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Home My WebLink AboutCity Council Meeting - Council - Agenda - 10/21/1997 CITY OF d SUMMARY AGENDA KENT CITY COUNCIL MEETING October 21, 1997 Council Chambers 7 : 00 p.m. MAYOR: Jim White COUNCILMEMBERS: Christi Houser, President Jim Bennett Tim Clark Connie Epperly Jon Johnson Leona Orr Judy Woods CALL TO ORDER FLAG SALUTE ROLL CALL 1. PUBLIC COMMUNICATIONS }Y B. Proclamation - Human Services Month Z:0 . Introduction of Mayor's Appointees A. itilG o r s � uQc�ef M e s5a�c�'. 2 . PUBLIC HEARINGS A. Meridian Valley Annexation Area Initial Zoning and Comprehensive Plan Amendments 3 . CONSENT CALENDAR A. Approval of Minutes B. Approval of Bills C. 1998 Budget and Tax Levy - Set Hearing Date D. Willis St. Street Vacation - Resolution Setting Hearing Date /,qq E. Arts Commission Reappointments F. Deferred Compensation Trust Plan - Ordinance .3� 6 J G. 1998 City Art Plan Budget and 1998-2002 Five-Year Art Plan - Accept H. Russell Road Tot Lot Budget - Accept and Amend I. Senior Center Parking Lot - Accept as Complete J. ADA Bus Zone Improvements - Accept K. Fairweather Sewer Extension - Bill of Sale L. Kent Community Health Center - Bill of Sale M. Kent North Corporate Park East - Bill of Sale N. Watershed Action Grant - Accept and Establish Budget 0. Commute Trip Reduction Interlocal Agreement - �J Authorization f . ocuU Cl l ,fi b_`>el1Ce5 ( E:y J r_ GtSev" 4 . OTHER BUSTN E S S #0�Z-f}. L. Y1leSfiC �' G I rlC'f - rtic ✓c . TG (S-iC�11a.✓iCC �W. ��J(�(� 5. BIDS A. Guiberson Reservoir Seismic Upgrade 6. CONTINUED COMMUNICATIONS 7 . REPORTS EXECUTIVE; SESSION: (1) Pending Litigation (2) Property Acquisition 8 . ADJOURNMENT NOTE: A copy of the full agenda packet is available for perusal in the City Clerk's Office and the Kent Library. An explanation of the agenda format is given on the back of this page. Any person requiring a disability accommodation should contact the City in advance for more information. For TDD relay service call 1-800-635-9993 or the City of Kent(253)854-6587. PUBLIC COMMUNICATIONS Citizens wishing to address the Council will, at this time, make known the subject of interest, so all may be properly heard. A) Proclamation - Human Services Month B) Introduction of Mayor's Appointees . w .......... .......... Kent City Council Meeting Date October 21, 1997 Category Public Hearings 1. SUBJECT: MERIDIAN VALLEY ANNEXATION AREA INITIAL ZONING AND COMPREHENSIVE PLAN AMENDMENTS (AZ-97-1 AND CPA-97-1) 2 . SUMMARY STATEMENT: This is the second of two required hearings on the proposed annexation zoning. map amendments and the Comprehensive Plan amendments for the Meridian Valley annexation area. The Land Use and Planning Board held a public hearing on August 25, 1997, and the City Council held the first hearing on September 16, 1997 . 