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AGENDA
Transportation Committee Regular Meeting
4:30 PM - Monday, December 14, 2020
Video-conference
1. Airport Annual Lease with BHC
a) AB - 2768 Public Works Administration recommends approval of Amendment No. 06-20
to LAG-93-004, lease with BHC, Inc., extending the lease to December 31, 2024 and
increasing annual lease revenue to $33,998.62 due to a CPI adjustment, for 48,777.51
square foot parcel at the Renton Municipal Airport.
2. Emerging Issues in Transportation
a) Metro Updates Presentation
b) Updated Projects List
Currently, due to the spread of COVID-19, all regularly-scheduled committee meetings will be held as necessary via
video-conference. City hall is closed to the public.
If you would like to attend this week's meeting remotely, you can do so by going to
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AB - 2768
City Council Regular Meeting - 07 Dec 2020
SUBJECT/TITLE: Amendment No. 06-20 to Lease Agreement LAG 93-004 with BHC, Inc.
RECOMMENDED ACTION: Refer to Transportation (Aviation) Committee
DEPARTMENT: Public Works Administration
STAFF CONTACT: Manny Cruz, Airport Business Coordinator
EXT.: 7478
FISCAL IMPACT SUMMARY:
Amendment No. 06-20 to LAG 93-004 with BHC Inc. will have an annual revenue of $33,998.62, with
scheduled increases based on the Seattle-Tacoma area Consumer Price Index-Urban (CPI-U) adjustments and
an appraisal to determine the value of the 48,778.51 square foot parcel.
SUMMARY OF ACTION:
BHC, Inc. currently leases a 48,778.51 square foot parcel on the Renton Municipal Airport. Amendment No. 5-
13 to LAG 93-004 established a rental rate of $0.62 per square foot for the period of October 13, 2013 through
October 28, 2018, subject to a rate increase based on the Consumer Price Index – Urban for the Seattle-
Tacoma area (CPI-U). The first such periodic adjustment was made as of October 28, 2018, for the ensuing 5-
year period ending October 28, 2023. The CPI-U of October 2018 compared to October 2013 was 12.36%.
This resulted in a new per square foot rent rate of $0.697 ($0.62 x 1.1236) and a new annual lease rate
effective October 28, 2018 of $33,998.62, plus leasehold excise tax. The new rental rate CPI was calculated in
mid-2019. Following calculation of the new rate, the first billing cycle to which the increased rate could be
invoiced was actually August 5, 2019 for September’s rent. The Finance Division then invoiced BHC, Inc. for
the rental rate in arrears between November 2018 and August 2019. The back rent was timely paid by BHC,
Inc. Due to staffing changes at the Airport, an agenda bill to adjust the annual rental rate has not been
submitted to Council for approval until now.
BHC, Inc. has fully and faithfully complied with all terms and conditions of the lease agreement making them
eligible for a 5-year lease extension. Per LAG 93-004, BHC, Inc. is exercising their option to extend this lease
agreement for a 5-year period that terminates December 31, 2024. BHC, Inc. is eligible for one additional 5-
year extension period if they decide to exercise that option to extend beyond December 31, 2024.
EXHIBITS:
A. Amendment No. 06-20
STAFF RECOMMENDATION:
Authorize the Mayor and City Clerk to execute Amendment No. 06-20 to LAG 93-004 with BHC, Inc. The fiscal
impact will result in an annual revenue of $33,998.62 with scheduled increases based on the Seattle-Tacoma
area Consumer Price Index-Urban (CPI-U) adjustments and an appraisal to determine the value of the
48,778.51 square foot parcel.
AGENDA ITEM #1. a)
LAG 93-004
Amendment 06-20
Amendment to Lease Agreement LAG 93-004 1
City of Renton to BHC, Inc.
AMENDMENT TO LEASE AGREEMENT
(City of Renton to BHC, Inc.)
THIS AMENDMENT to Lease Agreement LAG 93-004 is effective as of the last
date signed by the Parties below.
