HomeMy WebLinkAboutCouncil 02/09/2004AGENDA
RENTON CITY COUNCIL
REGULAR MEETING
February 9, 2004
Monday, 7:30 p.m.
1. PLEDGE OF ALLEGIANCE
2. CALL TO ORDER AND ROLL CALL
3. PUBLIC MEETING:
Johnson Annexation - 10% Notice of Intent Petition to Annex for 14.22 acres bounded by 142nd
Ave. SE, 144th Ave. SE, NE 9th St., and SE 121st St.
4. PUBLIC HEARING:
Carlo Annexation - 50% Petition to Annex and R-8 prezoning for 37 acres bounded by 136th Ave.
SE, NE 3rd St., 140th Ave. SE, and SE 135th St.
5. ADMINISTRATIVE REPORT
6. 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.
7. CONSENT AGENDA
The following items are distributed to Councilmembers in advance for study and review, and the
recommended actions will be accepted in a single motion. Any item may be removed for further
discussion if requested by a Councilmember.
a. Approval of Council meeting minutes of February 2, 2004. Council concur.
b. City Clerk reports appeal of Hearing Examiner's decision on the Harrington Square mixed -use
project (SA-03-066); two appeals filed - one by David Nielsen, 2256 38th Pl. E., Seattle, 98112,
representing Michael Shreve; and the other by Bob Gevers, 900 Kirkland Ave. NE, Renton,
98056, both accompanied by required fee. Refer to Planning & Development Committee.
Consideration of the appeal by the City Council shall be based solely upon the record, the
Hearing Examiner's report, the notice of appeal and additional submissions by parties
(RMC 4-8-110F.6.)
c. Community Services Department recommends approval of a three-year lease with Intensive
Asset Management, Inc. for the sixth floor of the 200 Mill Building. Revenue generated is
$40,000 per year. Refer to Finance Committee.
d. Transportation Systems Division recommends approval of the 2004 reallocation of projects by
line item within the 2004-2009 Transportation Improvement Program appropriation of
$8,460,400 for the Transportation Capital Improvement Fund 317. Refer to Transportation
(Aviation) Committee.
e. Transportation Systems Division requests authorization to initiate lease negotiations with
Kenmore Air Harbor, Inc. for the 608 Building at the Airport. Refer to Transportation (Aviation)
Committee.
f. Transportation Systems Division recommends approval of a contract with King County and
Sound Transit to continue the F1exPass Commute Trip Reduction Program for City employees in
the amount of $21,450 for 2004-2005. Council concur. (See 10. for resolution.)
(CONTINUED ON REVERSE SIDE)
g. Utility Systems Division recommends approval of Addendum #2 to CAG-01-044, East Valley
Lift Station Replacement contract with R112 Engineering, Inc., for additional engineering
services in the amount of $56,353. Council concur.
8. CORRESPONDENCE
9. OLD BUSINESS
Topics listed below were discussed in Council committees during the past week. Those topics
marked with an asterisk (*) may include legislation. Committee reports on any topics may be held by
the Chair if further review is necessary.
a. Finance Committee: Vouchers; Bad Debt Write Off
b. Planning & Development Committee: 2002 National Electric Code with City of Renton
Amendments*
c. Utilities Committee: Holmes Sewer Main Extension Latecomer Request
10. ORDINANCES AND RESOLUTIONS
Resolution: 2004-2005 F1exPass agreement with King County/Sound Transit (see 71.)
Ordinance for first reading: 2002 National Electric Code with City of Renton amendments (see 9.b.)
11. NEW BUSINESS (Includes Council Committee agenda topics; call 425-430-6512 for recorded
information.)
12. AUDIENCE COMMENT
13. ADJOURNMENT
COMMITTEE OF THE WHOLE
AGENDA
(Preceding Council Meeting)
Council Conference Room
7:00 p.m.
Emerging Issues
• Hearing assistance devices for use in the Council Chambers are available upon request to the City Clerk •
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RENTON CITY COUNCIL
Regular Meeting
February 9, 2004
Council Chambers
Monday, 7:30 p.m.
MINUTES 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; MARCIE PALMER; DENIS LAW; DAN
COUNCILMEMBERS
CLAWSON; TONI NELSON; RANDY CORMAN. MOVED BY
CLAWSON, SECONDED BY NELSON, COUNCIL EXCUSE ABSENT
COUNCILWOMAN TERRI BRIERE. CARRIED.
CITY STAFF IN
KATHY KEOLKER-WHEELER, Mayor; JAY COVINGTON, Chief
ATTENDANCE
Administrative Officer; ZANETTA FONTES, Assistant City Attorney;
BONNIE WALTON, City Clerk; GREGG ZIMMERMAN,
Planning/Building/Public Works Administrator; ALEX PIETSCH, Economic
Development Administrator; DON ERICKSON, Senior Planner; DEREK
TODD, Assistant to the CAO; COMMANDER TIM TROXEL, Police
Department.
PUBLIC MEETING
This being the date set and proper notices having been posted and published in
Annexation: Johnson, 142nd
accordance with local and State laws, Mayor Keolker-Wheeler opened the
Ave SE
public meeting to consider the 10% Notice of Intent petition for the proposed
Johnson Annexation, which consists of 15.66 acres, including the abutting
142nd Ave. SE right-of-way, located between 142nd Ave. SE and 144th Ave.
SE, if extended, and between NE 9th St., if extended, and SE 121st St., if
extended.
Don Erickson, Senior Planner, stated that the site contains seven single-family
dwellings, and generally slopes downward from west to east at a 3% slope. He
noted that a wetland exists near the southeast corner of the site, and that Honey
Creek flows north beyond the eastern edge of the site. The area is served by
Fire District #25, Renton water and sewer, and Renton School District. Mr.
Erickson reported that current King County zoning is R-4 (four units per gross
acre), and Renton's Comprehensive Plan designates the site as Residential
Single Family, for which R-8 (eight units per net acre) is proposed.
Mr. Erickson noted the receipt of a letter from Carolyn Bigelow, 12110 142nd
Ave. SE, Renton, 98059, who requested inclusion in the annexation area. He
stated that staff recommends that the boundaries of the site be expanded to
include the adjacent 2.39-acre Bigelow parcel and abutting right-of-way. Mr.
Erickson reviewed the fiscal impact analysis, which assumes a new home value
of $300,000 and an increase to 91 homes at full development, and an increase
to 106 homes at full development if the Bigelow property is added. Without the
Bigelow property, a deficit of $797 is expected, along with an estimated one-
time parks acquisition and development cost of $48,289. With the addition of
the Bigelow parcel, a deficit of $275 is expected, with an estimated one-time
parks cost of $60,212.
In conclusion, Mr. Erickson stated that the annexation proposal is generally
consistent with Renton policies and Boundary Review Board criteria, and
except for parks, no major service issues have been identified.
February 9, 2004 Renton City Council Minutes Page 42
Responding to Councilman Clawson's inquiry regarding potential flooding
problems, Mr. Erickson stated that Public Works staff recommends that any
development on the site be required to adhere to the 1998 King County Surface
Water Design Manual standards. He confirmed that drainage problems will be
identified and addressed when development occurs at the project level.
Public comment was invited.
Eleanor Bagley, 11860 142nd Ave. SE, Renton, 98059, stated that her property
is located adjacent to the Johnson property, and expressed concern that costs
will increase as a result of the annexation. She also noted the current traffic
problems, and indicated that they will get worse as development occurs.
There being no further public comment, it was MOVED BY PERSSON,
SECONDED BY CORMAN, COUNCIL CLOSE THE PUBLIC MEETING.
CARRIED.
MOVED BY CLAWSON, SECONDED BY LAW, COUNCIL: ACCEPT
THE JOHNSON 10% NOTICE OF INTENT TO ANNEX PETITION,
AUTHORIZE CIRCULATION OF THE 60% PETITION TO ANNEX
(REINSTATED ASSESSED VALUE METHOD), AMEND THE SOUTHERN
BOUNDARY TO INCLUDE THE ABUTTING 2.39-ACRE BIGELOW
PROPERTY, REQUIRE ADOPTION OF R-8 ZONING CONSISTENT WITH
THE COMPREHENSIVE PLAN, AND REQUIRE THAT PROPERTY
OWNERS ASSUME A PROPORTIONAL SHARE OF THE CITY'S
BONDED INDEBTEDNESS. CARRIED.
PUBLIC HEARING This being the date set and proper notices having been posted and published in
Annexation: Carlo, 136th Ave accordance with local and State laws, Mayor Keolker-Wheeler opened the
SE & 140th Ave SE public hearing to consider the 50% Petition to Annex and R-8 prezoning for the
proposed 37-acre Carlo Annexation located between 136th Ave. SE on the west
and 140th Ave. SE on the east, and SE 132nd St. on the north and SE 135th St.,
if extended, on the south.
Senior Planner Don Erickson reported that King County certified the signatures
on the petition on December 1, 2003, and he pointed out that this site cannot be
annexed into Renton before the Tydico Annexation is completed. He stated
that the site contains 18 single-family dwellings, and is essentially flat with a
slope on the southwest corner. Maplewood Creek traverses the southwest
corner of the site, and an existing wetland spills over into the northwest corner.
Mr. Erickson noted that public services are provided by Fire District #25,
Renton water and sewer, and Renton School District.
Mr. Erickson explained that existing King County zoning is R-4 (four units per
gross acre), and R-8 (eight dwelling units per net acre) zoning is proposed, as
the site is designated Residential Single Family under the City's Comprehensive
Plan. Reviewing the fiscal impacts of the proposed annexation, he indicated
that the City will realize a surplus of $4,727 at full development, assuming an
increase to 209 single-family homes and a new home value of $290,000. The
one-time parks acquisition and development cost is estimated at $111,182.16.
In conclusion, Mr. Erickson stated that the proposed annexation will further
City business goals, is consistent with City policies for annexation, and meets
Boundary Review Board objectives. He noted that except for parks, no major
services issues were identified.
February 9, 2004 Renton City Council Minutes Page 43
Responding to Councilman Persson's inquiry regarding the status of the Tydico
Annexation, Mr. Erickson reported that the applicant is working on moving the
existing use off the site.
Public comment was invited.
Charlie Conner, 846 108th Ave. NE, Bellevue, 98004, acknowledged that
people both within and outside of the annexation area have enjoyed the open
space, and he realizes that it is difficult for them to see the density of their
neighborhood change. He indicated that the proposed annexation and
development will result in better public services, a safer street, flood control,
and more parks. Mr. Conner stated that the Growth Management Act mandates
that most growth must be inside the urban growth boundary, and a traffic study
has determined there is adequate traffic capacity to serve the new communities.
Mr. Conner also noted that some material was moved to one of the properties,
and a permit is pending with King County.
Anthony J. Glazewski, 13225 138th Ave. SE, Renton, 98059, opposed the
proposed annexation, and claimed that the fiscal impact analysis figures quoted
at the last public meeting on this matter indicated that the City would realize a
deficit rather than a surplus. He commented on the inadequate park at the
developer's nearby Sienna subdivision, and on the safety issues associated with
"roller coaster road" or 138th Ave. SE.
Roy Vavak, 13418 138th Ave. SE, Renton, 98056, supported the proposed
annexation, saying that the traffic problems will be better handled after
development. Mr. Vavak reported that he toured the Sienna subdivision and
was impressed with the quality of the construction. Additionally, he
highlighted the benefits of being able to access a sewer system if needed.
August Gumser, 13640 SE 135th St., Renton, 98059, stated that the type and
number of houses that are to be built next to the current housing will adversely
affect property values and the current residents' way of life. Claiming that the
proposed zoning will double Renton's permit and property tax receipts while
having a minimal impact on the additional services required, Mr. Gumser
stressed that money has become more important than the people.
Stephanie Glazewski, 13225 138th Ave. NE, Renton, 98059, expressed her
concern that trees would be removed, leaving her with an unobstructed view of
the new houses. She also expressed her concern that the new development will
cause an increase in traffic, and negatively affect the quiet surroundings.
Eileen Cluphf, 13632 SE 135th St., Renton, 98059, opposed the proposed
annexation, and stated that construction has already started. Pointing out that
the land slopes into her property, she expressed concern about flooding, and
questioned whether a retaining wall will be constructed between the current and
new housing.
In response to citizen concerns regarding notification of the pending
annexation, Mr. Erickson stated that 104 people within the site and in the
surrounding area were notified of the public hearing. He pointed out that the
site is still within King County, and any construction operations are King
County authorized. Regarding the fiscal impact analysis, Mr. Erickson
indicated that although the figures have changed somewhat since the previous
public meeting on this matter on August 4, 2003, a surplus of $1,285 at full
February 9, 2004 Renton City Council Minutes Page 44
development was estimated at that time compared to a surplus of $4,727 now.
Mr. Erickson attributed this to different levy rates and an increase in the
estimated number of units at full development from 200 to 209.
In regards to the development process, Mr. Erickson explained that annexations
are exempt from SEPA (State Environmental Policy Act), and are considered
non -project activities. When a project proposal is submitted, concerned parties
are notified of the comment period and signs are posted at the site. The City's
Environmental Review Committee reviews the project, and the determination
can be appealed. He stressed that public comment will be solicited at the
project level; however, the site must first be annexed by Renton.
At the request of Council Corman, Ms. Cluphf and Mr. Gumser pointed out the
location of their properties on the annexation site map.
John Skochdopole, Conner Homes Company, 846 108th Ave. NE, Bellevue,
98004, stated that five tot -lot parks are planned for the Carlo property, and full
curb, gutter, and sidewalk improvements are planned along Duvall Ave. NE
(138th Ave. SE). Regarding the grading activity currently underway, Mr.
Skochdopole explained that material was moved onto the site and stockpiled,
and a permit is pending with King County.
In response to Councilman Corman's inquiry, Mr. Skochdopole stated that a
stormwater retention facility is planned for the Maplewood Creek area at the
southwest corner of the site.
Mayor Keolker-Wheeler pointed out that the City is required by the State
Growth Management Act to annex property up to the urban growth boundary,
and the proposed annexation site is within the City's potential annexation area.
There being no further public comment, it was MOVED BY PERSSON,
SECONDED BY LAW, COUNCIL CLOSE THE PUBLIC HEARING.
CARRIED.
MOVED BY CLAWSON, SECONDED BY PALMER, COUNCIL ACCEPT
THE 50% DIRECT PETITION TO ANNEX FOR THE CARLO
ANNEXATION, AND AUTHORIZE THE ADMINISTRATION TO SUBMIT
A NOTICE OF INTENT TO ANNEX PACKAGE TO THE BOUNDARY
REVIEW BOARD FOR KING COUNTY AND PREPARE A PREZONE
ORDINANCE FOR R-8 ZONING FOR CONSIDERATION AT A SECOND
PUBLIC HEARING.*
Councilman Corman noted that the proposed R-8 zoning for the site seems to
be compatible with the zoning of the surrounding areas, and he questioned
whether zoning compatibility issues would be reviewed during the development
process. Mr. Erickson pointed out that Renton's Comprehensive Plan land use
designation only allows R-8 and Residential Manufactured Homes zoning in
this area, and confirmed that any compatibility issues can be commented on at
the project level.
*MOTION CARRIED.
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:
February 9, 2004 Renton City Council Minutes Page 45
• Registration for adult softball began today. Six different leagues are
offered and it is anticipated that there will be sixty teams signed up for the
April 26 through July 15 spring season.
• The City of Renton places a strong emphasis on high quality streets. When
the City receives a pothole complaint, it strives to repair it within 48 hours
when possible. However, pavement surface flaws could be the result of
other types of work, such as temporary trench repairs over utility crossings
or other construction work. These repairs will take more time to be
permanently restored.
• The City will sponsor a series of Natural Yard Care workshops beginning
in March. A variety of safe and effective techniques will be taught through
a series of five hands-on workshops.
AUDIENCE COMMENT
Roslyn Burns, 2007 NE 12th St., Renton, 98056, thanked the City for its
Citizen Comment: Burns -
support of her group's project pertaining to local government. She also praised
Local Government Project,
the City for its support of arts and musical programs, such as the Renton Youth
Arts & Musical Programs
Symphony Orchestra.
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 February 2, 2004. Council concur.
February 2, 2004
Appeal: Harrington Square
City Clerk reported appeal of Hearing Examiner's decision on the Harrington
Site Approval, Shreve &
Square mixed -use project (SA-03-066); two appeals filed - one by David
Gevers, SA-03-066
Nielsen, 2256 38th Pl. E., Seattle, 98112, representing Michael Shreve; and the
other by Bob Gevers, 900 Kirkland Ave. NE, Renton, 98056, both accompanied
by the required fee. Refer to Planning and Development Committee.
Lease: Intensive Asset
Community Services Department recommended approval of a three-year lease
Management, 200 Mill Bldg
with Intensive Asset Management, Inc. for the sixth floor of the 200 Mill
(6th Floor)
Building. Revenue generated is $40,000 per year. Refer to Finance
Committee.
Transportation: TIP (2004- Transportation Systems Division recommended approval of the 2004
2009) Line Item Reallocation reallocation of projects by line item within the 2004-2009 Transportation
Improvement Program appropriation of $8,460,400 for the Transportation
Capital Improvement Fund 317. Refer to Transportation (Aviation) Committee.
Airport: Kenmore Air Harbor Transportation Systems Division requested authorization to initiate lease
Lease, 608 Building negotiations with Kenmore Air Harbor, Inc. for the 608 Building at the Airport.
Refer to Transportation (Aviation) Committee.
Transportation: F1exPass Transportation Systems Division recommended approval of a contract with
Program, King County (Metro) King County and Sound Transit to continue the FlexPass Commute Trip
& Sound Transit Reduction Program for City employees in the amount of $21,450 for 2004-
2005. Council concur. (See page 47 for resolution.)
CAG: 01-044, East Valley Lift Utilities Systems Division recommended approval of Addendum #2 to CAG-
Station Replacement, RH2 O1-044, East Valley Lift Station Replacement contract with RH2 Engineering,
Engineering Inc., for additional engineering services in the amount of $56,353. Council
concur.
MOVED BY PERSSON, SECONDED BY CORMAN, COUNCIL APPROVE
THE CONSENT AGENDA AS PRESENTED. CARRIED.
February 9, 2004 Renton City Council Minutes Page 46
OLD BUSINESS
Utilities Committee Chair Clawson presented a report regarding the adjustment
Utilities Committee
of appropriation of funds for the Water Utility capital improvement projects
Utility: Water & Sewer
and the contract for telemetry system programming. The Committee concurred
Telemetry System
with the recommendation of the Planning/Building/Public Works Department
Programming, RH2
that Council approve the transfer of $50,000 within the 2004 appropriation of
Engineering, Fund Transfer
funds for Water Utility capital improvement projects. Funds in the amount of
$20,000 from the Well 9 Rehabilitation Account
(421.500.18.5960.34.65.55567), and funds in the amount of $30,000 from the
Water Pump Station Rehabilitation Account (421.500.18.5960.34.65.55530)
will be transferred to the Water Telemetry Systems Improvements Account
(421.500.18.5960.34.65.55120).
The Committee further recommended that the Mayor and City Clerk be
authorized to sign the consultant contract with RH2 Engineering, Inc., in the
amount of $25,101.35 to program the telemetry system. MOVED BY
CLAWSON, SECONDED BY PALMER, COUNCIL CONCUR IN THE
COMMITTEE REPORT. CARRIED.
Planning & Development Planning and Development Committee Vice Chair Clawson presented a report
Committee regarding the adoption of the 2002 National Electrical Code. All adopted codes
Development Services: used by the City of Renton are updated and published in a three-year code
National Electrical Code cycle. The State Legislature previously reviewed and adopted the 2002
(2002) Adoption National Electrical Code, which then went to the City of Renton for
amendments and adoption.
The Committee recommended concurrence in the recommendation of staff that
Council approve adoption of the latest publication of the 2002 National
Electrical Code, with City of Renton amendments. Upon approval by Council,
the provisions will be adopted and codified in accordance with RCW 19.28.
The Committee further recommended that the ordinance regarding this matter
be presented for first reading. MOVED BY CLAWSON, SECONDED BY
LAW, COUNCIL CONCUR IN THE COMMITTEE REPORT.*
Councilman Clawson explained that the amendments to the 2002 National
Electrical Code were developed with neighboring cities Bellevue, Kirkland,
Redmond, and Mercer Island to provide consistency in code enforcement.
*MOTION CARRIED. (See page 47 for ordinance.)
Finance Committee Finance Committee Chair Corman presented a report recommending approval
Finance: Vouchers of Claim Vouchers 223232 - 223588 and one wire transfer totaling
$3,170,843.19; and approval of Payroll Vouchers 48943 - 49168, one wire
transfer and 569 direct deposits totaling $1,791,374.52. MOVED BY
CORMAN, SECONDED BY NELSON, COUNCIL CONCUR IN THE
COMMITTEE REPORT. CARRIED.
Finance: Bad Debt Write Off Councilman Corman reported that the Finance Committee was surprised at
some of the names on the uncollectible debt list, and requested that the
Administration send reminder bills to Waste Management of Orange County,
AnMarCo, Bonnell, and Bryant.
February 9, 2004 Renton City Council Minutes Page 47
ORDINANCES AND
The following resolution was presented for reading and adoption:
RESOLUTIONS
Resolution #3685
A resolution was read authorizing the Mayor and City Clerk to enter into an
Transportation: FlexPass
interlocal cooperative agreement with King County and Sound Transit for the
Program, King County (Metro)
sale of F1exPasses to City of Renton employees by King County. MOVED BY
& Sound Transit
CLAWSON, SECONDED BY NELSON, COUNCIL ADOPT THE
RESOLUTION AS READ. CARRIED.
The following ordinance was presented for first reading and referred to the
Council meeting of 2/23/2004 for second and final reading:
Development Services:
An ordinance was read amending Sections 4-5-040.A and C and adding a new
National Electrical Code
Section, 4-5-040.D, of Chapter 5, Building and Fire Prevention Standards, of
(2002) Adoption
Title IV (Development Regulations) of City Code by adopting the current
National Electrical Code and amendments. MOVED BY NELSON,
SECONDED BY CLAWSON, COUNCIL REFER THE ORDINANCE FOR
SECOND AND FINAL READING ON 2/23/2004. CARRIED.
NEW BUSINESS
Councilwoman Nelson reviewed current Renton School District announcements
School District: Activities
and activities, which included the finalists of the National Merit Scholarship
Program, the Hazen High School group Divina Voce's upcoming concert, the
School Safety Initiative pilot program, and the Rotary Club of Renton's
selections for Teachers of the Month.
ADJOURNMENT
MOVED BY NELSON, SECONDED BY CORMAN, COUNCIL ADJOURN.
CARRIED. Time: 8:53 p.m.
60 .► 4. wale7'
BONNIE I. WALTON, City Clerk
Recorder: Michele Neumann
February 9, 2004
RENTON CITY COUNCIL COMMITTEE MEETING CALENDAR
Office of the City Clerk
COUNCIL COMMITTEE MEETINGS SCHEDULED AT CITY COUNCIL MEETING
February 9, 2004
COMMITTEE/CHAIRMAN DATE/TIME AGENDA
COMMITTEE OF THE WHOLE MON., 2/16 No Meeting (Presidents' Day)
(Persson)
MON., 2/23 Emerging Issues
5:30 p.m. (Council Conference Room)
6:00 p.m. End of Year Financial Report;
2004 Growth Management Act Update
(Council Chambers)
COMMUNITY SERVICES
(Nelson)
FINANCE MON., 2/23 Vouchers;
(Corman) 4:30 p.m. Intensive Asset Management Lease for
Sixth Floor of 200 Mill Building
PLANNING & DEVELOPMENT THURS., 2/19 R-1 Zone Community Separators (Rollins
(Briere) 2:00 p.m. Correspondence);
Density Credit Transfers (Petrie
Correspondence)
PUBLIC SAFETY
(Law)
TRANSPORTATION (AVIATION) THURS., 2/19 Tenant Selection for 608 Building at
(Palmer) 4:00 p.m. Airport;
2004 Reallocation of Transportation
Capital Improvement Fund 317
UTILITIES THURS., 2/19 Holmes Sewer Main Extension Latecomer
(Clawson) 3:00 p.m. Request
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.
JOHNSON ANNEXATION PUBLIC MEETING
COUNCIL CONSIDERATION OF PROPOSED ANNEXATION
WITH R-8 ZONING
February 9, 2004
The City is in receipt of a 10% Notice of Intention to Commence Annexation Petition from a
property owner in the proposed annexation area. This petition has signatures representing
approximately 83% of the area's 14.22 acres. The subject site is within the City's East Renton
Plateau Potential Annexation Area and is designated Residential Single Family (RS) on the
City's Comprehensive Plan Land Use Map (see back of handout). It lies between 142nd Avenue
SE and 144t Avenue SE, if extended, south of NE 9th Street, if extended.
This site currently has King County's R-4 zoning and there are seven single-family detached
dwellings on it. Proposed prezoning is R-8 (8 units per net acre). This is slightly more dense
than what would be allowed under the County's R-4 zoning since densities up to 6 units per
gross acre are relatively easy to achieve with bonuses and/or TDRs. On a typical 10 acre site the
difference would only be four units (64 units under Renton's R-8 zoning versus 60 units under
the County's R-4 zoning with bonuses). Renton's zoning deletes critical areas and streets from a
site's gross acreage whereas the County's zoning does not. Also, the County's zoning allows
both attached and detached units. With the City's proposed R-8 zoning, the site could
accommodate approximately 93 single-family detached dwelling units at full development.
Under state law, direct petitions to annex are initiated by property owners representing at least
10% of the annexation area's acreage. Council is then required to hold a public meeting within
60 days of its submittal to decide whether it will accept, reject or geographically modify the
proposed annexation.
If the Council decides to accept this proposed annexation, it will typically:
1. Authorize the circulation of a 50% Direct Petition to Annex based upon a majority of
acreage and a majority of registered voters or a 60% Direct Petition based upon assessed
value;
2. Decide whether to require the simultaneous adoption of zoning upon annexation
consistent with the City's Comprehensive Plan Land Use Map; and,
3. Decide whether to require property owners within the annexation area to assume their fair
share of the City's existing indebtedness.
Council Hearing Handout 12-15-03.doc\
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Figure 3: Existing Structures Map
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NT 16 January 2004
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Johnson Annexation
Annexation Public Meeting
February 9, 2004
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Existing Conditions
• PAA - Within Renton's Potential Annexation Area
• Location - East of 142nd Ave SE and south of NE 9th
St, if extended.
• Size - ± 15.66 acres, Including abutting street ROW
• Uses - 7 existing single-family dwellings
• Boundaries - site abuts Renton on north, west side of
142nd Ave SE on west, centerline of NE 9th St, if
extended, on the south and Jericho Ave NE, if extended,
on the east
• SuMdencv - Signatures certified by King County on
January 29, 2004
Existing Conditions - Structures
• Currently 7 single- o"
a +.
family detached Q
houses on site
t] Z .
Structures Map
FA
Existing Conditions - Topography
• Site slopes from
s` Y ._-, ,, %'•' t;
west to east at 3%
sloe
• A slight ravine
exists near center
of site
1=
Topography Map
Existing Conditions -Sensitive Areas
• Wetland exists near
SE comer of site ID "
• Honey Creek runs G
north east of site
�o
Sensitive Areas Map
3
Existing Conditions - Environmental
• Topography - essentially
flat with slight slope
• Environmental
constraints - Honey
Creek parallels eastern
boundary of annexation
site
Looking southwest from 142nd
Avenue SE near NE 9th Street
Existing Conditions - Public Services
• Fire - Fire District 25
• Utilities
— Within Renton Water
Utility Service Area
— Within Renton Sewer
Utility Service Area
• Schools
— Within Renton School
District
L+t
King County Comp Plan
Designation and Current Zoning
K.C. Land Use Map -
Urban Residential 4-12du/ac
K.C. Zoning -
R-4 - Residential 4 du/ac #;
Site E .
County Zoning Map
11
Renton Comp Plan Designation
and Proposed Zoning
Renton Comp Plan Lan.
Use Mau - Residential
Single Family
Proposed Renton Zonin
Mau - R-8 (8 du/net acn
Site
Renton Comprehensive Plan
Requested Addition
• On February 5, 2003 property owner to south
requested inclusion in annexation
• The Carolyn Biglow property would add 2.39
acres and abutting ROW
• RCW 35A.14.120 allows legislative body to
geographically modify the 10% proposal
• Appears to be logical extension of annexation
• Would increase number of units at full
development from 91 to 106
Johnson Annexation if Amended
• Biglow Property
adds 2.59 acres
including 142nd ° a
C,"
Ave SE ROW
it
• Biglow property }
a•
adds one additional .....
. ... .................
house now and up
'r•
.
to 15 at buildoutr4
Biglow Property_rtjJg
5
Fiscal Impact Analysis
• General Fund cost and revenue
implications
— Assumes potential of ± 91 single-family
homes at full development based upon city-
wide R-8 Zone average or ±106 homes if
Biglow property added
— Assumes new assessed home value of
$300,000
— Assumes 7 dwellings remaining on site
Fiscal Impact Analysis as Proposed
Estimated one-time Parks Acquisition and Development Cost
of $48,289 attributable to this annexation.
Fiscal Impact Analysis w/ Biglow Property
Estimated one-time Parks Acquisition and Development Cost
of $60,212 for this annexation with Biglow property added.
Conclusion
• Furthers City Business Goals
• Generally consistent with City annexation policies
• Consistent with City policies for single-family
rezones
• Generally consistent with Boundary Review
Board criteria
• Minor revenue loss at full development
• Surface Water indicates some potential flooding in
area - suggests mitigation with future development
• Except for parks no major service issues identified
• Best interests and general welfare of City served
Recommended Motion:
• Accept Johnson 10% Notice of Intent to
Commence Annexation Petition
• Authorize circulation of a 60% Direct Petition to
Annex (reinstated assessed value method)
• Amend southern boundary to include abutting
2.39 acre Biglow property
• Require the R-8 zoning consistent with Comp Plan
• Require property owners to assume their
proportionate share of City's indebtedness
c
i
u
K
fi d ct 6mesp onden(e CITY OF RENTON
-or Jof nsola 44nerab,l
Pwl;l: n ce mg FEB 0 5 2004
a -/L4 /o `f f'- a'� - f - o�OD �, RECEIVED
CITY CLERK'S OFFICE
l 2 I i o I y a K-d ft-" - SE
R-e,v,� LvA - 41 go 6 9.4
0-a-t.c kv,� a-t 2-o6-49-7-0-79s
pL 2ocv- Amy- 53fg
WAI
CARLO ANNEXATION PUBLIC HEARING
COUNCIL CONSIDERATION OF 50% DIRECT PETITION TO ANNEX
AND R-8 PREZONING
February 9, 2004
At the 10% Notice of Intent Public Meeting on August 4, 2003 Council authorized the
circulation of the 50% Direct Petition to Annex with provisions requiring future zoning
consistent with the City's Comprehensive Plan and requiring property owners to assume their
fair share of the City outstanding indebtedness upon annexation. The subject site is within the
City's Potential Annexation Area and is designated as Residential Single Family on the City's
Comprehensive Plan Land Use Map.
The City is now in receipt of the 50% Direct Petition to Annex from property owners and
registered voters in the proposed Carlo Annexation. King County's Department of Assessments
has certified that the signatures on the petition represent a majority of the annexation site's
acreage and the Records, Elections and Licensing Division has certified that a majority of the
registered voters residing within it have also signed the petition.
The annexation site appears to have reasonable boundaries. It abuts the City on portions of its
northern and western boundaries (see reverse side). 136th Avenue SE (Bremerton Avenue NE), if
extended, would define its western boundary and 140th Avenue SE, if extended, would define its
eastern boundary. It currently consists of 20 parcels with an estimated 18 single-family detached
dwellings on it.
Council is required to hold tonight's public hearing in order to decide whether it will accept,
geographically modify, or reject the proposed annexation and, if it accepts it, whether it will
forward it on to the Boundary Review Board. If the Council accepts the 50% Direct Petition
tonight, it will also hold the first of two public hearing on prezoning the annexation site R-8,
consistent with the Comprehensive Plan Land Use Map RS designation for it.
Council Hearing Handout 02-09-04.doc\
I Proposed Carlo Annexatic
Carlo Annexation
Annexation and First Prezoning
Public Hearing
February 9, 2004
Merritt �
L 20.8 ac.
Stoneridge}
�Hen3.1 ac. one QI 28.9ec..__J
. 231 ec
L_.._ <�2
Johnson i:_; . .
it
.�� ( J Anderson � ,
ttt„
Tydreo
9 8 ac._
Carlo
~'
Ball
es 1 i
38.3 ac. '�� _ 9.0 a .... i
Maplewood
Mosier Highlands r
1I 35.8 ac. vac—
. . `
{
1
Existing Conditions
• PAA - Within Renton's Potential Annexation Area
• Location - Between 136th Ave SE on the west and
140th Ave SE on the east, city limits and SE 132nd
Street on the north, and SE 135th, if extended, on
the south.
• Size - ± 37 acres, including abutting street ROW
• Current Use - 17 single-family dwellings
• Boundaries - site abuts Renton on portions of its
northern and western boundaries
Existing Conditions
• Initially submitted in June, 2003
• 10% Public Hearing held on August 4, 2003
• 50% Direct Petition to Annex received on
October 6, 2003
• 50% Direct Petition signatures certified by
King County on December 1, 2003
Existing Conditions - Vicinity
COT O 1 1. k A ,. A l jj
• Site is immediately
east of Tydico
Annexation aim St.
• Can4t come into SITE
City Gefore Tydico ti
Annexation
Vicinity Map a
2
Existing Conditions - Structures
c if
• Currently 17 single
family dwellings
on siteAid, Y
3 aA4 a r fYa 't a
Structures Map 16� !
Existing Conditions - Topography
ter -
i
• is basically
Site
flat except for
(,
southwest comer::
25%-40%
where
slopes exist
y
Topography Map
Existing Conditions -Sensitive Areas
... _.
12
• Maplewood Creek
�;::.:.:
traverses southwest
j
comer of site.
-J
tr_
• An existing wetland
'
r- i
near 138th Ave SW�
spills over into they,
I
northwest comer
site
r
I
t
Sensitive Areas Map
,' a
3
Existing Conditions -
Environmental
• Tono¢ranhv - essentially
flat with slight slope
• Environmental
constraints -
Maplewood Creek
traverses tip of southeast
comer of annexation site
Looking northwest from 138th
Avenue SE near SE 132nd St.
Existing Conditions - Public Services
• Fire - Fire District 25
• Utilities
— Within Renton Water
Utility Service Area
— Within Renton Sewer
Utility Service Area
• Schools
— Within Renton School
"� •�:
District
'
11
King County Comp Plan
Designation and Current Zoning
K.C. Land Use Man -
Urban Residential
4-12du/ac
K.C. Zonine -
R4 - Residential 4 du/ac
County Zoning Map
Renton Comp Plan Designation
and Proposed Zoning
Renton Comp Plan Land
Use Mao - Residential
Single Family
Proposed Renton Zonine
Mao - R-8 (8 du/net acre)
Renton Zoning
Fiscal Impact Analysis
• General Fund cost and revenue
implications
— Assumes potential of ± 209 single-family
homes at full development based upon city-
wide R-8 Zone average (6.4 du/ac)
— Assumes assessed home value of $290,000
— Assumes 18 dwellings currently on site
5
Fiscal Impact Analysis
Estimated one-time Parks Acquisition and Development Cost
of $111,182.16
Conclusion
• Furthers City Business Goals
• Generally consistent with City annexation policies
• Consistent with City policies for single-family
rezones
• Generally consistent with Boundary Review
Board criteria
• Revenue surplus at full development
• Some potential flooding in area suggesting
possible mitigation with future development
• Except for parks no major service issues identified
• Best interests and general welfare of City served
Recommended Motion:
• Accept the certified 50% Direct Petition
to Annex for the Carlo Annexation
• Authorize Administration to send
Notice of Intent package to Boundary
Review Board for King County
• Authorize Administration to prepare a
prezoning ordinance for R-8 zoning for
consideration at second public hearing
r-
CITY OF RENTON
MEMORANDUM
DATE: February 9, 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:
ADMINISTRATIVE, JUDICIAL, AND LEGAL SERVICES DEPARTMENT
• Many residents give their time and share their talents as appointed members of a Board, Commission, or
Advisory Committee. Current vacancies exist on the Human Rights and Affairs Commission, Library Board,
Municipal Arts Commission, and Planning Commission. To apply for a vacancy, please contact the Mayor's
Office at 425-430-6500 or download an Community Service application from the City's website at
www.ci.renton.wa.us.
COMMUNITY SERVICES DEPARTMENT
• The annual Preschool Information Night was held at the Community Center on Wednesday, February 4`n
Fifteen local preschools presented information about their curriculum, instructors, fees, etc., to over 400
interested parents.
• The Renton Rookies youth athletic program started last week with 95 boys and girls ages four to six. In the last
year more than 300 children have participated in this program, the goal of which is to strengthen self-esteem
through a fun, safe, non-competitive environment where children can feel good about participating in youth
sports.
• Valley Community Players presents Ten Little Indians, the famous Agatha Christie mystery, at Carco Theatre
beginning Friday, February 60', through Sunday, February 290. Call 425-226-5190 for ticket information.
