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Home My WebLink AboutCommittee of the Whole - 20 May 2019 - Agenda - PdfCITY OF RENTON AGENDA Committee of the Whole Meeting 5:30 PM - Monday, May 20, 2019 Conferencing Center, 7th Floor, City Hall — 1055 S. Grady Way 1. Airport Building Lease Proposals Discussion a) Memo 2. Community Services Dept Bond -funded Projects Update (cont'd) a) Presentation 3. Boeing Apron R Update 4. Recreation & Neighborhoods Division Updates a) Presentation 5. Parks & Trails Division Updates a) Presentation AGEN, PUBLIC WORKS DEPARTMENT M E M O R A N D U M DATE: May 17, 2019 #1. a) TO: Don Persson, Council President Members of the Renton City Council CC: Denis Law, Mayor Robert Harrison, Chief Administrative Officer FROM: Gregg Zimmerman, Public Works Administrator, ext. 7311 SUBJECT: Airport 300 Rainier Avenue North (Old Chamber ofD Commerce Site) Lease Proposals Information During the May 13 Committee of the Whole meeting, two proposals for leases on the 300 Rainier Avenue North (Old Chamber of Commerce site) were presented to the City Council — the Aviator Proposal and the Yene Boona Cafe Proposal. We are providing you some information on key airport leasing policies and also FAA regulations that may impact or supersede those policies for landside leases for non -aeronautical uses and also next steps. These proposals require an explanation of the differences in airport leasing agreements. The facilities can be distinguished by airside versus landside, while the revenue distinction is between aeronautical versus non -aeronautical. Airside versus Landside Leasing: The airside of the airport is any building or pavement surface inside of the perimeter fence of the airport, which has direct access to the runway and taxiway system. The landside of the airport includes facilities and pavement outside of the perimeter fence where there is no direct access to the runway or taxiway system. Both proposals for the 300 Rainier Avenue North parcel are considered proposals for landside. Aeronautical versus Non -Aeronautical Agreements and Revenues: Aeronautical agreements and the revenues that result are associated activities directly associated with the operation of aircraft, for example, aircraft servicing, maintenance or flight training. Non -aeronautical agreements and revenues are those agreements and/or revenues generated from activities that support airport functions, but that are not directly tied to the operation of an aircraft. Examples of these activities would be rental car facilities, concessions, landside vehicle parking, advertising, etc. In modern day airport administration, non -aeronautical agreements are where a bulk of the revenue is generated to sustain the airport. Commercial activities on the Renton Airport are principally governed by two documents —the Airport Minimum Standards, which are required under Federal Aviation Administration rules, and the Airport Leasing Policies, which the city has Renton City Council Page 2 of 3 May 17, 2019 AGENDA ITEM #1. a) promulgated. Currently, the Airport Minimum Standards do not address commercial activities associated with concessions or retail operations. Therefore, the airport recommends that the City Council adopt policies to the Airport Minimum Standards to remain consistent with benchmarking the commercial operations on the airport. The airport will prepare draft policies for the City Council's consideration. Below, the airport provides language from the current leasing policies adopted by the Council. However, these policies are based on presumption of aeronautical uses and do not fully address non -aeronautical agreements. Airport Leasing Policies: Leasing Policy Provision # 5.2.2.1 6.3.1 6.5.3 Airport Lease Policy Statement The applicant must obtain a score from a consultant acceptable to the City on an analysis of the lessee's financial capacity. The base lease term for land leases shall be no longer than 25 years. Longer lease terms may be granted based on proven need for additional years to amortize investment. The City may set different rates for different tenants based on rational factors. 