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HomeMy WebLinkAboutCOW 2004-08-09 COMPLETE AGENDA PACKETTukwila City Council Agenda °:' COMMITTEE OF THE WHOLE ':' Steven M. Mullet, Mayor -. Councilmembers: · Para Carter · Joe Duffle Rhonda Berry, City Administrator · Dave Fenton · Joan Hemandez Jim Haggerton, Council President · Pamela Linder · Dennis Robertson Monday, August 9, 2004; 7 I'M Tukwila City Hall; Council Chambers 1. CALL TO ORDER / PLEDGE OF ALLEGIANCE 2. SPECIAL Inclusive Recreation- PRESENTATION Grant Richardson & Kathy Lucchesi of Boundless Choice. 3. CITIZEN At this time, you are invited to comment on items not included on COMMENT this agenda. To comment on an item listed on this agenda, please save your comments until the issue is presented for discussion. 4. PUBLIC HEARING Proposed CDBG projects for 2005. 5. SPECIAL ISSUES a. An ordinance setting water connection fees for any new development in the Duwamish neighborhood. b. A new lease location for Tourism & Marketing. c. An interlocal agreement for Tourism and Marketing services between Seattle Southside Visitor Services and City of Kent. d. A Property Exchange Agreement with Northfield Car Wash. e. An ordinance regulating motorized scooters and EPAMDs (Electric Personal-Assistive Mobility Device). 6. REPORTS a. Mayor c. Staff e. Intergovernmental b. City Council d. City Attorney 7. MISCELLANEOUS 8. EXECUTIVE SESSION - Pending Litigation; pursuant to RCW 42.30.110(1)(0 (30 minutes) 9. ADJOURNMENT Tukwila City Hall i~ wheelchair accessible. Reasonable accommodations are available at public hearings with advance notice to the City Clerk's Office 206-433-1S00/TDD 206-248-2933. This notice is available at www.ci.tukwilmwa.us and in alternate formats with advance notice for those with disabilities. Tukwila Council meetings are audio taped. C OUNCIL AGENDA SYNOPSIS ir o f IS• 'nitials ITEM NO. s. Meeting Date I Prepared by I Mayor's review 1 Council review 1 1) \reh i, 08 -09 -04 I E. BOYKAN I A A ,1J.. tsoe 1 1 1 1 I CAS NUMBER: 04-111 I ORIGINAL AGENDA DATE: AUGUST 9, 2004 I AGENDA ITEM TITLE Proposed CDBG Projects for 2005 CATEGORY Discussion Motion Resolution Ordinance Bid Award Public Other Hearing MtgDate MtgDate MtgDate MtgDate MtgDate MtgDate MtgDate 08.09-04 SPONSOR Council Mayor Human Services Adm DCD Finance Fire Legal P&-R Police PW Svcs SPONSOR'S Request approval of proposed projects for 2005. Also request approval of contingency plan SUMMARY for decreases or increases. Hold public hearing. REVIEWED BY COW Mtg. CA &P Cmte F &S Cmte Transportation Cmte Utilities Cmte Arts Comm. Parks Comm. Planning Comm. DATE: 07 -27 -04 RECOMMENDATIONS: SPONSOR/ADMIN. Hold public hearing in consideration of reauests stated above. CoMMrrrEE Same as sponsor. EXPENDITURE REQUIRED AMOUNT BUDGETED APPROPRIATION REQUIRED Fund Source: Housing and Urban Development Estimated $261,819.00 Comments: mss Ii �.t .3 .v ,Fl 4: 3T A* �f{_4' y,4 �3 1 �553�E� ��§a� t A .i ��a x {SdF •TC =4 08 -09 -04 1 COW l 11 .r x 44 Q1 i r..4 T',d a�... h nk.3 �%7 a 1K�F�a. f 0. f 08 -09 -04 1 Staff Memorandum dated 07 -27 -04 2005 Summary Sheet, Recommendations and Summary including contingencies for increases and decrease 1 2005 Fund Distribution INFORMATION MEMO To: Mayor Mullet From: Evie Boykan Date: July 27, 2004 Subject: Proposed Community Development Block Grant Proposals for 2005 Project No. ISSUE The City expects to receive an estimated $261,819 for 2005, not including any potential recaptured funds from this year. An internal advisory group met and made recommendations (see attached recommendations). Proposed projects must be shared through a public hearing with finalized recommendations going to King County. Jurisdictions are encouraged to jointly fund sub-regional projects at $50,000 or more, although for smaller pass-through cities, smaller projects will be allowed. BACKGROUND Our entitlement as a "pass-through" city allows us to annually allocate funds to capital, human service and planning projects. Funds are allocated by Housing and Urban Development (HUD) to Counties and then, for smaller cities, are "passed through" to them. DISCUSSION/ANALYSIS/ALTERNATIVES Council may choose to accept, modify or reject proposed projects. Staff will be available to talk about applications received and recommendations made. RECOMMENDATION Administration supports staff recommendations. Programs recommended for funding include: capital - Pediatric Interim Care Center - $10,000, Lutheran Community Services Northwest- $12,200, Home Sight First Homes - $105,000, Senior Services Minor Home Repair -$20,000 and King County Housing Repair -$63,637. For planning and admin, an update of Tukwila Human Services - $20,258 and for public services - Tukwila Senior Citizen Program Support - $30,724. A contingency plan for increases or decreases would be to increase or decrease the amount for King County Housing Repair. attachments: 2005 SUMMARY SHEET for CDBG Pass-through City City: Tukwila CDBG Funds Available for 2005 Allocation: Sham of 2005 Entitlement Grant: $ 168,965 Share of Recaptured Funds $ Additional Recaptured Funds $ Program Income: $ 92,855 Total Available: $ 261,819 Portion allowable for Public Services $ 30,724 Portion allowable for Planning/Administration $ 20,258 CDBG Funds Allocated in 2005Program Project Title Capital Public Planning/ Services Adrnin #1 Pediatric Interim Care Center $I0,000 $ $ #2 Lutheran Community Services Northwest $12,200 $ $ #3 HomeSight First Homes $105,000 $ $ #4 Senior Services Minor Home Repair $20,000 $ $ #5 $63,637 $ $ King County Home Repair #6 Tukwila Human Services Update $ $ $20,258 #7 Tukwila Senior Citizen Program Support $ $30,274 $ Subtotal, Capital $ 210,837 Subtotal, Public Service - $ 30,274 Subtotal, Planning/Admin $ 20,258 Total Allocated (must not exceed total available) $ 261,819 Funding Contingencies: Balance Increases and decreases from the King County Housing Repair Program 2005 CDBG Estimate Fund Distribution - Jun04 City % of Consortium's UM Population Entitlement SHARE Joint Agreement Share RE- CAPTURED FUNDS PROGRAM INCOME TOTAL SHARE PUBLIC SERVICE PLANNING & ADMIN BALANCE FOR CAPITAL Bothell 0.03089 168,365 19,611 187,976 30,615 20,186 137,174 Burien 0.04916 267,920 22,411 290,332 48,718 32,122 209,491 Covington 0.01283 69,906 49,120 119,026 12,712 8,381 97,933 Des Moines 0.03931 214,278 19,658 233,936 38,964 25,691 169,281 Enumclaw 0.01606 87,559 15,244 102,803 15,922 10,498 76,384 Federal Way 0.11500 647,936 43,133 50,208 741,277 113,975 75,149 552,153 Issaquah 0.01072 58,441 269 58,710 10,627 7,007 41,077 Kirkland 0.03953 215,478 11,801 227,278 39,182 25,835 162,262 Lake Forest Park 0.00938 51,123 236 51,359 9,296 6,129 35,933 Mercer Island 0.01149 62,623 3,275 65,898 11,387 7,508 47,003 Redmond 0.03557 193,867 16,988 210,855 35,252 23,244 152,359 Renton 0.06906 389,084 50,270 7,463 446,817 68,442 45,127 333,248 SeaTac 0.04199 228,845 15,268 244,113 41,613 27,437 175,063 Shoreline 0.06596 359,489 94,055 453,545 65,369 43,101 345,075 Tukwila 0.03100 168,965 92,855 261,819 30,724 20,258 210,837 TOTAL CITITES 57.91% 93403 93,403 418,461 3,695,743 572,797 377,675 2,745,271 Co & Sm Citites 42.09% 2276770 713,598 2,990,368 418278 275,792 2,296,298 nn., n9C CCO AG-7 C AAA =an Consortium PI Entitlement 7164000 Admin Set -aside - 1320270 HSP Set -aside - 300000 Joint Agmt Adjust. -93403 Balance 5450327 [File] 7/28/0411:47 AM 300000 1067967 1291076 1,721,434 Recommendations and Summary of CDBG Proposals 2005 An internal working group composed of Moira.Bradshaw Can', Bob Giberson, Lucy Lauterbach, Stacy Hansan and Evelyn Boykan reviewed proposals and made the following funding recommendations for 2005: Pediatric Interim Care Center - New Facility construction - Request $10,000 Recommendation $10,000 Funds will develop a new facility for drug- exposed/medically fragile newborns on 3 purchased lots in Kent. This is a regional facility which provides 24 hour medical supervision, non- hospital care for drug exposed newborns throughout Washington state. They propose to construct a 2 story residential clinic to provide a centralized nurses station, 8 infant care rooms accommodating 3 infants each, a training center, lobby and family consulting areas and support and office areas. Location would be 2 blocks from its current location and will be close to the Kent Police station. It is the only resource offering a 24 hour information line for caregivers and training in the care of drng exposed infants for foster/adoptive parents, medical professionals and others. About 12,000 drug exposed infants are born in the state each year. The babies are brought through a withdrawal period average 30 days. About 25 % of the infants placed in 2003 were from South King County. Current facility has capacity of 15 babies. Proposed project will accommodate 25 infants and expand indirect services. They served a total of 161 infants in 2003. Program has been around since 1990. 21% of their total funding is proposed to coming from CDBG. Overall budget seems realistic, environmental review is being done with assistance from City of Kent. Agency has been successful in raising private and public funds. They have had experience in remodeling their existing site. They are asking for funds from all south king county suburban cities. Recommendation: Recommend providing requested support for this regional serving facility. Lutheran Community Services Northwest - Community Services Building -Request $12,200 - Recommendation $12,200 Funds will be used to cover permitting and fees associated with the development of a Community Services Building to provide licensed childcare, chore services for elderly/people with disabilities, refugee and immigrant support services and a health center. The project is in the pre-design and design phase for the new construction of a multi-service facility in the City of SeaTac. The facility will house extended hour childcare center (75 slots) refugee and immigrant mental health counseling services, chore services and a health clinic to be nm by Commurdty Health Centers of King County. These uses account for about 14,000 square feet. The remaining space will be used for administration and other social services. Lutheran Community Services Northwest, a non-profit organization that provides social services will operate the facility. This building is part of a larger effort to create a multi-generational campus that includes 80 units of low-income senior housing. South King County's explosive growth of low income and refugee and immigrant families demonstrates the need for such facility and services. They expect that 12% of their population will come from Tukwila. At 3,358, this is rather high, however, it can be argued that even with Refugee Women's Alliance and the International Rescue Committee, additional services at a relatively accessible location would be helpful to serve our large refugee and immigrant community. Total cost of this project is $7.3 million. A variety of fund sources are being used for the project. Tukwila's contribution would represent a very small percentage of the total funds needed. Recommendation: While this would be another regional serving facility, it would enhance the services available to limited income seniors, families and refugees and immigrants. It would serve Tukwila residents, both seniors as well as families. ItomeSight's Firstltomes Program - Request $105,000 Recommendation $105,000 HomeSight's request would provide first-time buyer purchase assistance loans to households earning at or below 80% of median income purchasing new or existing homes within the City of Tukwila. Their request increases gap financing assistance to $35,000 per household. Rates are currently for 30 years at a 3% interest rate with deferred principal payment for 7 years. The City funded HomeSight back in 2000 and since then 5 buyers have been assisted with an average loan of $22,100. At that time, households with incomes ranging from 40% of median income to 79 % of median income were served. Average sales price was $115,090 with a high of $169,500 and a low of $96,000. Applicants receive financial counseling, buyer education, loan underwriting and packaging subsidized by other funds not related to the City's contribution. HomeSight was awarded King County HOME dollars in 2003, and so a percentage of those dollars are being considered as match dollars for what the City of Tukwila contributes. As