• Fifty-four athletes represented Renton's Special Populations sports program at the Special Olympics regional
basketball tournament in Issaquah on Sunday, February 8 b. Gold medal winners will advance to the state
competition in March. Athletes have been training twice a week since January 50' to prepare for these
competitions
• The Renton Valley Hoop Shoot for children 14 years and younger will be held at 6:00 p.m. on Monday,
February 90i, at the Community Center. More than 100 boys and girls in four different age divisions compete
each year for the opportunity to represent Renton in the all -valley competition in March.
• Registration for adult softball begins today. Six different leagues are offered and it is anticipated that there
will be sixty teams signed up for the spring season from April 260' through July 15t'.
ECONOMIC DEVELOPMENT, NEIGHBORHOODS, AND STRATEGIC PLANNING DEPARTMENT
• The City has launched its 2004 Grant Program and has $50,000 available for neighborhood improvement
projects. Grant applications are due on Friday, March 190', at 5:00 p.m. For grant ideas, you are invited to
attend the Grant Workshop on Wednesday, February 18ffi, or check out the project ideas on the City's website
at www.ci.renton.wa.us. For more information about the program, call Norma McQuiller at 425-430-6595.
Administrative Report
February 9, 2004
Page 2
PLANNINGBUILDING/PUBLIC WORKS DEPARTMENT
• The City of Renton places a strong emphasis on high quality streets. We strive to maintain a citywide average
overall pavement condition index (OCI) rating of 80 out of 100, which is a high rating compared to most other
cities. The current overall average OCI rating is 82. Part of this effort involves repairing potholes quickly. In
addition to preventing damage to vehicles, quick repair of potholes can extend the life of a street by reducing
the amount of damaging water that gets into and under the pavement. When the City receives a complaint
about potholes from a citizen, we strive to repair it within 48 hours when possible. However, it should be
noted that surface flaws in pavement could be the result of other types of work, such as temporary trench
repairs over utility crossings or other construction work. These repairs will take more time to be permanently
restored. Anyone wishing to report a pothole or other problems with City streets may call the City Shops at
425-430-7400 between 6:00 a.m. and 3:30 p.m., Monday through Friday. The complaint will be given a work
order number and crews will be dispatched quickly to assess the problem.
• The City will sponsor a series of Natural Yard Care workshops beginning in March. You are invited to join
with your neighbors to learn about a variety of safe and effective natural yard care techniques through a series
of five hands-on workshops. If you're interested in participating or learning more about this program, please
contact Spencer Orman at 425-430-7396 or via e-mail at Borman@ci.renton.wa.us.
POLICE DEPARTMENT
• During the week of February 10-16, 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
Februar 10-16
Date
6:00 a.m. to Noon
Noon to 6:00 p.m.
All Da
Motorcycles/Cars
Motorcycles/Cars
Radar Trailer
February 10, Tuesday
SW Sunset Blvd (tums/speed)
1400 Houser Way (speed)
SW 5 /Stevens Ave
400 blk, Cedar Ave S (speed)
Rainier Ave N (speed)
SW
February 11, Wednesday
I-405/MVH off ramp (improper
SW 43 St (speed)
SW 5 /Stevens Ave
turns)
3500 blk, Monterey Ave NE
SW
SW 43`d St/Talbot (red light)
(speed)
February 12, Thursday
Lk Wash Blvd (speed)
Maple Valley Hwy (speed)
3500 blk, Monterey
SW Sunset Blvd (tums/s eed)
700 blk, SW Grady Way (speed)
Ave NE
February 13, Friday
700 blk, SW 43rd St (speed)
2700 blk, Benson Dr (speed)
3700 blk, Sunset
Rainier Ave N (speed)
City Hall/Benson Rd (lane
Blvd NE
change)
February 16, Monday
1100 blk, Carr Rd (speed)
Rainier Ave N (speed)
200 blk, S 2" St
Rainier Ave N (speed)
1400 Houser Way (speed)
CITY OF RENTON COUNCIL AGENDA BILL
Submitting Data:
Dept/Div/Board..
Staff Contact......
AJLS/City Clerk
Bonnie I. Walton
Subject:
Appeals of Hearing Examiner's Decision dated
12/15/2003, regarding approval of the Harrington
Square Association project at 950 Harrington Avenue.
File No. LUA-03-066, SA-H, ECF
Exhibits:
A. City Clerk's letter (1/30/2004)
B. Appeals (12/23/2003 and 1/26/2004)
C. Hearing Examiner's Responses to Requests for
Reconsideration (12/29/2003 and 1/12/2004)
D. Requests for Reconsideration (12/23/2003,
12/29/2003, and 12/30/2003)
E. Hearing Examiner's Report & Decision
(12/ 15/2003 )
For Agenda of: 02/09/2004
Agenda Status
Consent ..............
Public Hearing..
Correspondence..
Ordinance .............
Resolution............
Old Business........
New Business.......
Study Sessions......
Information .........
Recommended Action: Approvals:
Refer to Planning and Development Committee. Legal Dept.........
Finance Dept......
Other ...............
Fiscal Impact: N/A
Expenditure Required... Transfer/Amendment.......
Amount Budgeted....... Revenue Generated.........
Total Project Budget City Share Total Project..
SUMMARY OF ACTION:
Appeal filed by David Nielsen, Representative for Michael Shreve, accompanied by required $75
fee on 12/23/2003; and
Appeal filed by Bob Gevers, accompanied by required $75 fee received on 1/26/2004.
X
Rentonnet/agnbilU bh
"R
CITX OF RENTON
MU City Clerk
t
Kathy Keolker-Wheeler, Mayor
Bonnie 1. Walton
January 30, 2004
APPEALS FILED BY: 1) David Nielsen, Representative for Michael Shreve
2) Bob Gevers
RE: Appeals of Hearing Examiner's decision dated 12/15/2003 regarding the Harrington
Square Association's application for construction of a mixed use project in the Center
Suburban zone on a 118,366 square foot site located at 950 Harrington Avenue. (File No.
LUA-03-066, SA-H, ECF)
To Parties of Record:
Pursuant to Title IV, Chapter 8, Renton City Code of Ordinances, written appeals of the hearing
examiner's decision on the Harrington Square mixed use project have been filed with the City
Clerk. ,
In accordance with Renton Municipal Code Section 4-8-110F, within five days of receipt of the
notice of appeal, the City Clerk shall notify all parties of record of the receipt of.the appeals.
Other parties of record may submit letters in support of their positions within ten.(10) days of the
dates of mailing of the notification of the filing of the appeals, The deadline for submission of
additional letters is February 9,. 2004_
NOTICE IS HEREBY GIVEN that the .written appeals and other pertinent documents will be
reviewed by the Council's Planning and Development Comnmtee at 2,00 p.m. on March 4, 2004
in the Council Chambers, 7` floor of -the Renton Municipal Building, 1055 South Grady Way, `
Renton, 9. 8055. The recommendation of the Committee will be presented for consideration by
the full Council at a subsequent Council meeting.
Attached is a copy of the Renton Municipal Code regardingappeals of Hearing Examiner
decisions or recommendations. Please note that the City Council -will be considering the merits
of the appeals based upon the written record previously established. Unless a showing can be
made that additional- evidence could not reasonablyhave been.available At -the prior:hearing held
by the. Hearing Examiner; no further evidence or testimony on this. matter will be accepted by the
City Council.
For additional information or assistance, please feel free to call.
Sincerely,
1055 South Grady Way - Renton, Washington 98055 - (425) 430-6510 / FAX (425) 430-6516 R E N T O N
® This paper contains 50 % recycled material, 30 % post consumer
AHEAD OF THE CURVE
City of Renton City Code
Title IV - Building
Chapter 8 - Hearing Examiner
ion 16 - Appeal
4-8-16: APPEAL:
Unless an ordinance providing for review of decision of the Examiner requires review thereof by the Superior Court, any
interested party aggrieved by the Examiner's written decision or recommendation may submit a notice of appeal to the City
Clerk upon a form furnished by the City Clerk, within fourteen (14) calendar days from the date of the Examiner's written
report. The notice of appeal shall be accompanied by a fee in accordance with the fee schedule of the City. (Ord. 3658, 9-13-
82)
A. The written notice of appeal shall fully, clearly and thoroughly specify the substantial error(s) in fact or law which in the
record of the proceedings from which the appellant seeks relief. Facsimile filing of a notice of appeal is authorized
pursuant to the conditions detailed in Renton City Code Section 4-8-1 IC. (Ord. 4353, 6-1-92).
B. Within five (5) days of receipt of the notice of appeal, the City Clerk shall notify all parties of record of the receipt of the
appeal. Other parties of record may submit letters in support of their positions within ten (10) days of the dates of mailing
of the notification of the filing of the notice of appeal.
C. Thereupon the Clerk shall forward to the members of the City Council all of the pertinent documents, including the written
decision or recommendation, findings and conclusions contained in the Examiner's report, the notice of appeal, and
additional letters submitted by the parties. (Ord. 3658, 9-13-82)
D. No public hearing shall be held by the City Council. No new or additional evidence or testimony shall be accepted by the
City Council unless a showing is made by the party offering the evidence that the evidence could not reasonably have been
available at the time of the hearing before the Examiner. If the Council determines that additional evidence is required, the
Council may remand the matter to the Examiner for reconsideration. The cost of transcription of the hearing record shall
be borne by the appellant. In the absence of any entry upon the record of an order by the City Council authorizing new or
additional evidence or testimony, it shall be presumed that no new or additional evidence or testimony has been accepted
by the City Council, and that the record before the City Council is identical to the hearing record before the Hearing
Examiner. (Ord. 4389, 1-25-93)
E. The consideration by the City Council shall be based solely upon the record, the Hearing Examiner's report, the notice of
appeal and additional submissions by parties.
F. If, upon appeal of a decision of the Hearing Examiner on an application submitted pursuant to Section 4-8-IOA and after
examination of the record, the Council determines that a substantial error in fact or law exists in the record, it may remand
the proceeding to Examiner for reconsideration, or modify, or reverse the decision of the Examiner accordingly.
G. If, upon appeal from a recommendation of the Hearing Examiner upon an application submitted pursuant to Section 4-8-1OB
or C, and after examination of the record, the Council determines that a substantial error in fact or law exists in the record,
or that a recommendation of the Hearing Examiner should be disregarded or modified, the City Council may remand the
proceeding to the Examiner for reconsideration, or enter its own decision upon the application pursuant to Section 4-8-1OB
or C.
H. In any event, the decision of the City Council shall be in writing and shall specify any modified or amended findings and
conclusions other than those set forth in the report of the Hearing Examiner. Each material finding shall be supported by
substantial evidence in the record. The burden of proof shall rest with the appellant. (Ord. 3658, 9-13-82)
heanneal.doc
APPEAL - HEARING EXAMINER ATY OF RENTON
WRITTEN APPEAL OF HEARING EXAMINER'S DECISION/RECOMMENDATI(YEICT2 BYN CITY
COUNCIL.
.BILE NO. �y A O -A - d 66 SA - H � E C-F' RECEIVED �; u�f
��� .E i Y CLERK'S OFFICE
APPLICATION NAME: •�/bi?DN S� J AeLy A- S$c� c- ,r A rJF3 , Z. L. C.
The undersigned interested party hereby files its Notice of Appeal from the decision or
recommendation of
the Land Use Hearing Examiner, dated ,Qes G
1. IDENTIFICATION OF PARTY
APPELLANT:
Name: M i AA --A &r-+c- S H-,2avt
Address: /" 0
REPRESENTATIVE (IF ANY)
Name: ,0tr✓ s o ",fz--U s aW
Address: Z Z S 6 3 8T' oz., .
303 i3s3-T-r Y Strt_Mjr, cUA `/8'21 S� z.�' c�A► 9�i!Z
Telephone No. Z06 - WY3- 2" d Telephone No. Z�G 322- l38'!
2. SPECIFICATION OF ERRORS (Attach additional sheets, if necessary)
Set forth below are the specific errors or law or fact upon which this appeal is based:
FINDING OF FACT: (Please designate number as denoted in the Examiner's report)
No. Error:
Correction:
CONCLUSIONS:
No._7?t- Error: of L v.4-z6-72 MA-J AJ RAT OL LA -1 - a'''f �
!S LJAJ .t/az a sSs' Y
Correction: ,4A e0L. e..�-r.rr' DL�>< �2 !f' .tee 'n �! �►+ <-✓ s r�s' � '
f'I/Lt' .Q�7�.�rL'T"M t�1T ?b ,O •sG.Js s 2W, a 2a0.Lr�•+ s '�
OTHER (�tl /�'�� .vim r�e s o No ✓&+2 •�v�
No. 01e� Error: �_ - . �t a a'r�� �- a+y^r' hFi! s ...�o. e.A.'yr.o Tyre' F.v
610 ,&.j Se ?a e4mr7 '
Correction: r4-Pse4 s c-A-,u r h2 V"T2 0 AU TNr s ee.•+ e e l s ie w /1�✓
, !L �3 /�- T t•rtr.J • c.A-t.iZ c,r . 000
3. SUMMARY OF ACTION REQUESTED: The City Council is requested to grant the following
relieL (Attach explanation, if desired)
Reverse the decision or recommendation and grant the following relief.
Modify the decision or recommendation as follows: 4r-CO6 t •'sue
<^Pt...-I8VUf0-W -
Remand to the Examiner for further consideration as follows:
. TN!crolt2��+.q4T.�y ao-.s.✓T cO a TA• • n.r�0 ��d:s
r F•Z��fyp "-rOh vt
e. a tntive Signature Date
NOTE: Please refer to Title IV, Chapter 8, of the Renton Municipal Code, and Section 4-8-110F, for specific appeal
procedures. W��g
Larry QiPA YIW/pl` heappeal.doc/forms
APPEAL - HEARING EXAMINER CITY OF RENTON
WRITTEN APPEAL OF HEARING EXAMINER'S DECISION/RECOMMENDATION TfAIff9m ITY
ALE NO. L UA - 03 - 066 , S A - 1-1-s EC F RECEIVED
APPLICATION NAME:9Q92 R IN G D /V S O [ ARE CITY CLERK'S OFFICE
The undersigned interested party hereby files its Notice of Appeal from the decision or
recommendation of
the Land Use Hearing Examiner, dated DEC _ �.� . 20� �%!9�/ /2� .2 Oo
1. IDENTIFICATION OF PARTY
APPELLANT: / REPRESENTATIVE OF ANT Y OF RENTON
Name: 130.8 CIE ER S Name:
PKL/! ) 2QD4
Address: O E
I��NTO�. l,✓�} �8O S� /0.1ssg..n.
IOCC^Li
YfEB
Telephone No. Telephone No. CITY CLERK'S OFFICE
2. SPECIFICATION OF ERRORS (Attach additional sheets, if necessary)
Set forth below are the specific errors or law or fact upon which this appeal is based:
FINDING OF FACT: (Please designate number as denoted in the Examiner's report)
No. Error:
5 EC 19 T Tt3-c14 HEW 7—
Correction:
CONCLUSIONS:
No. Error:
SEC ,9 i i ACdHE1V 7-
Correction:
OTHER
No. Error:
Correction:
3. SUMMARY OF ACTION REQUESTED: The City Council is requested to grant the following
relief: (Attach explanation, if desired)
Reverse the decision or recommendation and grant the following relief:
I/ Modify the decision or recommendation as follows: 5 C 15 AT % 4 / /`7et'/ r z
Remand to the Examiner for further consideration as follows:
Other
L:!21
Al o° 0
Date
NOTE: Please refer to Title IV, Chapter 8, of the Renton Municipal Code, and Section 4-8-110F, fo�pecific appeal
procedures. "�
heappeal.doc/forms
WRITTEN APPEAL OF HEARING EXAMINER'SIRECOMMENDATION TO RENTON CITY
COUNCIL.
FILE NO: LUA-03-066, SA-H, ECF
APPLICATION NAME: Harrington Square
ATTACHMENT 1
I�I►1�1�1'�F.y
No. 11 Error: The parcel slopes upward to the north from approx. 320 ft to approx. 340 ft
Correction: The portion of the parcel on which the buildings are located, is flat at
328 ft. A very small landscaped corner at the north end slopes upward
from 328 ft to 338 ft and a small comer at the south end slopes downward
from 328 ft to 320 ft.
(see Topographic Survey Drawing by Landmark in Exhibit No.1)
This is very important since the grade elevation on which the buildings will
be build, will be used for determining the height of the buildings.
The attached marked -up drawing is submitted to clarify the determination of
building heights. The darkened outline surrounding the buildings
represent the boundaries of the FLAT portion of the site, at an elevation of
328 feet. (See Attachment 3)
The Hearing Examiner elected not to dispute or even discuss this error in his
response to my request for reconsideration.
A visit by the Council to the site would be very beneficial to observe the
topography of the site.
No. 13 Error. The building has peaks and eaves and will have a varying roofline, again,
culminating in a maximum height of 43 ft. The building's height complies
with code definitions.
Correction: The south building (identified as bldg B) elevations are shown on Drawing
A-201, dated July 9, 2003 submitted as part of Exhibit No.1. The roof
elevation shown is 381 ft with modulations going above the 381 ft.
The building height will therefore be 381-328= 53 ft with some portions
exceeding the 53 ft height, calculated from the site elevation of 328 ft on
which the buildings will be built. The drawing also shows a mezzanine floor
elevation of 367 ft and should the building be 43 ft high, as claimed by
the Hearing Examiner, the roof elevation would be 328 ft + 43 ft--- 371 ft.
This would result in a mezzanine with a space of only 371-367= 4 ft high.
The findings can only be that the buildings will exceed the Maximum
Building Height of 50 ft allowed by Ordinance No.5018 dated 22 Sept.
2003.
Ordinance No.5018, dated 22 Sept., 2003 clearly states that the Maximum
Building Height allowed for this project is 50 ft and that exceeding this
height will require a Conditional Use Permit. (See Attachment 4)
ATrACHA1ENT I (cont.)
A 50 ft building will already reduce the sunlight at sunset for the residences
on Kirkland Ave NE by approx. 2 hours. Allowing higher buildings will only
reduce sunlight even more.
The 43 ft height of the buildings quoted by the Staff member and the Hearing
Examiner can not be substantiated by any of the data submitted by the
developer. It is for this reason that no calculations of building heights have
been provided by the Staff member and the Hearing Examiner. Using the
Site Survey and Building Elevations drawings as I did, clearly show that the
buildings will be taller than 50 ft.
Again, the Hearing Examiner elected not to review and discuss the site
elevations in his response to my request for reconsideration.
Instead, he stated that the buildings comply with the Code requirements even
if it is taller than surrounding structures. This statement is irrelevant to the
fact that the building's height, measured from the site elevation on which the
buildings are going to be built, exceeds the 50 ft height allowed by
Ordinance No. 5018.
ATTACHMENT 2
CONCLUSIONS
No. 8 Error: There will probably be some impacts of the exit garage along NE 9 h street.
Correction: It should be no doubt that there will be a major impact in terms of traffic and
noise based on 6.63 daily average trips per unit. For 210 units, the daily
average will be 1392 trips. The majority of the trips should be directed
towards Sunset Blvd via Harrington Ave NE to alleviate the impact on 9d' st
and Kirkland Ave NE.
The Developer has testified, that the two-way driveway for entering and
leaving the garage on the Harrington Ave NE side, is adequate to handle
the traffic. The exit along NE 90' street was only added for a possible overflow,
and deletion of this exit should have therefore no adverse effect on the garage
traffic.
The Hearing Examiner, in response to my request for reconsideration flatly
stated that his office WILL NOT DEBATE the extent or affect of the
additional traffic. My request for reconsideration did in no way dispute that
a project of this magnitude will have an impact on traffic.
The request was made to redirect the increased traffic towards Sunset Blvd
NE via Harrington Ave NE, rather than towards Kirkland Ave NE via
NE 9' street.
The deletion of the redundant garage exit along NE 9`h street will help to
accomplish this.
SUMMARY OF ACTION REQUESTED:
Modify the decision for recommendation as follows:
DECISION
Add
No. 8 . The height of the buildings as shown on the submitted drawings exceed the Maximum
allowed by the Zoning Code and must be changed to comply with Ordinance
No. 5018, dated 22 September, 2003
Add
No. 9 Delete the REDUNDANT gary exit along NE 9a' street to alleviate traffic congestion -
and noise problems along NE 9 street and Kirkland Ave NE.
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ORDINANCE NO. 5018
Attachment 2.A
HT
ccept for Public uses
"Public Suffix" (P)
ft except when abutting
> zoned R-8, RMH, R-10,
14, RM4, or RM-C, then
ft. 26
the area depicted in RMC
3-095134c, in no case may
lights of commercial,
>idential, or mixed -use
ildings exceed 45 ft.
tximum height for portions
property within 80 ft. of an
8 or R-10 property line
less a modification througl
e plan review process is
in other areas
�► CITN OF RENTON
Hearing Examiner
Kathy Keolker-Wheeler, Mayor Fred J. Kaufman
January 12, 2004
Mr. Robert Gevers
900 Kirkland Avenue NE
Renton, WA 98056
Mr. Larry Rude
Fire Marshal'
City of Renton
1055 South Grady Way
Renton, WA 98055
Dear Mr. Gevers and Mr. Rude:
In order to generate the least amount of additional correspondence and potential confusion about appeal
dates, this office will address both requests for reconsideration in this one document and thereby
establish one appeal date.
Request for Reconsideration — Mr. Gevers
This office has reviewed your request for reconsideration and your letter regarding the appeal date in the
above matter.
First, the appeal date will be reestablished due to.your request for reconsideration and, therefore, by the
issuance of this letter the new appeal date will be found at the,end of this letter.
The curved and skewed nature of the streets in this area makes establishing directions'somewhat
awkward but in no event does that change the decision.
The missing words would be "subject site." -
The elevation change noted is an approximation as it states and is not intended nor does it deceive
parties.
The.City has interpreted "height". to be the calculated average of a sloped -roof building'.s height and
according to staff this .building complies with that interpretation. This office will not review that
interpretation in the context of this review.The building complies with the Code requirements even if it
is taller than -surrounding structures including "if it is taller than single-family homes. The*report was
intended to convey the fact the even single family homes may be taller in theirrespective zones: - Views
are not protected by any right and permitting taller buildings, which the code. allows, will potentially
affect views and shadow. impacts for all of those close to zones where taller buildings may be
established. This is certainly.a consequence of a growing and evolving Cityscape:
This office will not debate the extent or affect of the additional traffic. A project of this magnitude will
definitely increase traffic in the area. As noted in the report, both the Zoning and the Comprehensive
Plan designate this site for increased density and as such, increased traffic was anticipated. .
1055 South Grady Way - Renton, Washington 98055 - (425) 430-6515
TMK a o mn/ainc �n� im rt, jp6m in-/ .,..mot a ., ,
RENTO-N
AHEAD OF THE CURVE
Mr. Gevers
Mr. Rude
January 12, 2004
Page Two
The utilities requirements and necessity of upgrading them will be a determination of the Public Works
Division and Fire Department. The information just clarifies for the parties that it may be required and it
may be costly. The City in its testimony indicated that some costs of infrastructure improvement may be
borne by the City.
In conclusion, yes, the project will change the nature and character of the area but, again, both the
Zoning and Comprehensive Plan mandate larger -scale buildings and increased density. Larger -scale
buildings and increased density will increase the population, noise and traffic in the area. The project
complies with codes, regulations and general interpretations and appears well designed.
There is no reason at this time for the decision to be altered or modified based on your request.
Request for Reconsideration — Mr. Rude, Fire Marshal
At this point it would appear that City Code should appropriately govern what water flow or capacity is
needed and at what stage of development; The question then is who or which department or division has
the authority to interpret and enforce the. code provision. It certainly is not appropriate, in this context,
for this office to make such a determination.: While,this:office may have jurisdiction to make such
determinations in certain circumstances, the conftt here. is of a land use decision. The facts and legal
arguments were not aimed at or directed to the question of authority. The decision on that question will
have to wait for another time. At this point, the decision will not be. altered. If 'life safety" is at issue,
then presumably, the Fire Department can acf'appFapriat6ly in dealing with this situation.
If these determinations are not satisfactory they may be appealed to the Ciy Council. The appeal would
be due no later than January 26, 2004'.
Sincerely,
j®�• -
Fred J. Kaufman
Hearing Examiner
FJK/nt
Cc: Susan Fiala
Michael Shreve
Mayor Kathy Keolker-Wheeler
Members, Renton Planning Commission
Lawrence J. Warren, City Attorney
Transportation Systems Division
Jennifer Henning, Development Services
Holly Graber, Development Services
David Nielsen
Jay Covington, Chief Administrative Officer
Gregg Zimmerman, Plan/Bldg/PW Admin.
Alex Pietsch, Econ. Dev. Administrator
Larry Meckling, Building Official
Utilities System Division
Julia Medzegian, Council Liaison
Janet Conklin, Development Services
;y CITX OF R NTON
..LL Hearing Examiner
J e Tanner, Mayor Fred J. Kaufman
December 29, 2003
Neil Watts
Development Services Devision
City of Renton
1055 South Grady Way
Renton, WA 98055
Dear Mr Watts:
This office has reviewed your request for reconsideration in the above matter.
Since the condition was proposed by your staff, Development Services, if you want the condition
modified, this office has no problem removing the condition as you propose.
The decision is hereby modified and Condition Number 7 shall be removed from the decision.
This office has received word from the City Clerk's office that a separate appeal or request for
reconsideration may be submitted for this application. That may delay the finality of the decision. This
office will notify the various parties when the decision is final.
The appeal period will expire 14 days from today, on January 12, 2004.
If this office can be of further assistance, please feel free to write.
Sincerely,
�—
Fred J. Kaufman
Hearing Examiner
FJK/nt
Cc: Susan Fiala
Michael Shreve
Mayor Jesse Tanner
Members, Renton Planning Commission
Alex Pietsch, Econ. Dev. Administrator
Larry Meckling, Building Official
Jay Covington, Chief Administrative Officer
Councilperson Kathy Keolker-Wheeler
Julia Medzegian, Council Liaison
Janet Conklin, Development Services
David Nielsen
Bob Geevers
Gregg Zimmerman, Plan/Bldg/PW Admin.
Larry Rude, Fire Marshal
Lawrence J. Warren, City Attorney
Transportation Systems Division
Utilities System Division
Jennifer Henning, Development Services
Holly Graber, Development Services
1055 South Grady Way - Renton, Washington 98055 - (425) 430-6515
jfzA- ---- - • - . . .._. .
RENTON
AHEAD OF THE CURVE
CITX OF RENTON
Ott Planning/Building/PublicWorks Department
J e Tanner, Mayor Gregg Zimmerman P.E., Administrator
December 23, 2003 l
s
Mr. Fred Kaufman ='
City of Renton Hearing Examiner CC"" I MIF E w
1055 South Grady Way HFARINGpIqA1@? .
Renton, WA 98055
SUBJECT: HARRINGTON SQUARE REQUEST FOR RECONSIDERATION
(FILE NO. LUA-03-066, SA-H, ECF)
Dear Mr. Kaufman,
The decision issued for the above referenced project proposal, Harrington Square, includes a
condition related to the extension of off -site water mains. The condition states:
"The applicant shall extend off -site water mains, 12-inch, in the following streets: 1) NE
Sunset Blvd from Kirkland Ave NE to Harrington Ave NE; 2) Harrington Ave NE from NE
Sunset Blvd to NE 9`h Street; 3) NE 9`h Street from Harrington Ave NE to Kirkland Ave NE;
and 4) Kirkland Avenue NE from NE Sunset Blvd to NE 12`h Street. The applicant shall
work with City Staff to determine cost sharing, design and construction. The installation o
(sic) the water mains shall be completed prior to the f rst load of lumber being delivered. "
I respectfully request reconsideration of Condition 7 with regard to the last sentence, the
requirement for when compliance must be achieved. Building and fire codes address this issue,
and existing water mains are adequate to provide the fire flow necessary for construction of the
Harrington Square development. Furthermore, the City of Renton, not the developer, will
construct the water improvements as a Capital Improvement Project; with the developer
contributing their fair share. Condition 7 is most relevant for occupancy of the structures and
should either be eliminated or modified to require compliance prior to issuance of building
occupancy permits.
Development Services staff will coordinate with the Water Utility and Fire Department to.ensure
that the water main improvements are accomplished in a timely manner.
Sincerely,
a�
Neil Watts, Director
Development Services Division
cc: Susan Fiala
Abdoul Gafour
Larry Rude
1055 South Grady Way -Renton, Washington 98055
MThis paper contains 50 % recycled material, 30 % post consumer
RENTON
AHEAD OF THE CURVE
CITY OF RENTON
To the Hearing Examiner
City of Renton
December 29, 2003
Subject: Request for reconsideration to Report dated December 15, 2003
Reference: Harrington Square File No: LUA-03-066, SA-H, ECF
Mr. Hearing Examiner,
DEC 2 9 2003
/1 1/SRECEIVn,.
CITY CLERKS OFFICE
I am requesting your reconsideration regarding your decisions and would like you to
correct any errors, delete ambiguities and to review any statements that you may not have
the authority to make.
My comments and discoveries are as follows:
FINDINGS
Par. 5 Highlands Community Church building is located northeast of the proposed
Buildings.
Par. 7 Word missing in second sentence after the word "The"
Par. 11 The fording that the parcel slopes upward to the north from approximately 320 ft
to approximately 340 ft is incomplete and deceptive in determining the height of
the proposed buildings.
Although there is a very small landscaped corner in the north that slopes upward
from an elevation of 328 ft to 338 ft and a small corner in the south that slopes
downward from an elevation of 328 ft to 320 ft, THE MAJORITY OF THE
PARCEL IS AT AN ELEVATION OF 328 ft.
All of the proposed buildings shown on the drawings are to be built well within
the area of the parcel with an elevation of 328 ft and so are the existing buildings
on the parcel. The site elevations and locations of the slopes at north and south
end are clearly shown on the Topographic Survey Drawing dated. 8/01/01. by
Landmark Planning Engineering and Surveying that is part of Exhibit No.I
Par. 13 The finding that the south building is 43 ft at its highest point is an error.
Drawing A-201, dated July 9, 2003 (Exhibit No.1) depicting the elevations of the
south building (identified as building B) shows a ROOF ELEVATION OF 381 ft
WITH MODULATIONS EXCEEDING THE 381 ft. without showing their
elevations. As discussed in the comments to findings No.11, the site elevation on
which the buildings will be built is 328 ft.
SUBTRACTING 328 ft FROM 381 ft WILL RESULT IN A 53 ft BUILDING
HEIGHT, not including some peaks exceeding that height.
This is a clear violation of Ordinance No.4260 as amended by ORDINANCE
NO.5018, DATED 22 SEPTEMBER 2003. It clearly states that the MAXIMUM
BUILDING HEIGHT IS 50 ft and that EXCEEDING THIS HEIGHT WILL
REQUIRE A CONDITIONAL USE PERMIT.
(Attachment 2 A of Ordinance No.5018)
1)
Par. 21 The second sentence should read as follows:
"Single family homes across NE 9`" St and Kirkland Ave NE will be adversely
affected by the increased traffic exiting that driveway".
Par. 22 The finding that the water utilities in the area "might need redevelopment" is in
error. It will need redevelopment, because one of the Mitigation Measures issued
by the Environmental Review Committee requires new 12 inch water mains be
installed to meet the required fire flow for the project.
The statement that the Mitigation Measure for meeting the required fire flow
"could present some expensive infrastructure improvements" should be irrelevant
to the Hearing Examiner and has no place in his findings.
CONCLUSIONS
Par. 4 The conclusion that "the use LapWars to meet the height limitations of the Zoning
Code is an error of fact.
It was brought to the Hearing Examiners attention in Mr. Gevers' testimony, that
the maximum building height of 50 ft is being exceeded. The explanation is
discussed in the comments to Par.No.13 of the Findings.
Par. 5 The development WILL DEFINETLY generate additional traffic and noise and
not PROBABLY as concluded by the Hearing Examiner.
The conclusion that the building will only be "somewhat taller than single family
uses" is a misrepresentation. None of the adjacent single-family residences are
more than 20 ft high, which makes the proposed building more than twice the
height of the highest residence, and will therefore significantly affect views but
also cast very long shadows in the easterly direction during sunset.
Par. 8 The conclusion should be that there DEFINETLY WILL BE IMPACTS of the
garage exit along NE 9a' street rather than "probably".
Mr. Gevers in his testimony at the Public Hearing objected to the garage exit
along NE 9h street, because of the predictable adverse impact on traffic and noise
along NE 9d' street and Kirkland Ave NE. The developer explained that the
ingress and egress on Harrington Ave NE would be able to handle all the traffic
and it can therefore be concluded that the exit along NE 9a' street is not really
required.
Par. 9 The conclusion should read that the water lines in the area WILL NEED
UPGRADING to provide the needed fire flow and not "it appears that the lines
will need upgrading"
Par. 7 It is not clear what the Hearing Examiner has in mind by mentioning, "cost
sharing", but is difficult to understand that the Hearing Examiner would propose
using tax dollars to subsidize the project. An explanation will be in order.
Based on the above discussed errors and discoveries, I submit to the Hearing
Examiner that the following additions be made to the Decisions:
1. That the garage exit along NE 9th street is not needed and should therefore be
Deleted.
2. That the roofline of the buildings be lowered to not exceed 50 ft above the site
elevation on which they are built. This can be accomplished by excavation or
redesign.
Sincerely,
A-6 —2�z�
Bob Gevers
900 Kirkland Ave NE
Renton, WA 98056
= CITX JF �NTON
_� Fire Department
Jesse Tanner, Mayor A. Lee Wheeler, Chief
December 30, 2003
Mr. Fred Kaufman
City of Renton Hearing Examiner
1055 South Grady Way
Renton, Washington 98055
Subject: Harrington Square Request for Reconsideration
(File No. LUA-03-066, SA-H, ECF )
Dear Mr. Kaufman:
The decision issued for the above referenced project proposal, Harrington Square, removes
Condition 7 for the extension of off -site water mains as stated, in your letter to Neil Watts dated
December 29, 2003.
City Ordinance 4007, 7-14-1986, item `b' states, "No construction beyond the foundation shall
be allowed until hydrants and mains are in place, unless approved by the appropriate City
authority, following appropriate application and a finding that there is no life or safety threat
involved."
The Fire Department would like a determination as to the "appropriate City -authority."
Upon your determination, and if your determination is not the appropriate fire official, we would
request that Condition 7 be placed back into the conditions of this project. The current hydrant
system is not sufficient for this project and is not within the required distance at this time..
As stated on page 10 of LUA-03-066, SA-H, ECF, "a significant amount (about 3,600 feet) of
new 12-inch water mains must be installed in the following streets:
• NE Sunset Blvd from Kirkland Ave NE to Harrington Ave NE (about 1,500 ft)
• Harrington Ave NE from NE Sunset Blvd to NE 90' St (about 800 ft)
• NE 9'',St from Harrington Ave NE to Kirkland Ave NE (About 1,000 ft) and
• Kirkland Ave NE from NE Sunset Blvd to NE 12a' St (about 300 ft)"
1055 South Grady Way - Renton, Washington 98055 - (425) 430-7000 / FAX (425) 430-1044
�7 T/ ic--- .,.gno/ rnrvN .n _;r 11n./_ _r
RENTON
AHEAD OF THE CURVE
Page 2
December 30, 2003
Your reconsideration of this matter would certainly be appreciated.
Sincerely,
Lawrence A. Rude
Fire Marshal
LAR/jh
cc: A. Lee Wheeler, Chief Julia Medzegian; Council Liaison
G. Gordon Deputy Chief ` �` � ' "IR14 Conklin, Development Services
p Y �" h �
Susan Fiala „` i Davie Isen
ry
Michael Shreve ri Bob j
Mayor Jesse Tanner lam' an, Plan/Bldg/PW Admin.
Members, Renton Planning Cossion Lawry en, City Attorney
Alex Pietsch Econ. Deb. Xdrnf6 ustrator ' , � s a, t o f stems Division
' �;., p
Larry Meckling, Buil g Offi�ial < n °ties system L,, ivision
Jay Covington, Chief ditra - fer ` e• i Development Services.
Council Member Kathy Koelker-Wheel olly Gr be D elopment Services
December 15, 2003
OFFICE OF THE HEARING EXAMINER
CITY OF RENTON
REPORT AND DECISION
L '
APPLICANT: Harrington Square Associates LLC
2256 38 h Place East
Seattle, WA 98112
Michael Shreve
PB Architects
303 Battery Street
Seattle, WA 98121
Harrington Square
File No.: LUA-03-066, SA-H, ECF
LOCATION: 950 Harrington Avenue NE
SUMMARY OF REQUEST: Approval for the construction of a mixed use project consisting
of 210 multi -family dwelling units, 2,980 square feet of retail
space, 313 structured parking stalls, 12 surface parking stalls
and associated site improvements in the CS zone.
SUMMARY OF ACTION: Development Services recommends approval of the Harrington
Square Site Plan Review Application, subject to 6 conditions.
DEVELOPMENT SERVICES REPORT: The Development Services Report was received by the
Examiner on November 10, 2003.
