Loading...
HomeMy WebLinkAboutAgenda Packet for 10/10/2016 AGENDA City Council Regular Meeting 7:00 PM - Monday, October 10, 2016 Council Chambers, 7th Floor, City Hall – 1055 S. Grady Way 1. CALL TO ORDER AND PLEDGE OF ALLEGIANCE 2. ROLL CALL 3. SPECIAL PRESENTATION a) State of the County - King County Councilmember Reagan Dunn 4. PUBLIC HEARING a) 2016/2017 Community Development Block Grant (CDBG) Funding 5. ADMINISTRATIVE REPORT 6. AUDIENCE COMMENTS  Speakers must sign-up prior to the Council meeting.  Each speaker is allowed five minutes.  When recognized, please state your name & city of residence for the record. 7. CONSENT AGENDA The following items are distributed to Councilmembers in advance for study and review, and the recommended actions will be accepted in a single motion. Any item may be removed for further discussion if requested by a Councilmember. a) Approval of Council Meeting minutes of October 3, 2016. Council Concur b) AB - 1765 City Clerk submits 10% Notice of Intent to Annex petition for the proposed Tim D Annexation and recommends a public meeting be set on 10/24/2016 to consider the petition; 2.7 acre site abutting the City at its northern City limits. Council Concur c) AB - 1769 Community & Economic Development Department recommends the transfer of the $50,000 balance from the South Renton Reserve account to the CED Arts and Culture Capital Projects account for purpose of the design, fabrication, and installation of artwork in the South Renton neighborhood. Refer to Community Services Committee d) AB - 1760 Transportation Systems Division recommends approving a short term, month- to-month lease, with Kanyan, Inc. in the amount of $90,000 per year, terminating no later than 10/31/2019, for five anger buildings and 100,041 sq. ft. of airside land at the Airport. Refer to Transportation (Aviation) Committee 8. UNFINISHED BUSINESS Topics listed below were discussed in Council committees during the past week. Those topics marked with an asterisk (*) may include legislation. Committee reports on any topics may be held by the Chair if further review is necessary. a) Finance Committee: Vouchers; Agreement with Washington State Department of Enterprise Services* 9. LEGISLATION Resolution: a) Resolution No. 4295: Washington State Department of Enterprise Services Interlocal Agreement (See item 8.a.) Ordinance for first reading: b) Ordinance No. 5818: Unit Lot Subdivision Ordinance (Approved on 9/26/2016) 10. NEW BUSINESS (Includes Council Committee agenda topics; visit rentonwa.gov/cityclerk for more information.) 11. ADJOURNMENT COMMITTEE OF THE WHOLE AGENDA (Preceding Council Meeting) Council Chambers October 10, 2016 Monday, 5:00 p.m. 2017 - 2018 Budget Overview - Department Presentations (CED, Police, & Executive) 200 Mill RFP Update Hearing assistance devices for use in the Council Chambers are available upon request to the City Clerk CITY COUNCIL MEETINGS ARE TELEVISED LIVE ON GOVERNMENT ACCESS CHANNEL 21 To view Council Meetings online, please visit rentonwa.gov/councilmeetings 2017 Community Development Block Grant Funds Allocation & Use Public Hearing Presented to the Renton City Council October 10, 2016 A G E N D A I T E M # 4 . a ) Community Development Block Grant (CDBG) Fund Allocation & Use Summary •2017: Utilize $631,633 in CDBG funds for King County contractual set-asides, City planning and administration, public services, Healthy Housing and removal of architectural barriers at the Renton Senior Activity Center. A G E N D A I T E M # 4 . a ) CDBG Background •City of Renton receives an annual allocation of CDBG funds via an agreement with King County. –CDBG is a flexible program that provides communities with resources to address a wide range of unique community development needs. –Program utilizes federal funding that is administered through the U. S. Department of Housing and Urban Development (HUD). •2017 allocation is estimated to be $631,333. A G E N D A I T E M # 4 . a ) CDBG Funding Plan YEAR ACTIVITY NATIONAL OBJECTIVE AMOUNT 2017 King County Contractual Set- asides -General Administration -Capital Administration -Housing Stability Program -Housing Repair Program Subtotal Not Applicable $63,133 $12,627 $ 31,567 $ 126,267 $ 233,594 City Planning &Administration Not Applicable $ 63,133 Public Services: Small Business Development in Renton Benefit to Low-and Moderate-Income residents $ 25,000 Capital Projects: -Healthy Housing Project -ADA Improvements at the Renton Senior Activity Center (211 Burnett Avenue N) Benefit to Low-and Moderate-Income residents Removal of Architectural Barriers $75,000 $234,606 2017 TOTAL $ 631,633 A G E N D A I T E M # 4 . a ) Aging Roof A G E N D A I T E M # 4 . a ) A G E N D A I T E M # 4 . a ) 2016 Action Plan Amendment •Reallocate $40,000 of 2016 funds currently allocated to the Downtown Commercial Rehabilitation and Façade Improvement Program. Funds will be used for the architectural and engineering design work for the removal of architectural barriers (ADA improvements) at the Renton Senior Activity Center. A G E N D A I T E M # 4 . a ) Senior Activity Center Front Desk •Counters currently at 40 inches, not the ADA height of 31 inches. A G E N D A I T E M # 4 . a ) Funding Contingency Plan •King County requires a Funding Contingency Plan if the Housing and Urban Development Department (“HUD”) allocation is greater or less than the 2017 estimated amounts. •If there is an increase in funds: After the contractual set- asides, additional capital funds will be used for the improvements at the Senior Activity Center-to a maximum of $350,000. •If there is a decrease in funds, the decrease will come from the Senior Activity Center improvements. A G E N D A I T E M # 4 . a ) Recommendations •Approve the 2016 Action Plan Amendment to allocate $40,000 of 2016 capital funds to Architectural and Engineering design work on the Renton Senior Activity Center to remove architectural barriers. •Following the public hearing and consideration of public comment, staff recommends that Council take action tonight by approving the recommendations for the use of 2017 funds as presented. A G E N D A I T E M # 4 . a ) October 3, 2016 REGULAR COUNCIL MEETING MINUTES MINUTES City Council Regular Meeting 7:00 PM - Monday, October 3, 2016 Council Chambers, 7th Floor, City Hall – 1055 S. Grady Way CALL TO ORDER AND PLEDGE OF ALLEGIANCE Mayor Law called the meeting of the Renton City Council to order at 7:00 PM and led the Pledge of Allegiance. ROLL CALL Councilmembers Present: Randy Corman, Council President Ryan McIrvin Armondo Pavone Ruth Pérez Don Persson Ed Prince Carol Ann Witschi ADMINISTRATIVE STAFF PRESENT Denis Law, Mayor Jay Covington, Chief Administrative Officer Lawrence J. Warren, City Attorney Jason Seth, City Clerk Chip Vincent, Community & Economic Development Administrator Gregg Zimmerman, Public Works Administrator Leslie Betlach, Parks Planning and Natural Resources Director Angie Mathias, Long Range Planning Manager John Collum, Community Development Project Manager Tina Harris, Domestic Violence Victim Advocate Commander Dave Leibman, Police Department AGENDA ITEM #7. a) October 3, 2016 REGULAR COUNCIL MEETING MINUTES PROCLAMATION a) Domestic Violence Awareness Month - October 2016: A proclamation by Mayor Law was read declaring October 2016 to be "Domestic Violence Awareness Month" in the City of Renton, encouraging everyone in the community to take an active role in supporting all victims so they can lead healthy lives safe from violent and abusive behavior. Domestic Violence Victim Advocate, Tina Harris, accepted the proclamation with thanks and provided information regarding challenges that victims of domestic violence face on a daily basis, and recognized local human services programs that assist these victims. MOVED BY CORMAN, SECONDED BY PAVONE, COUNCIL CONCUR IN THE PROCLAMATION. CARRIED. PUBLIC HEARING a) Extending Interim Zoning Regarding Limit on Number of Marijuana Retail Businesses: This being the date set and proper notice having been posted and published in accordance with local and State laws, Mayor Law opened the public hearing to consider extending interim zoning regarding a limit on the number of marijuana retail businesses. Long Range Planning Manager Angie Mathias reported that Council adopted interim zoning setting the maximum number of retail marijuana stores at five on October 5, 2015. She explained that the interim zoning is effective for one year, unless it is renewed and that the renewal requires a public hearing. Ms. Mathias clarified that the reason the interim zoning was established was due to the September 2015 decision made by the Liquor and Cannabis Board (LCB) establishing that a new application period for retail stores would open, and there would not be a limit to the number stores allowed per jurisdiction due to the consolidation of medical marijuana stores with recreational marijuana stores. In January of 2016, the LCB retracted that statement, limiting the number of stores per jurisdiction, and allocating six stores as the total allowable number of stores for the City of Renton. Following two briefings, a public hearing, and deliberations, the Planning Commission and City staff recommended keeping the maximum number of stores allowed in Renton at five. This zoning would become effective through the adoption of Ordinance No. 5816 (see below), which, if adopted, will become effective on November 6, 2016. However, City Attorney Larry Warren explained that the adoption of this proposed interim zoning ordinance would need to be adopted via two readings this evening as an emergency ordinance, so as to avoid a gap in zoning regulations where six stores would be allowable. Public Comment was invited. Following this clarification, and there being no public comment, it was MOVED BY PRINCE, SECONDED BY PÉREZ, COUNCIL CLOSE THE PUBLIC HEARING. CARRIED. ADMINISTRATIVE REPORT Chief Administrative Officer Jay Covington reviewed a written administrative report summarizing the City’s recent progress towards goals and work programs adopted as part of its business plan for 2016 and beyond. Items noted were regarding:  Preventative street maintenance will continue to impact traffic and result in occasional street closures. AGENDA ITEM #7. a) October 3, 2016 REGULAR COUNCIL MEETING MINUTES AUDIENCE COMMENTS  Kathleen Booher, Renton, thanked Council and the Public Safety Committee for their continued engagement regarding safety issues that arise in the North Renton Neighborhood.  Diane Dobson, Renton, extended an invitation to Councilmembers to join the North Renton Neighborhood Halloween Party on October 22, 2016 from 3:30 p.m. to sundown. CONSENT AGENDA Items listed on the Consent Agenda were adopted with one motion, following the listing. a) Approval of Council Meeting minutes of September 26, 2016. Council Concur. b) AB - 1762 Administrative Services Department recommended a public hearing be set on 10/17/2016 to consider the 2017-2018 Biennial Budget. Refer to Committee of the Whole; Set Public Hearing for 10/17/2016. c) AB - 1761 Community & Economic Development Department recommended approval of a consultant agreement in the amount of $475,000 with MIG for the purpose of development of a visionary master plan for the Downtown Civic Core area; as well as approval to reallocate funding in the CIP Fund in the amount of $495,000 to cover the Downtown Civic Core project costs. Council Concur. MOVED BY CORMAN, SECONDED BY PAVONE, COUNCIL CONCUR TO APPROVE THE CONSENT AGENDA, AS PRESENTED. CARRIED. UNFINISHED BUSINESS a) Utilities Committee Chair McIrvin presented a report concurring in the staff recommendation to approve Addendum No. 2 to CAG-15-224 for the Cedar River 205 Project Levee Certification Phase 2 with Tetra Tech, Inc. in the amount of $431,754. MOVED BY MCIRVIN, SECONDED BY PÉREZ, COUNICL CONCUR IN THE COMMITTEE RECOMMENDATION. CARRIED. b) Utilities Committee Chair McIrvin presented a report recommending concurrence in the staff recommendation to approve the 2017-2018 revenue increase of 4% each year for Surface Water and Wastewater utilities; maintain the current Water Utility rates for 2017 and 2018; maintain the current Solid Waste Utility rates for 2017 and increase the Solid Waste Utility rate by 1% for 2018; approved the deferral of the King County rate stabilization charge for 2017 and 2018 per wastewater account; and approved the proposed 2017 and 2018 system development charges and updated utility development fees. The Committee further recommended that the ordinances be prepared to amend Chapter 1, Garbage, Chapter 2, Storm and Surface Water, Chapter 4, Water, and Chapter 5, Sewer of Title VIII (Health and Sanitation) of the Renton Municipal Code. MOVED BY MCIRVIN, SECONDED BY PÉREZ, COUNCIL CONCUR IN THE COMMITTEE RECOMMENDATION. CARRIED. AGENDA ITEM #7. a) October 3, 2016 REGULAR COUNCIL MEETING MINUTES LEGISLATION Ordinance for first reading and advancement to second and final reading: a) Ordinance No. 5817: An ordinance was read extending interim Zoning Regulations for Recreational Marijuana Retail uses and declaring an emergency. MOVED BY PRINCE, SECONDED BY CORMAN, COUNCIL ADVANCE THE ORDINANCE FOR SECOND AND FINAL READING. CARRIED. Following a second reading, it was MOVED BY PRINCE, SECONDED BY MCIRVIN, COUNCIL ADOPT THE ORDINANCE AS READ. ROLL CALL: ALL AYES. CARRIED. Ordinance for second and final reading: b) Ordinance No. 5816: An ordinance was read amending Section 4-1-250 of Chapter 1, Administration and Enforcement, Section 4-4-080 of Chapter 4, City-Wide Property Development Standards, and Section 4-11-130 of Chapter 11, Definitions, of Title IV (Development Regulations) of the Renton Municipal Code, by amending marijuana zoning and parking regulations, and adding and amending definitions. MOVED BY PRINCE, SECONDED BY MCIRVIN, COUNCIL ADOPT THE ORDINANCE AS READ. ROLL CALL: ALL AYES. CARRIED. NEW BUSINESS Please see the attached Council Committee Meeting Calendar. Councilmember Persson referred a letter received by Council regarding bank foreclosures to the Administration to look for anything of interest. ADJOURNMENT MOVED BY PRINCE, SECONDED BY PAVONE, COUNCIL ADJOURN. CARRIED. TIME: 7:31 P.M. Jason A. Seth, CMC, City Clerk Megan Gregor, CMC, Recorder Monday, October 3, 2016 AGENDA ITEM #7. a) Council Committee Meeting Calendar October 3, 2016 October 10, 2016 Monday 3:30 PM Public Safety Committee, Chair Pavone – Council Conference Room 1. Emerging Issues in Public Safety 4:00 PM Finance Committee, Chair Persson – Council Conference Room 1. Vouchers 2. Agreement with Washington State Department of Enterprise Services 3. Emerging Issues in Revenue Streams 5:00 PM Committee of the Whole, Chair Corman – Council Chambers 1. 2017 – 2018 Budget Overview / Department Presentations - Community & Economic Development - Police - Executive 2. 200 Mill RFP Update AGENDA ITEM #7. a) AB - 1765 City Council Regular Meeting - 10 Oct 2016 SUBJECT/TITLE: Proposed Annexation - Tim D 10% Notice of Intention to Commence Annexation Proceedings RECOMMENDED ACTION: Council Concur DEPARTMENT: City Clerk STAFF CONTACT: Jason Seth, City Clerk EXT.: 6502 FISCAL IMPACT SUMMARY: N/A SUMMARY OF ACTION: Tim Ding, Petitioner, submitted the 10% Notice of Intention to Commence Annexation proceedings on 9/12/2016. The Department of Community and Economic Development has verified sufficiency of the petition and now requests a public meeting with the initiator be set on 10/24/2016. The proposed 2.7 acre site abuts the City at its northern City limits. State law requires a public meeting with the petitioner within 60 -days of their submittal to consider their request. EXHIBITS: A. Issue Paper B. 10% Petition (including map and legal description) STAFF RECOMMENDATION: Set October 24, 2016 for a public meeting to consider the 10% Notice of Intention to Commence Annexation Proceedings for the proposed Tim D Annexation. AGENDA ITEM #7. b) DEPARTMENT OF COMMUNITY AND ECONOMIC DEVELOPMENT M E M O R A N D U M DATE:October 3, 2016 TO:Randy Corman, Council President City Councilmembers VIA:Denis Law, Mayor FROM:Chip Vincent, Administrator Department of Community & Economic Development STAFF CONTACT:Angie Mathias, x6576 SUBJECT:Proposed Tim D. Annexation – 10% Notice of Intent Petition ISSUE: The City is in receipt of a 10% Notice of Intent petition to annex a 2.7-acre area using the direct petition method; the proposed annexation is called Tim D. State law requires that the Council hold a public meeting with the annexation proponents within 60 days of receipt of a 10% Notice of Intent petition. The purpose of the meeting is for Council to decide whether to accept or reject the proposal and whether to require the simultaneous adoption of City zoning consistent with the Comprehensive Plan, if the proposed annexation is successful. RECOMMENDATION: On the basis of the following analysis, the Administration recommends that Council accept the 10% Notice of Intent petition. If Council concurs, the Administration recommends that it take the following actions (pursuant to RCW 35A.14.120): Accept the 10% Notice of Intent to Commence Annexation petition; and Authorize the circulation of a 60% Direct Petition of Annex for the 2.7-acre area; and Require that property owners within the proposed annexation area accept City of Renton zoning that is consistent with the City’s Comprehensive Plan land use designation. BACKGROUND: 1.Location: The proposed 2.7-acre Tim D. Annexation is bordered by the existing City limits at its north. The area is located to the north of the city in the Highlands Community Planning area. It is bordered to the south by the City limits which follows parcel lines located near Southeast 100th Street, by parcel lines AGENDA ITEM #7. b) Proposed Bradley Annexation 10% Notice of Intent Page 2 of 5 near 124t h Avenue Southeast to the east, parcel lines near Northeast 26th Court to the north, and by the City limits which follows parcel lines near Lynnwood Avenue Northeast to the west. 2.Assessed value: The 2016 assessed valuation of the subject annexation site is $568,000. 