such, HomeSight indicates that with $105,000 of City CDBG funds, 6 Tukwila households will be served. Available housing stock would include either owner occupied or vacant houses. Houses used as rentals would not be allowable as that would trip the expensive Uniform Relocation Act regulations. HomeSight does have application for other funds pendi_qg for $1.5 million. As of June 1, HomeSight's investments and commitments for the Revolving Loan Fund totals $7 million. Currently there are 8 Tukwila households in the pipeline looking for an affordable house. This meets our efforts to increase homeownership in Tukwila. Senior Services of Seattle King County Minor Home Repair -Request $27,000 Recommendation $20,000 This program, targeted at low to moderate income homeowning households offers reasonable costs for small repair jobs (about up to $1,000). Homeowners pay $10 hr for labor and materials. Homeowners are not denied regardless of their ability to pay. We have funded this program since 1999 and it has served about 83 duplicated households. Costs to provide the service continue to rise, as such, the program requests $27,000 to serve 22 households. This number would represent 3% of the total clients served in the program. The agency also holds a contract with SeaTae, however the majority of clients served reside within the City of Seattle limits. While this program does meet a specific targeted need, marketing has always been a challenge - perhaps the name suggests to people that it is only available to seniors (not true), or there ~s a reluctance to ask for assistance or to provide the needed income documentation. As such, there have been years when the program was not able to reach their targeted goal. We do recognize the increasing costs for operations and recommend increasing their award to $20,000 annually. We will need to negotiate the number of households to be served. They proposed to serve 22 households for the original request. Human Services Needs Update -Request $20,258 Recommendation $20,258 The City can use up to $20,258 for planning purposes. The Office of Human Services proposes to use this money to hire a consultant to update the city's needs assessment, and to evaluate our efforts to address community needs. Our update would include synthesis of 2000 census data and recent school district data, eliciting public input from targeted groups and specific interviews, identifying strengths and needs and reviewing current goals and strategies. King County Housing Repair (Major Home Repair) Recommendation $63,637 We consistently have awarded this program funds annually to address homeowner major repair needs in the forms of no- interest loans up to $20,000 per household and emergency grants. These funds roll over from year to year and by the end of 1st quarter 2004 $126,820 was available to commit to Tukwilahouseholds. Recently we discussed the advantages of using these funds to assist side sewer connection customers - by routing them through housing repair, we would avoid the internal administrative costs beyond income eligibility screening. At this time, it is anclear how much money we should set aside for side sewer assistance customers. 13 households are in the pipeline for home repair for this year and it is expected that we will spend out our funds. The group also recommended that any increases or decreases come to/from this area. Tukwila Senior Citizen Program Support - Recommendation $30,724 This amount represents the allowable amount of CDBG dollars that can be used for human services. Bruce Fletcher, from Parks and Recreation indicated that he would like to continue using the funds to support the Senior Recreation Program Assistant. Multi- Service Center - $60,000 This proposal targets literacy issues within an employment context - helping individuals with employment plans to obtain the resources they need to help build self sufficiency skills. The program is targeted to existing low wage earners with either soft skills or literacy skills. Positions funded would include a Family development specialist that would provide assessment, GED and possibly ABE classes. Other staff would include literacy development specialists and a literacy development supervisor. Services would be provided at some unidentified location in Tukwila. One on one or group service would be offered. Participants will be Tukwila residents who are low income and are either unemployed or underemployed. Would propose to serve 40 Tukwila residents. Outcomes are vague and probably depend on whether the person is employed or unemployed to begin with. MSC does have a history of providing employmem, however most of their services have been based in Federal Way. They do have contracts - CDBG - to work with Renton, Kent and Federal Way, but they are just getting started due to the lateness of the County getting contracts out. Recommendation: Don't recommend funding for next year since - the proposal is vague, they don't have a track record yet with the other cities, there is some employment being done with TANF refugee clients through ReWa, and there is some overlap wi~ our Adult literacy program. Total Preliminary Estimate of Funds Available $261,819 Total Funds Recommended $261,819 J .„W0.A. Ii; COUNCIL AGENDA SYNOPSIS sy'' I nitial ITEMNO. �O -*Li p o 1 M eeting Date 1 Prepared by 1 Mayo review 1 Cov review 1 c 0 '•,,V1/4 -2--- \--i 1 1 I 8/ 9/ 04 1 MC I ,A...4- I c l /,nn 6/' 1 N 5, a rsos 1 1 1 1 1 I I 1 1 ITEM INFORMATION CAS NUMBER: 04-112 1 ORIGINAL AGENDA DATE: AUGUST 9, 2004 AGENDA ITEM TITLE Approve Ordinance setting the water connection fees for any new development in the Duwamish neighborhood. CATEGORY Discussion Motion Resolution Ordinance Bid Award Public Hearing Other Mtg Date Mtg Date Mtg Date Mtg Date 8/9/04 Mtg Date Mtg Date Mtg Date SPONSOR Council Mayor Adm Svcs DCD Finance Fire Legal Pd9R Police PW/ SPONSOR'S The City and Val Vue Sewer District completed the water, sewer, surface water and street SUMMARY improvements in the Duwamish neighborhood. Water connection fees for new development can now be set. Costs for the water construction equaled $397,543 and a total of 100 water connections are possible in that neighborhood. This sets the initial connection fee at $3,975.44 increasing 1% over 10 years. REVIEWED BY COW Mtg. CA &P Cmte F &S Cmte Transportation Cmte Utilities Cmte Arts Comm. Parks Comm. Planning Comm. DATE: 8/3/04 RECOMMENDATIONS: SPONSOR /ADMIN. Approve Ordinance setting Duwamish Water Connection Fees CoMMITrEE Forward to COW and then Regular for approval COST IMPACT FUND SOURCE EXPENDITURE REQUIRED AMOUNT BUDGETED APPROPRIATION REQUIRED Fund Source: 403.01 WATER FUND Comments: MTG. DATE RECORD OF COUNCIL ACTION 1 1 1 1 MTG. DATE ATTACHMENTS 8/9/04 Information Memo dated 7/27/04 (revised after UC) Ordinance I Map of Duwamish neighborhood boundaries 1 I INFORMATION MEMO To: Mayor Mullet From: Public Works Director,~O~ Date: July 27, 2004 Subject: Duwamish Area Water Connection Fees ISSUE Approve ordinance setting the water connection fees for any new development in the Duwamish neighborhood. BACKGROUND The City of Tukwila and the Val Vu¢ Sewer District completed the water, sewer, surface water and street improvements in the Duwamish neighborhood. In 2002, Ordinance No. 2007 required connection to the sewer line and set the boundaries of the neighborhood. Now that the entire costs have been determined and the project has been closed out, we are able to set the water connection fees for any new development. ANALYSIS The water costs equaled $397,543.74 and we estimate that a total of 100 water connections, both existing and new, are possible in that neighborhood. This sets the initial connection fee at $3,975.44. New development is estimated between 20-40 new water conneetious and they will be required to pay the water connection fee before approval of the building permit. Houses currently connected to the water system will not be assessed a water connection fee and are covered under the water fund and their monthly water bill. Along with Val Vue Sewer Distxict, we financed the project with a 20-year loan. RCW 35.92.025 allows the City to charge for the installation of water systems such that the property owners bear their equitable share. This also includes interest charges for a period not to exceed ten years at a rate commensurate with the rate of interest applicable to the City. The Public Works Trust Fund loan is for 20 years at ~ % interest and we are setting the connection fees to increase 1% each year over a ten-year period. RECOMMENDATION Approve ordinance setting the water connection fees for the Duwamish neighborhood. attachment DI ,qF'T ~ ORDIN~a~.NCE OF THE ~I'I~Z ~O~N~IL OF THE ~I~'~ OF 'IID~LA; WASHINGTON, ESTAB~I$I-IIN~ WATIRR ~ONNE~TION ~ES FOR THE DUI~/~MISH NEIGHBORHOOD~ PRO¥IDIN~ FOR SEYEI~kBILI~ WHEREAS, upon completion of the Duwamish neighborhood revitalization project that installed water, sewer, surface water and street improvements, the City Council desires to have in place an equitable and adequate rate structure to finance the operation and maintenance of the water utility; and WHEREAS, the water infrastructure construction was a joint project with the Val Vue Sewer District and was initially financed with a Public Works Trust Fund Loan; and WHEREAS, the water lines meet Washington State Department of Health standards, including minimum water pipe diameter of eight inches; and WHEREAS, Duwamish water construction project costs totaled $397,543.74; and WHEREAS, the City has determined that there may be approximately 100 connections in the Duwamish service area, setting the initial water connection charge at $3,975.44; WHEREAS, the City Council desires that any new water connection should be assessed a proportionate connection charge, determined by the infrastructure construction cost and total number of potential connections; and NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, HEREBY ORDAINS AS FOLLOWS: Section 1. Duwamish Regular Water Connection Charges. A. Existing facilities in the Duwamish neighborhood which are connected to the water system on the effective date of this ordinance will not be assessed a water connection fee. B. Water connection for any new single-family connection in the Duwamish neighborhood will be assessed the following fees, which reflect a 1% increase per year in accordance with RCW 35.92.025: Until Charge January 31, 2006 .................. $3,975.44 January 31, 2007 .................. $4,015.19 January 31, 2008 .................. $4,055.34 January 31, 2009 .................. 54 095.89 January 31, 2010 .................. $4 136.84 January 31, 2011 .................. $4 178.20 January 31, 2012 .................. $4 219.98 January 31, 2013 .................. $4 262.17 January 31, 2014 .................. $4 304.79 January 31, 2015 .................. 