PUBLIC HEARING: After reviewing the Development Services Report, examining
available information on file with the application, field
checking the property and surrounding area; the Examiner
conducted a public hearing on the subject as follows:
MINUTES
The following minutes are a summary of the November 18, 2003 hearing.
The legal record is recorded on tape.
The hearing opened on Tuesday, November 18, 2003 at 1:32 p.m. in the Council Chambers on the seventh floor
of the Renton City Hall. Parties wishing to testify were affirmed by the Examiner.
The following exhibits were entered into the record:
Exhibit No.1: Yellow file containing the original
Exhibit No. 2: Neighborhood Detail Map
application, proof of posting, proof of publication and
other documentation pertinent to this request.
Exhibit No. 3: Landscape and Site Plan
Exhibit No. 4: Perspective/Elevation with dimension
Exhibit No. 5: Zoning Map
Exhibit No. 6: Elevations of site
Iarrington Square
File No.: LUA-03-066, SA-H, ECF
December 15, 2003
Page 2
_Exhibit No. 7_Elevation Four, East from Harrington
Exhibit No. 8: Shadow Diagram 12/21/02
Avenue NE
Exhibit No. 9: Shadow Diagram 6/21/03
Exhibit No,10: Harrington Square Detail Drawings
Exhibit No. 11: Photograph of trees surrounding
building site.
The hearing opened with a presentation of the staff report by Susan Fiala, Senior Planner, Development
Services, City of Renton, 1055 S. Grady Way, Renton, Washington 98055. The applicant is requesting approval
for the construction of a mixed use project consisting of 210 multi -family dwelling units, 2,980 square feet of
retail space, 313 structured parking stalls, 12 surface parking stalls and associated site improvements in the CS
zone. The subject site is located at the NE corner of Harrington Avenue NE and NE 96 Street in the Highlands
area of Renton. The site currently is developed with commercial retail strip malls which are proposed to be
demolished as part of this project. The applicant is also requesting a modification of the 10-foot landscape set
back along Harrington Avenue NE.
Environmental Review Committee issued a Determination of Non- Significance -Mitigated with three mitigation
measures. No appeals were filed.
The site is located in Center Suburban Zoning District, to the south of the site are R-8 and R-10 zones, to the
west of the site is Center Suburban zoning, commercial, retail, and the old fire station, immediately to the north
and east of the properly are Center Suburban zones as well. The majority of the remainder of the surrounding
property is zoned R-8 single-family.
The Comprehensive Plan designation for the site is Center Village. Center designation is to provide for a
cohesive district allowing a wide range of commercial and residential activities that provide goods and services
to serve as a visual point for the surrounding residential areas.
The Comprehensive Plan policies applicable to this project are related to the existing suburban and auto oriented
land uses as well as policies related to encourage mixed use structures of which this project is, it combines both
residential and a small portion of retail. A parking structure will provide approximately 300 parking spaces.
Density of the project, the site would be approximately 77.2 dwelling units per net acre, there are no deductions
for streets or any type of sensitive areas, which is within the allowable maximum. The buildings would cover
approximately 50% of the site and is within compliance of the code. The applicant is requesting a zero setback
along Harrington Avenue NE. The project meets all setback requirements for this zone. The limited amount of
existing vegetation would be removed. There are no existing trees on site. All landscaping will be maintained
by the applicant. Staff is willing to work with the applicant to insure that all landscaping and maintenance will
meet City standards.
The subject site is located within the Suburban Center Overlay District C, which requires common open space or
recreation area, this can be internal to the building, of at least 50 square feet per unit based on 210 units, 10,500
square feet would be required. The applicant will provide 40,000 square feet of open space, including hard-
scaping and landscaping space within the interior of the site. Staff feels that this requirement has been met.
District C allows a maximum building height of 50 feet, the property is in compliance with the development
standard.
Citywide Property Development Standards requires roof top equipment to be enclosed in order to be shielded
from view. The elevator shaft will be enclosed at the roof area. Staff suggests that the applicant check with
Rainier Waste Management for approval of the location and access to the refuse and recyclable area.
Harrington Square
File No.: LUA-03-066, SA-11, ECF
December 15, 2003
Page 3
Vehicular access to the site is provided via ingress and egress to Harrington Avenue NE, the primary access for
the tenants and visitors to the buildings. There would be an egress located to NE 9t' Street that exits from the
underground parking structure and a service drive for deliveries.
The Fire Department has indicated that the fire flow in the area is not sufficient to meet pressure requirements.
The applicant shall pay Fire, Transportation, and Park Mitigation Fees.
Certain issues revolving around light and air were brought up by surrounding neighbors. These issues were part
of the SEPA review, the main concerns were to shadows cast by three and four story buildings. The applicant
did two studies on the shadows that would be cast on the longest and shortest days of the year, June 21, and
December 21. Based on these analyses, there were no shadows cast on any of the surrounding residential
properties.
Staff recommends approval of the Harrington Square site plan application subject to conditions.
David Nielsen, Director of Development, Colpitts Development Company, 2256 38'h Place, Seattle 98112 stated
that in developing the site, great care was taken in the planning. The driveway that exits to 9'b Street from the
garage is at the intersection of the transition zoning between the R-10 and the R-8 zone areas to minimize the
impact to the residents to the south. The project fronts on only three residential lots to the south, and an
additional setback that is on the southern border. The parking garage is two-way, the exit onto 90' Street is
basically designed to be for overflow traffic of people leaving at peak hours. The parking for retail will allow
for employees to park inside the garage. The retail will be primarily for the use of the tenants of the buildings,
dry cleaners, coffee shop, and that type of facility.
Kayren Kittrick, Development Services, City of Renton stated that the fire code determines fire flow at any
particular area. According to the plan, assuming basically wood construction, the fact that it is stacked
residential, apartments, and some sort of retail, the fire department will always do an additive to ensure that the
fire flow will meet all the needs of the new structure. A 12-inch water main is the minimum that the water
department wants in this location. If certain things change in the construction or size of this development, the
builder can alter the fire flow demand requirement from the Fire Department by altering materials, location,
building height, and other things that could influence the water flow.
The Examiner inquired about the architectural treatment along Harrington to provide visual relief and what
constitutes landscaping on public right -of ways. Mr. Nielsen stated that they do not like slab solid blank walls.
That is why there is landscaping planned, there will be trees along the sidewalk and the public right-of-way.
Planters will have green foliage coming out and down over the side.
Michael Shreve, PB Architects, 303 Battery Street, Seattle, WA 98121, stated that on Building A, the sidewalk
is sloping down to the south, the floor level of the retail starts about a foot below grade, catches up to grade
about mid -point of the building, and at that stage there is handicap access and easy pedestrian access to the retail
activities. From that point to the end of Building A the grade is about 2-1/2 feet out of the ground with the
parking garage. On top of the parking garage is a deck with planters and private decks for the immediate
residences. The building meets the requirements of the City of Renton in setbacks, and depth, the modulations
are 4, 5 and 8 feet. The 2-1/2 foot height is easily covered with plantings, railings, and the planters on the decks.
The retail portions of Building A are designed to be compatible with the other retail buildings in the immediate
vicinity. Building B, on the other side, is all residential. The building will be coming out of the ground a little
more as the slope continues on a downward trend. The building starts at about 3-1/2 feet above grade and as it
goes downhill the grade will be approximately 6 feet above ground. Trees are planned for the front of the
Harrington Square
File No.: LUA-03-066, SA-H, ECF
December 15, 2003
Page 4
parking garage, and decks above in the modulation units. In the higher portions of the wall grillwork with plants
has been planned. Two towers on top of the building will vacate exhaust from the parking garage, nothing will
be vented onto 9"' Street.
At this moment it is not known who the retail operators will be, there is a large variance of parking criteria
depending on the use of the retail. The parking will have to be adjusted.
The Examiner inquired if the retail was required as part of this development or if it was just an amenity.
Ms. Fiala stated that retail is required on the ground floor, there is a requirement for the depth and length
according to District C to allow for this project.
Bob Geevers, 900 Kirkland Avenue NE, Renton, WA 98056 stated that he has been a resident of the Highlands
for more than 40 years. The project to redevelop the Highlands is a welcome project, however it appears to be a
little overbearing for the area. There were many areas of concern, including traffic exiting from the parking
garage onto 9`h Street, proper signals installed for safety, safety of vehicle circulation, limitations on
construction during the weekdays and weekends, parking agreements with adjacent tenants, existing street
system being adequate for the project, building height, and SEPA review regarding square footage of the
building. In regards to the recommendations made by staff in maintaining the landscaping, it was questioned as
to how that will be enforced.
Ms. Kittrick stated that there would be 6.63 trips per unit increase in traffic with this project. Ms. Kittrick
further attempted to answer many of the questions that had been presented earlier.
The Examiner called for further testimony regarding this project. There was no one else wishing to speak, and
no further comments from staff. The hearing closed at 3:13 pm.
FINDINGS, CONCLUSIONS & DECISION
Having reviewed the record in this matter, the Examiner now makes and enters the following:
FINDINGS:
The applicant, Michael Shreve for Harrington Square Associates, LLC, filed a request for approval of a
Site Plan for a mixed -use retail and multiple -family housing complex. The applicant is also seeking
approval of a modification allowing a reduced landscaped area along Harrington Avenue NE.
2. The yellow file containing the staff report, the State Environmental Policy Act (SEPA) documentation
and other pertinent materials was entered into the record as Exhibit # 1.
3. The Environmental Review Committee (ERC) issued a Determination of Non -Significance - Mitigated
(DNS-M) for the proposal.
4. The subject proposal was reviewed by all departments with an interest in the matter.
The subject site is located at 950 Harrington Avenue NE. The site is on the northeast corner of the
intersection of Harrington and NE 9th Street. The site is a half block south of Sunset Boulevard NE.
Highlands Community Church is located east of the subject site.
6. The subject site was annexed to the City with the adoption of Ordinance 1246 enacted in April 1946.
7. The site is zoned CS (Center Suburban). The is within the Suburban Centers Residential Bonus District
Harrington Square
File No.: LUA-03-066, SA-H, FCF
December 15, 2003
Page 5
C which permits mixed use projects of superior design with retail on the ground floor.
8. The map element of the Comprehensive Plan designates the area in which the subject site is located as
suitable for the development of Center Village uses, that is cohesive districts in which retail and
residential uses are developed in a pedestrian -scaled environment. The plan does not mandate such
development without consideration of other policies of the Plan.
9. The subject site is an irregularly shaped parcel. The subject site is approximately 310 feet wide (east to
west) by approximately 520 feet long.
10. The subject site is approximately 118,752 square feet or 2.72 acres. The site contains commercial
buildings built in 1942 that would be removed if the proposal is approved. The larger parcel containing
the proposed development site contains other buildings that will be retained.
11. The parcel slopes upward to the north from approximately 320 feet to approximately 340 feet.
12. The applicant proposes developing two buildings containing a mix of retail spaces on a portion of the
ground level and residential units. The retail component would be along the north portion of
Harrington. There would also be some surface parking for 12 vehicles and underground parking for 313
vehicles.
13. The buildings will be three and four -stories tall. The south building will be the tallest at approximately
43 feet high at its highest point along NE 9th Street. This tall point would be at the south end of the
proposal. The CS zone permits a building of 50 feet tall except when adjacent to R-8 or R-10 Districts
where 45 feet is the limit. The building has peaks and eaves and will have a varying roofline, again,
culminating in a maximum height of 43 feet. The building's height complies with code definitions.
14. The total building square footage would be approximately 312,752 square feet. This would be divided
into the residential, the retail and parking components. There would be similarly sized north and south
buildings that almost mirror one another in size, detailing and bulk. There would be approximately
95,700 square feet of underground garage beneath the two buildings. The north building would contain
only 2,980 square feet of leaseable retail space.
15. An open landscaped courtyard and driveway would separate the two buildings. This, the main driveway
would provide both ingress and egress to the underground parking from Harrington. It would also
provide a circular drive pattern allowing vehicles to drop off passengers in the front of the buildings via
bump -outs for parking. There would also be larger open courtyards at the north and south ends of the
complex.
16. Access to the complex would be via the circular driveway and garage entrance along Harrington
Avenue. In addition, there would be an exit driveway along NE 9th Street. A service road with a
hammerhead turn would be located off of NE 9th Street.
17. Lot coverage permitted is 65% to 75% if parking is within the structure - project 46.6% with a footprint
of 118,366 square feet.
18. The front entrance of the project will be on Harrington which therefore makes the Harrington frontage
the front yard for the proposal. CS zone requires 10 foot front yard which by design review may be
reduced to zero feet. The applicant has requested a modification to allow a zero foot setback along
Harrington for some portions of the complex. The proposed setback would vary from 12 feet down to
Harrington Square
File No.: LUA-03-066, SA-11, ECF
December 15, 2003
Page 6
zero. The applicant notes the articulations in the facade and the varying roofline are designed to reduce
the apparent bulk and offset the scale of the building.
19. The wall of the garage extends approximately six (6) feet above grade near the south end of the project
along Harrington. In addition, the retail storefronts would be at the property line with zero setbacks.
The garage wall would only extend up, up to six feet above grade and then the facade would step back
to provide terrace or deck space atop the garage roof in these locations. The intent is to limit the facade
height and make the bulk less apparent. Staff has recommended that the applicant modify this section to
provide visual and/or textural relief subject to staff approval. The applicant noted architectural features
and indicated that they would provide more relief as suggested by staff.
20. The exterior treatment will combine a variety of materials and siding types to provide visual interest and
break up the faces of the buildings into a series of articulated and modulated walls both in terms of
length and height. There will be terraces, decks and tower -like elements. The roofline will vary and
step down generally toward the street or perimeter of the building. In addition, there are the three
courtyard features, including the formal entrance driveway as well as courtyards breaking the facades of
the north and south wings of the buildings.
21. The vehicular access to the project will be provided by the main driveway along Harrington as well as
an exit -only driveway along NE 9th Street. Single-family homes across NE 9th will probably be
affected by the increased traffic exiting that driveway. A service driveway for deliveries and garbage
will be provided along the east facade of the building. Again, its access is directed to the south where
single-family homes are located. This service drive should not be used often.
22. The water utilities in the area might need redevelopment and this could present some expensive
infrastructure improvements. The services will have to provide sufficient fire flow for a proposal as
large as this and meet the requirements of the Fire Department.
23. Staff has determined that the applicant will provide the required 25 parking stalls for the three -bedroom
units and 123 stalls for the two -bedroom units. The one -bedroom and studio units will be provided with
161 stalls while only 143 stalls are required. The retail space would have 8 stalls located along the north
edge of the complex while staff has calculated the use requires 12 stalls. There would be four stalls for
loading and only one is generally required. Staff has recommended that employees of the retail use be
provide spaces in the underground garage and that a joint use agreement for parking be created with
neighboring uses.
24. The 210-unit complex on 2.72 acres provides a density of 77.2 dwelling units per acre and the CS
District C permits 80 dwelling units per acre.
25. Sunset Boulevard, a commercial arterial and commercially developed street is Iocated just north of the
complex. The zoning along the section of Sunset located near the subject site is generally CS, like the
subject site. NE 9th Street has single family homes located across the street from the complex in an R-8
(Single-Family/8 dwelling units per acre) zone.
CONCLUSIONS•
Site Plan
1. The site plan ordinance provides a number of specific criteria for reviewing a site plan. Those criteria
are generally represented in part by the following enumeration:
Harrington Square
File No.: LUA-03-066, SA-H, ECF
December 15, 2003
Page 7
Conformance with the Comprehensive Plan;
b. Conformance with the Building and Zoning Codes;
Mitigation of impacts on surrounding properties and uses;
d. Mitigation of the impacts of the proposal on the subject site itself;
Conservation of property values;
f. Provision for safe and efficient vehicle and pedestrian circulation;
g. Provision of adequate light and air;
h. Adequacy of public services to accommodate the proposed use;
The proposed use satisfies these and other particulars of the ordinance.
2. The proposed mixed -use building is compatible with the goals and policies of the Comprehensive Plan.
It combines retail and residential uses in a modulated shell in which the height steps up and down and
the facade steps in and out. These modulations in height and facade provide a pedestrian -scaled
environment. While there is limited retail space in this large complex it is compatible with the Center
Suburban designation and complements services already available on the adjacent property and the
surrounding Highlands area.
3. The project is quite dense. It is one of the first projects to take advantage of the Zoning and overlay for
this area. But given the density the project has a substantial amount of visual amenities that will `
hopefully reduce its apparent bulk. There are three large courtyards or breaks on the facade. The
central one actually divides the complex into two buildings while the ones on the north and south deeply
incise the buildings to allow light and air to enter and to reduce the amount of facade along the north
and south sides of the complex.
4. With the exception of the proposed zero setbacks along portions of the project on Harrington, the use
appears to meet the various bulk and height limitations of the Zoning Code. It does not meet the setback
along Harrington but modifications, if approved, would permit the building to be developed as designed.
The building does a good job of modulating or articulating the facade elements including decks at or
near grade, above grade terraces, railings, bays and window design. The courtyards also break the
apparent bulk of the building as do the varied building heights. The retail uses immediately address the
street. Compliance with the Building and Fire Codes will be determined when a building permit
application is submitted.
5. The development or redevleopment of the site will probably generate additional traffic and noise.
Construction noises are a given. All such impacts were generally acknowledged by the adoption of the
zoning and Comprehensive Plan for larger scale mixed use developments in this area. The area will be
a hub of residential and some retail activity. The taller buildings will alter the views in the area but
again, this impact was anticipated by the development of the new zoning standards and the adoption of
CS zoning for this area and this particular site. The building is in the CS zone and will only be
somewhat taller than single family uses. Again, such impacts were anticipated and new development
will affect the existing community including blocking some views and casting some shadows.
Harrington Square
File No.: LUA-03-066, SA-H, ECF
December 15, 2003
Page 8
6. The courtyard and grand entrance designs will provide air and light to the interior spaces of the
proposed buildings. The varied facade heights and setbacks will also permit light to hit various portions
of the walls of the project.
7. The site has a substantial amount of landscaping proposed around the perimeter of the buildings as well
as in the large courtyard areas. As noted, the applicant has asked to reduce the landscaped setback along
portions of Harrington. This proposed reduction is small in comparison to the overall impact the
proposed landscaping will bring to the site.
8. There will probably be some impacts of the exit garage along NE 9th Street but it apparently was
designed to fall between single family uses on the opposing street side. Nonetheless, there will be
impacts if it is used by sufficient building residents. The service driveway should not be used as often
providing garbage and other larger vehicle access. Such accesses should be less frequent than the NE
9th exit from the garage.
9. The site has access to sewer and transportation services. It appears that the water lines in the area will
need upgrading to provide the needed fire flow.
Modification
10. It would appear that the design elements, including the larger setbacks of 12 feet as well as the deeply
incised courtyards and entrance area coupled with the modulations of the facades and building heights
justify allowing small portions of the facade to be located at the property line, thereby providing a zero
setback distance. In addition, the retail elements of the proposal provide a more urban design element
where they immediately address the street from the sidewalk. These various elements are intended by
design to make the project more urban befitting the "center" aspect of Center Suburban Zone that
defines the zoning and Comprehensive Plan designations of this site. Staff should be given an
opportunity to review appropriate design changes to avoid any looming or dominant effect of the garage
wall on the streetscape but otherwise, the proposal appears well -designed.
11. In conclusion, the Site Plan, if executed as conveyed in the narrative and visual exhibits demonstrates a
well -thought out project that should help the redevelopment efforts in the Highlands area of the City.
DECISION:
The Site Plan and modification to setbacks are approved subject to the following conditions:
1. The applicant shall comply with the conditions imposed by the ERC.
2. The applicant shall provide a drawing illustrating the method(s) of eliminating the appearance of blank
walls along the Harrington Avenue NE street frontage. The satisfaction of this requirement is subject to
the review and approval of the Development Services Project manager and is to be completed prior to
the issuance building permits.
The property owner shall maintain all street trees and associated landscaping located within the right-of-
way in perpetuity.
4. The applicant shall either provide parking for the employees of the retail portion of the development
within the underground parking garage or enter into a parking agreement with the adjacent properties in
Harrington Square
File No.: LUA-03-066, SA-H, ECF
December 15, 2003
Page 9
order to ensure that the parking spaces are for the retail use. The satisfaction of this requirement is
subject to the review and approval of the Development Services Project Manager and is to be completed
prior to the issuance of the temporary certificate of occupancy.
5. The eight parking spaces located on the north surface parking area have signage installed with text
similar to "Retail Customer Parking Only". The signs shall be installed by the applicant prior to
issuance of the temporary certificate of occupancy.
6. The applicant shall obtain a demolition permit and complete all inspections and approvals for all
buildings located on the property prior to the issuance of building permits. The satisfaction of this
requirement is subject to the review and approval of the Development Services Project Manager.
7. The applicant shall extend off -site water mains, 12-inch, in the following streets: 1) NE Sunset Blvd
from Kirkland Ave NE to Harrington Ave NE; 2) Harrington Ave NE from NE Sunset Blvd to NE 9'h
Street; 3) NE 9`h Street from Harrington Ave NE to Kirkland Ave NE; and 4) Kirkland Avenue NE from
NE Sunset Blvd to NE 12'h Street. The applicant shall work with City Staff to determine cost sharing,
design and construction. The installation o the water mains shall be completed prior to the first load of
lumber being delivered.
ORDERED THIS 15th day of December, 2003.
FRED J. KAUFYAN
HEARING EXAMINER
TRANSMITTED THIS 15th day of December, 2003 to the parties of record:
Susan Fiala David Nielsen Michael Shreve
1055 S Grady Way Harrington Square Assoc, LLC PB Architects
Renton, WA 98055 2256 38'h Place E 303 Battery Street
Seattle, WA 98112 Seattle, WA 98121
Bob Geevers
900 Kirkland Avenue NE
Renton, WA 98056
TRANSMITTED THIS 15th day of December, 2003 to the following:
Mayor Jesse Tanner
Members, Renton Planning Commission
Larry Rude, Fire Marshal
Lawrence J. Warren, City Attorney
Transportation Systems Division
Utilities System Division
Jennifer Henning, Development Services
Holly Graber, Development Services
King County Journal
Gregg Zimmerman, Plan/Bldg/PW Admin.
Neil Watts, Development Services Director
Alex Pietsch, Econ. Dev. Administrator
Larry Meckling, Building Official
Jay Covington, Chief Administrative Officer
Councilperson Kathy Keolker-Wheeler
Julia Medzegian, Council Liaison
Janet Conklin, Development Services
Harrington Square
File No.: LUA-03-066, SA-H, ECF
December 15, 2003
Page 10
Pursuant to Title IV, Chapter 8, Section 100G of the City's Code, request for reconsideration must be filed in
writing on or before 5:00 p.m., December 29, 2003. Any aggrieved person feeling that the decision of the
Examiner is ambiguous or based on erroneous procedure, errors of law or fact, error in judgment, or the
discovery of new evidence which could not be reasonably available at the prior hearing may make a written
request for a review by the Examiner within fourteen (14) days from the date of the Examiner's decision. This
request shall set forth the specific ambiguities or errors discovered by such appellant, and the Examiner may,
after review of the record, take further action as he deems proper.
An appeal to the City Council is governed by Title IV, Chapter 8, Section 110, which requires that such appeal
be filed with the City Clerk, accompanying a filing fee of $75.00 and meeting other specified requirements.
Copies of this ordinance are available for inspection or purchase in the Finance Department, first floor of City
Hall. An appeal must be filed in writing on or before 5:00 p.m., December 29, 2003.
If the Examiner's Recommendation or Decision contains the requirement for Restrictive Covenants, the
executed Covenants will be required prior to approval by City Council or final processing of the file. You
may contact this office for information on formatting covenants.
The Appearance of Fairness Doctrine provides that no ex parte (private one-on-one) communications may occur
concerning pending land use decisions. This means that parties to a land use decision may not communicate in
private with any decision -maker concerning the proposal. Decision -makers in the land use process include both
the Hearing Examiner and members of the City Council.
All communications concerning the proposal must be made in public. This public communication permits all
interested parties to know the contents of the communication and would allow them to openly rebut the
evidence. Any violation of this doctrine would result in the invalidation of the request by the Court.
The Doctrine applies not only to the initial public hearing but to all Requests for Reconsideration as well as
Appeals to the City Council.
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CITY OF RENTON COUNCIL AGENDA BILL
Submitting Data:
Dept/Div/Board.. Community Services
Staff Contact...... Peter Renner Ext. 6605
Subject:
Lease with Intensive Asset Management,
Incorporated (IAM)
Exhibits:
Draft Lease Agreement
Issue Paper — Lease with IAM
For Agenda of: 02/09/04
Agenda Status
Consent ..............
Public Hearing..
Correspondence..
Ordinance .............
Resolution............
Old Business........
New Business.......
Study Sessions......
Information.........
Recommended Action: Approvals:
Refer to Finance Committee Legal Dept ..... x....
Finance Dept..x...
Other ...............
X
Fiscal Impact:
Expenditure Required... None Transfer/Amendment.......
Amount Budgeted....... Revenue Generated......... $40,000 per
annum expected
Total Project Budget City Share Total Project..
SUMMARY OF ACTION:
IAM has proposed to occupy the 6th floor of the 200 Mill Building. They are requesting a 3-year lease
commencing on February 15, 2004. The rent starts at $17.50 per square foot in the first year, increases to
$18.00 in the second year and then escalates to $18.50 for the final year.
The space requires no tenant improvements, as it was previously built to specifications for IAM's
predecessor company, IMG. A cash payment of $20,000 will be tendered in good faith by the president
of IAM as settlement for a previous judgment by the city against IMG, which went bankrupt. This
settlement shall be treated separately.
Business terms include a security deposit equivalent to three months' rent. Lease commissions to the
broker will be delayed for several months until a pattern of reliable rent payments has been established.
The business terms of the proposed lease have been favorably reviewed by our real estate team and by
city staff. Legal and Risk Management are reviewing the proposed lease document.
STAFF RECOMMENDATION:
Council authorize the Mayor and City Clerk to sign the proposed lease with IAM.
Rentonnet/agnbill/ bh
MEMORANDUM
Al
CITY OF RENTON
COMMUNITY SERVICES
0 Committed to Enriching Lives 0
TO: Don Persson, Council President
Members of the Renton City Council
VIA: Kathy Keolker-Wheeler, Mayor
FROM: k041 Dennis Culp, Community Services Administrator .� IWW44--S
STAFF CONTACT: Peter Renner, x6605
SUBJECT: Proposed Lease — Intensive Asset Management, Inc.
(IAM)
DATE: January 28, 2004
Issue:
Should the City sign a 3 year lease with IAM to occupy the sixth floor of the 200
Mill Building.
Recommendation:
Authorize the Mayor and City Clerk to sign the lease with IAM.
Background:
• IAM proposes a 3 year lease for 5,983 square feet of space at the 200 Mill
Building.
• IAM is a developer of businesses with a staff of 25 employees. They
intend to fully occupy the sixth floor of the 200 Mill Building during
February. IAM targets moderately successful businesses, and struggling
business entities and provides an opportunity for investors to co -invest in
small businesses that they acquire and nurture to profitability. They
provide administrative, financial and other consulting functions to their
member companies, freeing those companies to concentrate on their core
competencies.
• The sixth floor was built out to accommodate the specific needs of IAM's
predecessor company, Intensive Management Group, Inc (IMG).
Therefore, no additional tenant improvements are required. Primary
funding for IMG evaporated due to the sudden severe illness of their
principal investor before they could fully implement. This key investor has
recovered and has committed to financial support of IAM. IAM will
execute the lease and in the short future, conduct business as IMG.
• Currently, the sixth, second and 2,024 square feet of the fourth floor of the
200 Mill Avenue Building are fully vacant, and there is a small office suite
(980 sf) available on the first floor.
• Lease end dates for other tenants in the building vary, but Eoscene, LSI
and Vykor all have lease termination dates in 2005. Arcus Data has a
lease termination date of 2005 at Renton City Hall. The conventional
wisdom among commercial real estate managers is to limit exposure by
varying lease termination dates across the entire tenant group.
• The lease with IAM contains the following business points:
o Lease starts on February 15th, for 3 years and 2 weeks. The first
two weeks' rent is waived.
o Rent increases from $17.50 per square foot to $18.00 per square
foot in the second year, and $18.50 in the third and final year,
o A security deposit of $26,923.50 will be held against possible rent
shortages. (Three 3 Months)
o No Tenant Improvement Allowance is included.
o No lease renewal option is included.
o The net revenue to the City, (after operating expenses and lease
commissions are paid) and presuming building occupancy at
existing rates, is expected to be $40,000 per year.
• Per a market analysis by GVA Kidder Matthews, Property Manager, rents
are higher than equivalent properties in the area. The advantage to AIM is
immediate occupancy and cash flow to the City of Renton.
Conclusion:
Leasing the space to IAM is recommended by staff because the space has been
marketed unsuccessfully for more than a year; a larger -than -normal security
deposit provides rent security to the City; IAM provides 25 well -paying jobs that
will be located in downtown Renton; and an additional tenant spreads risk of
vacancy. Staff has reviewed and agreed with the business points of the lease.
GVA KIDDER MATHEWS
WATERMARK TOWER OFFICE LEASE - GROSS
1109 FIRST AVENUE #200
SEATTLE, WA 98101-2988 200 MILL AVENUE BUILDING
This Lease is made this 26th of January 2004 by and between The City of Renton, Washington, a
Washington municipal corporation ("Landlord"), and Intensive Asset Management, Inc., a Nevada
corporation ("Tenant'), who agree as follows:
1. Fundamental Terms. As used in this Lease, the following capitalized terms shall have the following
meanings:
(a) "Land" means the land on which the Building is located, situated in the City of Renton, County
of King, State of Washington, which is described on Exhibit A.
(b) "Building" means the building in which the Premises are located, commonly known as the 200
Mill Avenue Building, the street address of which is 200 Mill Avenue South, Renton, Washington.
(c) "Premises" means those certain spaces depicted on Exhibit B, located on the sixth floor of the
Building and designated as Suite 600, respectively.
(d) "Agreed Areas" means the agreed amount of rentable square feet of space in the Building and
the Premises. Landlord and Tenant stipulate and agree for all purposes under this Lease that the Building
contains approximately 49,480 rentable square feet of space (the "Building Area") and that the Premises
contain approximately 5,983 rentable square feet of space (the "Premises Area"). Landlord and Tenant
further agree that the Building Area may exclude portions of the Building which are used for other than
office purposes, such as areas used for retail purposes.
(e) "Tenant's Share" means the Premises Area divided by the Building Area, expressed as a
percentage, which is twelve and nine/100ths percent (12.09%). Notwithstanding the foregoing, if one or
more of the facilities, services and utilities the costs of which are included within the definition of Operating
Costs is not furnished to one or more tenants or to particular types of tenants, then in connection with the
calculation of Tenant's Share of each of such costs the Building Area shall be reduced by the number of
rentable square feet of space occupied by such tenants and Tenant's Share shall be separately computed
as to each of such costs. If the Building shall contain non -office uses during any period, Landlord shall have
the right to determine, in accordance with sound accounting and management principles, Tenant's Share of
Real Property Taxes and Operating Costs for only the office portion of the Building; in such event, Tenant's
Share shall be based on the ratio of the rentable area of the Premises to the rentable area of such office
portion for such period.
If a portion of the Building is damaged or condemned, or any other event occurs which alters the
number of rentable square feet of space in the Premises or the Building, then Landlord shall adjust Tenant's
Share to equal the number of rentable square feet of space then existing in the Premises (as altered by such
event) divided by the number of rentable square feet of space then existing in the Building (as altered by such
event).
(f) "Commencement Date" means February 15, 2004, or such earlier or later date as provided in
Section 4 hereof.
(g) "Expiration Date" means February 28, 2007.
(h) 'Term" means the period of time commencing on the Commencement Date and ending on the
Expiration Date, unless sooner terminated pursuant to this Lease.
(i) "Minimum Monthly Rent" means the following amounts as to the following periods during the
Term of this Lease:
Period Monthlv Amount
Feb 15, 2004 To Feb 28, 2004 -0-
March 1, 2004 To Feb 28, 2005 $8,725.21 per month
March 1, 2005 to Feb 28, 2006 $8,974.50 per month
March 1, 2006 to Feb 28, 2007 $9,223.79 per month
Q) "Permitted Use" means use for purposes of general business offices for management related
services & sales.
(k) "Base Year" means the calendar year 2003.
(1) "Security Deposit" means Twenty Six Thousand Nine Hundred Twenty Three and 50/100
Dollars ($26,923.50) to be held and administered by Landlord in accordance with the provisions of Section
6 below.
(m) "Landlord's Address for Notice" means 200 Mill Avenue Building, Go GVA Kidder Mathews
1109 First Avenue, Suite 200, Seattle, WA 98101-2988.
(n) "Landlord's Address for Payment of Rent' means 200 Mill Avenue Building, c/o GVA Kidder
Mathews, P.O. Box 34860, Seattle, WA 98124-1860.
(o) 'Tenants Address for Notice" means IAM, Inc., 200 Mill Avenue South — 6"' Floor, Renton,
WA 98055-3232 on and after the Commencement Date.
(p) "Landlord's Agent' means GVA Kidder Mathews or such other agent as Landlord may appoint
from time to time.
(q) "Broker(s)" means GVA Kidder Mathews representing the Landlord. There is no outside
agent representing the Tenant in this transaction.
(r) "Exhibits" means the following Exhibits to this Lease:
Exhibit A - Legal Description of the Property
Exhibit B - Outline Drawing of the Premises
Exhibit C - Work Letter
Exhibit D - Rules and Regulations
(s) "Rider" means the following Rider which is attached hereto: Rider dated January 26, 2004 by
and between The City of Renton, Washington, a Washington municipal corporation ("Landlord"), and
Investment Asset Management Inc., a Nevada corporation ('Tenant').
(t) "Definitions" means the words and phrases defined in Section 41 captioned "Definitions".
2. Consent and Notices. Whenever the consent of either Landlord or Tenant is required under this
Lease, such consent shall not be effective unless given in writing and shall not be unreasonably withheld
or delayed, provided, however, that such consent may be conditioned as provided in this Lease. All
notices or requests required or permitted under this Lease shall be in writing as provided in Section 42(g).
3. Premises and Appurtenances. Landlord leases to Tenant and Tenant leases from Landlord the
Premises for the Term. Tenant, and its authorized representatives, shall have the right to use, in common
with others and subject to the Rules and Regulations, the Common Areas of the Building. Landlord shall
have the right, in Landlord's sole discretion, from time to time to (i) make changes to the Building interior
and exterior and Common Areas, including without limitation, changes in the location, size, shape, number
and appearance thereof, (ii) to close temporarily any of the Common Areas for maintenance purposes so
long as reasonable access to the Premises remains available, and (iii) to use the Common Areas while
engaged in making additional improvements, repairs or alterations to the Building. All of the windows and
exterior walls of the Premises and any space in the Premises used for shafts, stacks, pipes, conduits,
ducts, electrical equipment or other utilities or Building facilities are reserved solely to Landlord and
Landlord shall have rights of access through the Premises for the purpose of operating, maintaining and
repairing the same, provided, however, that such changes shall not materially affect Tenant's access to, or
use and occupancy of, the Premises.
4. Term. This Lease shall become legally binding as of the earlier of the date Landlord and Tenant
execute this Lease or the date Tenant enters onto the Premises with Landlord's consent and shall remain
in full force and effect thereafter until the expiration of the Term, unless sooner terminated pursuant to this
Lease.
(a) Commencement Date. The Term shall commence on the Commencement Date and expire
on the Expiration Date, unless sooner terminated pursuant to this Lease. The Commencement Date shall
be:
(i) The date specified in Section 1;
(ii) Such later date that is the thirty-first (31st) day following the date Landlord
delivers possession of the Premises to Tenant;
(iii) if Tenant shall occupy the Premises for the Permitted Use prior to February
15, 2004, then the date of such early occupancy, and rents shall be pro -rated accordingly.
(b) Tenant Termination Rights. If Landlord is unable to deliver possession of the Premises to
Tenant by March 1, 2004 for the purposes stated in Subsection 4(d) below as a result of causes beyond
its reasonable control, Landlord shall not be liable for any damage caused by failing to deliver possession
and this Lease shall not be void or voidable. Tenant shall not be liable for Rent until the thirty-first (31st)
day following the date Landlord delivers possession of the Premises to Tenant. No delay in delivery of
possession of the Premises to Tenant shall change the Expiration Date or operate to extend the Term. If
Landlord does not deliver possession of the Premises to Tenant within three (3) months of the
Commencement Date, then Tenant may elect to terminate this Lease by giving notice to Landlord within
ten (10) days following the end of such three (3) month period.
(c) Confirmation of Commencement Date. If the Commencement Date is established as a later
date than the Commencement Date specified in Section 1, Landlord shall confirm the Commencement
Date by notice to Tenant.
(d) Early Access to the Premises. Landlord grants to Tenant the right to access the Premises
during normal business hours after execution of this Lease by Landlord and Tenant. Such right to access
the Premises shall be for purposes of constructing the Tenant Improvements in accordance with the
provisions of the Work Letter attached hereto as Exhibit C and installing furniture, trade fixtures, wiring
and cabling for communications equipment. All the terms and conditions of this Lease shall be in full force
and effect, except Rent, which shall not be charged until February 15, 2004, providing however that
landlord and tenant shall pro -rate rent if the premises is available for business use occupancy prior to
February 15, 2004, commencing the date Tenant or Tenant's authorized representative first enters upon
the Premises for any of the purposes of conducting business from the premises.