RECITALS:
WHEREAS, BHC, Inc. (hereinafter “Lessee”) has a Lease Agreement with the City
of Renton (hereinafter “Lessor”), LAG 93-004, executed on October 28, 1993, and
subsequently amended (LAG-93-004, together with its amendments, is hereinafter the
“Lease”); and
WHEREAS, the initial term of the Lease terminated on December 31, 2019; and
WHEREAS, Section 2.2.1 of the Lease provides Lessee with an option to renew as
follows: “Grant of Option to Extend term: In the event that Lessee has fully and
faithfully complied with all the terms and conditions of this Lease Agreement, then in
such event Lessor grants unto Lessee the right and option to renew or extend this
Lease, under the same terms and conditions provided herein, for two further periods of
five (5) years each. The first extended term, if elected, shall commence on the
expiration of the initial term hereof and terminate at midnight December 31, 2024. The
second extended term, if elected, shall commence on the expiration of the first
extended term and terminate at midnight December 31, 2029;” and
WHEREAS, in 2019, Lessee timely exercised its option to renew, and Lessor and
Lessee otherwise agreed that Lessee has met the Lease’s requirements to extend the
Lease term to midnight December 31, 2024; and
WHEREAS, the Renton Municipal Airport is undergoing a Master Plan update
which initially resulted in the Airport’s airport reference code increasing from B-II to D-
III which carries additional design standards promulgated by the Federal Aviation
Administration (“FAA”), including a wider Runway Object Free Area (“ROFA”) centered
over the Airport’s runway. Lessee acknowledges that, if imposed, the newly wider
ROFA would encroach into a portion of Lessee’s premises, but Lessee has declined to
reduce its premises to avoid such widened ROFA; and
WHEREAS, pursuant to Amendment #5-13 of the Lease, the Lease rental rate
was established at $0.62 per square foot on October 28, 2013 for the period through
October 28, 2018, subject to an increase after that date based on the Consumer Price
Index – Urban, for the Seattle-Tacoma area (“CPI-U”), the first such periodic adjustment
AGENDA ITEM #1. a)
LAG 93-004
Amendment 06-20
Amendment to Lease Agreement LAG 93-004 2
City of Renton to BHC, Inc.
to be made as of October 28, 2018, for the ensuing five-year period ending October 28,
2023; and
WHEREAS, Lessor and Lessee agree that the difference between the CPI-U of
October 2018, as compared to October 2013, was 12.36%, and this resulted in a new
per square foot rent rate of $0.697 ($0.62 x 1.1236) and a new annual lease rate
effective October 28, 2018 of $33,998.62 for the 48,778.51-square foot premises, plus
leasehold excise tax; and
WHEREAS, as of November 9, 2020, Lessee had paid Lessor $76,369.95 in rent
since October 28, 2018, and Lessee acknowledges and agrees that it owes and will pay
to Lessor a backpayment for the difference in rent paid and rent owed since the
October 28, 2018 Lease rate adjustment date; and
WHEREAS, the Parties agree and acknowledge that the COVID-19 pandemic
which was declared an emergency in the City of Renton in March 2020 has caused
unanticipated delays in assembling a lease amendment to effectuate the extended
Lease term and the new rent rate, but Lessee and Lessor agree that neither has been
harmed by such delay so as to excuse future performance under the Lease;
NOW, THEREFORE, IN CONSIDERATION OF THE TERMS AND CONDITIONS HEREIN
CONTAINED AND FOR OTHER GOOD AND VALUABLE CONSIDERATION, THE RECEIPT
AND SUFFICIENCY OF WHICH IS HEREBY ACKNOWLEDGED, LESSOR AND LESSEE AGREE
AS SET FORTH BELOW:
WITNESSETH:
1. The extension of the Lease term to midnight December 31, 2024 is hereby ratified.
2. Effective as of October 28, 2018, Section 3.1. of LAG 93-004 is hereby amended to
read as follows:
3.1. Minimum Monthly Rent: Landlord and Tenant do hereby agree that
Tenant shall pay to Landlord a Minimum Monthly Rent in the sum of two thousand
eight hundred thirty-three dollars and twenty-one cents ($2,833.21), which
amount is one-twelfth of the Total Annual Rent of $33,998.62, PLUS leasehold
excise tax as described in Section 3.6. of lease LAG 93-004, without deduction,
offset, prior notice or demand, payable promptly in advance on the first day of
each and every month during the Term. All such payment shall be made to the City
of Renton, Attention: Fiscal Services, 1055 South Grady Way, Renton, Washington
98057. The Minimum Monthly Rent is computed as follows:
AGENDA ITEM #1. a)
LAG 93-004
Amendment 06-20
Amendment to Lease Agreement LAG 93-004 3
City of Renton to BHC, Inc.