3.Natural features: An area located at the northern boundary measuring approximately .22 acres in size is encumbered with regulated slopes (greater than 40%). The slopes continue along the northern boundary, but are less than 40% grade. The central and southern portion of the site is generally topographically level. There are no streams or wetlands that are currently mapped in the area. 4.Existing land uses: There is one single-family residence. 5.Existing zoning: Existing King County zoning is R-1. The area will need to be zoned concurrently with the annexation process. The first public hearing regarding zoning would occur in conjunction with the public hearing for the 60% petition, if it is submitted and determined to be sufficient. 6.Comprehensive Plan: Renton’s Comprehensive Plan designates the subject annexation site as Residential Low Density (RLD). 7.School District: The Tim D. Annexation area is in the Renton School District. 8.Public services: All responding City of Renton departments and divisions noted that the annexation represents a logical extension of their respective services and systems and presents no foreseeable problems. Specific comments follow: Water Utility. The subject site is located within the City of Renton’s water service area. The existing water mains can provide sufficient capacity for fire protection to the site. However, water main improvement may be needed for redevelopment or new dwelling units. Staff did not indicate any concerns regarding this proposed annexation. Wastewater Utility. The area is within the Wastewater Divisions service area and has a main installed directly to the south. Staff noted that the infrastructure is already in place to provide service to the area and had no concerns regarding the proposed annexation. Parks. Sierra Heights Park is located approximately 850 feet east of the subject site and approximately 500 feet from a trailhead for the Honey Creek trail. The site is in good proximity to parks and trails. Staff did not indicate any concerns regarding the proposed annexation. AGENDA ITEM #7. b) Proposed Bradley Annexation 10% Notice of Intent Page 3 of 5 Police. The Police Department did not indicate any concerns regarding this proposed annexation. It is estimated that the area will generate an additional 1 call for service annually. Fire. Renton Fire Authority currently provides fire and emergency services to the area. Staff did not indicate any concerns regarding this proposed annexation. Surface Water. The site is located in the May Creek drainage basin. Any future development will be required to comply with the City’s Surface Water Design Manual. There is a stormwater main located immediately south of the area. The annexation represents a logical extension of their services. Transportation Systems. The Transportation Systems staff has no concerns regarding the proposed annexation. Staff indicated access to the site is provided by a non-standard driveway and narrow unimproved road off Lynnwood Ave NE. A 20 foot by 30 foot portion the annexation area extends into Lynnwood Avenue NE, staff noted that when the area redevelops, that portion should be dedicated as public right-of-way. Building. The Building section did not indicate any concerns regarding the proposed annexation. Planning. The Planning section did not indicate any concerns regarding the proposed annexation. ANALYSIS OF THE PROPOSED ANNEXATION: 1.Consistency with the Comprehensive Plan: Renton’s Comprehensive Plan annexation policies support this proposed annexation. The subject site is within the City’s Potential Annexation Area and is subject to development pressure that might benefit from City development regulations. Policy L-8 states that the City should “support annexation where infrastructure and services allow for urban densities and it would consolidate service providers and/or facilitate the efficient delivery of services.” 2.Consistency with the Boundary Review Board Objectives: (from RCW 36.93.180) a.Preservation of natural neighborhoods and communities; The proposed annexation would cause no disruption to the larger community. b.Use of physical boundaries, including but not limited to bodies of water, highways, and land contours; AGENDA ITEM #7. b) Proposed Bradley Annexation 10% Notice of Intent Page 4 of 5 The subject site uses physical boundaries. c.Creation and preservation of logical service areas; Water and sewer service boundaries will not change as a result of this annexation. The Tim D. Annexation Area is in the Renton School District. The school district boundaries will not change, the area will remain in the Renton School District. Renton will take over police service for the 2.7- acres upon annexation; the King County Sheriff’s Department currently provides police protection to the area. Renton Fire Authority currently provides services to the area that will not change with annexation. d.Prevention of abnormally irregular boundaries; This annexation does not have irregular boundaries. e.Discouragement of multiple incorporations of small cities and encouragement of incorporations of cities in excess of ten thousand population in heavily populated urban areas; Not applicable. No incorporations are proposed in this area. f.Dissolution of inactive special purpose districts; Not applicable. There are no inactive special purpose districts here. g.Adjustment of impractical boundaries; Not applicable. h.Incorporation as cities or towns or annexation to cities or towns of unincorporated areas which are urban in character; King County has designated this area for urban development because of its location within the Urban Growth Boundary. The County has also indicated that it wants to divest itself from providing urban services to these unincorporated urban areas by turning them over to cities as quickly as possible. Because the subject annexation site is within Renton’s PAA and not in an area under consideration for incorporation, annexation is appropriate at this time. i.Protection of agricultural and rural lands which are designated for long term productive agricultural and resource use by a comprehensive plan adopted by the county legislative authority. Not applicable. No portions of the proposed annexation are rural or designated for long term productive agricultural use in the King County or Renton Comprehensive Plans. 3.A fiscal analysis for the proposed annexation is attached. The fiscal impact analysis that is used for annexations considers costs on a per capita basis. The AGENDA ITEM #7. b) Proposed Bradley Annexation 10% Notice of Intent Page 5 of 5 fiscal analysis indicates that the proposed annexation would have an net poistive fiscal impact of $509 to the operating budget per year. Over a 10-year period and with additional construction of single family homes on the existing vacant lots, it is estimated that the fiscal impact would be $10,172 per year for the operating budget. For the capital and enterprise funds the annexation represents a balance of positive $243 currently and in ten years will be $1,452. CONCLUSION: The proposed Tim D. Annexation is consistent with relevant County and City annexation policies, as well as Boundary Review Board objectives for annexation. The staff that reviewed the proposed annexation for each department did not identify any major impediments to the provision of City services to the area or indicate that they feel the annexation is untimely. AGENDA ITEM #7. b) AGENDA ITEM #7. b) AGENDA ITEM #7. b) .. . _ . . . . . .3 09 . co o ». . w ” . m . . w . % 90 9 0 9 9 9 9 9 9 9 0 9 8 Io o o o ou o w o w o u o u o o o o w« o % o o o o o o o o ¢ « o o o o o¢ \ o o \ o o o I o % o o o oo u o g i o u v 0' 0 9 /, -- _ -- N - _ ,, N ,, _ .. . / ¥_ . ._ _ \\ \ | l . ! I I I ./ I. .\ / \ « l , I: I. \ .. | . . /V .\ \ \ // / ¥ \» \\ . Vx \\ / ,, . \\ ,. . , P \\ \ /, ,. , \ , / \. \ /, \_ .\ \\ . _ .. / \\ —. ,, X \ , ._ / _ ,. /, W M .. \ . . . / / , I: |.l I It . tc z m . . . Gu a m » Qx m m § . . 8 . oo 3 3 _ S : < ma m8 : o 3 _ o Um < m _ o u 3 m 3 am o : = _ o m _ $2 . 0 3 2 .. , :k m w . v . M o 3 ac so HI ma m . 3. 8 0 2m ME : ma 43 _< _ % _. o 8 : o : z2 . a . . _ . D .2 mm 30 3 ma :3 U. >: : @ § _ o : <_ o _ = _ 2 _s m u Po u o w m q >= : m x m = o = mo c s q m s . D 9: sa w D _u m 3 m _ m 5 SN .. : E a : . n X \ Qa z ? k a >§ . < Qd m » W. Q. . m m : : . 5 . <K < AGENDA ITEM #7. b) 1 u - J Z _ E ' j f E u ' ? ' 1 _ | - . ' 'u '7 ' ' 1. 3 U0 3 0 : om Em zo w E m m m ? O, : m _ A m . . o? Em zo « E < < m m . H O. : m _ 4 m _ , 2 mm n z o z P 4o < < : m E _ u Mm 23 E . xm s m m m mm ? << _ _ _ m 3 m : m _< _ m _ . . n _ _ m : . 3 53 m 95 2 . << m m E _ : m . 8 : co c a q m a u< Em ¢o _ _ o < < . : m “ mo E a _ 3 o: Em 39 E c< Em Em » 2 33 2 % m? m ? m m . mn n o a 3 m 3 <o _ : 3 m 8 o? Em a . vm m m Sm . >_ m o uo ? a a on Em 39 E c< Em Em » 2 _u m $ n = m m m? m a m m zo . N. mn n o : : : m 8 <o _ : 3 m Ho w 3 Em a . 3% 85 >_ m o co c z g m a on Em mm m ? 3 Em Em » 3 << m & m 3 _. _ _ _ _ m . mn n o 3 = : m 8 <o _ c 3 m 8 3 Em a . wm m m m oi m: o _ co w >_ m o ao : : n _ m n _ on Em mo : E u< Q2 __ 3 : . n . mm ms s m x m a u< Q2 o. " xm : 8 : Oa _ : m : n m E8 9 28 co c : n _ m n _ o: Em Em m a 3 Q2 :3 5 mm 25 2 3 3 Q2 9. xm : . 8 : oa : § 8 Ea ? mx n m 3 . Em mm m ? im a m .. m m . n 2 Em mo : E mm ?m m n 2 Em 29 E 39 E ?m m » o3 E m zo z r m m ? Dc m z m a o? Em zo _ E < < m & 05 : 2 3 $3 $2 . 0 3 . 4. 3 U. _. m m m _ AGENDA ITEM #7. b) .2 2 0 oo c z i >w m m m m o m mo o A4 1 >< m 30 0 3 $8 wm > J _ . m . << > mm _ o . . . 8 § O_ u _ u _ O _ > _ . um o u m m i <> _ . : m ZO . _ . _ O m ._ . I _ m _m 20 4 > ._ . > x m_ _ . _ . >O O O C Z . _ . zc a w m m n E~ 8 m . m o 8 - 8 \ _. m < < oo u m " ?m m m< z oo o m ” $0 3 . . . . nm o u m m i >u u m m m m ” 88 Bm z o >< m mm 52 0 OO C Z . _ . < 88 ¢ 83 <> E m mo m .. > x m m oc m .2 83 _. > z P mr o o m " O. _ . > _ L >v u m > _ m m u <> E m O_ . U <> _ . c m mm m So mu m b o o ma m o8 zm < < <> _ . c m 3 m 8o 8. _8 o 2 w 8o <> _ . c m >_ . : _ . m m mx m g v d o z 9 mb o o 8. b8 9 98 o nm m m o m a m o Em m a or > m m _< _ > = . C. m. _u o m 4 > m m _u > _ U mm > ? _ . m _ << > um m _ s _ a 20 . Na 00 _u m u m _ . _ m m m n ma : cu Sq ma m : <m _ _ . _ m zo . _ . n m am _ _ < m B << < < < < . x _ z m o o c z .m o S > m m m m m o m \ m < z <5 5 Sm m< z 08 m 6 5. 1 % _s > _ _ . u> . _ . m ” 86 : 3 mm m m> o x mo m >_ u _ u m > _ . um > u : z m _s > _ _ . _ z o >o o m m m m u o_ z m ._ . = $ O . _ . I < X V0 3 » . 88 .8 2 0 >< m mm mm z q o z << > 88 ¢ __ _ _ _ _ _ _ _ _ _ _ _ AGENDA ITEM #7. b) AB - 1769 City Council Regular Meeting - 10 Oct 2016 SUBJECT/TITLE: South Renton Art Project RECOMMENDED ACTION: Refer to Community Services Committee DEPARTMENT: Community & Economic Development STAFF CONTACT: Elizabeth Higgins, Senior Planner EXT.: 6581 FISCAL IMPACT SUMMARY: This request is to transfer the balance from the South Renton Reserve account in Fund 502, Insurance Fund, of $50,000 to the CED Arts and Culture Capital Projects account to design, fabricate, and install artwork in the South Renton neighborhood. SUMMARY OF ACTION: Construction of the Eastside Interceptor through South Renton in 2001 resulted in a Mitigation Agreement between the City of Renton and King County (Eastside Interceptor Mitigation Funds, CAG -01-180). Funds from this agreement ($500,000) were intended for use in the South Renton neighborhood to ameliorate impacts from utility construction activities resulting in inconvenience to the community. On April 16, 2001, the Transportation Committee recommended the use of the funds as follows: Asphalt overlay of streets in the Burnett South Renton Area $75,000 Improvements study for intersection of S 4th St and Burnett Ave S $40,000 Reconstruct Lind Ave S from SW 43rd to SW 21st Streets $325,000 Reserved for South Renton Projects Fund $60,000 Total $500,000 The City has received a letter from representatives of the South Renton Connection, a neighborhood association recognized by the City. The letter requests that the remaining balance of the South Renton Reserve account, money reserved for unspecified “South Renton Projects,” be made available for use by the South Renton Connection. The purpose would be to design, fabrication, and installation of artwork in the South Renton neighborhood. As stated in the letter, the Renton Municipal Arts Commission and Renton History Museum will be engaged in the process of determining the appropriate artwork. CED, as administrators of the City Center Community Plan, which includes South Renton, will oversee and manage the project. EXHIBITS: A. South Renton Connection Letter AGENDA ITEM #7. c) STAFF RECOMMENDATION: Staff recommends the transfer of the balance from the South Renton Reserve account in Fund 502, Insurance Fund, of $50,000 to the CED Arts and Culture Capital Projects account. AGENDA ITEM #7. c) g r o w i n g l e a d e r s , b u i l d i n g a n e i g h b o r h o o d S o u t h R e n t o n C o n n e c t i o n P D B o x 1 9 0 5 R e n t o n W A 9 8 0 5 7 S e p t e m b e r 2 6 , 2 0 1 6 D e a r M a y o r L a w , T h i s l e t t e r i s i n r e g a r d s t o a p r o p o s e d S o u t h R e n t o n C o n n e c t i o n N e i g h b o r h o o d a r t a n d c u l t u r a l p r o j e c t . T h e S o u t h R e n t o n C o n n e c t i o n N e i g h b o r h o o d A s s o c i a t i o n h a s w o r k e d w i t h t h e C i t y o f R e n t o n f o r a n u m b e r o f y e a r s t o u t i l i z e t h e E a s t s i d e I n t e r c e p t o r M i t i g a t i o n F u n d t h a t w a s a s s i g n e d t o o u r n e i g h b o r h o o d . W e a r e n o w r e a d y t o m o v e f o r w a r d w i t h a p r o j e c t a n d a r e a s k i n g f o r y o u r s u p p o r t . A t t h i s t i m e w e r e q u e s t t h a t t h e E a s t s i d e I n t e r c e p t o r M i t i g a t i o n F u n d b e e a r m a r k e d a n d r e l e a s e d s o t h a t t h e S o u t h R e n t o n C o n n e c t i o n N e i g h b o r h o o d c a n p r o c e e d w i t h t h e p l a n n i n g o f o u r p r o j e c t . C u r r e n t l y w e a r e w o r k i n g w i t h E l i z a b e t h H i g g i n s a n d t h e D e p t . o f C o m m u n i t y a n d E c o n o m i c D e v e l o p m e n t P l a n n i n g D i v i s i o n o n t h i s p r o c e s s . W e a r e d u e t o a t t e n d t h e R e n t o n A r t s C o m m i s s i o n M e e t i n g o n O c t o b e r 4 t h a n d e n l i s t t h e i r a s s i s t a n c e i n p l a n n i n g a n d e x e c u t i n g t h i s p r o j e c t . O n c e f u n d s b e c o m e r e l e a s e d w e i n t e n d t o f u l l y e n g a g e b o t h T h e R e n t o n A r t C o m m i s s i o n a n d t h e R e n t o n H i s t o r y M u s e u m i n r e a l i z i n g o u r g o a l f o r a s i g n i f i c a n t a r t p r o j e c t t h a t r e f l e c t s t h e c u l t u r a l a n d h i s t o r i c a l s i g n i f i c a n c e o f o u r n e i g h b o r h o o d . R e s p e c t f u l l y , S o u t h R e n t o n C o n n e c t i o n A r t - C u l t u r a l P r o j e c t C o m m i t t e e B a r b a r a M a n d i c J e f f D i m c c J a y C o v i n g t o n C . E “ C h i p ” V i n c e n t E l i z a b e t h H i g g i n s B e t s y P r a t h e r A G E N D A I T E M # 7 . c ) C o n t a c t @ S o u t h R e n t o n C o n n e c t i o n A r t P r o j e c t S o u t h R e n t o n h a s a h i s t o r i c o p p o r t u n i t y t o r e c o g n i z e t h e u n i q u e n a t u r e o f o u r c o m m u n i t y . f t i s o u r g o a l t o s e i z e t h i s o p p o r t u n i t y a n d c r e a t e a q u a l i t y , a r t i s t i c r e p r e s e n t a t i o n t h a t h i g h l i g h t s t h e c o n t r i b u t i o n s t h a t S o u t h R e n t o n h a s m a d e t o R e n t o n . M I S S I O N S T A T E M E N T T h e S o u t h R e n t o n C o n n e c t i o n N e i g h b o r h o o d A s s o c i a t i o n i s c o m m i t t e d t o t h e e s t a b l i s h m e n t o f a s i g n i f i c a n t p i e c e o f p u b l i c a r t d e s i g n e d t o a c k n o w l e d g e a n d c e l e b r a t e t h e u n i q u e c u l t u r a l a n d h i s t o r i c a l c o n t r i b u t i o n s t h a t t h e S o u t h R e n t o n C o m m u n i t y h a s m a d e a n d w i l l c o n t i n u e t o m a k e i n R e n t o n . F r o m t h e e a r l y o r i g i n s o f R e n t o n , t h e S o u t h R e n t o n C o m m u n i t y h a s b e e n i n t r i c a t e l y r e l a t e d t o d o w n t o w n R e n t o n . I t i s o u r h o p e t h a t t h i s p r o j e c t w i l l c o n t i n u e t h i s l o n g s t a n d i n g r e l a t i o n s h i p b y h e l p i n g t o c o n t r i b u t e t o t h e r e v i t a l i z a t i o n o f o u r d o w n t o w n . C U L T U R A L S T A T E M E N T R e n t o n r e p r e s e n t s o n e o f t h e m o s t d i v e r s e p o p u l a t i o n s i n t h e s t a t e o f W a s h i n g t o n . H i s t o r i c a l l y t h e S o u t h R e n t o n C o m m u n i t y h a s p r o v i d e d a p l a c e f o r w a v e s o f e a r l y i m m i g r a n t s t o b e c a m e e s t a b l i s h e d a n d p r o s p e r ; a t r a d i t i o n w h i c h c o n t i n u e s t o d a y , t h e r e b y a d d i n g t o R e n t o n ’ s e v e r c h a n g i n g i d e n t i t y . I t w a s t h e c l o s e p r o x i m i t y t o t h e e a r l y j o b s i n R e n t o n t h a t e s t a b l i s h e d t h e d i v e r s e a n d m o d e s t o r i g i n o f o u r S o u t h R e n t o n C o m m u n i t y . A c o m m u n i t y t h a t w a s b u i l t o n d e e p , s t r o n g , w o r k i n g c l a s s r o o t s w h i c h h e l p e d t o e s t a b l i s h t h e o r i g i n a l f o u n d a t i o n u p o n w h i c h R e n t o n h a s g r o w n . P o s s i b l e H i s t o r i c a l a c k n o w l e d g e m e n t s • T h e D u w a m i s h • t h e r a i l r o a d s • t h e g r e a t t r a i n w r e c k o f 1 9 5 5 • R e n t o n G l a s s C o m p a n y o p e n e d i n 1 9 0 4 m a k i n g b o t t l e s • R e n t o n M i n e , c o a l m i n e • R e n t o n F i r e o f 1 8 9 9 d e s t r o y e d a l a r g e n u m b e r o f h o m e s • R e n t o n f l o o d o f 1 9 1 1 • 4 c o w b r i d g e • C e n t r a l S c h o o l b u i l t i n 1 8 9 2 a t S o u t h 5 t h b e t w e e n W e l l s a n d M a i n A s w e m o v e f o r w a r d w i t h t h i s p r o j e c t w e w i l l b e s e e k i n g s u p p o r t f r o m b o t h t h e A r