5. Minimum Monthly Rent; Late Charge.
(a) Minimum Monthly Rent. Tenant shall pay to Landlord the Minimum Monthly Rent without
deduction, offset, prior notice or demand, in advance on the first day of each month during the Term.
Minimum Monthly Rent for any partial month shall be prorated at the rate of 1/30th of the Minimum
Monthly Rent per day. Minimum Monthly Rent is exclusive of any sales, franchise, business or occupation
or other tax based on rents (other than Landlord's general income taxes) and should such taxes apply
during the Term, the Minimum Monthly Rent shall be increased by the amount of such taxes. All Rent shall
be paid to Landlord at Landlord's Address for Payment of Rent or at such other address as Landlord may
specify by notice to Tenant.
(b) Late Charge. Tenant acknowledges that the late payment by Tenant of any Rent will cause
Landlord to incur administrative, collection, processing and accounting costs and expenses not contem-
plated under this Lease, the exact amount of which are extremely difficult or impracticable to fix.
Therefore, if any Rent is not received by Landlord from Tenant by the fifth (5th) business day after such
Rent is due, Tenant shall immediately pay to Landlord a late charge equal to five percent (5%) of the
amount of such Rent or Seventy-five and No/100th Dollars ($75.00), whichever is greater, provided,
however, Tenant shall be allowed up to three (3) grace periods each year of the Term of ten (10) business
days following the day such Rent is due. Landlord and Tenant agree that this late charge represents a
reasonable estimate of such costs and expenses and is fair compensation to Landlord for its loss caused
by Tenant's nonpayment Should Tenant pay said late charge but fail to pay contemporaneously therewith
all unpaid amounts of Rent, Landlord's acceptance of this late charge shall not constitute a waiver of
Tenant's default with respect to Tenant's nonpayment nor prevent Landlord from exercising all other rights
and remedies available to Landlord under this Lease or under law.
6. Security Deposit. As partial consideration for Landlord's execution of this Lease, on execution of this
Lease, Tenant shall deposit with Landlord the Security Deposit as security for the performance by Tenant
of the provisions of this Lease. If Tenant is in default after all applicable notice and cure periods have
expired, Landlord may use the Security Deposit, or any portion of it, to cure the default, including without
limitation, paying for the cost of any work necessary to restore the Premises, the Tenant improvements
and any alterations to good condition or to compensate Landlord for all damage sustained by Landlord
resulting from Tenant's default. Tenant shall within ten (10) days of demand pay to Landlord a sum equal
to the amount of the Security Deposit used by Landlord so as to maintain the Security Deposit in the
amount then held by Landlord immediately prior to Tenant's default. If Tenant is not in default as of the
expiration or termination of the Term including, without limitation, in default in payment of the Rent for the
last month of the Term, or if Tenant has cured the default in accordance with the terms of this Lease prior
to the expiration or termination of the Term, then Landlord shall return the balance of the Security Deposit,
without interest, to Tenant within a reasonable period of time, which shall not exceed thirty (30) days after
the expiration or termination of the Term; provided, however, that Landlord may retain a portion of the
Security Deposit for payment of increases in Real Property Taxes and Operating Costs or for the cost of
any repairs due to damage to the Premises caused by Tenant, reasonable wear and tear excepted, the
exact amount of which has not been determined as of the expiration or termination of the Term. Landlord's
obligations with respect to the Security Deposit are those of a debtor and not a trustee. Landlord may
commingle the Security Deposit with Landlord's general and other funds.
7. Real Property Taxes.
(a) Payment of Tenant's Share of Increases in Real Property Taxes. Tenant shall pay to
Landlord, as Additional Rent, monthly, in advance on the first day of each month during the Term, an
amount equal to one -twelfth (1/12th) of Tenant's Share of all increases in Real Property Taxes that are or
will be levied or assessed against the Property during each calendar year during the Term over and above
the Real Property Taxes that are levied or assessed against the Property during the Base Year as
reasonably estimated by Landlord. Such Additional Rent is exclusive of any sales, franchise, business or
occupation or other tax based on rents and should such taxes apply during the Term, such Additional Rent
shall be increased by the amount of such taxes. Within one hundred twenty (120) days after the end of
each calendar year during the Term or within such longer period of time as may be reasonably necessary,
Landlord shall furnish to Tenant a statement of the Real Property Taxes for the preceding calendar year
and Tenant's Share of the increase in Real Property Taxes. If Tenant's Share of the increase in such Real
Property Taxes for that calendar year over such Real Property Taxes for the Base Year exceeds the
monthly payments made by Tenant, then Tenant shall pay Landlord the deficiency within thirty (30) days
after receipt of the statement. If Tenant's payments made during that calendar year exceed Tenant's
Share of the increase in such Real Property Taxes for that calendar year over such Real Property Taxes
for the Base Year, then, at Landlord's option, either Landlord shall pay Tenant the excess at the time
Landlord furnishes the statement to Tenant, or Tenant shall be entitled to offset the excess against the
next installment(s) of Minimum Monthly Rent and Additional Rent, provided, however, that at the end of
the Term Landlord shall pay Tenant the excess at the time Landlord furnishes the statement to Tenant.
(b) General and Special Assessments. With respect to any general or special assessments
which may be levied against or upon the Property, or which under the laws then in force may be evidenced
by improvement or other bonds or may be paid in annual installments, only the amount of such annual
installment, and interest due thereon, shall be included in the computation of Real Property Taxes.
(c) Proration. Tenant's Share of Real Property Taxes shall be prorated on the basis of a 360-day
year to account for any fractional portion of a tax year included in the Term at its commencement and
expiration.
(d) No Effect on Minimum Monthly Rent. Notwithstanding anything to the contrary in this
Section, the Minimum Monthly Rent payable by Tenant shall in no event be less than the Minimum
Monthly Rent specified in Section 1.
(a) Leasehold Excise Tax. Notwithstanding anything to the contrary contained in this Section 7,
Landlord and Tenant agree that Landlord is a municipal corporation under the State of Washington, and,
as such, pays leasehold excise taxes based on rent in lieu of Real Property Taxes. For purposes of
establishing a Base Year for taxes based on rent, Landlord and Tenant shall agree upon a tax
assessment based on the valuation of the Property for the Base Year, and Tenant shall pay to Landlord as
Additional Rent, monthly, in advance on the first day of each month during the Term, an amount equal to
one -twelfth (1/12th) of Tenant's Share of all increases in the valuation of the Property over the agreed
upon Base Year valuation that are or will be levied or assessed against the Property for each calendar
year during the Term.
8. Personal Property Taxes. Tenant shall use commercially reasonable efforts to pay prior to
delinquency all personal property taxes assessed against and levied upon trade fixtures, furnishings,
equipment and all other personal property of Tenant contained in the Premises or elsewhere. If
reasonably possible, Tenant shall cause such trade fixtures, furnishings, equipment and all other personal
property of Tenant to be assessed and billed separately from the Property.
9. Operating Costs.
(a) Payment of Tenant's Share of Increases In Operating Costs. Tenant shall pay to Landlord,
as Additional Rent, monthly, in advance on the first day of each month during the Term, an amount equal
to one -twelfth (1/12th) of Tenant's Share of the increase in the Operating Costs of the Property for each
calendar year during the Term over the Operating Costs for the Base Year as reasonably estimated by
Landlord. Landlord may, in accordance with sound accounting and management principles, both reasonably
estimate, and finally determine, the Operating Costs for the Base Year and for each calendar year during
the Term based on the Operating Costs that would have been incurred if the Building had been 95%
occupied during the Base Year or each such calendar year, as the case may be, taking into account
historical operating costs for the Building. Landlord may, in accordance with sound accounting and
management principles, make any other appropriate changes to reflect adjustments to Operating Costs for
prior years or for the then current calendar year. Such Additional Rent is exclusive of any sales, franchise,
business or occupation or other tax based on rents and should such taxes apply during the Term, such
Additional Rent shall be increased by the amount of such taxes. Within one hundred twenty (120) days
after the end of each calendar year during the Term or within such longer period of time as may be
reasonably necessary, Landlord shall furnish to Tenant a statement of the Operating Costs for the
preceding calendar year and Tenant's Share of the increase in the Operating Costs. If Tenant's Share of
the increase in the Operating Costs for that calendar year over the Operating Costs for the Base Year
exceeds the monthly payments made by Tenant, then Tenant shall pay Landlord the deficiency within
thirty (30) days after receipt of the statement If Tenants payments made during that calendar year
exceed Tenant's Share of the increase in the Operating Costs for that calendar year over the Operating
Costs for the Base Year, then, at Landlord's option, either Landlord shall pay Tenant the excess at the
time Landlord furnishes the statement to Tenant, or Tenant shall be entitled to offset the excess against
the next installment(s) of Minimum Monthly Rent and Additional Rent, provided, however, that at the end
of the Term Landlord shall pay Tenant the excess at the time Landlord furnishes the statement to Tenant.
Landlord shall make available for Tenant's inspection, during normal business hours at the place or places
where such records are normally kept Landlord's books and records relating to Operating Costs of the
Property for the preceding calendar year upon reasonable prior notice.
(b) Proration. Tenant's Share of Operating Costs shall be prorated on the basis of a 360-day year
to account for any fractional portion of a year included in the Term at its commencement and expiration.
(c) No Effect on Minimum Monthly Rent. Notwithstanding anything to the contrary in this
Section, the Minimum Monthly Rent payable by Tenant shall in no event be less than the Minimum
Monthly Rent specified in Section 1.
10. Use. Tenant shall use the Premises for the Permitted Use and for no other use without Landlord's
prior consent. Tenant agrees that it has determined to its satisfaction that the Premises can be used for
the Permitted Use. Tenant waives any right to terminate this Lease if the Premises cannot be used for the
Permitted Use during the Term unless the prohibition on use is the result of actions taken by Landlord.
Tenant's use of the Premises shall be in accordance with the following:
(a) Insurance. Tenant shall not do, bring, or keep anything in or about the Premises or the
Property that will cause a cancellation of any insurance covering the Property. If the rate of any insurance
carried by Landlord on the Property as published by the Washington Survey and Rating Bureau, or any
successor rating bureau or agency, is increased as a result of Tenant's use, then Tenant shall pay to
Landlord not less than ten (10) days before the date Landlord is obligated to pay a premium on the
insurance, a sum equal to the difference between the original premium and the increased premium.
Tenant shall not be required to pay for the cost of any insurance for the Premises or Property the cost of
which exceeds that reasonably available for comparable buildings in the city in which the Premises are
located, nor shall Tenant be responsible for any deductibles. All insurance proceeds shall be used to
repair and restore the Premises to their condition prior to the date of the casualty except in the event of
damage that results in the termination of the Lease pursuant to Section 23 hereof.
(b) Compliance with Laws. Tenant shall comply with all laws concerning the Premises and
Tenant's use of the Premises. Notwithstanding the foregoing in this Section, Tenant shall have no
responsibility or liability for (i) the remediation of hazardous materials present on or under the Premises,
except to the extent such presence is caused by the acts or omissions of Tenant or Tenant's agents or
contractors, (ii) making improvements or alterations to the Premises in order to comply with changes in
laws unless such improvements or alterations are necessitated by Tenant's alterations or particular use of
the Premises, or (iii) any noncompliance with any laws or requirements that are in existence as of the
Commencement Date of this Lease.
(c) Waste, Nuisance and Improper Use. Tenant shall not use the Premises in any manner that
will constitute waste, nuisance or unreasonable annoyance to other tenants in the Building, including
without limitation, (i) the use of loudspeakers or sound or light apparatus that can be heard or seen
outside the Premises, (ii) for cooking or other activities that cause odors that can be detected outside the
Premises, or (III) for lodging or sleeping rooms.
(d) Damage to Property. Tenant shall not do anything in, on or about the Premises that will cause
damage to the Property.
(e) Rules and Regulations. Tenant and its authorized representatives shall comply with the
Rules and Regulations set forth on Exhibit D attached hereto. Landlord shall have the right to reasonably
amend the Rules and Regulations from time to time. In the event of a conflict between this Lease and the
Rules and Regulations, as amended, this Lease shall control. Landlord shall have the right to enforce the
Rules and Regulations. Landlord shall have no liability or responsibility whatsoever with respect to the
noncompliance by other tenants or their authorized representatives with any of such Rules and
Regulations.
11. Hazardous Substances. Tenant shall not dispose of or otherwise allow the release of any Hazardous
Substances in, on or under the Premises, or the Property, or in any tenant improvements or alterations
placed on the Premises by Tenant. Tenant represents and warrants to Landlord that Tenant's intended
use of the Premises does not involve the use, production, disposal or bringing on to the Premises of any
Hazardous Substances, except for products normally used in general business offices which constitute
Hazardous Substances, provided that such products are used, stored and disposed of in accordance with
applicable laws and manufacturer's and supplier's guidelines. Tenant shall promptly comply with all laws
and with all orders, decrees or judgments of governmental authorities or courts having jurisdiction, relating
to the use, collection, treatment, disposal, storage, control, removal or cleanup of Hazardous Substances,
on or under the Premises or the Property, or incorporated in any tenant improvements or alterations, at
Tenant's expense. Notwithstanding the foregoing in this Section, Tenant shall have no responsibility or
liability for (i) the remediation of hazardous materials present on or under the Premises, except to the
extent such presence is caused by the acts or omissions of Tenant or Tenant's agents or contractors, (ii)
making improvements or alterations to the Premises in order to comply with changes in laws unless such
improvements or alterations are necessitated by Tenant's alterations or particular use of the Premises, or
(III) any noncompliance with any laws or requirements that are in existence as of the Commencement
Date of this Lease.
(a) Compliance; Notification. After notice to Tenant and a reasonable opportunity for Tenant to
effect such compliance, Landlord may, but is not obligated to, enter upon the Premises and take such
actions and incur such costs and expenses to effect such compliance as it deems advisable to protect its
interest in the Premises and the Property, provided, however that Landlord shall not be obligated to give
Tenant notice and an opportunity to effect such compliance if (i) such delay might result in material
adverse harm to the Premises, or the Property, or (ii) an emergency exists. Tenant shall reimburse
Landlord for the full amount of all costs and expenses incurred by Landlord in connection with such
compliance activities, and such obligation shall continue even after expiration or termination of the Term.
Tenant shall notify Landlord immediately of any release of any Hazardous Substances on the Premises or
the Property.
(b) Indemnity by Tenant. Tenant agrees to defend, indemnify, and hold Landlord harmless from
and against any and all damages, charges, cleanup costs, remedial actions, costs, and expenses, which
may be imposed on, incurred or paid by, or asserted against Landlord, the Premises or the Property by
reason of, or in connection with (1) any misrepresentation, breach of warranty or other default by Tenant
under this Lease, or (2) the acts or omissions of Tenant, its authorized representatives, or any subtenant
or other person for whom Tenant would otherwise be liable, resulting in the release of any Hazardous
Substances on the Premises or the Property.
(c) Indemnity by Landlord. Landlord agrees to defend, indemnify, and hold Tenant harmless
from and against any and all damages, charges, cleanup costs, remedial actions, costs, and expenses,
which may be imposed on, incurred or paid by, or asserted against Tenant, the Premises or the Property
by reason of, or in connection with the acts or omissions of Landlord, its authorized representatives, or its
employees, resulting in the release of any Hazardous Substances on the Premises or the Property.
(d) Acknowledgment as to Hazardous Substances. Tenant acknowledges that the Premises
may contain Hazardous Substances, and Tenant accepts the Premises and the Building notwithstanding
such Hazardous Substances. If Landlord is required by any law to take any action to remove or abate any
Hazardous Substances, or if Landlord deems it necessary to conduct special maintenance or testing
procedures with regard to any Hazardous Substances, or to remove or abate any Hazardous Substances,
Landlord may take such action or conduct such procedures at times and in a manner that Landlord deems
appropriate under the circumstances, and Tenant shall permit the same.
(e) Survival. The provisions of this Section shall survive the expiration or sooner termination of
the Term. No subsequent modification or termination of this Lease by agreement of the parties or
otherwise shall be construed to waive or to modify any provisions of this Section unless the termination or
modification agreement or other document expressly so states in writing.
12. Landlord's Maintenance; Inclusion In Operating Costs.
(a) Landlord's Maintenance. Except as provided in Section 13 captioned'Tenant's Maintenance;
Remedies", Section 23 captioned "Destruction" and Section 24 captioned "Condemnation" and except for
damage caused by any grossly negligent or intentional act or omission of Tenant or its authorized
representatives, Landlord shall maintain in good condition and repair the following: (i) the structural parts
of the Building, which structural parts include only the foundations, bearing and exterior walls, exterior
glass, glass entrance doors (excluding interior glass and interior glass doors), slab, subflooring and roof,
(ii) the building standard lighting fixtures, window coverings and ceiling tiles and the unexposed electrical,
plumbing and sewage systems, including without limitation, those portions lying outside the Premises, (iii)
the heating, ventilating and air-conditioning system, if any, servicing the Building, (iv) the lobbies,
corridors, elevators, public or common restrooms and other common areas of the Building, and (v) the
sidewalks, grounds, landscaping, parking and loading areas, if any, and other common areas of the
Property.
(b) Inclusion In Operating Costs. The cost of maintaining, repairing, replacing or servicing the
portions of the Building that Landlord is required to maintain pursuant to this Section shall be included in
Operating Costs to the extent provided in Section 9 captioned "Operating Costs".
13. Tenant's Maintenance; Remedies.
(a) Tenant's Maintenance. Except as provided in Section 12 captioned "Landlord's Maintenance;
Inclusion in Operating Costs", Section 23 captioned "Destruction" and Section 24 captioned
"Condemnation" and except for damage caused by any grossly negligent or intentional act or omission of
Landlord or its authorized representatives, Tenant, at its cost, shall maintain in good condition and repair
the interior of the Premises, including without limitation, all of the Tenant Improvements, Tenant's
alterations, Tenant's trade fixtures, Tenant's personal property, signs, walls, interior partitions, wall
coverings, windows, non -building standard window coverings, glass within the Premises, doors, carpeting
and resilient flooring, non -building standard ceiling tiles, plumbing fixtures and non -building standard
lighting fixtures. Tenant shall be liable for any damage to the Premises and the Building resulting from the
negligent or intentional acts or omissions of Tenant or its authorized representatives.
(b) Landlord's Remedies. If Tenant fails to maintain the Premises in good condition and repair as
required by Subsection 13(a) and if such failure is not cured within thirty (30) days after notice of such
failure is given by Landlord to Tenant, then Landlord may, at its option, cause the Premises to be
maintained in good condition and repair and Tenant shall promptly reimburse Landlord for all reasonable
costs incurred by Landlord in performance of Tenant's obligation to maintain the Premises.
14. Tenant Improvements; Alterations and Trade Fixtures.
(a) Tenant Improvements. Tenant accepts the Premises in their "AS IS" condition without any
agreements, representations, understandings or obligations on the part of Landlord to perform any
alterations, repairs or improvements or to provide any allowances unless otherwise expressly provided in this
Lease or in the Work Letter attached hereto as Exhibit C. Tenant shall not make any improvements or
alterations to the Premises without Landlord's prior consent, which consent shall not be unreasonably
withheld or delayed.
(b) Alterations. Any improvements and alterations made by either party shall remain on and be
surrendered with the Premises on expiration or termination of the Term, except that Landlord can elect by
giving notice to Tenant at the time consent is given by Landlord, to require Tenant to remove any such
improvements and alterations that Tenant has made to the Premises. If Landlord so elects, Tenant, at its
cost, shall restore the Premises to the condition designated by Landlord in its election, before the last day
of the Term, or within thirty (30) days after notice of election is given, whichever is later. Any
improvements and alterations that remain on the Premises on expiration or termination of the Term shall
automatically become the property of Landlord and title to such improvements and alterations shall
automatically pass to Landlord at such time without any payment therefor by Landlord to Tenant. If Tenant
or its authorized representatives make any improvements or alterations to the Premises as provided in
this Section, then such improvements and alterations (i) shall be made in a first class manner in
conformity with then building standard improvements, (ii) shall be made utilizing then building standard
materials, (iii) shall be made in compliance with the Rules and Regulations and the reasonable directions
of Landlord, (iv) shall be made pursuant to a valid building permit to be obtained by Tenant, at its cost, and
(v) shall be made in conformity with then applicable laws, including without limitation, building codes.
(c) Trade Fixtures. Tenant shall not install any trade fixtures in or on the Premises without
Landlord's prior consent.
15. Mechanics' Liens. Tenant shall pay, or cause to be paid, all costs of labor, services and/or materials
supplied in connection with any Work. Except as contested in accordance with this section, Tenant shall
keep the Property free and clear of all mechanics' liens and other liens resulting from any Work. Prior to
the commencement of any Work costing more than an amount equal to three (3) month's Minimum
Monthly Rent, or the supply or furnishing of any labor, services and/or materials in connection with any
such Work, upon request by Landlord, Tenant shall provide Landlord with a labor and material payment
bond, a letter of credit or other security satisfactory to Landlord in an amount equal to one hundred
percent (100%) of the aggregate price of all contracts therefor, with release of the bond conditioned on
Tenant's payment in full of all claims of lien claimants for such labor, services and/or materials supplied in
the prosecution of the Work. Said payment bond shall name Landlord as a primary obligee, shall be given
by a surety which is satisfactory to Landlord, and shall be in such form as Landlord shall approve in its
sole discretion. Tenant shall have the right to contest the correctness or validity of any such lien if,
immediately on demand by Landlord, it procures and records a lien release bond issued by a responsible
corporate surety in an amount sufficient to satisfy statutory requirements therefor in the State of
Washington. Tenant shall promptly pay or cause to be paid all sums awarded to the claimant on its suit,
and, in any event, before any execution is issued with respect to any judgment obtained by the claimant in
its suit or before such judgment becomes a lien on the Premises, whichever is earlier. If Tenant shall be in
default under this Section, by failing to provide security for or satisfaction of any mechanic's or other liens,
then Landlord may (but shall not be obligated to), in addition to any other rights or remedies it may have,
discharge said lien by (i) paying the claimant an amount sufficient to settle and discharge the claim, (ii)
procuring and recording a lien release bond, or (iii) taking such other action as Landlord shall deem
necessary or advisable, and, in any such event, Tenant shall pay as Additional Rent, on Landlord's
demand, all reasonable costs (including reasonable attorney fees) incurred by Landlord in settling and
discharging such lien together with interest thereon in accordance with Section 39 captioned "Interest on
Unpaid Rent" from the date of Landlord's payment of said costs. Landlord's payment of such costs shall
not waive any default of Tenant under this Section.
16. Utilities and Services.
(a) Utilities and Services Furnished by Landlord. Landlord shall furnish the Premises with:
(I) Electricity for lighting and power suitable for the use of the Premises for
ordinary general office purposes; provided, however, that Tenant shall not at any time have a connected
electrical load for lighting purposes in excess of the wattage per square foot of Premises Area required for
building standard amounts of lighting, or a connected load for all other power requirements in excess of
four (4) watts per square foot of Premises Area as determined by Landlord, and the electricity so provided
for lighting and power shall not exceed such limits, subject to any lower limits set by any governmental
authority with respect thereto;
(ii) Subject to the reasonable limitations of the existing building systems, heating,
ventilating and air-conditioning, if the Building has an air-conditioning system, to maintain a temperature
range in the Premises which is customary for similar office space in the Seattle, Washington area (but in
compliance with any applicable governmental regulations with respect thereto). Tenant agrees to make all
reasonable efforts to keep closed, when necessary, blinds, draperies and windows which must be closed
to provide for the efficient operation of the heating and air conditioning systems, if any, and Tenant agrees
to cooperate with Landlord and to abide by the reasonable regulations and requirements which Landlord
may prescribe for the proper functioning and protection of the heating, ventilating and air-conditioning
system, if any. If Tenant requires heating, ventilating and air conditioning to the Premises other than
during normal business hours from 7:30 A.M. to 6:00 P.M. daily and from 8:30 A.M. to 11:30 A.M.
Saturdays, except Sundays and those legal holidays generally observed in the State of Washington,
Landlord shall, upon Tenant's request made not less than 24 hours before the time Tenant requires the
after hour service, and not later than Noon on the Friday before any Saturday or Sunday on which Tenant
requires such service, and not later than Noon of the business day before any holiday on which Tenant
requires such service (except as otherwise provided in the Rules and Regulations), furnish such heating,
ventilating and air conditioning. If Tenant receives such services, then Tenant shall pay, upon demand, an
amount equal to Tenant's proportionate share of the actual direct cost to Landlord in providing the heating,
ventilating and air conditioning outside of normal business hours;
(iii) Water for restroom and drinking purposes and access to restroom facilities;
(iv) Elevator service for general office pedestrian usage if the Building is serviced
by elevators;
(v) Relamping of building -standard light fixtures;
frequency; and
(vi) Washing of interior and exterior surfaces of exterior windows with reasonable
(vii) Janitorial service five (5) times per week, except holidays.
(b) Payment for Excess Utilities and Services. All services and utilities for the Premises not
required to be furnished by Landlord pursuant to Section 16(a) shall be paid for by Tenant. If Tenant
requires, on a regular basis, water, heat, air conditioning, electric current, elevator or janitorial service in
excess of that provided for in Section 16(a), then Tenant shall first obtain the consent of Landlord which
consent may be withheld in Landlord's reasonable discretion. If Landlord consents to such excess use,
Landlord may install an electric current or water meter (including, without limitation, any additional wiring,
conduit or panel required therefor) to measure the excess electric current or water consumed by Tenant or
may cause the excess usage to be measured by other reasonable methods (e.g. by temporary "check"
meters or by survey). Tenant shall pay to Landlord upon demand (i) the cost of any and all water, heat, air
conditioning, electric current, janitorial, elevator or other services or utilities required to be furnished to
Tenant in excess of the services and utilities required to be furnished by Landlord as provided in Section
16(a); (ii) the cost of installation, maintenance and repair of any meter installed in the Premises; (ii!) the
cost of all electricity and water consumed by Tenant in connection with any dedicated heating, ventilating
and/or air conditioning, computer power and/or air conditioning, telecommunications or other special
systems of Tenant, including any power usage other than through existing standard 110-volt AC outlets;
and (iv) any reasonable cost incurred by Landlord in keeping account of or determining such excess
utilities or services furnished to Tenant. Landlord's failure to bill Tenant for any such excess utilities or
services shall not waive Landlord's right to bill Tenant for the excess at a later time.
(c) Temperature Balance. Landlord makes no representation to Tenant regarding the adequacy
or fitness of the heating, ventilating and air-conditioning systems in the Building to maintain temperatures
that may be required for, or because of, any of Tenant's equipment other than normal office equipment,
such as personal computers, laser printers, copiers, dictating machines and other small equipment
normally used in business offices, and Landlord shall have no liability for loss or damage suffered by
Tenant or others in connection therewith. If the temperature otherwise maintained in any portion of the
Premises by the heating, air conditioning or ventilation system is affected as a result of (i) any lights,
machines or equipment (including without limitation electronic data processing machines) used by Tenant
in the Premises or the use of more than one personal computer per person, (ii) the occupancy of the
Premises by more than one person per two hundred (200) square feet of rentable area therein, (III) an
electrical load for lighting or power in excess of the limits per square foot of rentable area of the Premises
specified in Section 16(a), or (iv) any rearrangement of partitioning or other improvements, Landlord may
install any equipment, or modify any existing equipment (including the standard air conditioning
equipment) Landlord deems necessary to restore the temperature balance. The cost of any such
equipment, including without limitation, the cost of design and installation thereof, and the cost of
operating, metering, maintaining or repairing the same, shall be paid by Tenant to Landlord upon demand.
Tenant shall not install or operate window -mounted heating or air-conditioning units.
(d) Special Electrical or Water Connections; Electricity Use. Tenant will not, without the prior
consent of Landlord, which Landlord in its sole discretion may refuse, connect or use any apparatus or
device in the Premises (i) using current in excess of 110 volts or (ii) which will cause the amount of
electricity, water, heating, air conditioning or ventilation furnished to the Premises to exceed the amount
required for use of the Premises for ordinary general office purposes, as determined by Landlord, during
normal business hours or (iii) which would cause Tenant's connected load to exceed any limits
established in Section 16(a). Tenant shall not connect with electric current except through existing outlets
in the Premises and shall not connect with water pipes except through existing plumbing fixtures in the
Premises. In no event shall Tenant's use of electricity exceed the capacity of existing feeders to the
Building or the risers or wiring installation, and Landlord may prohibit the use of any electrical equipment
which in Landlord's opinion will overload such wiring or interfere with the use thereof by other tenants in
the Building. If Landlord consents to the use of equipment requiring such changes, Tenant shall pay the
cost of installing any additional risers, panels or other facilities that may be necessary to furnish energy to
the Premises.
Landlord will not permit additional coring of the floor of the Premises in order to install new electric
outlets in the Premises unless Tenant furnishes Landlord with X-ray scans of the floor area where the Tenant
wishes to place additional electrical outlets and Landlord, in its absolute discretion, is satisfied, on the basis of
such X-ray scans and other information obtained by Landlord, that coring of the floor in order to install such
additional outlets will not weaken the structure of the floor.
(e) Landlord's Duties. Landlord shall not be in default under this Lease or liable for any damages
resulting from, or incidental to, any of the following, nor shall any of the following be an actual or
constructive eviction of Tenant, nor shall the Rent be abated by reason of: (i) failure to furnish or delay in
furnishing any of the services described in this Section when such failure or delay is caused by accident or
any condition beyond the reasonable control of Landlord, including the making of necessary repairs or
improvements to the Premises or to the Building, (ii) any electrical surges or spikes, or (ill) failure to make
any repair or to perform any maintenance, unless such failure shall persist for an unreasonable time after
notice of the need for such repair or maintenance is given to Landlord by Tenant. Landlord shall use
reasonable efforts to remedy any interruption in the furnishing of such services.
(f) Governmental Regulations. Any other provisions of this Section notwithstanding, if any
governmental authority or utility supplier imposes any laws, controls, conditions, or other restrictions upon
Landlord, Tenant, or the Building, relating to the use or conservation of energy or utilities, mandated
changes in temperatures to be maintained in the Premises or the Building or the reduction of automobile
or other emissions (collectively, the "Controls"), or in the event Landlord is required or elects to make
alterations to the Building in order to comply with the Controls, Landlord may, in its sole discretion, comply
and may require Tenant to comply with the Controls or make such alterations to the Building in order to
comply with the Controls. Such compliance and the making of such alterations shall not constitute an
actual or constructive eviction of Tenant, impose on Landlord any liability whatsoever, or entitle Tenant to
any abatement of Rent.
17. Indemnity
(a) Generally. Tenant shall defend, indemnify, and hold harmless Landlord, its officers, officials,
employees and volunteers from and against any and all claims, suits, actions, or liabilities for injury or
death of any person, or loss of damage to property, which arises out of Tenant's use of the Premises, or
from the conduct of Tenant's business, or from any activity, work or thing done, permitted, or suffered by
Tenant in or about the Premises, except only such injury or damage as shall have been occasioned by the
negligence of Landlord.
Landlord shall defend, indemnify, and hold harmless Tenant, its officers, officials, and
employees from and against any and all claims, suits, actions, or liabilities for injury or death of any
person, or loss of damage to property, which arises out of any damage to any persons or property
occurring in, on or about the Premises or the Property resulting from the acts or omissions of Landlord or
its authorized representatives, excluding any injury, death, loss or damage which arises as a result of
Tenant's negligence.
A party's obligation under this Section to indemnify and hold the other party harmless shall be
limited to the sum that exceeds the amount of insurance proceeds, if any, received by the party being
indemnified.
(b) Provisions Specifically Negotiated. LANDLORD AND TENANT ACKNOWLEDGE BY
THEIR EXECUTION OF THIS LEASE THAT EACH OF THE INDEMNIFICATION PROVISIONS OF THIS
LEASE (SPECIFICALLY INCLUDING BUT NOT LIMITED TO THOSE RELATING TO WORKER'S
COMPENSATION BENEFITS AND LAWS) WERE SPECIFICALLY NEGOTIATED AND AGREED TO BY
LANDLORD AND TENANT.
18. Exemption of Landlord from Liability. Landlord and Landlord's Agent shall not be liable for injury to
Tenant's business or loss of income therefrom or for damage which may be sustained by the person,
goods, wares, merchandise or property of Tenant, its authorized representatives, or any other person in or
about the Premises, caused by or resulting from fire, steam, electricity, gas, water or rain, which may leak
or flow from or into any part of the Premises, or from the breakage, leakage, obstruction or other defects
of the pipes, sprinklers, wires, appliances, plumbing, air conditioning or lighting fixtures of the same,
whether the said damage or injury resulting from conditions arising upon the Premises or upon other
portions of the Building or the Property unless such injury or damage is caused by the gross negligence or
Willful misconduct of Landlord or its authorized representatives.
19. Commercial General Liability and Property Damage Insurance. Tenant, at its cost, shall maintain
commercial general liability insurance (including contractual liability and products and completed
operations liability) with liability limits of not less than $1,000,000 per occurrence, and $2,000,000 annual
aggregate, insuring against all liability of Tenant and its authorized representatives arising out of or in
connection with Tenant's use and occupancy of the Premises and property damage insurance with liability
limits of not less than $1,000,000. All such commercial general liability and property damage insurance
shall insure performance by Tenant of the indemnity provisions of Section 17 captioned "Indemnity".
Landlord and Landlord's Agent shall be additional named insureds on such insurance policy.
20. Tenant's Fire Insurance. Tenant, at its cost, shall maintain on all of Tenant's Alterations, Trade
Fixtures and Personal Property in, on or about the Premises, a policy of standard All Risk fire insurance, in
an amount equal to at least their full replacement cost. The proceeds of any such policy shall be used by
Tenant for the restoration of Tenant's Alterations and Trade Fixtures and the replacement of its Personal
Property. Any portion of such proceeds not used for such restoration shall belong to Tenant.
21. Waiver of Claims; Waiver of Subrogation Landlord and Tenant release each other, and their
respective authorized representatives, from, and waive their entire claim of recovery for, any claims for
damage to the Premises and the Building and to Tenant's alterations, trade fixtures and personal property
that are caused by or result from fire, lightning or any other perils normally included in an "all risk" property
insurance policy whether or not such loss or damage is due to the negligence of Landlord, or its
authorized representatives, or of Tenant, or its authorized representatives. Landlord and Tenant shall
cause each insurance policy obtained by it to provide that the insurance company waives all right of
recovery by way of subrogation against either party in connection with any damage covered by such
insurance policy.
22. Other Insurance Matters. All insurance required to be carried by Tenant under this Lease shall: (i)
have a rating of ANI or better as rated in the most recent edition of Bests Insurance Reports; (ii) be
issued as a primary policy, and (iii) contain an endorsement requiring thirty (30) days' prior written notice
from the insurance company to both parties, to Landlord's Agent, and, if requested by Landlord, to
Landlord's lender, before cancellation or change in the coverage, scope, or amount of any policy. Each
policy or a certificate of the policy, together with evidence of payment of premiums, shall be deposited with
Landlord on or before the Commencement Date, and on renewal of the policy not less than ten (10) days
before expiration of the term of the policy.
23. Destruction.
(a) Insured Damage. If during the Term the Premises or the Building are partially or totally
destroyed by any casualty that is covered by any insurance carried by Landlord covering the Building,
rendering the Premises partially or totally inaccessible or unusable, Landlord shall restore the Premises or
the Building to substantially the same condition as they were in immediately before such destruction, if (i)
the insurance proceeds available to Landlord equal or exceed the cost of such restoration, (ii) in the
opinion of a registered architect or engineer appointed by Landlord such restoration can be completed
within one hundred eighty (180) days after the date of such destruction, and (iii) such restoration is
permitted under then existing laws to be done in such a manner as to return the Premises, or the Building,
as the case may be, to substantially the same condition as they were in immediately before such
destruction. To the extent that the insurance proceeds must be paid to a mortgagee under, or must be
applied to reduce any debt secured by, a mortgage covering the Property, the insurance proceeds shall be
deemed not to be available to Landlord unless such mortgagee permits Landlord to use the insurance
proceeds for such restoration. Such destruction shall not terminate this Lease.
(b) Major or Uninsured Damage. If during the Term the Premises or the Building are partially or
totally destroyed by any casualty and Landlord is not obligated under Section 23(a) captioned "Insured
Damage" to restore the Premises or the Building, as the case may be, then Landlord may, at its election,
either (i) restore the Premises or the Building to substantially the same condition as they were in
immediately before such destruction, or (ii) terminate this Lease effective as of the date of such
destruction. If Landlord does not give Tenant notice within sixty (60) days after the date of such
destruction of its election to restore the Premises or the Building, as the case may be, Landlord shall be
deemed to have elected to terminate this Lease. If Landlord elects to restore the Premises or the Building,
as the case may be, Landlord shall use commercially reasonable efforts to complete such restoration
within one hundred eighty (180) days after the date of such restoration, provided, however, that such one
hundred eighty (180) day period shall be extended by a period equal to any delays caused by Force
Majeure, and such destruction shall not terminate this Lease. If Landlord does not complete such
restoration within one hundred eighty (180) days following the date of such destruction, then Tenant may
elect to terminate this Lease by giving notice to such effect to Landlord within ten (10) days following the
end of such one hundred eighty (180) day period. Tenant shall have the right to terminate this Lease
within ten (10) days after receipt of Landlord's notice of a total destruction or Landlord's notice of greater
than fifty percent (50%) destruction.
