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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 • CITY COUNCIL MEETINGS ARE TELEVISED LIVE ON GOVERNMENT ACCESS CHANNEL 21 AND ARE RE-CABLECAST TUES. & THURS. AT 11:00 AM & 9:00 PM, WED. & FRI. AT 9:00 AM & 7:00 PM AND SAT. & SUN. AT 1:00 PM & 9:00 PM 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 - Monitoring\10.01 -Scope of Work\GolderContractlnfo2004\2004Golder] ssuePaper.doc\RJS\CDM\tb 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: C:\Documents and Settings\sduncan\Local Settings\Temporary Internet Files\OLK8CB\2004GoiderContract.doc\ sd Piazza/Data- Center/Forms/City/Contracts /2000 _Consultant.doc bh 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. CADocuments and Settings\sduncan\Local Settings\Temporary Internet Files\OLK8CB\2004GolderContract.doc\ sd Piazza/Data—Center/Forms/City/Contracts /2000_Consultant.doc bh 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. C:\Documents and Settings\sduncan\Local Settingffernporary Internet Files\OLK8CB\2004GoiderContract.doc\ sd Piazza/Data—Center/Forms/City/Contracts /2000_Consultant.doc bh 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"). CADocuments and Settings\sduncan\Local Settings\Temporary Internet Files\OLK8CB\20046olderContract.doc\ sd Piazza/Data—Center/Forms/City/Contracts /2000 Consultant.doc bh 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 CADocuments and Settings\sduncan\Local SettingsUemporary Internet Files\OLK8CB\2004CoiderContract_doc\ sd PiazzaiData CentedForms/City/Contracts /2000 Consultant.doc bh 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. C:\Documents and Settings\sduncan\Local Settings\Temporary Internet Files\OLK8CB\2004GolderContract.doc\ sd Piazza/Data—Center/Forms/City/Contracts /2000_Consultant.doc bh 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. C:\Documents and Settings\sduncan\Local SettingsUemporary Internet Files\OLK8CB\2004GolderContract.doc\ sd Piazza/Data—Center/Forms/City/Contracts /2000 Consultant.doc bh 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. C:\Documents and SettingsWuncan\Local Settings\Temporary Internet Files\OLK8CB\2004GolderContract.doc\ sd Piazza/Data—Center/Forms/City/Contracts /2000_Consultant.doc bh 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 CADocuments and Settings\sduncan\Local Settings\Temporary Internet Files\OLK8CB\2004GolderContract.doc\ sd Piazza/Data—Center/Forms/City/Contracts /2000_Consultant.doc bh 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