t s C o m m i s s i o n a n d t h e R e n t o n H i s t o r i c a l M u s e u m t o f u l f i l l o u r m i s s i o n o f c r e a t i n g a s i g n i f i c a n t p i e c e o f p u b l i c a r t t o a c k n o w l e d g e t h e c o n t r i b u t i o n s o f o u r S o u t h R e n t o n C o m m u n i t y . A G E N D A I T E M # 7 . c ) AB - 1760 City Council Regular Meeting - 10 Oct 2016 SUBJECT/TITLE: Airport Lease Extensions with Kaynan, Inc. RECOMMENDED ACTION: Refer to Transportation (Aviation) Committee DEPARTMENT: Transportation Systems Division STAFF CONTACT: Jonathan Wilson, Airport Manager EXT.: 7477 FISCAL IMPACT SUMMARY: Lease of $90,000 per year for 5 buildings and property at the southeast corner of the Airport. This lease is $9,922.80 higher than the existing lease with Kaynan, Inc. for the same airside land and buildings. SUMMARY OF ACTION: Kaynan, Inc. (Kaynan) is approaching the end of two long-term leases for property located at the southeast corner of the Airport. Lease LAG 003-84 was executed on September 1, 1984 and lease LAG 011-85 was executed on July 1, 1985. Kaynan has asked to remain on the Airport past the expiration date of their current leases. Since the Airport is in the process of completing its Master Plan update, no immediate redevelopment plans are ready for the parcel of land Kaynan currently occupies. Originally the Master Plan update was expected to be completed by June 2016. In the past several months, the schedule has been revised and the Master Plan is now expected to be completed by the end of 2017. The Master Plan will assist staff to determine the redevelopment of the southeast corner for the next long-term tenant(s). Since the Master Plan’s completion has been delayed, staff has been working with Kaynan to temporarily extend their lease. It is expected that the southeast corner will be ready for redevelopment with in 3 years, therefore we are looking to extend Kaynan’s tenancy on a month-to-month basis for no longer than 3 years to fill the gap. To help create this month-to-month lease, staff has competitively selected an appraisal company to value the buildings currently located on Kaynan’s leased parcel. The appraisal is now complete and the month -to-month lease has been created. The appraisal recommends a lease of $90,000 per year for the 5 buildings and associated land Kaynan is leasing. This rental rate is about $10,000 more per year than Kaynan is currently paying. The new lease is structured as a month-to-month with a 180-day cancellation provision, terminating no later than October 31, 2019. The lease is for 5 hangar buildings and 100,041 square feet of air side land. The maximum term of the lease is 3 years and the tenant will be required to remove the buildings and other improvements at the end of the term. EXHIBITS: A. Building and Land Lease Agreement STAFF RECOMMENDATION: Authorize the Mayor and City Clerk to execute a short term month-to-month lease, terminating no later than October 31, 2019, for 5 hangar buildings and 100,041 square feet of airside land at the Airport with Kaynan, Inc. AGENDA ITEM #7. d) LAG 16- LEASE AGREEMENT City of Renton to Kaynan, Inc. 1 BUILDING AND LAND LEASE AGREEMENT City of Renton to Kaynan, Inc. THIS BUILDING AND LAND LEASE (hereinafter “Lease”) is made and entered into this day of , 2016 by and between THE CITY OF RENTON, a Washington municipal corporation (hereinafter "Landlord"), and Kaynan, Inc., a Washington corporation (hereinafter “Tenant”). In consideration of the covenants and agreements set forth in this Lease, Landlord and Tenant agree as follows: 1. GRANT OF LEASE: 1.a.Documents of Lease: The following documents constitutes this Lease; Exhibit A - Lease Map and Legal Description Exhibit B - Aircraft Laws and Regulations, RCW 47.68.250: Public Highways and Transportation 1.b.Legal Description and Reservation of Easement: Landlord hereby leases to Tenant, and Tenant leases from Landlord for the term described in Section 3 below, parcels A, B, and C located at 350 Airport Way South, Buildings 1, 2, 3, 4, and 5 located on the parcels, and the surrounding land as further shown on Exhibit “A” (lease map), which is attached hereto and incorporated herein by this reference, (hereinafter, "Premises"). 1.c.Common Areas: Tenant, and its authorized representatives, subtenants, assignees, agents, invitees, and licensees, shall have the right to use, in common with others, on a non-exclusive basis and subject to the Airport Regulations and Minimum Standards (as they may be amended from time to time) pursuant to Section 8(e) below, the public portion of the Renton Municipal Airport (aka Clayton Scott Field, hereinafter referred to as “Airport”), including the runway and other public facilities provided thereon. 1.c.(1). Notwithstanding anything in this Lease to the contrary, Landlord acknowledges that direct access to the taxiways and runway from the Premises is essential to the conduct of Tenant’s business on the Premises and, except during construction activities occurring on the taxiways, runway or weather related events, Landlord shall ensure that Tenant and its representatives, subtenants, assignees, agents, invitees, and licensees have direct access to the taxiways and runway at all times during the Term. 1.d.Cancellation of Existing Leases:Tenant understands and agrees that as of the effective date of this Lease, this Lease shall supersede all pre-existing leases the Tenant has with the City. Therefore, the two existing leases the Tenant has with the City, LAG 003-84 and LAG 011-85, shall be terminated upon execution of this Lease. AGENDA ITEM #7. d) LAG 16- LEASE AGREEMENT City of Renton to Kaynan, Inc. 2 2. CONDITIONS: 2.a. Specific Conditions: This Lease, and Tenants’ rights and permitted uses under this Lease, are subject to the following: 2.a.(1). The Airport Regulations and Minimum Standards pursuant to Section 8(e) of this lease agreement, including Landlord's standards concerning operation of public aviation service activities from the Airport; and 2.a.(2). All such non-discriminatory charges and fees for such use of the Airport as may be established from time to time by Landlord. 2.b. No Conveyance of Airport: This Lease shall in no way be deemed to be a conveyance of the Airport, and shall not be construed as providing any special privilege for any public portion of the Airport except as described herein. The Landlord reserves the absolute right to lease or permit the use of any portion of the Airport for any purpose deemed suitable for the Airport, except that portion that is leased hereby. 2.c. Nature of Landlord's Interest: It is expressly understood and agreed that Landlord holds and operates the Airport and the Premises under and subject to a grant and conveyance thereof to Landlord from the United States of America, acting through its Reconstruction Finance Corporation, and subject to all the reservations, restrictions, rights, conditions, and exceptions of the United States therein and thereunder, which grant and conveyance has been filed for record in the office of the Recorder of King County, Washington, and recorded in Volume 2668 of Deeds, Page 386; and further that Landlord holds and operates said Airport and Premises under and subject to the State Aeronautics Acts of the State of Washington (chapter 165, laws of 1947), and any subsequent amendments thereof or subsequent legislation of said state and all rules and regulations lawfully promulgated under any act or legislation adopted by the State of Washington or by the United States or the Federal Aviation Administration. It is expressly agreed that the Tenant also accepts and will hold and use this Lease and the Premises subject thereto and to all contingencies, risks, and eventualities of or arising out of the foregoing, and if this Lease, its Term, or any conditions or provisions of this Lease are or become in conflict with or impaired or defeated by any such legislation, rules, regulations, contingencies or risks, the latter shall control and, if necessary, modify or supersede any provision of this Lease affected thereby, all without any liability on the part of, or recourse against, Landlord in favor of Tenant, provided that Landlord does not exceed its authority under the foregoing legislation, rules and regulations and provided further that, in the event that this Lease is modified or superseded by such legislation, rules, regulations, contingencies or risks, all compensation payable to the Landlord for a third party’s use of the improvements during the Term shall be paid to the Tenant, its successors or its assigns. 2.d. Future Development/Funding : Nothing contained in this Lease shall operate or be construed to prevent or hinder the future development, improvements, or operation of Airport AGENDA ITEM #7. d) LAG 16- LEASE AGREEMENT City of Renton to Kaynan, Inc. 3 by Landlord, its agents, successors or assigns, or any department or agency of the State of Washington or of the United States, or the consummation of any loan or grant of federal or state funds in aid of the development, improvement, or operation of the Renton Airport, but Landlord’s exercise of such rights shall not unreasonably interfere with Tenant’s rights under this Lease. 3.TERM:The term of this Lease for parcels A, B, and C, and for Buildings 1, 2, 3, 4, and 5, as shown on Exhibit A, shall be on a month-to-month basis commencing on November 1, 2016 (hereinafter “Commencement Date”). The month-to-month lease will terminate no later than October 31, 2019. The Lease may be cancelled before the Expiration Date by either the Landlord or the Tenant upon 180 days’ written notice. In no event shall the Lease extend beyond October 31, 2019. 4.RENT/FEES/CHARGES: 4.a.Minimum Monthly Rent: Tenant shall pay to Landlord a Minimum Monthly Rent in the sum of Seven Thousand Five Hundred and 00/100 Dollars ($7,500.00) PLUS Leasehold Excise Tax as described in Section 5, below, without deduction, offset, prior notice or demand, payable promptly in advance on the first day of each and every month. All such payments shall be made to the City of Renton, Airport Administration Office, 616 West Perimeter Road, Unit A, Renton, Washington 98057. The Minimum Monthly Rent, beginning on the Commencement Date, is computed as follows: Monthly Rental – Land Component (100,041 square feet)($0.7252 per square foot per year) = $72,549.73/yr, ($72,549.73/12 months = $6,045.81 per month) PLUS, leasehold excise tax. Monthly Rental – Building Component $17,450.27 total for all buildings located on premises Grand total of all buildings is $17,450.27 per year or $17,450.27/12 months = $1,454.19 per month, PLUS leasehold excise tax Yearly Rental – Land Component $72,549.73 Yearly Rental – Buildings Component $17,450.27 $90,000.00 per year or $7,500.00 per month PLUS, Leasehold Excise tax 4.b. Periodic Rental Adjustment: The Monthly Rent shall not be increased during the term of this Lease. 4.c. Late Payment Charge: If any Rent is not received by Landlord from Tenant by the tenth (10th) business day after such Rent is due, Tenant shall immediately pay to Landlord a AGENDA ITEM #7. d) LAG 16- LEASE AGREEMENT City of Renton to Kaynan, Inc. 4 late charge equal to five percent (5%) of the amount of such Rent. 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. If any check received by Landlord from Tenant is returned unpaid for any reason, Landlord reserves the right to charge, and Tenant agrees to pay, an additional charge up to the maximum amount allowed by law. Landlord’s acceptance of this additional charge shall not constitute a waiver of Tenant’s default with respect to Tenant’s returned check nor prevent Landlord from exercising all other rights and remedies available to Landlord under this Lease or under law. Unpaid amounts of rent, late charges, or additional charges shall bear interest at the rate of twelve (12%) percent per annum until paid. 4.d.Other Fees and Charges: Tenant shall pay, in addition to the Minimum Monthly Rent and other charges identified in this Lease, all non-discriminatory fees and charges now in effect or hereafter levied or established by Landlord or charged against the Premises and against other similarly situated Tenants at the Airport by Landlord, or levied or established by, or against the Premises by any other governmental agency or authority, being or becoming levied or charged against the Premises, structures, business operations, or activities conducted by or use made by Tenant of, on, and from the Premises, including without limitation, Aircraft Rescue and Fire Fighting or services rendered to the Tenant or the Premises. 5.LEASEHOLD EXCISE TAX: Tenant shall pay to Landlord the leasehold excise tax as established by RCW Chapter 82.29A, as amended, or any replacement thereof, which tax shall be in addition to the Minimum Monthly Rent and other charges payable under this Lease and shall be paid at the same time the Minimum Monthly Rent is due. If the State of Washington or any other governmental authority having jurisdiction thereover shall hereafter levy or impose any similar tax or charge on this Lease or the leasehold estate described herein, then Tenant shall pay such tax or charge when due. Such tax or charge shall be in addition to the Minimum Monthly Rent and other taxes or charges payable under this Lease. 6.PAYMENT OF UTILITIES AND RELATED SERVICES. Tenant shall pay for all utilities and services used in the Premises, including without limitation electricity, gas, water, sewer, garbage removal, janitorial service, and any other utilities and services used in the Premises. Landlord shall not be liable for any loss or damage caused by or resulting from any variation, interruption, or failure of any utility services due to any cause whatsoever, except, and only to the extent caused by, Landlord’s negligence. Landlord shall not be liable for temporary interruption or failure of such services incidental to the making of repairs, alterations or improvements, or due to accident, strike, act of God, or conditions or events not under Landlord's control. Temporary interruption or failure of utility services shall not be deemed a breach of the Lease or as an eviction of Tenant, or relieve Tenant from any of its obligations hereunder. AGENDA ITEM #7. d) LAG 16- LEASE AGREEMENT City of Renton to Kaynan, Inc. 5 7. TENANT'S ACCEPTANCE OF PREMISES : 7.a.Acceptance of Premises: By occupying the Premises, Tenant formally accepts the Premises in “AS IS” condition, and acknowledges that the Landlord has complied with all the requirements imposed upon it under the terms of this Lease with respect to the condition of the Premises at the Commencement Date. Tenant hereby accepts the Premises subject to all applicable zoning, federal, state, county and municipal laws, ordinances and regulations governing and regulating the use of the Premises, and accepts this Lease subject thereto and to all matters disclosed thereby and by any exhibits attached hereto. Tenant acknowledges that, except as otherwise provided in this Lease, neither Landlord nor Landlord's agents have made any representation or warranty as to the suitability of the Premises for the conduct of Tenant's business or use. Except as otherwise provided herein, Landlord warrants Tenant's right to peaceably and quietly enjoy the Premises without any disturbance from Landlord, or others claiming by or through Landlord. 8.USE OF PREMISES: 8.a.Use of Premises: The Premises are leased to the Tenant for the following described purposes and uses necessary to said purposes: 8.a.(1). Aircraft maintenance including inspection, major and minor repair, and major and minor alteration of airframes, engines, avionics, interiors and aircraft components; 8.a.(2). Storage and tie-down of aircraft, both indoors and outdoors; 8.b.Continuous Use: Tenant covenants that the Premises shall be continuously used for 8.a.(1) and 8.a.(2), and some or all of the remaining purposes set forth above during the Term, shall not be allowed to stand vacant or idle, subject to reasonable, temporary interruptions for maintenance, construction, or other purposes, and shall not be used for any other purpose without Landlord’s prior written consent. Consent of Landlord to other types of aviation activities will not be unreasonably withheld. 8.c.Non-Aviation Uses Prohibited: Tenant agrees that the Premises may not be used for uses or activities that are not related, directly or indirectly, to aviation. 8.d.Advertising: No advertising matter or signs shall be displayed on the Premises, at any time, without the prior written approval of Landlord, which approval will not be unreasonably withheld. 8.e. Conformity with Laws, Rules and Regulations: Tenant shall comply with applicable federal, state, county and municipal laws, ordinances and regulations concerning Tenant’s use of the Premises. Tenant shall keep and operate the Premises and all structures, improvements, and activities in or about the Premises in conformity with the Airport Regulations and Minimum Standards and other reasonable rules and regulations now or hereafter adopted by AGENDA ITEM #7. d) LAG 16- LEASE AGREEMENT City of Renton to Kaynan, Inc. 6 Landlord, provided that all such Airport Regulations and Minimum Standards and other rules adopted hereafter are non-discriminatory, all at Tenant’s cost and expense. 8.f. Waste; Nuisance; Illegal Activities: Tenant shall not permit any waste, damage, or injury to the Premises or improvements thereon, nor allow the maintenance of any nuisance thereon, nor the use thereof for any illegal purposes or activities. 8.g. Increased Insurance Risk: Tenant shall not do or permit to be done in or about the Premises anything which will be dangerous to life or limb, or which will increase any insurance rates upon the Premises or other buildings and improvements at the Airport. 8.h. Hazardous Waste : 8.h.