Rental Payment Schedule
48,778.51 square feet @ $0.697 per square foot per year= $33,998.62 annual rent
divided by 12 = $2,833.21 rental per month, PLUS leasehold excise tax.
3. Within 30 days of the date last signed below, Lessee shall pay to Lessor a lump sum
equal to (1) the difference between (a) the amount due to Lessor since October 28,
2018 under this Lease amendment and (b) the amount that Lessee paid to Lessor
since October 28, 2018 and (2) leasehold excise tax on the difference.
4. All other terms and conditions of the original Lease (including amendments
thereto), insofar as they are not inconsistent herewith, shall remain in full force and
effect.
CITY OF RENTON BHC, Inc.
a municipal corporation a Washington corporation
By: By:
Armondo Pavone Name: _______________________
Mayor Title: ________________________
Date: __________________________ Date: ________________________
Attested to by:
Jason Seth
City Clerk
Approved as to legal form:
Shane Moloney
City Attorney
AGENDA ITEM #1. a)
Service Guidelines and
Metro Connects 2020
Update
AGENDA ITEM #2. a)
By centering equity, climate, and safety in Metro’s work,
Mobility is more than a service.
•This theory of change is consistent with recommendations
in the adopted Mobility Framework and can better advance
key outcomes.
•A focus on equity and leading with race aligns with King
County’s Equity and Social Justice ordinance.AGENDA ITEM #2. a)
Updated Metro Connects Maps
Draft Interim Network
•Updated route alignments and frequencies to
account for known changes (e.g. RKAAMP, Capital
Hill/UW Link)
•Addressed targeted equity gaps
•Updated RapidRide network
AGENDA ITEM #2. a)
Updated Metro Connects Maps
Draft 2050 Network
•Incorporated known changes made to the Interim
network
•Increased frequencies on select routes to account for
growth from 2040 to 2050
•Updated proposed RapidRide network
AGENDA ITEM #2. a)
Equity Gap Improvements
•Map illustrates where access to transit service is
limited for priority and other populations
•Though Metro could not address all gaps, made
targeted changes based on stakeholder feedback
•Focus on gaps near areas with higher ridership during
COVID-19
•Route changes to address equity gaps in areas
including Skyway, SeaTac, and Kent East Hill
AGENDA ITEM #2. a)
Proposed Updated RapidRide
Network
•Metro has not delivered new RapidRide lines as fast
as Metro Connects assumed
•Proposed network is smaller due to adjusting to a
more realistic delivery pace
•Lines G, H, I, and J assumed to be implemented by
2025
•K and R assumed to be next two lines implemented
Interim RapidRide Network AGENDA ITEM #2. a)
Proposed Updated RapidRide
Network
2050 RapidRide Network AGENDA ITEM #2. a)
Proposed Updated RapidRide Network
How would the process work?
•Candidate network was determined by draft
2050 Network
•Those not implemented in Interim network are
assumed to be candidates for 2050
•RapidRide routes that surpassed minimum
performance remained candidates
•Routes below threshold were reclassified as
frequent service routes
AGENDA ITEM #2. a)
Summary of Draft RapidRide and Equity Gap Network Changes
for Renton
•MC Corridor 1030 –Renton to Overlake –will be frequent service in Interim network rather than RapidRide.
It will be a RapidRide candidate in 2050 network.
•MC Corridor 1075 –Renton Highlands to Rainier Beach –will be frequent service to 2050 network rather
than RapidRide.
•MC 107 –Rainier Beach to Renton –will be frequent service in the interim network rather than local.
•MC 3991 –Fairwood to Des Moines via Tukwila –will be frequent in interim network rather than local
Requests/Comments already submitted to Metro
•To keep local 3073 that runs along Lk Washington Blvd in Kennydale in interim network.
•For better clarification on alternative services, like the on-demand services for the Benson and Highlands
areas. (Outreach scheduled to begin in 2021)AGENDA ITEM #2. a)
Mobility Framework Overarching Goals:
•To ensure our policies, investments, and practices put people first,
support the advancement of equity and social justice, meet the
mobility needs of King County, and reduce regional greenhouse gas
emission.