54 347.83 Duwamish Water 815104 1 of 2 C. The applicable water connection charge shall be paid before the City gives any final building permit approval. Section 2. Service Area Boundaries. The Duwamish service area is bordered by the Duwamish River on the north and the east; East Marginal Way South on the west; and Interurban Avenue South on the south, as shown on Exhibit A. Section 3. Severability. If any section, subsection, paragraph, sentence, clause or phrase of this ordinance or its application to any person or situation should .be held to be invalid or unconstitutional for any reason by a court of competent jurisdiction, such invalidity or unconstitutionality shall not affect the validity or constitutionality of the remaining portions of this ordinance or its application to any other person or situation. Section 4. Effective Date. This ordinance or a summary thereof shall be published in the official newspaper of the City, and shall take effect and be in full force five days after passage and publication as provided by law. PASSED BY THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, at a Regular Meeting thereof this day of ,2004. ATTEST/AUTHENTICATED: Steven M. Mullet, Mayor Jane E. Cantu, C. MC, City Clerk Filed with the City Clerk: APPROVED AS TO FORM BY: Passed by the City Council: Published: l~..f[ective Date: Office of the City Attorney Ordinance Number: Duwamish Water 8/5104 2 of 2 Exhibit A COUNCIL AGENDA SYNOPSIS J '6 t I q p 1 3' i nitials ITEM NO. j kti 16 1 Meeting Date 1 Prepared by 1 Mayor's review Coundt review 1 �l -et 2 1 08/09/04 1 A D 1 A.a.G- I. i 1 t �;n b reos 1 1 1 1 1 I 1 1 1 I J ITEM :INFORMATION CAS NUMBER: 04-113 ORIGINAL AGENDA DATE: 8/9/04 AGENDA ITEM TITLE New Lease for Tourism Office CATEGORY E Discussion E Motion Resolution Ordinance p Bid Award Public Hearing Other Mtg Date 8/9/04 Meg Date 8/16/04 Mtg Date Mtg Date Mtg Date Mtg Date Mtg Date I SPONSOR Council E Mayor Adm Svcs DCD E Finance Fire Legal POR Police PIV SPONSOR'S Authorize Mayor to sign a new Lease Agreement for office space for the Tourism Office in SUMMARY the building known as Fairway Center Building A at 14220 Interurban Ave. S., Suite 130. REVIEWED BY COW Mtg. CA &P Cmte E F &S Cmte Transportation Cmte Utilities Cmte Arts Comm. Parks Comm. Planning Comm. DATE: 8/2/04 RECOMMENDATIONS: SPONSOR /ADMIN. Approve as presented COMMITTEE Same as Sponsor �OSTIMPACT /„FUNDSOURCE EXPENDITURE REQUIRED AMOUNT BUDGETED APPROPRIATION REQUIRED $0 for 2004 n/a n/a Fund Source: Comments: MTG DATtin ,'a =n r RECORDlOF-COUIVCIL ACTION:= .5:t AtaiiiAtti Kam: R= a ATTACHRIIENT.S 8/9/04 Staff report from A. Doerschel dated 7 /27/04 Staff report from K. Kertzman, dated 7/22/04 F&S Committee minutes dated 8/2/04 To: Finance & Safety Committee From: Alan R. Doerschel C~ Date: duly 27, 2004 Subject: New Lease Location for Tourism & Marketing ISSUE The City is considering moving to a new location at 1422;0 Interurban Avenue South. BACKGROUND / DISCUSSION See attached fax memorandum from Katherine Kertzman. RECOMMENDATION The City agrees to the new location and authorizes the Mayor to sign the lease. Seattle Southside Visitor Services 16400 Southcenter Parkway #209 Seattle, WA 98188 www. SeattleSouths[de.com Phone: 206-575-2489 Fax: 206-575-2529 Toll-free: 1-877-885-9452 Fax Memo Katherine Kertzman, Program To; Alan Doerschel Fi. em= Director Fax= 206.4331833 Date= July 22, 2004 Phone: 206-433-1838 Pages: 2 Re; New Office Space cc= Tukwila City Council [] uq]ent X For Review [] Please Comment [] Please Reply [] Please Recycle ,Comments: I am writing to ask the Council's support to move the Tukwila Tourism and Marketing Program, Seattle Southside Visitors Services, to a new office space known as Fairway Center Building A at 14220 Interurban Ave. South, Suite 130, in Tukwila. This move has the unanimous support of Tukwila's Lodging Tax Advisory Committee, SeaTac's Hotel Motel Advisory Committee and the Southwest King County Chamber of Commerce. Our current lease will conclude Jan. 31, 2005 and the building manager has expressed interest in moving us upstairs to the fourth floor in a space 200 sq. ft. smaller than our current office space. Since both office spaces on either side of us are now empty, the building manager believes it would be easier and has greater financial benefit to him to market all three offices as available contiguous space. This move would result in smaller space for us and we would incur all tenant improvement cost. Our recommendation for the move is justified by the following reasons: · Street frontage property, increased parking., building signage, · DOT directional signage before both I-5 and 1-405 exit ramps, · Increase space of 800 sq. ft. for approximately the same cost as our current [ease agreement, · FREE tenant improvements, · FREE rent for the first 5 months, · Ease of collaboration with the Chamber of Commerce as we would once again be neighbors and · Should another party lease our current office space before Feb. 1,2005, we would realize a saving of $2,650 for each month leased. As you can see, the building owners are very motivated and have offered us a number of excellent incentives. Our anticipated move in date is Sept. 1,2004. I think this is an exciting opportunity. It will benefit the community at large by increased visibility and access to our services and better support marketing our program as a freestanding "Visitor Center". Thank you for your support. Sincerely, Katherine Kertzman Finance and Safety Committee August 2, 2004 Present: Dave Fenton, Chair; Joan Hernandez, Dennis Robertson Alan Doerschel, Lucy Lauterbach, Rhonda Berry; Katherine Kertzman ~1. Tourism and Marketing Lease Katherine had worked out a lease agreement in a new building. Her lease in the current building would be up at the end of the year, and the new location on Interurban offers a larger space and some tenant improvements as well as better signage that will make the business easier to locate. The new space will be in the Fairway Center Building across from Gallianos. They will also get free rent for 5 months. The space will cost $2625/month for 7 months after that. Essentially the City will pay the same for almost double the space Lodging uses now. They will join the Chamber of Commeme at the new location. Send new lease agreement to COW. 2. Kent and Tourism and Marketing Kent has proposed becoming a limited member of Seattle Southside Tourism. They were involved in both softball tournaments that are coming to Starfire, as they have ball fields that will be used. Instead of being a full member as Tukwila and Sea Tac are, they will instead contract with Tourism for advertising for specific events. Kent only has about six motels. They, like Tukwila and Sea Tac, will have their own Lodging Tax Advisory Bom'd. Dave congratulated Katherine on her successful marketing. Recommend interlocal agreement to COW. 3. Debt Policy Alan said the debt policy and the Planning model are related. He had included a copy of Kirkland's debt policy, which the Committee members were not impressed with. The City has $24 million available in remaining debt.capacity, but as Alan said, there's a difference between the legal limit capacity and the City's ability to pay the debt service. We currently pay $2.1 million in debt service. With at least Klickitat and TVS to pay for, the City could conceivably use almost all of its debt capacity. Joan and Dennis thought there were better debt policies that could be used as models, and they also thought the City would benefit from some financial training. They supported bringing in the same trainer used at AWC for a couple of two hour training sessions on finances. Reschedule. 4. LIDs LIDs can either be ownerqinitiated, or started by the City with those in the LID area having the ability to vote against the LID if60% &the property owners agree they don't want it. If the City were to LID Klickitat, it would take at least of year of education beforehand to make those paying understand the benefit. To do that, one. would need to know the cost and benefit of such an LID. Even before that, understanding the infrastructure needs would need to be agreed upon. For other large City projects, the City could try to get grants, and could get a Public Works Trust Fund Loan, which would be paid back by a development. Joan wanted the whole Council to understand the options for paying for the TVS proposal. Information. COUNCIL AGENDA SYNOPSIS o -a e Initiak ITEM NO. li 9., 1 Meeting Date I Prepared by 1 Mayor'r review 1 Council review I N' 2 j% I 08/09/04 1 AD 1 /i L( 1 .c„/ /w.fr 1 C, Isoa ITEM INFORMATION CAS NUMBER 04-114 !ORIGINAL AGENDA DATE: 8/9/04 AGENDA ITEM TITLE An Interlocal Agreement between the Seattle Southside Visitor Services and the City of Kent for Tourism Services CATEGORY Discussion Motion Resolution Ordinance Bid Award Public Hearing Other Mtg Date 8/9/04 Mtg Date 8/16/04 Mtg Date Mtg Date Mtg Date Mtg Date Mtg Date I SPONSOR Council Mayor Adm Svcs DCD Finance Fire Legal ParR Police PTV SPONSOR'S The Interlocal Agreement will authorize the Seattle Southside Visitor Services to provide SUMMARY Tourism and Marketing services to the City of Kent as an Associate Member. REVIEWED BY COW Mtg. CA &P Cmte F &S Cmte] Transportation Cmte Utilities Cmte Arts Comm. Parks Comm. Planning Comm. DATE: 8/2/04 RECOMMENDATIONS: SPONSOR /ADMIN. Approve as presented CoMMITrEE Same as Sponsor aCOS;VIM /FUND *SOURC EXPENDITURE REQUIRED AMOUNT BUDGETED APPROPRIATION REQUIRED n/a n/a n/a Fund Source: ADDITIONAL $100,000 WILL BE ADDED TO THE TOURISM BUDGET FOR 2005. Comments: fatb telI`_M' s RECORD OFaCOUNCILikehbN 4 h 4 11ATG;:DAtt iI _1 ATTACHMENTS 8/9/04 1 Staff report from A. Doerschel dated 7/27/04 1 Draft Interlocal Agreement F&S Committee minutes dated 8/2/04 1 1 1 I I To: Ma.vor & City Council From: Alan R. Doerschel (~ Date: July 27, 2004 Subject: Agreement with City of Kent for Tourism Services ISSUE The City of Kent has proposed to be a limited member of Seattle Southside Tourism, BACKGROUND City of Kent has participated in two of our more successful endeavors - The Current Western States Softball Championships and the 2006 World Championships. They would like to join our group as an Associate member. DISCUSSION See proposed revised budget and interlocal agreement. RECOMMENDATION Approve the signing of the agreement. INTERLOCAL AGREEMENT FOR TOURISM AND MARKETING SERVICES BETWEEN SEATTLE SOUTHSIDE VISIOTR SERVICES AN D CITY OF KENT This Interlocal Agreement, made and entered i'nto this ., 2004, by and between the Seattle Southside Visitor Services, a tourism marketing program offered by the cities of Tukwila and SeaTac, hereinafter called SSVS and the City of Kent, a municipal corporation, hereinafter called Kent. RECITALS WHEREAS Kent desires to purchase professional tourism & marketing services for the purpose of increasing awareness of Kent and the surrounding area as a tourist destination; WHEREAS, SSVS is willing to expand the scope of its existing tourism and marketing services to include Kent; WHEREAS, it is agreec that the most desirable arrangement for conducting this operation is an Interlocal Agreement; NOW THEREFORE, for the reasons recited above, and in consideration of the mutual covenants contained in this agreement, the parties agree as follows: SECTION ONE. SCOPE AND DESCRIPTION Pursuant to Chapter 39.34 RCW, SSVS agrees to jointly provide Tourism and Marketing services for the combined cities beginning 1, 2004. This Interlocal Agreement shall be conducted under the program title of Seattle's Southside Visitor Services (SSVS) from a place of service located in the Building known as Fairway Center, Building A, 14220 Interurban Avenue South, Suite 130, City of Tukwila, County of King, and State of Washington. Services include but are not limited to providing comprehensive visitor information services to tourists and facilitating input from area tourism businesses for the purpose of developing, implementing and evaluating annual marketing and media plans. The marketing and media plans include budget information, implementation schedule and evaluation strategies. SSVS is designated as Administrator responsible for administering this joint agreement. SECTION TWO. CONTRIBUTIONS Program Expenses: Kent will contribute to program expenses for SSVS (including but not limited to overhead, salaries and benefits, rent, utilities, supplies, meetings, postage, travel and education, associations fees, phones, media campaign, special projects and other misc. expenses). The program expenses shall be based on a valuation derived from the final SSVS Tourism & Marketing Budget. Kent's contribution for the first year's (12 months) program expenses is valued at ONE HUNDRED THOUSAND DOLLARS ($100,000) to be paid to SSVS in twelve equal payments of EIGHT THOUSAND, THREE HUNDRED AND TRITY THREE 8/4/04 DRAFT Pa~e 2 of 4 DOLLARS AND THIRTY THREE CENTS ($8,333.33). KENT will pay SSVS at the beginning of each month beginning 2005. The annual program contribution for Kent for 2006 and subsequent years maybe adjusted for inflation and will be determined annually during the budget process but no less than the first year's expenses. K~nt will reimburse SSVS's program commitments for the duration of the Interlocal Agreement. Tukwila will invoice Kent monthly. Kent Specific Projects: Kent will implement Kent specific projects. Kent will manage and assume 100% financial responsibility for all Kent specific tourism projects, At such time as Kent and SSVS mutually agree, SSVS may advise or assist Kent regarding Kent specific projects (including sport tournament bids, etc,). SECTION THREE. CONDUCT OF INTERLOCAL AGREEMENT SSVS shall have following responsibilities as administrator of this Interlocal Agreement. SSVS will: (a) conduct, manage, operate, and arrange all the business affairs of the tourism and marketing services, hire other employees needed to carry on the business, determine the wages and make contracts with the employees, enter