6.7.1 Reversion Policy — at the end of the base term of the lease, the lessee shall quit and surrender the premises to the Comments See Attachment B. An application with a score of 25-32 is eligible for a lease over 5 years. The FAA guidance recommends 20 years, however allows leases up to 50 years for non -aeronautical uses. Lifetime/99-year leases are highly discouraged. The FAA does not require ground lease rates for non -aeronautical uses to be the same as lease rates for aeronautical uses. In fact, landside non -aeronautical leases must not be executed below Fair Market Value per FAA regulation. Typical non -aeronautical leases usually include a base square footage lease plus a minimum annual guarantee/percentage of gross sales. The FAA also requires the lessee to surrender the premises to the City at the end of the lease. c:\users\lmoschetti\desktop\council airport chamber proposal memo 051719.docx Renton City Council Page 3 of 3 May 17, 2019 AGENDA ITEM #1. a) All revenues generated on landside and non -aeronautical leases must still be used only for the operation of the airport -under federal regulation. Revenues need not be devoted to aviation system improvements, although the airport can choose to do so. Usually these types of revenues generated on an airport are used for customer services, advertising/marketing, property acquisition, flood or noise mitigation, on -airport art programs, etc. The airport may choose to use these revenues to support employee salaries or to make up shortfalls in capital programs. Next Steps: The next steps, and minimum timelines for those steps, are included in the Lease/Operating Permit Application Process Flow Chart (Attachment A). With respect to the subject lease proposals, we have advised the Council of the complete applications, but the applicants have not yet performed the analysis of lessee's financial capacity as established in provision 5.2.2.1. That will add some additional time in the process flow. The airport will also need to establish airport minimum standards for non -aeronautical uses, which will also require some additional time. cc: Leslie Clark, Senior Assistant City Attorney Jim Seitz, Transportation Systems Division Director Jason Seth, City Clerk Megan Gregor, Deputy City Clerk Harry Barrett, Jr., Airport Manager Jason Anderson, Assistant Airport Manager Casey Boatman, Airport Business Coordinator April Alexander, Executive Assistant Julia Medzegian, Council Liaison c:\users\lmoschetti\desktop\council airport chamber proposal memo 051719.docx Airport Manager determines if Application Application is Submitted complete Attachment A Lease/Operating Permit Application Process Flow Chart Airport Manager drafts Administration Lease or advises Operating Council of Permit if Complete Application was Application complete At least 3 weeks For applications deemed incomplete or infeasible Administration Referred to Council Council Legal Review Authorization Committee Decision 4 At least 1 week At least 4 weeks "�g At least 2 weeks Page 18 of 20 -9 At least 2 weeks n, Z v n m AttnrhmPnt R --------------- — Criteria Rating Scale Score Years in airport -related business No experience 0 Less than 1-2.9 years 1 3 — 6.9 years 2 7 — 12 years 3 more than 12 years 4 Airport -related management experience of No experience 0 principal owner/manager Less than 3 years 1 3 — 6.9 years 2 7 — 12 years 3 more than 12 years 4 Dunn & Bradstreet Pay history/credit report No credit history 0 Pay History — high risk I Pay History — medium risk 2 Pay History — low risk 3 Pay History — low risk and clear credit report no bankruptcies, judgments, liens, etc.) 4 Viability of operations Cannot demonstrate profitability 0 Losses (net) in all 3 years I Profitable (net) in I of last 3 years 2 Profitable (net) in 2 of last 3 years 3 Profitable (net) in past 3 years 4 Earnings net of cost of operations, taxes, Net Earnings less than annual lease payment I depreciation/amortization, other debt/lease Net Earnings equal to or less than 1.25x annual lease payment 2 obligations (if new enterprise, use projected Net Earnings 1.25-2.0 times over annual lease payment 3 income and obligations) Net Earnings more than 2.0 times over annual lease payment 4 Current ratio Current ratio is less than I.Ox I Current ratio is 1.Ox —1.5x 2 Current ratio is 1.6x — 2.Ox 3 Current ratio is above 2.Ox 4 Debt Service Coverage (DSC) DSC is less than 1.Ox I DSC is 1.Ox — 1.5x 2 DSC is 1.6x — 2.Ox 3 DSC is above 2.Ox 4 Net worth Negative net worth 0 Net worth is positive, but less than annual lease payment I Net worth is equal to annual lease payment but less than 2x annual lease payment 2 Net worth is 2x — 5x annual lease payment 3 Net worth is more than 5x annual lease payment 4 Page 19 of 20 Park Avenue N Extension — General Area =,EN F, PRE--IMIMARY SECO R-ACV-., "A� " 4-/t- OX 44 Iqj At Z tEWFE T Extend Park Avenue N from the existing intersection with Logan Avenue N to connect to the Southport site. y LE Design and Permitting: $813,000 Construction: $3,679,000 Right-of-way acquisition: $ 2,9571599 Total = $7,449,599 m Z Park Avenue N Extension — Water Main �- ' ` _ `.