(c) Damage to the Building. If during the Term the Building is partially destroyed by any casualty
and if in the opinion of Landlord the Building should be restored in such a way as to materially alter the
Premises, then Landlord may, at Landlord's election, terminate this Lease by giving notice to Tenant of
Landlord's election to do so within sixty (60) days after the date of such destruction.
(d) Extent of Landlord's Obligation to Restore. If Landlord is required or elects to restore the
Premises as provided in this Section, Landlord shall not be required to restore alterations made by
Tenant, Tenant's trade fixtures and Tenant's personal property, such excluded items being the sole
responsibility of Tenant to restore.
(e) Abatement or Reduction of Rent. In case of damage to, or destruction of, the Premises or
the Building the Minimum Monthly Rent shall be abated or reduced, between the date of destruction and
the date of completion of restoration, by an amount that is in the same ratio to the Minimum Monthly Rent
as the total number of square feet of the Premises that are so damaged or destroyed bears to the total
number of square feet in the Premises.
24. Condemnation. If during the Term there is any taking of part or all of the Premises or the Building by
condemnation, then the rights and obligations of the parties shall be as follows:
(a) Minor Taking. If there is a taking of less than ten percent (10%) of the Premises, this Lease
shall remain in full force and effect.
(b) Major Taking. If there is a taking of ten percent (10%) or more of the Premises and if the
remaining portion of the Premises is of such size or configuration that Tenant in Tenant's reasonable
judgment is unable to conduct its business in the Premises, then the Term shall terminate as of the date
of taking.
(c) Taking of Part of the Building. If there is a taking of a part of the Building other than the
Premises and if in the opinion of Landlord the Building should be restored in such a way as to materially
alter the Premises, then Landlord or Tenant may terminate the Term by giving notice to such effect to the
other party within sixty (60) days after the date of vesting of title in the condemnor and the Term shall
terminate as of the date specified in such notice, which date shall not be less than sixty (60) days after the
giving of such notice.
(d) Award. The entire award for the Premises, the Building and the Property, shall belong to and
be paid to Landlord, Tenant hereby assigning to Landlord Tenant's interest therein, if any, provided,
however, that Tenant shall have the right to claim and recover from the condemnor compensation for the
loss of any alterations made by Tenant, Tenant's trade fixtures, Tenant's personal property, moving
expenses and business interruption.
10
(e) Abatement of Rent. If any part of the Premises is taken by condemnation and this Lease
remains in full force and effect, on the date of taking the Minimum Monthly Rent shall be reduced by an
amount that is in the same ratio to the Minimum Monthly Rent as the total number of square feet in the
Premises taken bears to the total number of square feet in the Premises immediately before the date of
taking.
25. Assignment and Subletting.
(a) Landlord's Consent; Definitions. Tenant acknowledges that the Building is a multi -tenant
office building, occupied by tenants specifically selected by Landlord, and that Landlord has a legitimate
interest in the type and quality of such tenants, the location of tenants in the Building and in controlling the
leasing of space in the Building so that Landlord can better meet the particular needs of its tenants and
protect and enhance the relative image, position and value of the Building in the office building market.
Tenant further acknowledges that the rental value of the Premises may fluctuate during the Term in
accordance with market conditions, and, as a result, the Rent paid by Tenant under the Lease at any
particular time may be higher or lower than the then market rental value of the Premises. Landlord and
Tenant agree, and the provisions of this Section are intended to so provide, that, if Tenant voluntarily
assigns its interest in this Lease or in the Premises or subleases any part or all of the Premises, a portion
of the profits from any increase in the market rental value of the Premises, less reasonable costs
associated with such assignment or sublease including, but not limited to, reasonable costs incurred by
Tenant for improvements and alterations incident to such assignment or sublease, reasonable attorneys'
fees, and reasonable leasing commissions, shall belong one-half (1/2) to Landlord and one-half (1/2) to
Tenant. Tenant acknowledges that, if Tenant voluntarily assigns this Lease or subleases any part or all of
the Premises, Tenant's investment in the subject portion of the Premises (specifically including, but not
limited to, tenant improvements, good will or other assets) may be lost or reduced as a result of such
action.
(b) Consent Required. Tenant shall not voluntarily assign or encumber its interest in this Lease
or in the Premises, or sublease any part or all of the Premises, without Landlord's prior consent, which
consent shall not be unreasonably withheld or delayed. Any assignment, encumbrance or sublease
without Landlord's consent shall be voidable and, at Landlord's election, shall constitute a default by
Tenant under this Lease. In determining whether to approve a proposed assignment or sublease,
Landlord shall place primary emphasis on the proposed transferee's reputation and creditworthiness, the
character of the business to be conducted by the proposed transferee at the Premises and the affect of
such assignment or subletting on the tenant mix in the Building. In addition, Landlord shall have the right
to reasonably approve the specific form of any assignment or sublease agreement. In no event shall
Landlord be obligated to consent to any assignment or subletting which increases (i) the Operating Costs,
(ii) the burden on the Building services, or (iii) the foot traffic, elevator usage or security concerns in the
Building, or creates an increased probability of the comfort and/or safety of the Landlord and other tenants
in the Building being unreasonably compromised or reduced (for example, but not exclusively, Landlord
may deny consent to an assignment or subletting where the space will be used for a school or training
facility, an entertainment, sports or recreation facility, retail sales to the public (unless Tenant's permitted
use is retail sales), a personnel or employment agency, a medical office, or an embassy or consulate or
similar office). Landlord's foregoing rights and options shall continue throughout the entire term of this
Lease. No consent to any assignment, encumbrance or sublease shall constitute a waiver of the
provisions of this Section and no other or subsequent assignment, encumbrance or sublease shall be
made without Landlord's prior consent, which consent shall not be unreasonably withheld or delayed.
Neither an assignment or subletting nor the collection of Rent by Landlord from any person other than
Tenant, nor the application of any such Rent as provided in this Section shall be deemed a waiver of any
of the provisions of this Section or release Tenant from its obligation to comply with the terms and
provisions of this Lease and Tenant shall remain fully and primarily liable for all of Tenant's obligations
under this Lease, including the obligation to pay Rent under this Lease. Any personal guarantee(s) of
Tenant's obligations under this Lease shall remain in full force and effect following any such assignment or
subletting. In addition to Landlord's other rights under this Section, Landlord may condition approval of an
assignment or subletting hereunder on an increase in the amount of the Security Deposit or on receipt of
personal guarantees of the assignee's or subiessee's obligations under this Lease. if Landlord approves
of an assignment or subletting hereunder and this Lease contains any renewal or extension options,
expansion options, rights of first refusal, rights of first negotiation or any other rights or options pertaining
to additional space in the Building, such rights and/or options shall not run to the assignee or subtenant, it
being agreed by the parties hereto that any such rights and options are personal to Tenant named herein
and may not be transferred.
(c) Conditions to Assignment or Sublease. Tenant agrees that any instrument by which Tenant
assigns or sublets all or any portion of the Premises shall expressly provide that the assignee or subtenant
may not further assign or sublet the assigned or sublet space without Landlord's prior consent (which
consent shall not, subject to Landlord's rights under this Section, be unreasonably withheld or delayed),
and that the assignee or subtenant will comply with all of the provisions of this Lease and that Landlord
may enforce the Lease provisions directly against such assignee or subtenant. If this Lease is assigned,
whether or not in violation of the terms and provisions of this Lease, Landlord may collect Rent from the
assignee. if the Premises, or any part thereof, is sublet, Landlord may, upon a default under this Lease,
collect rent from the subtenant. In either event, Landlord shall apply the amount collected from the
assignee or subtenant to Tenant's obligation to pay Rent under this Lease.
(d) Events Constituting an Assignment or Sublease. For purposes of this Section, the
following events shall be deemed an assignment or sublease, as appropriate: (i) the issuance of equity
interests (whether stock, partnership interests or otherwise) in Tenant, or any assignee or subtenant, if
applicable, or any entity controlling any of them, to any person or group of related persons, in a single
transaction or a series of related or unrelated transactions that results in a transfer of Control (as defined
below) of Tenant, or any assignee or subtenant, if applicable; or (ii) a transfer of Control of Tenant, or any
assignee or subtenant, if applicable, or any entity controlling any of them, in a single transaction or a
series of related or unrelated transactions (including, without limitation, by consolidation, merger,
acquisition or reorganization), except that the transfer of outstanding capital stock or other listed equity
interests by persons or parties other than "insiders" within the meaning of the Securities Exchange Act of
1934, as amended, through the "over-the-counter" market or any recognized national or international
securities exchange, shall not be included in determining whether Control has been transferred. "Control"
shall mean direct or indirect ownership of more than fifty percent (50%) or more of all the legal and
equitable interest in any business entity. In the event of a transfer of ownership of less than 50%,
providing that IMG continues to control greater than 51% of the company, then the issuance of equity
interests shall not be considered an assignment or sublease.
(e) Processing Expenses. Tenant shall pay to Landlord the amount of Landlord's cost of
processing each proposed assignment or subletting, including without limitation, reasonable attorneys' and
other professional fees, and the reasonable cost of Landlord's reasonable administrative, accounting and
clerical time (collectively, "Processing Costs"), and the amount of all reasonable direct and indirect
expense incurred by Landlord arising from the assignee or sublessee taking occupancy of the subject
space, including without limitation, reasonable costs of freight elevator operation for moving of furnishings
and trade fixtures, security service, janitorial and cleaning service, rubbish removal service, costs of
changing signage, and costs of changing locks and making new keys (collectively, "Occupancy Costs").
Notwithstanding anything to the contrary herein, Landlord shall not be required to process any request for
Landlord's consent to an assignment or subletting until Tenant has paid to Landlord Three Hundred
Dollars ($300.00).
(f) Consideration to Landlord. In the event of any assignment or sublease, whether or not
requiring Landlord's consent, Landlord shall be entitled to receive, as Additional Rent, one-half (1/2) of any
consideration, including without limitation, payment for leasehold improvements paid for by Landlord, paid
by the assignee or subtenant for the assignment or sublease and, in the case of sublease, one-half (112)
the excess of the amount of rent paid for the sublet space by the subtenant over the total amount of
Minimum Monthly Rent under Section 5 and Additional Rent under Sections 7 and 9, less reasonable
costs associated with such assignment or sublease including, but not limited to, reasonable costs incurred
by Tenant for improvements and alterations incident to such assignment or sublease, reasonable
attorneys' fees and leasing commissions. Upon Landlord's request, Tenant shall assign to Landlord all
amounts to be paid to Tenant by the assignee or subtenant and shall direct such assignee or subtenant to
pay the same directly to Landlord. If there is more than one sublease under this Lease, the amounts (if
any) to be paid by Tenant to Landlord pursuant to the preceding sentence shall be separately calculated
for each sublease and amounts due Landlord with regard to any one sublease may not be offset against
rental and other consideration due under any other sublease.
(g) Procedures. if Tenant desires to assign this Lease or any interest therein or sublet all or part
of the Premises, Tenant shall give Landlord written notice thereof designating the space proposed to be
sublet and the terms proposed. If the proposed sublease covers the entire Premises and if the term of the
proposed sublease (including any renewal terms) will expire during the final six (6) months of the Term (or
if Tenant has exercised a renewal option, if any, then during the final six (6) months of the subject renewal
period), then Landlord shall have the prior right and option (to be exercised by written notice to Tenant
given within fifteen (15) days after receipt of Tenant's notice) (i) to terminate this Lease, or (ii) to approve
Tenant's proposal to sublet conditional upon Landlord's subsequent written approval of the specific
sublease obtained by Tenant and the specific subtenant named therein. If Landlord exercises its option
described in (ii) above, Tenant shall submit to Landlord for Landlord's written approval Tenant's proposed
sublease agreement (in which the proposed subtenant shall be named) and, if requested by Landlord, a
current reviewed or audited financial statement prepared by a certified public accountant for such
proposed subtenant, or at Landlord's option, a credit report on such proposed subtenant prepared by a
recognized credit reporting agency. If Landlord fails to exercise its option to terminate this Lease, this shall
not be construed as or constitute a waiver of any of the provisions of this Section. If Landlord exercises its
option to terminate this Lease, Landlord shall not have any liability for any real estate brokerage
commission(s) or with respect to any of the costs and expenses that Tenant may have incurred in
connection with its proposed subletting, and Tenant agrees to hold Landlord harmless from and against
any and all claims (including, without limitation, claims for commissions) arising from such proposed
subletting. Landlord's foregoing rights and options shall continue throughout the Term. For purposes of
this Section, a proposed assignment of this Lease in whole or in part shall be deemed a proposed
subletting of such space.
(h) Documentation. No permitted subletting by Tenant shall be effective until there has been
delivered to Landlord a counterpart of the sublease in which the subtenant agrees to be and remain jointly
and severally liable with Tenant for the payment of Rent pertaining to the sublet space and for the
performance of all of the terms and provisions of this Lease; provided, however, that the subtenant shall
be liable to Landlord for rent only in the amount set forth in the sublease. No permitted assignment shall
be effective unless and until there has been delivered to Landlord a counterpart of the assignment in
which the assignee assumes all of Tenant's obligations under this Lease arising on or after the date of the
assignment. The failure or refusal of a subtenant or assignee to execute any such instrument shall not
release or discharge the subtenant or assignee from its liability as set forth above.
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(i) No Merger. Without limiting any of the provisions of this Section, if Tenant has entered into
any subleases of any portion of the Premises, the voluntary or other surrender of this Lease by Tenant, or
a mutual cancellation by Landlord and Tenant, shall not work a merger, and shall, at the option of
Landlord, terminate all or any existing subleases or subtenancies or, at the option of Landlord, operate as
an assignment to Landlord of any or all such subleases or subtenancies.
26. Default. The occurrence of any of the following shall constitute a default by Tenant under this Lease:
(a) Failure to Pay Rent. Failure to pay Rent when due, if the failure continues for a period of five
(5) business days after notice of such default has been given by Landlord to Tenant.
(b) Failure to Comply with Rules and Regulations. Failure to comply with the Rules and
Regulations, if the failure continues for a period of twenty-four (24) hours after notice of such default is
given by Landlord to Tenant. If the failure to comply cannot reasonably be cured within twenty-four (24)
hours, then Tenant shall not be in default under this Lease if Tenant commences to cure the failure to
comply within twenty-four (24) hours and diligently and in good faith continues to cure the failure to
comply.
(c) Other Defaults. Failure to perform any other provision of this Lease, if the failure to perform is
not cured within thirty (30) days after notice of such default has been given by Landlord to Tenant. If the
default cannot reasonably be cured within thirty (30) days, then Tenant shall not be in default under this
Lease if Tenant commences to cure the default within thirty (30) days and diligently and in good faith
continues to cure the default.
(d) Appointment of Trustee or Receiver. The appointment of a trustee or receiver to take
possession of substantially all of the Tenant's assets located at the Premises or of Tenant's interest in this
Lease, where possession is not restored to Tenant within sixty (60) days; or the attachment, execution or
other judicial seizure of substantially all of Tenant's assets located at the Premises or of Tenant's interest
in this Lease, where such seizure is not discharged within sixty (60) days.
27. Remedies. If Tenant commits a default, Landlord shall have the following alternative remedies, which
are in addition to any remedies now or later allowed by law:
(a) Maintain Lease in Force. Maintain this Lease in full force and effect and recover the Rent and
other monetary charges as they become due, without terminating Tenant's right to possession,
irrespective of whether Tenant shall have abandoned the Premises. If Landlord elects to not terminate the
Lease, Landlord shall have the right to attempt to re -let the Premises at such rent and upon such
conditions and for such a term, and to do all acts necessary to maintain or preserve the Premises as
Landlord deems reasonable and necessary without being deemed to have elected to terminate the Lease
including removal of all persons and property from the Premises; such property may be removed and
stored in a public warehouse or elsewhere at the cost of and for the account of Tenant. In the event any
such re -letting occurs, this Lease shall terminate automatically upon the new Tenant taking possession of
the Premises. Notwithstanding that Landlord fails to elect to terminate the Lease initially, Landlord at any
time during the term of this Lease may elect to terminate this Lease by virtue of such previous default of
Tenant.
(b) Terminate Lease. Terminate Tenant's right to possession by any lawful means, in which case
this Lease shall terminate and Tenant shall immediately surrender possession of the Premises to
Landlord. In such event Landlord shall be entitled to recover from Tenant all damages incurred by
Landlord by reason of Tenant's default including without limitation thereto, the following: (i) The worth at
the time of award of any unpaid Rent which had been earned at the time of such termination; plus (ii) the
worth at the time of award of the amount by which the unpaid Rent which would have been earned after
termination until the time of award exceeds the amount of such rental loss that Tenant proves could have
been reasonably avoided; plus (iii) the worth at the time of award of the amount by which the unpaid Rent
for the balance of the Term after the time of award exceeds the amount of such rental loss that is proved
could be reasonably avoided; plus (iv) any other amount necessary to compensate Landlord for all the
detriment proximately caused by Tenant's failure to perform its obligations under this Lease or which in
the ordinary course of things would be likely to result therefrom, including without limitation, any costs or
expenses incurred by Landlord in (A) retaking possession of the Premises, including reasonable attorney
fees therefor, (B) maintaining or preserving the Premises after such default, (C) preparing the Premises
for reletting to a new tenant, including repairs or necessary alterations to the Premises for such reletting,
(D) leasing commissions incident to reletting to a new tenant, and (E) any other costs necessary or
appropriate to relet the Premises; plus (v) at Landlord's election, such other amounts in addition to or in
lieu of the foregoing as may be permitted from time to time by applicable state law. The amounts
described in clauses (C) and (D) shall be amortized over the term of the new tenant's lease, and Tenant
shall only be liable to Landlord for the portion of such amounts attributable to the period prior to the
Expiration Date of this Lease set forth in Section 1. Upon any such re-entry Landlord shall have the right to
make any reasonable repairs, alterations or modifications to the Premises, which Landlord in its sole
discretion deems reasonable and necessary. As used in Subsection 27(b)(i) the "worth at the time of
award" is computed by allowing interest at the rate of twelve percent (12%) per year from the date of
default. As used in Subsections 27(b)(ii) and 27(b)(iii) the "worth at the time of award" is computed by
discounting such amounts at the discount rate of eight percent (8%) per year.
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28. Bankruptcy.
(a) Assumption of Lease. If Tenant becomes a Debtor under Chapter 7 of the Bankruptcy Code
("Code") or a petition for reorganization or adjustment of debts is filed concerning Tenant under Chapters
11 or 13 of the Code, or a proceeding is filed under Chapter 7 of the Code and is transferred to Chapters
11 or 13 of the Code, the Trustee or Tenant, as Debtor and as Debtor -in -Possession, may not elect to
assume this Lease unless, at the time of such assumption, the Trustee or Tenant has:
0) Cured all defaults under the Lease and paid all sums due and owing under the
Lease or provided Landlord with "Adequate Assurance" (as defined below) that: (i) within ten (10) days
from the date of such assumption, the Trustee or Tenant will completely pay all sums due and owing
under this Lease and compensate Landlord for any actual pecuniary loss resulting from any existing
default or breach of this Lease, including without limitation, Landlord's reasonable costs, expenses,
accrued interest, and attorneys' fees incurred as a result of the default or breach; (ii) within twenty (20)
days from the date of such assumption, the Trustee or Tenant will cure all non -monetary defaults and
breaches under this Lease, or, if the nature of such non -monetary defaults is such that more than twenty
(20) days are reasonably required for such cure, that the Trustee or Tenant will commence to cure such
non -monetary defaults within twenty (20) days and thereafter diligently prosecute such cure to completion;
and (iii) the assumption will be subject to all of the provisions of this Lease.
(ii) For purposes of this Section, Landlord and Tenant acknowledge that, in the
context of a bankruptcy proceeding involving Tenant, at a minimum, "Adequate Assurance" shall mean: (i)
the Trustee or Tenant has and will continue to have sufficient unencumbered assets after the payment of
all secured obligations and administrative expenses to assure Landlord that the Trustee or Tenant will
have sufficient funds to fulfill the obligations of Tenant under this Lease; (ii) the Bankruptcy Court shall
have entered an Order segregating sufficient cash payable to Landlord and/or the Trustee or Tenant shall
have granted a valid and perfected first lien and security interest and/or mortgage in or on property of
Trustee or Tenant acceptable as to value and kind to Landlord, to secure to Landlord the obligation of the
Trustee or Tenant to cure the monetary and/or non -monetary defaults and breaches under this Lease
within the time periods set forth above; and (iii) the Trustee or Tenant, at the very minimum, shall deposit
a sum equal to two (2) month's Minimum Monthly Rent to be held by Landlord (without any allowance for
interest thereon) to secure Tenant's future performance under the Lease.
(b) Assignment of Lease. If the Trustee or Tenant has assumed the Lease pursuant to the
provisions of this Section for the purpose of assigning Tenant's interest hereunder to any other person or
entity, such interest may be assigned only after the Trustee, Tenant or the proposed assignee have
complied with all of the terms, covenants and conditions of this Lease, including, without limitation, those
with respect to Additional Rent. Landlord and Tenant acknowledge that such terms, covenants and
conditions are commercially reasonable in the context of a bankruptcy proceeding of Tenant. Any person
or entity to which this Lease is assigned pursuant to the provisions of the Code shall be deemed without
further act or deed to have assumed all of the obligations arising under this Lease on and after the date of
such assignment. Any such assignee shall upon request execute and deliver to Landlord an instrument
confirming such assignment.
(c) Adequate Protection. Upon the filing of a petition by or against Tenant under the Code,
Tenant, as Debtor and as Debtor -In -Possession, and any Trustee who may be appointed agree to
adequately protect Landlord as follows: (i) to perform each and every obligation of Tenant under this
Lease until such time as this Lease is either rejected or assumed by Order of the Bankruptcy Court; (ii) to
pay all monetary obligations required under this Lease, including without limitation, the payment of
Minimum Monthly Rent, Tenant's Share of Real Property Taxes, Tenant's Share of Operating Costs and
any other sums payable by Tenant to Landlord under this Lease which is considered reasonable
compensation for the use and occupancy of the Premises; (iii) provide Landlord a minimum of thirty (30)
days prior written notice, unless a shorter period is agreed to in writing by the parties, of any proceeding
relating to any assumption of this Lease or any intent to abandon the Premises, which abandonment shall
be deemed a rejection of this Lease; and (iv) to perform to the benefit of Landlord as otherwise required
under the Code. The failure of Tenant to comply with the above shall result in an automatic rejection of
this Lease.
29. Limitation of Actions. Any claim, demand, right or defense of any kind by Tenant which is based
upon or arises in connection with this Lease or the negotiations prior to its execution, shall be barred
unless Tenant commences an action thereon, or interposes in a legal proceeding a defense by reason
thereof, within one (1) year after the date Tenant actually becomes aware of the act or omission on which
such claim, demand, right or defense is based.
30. Limitation on Landlord's Liability. Anything in this Lease to the contrary notwithstanding,
covenants, undertakings and agreements herein made on the part of Landlord are made and intended not
as personal covenants, undertakings and agreements or for the purpose of binding Landlord personalty or
the assets of Landlord except Landlord's interest in the Property, but are made and intended for the
purpose of binding only the Landlord's interest in the Property. No personal liability or personal
responsibility is assumed by, nor shall at any time be asserted or enforceable against Landlord or its
partners and their respective heirs, legal representatives, successors and assigns on account of this
Lease or on account of any covenant, undertaking or agreement of Landlord contained in this Lease.
31. Signs. Tenant shall not have the right to place, construct or maintain any sign, advertisement, awning,
banner or other exterior decoration without Landlord's consent. Any sign that Tenant has Landlord's
consent to place, construct and maintain shall comply with all laws, and Tenant shall obtain any approval
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required by such laws. Landlord makes no representation with respect to Tenant's ability to obtain such
approval.
32. Landlord's Right to Enter the Premises. Landlord and its authorized representatives shall have the
right to enter the Premises at reasonable times and upon reasonable prior notice (except in an emergency
when no such notice shall be required) for any of the following purposes: (i) to determine whether the
Premises are in good condition and whether Tenant is complying with its obligations under this Lease, (ii)
to do any maintenance; to make any restoration to the Premises or the Building that Landlord has the right
or the obligation to perform, and to make any improvements to the Premises or the Building that Landlord
deems necessary, (iii) to serve, post or keep posted any notices required or allowed under the provisions
of this Lease, (iv) to post any ordinary "For Sale" signs at any time during the Term and to post any
ordinary "For Lease" signs during the last ninety (90) days of the Term, and (v) to show the Premises to
prospective brokers, agents, purchasers, tenants or lenders, at any time during the Term.
Landlord shall not be liable in any manner for any inconvenience, annoyance, disturbance, loss of
business, nuisance, or other damage arising out of Landlord's entry on the Premises as provided in this
Section, except damage resulting from the grossly negligent or willful acts of Landlord or its authorized
representatives. Tenant shall not be entitled to an abatement or reduction of Rent if Landlord exercises any
right reserved in this Section. Landlord shall conduct its activities on the Premises as allowed in this Section
in a reasonable manner so as to cause minimal inconvenience, annoyance or disturbance to Tenant.
33. Subordination. This Lease is and shall be prior to any mortgage recorded after the date of this Lease
affecting the Property. If, however, a lender requires that this Lease be subordinate to any mortgage, this
Lease shall be subordinate to that mortgage if Landlord first obtains from the lender a written agreement
that provides substantially the following:
"As long as Tenant performs its obligations under this Lease, no foreclosure of,
deed given in lieu of foreclosure of, or sale under the mortgage, and no steps or procedures
taken under the mortgage, shall affect Tenant's rights under this Lease. "
Tenant shall attom to any purchaser at any foreclosure sale, or to any grantee or transferee
designated in any deed given in lieu of foreclosure. Tenant shall execute the written agreement and any other
documents required by the lender to accomplish the purposes of this Section.
34. Right to Estoppel Certificates. Tenant, within ten (10) business days after notice from Landlord,
shall execute and deliver to Landlord, in recordable form, a certificate stating that this Lease is unmodified
and in full force and effect, or in full force and effect as modified and stating the modifications. The
certificate shall also state the amount of Minimum Monthly Rent, the dates to which Rent has been paid in
advance, and the amount of the Security Deposit and such other matters as Landlord may reasonably
request. Failure to deliver the certificate within such ten (10) business day period shall be conclusive upon
Tenant for the benefit of Landlord and any successor to Landlord, that this Lease is in full force and effect
and has not been modified except as may be represented by Landlord requesting the certificate.
35. Transfer of Landlord's Interest. If Landlord sells or transfers the Property, Landlord, on
consummation of the sale or transfer, shall be released from any liability thereafter accruing under this
Lease if Landlord's successor has assumed in writing, for the benefit of Tenant, Landlord's obligations
under this Lease. If any Security Deposit or prepaid rent has been paid by Tenant, Landlord shall transfer
such Security Deposit or prepaid rent to Landlord's successor and on such transfer Landlord shall be
discharged from any further liability with respect to such Security Deposit or prepaid rent.
36. Attorneys' Fees. If either party shall bring any action for relief against the other party, declaratory or
otherwise, arising out of this Lease, including any action by Landlord for the recovery of Rent or
possession of the Premises, the losing party shall pay the successful party a reasonable sum for
attomeys' fees which shall be deemed to have accrued on the commencement of such action and shall be
paid whether or not such action is prosecuted to judgment.
37. Surrender; Holding Over.
(a) Surrender. On expiration or ten (10) days after termination of the Term, Tenant shall
surrender the Premises and all Tenant's improvements and alterations to Landlord broom clean and in
good condition, reasonable wear and tear excepted. Tenant shall remove all of its trade fixtures and
personal property, which personal property specifically includes all cabling installed in the Premises by
Tenant (unless Tenant has received consent from Landlord that such cabling may be surrendered with
and remain in the Premises), within the time period stated in this Section. Tenant, at its cost, shall perform
all restoration made necessary by, and repair any damage to the Premises caused by, the removal of its
trade fixtures, personal property and signs to Landlord's reasonable satisfaction within the time period
stated in this Section. Landlord may, at its election, retain or dispose of in any manner any of Tenant's
trade fixtures or personal property that Tenant does not remove from the Premises on expiration or within
ten (10) days after termination of the Term as allowed or required by the provisions of this Lease by giving
ten (10) days notice to Tenant. Title to any such trade fixtures and personal property that Landlord elects
to retain or dispose of on expiration of such ten (10) day period shall vest in Landlord. Tenant waives all
claims against Landlord for any damage to Tenant resulting from Landlord's retention or disposition of any
such trade fixtures and personal property. Tenant shall be liable to Landlord for Landlord's reasonable
costs for storing, removing and disposing of Tenant's trade fixtures and personal property. If Tenant fails
to surrender the Premises to Landlord on expiration or ten (10) days after termination of the Term as
required by this Section, Tenant shall pay Landlord Rent in an amount equal to 125% of the Minimum
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Monthly Rent applicable for the month immediately prior to the expiration or termination of the Term, or the
amount provided by law, whichever is greater, for the entire time Tenant thus remains in possession and
Tenant shall be liable for, shall indemnify Landlord against and shall hold Landlord harmless from all
damages resulting from Tenant's failure to timely surrender the Premises, including without limitation, (i)
any Rent payable by, or any damages claimed by, any prospective tenant of any part or all of the
Premises, and (ii) Landlord's damages resulting from such prospective tenant rescinding or refusing to
enter into the prospective lease of part or all of the Premises by reason of Tenant's failure to timely
surrender the Premises. If Tenant, without Landlord's prior consent, remains in possession of the
Premises after expiration or termination of the Term, or after the date in any notice given by Landlord to
Tenant terminating this Lease, such possession by Tenant shall be deemed to be a tenancy at sufferance
terminable at any time by either party.
(b) Holding Over with Landlord's Consent. If Tenant, with Landlord's prior consent, remains in
possession of the Premises after expiration or termination of the Term, or after the date in any notice
given by Landlord to Tenant terminating this Lease, such possession by Tenant shall be deemed to be a
month -to -month tenancy terminable by Landlord by a notice given to Tenant at least twenty (20) days prior
to the end of any such monthly period or by Tenant by a notice given to Landlord at least thirty (30) days
prior to the end of any such monthly period. During such month -to -month tenancy, Tenant shall pay Rent
in the amount then agreed to in writing by Landlord and Tenant. All provisions of this Lease, except those
pertaining to term, shall apply to the month -to -month tenancy.
38. Agency Disclosure; Broker.
(a) Agency Disclosure. GVA Kidder Mathews hereby discloses that it represents the Landlord in
this transaction.
(b) Broker. Landlord and Tenant each represent to the other that neither is represented by any
broker, agent or finder with respect to this Lease in any manner, except the Broker(s). The commission
due to the Broker(s) shall be paid by Landlord pursuant to a separate agreement. Each party agrees to
indemnify and hold the other party harmless from and against any and all liability, costs, damages, causes
of action or other proceedings instituted by any broker, agent or finder, licensed or otherwise, claiming
through, under or by reason of the conduct of the indemnifying party in any manner whatsoever in
connection with this Lease.
39. Interest on Unpaid Rent. In addition to the Late Charge as provided in Section 5(b), Rent not paid
when due shall bear interest from the date due until paid at the rate of twelve percent (12%) per year, or
the maximum legal rate of interest, whichever is less.
40. Landlord's Option to Relocate Tenant. [Intentionally omitted.]
41. Definitions. As used in this Lease, the following words and phrases, whether or not capitalized, shall
have the following meanings:
(a) "Additional Rent' means pass-throughs of increases in Operating Costs and Taxes, as defined
in this Lease, and other monetary sums to be paid by Tenant to Landlord under the provisions of this
Lease.
(b) "Alteration" means any addition or change to, or modification of, the Premises made by
Tenant, including without limitation, fixtures, but excluding trade fixtures as defined in this Section.
(c) "Authorized representatives" means any officer, agent, employee, independent contractor or
invitee of either party.
(d) "Award" means all compensation, sums or anything of value awarded, paid or received on a
total or partial condemnation.
(e) "Common Areas" means all areas outside the Premises and within the Building or on the Land
that are provided and designated by Landlord from time to time for the general, non-exclusive use of
Landlord, Tenant and other tenants of the Building and their authorized representatives, including without
limitation, common entrances, lobbies, corridors, stairways and stairwells, elevators, escalators, public
restrooms and other public portions of the Building.
(f) "Condemnation" means the exercise of any governmental power, whether by legal
proceedings or otherwise, by a condemnor and a voluntary sale or transfer by Landlord to any condemnor,
either under threat of condemnation or while legal proceedings for condemnation are pending.
(g) "Condemnor" means any public or quasi -public authority or entity having the power of
condemnation.
(h) "Damage" means any injury, deterioration, or loss to a person, property, the Premises or the
Building caused by another person's acts or omissions or by Acts of God. Damage includes death.
(i) "Damages" means a monetary compensation or indemnity that can be recovered in the courts
by any person who has suffered damage to his person, property or rights through anothers acts or
omissions.
16
0) "Date of taking" means the date the condemnor has the right to possession of the property
being condemned.
(k) "Encumbrance" means any mortgage, deed of trust or other written security device or
agreement affecting the Premises, and the note or other obligation secured by it, that constitutes security
for the payment of a debt or performance of an obligation.
(1) "Expiration" means the coming to an end of the time specified in the Lease as its duration,
including any extension of the Term.
(m) "Force majeure" means strikes, lockouts, labor disputes, shortages of labor or materials, fire or
other casualty, Acts of God or any other cause beyond the reasonable control of a party.
(n) "Good condition" means the good physical condition of the Premises and each portion of the
Premises, including without limitation, all of the Tenant Improvements, Tenant's alterations, Tenant's trade
fixtures, Tenant's Personal Property, all as defined in this Section, signs, walls, interior partitions, windows,
window coverings, glass, doors, carpeting and resilient flooring, ceiling tiles, plumbing fixtures and lighting
fixtures, all of which shall be in conformity with building standard finishes, ordinary wear and tear, damage
by fire or other casualty and taking by condemnation excepted.
(o) "Hazardous substances" means any industrial waste, toxic waste, chemical contaminant or
other substance considered hazardous, toxic or lethal to persons or property or designated as hazardous,
toxic or lethal to persons or property under any laws, including without limitation, asbestos material or
materials containing asbestos.
(p) "Hold harmless" means to defend and indemnify from all liability, losses, penalties, damages
as defined in this Section, costs, expenses (including without limitation, attorneys' fees), causes of action,
claims or judgments arising out of or related to any damage, as defined in this Section, to any person or
property.
(q) "Law" means any constitution, statute, ordinance, regulation, rule, resolution, judicial decision,
administrative order or other requirement of any federal, state, county, municipal or other governmental
agency or authority having jurisdiction over the parties or the Property, or both, in effect either at the time
of execution of this Lease or at any time during the Term, including without limitation, any regulation or
order of a quasi -official entity or body (e.g., board of fire examiners or public utilities) and any legally
effective conditions, covenants or restrictions affecting the Property.
(r) "Lender" means the mortgagee, beneficiary, secured party or other holder of an encumbrance,
as defined in this Section.
(s) "Lien" means a charge imposed on the Premises by someone other than Landlord, by which
the Premises are made security for the performance of an act.
(t) "Maintenance" means repairs, replacement, repainting and cleaning.
(u) "Mortgage" means any deed of trust, mortgage or other written security device or agreement
affecting the Premises, and the note or other obligation secured by it, that constitutes security for the
payment of a debt or performance of an obligation.
(v) "Mortgagee" means the beneficiary under a deed of trust or mortgagee under a mortgage.
(w) "Mortgagor" means the grantor or trustor under a deed of trust or mortgagor under a
mortgage.
