenance; to make any restoration to the Premises or the Building that Landlord has the right or the obligation to perform,and to make any improvements to the Premises or the Building that Landlord deems necessary,(iii)to serve,post or keep posted any notices required or allowed under the provisions of this Lease, (iv)to post any ordinary"For Sale"signs at any time during the Term and to post any ordinary"For Lease"signs during the last ninety(90)days of the Term,and (v)to show the Premises to prospective brokers,agents,purchasers,tenants or lenders,at any time during the Term. Landlord shall not be liable in any manner for any inconvenience, annoyance, disturbance, loss of business, nuisance, or other damage arising out of Landlord's entry on the Premises as provided in this Section, except damage resulting from the grossly negligent or willful acts of Landlord or its authorized representatives.Tenant shall not be entitled to an abatement or reduction of Rent if Landlord exercises any right reserved in this Section.Landlord shall conduct its activities on the Premises as allowed in this Section in a reasonable manner so as to cause minimal inconvenience,annoyance or disturbance to Tenant. 33. Subordination. This Lease is and shall be prior to any mortgage recorded after the date of this Lease affecting the Property. If, however, a lender requires that this Lease be subordinate to any mortgage, this Lease shall be subordinate to that mortgage if Landlord first obtains from the lender a written agreement that provides substantially the following: "As long as Tenant performs its obligations under this Lease, no foreclosure of, deed given in lieu of foreclosure of,or sale under the mortgage,and no steps or procedures taken under the mortgage,shall affect Tenant's rights under this Lease." Tenant shall attorn to any purchaser at any foreclosure sale, or to any grantee or transferee designated in any deed given in lieu of foreclosure.Tenant shall execute the written agreement and any other documents required by the lender to accomplish the purposes of this Section. 34. Right to Estoppel Certificates. Tenant, within ten (10) business days after notice from Landlord, shall execute and deliver to Landlord,in recordable form,a certificate stating that this Lease is unmodified and in full force and effect, or in full force and effect as modified and stating the modifications. The certificate shall also state the amount of Minimum Monthly Rent,the dates to which Rent has been paid in `rl advance, and the amount of any Prepaid Rent or Security Deposit and such other matters as Landlord may reasonably request. Failure to deliver the certificate within such ten(10)business day period shall be conclusive upon Tenant for the benefit of Landlord and any successor to Landlord,that this Lease is in full 14 force and effect and has not been modified except as may be represented by Landlord requesting the certificate. *NW 35. Transfer of Landlord's Interest. If Landlord sells or transfers the Property, Landlord, on consummation of the sale or transfer, shall be released from any liability thereafter accruing under this Lease if Landlord's successor has assumed in writing, for the benefit of Tenant, Landlord's obligations under this Lease.If any Security Deposit or Prepaid Rent has been paid by Tenant,Landlord shall transfer such Security Deposit or Prepaid Rent to Landlord's successor and on such transfer Landlord shall be discharged from any further liability with respect to such Security Deposit or Prepaid Rent. 36. Attorneys'Fees.If either party shall bring any action for relief against the other party,declaratory or otherwise, arising out of this Lease, including any action by Landlord for the recovery of Rent or possession of the Premises, the losing party shall pay the successful party a reasonable sum for attorneys'fees which shall be deemed to have accrued on the commencement of such action and shall be paid whether or not such action is prosecuted to judgment. 37. Surrender;Holding Over. (a) Surrender. On expiration or ten (10) days after termination of the Term, Tenant shall surrender the Premises and all Tenant's improvements and alterations to Landlord broom clean and in good condition.Tenant shall remove all of its trade fixtures and personal property,which personal property specifically includes all cabling installed in the Premises by Tenant(unless Tenant has received consent from Landlord that such cabling may be surrendered with and remain in the Premises), within the time period stated in this Section. Tenant, at its cost, shall perform all restoration made necessary by, and repair any damage to the Premises caused by, the removal of its trade fixtures, personal property and signs to Landlord's reasonable satisfaction within the time period stated in this Section. Landlord may, at its election, retain or dispose of in any manner any of Tenant's trade fixtures or personal property that Tenant does not remove from the Premises on expiration or within ten (10)days after termination of the Term as allowed or required by the provisions of this Lease by giving ten(10)days notice to Tenant.Title to any such trade fixtures and personal property that Landlord elects to retain or dispose of on expiration of such ten (10) day period shall vest in Landlord. Tenant waives all claims against Landlord for any damage to Tenant resulting from Landlord's retention or disposition of any such trade fixtures and personal property.Tenant shall be liable to Landlord for Landlord's reasonable costs for storing,removing and disposing of Tenant's trade fixtures and personal property.If Tenant fails to surrender the Premises to Landlord on expiration or ten (10)days after termination of the Term as required by this Section,Tenant shall pay Landlord Rent in an amount equal to 150% of the Minimum Monthly Rent applicable for the month immediately prior to the expiration or termination of the Term, or the amount provided by law, whichever is greater,for the entire time Tenant thus remains in possession and Tenant shall be liable for, +440e shall indemnify Landlord against and shall hold Landlord harmless from all damages resulting from Tenant's failure to timely surrender the Premises, including without limitation, (i)any Rent payable by, or any damages claimed by, any prospective tenant of any part or all of the Premises, and (ii) Landlord's damages resulting from such prospective tenant rescinding or refusing to enter into the prospective lease of part or all of the Premises by reason of Tenant's failure to timely surrender the Premises. If Tenant, without Landlord's prior consent, remains in possession of the Premises after expiration or termination of the Term, or after the date in any notice given by Landlord to Tenant terminating this Lease, such possession by Tenant shall be deemed to be a tenancy at sufferance terminable at any time by either party. (b) Holding Over with Landlord's Consent. If Tenant,with Landlord's prior consent,remains in possession of the Premises after expiration or termination of the Term, or after the date in any notice given by Landlord to Tenant terminating this Lease, such possession by Tenant shall be deemed to be a month-to-month tenancy terminable by Landlord by a notice given to Tenant at least twenty(20)days prior to the end of any such monthly period or by Tenant by a notice given to Landlord at least thirty(30)days prior to the end of any such monthly period.During such month-to-month tenancy,Tenant shall pay Rent in the amount then agreed to in writing by Landlord and Tenant.All provisions of this Lease,except those pertaining to term,shall apply to the month-to-month tenancy. 38. Agency Disclosure;Broker. (a) Agency Disclosure. GVA Kidder Mathews hereby discloses that it represents the Landlord in this transaction. (b) Broker. Landlord and Tenant each represent to the other that neither is represented by any broker, agent or finder with respect to this Lease in any manner, except the Broker(s). The commission due to the Broker(s)shall be paid by Landlord pursuant to a separate agreement. Each party agrees to indemnify and hold the other party harmless from and against any and all liability,costs,damages,causes of action or other proceedings instituted by any broker, agent or finder, licensed or otherwise, claiming through, under or by reason of the conduct of the indemnifying party in any manner whatsoever in connection with this Lease. If Tenant engages a broker,agent or finder to represent Tenant in connection with any renewal of this Lease, then the commission or any fee of such broker, agent or finder shall be paid by Tenant. 39. Interest on Unpaid Rent. In addition to the Late Charge as provided in Section 5(b), Rent not paid rlrr when due shall bear interest from the date due until paid at the rate of fifteen percent(15%)per year,or the maximum legal rate of interest,whichever is less. 40. Landlord's Option to Relocate Tenant. Landlord shall have the option at any time to relocate Tenant,upon not less than sixty(60)days advance written notice by Landlord to Tenant,to any floor of the 15 Building in which the Premises are located so long as the square footage of the Premises leased hereunder is not reduced. Rent shall not be changed because of the relocation of Tenant notwithstanding any increase in the square footage of the Premises to which Tenant is relocated unless the increase in square footage is caused by Tenant's request for additional space. In the event Landlord gives Tenant written notice of the relocation of Tenant after Tenant and Landlord have commenced or completed the approved installation of partitioning or other improvements, Landlord shall furnish Tenant with similar partitioning or other improvements of equal quality in the Premises to which Tenant is relocated.Landlord shall pay expenses associated with relocation of existing telephones,existing office furniture,and existing equipment. 