(1). Tenant’s Representation and Warranty: 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 and will not involve the use, production, disposal or bringing on to the Premises of any hazardous substances, hazardous material, wast, pollutant, or contaminant, as those terms are defined in any federal, state, county, or city law or regulation (collectively, “Hazardous Substances”) other than fuels, lubricants and other products which are customary and necessary for use in Tenant’s ordinary course of business, 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 by Tenant of Hazardous Substances, in, on or under the Premises, or incorporated in any improvements or alterations made by Tenant to the Premises, at Tenant’s sole cost and expense. 8.h.(2). Standard of Care: Tenant agrees to use a high degree of care to be certain that no Hazardous Substances are improperly used, released or disposed in, on or under the Premises during the Term by Tenant, or its authorized representatives or assigns, or are improperly used, released or disposed on the Premises by the act of any third party. 8.h.(3). Compliance Notification: In the event of non-compliance by Tenant, 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 with laws as it deems advisable to protect its interest in the Premises, 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 Airport, 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 AGENDA ITEM #7. d) LAG 16- LEASE AGREEMENT City of Renton to Kaynan, Inc. 7 expiration or termination of the Term. Tenant shall notify Landlord immediately of any release of any Hazardous Substances in, on or under the Premises. 8.h.(4). Indemnity: 8.h.(4)(a). Landlord shall have no responsibility to the Tenant, or any other third party, for remedial action under R.C.W. Chapter 70.105D, or any other federal, state, county or municipal laws, in the event of a release of or disposition of any Hazardous Substances in, on or under the Premises during the Term that were caused by Tenant. Tenant shall defend, indemnify and hold harmless Landlord, its officials, employees, agents and contractors (hereinafter “City Indemnitees”) from any claims, obligation, or expense (including, without limitation, third party claims for personal injury or real or personal property damage), actions, administrative proceedings, judgments, penalties, fines, liability, loss, damage, obligation or expense, including, but not limited to, fees incurred by the Landlord or City Indemnitees for attorneys, consultants, engineers, damages, environmental resource damages, and remedial action under R.C.W. Chapter 70.105D or other remediation, arising by reason of the release or disposition of any Hazardous Substances in, on or under the Premises during the Term that are caused by Tenant. 8.h.(4)(b). Tenant shall have no responsibility to the Landlord, or any other third party, for remedial action under R.C.W. Chapter 70.105D, or other federal, state, county or municipal laws, nor shall Tenant have any other liability or responsibility of any kind, in the event of the presence, release, or disposition of any Hazardous Substance on, in, or under the Premises unless such presence, release, or disposition of any Hazardous Substance was caused by Tenant. Landlord shall defend, indemnify and hold harmless Tenant, and their, owners, directors, officers, agents, employees, and contractors (collectively, “Indemnitees”) from any claims (including without limitation third party claims for personal injury or real or personal property damage), actions, administrative proceedings, judgments, penalties, fines, liability, loss, damage, obligation or expense, including, but not limited to, fees incurred by Tenant or any Indemnitee for attorneys, consultants, engineers, damages, environmental resource damages, and remedial action under R.C.W. Chapter 70.105D or other remediation, arising from or in connection with the presence, suspected presence, release or suspected release of any Hazardous Substances in, on or under the Premises that is not caused, in whole or in part, by Tenant or the Indemnitees. 8.h.(4)(c). The provisions of this Subsection 8.h.(4) 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. 8.h.(5). Dispute Resolution: In the event of any dispute between the parties concerning whether any Hazardous Substances were brought onto the Premises by Tenant, or AGENDA ITEM #7. d) LAG 16- LEASE AGREEMENT City of Renton to Kaynan, Inc. 8 whether any release of or disposition of any Hazardous Substance was caused by Tenant, the parties agree to submit the dispute for resolution by arbitration upon demand by either party. Landlord and Tenant do hereby agree that the arbitration process shall be limited to not more than one hundred fifty (150) calendar days, using the following procedures: 8.h.(5).a. Landlord shall select and appoint one arbitrator and Tenant shall select and appoint one arbitrator, both appointments to be made within a period of sixty (60) days from the end of the negotiation period cited in Section 8.h.(5). Landlord and Tenant shall each notify the other of the identity of their arbitrator and the date of the postmark or personal delivery of the letter shall be considered the date of appointment. 8.h.(5).b. The two appointed arbitrators shall meet, and shall make their decision in writing within thirty (30) days after the date of their appointment. If the appointment date for either arbitrator is later than the other, the latter date shall be the appointment date for purposes of the thirty (30) day deadline. 8.h.(5).c. If the two arbitrators are unable to agree within a period of thirty (30) days after such appointment, they shall, within a period of thirty (30) days after the first thirty (30) day period, select a third arbitrator. If such third arbitrator has not been selected or if such third arbitrator has not accepted such appointment within such thirty (30) day period, either Permittor or Permittee may apply to the head of the Seattle office of the American Arbitration Association to appoint said third arbitrator. 8.h.(5).d. The three arbitrators shall have thirty (30) days from the date of selection of the third arbitrator to reach a majority decision unless the time is extended by agreement of both parties. The decision of the majority of such arbitrators shall be final and binding upon the parties hereto. 8.h.(5).e. The arbitrators shall be environmental consultants with experience in the identification and remediation of Hazardous Substances. The arbitrators shall make their decision in writing within sixty (60) days after their appointment, unless the time is extended by the agreement of the parties. The decision of a majority of the arbitrators shall be final and binding upon the parties. Each party shall bear the cost of the arbitrator named by it. The expenses of the third arbitrator shall be borne by the parties equally. 8.i. Aircraft Registration Compliance: The Tenant is hereby notified of the Washington State law concerning aircraft registration and the requirement that the Tenant comply therewith. See Exhibit B (“Aircraft Laws and Regulations, RCW 47.68.250 Public Highways and Transportation”). 8.i.(1). Tenant shall annually, during the month of January, submit a report of aircraft status to the Airport Manager. One copy of this report shall be used for each aircraft owned by the Tenant, and sufficient forms will be submitted to identify all aircraft owned by the Tenant AGENDA ITEM #7. d) LAG 16- LEASE AGREEMENT City of Renton to Kaynan, Inc. 9 and the current registration status of each aircraft. If an aircraft is unregistered, an unregistered aircraft report shall also be completed and submitted to the Airport Manager. 8.i.(2). Tenant shall require from an aircraft owner proof of aircraft registration or proof of intent to register an aircraft as a condition of sub-leasing tie-down or hangar space for an aircraft. Tenant shall further require that annually, thereafter, each aircraft owner using the Tenant’s Premises submit a report of aircraft status, or, if an aircraft is unregistered, an unregistered aircraft report. Tenant shall annually, during the month of January, collect the aircraft owners’ reports and submit them to the Airport Manager. 9. MAINTENANCE: 9.a. Maintenance of Premises: The Premises and all of the improvements or structures thereon and authorized by the Landlord for use by the Tenant, shall be used and maintained by Tenant in an operable, neat, orderly, and sanitary manner. Tenant is responsible for the clean- up and proper disposal at reasonable and regular intervals of rubbish, trash, waste, and leaves upon the Premises, including that blown against fences bordering the Premises, whether as a result of the Tenant’s activities or having been deposited upon the Premises from other areas. Tenant shall maintain in good condition and repair the Premises, subject to ordinary wear and tear, including, the interior walls, floors, and any interior portions of all doors, windows, and glass, parking areas, landscaping, fixtures, heating, ventilating and air conditioning, including exterior mechanical equipment. Tenant shall make all repairs, replacements and renewals, whether ordinary or extraordinary, anticipated or unforeseen, that are necessary to maintain the Premises in the condition required by this Section. 9.b. Removal of Snow/Floodwater/Mud : Tenant shall be responsible for removal from the Premises, all snow and/or floodwaters or mud deposited, with the disposition thereof to be accomplished in such a manner so as to not interfere with or increase the maintenance activities of Landlord upon the public areas of the Airport. 9.c. Maintenance, Repair, and Marking of Pavement: Tenant shall be responsible for, and shall perform, the maintenance, repair and marking (painting) of pavement surrounding the buildings within and on the Premises. Such maintenance and repair shall include, as a minimum, crack filling, weed control, slurry seal, and the replacement of unserviceable concrete or asphalt pavements, as necessary. To the degree the concrete and asphalt pavements are brought to FAA standards at any time during the Term of this Lease, Tenant shall maintain the concrete and asphalt pavements in such condition. 9.d. Right of Inspection: Tenant will allow Landlord or Landlord’s agent, free access at all reasonable times to the Premises for the purpose of inspection, or for making repairs, additions or alterations to the Premises, or any property owned by or under the control of Landlord. Landlord shall provide ten (10) days’ advance notice of any such inspection and use AGENDA ITEM #7. d) LAG 16- LEASE AGREEMENT City of Renton to Kaynan, Inc. 10 reasonable efforts not to interfere with Tenant’s use of the Premises during any such inspection. 9.e. Landlord May Perform Maintenance: If Tenant fails to perform Tenant's obligations under this section, Landlord may at its option (but shall not be required to) enter the Premises, after thirty (30) days' prior written notice to Tenant, except in the event of an emergency when no notice shall be required, and put the same in good order, condition and repair, and the cost thereof together with interest thereon at the rate of twelve (12%) percent per annum shall become due and payable as additional rental to Landlord together with Tenant's next installment of Rent. 10. ALTERATIONS: 10.a. Protection from Liens: Before commencing any work relating to alterations, additions and improvements affecting the Premises (“Work”), Tenant shall notify Landlord in writing of the expected date of commencement of the Work. 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 Premises free and clear of all mechanics' materialmen's liens or any other liens resulting from any Work. 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 it 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 any mechanic’s or other liens, then Landlord may, at its option, 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 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 at the rate of twelve (12%) percent per year 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. 10.b. Bond: At any time Tenant either desires to or is required to make any repairs, alterations, additions, improvements or utility installation thereon, or otherwise, Landlord may at its sole option require Tenant, at Tenant's sole cost and expense, to obtain and provide to Landlord a lien and completion bond in an amount equal to one and one-half (1-1/2) times the estimated cost of such improvements, to insure Landlord against liability for mechanics and materialmen's liens and to insure completion of the work. AGENDA ITEM #7. d) LAG 16- LEASE AGREEMENT City of Renton to Kaynan, Inc. 11 10.c. Landlord May Make Improvements: Tenant agrees that Landlord may, at its option and at its expense, make repairs, alterations or improvements which Landlord may deem necessary or advisable for the preservation, safety or improvement of utilities or Airport infrastructure on the Premises, if any. Landlord shall provide ten (10) days’ advance notice of any such work and use reasonable efforts to not interfere with Tenant’s use of the Premises during any such work. 11. NEW IMPROVEMENTS: There shall be no new improvements made to the premises or installed on the premises by the Tenant. 12. REMOVAL OF EXISTING BUILDINGS:The Tenant acknowledges that pursuant to provisions in leases LAG 003-84 and LAG 011-85, the Landlord had the option of requiring Tenant, at Tenant’s sole cost and expense, to remove Buildings 1, 2, 3, 4, and 5 at the termination of those leases. As those leases will be terminated upon execution of this Lease, the Landlord may require Tenant to remove those buildings at this time. However, Tenant desires to remain in those buildings for the duration of this Lease. Therefore, as further consideration for this Lease, it is agreed that upon the expiration or sooner termination of the Term of this Lease LAG 16-_____, Building 1, Building 2, Building 3, Building 4, and Building 5 as identified in the attached Exhibit A, will be completely removed from the premises by the Tenant, at Tenant’s cost and expense. All utilities to these buildings will be properly disconnected where they enter the buildings, and removed from within the buildings and/or under the buildings within the footprint of the buildings at Tenant’s cost and expense. The buildings’ existing concrete or asphalt slabs shall be removed from the premises, and new pavement meeting FAA specifications shall be installed all at Tenant’s cost and expense. 12. EXEMPTION OF LANDLORD FROM LIABILITY. Landlord or Landlord’s agents shall not be liable for injury to persons or to Tenant’s business or loss of income therefrom or for damage which may be sustained by the person, goods, wares, merchandise or property of Tenant, its authorized representatives, or any other person in or about the Premises, caused by or resulting from (a) fire, electricity, gas, water or rain which may leak or flow from or into any part of the Premises, (b) any defect in or the maintenance or use of the Premises, or any improvements, fixtures and appurtenances thereon, (c) the Premises or any improvements, fixtures and appurtenances thereon becoming out of repair, (d) the breakage, leakage, obstruction or other defects of the pipes, sprinklers, wires, appliances, plumbing, heating, ventilating or air conditioning or lighting fixtures of the Premises, (e) flooding of the Cedar River or other body of water, or from any other source whatsoever, whether within or without the Premises; or (f) any act or omission of any other tenant or occupant of the building in which the Premises are located, or their agents, servants, employees, or invitees, provided, that the foregoing exemption shall not apply to losses to the extent caused by Landlord’s or its agents’, contractors’, or employees’ negligence or willful misconduct. 13. INDEMNITY AND HOLD HARMLESS: Tenant shall defend, indemnify and hold harmless Landlord against any and all claims arising from (a) the conduct and management of AGENDA ITEM #7. d) LAG 16- LEASE AGREEMENT City of Renton to Kaynan, Inc. 12 or from any work or thing whatsoever done in or about the Premises or the improvements or equipment thereon during the Term, or (b) arising from any act or negligence or willful misconduct of the Tenant or any of its agents, contractors, patrons, customers, employees, or invitees, or (c) arising from any accident, injury, or damage whatsoever, however caused, to any person or persons, or to the property of any person, persons, corporation or other entity occurring during the Term in, on, or about the Premises, and from and against all costs, attorney's fees, expenses, and liabilities incurred in or from any such claims or any action or proceeding brought against the Landlord by reason of any such claim, except to the extent caused by the sole negligence of Landlord, its agents, contractors, employees, or its authorized representatives. Notwithstanding the foregoing, Tenant’s indemnity shall not apply to claims arising from aviation activities of its patrons, customers, subtenants, or invitees. Tenant, on notice from Landlord, shall resist or defend such action or proceeding forthwith with counsel reasonably satisfactory to, and approved by, Landlord. Landlord shall indemnify, defend, and hold Tenant harmless from and against any and all claims, losses, damages, costs, attorney’s fees, expenses, and liabilities arising from the negligence or willful misconduct of Landlord or any of its agents, contractors, employees, or authorized representatives. On notice from Tenant, Landlord, at Landlord’s expense, shall defend any such action or proceeding forthwith. The indemnity in this Section shall not apply to Hazardous Substances, which is addressed elsewhere in this Lease. 