into other contracts in the name of and for the SSVS, and in general do anything ordinarily done by the manager of a business (b) facilitate the involvement of Kent tourism businesses into the existing SSVS Tourism Networking Committee and hereafter the committee will be known as Seattle's Southside Tourism Networking Committee for the purposes of creating awareness, support and participating in SSVS various marketing activities (c) regularly attend Kent's Lodging Tax Advisory Committee meeting (d) prepare and implement annually approved marketing and media plans (e) prepare and submit quarterly outcome reports to the Tukwila Lodging Tax Advisory Committee, SeaTac Hotel Motel Tax Advisory Committee and Kent Lodging Tax Advisory Committee (f) select subcontractors and vendors (g) ascertain creative production (typed layouts, type specs, mechanical assembly) Such authority may be increased or decreased from time to time on mutual written agreement of the cities. SECTION FOUR. RECORDS AND ACCOUNTING 8/4/04 DRAFT Page 3 of 4 SSVS shall maintain or cause to be maintained books of accounts concerning the total operation of the Interlocal Agreement, in which books shall be entered, fully and accurately, each transaction pertaining to the Interlocal Agreement. All the books will be open at any reasonable time for inspection and examination by Kent. The fiscal year of the lnterlocal Agreement shall commence on January 1 and close on December 31 of each year of operation. All accounting based on fiscal year figures shall be completed within 45 days after the close of the fiscal year. SECTION FIVE. TERM The effective date of the Interlocal Agreement shall be ,2005, and this Interlocal Agreement shall continue in effect for a period of three years from that date. On or before April 30, 2007 the cities will determine if this Interlocal Agreement may be continued for another period of three years, or for such time as the parties may then see fit. SECTION SIX. TERMINATION OF INTERLOCAL AGREEMENT It is agree(: that either SSVS or Kent may terminate this Interlocal Agreement with 60 days notice prior to the beginning of each new calendar year, and such termination shall be in writing. However, the party initiating the termination shall be responsible for paying 30% of any remaining office lease obligation and 30% of any remaining annual media buy. The agreement can be terminated at any time provided both parties are in agreement on the terms of such termination. SSVS maintains ownership of all capital assets at the termination of this Interlocal Agreement. SECTION SiX. HOLD HARMLESS OF INTERLOCAL AGREEMENT SSVS and Kent agree that each party shall defend, indemnify, and hold harmless the other party and its officers, officials, agents employees, and volunteers from any and all claims, injuries, actions, damages, losses or suites including reasonable attorney's fees, which arise out of, are connected with, or due to any errors, omissions or negligent acts in the performance of this agreement, except for each party's own comparative negligence. In witness whereof, the parties have executed this Interlocal Agreement at the day and year first above written. 8/4/04 DRAFT Page 4 of 4 CITY OF TUKWILA CITY OF KENT Steve Mullet, Mayor City Manager Attest: Attest: , City Clerk , City Clerk Approved as to Form: Approved as to Form: , City Attorney , City Attorney Proposed 2005 SSVS Tourism Budget Kent, SeaTac and Tukwila Effective January I, 2005 each City will contribute: Kent 100,000 SeaTac 370,000 Tukwila 370.000 TOTAL $840,000 SSVS Basle Operations: 2005 Basic Operations 400,000 Total Joint Operations $400,000 Special Projects: Media Buy - General 101.00.557.301.44.10 250,000 Special Projects 101.00.557.301.44.12 190,000 {Reprint Vocation planner) 90, 000 (Coupon Boole) 1 O, 000 tOther.such as direct malt, give away, package 90,000 morkeiin~, PR, SMERF, etc.} Total Special Projects $440,000 Total Budget $840,000 Each City will make an additional $20,000 available annually for bidding on tournaments. SSVS will use this fund as a cash flow account and will make every effort to pursue additional funding sources to replenish this account. The Seattle Southside Vacation Planner will be reprinted Jan. 2005. Gearing up for the addition of Kent to publication will require start up dollars in 2004 as follows: · $3,300 - 1 additional page of lodging facilities (15-18 hotel/motels) · $3,300 - 1 additional page added to Southside section · '$3,000 - Copy writing, editing, and photography throughout publication · $15,000 - new map (based on a quote from Brownine & Browning) $24,600.4dditionalpages must be added in multiples of 4 Plus 2 additional pages of Kent restaurant listings (to be, paid for by restaurateurs at $250 per listing, 15-18 per page) SSVS will work with City staffand the Kent Chamber of Commerce to obtain these listings. SSVS 2005 marketing tactics to be offered to Kent businesses (other than hotels, major tourist attractions and City venues) will require a minimal participation fee for example: · $600 per 2 page spread in the Restaurant book · $250 per coupon offer in Coupon book · $100 Website Coupon · $100 Website Listings Finance and Safety Committee August 2, 2004 Present: Dave Fenton: Chair; Joan Hernandez, Dennis Robertson Alan Doerschel, Lucy Lauterbach, Rhonda Berry; Katherine Kertzman 1. Tourism and Marketing Lease Katherine had worked out a lease agreement in a new building. Her lease in the current building would be up at the end of the year, and the new location on Interurban offers a larger space and some tenant improvements as well as better signage that will make the business easier to locate. The new space will be in the Fairway Center Building across from Gallianos. They will also get free rent for 5 months. The space will cost $2625/month for ? months after that. Essentially the City will pay the same for almost double the space Lodging uses now. They will join the Chamber of Commerce at the new location. Send new lease agreement to COW. ,/~. Kent and Tourism and Marketing Kent has proposed becoming a limited member of cattle Southside Tourism. They were involved in both softball tournaments that are coming to Starfire, as they have ball fields that will be used. Instead of being a full member as Tukwila and Sea Tac are, they will instead contract with Tourism for advertising for specific events. Kent only has about six motels. They, like Tukwila and Sea Tac, will have their own Lodging Tax Advisory Board. Dave congratulated Katherine on her successful marketing. Recommend interlocal agreement to COW. 3. Debt Policy Alan said the debt policy and the Planning model are related. He had included a copy of Kirkland's debt policy, which the Committee members were not impressed with. The City has $24 million available in remaining debt.capacity, but as Alan said, there's a difference between the legal limit capacity and the City's ability to pay the debt service. We currently pay $2.1 million in debt service. With 'at least Klickitat and TVS to pay for, the City could conceivably use almost all of its debt capacity. Joan and Dennis thought there were better debt policies that could be used as models, and they also thought the City would benefit from some financial training. They supported bringing in the same trainer used at AWC for a couple of two hour training sessions on finances. Reschedule. 4. LIDs LIDs can either be owner-initiated, or started by the City with those in the LID area having the ability to vote against the LID if 60% of the property owners agree they don't want it. If the City were to LID Klickitat, it would take at least of year of education beforehand to make those paying understand the benefit. To do that, one would need to know the cost and benefit of such an LID. Even before that, understanding the infrastructure needs would need to be agreed upon. For other large City projects, the City could try to get grants, and could get a Public Works Trust Fund Loan, which would be paid back by a development. Joan wanted the whole Council to understand the options for paying for the TVS proposal. Information. COUNCIL AGENDA SYNOPSIS l a._Y4s z Initials I7z;MN0. a (.a i I 1 Meeting Date 1 Pre by 1 Mayor's review 1 Council moiety 1 is w i` r2 I 08/09/04 I AD I ..w1.f/ %iY✓ f l I 7908„ 1 I 1 1 1 5. at. I J 1 1 I ITEM INFORMATION' CAS NUMBER: 04-115 I ORIGINAL AGENDA DATE: 7/19/04 AGENDA ITEM TITLE Northfield Carwash Purchase (Exchange) Property location: 14224 Pacific Highway S. CATEGORY Discussion Motion Resolution Ordinance Bid Award Public Hearing Other Mtg Date 8/9/04 Mtg Date 8/16/04 Mtg Date Mtg Date Mtg Date Mtg Date Mt Date SPONSOR Council Mayor Adm Svcs DCD Finance Fire Legal POR. Police PW/ SPONSOR'S Authorize the Mayor to sign the Northfield Carwash Purchase Agreement. The agreement SUMMARY includes purchase of the Northfield property for approximately $880,000 ($830,000 purchase price plus approximately $S0,000 in other costs). Also the Newporter property, owned by the City, will be transferred to the seller. REVIEWED BY COW Mtg p CA &P Cmte F &S Cmte Transportation Cmte Utilities Cmte Arts Comm. Parks Comm. Planning Comm. DATE: 8/2/04 RECOMMENDATIONS: SPONSOR /ADMIN. Review draft agreement and Northfield's comments. CoMMITrEE Forward to 7/19 COW. (COST IMPACT /aFUND SOURCE;. EXPENDITURE REQUIRED AMOUNT BUDGETED APPROPRIATION REQUIRED $880,000 $880,000 $n /a Fund Source: WILL BE EVENTUALLY PAID BACK WHEN TUKWILA VILLAGE PHASE I IS BEGUN. Comments: F MTG DaTE 4V k: ECORD OF.CObNCILfA &T.IOici L_ I 7/19/04 Removed from COW agenda. I 11/1176 DATE_ 4:> s i .:ATTACHMENTS 8/09/04 Staff report dated July 29, 2004 Proposed changes to the draft agreement from Northfield's attorney F&S committee minutes dated 8/2/04 To: Mayor & Finance & Safety Committee From: Alan R. Doerschel ~ ~)J~ Date: July 29, 2004 Subject: Northfield Car Wash Attached for your review is the latest draft of the Northfield Car Wash agreement. Most of the concerns expressed by the Committee have been addressed with new language. The additional costs, which will be borne by the City, are: Title Insurance in Sections 7 & 8 $3,500 Financing Charges by Frontier Bank 4,000 Environmental Report on Northfield Site 15,000 Environmental Report on Newporter 3,000 Real Estate Transfer Tax {net) 17,000 Other Closing Costs (contingencies) 7,500 Estimated Total $50,000 Andy Berg and his attorney are reviewing this revised draft. We plan to move the final draft to the Council meeting of August 9th with fiscal authority for the Mayor to sign at the August 16, 2004 meeting. From: "Kokie" <kadams@purcelladams.com> To: "'Shelley Kerslake'" <tukatty@ci.tukwila.wa.us> Date: 8/4/04 11:39AM Subject: RE: Northfield agreement August2,2004 Sent via Email and First Class Mail Shelley Kerslake City Attorney for Tukwila 6200 Southcenter Blvd. Tukwila, WA 98188 Re: Property located at 14224 Pacific Highway South, Tukwila ("Northfield Property") Dear Shelley: I received an(~ reviewed the latest draft of the Property Exchange Agreement and offer the following responses. Paragraph 4: the fifteen month time period is essential to my client. Mr. Berg's contractor has determined that fifteen months is a minimum period to plan, permit and construct the new carwash. Please note that, while it is true that these negotiations have been going on for a long time, Mr. Berg cannot begin the permitting and construction process until the agreement has been signed. During the time the new car wash is being constructe(~ Mr. Berg will need the income from the existing car wash to meet his bank and other obligations. As you may recall, the original plan was for the City to construct the new car wash and then complete the exchange, maintaining Mr. Berg's income stream throughout the process. Mr. Berg will agree to a maximum of fifteen months and, if the new car wash is finished ahead of schedule, Mr. Berg will vacate within ten (10) days of the completion of the new car wash. Alternatively, if the City requires the property sooner, the City could pay Mr. Berg an amount equal to his annualized average net monthly income for each of the two additional months. This provision gives Mr. Berg ~he time he needs and provides an incentive for both Mr. Berg and the City to cooperate in issuance of the permits. It also provides the City with maximum flexibility in that it can "buy" Mr. Berg out of the last two months. Paragraph 5: Mr. Berg will agree to the following payment schedule: $230,000 at closing, $420,000 upon issuance of the construction permit and $180,000 90 days after the commencement of construction. This payment structure accommodates my client's Frontier loan and the initial permit fees and contractor costs. Paragraph 6: this paragraph needs to reflect the fifteen month timetable. Also, please add to the line that begins "[U]pon delivery of such title," A .