•To develop and ambitious yet realistic plan to fund and implement
METRO CONNECTS in a way that advances equity and social justice
and addresses climate change.AGENDA ITEM #2. a)
Existing Service Guidelines Proposed Changes to Service
Guidelines
Equity score comprised of two
factors (race, income)
Equity score comprised of five factors
(race, income, disability, foreign born,
limited English speaker)
Does not specifically account for
low- and medium- income job
locations
Added consideration of low- and
medium-income job locations to
productivity score
Does not calculate weekend
service need
Added target service levels for
weekend service to cost estimates
Uses boardings instead of
population
Use of population data instead of
boardings data. Removed the "step
2" methodology which relies on
boardings
Adds Metro Connects Corridors for
Evaluations and Prioritization
Does not account for a pathway to
Metro Connects
Uses of Metro Connects proposed
service levels as a service minimum
Uses adjusted Service Guidelines
Priority 3 methodology to establish
service levels appropriate above and
beyond Metro Connects AGENDA ITEM #2. a)
Scenario Development and Analysis
AGENDA ITEM #2. a)
Importance of Additional Funding
•Metro can better grow the system and invest in routes further down the Service Guidelines growth
priority list with more funding AGENDA ITEM #2. a)
Safe Routes to Transit Capital Projects
Design funded by King County Metro
These small capital improvement projects improve safety, convenience and accessibility for people to connect to transit services and facilities.
Project #Location Project Estimated
Construction Start
1 S 43rd St/S Carr Road and Talbot Road S Lead Pedestrian Interval (LPI) Signal Timing at intersection 2020
3 Sunset Blvd Intersections:
Edmonds Ave, NE 10th St and Kirkland Ave ADA improvements at Edmonds; RRFBs with curb ramps @ NE 10th and Kirkland locations 2021
6 Shattuck Ave S, S 7th St to Grady Way Two‐way cycle track with curb extension improvements with low‐cost materials and signing 2021
9 Talbot Rd S, S 7th St and Grady Way Roadway improvements with low‐cost materials for better traffic operations and to help
slow speeds 2021
10 S Puget Dr/Royal Hills Dr SE/116th RRFB for Mini‐Roundabout; 30% design for Full Intersection Roundabout Design 2021
15 S 2nd St, east of Lake Ave S RRFB with curb ramp and lighting upgrades 2022
2 Main Ave S / S 3rd St Curb bulb outs (rubber/plastic curb and post materials) with curb ramp and lighting
upgrades 2022
4 Houser Way / Mill Ave S Curb bulb outs (rubber/plastic curb and post materials) with curb ramp and lighting
upgrades (new signal poles)2022
5 S 43rd St / SR 167 NB Ramps Access and alignment improvements for better crossing 2022
8 E Valley Rd / S 180th St Access and alignment improvements for better crossing 2022
7 S 3rd Place, Rainier Ave S to Shattuck Ave S New/upgraded streetlighting on S 3rd Place and sidewalk improvements 2022
11 SE 168th St / 128th Ave SE Curb bulb outs (rubber/plastic curb and post materials) on west corners, APS push buttons at
all corners, and upgraded curb ramps 2022
12 NE 12th St, west of Sunset Blvd Crossing improvements with low‐cost materials, curb ramp improvements 2023
13 NE 12th St, east of Sunset Blvd 4 improved crossings close to bus stops with RRFBs 2023
14 Bronson Way N/Park Ave N,
adjacent to Liberty Park HAWK signal with curb ramp and lighting upgrades 2024
18 SR 900/Oakesdale Ave SW HAWK signal with associated curb ramp and lighting improvements 2025
16 SE Petrovitsky Dr/118 Ave SE HAWK signal with associated curb ramp and lighting improvements 2026
17 SE Petrovitsky Dr/122 Pl SE HAWK signal with associated curb ramp and lighting improvements 2027
Projects subject to final design approval (including external agencies, where necessary) and available funding.
AGENDA ITEM #2. b)
Renton Safe Routes to Transit
Proposed Capital Improvement Project Locations
1 5 8
10
16 17
11
6 9
15
2 4
18 7
14
12 13
3
AGENDA ITEM #2. b)