41. Definitions. As used in this Lease, the following words and phrases, whether or not capitalized, shall have the following meanings: (a) "Additional Rent" means pass-throughs of increases in Operating Costs and Taxes, as defined in this Lease,and other monetary sums to be paid by Tenant to Landlord under the provisions of this Lease. (b) "Alteration" means any addition or change to, or modification of, the Premises made by Tenant,including without limitation,fixtures,but excluding trade fixtures as defined in this Section. (c) "Authorized representatives"means any officer, agent, employee, independent contractor or invitee of either party. (d) "Award"means all compensation, sums or anything of value awarded, paid or received on a total or partial condemnation. (e) "Common Areas" means all areas outside the Premises and within the Building or on the Land that are provided and designated by Landlord from time to time for the general,non-exclusive use of Landlord,Tenant and other tenants of the Building and their authorized representatives, including without limitation, common entrances, lobbies, corridors, stairways and stairwells, elevators, escalators, public restrooms and other public portions of the Building. (f) "Condemnation" means the exercise of any governmental power, whether by legal proceedings or otherwise,by a condemnor and a voluntary sale or transfer by Landlord to any condemnor, either under threat of condemnation or while legal proceedings for condemnation are pending. (g) "Condemnor" means any public or quasi-public authority or entity having the power of condemnation. (h) "Damage"means any injury,deterioration,or loss to a person, property,the Premises or the Building caused by another person's acts or omissions or by Acts of God.Damage includes death. (i) "Damages"means a monetary compensation or indemnity that can be recovered in the courts by any person who has suffered damage to his person, property or rights through another's acts or omissions. (j) "Date of taking" means the date the condemnor has the right to possession of the property being condemned. (k) "Encumbrance" means any mortgage, deed of trust or other written security device or agreement affecting the Premises,and the note or other obligation secured by it,that constitutes security for the payment of a debt or performance of an obligation. (I) "Expiration" means the coming to an end of the time specified in the Lease as its duration, including any extension of the Term. (m) "Force majeure"means strikes, lockouts, labor disputes, shortages of labor or materials,fire or other casualty,Acts of God or any other cause beyond the reasonable control of a party. (n) "Good condition"means the good physical condition of the Premises and each portion of the Premises,including without limitation,all of the Tenant Improvements,Tenant's alterations,Tenant's trade fixtures,Tenant's Personal Property,all as defined in this Section,signs,walls,interior partitions,windows, window coverings,glass,doors,carpeting and resilient flooring,ceiling tiles,plumbing fixtures and lighting fixtures,all of which shall be in conformity with building standard finishes,ordinary wear and tear,damage by fire or other casualty and taking by condemnation excepted. (o) "Hazardous substances" means any industrial waste, toxic waste, chemical contaminant or other substance considered hazardous,toxic or lethal to persons or property or designated as hazardous, toxic or lethal to persons or property under any laws, including without limitation, asbestos material or materials containing asbestos. (p) "Hold harmless"means to defend and indemnify from all liability, losses, penalties,damages as defined in this Section,costs,expenses(including without limitation,attorneys'fees),causes of action, claims or judgments arising out of or related to any damage, as defined in this Section,to any person or property. (q) "Law"means any constitution,statute,ordinance,regulation,rule,resolution,judicial decision, administrative order or other requirement of any federal, state, county, municipal or other governmental 16 agency or authority having jurisdiction over the parties or the Property,or both, in effect either at the time of execution of this Lease or at any time during the Term, including without limitation, any regulation or order of a quasi-official entity or body (e.g., board of fire examiners or public utilities) and any legally *awe effective conditions,covenants or restrictions affecting the Property. (r) "Lender" means the mortgagee, beneficiary, secured party or other holder of an encumbrance,as defined in this Section. (s) "Lien"means a charge imposed on the Premises by someone other than Landlord, by which the Premises are made security for the performance of an act. (t) "Maintenance"means repairs,replacement,repainting and cleaning. (u) "Mortgage"means any deed of trust, mortgage or other written security device or agreement affecting the Premises, and the note or other obligation secured by it, that constitutes security for the payment of a debt or performance of an obligation. (v) "Mortgagee"means the beneficiary under a deed of trust or mortgagee under a mortgage. (w) "Mortgagor" means the grantor or trustor under a deed of trust or mortgagor under a mortgage. (x) "Operating Costs" means all costs of any kind incurred by Landlord in operating, cleaning, equipping, protecting, lighting, repairing, replacing, heating, air-conditioning, maintaining and insuring the Property.Operating Costs shall include,without limitation,the following costs:(i)salaries,wages,bonuses and other compensation (including hospitalization, medical,surgical,retirement plan, pension plan, union dues, life insurance, including group life insurance, welfare and other fringe benefits, and vacation, holidays and other paid absence benefits)relating to employees of Landlord or its agents directly engaged in the operation,repair,or maintenance of the Property;(ii)payroll,social security,workers'compensation, unemployment and similar taxes with respect to such employees of Landlord or its authorized representatives, and the cost of providing disability or other benefits imposed by law or otherwise, with respect to such employees; (iii) uniforms (including the cleaning, replacement and pressing thereof) provided to such employees; (iv) premiums and other charges incurred by Landlord with respect to fire, earthquake, other casualty, all risk, rent loss and liability insurance, any other insurance as is deemed necessary or advisable in the reasonable judgment of Landlord and, after the Base Year, costs of repairing an insured casualty to the extent of the deductible amount under the applicable insurance policy; (v)water charges and sewer rents or fees; (vi) license, permit and inspection fees; (vii) sales, use and excise taxes on goods and services purchased by Landlord in connection with the operation,maintenance 1411.00 or repair of the Property and Building systems and equipment; (viii) telephone, facsimile, messenger, express delivery service,postage,stationery supplies and other expenses incurred in connection with the operation, management, maintenance, or repair of the Property; (ix) property management fees and expenses; (x) repairs to and physical maintenance of the Property, including building systems and appurtenances thereto and normal repair and replacement of worn-out equipment, facilities and installations, but excluding the replacement of major building systems (except to the extent provided in (xvi) and (xvii) below); (xi)janitorial, window cleaning, security, extermination, water treatment, rubbish removal, plumbing and other services and inspection or service contracts for elevator, electrical, HVAC, mechanical and other building equipment and systems or as may otherwise be necessary or proper for the operation or maintenance of the Property; (xii) supplies, tools, materials, and equipment used in connection with the operation, maintenance or repair of the Property; (xiii) accounting, legal and other professional fees and expenses; (xiv)painting the exterior or the public or common areas of the Building and the cost of maintaining the sidewalks, landscaping and other common areas of the Property; (xv)all costs and expenses for electricity,chilled water,air conditioning,water for heating,gas,fuel,steam,heat, lights, power and other energy related utilities required in connection with the operation,maintenance and repair of the Property; (xvi) the cost of any improvements which Landlord elects to capitalize made by Landlord to the Property during the Term in compliance with the requirements of any laws or regulation or insurance requirement with which the Property was not required to comply during the Base Year, as reasonably amortized by Landlord,with interest on the unamortized balance at the rate of twelve percent (12%) per year, or the maximum legal rate of interest, whichever is less; (xvii) the cost of any improvements which Landlord elects to capitalize made by Landlord to the Property during the term of this Lease for the protection of the health and safety of the occupants of the Property or that are intended to reduce other Operating Costs, as reasonably amortized by Landlord, with interest on the unamortized balance at the rate of twelve percent(12%)per year,or the maximum legal rate of interest,whichever is less; (xviii) a reasonable reserve for repair or replacement of equipment used in the maintenance or operation of the Property;(xix)the cost of furniture,draperies,carpeting,landscaping and other customary and ordinary items of personal property(excluding paintings, sculptures and other works of art)provided by Landlord for use in common areas of the Building or in the Building office (to the extent that such Building office is dedicated to the operation and management of the Property),such costs to be amortized over the useful fife thereof; (xx) Building office rent or rental value; and (xxi) all other costs which, in accordance with generally sound accounting and management principles used by Landlord,as applied to the maintenance and operation of office and/or retail buildings, are properly chargeable to the operation and maintenance of the Property. Operating Costs shall not include the following:(i)depreciation on the Building;(ii)debt service;(Hi) capital improvements, except as otherwise provided in clauses (xvi)and (xvii)above, (iv)rental under any 411.1 ground or underlying leases; (v) Real Property Taxes, (vi) attorneys' fees and expenses incurred in connection with lease negotiations with prospective tenants, or default or enforcement proceedings with respect to defaulting tenants; (vii)the cost of tenant improvements; (viii)advertising expenses; or(ix)real estate broker's or other leasing commissions. 