14. ASSIGNMENT & SUBLETTING: 14.a. Assignment/Subletting: 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 written consent, which consent shall not be unreasonably withheld, conditioned, or delayed. Any assignment, encumbrance or sublease, whether by operation of law or otherwise, without Landlord’s consent shall be void and shall constitute a default by Tenant under this Lease. No consent to any assignment or sublease shall constitute a waiver of the provisions of this Section and no other or subsequent assignment or sublease shall be made without Landlord’s prior written consent. Before an assignment or sub-lease will be approved, the proposed assignee or sub-tenant must comply with provisions of the then current Airport Leasing Policies, including, but not limited to the “Analysis of Tenant’s Financial Capacity,” independent of Tenant’s compliance or Financial Capacity. Consent shall not be unreasonably withheld, conditioned, or delayed. In the case of an assignment of the full leasehold interest and/or complete sale of the stock or other interests in the entity constituting Tenant and concomitant transfer of ownership of said entity, (a) in the case of an assignment, the proposed assignee shall deliver to Landlord a written instrument duly executed by the proposed assignee stating that it has examined this Lease and agrees to assume, be bound by and perform all of Tenant’s obligations under this Lease accruing after the date of such assignment, to the same extent as if it were the original Tenant, and (b) in the case of a stock transfer, Transferee shall deliver a written acknowledgment that it shall continue to be bound by all the provisions of this Lease after the AGENDA ITEM #7. d) LAG 16- LEASE AGREEMENT City of Renton to Kaynan, Inc. 13 transfer. Except in the case of an assignment of the full leasehold interest, any assignment permitted herein will not relieve Tenant of its duty to perform all the obligations set out in this Lease or addenda hereto. In no event will the assignment of the full leasehold interest or the complete sale of the stock or other interests in the entity constituting Tenant and concomitant transfer of ownership of said entity cause an extension of the Term of this Lease. 14.b. Conditions to Assignment or Sublease: Tenant agrees that any instrument by which Tenant assigns or sublets all or any portion of the Premises shall (i) incorporate this Lease by reference, (ii) expressly provide that the assignee or subtenant may not further assign or sublet the assigned or sublet space without Landlord’s prior written consent (which consent shall not, subject to Landlord’s rights under this Section, be unreasonably withheld, conditioned, or delayed), (iii) acknowledge that the assignee or subtenant will not violate the provisions of this Lease, and (iv) in the case of any assignment, acknowledge that Landlord may enforce the provisions of this Lease directly against such assignee. 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. Acceptance of rent by the Landlord shall not be a waiver of any of Landlord’s remedies against Tenant for violation of provisions of this Lease. A subtenant may cure Tenant’s default. In either event, Landlord shall apply the amount collected from the assignee or subtenant to Tenant’s obligation to pay Rent under this Lease. 14.c. No Release of Tenant's Liability: 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, unless Landlord otherwise agrees in writing. Notwithstanding the foregoing, in the event that Landlord’s consent to assignment is obtained for a complete assignment and Assignee agrees in writing to assume all of the obligations and liabilities of this Lease accruing after such assignment, Tenant shall be relieved of all liability arising from this Lease and arising out of any act, occurrence or omission occurring after Landlord’s consent is obtained. To the extent that any claim for which indemnification of the Landlord (including with respect to Hazardous Substances) arises after Tenant’s complete assignment for conduct predating said assignment, the Tenant shall not be relieved of obligations or liability arising from this Lease. 14.d. Documentation: No permitted subletting by Tenant shall be effective until there has been delivered to Landlord a copy of the sublease and an executed Operating Permit and Agreement in which the subtenant agrees not to violate and to act in conformity with the terms and provisions of this Lease; provided that no Operating Permit shall be required for the subletting of hangar or tie-down space for aircraft storage purposes. 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. AGENDA ITEM #7. d) LAG 16- LEASE AGREEMENT City of Renton to Kaynan, Inc. 14 14.e. 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 terminate all or any existing subleases or subtenancies. 15. DEFAULT AND REMEDIES: 15.a. Default: The occurrence of any of the following shall constitute a default by Tenant under this Lease: 15.a.(1). Failure to Pay Rent: Failure to pay Rent when due, if the failure continues for a period of three (3) business days after notice of such default has been given by Landlord to Tenant. 15.a.(2). Failure to Comply with Airport Regulations and Minimum Standards: Failure to comply with the Airport Regulations and Minimum Standards, 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. However, said inability to cure within twenty-four (24) hours, diligence and good faith notwithstanding, cannot be based on financial incapacity. 15.a.(3). Failure to Perform or Cure: 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 of the Landlord’s notice and diligently and in good faith continues to cure the default. 15.a.(4). 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. 15.a.(5). Failure to Comply With Laws: It shall be a default of this Lease if the Tenant fails to comply with any of the statutes, ordinances, rules, orders, regulations, and requirements of the federal, state, and/or city governments, or any terms of this Lease. 15.b. Additional Security: If Tenant is in default under this Lease, and such default remains uncured for more than three (3) business days after Landlord gives Tenant notice of such default, then Landlord, at Landlord’s option, may in addition to other remedies, require AGENDA ITEM #7. d) LAG 16- LEASE AGREEMENT City of Renton to Kaynan, Inc. 15 Tenant to provide adequate assurance of future performance of all of Tenant’s obligations under this Lease in the form of a deposit in escrow, a guarantee by a third party acceptable to Landlord, a surety bond, a letter of credit or other security acceptable to, and approved by, Landlord. If Tenant fails to provide such adequate assurance within twenty (20) days of receipt of a request by Landlord for such adequate assurance, such failure shall constitute a material breach of this Lease and Landlord may, at its option, terminate this Lease. 15.c. Remedies: If Tenant commits a default, then following the expiration of the notice and cure periods set forth in Section 15.a. above, Landlord shall have the following alternative remedies, which are in addition to any remedies now or later allowed by law, and Landlord shall use reasonable efforts to mitigate its damages: 15.c.(1). Maintain Lease in Force: To 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 conditions and for such a term, and to perform 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 stored in a public warehouse or elsewhere at the cost of and on 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 may elect to terminate this Lease by virtue of such previous default of Tenant so long as Tenant remains in default under this Lease. 15.c.(2). Terminate Lease: To 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) any and all unpaid Rent which had been earned at the time of such termination, plus (ii) any and all Rent which would have been earned after termination until the time of occupancy of the Premises by a new tenant following the re- letting of the Premises, plus (iii) 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 business would be likely to result therefrom, including without limitation, 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 re-letting to a new tenant, including repairs or necessary alterations to the Premises for such re-letting, (D) leasing commissions incident to re-letting to a new tenant, and (E) any other costs necessary or appropriate to re-let the Premises; plus (iv) at Landlord's election, such other amounts in addition to or in lieu of the foregoing as may be permitted AGENDA ITEM #7. d) LAG 16- LEASE AGREEMENT City of Renton to Kaynan, Inc. 16 from time to time by applicable state law. The amounts referenced in this Section include interest at 12% per annum. 16. BINDING AGREEMENT: Subject to the restriction upon assignment or subletting as set forth herein, all of the terms, conditions, and provisions of this Lease shall be binding upon the parties, their successors and assigns, and in the case of a Tenant who is a natural person, his or her personal representative and heirs. 17. CONDEMNATION: If the whole or any substantial part of the Premises shall be condemned or taken by Landlord or any county, state, or federal authority for any purpose, then the Term shall cease as to the part so taken from the day the possession of that part shall be required for any purpose, and the rent shall be paid up to that date. From that day the Tenant shall have the right to either cancel this lease and declare the same null and void, or to continue in the possession of the remainder of the same under the terms herein provided, except that the rent shall be reduced in proportion to the amount of the Premises taken for such public purposes. All damages awarded for such taking for any public purpose shall belong to and be the property of the Landlord, whether such damage shall be awarded as compensation for the diminution in value to the leasehold, or to the fee of the Premises herein leased. Damages awarded for the taking of Tenant's improvements located on the Premises shall belong to and be awarded to Tenant. 18. SURRENDER OF PREMISES: Tenant shall quit and surrender the Premises at the end of the Term in a condition as good as the reasonable use thereof would permit, normal wear and tear excepted. Alterations, additions or improvements which may be made by either of the parties hereto on the Premises, except movable office furniture or trade fixtures put in at the expense of Tenant, shall be and remain the property of the Landlord and shall remain on and be surrendered with the Premises as a part thereof at the termination of this Lease without hindrance, molestation, or injury. Tenant may remove from the Premises movable office furniture or trade fixtures put in at the expense of Tenant. Tenant shall, at its sole expense, properly and promptly repair to Landlord’s reasonable satisfaction any damage to the Premises occasioned by Tenant’s use thereof, or by the removal of Tenant’s movable office furniture or trade fixtures and equipment, which repair shall include the patching and filling of holes and repair of structural damage. 19.INSURANCE: 19.a. Personal Property: Tenant, at its expense, shall maintain in force during the Term a policy of special form – causes of loss or all risk property insurance on all of Tenant’s alterations, improvements, trade fixtures, furniture and other personal property in, on or about the Premises, in an amount equal to at least their full replacement cost. Any proceeds of any such policy available to Tenant shall be used by Tenant for the restoration of Tenant’s alterations, improvements and trade fixtures and the replacement of Tenant’s furniture and AGENDA ITEM #7. d) LAG 16- LEASE AGREEMENT City of Renton to Kaynan, Inc. 17 other personal property. Any portion of such proceeds not used for such restoration shall belong to Tenant. 19.b. Liability Insurance. Tenant, at its expense, shall maintain in force during the Term the following types of insurance (or equivalents): a policy of commercial general liability insurance (including premises liability), with the following limits: $1,000,000 per occurrence, $2,000,000 annual aggregate. Landlord shall be named as an additional insured on Tenant’s liability insurance solely with respect to the operations of the named insured (i.e., Tenant) and that coverage being primary and non-contributory with any other policy(ies) carried by, or available to, the Landlord. The Tenant shall provide the Landlord with written notice of any policy cancellation, within two business days of their receipt of such notice. 19.c. Insurance Policies: Insurance required hereunder shall be written by a company or companies acceptable to Landlord. Landlord reserves the right to establish and, from time- to-time, to increase minimum insurance coverage amounts. Insurance required herein shall provide coverage on an occurrence basis, not a claims-made basis. Notice of increased minimum insurance coverage amounts shall be sent to the Tenant at least ninety (90) days prior to the annual renewal date of the Tenant’s insurance. Prior to possession the Tenant shall deliver to Landlord documents, in a form acceptable to Landlord, evidencing the existence and amounts of such insurance. Tenant shall, prior to the expiration of such policies, furnish Landlord with evidence of renewal of such insurance, in a form acceptable to Landlord. Tenant shall not do or permit to be done anything which shall invalidate the insurance policies referred to above. Tenant shall forthwith, upon Landlord’s demand, reimburse Landlord for any additional premiums for insurance carried by Landlord attributable to any act or omission or operation of Tenant causing such increase in the cost of insurance. If Tenant shall fail to procure and maintain such insurance, then Landlord may, but shall not be required to, procure and maintain the same, and Tenant shall promptly reimburse Landlord for the premiums and other costs paid or incurred by Landlord to procure and maintain such insurance. Failure on the part of the Tenant to maintain the insurance as required shall constitute a material breach of the lease, upon which the Landlord may, after giving five business days notice to the Tenant to correct the breach, terminate the Lease or, at its discretion, procure or renew such insurance and pay any and all premiums in connection therewith, with any sums so expended to be repaid to the Landlord on demand. 19.d.Waiver of Subrogation: Tenant and Landlord each waives any and all rights of recovery against the other, or against the officers, employees, agents and representatives of the other, for loss of or damage to such waiving party or its property or the property of others under its control, where such loss or damage is insured against under any insurance policy in force at the time of such loss or damage. Tenant shall, upon obtaining the policies of insurance required hereunder, give notice to the insurance carriers that the foregoing mutual waiver of subrogation is contained in this Lease. AGENDA ITEM #7. d) LAG 16- LEASE AGREEMENT City of Renton to Kaynan, Inc. 18 20.TAXES: Tenant shall be responsible for the payment of any and all taxes and assessments upon any property or use acquired under this Lease and upon any alterations or improvement made by Tenant to the Premises. 21.NO WAIVER: It is further covenanted and agreed between the parties hereto that no waiver by Landlord of a breach by Tenant of any covenant, agreement, stipulation, or condition of this Lease shall be construed to be a waiver of any succeeding breach of the same covenant, agreement, stipulation, or condition, or a breach of any other covenant agreement, stipulation, or condition. The acceptance by the Landlord of rent after any breach by the Tenant of any covenant or condition by Tenant to be performed or observed shall be construed to be payment for the use and occupation of the Premises and shall not waive any such breach or any right of forfeiture arising therefrom. 22.NOTICES: All notices or requests required or permitted under this Lease shall be in writing; shall be personally delivered, delivered by a reputable express delivery service such as Federal Express or DHL, or sent by certified mail, return receipt requested, postage prepaid, and shall be deemed delivered on receipt or refusal. All notices or requests to Landlord shall be sent to Landlord at Landlord’s address set forth below and all notices or requests to Tenant shall be sent to Tenant at Tenant’s address set forth below: Landlord’s Address:Airport Administration Office Attn: Airport Manager 616 West Perimeter Road, Unit A Renton, Washington 98057 Tenant’s Address:Kaynan, Inc. Attention: Marty or Ben Ellison 350 Airport Way South Renton, Washington 98057 Either party may change the address to which notices shall be sent by written notice to the other party. 23.DISCRIMINATION PROHIBITED: 23.a.Discrimination Prohibited: Tenant covenants and agrees not to discriminate against any person or class of persons by reason of race, color, creed, sex or national origin, or any other class of person protected by federal or state law or the Renton City Code, in the use of any of its facilities provided for the public in the Airport. Tenant further agrees to furnish services on a fair, equal and not unjustly discriminatory basis to all users thereof, and to charge AGENDA ITEM #7. d) LAG 16- LEASE AGREEMENT City of Renton to Kaynan, Inc. 19 on a fair, reasonable and not unjustly discriminatory basis for each unit of service; provided that Tenant may make reasonable and non-discriminatory discounts, rebates, or other similar types of price reductions to volume purchasers. 23.b.Minority Business Enterprise Policy: It is the policy of the Department of Transportation that minority business enterprises as defined in 49 C.F.R. Part 23 shall have the maximum opportunity to participate in the performance of leases as defined in 49 C.F.R. 23.5. Consequently, this Lease is subject to 49 C.F.R. Part 23, as applicable. No person shall be excluded from participation in, denied the benefits of or otherwise discriminated against in connection with the award and performance of any contract, including leases covered by 49 C.F.R. Part 23, on the grounds of race, color, national origin or sex. 23.c.Application to Subleases: Subject to the provisions of Section 14 of this Lease, Tenant agrees that it will include the above clause in all assignments of this Lease or sub- leases, and cause its assignee(s) and sublessee(s) to similarly include the above clause in further assignments or subleases of this Lease. 