HomeMy WebLinkAboutCouncil 03/15/2004AGENDA
RENTON CITY COUNCIL
REGULAR MEETING
March 15, 2004
Monday, 7:30 p.m.
PLEDGE OF ALLEGIANCE
2. CALL TO ORDER AND ROLL CALL
3. SPECIAL PRESENTATIONS:
a. Renton High School Excellence in Education
b. Fire Department Recognition Awards
4. ADMINISTRATIVE REPORT
5. AUDIENCE COMMENT (Speakers must sign up prior to the Council meeting. Each speaker is
allowed five minutes. The comment period will be limited to one-half hour. The second audience
comment period later on in the agenda is unlimited in duration.)
When you are recognized by the Presiding Officer, please walk to the podium and state your name
and address for the record, SPELLING YOUR LAST NAME.
6. CONSENT AGENDA
The following items are distributed to Councilmembers in advance for study and review, and the
recommended actions will be accepted in a single motion. Any item may be removed for further
discussion if requested by a Councilmember.
a. Approval of Council meeting minutes of March 8, 2004. Council concur.
b. Finance and Information Services Department requests a briefing on the compliance audits
conducted on the Cedar River Cafe (Espresso Stand), City Scene Cafe, Ivar's and Kidd Valley
Restaurants, Cascade Canoe and Kayak, and Insignia Kidder Mathews vendor/concessionaire
contracts. Refer to Finance Committee.
c. Utility Systems Division recommends approval of a funding proposal to finance the constriction
of major water main improvements in the Highlands Redevelopment area, and requests
authorization to proceed with development of the special assessment district. The City's cost
share is $500,000. Refer to Utilities Committee.
d. Utility Systems Division recommends approval of a consultant agreement in the amount of
$103,823.94 with Golder Associates, Inc. to implement the 2004 Monitoring Plan for the Cedar
River Section 205 Flood Damage Reduction Project. Council concur.
7. CORRESPONDENCE
a. Letter from Michael J. Gerspach, 33102 East Lake Holm Dr. SE, Auburn, 98092, requesting
connection to Renton's sewer for his property located outside the City limits at 14713 SE 116th
St. Refer to Utilities Committee.
b. E-mail from Lynn and Marian Thrasher, 904 Grant Ave. S., Renton, 98055, regarding traffic
flow and safety issues on Renton Ave. S. from S. 3rd to S. 7th Streets, and indicating that the
current road configuration does not adequately serve the growing Renton Hill community. The
Thrashers suggested restricting parking along the street as a way of improving traffic safety.
Refer to Transportation (Aviation) Committee.
8. OLD BUSINESS
(CONTINUED ON REVERSE SIDE)
9. ORDINANCES AND RESOLUTIONS
Ordinances for second and final reading:
a. Approving the Bales Annexation (1st reading 3/8/2004)
b. Establishing zoning for the Bales Annexation area (1st reading 3/8/2004)
10. NEW BUSINESS (Includes Council Committee agenda topics; call 425-430-6512 for recorded
information.)
11. AUDIENCE COMMENT
12. ADJOURNMENT
COMMITTEE OF THE WHOLE
AGENDA
(Preceding Council Meeting)
Council Conference Room
6: 00 p. m.
1. Emerging Issues
Council Chambers
Approximately 6:30 p.m.
1. Legislative Wrap -Up
2. Aquatic Center Opening Policies
• Hearing assistance devices for use in the Council Chambers are available upon request to the City Clerk •
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March 15, 2004
Monday, 7:30 p.m.
RENTON CITY COUNCIL
Regular Meeting
MINUTES
Council Chambers
Renton City Hall
CALL TO ORDER
Mayor Kathy Keolker-Wheeler led the Pledge of Allegiance to the flag and
called the meeting of the Renton City Council to order.
ROLL CALL OF
DON PERSSON, Council President; RANDY CORMAN; TONI NELSON;
COUNCILMEMBERS
DAN CLAWSON; DENIS LAW; TERRI BRIERE; MARCIE PALMER.
CITY STAFF IN
KATHY KEOLKER-WHEELER, Mayor; JAY COVINGTON, Chief
ATTENDANCE
Administrative Officer; LAWRENCE J. WARREN, City Attorney; BONNIE
WALTON, City Clerk; GREGG ZIMMERMAN, Planning/Building/Public
Works Administrator; ELAM GREGORY, Fiscal Services Director; CHIEF
LEE WHEELER, DEPUTY CHIEF GLEN GORDON and DEPUTY CHIEF
ART LARSON, Fire Department; MIKE WEBBY, Human Resources
Administrator; DEPUTY CHIEF KEVIN MILOSEVICH, Police Department.
SPECIAL
Donald Custer, Renton High School Excellence in Education Boardmember,
PRESENTATIONS
thanked the City for cooperation in support of programs not funded through
School District: Renton High
education taxes, which promote traditions of excellence and enhanced
School Excellence in
educational processes for students. Excellence in Education Boardmembers
Education Grants
Roxanne Hanson and Kathryn Hutchinson and Renton School Board President
Marcie Maxwell presented grant awards as follows: Memoir project: Diane
French - $241; World Literature, Mary Cushman - $100; Let's Bind Together,
Bill Tobias - $450; Read 180, Mary Washington - $400; Repair Kiln,
Grimm/Whittredge - $500; English as Second Language, Alicia Miller - $500;
Life Management, Melissa Davis - $300; Paper supplies, Linda Cavins - $250;
US History, Rebecca Shepherd - $500; Fashion Club, Miss Sinclair - $250;
FBLA, Leo Bullock - $300; Summer School Program, Tina Devery - $250;
Talking Stick, Hilari Anderson - $200; Performing Arts Center, Shana
Pennington -Baird — Tools; Leadership Camp, Alice Coleman - $250. Mr.
Custer concluded by explaining traditions at Renton High School, including the
recent success of the boys' basketball team who finished fourth in the state
tournament.
Fire: Employee Recognition
Deputy Fire Chief Glen Gordon announced Fire Department employee
and Promotions
accomplishments and promotions effective 3/16/2004, as follows:
• Fire Marshal/Battalion Chief Lawrence Rude, promoted to Deputy
Chief;
• Captain Stan Engler, promoted to Fire Marshal/Battalion Chief;
• Lieutenant Bob Van Horne, promoted to Captain;
• Firefighter Shawn Mendenhall, promoted to Lieutenant.
Fire Marshal/Battalion Chief Lawrence Rude presented the Employee of the
Quarter for 2003 Administration/Training/Prevention (ATP) Division awards,
which were decided by the recipients' peers, as follows:
• 1st quarter - Candice Francisco, Office Assistant II;
• 2nd quarter - Corey Thomas, Fire Plans Reviewer III;
• 3rd quarter - Eric Chapman, Hazardous Materials Specialist;
March 15, 2004 Renton City Council Minutes Page 78
• 4th quarter - Fire Chief Lee Wheeler.
Deputy Fire Chief Art Larson presented awards for Firefighters of the Quarter
and Firefighter of the Year for 2003, as follows:
• lst quarter - Lieutenant Kris Weiland;
• 2nd quarter - Lieutenant Mike Proulx;
• 3rd quarter — Firefighter Roy Gunsolus;
• 4th quarter - Firefighter Kurt Folsom;
• Firefighter of the Year - Roy Gunsolus.
Fire Chief Lee Wheeler presented a plaque to Deputy Chief Glen Gordon who
is retiring after 33 '/2 years of service in the Renton Fire Department. He
explained how Deputy Gordon rose through the ranks, and praised his many
accomplishments and contributions, including his work with the new
Emergency Operations Center at Fire Station #12. Chief Wheeler expressed
appreciation for Deputy Gordon's commitment to the Fire Department and
stated he would be missed.
Deputy Chief Gordon accepted the plaque and stated that he felt honored to be
with the City of Renton Fire Department for over 33 great years. He noted
there had been many changes in the City and the Fire Department over the
years, and with the current leadership and the firefighters, the City will
continue to be happy with the level of service provided by the Department. .
Council President Persson thanked Deputy Chief Gordon on behalf of the
Council for his involvement in community programs, in addition to his many
years of service as a firefighter.
RECESS MOVED BY PERSSON, SECONDED BY NELSON, COUNCIL RECESS
FOR TEN MINUTES. CARRIED. 8:,01 p.m.
The meeting was reconvened at 8:13 p.m.; roll was called; all Councilmembers
present.
ADMINISTRATIVE Chief Administrative Officer Jay Covington reviewed a written administrative
REPORT report summarizing the City's recent progress towards goals and work
programs adopted as part of its business plan for 2004 and beyond. Items noted
included:
The week of April 4-10 is the designated observance of Building Safety
Week in the United States. Beginning in 1980, this event has had the same
objective of promoting the use, enforcement, and understanding of building
codes to safeguard the public. This year's theme is You Can Be a Part of
Building Safety Week. The International Code Council Foundation
sponsors this event and works with communities around the world to
promote the importance of building codes to public safety.
Puget Sound Access (PSA) hosted a public open house this weekend that
showcased the new South County community access cable television studio
located in Kent. PSA is a non-profit organization created to bring
communication tools to south King County residents. It offers training
workshops in video production and coordinates programming to be
accessed on Cable Channel 77 in south King County. Residents of the
member cities of Auburn, Burien, Kent, Renton, SeaTac, and Tukwila are
March 15, 2004 Renton City Council Minutes Page 79
encouraged to tour the new studio and visit the editing suites and meeting
rooms available for their use. For more information, visit PSA's website at
www.pugetsoundaccess.com.
More than 60 King County Metro vanpools commuting each weekday to
and from the Renton area are in need of new riders. Vanpools travel
between Renton and the south end, the eastside, and other areas, and are a
less stressful, more cost effective commute alternative to driving alone. For
more information, interested parties should contact the Rideshare Hotline at
1-888-814-1300 (TTY users 206-684-1855) or online at
www.rideshareonline.com.
AUDIENCE COMMENT Doug Neyhart, 315 Seneca St., Seattle, 98101, stated he is a Boardmember of
Citizen Comment: Neyhart - the Rental Housing Association of Puget Sound, and has been a rental -housing
Business Licenses, Apartment owner in Renton since 1971. He explained that he recently received a letter
Owners from the City and was appalled at being required to obtain state and city
business licenses for rental housing, and to report any hours that he works on
his building. He added that the letter stated he would be subject to code
enforcement for failing to comply. Mr. Neyhart said his research reveals the
state does not require rental -housing owners to obtain business licenses, and
that due to the high vacancy rates, such a requirement would be a hardship at
this time. He asked the Council to rescind the letter.
Chief Administrative Officer Jay Covington explained that not all information
regarding the letter and apparent expansion on City requirements was initially
available. He stated that the Administration plans to review any difference with
state law to see if changes should be made to City Code. He added it is the
City's intent to ensure that legitimate businesses comply with City Code, but
whether rental properties constitute a business remains to be determined. Mr.
Covington explained that the two -week time line for compliance would not be
applicable at this time.
City Attorney Lawrence Warren advised that he would be providing a formal
legal opinion on the matter for the Mayor and Council within the next week.
Citizen Comment: Smith -
Gregg Smith, 13715 SE 23rd Lane, Bellevue, 98005, agreed with the comments
Business Licenses, Apartment
made by Mr. Neyhart, stating that he is appalled by the City's actions. He
Owners
added that property values are affected because expenses further reduce
revenues. Mr. Smith explained that through his research efforts, he learned the
City of Seattle does not require a business license for rental properties. He
concluded by stating that the license requirement creates an administrative
burden for apartment owners and for the City, and asked that the requirement
be repealed.
Citizen Comment: Nolten -
Ronald Nolten, 16825 160th Ct. SE, Renton, 98058, stated he owns tri-plexes in
Business Licenses, Apartment
Renton and was stunned by the letter, so had asked for a copy of the ordinance.
Owners
He questioned why individually owned properties were not being included in
this requirement.
Citizen Comment: Hildebrand
Jennifer Hildebrand, Associate Executive Director of the Rental Housing
- Business Licenses,
Association of Puget Sound, 917 243rd Pl. SE, Sammamish, 98075, stated she
Apartment Owners
heard from about 30 members of their organization who are property owners
concerned about the business license requirement. Ms. Hildebrand offered to
work with the Council and the City to resolve the issue.
Councilmember Law inquired whether a letter should be sent to the 189
recipients of the original notice advising them of a two -week delay in
March 15, 2004
Renton City Council Minutes Page 80
determining the status of the requirement. Mayor Keolker-Wheeler assured
that the matter would be investigated immediately to determine the appropriate
course of action.
CONSENT AGENDA
Items on the consent agenda are adopted by one motion which follows the
listing.
Council Meeting Minutes of
Approval of Council meeting minutes of March 8, 2004. Council concur.
March 8, 2004
Finance: Compliance Audits,
Finance and Information Services Department requested a briefing on the
Vendor/Concessionaire
compliance audits conducted on the Cedar River Cafe (Espresso Stand), City
Contracts
Scene Caf6, Ivar's and Kidd Valley Restaurants, Cascade Canoe and Kayak, and
Insignia Kidder Mathews vendor/concessionaire contracts. Refer to Finance
Committee.
SAD: Highlands
Utility Systems Division recommended approval of a funding proposal to
Redevelopment Area
finance the construction of major water main improvements in the Highlands
Redevelopment area, and requested authorization to proceed with development
of the special assessment district. The City's cost share is $500,000. Refer to
Utilities Committee.
Public Works: Cedar River
Utility Systems Division recommended approval of a consultant agreement in
Section 205 Flood Damage
the amount of $103,823.94 with Golder Associates, Inc. to implement the 2004
Reduction 2004 Monitoring
Monitoring Plan for the Cedar River Section 205 Flood Damage Reduction
Plan, Golder Associates
Project. Council concur.
Council President Persson explained that the flood damage reduction project
for the Cedar River is required for another three years by the Corps of
Engineers, as a result of dredging.
MOVED BY PERSSON, SECONDED BY NELSON, COUNCIL APPROVE
THE CONSENT AGENDA AS PRESENTED. CARRIED.
CORRESPONDENCE
Correspondence was read from Michael J. Gerspach, 33102 East Lake Holm
Citizen Comment: Gerspach —
Dr. SE, Auburn, 98092, requesting connection to Renton's sewer for his
Sewer Service Connection
property located outside the City limits at 14713 SE 116th St., Renton, 98059.
Request for Property Outside
Councilman Clawson stated that this is a routine request and staff has
City Limits
recommended approval, since it is for one new home on an existing lot in the
sewer service area where there is a nearby main, and that a covenant to annex
and a development standards form will be obtained.
MOVED BY CLAWSON, SECONDED BY CORMAN, COUNCIL
APPROVE THE REQUEST FOR SEWER CONNECTION FOR THE
GERSPACH PARCEL. CARRIED.
Citizen Comment: Thrasher —
Correspondence was read from Lynn and Marian Thrasher, 904 Grant Ave. S.,
Renton Ave S Traffic Safety
Renton, 98055, regarding traffic flow and safety issues on Renton Ave. S. from
S. 3rd to S. 7th Streets, indicating that the current road configuration does not
adequately serve the growing Renton Hill community. The Thrashers
suggested restricting parking along the street as a way of improving traffic
safety.
MOVED BY PALMER, SECONDED BY BRIERE, COUNCIL REFER THIS
CORRESPONDENCE TO THE TRANSPORTATION (AVIATION)
COMMITTEE. CARRIED.
March 15, 2004 Renton City Council Minutes Page 81
Mayor Keolker-Wheeler explained that the issue of traffic safety on Renton
Ave. S. was brought to her attention, and is currently being addressed by staff.
Added
Correspondence was read from Ruth Larson, President of the Renton Hill
CORRESPONDENCE
Community Association, 714 High Ave. S., Renton, 98055, stating that Renton
Citizen Comment: Larson —
Ave. S. is the main access to Renton Hill, and that it is an old narrow street
Renton Ave S Traffic Safety
with parking on the east side only for homes with no or small garages. She
suggested options to solve some of the traffic problems, including the City
buying some of the houses, removing planting strips, buying property for a true
two-lane street, or painting a red "no parking zone" in certain areas. She asked
that Council consider some of the options offered.
MOVED BY PALMER, SECONDED BY BRIERE, COUNCIL REFER THIS
CORRESPONDENCE TO THE TRANSPORTATION (AVIATION)
COMMITTEE. CARRIED.
Added
Correspondence was read from Mr. and Mrs. William Collins, 420 Cedar Ave.
CORRESPONDENCE
S., Renton 98055, addressing safety concerns on Renton Ave. S. Mr. and Mrs.
Citizen Comment: Collins -
Collins stated there is no valid reason to exclude parking on the east side of
Renton Ave S Traffic Safety
Renton Ave. S. between S. 3rd and S. 7th St., and they asked that the signs be
removed. They also asked Council to consider painting curbs red at certain
areas and painting crosswalks at S. 7th and at S. 3rd St.
MOVED BY PALMER, SECONDED BY BRIERE, COUNCIL REFER THIS
CORRESPONDENCE TO THE TRANSPORTATION (AVIATION)
COMMITTEE. CARRIED.
OLD BUSINESS
Council President Persson presented a Committee of the Whole report
Committee of the Whole
regarding King County mitigation funds. The City entered into an agreement
King County: Mitigation Fund
with King County for the South Plant (Wastewater Treatment Plant) electrical
Use (Wastewater Treatment
cogeneration project. The agreement brought $2,216;000 in mitigation funds to
Plant), Transportation Projects
be split between four known transportation capital projects and one City capital
project (to be determined).
The Committee of the Whole recommended the following transportation capital
projects for placement of the funding:
SR 169 (Phase I) $1,200,000 into account #317.012175
Benson Road Pedestrian $150,000 into account #317.012309
Walkway Program (Highlands sidewalks) $166,000 into account #317.000009
Arterial Rehabilitation (Overlay Edmonds Ave.) $200,000 into account
#317.012186
The remaining $500,000 will be put into a King County Mitigation Reserve
account. This account must be a capital project account and can be moved to
any citywide capital project account designated. The current account indicated
is a placeholder account only.
King County Mitigation Reserve $500,000 into account #317.012310
MOVED BY PERSSON, SECONDED BY CLAWSON, COUNCIL CONCUR
IN THE COMMITTEE REPORT. CARRIED.
ORDINANCES AND The following ordinances were presented for second and final reading and
RESOLUTIONS adoption:
March 15, 2004 Renton City Council Minutes Page 82
Ordinance #5064 An ordinance was read annexing contiguous unincorporated territory known as
Annexation: Bales, SE 128th the Bales Annexation (8.52 acres generally bounded by NE 4th St., SE 130th
St & SE 130th St St., 155th Ave. SE, and 152nd Ave. SE), by the election method, setting the
taxation rate, and fixing the effective date of the annexation. MOVED BY
BRIERE, SECONDED BY NELSON, COUNCIL ADOPT THE ORDINANCE
AS READ. ROLL CALL: ALL AYES. CARRIED.
Ordinance #5065 An ordinance was read establishing the zoning classification of R-1
Annexation: Bales, R-1 Zoning (Residential - one dwelling unit per net acre) for the Bales Annexation,
consisting of 8.52 acres generally bounded by NE 4th St., SE 130th St., 155th
Ave. SE, and 152nd Ave. SE. MOVED BY BRIERE, SECONDED BY
CLAWSON, COUNCIL ADOPT THE ORDINANCE AS READ. ROLL
CALL: ALL AYES. CARRIED.
NEW BUSINESS Councilmember Corman reported receipt of an e-mail from a Boy Scout troop
Parks: May Creek Trail, Boy leader requesting assistance with an Eagle Scout project to clear part of a trail
Scout Project in the May Creek area originally in the King County parks system. Because the
trail is now in Renton's jurisdiction, Councilman Corman asked the
Administration to contact the scout to determine if the restoration project could
be completed.
EXECUTIVE SESSION MOVED BY CORMAN, SECONDED BY LAW, COUNCIL RECESS INTO
AND ADJOURNMENT EXECUTIVE SESSION FOR 15-20 MINUTES TO DISCUSS LITIGATION
WITH NO OFFICIAL ACTION TO BE TAKEN AND THAT THE COUNCIL
MEETING BE ADJOURNED WHEN THE EXECUTIVE SESSION IS
ADJOURNED. CARRIED. Time: 8:46 p.m.
Executive session was conducted. There was no action taken. The executive
session and the Council meeting adjourned at 9:30 p.m.
`J • Lt a
BONNIE I. WALTON, City Clerk
Recorder: Suzann Lombard
March 15, 2004
RENTON CITY COUNCIL COMMITTEE MEETING CALENDAR
Office of the City Clerk
COUNCIL COMMITTEE MEETINGS SCHEDULED AT CITY COUNCIL MEETING
March 15, 2004
COMMITTEE/CHAIRMAN DATE/TIME AGENDA
COMMITTEE OF THE WHOLE MON., 3/22 Emerging Issues
(Persson) 6:00 p.m. *Council Conference Room*
COMMUNITY SERVICES
(Nelson)
FINANCE
(Gorman)
PLANNING & DEVELOPMENT
(Briere)
PUBLIC, SAFETY
(Law)
Approximately Comp Plan Briefing -
6:30 p.m. Utilities and Housing Elements
*Council Chambers*
CANCELLED
MON., 3/22 Vouchers;
5:00 P.M. Compliance Audits of
Vendors/Concessionaires;
Bad Debt Write-off
TRANSPORTATION (AVIATION) THURS., 3/18
(Palmer) 4:00 p.m.