~'~)~e~:~he - RE 'Northfi~i~aag~emem ........................... 15Age";;I the following phrase: "provided that, any monetary liens may be paid from the City's cash payment." Paragraph 9(b); the amount of the bank fees ne~ds to reflect the actual amount to be charged by the Bank for the substitution of collateral. Mr. Berg has requested the Bank provide him with a figure. Paragraph 12(b): in the third paragraph, please change line two to rea: In the event such fill is unacceptable as fill material for use on the City Properly in the possession of Northfield for a car wash, at the time of development or otherwise inappropriate due to contamination, the City shall pay for any removal or other disposition. This determination will be made by a third party consultant, approved and 3aid by the City. With these changes, we can, hopefully, come to a quick execution of this document so Mr, Berg can begin the process of constructing the new car wash. I look forward to hearing from you at your early convenience. Very truly yours, Purcell & Adams, PLLC Kokie E. Adams cc: Andy Berg ..... Original Message ..... From: Shelley Kerslake [mailto:tukatty@ci.tukwila.wa.us] Sent: Thursday, July 29, 2004 11:31 AM To: Kadams@purcelladams.com Cc: Northfieldcw@aol.com Subject: Northfield agreement Here are the changes that the City Council requested. Please review and let me know your thoughts. Shelley Kerslake Kenyon Disend, PLLC 11 Front Street South Issaquah, WA 98027 425-392-7090 CC; "Doug" <Doug@PurcellAdams,com>, <northfieldcw@aoLcom> PROPERTY EXCHANGE AGREEMENT THIS AGREEMENT ("Agreement") is made and entered into as of this day of , 2004 by and between the City of Tukwila, a municipal corporation; ("City"), and Northfield Ventures, LLC ('~orthfield"). RECITALS A. The City is the owner of certain real property commonly known as 14840 Pacific Highway South in the City of Tukwila, King County, Washington, legally described in Exhibit A attached hereto and incorporated herein by this reference ("City Property"). B. Northfield is the owner of certain real property commonly known as 14224 Pacific Highway South in the City of Tukwila, King County, Washington, legally described in Exhibit B attached hereto and incorporated herein by this reference ("Northfield Property"). C. The City ha_sd determined that the Northfield Property is necessary to its development of Tukwila Village, a proiecl that has been dete~nined to be a public p~oi eet ...........~o~,~ ,,,L ~ w~ t,,,,r,~o~.- ...... Under threat of condemnation pursuant to RCW 81.112, the City and Northfield agree that Northfield will deed the Northfield Property to the City in exchange for the City Property and payment of additional funds~ ·the value of the City Property and the additional funds constituting -just compensation for the Northfield Property. AGREEMENT The parties hereto agree as follows: 1. Recitals Incorporated. The above recitals are incorporated herein as part of the substantive terms of this Agreement. 2. Property Exchange and Consideration. Under threat of condemnation, Northfield agrees to convey the Northfield Property to the City by Statutory Warranty Deed upon o_Closing, as ~-~'~ kcrem ~ ....... ~ ~set forth in Section i3 of this Agreement. As just compensation for the Northfield Property and in consideration for Northfield's agreement to establish a new ear wash facility in Tukwila, the City agrees to convey the City Property to Northfield by Statutory Warranty Deed at Closing and shall pay Northfield in accordance with Section 5 of this Agreement.r~gl~ C:\TEMPkNorthfiledfmalredlined72304.doc~: 150 ..... ~; Page 1 of 16 3. Tax Consequ~ncos. N~i~r p~y m~s any representations or w~antios, ~xpmss or impliod, r~garding th~ a~al tax cons~quonc~s of tho prop~ oxch~g~. 4. Operation of Existing C~ Ww~h. Tho Ci~ and No~hfi~ld intond to allow No~hfiold to continu~ operating tho ~xisting cg w~h facility ("Existing Car W~h") located upon th~ No~hfi~ld P_prop~y at its sol~ risk for a period up to, but not to ~xce~d, [ flfirteen fi'Ree~vmonths ~om the execution of this AgreementC ...... ~. This period may be extended by mutual a~ement of the pa~ies. No.field will indemi~ ~e City ~ described in ' ~ __ Sec~oO~.~.~v.. 10~ hereo[ The CiW ~d No.field ac~owledge that ' - ......... ~ valuable fi~t ~d is the right ~anted to No~hfield by this sSechoh.~..=..v- is a consistent wi~ providing just compensation for the No~hfield Prope~. 5. Payments. (a) $230,00~ shall be paid to Northfield by the CiWupon Closing. e*nn nan aid (b) $300,000~ .... , .... shall be ~ to Northfield by the City upon issnance of the construction permit for a new c~ wash facihW to be built by Northfield on the City Property. (c) $300,000¢.~,~e*nn nan shall be paid to Noahfield b~ ~e City 90 days aRer commencement of consNuction by No~hfield of the new car w~h Pacilitv on the CiW Prope~. 6. Time for Developmem of New Car Wash. The Ci~ ~d No~hfield intend to ~sfer the City Prope~y to No~hfield as a location for ~e development ~d construction of a new car wash facility (~e '~ew C~ W~h") wi~in a period not to exceed thirteenfi~een months from the date of execution of ~is Aa~eement. h the event ~at the New Car W~h is not under consmction by such date, No.field shall deliver title to the City PropeNy to the City, ~ee ~d cle~ of ~y liens or encmbr~ces ~sing since Closin~ ~d No.field shall vacate the City Prope~. Upon such delive~ of title, No~hfield shall be paid $945,000 in cash, less mW monies p~d by the City aRer Closing. Shoukl ~e City Properly not be delivered to the City free and clear of ~y liens or C:XTEMP~o~file~malredlined72304.doc ~: ,~i..' Page 2 of 161514 encmnbrances, no payment will be due Northfield. and..:c ,~.^..v r-;,...~.¥ ~.,.o ....... ..~+ s~, ....... v.-.-:a ,h~..~ constitute, with prior payments and other consideration described herein, just compensation for the Northfield Property. 76. Condition of Title - City Property. (a) City Property Title Commitment. The City shall, as soon as practicable, cause to be furnished to Northfield a commitment for an owner"s standard coverage policy of title insurance ("City Property Title Commitment") issued through a title company mutually approved by Northfield and the City ("Title Company"), describing the City Property, listing Northfield as the prospective named insured~ and showing Eight Hundred Thirty Thousand Dollars ($830,000.00) as the policy amount. (b) Review of City Property Title Commitment. Northfield shall have until ten (10) days after receipt of the City Property Title Commitment in which to notify City of any objections Northfield has to any matters shown or referred to in the City Property Title Commitment. Except as expressly set forth herein, any exceptions or other items which are set forth in the City Property Title Commitment to which Northfield does not object within the 10-day review period shall be deemed to be permitted exceptions ("Northfield Permitted Exceptions"). Building, zoning, subdivision; or use restrictions applicable to the City Property shall be considered Northfield Permitted Exceptions. With regard to items to which Northfield objects, the following shall apply: £i) City shall have ten (10) days from receipt of Northfield's objections to notify Northfield whether it agrees to remove the unpermitted exceptions set forth in Northfield' s _o©bj eetions; (ii) If City does not agree to remove such unpermitted exceptions, Northfield may, within ten (10) days, -waive and withdraw its objections. If the City agrees to remove such objections, the City shall use all reasonable efforts to cure such objections by the date of_C_elosing. If the City is unable to cure such objections by the date of Celosing, Northfield may, as Northfield's sole remedy, waive the objections not cured and proceed to C__elosing or terminate this Agreement by notice to the City. 8_g.- Condition of Title - Northfield Property. C:\TEMP'uNorthfiledfinalredlined72304.docG:\Ci~; Attc:~..~.;\She. llc.;\?~.c:'t, hff!zdfina!r¢~l;.ne~7220~. ! 5 O ~..d.':e G:hAPP S\OI~.~Tu!:w~!a\Ccntra.~t\?.~cr t~l:d*malrcd!!n*d7150~ .dccC:\W~OW S\TEMP\ffna! Page 3 of 161~14 (a) Northfield Property Title Commitment. Northfield shall, at City's expense vv, pursuant to Section 13(b)(ii)(B), practicable, cause to be fumished to City ~ commi~ent for an ownerZ's standard coverage policy of title insurance ("No.field Prope~ Title Commitment") issued t~ough the Title Company, describing ~e No~hfield Propemy, listing CiW as the prospective named insured~ ~d showing One Million Fo~ H~dred Thousand DoIlms ($1,400,000.00) as the policy amount. (b) Review of No~hfield Propemv Title Co~i~ent. CiW shall have until ten (10) days a~er receipt of the Noghfield Prope~y Title Co~itment in which to noti~ Noahfield of ~y objections CiW has to ~y matters sho~ or refeged to in the No~hfield Prope~y Title Commitment._ Except as expressly set fo~h herein, ~y exceptions or other items which ~e set fo~h in the No~hfield Prope~ Title Co~ent to which CiW does not object within the 10-day review period shall be deemed to be pe~itted exceptions ("CiW Pe~itted Exceptions"). Building, zoning, subdivision or use resections applicable to the No~hfield Prope~ shall be considered City Pe~itted Exc~tions. No~hfield's existing Frontier Ba~ lien shall not be considered a CiW Pe~iRed _ v~-~-~v-. Agg(b) shall govern ~e removal thereof. With reg~d Exception and Section ....... ~ v to items to which City objects, the following shall apply: ~i) Northfield shall have ten (10) days ~om receipt of City's objections notify the CiW whether it a~ees to remove ~e ~pe~i~ed exceptions set fo~h in the City's ~Objections; and iii) If No.field does not a~ee to remove such ~pe~itted exceptions, City may, within ten (10) days,-waive ~d withdraw its objections. If Noghfield a~ees to remove such objections. No~hfield shall use all reasonable effo~s to c~e such objections by ~e date of ~elosing. gNo~field is ~able to cure such objections by ~e date of closing, City may, objections not cured ~d proceed to closing or tek.ate ~is Ageement by notice No~hfield. ~g. Conditions Precedent. The p~ies' obligations under t~s A~eement ~d the effectiveness of this A~eement shall be subject to the following conditions precedent: (a) Mspection Contingency. This A~eement is conditioned on ~ inspection repo~ of ~e City Prope~. ~ithin ~enty (20) days of the mutual acceptance of this A~eement, No~hfield shall ~ge an inspection of ~e CiW Prope~. The inspection repog shall 'be prepared by a professional inspector of ~o~hfield's~ choice approved by thc City ~d at No~hfield's expense. Noghfield may disapprove the inspection repo~ on the basis of any condition identified in the inspection repo~ ~at the inspector C:kTE~o~ledfinalre~ined72304.doe~:~C!z' 1504.doc~ Page 4 o f 1 recommends be corrected. This contingency shall conclusively be deemed satisfied unless, within twenty (20) days after execution hereof, City receives from Northfield notice of disapproval identifying the condition(s) contained in the inspection report to which Nortbfield ~3~v~-objects, and a copy of the inspection report. If City does not agree ~n writing to correct the condition(s) identified by Northfield, then within three ~ days thereafter Northfield ~::2,'c:' may elect to terminate this Agreement, in which event this Agreement shall be null and void and of no further force and effect. City hereby grants to Northfield and its agents, employees, and independent contractors right of entry onto the City Property to make such soil tests and such other investigation as Northfield may deem reasonably necessary; provided, however, that such investigation shall not cause any damage to the City Property. Northfield shall hold City harmless from and against any and all liabilities incurred by Northfield by reason of damage to persons or property arising from the negligent or intentional acts or omissions of Northfield or its agents on the City Property. Furthermore, Northfield shall not permit any lien to be placed on the City Property by any person hired by Northfield for the purpose of examining, inspecting, or surveying the City Property. _If any such lien or other charge of any kind is placed on the City Property, Northfield shall promptly discharge it by paying the amount claimed or posting a bond in lieu of the lien. (b) Financing Contingency. Northfield currently holds title to the Northfield Property subject to an underlying Frontier Bank loan secured by a first deed of trust. This Agreement is contingent upon Frontier Bank's acceptance of the City Property as substitute collateral on that above-mentioned loan. City shall be responsible for payment of any fees charged, not to exceed $4000.00, to Northfield by Frontier Bank as a result of said substitution of collateral. Furthermore, if Frontier Bank requires a standard lender's policy of title insurance, the City shall pay costs associated with obtaining that policy. In the event Frontier Bank is unwilling to accept the substitute collateral, this Agreement shall be null and void and of no further force and effect. 