24.FORCE MAJEURE: In the event that either party hereto shall be delayed or hindered in or prevented from the performance of any act required hereunder by reason of strikes, lockouts, labor troubles, inability to procure materials, failure of power, restrictive governmental laws or regulations, riots, insurrections, war, or other reason of like nature not the fault of the party delayed in performing work or doing acts required under the terms of this Lease, then performance of such act shall be extended for a period equivalent to the period of such delay. The provisions of this Section shall not, however, operate to excuse Tenant from the prompt payment of rent, or any other payment required by the terms of this Lease, to be made by Tenant. 25.TRANSFER OF PREMISES BY LANDLORD: In the event of any sale, conveyance, transfer or assignment by Landlord of its interest in the Premises, Landlord shall be relieved of all liability arising from this Lease and arising out of any act, occurrence or omission occurring after the consummation of such sale, conveyance, transfer or assignment, provided that the Landlord’s transferee shall have assumed and agreed to carry out all of the obligations of the Landlord under this Lease. 26.ATTORNEYS’ FEES AND COSTS; COLLECTION COSTS: If either party brings 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 prevailing party shall be entitled to reasonable attorneys’ fees and costs of litigation as established by the court. If the matter is not litigated or resolved through a lawsuit, then any attorneys’ fees for collection of past-due rent or enforcement of any right of Landlord or duty of Tenant hereunder shall entitle Landlord to recover, in addition to any late payment charge, any costs of collection or enforcement, including reasonable attorney’s fees. For the purpose AGENDA ITEM #7. d) LAG 16- LEASE AGREEMENT City of Renton to Kaynan, Inc. 20 of this Section26, attorney’s fees shall include a reasonable rate for attorney’s employed by the City. 27.EMERGENCY RESPONSE: Tenant must provide to the Airport Manager reasonable access and response in times of emergency or urgency. The Tenant is wholly responsible to keep an up-to-date listing of aircraft types, identification, and owners on file and at the Airport Manager’s office. 28.DEFINITIONS: As used in this Lease, the following words and phrases, whether or not capitalized, shall have the following meanings: “Additional Rent” means any charges or monetary sums to be paid by Tenant to Landlord under the provisions of this Lease other than Minimum Monthly Rent. “Authorized representatives” means any officer, agent, employee, independent contractor or invitee of either party. “Environmental Laws and Requirements” means any and all federal, state, local laws, statutes, ordinances, rules, regulations and/or common law relating to environmental protection, contamination, the release, generation, production, transport, treatment, processing, use, disposal, or storage of Hazardous Substances, worker health or safety or industrial hygiene, and the regulations promulgated by regulatory agencies pursuant to these laws, and any applicable federal, state, and/or local regulatory agency-initiated orders, requirements, obligations, directives, notices, approvals, licenses, or permits. “Expiration” means the coming to an end of the time specified in the Lease as its duration, including any extension of the Term. “Hazardous Substances” means any and all material, waste, chemical, compound, substance, mixture or byproduct that is identified, defined, designated, listed, restricted or otherwise regulated under any Environmental Laws and Requirements as a “hazardous constituent,” “hazardous substance,” “hazardous material,” “extremely hazardous material,” “hazardous waste,” “acutely hazardous waste,” “hazardous waste constituent,” “infectious waste,” “medical waste,” “biohazardous waste,” “extremely hazardous waste,” “pollutant,” “toxic pollutant” or “contaminant.” The term “Hazardous Substances” includes, without limitation, any material or substance which is (i) hexavalent chromium; (ii) pentachlorophenol; (iii) volatile organic compounds; (iv) petroleum; (v) asbestos; (vi) designated as a “hazardous substance” pursuant to Section 311 of the Federal Water Pollution Control Act, 33 U.S.C. § 1251 et seq. (33 U.S.C. § 1321); (vii) defined as a “hazardous waste” pursuant to Section 1004 of the Federal Resource Conservation and Recovery Act, 42 U.S.C. § 6901 et seq. (42 U.S.C. § 6903); (viii) defined as a “hazardous substance” pursuant to Section 101 of the Comprehensive Environmental Response, Compensation and Liability Act of 1980, as amended, 42 U.S.C. § AGENDA ITEM #7. d) LAG 16- LEASE AGREEMENT City of Renton to Kaynan, Inc. 21 9601 et seq. (42 U.S.C. § 9601); or (ix) designated as a “hazardous substance” pursuant to the Washington Model Toxics Control Act, RCW 70.105D.010 et seq. “Parties” means Landlord and Tenant. “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. “Rent” means Minimum Monthly Rent, as adjusted from time to time under this Lease, and Additional Rent. 29.GENERAL PROVISIONS: 29.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. 29.b.Governing Law: This Lease shall be governed by, and construed and enforced in accordance with, the laws of the State of Washington. 29.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. 29.d.Jurisdiction and Venue: 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 of the State of Washington in and for the County of King or in the United States District Court for the Western District of Washington. 29.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. 29.f.Captions: Section captions contained in this Lease are included for convenience only and form no part of the agreement between the parties. 29.g.Assignee as Tenant: The term "Tenant" shall be deemed to include the assignee where there is a full assignment of the Lease. AGENDA ITEM #7. d) LAG 16- LEASE AGREEMENT City of Renton to Kaynan, Inc. 22 29.h.Effectiveness: This Lease shall not be binding or effective until properly executed and delivered by Landlord and Tenant. 29.i.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. 29.j.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. 29.k.Joint and Several Liability: If Tenant is composed of more than one person or entity, then the obligations of all such persons and entities under this Lease shall be joint and several. 29.l.No Recordation Without Consent of Landlord: Tenant shall not record this Lease or any memorandum of this Lease without Landlord’s prior written consent. 29.m.Cumulative Remedies: No remedy or election hereunder shall be deemed exclusive, but shall, wherever possible, be cumulative with all other remedies at law or in equity. 29.n.Corporate Authority: If Tenant is a corporation or limited liability company, each individual executing this Lease on behalf of said corporation or limited liability company represents and warrants that he is duly authorized to execute and deliver this Lease on behalf of said corporation or limited liability company pursuant to duly enacted resolutions or other action of such corporation or limited liability company and that this Lease is binding upon said corporation or limited liability company in accordance with its terms. AGENDA ITEM #7. d) LAG 16- LEASE AGREEMENT City of Renton to Kaynan, Inc. 23 TENANT:LANDLORD: KAYNAN, INC.THE CITY OF RENTON a Washington corporation a Washington municipal corporation By:Denis Law Its: Mayor Date: Date: ATTEST: By Jason Seth, City Clerk Date: Approved as to legal form: _________________________ Lawrence J. Warren, City Attorney AGENDA ITEM #7. d) LAG 16- LEASE AGREEMENT City of Renton to Kaynan, Inc. 24 STATE OF WASHINGTON ) : ss. COUNTY OF ___________) I certify that I know or have satisfactory evidence that ________________________ is the person who appeared before me, and s/he acknowledged that s/he signed this instrument, on oath stated that s/he was authorized to execute the instrument and acknowledged it as the _______________________ of __________________________, a _______________, to be the free and voluntary act of such _______________ for the uses and purposes mentioned in the instrument. Dated this ____ day of _______________________, 201__. ___________________________________ [Signature of Notary] ___________________________________ [Print Name of Notary] Notary Public in and for the State of Washington, residing at _______________. My commission expires: ______________. STATE OF WASHINGTON ) : ss. COUNTY OF ___________) I certify that I know or have satisfactory evidence that ________________________ is the person who appeared before me, and s/he acknowledged that s/he signed this instrument, on oath stated that s/he was authorized to execute the instrument and acknowledged it as the _______________________ of __________________________, a ________________, to be the free and voluntary act of such ____________ for the uses and purposes mentioned in the instrument. Dated this ____ day of _______________________, 201__. ___________________________________ [Signature of Notary] ___________________________________ [Print Name of Notary] Notary Public in and for the State of Washington, residing at _______________. My commission expires: ______________. AGENDA ITEM #7. d) LAG 16- LEASE AGREEMENT City of Renton to Kaynan, Inc. 25 STATE OF WASHINGTON ) : ss. COUNTY OF ___________) I certify that I know or have satisfactory evidence that ________________________ is the person who appeared before me, and s/he acknowledged that s/he signed this instrument, on oath stated that s/he was authorized to execute the instrument and acknowledged it as the _______________________ of __________________________, a _______________, to be the free and voluntary act of such _______________ for the uses and purposes mentioned in the instrument. Dated this ____ day of _______________________, 201__. ___________________________________ [Signature of Notary] ___________________________________ [Print Name of Notary] Notary Public in and for the State of Washington, residing at _______________. My commission expires: ______________. STATE OF WASHINGTON ) : ss. COUNTY OF ___________) I certify that I know or have satisfactory evidence that ________________________ is the person who appeared before me, and s/he acknowledged that s/he signed this instrument, on oath stated that s/he was authorized to execute the instrument and acknowledged it as the _______________________ of __________________________, a ________________, to be the free and voluntary act of such ____________ for the uses and purposes mentioned in the instrument. Dated this ____ day of _______________________, 201__. ___________________________________ [Signature of Notary] ___________________________________ [Print Name of Notary] Notary Public in and for the State of Washington, residing at _______________. My commission expires: ______________. AGENDA ITEM #7. d) LAG 16- LEASE AGREEMENT City of Renton to Kaynan, Inc. 26 EXHIBIT A Lease Map and Legal Description AGENDA ITEM #7. d) LAG 16- LEASE AGREEMENT City of Renton to Kaynan, Inc. 27 EXHIBIT B Aircraft Laws and Regulations, RCW 47.68.250: Public Highways and Transportation. AGENDA ITEM #7. d) LAG 16- LEASE AGREEMENT City of Renton to Kaynan, Inc. 28 AGENDA ITEM #7. d) LAG 16- LEASE AGREEMENT City of Renton to Kaynan, Inc. 29 AGENDA ITEM #7. d) 1 CITY OF RENTON, WASHINGTON RESOLUTION NO. _______ A RESOLUTION OF THE CITY OF RENTON, WASHINGTON, AUTHORIZING THE MAYOR AND CITY CLERK TO ENTER INTO AN INTERLOCAL AGREEMENT WITH STATE OF WASHINGTON DEPARTMENT OF ENTERPRISE SERVICES, ENGINEERING & ARCHITECTURAL SERVICES, REGARDING THE PROVISION OF ENERGY/UTILITY CONSERVATION PROJECT MANAGEMENT AND MONITORING SERVICES. WHEREAS, the City and State of Washington Department of Enterprise Services, Engineering & Architectural Services (“DES”) are authorized, pursuant to RCW Chapter 39.34, the Interlocal Cooperation Act, to enter into an interlocal government cooperative agreement; and WHEREAS, DES desires to furnish, and the City wishes to receive, the necessary personnel and services in order to provide Energy/Utility Conservation Project Management and Monitoring Services; and WHEREAS, it is necessary to document the terms and conditions of DES providing the above-mentioned services and authorize the development of an energy services proposal; NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF RENTON, WASHINGTON, DOES RESOLVE AS FOLLOWS: SECTION I.The above recitals are found to be true and correct in all respects. SECTION II.The Mayor and City Clerk are hereby authorized to enter into an interlocal agreement with DES entitled Interagency Agreement Between the State of Washington Department of Enterprise Services and City of Renton. AGENDA ITEM # 9. a) RESOLUTION NO. _______ 2 PASSED BY THE CITY COUNCIL this ______ day of _____________________, 2016. ______________________________ Jason A. Seth, City Clerk APPROVED BY THE MAYOR this ______ day of _____________________, 2016. ______________________________ Denis Law, Mayor Approved as to form: ______________________________ Lawrence J. Warren, City Attorney RES.1710:7/18/16:scr AGENDA ITEM # 9. a) 1  CITY OF RENTON, WASHINGTON    ORDINANCE NO. ________    AN ORDINANCE OF THE CITY OF RENTON, WASHINGTON, AMENDING SECTION  4‐2‐115 OF CHAPTER 2, ZONING DISTRICTS – USES AND STANDARDS, SECTION  4‐6‐060 OF CHAPTER 6, STREET AND UTILITY STANDARDS, SECTION 4‐7‐090, OF  CHAPTER 7, SUBDIVISION REGULATIONS, AND SECTIONS 4‐11‐120, 4‐11‐160  AND 4‐11‐190, OF CHAPTER 11, DEFINITIONS, OF TITLE IV (DEVELOPMENT  REGULATIONS) OF THE RENTON MUNICIPAL CODE, BY ADDING REGULATIONS  FOR UNIT LOT SUBDIVISIONS AND DEFINITIONS FOR “LOT, UNIT,” “PARENT  SITE” AND “SUBDIVISION, UNIT LOT.”     THE CITY COUNCIL OF THE CITY OF RENTON, WASHINGTON, DOES ORDAIN AS  FOLLOWS:  SECTION I. Subsection 4‐2‐115.B.1 of section 4‐2‐115, Residential Design and Open  Space Standards, of Chapter 2, Zoning Districts – Uses and Standards, of Title IV (Development  Regulations) of the Renton Municipal Code, is amended as follows:  1. This Section shall apply to all new dwelling units in the following zones:  Resource Conservation (RC), Residential‐1 (R‐1), Residential‐4 (R‐4), Residential‐6  (R‐6), Residential‐8 (R‐8), Residential‐10 (R‐10), and Residential‐14 (R‐14), and  Unit Lot Subdivisions within the RMF zone. The standards of the Site Design  subsection are required to be addressed at the time of subdivision application.  The standards of the Residential Design subsection are required to be addressed  at the time of application for building permits. The standards of Residential  Design are required to be addressed for the building for which the building  permit is being issued.  AGENDA ITEM # 9. b) ORDINANCE NO. ________  2  SECTION II. Subsection 4‐6‐060.K of section 4‐6‐060, Street Standards, of Chapter 6,  Street and Utility Standards, of Title IV (Development Regulations) of the Renton Municipal  Code, is amended to add new regulations for Unit Lot Drives, to read as follows:  K. (Repealed by Ord. 5727, 10‐20‐2014) UNIT LOT DRIVES:   1. Applicability: Unit lot drives may be constructed to serve Unit Lot  Subdivisions. Each unit lot drive may serve up to nine (9) unit lots. Each unit lot  drive shall be accessed by a public street.  2. Design Standards: The design of each unit lot drive shall meet the  following standards:  a. Roadway Width: The paved roadway shall be a minimum of  sixteen feet (16') wide; the Fire Department may require the paved roadway to  be up to twenty feet (20') wide.  b. Curb: Except for points of ingress/egress, curb shall be installed  along the perimeter of the roadway.  c. Landscaping Strip and Sidewalk: There shall be an eight‐foot (8’)  wide landscaping strip between the curb and a five‐foot (5’) wide sidewalk along  one (1) side of the unit lot drive.  3. Ownership: The City may elect to have a unit lot drive dedicated as a  public roadway; however, the City may require the unit lot drive to be privately  owned pursuant to RMC 4‐7‐090.F.6.b, Maintenance of Common Facilities.  AGENDA ITEM # 9. b) ORDINANCE NO. ________  3  SECTION III. Section 4‐7‐090 of Chapter 7, Subdivision Regulations, of Title IV  (Development Regulations) of the Renton Municipal Code, is amended to add new regulations  for Unit Lot Subdivisions, to read as follows:  4‐7‐090 (DELETED BY ORD. 5521, 12‐14‐2009) UNIT LOT SUBDIVISIONS  A. PURPOSE:   This Section is intended to allow the creation of unit lots for townhouse  development through established subdivision procedures while generally only  applying development standards to the parent site as a whole rather than to  individual unit lots, as discussed in Subsection E below, Exceptions.  B. APPLICABILITY:   The provisions of this Section shall only apply to the subdivision of land  underlying existing or proposed townhouse dwelling units in the R‐10, R‐14, and  RMF zones.  C. PRINCIPLES OF ACCEPTABILITY:  1. Parent Site: The whole parent site shall comply with all development  standards as though it were a stand alone lot.  2. Access: The Parent Site shall have direct vehicular access to a public  street. Each Unit Lot shall have direct vehicular access to either a public or  private roadway (see RMC 4‐6‐060.K Unit Lot Drives).  3. Physical Characteristics: A proposed subdivision may be denied  because of the presence of flood, inundation, wetland conditions, steep slopes,  unstable soils, mineshafts or other unsuitable site characteristics. Construction  AGENDA ITEM # 9. b) ORDINANCE NO. ________  4  of protective improvements may be required as a condition of approval, and  such improvements shall be noted on the final plat.  4. Drainage: Make adequate provision for drainage ways, streets, alleys,  other public ways, water supplies and sanitary wastes.  D. SCOPE AND PROCESS:  1. Short Subdivision: Unit lot subdivisions of nine (9) or fewer unit lots  shall be processed as short subdivisions, and subject to all provisions of RMC 4‐7‐ 070, Detailed Procedures for Short Subdivisions, unless otherwise specified by  this Section.   2. Subdivision: Unit lot subdivisions of ten (10) or more unit lots shall be  processed as subdivisions, and subject to all provisions of RMC 4‐7‐080, Detailed  Procedures for Subdivision, unless otherwise specified by this Section.  