17 • (y) "Parties"means Landlord and Tenant. (z) "Party"means Landlord or Tenant. `' (aa) "Person" means one or more human beings, or legal entities or other artificial persons, including without limitation, partnerships, corporations, trusts, estates, associations and any combination of human beings and legal entities. (bb) "Property"means the Premises,Building and Land. (cc) "Provision"means any term,agreement,covenant,condition,clause,qualification,restriction, reservation, or other stipulation in the Lease that defines or otherwise controls, establishes, or limits the performance required or permitted by either party. (dd) "Real Property Taxes" means any form of tax, assessment, general assessment, special assessment, lien, levy, bond obligation, license fee, license tax, tax or excise on rent, or any other levy, charge or expense, together with any statutory interest thereon, (individually and collectively, the "Impositions"),now or hereafter imposed or required by any authority having the direct or indirect power to tax, including any federal,state,county or city government or any school,agricultural,lighting,drainage or other improvement or special assessment district thereof,(individually and collectively,the"Governmental Agencies") on any interest of Landlord or Tenant or both (including any legal or equitable interest of Landlord or its mortgagee,if any)in the Premises or the Property,including without limitation: (i) any Impositions upon, allocable to or measured by the area of the Premises or the Property, or the rental payable hereunder, including without limitation,any gross income tax or excise tax levied by any Governmental Agencies with respect to the receipt of such rental;or (ii) any Impositions upon or with respect to the possession, leasing, operation, management, maintenance, alteration, repair or use or occupancy by Tenant of the Premises or any portion thereof;or (iii) any Impositions upon or with respect to the building equipment and personal property used in connection with the operation and maintenance of the Property or upon or with respect to the furniture,fixtures and decorations in the common areas of the Property. (iv) any Impositions upon this Lease or this transaction or any document to which Tenant is a party creating or transferring an interest or an estate in the Premises;or (v) any Impositions by Governmental Agencies(whether or not such Impositions constitute tax receipts) in substitution, partially or totally, of any impositions now or previously included within the definition of real property taxes, including those calculated to increase tax increments to Governmental Agencies and to pay for such services as fire protection, water drainage, street, sidewalk and road maintenance,refuse removal or other governmental services formerly provided without charge to property owners or occupants;or (vi) any and all costs, including without limitation,the fees of attorneys,tax consultants and experts, incurred by Landlord should Landlord elect to negotiate or contest the amount of such real property taxes in formal or informal proceedings before the Governmental Agency imposing such real property taxes; provided, however, that real property taxes shall in no event include Landlord's general income,inheritance,estate,gift or franchise taxes. (ee) "Rent" means Minimum Monthly Rent, as adjusted from time to time under this Lease, Additional Rent,Prepaid Rent,Security Deposit,all as defined in this Section,payments of Tenant's Share of increases in Real Property Taxes and Operating Costs, insurance, utilities and other charges payable by Tenant to Landlord. (ff) "Rentable square feet of space" as to the Premises or the Building, as the case may be, means the number of usable square feet of space times the applicable R/U Ratio(s) as defined in this Section. (gg) "Restoration" means the reconstruction, rebuilding, rehabilitation and repairs that are necessary to return damaged portions of the Premises and the Building to substantially the same physical condition as they were in immediately before the damage. (hh) "R/U Ratio"means the rentable area of a floor of the Building divided by the usable area of such floor, both of which shall be computed in accordance with American National Standard Z65.1-1996 Method of Measuring Floor Space in Office Buildings as published by the Building Owners and Managers Association,as amended from time to time. (H) "Substantially complete" or "substantially completed" or "substantial completion" means the completion of Landlord's construction obligation, subject to completion or correction of"punch list"items, that is,minor items of incomplete or defective work or materials or mechanical maladjustments that are of such a nature that they do not materially interfere with or impair Tenant's use of the Premises for the Permitted Use. 18 (jj) "Successor" means assignee, transferee, personal representative, heir, or other person or entity succeeding lawfully,and pursuant to the provisions of this Lease,to the rights or obligations of either party. (kk) "Tenant Improvements"means(i)the improvements and alterations set forth in Exhibit C,(ii) window coverings, lighting fixtures, plumbing fixtures, cabinetry and other fixtures installed by either Landlord or Tenant at any time during the Term, and (iii) any improvements and alterations of the Premises made for Tenant by Landlord at any time during the Term. (II) "Tenant's personal property" means Tenant's equipment, furniture, and movable property (including cabling)placed in the Premises by Tenant. (mm)"Tenant's trade fixtures"means any property attached to the Premises by Tenant. (nn) "Termination"means the ending of the Term for any reason before expiration, as defined in this Section. (oo) "Work"means the construction of any improvements or alterations or the performance of any repairs done by Tenant or caused to be done by Tenant on the Premises as permitted by this Lease. 42. Miscellaneous Provisions. (a) Entire Agreement.This Lease sets forth the entire agreement of the parties as to the subject matter hereof and supersedes all prior discussions and understandings between them. This Lease may not be amended or rescinded in any manner except by an instrument in writing signed by a duly authorized officer or representative of each party hereto. (b) Governing Law. This Lease shall be governed by, and construed and enforced in accordance with,the laws of the State of Washington. (c) Severability. Should any of the provisions of this Lease be found to be invalid, illegal or unenforceable by any court of competent jurisdiction, such provision shall be stricken and the remainder of this Lease shall nonetheless remain in full force and effect unless striking such provision shall materially alter the intention of the parties. (d) Jurisdiction.In the event any action is brought to enforce any of the provisions of this Lease, the parties agree to be subject to exclusive in personam jurisdiction in the Superior Court in and for King County Washington or in the United States District Court for the Western District of Washington and agree that in any such action venue shall lie exclusively at Seattle,Washington. (e) Waiver. No waiver of any right under this Lease shall be effective unless contained in a writing signed by a duly authorized officer or representative of the party sought to be charged with the waiver and no waiver of any right arising from any breach or failure to perform shall be deemed to be a waiver of any future right or of any other right arising under this Lease. (f) Captions. Section captions contained in this Lease are included for convenience only and form no part of the agreement between the parties. (g) Notices.All notices or requests required or permitted under this Lease shall be in writing. If given by Landlord such notices or requests may be personally delivered,delivered by a reputable express delivery service such as Federal Express or DHL, or sent by certified mail, return receipt requested, postage prepaid. If given by Tenant such notices or requests shall be sent by certified mail,return receipt requested,postage prepaid.Such notices or requests shall be deemed given when so delivered or mailed, irrespective of whether such notice or request is actually received by the addressee. All notices or requests to Landlord shall be sent to Landlord at Landlord's Address for Notice and all notices or requests to Tenant shall be sent to Tenant at Tenant's Address for Notice. Either party may change the address to which notices shall be sent by notice to the other party. (h) Binding Effect. Subject to the provisions of Section 25 captioned "Assignment and Subletting", this Lease shall be binding upon, and inure to the benefit of, the parties hereto and their respective successors and assigns. No permitted assignment of this Lease or Tenant's rights hereunder shall be effective against Landlord unless and until an executed counterpart of the instrument of assignment shall have been delivered to Landlord and Landlord shall have been furnished with the name and address of the assignee.The term"Tenant"shall be deemed to include the assignee under any such permitted assignment. (i) Effectiveness. This Lease shall not be binding or effective until properly executed and delivered by Landlord and Tenant. (j) Gender and Number. As used in