109. Indemnity. During the period of time after Closing, until b ......... Northfield ceases operations of the Existing Car Wash, Northfield covenants and agrees to indemnify, defend, and hold harmless the City, its officers, agents~ and employees from and against any and all claims, actions, damages, liabilities, costs and expenses, including reasonable attorneys'z fees in connection with or occasioned, in whole or in part~ by any act or omission arising from or out of Northfield's operation of the Existing Car Wash. With respect to the operation of the Existing Car wWash, and as to claims against the City, its officers, agents, and employees, Northfield waives its immunity under Title 51 of the Revised Code of Washington for injuries to its. employees and agrees that the Section. p~,~.~v.. obligation to indemnify, defend~ and hold harmless provided for in this ....... h extends to any claim brought by or on behalf of any employee of Northfield. C:\TEMPXNorthfiledfinalredlined72304.docu: ,vi..' Page 5 of 16!5!'! The parties mutually negotiated this waiver._ This indemnity provision shall not apply in the event any acts or omissions of the City were the sole cause of any such damage or injury. _To the extent any of the damages referenced herein were caused by or resulted from the concurrent negligence of the City, its agents~ or employees and Northfield, its officers, agents, and employees, this obligation to indemnify, defend and hold harmless is valid and enforceable only to the extem of the negligence of Northfield, its officers, agents, and employees. 1 10. Disclosure. (a) City Property Disclosure. Northfield acknowledges that, except as expressly set forth in this Agreement, neither City nor any agent or representative or purported agent or representative of City have-has made, and City is not liable for or bound in any manner by, express or implied warranties, guaranties, promises, statements, inducements, representations, or information pertaining to the City Property or any part thereof, the physical condition, title, size, zoning, thereof, the uses which can be made of the same or the fitness of any part thereof for any particular purpose of any other matter or thing with respect thereto, except that City warrants that the City Property is properly zoned for use as a car wash facility. Without limiting the foregoing, Northfield acknowledges and agrees that City is not liable for or bound by (and Northfield has not relied upon) any oral or written statements, representations, or any other information respecting the City Property or any portion thereof furnished by City or any other broker, employee, agent, consultant, or other person representing or purportedly representing City. (b) Northfield Property Disclosure. City acknowledges that, except as expressly set forth in this Agreement, neither Northfield nor any agent or representative or purported agent or representative of Northfield has made, and Northfield is not liable for or bound in any manner by~ express or implied warranties, guaranties, promises, statements, inducements, representations, or information pertaining to the Northfield Property or any part thereof, the physical condition, title, size, zoning thereof, the uses which can be made of the same or the fitness of any part thereof for any particular purpose or any other matter or thing with respect thereto. Without limiting the foregoing, City acknowledges and agrees that Northfield is not liable for or bound by (and City has not relied upon) any oral or written statements, representations, or any other information respecting the Northfield Property or any portion thereof furnished by Northfield or any other broker, employee, agent, consultant or other person representing or purportedly representing Northfield. l_2J~. Hazardous Materials. C:\TEMPkNor thfiledfinalredlined72304.doc ~: Page 6 of 16 (a) Northfield Property Hazardous Materials. Northfield hereby represents and warrants to City that the Northfield Property is not and has not been, during the period of Northfield's Oo_wnership of the Northfield pP_roperty, used for the storage or disposal of any toxic or hazardous waste, material, or substance, except to the extent of substances used in the ordinary course of a car wash business, and that no known hazardous materials or substances exist on the Northfield Property._ Northfield hereby agrees to indemnify and hold City harmless from any and all loss, damage, liability~ and expense (including reasonable consultant22s and attorneys' fees) incurred by City arising out of or related to Northfield"s breach of this Sectionparr.~'aph. _Northfield further agrees to submit copies of all materials currently in its possession regarding any testing of the Northfield Property for hazardous materials to City. Additionally, Northfield shall, at City's option and expense and within twenty: -one (21) days of the signing of this Agreement, provide the City with a Level One Environmental Report. If such report shows any reasonable possibility of environmental contamination, Northfield shall, at City's option and expense and within forty-two (42) days of the signing of this Agreement, provide City with a Level Two Environmental Report. If the Level Two report shows any reasonable possibility of environmental contamination, all of the parties agree that City may terminate this Agreement with no penalty by written notice to all parties not later than fifty-seven (57) days after signing the Agreement. (b) City Property Hazardous Materials. Except as referenced in any reports provided by City, City hereby represents and warrants to Northfield that the City Property is not and has not been (during the period of City's ownership of the City Property) used for the storage or disposal of any toxic or hazardous waste,-material~ or substance, and no known hazardous -materials or substances exist on the City Property. City hereby agrees to indemnify and hold Northfield harmless from any and all loss, damage, liability~ and expense (including reasonable consultant's and attorneys-- fees) incurred by Northfield arising out of or related to City's breach of this_ v~,,.~.~.e..Sectlon. City further agrees to submit copies of all materials currently in itshis possession regarding any testing of the City Property for hazardous materials. Such materials shall be supplied to ~oe, th Northfield ~immediately upon signing this Aagreement. City shall, at City's expense and within twenty_--one (21) days of the signing of this Agreement, provide Northfield with a Level One Environmental Report. If such report shows any reasonable possibility of environmental contamination, City shall, at City's expense and within forty-two (42) days of the signing of this Agreement, provide Northfield with a Level Two Environmental Report. If the Level Two report shows any reasonable possibility of environmental contamination., all of the parties agree that Northfield may terminate this Agreement with no penalty by written notice to all parties not later than fifty-seven (57) days after signing the Agreement. G:\City AttorneyXShelley\Northfiledfinalredlined72304.doc ............ :x:-::!.a ,v~n.r::~. a~ ~.~:.c~.:na.rz~,'2n~, Page 7 of 7_~4 Additionally, City acknowledges that City has allowed contractors working on the City right-of-way adjacent to the City Property to fill the City Property with material from offsite. In the event such fill is unacceptable as fill material for a car wash, at the time of deve[opmem, or otherwise hazm'dous~napprcpfia:e due to contamination for use on the City Property in the possession of Northfield, the City shall pay for any necessary and appropriate removal or other disposition. This determination will be made by a third party consultant, approved by the City. 13g~ Closing. (a) Time and Place for Closing. Within thirty (30) days after the date that all of the conditions precedent set forth in Sections 99 above have been satisfied (or such other date as the parties may agree), the closing ("Closing") shall take place. (b) Events at Closing., (i) At Closing, City shall deliver to Northfield the following: (A) A Statutory Warranty Deed duly executed and acknowledged by City conveying the City Property to Northfield~: (B) A standard coverage policy of Title Insurance issued by the Title Company conforming to the reqmrements of Section 8 above insuring Northfield's title in the amount of Eight Hundred Thirty Thousand Dollars ($830,000.00) and containing no exceptions other than the Northfield Permitted Exceptions; and: (C) A non-Foreign Affidavit duly executed and acknowledged by City. (ii) At Closing, Northfield shall deliver to City the following: (A) A Statutory Warranty Deed duly executed and acknowledged by Northfield conveying the Northfield Property to City;~ (B) A standard coverage policy of Title Insurance issued by the Title Company conforming to the requirements of Section 89 above insuring City's title in the amount of One Million Four Hundred Thousand Dollars ($1,400,000.00) and containing no exceptions other than the City Permitted Exceptionsi: and (C) A non-Foreign Affidavit duly executed and acknowledged by Northfield. (c). Events After Closings. (&i_) Within thirteen 5P;c.cn months of the date of execution of this Aagreement, -Northfield shall cease operation of the Existing Car Wash and vacate the Northfield Property_. (g~ Pawnents will be made pursuant to the schedule set forth in Section 5 of th' Agreement tt .... ~,~ i~ ....... ~,.~ ...... -.,,~,: ...... :+ ~^~ ~ XT .... r'~ xx~oh ~,~ (~1_) Expenses. The expenses associated with the above transactions shall be allocated among the parties as follows: (i) Escrow Fees. City shall pay all escrow fees charged by the Title Company. (ii) Attorneys' Fees. Subject to Section 16 below, each party shall pay its own attorneys' fees. (iii) Costs. Except as otherwise excluded or limited elsewhere herein, City shall pay for all transaction costs related to thc property exchange, including but not limited to, premiums for the Policies of Title Insurance, Real Estate Excise Taxes, and the recording fees for the Statutory Warranty Deeds._ City shall pay for all such costs t ...... a - --.v*--~ .ogether w~th the environmental costs. (d_e) Prorations. Real estate taxes, installments of current year special assessments (if and to the oxtent they are approved exceptions), utility charges, and other operating income ~ .......... ~, ...................... , .............................. t~ ..... ~ or expenses applicable to the City Property and the Northfield Property shall be prorated up to and including the date of oClosing, based upon the ac~tual days involved. To the extent that the amounts of such charges, expenses, and income referred to in this Section are unavailable at the Closing date or in the event of prorations made on the basis of C:\TEMP~!or thfiledfinalredlined72304.docG:~,CiW Page 9 of 16 erroneous infmxnation or clerical errors, a readjustment of these items shall be made within thirty (30) days after Closing or as soon as practical after discovery of any erroneous information or clerical error. AfterClosing, City shall be responsible for all expenses related to the Northfield Property and Northfield shall be responsible for all expenses related to the City Property; provided that, Northfield shall be responsible for all expenses associated with the operation of the Existing Car Wash._ City and Northfield shall, on or before Closing, furnish each other and the Title Company with all information necessary to compute the prorations provided for in this Section. l_4g. Signage. City agrees that it shall issue a permit to Northfield, at Northfield's option, to display a sign on the west side of the premises stating that the Northfield car wash has moved to a new location for a period of 30 days after close of the Existing Car Wash. This 30thlrty day period may be extended by mutual agreement. The maximum sign area allowed is 50 square feet per side and a total of 100 square feet for both sides. The sign must be set back from property lines a distance at least equal to the overall height of the sign. The sign shall meet all other sign code regulations. The signage shall be constructed, maintained, and removed at Northfield's expense. 