3. Site Plan Review: Unit lot subdivisions shall be subject to RMC 4‐9‐ 200, Master and Site Plan Review; however, RMC 4‐9‐200.C.2.b, SEPA Exempt  Development, shall not apply.   E. EXCEPTIONS:  1. Residential Development Standards: Individual unit lots are exempt  from the following standards of RMC 4‐2‐110.A, Development Standards for  Residential Zoning Designations (Primary and Attached Accessory Structures):  maximum net density, minimum lot size, minimum lot width, minimum lot  depth, yard setbacks, maximum building coverage, and maximum impervious  surface area.   AGENDA ITEM # 9. b) ORDINANCE NO. ________  5  2. Landscaping: Individual unit lots are exempt from the following  subsections of Section 4‐4‐070, Landscaping:  a. RMC 4‐4‐070.F.1, Street Frontage Landscaping Required;  b. RMC 4‐4‐070.F.2, Street Trees and Landscaping Required Within  the Right‐of‐Way on Public Streets; and  c. RMC 4‐4‐070.F.3, Front Yard Trees Required When Street Trees  Are Not Located Within the Right‐of‐Way Abutting a Front Yard.  3. Parking: The number of parking spaces required for attached  dwellings in the R‐10, R‐14, and RMF zones pursuant to RMC 4‐4‐080.F.10.d,  Parking Spaces Required Based on Land Use, may be averaged and dispersed  among unit lots or within the parent site; however, at least one (1) parking space  shall be provided within each unit lot.   4. Access: Primary access for individual unit lots may be from a public  alley.   5. Existing Nonconforming Townhouse Developments: Legally  established existing townhouse developments that are nonconforming with  respect to development standards (e.g., maximum net density) shall be  considered conforming for the purpose of this Section and may be subdivided  pursuant to this Section; provided that as conditions of a unit lot subdivision  approval the City may require that any nonconforming development standard be  brought into compliance to the extent feasible, as determined by the  Administrator.  AGENDA ITEM # 9. b) ORDINANCE NO. ________  6  F. UNIT LOT SUBDIVISION REQUIREMENTS:  1. Unit Lots: Parent sites developed or proposed to be developed with  attached townhouse dwellings may be subdivided into unit lots and the  remainder of the parent site shall be platted as one (1) or more tracts. The whole  parent site shall meet applicable development standards. Any private open  space or private amenities for a dwelling unit shall be provided on the same unit  lot as the dwelling unit.  2. Siting of Unit Lots: Unit lot subdivisions that propose to incorporate  one or more Unit Lot Drives (refer to RMC 4‐6‐060.K, Unit Lot Drives), shall site  unit lots as follows:  a. For unit lot drives serving six (6) unit lots or less: At least one (1)  unit lot shall be situated towards a public street with nothing other than open  space between the public right‐of‐way and the unit lot.   b. For unit lot drives serving seven (7) unit lots or more: At least  two (2) unit lots shall be situated towards a public street with nothing other than  open space between the public right‐of‐way and the unit lots.   3. Parent Site: Prior to a unit lot subdivision or any subsequent platting  actions, additions or modifications to the structure(s), the applicant shall  demonstrate that the whole parent site will comply with applicable standards  and requirements of Title IV (i.e., the parent site shall be reviewed as though it is  a single lot without any unit lots or tracts within). For example, building coverage  of the parent site shall include all qualifying structures within the development,  AGENDA ITEM # 9. b) ORDINANCE NO. ________  7  including those located or proposed to be located upon individual unit lots.  Portions of the parent site not subdivided for individual unit lots shall be platted  as a tract and owned in common by the owners of the individual unit lots, or by a  homeowners’ association comprised of the owners of the individual unit lots.  4. Density: The density of the parent site shall not exceed the maximum  net density of the zone. Only one (1) dwelling unit shall be located on a unit lot.  5. Design and Open Space Standards: RMC 4‐2‐115, Residential Design  and Open Space Standards, as applied to the R‐10 and R‐14 zones shall apply to  unit lot subdivisions within the RMF zone. Unit lot subdivisions within the RMF  shall be exempt from RMC 4‐3‐100, Urban Design Regulations.   6. Homeowners’ Association  and Covenants:   a. Covenants and Homeowners’ Association: Prior to the recording  of the plat, the applicant shall provide final covenants, declarations and  restrictions in a form satisfactory to the City Attorney, and shall record the  document with the King County Recorder.  b. Maintenance of Common Facilities: All common open space and  facilities, private utility infrastructure, exterior building facades and roofs, and  other physical improvements to the land, as determined by the Administrator,  shall be maintained in perpetuity by the homeowners’ association, unless  otherwise agreed to by the City. The covenants, declarations and restrictions  shall provide authority for the City, after providing reasonable written notice to  the homeowners’ association and opportunity to perform required maintenance,  AGENDA ITEM # 9. b) ORDINANCE NO. ________  8  to recover any costs incurred by the City to maintain private infrastructure or  common areas due to a failure of the homeowners’ association to adequately  maintain privately owned improvements. In order to ensure that the City can  recover its costs for performing required maintenance, the City may file a lien  against the property or accept other appropriate security approved by the City.   7. Timing: Site development and building construction may commence  upon approval of a site plan and issuance of a building permit(s) for such  construction and prior to final subdivision approval and recording if all applicable  permits and approvals have been obtained by the applicant. However, no  dwelling unit or unit lot may be sold, transferred, occupied or conveyed prior to  final subdivision approval and recording.  8. Recorded Plat: Notes shall be placed on the plat recorded with the  King County Recorder to acknowledge the following:  a. The title of the plat shall include the phrase “Unit Lot  Subdivision;”   b. Subsequent platting actions, additions or modifications to the  structure(s) may not create or increase any nonconformity of the parent site as a  whole; and  c. The individual unit lots are not separate building sites and  additional development of the individual unit lots may be limited as a result of  the application of development standards to the parent site.  AGENDA ITEM # 9. b) ORDINANCE NO. ________  9  SECTION IV. Section 4‐11‐120, Definitions L, of Chapter 11, Definitions, of Title IV  (Development Regulations) of the Renton Municipal Code, is amended to add a new definition,  in alphabetical order, of “Lot, Unit,” to read as follows:  Lot, Unit: A lot created from the subdivision of a parent site, through the unit lot  subdivision process, exclusively for the construction and use of an attached  townhouse dwelling and any accessory facilities or private yards.  SECTION V. Section 4‐11‐160, Definitions P, of Chapter 11, Definitions, of Title IV  (Development Regulations) of the Renton Municipal Code, is amended to add a new definition,  in alphabetical order, of “Parent Site,” to read as follows:  Parent Site: (This definition for RMC 4‐7‐090, Unit Lot Subdivision, only) The  aggregate of all land (irrespective of existing or future unit lots, tracts, or other  distinct properties) within the boundaries of the original lot(s) subject to a unit  lot subdivision within which townhouses exist or are proposed, and the land  underlying the townhouses subdivided so that each townhouse dwelling unit is  located on a unit lot.  SECTION VI. Section 4‐11‐190, Definitions S, of Chapter 11, Definitions, of Title IV  (Development Regulations) of the Renton Municipal Code, is amended to add a new definition,  in alphabetical order, of “Subdivision, Unit Lot,” to read as follows:  Subdivision, Unit Lot: A division of land (parent site), for the purpose of sale,  lease, or transfer or ownership, underlying existing or proposed attached  townhouse dwelling units that creates a unit lot for each dwelling, for which one  (1) or more boundaries of the individual unit lots coincide with the walls of the  AGENDA ITEM # 9. b) ORDINANCE NO. ________  10  townhouse structure which separate individual attached townhouse dwelling  units.  SECTION VII. This ordinance shall be in full force and effect thirty (30) days after  publication of a summary of this ordinance in the City’s official newspaper.  The summary shall  consist of this ordnance’s title.      PASSED BY THE CITY COUNCIL this _______ day of ___________________, 2016.                         Jason A. Seth, City Clerk    APPROVED BY THE MAYOR this _______ day of _____________________, 2016.                         Denis Law, Mayor        Approved as to form:             Lawrence J. Warren, City Attorney  Date of Publication:      ORD:1930:10/3/16:scr  AGENDA ITEM # 9. b) STAFF RECAP    COUNCIL MEETING REFERRALS    10/10/2016      MOTIONS REFERRED TO ADMINISTRATION: None    Other Requests: None    MOTIONS REFERRED TO COUNCIL COMMITTEE:  None*      *The consent agenda items were adopted as presented.  OCT 10, 2016 - CITY COUNCIL REGULAR MEETING - MOTION SHEET Agenda Placement Agenda Section Title/Item Motion Staff Contact Interested Parties 4) PUBLIC HEARING 2016/2017 Community Development Block Grant (CDBG) Funding: Following discussion, and there being no public comment, it was COUNCIL CONCUR TO CLOSE THE PUBLIC HEARING Karen Bergsvik Dianne Utecht 4) PUBLIC HEARING First Motion: Approve the 2016 Action Plan Amendment to allocate $40,000 of 2016 Capital Funds to architectural and engineering design work on the Renton Senior Activity Center to remove architectural barriers. COUNCIL CONCUR Karen Bergsvik Dianne Utecht 4) PUBLIC HEARING Second Motion: Approve the recommendations for the use of 2017 funds, as presented. COUNCIL CONCUR Karen Bergsvik Dianne Utecht 7.a) CONSENT AGENDA Approval of Council Meeting minutes of October 3, 2016. COUNCIL CONCUR Jason Seth Megan Gregor 7.b) CONSENT AGENDA AB - 1765 City Clerk submitted 10% Notice of Intent to Annex petition for the proposed Tim D Annexation and recommended a public meeting be set on 10/24/2016 to consider the petition; 2.7 acre site abutting the City at its northern City limits. COUNCIL CONCUR Jason Seth Sandi Weir Angie Mathias 7.c) CONSENT AGENDA AB - 1769 Community & Economic Development Department recommended the transfer of the $50,000 balance from the South Renton Reserve account to the CED Arts and Culture Capital Projects account for purpose of the design, fabrication, and installation of artwork in the South Renton neighborhood. REFER TO COMMUNITY SERVICES COMMITTEE Elizabeth Higgins Judith Subia 7.d) CONSENT AGENDA AB - 1760 Transportation Systems Division recommended approval of a short term, month-to-month lease, with Kanyan, Inc. in the amount of $90,000 per year, terminating no later than 10/31/2019, for five hanger buildings and 100,041 square feet of airside land at the Airport. REFER TO TRANSPORTATION (AVIATION) COMMITTEE Jonathan Wilson Susan Campbell- Hehr Sandi Weir 8.a) UNFINISHED BUSINESS Finance Committee Chair Persson presented a report recommending approval for payment on October 10, 2016 claim vouches 350583-350601, 350626-350930, 5105-5166, 9012016, 9082016, 9152016, 9222016 and one wire transfer and one payroll run with benefit withholding payments totaling $8,360,036.91 and payroll vouchers including 659 direct deposits and 82 payroll checks totaling $1,401,203.85. COUNCIL CONCUR Jamie Thomas Natalie Wissbrod 8.b) UNFINISHED BUSINESS Finance Committee Chair Persson presented a report recommending concurrence in the staff recommendation to execute the Interagency Agreement between the State of Washington Department of Enterprise Services and the City of Renton for the purpose of working with a DES Energy Savings Company to reduce energy and operation costs, and approve the associated resolution. COUNCIL CONCUR Robert Ebert Michael Kirk Jessi Merriman Sandi Weir 9.a) Resolution: Resolution No. 4295: A resolution was read authorizing the Mayor and City Clerk to enter into an Interlocal Agreement with State of Washington Department of Enterprise Services, Engineering & Architectural Services, regarding the provision of Energy/Utility Conservation Project Management and Monitoring services. COUNCIL ADOPT THE RESOLUTION AS READ Robert Ebert Michael Kirk Jessi Merriman Sandi Weir 9.a) Ordinance for first reading: Ordinance No. 5818: An ordinance was read amending Section 4-2-115 of Chapter 2, Zoning Districts - Uses and Standards, Section 4-6-060 of Chapter 6, Street and Utility Standards, Section 4-7-090, of Chapter 7, Subdivision Regulations, and Sections 4-11-040, 4-11-120, 4-11-160 and 4-11-190, of Chapter 11, Definitions, of Title IV (Development Regulations) of the Renton Municipal Code, by adding regulations for Unit Lot Subdivisions and definitions for "Lot Unit," "Parent Site" and "Subdivision, Unit Lot," and amending the definition of "Density, Net." (Approved on 9/26/2016) COUNCIL REFER THE ORDINANCE FOR SECOND AND FINAL READING AT THE NEXT COUNCIL MEETING. Paul Hintz Judith Subia Cindy Moya � CITY C?F � � �, M I N UTES City Council Regular Meeting 7:00 PM - Monday, October 10,2016 Council Chambers, 7th Floor, City Hall—1055 S. Grady Way CALL TO ORDER AND PLEDGE OF ALLEGIANCE Mayor Law called the meeting of the Renton City Council to order at 7:00 PM and led the Pledge of Allegiance. ROLL CALL Councilmembers Present: Randy Corman,Council President Ryan Mclrvin Armondo Pavone Ruth Perez Don Persson Ed Prince I Carol Ann Witschi I ADMINISTRATIVE STAFF PRESENT Denis Law, Mayor Jay Covington, Deputy Public Affairs Administrator Alex Tuttle,Assistant City Attorney Megan Gregor, Deputy City Clerk Chip Vincent, Community and Economic Development Administrator Gregg Zimmerman, Public Works Administrator Karen Bergsvik, Human Services Manager Commander Chad Karlewicz, Police Department October 10, 2016 REGULAR COUNCIL MEETING MINUTES SPECIAL PRESENTATION State of the County: King County Councilmember Reagan Dunn presented the annual State of the County Address. He discussed the following topics: • Increases in services,frequency, and safety in transit services. • New Drop Box for Ballots in Renton Highlands in the Renton Public Health Clinic. • Infrastructure improvements within King County to protect from flooding. • Cedar River Watershed Corridor Program. • Parks and trail improvements for non-automotive transportation. • Lake to Sound Trail grant support. Additionally Councilmember Dunn answered questions/concerns raised by Council and thanked them for their hard work. PUBLIC HEARING 2016/2017 Community Development Block Grant(CDBG) Funding: This being the date set and proper notices having been posted and published in accordance with local and State laws, Mayor Law opened the public hearing to consider the 2016/2017 Community Development Block Grant (CDBG) Funding. Human Services Manager, Karen Bergsvick reported that CDBG funds are allocated by the Department of Housing and Urban Development(HUD) and are received through an interlocal agreement with King County.She stated that the CDBG is a flexible program that provides communities with resources to address a wide range of unique community development needs, and that 2017 allocation is estimated to be$631,333. Ms. Bergsvick further laid out the City's recommended plan on how to use the 2017 allotment: ' YEAR ACTIVITY NATIONAL AMOUNT OBJECTIVE 2017 King County Contractual Set Asides: Not Applicable I • General Administration $63,133 , • Capital Administration $12,627 � Housing Stability Program $31,567 • Housing Repair Program $126,267 Subtotal $233,594 _-- —_ - _ _ City Planning and Administration Not Applicable $63,133 __ _—_ _ _ _ _ _ -- Public Services: Small Business Low-and-Moderate- $25,000 Development in Renton Income residents ___ __ -- . _ _ Capital Projects: Low-and Moderate- • Healthy Housing Project Income residents $75,000 • ADA Improvements at the Removal of $234,606 Renton Senior Activity Center Architectural (211 Burnett Ave. N) Barriers _ — _ 2017 TOTAL $631,633 October 10, 2016 REGULAR COUNCIL MEETING MINUTES Additionally Ms. Bergsvick explained the need to reallocate $40,000 of 2016 funds currently allocated to the Downtown Commercial Rehabilitation and Fa�ade Improvement Program. She explained that the funds would be used for the architectural and engineering design work for the removal of architectural barriers(ADA improvements) at the Renton Senior Activity Center. Following discussion, and there being no public comment, it was MOVED BY PRINCE,SECONDED BY CORMAN,COUNCIL CLOSE THE PUBLIC HEARING. CARRIED. MOVED BY CORMAN,SECONDED BY PAVONE,COUNCIL APPROVE THE 2016 ACTION PLAN AMENDMENT TO ALLOCATE$40,000 OF 2016 CAPITAL FUNDS TO ARCHITECTURAL AND ENGINEERING DESIGN WORK ON THE RENTON SENIOR ACTIVITY CENTER TO REMOVE ARCHITECTURAL BARRIERS. CARRIED. MOVED BY CORMAN, SECONDED BY PAVONE, COUNCIL APPROVE THE RECOMMENDATIONS FOR THE USE OF 2017 FUNDS,AS PRESENTED.CARRIED. ADMINISTRATIVE REPORT Deputy Public Affairs Administrator Preeti Shridhar reviewed a written administrative report summarizing the City's recent progress towards goals and work programs adopted as part of its business plan for 2016 and beyond. Items noted were regarding: • Preventative street maintenance will continue to impact traffic and result in occasional street closures. AUDIENCE COMMENTS • Vic Bishop, Bellevue, Chair-Elect of the Eastside Transportation Association recommended a "No"vote on the upcoming ballot proposition for Sound Transit 3 (ST3). • Diane Dobson, Renton, addressed Council regarding the understaffed Police Department and requested to be informed about what can be done to assist the City in funding the appropriate training needed for Police officers so the City can have a fully staffed department.Additionally, she shared concerns related to the animal shelters during the cold weather season. CONSENT