(x) "Operating Costs" means all costs of any kind incurred by Landlord in operating, cleaning,
equipping, protecting, lighting, repairing, replacing, heating, air-conditioning, maintaining and insuring the
Property. Operating Costs shall include, without limitation, the following costs: (i) salaries, wages, bonuses
and other compensation (including hospitalization, medical, surgical, retirement plan, pension plan, union
dues, life insurance, including group life insurance, welfare and other fringe benefits, and vacation,
holidays and other paid absence benefits) relating to employees of Landlord or its agents directly engaged
in the operation, repair, or maintenance of the Property; (ii) payroll, social security, workers' compensation,
unemployment and similar taxes with respect to such employees of Landlord or its authorized
representatives, and the cost of providing disability or other benefits imposed by law or otherwise, with
respect to such employees; (iii) uniforms (including the cleaning, replacement and pressing thereof)
provided to such employees; (iv) premiums and other charges incurred by Landlord with respect to fire,
earthquake, other casualty, all risk, rent loss and liability insurance, any other insurance as is deemed
necessary or advisable in the reasonable judgment of Landlord and, after the Base Year, costs of
repairing an insured casualty to the extent of the deductible amount under the applicable insurance policy;
(v) water charges and sewer rents or fees; (vi) license, permit and inspection fees; (vii) sales, use and
excise taxes on goods and services purchased by Landlord in connection with the operation, maintenance
or repair of the Property and Building systems and equipment; (viii) telephone, facsimile, messenger,
express delivery service, postage, stationery supplies and other expenses incurred in connection with the
operation, management, maintenance, or repair of the Property; (ix) property management fees and
expenses; (x) repairs to and physical maintenance of the Property, including building systems and
appurtenances thereto and normal repair and replacement of worn-out equipment, facilities and
installations, but excluding the replacement of major building systems (except to the extent provided in
(xvi) and (xvii) below); (xi) janitorial, window cleaning, security, extermination, water treatment, rubbish
17
removal, plumbing and other services and inspection or service contracts for elevator, electrical, HVAC,
mechanical and other building equipment and systems or as may otherwise be necessary or proper for the
operation or maintenance of the Property; (xii) supplies, tools, materials, and equipment used in
connection with the operation, maintenance or repair of the Property; (xiii) accounting, legal and other
professional fees and expenses; (xiv) painting the exterior or the public or common areas of the Building
and the cost of maintaining the sidewalks, landscaping and other common areas of the Property; (xv) all
costs and expenses for electricity, chilled water, air conditioning, water for heating, gas, fuel, steam, heat,
lights, power and other energy related utilities required in connection with the operation, maintenance and
repair of the Property; (xvi) the cost of any improvements which Landlord elects to capitalize made by
Landlord to the Property during the Term in compliance with the requirements of any laws or regulation or
insurance requirement with which the Property was not required to comply during the Base Year, as
reasonably amortized by Landlord, with interest on the unamortized balance at the rate of twelve percent
(12%) per year, or the maximum legal rate of interest, whichever is less; (xvii) the cost of any
improvements which Landlord elects to capitalize made by Landlord to the Property during the term of this
Lease for the protection of the health and safety of the occupants of the Property or that are intended to
reduce other Operating Costs, as reasonably amortized by Landlord, with interest on the unamortized
balance at the rate of twelve percent (12%) per year, or the maximum legal rate of interest, whichever is
less; (xviii) a reasonable reserve for repair or replacement of equipment used in the maintenance or
operation of the Property; (xix) the cost of furniture, draperies, carpeting, landscaping and other customary
and ordinary items of personal property (excluding paintings, sculptures and other works of art) provided
by Landlord for use in common areas of the Building or in the Building office (to the extent that such
Building office is dedicated to the operation and management of the Property), such costs to be amortized
over the useful life thereof; (xx) Building office rent or rental value; and (xxi) all other costs which, in
accordance with generally sound accounting and management principles used by Landlord, as applied to
the maintenance and operation of office and/or retail buildings, are properly chargeable to the operation
and maintenance of the Property.
Operating Costs shall not include the following: (i) depreciation on the Building; (ii) debt service; (iii)
capital improvements, except as otherwise provided in clauses (xvi) and (xvii) above, (iv) rental under any
ground or underlying leases; (v) Real Property Taxes, (vi) attorneys' fees and expenses incurred in
connection with lease negotiations with prospective tenants, or default or enforcement proceedings with
respect to defaulting tenants; (vii) the cost of tenant improvements; (viii) advertising expenses; (ix) real estate
broker's or other leasing commissions, (x) replacement of or repairs to the structural portions of the roof or
to the exterior walls or any other structural repairs to the Building; (xi) repairs to the extent covered by
insurance proceeds, or paid by Tenant or other third parties; (xii) alterations solely attributable to tenants
of the Property other than Tenant; (xiii) costs of abatement or remediation of Hazardous Substances
brought upon, stored, used or disposed of, in or about the Building or Property by Landlord or by a
particular tenant or occupant of the Building other than Tenant, its agents, employees, contractors,
invitees, sublessees or assigns; (xiv) debt service payments related to any indebtedness encumbering the
Building; (xv) costs of services furnished to some tenants of the Building which are not furnished to
Tenant; (xvi) legal fees or costs associated with disputes with other tenants in the Building; (xvii) legal fees
or costs, brokerage commissions or advertising costs associated with leasing the Building; (xviii)
Landlord's general overhead expenses not related to the Building; or (xiv) costs of capital improvements
or capital assets except as expressly set forth above.
(y) "Parties" means Landlord and Tenant.
(z) "Party" means Landlord or Tenant.
(aa)"Person" means one or more human beings, or legal entities or other artificial persons,
including without limitation, partnerships, corporations, trusts, estates, associations and any combination
of human beings and legal entities.
(bb)"Property" means the Premises, Building and Land.
(cc)"Provision" means any term, agreement, covenant, condition, clause, qualification, restriction,
reservation, or other stipulation in the Lease that defines or otherwise controls, establishes, or limits the
performance required or permitted by either party.
(dd)"Real Property Taxes" means any form of tax, assessment, general assessment, special
assessment, lien, levy, bond obligation, license fee, license tax, tax or excise on rent, or any other levy,
charge or expense, together with any statutory interest thereon, (individually and collectively, the
"Impositions"), now or hereafter imposed or required by any authority having the direct or indirect power to
tax, including any federal, state, county or city government or any school, agricultural, lighting, drainage or
other improvement or special assessment district thereof, (individually and collectively, the "Governmental
Agencies") on any interest of Landlord or Tenant or both (including any legal or equitable interest of
Landlord or its mortgagee, if any) in the Premises or the Property, including without limitation:
(i) any Impositions upon, allocable to or measured by the area of the Premises or
the Property, or the rental payable hereunder, including without limitation, any gross income tax or excise
tax levied by any Governmental Agencies with respect to the receipt of such rental; or
(ii) any Impositions upon or with respect to the possession, leasing, operation,
management, maintenance, alteration, repair or use or occupancy by Tenant of the Premises or any
portion thereof, or
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(iii) any Impositions upon or with respect to the building equipment and personal
property used in connection with the operation and maintenance of the Property or upon or with respect to
the furniture, fixtures and decorations in the common areas of the Property.
(iv) any Impositions upon this Lease or this transaction or any document to which
Tenant is a party creating or transferring an interest or an estate in the Premises; or
(v) any Impositions by Governmental Agencies (whether or not such Impositions
constitute tax receipts) in substitution, partially or totally, of any impositions now or previously included
within the definition of real property taxes, including those calculated to increase tax increments to
Governmental Agencies and to pay for such services as fire protection, water drainage, street, sidewalk
and road maintenance, refuse removal or other governmental services formerly provided without charge
to property owners or occupants; or
(vi) any and all costs, including without limitation, the fees of attorneys, tax
consultants and experts, incurred by Landlord should Landlord elect to negotiate or contest the amount of
such real property taxes in formal or informal proceedings before the Governmental Agency imposing
such real property taxes; provided, however, that real property taxes shall in no event include Landlord's
general income, inheritance, estate, gift or franchise taxes. Notwithstanding the foregoing, the term Real
Property Taxes shall not include (a) any tax, levy, assessment, charge or surcharge resulting from the
contamination of real property by Hazardous Substances, and (c) any interest or penalties for the late
payment or failure to pay any real property taxes.
(ee)"Rent" means Minimum Monthly Rent, as adjusted from time to time under this Lease,
Additional Rent, Security Deposit, prepaid rent, all as defined in this Lease, payments of Tenant's Share of
increases in Real Property Taxes and Operating Costs, insurance, utilities and other charges payable by
Tenant to Landlord.
(ff) "Rentable square feet of space" as to the Premises or the Building, as the case may be,
means the number of usable square feet of space times the applicable R/U Ratio(s) as defined in this
Section.
(gg)"Restoration" means the reconstruction, rebuilding, rehabilitation and repairs that are
necessary to return damaged portions of the Premises and the Building to substantially the same physical
condition as they were in immediately before the damage.
(hh)"R/U Ratio" means the rentable area of a floor of the Building divided by the usable area of
such floor, both of which shall be computed in accordance with American National Standard Z65.1-1996
Method of Measuring Floor Space in Office Buildings as published by the Building Owners and Managers
Association, as amended from time to time.
(ii) "Substantially complete" or "substantially completed" or "substantial completion" means the
completion of Landlord's construction obligation, subject to completion or correction of "punch list" items,
that is, minor items of incomplete or defective work or materials or mechanical maladjustments that are of
such a nature that they do not materially interfere with or impair Tenant's use of the Premises for the
Permitted Use.
(jj) "Successor" means assignee, transferee, personal representative, heir, or other person or
entity succeeding lawfully, and pursuant to the provisions of this Lease, to the rights or obligations of either
party.
(kk)'Tenant Improvements" means (i) the improvements and alterations set forth in Exhibit C, (ii)
window coverings, lighting fixtures, plumbing fixtures, cabinetry and other fixtures installed by either
Landlord or Tenant at any time during the Term, and (iii) any improvements and alterations of the
Premises made for Tenant by Landlord at any time during the Term.
(II) 'Tenant's personal property' means Tenant's equipment, furniture, and movable property
(including cabling) placed in the Premises by Tenant.
(mm) 'Tenant's trade fixtures" means any property attached to the Premises by Tenant.
(nn)"Termination" means the ending of the Term for any reason before expiration, as defined in
this Section.
(oo)"Work" means the construction of any improvements or alterations or the performance of any
repairs done by Tenant or caused to be done by Tenant on the Premises as permitted by this Lease.
42. Miscellaneous Provisions.
(a) Entire Agreement. This Lease sets forth the entire agreement of the parties as to the subject
matter hereof and supersedes all prior discussions and understandings between them. This Lease may
not be amended or rescinded in any manner except by an instrument in writing signed by a duly
authorized officer or representative of each party hereto.
(b) Governing Law. This Lease shall be governed by, and construed and enforced in accordance
with, the laws of the State of Washington.
19
(c) Severability. Should any of the provisions of this Lease be found to be invalid, illegal or
unenforceable by any court of competent jurisdiction, such provision shall be stricken and the remainder
of this Lease shall nonetheless remain in full force and effect unless striking such provision shall materially
alter the intention of the parties.
(d) Jurisdiction. In the event any action is brought to enforce any of the provisions of this Lease,
the parties agree to be subject to exclusive in personam jurisdiction in the Superior Court in and for King
County Washington or in the United States District Court for the Western District of Washington and agree
that in any such action venue shall lie exclusively at Seattle, Washington.
(e) Waiver. No waiver of any right under this Lease shall be effective unless contained in a writing
signed by a duly authorized officer or representative of the party sought to be charged with the waiver and
no waiver of any right arising from any breach or failure to perform shall be deemed to be a waiver of any
future right or of any other right arising under this Lease.
(f) Captions. Section captions contained in this Lease are included for convenience only and
form no part of the agreement between the parties.
(g) Notices. All notices or requests required or permitted under this Lease shall be in writing. If
given by Landlord such notices or requests shall be personally delivered, delivered by a reputable express
delivery service such as Federal Express or DHL, or sent by certified mail, return receipt requested,
postage prepaid. If given by Tenant such notices or requests shall be personally delivered, delivered by a
reputable express delivery service such as Federal Express or DHL, sent by certified mail, return receipt
requested, postage prepaid. Such notices or requests shall be deemed given when so delivered or mailed,
irrespective of whether such notice or request is actually received by the addressee. All notices or
requests to Landlord shall be sent to Landlord at Landlord's Address for Notice and all notices or requests
to Tenant shall be sent to Tenant at Tenant's Address for Notice. Either party may change the address to
which notices shall be sent by notice to the other party.
(h) Binding Effect. Subject to the provisions of Section 25 captioned "Assignment and
Subletting", this Lease shall be binding upon, and inure to the benefit of, the parties hereto and their
respective successors and assigns. No permitted assignment of this Lease or Tenant's rights hereunder
shall be effective against Landlord unless and until an executed counterpart of the instrument of
assignment shall have been delivered to Landlord and Landlord shall have been furnished with the name
and address of the assignee. The term 'Tenant" shall be deemed to include the assignee under any such
permitted assignment.
(i) Effectiveness. This Lease shall not be binding or effective until properly executed and
delivered by Landlord and Tenant.
0) Gender and Number. As used in this Lease, the masculine shall include the feminine and
neuter, the feminine shall include the masculine and neuter, the neuter shall include the masculine and
feminine, the singular shall include the plural and the plural shall include the singular, as the context may
require.
(k) Time of the Essence. Time is of the essence in the performance of all covenants and
conditions in this Lease for which time is a factor.
Dated the date first above written.
Landlord:
The City of Renton, Washington, a Washington
municipal corporation
Title:
Date executed:
By:
Tenant:
Intensive Asset Management, a Nevada
corporation
Title:
Date executed:
By:
Title:
Title: Date executed:
Date executed:
This Lease has been prepared for submission to you and your attorney. GVA Kidder Mathews is not
authorized to give legal or tax advice. Neither Landlord nor GVA Kidder Mathews makes any representations
or recommendations as to the legal sufficiency, legal effect or tax consequences of this document or any
20
transaction relating thereto. These are questions for your attorney with whom you should consult before
signing the document to determine whether your legal rights are adequately protected.
[Notary attached]
21
STATE OF )
) ss.
COUNTY OF )
I certify that I know or have satisfactory evidence that is the person who
appeared before me, and said person acknowledged that he/she signed this instrument, on oath stated that he/she was
authorized to execute the instrument, and acknowledged it as the (title) of (entity)
, a to be the free and voluntary act
of such party for the uses and purposes mentioned in the instrument.
Witness my hand and official seal this day
STATE OF )
) ss.
COUNTY OF )
20
Notary Public
(Print Name)
Residing at
My Commission Expires:
I certify that I know or have satisfactory evidence that is the person who
appeared before me, and said person acknowledged that he/she signed this instrument, on oath stated that he/she was
authorized to execute the instrument, and acknowledged it as the (title) of (entity)
, a to be the free and voluntary act
of such party for the uses and purposes mentioned in the instrument.
Witness my hand and official seal this day
STATE OF )
) ss.
COUNTY OF )
20
Notary Public
(Print Name)
Residing at
My Commission Expires:
I certify that I know or have satisfactory evidence that is the person who
appeared before me, and said person acknowledged that he/she signed this instrument, on oath stated that he/she was
authorized to execute the instrument, and acknowledged it as the (title) of (entity)
. a to be the free and voluntary act
of such party for the uses and purposes mentioned in the instrument.
Witness my hand and official seal this day 20
Notary Public
(Print Name)
Residing at
My Commission Expires:
22
I
CITY OF RENTON COUNCIL AGENDA BILL
Submitting Data: Planning/Building/Public Works
Dept/Div/Board.. Transportation Systems
Staff Contact...... Sharon Griffin, x7232
Subject:
Transportation Division Fund 317 2004 Reallocation
Exhibits:
Issue Paper with Attachment A
2004 Reallocation Summary
2004-2009 Six -Year TIP Summary of Funding Sources
2004 Preliminary Budget, Fund 317 Sheet
For Agenda of -
February 9, 2004
Agenda Status
Consent ..............
Public Hearing..
Correspondence..
Ordinance .............
Resolution............
Old Business........
New Business.......
Study Sessions......
Information.........
Recommended Action: Approvals:
Legal Dept.........
Refer to Transportation Committee Finance Dept...... X
Other ...............
Fiscal Impact:
Expenditure Required... $8,460,400 Transfer/Amendment.......
Amount Budgeted....... $8,460,400 Revenue Generated.........
Total Project Budget $8,460,400 City Share Total Project..
SUMMARY OF ACTION:
The Transportation Division does not need to carry forward funds, since the adopted 2004 budget
is sufficient for expected project expenditures. The 2004-2009 Six -Year Transportation
Improvement Program (TIP) estimated a 2004 expenditure of $6,960,385. An additional
$1,500,000 was transferred from the General Fund for the Boeing Redevelopment road
improvement design, for a total of $8,460,400 (rounded). The Transportation Division's total
2004 budget will reflect the total of $8,460,400, but individual project line items within this
framework will change. See the issue paper and reallocation summary for details.
STAFF RECOMMENDATION:
Transportation Systems staff recommends that Council concur with the approval of the
reallocation of the projects by line item for a total 2004 appropriation of $8,460,400.
HAtransportation\admin\2004 agenda bill\AB 2004 Reallocation
CITY OF RENTON
PLANNING/BUILDING/PUBLIC WORKS
MEMORANDUM
DATE: February 9, 2004
TO: Don Persson, Council President
Members of the Renton City Council
VIA: -P Kathy Keolker-Wheeler, Mayor
' 0
FROM: Gregg Zimmerman', kdministrator
STAFF CONTACT: Sharon Griffin, ext. 7232
SUBJECT: Transportation Division 2004 Reallocation for Fund 317
ISSUE:
The Transportation Division does not need to carry forward funds, since the adopted 2004
budget is sufficient for expected project expenditures. However, we do need to reallocate
funding among projects within the 2004 budget to better suit our funding needs. These changes
have developed since the Council adopted the 2004-2009 Transportation Improvement Program
(TIP) in July 2003.
RECOMMENDATION:
Transportation Systems recommends that Council concur with the approval of the reallocation of
the projects by line item for a total 2004 appropriation of $8,460,400.
The Transportation Division is requesting Council approval for a 2004 reallocation of project
line items within the appropriated $8,460,400. The Division's 2004 Reallocation Summary is
attached and it identifies the changes by individual project. The "comment" column on the list
identifies specific reasons for the project changes. Adjustments made to the allocation of project
line items include the following categories:
In general, projects in the attached list for which a decrease in allocated funding is
requested are typically projects that are closer to completion due to an accelerated
schedule in 2003 or projects that have had a change in project scope or schedule. These
reductions in 23 projects are applied to the 13 projects requiring funding increases.
2. In general, projects in the attached list for which an increase in allocated funding is
requested are typically projects that did not fully expend their year 2003 allocation. Due
to reductions in allocations for 23 projects on the list, there is sufficient funding available
to cover the needed 2004 increase in 13 projects.
Transportation Division 2004 Reallocation for Fund 317
February 9, 2004
Page 2
3. Specifically, three projects requiring more funding are due to emergency situations. The
Bridge Inspection Program (#15) needs to fund a temporary emergency repair to the
Monster Road Bridge; the Monster Road Bridge project (new) needs to fund the design
and construction of a permanent repair; and the Lake Washington Boulevard Slip Plane
(#52) project needs to fund the design and construction of the road. Work must proceed
on these emergency projects.
4. Specifically, three projects requiring more funding are due to new funding opportunities.
We received two new Transportation Improvement Board (TIB) grant awards in
November 2003 that require matching funds. One grant award is for Rainier Ave. S
(S/SW 7" St. to S 41h Pl.) road and railroad bridge design and construction. The second
grant award is for the Benson Road (S 26th St to Main Ave. S) pedestrian project
(sidewalk and refuge island). The third funding opportunity is preliminary design for the
North Renton Redevelopment project.
5. Council approval of the 2004 reallocation assists Project Managers in executing their
2004 Work Plan with consistency. The 2004 Work Plan was updated in January 2004.
The remaining project allocations remain the same.
Attachment A provides a brief summary of the new projects identified in items #3 and 4 above.
In past years, the Transportation Division did a mid -year budget adjustment during the approval
process of the Transportation Improvement Program in July of each year. This practice was
discontinued several years ago. Due to the ever -changing nature of transportation projects,
budget adjustments are required to keep up to date. Some of the changes concern processes
controlled by others that impact the schedule, citizen requests impacting expenditure
requirements, and new revenue source opportunities (grants or discretionary awards) that
accelerate project implementation.
In past years, the Transportation Division typically carried forward unexpended project funding,
as needed, for individual projects. This required increasing the total annual appropriation. We
now reallocate additional funding in some of the projects while reducing the allocation for other
projects. The result is an unchanged total 2004 annual appropriation.
Attachment
cc: Nick Afzali
Sandra Meyer
Sharon Griffin
Sylvia Doerschel, Finance
Nancy Violante, Finance
Project File
H:\Transportation\Planning\Sharon\lssue Papers\IP 2004 Reallocation
Transportation Division
2004 Reallocation for Fund 317
Attachment A
Project Descriptions
Monster Road Bridge Repair
Project Elements: Design and construct emergency permanent bridge repair.
Total Project Cost: $ 500,000 estimated
The permanent fix recommended is placement of external post -tensioning rods,
approximately 50 feet in length, placed along the girders, through the piers, and perhaps
severing the tension rods along the top deck extending through the deck joints.
Rainier Avenue S — S/SW 71h Street to S 41h Place
Grant Agency: Transportation Improvement Board (TIB)
Program: Transportation Partnership Program (TPP)
Project Elements: Design and construct roadway/pedestrian capacity and safety
improvements.
Total Project Cost: $ 3,670,000
TIB Grant Award: $ 2,202,000 (60%)
City Match: $ 1,468,000 (40%)
The proposed project improvements complete a missing link, remove barriers, eliminate
sub -standard conditions, control and consolidate access points to existing major
businesses, and provide an enhanced pedestrian environment. Project elements include
adding a third northbound through -lane, adding a left -turn lane, removing the Burlington
Northern Santa Fe (BNSF) railroad bridge support pier, lowering the roadway to provide
standard clearance under the bridge, widening sidewalks to ten feet, and adding
streetscaping.
Benson Road Pedestrian — S 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:
TIB Grant Award:
City Match:
$ 481,900
$ 150,000 (31 %)
$ 331,900 (69%)
Approximately 3,300 lineal feet of new sidewalk, curb and gutter will be constructed
between City Hall and South 261h 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 I-405 overpass. 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.
Transportation Division
2004 Reallocation Summary
1 /29/2004
TIP
Project Title
Budget
Change
Appropriation
Comment
1
Street Overlay Program
$ 430,600
$ 430,600
2
SR 167 / SW 27th St/ Strander By
$ 10,000
-7,400
$ 2,600
Reduced planning need.
3
Strander By/SW 27th St Connect.
$ 1,400,000
-320,000
$ 1,080,000
Rescheduled funding. Working on 30% design.
4
SR 169 HOV - 140th to SR900
$ 37,600
12,400
$ 50,000
ROW plans; funding for Phase 1 is not included ($1.2 b
5
Renton Urban Shuttle (RUSH)
$ 60,000
-55,000
$ 5,000
Reduced city contribution; staff evaluating program.
6
Transit Program
$ 40,000
-19,600
$ 20,400
Revised to cover staff time and coordination.
7
Rainier Av Corridor Study / Impro
.$ 160,000
$ 160,000
8
NE3rd / NE 4th Corridor
$ 184,000
-44,000
$ 140,000
Updated estimate for layout plan and project development.
9
Walkway Program
$ 250,000
$ 250,000
10
Transit Priority Signal System
$ 238,500
440,400
$ 678,900
Implementing system; testing equipment prior to payment.
11
Duvall Ave NE
$ 983,100
-483,100
$ 500,000
Duvall Ave. intersection split out.
12
Sunset/Duvall Intersection
115,000
$ 115,000
Reschedule design & const.; additional survey work.
13
Arterial Circulation Program
$ 200,000
-100,000
$ 100,000
Fewer consultant studies anticipated.
14
Project Development/Predesign
$ 175,000
$ 175,000
15
113ridge Inspection & Repair
$ 19,000
61,000
$ 80,000
Emergency repair (crackseal, etc.) to Monster Rd. Bridge.
16
Loop Replacement Program
$ 20,000
$ 20,000
17
Sign Replacement Program
$ 7,500
$ 7,500
18
Pole Program
$ 48,400
-3,400
$ 45,000
Based on past experience, lower figure needed.
19
Transit Center Video
$ 20,000
-10,000
$ 10,000
Video less expensive.
20
1-405 HOV Direct Access
$ 20,000
$ 20,000
21
JTraffic Safety Program
$ 109,100
$ 109,100
22
Traffic Efficiency Program
$ 251,900
-84,400
$ 167,500
Updated estimate for controllers & communication equipment.
23
CBD Bike & Ped. Connections
$ 68,000
-43,000
$ 25,000
Downtown curb ramps originally scheduled for 2003.
24
Arterial Rehab. Prog.
$ 103,500
$ 103,500
25
RR Crossing Safety Prog.
$ 5,000
$ 5,000
26
TDM Program
$ 64,200
$ 64,200
27
Lake Wash. Bv-Coulon to NE 44th
$ 10,000
-10,000
$ -
Redevelopment has slowed; no activity anticipated now.
28
Trans Concurrency
$ 40,000
-40,000
$ -
Scoping project for 2005.
29
Missing Links Program
$ 30,000
$ 30,000
Smithers project.
30
GIS Needs Assessment
$ 10,000
25,000
$ 35,000
King County GIS contract & city staff time
31
Sunset/1-405 Interchange
$ 10,000
10,000
$ 20,000
Additional staff time due to Nickel gas tax projects.
32
Grady Wy Corridor Study
$ 45,000
-40,000
$ 5,000
Scoping project for 2004.
33
JBIcycle Route Dev. Program
$ 20,000
$ 20,000
34
Lake Wash. By -Park to Coulon Pk
$ 15,000
$ 15,000
35
Interagency Signal Coord.
$ 12,000
$ 12,000
Tukwila lead.
36
Environmental Monitoring
$ 100,000
$ 100,000
New DOE/Corps requirements for Oakesdale, Ph. 1 & 2
37
SW 7th St./Lind Ave SW
$ 12,000
218,000
$ 230,000
2003 construction moved to 2004.
38
Oakesdale Ave. SW Phase 2
$ 20,000
-20,000
$ -
Completed project.
39
Trans -Valley & Soos Creek Corr.
$ 17,000
-14,000
$ 3,000
King County lead. Project on hold.
40
Logan Av Bridge Seismic Retrofit
$ 2,500
$ 2,500
41
WSDOT Coordination Program
$ 10,000
$ 10,000
42
1 % for the Arts
$ 50,000
-30,000
$ 20,000
Reduced need for 2003 project transfer to Fund 125.
43
Arterial HOV Program
$ 30,000
-27,000
$ 3,000
Scoping project for 2005. Staff time.
44
Park -Sunset Corridor
$ 5,000
-3,000
$ 2,000
Staff time for reviews as part of 1-405 work.
45
Lind Av-SW 16th - SW 43rd
$ 5,000
$ 5,000
46
Benson Rd S / S 31st St
$ 62,000
76,500
$ 138,500
King County lead; schedule undetermined; costs will be higher.
47
South Renton Project
$ 135,000
$ 135,000
48
NE 4th St/Hoquiam Av NE
$ 358,000
-302,900
$ 55,100
To complete design. Construction in 2005.
49
Trans Valley ITS
$ 5,000
45,000
$ 50,000
Contribution to regional project previously undetermined.
50
Grady Wy Approach at Rainier Av
$ 20,000
-15,000
$ 5,000
Construction complete. As -built drawings pending.
51
Houser Wy S - Main to Burnett
$ -
$ -
52
Lake Wash. By Slip Plane
$ 100,000
500,000
$ 600,000
Complete design and construction.
53
Logan Av Concrete Panel Repair
$ -
$ -
54
Carr/Mill Signal
$ 5,000
-5,000
$ -
Project timing unknown; joint project with King County.
55
Duvall Ave NE - King County
$ 926,500
-426,500
$ 500,000
North Renton Redevelopment
$ 1,500,000
$ 1,500,000
New project. 30% design, supplemental, staff time.
Rainier Av, - SW 7th to 4th PI
80,000
$ 80,000
New TIB grant award; split from Rainier Av. Corridor.
Benson Rd - S 26th to Main
20,000
$ 20,000
New TIB grant - 50% design; split from Walkway Program.
Monster Road Bridge
500,000
$ 500,000 1
Emergency design and construction.
Total Sources
$ 8,460,400
$ 8,460,400
2004 Reallocation Summary.xls
CITY OF RENTON
PLANNING/BUILDING/PUBLIC WORKS
TRANSPORTATION SYSTEMS DIVISION
2004 - 2009 SIX -YEAR TIP
SUMMARY OF FUNDING SOURCES
eno
ITEM
Period Total
2004
2005
2006
2007
2008
2009
SIX -YEAR PROJECT COSTS:
Project Development
Precon Eng/Admin
R-O-W (includes Admin)
Construction Contract Fee
Construction Eng/Admin
Other
Sub -TOTAL SIX -YEAR COST
3,666,300
8,728,493
6,819,702
93,971,730
9,939,200
1,339,270
124,464,695
913,400
2,598,785
1,192,300
1,557,030
225,500
473,370
6,960,385
631,100
1,117,900
248,402
5,180,600
591,300
197,900
7,967,202
534,200
829,612
3,740,600
398,700
151,500
5,654,612
534,200
529,200
524,200
3,589,196
441,000
152,000
3,079,000
2,300,000
10,892,400
38,908,100
33,693,000
1,342,700
3,992,500
3,388,500
192,500
151,500
172,500
19,629,996
46,322,300
37,930,200
SOURCE OF FUNDS:
* This revenue is at risk.
1/2 Cent Gas Tax
Business License Fee
Vehicle License. Fee *
Grants In -Hand
Mitigation In -Hand
L.I.D.'s Formed
2,091,000
11,280,000
2,100,000
6,933,766
3,390,778
348,500
1,880,000
350,000
1,840,542
1,389,295
348,500
1,880,000
350,000
3,549,277
821,647
348,500
1,880,000
350,000
1,151,000
760,336
348,500
348,500
348,500
1,880,000
1,880,000
0,000
1,88880,000
350,000
350,000
392,947
419,500
Other In -Hand*
Sub - TOTAL SIX -YEAR FUNDED
Grants Proposed
Mitigation Proposed
2,823,602
28,619,146
4,103,000
1,152,048
6,960,385
1,017,778
7,967,202
608,776
5,098,612
556,000
15,000
15,000
15,000
3,405,947
2,593,500
2,593,500
1,635,000
1,912,000
L.I.D.'s Proposed
Other Proposed
Undetermined TOTAL SOURCES - FUNDED & UNFUNDED
12,420,0001
79,322,549
9
2,637,000
5,753,000
4,030,000
11,952,049
,99
36,063,800
31,306,700
6, ,30
,9 0, 0
summ of source �6 % (Q 0 400 v (� u,,7d �U
J % 07/102003 8:08
4 - 2 LFIN4AL�� So U, OUO /Uor11-, k1Pi-)for> 2ede ve lopmeKt
12
Fund 317, Transportation Capital Improvement Fund
This fund supports City of Renton Transportation projects and projects
linked with various State and Federal Funding programs. Many of the
projects are dependent on acquisition of outside grants, formation of LID's
and mitigation revenue. Investment earnings generated on the fund balance
throughout the year are credited to the General Fund.
Table 6-32. Fund 317, Transportation Capital Improvement Fund
2001
2002
2003
2003
2004
Change 2,o04-
Item
Actual
Actual
Reallocation
Actual
Budget
03-04
REVENUE:
Per Capita Business License Fees
1,967,436
1,790,890
1,880,000
1) 6Z7, 37S
+,936,4G -
3.0% I )S50, D D0
Transportation Grants
2,441,158
2,277,504
911,600
Z) 17S, 1382.
2,150,000
135.8%Z,1S0,D00
Local Vehicle License Fee/Transp
452,053
466,822
350,000
(I b 64-
3weo0
0.0% O
King County Mit
0
0
0
2;200'e00'
100.0% o
Charges for Svcs/Plan Sales, Misc
33,440
515
0
1 12-(o
0
N/A
Miscellaneous
10,000
0
0
�}, 1 v 0
0
WA 4A
Trf-In Fm 103
100,000
0
0
1, UOo) Lo 00'1` -9-
WA 500, 000
Trf-In I'm 125
42,000
0
0
0
WA
Trf-In I'm 305
941,509
1,200,000
2,451,400
533, 300
1,389,300
-43.3% 1, 3811, 30 0
Trf-In I'm Arterial Str Fd/Overlay Prgm
678,500
353,500
353,500
35 3, 5-0
--0--
-100.0% ,348) Sao
TOTAL NEW REVENUE
6,666,096
6,089,231
5,946,500
5)706,q 167
8,026,70
35.0% 7 26� 800
Use of Prior Yr Revenue
0
0
714,700
1;19�7W
58.8% 1) 19 2) 6 00
TOTAL RESOURCES
6,666,096
6,089,231
6,661,200
4,464,409—
37.520 8 )460,460
EXPENDITURES:
TBZ Planning Studies
1,440
0
0
0
WA
Transportation Projects
8,352,610
4,779,559
6,661,200
4, 2-62., 35B
4,460,00-
37.5% 13)460, J
TOTAL COMMITTED EXPENDITURES
8,354,050
4,779,559
6,661,200
8,160;4W
37.5% g )46o J oo
Increase to Reserves
0
0
0
0
WA
TOTAL EXPENDITURES 8,354,050 4,779,559 6,661,200 11, 60 408 37.5%
Fund Balance, January 1
7,225,572
5,537,618
6,847,290
6,132,590 -10.4%
Total New Revenue
6,666,096
6,089,231
5,946,500
8,025,700 35.0%
Total Committed Expenditures
(8,354,050)
(4,779,559)
(6,661,200)
(9,160,400) 37.5%
Undesignated Fund Balance, Dec 31
5,537,618
6,847,290
6,132,590
4,997,890 -18.5%
oh- cot�v�nr i�� o� J-f-I�-, 000(7S�S,") L7z0 4-2S,o0o)
�2cAtve✓fopw,14 "
6-34 Budget by Fund
CITY OF RENTON COUNCIL AGENDA BILL
>ubmitting Data: Planning/Building/Public Works
Dept/Div/Board.. Transportation Division
Staff Contact...... Ryan Zulauf, x7471
Subject:
Renton Municipal Airport - Selection of Tenant for
the 608 Building
Exhibits:
Issue Paper
Request for Proposals (Aerodyne, Regan Aircraft,
Kenmore Air Harbor, Inc.)
For Agenda of:
February 9, 2004
Agenda Status
Consent ..............
Public Hearing..
Correspondence..
Ordinance .............
Resolution........... .
Old Business........
New Business....... X
Study Sessions......
Information........ .
Recommended Action: Approvals:
Legal Dept......... N/A
Refer to Transportation Committee Finance Dept...... N/A
Other.
Fiscal Impact:
Expenditure Required... Transfer/Amendment.......
Amount Budgeted....... Revenue Generated.........
Total Proiect Budget N/A City Share Total Proiect..
SUMMARY OF ACTION:
A City -owned hangar (the 608 Building) is available for leasing. There is a strong demand for both
hangars and locations to operate aviation related businesses on the airfield. A Request for Proposal
(RFP) was submitted to the private sector requesting that proposals for aviation related businesses be
submitted to the City. The City received proposals from Aerodyne, Regan Aircraft and Kenmore Air
Harbor, Inc. The Mayor and Council will select the future tenant for the 608 Building and staff will
initiate lease negotiations with the prospective tenant.
STAFF RECOMMENDATION:
Staff recommends that Kenmore Air Harbor, Inc. be selected to initiate lease negotiations with the
City to lease the 608 Building to establish an:
1. Aircraft radio and instrument repair station;
2. Aircraft and float sales office;
3. Float conversions; and
4. Potentially conduct partial to full -service maintenance for wheeled aircraft and seaplanes.
Kenmore Air Harbor, Inc. cannot initiate commercial service from the 608 Building due to set
;onstraints that do not make this possible. Proposed uses are essentially the same that have been there
for the last thirty years.
H:Trans/Airport/OlAdmin\121eases\RFP608 BLDG\608 Hangar Agenda Bill
CITY OF RENTON
PLANNING/BUILDING/PUBLIC WORKS
MEMORANDUM
DATE: February 9, 2004
TO: Don Persson, Council President
Members of the Renton City Council
VIA: �J Mayor Kathy Keolker-Wheeler
FROM: Gregg Zimmermak /PW Administrator P/B
STAFF CONTACT: Ryan Zulauf, x7471
SUBJECT: Renton Municipal Airport — Selection of Tenant for the 608
Building
ISSUE:
Selection of a tenant to lease the Airport's 608 Building.
RECOMMENDATION:
Staff recommends that Kenmore Air Harbor, Inc. be selected to initiate lease negotiations
with the City to lease the 608 Building to establish an:
1. Aircraft radio and instrument repair station;
2. Aircraft and float sales office;
3. Float conversions; and
4. Potentially conduct partial to full -service maintenance for wheeled aircraft and
seaplanes.
Kenmore Air Harbor, Inc. cannot initiate commercial service from the 608 Building due to
site constraints that do not make this possible. Proposed uses are essentially the same that
have been there for the last thirty years.
BACKGROUND SUMMARY:
A City owned hangar (the 608 Building) is available for leasing. There is a strong demand for
both hangars and locations to operate aviation related businesses on the airfield.
To ensure competing public interests are best served at the airport, the City developed a Request
for Proposal (RFP) to advertise to the private sector that airport property was available for
leasing for aviation related businesses. The RFP was developed to conform to the Airport
Leasing Policies adopted by the City Council in December 2002.
The RFP specifically required that parties interested in establishing a business on the airfield
submit their qualifications and describe the proposed "Purpose of Use" of the property. The City
received a proposal from Aerodyne, Regan Aircraft and Kenmore Air Harbor, Inc.