UTILITIES
(Clawson)
CANCELLED
Renton Hill Traffic Safety Concerns
CANCELLED
NOTE: Committee of the Whole meetings are held in the Council Chambers. All other committee meetings are held in the Council Conference Room
unless otherwise noted.
Project
Memoir Project
World Literature
Let's Bind Together
Read180
Repair Kiln
Eng. 2nd Lang
Life Mgmt
Paper Supplies
US History
Fashion Club
FBLA
Other Donations
RHS Excellence in Education
Mini -Grant Program
March 15, 2004
Staff
Diane French
Mary Cushman
Bill Tobias
Mary E. Washington
Grimm/Whittredge
Alicia Miller
Melissa Davis
Linda Cavins
Rebecca Shepherd
Miss Sinclair
Leo Bullock
Total
RHS Summer School Tina Devery
Talking Stick Hilari Anderson
Perf. Arts Center Shana Pennington -Baird Tools
Leadership Camp Alice Coleman
Amount
241.00
100.00
450.00
400.00
500.00
500.00
300.00
250.00
500.00
250.00
300.00
3,791.00
250.00
200.00
Purchased
250.00
Deputy Chief Lawrence Rude —
Began with the department February 16, 1981
Lieutenant - July 1, 1988
Instrumental in developing the Dive Team (not sure what time frame)
Captain - August 1, 1997 — included assignment in Training Division and Station Captain
Battalion Chief - October 1, 2000 — assigned as Fire Marshal
Deputy Chief - effective 3/16/04
Pursuing the National Fire Academy's Executive Fire Officer Program
Fire Marshal Stan Engler —
Begain with the department February 1, 1985
Lieutenant - July 16, 1993
Captain — July 16, 1997 — included assignment in Training Division and Station Captain
Acting Battalion Chief — July 1, 1998 — December 31, 1998
Battalion Chief — effective March 16, 2004 — assigned as Fire Marshal
Has been a Haz Mat Team member since its inception
Has been an Emergency Operations Center committee member since its inception in 1998
Seven years as Local 864 Union officer, six as president
He has been involved with Lt. Promotional testing for the past 7 years.
Captain Bob Van Horne —
Began with the department July 7, 1981
Lieutenant — April 1, 1994 — included assignment in Training Division
Captain — effective March 16, 2004 — assigned as Station 13 Captain
Firefighter of the Year 1990
Developed and revised many technical operational procedures
Lieutenant Shawn Mendenhall —
Began as a career firefighter with King County District 25 in 1988.
April 1, 1993 District #25 personnel merged with the Renton Fire Department.
Was primary Acting Lieutenant on C- Shift since 1998
Lieutenant — effective March 16, 2004
Hazmat team member
Rope Rescue
Coordinator for High School DUI Prom Night Choices drill since 1997
Elected Firefighter of the Year for 2001
Union President 1999 — 2003
All of them have letters of commendation for their service above and beyond the call of
duty, their service to the community and to the department.
A new firefighter will be welcomed to the Department in the process. These promotions
are all due to the retirement of Deputy Chief Glen Gordon.
(the Chief has your listing of pertinent information)
Deputy Chief Glen Gordon
Joined the Department September 1, 1970
Lt. — July 16, 1980
Captain — October 1, 1982
BC — August 27, 1984
Fire Marshal — January 1, 1986
Deputy Chief — October 1, 2000
1974 — Honored by the VFW - he was elected by his peers for: perfect attendance,
community involvement, personal appearance, proficiency at work, performs duties with
enthusiasm, pursuing continuing education, and a personal approach — responsible,
diplomatic, knowledgeable, a leader.
As Fire Marshal - Instrumental in Underground Storage Tank ordinance — still in effect
today. Led the way for the aquifer protection ordinance.
As Deputy Chief —
Emergency Operations Center coordinator
Helped with acquisition of Station 15 property
Managed the implementation of HIPAA laws in the Spring of 03
Hazard Mitigation Plan adopted by the City, State of WA and FEMA 2004
Near and dear to his heart, the new Station 12's Emergency Operations Center
CITY OF RENTON
MEMORANDUM
DATE: March 15, 2004
TO: Don Persson, Council President
Members of the Renton City Council
FROM: Kathy Keolker-Wheeler, Mayor
Jay Covington, Chief Administrative Officer
SUBJECT: Administrative Report
In addition to our day to -day activities, the following items are worthy of note for this week:
GENERAL INFORMATION
The week of April 4-10 is the designated observance of Building Safety Week in the United States.
Beginning in 1980, this event has had the same objective of promoting the use, enforcement, and
understanding of building codes to safeguard the public. Modern building codes regulate a myriad of safety
systems including design and structural requirements, fire prevention, electrical, plumbing and mechanical
systems, property maintenance, energy efficiency, and zoning. This year's theme is You Can Be a Part of
Building Safety Week. The International Code Council Foundation sponsors this event and works with
communities around the world to promote the importance of building codes to public safety.
Puget Sound Access (PSA) hosted a public open house this weekend that showcased our new South County
community access cable television studio located in Kent. PSA is a non-profit organization created to bring
communication tools to south King County residents. It offers training workshops in video production and
coordinates programming to be accessed on Cable Channel 77 in south King County. Residents of the
member cities of Auburn, Burien, Kent, Renton, SeaTac, and Tukwila are encouraged to tour the new
studio and visit the editing suites and meeting rooms available for their use. For more information, visit
PSA's website at www.pugetsoundaccess.com.
ADMINISTRATIVE, JUDICIAL, AND LEGAL SERVICES DEPARTMENT
• Mayor Kathy Keolker-Wheeler's State of the City address is now airing on Cable Channel 21. For the next
few months it will air on Monday at 9:00 a.m.; Tuesday and Thursday at 6:00 p.m. and 1:00 a.m.; and
Saturday and Sunday at 8:00 a.m. and 4:30 p.m.
COMMUNITY SERVICES DEPARTMENT
In 2003, eight south King County cities established a Joint Human Services Memorandum of Understanding
(MOU), the purpose of which was to allow more time for direct service by reducing the amount of
administrative time the agencies spent on contracts and reporting documents. Last year, the cities entered
into joint contracts with four agencies instead of each city contracting individually with these agencies for
the same service. The program was very successful and was expanded to nine agencies in 2004. The City
of Renton is the lead city and acts as the fiscal and administrative agent for the following non-profit
agencies: King County Sexual Assault Resource Center, Catholic Community Volunteer Chore Services,
Senior Services Meals on Wheels, and Volunteer Transportation.
0 The Summer Job Fair at the Renton Community Center on March 10' was a huge success with over 175
Administrative Report
March 15, 2004
Page 2
potential employees attending. Applicants were encouraged to talk to representatives from areas of
aquatics, tennis, athletics, day camps, parks, and the golf course.
• The Renton Youth Basketball program finished its season last weekend. The Recreation staff coordinated
677 boys and girls (grades three through nine), formed 70 teams, and facilitated 290 games. When the first
and second grade leagues, Renton Rookies Program, and Skills classes are included with the youth
basketball program, over 1,130 children between the ages of four and fifteen participated in a City
basketball program this season.
• Over 100 family members and friends attended the annual Winter Sports Banquet on March 12" at the
Senior Activity Center to honor the Special Population Program Special Olympic athletes, coaches, and
volunteers. This year's basketball program had 55 athletes and the junior team qualified for state
competition in Wenatchee, bringing home the silver medal for second place.
• On March 12`h the Recreation Division's Renton Youth Council hosted the first of two dances for Renton
middle school students at the Community Center. The second dance is scheduled for May 21s'.
• The Recreation Division received a grant of $1,500 from the National Recreation and Park Association for
its Tennis in the Parks program. This money will be used to enhance the summer park programs.
• The monthly theme dinner/dances held at the Renton Senior Activity Center have been a huge success,
attracting over 200 senior citizens. The theme of the next dinner/dance on March 19"' from 4:00 to 7:00
p.m. is A Night with Dick Clark. Cost is $5 per person. For more information call the Senior Center at 425-
430-6633.
• The Special Populations S.T.A.R. theater program received a donation of $250 from the Fairwood Lions
Club to assist with the costume and set costs for the performance of The Secret of the Blue Rose, which will
take place on Friday, April 301'', at 7:00 p.m. at Carco Theatre.
ECONOMIC DEVELOPMENT, NEIGHBORHOODS, AND STRATEGIC PLANNING
DEPARTMENT
• The Neighborhood Picnic Workshop, sponsored by the Renton Neighborhood Program, originally
scheduled for March 24', has been rescheduled to Wednesday, April 14`'', at 6:30 p.m., on the 7" floor of
City Hall. Neighborhood picnics were created to encourage neighbors to get to know one another; to create
a forum to discuss neighborhood ideas, issues, and concerns; and to have fun. This workshop will help
participants to plan, organize, and implement a successful picnic for their neighborhood/community. Come
and share your past experience and ideas as well as learn about additional resources for organizing this
year's picnic. All those attending should RSVP to their neighborhood liaison or Norma McQuiller,
Neighborhood Coordinator, at 425-430-6595.
• Applications for the Neighborhood Program 2004 Matching grants are due on Friday, March 191', at 5:00
p.m. In the past, grant funds have been used to help install neighborhood signs, clean up common areas, and
beautify traffic circles. For more information, please contact the Neighborhood Program at 425-430-6595.
FIRE DEPARTMENT
In February, Renton and Tukwila Fire Departments hosted a Firefighter Survivability Class. Nationally
recognized instructors from Indiana took crews through rigorous courses designed to simulate firefighters
trapped in a burning building and methods to survive the situation. The Renton Fire Department's Training
Division is coordinating with the regional training officer's association to provide three days of training in
March to King County Zone III. It is anticipated that 96 crews from throughout the south county region
will be trained in these survival techniques.
PLANNING/BUILDING/PUBLIC WORKS DEPARTMENT
Administrative Report
March 15, 2004
Page 3
�• More than 60 King County Metro vanpools commuting each weekday to and from the Renton area are in
need of new riders. Vanpools travel between Renton and the south end, the eastside, and other areas, and
are a less stressful, more cost effective commute alternative to driving alone. For more information,
interested parties should contact the Rideshare Hotline at 1-888-814-1300 (TTY users 206-684-1855) or
online at www.rideshareonline.com.
POLICE DEPARTMENT
• During the week of March 16-22, the Police Department will be conducting traffic emphasis in the
following areas and, in addition, all school zones during school days:
Renton Police Department Traffic Enforcement Emphasis
March 16-22
Date
6:00 a.m. to Noon
Noon to 6:00 p.m.
All Da
Motorcycles/Cars
Motorcycles/Cars
Radar Trailer
March 16, Tuesday
2200 blk, NE 711' St (speed)
Rainier/Grady (red light)
200 blk, S 2"' St
Lk Wash Blvd (speed)
S 21 St/Rainier Ave (red light)
March 17, Wednesday
I-405/MVH off ramp (improper
SW 43' St (speed)
4300 blk, NE 17"' St
turns)
2700 blk, Benson Dr S (speed)
S 43/Talbot Rd (red light)
March 18, Thursday
1100 blk, Carr Rd (speed)
2200 blk, NE 7' St (speed)
400 blk, Cedar Ave S
Lk Wash Blvd (speed)
Rainier Ave N (speed)
March 19, Friday
Lk Wash Blvd (speed)
SW 43r /East Valley Road (red
400 blk, Cedar Ave S
600 blk, Duvall Ave NE (speed)
lights)
SW Grady Way (speed)
March 22, Monday
SW Sunset Blvd (turns/speed)
N 30`h St (speed)
2600 blk, NE 7` St
1400 Houser Way (speed)
200 blk, S 2" St (speed)
CITY OF RENTON COUNCIL AGENDA BILL
AI #: W,V,
Submitting Data:
Dept/Div/Board.. Finance & IS Department
Staff Contact...... Victoria Runkle, Administrator
Subject:
Briefing on Compliance Audits of Vendors/
Concessionaires
Exhibits:
Issue Memorandum
Audit Reports from Merrill Carlson & Co. PLLC
For Agenda of:
March 15, 2004
Agenda Status
Consent ..............
Public Hearing..
Correspondence..
Ordinance .............
Resolution............
Old Business........
New Business.......
Study Sessions......
Information.........
X
Recommended Action: Approvals:
Legal Dept.........
Refer to Finance Committee Finance Dept...... X
Other ...............
Fiscal Impact: $
Expenditure Required... Transfer/Amendment.......
Amount Budgeted....... Revenue Generated.........
Total Project Budget City Share Total Project..
SUMMARY OF ACTION:
Merrill Carlson & Co., PLLC conducted compliance audits of city vendors/concessionaires. The
compliance audits on vendors/concessionaires are performed as required by contractual
provisions. Audit results are hereby submitted to Council for information.
STAFF RECOMMENDATION:
Staff submits reports for Council's information.
H:\FINANCE\ADMINSUP\2_AgendaBills\Compliance audits MCarlson briefing agenda bill.doc
�0R CITY OF RENTON
Finance & Information Services Department
MEMORANDUM
Date: March 8, 2004
To: Don Persson, Council President
City Councilmembers
Via:Kathy Keolker-Wheeler, Mayor
�a
From: Victoria Runkle, Finance & IS Administrator
Staff Contact: Elaine Gregory, Fiscal Services Director (ext. 6987)
Subject: Compliance Audits Performed by Merrill Carlson — Final Reports
Background:
In accordance with specific provisions of the vendor/concessionaire contracts, the City of Renton is
required to conduct annual compliance audits as it relates to the remittance of payments to the City. The
following vendors/concessionaires required such audits:
• Cedar River Cafe (Espresso Stand)
• City Scene Cafe
• Ivar's and Kidd Valley Restaurants
• Cascade Canoe and Kayak
• Insignia Kidder Mathews
`All My Restaurants,' which owns the RiverRock Grill & Alehouse located at the Maplewood Golf
Course, was scheduled to be included in this audit. However, due to the 2002 death of RiverRock's
owner, Jack Pederson, it was decided to reschedule this audit during 2004.
The City contracted with Merrill Carlson & Co., PLLC for audit services. Merrill Carlson Co. previously
performed this type of audit in 2002 for the RiverRock Grill & Alehouse. We found Merrill Carlson's
services to be satisfactory.
Each owner/business was notified by mail about the audit of their records. Merrill Carlson contacted each
business directly to schedule the time and date. Attached are copies of the final audit reports on each
concessionaire. A summary follows, along with the response from the City Community Services:
To: Don Persson, Council President
City Councilmembers
Via: Kathy Keolker-Wheeler, Mayor
March 8, 2004
Page 2
City River Cafe (Espresso Stand):
• Recalculation of monthly income determined that two months of income, with respect to sales tax
due, was overstated and over reported to both the City and the State.
• It was determined that the City River Cafe has not reached the level of profitability sufficient to
equal the compensation payable to food service supervisors, according to Washington State Wage
estimates. Therefore, the lessee was excused from the annual rental payment stipulated in the
contract.
Response from Community Services: No response required.
City Scene Cafe:
• It was determined that the City Scene Cafe has not reached the level of profitability sufficient to
equal the compensation payable to food service supervisors, according the Washington State Wage
estimates. Therefore, the lessee was excused from the annual rental payment stipulated in the
contract.
• It is unclear whether the lessee has been paying the correct amount of lease payments for leasehold
improvements, based on the language of the contract. It appears that the lessee assumed the lease
payments for the improvements. If this is correct, there would be no leasehold asset to calculate
and claim amortization of expenses. In this case, the vendor's net profit would be sufficient to
calculate the annual rental payment of 5 percent as stipulated in the contract.
Response from Community Services: The audit of the City Scene Cafe by Merrill Carlson & Co. raised a
concern in item #5 of their findings. Their question was whether the new deli owners paid (or
assumed) $77,700 in leasehold improvements. The answer is, yes, they did. When the deli
business was sold by the original owner, the contract was amended to line out reference to
constructing and installing capital improvements and language was added that the new owners had
to assume the outstanding capital improvement debt. Since, in 2002, the capital improvements
were only three years old, the deli owners were correct in continuing to amortize the debt and
include that in their net profit calculations. Therefore, the City Scene Cafe annual report is correct
as stated.
Cascade Canoe and Kayak Center:
• Cascade Canoe underpaid the City by $884.96; the owner was unaware of the calculation for the
2002 rent percentage.
• Kirk Merrill, of Merrill Carlson, noted that payments were delinquent throughout the year. We are
aware of this and asked Community Services to follow up with payment requests. As of
December 12, 2003, Cascade Canoe owes $1,128.40 in lease payments, with another $228.68 due
January 1, 2004.
Response from Community Services: Cascade Canoe and Kayak Centers records are not well kept which
makes sales analysis difficult. Part of this problem stems from the fact that records from the
Renton site are mixed with owner's Bellevue site.
H:IFINANCEIADMINSUPIS_IssuePapers_memos to Council or MayoeMemo to Council re compliance audits on concessionaires_Jan 20D4.doc
To: Don Persson, Council President
City Councilmembers
Via: Kathy Keolker-Wheeler, Mayor
March 8, 2004
Page 3
Cascade Canoe and Kayak is behind in their monthly rent and there is a underpayment of
percentage rent due from 2002.
Staff has already begun to work with the owner of Cascade Canoe and Kayak Center to pay his
back rent in a timely manner and to comply with the Merrill Carlson comments.
Ivar's Seafood Bar and Kidd Valley:
• The leasehold tax was not calculated on the percentage rent paid in 2003. The underpayment
amount is $2,616.84. Finance is reviewing prior years to determine whether leasehold tax was not
paid on the percentage rent.
• If the vendor can separate the leasehold interest and the concession interest, the vendor in effect
reduces the amount of leasehold tax paid through to the State via the City. It would have no affect
on the lease payment; but could be given as a good will gesture to the vendors.
Response from Community Services: The leasehold tax was not calculated on the percentage rent paid in
2003. Finance will determine whether leasehold tax was paid in prior years on the percentage rent.
Merrill Carlson and Co. also suggested a way in which Ivar's Inc. can possibly reduce the amount
of leasehold tax paid.
Staff will contact Ivar's Inc. immediately start negotiating compliance with the Merrill Carlson
comments.
Insignia Kidder Mathew's (IKM): GVA Property Management
• In early 2003, the Department of Revenue performed a leasehold tax audit of 11"'M. During the
examination the auditor voiced concern over the difficulty of reviewing the reports provided by
IKM, and verifying that the leasehold tax was properly calculated. In recalculating the leasehold
tax, Kirk Merrill confirmed that the tax was not properly calculated.
The calculation of leasehold tax is based upon the taxable rent by taking the office rent and
multiplying it by 12.84 percent; however, the leasehold excise tax that the tenant was paid to the
State through the City calculated in error, resulting in an overcharge by IKM to the tenant. The
City has complied in its responsibility to remit to the Department of Revenue all leasehold taxes
collected. This is an issue between the tenants and 1KM.
Response from Community Services: All matters related to Insignia Kidder Matthews, now GVA Kidder
Matthews, as property manager for the 200 Mill Building and the 4th floor of Renton City Hall.
A Comparison of 200 Mill Building and Renton City Hall Property Management budget against
year to date income and expenses reflected no exceptions for property at 200 Mill. Leased
property at Renton City Hall contained some variances, but was properly explained and
reasonable. No further action required.
WFINANCE)ADMINSUPt5 IssuePapers memos to Councl or MayorWemo to Council re compliance and is on concessionaires -Jan 2004.doc
To: Don Persson, Council President
City Councilmembers
Via: Kathy Keolker-Wheeler, Mayor
March 8, 2004
Page 4
A Comparison of activity on the bank statements and records reported to the City from GVA
contained no exceptions.
Merrill Carlson auditors examined the detail of repair expenditures in excess of the $5,000 limit
for capitalization. All expenses were appropriately recorded as repairs.
An examination management fees collected and compared to the contracted amount thresholds
(either 4% or $1000/month, whichever is greater) reflected two months of fees were combined in
one month. No further action was required.
An Examination of the leasehold tax charged to the tenants was compared to expense amounts on
the monthly profit and loss reports that the City receives. The amounts were identical, but Merrill
Carlson & Co concluded that the methodology of tax collection is incorrect, and that some
proportionate double taxation is occurring.
Merrill Carlson auditors were unable to properly calculate the leasehold tax on defaulted security
deposits. It is recommended that IKM (now GVA) change the security deposit practices to provide
for further separation of funds.
Action taken: Following a discussion of the latter two issues, GVA Finance Department is
reviewing their tax calculation and security deposit methodologies and will prepare a response. If
they are in agreement with Merrill Carlson, they will alter their collection methodology and assist
tenants with collection of refunds from the Department of Revenue. If they are not in agreement,
they will meet with Merrill Carlson for discussions and provide a formal response to the City.
Summary:
Given the scope of the examination, the auditor was satisfied those monthly sales reports were reported to
the City of Renton and that there was no material errors discovered which would affect the financial
condition of the City's records.
I would be happy to discuss any of the audit reports with you.