AGENDA Items listed on the ConsentAgenda were adopted wirh one motion,following the listing. a) Approval of Council Meeting minutes of October 3, 2016. Council Concur. b) AB-1765 City Clerk submitted 10% Notice of Intent to Annex petition for the proposed Tim D Annexation and recommended a public meeting be set on 10/24/2016 to consider the petition; 2.7 acre site abutting the City at its northern City limits. Council Concur. c) AB-1769 Community& Economic Development Department recommended the transfer of the $50,000 balance from the South Renton Reserve account to the CED Arts and Culture Capital Projects account for purpose of the design,fabrication, and installation of artwork in the South Renton neighborhood. Refer to Community Services Committee. October 10, 2016 REGULAR COUNCIL MEETING MINUTES d) AB-1760 Transportation Systems Division recommended approval of a short term, month-to- month lease, with Kanyan, Inc. in the amount of$90,000 per year, terminating no later than 10/31/2019, for five hanger buildings and 100,041 square feet of airside land at the Airport. Refer to Transportation (Aviation)Committee. MOVED BY CORMAN,SECONDED BY PAVONE,COUNCIL CONCUR TO APPROVE THE CONSENT AGENDA,AS PRESENTED.CARRIED. UNFINISHED BUSINESS a) Finance Committee Chair Persson presented a report recommending approval for payment on October 10, 2016 claim vouches 350583-350601, 350626-350930, 5105-5166, 9012016, 9082016, 9152016, 9222016 and one wire transfer and one payroll run with benefit withholding payments totaling$8,360,036.91 and payroll vouchers including 659 direct deposits and 82 payroll checks totaling$1,401,203.85. MOVED BY PERSSON,SECONDED BY PAVONE, COUNCIL CONCUR IN THE COMMITTEE RECOMMENDATION. CARRIED. b) Finance Committee Chair Persson presented a report recommending concurrence in the staff recommendation to execute the Interagency Agreement between the State of Washington Department of Enterprise Services and the City of Renton for the purpose of working with a DES Energy Savings Company to reduce energy and operation costs, and approve the associated resolution. MOVED BY PERSSON,SECONDED BY PAVONE, COUNCIL CONCUR IN THE COMMITTEE RECOMMENDATION. CARRIED. LEGISLATION Resolution: a) Resolution No.4295:A resolution was read authorizing the Mayor and City Clerk to enter into an Interlocal Agreement with State of Washington Department of Enterprise Services, Engineering&Architectural Services, regarding the provision of Energy/Utility Conservation Project Management and Monitoring services. MOVED BY PERSSON,SECONDED BY PAVONE, COUNCIL ADOPT THE RESOLUTION AS READ. CARRIED. Ordinance for first reading: a) Ordinance No. 5818:An ordinance was read amending Section 4-2-115 of Chapter 2, Zoning Districts- Uses and Standards, Section 4-6-060 of Chapter 6, Street and Utility Standards, Section 4-7-090, of Chapter 7, Subdivision Regulations, and Sections 4-11-040, 4-11-120,4-11- 160 and 4-11-190, of Chapter 11, Definitions, of Title IV(Development Regulations) of the Renton Municipal Code, by adding regulations for Unit Lot Subdivisions and definitions for "Lot Unit," "Parent Site" and "Subdivision, Unit Lot," and amending the definition of"Density, Net." MOVED BY PRINCE,SECONDED BY MCIRVIN, COUNCIL REFER THE ORDINANCE FOR SECOND AND FINAL READING AT THE NEXT COUNCIL MEETING. CARRIED. October 10, 2016 REGULAR COUNCIL MEETING MINUTES NEW BUSINESS Please see the attached committee meeting calendar. ADJOURNMENT MOVED BY WITSCHI,SECONDED BY CORMAN, COUNCIL ADJOURN. CARRIED.TIME: 7:42 P.M. ,. 1��l�' // Jason . Seth, CIV��`City Clerk Megan Gregor, CMC, Recorder Monday, October 10, 2016 October 10, 2016 REGULAR COUNCIL MEETING MINUTES Council Committee Meeting Calendar October 10, 2016 Thursday, October 13 2016 � i ���<>,��,�t�� -�.� ,`;� ��. .� =� 3:00 PM Planning & Development Committee, Chair Prince — Council Conf Room 1. Healthy Housing 2. Docket 12 Briefing 3. Non-motorized Mitigation Fee Briefing 4. Emerging Issues 4:00 PM Community Services Committee, Chair Witschi — Council Conf Room 1. South Renton Art Project 2. Emerging Issues Monday, October 17, 2016 � �� 3:00 PM Transportation Committee, Chair Perez — Council Conference Room 1. Airport Lease with Kaynan, Inc. 2. Emerging Issues in Transportation CANCELLED Utilities Committee, Chair Mclrvin 4:00 PM Committee of the Whole, Chair Corman — Council Chambers 1. 200 Mill RFP Update 2. 2017— 2018 Budget Overview / Department Presentations - Administrative Services - Community Services - City Attorney - Emergency Management - Human Resources / Risk Management - Court - Public Works 3. Regionallssues 1�■�� --�_._ .�� c�TY oF � City Council Re�ular Meeting 7:00 PM - Monday, � � I �C%��l.f' Council Chambers, 7th Floor, City Hall— 1055 S. Grady Way PUBLIC HEARING/MEETING — Topic: • Each speaker is allowed five minutes. • When recognized, please state your name & city of residence for the record. PLEASE PRINT CLEARLY 1 4 Name: Name: Address: Address: / City: Zip Code: / EmaiL• City / Zip Code Topic: Topic: � 2 5 ,/ Name: Na '� Address: �A,d- dress: l ,� �` ,� � City �p�Code ,�� ./f City Zip Code Topic: � '��� Topic: 3 V,��`f 6 Name: Name: Address: ;-���' Address: City Zip Code City Zip Code Topic: Topic: (CONTINUED ON REVERSE SIDE) (Continued From Reverse Side—PAGE 2) � 7 11 Name: Name: / Address: Address: / / City Zip Code Citv Zip Code Topic: Topic: / 8 12 / Name: Name: Address: Address: / / Citv Zip Code �-� City/' Zip Code Topic: � � pic: / � i 9 Name: / 1� Name: Address I / '� Address: l / .� �./ City Zip Code o City Zip Code Topic: / Topic: ,/ 10 � 14 Name: Name: Address: ,/ Address: ..� �, � r City Z�"Code City Zip Code ` Topic: f Topic: 15 ��""�� 16 Name: r'� Name: �,, Address: r�`� Address: _.- City Zip Code City Zip Code Topic: Topic: STATE OF WASHINGTON, COUNTY OF KING } AFFIDAVIT OF PUBLICATION City of Renton small business development in at the Renton Senior Activity PUBLIC NOTICE Notice of Pubiic Hearing Renton. The City will be con- Center. Community Development ducting an RFP process for an If the amount of CDBG funds LlriC�1 M M1llS, belrig firSt duly SWOI'll Ori Oath t�lat She 1S the Legal Block Grant(CDBG)Fuods agency(ies) (yet to be deter- changes for 2017, allocation will Advertising Representative of the Proposed Use of mined) to provide micro busi- be modified as follows: 2017 CDBG Funds& ness services targeted to If the amount of funding is in- Reallocation of 2016 Funds 1ow-income and underserved creased, additional funding will NOTICE IS HEREBY GIVEN residents. be used for the improvements that the Renton City Council has 3) Capital Projects: The esti- at the Renton Senior Activity Renton Reporter fixed the lOth day of October, mated balance of $309,607 is Center up to a maximum of 2016 at 7:00 pm as the date and proposed for capital projects: $350,000. If the amount of time for a public hearing to be $75,000 for Healthy Housing CDBG decreased, the decrease held in the Council Chambers of in the Housing Repair Program will come from the Senior Center Renton City Hall, Seventh Floor, a wee y newspaper, which newspaper is a legal newspaper of �to minimize mo�scU�e�. ;,,,pro�e,,,e„ts. ]O55 S. Grady Way, Renton, Healthy Housing is proposing For more information contact general circulation and is now and has been for more than six months WA 98057, to provide an oppor- to replace approximately 6 Dianne Utecht, Human Services prior to the date of publication hereinafter referred to, published in tunity for public comment on the roofs, provide a„ esc�matea �a Coordinator ac 425-430-6655 or the En lish lan ua e continuousl as a weekl news a er in Kin allocation of CDBG funds. Pub- homes with ventilation to mini- dutechtnarentonwa eov. g g g y Y P P g lic comment is requested on the mize moisture, and install The public is invited to com- County, Washington. The Renton Reporter has been approved as proposed ao» cDBc auo�a- xEPA f,,,.,,a�e fiiters ;,, homes ment on the proposed projects at a Legal Newspaper by order of the Superior Court of the State of tions and reallocation of 2016 of active Housing Repair the hearing or by submitting funds. Clients. The Healthy Housing written comments prior to the Washington for King County. Zol�FU�as clients will be identified from public hearing to the attention of The notice in the exact form annexed was published in regular issues The City will receive an estimat- the approximately 217 active lason Seth, Ciry Clerk, 7th Floor, of the Renton Re orter and not in su lement form which was ed $63i,333 �n Zoi� CDBG Housing Repair ci�encs, ���y Renton City Hall, 1055 S. Grady p � PP � funds. After contractual set µ,�de Way,Renton,98057. regularly distributed to its subscribers during the below stated period. as;aes �o�e�;,,g x�ng cou„ri aa- Tne ba�an�e of$234,607 to be This notice is available in alter- The annexed notice, a: ministration and human service used for renovations, including nate formats upon request for program costs, the amount avail- ADA improvements, at the individuals with disabilities. Public Notice able is estimated to be $397,740, Renton Senior Activity Center All interested parties are invit- which the City is proposing to al- located at 2ll Burnett Avenue ed to attend the public hearing locate as follows: N, Renton, WA with approxi- and present written or oral 1) Planning and Administra- mately 62,250 visits annually. comments regarding the propo- was published on September 23, ZOIC). tion: $63,133 or the maximum 2016Action PlanAmendment sal. Renton City Hall is com- amount allowable to plan and Reallocation of 2016 funds: pliant with the American Dis- administer the CDBG program $40,000 of the 2016 funds curv abilities Act, and interpretive at 1055 S. Grady Way, Renton, rently allocated to the Downtown services for the hearing im- WA98057. Commercial Rehabilitation and paired will be provided upon 2) Public Services: Of the es- Fapade Improvement Loan prior notice. Call The full amount of the fee charged for said foregoing publication is timated $334,607 in remaining program will be reallocated for (425)-430-6510 for additional the sum of$242.13. cDBG funas, the City propos- Architectural and Engineering information. es to allocate $25,000 for design work for the renovations Jason A.Seth City Clerk � , Published in the Renton Reporter ,r!� ?���� L��~`��"� ����'�� ���i�,� September 23, 2016. #1700394. 2 �, �inda Mills ;`'�P "�, � �?.,\Sg�ON Ekp�,� Legal Advertising Representative, Renton Reporter ' ..��r 9F�. `, Subscribed and n to me this 23rd day of September, 201Cr" ;° N�TARY ? � a � ��� P�8`1C ����z, "� � : �'•. 0.9:'G�: Gale Gwin, Notary Public for the State of Washington, Residing'�pTF��"�'?S`Z`����• Covington,Washington '��i��i��wP����� � �(uhdN� a , ai��� Testimony to the Ciy Council on Transportation Revenues Generated in Renton. Victor H. Bishop,P.E.,Chair-Elect,Eastside Transportation Association, 10-10-2016 Mayor Law and the City Council, The proposed Regional Proposition 1 (ST 3) is a$54 Billion tax and spend proposal that would have a long lasting and huge negative impact on the finances of the City of Renton and our region. ST 3 is way out of the realm of reasonableness. It buys trains for Seattle at 10 times the cost of the second Panama Canal. For perspective, I have compared the City of Renton's current annual budget for transportation to the pro-rated share of East King Subarea's $9.8 billion that would be paid annually by Renton residents in the accompanying chart. The City of Renton has a robust system for identifying transportation needs in the city. The cunent budget has about $18 million of transportation programs and projects per year. Most of that is for capital expenditures for street improvements on the roadways, sidewalks,bike lanes and transit ways. Sound Transit's ST 3 proposal is a train project to satisfy politicians. It will do nothing to relieve traffic in Renton or anywhere in East King Co. The Sound Transit district is divided into Transportation Revenues Generated in five sub-areas, with Renton, Annual Renton in the East King Subarea which is $68 projected to generate v, Sso - $9.8 Billion in 25 = years. There are 16 � Seo - , cities within the East � �o $18 ------- - ---- - - King subarea with a = total population of �, Sio � _--____—._ ___ _-_ ., 585,000. Based on � , 1� 2� population,Renton Renton Traruportation Revenue Cdlected for 5T 3 will generate about$68 s�aa� from Reriton Residerrts Million per year from "°t°S: 1. 2017-2018 Gpital Improvement Plan,annual bxes. the City's residents and 2, prorated by Popuistion,of ST 3's East KinQ Subsrea Revenues of$9,786,000,000. businesses toward ST Yictw M.Bishop,P.E.,10-10.2016 3's gigantic tax. Traf�c congestion is an item often mentioned as a problem in discussions of City issues. Renton residents are stuck in traffic,and they know it. Thus, traffic congestion is a top issue in Renton and Sound Transit asks you to tax yourselves a huge amount to help Seattle pay for their second train tunnel plus light rail extensions to Everett, Tacoma and Issaquah. PSRC calculates a projected 0.4% of the regions' daily person trips will take light rail in 2040 (PSRC, Transportation 2040, 2014 Update). ST 3 is a bad deal for Renton and all of East King County. Go to www.nost3.or�for more information and the tax calculator to estimate your household taxes. I � City of Renton Notice of Public Hearing Community Development Block Grant(CDBG) Funds Proposed Use of 2017 CDBG Funds & Reailocation of 2016 Funds NOTICE IS HEREBY GIVEN that the Renton City Council has fixed the 10th day of October, 2016 at 7:00 pm as the date and time for a public hearing to be held in the Council Chambers of Renton City Hall,Seventh Floor, 1055 S. Grady Way, Renton, WA 98057,to provide an opportunity for public comment on the allocation of CDBG funds. Public comment is requested on the proposed 2017 CDBG allocations and reallocation of 2016 funds. 2017 Funds The City will receive an estimated $631,333 in 2017 CDBG funds. After contractual set asides covering King County administration and human service program costs, the amount available is estimated to be $397,740, which the City is proposing to allocate as follows: 1) Planning and Administration: $63,133 or the maximum amount allowable to plan and administer the CDBG program at 1055 S. Grady Way, Renton, WA 98057. 2) Public Services: Of the estimated $334,607 in remaining CDBG funds,the City proposes to allocate $25,000 for small business development in Renton. The City will be conducting an RFP process for an agency(ies) (yet to be determined)to provide micro business services targeted to low-income and underserved residents. 3) Capital Projects: The estimated balance of$309,607 is proposed for capital projects: $75,000 for Healthy Housing in the Housing Repair Program (to minimize moisture). Healthy Housing is proposing to replace approximately 6 roofs, provide an estimated 12 homes with ventilation to minimize moisture, and install HEPA furnace filters in homes of active Housing Repair Clients. The Healthy Housing clients will be identified from the approximately 217 active Housing Repair Clients, city wide. The balance of$234,607 to be used for renovations, including ADA improvements, at the Renton Senior Activity Center located at 211 Burnett Avenue N, Renton, WA with approximately 62,250 visits annually. 2016 Action Plan Amendment Reallocation of 2016 funds: $40,000 of the 2016 funds currently allocated to the Downtown Commercial Rehabilitation and Fa�ade Improvement Loan Program will be reallocated for Architectural and Engineering design work for the renovations at the Renton Senior Activity Center. H:\001 CITY CLERK OFFICIAL\NOTICES\2017 Public heari�g notice cdbg.docx If the amount of CDBG funds changes for 2017, allocation will be modified as follows: If the amount of funding is increased, additional funding will be used for the improvements at the Renton Senior Activity Center up to a maximum of$350,000. If the amount of CDBG decreased,the decrease will come from the Senior Center improvements. For more information contact Dianne Utecht, Human Services Coordinator at 425-430-6655 or dutecht@rentonwa.�ov. The public is invited to comment on the proposed projects at the hearing or by submitting written comments prior to the public hearing to the attention of Jason Seth, City Clerk, 7t'' Floor, Renton City Hall, 1055 S. Grady Way, Renton,98057. This notice is available in alternate formats upon request for individuals with disabilities. All interested parties are invited to attend the public hearing and present written or oral comments regarding the proposal. Renton City Hall is compliant with the American Disabilities Act,and interpretive services for the hearing impaired will be provided upon prior notice. Call (425)-430- 6510 for additional information. � Jason A.Seth City Clerk Published Renton Reporter September 23, 2016 Account No. 50640 H:\001 CITY CIERK OfFICIAL\NOTICES\2017 Public hearing notice cdbg.docx �U��"� �������� Community Development Block Grant Public Hearing October 10, 2017 • The City of Renton in 2017: Utilize $631,633 in CDBG funds for King County contractual set- asides, City planning and administration, public services, Healthy Housing and removal of architectural barriers at the Renton Senior Activity Center. ° + ° d � � �f � � � . . 2017 King County Contractual Set- Not Applicable asides - General Administration $63,133 ' - Capital Administration $12,627 - Housing Stability Program $ 31,567 - Housing Repair Program 126 267 Subtotal $ 233,594 City Planning & Administration Not Applicable $ 63,133 Public Services: Small Business Benefit to Low- and Development in Renton Moderate-Income $ 25,000 residents Capital Projects: - Healthy Housing Project Benefit to Low-and $75,000 - ADA Improvements at the Moderate-Income Renton Senior Activity residents $234,606 Center (211 Burnett Avenue Removal of N) Architectural Barriers 2017 TOTAI $ 631,633 2016 : Reallocate $40,000 of 2016 funds currently allocated to the Downtown Commercial Rehabilitation and Fa�ade Improvement Program. Funds will be used for the architectural and engineering design work for the removal of architectural barriers (ADA improvements).