154. Default. Any party hereto shall be in default hereunder if such party shall fail to comply with any term, covenant, agreement, or obligation on its part required, within the time limits and in the manner required in this Agreement. In the event of a default hereunder, the non-defaulting party or parties shall be entitled to pursue all remedies available at law or m equity, including, but not limited to, specific performance. 165. Attorneys" Fees. If it shall be necessary for any party hereto to employ an attorney to enforce its rights pursuant to this Agreement because of the default of another party, the non-defanlting party shall be entitled to recover from the defaulting party or parties all costs, including reasonable attorneys' fees, incurred in connection with such default. 176. Brokerage Commission. Each party hereto represents and warrants that it has not dealt with or engaged any real estate broker in connection with the above transactions. Each party agrees to indemnify, defend, and hold harmless the other parties t~om and against any claims or liability attributable to such party's breach of the foregoing representation and warranty. 18~t. Notices. All notices, demands, requests~ and other communications required or permitted hereunder shall be in writing and shall be deemed delivered on the earlier of (i) three (3) days after posting of registered or certified mail, addressed to the addressee at its address set forth below or at such other address as such party may have specified theretofore by notice delivered in accordance with this Section, or (ii) actual receipt by the addressee, as follows: C:\TEMP\Northfiledfinalredlined72304.docG:\CL':; ~-5~.d~cG9~PP~\~p~u!rwi~a~£`zn~act\?~rtk~ed~na~rcd~n~7~5~`~.d~c~:~!~'rD~W~\TEMP~na~ rcd!!ncd Northfi!ed Exc!mngz 7 !5 9~. .dccC:~c, cu.'v~nt: and S~,",ingz~Zc,!dc~L~za! Se~ngz~Zem"v,era,9· !nternct Filez~LK! a. ~!cXkfic!dPrcpawdExchang:96 ! ~9~.2.dcc Page 10 of 16!61'! TO CITY< City of Tukwila Attn: City Clerk 6300 Southcenter Blvd. Tukwila, WA 98188 With a copy to: Ms. Shelley Kerslake, Esq. Kenyon Disend, PLLC 11 Front St. So. Issaquah, WA 98027 TO NOKTHFIELD: P.O. Box 68016 Seattle, WA 98168 With a copy to: Kokie Adams Purcell &_Adams 4211 Alderwood Mall Blvd. Suite 202 Lynnwood, WA 98036 198. Goveming Law; Venue. The laws of the State of Washington shall govern the validity, enforcement, and interpretation of this Agreement. Any dispute or cause of action under this Agreement shall be resolved ~n a,,,,~.., ..... cf jut ............. King County Superior Court, State of Washington. 204-9. Mutual Agreement. Both parties agree that this Agreement has been mutually negotiated and drafted with the advice of legal counsel and that in the event of a dispute arimng out of this Agreement, neither party shall be construed as the drafting party. 211). Integration; Modification; Waiver. This Agreement constitutes the complete and final expression of the agreement of the parties witch respect to the herein described transactions, and supersedes all previous contracts, agreements, and understandings of the parties, either oral or written. This Agreement cannot be modified, or any of the terms C:\TEMP\Northfiledfinalredlined72304.doc ~:: ,vi. ,' Page 11 of 16 hereof waived, except by an instrument in writing (referring specifically to this Agreement) executed by the party agmnst whom enforcement of the modification or waiver ~s sought. 22_~. Counterpart' Execution. This Agreement may be executed in several counterparts, each of which shall be fully effective as an original and all of which together shall constitute one and the same instrument. 23_~. Invalid Provisions. If any one or more of the provisions of this Agreement, or the applicability of any such provision to a specific situation, shall be held invalid or unenforceable, such prowsion shall be modified to the minimum extent necessary to make it or its application valid and enforceable, and the validity and enforceability of all other provisions of this Agreement and all other applications of any such provision shall not be affected thereby. 24g. Binding Effect. This Agreement shall be binding upon and inure to the benefit of each party hereto, and their respective heirs, personal representatives, successors~ and 254 Assignment xT ............ ;~. ,~.^:...:~,~,~ ~.~:~n,; ..... :~, .... ,~ :~ ,~.;~ ^ ...... · No patty may assign its rights hereunder without the written consent of the other parties, which consent nhall not be unreasonably withheld. For purposes of this Agreement, a party's refusal to consent to a proposed assignment shall be deemed reasonable if such assi..~nment would cause any of the above transactions not to qualify as exchanges pursuant to Section 1031 of the Internal Revenue Code, as amended. 2_65. CareofPropertyPendingCessationofCarWashFacilit¥C!.%:.ng. From the date of this Agreement until the cessation of operation as a car washC!osk:g, Northfield shall continue routine maintenance of the Northfield Property, but shall not be obligated to make significant capital expenditures or improvements (except as specifically required hereunder). 27{/. Restrictive Covenant. City and its heirs, personal representatives, successors~ and assigns agree that a restrictive covenant, in the form attached as Exhibit "__~C" shall be recorded upon title to the Northfield pProperty after .Closing prohibiting any car wash, or related style or type ofbusiness~ to be operated on the Northfield pProperty. C:\TEMPhNorthfiledfinalredlined72304.docG:\C~?l AttcmeTX,Ske!!cy~!exkS!e&qna~c~![ne~7220~. dc, cF :x~,PP $\CIX.ST'c2vr,5!ax,Cvnxa c tx~L~ r ~.,~! e dfir~a!r e ~!~ne~7 150~ .~zcG:~.PPS~CP.n,Tul:w~!a~,Cerz:'act~Ne~le~Sna!re~!~ne~7 ! 50~ .~ccC md!incd Ncrthfilcd Exchange 7 !5 0~.dccC:~ocm~cnt: and SeX[ng:LKc!dcxLcca! S:~ng:~,Tempcm~' Page 12 of 16!57~ 28¢. Authority. City warrants that the City Council of the City has lawfully approved this Agreement and has authorized its Mayor to execute this aA_greement and lawfully bind the City to its terms. Northfield warrants that its shareholders, executive officers, and directors are fully authorized to enter into this Agreement and lawfully bind Northfield to its terms. CITY OF TUKWILA By: __Steven M. Mullet, Mayor Approved as to Form: By: Shelley M. Kerslake, City Attorney NORTHFIELD VENTURES, LLC: By: Andrew Berg, its C:kTEMP\Northfiledfinalredlined72304.docG:\C~; Attc. rn.e-,.~£hc!!c-?,?!~r tkfi!e ffina!r~ f!~ncd723 O~, ~5~i.d~G:~`PPS~!\n~r`.`:!c:::`!~\C~ntr~`c~\x`!~x~`r.`!~d~`n~!r:f!.:n:~f9~.fccC: rcd!in*~ ?!crthfi!cd Exchang.e 7 15 9~. .dc:C:\Dccu:r.:r.*~ :nfl S*.~dng:LKc.!de.~&cc:! S:."Y.2ngs',Tcmpcr:.~' Page 13 of 16!67, EXHIBIT A City Property LEGAL DESCRIPTION: THAT PORTION OF LOTS 8, 27 AND 28 IN BLOCK 2 OF FIRST ADDITION TO ADAM'S HOME TRACTS, AS PER PLAT RECORDED IN VOLUME 12 OF PLATS, PAGE 50, RECORDS OF KING COUNTY, DESCRIBED AS FOLLOWS: BEGINNING AT THE INTERSECTION OF THE NORTH LINE OF SOUTH 150TH STREET AND THE EASTERLY LINE OF STATE ROAD NO. 1; THENCE NORTH 18028'40'' EAST ALONG THE EASTERLY LINE OF SAID ROAD 126.43 FEET TO THE TRUE POINT OF BEGINNING WHICH IS ON THE NORTH LINE OF THE SOUTH 120 FEET OF SAID LOTS 27 AND 28 AS MEASURED ALONG THE EASTERLY LINE THEREOF; THENCE SOUTH 89°44'10'' EAST ALONG SAID NORTH LINE 190.31 FEET TO A POINT ON THE EAST LINE OF LOT 27 AND WHICH IS 120 FEET NORTH OF THE SOUTHEAST CORNER THEREOF; THENCE NORTH 00033'50'' WEST ALONG THE EAST LINE OF LOTS 27 AND 8, A DISTANCE OF 220.39 FEET; THENCE NORTH 89°44'10" WEST 114.60 FEET TO THE EAST LINE OF STATE ROAD NO. 1; THENCE ON SAID EAST LINE SOUTH 18°28'40' WEST 232 FEET TO THE TRUE POINT OF BEGINNING; AND THAT PORTION OF LOT 26 IN BLOCK 2 OF SAID PLAT, DESCRIBED AS FOLLOWS: BEGINNING AT THE INTERSECTION OF THE NORTH LINE OF SOUTH 150TH STREET AND THE EAST LINE OF STATE ROAD NO. 1 (HIGHWAY 99); THENCE NORTH 18o28'40" EAST, ALONG THE EASTERLY LINE OF SAID ROAD, 126.43 FEET TO POINT WHICH IS ON THE NORTH LINE OF THE SOUTH 120 FEET OF SAID LOTS 27 AND 28 AS MEASURED ALONG THE EASTERLY LINE THEREOF; THENCE SOUTH 89°44'10" EAST, ALONG SAID NORTH LINE, 190.31 FEET TO A POINT ON THE EAST LINE OF LOT 27 AND WHICH IS 120 FEET NORTH OF THE SOUTHEAST CORNER THE ~REOF; THENCE NORTH 00o33'50" WEST, ALONG THE EAST LINE OF LOT 27, A DISTANCE OF 55.89 FEET TO TH TRUE POINT OF BEGINNING; C:\TEMPkNorthfiledfmalredlined72304.docG:\CL%' red .......................... ~. ................................... ~ .......... ~ v , Page 14 of 16 THENCE NORTH 00°33'50" WEST ALONG THE EAST LINE OF LOT 27, A DISTANCE OF 137.48 FEET TO THE NORTH LINE OF LOT 27; THENCE EAST 23.30 ALONG THE NORTH LINE OF LOT 26 WHICH LINE IS A PROLONGATION OF THE NORTH LINE OF LOT 27; THENCE SOUTHWEST 139.06 FEET TO THE TRUE POINT OF BEGINNING; (ALSO KNOWN AS LOT A OF LOT LINE ADJUSTMENT NO. 983059, RECORDED UNDER RECORDING NO. 8901180986) SITUATE IN THE CITY OF TUKWILA, COUNTY OF KING, STATE OF WASHINGTON. C:\TEMP~Northfiledfmalredlined72304.docG:\C[~,' 1501 .... Page 15 of 1615!'! EXHIBIT B Northfield Property--Legal Description PARCEL A: THAT PORTION OF THE NORTH 185.90 FEET OF THE SOUTH 430.9 FEET OF THE WEST 505 FEET OF THE EAST 1,031 FEET OF THE SOUTHEAST QUARTER OF THE SOUTHWEST QUARTER OF SECTION 15, TOWNSI-II~ 23 NORTH, RANGE 4 EAST, WILLAMETTE MERIDIAN, IN KING COUNTY, WASHINGTON, LYING EASTERLY OF WASHINGTON STATE HIGHWAY NO. 1. PARCEL B: LOT 6, CHERRY LANE, ACCORDING TO THE PLAT THEREOF, RECORDED IN VOLUME 48 OF PLATS, PAGE 21, IN KING COUNTY, WASHINGTON. C:\TEMPkNorthfiledfinalredlined72304.doc u: ,vkv Page 16 of 161614 [ Finance and Safety Committee August 3,'2004 " Page 2 .~5. Car Agreement up the Committee saw it last. Northfield Wash The has been cleaned since Alan had costed out the entire City pay provisions in the contract. Most costs are known. One cost he and Andy Berg are still negotiating over is the cost of financing charges by the new bank. Andy wants more than the $4,000 the City thinks is reasonable. The Committee still had a few questions clarifying the City's maximum cost would be $1,245,000. With a few other recommendations, the Committee sent the Agreement to COW. Recommend Agreement to COW. 6. Motor Scooter Ordinance A draft ordinance was in the packet, and the Committee members thought it covered the scooter issues adequately. Joan said she was unsure what an electric personal-assistive mobility devise (EPAMD) looked like. She also asked what would happen if a . postal delivery person rode one. Though that is not likely now, they would fall within the ordinance, as it allows EPAMDs to operate on roads and sidewalks. Recommend ordinance to COW. 7. Second Quarter Reports There were no comments on the reports. Information. ~ehair approval COUNCIL AGENDA SYNOPSIS y Initials ITEM NO. -(1 1� �l Meetin Date I Prepared by I Mayo review 1 Council review I i i /•��:.I t p r s ,1 �2,. 