VAR/EG/dlf
Attachments, as stated
cc: Jay Covington, Chief Administrative Officer Bonnie Walton, City Clerk
Derek Todd, Assistant to the CAO Elaine Gregory, Fiscal Services Director
HiFINANCEWDMINSUPI5 IssuePapers_memos to Council or Mayor\Memo to Council re compliance audits on concessionaires -Jan 2004.doc
MERRILL CARLSON
T
Certified Public Accountants CO., PLLC
Providing direction for your financial future.
Independent Accountants' Report on Applying Agreed -Upon Procedures
To the Administrator
City of Renton Finance & Information Services
Renton, Washington
We have performed the procedures enumerated below, which were agreed to by the City
of Renton Finance & Information Services Department, solely to assist the specified
parties in evaluating City River Cafe's compliance with provisions 3, 4, 17, and 31 of the
contract during the year ended December 31, 2002 and the effectiveness of City River
Cafe's internal control over compliance with the aforementioned compliance
requirements as of December 31, 2002. The Concessionaire is responsible for City River
Cafe's compliance with those requirements. This agreed -upon procedures engagement
was performed in accordance with attestation standards established by the American
Institute of Certified Public Accountants. The sufficiency of these procedures is solely
the responsibility of those parties specified in this report. Consequently, we make no
representation regarding the sufficiency of the procedures described below either for the
purpose for which this report has been requested or for any other purpose.
The procedures and associated findings are as follows:
We selected certain months of the year to inspect daily register tapes and
compared to the concession's monthly sales totals to determine that all daily sales
generated were properly reported.
The totals from all daily register tapes reviewed were correctly entered on the
Concessionaire's monthly sales total report: however, some of the daily totals on
the daily register tapes were hand written.
2. We recalculated the totals on the concessionaire's monthly sales sheet and
compared them to the "Financial Report — Monthly Calculation" to determine that
all the monthly sales were reported to the City of Renton.
The income that was reported to the City of Renton for the month of July, 2002
was overstated by incorrectly including sales tax.
Evergreen Building • 15 S. Grady Way, Ste. 433 • Renton, WA 98055 • (425) 255-5945 • FAX (425) 255-8565 0 website: merrillcarlson.com
City of Renton Finance & Information Services
Page 2
3. We recalculated the totals on the "Financial Report — Monthly Calculation" and
compared the revenues that were reported to the City of Renton to the
Washington Combined Excise Tax Returns that were filed by the concessionaires.
The income that was reported to Washington State for the month of July, 2002
was also overstated by incorrectly including sales tax in revenues. Other than that
finding, we found no exceptions as a result of these procedures.
4. We recalculated the rent payments and the leasehold excise tax according to the
provisions of the concessionaire's agreement (contract).
The concessionaire calculated the rent payment and the leasehold excise tax
correctly based on the gross sales during the year.
The City has determined based on the terms of the contract that City River Cafe is
not yet at the breakeven point of profitability because the owners are not making
enough revenue to pay themselves reasonable wages. (See Exhibit A)
The City prepared a memorandum dated February 10, 2003 (to Kathy Keolker-
Wheeler and Renton City Council members with a copy to the Mayor) discussing
the Transit Center Espresso Stand and the City Scene Cafe. In the memorandum,
Mr. Jim Shepherd concluded that City Scene Cafe had not yet reached a level of
profitability to provide to the sole proprietor owner a draw on profits sufficient to
equal the compensation payable to a first line food service supervisor of $25,260
(according to Washington State Wage estimates). Therefore, the lessee was not
required to make the annual rental payments of 5% of revenues or $3,091 for
2002 to the City.
Exhibit A attached presents an analysis of the monthly income statement of City
River Cafe for the twelve months ending December 31, 2002 based on
information provided by the concessionaire.
The Exhibit was compiled in accordance with Generally Accepted Accounting
Principles as far as the information provided by the concessionaire was accurate
and sufficient to permit preparation in accordance thereof. (Note that no separate
inquiries of the owners or other procedures were performed as such procedures
were outside the scope of this engagement).
The net income before owner draws was $13,224 which is less than the
compensation that would be paid to a first line food service supervisor of $25,260
as noted above.
Thus, we concur with the decision made by the City that the lessee is excused
from the payment of rents due to the non -profitability of the business under terms
of the lease contract
City of Renton Finance & Information Services
Page 3
The concessionaire did pay the City of Renton the Leasehold excise tax.
5. We used ratio analysis and expected estimates to determine if expenses were
appropriately stated to the City of Renton.
The cost of supplies is 50.9% of gross revenues; this is higher by about 10% than
the 40.2% average cost of sales for restaurants based on the RMA study of
businesses. However, even if the costs for supplies were equal to 40.2% of
revenues rather than 50.9% of revenues, the increase in profitability would not be
sufficient to exceed the $25,260 compensation payable to a first line food service
supervisor of $25,260.
Equipment that was purchased during the year was expected to be depreciated
over an appropriate life, but the purchased amount was expensed in the month of
the purchase. However, even if the purchased amount were to be depreciated
over the appropriate useful life, the change to the net profit before owner draw
would not be large enough to provide compensation to the owner in an amount
equal to or greater than the compensation payable to a first line food service
supervisor of $25,260.
We were not engaged to, and did not, perform an examination, the objective of which
would be the expression of an overall opinion on the effectiveness of internal control over
compliance or on compliance. Accordingly, we do not express such an opinion. Had we
performed additional procedures, other matters might have come to our attention that
would have been reported to you.
This report is intended solely for the use of the City of Renton Finance & Information
Services Department and should not be used by those who have not agreed to the
procedures and taken responsibility for the sufficiency of the procedures for their
purposes.
Rt+.uC/&, 4 " d e �' P,/, & e-
Merrill, Carlson & Co., PLLC
August 19, 2003
.r Cafe
Dect,,,,,er 31, 2002
Income Statement
(Exhibit A)
A-1 - 4.186.00 4,073.82 3.870.87 4,30050 4.327.05 6.214.46 7 262 84 7.063,10 8.258.30 632380 5.658.73 61,539.47
A-2
A - 4.186.00 4,073.82 3,870,87 4,300.50 4.327.05 6.21446 7.26284 7,063 10 8.258.30 632380 5,658.73 61,539.47
8 1.134.40 3,997,66 4,073,82 3.870.87 4.30050 4.32705 6,21446 7,119.34 6,348.06 7,220.73 6,323,80 6.88551 61,816.20
C (1,134.40) 188,34 - 143.50 715.04 103757 (122678) (276.73)
B-1 "Equipment Purchase" - 250.00 - - - 1.44358 - - - 1.00000 - 2.69358
B-2 15.00 12.00 2.00 15.87 6.84 193.20 25.22 4,35 - - • 27448
B-3 614.88 1,867.99 2,14Z93 2,14793 3,247.17 3,350.02 2.75371 3.18242 2.961,52 2.665.35 3,69004 2,686.62 31.315,58
B-4 490,77 - - - - - - 490,77
B-5 - 239.93 44.27 148.34 15Z.35 73.34 67.97 200.57 152.96 112.97 149.40 1,342.10
B-6 13.75 318.00 - 13.75 - 13.75 - - 13.75 - 373.00
B-7 - 26.87 26.15 24.85 27.60 27,77 39.89 46.62 45.34 53.01 40,59 36.32 395.01
B-8 - - 30.00 30.00 30.00 30.00 30.00 30.00 30.00 30.00 30,00 30.00 300.00
B-9 - - - - - - - - - - - -
B•10 - 500.00 1,627.81 978.70 93.83 132.65 671.38 3,000.00 2,500.00 3,000.00 719,70 - 13,224.07
B-11 1.022.80 - 511.40 746.72 634.26 870.00 767A 1 606.28 1,070.08 73060 1.179.79 8.138.94
B-12 - - - 38.05 - - 75.74 - - 86.79 - - 20068
B-13 - - - 66.05 - - 49.87 - - 148.79 - 264.71
B-14 - - - - - - - - - 139.30 139.30
B-/5 - - - - - - - - - - - 2,664.08 2,664.08
8 1,134.40 3,997.66 4,073.82 3,870.87 4,300.50 4.327.05 6,214.46 7,119.34 6,348.06 7,220.73 6,323.80 6,885.51 61,816.20
8,259.82 12,498.42 20.540.40 20,240.83
January February March April May June July August September October November December Total
Revenues:
Sales $ - $ 4,186 $ 4,074 $ 3,871 $ 4,301 $ 4,327 $ 6.214 $ 7,263 $ 7,063 $ 8,258 $ 6,324 $ 5,659 S 61.539
Expenses:
Equipment purchases - 250 - - - - 1,444 - - - 1,000 - 2,694
Advertising 15 12 2 16 7 - 193 25 4 - - - 274
Supplies 615 1,868 2,148 2,146 3,247 3.350 2,754 3,182 2,962 2,665 3,690 2,687 31,316
Repairs 491 - - - - - - - - - - - 491
Phone - - 240 44 148 152 73 68 201 153 113 149 1.342
License fees 14 318 - 14 - - 14 - - 14 - - 373
Leasehold excise tax - 27 26 25 28 28 40 47 45 53 41 36 395
Professional fees - - 30 30 30 30 30 30 30 30 30 30 300
Labor 1.023 511 747 634 870 767 606 1,070 731 1,180 8,139
Labor and industries - - - 38 - - 76 - - 87 - - 201
Employment 8 Sectrity - - - 66 - - 50 - - 149 - - 265
Form 940,2002 - 139 139
Forth 940. 2001 - 2,664 2,664
TotalFxIpenses 1,134 3,498 2,446 2,892 4,207 4,194 5,543 4,119 3,848 4,221 5,604 6,886 48,592
Net Income Before Owner
Draws 1,134 688 1.628 979 94 133 671 3,144 3,215 4,038 720 (1,227) 12,947
Owners draws 500 1.628 979 94 133 671 3,000 2,500 3,000 720 13,224
Net Income (Loss) After
Owner Draws $ (1,134) $ 188 $ $ $ $ 0 $ $ 144 S 715 $ 1.038 $ (277)
Rent Payment Calculation
Revenues $ 61,539
Rent Payment % 5%
Rent Payment Amount $ 3,077
Leasehold Tax Calculation
Rent Payment Amotnt $ 3.077
Leasehold Tax % 12,84%
Leasehold Tax Payment S 395
MERRILL CARLSON_ Q
T
Certified Public Accountants (�
CO., PLLC
Providing direction for your financial future.
Independent Accountants' Report on Applying Agreed -Upon Procedures
To the Administrator
City of Renton Finance & Information Services
Renton, Washington
We have performed the procedures enumerated below, which were agreed to by the City
of Renton Finance & Information Services Department, solely to assist the specified
parties in evaluating City Scene Cafe's compliance with provisions 3, 4, 17, and 31 of the
contract during the year ended December 31, 2002 and the effectiveness of City Scene
Cafe's internal control over compliance with the aforementioned compliance
requirements as of December 31, 2002. The Concessionaire is responsible for City Scene
Cafe's compliance with those requirements. This agreed -upon procedures engagement
was performed in accordance with attestation standards established by the American
Institute of Certified Public Accountants. The sufficiency of these procedures is solely
the responsibility of those parties specified in this report. Consequently, we make no
representation regarding the sufficiency of the procedures described below either for the
purpose for which this report has been requested or for any other purpose.
We performed an onsite visit to the City Scene Cafe in June, 2003 to become familiar
with the premises and the operations of the Cafe. We did not separately interview the
owners at that time as we did not feel it necessary. We have concluded that separate
discreet observations would not result in any benefit to this engagement and we discussed
that conclusion with Elaine Gregory who concurred with that conclusion.
The procedures applied and associated findings are as follows:
1. We selected certain months of the year to inspect daily register tapes and
compared the daily receipts from those months to the concession's monthly sales
totals reports to determine that all daily sales generated were properly reported.
We found no exceptions as a result of the procedures.
2. We recalculated the monthly sales totals reports and compared them to the
"Financial Report — Monthly Calculation" to determine that all the monthly sales
were reported to the City of Renton.
Evergreen Building • 15 S. Grady Way, Ste. 433 • Renton, WA 98055 • (425) 255-5945 • FAX (425) 255-8565 • website: merrillcarlson.com
City of Renton Finance & Information Services
Page 2
We found that March 8th sales ($371) were not included in the March sales that
were reported to the City of Renton.
3. We recalculated the totals on the "Financial Report — Monthly Calculation" and
compared the revenues that were reported to the City of Renton to the
Washington Combined Excise Tax Returns that were filed by the concessionaires.
In the 2002 second quarter Excise tax return, the concessionaire included $200
more in sales than what was reported to the City of Renton in daily retail sales.
The concessionaire did not include any catering sales revenue on the Washington
Combined Excise Tax Returns. The total unreported sales on the Washington
State Excise Tax Reports for the year 2002 were $6,600. Please note that the
Cafe did include these sales on their report to the City.
4. We recalculated the rent payments and the leasehold excise tax according to the
provisions of the concessionaire's agreement (contract).
The concessionaire calculated the rent payment that would be due under the terms
of the lease and the leasehold excise tax correctly based on the gross sales
reported to the City during the year.
The City prepared a memorandum dated February 10, 2003 (to Kathy Keolker-
Wheeler and Renton City Council members with a copy to the Mayor) discussing
the Transit Center Espresso Stand and the City Scene Cafe. In the memorandum,
Mr. Jim Shepherd concluded that City Scene Cafe had not yet reached a level of
profitability to provide to the sole proprietor owner a draw on profits sufficient to
equal the compensation payable to a first line food service supervisor of $25,260
(according to Washington State Wage estimates). Therefore, the lessee was not
required to make the annual rental payments of 5% of revenues or $4,858 for
2002 to the City.
Exhibit A attached presents an analysis of the monthly income statement of City
Scene Cafe for the twelve months ending December 31, 2002 based on
information provided by the concessionaire.
The Exhibit was compiled in accordance with Generally Accepted Accounting
Principles as far as the information provided by the concessionaire was accurate
and sufficient to permit preparation in accordance thereof. (Note that no separate
inquiries of the owners or other procedures were performed as such procedures
were outside the scope of this engagement).
The net income before owner draws was $23,892 which is less than the
compensation that would be paid to a first line food service supervisor of $25,260
as noted above.
City of Renton Finance & Information Services
Page 3
Thus, we concur with the decision made by the City that the lessee is excused
from the payment of rents due to the non -profitability of the business under terms
of the lease contract
The concessionaire did pay the City of Renton on February 4, 2003 the Leasehold
excise tax.
5. We used ratio analysis and expected estimates to determine if expenses were
appropriately stated to the City of Renton.
The 2002 cost of supplies was 42.9% of gross revenues; this appears to be
reasonable based on a RMA study that cost of sales for restaurants is about
40.2%.
The financial information provided by the lessee indicates annual amortization of
$7,515. Based on our understanding of the costs passed onto the lessee according
to the information provided to us, it appears that $75,150 of leasehold
improvements costs were incurred by the lessee in addition to the assumption by
the lessee of monthly lease payments of $1,071 ($13,198 per year). The lessee is
amortizing the incurred leasehold costs over a 10 year period. We would have
expected the costs to be amortized over a 5 year period; that is, the initial term of
the lease (although the lease also has a 5 year extension beyond the initial 5 year
term).
The contract includes the following language in paragraph 3 that has been lined
out:
Assuming financial responsibility for the capital improvements (installation of
furnishings and equipment) to the Deli premises, valued at not less than
$77, 700.00 as agreed upon by both parties and described on Attachment C:
Furniture. Fixtures and Equipment List and Attachment D: Change Order
Proposal #111, Tenant Costs existing furniture, fixtures and equipment in the
City Hall Deli by assuming leasepayments on the fixtures and equipment.
(Amounts in italics were lined out in the contract provided.)
It is not clear to us whether the lessee both paid $77,700 in leasehold
improvements and also assumed lease payments of $13,198 per year or only
assumed the lease payments. If the lessee merely assumed the lease payments and
did not separately pay or incur the $77,700 in leasehold improvements, there
would be no leasehold asset upon which to calculate and claim amortization of
$7,515 per year. In such case, the net profit before owner draw would increase by
$7,515 per year and the revised net profit of $31,407 would exceed the
compensation payable to a first line food service supervisor of $25,260 by $6,147.
City of Renton Finance & Information Services
Page 4
As a result, the 5% percentage rent of $4,858 to the City would be payable.
Therefore, our conclusions are subject to clarification of these facts.
We were not engaged to, and did not, perform an examination, the objective of which
would be the expression of an overall opinion on the effectiveness of internal control over
compliance or on compliance. Accordingly, we do not express such an opinion. Had we
performed additional procedures, other matters might have come to our attention that
would have been reported to you.
This report is intended solely for the use of the City of Renton Finance & Information
Services Department and should not be used by those who have not agreed to the
procedures and taken responsibility for the sufficiency of the procedures for their
purposes.
Merrill, Carlson & Co., PLLC
August 19, 2003
Ciq 3 Cafe
December 31, 2002
Income Statement
(Exhibit A)
January
February
March
April
May
June July
August
September
October
November
December
Total
Revenues:
Sales
$ 6,969
$ 7,726
$ 7,977
$ 8,354
$ 7,793
$ 8,047 $
8,377
$ 7,943
$ 7,047
$ 8,108
$ 6,548
$ 5,674
$ 90,561
Catering
550
550
550
550
550
550
550
550
550
550
550
550
6,600
Total Revenues
7,519
8,276
8,527
8,904
8,343
8,597
8,927
8,493
7,597
8,658
7,098
6,224
97,161
Expenses:
Equipment lease
payments
1,071
1,071
1,071
1,071
1,416
1,071
1,071
1,071
1,071
1,071
1,071
1,071
13,198
Amortization
626
626
626
626
626
626
626
626
626
626
626
626
7,515
Supplies
2,674
3,247
4,037
4,045
2,852
4,585
4,437
3,413
4,614
2,584
2,602
2,624
41,713
Repairs
100
-
-
-
-
151
0
-
-
-
-
252
Phone
39
40
39
39
39
39
56
39
41
39
40
40
494
License fees
14
-
14
-
14
-
14
55
Leasehold excise tax
48
53
55
57
54
55
57
55
49
56
46
40
624
Professional fees
35
35
35
35
35
35
35
35
35
35
35
35
420
Business insurance
35
35
35
35
35
35
35
35
35
35
35
35
423
Depreciation
20
20
20
20
20
20
20
20
20
20
20
20
240
Labor
-
769
743
768
768
794
850
1,186
500
511
515
500
7,904
Employment
-
-
-
77
-
-
145
-
-
-
-
-
221
Labor and industries
57
97
58
212
Total Expenses
4,663
5,897
6,661
6,844
5,846
7,260
7,594
6,480
6,991
5,050
4,990
4,992
73,270
Net Income Before Owner
Draws
2,856
2,380
1,866
2,060
2,497
1,337
1,333
2,012
606
3,607
2,107
1,232
23,892
Owners draws
2,000
2,000
1,500
2,900
2,000
2,000
2,900
1,702
2,900
1,000
2,000
1,000
23,902
Net Income (Loss) After
Owner Draws
$ 856
$ 380
$ 366
$ 497
$ (663) $ (1,567)
$ 310
$ (2,294)
$ 2,607
$ 107
$ 232
$ (10)
Rent Payment Calculation
Revenues
$ 97,161
Rent Payment %
5%
Rent Payment Amount
$ 4,858
Leasehold Tax Calculation
Rent Payment Amount
$ 4,858
Leasehold Tax %
12.84%
Leasehold Tax Payment
$ 624
MERRILL CARLSON
T
Certified Public Accountants CO., PLLC
Providing direction for your financial future.
Independent Accountant's Report on Applying Agreed -Upon Procedures
To the Administrator
City of Renton Finance & Information Services
Renton, Washington
We have performed the procedures enumerated below, which were agreed to by the City
of Renton Finance & Information Services Department, solely to assist the specified
parties in evaluating Cascade Canoe and Kayak Center's compliance with provision 6 of
the contract during the year ended December 31, 2002 and the effectiveness of Cascade
Canoe and Kayak Center's internal control over compliance with the aforementioned
contract requirements as of December 31, 2002. The Concessionaire is responsible for
Cascade Canoe and Kayak Center's compliance with those requirements. This agreed -
upon procedures engagement was performed in accordance with attestation standards
established by the American Institute of Certified Public Accountants. The sufficiency of
these procedures is solely the responsibility of those parties specified in this report.
Consequently, we make no representation regarding the sufficiency of the procedures
described below except for the purpose for which this report has been requested.
The procedures and associated findings are as follows:
1. Analyzed the daily sales receipts for the year to verify that all the sales
subject to the contract provision for the year were included in the rent and
the leasehold tax calculations.
The Company records for the daily sales receipts include sales revenues
for sales transactions at Coulon Park and sales transactions at other
locations. Therefore, the total receipts had to be analyzed to segregate
Coulon Park sales subject to the provisions of this contract and other sales
transactions not subject to the rent calculation.
The sales revenues that are included in the rent and leasehold tax
calculation are sales transactions at Coulon Park for the following
- Lessons,
- Guide Services launched from the Cedar River Boathouse,
- Races,
- Promotional activities,
Evergreen Building • 15 S. Grady Way, Ste. 433 • Renton, WA 98055 • (425) 255-5945 • FAX (425) 255-8565 • website: merrillcarlson.com
City of Renton Finance & Information Services
Page 2
- Boat Rentals,
- All merchandise sold at Cedar River Boathouse.