February 9, 2004
Selection of Tenant for the 608 Building
Page 2
The Proposals
Aerodyne, which is owned by South Cove Ventures, LLC proposes to tear down the existing
hangar and construct a more modern facility, which would utilize the site more efficiently. The
proposed Purpose of Use of the leased area would be an aircraft interior company and an
avionics shop. Gross sales receipts would be up to $500k the first year, with sales increasing as
the business developed.
The Aerodyne proposal would require the sale of the current 608 Building in order for the 608
Building to be replaced by a new facility. The sale of the 608 Building would net the Airport
Fund $136,000 while leasing the building would provide approximately $194,609 over a ten-year
period. In addition, Aerodyne would not be providing aviation services to the public from the
leased area. Instead, Aerodyne would sublease space to another company to do business on the
airport. This would increase the overhead of the company that is actually providing aviation
related services to the public, potentially making that business less stable over time.
Regan Aircraft, owned by Robert Regan, is an existing aircraft repair shop on the airport with an
established customer base. Regan Aircraft specializes in engine overhaul, airframe repair,
maintenance, modification, avionics installation and maintenance. The proposed Purpose of Use
of the leased area would be similar to the existing services offered with an expansion of services
as listed in the Action Plan and Long Term Goals submitted with the RFP (see attachment). The
company is currently limited in its growth by the lack of available commercial space at Renton.
As a sublessee of Kaynan, Regan Aircraft currently has no Operating Permit with the City, but
has been doing business on the airport since 1990. The Airport Manager has committed to
helping Regan Aircraft gain approval of an Operating Permit by the Mayor and Council. While
Regan Aircraft has a strong, loyal customer base at Renton, Regan Aircraft needs to establish its
legitimacy with the City as a commercial business on the airport before being rewarded by the
City with additional leased area to expand their business.
Kenmore Air Harbor, Inc. (Kenmore Air) is the world leader in seaplane fixed based operations.
Kenmore Air would establish an aircraft radio and instrument repair station, an aircraft and float
sales office, conduct float conversions, and eventually conduct partial to full -service
maintenance for wheeled and seaplane aircraft. Sales after three years are expected to be in the
$2.0 million dollar range which will increase sales tax receipts for the City.
Kenmore Air is not proposing to use the 608 Building as a based for commercial seaplane
flights, nor would the City agree to allow this use at that site. Automobile parking for this leased
area is extremely limited, there is insufficient ramp space for aircraft parking and passenger
unloading, and the building is 3/4 of a mile from the US Customs Office and the seaplane dock.
Kenmore Air is renowned for its quality products and services and would be a solid business to
add to the airport and the City. The City would have a direct lease with Kenmore Air at market
rates for the 608 Building.
Attachments
H:\TRANS\AIRPORT101ADMIN\l2 RFP609 BLDG ISSUE PAPER
South Cove Ventures LLC
Aerodyne Aviation
300 Airport Way
Renton, WA 98055
December 11, 2003
ATTN: Susan Campbell
Renton Municipal Airport
616 West Perimeter Road
Renton, WA 98055
Reply to Request for proposal for Scott Hangar:
South Cove Ventures, LLC
PO Box 1607
Bellevue, WA 98009
Contact: Charles Hill (President)
Phone: 425-460-2500
Fax: 425-688-9339
Dba, Aerodyne Aviation
300 Airport Way
Renton, WA 98055
Contact: Michael Rice (Manager)
Phone: 425-255-7648
Fax: 425-255=7614
Experience:
• Aerodyne Aviation is a current business at Renton Airport. We have Office, Hangar
and Tie -down space. We lease to several Aviation businesses on the airport.
We have a corporate flight department with 6 aircraft at different airport.. We feel
that Renton Airport is vital to the community and will support it in any way we can.
We have developed airport facilities in this state, and property in Sandpoint, Idaho
• Manager: 20 plus years in Aviation. Has extensive knowledge of FAA Part 77 rules.
He is also a member of the Renton Airport Advisory Committee.
Consultant: is the former head of WSDOT (Aviation division). He also works with us
on other projects. His experience covers over 40 years. He has helped with the Boeing
ESI recently.
Purpose of use:
• Aerodyne is working with an Aircraft Interior company who is also is the process of
starting an Aircraft Avionics company. These are vital to the Aviation Community
and will enhance the Airport. It will also bring more traffic from other areas.
This will be unique for Seaplane's, they will be able be serviced at the airport instead
of services going to them.
Business Plan:
• Aerodyne feels that the current hangar, which is still usable, should be replaced with a
larger more modern facility. The current space will not accommodate the business
that we intend to bring to the site. A larger more modern facility will enhance the
airport and could be a model for new facilities that are built at RTN.
This is a great opportunity to bring new life to the airport.
Being a required use for the site, these services will bring jobs and revenue for the
Airport.
Action Plan:
• Our plan is to design a new facility, we will bring in experienced personal to insure
the finest and most functional facility possible.
The first year will be designing a new facility. Go through the permit process and
negotiate a lease with the airport. Work with the FAA to meet their requirements, at
the same time we will remove the old hangar and start site work. We see the need for
additional parking which we have the some ideas on. Start construction by the fall
2004.
• Our time line would to be have the Interior shop in by June 2005 and the Avionics
shop in by November 2005.
At this time we are still negotiating with the company and would request that this be kept
confidential.
Estimated Operations:
• Gross sales would be up to 500K the first year with increases as all components are
completed.
• We see the number of airport operations increasing as well, aircraft will be flying
here for the work to be completed.
• This will also add revenue in fuel, service and tax on sales.
Regan Aircraft Proposal for FBO based at 608 West Perimeter
road, Renton, Wa, 98055.
Corporate name and address:
Regan Aircraft Technical Service
1818 Ferndale Ave Se
Renton Wa 98058.
Tel: 425-269-1761
Corporate ownership information:
Robert C. Regan, Sole proprietor
Purpose of use:
To expand current business of inspecting, maintaining and restoring antique aircraft, to allow
more than one aircraft to be worked at one time and to accommodate further business
expansion into other areas such as fuel sales, float car service; tie -down space etc.
Experience offered to public:
Please refer to company history below for details of 32 years in aviation maintenance.
Experience of management:
Robert C. Regan has operated as a sole proprietor of Regan Aircraft since 1988.
Economic impact to the City of Renton:
A positive economic impact to the City of Renton, The amount is dependent on the services
that become available; fuel sales may boost city revenue from direct sales and indirect sales;
local restaurants and merchants may see increased sales from pilots stopping at Renton for
fuel and food. Regan Aircraft is a small growing company; we hope to be a company the
community can be proud to have based in Renton
Products and Services
Regan Aircraft has an established customer base offering engine overhaul, airframe repair,
maintenance and modification; Avionics installation and maintenance. Has established credit
with supply vendors and manufactures. A solid reputation for quality work and, above all,
safety of delivered products has insured customer loyalty. The company has the potential to
expand and offer other services but is currently limited by available commercial space at
Renton Airport. Our range of services to support the antique aircraft owner as well as
"newer" aircraft is unique in this area.
Company History
Established in 1988, Regan Aircraft maintained a flying club's fleet of aircraft based at
Boeing field. The company moved to Renton in 1990, severing the tie to the flying club and
becoming independent. Regan aircraft has weathered the downturns in the industry by having
a loyal and firm customer base, highest quality work and above all safety. The company only
catered to a few select customers for many years. In 2001 the events of that year forced
the company to full operating status, with an established reputation; clients have sought
positions on the schedule, booking work up to one year in advance. This reputation has
outstripped the ability to expand, limited by current facilities.
EXECUTIVE SUMMARY
Description of the Company
Regan Aircraft (Regan Aircraft Technical Services). Currently provides
maintenance and modification service for general aviation aircraft for residents of
the greater Seattle area. The Aviation maintenance service industry is one area of
aviation which is still a growing business sector of the economy, and Regan Aircraft
intends to capitalize on the success of this industry sector by taking advantage of
an opportunity to expand in the Pacific Northwest.
Owner Robert Regan has 32 years experience in Aviation, an extensive broad
background in most aspects of aviation including: General; Airline; manufacturing
and teaching. Holds both British and American qualifications, is a current member
of "WHO's WHO. Regan Aircraft was established in 1988.
Action plan and Mission Statement
The mission of Regan Aircraft is to become the premier provider of antique
aircraft maintenance and restoration services at Renton Airport, in addition to
providing normal (Fuel; sales; maintenance and consulting) services to the resident
and transient general aviation aircraft using Renton Airport. The company's goal is
to grow steadily, already an operating and profitable company, the requirement for
increase space is the only restriction to the growth of the company at this time.
Regan Aircraft is dedicated to building long-term relationships with customers
through safety, quality services, training and customer support, and wants to be
recognized as one of the leading Aviation companies in the Greater Seattle area.
Action plan and Long -Term Goals
With steady growth over the next five years, we aim to maintain profitability; our goal is
to expand slowly, adding services as the market allows. The following five year plan is
the projected growth potential seen today.
Year 1, 2004
1. Increase permanent staff, one to four persons.
2. Install or obtain a fuel service. By leasehold with a fuel company of the
equipment and storage tank, or by utilizing the current storage facility in Boeing
Employees Flying club lease area (to be negotiated).
3. Increase customer base for repair/inspection/restoration work by 50 percent due
to increase in available hangar and workshop space.
4. Increase the capacity of the current sheetmetal repair/ replacement
facility by adding further specialized tooling.
Year 3, 2007
1. Obtain further lease property from the City of Renton (possible tie -down space
north of the Boeing fuel station) and provide "float car" services to those clients
utilizing the tie -down area.
2. Increase permanent staff to service fuel and float car operations.
3. Add an engine cylinder repair service.
4. Add oxygen service.
Year 5 2009
1. Build a fabric aircraft repair shop to include limited painting and repair to
the west side of the property.
2. Add dedicated avionics repair shop area to increase the current capacity.
3. Limited rental car agency
4. Increase staff to man the above.
Regan Aircrafts' strategy for achieving our goals consists of six major points:
Recruit well -trained, enthusiastic staff
Deliver Safety and superior product knowledge
Provide high -quality customer service
Offer competitive pricing on services
Diversify, allowing a stable base income
Antique aircraft market is very stable allowing weathering of slow periods in the
industry
Increase in annual operations:
Depending on the future availability of fuel services.
Estimated between 100 to 1000 additional operations per year,
Qualifications of personnel:
Robert C. Regan:
FAA airframe and powerplant mechanics certificate, Inspection authorization. Single and
multi engine pilot's license.
CAA Engineers Certificate.
Aeronautical Engineering Degree.
Competitors' Positions
Ace aviation is a competitive company, we have a long term relationship with Ace
which has worked very well, feeding each other with clients and picking up any
excess business between Ace and Regan Aircraft.
Pro -Flight will be a formidable competitor for Fuel sales because of its prime
location, well -established business. However, Pro -Flight caters to newer
aircraft/f light school type environment and is the only source of fuel service
available at Renton, a competitor to this monopoly will benefit the flying community.
Premises
For expansion, we need to increase storage; hangar and workshop space, rebuilding
/ restoring of antique aircraft projects require months and sometimes years of
work. The available space currently offered at Renton Airport will allow Regan
Aircraft to obtain more lucrative and larger projects.
We currently sub lease hangar space on several different airports, this is not the
desired situation. A single base of operation is required to promote the
professional image and services we are capable of delivering.
Hours of Operation
Normal shop operations are from 10 am to 7 pm. Hours will change with seasonal
demand and with services offered. (Float car/fuel).
Specialized Fixed Based Operator
Proposal for the 608 West
Perimeter Road Property, Renton,
Washington
Submitted by Kenmore Air Harbor, Inc.
December 11, 2003
Proposal
1. Name
A. Corporate Name and Address:
KENMORE AIR HARBOR, INC
6321 NE 175 h St
Kenmore, WA 98028
B. Principal Stockholders:
Gregg Munro
6321 N E 170h St
Kenmore, WA 98028
• Leslie Banks
9032 NE 1911
Bellevue, WA 98004
• Todd Banks
21511 30t' Ave SE
Bothell, WA 98021
2. FBO Experience
Kenmore Air Harbor is largely considered to be the world leader in seaplane fixed
base operations. Founded on the north shore of Lake Washington in 1946 the
company's original owner and more than 120 employees conduct a variety of
specialized seaplane aviation sales and service functions. Relevant services
include the following:
Part 135 scheduled and air charter services. Kenmore Air's
scheduled seaplane service utilizes the company owned fleet of
20 aircraft. The fleet currently includes 9 single -engine
Dehavilland and Cessna Caravan turbo prop aircraft seating 9
or more passengers and 11 additional high performance piston
aircraft. The airline offers year-round service to more than 10
Northwestern Washington destinations and Victoria and
Vancouver, B.C. (service to Vancouver pending December
2003) Scheduled service offerings expand during the period
May through September of each year to include more than 40
daily destinations. 80,000 scheduled service passengers were
carried in 2003.
Aircraft Maintenance. Kenmore's FAA Certified Class I and II
Repair Station covers the vast range of airframe and powerplant
service capabilities. This shop specializes in high performance
single -engine piston and turbo -prop Cessna and Dehavilland
wheel and seaplane aircraft. In addition to maintaining the
company's own fleet of aircraft the Service Department
performs Annual Inspections, routine maintenance and
extensive repair for dozens of private owner aircraft throughout
the year. A small number of these are wheel planes, which
require us to barge the aircraft to and from Renton to Kenmore's
main base in Kenmore.
STC's. Kenmore has advanced dozens of highly acclaimed
improvements to aircraft performance, convenience and utility
through the development of numerous FAA Supplemental Type
Certificates. Many of these developments have dramatically
reduced aircraft noise levels and increased aircraft
performance. Kenmore continues to invest considerable
resourses in this area.
Avionics. Kenmore is also an avionics dealership for all the
most popular avionics manufacturers. Kenmore's radio
technicians are FAA certified to install and repair all basic and
IFR radio equipment.
Engines. Kenmore performs major overhauls on Pratt R-985,
Continental 10-520, TSIO-520 and 0-470 engines. Kenmore
performs magnaflux, zyglo and ultrasonic testing at its facility in
Kenmore.
Upholstery, Kenmore offers standard and custom aircraft
interior upholstery for any of the most popular land and sea
aircraft.
Parts. Kenmore maintains one of the largest parts inventories
on the west coast. While the inventory specializes in supporting
water -based aircraft, Kenmore supplies parts for numerous
wheel plane owners and commercial operators throughout the
U.S. and Canada.
EDO float sales and manufacturing. Kenmore owns the
manufacturing license and is the exclusive distributor for EDO
floats. EDO is responsible for more than 70 percent of all floats
in existence today. This manufacturing, sales and support
division is rapidly expanding with the full production of 4930
floats and other models for customer purchase and use. A
number of amphibious float models are presently in the
development stage.
Flight School. Kenmore maintains the most active seaplane -
training program in the northwest. Several hundred seaplane
ratings are given each year and Kenmore retains a designated
FAA examiner on staff for check rides. Several times during the
year our instructors are called out to do customer training In
wheel planes at a local land based airport.
Aircraft Sales. Kenmore sells all of the most popular seaplane
models in existence today. Most of the aircraft sold are
showcased in use in Kenmore's own commercial fleet.
Kenmore has sold hundreds of aircraft including De havilland
beavers, Cessna's and high performance single engine turbo
prop aircraft. Kenmore retains a highly experienced team of
aircraft rebuilders who specialize in remanufacturing De
havilland and Cessna aircraft.
3. Business Plan
Executive Summary: Kenmore would establish an immediately
successful aircraft Radio and Instrument repair station at the Renton
airport property. The facility would meet the most sophisticated radio and
instrument systems needs of the majority of general aviation aircraft.
Kenmore would expand on this mainstay activity to eventually include
some level of airframe and powerplant maintenance capability for both
seaplanes and landplanes. Float conversions and other specialized
maintenance requirements would occur at the Renton facility on an on-
going basis from the outset. In sum, the city of Renton could likely expect
a gradual expansion of services to eventually include many of the
capabilities described above that are presently offered at Kenmore's main
base. The facility would also be used as an outlet for the sale of new and
used floats and aircraft and by mid to late 2005 this facility could be the
center for EDO amphibious float development and sales.
Action Plan Summary;
January -February 2004
Establish a Radio and Instrument Sales and Repair Station.
March-Aaril 2004
• Acquire aircraft for sale and establish sales office in Renton.
• Set up equipment, tools and capability to do float
conversions.
• Conduct maintenance on customer aircraft dependent on
equipment, parts and staffing limitations.
Beginning to mid 2005
• Establish a partial to full -service maintenance facility for wheel and
seaplane aircraft.
• Establish the Renton facility as the base of flight test and development
for newly engineered amphibious float models.
Optional (To be considered)
• Wheel plane flight training
Detailed Action Plan with Timeline:
Kenmore anticipates that it would establish and participate in the following
General Aviation activities at the proposed Renton property:
1. Radio Repair
Kenmore would expand its current aircraft radio sales, repair, and
installation offerings to include more specialized instrument repair,
overhaul and calibration work. Through this land -based facility in Renton,
Kenmore would have direct access to both wheel plane and seaplane
customers. This specialized radio and instrument facility would be
expected to meet nearly every conceivable aircraft instrument need from
the private and commercial operator. Sales after three years would be
expected to be in the $2,000,000 range.
Employees: Initially, Kenmore would employ 3-5 radio and instrument
technicians with a future expansion as sales and customer demands
increased.
Action Items for this category for the period January -February 2004:
• Negotiate the purchase of a selected and successful aircraft instrument
company with over 20 years experience.
• Hire aircraft instrument technicians from former business.
• Select current Kenmore technicians to oversee the expanded
business.
• Clean facility and set-up repair and calibration equipment.
• Request and receive FAA approvals for change in address for Radio
repair station license and establish written protocols for new
procedures. (Note: Kenmore will utilize existing FAA Repair Station
Licenses.)
• Market and advertise services to local general aviation community
2. Aircraft and Float Sales
Kenmore would maintain a part to full-time sales office at this location for
the sale of floats and high performance piston and turbo -prop aircraft.
Kenmore recently entered into an agreement with the exclusive northwest
Cessna dealer for single -engine piston and Caravan aircraft. This
agreement places Kenmore In a position to make the most of its
maintenance and operator experience as well as sales expertise with new
and used Cessna aircraft. We would expect to maintain a small number of
aircraft for demo flights and sales. The facility would be expected to take
on much greater importance in the later sale of newly developed
amphibious floats in the later part of 2005. (See EDO amphibious float
development).
Action Items for this category for the period March April 2004:
• Acquire aircraft for sale and establish sales office
3. Float Conversions
Kenmore would establish the on -going capability to remove and install
floats to wheel planes. This capability would eliminate many costly barge
trips that occur annually between Kenmore and Renton.
Action Items for this category for the period March April 2004:
• Install required equipment and tools.
4. Aircraft Maintenance
Kenmore would expect to eventually expand its general aircraft
maintenance capabilities at this location within 12 to 18 months. Radio,
instrument and float conversion work at this site would give exposure to
Kenmore's other maintenance offerings. Capabilities would expand with
the expected customer demand for these services.
Action Items for this category for the period beginning mid 2005:
• Equip shop with parts, tools and employee staffing as customer needs
and requirements dictate.
5. EDO Amphibious Float Development
Kenmore anticipates and has planned for the full development and
manufacture of several models of newly engineered amphibious floats
under the EDO manufacturing license. The Renton facility would prove an
ideal site for key phases of development, refinement, and flight -testing of
these floats.
Action Items for this category for the period beginning mid 2005:
• Ongoing engineering effort in the design and technical specification
phase of float development (initial phases already completed.
0 Development of prototype float.
6. Flight Training (Optional)
Kenmore would conduct all its amphibious flight training from this facility.
Initially flight training requirements for the general aviation customer base
would be expected to be minimal in the first 18 months. Subsequent years
however, may present opportunities for expanded training especially with
aircraft equipped with the new EDO amphibious float. Wheel plane
training would be conducted from the outset on an "as requested basis"
but would not be a significant source of activity. Kenmore would evaluate
the option of establishing a full-fledged wheelplane training program at this
facility within the first two years. One very likely scenario would include a
Kenmore employee owned aircraft that would be based and maintained at
this facility for employee instruction and personal use.
Estimated Number of annual operations created by the proposed use:
1.
Aircraft Visits to Radio and Repair station ......................200
2.
Aircraft Sales Demo flights including positioning..............100
3.
Aircraft Visits to Sales office........................................150
4.
Float Conversions...................................................
100
5.
Aircraft Maintenance .................................................
500
6.
7.
Edo Float................................................................ 300
Company employee owned aircraft operations ................ 750
B.
Transit visits to from Renton and Kenmore ..................... 500
Total
2,600
4. Applicable FAA Certificates
FAA Part 135 Repair and Radio Station License GJRR 163A
EDO Production Certificate PC7NM/TSOC27
Part 135 Flight Operating Certificate GJRA163A
TOTAL P.08
CITY OF RENTON COUNCIL AGENDA 13I
Submitting Data: PBPW
Dept/Div/13oard.. Transportation Systems
For Agenda of:
February 9, 2004
Agenda Status
Staff Contact...... Nathan Jones, ext. 7217
Consent .............. X
Public Hearing..
Subject:
Correspondence..
FlexPass Program
Ordinance .............
Resolution............ X
Old Business........
New Business.......
Exhibits:
Issue Paper
Study Sessions......
Contract
Information.........
Resolution
Recommended Action: Approvals:
Legal Dept......... X
Council concur Finance Dept......
Other .............
Fiscal Impact:
Expenditure Required... $21,450.00 Transfer/Amendment.......
Amount Budgeted....... Revenue Generated.........
Total Project Budget $21,450.00 City Share Total Project.. $25,000.00
SUMMARY OF ACTION:
This contract with King County Metro will continue Renton's participation in all elements of the
FlexPass Program for 2004-2005. FlexPass consolidates all Commute Trip Reduction (CTR) related
expenditures by including Commuter Bonus Plus (CB+) vouchers and Guaranteed Ride Home as an
integral part of the FlexPass Program.
FlexPass is a program offered by King County Metro to all CTR-affected employers. Included in the
2004-2005 FlexPass Program are:
I . Unlimited rides by regular City of Renton employees on bus and commuter rail services
provided by Metro and Sound Transit.
2. CB + vouchers used to promote the CTR Program by providing incentives to walkers,
bicyclists, carpoolers and vanpoolers, and fund VanShare vans used by City of Renton
employees to access commuter rail.
3. Guaranteed Ride Home Program that provides participants in the CTR Program a taxi ride
home at no charge in the case of an emergency.
STAFF RECOMMENDATION:
Staff recommends Council approve the Resolution and authorize the Mayor and City Clerk to enter
into the contract with King County Metro to continue implementation of the FlexPass Program.
Rentrmnct/agnbill/ bh
CITY OF RENTON
PLANNING/BUILDING/PUBLIC WORKS
MEMORANDUM
DATE: February 9, 2004
TO: Don Persson, President
Members of the Renton City Council
VIA: Kathy Keolker-Wheeler, Mayor
FROM: Gregg Zimmermai>!, administrator
STAFF CONTACT: Nathan A. Jones, extension 7217
SUBJECT: FlexPass Contract
ISSUE:
The 2003-2004 FlexPasses issued to City of Renton employees will be expiring at the end of
February; a new contract with King County Metro needs to be authorized for 2004-2005
FlexPasses.
RECOMMENDATION:
Staff recommends Council approve the Resolution and authorize the Mayor and City Clerk to
enter into the contract with King County Metro to continue implementation of the FlexPass
Program.
BACKGROUND:
In order to reduce congestion and improve air quality, Washington State passed a Commute Trip
Reduction (CTR) Law in the early 1990s. The CTR Law required employers with 100 or more
employees arriving between the hours of six and nine in the morning to have transportation
programs for their employees that encourage the use of alternatives to single occupancy vehicle
(SOV) commute travel.
Under CTR Law, the City of Renton is a CTR-affected employer, and as such, the City of
Renton enters into an agreement with King County Metro to purchase from King County Metro a
FlexPass for each permanent, full-time and regular City of Renton employee. The City provides
these passes to eligible employees at no charge.
FlexPass Contract Issue Paper
February 9, 2004
Page 2 of 2
The current cost to the City per pass is $65.00, an increase of $5.00 per pass from last year, or
8.3% increase. (Note: if employees were to purchase monthly transit passes from King County
Metro equivalent to the FlexPass, the cost would be $144.00 per month4 or $1,728.00 per year).
This is an ongoing program that is paid for out of the 103 fund.
H:Trans/Planni ng/Nate/CTR/FlexPass
AGREEMENT FOR SALE OF FLEXPASSES BETWEEN KING COUNTY,
SOUND TRANSIT AND THE CITY OF RENTON
This Agreement (hereinafter, "Agreement") is made and entered into by and between King County (hereinafter
individually, "KING COUNTY"), Sound Transit (hereinafter "SOUND TRANSIT"), or collectively referred to
hereinafter as "TRANSPORTATION PARTIES", and the City of Renton (hereinafter, "COMPANY").
RECITALS
A. COMPANY and TRANSPORTATION PARTIES share the desire to provide a comprehensive transportation
pass program that will reduce single occupant vehicle (SOV) commute trips and improve the mobility of
COMPANY employees.
B. KING COUNTY and SOUND TRANSIT are authorized to provide public transportation and generally promote
alternatives to SOV commuting in King County, Pierce County and Snohomish County.
C. COMPANY has a desire to provide incentives and benefits to its employees, which promote non-SOV
commuting to its worksite.
D. COMPANY and TRANSPORTATION PARTIES desire to create a single pass media that can be used to access
a variety of services and benefits, which enable COMPANY employees to commute, by non-SOV modes.
AGREEMENT
NOW, THEREFORE, in consideration of the terms, conditions and covenants herein contained, the sufficiency of
which is hereby acknowledged, the parties hereto agree to the following.
1. PURPOSE
1.1 Purpose
This Agreement establishes a cooperative arrangement between TRANSPORTATION PARTIES and COMPANY
for sale and distribution of F1exPasses to COMPANY's Eligible Employees at the rate set forth herein.
2. DEFINITIONS
2.1 Eligible Employees
Eligible Employees shall mean only those employees of the COMPANY who meet the following criteria:
CTR-affected City of Renton employees.
2.2 FlexPass Card
A FlexPass Card is a pass of predetermined duration, usually twelve (12) months, that allows each Eligible
Employee, as defined in Paragraph 2.1, to choose from a variety of non-SOV commute options provided by
COMPANY or TRANSPORTATION PARTIES. Each FlexPass Card shall bear the inscriptions "FlexPass", each
TRANSPORTATION PARTIES' logo or an agreed to regional logo, and beginning and expiration dates in a design
and color scheme mutually agreed upon by TRANSPORTATION PARTIES. FlexPass Cards shall also bear a fare
amount on the face of the card, the amount of which shall be agreed upon by TRANSPORTATION PARTIES prior
to the start of this Agreement. FlexPass Cards shall be produced by TRANSPORTATION PARTIES or their
designated contractor. COMPANY shall pay the amount specified in Attachment A for production of FlexPass
Cards. FlexPass Card's are non-refundable by TRANSPORTATION PARTIES, except as set forth in Paragraph
8.2. Eligible Employees may be asked to present a valid COMPANY identification card when using a FlexPass.
2.3 Trip Revenue
In the event of a generally applicable fare increase adopted by KING COUNTY or SOUND TRANSIT, the amounts
shown in Attachment A may be increased at such time as a generally applicable fare increase is implemented by
KING COUNTY or SOUND TRANSIT, and COMPANY shall be required to pay the amount of such increase to the
appropriate TRANSPORTATION PARTY.
3. EMPLOYEE CONTRIBUTIONS AND COMMUTE BENEFITS AND INCENTIVES
3.1 Eligible Employee Contributions
COMPANY may require Eligible Employees to contribute toward the cost of a FlexPass Card, in the amount
specified in Attachment A. COMPANY shall not require Eligible Employees to contribute more than fifty percent
(50%) of the cost of an individual FlexPass Card, as set forth in Attachment A.
FlexPass Agreement Page 1 of 10
City of Renton
March, 2004 — February, 2005
4. COMPANY RESPONSIBILITIES
4.1 Eligible Recipients Of A FlexPass Card
COMPANY shall ensure that only Eligible Employees, as defined in Paragraph 2.1, receive FlexPass cards.
4.2 Ordering FlexPass Cards
COMPANY shall provide to TRANSPORTATION PARTIES' representative, as listed in Section 16, the number of
FlexPass Cards that COMPANY shall provide to Eligible Employees. The number of FlexPass Cards shall be listed
in Attachment A. COMPANY shall allow TRANSPORTATION PARTIES at least four (4) weeks in advance of the
cards' effective date to fulfill the request for FlexPass Cards. COMPANY understands that failure to provide the
number of FlexPass Cards desired at least four (4) weeks in advance, may incur additional and extraordinary costs.
Such costs may be related to, but are not limited to, overtime staffing, additional manufacturing charges and express
delivery charges. These additional and extraordinary charges shall be borne solely by COMPANY.
4.3 Ordering Additional FlexPass Cards
COMPANY shall retain the right to purchase additional FlexPass Cards for distribution to Eligible Employees, over
and above the number specified in Attachment A, during the term of this Agreement. COMPANY shall allow
TRANSPORTATION PARTIES at least four (4) weeks to fulfill the request for additional FlexPass Cards.
Requests shall be made to the TRANSPORTATION PARTIES' representative, as listed in Section 16. The cost for
a single additional FlexPass Card shall be the Monthly Rate For Additional FlexPass Cards specified in Attachment
A, times the number of months remaining in the Agreement.
4.4 Receipt And Security Of FlexPass Cards
COMPANY agrees that all FlexPass Cards received from TRANSPORTATION PARTIES shall become the sole
financial responsibility of COMPANY upon receipt and signature by an employee, official or agent of COMPANY.
COMPANY agrees that it is solely responsible for providing proper storage and security measures for any and all
FlexPass Cards received by COMPANY while in the custody of COMPANY. COMPANY shall be held liable for
the equivalent value of a combination King County Metro/SOUND TRANSIT fare for each month remaining in this
Agreement for each FlexPass Card that COMPANY cannot account for, either by distribution to an Eligible
Employee, storage in a secure area, for each FlexPass Card not collected from an Eligible Employee who terminates
their employment with COMPANY or otherwise becomes ineligible to receive and use a FlexPass Card under the
terms of this Agreement, or for each FlexPass Card COMPANY cannot return to TRANSPORTATION PARTIES
upon termination of this Agreement, as specified in Section 8.
4.5 Reporting
COMPANY shall immediately report to each of the TRANSPORTATION PARTIES any FlexPass Cards that are
lost, stolen, damaged or otherwise not functioning properly in TRANSPORTATION PARTIES' transit coaches'
electronic registering fareboxes. COMPANY shall return any and all FlexPass Cards to TRANSPORTATION
PARTIES that COMPANY believes to be defective. COMPANY shall report to TRANSPORTATION PARTIES
all FlexPass usage, changes to COMPANY's transportation program or other details as necessary.
4.6 Roster Of FlexPass Card Recipients
COMPANY shall maintain a roster of Eligible Employees who have been provided a FlexPass Card by
COMPANY. Upon demand, COMPANY shall provide each TRANSPORTATION PARTY a copy of the roster.
4.7 FlexPass Employee Use Agreement Form
Each Eligible Employee who receives a FlexPass Card from COMPANY shall be required to read, sign and return to
their employee transportation coordinator or department supervisor, an agreement form stipulating the uses and
conditions of a FlexPass Card. The Employee Use Agreement Form, as set forth in Attachment B , is deemed
mutually acceptable to both COMPANY and TRANSPORTATION PARTIES. Use Agreement Forms shall be kept
on file by COMPANY for the term of this Agreement.
4.8 Collection of FlexPass Cards
COMPANY shall return to TRANSPORTATION PARTIES all FlexPass Cards issued to COMPANY within five
(5) days of the effective date of termination of this Agreement. COMPANY shall be held liable for the equivalent
retail value of a combination King County Metro/SOUND TRANSIT fare for each month remaining in this
Agreement for each FlexPass Card not returned to TRANSPORTATION PARTIES upon termination of this
Agreement.
FlexPass Agreement Page 2 of 10
City of Renton
March, 2004 — February, 2005
4.9 Collection of Transit Ridership Data
COMPANY shall survey, or otherwise collect from COMPANY's Eligible Employees, any and all necessary daily
transit ridership and commute data that TRANSPORTATION PARTIES deem necessary to accurately and fairly
estimate Trip Revenue and the number of bus trips taken by Eligible Employees. TRANSPORTATION PARTIES
shall provide to COMPANY a mutually agreed upon survey instrument or other suitable means in which to collect
the most current and accurate ridership and commute data possible.
4.10 FlexPass Program Evaluation
COMPANY shall participate in any TRANSPORTATION PARTIES' evaluation of the FlexPass program, should
such an evaluation be deemed necessary by any of the TRANSPORTATION PARTIES. Evaluation may be through
such means as employee surveys, employee focus groups, and management interviews. TRANSPORTATION
PARTIES shall provide COMPANY at least thirty (30) days advance notice prior to beginning such an evaluation.
4.11 Home Free Guarantee
COMPANY shall fulfill all conditions and responsibilities of the Home Free Guarantee program in accordance with
the terms attached hereto and made part hereof as Attachment C.
4.12 Vanpool Services
The amount of the vanpool fare subsidy for each Eligible Employee shall be stated in Attachment A. If actual
vanpool fares incurred by an Eligible Employee exceed the amount of the subsidy specified in Attachment A, the
Eligible Employee shall pay the difference directly to the vanpool bookkeeper.
5. TRANSPORTATION PARTIES RESPONSIBILITIES
5.1 Transit Access
TRANSPORTATION PARTIES shall allow each COMPANY Eligible Employee displaying a valid FlexPass Card
to ride on all parts of its regular route transportation system without additional charge, for trips up to the value
printed on the card. TRANSPORTATION PARTIES shall honor each FlexPass Card issued under this agreement
up to the expiration date on the Card or until this agreement is otherwise terminated. TRANSPORTATION
PARTIES reserve the right to request additional payment at the time the transit trip is taken, if the cost of a trip on
any TRANSPORTATION PARTY's regular transit service exceeds the fare value printed on the FlexPass Card.
FlexPass Cards are not valid on any Husky, Mariners, Fourth of July, Tacoma Dome Station event parking, or other
special event service at the sole discretion of TRANSPORTATION PARTIES.
5.2 FlexPass Card Administration
TRANSPORTATION PARTIES' Designated Representative shall manage production, ordering, replacement and
delivery of FlexPass Cards to COMPANY, and other administrative tasks related to the FlexPass Card under this
Agreement, other than those responsibilities stated as COMPANY responsibilities in Section 4.
5.3 Replacement FlexPass Cards
TRANSPORTATION PARTIES shall replace, at no additional cost to COMPANY, any FlexPass Cards deemed to
be defective or otherwise unusable or inoperative. COMPANY may be issued temporary passes until
TRANSPORTATION PARTIES can manufacture and deliver replacement FlexPass Cards. TRANSPORTATION
PARTIES shall replace a lost or stolen FlexPass Card only once at a charge of $50 per replacement card.
5.4 Confiscation of FlexPass Cards
In addition to any other rights under law, TRANSPORTATION PARTIES reserve the right to cancel and confiscate
a FlexPass Card which is used out of date, altered, duplicated, counterfeited, transferred or distributed to
unauthorized persons or otherwise invalid under the terms of this Agreement.
5.5 Collection Of Transit Ridership Data
TRANSPORTATION PARTIES shall provide to COMPANY, at no additional cost to COMPANY, a mutually
agreed upon survey instrument or other suitable means in which to collect and measure the most current and accurate
transit ridership and commute data of COMPANY's Eligible Employees. In addition, TRANSPORTATION
PARTIES shall pay for all costs incurred in processing this survey instrument, but not costs incurred by COMPANY
in distributing to and collecting from Eligible Employees, this survey instrument. TRANSPORTATION PARTIES
shall make available to COMPANY, all data collected from COMPANY's Eligible Employees.
FlexPass Agreement Page 3 of 10
City of Renton
March, 2004 — February, 2005
5.6 Home Free Guarantee
KING COUNTY shall fulfill all conditions and responsibilities of the Home Free Guarantee program in accordance
with the terms attached hereto and made part hereof as Attachment C.
5.7 Vanpool Services
KING COUNTY shall allow each Eligible Employee holding a FlexPass Card to register as a vanpool participant
subject to the availability of vanpool vehicles and minimum ridership requirements. The FlexPass Card will be
honored as full or partial payment of vanpool fares, up to the amount specified in Attachment A.
6. PAYMENTS AND BILLING
6.1 Payment For This Agreement
COMPANY agrees to pay TRANSPORTATION PARTIES the total amount stated in Attachment A for
participation in TRANSPORTATION PARTIES' FlexPass program. KING COUNTY shall present an invoice for
amounts due to COMPANY's representative listed in Section 16. Payment shall be made in full by COMPANY
according to the terms listed on the invoice, unless a payment schedule is mutually agreed upon by both parties and
incorporated into this Agreement, in Attachment A. KING COUNTY shall invoice COMPANY for the amount(s)
due for SOUND TRANSIT for additional FlexPass Cards purchased by COMPANY.