•r'' ., '� �� ' "ram �� _ i 1 �. � .� 4�• �� tel:' �' 4- M,FBI e •� V' y u - 44 PE RTE ET �o.ce.xu�u ezw eir %:, 11 �F �Ury vRRK AVE E NIExTENSiDN PRELIMINARY + �vRT��{. T I-�..i+. n- uoc las T IOR CONailluGlloM: �^ `s�r..wgq wen. wn wA rrntlnnc,M The extension of approximately 250 Design and Construction Cost: $226,435 feet of 12-inch water main with 75 feet of 24" steel casing under BNSF railroad right-of-way. m v n m N BNSF Trestle -Area • ..,� • • i e 2 - V.. ' JA pERTEET ry �v�...�. .�,._. � �•.`.GITYOF^... -uEry r s..mwcac»..exe PRELIMIWARY � K�I Pnrik n�EExrErvsiov TR Trestle Bridge Replacement Design and Construction Cost: $275,000 h I BNSF Trestle — Sanitary Sewer 14 SANI IAPY SE'MEI2 LASING - .44 o PERTEET %�, y� - _ A c-ii Mn P.� �i.rofAEw.o« m f' PRELIMINARY KArvErvuCry ExiErvSrtp+ H F:N7'V u - IS Installation of a 36-inch Steel Casing crossing of BNSF railroad right-of-way for a future Sanitary Sewer System Design and Construction Cost: $58,000 Highlands to Landing Pedestrian Lighting x -k�j N Southport Drive and NE Sunset Blvd Z from Garden Ave to NB 1-405 Ramps n • Design and Construction y • 22 Pedestrian Luminaire Poles • Foundations, Conduit, Service • Estimate $300,000 ^' Park Bond — Projects Update Projects noted in slides are from the original `43 Project List — 6 year CIP' Forwarded from the Community Advisory Committee and Council Approved Following are: • Completed bond projects Cedar River Trail Park Playground Replacement j Al ' ter. f.. Completed Projects • Teasdale Park —Playground Replacement OLD NEW m N P Completed Projects • Philip Arnold - Bathroom Demolition Demo 0OLD Restroom Cleared Site n Completed Projects • Coulon Park —Structural and other repairs • Boat launch Coulon —Completed Projects • Trestle Bridge — structural repair • Sailing Float — decking and new floats • Wave Breaks - repair and removal • Stairs and Pilings down to Ivar's M Coulon — Completed Projects • Ivar's - South Walk and Finger Piers repair Coulon —Completed Projects • Ivar's- North Walk repairs Upcoming Prioritized Bond Projects 1. Complete identified Coulon projects • Coulon parking lot improvements • Water walk and picnic floats (DNR Lease) • Repair Rosewall bulkhead (DNR Lease) • Address shoreline erosion • Repair the swim beach promenade • Replace irrigation system Examples at Coulon k 2. Kiwanis Park - Improvements • Ballfield renovation • Multi -Use field renovation • Parking lot full replacement • Playground equipment replacement • Sports Court renovation m z • New ADA access from Union Ave. n m N P *„!Asil :r 5 Y 3. Philip Arnold Park -Improvements • Improvements to basketball court • New ADA walkways to activity building, ballfield and lower parking lot • Relocate and replace playground equipment • Install a picnic plaza • Renovation of upper parking lot • a 9 � h Current Funding Status Approved Park Bond - $14.5 million Monies spent to date on completed projects — $3.4 million Estimated funding for noted prioritized projects - $19.8 million Includes 10% contingency and project management QUESTIONS ? Recreation & Neighborhoods Division Our mission: Creating an active, vibrant and connected community through grants, recreational programming, and events that are in response to growing service demands through partnerships, innovation, and outcome management. eK S4 14' IPA KS n m v �. Lines of Service • Recreation Programmi�� • Rec Events • City Events • Marketing kn • Boards • Permits • Rentals • Contracts 8 Leases • 3 Full servic counters • Personnel • Volunteers • Vehicles • Buildings • Financial • Legal & H R • Softwa re Workshops Grants Events Meetings Vista 7R m z v n .0'. L)minj $1,509,375 2018 Revenue $681953 2018 Sponsorships $110,797 2018 King County Grants • $171430 2018 Gift of Play ti r- �,T Y �FNTOI _ E AOL �- ir lag Erg -Al �j'T Y p� + ND107!A�d T �F 1 PILVW IM04 P UP Le- I .. F A sound source such as a The amplifier sends a current to a microphone feeds sound wire loop that surrounds the room. into an amplifier. O,f T Hearing Loop The current generates a magnetic field, which emanates from the loop. Tiny wire t-coils built into most hearing aids pick up the magnetic signal. The hearing aid converts the signal into sound customized for the listener's individual pattern of hearing loss. Fj ! I VA ki LVA m D- 0 PI.0. 