The schedules prepared as part of this report include only sales revenues
subject to the terms of the agreement between the City of Renton and the
Company.
The assistance of the owner was needed to analyze the daily sales receipts
to identify sales to be included in the rent calculation. Individual invoices
for the entire year were examined, summarized, and totaled to determine
Coulon Park sales activities..
2. Analyzed sales totals for each month of the year and calculated the amount
of rent and leasehold tax that should have been paid to the City of Renton,
and compared to amounts the City of Renton actually received.
Based on the contractual agreement, monthly rent is the greater of $200 or
8.5% of the monthly sales and the monthly leasehold tax is 12.84% of the
monthly rent. Based on the sales analysis, the rent for the year was
$3, l 83.29 and the leasehold tax was $408.73, for a total of $3,592.02.
The owner paid to the City of Renton the $200 per month base rent as well
as the $25.68 leasehold excise tax. The total of these amounts for the year
is $2,708.16 (12 months times ($200.00 plus $25.68)). According to the
City of Renton's records, the amount received for the year 2002 totaled
$2,707.06, a difference of $.08..
The resulting underpayment of $884.96 represents the excess of the
percentage rent over the base rent. Because the owner had not segregated
the Coulon Park receipts from the non -Coulon Park receipts, the owner
was not aware that a percentage rent was due for 2002. We have not
advised the owner of the shortfall in the payment due to the percentage
rent as we did not determine the shortfall until after returning from the
onsite visit.
We recommend that the owner establish additional accounting procedures
to separately maintain Coulon Park receipts from non -Coulon Park
receipts so that the determination of the percentage rent may be performed
on a more timely basis.
See the attached Analysis of Monthly Payment to the City of Renton.
3. Provision 6 of the contract requires that the payment to the City of Renton
be paid on or before the fifteenth day of the following month.
City of Renton Finance & Information Services
Page 3
Payments from Cascade Canoe and Kayak Center for the year 2002 were
made in five payments: April 3, June 20, August 16, September 25, and
December 10 and therefore were not in compliance with the terms of
provision 6 of the contract.
We were not engaged to, and did not, perform an examination, the objective of which
would be the expression of an overall opinion on the effectiveness of internal control over
compliance or on compliance. Accordingly, we do not express such an opinion. Had we
performed additional procedures, other matters might have come to our attention that
would have been reported to you.
This report is intended solely for the use of the City of Renton Finance & Information
Services Department and should not be used by those who have not agreed to the
procedures and taken responsibility for the sufficiency of the procedures for their
purposes.
/Y'UW eav' � &•) PLLC—
Merrill, Carlson & Co., PLLC
December 10, 2003
MERRILL CARLSON % of fientor.
T
Certified Pu6licArcounta�ztr '" DEC�,
200y.
Co., PLLC � j
Providing direction for your financial future. �n�c9 �� e NaPt j ifs {r `
t.,Q,<;
Independent Accountant's Report on Applying Agreed -Upon Procedures
To the Administrator
City of Renton Finance & Information Services
Renton, Washington
We have performed the procedures enumerated below, which were agreed to by the City
of' Renton Finance & Information Services Department, solely to assist the specified
parties in evaluating Kidd Valley and Ivar's Seafood Bar's compliance with sections D
and X of the contract during the year ended December 31, 2002 and the effectiveness of
Kidd Valley and Ivar's Seafood Bar's internal control over compliance with the
aforementioned compliance requirements as of December 31, 2002. The Concessionaire
is responsible for Kidd Valley and Ivar's Seafood Bar's compliance with those
requirements. This agreed -upon procedures engagement was performed in accordance
xvith attestation standards established by the American Institute of Certified Public
;accountants. The sufficiency of these procedures is solely the responsibility of those
parties specified in this report. Consequently, we make no representation regarding the
sufficiency of the procedures described below except for the purpose for which this
report has been requested.
Fhe procedures and associated findings are as follows:
I. Analyzed daily transaction tapes for two, randomly selected, months
(March and September) for the proper content and compared them to the
daily total tape and to the respective Daily Financial Information Report
for both Kidd Valley and Ivar's Seafood Bar.
All of the daily transaction tapes had the proper content according to the
contract (date, amount of the transaction). The daily total tapes examined
included all of the daily tapes.
2. Traced the daily Financial Information Report to the general ledger detail
for two, randomly selected, months (March and September) for both Kidd
Valley and Ivar's Seafood Bar to determine that all the daily sales were
recorded in the respective general ledger and that the monthly total was
presented on the respective profit and loss statement.
Evergreen Building • 15 S. Grady Way, Ste. 433 • Renton, WA 98055 • (425) 255-5945 • FAX (425) 255-8565 • website: merrillcarlson.com
City of Renton Finance & Information Services
I'age 2
All of the sales totals were recorded into the respective general ledger and
presented on the respective profit and loss statement.
>. Analyzed the sales report that was provided to the City of Renton to verify
that the report agreed to the sales on the respective profit and loss
statements.
The monthly sales reported to the City of Renton did agree to the
provisions within the contract for each month for each restaurant
4. Verified the monthly sales on the profit and loss statements were reported
to the Department of Revenue.
5. Compared the monthly sales reported on the profit and loss statements
with the monthly B&O tax reports for two, randomly selected, months
(March and September) for both restaurants.
The amounts reported on the profit and loss statements and the monthly
B&O reports reconciled with each other. We note that the value of
employee meals provided as a fringe benefit to employees is included as
revenue and subjected to sales tax in the monthly B&O tax report and
excluded from revenues for purposes of the percentage rent calculation.
The definition of "net receipts" set forth in paragraph C.3 of the agreement
provides:
"The term "net" as used herein means the value proceeding or
accruing from the sale of goods, food, services and business
transactions of every kind occurring on the Concession Premises
without any deduction for costs of products sold, material used,
labor, or other expenses whatsoever paid or accrued. It excludes
monies collected for Washington Sales Taxes from the purchaser
of food, goods, and services.
It would seem appropriate to exclude from the definition of net receipts
(upon which the percentage rent is calculated) the value of meals provided
as fringe benefits to employees.
6. Analyzed all monthly sales reports provided to the City of Renton and
discussed with the controller at Kidd Valley and Ivar's Seafood Bar to
verify that the monthly sales reported to the City was timely and complied
with the contract.
Each monthly sales report was provided to the City of Renton by the I0`"
of the following month, which complies with the contract.
Otv of Renton Finance & Information Services
The contract states that along with the monthly sales report the daily
register tapes will be submitted. Kidd Valley and Ivar's Seafood Bar did
not send these daily register tapes with the monthly sales report.
Based on discussions with the City of Renton's Finance Department and
with the accounting staff at Kidd Valley and Ivar's Seafood Bar, there was
an oral agreement that the daily register tapes would not be provided on a
monthly basis. This agreement is reflected in the subsequent contract
signed May 12, 2003.
7. Rent is composed of base rent of $1 10,000 a year paid in monthly
installments of $9,166.67, and percentage rent which is 12% of sales over
$1,100,000 for both restaurants.
We analyzed the expenses in the monthly profit and loss statements to
determine that the base rent was recorded. The proper amounts were
recorded and corresponding payments were received by the City of Renton
each month.
The percentage rent in the amount of $20,380.36 was paid in January of
2003. We compared the revenue amounts from the profit and loss
statements of both restaurants to the calculation worksheet.
S. The contract provides that the records for Ivar's Seafood Bar must be
accessible to the City of Renton or to its representative.
The City has not requested to see the records during the year except for
this agreed upon procedure engagement. The records are available for
review any time during the year at the main office in Seattle. The records
were provided to us without reservation as we performed this agreed -upon
procedures engagement.
9. Recalculated Leasehold tax (12.84%) which is calculated on the rents
received during the year (Ivar's Seafood Bar and Kidd Valley) and traced
the amount to the expense recorded on the Profit and Loss Statement.
The Leasehold tax was properly calculated, recorded, and paid on the
monthly base rent.
The Leasehold tax was not calculated on the Percentage rent paid in
January of 2003. The amount of underpaid Leasehold Tax is $2,616.84.
It is not known whether the Leasehold Tax has not been paid on the
percentage rent paid in prior years.
City of Renton Finance & Information Services
Page 4
10. A review of RCW 82.29A which provides for the imposition of the
Leasehold Tax on rental income from property tax exempt property
defines contract rent as
"the amount of consideration due as payment for a leasehold interest,
including: The total of cash payments made to the lessor or to another
party for the benefit of the lessor according to the requirements of the
lease or agreement.... expenditures for the protection of the lessor's interest
when required by the terms of the lease or agreement; and expenditures for
improvements to the property to the extent that such improvements
become the property of the lessor. Where the consideration conveyed
for the leasehold interest is made in combination with payment for the
concession or other rights granted by the lessor, only that portion of
such payment which represents consideration for the leasehold
interest shall be part of contract rent."
The rent payments from Ivars and Kidd Valley appear to be composed of
both a rent for the leasehold rights (the buildings and real estate) and for
the concession rights (which are intangibles). In the next contract
negotiation with Ivars and Kidd Valley, you may wish to separate the
amount of the rental payment for the leasehold property rights and the
concession rights. The Leasehold Tax would only be assessed on the
rental payments for the leasehold property rights, not the concession
rights. While the City acts as a pass -through collector of the Leasehold
Tax and would not necessarily benefit from the reduction of Leasehold
Tax reimbursed by the lessee, it may result in a good will gesture to the
lessee and make the negotiations easier.
We recommend that the idea be communicated to the lessee (Ivars and
Kidd Valley) and allow their legal counsel to determine whether this is an
effective strategy. We do not recommend that the resources of the city be
expended to research this strategy for the benefit of the lessee.
We were not engaged to, and did not, perform an examination, the objective of which
would be the expression of an overall opinion on the effectiveness of internal control over
compliance or on compliance. Accordingly, we do not express such an opinion. Had we
performed additional procedures, other matters might have come to our attention that
would have been reported to you.
City of Renton Finance & Information Services
PaOe 5
'['his report is intended solely for the use of the City of Renton Finance & Information
Services Department and should not be used by those who have not agreed to the
procedures and taken responsibility for the sufficiency of the procedures for their
purposes.
Merrill, Carlson & Co., PLLC
December 5, 2003
MERRILL CARLSON C��J_
Certified Public Accountants Co., PLLC
Providing direction for your financial furure.
Independent Accountant's Report on Applying Agreed -Upon Procedures
To the Administrator
City of Renton Finance & Information Services
Renton, Washington
CRY of Rerttc),
We have performed the procedures enumerated below, which were agreed to by the City
ol' Renton Finance & Information Services Department, solely to assist the specified
parties in evaluating Insignia Kidder Mathews' compliance with provisions 3, 5, 7, and 9
ol' the contract during the year ended December 31, 2002 and the effectiveness of
Insi;,4nia Kidder Mathews' internal control over compliance with the aforementioned
compliance requirements as of December 31, 2002. The Property Manager is responsible
tOr- Insionia Kidder Mathews' compliance with those requirements. This agreed -upon
procedures engagement was performed in accordance with attestation standards
established by the American Institute of Certified Public Accountants. The sufficiency of
these procedures is solely the responsibility of those parties specified in this report.
Consequently, we make no representation regarding the sufficiency of the procedures
described below for any purpose other than the purpose for which this report was
prepared.
['he procedures and associated findings are as follows:
1. Analyzed the monthly Management Report for "200 Mill Building" and "Renton
City Hall" for a comparison of monthly and year -to date income and expenses
with the Approved Budget, and income variances for the "Renton City Hall"
building.
200 Mill Building;
We found no exceptions as a result of the procedures.
Renton Cites
There were variances during the year. The variances were due to the tenant
reimbursements. On each monthly Management Report (January and February
were missing) these differences were properly explained in the monthly
Management Report. We reviewed the explanations and noted that they appeared
to be reasonable.
f.vcrgrcen Building • 15 S. Grady Way, Ste. 433 • Renton, WA 98055 • (425) 255-5945 • VAX (425) 255-8565 • website: rnerrillcarlson.unn
Analyzed selected months of the year and compared the activity on the bank
statements to the records reported to the City of Renton.
We found no exceptions as a result of the procedures.
Analyzed the monthly profit and loss statements to determine whether the repairs
expense account contained any one expenditure that exceeded $5,000.
Repairs for the
month
January
6,842.00
February
7,598.79
March
5,351.10
April
16,245.52
May
19,387.56
June
19,011.61
July
6,313.00
August
11,469.13
September
9,361.00
October
6,385.08
November
6,578.80
December
9,153.09
Any Repair
item Greater
than 5,000
No
No
No
Yes
No
No
No
No
No
No
No
No
The "200 Mill Building" had one repair expense in April that was greater than
$5,000. After inquiring of accounting personnel, we determined the $5,000
expense was misclassified and was actually a properly authorized building
improvement that should have been capitalized and there were no unauthorized
expenditures in excess of $5,000.
The "Renton City Hall" facility did not have any repair expenditures greater than
$5,000.
Insignia Kidder Mathews receives authorization from the finance department of
the City of Renton before incurring repair expenses of any magnitude. In other
words, before costs are incurred for any significant repair item, Insignia Kidder
Matthews requests authorization from the finance department.
4. Recalculated the management fees based on the agreement and compared them to
the management fees actually expensed on the Profit and Loss Statements
reported to the City of Renton.
-2-
a. Management fees for "200 Mill Building" were to be $1,000 per month or
4% of the (office rents + Operating Reimbursements), whichever is
greater.
Office Rents
Management
Recalculation
+ Operating
Fees Expensed
based on
Reimbursements
on Profit & Loss
Agreement
January
20,238.63
1,000.00
1,000.00
February
26,474.08
1,058.97
1,058.96
March
26,100.64
1,044.03
1,044.03
April
13,994.38
1,000.00
1,000.00
May
41,541.64
1,661.68
1,661.67
June
41,309.97
1,652.41
1,652.40
July
45,556.80
1,822.27
1,822.27
August
42,148.02
-
1,685.92
September
42,148.02
3,371.85
1,685.92
October
41,715.69
1,668.64
1,668.63
November
40,492.01
1,619.69
1,619.68
December
26,949.78
1,078.00
1,077.99
Total
$408,669.66
$16,977.54
$16,977.47
There was no expense in the month of August. Instead the management
fees for the months of August and September were expensed and paid in
September($1,685.92+$1,685.92=$3,371.85). No other significant
variations were noted.
b. Management fees for "Renton City Hall" were to be $750 per month.
We found no exceptions as a result of the procedures.
5. Recalculated the Leasehold Tax based on the agreement and compared to the
Leasehold Tax expense that was expensed on the Profit and Loss Statements
reported to the City of Renton.
- 3 -
200 Mill Building
Total Revenues (Base Calculated
Month
Rent + Leasehold Tax
Reimbursed)
Leasehold Tax
@12.84%
Actual Expense
Recorded
January
$25,631.18
$3,291.04
$5,392.55
February
28,734.27
3,689.48
2,260.19
March
28,360.83
3,641.53
2,260.19
April
17,602.77
2,260.20
3,608.39
May
41,163.94
5,285.45
-
June
48,053.58
6,170.08
6,743.61
July
48,611.56
6,241.72
3,936.21
August
56,070.11
7,199.40
14,274.67
September
47,952.53
6,157.10
6,157.09
October
47,452.53
6,092.90
5,913.13
November
46,457.08
5,965.09
5,965.07
December
30,515.37
3,918.17
3,918.17
Total
$466,605.75
$59,912.18
$60,429.27
Based solely on this analysis, the leasehold taxes would appear to be overpaid by
$517.09. However, we believe that the methodology applied by Insignia Kidder
Matthews is incorrect as set forth below.
Renton City Hall
Month
Total Revenues -
Tenant
Reimbursements
Calculated
Leasehold Tax
@12.84%
Actual Expense
Recorded
January
$29,023.93
$3,726.67
$3,726.70
February
29,024.13
3,726.70
28,686.41**
March
29,024.13
3,726.70
28,365.46 **
April
25,297.43
3,248.19
- ***
May
32,750.83
4,205.21
7,453.40
June
29,024.13
3,726.70
3,726.70
July
29,024.13
3,726.70
3,726.70
August
29,024.13
3,726.70
3,726.70
September
29,024.13
3,726.70
3,726.70
October
29,024.13
3,726.70
3,726.70
November
29,024.13
3,726.70
3,726.70
December
29,024.13
3,726.70
3,726.70
Total
$348,289.36
$44,720.37
$94,318.87
[,ess Monthly net cash flow misclassified to expense instead of
Owner distributions:
February ($22,959.71)
March ($$24,638.76)
Corrected Expense Total $44,720.04
!Q
"The monthly disbursement of net cash now from rents after reduction for
operating costs for February and March was incorrectly misclassified from the
'distributions to owner" account to the "Real Estate Tax" expense account. This
does not affect cash flow to the City or cause any other problem --it is simply a
misclassification error for bookkeeping purposes.
***Amount for the month was not paid and paid in arrears in the following
month.
We inquired of Insignia Kidder Matthews management how the leasehold tax was
calculated and determined that the following formula appears to be followed:
(fuse Rent plus reimbursed Leasehold Tax) X 12.84% rate = Leasehold Tax
or alternatively,
(Base rent x Leasehold tax rate) / (1 — Leasehold tax rate) = Leasehold Tax
See Attachment #1 — Calculation of Leasehold Tax
The management company appears to be using a simultaneous equation to
determine the Leasehold Tax rather than merely calculating the Leasehold Tax
on the rental income inuring to the benefit of the City.
Thus, we conclude that the calculation results in a "tax on a tax" and is not
correct.
We contacted the Washington State auditor, David Gebauer, who had
previously worked with the City of Renton regarding Leasehold Tax issues.
Ile stated that the Leasehold tax is to be assessed on the amount of rent that is
stipulated within the contract and should not be assessed on the
reimbursement of the tax by the lessee.
(Note: Equipment leasing companies are required to assess sales tax on lease
payments made for the use of leased property —they do not calculate the sales
tax on the total lease payment including the sales tax —just on the amount of
the lease payment itself).
RCW 82.29A defines contract rent (for purposes of determining the Leasehold
Tax) as:
"the amount of consideration due as payment for a leasehold interest,
including: The total of cash payments made to the lessor or to another
party for the benefit of the lessor according to the requirements of the
lease or agreement.... expenditures for the protection of the lessor's
- 5 -
interest when required by the terms of the lease or agreement; and
expenditures for improvements to the property to the extent that such
improvements become the property of the lessor. Where the
consideration conveyed for the leasehold interest is made in combination
with payment for the concession or other rights granted by the lessor, only
that portion of such payment which represents consideration for the
leasehold interest shall be part of contract rent."
We have attached the RCW 82.29A which defines "Contract Rent", See
attachment 42.
In this case, the leasehold tax assessed on the rent and collected from the
lessee is not a cash payment made to the lessor for the benefit of the lessor
according to the requirements of the lease or agreement —the reimbursement
of the leasehold tax is for the benefit of the State of Washington and the lessor
(the city) merely acts as a conduit for payment to the state of the leasehold tax.
The reimbursement of the leasehold tax is also not an expenditure made for
the protection of the lessor's (the city) interest.
Thus, we conclude that the methodology used by Insignia Kidder Matthew has
resulted in a significant overpayment of the leasehold tax in the amount of
approximately 12.84% of the total amount paid (the tax on the tax amount).
0. Analyzed the monthly Management Reports to verify that revenues and the
leasehold tax were properly calculated for defaulted security deposits.
Insignia Kidder Mathews forwards all the security deposits to the City of Renton.
Tlierefore, we were unable to determine if any deposits in 2002 were defaulted
and added to the revenues and that the leasehold tax was calculated on any
defaults.
We recommend that Insignia Kidder Matthew retain the security deposits in a
special savings account (with interest income to the city) and retain the
accounting for the security deposits on their records rather than formally
forwarding the security deposits to the city. In that way, when a lease deposit is
Iorfeited, Insignia Kidder Matthew can reclass the amount from the liability
section of the balance sheet into the revenue section and properly calculate the
tax. We also recommend that lessees be required to pay the 12.84% leasehold tax
on the security deposit when deposited. For example, if the security deposit is
$10,000, the amount collected from the lessee would be increased by $1,284
leasehold tax thereon and the total security deposit would be $11,284. This is
commonly done in the equipment leasing industry for sales tax assessed on
equipment lease security deposits.
-6-
The Finance department of the City of Renton may want to follow up on this issue
to determine whether any defaults have occurred since the last audit.
We were not engaged to, and did not, perform an examination, the objective of which
would be the expression of an overall opinion on the effectiveness of internal control over
compliance or on compliance. Accordingly, we do not express such an opinion. Had we
performed additional procedures, other matters might have come to our attention that
would have been reported to you.