this Lease, the masculine shall include the feminine and neuter, the feminine shall include the masculine and neuter, the neuter shall include the masculine and feminine,the singular shall include the plural and the plural shall include the singular,as the context may require. (k) Time of the Essence. Time is of the essence in the performance of all covenants and conditions in this Lease for which time is a factor. (Signatures on following page) 19 Dated the date first above written. �g Landlord: Tenant: The City of Renton,Washington,a Sound Publishing Inc., a Washington Washington municipal corporation corporation By: By: Title: Title: Date executed: Date executed: By: By: Title: Title: Date executed: Date executed: This Lease has been prepared for submission to you and your attorney. GVA Kidder Mathews is not authorized to give legal or tax advice.Neither Landlord nor GVA Kidder Mathews makes any representations or recommendations as to the legal sufficiency, legal effect or tax consequences of this document or any transaction relating thereto. These are questions for your attorney with whom you should consult before signing the document to determine whether your legal rights are adequately protected. [Notary attached] 411101 20 EXHIBIT C WORK LETTER THIS WORK LETTER is made as of July 5, 2007 between The City of Renton,Washington, a Washington municipal corporation ("Landlord"), and Sound Publishing, Inc., a Washington corporation ("Tenant"). RECITALS: Landlord and Tenant have entered into a Lease dated of even date herewith (the "Lease")covering certain premises(Suite 70)located in the 200 Mill Avenue Building in Renton,Washington (the"Premises"). Landlord and Tenant have agreed,that Landlord will provide the Premises to Tenant in an "As is,where is"condition with no obligation to perform tenant improvements. Landlord shall provide tenant with building standard keys and signage to the Premises. Otherwise,all improvements shall be performed by Tenant,at Tenant's sole cost and expense(if any),as approved by Landlord prior to commencement of any construction. Tenant shall submit plans to landlord for approval, and be required to hire a licensed, bonded contractor to complete any improvement work. The Lease contemplates the construction by Tenant of certain improvements to the Premises.Landlord and Tenant desire to set forth their agreement as to construction of certain alterations,repairs and improvements to the Premises by Tenant in writing and hereby agree as follows: INCORPORATED INTO LEASE; DEFAULT.THE PARTIES AGREE THAT THE PROVISIONS OF THIS Work Letter ARE HEREBY INCORPORATED BY THIS REFERENCE INTO THE LEASE FULLY AS THOUGH SET FORTH THEREIN. In the event of any express inconsistencies between the Lease and this Work Letter, the latter shall govern and control. If Tenant shall default under this Work Letter, Landlord may order that all Work being performed in the Premises be stopped immediately, and that no further deliveries to the Premises be made, until such default is cured,without limitation as to Landlord's other remedies. If Tenant shall default under the Lease or this Work Letter and fail to cure the same within the time permitted for cure under the Lease,at Landlord's option,all amounts paid or incurred by Landlord towards the Improvement Allowance shall become immediately due and payable as Additional Rent under the Lease.Any amounts payable by Tenant to Landlord hereunder shall be paid as Additional Rent under the Lease.Any default by the other party hereunder shall constitute a default under the Lease and shall be subject to the remedies and other provisions applicable thereto under the Lease. DATED the date first above written. Landlord: Tenant: The City of Renton,Washington,a Sound Publishing,Inc.,a Washington Washington municipal corporation corporation By: By Print Name Title By Print Name Title WORK LETTER EXHIBIT C Page 1 APPROVED BY CITY COUNCIL Date COMMUNITY SERVICES COMMITTEE REPORT August 20, 2007 Appointments of Yong Lee and Brad Miller to the Planning Commission (August 13, 2007) The Community Services Committee recommends concurrence in Mayor Keolker's appointments of Yong Lee (an unexpired term expiring January 31, 2008) and Brad Miller (a three-year term expiring June 30, 2010)to the Planning Commission. 2ca Randy Corman, Chair 77,a/tek2. .76g4W Marcie Palmer, Vice Chair Terri Briere,plember • Planning-Bui-Lee-Miller-cmte report.doc\ Rev 1/06 bh APPROVED BY 1 OW COUNCIL ¶ Date 81-0204067 FINANCE COMMITTEE COMMITTEE REPORT August 20, 2007 Designating the Official Newspaper (Referred 5/14/2007) The Finance Committee recommends concurrence in the staff recommendation to award the bid for the official newspaper to the Renton Reporter, published by King County Publications Ltd.. The Committee further recommends that the resolution regarding this matter be presented for reading and adoption. Don P: .son, Chair / 4/ v4 Denis W. Law, Vice-Chair Dan Clawson, Member cc: Jennifer Henning AFTROVED BY 1 CITY COUNCIL FINANCE COMMITTEE REPORT Date r Z-g0°7 August 20,2007 APPROVAL OF CLAIMS AND PAYROLL VOUCHERS The Finance Committee approves for payment on August 20, 2007, claim vouchers 262811-263511 and 0 wire transfers, totaling $2,646,202.12, and 0 direct deposits, 0 payroll vouchers, and 0 wire transfers, totaling $0.00. / io on-'ersson, Chair 4644?..1,7 Lx,„ Denis Law, Vice-Chair Dan Clawson, Member FINANCE COMMITTEE APPROVED BY 1 COMMITTEE REPORT C TY COUNCIL August 20,2007 Date ''020',200 7 FUND BALANCE RESERVES Financial Management Policies Revisions (Referred March 12,2007) As a result of the review of Fund Balance Reserves and Annual Capital Improvement Plan, the Finance Committee recommends that the Financial.Management Policies be revised as follows: 1. Clarify that the quarterly financial report shall be submitted to the City Council in writing. 2. Clarify that the quarterly financial report shall include a list of any outstanding interfund loans. 3. Change the budget basis from cash to generally accepted accounting principles (GAAP) 4. Clarify that Section La concerning Stabilization Funds refers to General Government Funds as a whole. 5. Add a requirement for two-thirds affirmative approval of the City Council before an expenditures can be made from the "anti-recessionary reserve." 6. Modify the reserve targets for the Golf Funds to be between 25 percent and 50 percent of operating expenses. 7. Delete the Debt Policy number 11.a regarding competitive sale of.City bonds. 8. Add a policy calling for full disclosure of City financial information to those holding or considering the purchase of City.bonds. , The Finance Committee further recommends that these policies be included in the Mayor's proposed 2008 Annual Budget document that will be presented to the City Council at the end of October 2007. This action does not close the Fund Balance Reserves and Annual Capital Improvement Plan referral of March 12, 2007. ' (2* Don Persson, Chair Denis W. Law, Vice Chair Dan Clawson, Member cc: Linda Parks,Fiscal Services Director Bang Parkinson,Finance Analyst Supervisor Ola 13ady Financial Management Policies Basic Policy Statement The City of Renton is committed to the highest standards of responsible financial management. The City, including the City Council, Mayor and staff will work together to ensure that all financial matters of the City are addressed with care, integrity, and in the best interest of the City. The rules and procedures contained in this section are designed to: 1. Protect the assets of the City of Renton; 2. Ensure the maintenance of open and accurate records of the City's financial activities; 3. Provide a framework of operating standards and behavioral expectations; 4. Ensure compliance with federal, state, and local legal and reporting requirements; and 5. Provide a means for the City Council to update and monitor these policies with the assistance and cooperation of the Mayor's office and the Finance and Information Services Administrator. Lines of Authority 1. The Renton City Council has the authority to execute such policies as it deems to be in the best interest of the City within the parameters of federal, state, and local law. 2. The Finance Committee has the authority to perform reviews of the organization's financial activity, determine the allocation of investment deposits, and assure that adequate internal controls are in place. 3. The Mayor and CAO have the authority to oversee the development of the annual budget, make spending decisions within the parameters of the approved budget, enter into contractual agreements, make capital asset purchase decisions and make decisions regarding the allocation of expenses within designated parameters. Unless otherwise specified in this document, principal responsibility for complying with the directives enumerated herein shall be vested in the Mayor. 4. Each Department Administrator has the authority to expend City funds within approved budget authority and in accordance with procedures prescribed by the Mayor's Office, and to recommend spending requests within the parameters of the approved budget process to the Mayor. Accounting Records and Reports 1. Basis of Accounting a. The City's Comprehensive Annual Financial Report (CAFR) on its financial activity shall be presented in compliance with Generally Accepted Accounting Principles (GAAP) as defined by the Governmental Accounting Standards Board (GASB). 