8/9/04 LL I M"' K7im if I is I I I I I ITEM INFORMATION 1 CAS NUMBER: 04-116 I ORIGINAL AGENDA DATE: 8/9/04 I AGENDA ITEM TITLE Ordinance Regulating Motorized Scooters and EPAMDs CATEGORY Discussion Motion Resolution Ordinance Bid Award Public Hearing Other Mtg Date 8/9/04 Mtg Date Mtg Date Mtg Date 8/9/04 Mtg Date Mfg Date Mtg Date SPONSOR E Council Mayor Adm Svcs DCD ❑Finance Fire Legal P&&R Police PIP SPONSOR'S This ordinance regulates the operation of motorized foot scooters and electric SUMMARY personal assitive devices within the City. REVIEWED BY COW Mtg. CA &P Cmte F &S Cmte Transportation Cmte Utilities Cmte Arts Comm. Parks Comm. Planning Comm. DATE: 8/2/04 RECOMMENDATIONS: SPONSOR /ADMIN. Adopt ordinance COMMITTEE Adopt ordinance COST IMPACT FUND SOURCE EXPENDITURE REQUIRED AMOUNT BUDGETED APPROPRIATION REQUIRED Fund Source: Comments: MTG. DATE I RECORD OF COUNCIL ACTION 8/9/04 I MTG. DATE ATTACHMENTS 8/9/04 Memo dated August 3, 2004 by L Lauterbach Draft ordinance regulating motorized foot scooters Minutes from Finance and Safety Committee 8/3/04 To: City Council From: Lucy Lauterbach Date: August 3, 2004 Subject: I~lotor Scooter Ordinance Backqround: Motor scooters have appeared in Tukwila within the past few months. As they are most olten driven by young teenagers who are not as careful to obey laws as older people might be, they have startled some, scared some, and annoyed some others. Several parents have bought their kids scooters to let their kids get around on their own, so the parents don't have to drive them. Without regulations, they could proliferate and could be a problem for drivers and pedestrians. Discussion: Many cities around Puget Sound are regulating scooters. The two forms of scooters are different. The electric personal-assistive mobility devices (EPAMDs) look like a skateboard with tall handles, are more often driven by adults, and as electric scooters, are quieter and generally slower than gas scooters. Segways are EPAHDs. Some electric scooters look like the EPANDs, but can go 50 mph, aha are not classified as EPAMDs. Gas scooters and some electric scooters are more often Iow-riders, with handlebars that are more level with the rider. Motorized foot scooters are regulated more strictly than EPAHDS. Both can be used on roads and a road shoulder where the speed limits is 25 mph or lower. A person must be 16 to ride either, and must wear a helmet. They can't be ridden after dark. If they are obeying traffic laws they are legal, but if they are riding '~n an irresponsible manner or in parks or on trails, they are illegal. Recommendation: Finance and Safety Committee recommended the ordinance to COW and Council for approval. c CI f7 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON; ESTABLISHING NEW REGULATIONS REGARDING THE USE OF MOTORIZED SCOOTERS AND EPAMDs; PROVIDING FOR SEVERABMITY; AND ESTABLISHING AN EFFECTIVE DATE. WHEREAS, RCW 46.61.710 has authorized the use of motorized foot scooters and EPAMDs, yet has allowed local jurisdictions to regulate their use within each city; and WHEREAS, the City of Tukwila is concerned about traffic and pedestrian safety, as well as the safety of all its citizens; and WHEREAS, Tukwila chooses to regulate the use of motorized scooters and EPAMDs in order to protect the health, safety, and welfare of its citizens; NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF TUKWILA, r WASHINGTON, DO ORDAIN AS FOLLOWS: Section 1. Regulations established. Tukwila Municipal Code Chapter 934 is hereby established to read as follows: CHAPTER 9.34 OPERATION OF MOTORIZED SCOOTERS AND EPAMDs Sections: 9.34.010 Definitions 934.020 Areas of Operation r/ 9.34.030 General Requirements and Operation 9.34.040 Prohibited Areas z rtr 9.34.050 Requirements for Operating EPAMDS and Motorized Foot Scooters 934.060 Responsibility 934.070 Application to Other Devices jl<:jtvn 934.080 Violation and Penalties 9.34.010 Definitions fr For the purposes of TMC Chapter 9.34, the following definitions shall apply: A. EPAMD is an electric, personal assistive mobility devise, which is a self zy balancing device with two wheels not in tandem, designed to transport only one person by an electric propulsion system with an average power of 750 watts (one horsepower), having a maximum speed on a paved surface of less than 20 mph (miles per hour), when powered solely by such a propulsion system. B. Motorized foot scooter means a device with no more than two, 10 inch or smaller diameter wheels that has handlebars, is designed to be stood or sat upon by the operator, and is powered by an internal combustion engine or electric motor that is capable of propelling the device with or without human propulsion. A motor driven cycle, a moped, an electric assisted bicycle or a motorcycle is not a motorized foot jn Scooter. Motor Scooters 8/5/04 1 of 4 9.34.020 Areas of Operation A. Except as otherwise provided in this chapter, motorized foot scooters may be operated on roads and road shoulders where the speed limits are 25 mph or Iess. B. EPAMDs may be operated on roads and road shoulders where the speed limits are 25 mph or less, and on bicycle lanes, sidewalks and alleys. They are prohibited in City parks, on school playgrounds, and on multiple -use trails within the City. it 9.34.030 General Requirements and Operation A. No person may operate a motorized foot scooter on a public way unless such person is 16 years or older. B. Any person operating a motorized foot scooter or similar device, shall obey all f rules of the road applicable to vehicle or pedestrian traffic, as well as the instructions of official traffic control signals, signs and other control devices applicable to vehicles, unless otherwise directed by a police officer. C. It shall be unlawful to operate a motorized foot scooter or similar device other than as close as practicable to the right -hand curb or right edge of the roadway. D. When r arias for a left p ep g turn, the motor scooter operator shall stop and dismount as dose as practicable to the right -hand curb or right edge of the roadway and complete the turn by crossing the roadway on foot, subject to the restrictions placed 2t,- on pedestrians in Chapter 46.61 RCW. E. A person operating an electric, personal assistive mobility device (EPAMD) 4 shall obey all speed limits and shall yield the right -of -way to pedestrians and human- powered devices at all times. An operator must also give an audible signal before overtaking and passing a pedestrian Persons operating an EPAMD have all the rights and duties of a pedestrian, though they must follow rules of the road when traveling on the roadway. ...'..R'& F. No motorized foot scooter or EPAMD shall be operated between the times of sunset to sunrise unless operated as a mobility assistant for a disabled occupant, in (r which case lights and reflectors must be properly installed per RCW 46.04, G. No motorized foot scooter or EPAMD shall be operated with any passengers in :i "1.. addition to the operator. H. No motorized foot scooter or EPAMD shall be operated without the operator `n: P P wearing a properly fitted and fastened helmet, that meets or exceeds safety standards it 14: adopted by Standard Z -90.4 set by the American National Standards Institute (ANSI). y 9.34.040 Prohibited Areas H It is unlawful for any person to operate or ride upon a motorized foot scooter or similar device in any of the following areas: 'I" 1. Parks, including sidewalks, streets, paths, trails and similar travel ways. =r; f s 2. Multi-use trails, including both City recreational and the Interurban Trail. te r 3. Sidewalks within the City limits. x 4. Public school playfields or public school playgrounds. "c 5. Roads with speeds over 25 mph. 9.34.050 Requirements for Operating EPAMDs and Motorized Foot Scooters A. It is unlawful to operate a scooter or EPAMD in a negligent or unsafe manner. They shall be operated with reasonable regard for the safety of the operator and other persons. Examples of operating in a negligent manner include, but are not limited to, failure to obey all traffic control devices, or failure to yield right-of-way to pedestrians and /or vehicular traffic. B. Every internal combustion engine -driven foot scooter shall at all times be equipped with a muffler in good working order and in constant operation to prevent excessive or unusual noise. j p MotorScooters 5/5/04 2 of 4 A3-• C. The use of a cutout, bypass, or similar muffler elimination device is prohibited on any motorized foot scooter. D. Motorized foot scooters shall be equipped in such a manner that the drive motor is engaged through a switch, lever, or other mechanism that, when released, will cause the drive motor to disengage or cease to function. E. It is unlawful to operate on a public roadway or on public property with a motor scooter that has had factory- installed brakes removed or altered to the extent that the braking device is ineffective. Scooter brakes must enable the operator to make the braked wheels skid on dry, level and clean pavement. F. Handlebars on a scooter must not exceed the shoulders of the operator. G. Noise Restrictions: 1. Scooters must comply with the provisions in TMC Chapter 8.22, "Noise." 2. No motorized foot scooter shall emit frequent, repetitive or continuous sounding of any horn or siren, except as a warning of danger or as specifically 1 ✓s' permitted or required by law. 3. No motorized foot scooter shall allow squealing, screeching or other sounds from scooter tires coming in contact with the ground or pavement because of rapid acceleration, braking or excessive speed around corners or because of such other reason not connected with avoiding danger. 9.34.060 Responsibility No person shall perform any act forbidden by TMC Chapter 934 nor fail to perform any act required in TMC Chapter 9.34. It is unlawful for any parent, guardian or other person having control or custody of a minor child to allow said minor to operate a motorized foot scooter in violation of TMC Chapter 934. 9.34.070 Application to Other Devices The provisions of TMC Chapter 9.34, regarding motorized foot scooters and EPAMDs, apply to any device that. yt 1. Matches the definition of a motorized foot scooter, except for the number or size of the devices' wheels; and 2. Cannot be defined as a motor driven cycle, a moped, an electric- assisted bicycle or a motorcycle. 9.34.080 Violations and Penalties A. The City of Tukwila Police Department personnel shall be responsible for enforcing the provisions of TMC Chapter 934. B. Upon determining a violation of TMC Chapter 9.34 has occurred, law enf.....;....ent officers may, at their discretion, issue a civil infraction in the following amounts to any person including a parent or guardian violating any of the provisions of TMC Chapter 9.34. In any case, the amount shall not exceed $250. C. The following monetary penalties shall apply: 1. First offense in a 365 -day period $40. 2. Second offense in a 365 -day period $80. 3. Third and future offenses in a 365 day period $250. Section 2. Severability. If any section, subsection, paragraph, sentence, clause or phrase of this ordinance or its application to any person or situation should be held to be invalid or unconstitutional for any reason by a court of competent jurisdiction, such invalidity or unconstitutionality shall not affect the validity or constitutionality of the remaining portions of this ordinance or its application to any other person or situation. Motor Scooters 8/5/04 3 of 4 Section 3. Effective Date. This ord@tee= wummary thereof shall be ed m the official newspaper of the City, and shall take effect and &E hill force n days after pas e and publication as pro ma%law. PASSED BY THE CITY CO UNc OF THE CITY OF TUICW[LA, WASHINGTON, at a Regular Meeting thereof this day of 200 ATTEST/AUTHENTICATED: Steven M. Mullet, Mayor Jane E Cantu, c co«om d with the City Cl APPROVED AS TO FORM BY Passed by the City Council Published: Effective D Office of the City Att _ey @dinaneNumbr r y Motor Scooters #e! Finance and Safety Committee August 3,'2004 Page 2 5. ~Northfield Car Wash The Agreement has been cleaned up since the Committee saw it last. Alan had costed out the entire City pay provisions in the contract. Most costs are known. One cost he and Andy Berg are still negotiating over is the cost of financing charges by the new bank. Andy wants more than the $4,000 the City thinks is reasonable. The Committee still had a few questions clarifying the City's maximum cost would be $1,245,000. With a few other recommendations, the Committee sent the Agreement to COW. Recommend Agreement to COW. 6. Motor Scooter Ordinance A draft ordinance was in the packet, and the Committee members thought it covered the scooter issues adequately. Joan said she was unsure what an electric personal-assistive mobility devise (EPAMD) looked like. She also asked what would happen if a postal delivery person rode one. Though that is not likely now, they would fall within the ordinance, as it allows EPAMDs to operate on roads and sidewalks. Recommend ordinance to COW. 7. Second Quarter Reports There were no comments on the reports. Information. ~hair approval