['Ills report is intended solely for the use of the City of Renton Finance & Information
Serviccs Department and should not be used by those who have not agreed to the
procedures and taken responsibility for the sufficiency of the procedures for their
purposes.
le'M�l &RXr,1X, -;(&7,
Merrill, Carlson & Co., PLLC
December 1 1, 2003
WE
Attachment #1 - Calculation of Leasehold Tax
Base Rents
excluding
Leasehold Tax
equals Office
Rents
200 Mill Avenue
Leasehold Tax
Expensed, per
Monthly
Management
(C)
(D)
(A) + (B),
Revenues used
(C) x 12.84%,
to calculated
Leasehold Tax
Leasehold Tax
@ 12.84%
January
20,238.63
5,392.55
25,631.18
3,291.04
February
26,474.08
2,260.19
28,734.27
3,689.48
March
26,100.64
2,260.19
28,360.83
3,641.53
April
13,994.38
3,608.39
17,602.77
2,260.20
May
41,163.94
-
41,163.94
5,285.45
June
41,309.97
6,743.61
48,053.58
6,170.08
July
44,675.35
3,936.21
48,611.56
6,241.72
August
41,795.44
14,274.67
56,070.11
7,199.40
September
41,795.44
6,157.09
47,952.53
6,157.10
October
41,539.40
5,913.13
47,452.53
6,092.90
November
40,492.01
5,965.07
46,457.08
5,965.09
December
26,597.20
3,918.17
30,515.37
3,918.17
Total
406,176.48
60,429.27
466,605.75
59,912.18
Base Rents
excluding
Leasehold Tax
equals Office
Rents
Renton City Hall
Leasehold Tax
Expensed,per
Monthly
Management
Report
(C)
(D)
(A) + (B),
Revenues used
(C) x 12.84%,
to calculated
Leasehold Tax
Leasehold Tax
@ 12.84%
January
25,297.23
5,392.55
30,689.78
3,940.57
February
25,297.43
2,260.19
27,557.62
3,538.40
March
25,297.43
2,260.19
27,557.62
3,538.40
April
25,297.43
3,608.39
28,905.82
3,711.51
May
25,297.43
-
25,297.43
3,248.19
June
25,297.43
6,743.61
32,041.04
4,114.07
July
25,297.43
3,936.21
29,233.64
3,753.60
August
25,297.43
14,274.67
39,572.10
5,081.06
September
25,297.43
6,157.09
31,454.52
4,038.76
October
25,297.43
5,913.13
31,210.56
4,007.44
November
25,297.43
5,965.07
31,262.50
4,014.11
December
25,297.43
3,918.17
29,215.60
3,751.28
Total
303,568.96
60,429.27
363,998.23
46,737.37
Attachment #2 - RCW 82.29A.030
As used in this chapter the following terms shall be defined as follows, unless the
context otherwise requires:
(1) "Leasehold interest' shall mean an interest in publicly owned real or
personal property which exists by virtue of any lease, permit, license, or any
other agreement, written or verbal, between the public owner of the property and
a person who would not be exempt from property taxes if that person owned the
property in fee, granting possession and use, to a degree less than fee simple
ownership: PROVIDED, That no interest in personal property (excluding land or
buildings) which is owned by the United States, whether or not as trustee, or by
any foreign government shall constitute a leasehold interest hereunder when the
right to use such property is granted pursuant to a contract solely for the
manufacture or production of articles for sale to the United States or any foreign
government. The term "leasehold interest' shall include the rights of use or
occupancy by others of property which is owned in fee or held in trust by a public
corporation, commission, or authority created under RCW 35 21 - } or
if the property is listed on or is within a district listed on any federal or
state register of historical sites. The term "leasehold interest' shall not include
road or utility easements, rights of access, occupancy, or use granted solely for
the purpose of removing materials or products purchased from a public owner or
the lessee of a public owner, or rights of access, occupancy, or use granted
solely for the purpose of natural energy resource exploration.
(2) "Taxable rent' shall mean contract rent as defined in subsection (a) of this
subsection in all cases where the lease or agreement has been established or
renegotiated through competitive bidding, or negotiated or renegotiated in
accordance with statutory requirements regarding the rent payable, or negotiated
or renegotiated under circumstances, established by public record, clearly
showing that the contract rent was the maximum attainable by the lessor:
PROVIDED, That after January 1, 1986, with respect to any lease which has
been in effect for ten years or more without renegotiation, taxable rent may be
established by procedures set forth in subsection (b) of this subsection. All other
leasehold interests shall be subject to the determination of taxable rent under the
terms of subsection (b) of this subsection.
For purposes of determining leasehold excise tax on any lands on the
Hanford reservation subleased to a private or public entity by the department of
ecology, taxable rent shall include only the annual cash rental payment made by
such entity to the department of ecology as specifically referred to as rent in the
sublease agreement between the parties and shall not include any other fees,
assessments, or charges imposed on or collected by such entity irrespective of
whether the private or public entity pays or collects such other fees,
assessments, or charges as specified in the sublease agreement.
(a) "Contract rent" shall mean the amount of consideration due as payment for
a leasehold interest, including: The total of cash payments made to the lessor or
to another party for the benefit of the lessor according to the requirements of the
lease or agreement, including any rents paid by a sublessee; expenditures for
the protection of the lessor's interest when required by the terms of the lease or
agreement; and expenditures for improvements to the property to the extent that
such improvements become the property of the lessor. Where the consideration
conveyed for the leasehold interest is made in combination with payment for
concession or other rights granted by the lessor, only that portion of such
payment which represents consideration for the leasehold interest shall be part of
contract rent.
"Contract rent" shall not include: (i) Expenditures made by the lessee, which
under the terms of the lease or agreement, are to be reimbursed by the lessor to
the lessee or expenditures for improvements and protection made pursuant to a
lease or an agreement which requires that the use of the improved property be
open to the general public and that no profit will inure to the lessee from the
lease; (ii) expenditures made by the lessee for the replacement or repair of
facilities due to fire or other casualty including payments for insurance to provide
reimbursement for losses or payments to a public or private entity for protection
of such property from damage or loss or for alterations or additions made
necessary by an action of government taken after the date of the execution of the
lease or agreement; (iii) improvements added to publicly owned property by a
sublessee under an agreement executed prior to January 1, 1976, which have
been taxed as personal property of the sublessee prior to January 1, 1976, or
improvements made by a sublessee of the same lessee under a similar
agreement executed prior to January 1, 1976, and such improvements shall be
taxable to the sublessee as personal property; (iv) improvements added to
publicly owned property if such improvements are being taxed as personal
property to any person.
Any prepaid contract rent shall be considered to have been paid in the year
due and not in the year actually paid with respect to prepayment for a period of
more than one year. Expenditures for improvements with a useful life of more
than one year which are included as part of contract rent shall be treated as
prepaid contract rent and prorated over the useful life of the improvement or the
remaining term of the lease or agreement if the useful life is in excess of the
remaining term of the lease or agreement. Rent prepaid prior to January 1, 1976,
shall be prorated from the date of prepayment.
With respect to a "product lease", the value shall be that value determined at
the time of sale under terms of the lease.
(b) If it shall be determined by the department of revenue, upon examination
of a lessee's accounts or those of a lessor of publicly owned property, that a
lessee is occupying or using publicly owned property in such a manner as to
2
create a leasehold interest and that such leasehold interest has not been
established through competitive bidding, or negotiated in accordance with
statutory requirements regarding the rent payable, or negotiated under
circumstances, established by public record, clearly showing that the contract
rent was the maximum attainable by the lessor, the department may establish a
taxable rent computation for use in determining the tax payable under authority
granted in this chapter based upon the following criteria: (i) Consideration shall
be given to rental being paid to other lessors by lessees of similar property for
similar purposes over similar periods of time; (ii) consideration shall be given to
what would be considered a fair rate of return on the market value of the property
leased less reasonable deductions for any restrictions on use, special operating
requirements or provisions for concurrent use by the lessor, another person or
the general public.
(3) "Product lease" as used in this chapter shall mean a lease of property for
use in the production of agricultural or marine products to the extent that such
lease provides for the contract rent to be paid by the delivery of a stated
percentage of the production of such agricultural or marine products to the credit
of the lessor or the payment to the lessor of a stated percentage of the proceeds
from the sale of such products.
(4) "Renegotiated" means a change in the lease agreement which changes
the agreed time of possession, restrictions on use, the rate of the cash rental or
of any other consideration payable by the lessee to or for the benefit of the
lessor, other than any such change required by the terms of the lease or
agreement. In addition "renegotiated" shall mean a continuation of possession by
the lessee beyond the date when, under the terms of the lease agreement, the
lessee had the right to vacate the premises without any further liability to the
lessor.
(5) "City" means any city or town.
(6) "Products" includes natural resource products such as cut or picked
evergreen foliage, Cascara bark, wild edible mushrooms, native ornamental trees
and shrubs, ore and minerals, natural gas, geothermal water and steam, and
forage removed through the grazing of livestock.
[1999 c 220 § 2; 1991 c 272 § 23; 1986 c 285 § 1; 1979 ex.s. c 196 § 11; 1975-76 2nd ex.s. c 61
§ 2.)
NOTES:
Effective dates -- 1991 c 272: See RCW 81.108.901.
Effective date -- 1979 ex.s. c 196: See note following RCW 82.04.240.
CITY OF RENTON COUNCIL AGENDA BILL
Al #: ^ ,
Submitting Data:
For Agenda of. 03/15/2004
Dept/Div/Board.. PBPW/Utility Systems
Agenda Status
Staff Contact...... Abdoul Gafour (X-7210)
Consent .............. X
Public Hearing..
Subject:
Funding Proposal for Water Main Improvements for
Correspondence..
Harrington Square Development in Renton Highlands
Ordinance .............
Resolution............
Old Business........
New Business.......
Exhibits:
Issue Paper
Study Sessions......
Information.........
Recommended Action:
Refer to Utilities Committee
Approvals:
Legal Dept....
Finance Dept.
Other ...............
Fiscal Impact:
Expenditure Required... $900,000 (estimated) Transfer/Amendment.......
Amount Budgeted....... $400,000 Water Utility Revenue Generated.........
$100,000 EDNSP
$400,000 Developer
Total Project Budget $900,000 City Share Total Project.. $500,000
SUMMARY OF ACTION:
The Water Utility has developed a funding proposal to finance the construction of major water
main improvements in the Highlands Redevelopment area. The Water Utility has budgeted
$400,000 in the 2004 CIP for this work. EDNSP has agreed to contribute $100,000 from the
Highlands Redevelopment Fund and the developer of Harrington Square will contribute
$400,000. The City will carry a special assessment district for this water main for reimbursement
of City funds as development occurs.
STAFF RECOMMENDATION:
Staff recommends that Council approve this funding proposal and authorize staff to proceed with
development of the special assessment district.
I1AFile Sys\WTR - Drinking Watcr Utility\WTR-01 - General\harrington-square-agenda-bill.doc/AG\tb
CITY OF RENTON
PLANNINGBUILDING/PUBLIC WORKS
MEMORANDUM
DATE: March 5, 2004
TO: Don Persson, Council President
Members of the Renton City Council
VIA: pMayor Kathy Keolker-Wheeler
FROM: Gregg Zimmermh�ol, %dministrator
STAFF CONTACT: Abdoul Gafour, x 7210
SUBJECT: Request for Funding for Water Main Improvements for
Harrington Square Development in Renton Highlands
ISSUE:
The Water Utility has developed a funding proposal to finance the construction of major water
main improvements in the Highlands Redevelopment area. The Water Utility has budgeted
$400,000 in the 2004 CIP for this work. EDNSP has agreed to contribute $100,000 from the
Highlands Redevelopment Fund and the developer of Harrington Square will contribute
$400,000. The City will carry a special assessment district for this water main for
reimbursement of City funds as development occurs.
RECOMMENDATION:
Staff recommends that Council approve this funding proposal and authorize staff to
proceed with development of the special assessment district.
BACKGROUND SUMMARY:
The City of Renton has received interest from Harrington Square Development to build a
mixed -used development in Renton Highlands consisting of 210 multi -family dwelling units,
3,000 square -feet of retail spaces and 313 structured parking stalls. The project is located at
950 Harrington Avenue NE. The development requires a bigger water demand and higher
water pressure to provide for fire protection and domestic service. Larger water mains from a
higher -pressure zone are needed to meet these demands.
March 5, 2004
Page 2
Typically, the City would require the developer to pay for the installation of all utilities
required by City code for their project. The City's business plan identifies infrastructure
improvements as a means to promote economic development and neighborhood revitalization
in the Highlands area. City land -use policies support public investments in infrastructure
improvements to encourage redevelopment, which creates opportunities for household growth.
Therefore, an equitable cost sharing between the City and Harrington Square Development to
pay for the water main improvements in the Highlands would be consistent with City's
business plan and policies.
The Water Utility is currently designing the water main improvements and anticipates bidding
the project for construction in August 2004, with construction occurring from September to
December 2004. The estimated total cost for the project, including design, construction and
contract administration, is $900,000.
The Water Utility has budgeted $400,000 for partial funding for this project from our 2004
Capital Improvement Project Budget for water main rehabilitation. It is anticipated that
Harrington Square Development will contribute $400,000 for the improvements.
We request Council's approval to fund the remaining $100,000 through the City's
Economic Development budget for Highlands Redevelopment.
The Water Utility will hold a special assessment district to recuperate the City's share of
the project, estimated at $500,000. The assessment will be collected from other properties
within the Highlands Redevelopment area that gain benefit from the water main
improvements, at such time those properties develop or redevelop. The first $100,000 of
collected assessment will be used to repay the City's Highland Redevelopment Fund.
CONCLUSION:
The proposed water main improvements are required for Harrington Square Development to
construct their project. The joint funding for the improvements between the City and
Harrington Square Development is consistent with the City's business plan and policies to
encourage redevelopment in the Highlands by investing in infrastructure improvements.
This project will be jointly funded through the City's Water Utility ($400,000), the City's
Highlands Redevelopment Fund ($100,000), and Harrington Square Development ($400,000).
The Water Utility will report back to Council after we receive the payment of $400,000 from
Harrington Square Development and after we receive the low bid for the construction of the
project. The construction contract will not be advertised for bids until we receive payment
from Harrington Square.
H:\File Sys\WTR - Drinking Water Utility\WTR-01 - General\harrington-square-issue-paper.doc/AG/tb
CITY OF KF'NTON ('OUN('II. M &NDA BILL
Snbrnitting I)ata: Planning/13ulldmg/PubliC Works
I)cpH)ivrBoard ,. PBPW/Utility Systems/Surface Water
StaffContact ...... Ron Straka (X-7248). Chris Munter (X-7205)
Suhject:
Consultant Agreement to Implement the 2004 Monitoring
Plan for the Cedar River Section 205 Flood Damage
Reduction Project
Fxhibits
Issue Paper
Agreement
rA I is : — — ` L, ----�
For Agenda ol:
03/15/2004
Agenda Status
('onscm._.. ..... X
Public Hearing...
('orrespondcrrce .
Ordinance..___.. _.
Resolution_
( Id Business ........
Ncw Business_ ..
--
study sessions.. ..
Information— _....
Recornrncnded Action: Approvals:
Councl l concur Legal Ucpt..... _ . X
Finance I)cpt. .. X
( )thcr . .
Fiscal Impact
F:xpcnditurc Required...
$ 1 03,823.94 1 ransfcr/Amcndrncn1... ...
Amount Budgeted.........
$ 1 03,823.94 Revenue Gcnudted.
II otal Project Budgct
$2 75,000 ON sharc'I otal Proicct..
SIJMMARY OF ACTION:
As part of the necessary permit conditions for the Cedar River Section 205 Flood Damage Reduction
Project, the City and USACF, developed a detailed biological and physical monitoring plan.
Implementation ofthe plan, which is also a permit condition, will afford field verification of predicted
project impacts and mitigation benefits on key species (i.e. sockeye and Chinook salmon, longlin smelt,
etc.). The City is responsible to ensure that the plan is successfully implemented each year until
completion. The 2004 monitoring work includes surveys of adult spawning in the lower Cedar River and
constructed spawning channels, vegetation surveys, fry production in the I?lliot spawning channel, and
physical surveys at the Landsburg Gravel Supplementation mitigation site. The Surface Water Utility
requests approval for a consultant agreement with Golder Associates to implement the 2004 Monitoring
Plan for the Cedar River Section 205 Flood Damage Reduction Project.
STAFF RF('OMMFNDA'1'ION:
The Surface Water Utility recommends Council authorize the Mayor and City Clerk to execute this
agreement with Golder Associates, Inc., in the amount of $103,824 to assist with implementation of the
aforementioned monitoring plan. Project funding ($275,000) is appropriated in the Lower Cedar River
Sediment Management Program account in the approved 2004 Surface Water Utility Capital
Improvement Program budget 421.000600.018.5960.0038.65.065095. Golder Associates, Inc., is
included on the 2004 I Jtilily Systems Annual Consultant Roster and, in addition, conducted the required
monitoring as part of the 2000, 2001, 2002, and 2003 plans.
II Tdc Sys\SWP - Surface Water Projects1SWP-27 - Surface Water Projects (('ll')\27-2817 Cedar River Section 205 ProjectA10.0 -
Monitorinrg\10.01 - Scope of Work\(ioleleg('ontractlnf'o2004\2004GoklcrAgendaBilLdocARJS\('UPI\tb
CITY OF RENTON
PLANNING/BUILDING/PUBLIC WORKS
MEMORANDUM
DATE: March 4, 2004
TO: Don Persson, Council President
Members of Renton City Council
VIA: Mayor Kathy Keolker-Wheeler
FROM: Gregg Zimmermarl✓Aministrator
Planning/Building/Public Works Department
STAFF CONTACT: Ron Straka (X-7248)
Chris Munter (X-7205)
Surface Water Utility Division
SUBJECT: ENGINEERING CONSULTANT AGREEMENT FOR
2004 CEDAR RIVER MONITORING PLAN
ISSUE:
The Surface Water Utility is required to implement the 2004 Monitoring Plan for the
USACE Cedar River Section 205 Flood Damage Reduction project per the Hydraulic
Project Approval issued by the Washington Department of Fish and Wildlife.
RECOMMENDATION:
The Surface Water Utility recommends Council authorize the Mayor and City Clerk to
execute this agreement with Golder Associates, Inc., in the amount of $103,824 to assist
with implementation of the aforementioned monitoring plan. Project funding ($275,000)
is appropriated in the Lower Cedar River Sediment Management Program account in the
approved 2004 Surface Water Utility Capital Improvement Program budget
421.000600.018.5960.0038.65.065095. Golder Associates, Inc., is included on the 2004
Utility Systems Annual Consultant Roster and, in addition, conducted the required
monitoring as part of the 2000, 2001, 2002, and 2003 plans.
BACKGROUND SUMMARY:
As part of the permit conditions associated with the USACE Cedar River Section 205
Flood Damage Reduction Project, the City and USACE developed a detailed post -
construction monitoring plan. Implementation of the plan, which is also a permit
March 4, 2004
Page 2
condition, will afford field verification of predicted project impacts and mitigation
benefits on key species (i.e. sockeye and Chinook salmon, longfin smelt, etc.). The City
is responsible to ensure that the plan is successfully implemented on an annual basis.
The overall monitoring plan (associated with the 1998 dredging and related mitigation
projects) consists of ten activities as shown in Table 1. Currently, five of the ten
activities have been completed. Please note that maintenance activities, such as annual
cross section surveys in the lower Cedar River, are not included in this summary. It is
also important to note that extension of certain monitoring activities (i.e. spawner surveys
in lower river and side -channels) beyond the permit condition is recommended. The
additional spawner surveys will be very useful to determine the actual long-term impacts
of dredging on target species and the overall benefits of the mitigation elements, which
may help to prevent the need for future mitigation.
A list and brief description of the monitoring activities included in the 2004 Monitoring
Plan are shown in Table 2. The scope of work, cost estimate, and schedule for the 2004
Monitoring Plan is also attached.
CONCLUSION:
The Surface Water Utility recommends approval of the consultant agreement with Golder
Associates to implement the 2004 Monitoring Plan for the Cedar River Section 205 Flood
Damage Reduction Project. The Surface Water Utility has funding sufficient to support
implementation of the 2004 Monitoring Plan in the 2004 Capital Improvement Program
budget.
TABLE 1
2004 MONITORING PLAN ACTIVITIES - STATUS
Monitoring
Activity
Description
Actual
Start Date
Estimated
or Actual
End Date
Completed?
1
Vegetation
1998
2005
No
2
Bird Use
1999
2000
Yes
3
Salmonid Use of Maplewood
Revetment
1999
2000
Yes
4
Proposed Side -Channel
1998
2004
No
5
Cedar River Spawning
1998
2002
No
6
Salmonid Predation
1999
2000
Yes
7
Longfin Smelt
1999
2002
Yes
8
Scour Chains
1998
2000
Yes
9
Landsburg Gravel Supplementation
2000
2010
No
10
Elliot -Side Channel
2000
2003
No
I1AFile Sys\SWP -Surface Water Projects\SWP-27 -Surface Water Projects (CIP)\27-2817 Cedar River Section 205 Project\I0.0 -
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March 4, 2004
Page 3
TABLE 2
2004 MONITORING ACTIVITIES - TASKS AND OBJECTIVES
Monitoring
Description
Task and Objective
Activity
(Per Table 1)
1
Vegetation
Monitor installed riparian vegetation along river and at
mitigation sites to determine if the goals have been met.
4
Proposed Side-
Monitor spawning activity and rearing activity within the
Channel
proposed side -channel (that will replace the 205
Groundwater Channel) to determine if spawning goals have
been met and salmonids other than sockeye are utilizing the
channel.
5
Cedar River
Monitor the number of sockeye and redds (i.e. egg nests) in
Spawning
Cedar River between Lake Washington and I-405 to
determine if lower river escapement goal has been met.