1 Financial Management Policies 2. Basis of Budget a. The City budget is presented on a cash basis of accounting, with allowance for processing time at year-end. 3. Fund Accounting a. The City of Renton's accounting and budgeting systems use a fund accounting consistent with guidance provided by the GASB and the Washington State Auditor's Office. b. The funds are grouped into categories: General Fund, Special Revenue, Debt Service, Capital Projects, Enterprise, Internal Service, and Fiduciary/Trust. c. The City Council shall create and eliminate funds as appropriate by separate ordinance, or through the budget ordinance. d. Funds shall either be "external" or"internal" for financial reporting purposes. i. Internal funds shall be separate sets of accounts for the purpose of enhancing internal management control only. These funds shall reside within an external fund. For cash management purposes, internal funds may rely on their related external fund without payment of interest or violation of the City's cash management policies. (See Interfund Loan policy for further clarification). e. The City's financial accounting system shall assure that the status and transactions of each account and their relationship to budget authority is clear. 4. Financial Reporting a. The CAFR shall be timely and comprehensive and meet or exceed professional industry standards. b. The City's budget documents shall provide for comparison with prior years. c. Revenue and expenditure reports shall be prepared monthly and be available on the City's website. d. A written analysis of the City's monthly report shall be prepared quarterly, coordinated with the Chief Administrative Officer and Mayor, reviewed with the City Council, and available on the City's website. e. All budget amendments shall be included in the monthly report. f. Any outstanding interfund loans shall be disclosed in the quarterly report. 5. Audit a. The City shall commission an annual audit of its financial reports and related records to be conducted by the Washington State Auditor's Office. b. At the conclusion of the audit, the auditor shall be available to brief the City Council on the results. c. The results of the audit shall be available to the public. Policy on Stabilization Funds Sufficient fund balances and reserve levels are important in the long-term financial stability of the City. 1. The City shall maintain reserves required by law, ordinance and/or bond covenants. a. General Government i. The City shall maintain reserves in the General Government Funds of at least 10% of total budgeted operating expenditures. ii. In addition, the City shall maintain an additional reserve as a part of the City's Risk Management Funds in a minimum amount of$5,000,000. C:\DOCUME-1\MNeumann\LOCALS-1\Temp\Financial Policies Fund Updates_070619.doc 2 Financial Management Policies iii. In addition, the City shall maintain an "Anti-Recessionary Reserve" in an amount of at least 2% of General Government budgeted operating expenditures. Expenditures utilizing the "Anti Recessionary Reserve" require a two-thirds majority vote of the City Council. b. The City shall maintain one year payments in voted general obligation debt service funds. c. The City shall maintain reserves in the Enterprise Funds as follows: i. Water Utility Fund: 12% - 25% of total budgeted operating expenses ii. Golf Fund—25% - 50% of total budgeted operating expenses. iii. All other Enterprise Funds: 10% - 20% of total budgeted operating expenses d. Reserve balances of other funds shall be set through the budget process in an amount consistent with the purpose and nature of the fund. 2. Replacement reserves shall be established for equipment, and computer software should the need continue beyond the estimated initial useful life, regardless of whether the equipment is acquired via lease, gift or purchase. Service charges paid by City departments to the appropriate Internal Service funds should include an amount to provide for replacements. Financial Planning 1) The City shall maintain a long-term (five year) financial planning model. a) The financial planning model shall: i) be based on the currently adopted budget; ii) utilize these policies; iii) be based on assumptions and drivers realistically expected to occur; iv) clearly document the assumptions and drivers used and the results of the use of such assumptions and drivers; v) be designed in such a way to permit analysis of alternative strategies; vi) relate to the related plans of the City to include Service Delivery Plans, Comprehensive Plans, Master Plans, etc.; and vii) shall be prepared for the General Government and such other funds as the deemed necessary. 2) Budget development a) The City shall prepare an annual budget that is consistent with: i) state law; ii) the long-term financial planning model; iii) these policies; and iv) industry best practices. b) The City of Renton's annual budget shall be prepared using the following schedule and process as a general guide: i) Review stakeholder input such as surveys, public forums, neighborhood meeting notes and business community communication. ii) The Mayor, City Council and Chief Administrative Officer will conduct a goal- setting retreat with the Department Administrators updating the Business Plan and other policy guidance. C:\DOCUME-1\MNeumann\LOCALS-1\Temp\Financial Policies Fund Updates_070619.doc 3 Financial Management Policies iii) The City Council and Administration will meet to review and discuss the prior year's audited results, current year budget status, next budget schedule, process, budget guidelines and budget preparation items of interest. iv) The Finance & IS Administrator prepares the budget preparation instructions and meets with Department Administrators to distribute budget instructions and discuss budget preparation. (1) The instructions will include policy priorities, estimates of compensation adjustments, internal service and indirect charges. v) Departments will provide to the Finance & IS Department budget estimates and requests conforming to the budget instructions. vi) The Mayor submits a proposed balanced Preliminary Budget to the City Council in conformance with state law. vii) The City Council conducts public hearings on the proposed budget in conformance with state law. viii) The City Council sets the City's property tax levies. ix) The City Council adopts the final budget ordinance. x) The Final Budget Document is published and posted to the City website. c) Budget amendments should be presented for consideration when the need arises. i) Budget authority shall be at the fund level except for the General Government Funds where it shall be at the department level. ii) Changes resulting in a need to revise the appropriation authority shall be presented as they occur. 3) Revenues a) Revenue forecasts shall assess the full spectrum of resources available to finance City programs and services. b) The City shall consider the diversification of revenue as a strategy when developing its financial plans. c) Should an economic downturn develop that results in (potential) revenue shortfalls or fewer available resources, the City will make appropriate adjustments to its budget. d) Revenue estimates shall be based on forecasting methods recommended by the Government Finance Officers Association (GFOA) and will typically be more likely to be conservative rather than aggressive. 4) Expenditures a) Priority shall be given to expenditures that will improve productivity. 5) Capital Improvements a) A comprehensive six-year plan for City capital improvements shall be prepared annually and adopted by the City Council as part of the City budget. i) All projects included in the Capital Improvement Program (CIP) shall be consistent with the City's Comprehensive Plan. ii) The Capital Improvement Program shall be prepared in consultation with Council Committees for ongoing capital improvements. b) All proposed capital improvement projects shall include a recommended or likely source of funding. C:\DOCUME-1\MNeumann\LOCALS-1\Temp\Financial Policies Fund Updates_070619.doc 4 Financial Management Policies c) Private development (including residential, commercial and industrial projects) shall pay its fair share of the capital improvements that are necessary to serve the development in the form of system development charges, impact fees, mitigation fees, or benefit districts. d) Capital project proposals should indicate the project's impact on the operating budget, including, but not limited to, long-term maintenance costs necessary to support the improvement. e) Capital projects shall be budgeted for on a project life basis (rather than fiscal year). Policy on Fees and Charges 1. The City shall annually review all fees for licenses, permits, fines, rates and other miscellaneous charges as part of the budget process. 2. User charges and fees shall be established based at a percentage of the full cost of providing the service, unless otherwise provided by statute or regulation. a) Full cost incorporates direct and indirect costs, including operations and maintenance, overhead, and charges for the use of capital facilities. b) Other factors for fee or charge adjustments may also include the impact of inflation, other cost increases, the adequacy of the coverage of costs, and current competitive rates. 3. Proposed rate adjustments, user charges and fees shall be presented to the City Council for approval each year as part of the Mayor's proposed Preliminary Annual Budget to the Council. 4. The City shall rigorously collect all amounts due. Policy on Utility Funds 1. The City shall establish and maintain separate utility operating and capital improvement funds and budgets for each of its utility operations. 2. Utility rate studies shall be conducted every six years to update assumptions and ensure the long-term solvency and viability of the City's Utilities. 3. Utility rates and capital fees shall be reviewed annually and necessary adjustments made to avoid major rate increases. 4. The City shall use system development charges, grants and low interest loans to fund capital projects where possible. Overall, the utilities should maintain a debt to equity ratio of 60/40. a) Each Utility should fund an amount of the cost equal to the annual "depreciation expense" of capital assets less debt service principal payments. 5. System Development Charges (SDCs) shall be established at levels to ensure that all customers seeking to connect to the City's utility systems shall bear their equitable share of the cost of both the existing and future systems. 