0 4D J 0'T Y Ok. �FNT0 We're listening &EENPLAYL41C, 771e feeding Egge 1?? Parks, Aecrea�ion An46sa Spare Corrauiting sh.d0 Clam Lights 2018 Interaction report Let's Go MAY-AUG 2019 Renton ! RECREATION ■ FOR ALL AGES YOUTH ADULTS SENIORS Day Camps Sports Leagues Technology, Dance, PAGen PAGED Day Trips and More! PAGE 35 F E ILS Im Leading with Heart ■ lRentan Schools o rito May 12013 - Q) Renton High School senior ❑uIce Ventura has been named a 2018 Gates Scholar_ DuIce is one of only 300 high school students nationwide — out of nearly 3D_000 applicants — to win the prestigious award. She received the award based on her academic achievement, community service and leadership abilities. As part of the award, she will be granted a full -ride college scholarship funded by the BIII and Melinda Gates Foundation to pursue a biology degree: with a minor in Latin American studies, at Swarthmore College in Pennsylvania. Read mare about DuIce and this great he nor at https:#goo.gllrMGSbi n, z v n '' 249 20 Comments 14 Shares �. Partners & Sponsors +echbridge girls" AIPM Excite, Educate and Equip Girls through STEM ENVIRONMENTAL it y�w SCIENCE CENTER AIN CITE' CATEFD,ING Seafood Bar awks THE LEADER IN YOUTH SPORTS SINCE 1979. Du Great Tasting Lunchmeat N+W L9 King County '5e.S+ '5+kNr+S kco,r HYATT KIDS REGENCY .000� onntt SCHOOL DISTRICT G STONEWAY SERVICE � EXCELLENCE � EQUITY CONCRETE n Questions r �. COMMUNITY SERVICES DEPARTMENT PARKS and TRAILS Division Parks Maintenance Farmers Market Program Volunteer Proaram 4,p y /. y 9 i V- Total Park Acreage Developed Parks (32) Maintained by Division ROW Irrigation Trails 1,246 acres 284 acres 809 acres 25 sites 10 miles Picnic l P� Trail (Hard Surface) - Cleo Grass - Mow by Ride Playground Inspection Storm Cleanup Park Lock Up Picnic Tables - Annual Maintenan Daily Safety Inspe Lear t-ieanup Tasks Support for all City - sponsored events Trash cleanup Mowing Ballfield preparations Playground inspections Cityworks — Work Management Software Garbage Baseline information this year Reporting and graphics Integrates with Public Works Certified Playground Safety Inspectors Tri-annual re -certification Final inspections with Project Manager In-house trainings Design input at Sunset Neighborhood Park Encampment Management Community Services - lead on City -owned properties CED Code Enforcement - lead on privately -owned properties Post sites with Police City Policy 1000-01 provides requirements Cleanups contracted out Z v n m Center , BURIEN NORMANDY PARK Puget Sound \ Lake SEA] ftshinglon 0 J— TUKWILA r GCS MOINES s4ww Seg. Sag. E . . Seg. D. f � h KENT Lake to Sound Trail Segment A —1.2 miles HAWK signal across Monster Road Bridge over Black River King County will maintain Construction to start today! n n, v m PASFFjAIL Branding launch Eastrail Partnership WSDOT mitigation May Creek trailhead New interim entrance being designed for Coulon Park ATTENDANCE: 50,161 for 17 Market days; highest single -day attendance 4,952 at end of June 59 VENDORS: 13 new; 12 Renton residents; 23 farmers SALES: Over $414,000 reported by vendors • 31% increase from 2017, 2 fewer vendors • 54% of total sales ($227,320) were from 23 farmers • 10 farmer vendors cultivated 30 acres in King County and reported a 65% increase in sales from 2017 ($51,492) , 0_� peh g0^ Ju f he �11 4s n G) l y FAMRS MArRKET FV0 Food Trucks VENDOR MAP Market Footprint is expanding! Logan Ave S closed on Tuesdays Safer crossings 31 32 [ More vendors 30 29 Education, entertainment 28 27 Unlimited Fresh Bucks 51 complement Supplemental Nutrition Assistance Program (SNAP) benefits 1 f_ In 2018, Renton Volunteers gave: • 5,985 volunteers • Over 50,000 hours = $1,588,506 CERVIS software tracks: • Police assistance • Coach sports • Renton Farmers Market • Public Works Recycle events • Parks Trail Rangers • Park beautification projects • Advisory boards and commissions 2019 Goals • 15% increase of meals served to 31,516 • 9 United Way staff members • 11 sites with recreation activities • King County Library System will host three special events • 4 sites will stay open additional week P.11 MjZ-", !`} " 4 Arun at AthLetes ArimaLes Attetas TRACK Trail — Kids in Parks 00- Nature's Hide 4, Seef<,, Self -guided nature hike 4 educational brochures First in WA State Website registration • Prizes from each hike The Need for e e s Software Implementations Cityworks for Parks Maintenance CERVIS for Volunteers Update Park Kiosks Cedar River Dog Park North Highlands Community Garden New Dog Park Location Discussions for a %2-acre dog park Park and Trails Division would maintain site Agreements for Park Use Sailing Center at Coulon Park Softball league at Tiffany Park n Washington Conservation Corp Urban Agriculture o n m y� VI iWilt'`. �r �Vf p7r• • e