9
Landsburg
Monitor river channel below Landsburg bridge to determine
Physical Surveys
if supplanted spawning ravel was transported downstream.
10
Elliot Side-
Monitor spawning activity and rearing activity within the
Channel Rearing
proposed side -channel (that will replace the 205
Groundwater Channel) to determine if spawning goals have
been met and salmonids other than sockeye are utilizing the
channel.
13:\Pile Sys\SWP - Surface Water Projects\SWP-27 - Surface Water Projects (CIP)\27-2817 Cedar River Section 205 Project\I0.0 -
Monitoring\10.01 -Scope of Work\GolderContractInfo2004\2004GolderlssuePaper.doc\RJS\CDM\tb
ENGINEERING
ANNUAL CONSULTANT AGREEMENT
THIS AGRf,'FMENT, made and entered into on this _ __ , day of _ _ _, 2004, by and between the CITY
OF RENTON, WASHINGTON, A MUNICIPAL CORPORATION HEREINAFTER CALLED THE "CITY," and
Golder Associates, Inc. whose address is 18300 NE Union Hill Rd, Ste 200, Redmond, WA 98052, at which work
will be available for inspection, hereinafter called the "CONSULTANT."
PROJECT NAME: 2004 Cedar River Section 205 Project Monitoring
WHEREAS, the City has not sufficient qualified engineering employees to provide the engineering within a
reasonable time and the City deems it advisable and is desirous of engaging the professional services and assistance
of a qualified professional consulting firm to do the necessary engineering work for the project, and
WHEREAS, the Consultant has represented and by entering into this Agreement now represents, that it is in full
compliance with the statutes of the State of Washington for registration of professional engineers, has a current valid
corporate certificate from the State of Washington or has a valid assumed name filing with the Secretary of State and
that all personnel to be assigned to the work required under this Agreement are fully qualified to perform the work to
which they will be assigned in a competent and professional manner, and that sufficient qualified personnel are on
staff or readily available to Consultant to staff this Agreement.
WHEREAS, the Consultant has indicated that it desires to do the work set forth in the Agreement upon the terms
and conditions set forth below.
NOW THEREFORE, in consideration of the terms, conditions, covenants and performances contained herein below,
the parties hereto agree as follows:
I
SCOPE OF WORK
The Consultant shall furnish, and hereby warrants that it has, the necessary equipment, materials, and professionally
trained and experienced personnel to facilitate completion of the work described in Exhibit A, Scope of Work,
which is attached hereto and incorporated into this Agreement as though fully set forth herein.
The Consultant shall perform all work described in this Agreement in accordance with the latest edition and
amendments to local and state regulations, guidelines and policies.
The Consultant shall prepare such information and studies as it may deem pertinent and necessary, in order to pass
judgment in a sound engineering manner on the features of the work. The Consultant shall make such minor
changes, amendments or revisions in the detail of the work as may be required by the City. This item does not
constitute an 'Extra Work" item as related in Section VIII of the Agreement.
The work shall be verified for accuracy by a complete check by the Consultant. The Consultant will be held
responsible for the accuracy of the work, even though the work has been accepted by the City.
H
DESIGN CRITERIA
The City will designate the basic premises and criteria for the work needed. Reports and plans, to the extent
feasible, shall be developed in accordance with the latest edition and amendments of local and State regulations,
guidelines, and specifications, including, but not limited to the following:
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Washington State Department of Transportation/American Public Works Association (WSDOT/APWA),
"Standard Specifications for Road, Bridge, and Municipal Construction," as amended by Renton
Standard Specification.
WSDOT/APWA, "Standard Plans for Road, Bridge and Municipal Construction."
Washington State Department of Transportation, "Highway Design Manual."
4. American Association of State Highway and Transportation Officials, "Standard Specifications for
Highway Bridges."
5. Washington State Department of Transportation, 'Bridge Design Manual, Volumes 1 and 2."
6. Washington State Department of Transportation, "Manual of Highways Hydraulics," except hydrologic
analysis as described in item 14.
7. Washington State Department of Transportation, "Materials Laboratory Outline."
8. Transportation Research Board, "Highway Capacity Manual."
9. U.S. Department of Transportation, Federal Highway Administration, "Manual on Uniform Traffic
Control Devices for Streets and Highways."
10. Washington State Department of Transportation, "Construction Manual."
11. Washington State Department of Transportation, "Local Agency Guidelines."
12. Standard drawings prepared by the City and furnished to the Consultant shall be used as a guide in all
cases where they fit design conditions. Renton Design Standards, and Renton Specifications shall be
used as they pertain.
13. Metro Transit, design criteria.
14. King County Surface Water Design Manual, Sections 1.2 and 1.3 of Chapter 1, and Chapters 3, 4,
and 5.
15. American Association of State Highway and Transportation Officials, "A Policy on Geometric Design of
Highways and Streets."
III
ITEMS TO BE FURNISHED TO THE CONSULTANT
BY THE CITY
The City will furnish the Consultant copies of documents which are available to the City that will facilitate the
preparation of the plans, studies, specifications, and estimates within the limits of the assigned work.
All other records needed for the study must be obtained by the Consultant. The Consultant will coordinate with
other available sources to obtain data or records available to those agencies. The Consultant shall be responsible for
this and any other data collection to the extent provided for in the Scope of Work. City will provide to Consultant
all data in City's possession relating to Consultants services on the project. Consultant will reasonably rely upon the
accuracy, timeliness, and completeness of the information provided by the City. Should field studies be needed, the
Consultant will perform such work to the extent provided for in the Scope of Work. The City will not be obligated
to perform any such field studies.
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IV
OWNERSHIP OF PRODUCTS AND
DOCUMENTS TO BE FURNISHED BY THE CONSULTANT
Documents, exhibits or other presentations for the work covered by this Agreement shall be furnished by the
Consultant to the City upon completion of the various phases of the work. All such material, including working
documents, notes, maps, drawings, photo, photographic negatives, etc. used in the project, shall become and remain
the property of the City and may be used by it without restriction. Any use of such documents by the City not
directly related to the project pursuant to which the documents were prepared by the Consultant shall be without any
liability whatsoever to the Consultant.
All written documents and products shall be printed on recycled paper when practicable. Use of the chasing -arrow
symbol identifying the recycled content of the paper shall be used whenever practicable. All documents will be
printed on both sides of the recycled paper, as feasible.
V
TIME OF BEGINNING AND COMPLETION
The work detailed in the Scope of Work will be performed according to Exhibit B, Time Schedule of Completion,
attached hereto and incorporated herein as though fully set forth. It is agreed that all the Consultant's services are to
be completed and all products shall be delivered by the Consultant unless there are delays due to factors that are
beyond the control of the Consultant. The Consultant shall not begin work under the terms of this Agreement until
authorized in writing by the City. If, after receiving Notice to Proceed, the Consultant is delayed in the performance
of its services by factors that are beyond its control, the Consultant shall notify the City of the delay and shall
prepare a revised estimate of the time and cost needed to complete the Project and submit the revision to the City for
its approval. Time schedules are subject to mutual agreement for any revision unless specifically described as
otherwise herein.
Delays attributable to or caused by one of the parties hereto amounting to 30 days or more affecting the completion
of the work may be considered a cause for renegotiation or termination of this Agreement by the other party.
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VI
PAYMENT
The Consultant shall be paid by the City for completed work for services rendered under this Agreement as provided
hereinafter as specified in Exhibit C, Cost Estimate. Such payment shall be full compensation for work performed
or services rendered and for all labor, materials, supplies, equipment, and incidentals necessary to complete the
work. All billings for compensation for work performed under this Agreement will list actual time (days and/or
hours) and dates during which the work was performed and the compensation shall be figured using the rates in
Exhibit C. Payment for this work shall not exceed $ 103,823.94 without a written amendment to this contract,
agreed to and signed by both parties.
Cost Plus Net Fee
Payment for work accomplished shall be on the basis of the Consultant's actual cost plus a net fee. The actual cost
includes direct salary cost, overhead, and direct non -salary cost.
The direct salary cost is the salary expense for professional and technical personnel and principals for the
time they are productively engaged in the work necessary to fulfill the terms of this Agreement. The
direct salary costs are set forth in the attached Exhibit C and by this reference made a part of this
Agreement.
2. The overhead costs as identified on Exhibit C are determined as 164.94 percent of the direct salary cost
and by this reference made a part of this Agreement. The overhead cost rate is an estimate based on
currently available accounting information and shall be used for all progress payments over the period of
the contract.
3. The direct non -salary costs are those costs directly incurred in fulfilling the terms of this Agreement,
including, but not limited to travel, reproduction, telephone, supplies, and fees of outside consultants.
The direct non -salary costs are specified in Exhibit C, Cost Estimate. Billings for any direct non -salary
costs shall be supported by copies of original bills or invoices. Reimbursement for outside consultants
and services shall be on the basis of times the invoiced amount.
4. The net fee, which represents the Consultants profit shall be 12 percent of direct salary plus overhead
costs. This fee is based on the Scope of Work and the estimated labor hours therein. In the event a
supplemental agreement is entered into for additional work by the Consultant, the supplemental
agreement will include provision for the added costs and an appropriate additional fee. The net fee will
be prorated and paid monthly in proportion to the percentage of the project completed as estimated in the
Consultant's monthly progress reports and approved by the City. Any portion of the net fee not
previously paid in the monthly payments shall be included in the final payment, subject to the provisions
of Section XI entitled TERMINATION OF AGREEMENT.
5. Progress payments may be claimed monthly for direct costs actually incurred to date as supported by
detailed statements, for overhead costs and for a proportionate amount of the net fee payable to the
Consultant based on the estimated percentage of the completion of the services to date. Final payment of
any balance due the Consultant of the gross amount earned will be made promptly upon its verification
by the City after completion and acceptance by the City of the work under this Agreement. Acceptance,
by the Consultant of final payment shall constitute full and final satisfaction of all amounts due or
claimed to be due.
Payment for extra work performed under this Agreement shall be paid as agreed to by the parties hereto in writing at
the time extra work is authorized. (Section VIII "EXTRA WORK").
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A short narrative progress report shall accompany each voucher for progress payment. The report shall include
discussion of any problems and potential causes for delay.
To provide a means of verifying the invoiced salary costs for consultant employees, the City may conduct employee
interviews.
Acceptance of such final payment by the Consultant shall constitute a release of all claims of any nature, related to
this Agreement, which the Consultant may have against the City unless such claims are specifically reserved in
writing and transmitted to the City by the Consultant prior to its acceptance. Said final payment shall not, however,
be a bar to any claims that the City may have against the Consultant or to any remedies the City may pursue with
respect to such claims.
The Consultant and its subconsultants shall keep available for inspection, by the City, for a period of three years
after final payment, the cost records and accounts pertaining to this Agreement and all items related to, or bearing
upon, these records. If any litigation, claim or audit is started before the expiration of the three-year retention
period, the records shall be retained until all litigation, claims or audit findings involving the records have been
resolved. The three-year retention period starts when the Consultant receives final payment.
VII
CHANGES IN WORK
The Consultant shall make all such revisions and changes in the completed work of this Agreement as are necessary
to correct errors appearing therein, when required to do so by the City, without additional compensation.
Should the City find it desirable for its own purposes to have previously satisfactorily completed work or parts
thereof revised, the Consultant shall make such revisions, if requested and as directed by the City in writing. This
work shall be considered as Extra Work and will be paid for as provided in Section VIII.
VIII
EXTRA WORK
The City may desire to have the Consultant perform work or render services in connection with the Project in
addition to or other than work provided for by the expressed intent of the Scope of Work. Such work will be
considered as Extra Work and will be specified in a written supplement which will set forth the nature and scope
thereof. Work under a supplement shall not proceed until authorized in writing by the City. Any dispute as to
whether work is Extra Work or work already covered under this Agreement shall be resolved before the work is
undertaken. Performance of the work by the Consultant prior to resolution of any such dispute shall waive any claim
by the Consultant for compensation as Extra Work.
IX
EMPLOYMENT
The Consultant warrants that it has not employed or retained any company or person, other than a bona fide
employee working solely for the Consultant, to solicit or secure this contract and that he has not paid or agreed to
pay any company or person, other than a bona fide employee working solely for the Consultant, any fee,
commission, percentage, brokerage fee, gifts or any other consideration, contingent upon or resulting from the award
or making of this contract. For breach or violation of this warranty, the City shall have the right to annul this
Agreement without liability, or in its discretion to deduct from the Agreement price or consideration or otherwise
recover, the full amount of such fee, commission, percentage, brokerage fee, gift or contingent fee.
Any and all employees of the Consultant, while engaged in the performance of any work or services required by the
Consultant under this Agreement, shall be considered employees of the Consultant only and not of the City and any
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and all claims that may or might arise under the Workman's Compensation Act on behalf of said employees, while so
engaged and any and all claims made by a third party as a consequence of any negligent act or omission on the part
of the Consultant's employees, while so engaged on any of the work or services provided to be rendered herein, shall
be the sole obligation and responsibility of the Consultant.
The Consultant shall not engage, on a full or part-time basis, or other basis, during the period of the contract, any
professional or technical personnel who are, or have been at any time during the period of this contract, in the
employ of the City except regularly retired employees, without written consent of the City.
If during the time period of this Agreement, the Consultant finds it necessary to increase its professional, technical,
or clerical staff as a result of this work, the Consultant will actively solicit minorities through their advertisement
and interview process.
X
NONDISCRIMINATION
The Consultant agrees not to discriminate against any client, employee or applicant for employment or for services
because of race, creed, color, national origin, marital status, sex, age or handicap except for a bona fide occupational
qualification with regard to, but not limited to the following: employment upgrading; demotion or transfer;
recruitment or any recruitment advertising; layoff or termination's; rates of pay or other forms of compensation;
selection for training; rendition of services. The Consultant understands and agrees that if it violates this Non -
Discrimination provision, this Agreement may be terminated by the City and further that the Consultant shall be
barred from performing any services for the City now or in the future, unless a showing is made satisfactory to the
City that discriminatory practices have terminated and that recurrence of such action is unlikely.
XI
TERMINATION OF AGREEMENT
A. The City reserves the right to terminate this Agreement at any time upon not less than ten (10) days
written notice to the Consultant, subject to the City's obligation to pay Consultant in accordance with
subparagraphs C and D below.
B. In the event of the death of a member, partner or officer of the Consultant, or any of its supervisory
personnel assigned to the project, the surviving members of the Consultant hereby agree to complete the
work under the terms of this Agreement, if requested to do so by the City. This section shall not be a bar
to renegotiations of this Agreement between surviving members of the Consultant and the City, if the
City so chooses.
In the event of the death of any of the parties listed in the previous paragraph, should the surviving
members of the Consultant, with the City's concurrence, desire to terminate this Agreement, payment
shall be made as set forth in Subsection C of this section.
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In the event this Agreement is terminated by the City other than for fault on the part of the Consultant, a
final payment shall be made to the Consultant for actual cost for the work complete at the time of
termination of the Agreement, plus the following described portion of the net fee. The portion of the net
fee for which the Consultant shall be paid shall be the same ratio to the total net fee as the work complete
is to the total work required by the Agreement. In addition, the Consultant shall be paid on the same
basis as above for any authorized extra work completed. No payment shall be made for any work
completed after ten (10) days following receipt by the Consultant of the Notice to Terminate. if the
accumulated payment made to the Consultant prior to Notice of 'Termination exceeds the total amount
that would be due as set forth herein above, then no final payment shall be due and the Consultant shall
immediately reimburse the City for any excess paid.
D. In the event the services of the Consultant are terminated by the City for fault on the part of the
Consultant, the above stated formula for payment shall not apply. In such an event the amount to be paid
shall be determined by the City with consideration given to the actual costs incurred by the Consultant in
performing the work to the date of termination, the amount of work originally required which was
satisfactorily completed to date of termination, whether that work is in a form or of a type which is
usable to the City at the time of termination, the cost to the City of employing another firm to complete
the work required and the time which may be required to do so, and other factors which affect the value
to the City of the work performed at the time of termination. Under no circumstances shall payment
made under this subsection exceed the amount which would have been made if the formula set forth in
subsection C above had been applied.
E. In the event this Agreement is terminated prior to completion of the work, the original copies of all
Engineering plans, reports and documents prepared by the Consultant prior to termination shall become
the property of the City for its use without restriction. Such unrestricted use not occurring as a part of
this project, shall be without liability or legal exposure to the Consultant.
F. Payment for any part of the work by the City shall not constitute a waiver by the City of any remedies of
any type it may have against the Consultant for any breach of this Agreement by the Consultant, or for
failure of the Consultant to perform work required of it by the City. Forbearance of any rights under the
Agreement will not constitute waiver of entitlement to exercise those rights with respect to any future act
or omission by the Consultant.
XII
DISPUTES
Any dispute concerning questions of facts in connection with work not disposed of by agreement between the
Consultant and the City shall be referred for determination to the Director of Planning/ Building/Public Works or
his/her successors and delegees, whose decision in the matter shall be final and conclusive on the parties to this
Agreement.
In the event that either party is required to institute legal action or proceedings to enforce any of its rights in this
Agreement, both parties agree that any such action shall be brought in the Superior Court of the State of
Washington, situated in King County.
XIII
LEGAL RELATIONS
The Consultant shall comply with all Federal Government, State and local laws and ordinances applicable to the
work to be done under this Agreement. This contract shall be interpreted and construed in accordance with the laws
of Washington.
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The Consultant agrees to indemnify, defend and hold the City and its officers and employees harmless from and
shall process and defend at its own expense all claims, demands or suits at law or equity arising in whole or part
from the Consultant's errors, omissions, or negligent acts under this Agreement provided that nothing herein shall
require the Consultant to indemnify the City against and hold harmless the City from claims, demands or suits based
upon the conduct of the City, its officers or employees and provided further that if the claims or suits are caused by
or result from the concurrent negligence of (a) the Consultant's agents or employees and (b) the City, its agents,
officers and employees, this provision with respect to claims or suits based upon such concurrent negligence shall be
valid and enforceable only to the extent of the Consultant's negligence or the negligence of the Consultant's agents or
employees except as limited below.
The Consultant shall secure general liability, property damage, auto liability, and professional liability coverage in
the amount of $1.0 million, with a General Aggregate in the amount of $2 million, unless waived or reduced by the
City. The Consultant shall submit a completed City of Renton Insurance Information Form, and the Standard Acord
Certification Form prior to the execution of the contract. The City of Renton shall be named as an "additional
insured" on all contracts/projects. The Consultant shall also submit copies of the declarations pages of relevant
insurance policies to the City within 30 days of contract acceptance if requested. The Certification and Declaration
page(s) shall be in a form as approved by the City. If the City's Risk Manager has the Declaration page(s) on file
from a previous contract and no changes in insurance coverage has occurred, only the Certification Form will be
required.
The limits of said insurance shall not, however, limit the liability of Consultant hereunder.
All coverages provided by the Consultant shall be in a form, and underwritten by a company acceptable to the City.
The City will normally require carriers to have minimum A.M. Best rating of A XII. The Consultant shall keep all
required coverages in full force and effect during the life of this project, and a minimum of forty five days' notice
shall be given to the City prior to the cancellation of any policy.
The Consultant shall verify, when submitting first payment invoice and annually thereafter, possession of a current
City of Renton business license while conducting work for the City. The Consultant shall require, and provide
verification upon request, that all subconsultants participating in a City project possess a current City of Renton
business license. The Consultant shall provide, and obtain City approval of, a traffic control plan prior to
conducting work in City right-of-way.
The Consultant's relation to the City shall be at all times as an independent contractor.
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XIV
SUBLETTING OR ASSIGNING OF CONTRACTS
The Consultant shall not sublet or assign any of the work covered by this Agreement without the express consent of
the City.
XV
ENDORSEMENT OF PLANS
The Consultant shall place their certification on all plans, specifications, estimates or any other engineering data
furnished by them in accordance with RCW 18.43.070.
XVI
COMPLETE AGREEMENT
This document and referenced attachments contain all covenants, stipulations, and provisions agreed upon by the
parties. Any supplements to this Agreement will be in writing and executed and will become part of this Agreement.
No agent, or representative of either party has authority to make, and the parties shall not be bound by or be liable
for, any statement, representation, promise, or agreement not set forth herein. No changes, amendments, or
modifications of the terms hereof shall be valid unless reduced to writing and signed by the parties as an amendment
to this Agreement.
The invalidity or unenforceability of any provision in this Agreement shall not affect the other provisions hereof,
and this Agreement shall be construed in all respects as if such invalid or unenforceable provision were omitted.
XVII
EXECUTION AND ACCEPTANCE
This Agreement may be simultaneously executed in several counterparts, each of which shall be deemed to be an
original having identical legal effect. The Consultant does hereby ratify and adopt all statements, representations,
warranties, covenants, and agreements contained in the Request for Qualifications, and the supporting materials
submitted by the Consultant, and does hereby accept the Agreement and agrees to all of the terms and conditions
thereof.
IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the day and year first above
written.