6. Debt financing of utility improvements will be consistent with the utility master plans, council rate policies and other factors so as to smooth the effect of major improvements on utility rates. 7. The City shall strive to maintain minimum debt service "coverage" with the net revenue (gross operating revenue of the Utilities less operating and maintenance expenses) of the combined Utilities being 1.25 - 1.5 times the actual debt and the net revenue of the individual Utility being at least 1.25 times the actual debt. C:\DOCUME-1\MNeumann\LOCALS--I\Temp\Financial Policies Fund Updates_070619.doc 5 Financial Management Policies Policy on Debt Issuance and Management 1. Long-term borrowing shall be confined to capital improvements or similar projects with an extended life when it is not practical to be financed from current revenues. The City shall not use long-term debt to finance current operations. 2. Debt payments shall not extend beyond the estimated useful life of the project being financed. The City shall keep the average maturity of general obligation bonds at or below fifteen years, unless special circumstances arise warranting the need to extend the debt schedule. 3. The City shall work to maintain strong ratings on its debt including maintaining open communications with bond rating agencies concerning its financial condition. 4. With Council approval, interim financing of capital projects may be secured from the debt financing market place or from other funds through an interfund loan as appropriate in the circumstances. 5. The City may issue interfund loans when appropriate and consistent with a separately adopted City Council policy on the subject. 6. When issuing debt, the City shall strive to use special assessment, revenue or other self- supporting bonds in lieu of general obligation bonds. 7. Long-term general obligation debt shall be utilized when necessary to acquire land or capital assets based upon a review of the ability of the City to meet future debt service requirements. The project to be financed should also be integrated with the City's long-term financial plan and Capital Improvement Program. 8. General obligation debt should be used when the related projects are of a benefit to the City as a whole. a) General Obligation Bond (Voted): • Every project proposed for financing through general obligation debt should be accompanied by a full analysis of the future operating and maintenance costs associated with the project. b) Limited Tax General Obligation Bond (Non-Voted): • The City should avoid issuing general obligation (non-voted) debt beyond eighty percent (80%) of its general obligation debt capacity. 9. The City shall use refunding bonds where appropriate when cost savings can be achieved of at least 4% (NPV), restructuring its current outstanding debt and/or improving restrictive bond conditions. 10. The City's financial team for the issuance of debt shall consist of the Council, Mayor, CAO, Finance & IS Administrator, applicable department management (related to the projects to be financed), City Legal Counsel, designated bond counsel, financial advisor and underwriter in order to effectively plan and fund the City's capital improvement projects. a) Through a competitive selection process conducted by the Finance & IS Administrator with consultation with the Mayor, Chief Administrative Officer and Legal Counsel, the City Council shall approve the most qualified financial advisor / underwriter and bond counsel. b) These services shall be regularly monitored by the Finance & IS Administrator. 11. The City shall evaluate the best method of sale for each proposed bond issue. a) When a negotiated sale is deemed advisable (in consultation with the Mayor and City Council) the Finance & IS Administrator shall negotiate the most competitive pricing on debt issues and broker commissions in order to ensure the best value to the City. C:\DOCUME-I\MNeumann\LOCALS-I\Temp\Financial Policies Fund Updates_070619.doc 6 Financial Management Policies b) When a negotiated sale is used, the City shall use an independent financial advisor to advise the City's participants in matters such as structure, pricing and fees. 12. The City shall comply with IRS regulations concerning use of, and reinvestment of bond proceeds. a) The City shall monitor and comply with IRS regulations with regard to potential arbitrage earnings. If arbitrage earnings are believed to be above amounts provided by IRS regulations, the City will set aside earnings in order to pay the appropriate amount to the federal government as required by IRS regulation. 13. The City shall provide full secondary market disclosure related to outstanding debt. Related Policies • Investment Policy • Contracting Policy (Purchasing Authority) • Interfund Loans C:\DOCUME—I\MNeumann\LOCALS-1\Temp\Financial Policies Fund Updates_070619.doc Financial Management Policies City Funds and Fund Structure Key Report 000 General A E 001 Community Services (formerly 101) A I (000) 003 Street(formerly 103) A I (000) 006 Library/Museum(formerly 106) A I (000) 004 Community Dev Block Grant A I (000) 010 Fire Memorial A I (000) 011 Fire Health and Wellness A 1 (000) 201 Ltd GO Bonds Gen Govt Misc Debt A I (215) 207 1978 Limited GO Bonds A 1 (215) 215 Gen Govt Misc Debt Service A E Total General Government SPECIAL REVENUE FUNDS: E 102 Arterial Street E 108 Leased Properties Fund E 110 Hotel Motel 118 Reserve for Paths &Trails E E 125 1`)/0 For Art E 127 Cable Communication E 131 Park Memorial DEBT SERVICE FUNDS: 219 1989 Unlimited GO Bonds E CAPITAL PROJECT FUNDS (CIP): 303 Community Dev Mitigation E E 304 Fire Mitigation 305 Transportation Mitigation E E 316 Municipal Facilities CIP E 317 Transportation CIP E 318 Landing CIP C:\DOCUME-1\MNeumann\LOCALS-1\Temp\Financial Policies Fund Updates_070619.doc 8 Financial Management Policies City Funds and Fund Structure (continued) ENTERPRISE FUNDS: Key Report 402 Airport E 403 Solid Waste Utility E 404 Golf Course E 405 Water Utility B E 406 Waste Water Utility B I (405) 407 Storm Water Utility B I (405) 416 King County Metro B I (405) 422 Airport CIP I (402) 424 Golf Course Capital I (404) 425 Water Utility Construction B I (405) 426 Waste Water Utility Construction B I (405) 427 Storm Water Utility Construction B I (405) 451 Waterworks Revenue Bond B I (405) 461 Waterworks Bond Reserve B I (405) 471 Rate Stabilization B I (405) 481 2004 Water/Sewer Bond B I (405) INTERNAL SERVICE FUNDS: 501 Equipment Repair/Replacement E 502 Insurance E 503 Information Services I (501) 512 Insurance, Healthcare I (502) 522 Insurance, Leoffl Retirees HC I (502) FIDUCIARY FUNDS: 611 Firemen's Pension E 650 Special Deposits E ACCOUNTING FUNDS: GWS Government-wide Statements Ia 901 Bank Surplus Ia 910 General Fixed Asset Account Group Ia 950General Long-term Debt Account Group Ia 631 Claims Clearing Ia 632 Payroll Clearing Ia C:\DOCUME-1\MNeumann\LOCALS-1\Temp\Financial Policies Fund Updates_0706I9.doc 9 Financial Management Policies A. General Government Funds share general revenues. Therefore, no interest shall be charged for loans between funds. B. Water Utility Funds shall be managed as a system such that balance sheet accounts are merged for management and reporting purposes. E. External Fund for Reporting Purposes I. Internal Fund for Management Purposes Ia. Internal Fund for Accounting Purposes C:\DOCUME-1\MNeumann\LOCALS—I\Temp\Financial Policies Fund Updates_070619.doc 10 APPROVED BY 1 TRANSPORTATION/AVIATION COMMITTEE CITY COUNCIL COMMITTEE REPORT Date,...g 2&WOO ' August 20, 2007 2007 Walkway Improvement Project Contract with Pacific Engineering Design, LLC (August 13, 2007) The Transportation Committee recommends concurrence in the staff recommendation to approve a design contract with Pacific Engineering Design for the 2007 Walkway Improvement Project in the amount of$152,056.63 to be completed December 31, 2008. The Committee further recommends that the Mayor and City Clerk be authorized to sign the design contract with Pacific Engineering Design. Marcie Palmer, Chair andy Corman, Vice-Chair Don Persson Member cc: Ryan Plut,Transportation Design Project Manager Connie Brundage,Transportation Admin Secretary Filo H:Trans/Admin/Committee Reports/2007/2007 Walkway Improvement Project " APP OVED BY - .. TRANSPORTATION/AVIATION COMMITTEE CITY COUNCIL COMMITTEE REPORT Date !010-2007 August 20,2007 2008-2013 Six-Year Transportation Improvement Program(TIP) and Arterial Street Plan Update (August 6, 2007) The Transportation Committee recommends concurrence in the staff recommendation to approve the annual updates to the Six-Year Transportation Improvement Program and,the 2008 Arterial Street Plan. The Committee further recommends that the resolution regarding this matter be presented for reading and 71/1 1 Marcie Palmer, Chair 1 Randy Corman, ice-Chair Don Persson Member cc: Juliana Fries,Program Development Coordinator Constance Brundage,Transportation Administrative Secretary H:Trans/Admin/Committee Reports/2007/Six-Year TIP APPROVER BY .1 UTILITIES COMMITTEE CITY COUNCIL COMMITTEE REPORT Date S-AO-02007'i August 20, 2007 Utility Construction Agreement with Washington State Department of Transportation (WSDOT) for the Construction of the Relocation of the Water Line at Benson Road South and I-405 (August 13, 2007) The Utilities Committee recommends concurrence in the staff recommendation to authorize the Mayor and City Clerk to execute a utility construction agreement with the Washington State Department of Transportation for the construction of the waterline relocation at Benson Road and I-405. The Committee further recommends that the resolution regarding this matter be presented for reading and adoption. Dan Clawson, Chair NIP ,, Tern B 'ere, Vice-Chair i&atti)a a Air- Denis W. Law, Member cc: Gregg Zimmerman,PBPW Administrator Peter Hahn,Deputy PBPW Administrator—Transportation Lys Hornsby,Utility Systems Director Abdoul Gafour,Water Utility Supervisor Keith Woolley,Transportation Planning and Programming Connie.Brundage,Transportation Administrative Secretary H File Sys\WTR-Drinking Water Utility\WTR-27-Water Project Files\WTR-27-3344-Benson Rd&1-405 Water Line Relocation\UT-XXX X-Utility Construction Agreement w WSDOT\Corm ittee Report.doc\AG APPROVED BY 1 UTILITIES COMMITTEE CITY COUNCIL 1 COMMITTEE REPORT August 20, 2007 Water Line Relocation for Realignment of Benson Road South and I-405 Overpass (August 13, 2007) The Utilities.Committee recommends concurrence in the staff recommendation to award the construction contract for the Water Line Relocation for Realignment of Benson Road South and I-405 Overpass to the low bidder, Ceccanti, Inc. in the amount of$869,421.66. ;) Dan.Clawson, Chair Te . Briere, Vice-Chair - ILI/WO(A). 