6.2 Late Payment Penalty
If any scheduled payments are not made by their due date, then the entire amount due under this Agreement may
become immediately due and payable. Any late payment shall be subject to a penalty accruing at the maximum rate
allowable by state law for each month that the payment remains due. If any check made payable to any of the
TRANSPORTATION PARTIES by COMPANY is returned to a TRANSPORTATION PARTY for insufficient
funds (NSF) in COMPANY's checking account, then COMPANY shall be assessed a $25 (twenty-five) penalty by
the TRANSPORTATION PARTY receiving the NSF check.
7. TERM OF AGREEMENT
7.1 Term
This Agreement shall take effect upon the exact day and expire on the exact day specified in this paragraph, unless
terminated in accordance with the terms set forth in Section 8. This Agreement shall take effect at 12:00 a.m. on
March 1, 2004 and shall expire at 11:59 p.m. on February 28, 2005.
8. TERMINATION
8.1 Termination For Cause
Any party may terminate this Agreement in the event the other fails to perform its obligations as described in this
Agreement by providing written notice not less than fourteen (14) days prior to the effective date of termination.
8.2 Termination For Convenience
Any party may also terminate this Agreement for convenience and without cause by providing the other party with
written notice not less than sixty (60) days in advance. If COMPANY has made payments in advance, COMPANY
shall be entitled to reimbursement from each TRANSPORTATION PARTY for each valid FlexPass Card returned
to TRANSPORTATION PARTIES. Such reimbursement shall be at the monthly rate set forth in Attachment A for
the full months remaining in the term of the Agreement.
If COMPANY has accrued additional financial obligations to any TRANSPORTATION PARTY as a result of the
provisions of this Agreement, either prior to termination or as a result of termination, COMPANY agrees to pay any
outstanding amount due to the TRANSPORTATION PARTY. The TRANSPORTATION PARTY shall invoice
COMPANY for the amount due according to the procedures outlined in Section 6.
9. RECORDS
9.1 Rights Of Review
Both COMPANY and TRANSPORTATION PARTIES shall retain the right to review records and documents
related to this Agreement. If a records review is commenced more than sixty (60) days after the termination of the
contract, the TRANSPORTATION PARTY requesting the review shall give ten (10) days notice to COMPANY of
the date on which the records review will begin.
FlexPass Agreement Page 4 of 10
City of Renton
March, 2004 — February, 2005
10. SUCCESSORS AND ASSIGNS
10.1 Written Approval
This Agreement and all terms, provisions, conditions and covenants hereof shall be binding upon the parties hereto
and their respective successors and assigns. All parties, however, agree that they will not assign or delegate the
duties to be performed under this Agreement without prior, written approval from the other parties.
1 1. LEGAL RELATIONS
11.1 No Partnership And No Third Party Beneficiaries
COMPANY and TRANSPORTATION PARTIES agree that this Agreement does not create a partnership or joint
venture relationship between the parties, and does not benefit or create any rights in a third party.
11.2 Force Majeure
TRANSPORTATION PARTIES shall be excused from performance of any responsibilities and obligations under
this Agreement, and shall not be liable for damages due to failure to perform, resulting directly or indirectly from
causes and circumstances beyond their control, including but not limited to late delivery or nonperformance by
vendors of materials or supplies, incidences of fire, flood, snow, earthquake or other acts of nature, accidents, riots,
insurrection, terrorism, acts of war, order of any court or civil authority, and strikes or other labor actions.
11.3 Costs of Legal Action
COMPANY shall be liable for any and all reasonable attorney fees, court costs and other expenses incurred by
TRANSPORTATION PARTIES in the event TRANSPORTATION PARTIES pursue legal action to obtain the
return of any FlexPass Cards or amount owing under this Agreement.
12. APPLICABLE LAW, FORUM
12.1 Terms
This Agreement shall be governed by and construed according to the laws of the State of Washington. Nothing in
this Agreement shall be construed as altering or diminishing the rights or responsibilities of the parties as granted or
imposed by state law. In the event that any litigation may be filed between the parties regarding this Agreement,
COMPANY and TRANSPORTATION PARTIES agree that personal jurisdiction and venue shall rest in the
Superior Court of the county where the TRANSPORTATION PARTY pursuing the action resides.
13. DISPUTES
13.1 Dispute Resolution Procedure
All claims or disputes arising out of or relating to this Agreement shall be referred to a panel consisting of
COMPANY's City Attorney, KING COUNTY's General Manager, Transit Division, and SOUND TRANSIT's
Chief Executive Officer, or their designees.
If this panel is unable to reach a mutually acceptable resolution, it shall appoint another person to serve as mediator
in the effort to resolve the claim or dispute. Such mediation shall be required before an action may be filed to
adjudicate the claim or dispute in a court of law.
14. ENTIRE AGREEMENT AND AMENDMENT
14.1 Entire Agreement
This Agreement constitutes the entire agreement between the parties and supersedes all prior negotiations,
representations and agreements between the parties relating to the subject matter hereof.
14.2 Amendments And Modifications
This Agreement may be amended or modified only by written instrument signed by the parties hereto.
15. SAVINGS
15.1 Definition
Should any provision of this Agreement be deemed invalid or inconsistent with any federal, state or local law or
regulation, the remaining provisions shall continue in full force and effect. All parties agree to immediately attempt
to renegotiate such provision that is invalidated or superseded by such laws or regulations.
FlexPass Agreement Page 5 of 10
City of Renton
March, 2004 — February, 2005
16. CONTACT PERSONS
16.1 Definition
COMPANY and TRANSPORTATION PARTIES shall designate a contact person for purposes of sending inquiries
and notices regarding the execution and fulfillment of this Agreement, as well as ordering of all fare media and
vouchers.
COMPANY
KING COUNTY, FLEXPASS CARD
ORDERS & RETURNS
Contact Name
Nathan A. Jones
JerryWaugh
Title
Transportation Planner
Project/Program Manager
Address
Cityof Renton
Employer/Retail Products
Transportation Systems Division
Kin CountyMetro Transit
1055 S. Grad Way, 5 Floor
201 S. Jackson Street; MS KSC-TR-0412
Renton, WA 98055
Seattle, WA 98104-3856
Telephone
425-430-7217
206-684-6778
Fax
425-430-7376
206-263-4809
E-Mail
niones ci.renton.wa.us
jerry.waugh@metrokc.gov
SOUND TRANSIT
Contact Name
Christie Parker
Title
Fare Integration Project Coordinator
Address
Sound Transit
k°
401 S. Jackson Street
Seattle, WA 98104-2826
2 \.
Telephone
206-398-5405
Fax
206-398-5215
E-Mail
arkerc soundtransrt.or
17. EXECUTION OF AGREEMENT
17.1 Definition
This Agreement shall be executed in three (3) counterparts, each one of which shall be regarded for all purposes as
one original. In Witness Whereof, the parties have executed this Agreement as of the date first written above.
FlexPass Agreement Page 6 of 10
City of Renton
March, 2004 — February, 2005
FlexPass Agreement Attachment A - Agreement Costs
Company City of Renton Start Date March 1, 2004
Area FlexPass zone Renton Agreement Year #6
Quantity
Rate $/card
Cost
King County
• Transit access
330
$45.00
$14,850.00
• Home Free Guarantee
(Up to 8 rides/employee/agreement)
• Up to $65 per month per vanpooler
• FlexPass Card administration
• Commuter Bonus Plus voucher pool.
1 pool
$4,950.00
Included
(330 FlexPass cards x $15.00)
Total — King Coun
330
$45.00
$14,850.00
Sound Transit
330
$20.00
$6,600.00
• Transit access
m, P , s,
Total — FlexPass Agree ent 330$65.00 $21,450.00
Number of FlexPass Cards issued under this Agreement = 330
Payment schedule = '/4 due in each of 60, 90, 180 and 270 days.
Eligible Employee contribution ($ per employee) _ $0.00
Monthly rate for ONE additional FlexPass Card = $4.17
(Note: Calculation based on $50.00/12 months.
The Monthly rate does not include Commuter Bonus Plus vouchers.)
Allocation: King County = $2.50
Sound Transit = $1.67
FlexPass Agreement Page 7 of 10
City of Renton
March, 2004 — February, 2005
FlexPass Agreement — Attachment 6
Sample Employee Use Agreement Form
CITY OF RENTON
FlexPass Use Agreement
As a FlexPass holder, I agree to the following:
1. The FlexPass is a benefit provided to me as an employee and is to be used only during the
period I am employed by this company.
2. I will use my FlexPass for my own transportation only. I will not transfer my FlexPass to any
other person.
3. I will keep my FlexPass secure and in good condition. I will immediately report a lost, stolen
or damaged FlexPass to the Transportation Coordinator. I understand a lost FlexPass will be
replaced only once per year at a charge of $50.00. A non -working FlexPass will be replaced
free of charge.
4. I will return my FlexPass upon request or when I leave my employment with this company.
If I do not return my FlexPass, I authorize the amount of $144.00, for each whole and partial
month remaining on the FlexPass, to be withheld from my paycheck.
5. I understand that the FlexPass card is valid for up to $65 per month on Metro vanpools only.
I am responsible for the balance of the vanpool fare each month, payable to the vanpool
bookkeeper, which is in excess of the $65 amount.
I acknowledge the receipt of my FlexPass, and understand and agree to the terms stated above on
using the FlexPass.
Employee's Signature
Employee's Printed Name
Employee's Department or Section
Date
FlexPass Serial #
Transportation Coordinator Use Only - FlexPass returned:
Employee's Signature Date
FlexPass Serial #
FlexPass Agreement Page 8 of 10
City of Renton
March, 2004 — February, 2005
FlexPass Agreement Attachment C — Home Free Guarantee
Home Free Guarantee (hereinafter, "HFG") is a KING COUNTY program that guarantees payment for taxi fares
incurred by Eligible Employees who meet the eligible criteria, as set forth below, and taken in accordance with the
terms set forth below.
C.1 DEFINITIONS
C.1.1 Approved Commute Modes
Eligible Employees must have commuted from their principal residence or Park & Ride to the COMPANY's
worksite by one of the following modes: Bus, carpool, vanpool, walk-on or bicycle -on ferry, bicycle, or walk.
C.1.2 Eligible Reasons For Using HFG
The following are the only eligible reasons for using HFG:
a. Eligible Employee's or family member's unexpected illness or emergency.
b. Unexpected schedule change such that the normal commute mode is not available for the return commute to
the starting place of their commute. Unexpected means the employee learns of the schedule change that
day.
c. Missing the employee's normal return commute to the starting place of their commute for reasons, other
than weather or acts of nature which are beyond the employee's control, and of which they had no prior
knowledge. For example, the employee's carpool driver left work or worked late unexpectedly.
C.1.3 Non -Eligible Reasons For Using HFG
Reasons which are not eligible for HFG use include, but are not limited to, the following:
a. Pre -scheduled medical or other appointments.
b. To transport individuals who have incurred injury or illness related to their occupation. An HFG ride
should NEVER be used where an ambulance is appropriate, nor should an HFG ride replace COMPANY's
legal responsibility under workers' compensation laws and regulations.
c. Other situations where, in the opinion of the COMPANY's Program Coordinator, alternate transportation
could have been arranged ahead of time.
C.1.4 Eligible Destinations For An HFG Ride
a. From the COMPANY's worksite to the Eligible Employee's principal place of residence.
b. From the COMPANY's worksite to the Eligible Employee's personal vehicle, e.g. vehicle located at a Park
& Ride lot.
c. From the COMPANY's worksite to the Eligible Employee's usual commute ferry terminal on the east side
of Puget Sound.
C.1.5 Intermediate Stops
Intermediate stops are permitted only if they are of an emergency nature and are requested in advance by the Eligible
Employee and are authorized in advance of the HFG ride by the COMPANY's Program Coordinator (i.e. pick up a
necessary prescription at a pharmacy; pick up a sick child at school).
C.2 COMPANY RESPONSIBILITIES
C.2.1 HFG Program Payment
COMPANY's payment for HFG services is accounted for in the base price of the FlexPass Agreement, as indicated
in Attachment A.
C.2.2 Program Coordinator
COMPANY shall designate as many Program Coordinators as necessary to administer and perform the necessary
HFG program tasks as set forth in this Attachment.
C.2.3 Number Of HFG Rides Per Eligible Employee
COMPANY shall ensure that each Eligible Employee does not exceed eight (8) HFG rides per twelve (12) month
period.
FlexPass Agreement Page 9 of 10
City of Renton
March, 2004 — February, 2005
FlexPass Agreement Attachment C — Home Free Guarantee (continued)
C.3 HFG Program Tasks
C.3.1 Process
To access HFG rides, Eligible Employees shall contact the Program Coordinator. The Program Coordinator shall
call directly an answering service provider, contracted for by KING COUNTY. The phone number shall be supplied
to COMPANY by KING COUNTY. COMPANY agrees to make information about how to access HFG rides
available to all Eligible Employees. Program Coordinator shall obtain the following information from the Eligible
Employee, and provide the information to the answering service provider:
a. Verify the Eligible Employee has commuted to the worksite by an eligible mode.
b. Verify the Eligible Employee has an eligible reason and eligible destination for an HFG ride.
c. Ensure the Eligible Employee has valid identification to show the taxi driver.
d. Once an Eligible Employee takes the emergency taxi ride, obtain from the Eligible Employee a receipt of
the taxi trip.
e. COMPANY's Program Coordinator shall forward copies of such receipts to KING COUNTY at the end of
each month for record keeping and accounting purposes.
f. The answering service provider will arrange taxi rides for the Eligible Employee.
CA KING COUNTY RESPONSIBILITIES
C.4.1 Participating Taxi Company(s)
COMPANY agrees that neither KING COUNTY or answering service provider is responsible for providing
transportation services under the HFG program. COMPANY further agrees that KING COUNTY makes no
guarantee or warranty as to the availability, quality or reliability of taxi service, and that the KING COUNTY's sole
obligation under the program is to make payment of the taxi provider for trips actually taken in accordance with the
terms of this Agreement. COMPANY agrees it shall make no claims of any kind or bring any suits of any kind
against the KING COUNTY for damages or injuries of any kind arising out of or in any way related to the HFG
program. Without limiting the foregoing and by way of example only, the COMPANY agrees that KING COUNTY
shall not be liable for any injuries or damages caused by negligence or intentional acts occurring before, during or
after a taxi ride or for any injuries or damages caused by failure of a taxi to provide a ride due to negligence,
intentional acts or causes beyond the taxi's control, including but not limited to incidence of fire, flood, snow,
earthquake or other acts of nature, riots, insurrection, accident, order of any court or civil authority, and strikes or
other labor actions.
C.4.2 Payment Of Authorized HFG Taxi Fares
KING COUNTY shall pay the metered fare amount of a COMPANY's Program Coordinator -authorized HFG ride,
as defined in the DEFINITIONS section above, for a one-way distance of up to sixty (60) miles. COMPANY or
Eligible Employee taking the HFG ride shall pay any fare for a one-way distance in excess of sixty (60) miles.
KING COUNTY shall not pay any taxi driver gratuity. Taxi driver gratuity will be at the sole discretion of
COMPANY or the Eligible Employee taking the HFG ride.
C.4.3 Reporting
KING COUNTY shall keep a complete record of all authorized HFG ride requests on a semi-annual basis and
provide a copy of this record to the designated COMPANY's Contact Person.
CAA Program Abuse
KING COUNTY reserves the right to investigate and recover costs from the COMPANY of intentional abuse of the
HFG program by Eligible Employees. Program abuse is defined as, but not limited to, taking trips for inappropriate
reasons, unauthorized destinations and intermediate stops, and pre -scheduled appointments not defined in the
DEFINITIONS section above.
FlexPass Agreement Page 10 of 10
City of Renton
March, 2004 — February, 2005
CITY OF RENTON, WASHINGTON
RESOLUTION NO.
A RESOLUTION OF THE CITY OF RENTON, WASHINGTON,
AUTHORIZING THE MAYOR AND CITY CLERK TO ENTER INTO AN
INTERLOCAL COOPERATIVE AGREEMENT WITH KING COUNTY
AND SOUND TRANSIT FOR THE SALE OF FLEXPASSES TO CITY OF
RENTON EMPLOYEES BY KING COUNTY.
WHEREAS, the City of Renton, King County and Sound Transit share the desire to
provide a transportation management program that will reduce single -occupant vehicle travel and
improve the mobility of employees to the City's worksites; and
WHEREAS, the County, through its Department of Transportation, provides buses,
vanpools and the Home Free Guarantee program; and
WHEREAS, the County, through those programs, is authorized to promote alternatives
to single occupant vehicle commuting in King County; and
WHEREAS, the City wishes to provide incentives to its employees which promote non -
single -occupant vehicle commuting to its worksites; and
WHEREAS, the City and County desire to utilize F1exPasses which can be used to access
a variety of services and benefits which enable the City's employees to commute by non -single
occupant vehicles; and
WHEREAS, it is necessary to document the terms and conditions under which such
program will be provided by the County to the City;
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF RENTON,
WASHINGTON, DO RESOLVE AS FOLLOWS:
SECTION I. The above findings are true and correct in all respects.
i RESOLUTION NO.
SECTION H. The Mayor and City Clerk are hereby authorized to enter into an
interlocal cooperative agreement for the sale of passes between King County, Sound Transit and
the City of Renton for F1exPasses, vanpool fare incentive, and the Home Free Guarantee program,
and all subsequent agreements that do not materially change the terms of the agreement and are
without budget parameters.
PASSED BY THE CITY COUNCIL this day of , 2004.
Bonnie I. Walton, City Clerk
APPROVED BY THE MAYOR this day of , 2004.
Approved as to form:
Lawrence J. Warren, City Attorney
RES.1032:1/21/04:ma
Kathy Keolker-Wheeler, Mayor
2
CITY OF RENTON COUNCIL AGENDA BILL
AI #:
Submitting Data: Planning/Building/Public Works
For Agenda of: February 9, 2004
DepvDiv/Board.. Utility Systems Division/Wastewater Utility
Agenda Status
Staff Contact...... Mike Benoit, x7206
Consent .............. X
Public Hearing...
Subject:
Engineering Consultant Agreement with RH2 Engineering,
Correspondence..
for additional services on the East Valley Lift Station
Ordinance .............
Replacement Project
Resolution............
Old Business........
New Business.......
Exhibits:
Addendum #2 to Consultant Agreement
Study Sessions......
Information.........
Recommended Action: Approvals:
Council Concur Legal Dept.........
Finance Dept......
Other..(Risk Mgr)
Fiscal Impact:
Expenditure Required... $56,353 Transfer/Amendment.......
Amount Budgeted.......... $5g,000 (engineering, construction Revenue
services, & staff time) Generated.........
Total Project Budget $947,000 Budget Authorization City Share Total Project..
(421.000400.018.5960.0035.045010) which
includes funds spent in 2003 and proposed carry
forwards for 2004
SUMMARY OF ACTION:
The Wastewater Utility is working on the East Valley Lift Station Replacement Project.
Previously, the consultant completed the design and was provided an addendum for services
during construction. Construction related issues have caused the need for additional work by
the consultant.
There are two tasks included in this addendum. The first is additional services during
construction not identified in the original contract. This work is the additional effort
undertaken to enhance safety precautions and monitoring for the potential settlement of the
adjacent building and road during construction. The second is for additional services to
redesign the station due to the need to relocate because of conflicts with existing utilities. The
overall issue of additional work was discussed at the Utilities Committee on January 22, 2004,
and Council approved the additional budget authority on January 26, 2004.
STAFF RECOMMENDATION:
The Planning/Building/Public Works Department recommends that the City Council authorize
the Mayor and City Clerk to execute Addendum #2 with RH2 Engineering, in the amount of
$56,353.00 to provide additional engineering services for the East Renton Lift Station
Replacement Project.
H:\File Sys\WWP - WasteWater\WWP-27-2906 East Valley Lift Station\AB ADENDUM 2.doc\MABtp
ADDENDUM NO. 2
CONSULTANT AGREEMENT FOR PROFESSIONAL
ENGINEERING SERVICES
for
East Valley Lift Station Replacement
CAG-01-044
This Addendum is made and entered into this, day of , 2003, by and between the City of
Renton, hereinafter called the "City", and R112 Engineering, Inc., whose address is, 12100 NE 195`h Street,
Suite 100, Bothell, WA 98011, hereinafter called the "Consultant'.
WITNESSETH THAT:
WHEREAS, the City engaged the services of the consultant under Engineering Consultant Agreement CAG-
01-044, dated March 27, 2001 to provide engineering services necessary for the East Valley Lift Station
Replacement project and
WHEREAS, the City desires to complete additional work associated with the East Valley Lift Station
Replacement project, and the City does not have sufficient qualified engineering employees to perform the
work within a reasonable time; and
WHEREAS, the City and consultant have determined that additional design work and construction
management for the East Valley Lift Station Replacement project is required, such additional work items and
costs being shown in Exhibit A to this Addendum No. 2.
NOW, THEREFORE, in accordance with Section VIII, Extra Work of the Master Agreement CAG-01-044,
dated March 26, 2002, it is mutually agreed upon that Engineering Consultant Agreement CAG—01-044, is
amended to include the work and associated budget as follows:
1. The maximum amount payable for the additional work items defined in the attachment to this
addendum of this Contract Addendum #1 is $56,353.
2. The revised contract total payable for work on this contract is $148,018, which is an increase of
$56,353 (Addendum #2) over the existing contract amount of $91,665.
All other provisions of Consultant Agreement CAG-01-044 dated March 27, 2001 shall apply to this
addendum.
EXECUTION
IN WITNESS WHEREOF, the parties have executed this Addendum No. 2 to ENGINEERING
CONSULTANT AGREEMENT CAG-01-044, as of the day and year first above written.
CONSULTANT
Signature Date
Type or Print Name
Title
CITY OF RENTON
Kathy Keolker-Wheeler, Mayor
Attest:
Bonnie I. Walton, City Clerk
R142 Addendum_02.doc Addendum/bh 12/99
EXHIBIT A
ADDENDUM 2 - SCOPE OF WORK
CITY OF RENTON
EAST VALLEY LIFT STATION
CONSTRUCTION MANAGEMENT
INTRODUCTION
This Scope of Work includes work that was completed during services during construction
phase that was not part of the original Scope of Work signed on July 24``', 2003 as part of
Addendum No. 1.
TASK FOUR: ADDITIONAL SERVICES DURING CONSTRUCTION
Objective: Provide administrative and technical services necessary for construction
completion that were not identified as part of the original contract or Addendum 1.
Approach:
A. Prepare agenda and attend meetings with the Contractor and their geotechnical engineer.
Provide summary of meeting minutes to all parties available via e-mail. Work with
Contractor and their subcontractors in resolving dewatering concerns brought forward
by the Contractor.
B. Provide halftime construction observation during the installation of the shoring,
dewatering system, and wet well installation. Work includes visiting the site daily during
this construction activity and documenting the activities witnessed. Attend periodic
progress meetings with City staff and Contractor at project site to discuss progress and
issues. This work is in addition to planed periodical inspections.
C. Develop a settlement monitoring plan for the existing roadway, parking lot, buildings
and structures in the immediate area of the construction during the installment of the
shoring and operation of dewatering system. This work will be performed by Golder
Associates and Touma Engineering under a Subconsultant agreement with R112. RH2
will provide review of the monitoring plan results and provide recommendations to the
City on any impacts.
D. Provide supplemental drawings, specifications, or instructions as necessary to respond to
field conditions encountered, or to modify contract plans, if necessary.
Deliverable Product
A. Daily e-mail reports of shoring and dewatering activities.
B. Settlement monitoring plan.
PAGE 1 OF 2
1 /22/2004 8:07 AM 1 C:\Documents and Settings\mbenoitTocal Settings\TempTast Valley LS SDC - Scup
EXHIBIT A — ADDENDUM 2, SCOPE OF WORK
EAST VALLEY LIFT STATION CONSTRUCTION MANAGEMENT
C. Inspection reports.
TASK FIVE: REDESIGN OF LIFT STATION IN ALTERNATIVE LOCATION
Objective: Revise the design of the lift station to relocate the wet well away from buried
electrical and telephone feeders to the Valley Medical Center.
Approach:
A. Revise the design plans to reflect a location change of the proposed wet well. Work
involves revises all plan sheets that will be affected by the change in location including
the electrical plans. Work will include review and coordination with City on the
proposed revisions.
Deliverable Product
A. Revised construction sets.
PAGE 2 OF 2
1/22/2004 8:07 AM 20\Documents and Settings\mbenoitTocal Settings\Temp\East Valley LS SDC - Scop
EXHIBIT B
ADDENDUM NO. 2 - FEE ESTIMATE
CITY OF RENTON
EAST VALLEY LIFT STATION
CONSTRUCTION MANAGEMENT
PERSONNEL
CLASSIFICATION
RATE
TASK HOURS
AND EXPENSES
Task 4
Out of Scope
Task 5
Redesign
Task 6
Not Used
Budget
TOTAL
Budget
Budget
Budget
Principal IX
$71
0.0
7.5
0.0
7.5
$531
Principal VII
$51
5.0
21.75
0.0
26.8
$1,373
Professional A
$42
110.00
16.00
0.0
126.0
$5,351
Professional V
$36
52.00
23.5
0.0
75.5
$2,718
Professional IV
$39
0.0
0.0
0.0
0.0
$0
Professional11
$24
0.0
5.25
0.0
5.3
$125
Professional
$22
121.0
50.00
0.0
171.0
$3,762
Technician 1
$14
0.00
0.0
0.0
0.0
$0
Administrative 11
$14
0.00
0.0
0.0
0.0
$0
Hours Subtotal
288.0
124.00
0.0
412.0
Labor Fee Subtotals
$9,462
$4,398.23
$0
$13,861
Overhead Costs 204%
$19,303
$8,972.38
$0
$28,276
Subtotal Costs
$28,766
$13,371
$0
$42,136
Net Fee 12%
$3,452
$1,604.47
$0
$5,056
Total Labor Fee
$32,218
$14,975
$0
$47,193
Subconsultant
$8,160
$0
$0
$8,160.00
Expenses
AutoCAD Computer time
$300
$0
$0
$300.00
AutoCAD Plots
$700
$0
$0
$700.00
Word Processing
$0
$0
$0
$0.00
Copying and Printing
$0
$0
$0
$0.00
Fax Expenses
$0
$0
$0
$0.00
Miscellanous
$0
$0
$0
$0.00
Mileage Expenses
$0
$0
$0
$0.00
Expenses Subtotal
$1,000
$0
$0
$1,000.00
Task Subtotals
$41,378 1
$14,975
$0
$56,353
TOTAL $561353
01/22/2004 8:16 AM Addendum No 2 - Worksheets.As
UTILITIES COMMITTEE
COMMITTEE REPORT
February 9; 2004
AP PPOVED BY
CCTV COUNCIL
Date 0?— 9- o2oD1/
ADJUSTMENT OF APPROPRIATION OF FUNDS
FOR WATER UTILITY CAPITAL IMPROVEMENT PROJECTS IN 2004
AND APPROVAL OF CONSULTANT CONTRACT FOR TELEMETRY SYSTEM
PROGRAMMING
(Referred February, 2, 2004)
The Utilities Committee concurs with the. Planning/Building/Public Works Department's
recommendation that Council approve the transfer of $50,000 within the 2004 appropriation
of funds. for Water Utility capital improvement projects (421 account).
The transfer will be from the following accounts:
From Account No.
To Account No.
Amount
421.000500.018.5960.0034.65.55567
Well 9 Rehabilitation
42.1.000500.018.5960.0034.65.55120
Water Telemetry S., sterrig,im rovements
$2000
42t.000500.018.5960.0034.65:55530
Water Pump Station Rehabilitation
42I.900500018.5W.0034:65.55120
Systems 4pprovements
$30,000
Total", ount of transfer
$50,000
The Committee further recommends that Council approve the conalltant contract with RH2
Engineering, Inc. in the amoll0of $25 101..35 to program the telemetry system and that the
Mayor and City Clerk be authorized to sign -the contract
Dan Clawson, Chair
Terri BrieretVice Chair
Marcie Palmer, Member
cc: Lys Hornsby
Abdoul Gafour
PLANNING AND DEVELOPMENT COMMITTEE
COMMITTEE REPORT
February 9, 2004
Adoption of 2002 National Electric Code,
with City of Renton Amendments
(Referred February 2, 2004)
APM-nROV70 BY
Date a- 9- - MI
All adopted codes used by the City of Renton are updated and published in a three (3) year
code cycle. The State Legislature previously reviewed and adopted the 2002 National Electric
Code, which then went to the City of Renton: for amendments and adoption.
The Planning and Development Committee recommends concurrence in staff's
recommendation that Council approve adoption of the latest publication of the 2002 National
Electrical Code, with City of Renton amendments: Upon approval by Council,. the, provisions
will be adopted and codified in accordance with Chapter 19.2$ RCW.
The Committee further recommends that -the ordinance regarding this matter be, presented for
first reading.
cc: Larry Meckling
Neil Watts
FINANCE COMMITTEE REPORT
February 9, 2004
APPROVAL OF CLAIMS AND PAYROLL VOUCHERS
APPROVEM By �
CITY COUNCIL
Date a- 9- aoo
The Finance Committee approves for payment on February 9, 2004, claim vouchers 223232-223588
and 1 wire transfer, totaling $3,170,843.19 , and 569 direct deposits, payroll vouchers 48943-
49168, and 1 wire transfer, totaling $1,791,374.52 .
Toni Nelson, Member
CITY OF RENTON, WASHINGTON
RESOLUTION NO. S 6 SJr
A RESOLUTION OF THE CITY OF RENTON, WASHINGTON,
AUTHORIZING THE MAYOR AND CITY CLERK TO ENTER INTO AN
INTERLOCAL COOPERATIVE AGREEMENT WITH KING COUNTY
AND SOUND TRANSIT FOR THE SALE OF FLEXPASSES TO CITY OF
RENTON EMPLOYEES BY KING COUNTY.
WHEREAS, the City of Renton, King County and Sound Transit share the desire to
provide a transportation management program that will reduce single -occupant vehicle travel and
improve the mobility of employees to the City's worksites; and
WHEREAS, the County, through its Department of Transportation, provides buses,
vanpools and the Home Free Guarantee program; and
WHEREAS, the County, through those programs, is authorized to promote alternatives
to single occupant vehicle commuting in King County; and
WHEREAS, the City wishes to provide incentives to its employees which promote non -
single -occupant vehicle commuting to its worksites; and
WHEREAS, the City and County desire to utilize F1exPasses which can be used to access
a variety of services and benefits which enable the City's employees to commute by non -single
occupant vehicles; and
WHEREAS, it is necessary to document the terms and conditions under which such
program will be provided by the County to the City;
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF RENTON,
WASHINGTON, DO RESOLVE AS FOLLOWS:
SECTION I. The above findings are true and correct in all respects.
RESOLUTION NO.
SECTION II. The Mayor and City Clerk are hereby authorized to enter into an
interlocal cooperative agreement for the sale of passes between King County, Sound Transit and
the City of Renton for F1exPasses, vanpool fare incentive, and the Home Free Guarantee program,
and all subsequent agreements that do not materially change the terms of the agreement and are
without budget parameters.
PASSED BY THE CITY COUNCIL this day of
APPROVED BY THE MAYOR this
Approved as to form:
Lawrence J. Warren, City Attorney
RES.1032:1/21/04:ma
Bonnie I. Walton, City Clerk
day of
Kathy Keolker-Wheeler, Mayor
2004.
2004.
2
From: Julie Brewer
To: Antonette Nelson; Daniel Clawson; Denis Law; Don Persson; Julia Medzegian; Kathy
Wheeler; Marcie Palmer; Randy Corman; Terri Briere
Date: 2/9/2004 3:07:37 PM
Subject: GOOD NEWS ANNOUNCEMENTS FOR THE RSD BOARD
Following are the Renton School Board Announcementms of GOOD NEWS from Randy Matheson. - Julie
GOOD NEWS" ANNOUNCEMENTS
February 11, 2004
- The National Merit Scholarship Program, an academic competition for recognition and scholarships, has
released the names of finalists for the coveted award.
Finalists in the Renton School District are:
Brittany Ford, senior at Lindbergh High School
Shana Straub", senior at Hazen High School
Krista Weiss, senior at Hazen High School
Amy Withers, senior at Hazen High School
'Shana is also a finalist for the Presidential Scholars Award (included in last board meeting's Good News
announcements).
High school students enter the National Merit Program by taking the PSAT, a test that serves as an initial
screen of approximately 1.3 million entrants each year — and by meeting published program
entry/participation requirements.
Only 15,000 semifinalists advance to finalist standing. Selection is based on the student's academic
record, information about the school's curricula and grading system, two sets of test scores, school
recommendation, information about the student's activities and leadership, and the Finalist's own essay.
These finalists compete for financial scholarships that could total as much as $2,500 for an individual
student.
- Divina Voce, (div-ina vochea) a select, small 11-member ensemble of talented young women at Hazen
High School, have been selected to be part of the "New Works, New Hope" concert, sponsored by the
Seattle Composers Alliance and Gilda's Club of Seattle. The concert is scheduled for May 6 at Benaroya
Hall in the Nordstrom Recital Hall.
A local composer is currently working with the students to write a piece for the performance. This is an
excellent opportunity for students to participate in a program that introduces them to the composing
process. Information on ticket availability will soon be released.
Working with the American Red Cross, students, staff and parents at Kennydale Elementary School and
Nelsen Middle School recently completed First Aid and CPR training through the School Safety Initiative
pilot program. The Red Cross sites cooperation of the district and the two schools as "the most successful
programs of the nine pilot sites. nationwide." Lindbergh High School will join the program this year.
Here's some of what the partnership has been able to accomplish so far:
Kennydale:
-101 third graders completed First Aid for Children Today course.
-69 fifth graders completed Basic Aid Training course.
-221 students participated in disaster education presentations.
-12 staff members participated in CPR/First Aid training.
Nelsen:
-9 parents participated in CPR/First Aid training.
-327 sixth graders trained in Adult, Infant and Child CPR/First Aid.
-437 students participated in disaster education presentations.
-Students raised more than $250 for the Red Cross Measles Initiative.
- Bryn Mawr students are participating in an exciting reading incentive program designed by Heifer
International, to motivate students to read more and give back to the world community. Bryn Mawr
students will raise money for Read To Feed by writing letters to community and business leaders
explaining the program and asking for donations or pledges. Each child should earn about $15 by reading
twenty minutes, five nights a week for the duration of the challenge.
The school's goal is to raise $5,000 for the Read To Feed Challenge: enough to sponsor an entire Heifer
International "ark" of animals that will provide animals and training to as many as 30 families around the
world.
Heifer International is a non-profit organization that has helped more than four million impoverished
families in 128 countries move away from poverty to self-reliance by offering a "living gift" of an animal,
along with training in animal care, good agricultural practices and community development.
- Dimmitt Middle School recently held their first Family Reading Night to celebrate reading together. The
fun -filled evening featured a guest reader, tips on improving reading skills, free books, literature related
giveaways, games and activities as well pizza, pop and desserts. Students, parents, siblings, and
community members attended.
- Lakeridge Elementary School recently hosted a Reading Night. Fifth- and third -grade students shared
the stage with Ted Hutchinson, an extraordinary African folktale storyteller and singer.
Tiffany Park Elementary School staff recently welcomed fourth -grade teacher Zurhra Milyeva (sor-ah
mill-yea-va) from Uzbekistan. Zurha, traveling with her 16-year-old daughter, Malika, is a visiting teacher
working through the International Education Exchange program visiting several classrooms throughout the
district.
- Interns from Family Medical are teaching students at Talbot Hill Elementary School anti -smoking lessons
through a program called Tar Wars. Tar Wars is a tobacco -free education program for fourth- and
fifth -grade students. The program is designed to teach kids about the short-term, image -based
consequences of tobacco use, the cost associated with using tobacco products, and the advertising
techniques used by the tobacco industry to market their products to youth. A poster contest is conducted
at the school, state, and national level to reinforce the Tar Wars message.
- Renton Rotary has named their Teachers of the Month:
-Maxine Matthew teaches fifth -grade at Maplewood Heights Elementary School. Maxine has been with the
district since 1969. She holds a Bachelors degree in Elementary Education from University of Washington.
-Joan Frank teaches first grade at Tiffany Park Elementary School. Joan has been with the district since
1987. She holds a Bachelors degree in Social Science from University of Northern Iowa.
-Stephanie Pender teaches Science at Dimmitt Middle School. Stephanie has worked for the district
sincel996. She holds a Bachelors degree in Psychology from Western Washington University and a
Masters degree in Educational Teaching from Seattle University.
>>> Randy Matheson <rmatheson @ renton.wednet.edu> 02/09/04 03:OOPM >>>
Attached are this week's Board Good News announcements from the Renton
School District...
CC: Alexander Pietsch; Bonnie Walton; Crystal McMeans; DeAnna Fricke; Debra
Mikolaizik; Dennis Culp; Derek Todd; Fred Kaufman; Garry Anderson; Gregg Zimmerman; Jay
Covington; Joseph McGuire; Larry Warren; Lee Wheeler; maanthony86@seanet.com; Margaret Pullar;
Mary Weirich; Michael Webby; Pauletta Sulky; Sandra Pilat; Sara Garner; Sherry Smith; Sonja
Mejlaender; Tami Dauenhauer; Victoria Runkle; Wendi Fischer