CONSULT
,)Signatu'/pi ate
F(a� C�
typ or print name
bffli
Title
CITY OF RENTON
Kathy Keolker-Wheeler, Mayor Date
ATTEST:
Bonnie I. Walton, City Clerk
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Exhihit A
February 10, 2004
City of Renton
Utility Systems Division -Surface Water
1055 South Grady Way
Renton, Washington 98055
ATTENTION: Christian Munter, P.E., Project Manager,
RE: CEDAR RIVER MONITORING 2004
Dear Mr. Munter:
Our ref: PO4-1089
The following is a scope of work presented by Golder Associates Inc. (Golder) to complete fisheries
monitoring activities during 2004 on the Cedar River, in Renton, Washington. The monitoring is
required to ensure that proposed mitigation actions adequately address any significant environmental
impacts from the USACE Cedar River Section 205 Flood Damage Reduction Project implemented by
the Corp of Engineers and the City of Renton. The following includes a proposed scope of work and
budget to complete the fieldwork and reports for this project.
SCOPE OF WORK
The following is a list of tasks that need to be completed to successfully perform each monitoring
component.
Task 100: Project Management: This task includes tracking project budget and submitting a
"percent task completed" update with each invoice to the City of Renton. It will also
involve periodic discussions with the City of Renton, and other agencies involved in
similar work on the Cedar River.
Task 200: Fry production in Elliot Rearing/Spawning Channel: This task includes use of
fyke nets to assess sockeye fry emergence and outmigration from the side -channel to
determine survival -to -emergence of embryos from fall and winter spawning, and
overall fry production from the side -channel. Fry outmigration will be monitored
two nights per week from March through May. Secondary objectives include
characterization of emergence and outmigration timing, use of side -channels by other
salmonids, and use of side -channel by non-salmonid fishes.
Task 300: Landsburg Physical Surveys: This task's objective is to determine channel changes
after gravel supplementation consistent with previous years' methods. It includes
five cross -sectional river surveys, and five Wolman pebble counts. Task 300 also
includes snorkel surveys to determine if adult steelhead or chinook spawners are in
the area, water quality monitoring associated with gravel placement, and analysis of
gravel samples taken from the source pile to determine if the material meets WDFW
specifications.
City of Renton February 10, 2004
Mr. Christian Munter 2 PO4-1089
Task 400: Vegetation Surveys: This task will include vegetation monitoring to ensure survival
of mitigation planting and to determine if maintenance activities to remove non-
native invasive plants should be undertaken_ The plantings in the Cedar River Trail
Park, the left bank of the lower river adjacent to the airport, Elliot Rearing/Spawning
Side -Channel, the Maplewood Revetment, and the Landsburg ramp will be evaluated
for percent cover, canopy cover, and percent survival. In the lower river, the
plantings will be assessed in 3.33-m (l l-ft) diameter circular plots every 100 m
(330ft). Photos will be taken from the pre -established points to assess the overall
vegetation to ensure plots are representative of the entire area. This task will also
include coordination with groups working with restoration plantings.
Task 500: Lower Cedar River Sockeye Spawning. The objective of spawning surveys is to
determine the location and total number of sockeye and Chinook redds between the
mouth of the Cedar River at Lake Washington and the I-405 Bridge, over the course
of the spawning season. Redds and fish will be counted on surveys conducted
biweekly from mid -September through December (2004) as flow and visibility allow,
and weekly at the peak of spawning activity (maximum 10 days total). This task will
take two biologists one field day for each survey. Redds and fish will be counted by
river reach as previously conducted.
Task 600: Elliot Rearing/Spawning Side -Channel Spawning Surveys.
Surveys will be conducted to determine total number of live fish, and redd location.
Surveys will be conducted biweekly, and weekly at the peak of spawning.
Task 700: Report Preparation.
This task includes the preparation of the final report of all the data collected from
tasks 200 through 600. Each report will be submitted within 60 days following
completion of the last monitoring date for each task. Four reports will be prepared:
1. Results of fry monitoring
2. Results of Landsburg physical surveys
3. Results of vegetation survey, including recommendations.
4. Results of lower main stem and side -channel sockeye spawning
surveys.
ASSUMPTIONS
0 Golder staff will have access to the site for field visits.
ESTIMATED COST
We will complete the scope of work for an estimated fee of $103,823.94. The estimated costs and
timeline to complete the proposed scope of work are detailed and presented in Exhibits B and C. The
contract for this work is also attached. Upon your approval, please sign and return a copy for our
records. Please note that if further research or monitoring is required, Golder will notify the City of
Renton and discuss both scope and budget modifications.
City of Renton
Mr. Christian Munter
February 10, 2004
PO4-1089
We trust the foregoing is satisfactory for your current needs. If you should have any questions or
require additional information, please do not hesitate to call us at (425) 883-0777.
Sincerely,
GOLDER ASSOCIATES INC.
Doug Dunster
Principal
Attachments
DD/PCAp
0108pcl.doc
Paul Conrecode
Project Fisheries Biologist
Februar, _j, 2004
EXHIBIT B
PAGE I OF 2
Cedar River Monitoring Timeline
PO4-1089
Page I of 2
January
February
March
April May June
2004
2004
2004
2004 2004 2004
Task 100
Jak,%0
VINE',
Project Management
aim'
F,
Task 200
N
h,
f
Fry Monitoring
Task 300
Landsburg Physical Surveys
Task 400
Vegetation Surveys
Task 500
Lower River Spawning Surveys
Task 600
Side -Channel Spawning Surveys
Task 700
Report Writing
'TI
2004 timeline. Ldoc
Februai, J, 2004 PO4-1089
Page 2 of 2
EXHIBIT B
PAGE 2 OF 2
Cedar River Monitoring Timeline
July August
September
October
November December
2004 2004
2004
2004
2004 2004
Task 100
g,
Project Management
Task 200
Fry Monitoring
Task 300
0
Landsburg Physical Surveys
Task 400
Vegetation Surveys
Task 500
Lower River Spawning Surveys
Task 600
®r
Side -Channel Spawning Surveys
I
F"
Task 700
Report Writing
2004 timeline. I.doc
Februai, 1, 2004 n04-1089
EXHIBIT C
Cedar River Monitoring 2004
Proposed Budget
Task
Task Description
Project
Cost/Task
Labor
Labor
Subtotal
Travel
Field Equipment
Misc.
Budget
Hours
Overhead
profit
Fax/Phone/Copies
(164.94%)
(12%)
100
Project
110
3,188.80
5,259.61
1,013.81
9,462.22
135.00
0.00
640.00
10,237.22
Management
200
Fry Monitoring
576
12,531.20
20,668,96
3,984.02
37,184.18
1,188.75
2,211.22
280.00
40,864,15
300
Landsburg
180
4,286.40
7,069.99
1,362.77
12,719.16
120.60
990.50
200.00
14,030,26
Physical Surveys
400
Vegetation
96
2,374.00
3,915.68
754.76
7,044.44
142.50
129.95
200.00
7,516.89
Surveys
500
Lower Cedar
160
3,904.00
6,439.26
1,241.19
11,584.45
356.25
445.05
150.00
12,535.75
River Spawner
Surveys
600
Side -Channels
80
2,224.00
3,668.27
707.07
6,599.34
168.75
86.25
140.00
6,994.34
Spawner Surveys
700
Report Writing
122
3,398.80
5,605.98
1,080.57
10,085.35
0.00
0.00
1,560.00
11,645.35
TOTAL
103,823.94
0108pc3.doc
RESOLUTION NO. 3229
CITY OF RENTON
SUMMARY OF FAIR PRACTICES POLICY
ADOPTED BY RESOLUTION NO. 3229
It is the policy of the City of Renton to promote and provide equal treatment and service to all citizens and to
ensure equal employment opportunity to all persons without regard to race, color, national origin, ethnic
background, gender, marital status, religion, age or disability, when the City of Renton can reasonably
accommodate the disability, of employees and applicants for employment and fair, non-discriminatory
treatment to all citizens. All departments of the City of Renton shall adhere to the following guidelines:
(1) EMPLOYMENT PRACTICES - The City of Renton will ensure all employment related
activities included recruitment, selection, promotion, demotion, training, retention and
separation are conducted in a manner which is based on job -related criteria which does not
discriminate against women, minorities and other protected classes. Human resources
decisions will be in accordance with individual performance, staffing requirements, governing
civil service rules, and labor contract agreements.
(2) COOPERATION WITH HUMAN RIGHTS_ ORGANIZATIONS - The City of Renton will
cooperate fully with all organizations and commissions organized to promote fair practices
and equal opportunity in employment.
(3) AFFIRMATIVE ACTION PLAN - The City of Renton Affirmative Action Plan and Equal
Employment Program will be maintained and administered to facilitate equitable
representation with the City work force and to assure equal employment opportunity to all. It
shall be the responsibility of elected officials, the Mayor, the Affirmative Action Officer,
department administrators, managers, supervisors, Contract Compliance Officers and all
employees to carry out the policies, guidelines and corrective measures set forth in the
Affirmative Action Plan and Equal Employment Program.
(4) CONTRACTORS' OBLIGATIONS - Contractors, sub -contractors, consultants and
suppliers conducting business with the City of Renton shall affirm and subscribe to the Fair
Practices and Non-discrimination policies set forth by the law and in the City's Affirmative
Action Plan and Equal Employment Program.
Copies of this policy shall be distributed to all City employees, shall appear in all operational documentation
of the City, including bid calls, and shall be prominently displayed in appropriate city facilities.
CONCURRED IN by the City Council of the City of RENTON, Washington, this 7 tlday of October, 1996.
CITY OF RENTON:
Mayor
,Attest:
City Cler
RENTON CITY COUNCIL:
Council President
C:\Documents and Setting s\sduncan\Local Settings\Temporary Internet Files\OLK8CB\2004GolderContract.doc\ sd 10
Piazza/Data—Center/Forms/City/Contracts
/2000_Consultant.doc bh
TY
AFFIDAVIT OF COMPLIANCE
Golder Associates, Inc. hereby confirms and declares that
It is Golder Associates, Inc. policy to offer equal opportunity to all qualified employees and
applicants for employment without regard to the race, creed, color, sex, national origin, age,
disability or veteran status.
II. Golder Associates, Inc. complies with all applicable federal, state and local laws governing non-
discrimination in employment.
III. When applicable, Golder Associates, Inc. will seek out and negotiate with minority and women
contractors for the award of subcontracts.
Instructions: This document MUST be completed by each contractor, subcontractor, consultant and/or supplier.
Include or attach this document(s) with the contract.
CADocuments and Settings\sduncan\Local Settings\Temporary Internet Files\OLK8CB\2004GolderContract.doc\ sd 11
Piazza/Data—Center/Forms/City/Contracts
/2000_Consultant.doc bh
�-ice goo y
Michael J. Gerspach
33102 East Lake Holm Drive SE
Auburn, WA 98092
USA
Phone 253-833-3904
File A%v. UC.- 0q-G01
Ci T Y OF REENT014
March 2, 2004
City of Renton
City Council
1055 South Grady Way
Renton, WA 98055
PERMISSION TO CONNECT SEWER
Dear Sirs,
I am planning to build 1 (one) single family home on King County Parcel 102305-9347, address
14713 SE I I6th Street. I need your permission to connect sewer to this parcel.
Please send your approval letter to the address above.
Sincerely,
Mic . Gerspach
D
(flme- q-b-ogo.e-)
When recorded return to:
Ila
20040302000862
CUSTOMER OCD 20.00
PAGE001 OF 002
e3/02/2004 12:20
KING COUNTY, UA
Michael Joseph Gerspach
33102 E. Lake Holm Drive S.E.
Auburn, WA 93092
LF298WA-04 QUITCLAIM DEED
THIS QUITCLAIM DEED, executed this 2 6 t h day of February 2004
by firs] party, Grantor, whose post office address is
av: . S
Marjorie Louise Cermak�o 11605 149th Ave Fp�Rento ',1p if3�F
to second party, Grantee, R R p aflose post o Ic address is
Michael Joseph Gerspach 33102 F.Lake Holm Drive c,.E
Auburn, '4A 930Q2
WITNESSETH, That the said first party, for good considerat:,)n and for the sum of
No Dollars & No Cents Dollars($
paid by the said second party, the receipt whereof is hereby acknowledged, does hereby remise, t:lease and quitclaim
unto the said second party forever, all the right, title, interest and claim which the said first party tins in and to the
following described parcel of land, and improvements and appurtenances thereto in the County of K i n n
State of Washington to wit:
Lot 10:,23, 05 Block 9347 Code 6355 Sec, 10 T`4P 23 !A& 05
S 120 FT of N 150 FT of W 100 FT of E 230 FT of F 1/2 of
S 10 AC of N 50 AC of E 1/2 of NE 1/4
Property Address 14713 SE 116th St.
Renton, IHA 93059
P.'t'd o- is z 3 os'-9 3 ?
E2021811
03/02/2004 12:20
S E COUNTY, U2.00
0.80 PAGE001 OF 001
G 1 492-2001 E-7 Legal Forms, Inc. Page I Rev. 03/01
This product does not constitute the rendering of legal advice or services. This product is intended for informational use only and is not a substitute for legal
advice. State laws var,, so consult an attorney on all legal matters. This product was not necessarily prepared by a person licensed to practice law in your state.
It t
Assess.:' Property Tax Parcel/Account Number(s):
TaxID/ParcelID#102305 9347
IN WITNESS WHEREOF, The said first party has signed and sealed these presents the day and year first above
tnre
gned, sealed and vered in presence of:
o e Sig
iv4�atofrstParty
r"fA►.Sop-1E
n name fitness Print name of First Party
I E— -rs`
Address of Witness
State of Washington I
SS.
County of �
On this day personally appeared before me NQ-A 00-k-f-'-C'rP
known tone to be the individuals(s) whose described to the
within instrument and who executed the within and foregoing instrument, and acknowledged that 5 kS'
signed the same as free and voluntary act and deed, for the uses and purposes
therin mentioned.
WITNESS my hand and
r : C2 s +fi
CL
y: y
O:AW
Page 2
�' `1% day of r--e4rtxxj�j 2p4 9
Nota Public to and tat o Washington
Residing at:
My appointment expires: (;�-` C�q I
Don Persson - Renton Hill - Renton Avenue South Traffic Safety Page 1
From: "Holly Hedge House/Marian" <holly@hollyhedgehouse.com>
To: <kwheeler@ci. renton.wa. us>
Date: Tue, Jan 13, 2004 11:58 AM
Subject: Renton Hill - Renton Avenue South Traffic Safety
Dear Mayor Keolker-Wheeler, Councilpersons Nelson, Perssons:
Congratulations on your election and reelection as representatives of the
citizens for the City of Renton. I have been negligent in addressing a
traffic/safety flow issue on Renton Hill for some time. But as a result of
recent near tragic episodes by several residents of the "hill" while
traveling the hill, it became immediately apparent addressing this issue is
long overdue.
Location In Question: Renton Avenue South from South 3rd to South 7th
Streets.
Issue: Renton Avenue South serves as a major thoroughfare to well over 80%
of the residents of Renton Hill. And, by many the only expedient passageway
up and down the hill. With the increase number of homes having been built
or in the process of being built the current road configuration does not
adequately serve this community from the standpoint of traffic safety/flow.
The main obstacle that creates this safety problem is the excessive number
of cars parked on the east side of Renton Avenue South. A quick inventory
of homes along this route indicated all homes have off-street parking
available.
Most recently it has been brought to my attention an unnecessary number of
near miss accidents created by the allowance of vehicles parked, more
specifically at the crest of the hill. Because of these obstacles the
vehicle descending is forced into unseen oncoming uphill traffic. This I'm
sure poses a liability issue for the city in the event of an accident. The
"Yield To Up Hill Traffic" sign has not proven to be the answer; most
vehicles will not yield to uphill traffic forcing the ascending vehicles
into the gutter or worse onto the sidewalk. In addition, I have witnessed
those using bicycles attempting to climb the hill to be nearly forced from
the road because of the narrow passageway. This main thoroughfare most
often times has been effectively reduced to a one -lane roadway.
Since the Renton Hill residents communicated their concerns regarding this
traffic/safety issue at the planning stage of the Heritage Gardens
development, and since each of you travel this route with some regularity
I'm sure you are more than familiar with this situation. As guardians and
caretakers for the residents of this city we pose the following questions
and respectfully request a resolution:
Questions:
1. Since we are aware of the number of homes this thoroughfare serves, what
is the city's ratio requirements of ingress/egress roads in comparison to
residential density?
2. Has the city conducted any study regarding traffic flow of the area in
question? If so, what were the results?
3. Do you have any plans proposed that will address this issue? If so,
please explain, if not, why?
Proposals for Consideration:
i
Don Persson - Renton Hill - Renton Avenue South Traffic Safety Page 2
1. From a monetary standpoint it would appear it require minimal cost to
rectify this traffic/safety issue. It has been recommended by some to post
"No Parking from 7:00 a.m. to 7:00 p.m." signs on this roadway, or;
2. Post "No Parking Anytime" signs on this roadway.
I'm of the firm belief that it is not prudent to linger or wait until a
tragedy occurs before the problem is addressed, as often times happens. The
city has boasted in their mission statement to provide an environment that
is safe for the citizens of the community to live, work and play. It is our
goal to insure the safety of those that travel this roadway. Working
together we will meet this objective.
Sincerely,
Lynn & Marian Thrasher
904 Grant Avenue South
Renton, WA 98055
425-226-2555
holly@hollyhedgehouse.com
CC: <dpersson@ci.renton.wa.us>, <tnelson@ci.renton.wa.us>
(-Ilqloq)
March 11, 2004
To: City of Renton Transportation/Aviation Committee
Marcie Palmer, Chairman
Randy Corman
Terri Briere
From: Ruth Larson, President of the Renton Hill Community Association
Re: Renton Ave. So. On Renton Hill
CITY OF RENTON
MAR 1 A 2004
RECEIVED
CITY CLERK'S OFFIC-
✓� Gri�
The Renton Hill Community Association has been interested in all items dealing with the
quality of life on Renton Hill for more than 20 years. Our goal is to continue to make this
a great neighborhood in the City of Renton. I am unable to attend this meeting so in
fairness to all I am listing the suggestions that have been made over the years to deal with
the safety issues on Renton Ave. So. The problems have been growing with the addition
of more than 60 homes over the last 4 years.
Renton Ave. So. is an old and narrow neighborhood street with parking on the East side
only. It is the main access to Renton Hill. Many of the homes on Renton Ave. So. Have
either no garage or garages that were built before cars got as big as they now are. The
signage on this street includes "no parking this side", and "down hill traffic must yield".
On occasion both are ignored. The speed limit is also generally ignored. Between 523
and 527 Renton Ave. So. is the crest of the hill and sight is limited for both up and down
hill traffic. If cars are parked in this area the down hill driver cannot see the up hill driver
and there is nowhere for down hill traffic to pull over to yield.
1) One very expensive option to solve the problem would be for the City to buy all the
houses on either one side or the other from So. 3`d to So. 7t'. This would not be feasible.
To restrict the parking for the length of Renton Ave. So. would not be fair to those whose
houses did not come with adequate parking within the property.
2) Another very expensive option would be to remove the planting strips from both sides
of Renton Ave. So. This would however, move the telephone poles (on the west side)
onto private property or onto the sidewalk. The telephone poles could be removed
altogether if they were put underground. Generally to do this an LID is formed. In this
case it would be unfair to expected residents on Renton Ave. So. pay for an LID that
would benefit the entire hill.
3) It has also been suggested that the City buy property from three or four of the houses
that sit well above the street, on the East side, (across from 523, 527 and 531) and carve
out enough room to make this area a true two lane street plus parking. This would be
costly as a tall retaining wall would have to be built and there are springs on the hill in
this area that would have to be redirected to avoid erosion.
4) The least invasive and least expensive way to add some safety to Renton Ave. So.
would be to paint a red zone (no parking) from 10 feet down hill from the Fire Hydrant
across from 523 Renton Ave. So. and extend up hill between 100 and 125 feet. This
would eliminate the sight distance problem that causes the most of the near misses. It
would provide a lane for the downhill traffic with unrestricted view of what was coming
up the hill with enough room so as not to interfere with up hill traffic. The properties
affected on the West side of Renton Ave. So. would be 523, 527 and part of 531. Two of
these homes have three car garages, on property Barking and access to more parking from
the alley behind their homes accessed from So. 7 . The homes on the East side of
Renton Ave. So. are placed well above the street, are accessed from Grant Ave. So. and
have parking available on the backside of their homes. Those that are now parking in this
area would have to walk only a few more car lengths to go to any of the homes in this
area.
Item 4 would be the preferred solution. Many of the problems on Renton Hill could be
lessened with traffic emphasis. Speeding, failing to stop at stop signs, failing to yield and
generally being a fool behind the wheel are all traffic offences that can be ticketed. As a
low crime area with very few places a Police Officer could be unobtrusive, it is difficult
to coordinate effective emphasis.
I hope you will consider the above options or portions there -of and when action is taken
on this matter you will respond to this letter.
Thank you,
;ram
luth Larson.
714 High Ave. So.
Renton, Wa 98055
March 10, 2004
City of Renton
1055 South Grady Way
Renton, WA 98055
ATT N: Marcie Palmer, Chair
Transportation Committee
SUBJECT: Renton Avenue South Safety Concerns
CITY OF RENTON
MAR 12 2004
RECEIVED
CITY CLERK'S OFFICE
We have three safety concerns that we wish to brought before the
working session of the Transportation Committee and made part of the record.