4/17 Denis W. Law, Member cc: Gregg Zimmerman,PBPW Administrator Peter Hahn,Deputy PBPW Administrator—Transportation Lys Hornsby,Utility Systems Director Abdoul Gafour,Water Utility Supervisor Keith Woolley,Transportation Planning and Programming H:\File Sys\WTR-Drinking Water Utility\WTR-27-Water Project Files\WTR-27-3344-Benson Rd&1-405 Water Line Relocation\Construction Contract\Committee Report.doc\A(imd Ayenda -k/e 111 %2 a (gyp h Gfl Z CITY OF RENTON, WASHINGTON addp fey/ RESOLUTION NO. — A RESOLUTION OF THE CITY OF RENTON, WASHINGTON, (QPfaaA / OPPOSING THE PROPOSED 2007 "ROADS AND TRANSIT" was 4aa' REGIONAL TRANSPORTATION BALLOT MEASURE. WHEREAS, according to the 2000 report of the Washington State Blue Ribbon Commission on Transportation, traffic congestion costs Puget Sound residents over $2 billion annually and undermines economic prosperity, environmental quality, and the quality of life for individuals and families; and WHEREAS, the ability of Renton to remain the "Center of Opportunity" where families and businesses thrive is dependent on established land use and transportation plans consistent with the Washington State Growth Management Act, Renton's Comprehensive Plan, the City's 2007-2012 Transportation Improvements Program, and Renton's longstanding commitment to preserve and protect its neighborhoods; and WHEREAS, investing in transportation improves the Puget Sound region's economy by moving people and goods faster and more reliably; and WHEREAS, improving freight mobility will allow the region to compete in an expanding global economy; and WHEREAS, the Washington State Legislature created the Regional Transit Authority, Sound Transit, in 1992 and the Regional Transportation Investment District in 2002 and their related regional taxing authorities to allow the central Puget Sound region to plan for and raise sufficient revenues for important transportation projects; and WHEREAS, during the 2006 legislative session, the Washington State Legislature found that increased investments in both roads and transit are necessary to relieve traffic congestion 1 RESOLUTION NO. and improve mobility, and required Sound Transit and the Regional Transportation Investment District to submit to the voters a transportation plan which addresses these goals; and WHEREAS, the Regional Transportation Investment District's roads plan, and Sound Transit's Phase Two plan, are combined and is an all or nothing ballot proposition; and WHEREAS, the ballot proposition not only includes new taxes for Sound Transit Phase Two, and the Regional Transportation District, but also includes extension of Sound Transit Phase One taxes such that the total taxes result in a 1% sales tax increase plus an .8% motor vehicle excise tax increase; and WHEREAS, the bond issue is a 50 year transportation tax commitment, 90% of which is dedicated to public transit which will have only an insignificant effect on road congestion reduction; and WHEREAS, road congestion is the number one concern for this region while the ballot proposition results in an inadequate commitment to current and projected road congestion; and WHEREAS, the central link light rail segment is now two and one-half times the original cost estimate, and is badly behind schedule and has resulted in moving a portion of the initial segment into Sound Transit Phase Two; and WHEREAS, the Sounder Phase is running only four round trips between Seattle and Tacoma when the original proposal was to have nine round trips by this time, and is running only two round trips between Seattle and Everett when six round trips were proposed to be running by this time, and the capital costs are now double the original estimate; and WHEREAS, the Regional Express Bus System proposed by Sound Transit has now been significantly cut with elimination of thirty-eight of the proposed projects; and, 2 - RESOLUTION NO. WHEREAS, expansion of the highly successful Regional Express Bus System has been rejected by this ballot issue, including the high priority adopted Bus Rapid Transit System in the 1-405 corridor; and WHEREAS, badly needed projects have been partially or fully excluded from the Regional Transportation Investment District's proposal including no funding for the Alaskan Way Viaduct Project, no funding for I-5 improvements, no funding for Valley Freeway (SR167) expansion, no funding for expansion of I-405 north of the Bellevue CBD, no funding for the SR- 520 terminus in Redmond, no funding for the US-2 Monroe bypass and expansion east through Goldbar, and incomplete funding for SR-509 extension to SeaTac, incomplete funding for SR- 167 extension to the Port of Tacoma and incomplete funding for SR-520 bridge replacement; WHEREAS, Sound Transit Phase Two is now 95% dedicated to light rail extensions which will divert only .5% of daily traffic and 1% of peak period auto users to public transit; and WHEREAS, Sound Transit Phase One continued into the Phase Two package will do little to address regional congestion, but will merely be a downtown Seattle-centric light rail transit overlay to the already existing express bus transit system; and NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF RENTON, WASHINGTON, DOES RESOLVE AS FOLLOWS: SECTION I. The above findings are true and correct in all respects. SECTION II. The City Council of the City of Renton hereby declares its opposition to Ballot Proposition # , the Regional Roads and Transit System proposition which will be presented to the voters at the November 6, 2007 General Election. 3 RESOLUTION NO. PASSED BY THE CITY COUNCIL this day of , 2007. Bonnie I. Walton, City Clerk APPROVED BY THE MAYOR this day of , 2007. Kathy Keolker, Mayor Approved as to form: Lawrence J. Warren, City Attorney RES:1295:08/09/07:ch 4 lido pled /ao,Wa7 CITY OF RENTON, WASHINGTON RESOLUTION NO. 3 902 A RESOLUTION OF THE CITY OF RENTON, WASHINGTON, UPDATING THE CITY'S SIX-YEAR TRANSPORTATION IMPROVEMENT PROGRAM 2008-2013. WHEREAS, the City of Renton has heretofore adopted a "Six-Year Transportation Improvement Program" pursuant to RCW 35.77.010, and the plan and program having been amended and modified from time to time as authorized by law; and WHEREAS, the City Council, after recommendation of the Planning/Building/Public Works Department, held a public hearing on August 20, 2007, after notice to the public as provided by law for the purpose of considering adoption, modification, and amendments of the plan and program; and WHEREAS, at the public hearing held on August 20, 2007, due consideration was given to the proposed changes and amendments for the purpose of updating the plan and program; NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF RENTON, WASHINGTON, DOES RESOLVE AS FOLLOWS: SECTION I. The City's "Six-Year Transportation Improvement Program" and the City's "Arterial Street Plan" are hereby further amended and modified, all as more particularly shown on the attached Exhibits "A," "B" and "C" incorporated herein as if fully set forth. SECTION H. The plan and program, as evidenced by said Exhibits, shall be and constitute the City's "Six-Year Transportation Improvement Program" and the City's "Arterial Street Plan," and shall remain in full force and effect until further revised, amended, and modified as provided by law. 1 RESOLUTION NO. SECTION M. The Administrator of the Department of Planning/Building/Public Works and the City Clerk are hereby authorized and directed to file this Resolution, together with the Exhibits, with the Director of Highways for the State of Washington and as otherwise provided by law. PASSED BY THE CITY COUNCIL this day of , 2007. Bonnie I. Walton, City Clerk APPROVED BY THE MAYOR this day of , 2007. Kathy Keolker, Mayor Approved as to form: Lawrence J. Warren, City Attorney RES.1289:07/24/07:ch 2 Item Ig Op*ior 2 CITY OF RENTON, WASHINGTON fido led fevXoo7 RESOLUTION NO. 3 903 A RESOLUTION OF THE CITY OF RENTON, WASHINGTON, DESIGNATING THE RENTON REPORTER AS THE CITY'S OFFICIAL NEWSPAPER. WHEREAS, pursuant to Section 35A.21.230 of the Revised Code of Washington (RCW), each code city shall designate by resolution which newspaper shall be the official newspaper of general circulation in the City and shall have the qualifications prescribed by Chapter 65.16 RCW; and WHEREAS, the City of Renton has asked for requests for proposals from newspapers to be the official newspaper; and WHEREAS,the Renton Reporter submitted the most advantageous proposal. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF RENTON, DOES RESOLVE AS FOLLOWS: SECTION I. The above findings are true and correct in all respects. SECTION H. The Renton Reporter is designated as the official newspaper for the City of Renton, effective immediately. PASSED BY THE CITY COUNCIL this day of , 2007. Bonnie I. Walton, City Clerk 1 - RESOLUTION NO. APPROVED BY THE MAYOR this day of , 2007. Kathy Keolker, Mayor Approved as to form: Lawrence J. Warren, City Attorney RES.1231 a:05/15/07:ch 2 rich 0004 I CITY OF RENTON, WASHINGTON Mgt O d oph,d RESOLUTION NO. OplOn 02 adopid In ste zd. A RESOLUTION OF THE CITY OF RENTON, WASHINGTON, DESIGNATING THE SEATTLE TIMES AS THE CITY'S OFFICIAL NEWSPAPER. WHEREAS, pursuant to Section 35A.21.230 of the Revised Code of Washington (RCW), each code city shall designate by resolution which newspaper shall be the official newspaper of general circulation in the City and shall have the qualifications prescribed by Chapter 65.16 RCW; and WHEREAS, the City of Renton has asked for requests for proposals from newspapers to be the official newspaper; and WHEREAS, The Seattle Times submitted the most advantageous proposal. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF RENTON, DOES RESOLVE AS FOLLOWS: SECTION I. The above findings are true and correct in all respects. SECTION II. The Seattle Times is designated as the official newspaper for the City of Renton, effective immediately. PASSED BY THE CITY COUNCIL this day of , 2007. Bonnie I. Walton, City Clerk 1 RESOLUTION NO. APPROVED BY THE MAYOR this day of , 2007. Kathy Keolker, Mayor Approved as to form: Lawrence J. Warren, City Attorney RES.1231:05/08/07:ch 2 - /dopled 8-20-07007 CITY OF RENTON, WASHINGTON RESOLUTION NO. 3 A RESOLUTION OF THE CITY OF RENTON, WASHINGTON, AUTHORIZING THE MAYOR AND CITY CLERK TO ENTER INTO AN INTERLOCAL AGREEMENT WITH WSDOT FOR THE CONSTRUCTION OF THE RELOCATION OF A WATER LINE IN BENSON ROAD, ENTITLED "UTILITY CONSTRUCTION AGREEMENT-WORK BY UTILITY- ACTUAL COST". WHEREAS, RCW 39.34 authorizes cities and counties to enter into interlocal agreements, as necessary, to work together on issues requiring joint action of the parties; and WHEREAS, the Washington State Department of Transportation ("the State") is planning the improvements of I-405 from approximately milepost 2.76 to milepost 3.12, along Benson Road; and WHEREAS, the improvements include the realignment of the I-405 overpass at Benson Road and the installation of new storm water detention and treatment facilities within existing City rights of way; and WHEREAS, a City waterline must be relocated in order to construct the improvements; and WHEREAS, the City has completed the design of the waterline relocation and has received approval from the State to advertise the project for public bids; WHEREAS, the City has agreed to manage the contract for the construction of the project; WHEREAS,the City and the State have agreed to share the preliminary construction cost and construction administration cost proportional to their respective property rights; and 1 - - - RESOLUTION NO. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF RENTON, WASHINGTON, DOES RESOLVE AS FOLLOWS: SECTION I. The above findings are true and correct in all respects. SECTION H. The Mayor and City Clerk are authorized to enter into an interlocal agreement with the Washington State Department of Transportation entitled"Utility Construction Agreement -Work by Utility-Actual Cost." PASSED BY THE CITY COUNCIL this day of , 2007. Bonnie I. Walton, City Clerk APPROVED BY THE MAYOR this day of , 2007. Kathy Keolker, Mayor Approved as to form: Lawrence J. Warren, City Attorney RES:1292:08/07/07:ch 2 Congestion Relief & Bus Rapid Transit Projects 1=405 Projects Bothell -Canyon Park Freeway Station Constructs bus stop and bus -only lane on the southbound 1-405 on -ramp from northbound SR 527 in Bothell. Also builds covered pedestrian bridge over 1-405 from the new bus stop to the Canyon Park park -and -ride lot. Environmental documentation: 2000 Construction start: 2006 Open to traffic: 2007 Funding: Sound Transit SR 520 to 1-5 Widening Project Adds to the new lanes constructed by the Kirkland Nickel Stage 1 Project so there will be one continuous lane in each direction between NE 70th Street in Kirkland and SR 522 in Bothell. Also adds a northbound lane between NE 195th Street and SR 527 in Bothell and builds a bridge at NE 132nd Street in Kirkland. WSDOT is evaluating the option of implementing HOT (high -occupancy toll) lanes on 1-405 between Bellevue and Lynnwood. HOT lanes would allow drivers the option of getting a faster, more reliable trip by paying a toll. Toll rates would be set electronically to ensure that transit and other traffic in the HOT lanes keep flowing at 45 mph or faster, even when the regular lanes are congested. Drivers would always have the option of using the general lanes free of charge. Environmental documentation: In progress (2008) Construction start: 2010 Open to traffic: 2012 Funding: 2003, 2005 legislative funding NE 132nd Street Interchange Adds north and southbound ramps from the NE 132nd Street Bridge. Environmental documentation: 2010 Funding: 2005 legislative funding N 228th St. SW — SNOHOMISH COUNTY - - — — — — — — — - — — — — —— -—— — — — — — — KING COUNTY NE 195th St. How a project gets funded The state legislature appropriates funds for 1-405 projects, using a mix of gas tax revenue and federal transportation dollars. As this map demonstrates, Nickel funds (awarded in 2003 paid for with a $0.05 per gallon gas tax) and Transportation Partnership Act dollars (awarded in 2005 and paid for with a $0.095 per gallon gas tax) are addressing some of the chokepoints on 1-405. *The dashed gray line on the map represent projects that WSDOT has proposed for the next round of improvements. These projects still require funding before they can be constructed. As of this printing, these projects are included as part of the Regional Transportation Investment District (RTID) project list. RTID, which could be presented to voters this November, asks voters to consider whether to authorize funding for these and other regional transportation projects. Totem Lake Freeway Station I NE 160th Sr. Constructs HOV on- and off ramps in the 1-405 median at NE 128th Street in Kirkland and a bridge at NE 128th Street 1,1.32nd to provide a new east -west route over the freeway. Construction start: 2005 Roadway Improvements:Projects Funded Open to traffic: 2007 as of 2006 Funding: 2003 legislative funding, Sound Transit Next Round of ProposedNE ®® Improvements 128tn sr. Arterial Connection NE 1 trSt:" Kirkland Nickel Stage 1 Project � Interchange NE 116th St. Improves the NE 116th Street Interchange on I-405 in Transit-HOV Improvements: z Kirkland and adds a new lane in each direction from NE 85th Street to NE 124th Street. Funded HOV OST Direct Access Point N Environmental documentation: 2005 Construction start: 2006 Transit Station ro Open to traffic: 2007 b ? Park & Ride Lots NE to sr. Funding: 2003 legislative funding SR 520 to NE 8th Street Southbound Braided WASHNGTON Crossing Project Complements NE 8th Street to SR 520 Northbound Braided Crossing Project: constructs new ramps to separate SR 520 traffic entering southbound 1-405 from F traffic exiting to downtown Bellevue. Funding: Funding is needed. w Q NE 10th Street Bridge Crossing WSDOT is partnering with the City of Bellevue to build a new freeway crossing at NE 10th Street in Bellevue to provide improved access to the north end of downtown Bellevue and relieve congestion at the NE 8th Street interchange. Environmental documentation: 2008 Construction start: 2006 Open to traffic: 2009 (Stage 1 by City of Bellevue open 2008) Funding: 2005 legislative funding, federal and local funding Renton to Bellevue Project Adds two new lanes in each direction between SR 169 in Renton and 1-90 in Bellevue and rebuilds eight interchanges. Environmental documentation: 2007 Funding — Partially funded with 2005 legislative funding, but additional funding is needed. 1-5 to SR 169 Stage 1 Widening Project Constructs one new 1-405 lane in each direction between 1-5 in Tukwila and SR 167 in Renton. Adds a new SR 167 southbound lane to S 180th Street and extends the SR 167 southbound HOV lane north to 1-405. Environmental documentation: 2007 Construction start. 2007 Open to traffic: 2010 Funding: 2003, 2005 legislative funding Springbrook Creek Wetland and Habitat Mitigation Bank An innovative partnership between WSDOT and City of Renton to address the effects of 1-405 widening and development in Renton by re-establishing and enhancing more than 130 acres of wetlands. Also builds a public -use interpretive trail throughout the site. Environmental documentation: 2006 Construction start. 2006 Open:2008 I f f d' SE 180th St. 6th St. N 8th Sr. 12th St. NE 4th St. Ave. SE NE 8th Street to SR 520 Northbound Braided Crossing Project Builds new ramps to separate northbound 1-405 traffic exiting to SR 520 from traffic entering northbound 1-405 from downtown Bellevue. Adds a new on -ramp to SR 520 from NE 10th Street and a new eastbound lane along SR 520 to separate the on -ramp from northbound 1-405 and the off -ramp to 124th Avenue NE. Environmental documentation: In progress (2008) Construction start. 2009 Open to traffic: 2012 Funding: 2005 legislative funding 112th Avenue SE to SE 8th Strc Widening Project Constructs one southbound lane from SE 8th Street j 1-90 and one northbound lane from 112th Avenue SE SE 8th Street in south Bellevue; reconstructs the northbi structure over Coal Creek Parkway; and builds a new 0 lane southbound bridge over 1-90. Environmental documentation: 2006 Construction start. 2007 Open to traffic: 2009 Funding: 2003, 2005 legislative funding µ Tukwila to Renton NE44th Improvement Project ' (SR 167 Interchange) Reconfigures the 1-4051SR 167 interchange and N 30th St. adds new HOV ramps between 1-405 and SR 167. Environmental documentation: In progress (2008) j Funding: Funding is needed. NE 1-5 to SR 169 Stage 2 Widening Project and SR 515 Interchange Constructs one new 1-405 lane in each direction between SR 167 and SR 169 in Renton. Builds new 1-405 interchange east of the 1-405/SR 167 interchange at Talbot Road (SR 515) to improve access to downtown Renton and relieve traffic demand on the 1-405 interchanges at SR 167 and SR 169. Environmental documentation: 2008 Construction start. 2009 Open to traffic: 2011 Funding: 2003, 2005 legislative funding L _ Project Box Color Coding: � Funded Future Project Environmental Assessment Permitting and Property Acquisition Under Construction Unfunded* Funding. 2003 legls a the un mg I ( v J AMW Washington State Department of Transportation May 2007 ■ ■ ■ ■ a CD•s iz ',� ''� CL yCL s 3 o `n • fD CD �- CD Q ¢' ;;C '.~7 Q•- S ro vroi < N '00 z 3* ^t vi C C 1I1 (D ° � Q- m ro (A CD O (n�p Q UQ A� `C Q "t 't n C O �' p Z O rD� CLC C �. 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