First we would like to say that there is no valid reason for excluding parking on
the East side of the Avenue between So 3rd and So 7". Many homes have no
garages or only one -car garages too small for today's vehicles. In addition,
restricting parking for those without off-street parking would tremendously
restrict parking by guests. Besides our safety concerns, we are requesting that
the "No Parking This Side" signs be renewed on the West side of the street and
signs be posted on the telephone poles where they are currently missing. Many
of the signs are faded as well as missing.
The three safety concerns that we wish to have addressed are as follows:
1. Paint the curb red beginning at the fire hydrant across the street from 523
Renton Ave So., and extending southward approximately 100 feet. This
will prevent people from parking on the East side (at this location only)
where the crest of the hill obstructs on -coming traffic.
2. Paint crosswalks at the intersection of Renton Ave So and So. 7`''.
3. Paint crosswalks at the intersection of Renton Ave So and So. 3"
Addressing these issues would be greatly appreciated.
Thank you,
Mr & Mrs Wm Collins
420 Cedar Ave So
(Our driveway is off of Renton Ave So)
COMMITTEE OF THE WHOLE
COMMITTEE REPORT
March 15, 2004
King County Mitigation Funds
(Referred November 10, 2003)
CIrl COUNCIL
Date 3- / L 0 z
The City of Renton entered into an agreement with King County for the South Plant
(Wastewater Treatment Plant) electrical cogeneration project. The agreement brought
$2,216,000 in mitigation funds to be split between four known transportation capital projects
and one City capital project (to be determined).
The Committee of the Whole recommends the following transportation capital projects for
placement of the funding:
SR 169 (Phase I)
$1,200,000
into
account #317.012175
Benson Road Pedestrian
$150,000
into
account #317.012309
Walkway Program (Highlands sidewalks)
$166,000
into
account #317.000009
Arterial Rehabilitation (Overlay Edmonds Ave.) $200,000 into account #317.012186
The remaining $500,000 will be put into a King County Mitigation Reserve account. This
account must be a capital project account and can be moved to any citywide capital project
account designated. The current account indicated is a placeholder account only.
King County Mitigation Reserve $500,000 into account #317.012310
L U _
Don Persson, Council President
cc: Gregg Zimmerman
Sandra Meyer
Nick Afzali
Sylvia Doerschel
Sharon Griffin
Connie Brundage
H:Trans/admin/Director filesMetromiligation.doc
Reported acf
RECEIVE
IVIAH 0 12004
CITY OF RENTON
PLANNING/BUILDING/PUBLIC WORKS 9fFV .ffy 0UNCIL
MEMORANDUM
CITY OF 1`IcA1W t`J
DATE: February 23, 2004 Ov4
f? (VED
TO: Don Persson, Council President Clly CIF l!' OFFICE
Members of the Renton City Council VIA: Kathy Keolker-Wheeler, Mayor Od
FROM: Gregg Zimmerman (;
STAFF CONTACT: Gregg Zimmerman (x-7311)
SUBJECT: Proposed Use of King County Metro Mitigation Funds
($2,216,000)
In 2003 the Administration recommended that the King County Metro East Treatment Plant co-
generation facility mitigation funding ($2,216,000) be used to augment the Strander Blvd.
Project, SR 169, Benson Road Pedestrian improvements, the Walkway Program, and the Arterial
Rehabilitation Program. The Council referred this item to the Committee of the Whole. The
attached documents provide information about these projects and the proposed use of this funding
for the City Council's consideration.
cc: Jay Covington
Derek Todd
Document_Mcor
Transportation Division Fund 317
Proposed Use of Metro Mitigation Funds
Summary
Project Need Why?
If Nnt?
2/18/04
1.
Strander Blvd. Connection
$ 500,000
1. Replace partial Vehicle License Fee loss
Decide how far to pursue design past 30%
for the years 2004-2007.
prior to stopping work; continue to pursue
2. Complete final design from City of
grant opportunities.
Renton city limits east to Oakesdale Ave
SW, a commitment to Boeing.
2.
SR 169 Improvements
$ 1,200,000
1. Design and construct Phase 1 of 2: signal
Stop work after right-of-way plans are
and park access road.
complete. Try to find additional funding foi
2. City commitment to Merlino to construct
construction.
signal.
3. Need to progress to construction to use
STP(U)' construction grant funding of
$392,947 with an obligation date of 7/1/05.
3.
Benson Road Pedestrian
$ 150,000
Received TIB2 grant award in November
Will need to find match money during the
2003 to design and construct missing links
annual TIP3 process in Spring 2004. This
of sidewalk. $331,900 in match money is
may mean deferring other projects or using
needed.
the Walkway Program annual funding.
4.
Walkway Program
$ 166,000
Design and construct approximately ten
^
In conjunction with the need in Item 3,
sidewalk projects in the Highlands
funding will be redistributed to meet match
neighborhood. A list is attached.
needs for new grants during the TIP
process.
5.
Arterial Rehabilitation
$ 200,000
Overlay Edmonds Ave NE from Sunset
Postpone overlay until money is available.
Blvd NE to NE 27th St. (also using
NE 4th St is also awaiting funding; it was
$103,000 in annual program). The
prepped for overlay in 2003, but was on
Wastewater Division installed a new sewer
hold due to grant submittal.
T _
main from 20th to 27th.
A V "AL 0 &)b1V�VUV
Notes:
1. STP(U) = Surface Transportation Program (Urban) - federal program.
Transportation Division Fund 317
Proposed Use of Metro Mitigation Funds
Summary
2. TIB = Transportation Improvement Board - state program.
3. TIP = Transportation Improvement Program - City of Renton.
2/18/04
Lsariffin\KC 2-2M Summary
Transportation Division Fund 317
Proposed Use of Metro Mitigation Funds
Project Descriptions
Proposed Transportation Projects
1. Strander Blvd. Connection $ 500,000
2. SR 169 Improvements $ 1,200,000
3. Benson Rd. Pedestrian $ 150,000
4. Walkway Program $ 166,000
5. Arterial Rehabilitation $ 200,000
Total $ 2,216,000
See the Summary sheet for an outline of the project need and for the effect of not
receiving the funding.
1. Strander Blvd. Connection $500,000
Purpose:
The ultimate project will construct a new section of roadway that will connect the
Renton Employment Area to the Tukwila Urban Center. It will provide a much -
needed major regional east -west link targeted at improving access and mobility
for the traveling public, freight, and businesses. When constructed it will provide
access to the Boeing Longacres development site, the Tukwila Transit Center, and
provide a grade -separated crossing at the Union Pacific Railroad (UPRR) and
Burlington Northern Santa Fe (BNSF) railroad tracks.
Location:
The corridor project is along SW 27th St from East Valley Road in Renton to
Strander Blvd at West Valley Highway (SR-181) in Tukwila.
Status:
Perteet Engineering began working on the 30% design in March 2003. Their
contract is for $2,213,349 and will be completed by June 2005. It includes the
Corridor Environmental Impact Statement (EIS), base -mapping, road sections,
and project phasing. $625,000 has been spent to -date. Surveying has been
completed, as well as a preliminary geotechnical report. The consultant is in the
process of preparing the Environmental Assessment. $1,080,000 is the proposed
budget allocation for 2004 for contract costs and City staff time.
2. SR 169 Improvements $1,200,000
Purpose:
The total project will improve traffic flows on SR 169 around I-405 and around
1401h Way SE. Since the City does not have all of the necessary funding at this
time to support the total build -out of the project, we have decided to phase the
project in the I-405 interchange portion. Building a phase of the total project first
will allow the City to meet the obligations specified in the Stoneway/Renton
Page I of 4
1Asgriffinlmitigation\2-2M mitigation Feb2004
Transportation Division Fund 317
Proposed Use of Metro Mitigation Funds
Project Descriptions
Agreement and to build a portion of the ultimate design. A redesign is needed for
this portion to guarantee the least amount of impact to the City's Park
Maintenance building and to be able to construct a majority of Phase I toward the
ultimate design. With the additional $1.2 million City funding from the King
County Metro Mitigation, construction of the phased portion could be started
toward the end of the 2004.
Location:
This request is for Phase I of the project in the I-405 interchange portion. The
City plans to build the new signal and the new road portion starting in 2004.
Phase 1 includes the signal, the entrance road, and the parking lot.
The total project involves widening SR 169 in the vicinity of the I-405
interchange and 140th Way SE. The project incorporates building additional drop,
merge and transit lanes on SR 169 with a new signalized access entrance into
Cedar River Park as well.
Status:
Design of the total project was completed in 2003. At this time the environmental
and right-of-way is wrapping up for the entire project.
The following table illustrates the cost of the ultimate design and the phased
construction costs:
I405 Portion
Design
Construction
Construction
Engineering
Total
Ultimate Design
Finished
$ 3,557,800
$ 360,000
$ 3,917,800
Phase 1
$ 80,000
$ 950,000
$ 100,000
$ 1,130,000
Phase 2 **
$2,607,800
$ 260,000
$ 2,867,800
* It is estimated that 90% to 95% of the Phase 1 costs will be for the
ultimate design. However, there will be some temporary improvements
needed to match the existing conditions that will have to be removed when
Phase 2 is built.
** This is an approximate remaining amount. This may increase a small
amount depending on Phase 1's percentage to the ultimate.
3. Benson Rd. Pedestrian $150,000
Purpose:
This project will improve safety for children traveling to and from school and
provide a safe pedestrian facility for those doing business both north and south of
the project. The City received a Transportation Improvement Board (TIB) grant
award of $150,000 in November 2003. The City's match is $331,900. The
Page 2 of 4
1Asgriffm\mitigation\2-2M mitigation 1`62004
Transportation Division Fund 317
Proposed Use of Metro Mitigation Funds
Project Descriptions
Benson Road Pedestrian project was split out of the Walkway Program to better
track the grant revenue and expenditures.
Location:
The project is along Benson Road from S 26'h Street to Main Avenue.
Approximately 3,300 lineal feet of new sidewalk, curb, and gutter will be
constructed between City Hall and S 20h Street. This includes four missing links.
In addition, a raised painted crosswalk with a pedestrian refuge island will be
constructed in the vicinity of the 1-405 overpass.
Status:
As soon as funding is determined the project will proceed for Council approval to
obligate the funding with TIB.
The details of the grant are as follows:
Benson Road Pedestrian — South 26th Street to Main Avenue
Grant Agency:
Transportation Improvement Board (TIB)
Program:
Urban Pedestrian Safety and Mobility Program (PSMP)
Project Elements:
Design and construct pedestrian safety improvements.
Total Project Cost:
$ 481,900
TIB Grant Award:
$ 150,000 (31 %)
City Match:
$ 331,900 (69%)
4. Walkway Program $166,000
Purpose:
The Comprehensive Citywide Walkway Study was completed in May 2003.
Since that time, the top ranked projects identified in the study have already been
addressed or are under consideration for future construction. The following list of
proposed sidewalk projects is focused in one neighborhood. The effort in coming
years is to address identified projects in neighborhood blocks, if they cannot be
done in other suitable ways, su-ch as by site development requirements.
Locations:
Rank Proiect From To Cost
Harrington Ave NE
NE 9th St
NE Sunset Blvd
$ 22,400
4
Harrington Ave NE
NE 1 Oth St
Glenwood Ave NE
$ 42,400
2
NE 10th St
Harrington Ave NE
Sunset Lane NE
$ 16,800
4
NE 20th St
Kirkland Ave NE
Kirkland Place NE
$ 29,600
1
Harrington Ave NE
Glenwood Ave NE
NE 1 Oth St
$ 9,600
44
Glenwood Ave NE
Sunset Lane NE
Harrington Ave NE
$ -
shared
5
Hillcrest Lane NE
Harrington Ave NE
Kirkland Ave NE
$ 3,200
63
NE 9th St
Ferndale Circle NE
Ferndale Circle NE
$ 20,800
64
NE 9th St
Ferndale Circle NE
Glenwood Ave NE
$ 27,200
1224
NE 3rd St
Adjacent to
Jefferson Ave NE
$ 5,160
Total
$ 177,16Q
Page 3 of 4
1Asgriffin\mi1igation\2-2M mitigation F62004
Transportation Division Fund 317
Proposed Use of Metro Mitigation Funds
Project Descriptions
Status:
This list of sidewalk projects is ready to go through the Council process for design
and construction. It is anticipated that they could be completed in 2004, given
enough lead time on the approval of funds to meet the construction season.
5. Arterial Rehabilitation $200,000
Purpose:
The Arterial Rehabilitation Program is limited in its ability to fund reconstruction
of sections of arterial roadway. The last rehabilitation project, the Grady Way
concrete approach at Rainier Avenue in 2003 cost $469,000. Previous to that, the
East Valley Road project, cost $1.8 million in 2002. The total 6-year plan for
2004-2009 is $1.05 million (averaging approximately $175,000 per year). As a
result, the money from this program is generally used as an extension to the
overlay program, but only funds Principal Arterials and Major Collectors
(Function Class 1 and 2).
Location:
The location chosen is Edmonds Ave NE from Sunset Blvd NE to NE 12th St. It
has a low pavement management score of less than 75. There is extensive
patching on this arterial accompanied by a recent Wastewater sewer main
installation from NE 201h to NE 27t1i St.
Status:
Given enough advance notice of funding approval, this project could be added to
the 2004 Overlay Program. The cost of overlaying Edmonds is approximately
$228,000. The additional $28,000 will come from the Arterial Rehabilitation
program's 2004 allocation of $103,500. The remaining amount of $75,500 will
be reserved for the 2005 overlay of NE 4th St.
NE 4th St. was prepped for overlay in 2003, but put on hold pending a TIB grant
submittal. The cost is estimated to be $204,000. An additional $127,000 is also
needed in 2005 to complete S/SW 7th St. from Lind to Hardie and from Rainier to
Shattuck, two postponed pieces of the 2002/2003 overlay.
Page 4 of 4
1A grifim\mitigationV-2M mitigation 1` 62004
-YAJ�
CITY OF RENTON, WASHINGTON
ORDINANCE NO. S06il
AN ORDINANCE OF THE CITY OF RENTON, WASHINGTON,
ANNEXING CONTIGUOUS UNINCORPORATED TERRITORY KNOWN
AS THE BALES ANNEXATION, BY THE ELECTION METHOD,
SETTING THE TAXATION RATE, AND FIXING THE EFFECTIVE
DATE OF THE ANNEXATION.
WHEREAS, after public hearing, the City Council enacted a resolution calling for an
annexation by election under RCW 35A.14.015 for an area commonly referred to as the Bales
Annexation, which area is the property generally bounded by the south side of NE 41" Street to
the north, SE 1301h Street to the south, if extended, the west side of Parcel Number 1423059062,
to the east, and the centerline of 152❑d Avenue SE, if extended, to the west, legally described in
Exhibit A attached hereto and incorporated by reference as if fully set forth; and
WHEREAS, said resolution also called for an election on a proposition that the property
in the Bales Annexation should be subject to existing bonded indebtedness; and
WHEREAS, said resolution also called for an election on the proposition that all
property located within the territory to be annexed, excluding street right-of-ways, shall,
simultaneous with the annexation, have imposed the City of Renton zoning regulations, with a
Comprehensive Plan designation of Residential Low Density (RLD) and a zoning designation of
R-5; and
WHEREAS, an election was held pursuant to State statute; and
WHEREAS, those voting rejected R-5 zoning for the annexation, leaving only RC, R-1,
or R-4 zoning consistent with the Comprehensive Plan designation of Residential Low Density
ORDINANCE NO.
(RLD), and which said zoning will be established after public hearing and by a contemporaneous
ordinance; and
WHEREAS, R-4 zoning is currently being developed and is therefore unavailable; and
WHEREAS, said proposed annexation had been submitted to and approved by the King
County Boundary Review Board; and
WHEREAS, in the September 16, 2003, election for the Bales Annexation, the
assumption of indebtedness was approved by the voters; and
WHEREAS, the election results certifying a sufficient majority to permit annexation of
the area have been received by the City;
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF RENTON,
WASHINGTON, DO ORDAIN AS FOLLOWS:
SECTION I. There has been filed with the City Council of the City of Renton,
Washington, certified election results indicating a sufficient majority was received approving the
Bales Annexation to the City of Renton and such annexation has been approved by the
Washington State Boundary Review Board for King County. The City Council finds it to be in
the best interest of the citizens of the City of Renton to annex and does hereby annex the territory
submitted to the voters as the Bales Annexation situated in King County, Washington, as
contiguous, proximate and adjacent to the present corporate limits of the City and as more
particularly described by its legal description as set forth in Exhibit A and graphically shown on
Exhibit B, attached hereto and incorporated in full by this reference.
SECTION II. All property located within the territory to be annexed, excluding
street right-of-way, shall contemporaneously with the annexation, have imposed, by separate
PA
ORDINANCE NO.
ordinance, R-I zoning consistent with the Comprehensive Plan designation of Residential Low
Density (RLD).
SECTION III. The territory set forth in this ordinance and for which said election
results were certified for annexation should be and is hereby made a part of the City of Renton.
The area shall be assessed and taxed at the same rate and on the same basis as property within the
City of Renton to pay for all or any portion of the outstanding indebtedness of the City of Renton,
which indebtedness has been approved by the voters, contracted for, or incurred prior to or
existing at, the date of annexation.
SECTION IV. This ordinance, being an exercise of a power specifically delegated
to the City legislative body, is not subject to referendum, and shall take effect five days after its
passage, approval, and publication.
PASSED BY THE CITY COUNCIL this
APPROVED BY THE MAYOR this
Approved as to form:
Lawrence J. Warren, City Attorney
day of 12004.
Bonnie I. Walton, City Clerk
day of , 2004.
Kathy Keolker-Wheeler, Mayor
I
ORDINANCE NO.
Date of Publication:
ORD.1049:3/4/04:ma
Exhibit A
BALES ANNEXATION
LEGAL DESCRIPTION
The Northwest quarter of the Northeast quarter of the Northwest quarter of Section 14,
Township 23 North, Range 5 East, W.M., in King County, Washington;
EXCEPT the east 32.45 feet of the north 406.01 feet thereof,
EXCEPT that portion for street right of way (NE 4th Street).
Exhibit B
NE 4th St
Bales Annexation 0 200 400
tiSY o� EDNSP
®+ 24 October 2003 1 : 2400
CITY OF RENTON, WASHINGTON i�
tc
ORDINANCE NO. 5065' 19� RL ��k a
o
AN ORDINANCE OF THE CITY OF RENTO , WASHINGTON,
ESTABLISHING THE ZONING CLASSIFICATION FOR THE BALES
ANNEXATION.
WHEREAS, after public hearing, the City Council enacted a resolution calling for an
annexation by election under RCW 35A.14.015 for an area commonly referred to as the Bales
Annexation, which area is the property generally bounded by the south side of NE 41h Street to
the north, SE 1301h Street to the south, if extended, the west side of Parcel Number 1423059062,
to the east, and the centerline of 152°d Avenue SE, if extended, to the west, legally described in
Exhibit A attached hereto and incorporated by reference as if fully set forth; and
WHEREAS, said resolution also called for an election on the proposition that all
property located within the territory to be annexed, excluding street right-of-ways, shall,
simultaneous with the annexation, have imposed the City of Renton zoning regulations, with a
Comprehensive Plan designation of Residential Low Density (RLD) and a zoning designation of
R-5; and
WHEREAS, an election was held pursuant to State statute; and
WHEREAS, those voting rejected R-5 zoning for the annexation, leaving only RC, R-1,
or R-4 zoning consistent with the Comprehensive Plan designation of Residential Low Density
(RLD); and
WHEREAS, R-4 zoning is currently being developed and is therefore unavailable; and
WHEREAS, said zoning is to be established after public hearing, and
contemporaneously with the annexation ordinance; and
ORDINANCE NO.
WHEREAS, the first public hearing on zoning was held on January 26, 2004, and the
second public hearing was held on March 1, 2004; and
WHEREAS, the territory will also be annexed on this date by separate ordinance;
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF RENTON,
WASHINGTON, DO ORDAIN AS FOLLOWS:
SECTION I. Zoning for the annexed area known as the Bales Annexation,
which is more particularly described by its legal description as set forth in Exhibit A and
graphically shown on Exhibit B, attached hereto and incorporated in full by this reference, is
hereby designated as R-1, with a Comprehensive Plan designation of Residential Low Density
(RLD).
SECTION II. This ordinance, being an exercise of a power specifically delegated
to the City legislative body, is not subject to referendum, and shall take effect five days after its
passage, approval, and publication.
PASSED BY THE CITY COUNCIL this day of
APPROVED BY THE MAYOR this
Approved as to form:
Bonnie I. Walton, City Clerk
day of
Kathy Keolker-Wheeler, Mayor
2004.
, 2004.
0
ORDINANCE NO.
Lawrence J. Warren, City Attorney
Date of Publication:
ORD.1092:3/4/04: ma
i
Exhibit A
SALES ANNEXATION
LEGAL DESCRIPTION
The Northwest quarter of the Northeast quarter of the Northwest quarter of Section 14,
Township 23 North, Range 5 East, W.M., in King County, Washington;
EXCEPT the east 32.45 feet of the north 406.01 feet thereof;
EXCEPT that portion for street right of way (NE 4►h Street).
Exhibit B
NE 4th St
Bales Annexation 0 200 400
1TY o EDNSP
®� 24 October 2003 1 . 2400
CANTO