3 . EXHIBITS: Memo dated 9/16/97;. staff report of 8/25/97; Land Use and Planning Board minutes of 8/25/97; and City Council minutes of 9/16/97 4 . RECOMMENDED BY: Land Use and Planning Board (Committee, Staff, Examiner, Commission, etc. ) 5. UNBUDGETED FISCAL/PERSONNEL IMPACT: NO X YES 6. EXPENDITURE REQUIRED: $ SOURCE OF FUNDS: OPEN HEARING: PUBLIC INPUT• CLOSE HEARING: 7 . CITY COUNCIL ACTION: Councilmember moves, Councilmember seconds to timaTpr-emopfmodify the Land Use and Planning Board's recommendation of approval to adopt the proposed Meridian Valley Annexation Zoning and Area Comprehensive Plan Amendments (AZ-97-1 and CPA-97-1) , and to direct the City Attorney to prepare the necessary ordinance(s) . DISCUSSION: ` o ACTION: -f Lk �% f 4wt rY f*l i Council Agenda Item No. 2A CITY OF 1 Q\-L S!2 � Jim White, Mayor Planning Department (253) 859-3390/FAX (253) 850-2544 James P. Harris, Planning Director MEMORANDUM September 16, 1997 MEMO TO: JIM WHITE, MAYOR, AND MEMBERS OF THE CITY COUNCIL FROM: JAMES P. HARRIS, PLANNING DIRECTOR SUBJECT: PROPOSED MERIDIAN VALLEY ANNEXATION AREA INITIAL ZONING AND COMPREHENSIVE PLAN AMENDMENT, #AZ-97-1, AND #CPA-97-1 - LAND USE & PLANNING BOARD RECOMMENDATION Attached is the Land Use & Planning Board's recommendation on initial zoning and the Comprehensive Plan amendment for the Meridian Valley annexation area. The Land Use & Planning Board conducted a public hearing on zoning and land use for the Meridian Valley area on August 25, 1997, and made their recommendation at the conclusion of that hearing (see attached minutes). At the August 25th public hearing the Planning Board received considerable public testimony and was asked to consider two zoning and land use plan map alternatives for the annexation area. Each zoning and land use alternative is mapped and described in the staff report to the Planning Board dated August 25th, 1997, which is attached to this memo. After considering the public testimony, and additional information and questions of staff, the Planning Board is recommending zoning and land use plan map Alternatives 2, with slight modifications. The changes made to Alternative 2 by the Planning Board were minor, and involved a change along SE 240th Street, west of 132nd Ave SE, from MRG to MRD, and two changes north and south of SE 240th Street, east of 140th Ave SE, from SR-2 to SR-4.5. By City ordinance, the City Council must hold two hearings on the proposed zoning, which also includes consideration of the Comprehensive Plan Land Use Map. The first hearing is scheduled for September 16, 1997, and the second is scheduled for October 21, 1997. By State law, the hearings must be held at least 30 days apart from each other. Planning Department staff will be available at the September 16th hearing to further explain the recommended zoning and land use plan designations for the Meridian Valley annexation area. MJ/p/public/az97-l.mm3 Attachments cc: Fred Satterstrom, Planning Manager Kevin O'Neill, Senior Planner Matthews Jackson, Planner/GIS Coordinator "filth wE_SO KFNT w.aSHIVITON ox01'_-;SQ> 1 TELEPHONF i20618W-1100/FAX 0 814-111.1 MERIDIAN VALLEY ANNEXATION ZONING LAND USE & PLANNING BOARD RECOMMENDATION 5E 233 53 S'i. ST x `y z e si.. f•• SE 234 5 P 7 \ _ E 234 Pt It ,w SE 235 PL o,-f SE 235 5T \% a� W SE = SR 6= SR 8 S 237 Pt 23> Sy k LT E 9 'Q yWj SL i '• SE 239 it 1 m rr N R tsS2V1 5 > St 242 Si S R'�-1 `•,S\� MR N J tr 4. f' 1PS s� N i Si N St � I i•/ f - .• 6 Z SE 2V>PL 4o5 cnSE 2{B ST > w nt^ S I Ias L yo°( n /`Sc 3\L n3 O y rtn. � yV2 �I N _ Mai Sr - Sf rE m SE 252 ST _ H!3! < 25l CI w N \c3 W a _ S♦ a' S SE 253 c PL 237 Sy Sl ih 5[254 ry c a gS - tr SE 255 a x ss n Cal E 257 m SE 23E SE 256 PL Si Pl SE 257 C7 JP a „� SE 257 PL 2 P SE 259 5T SE 21E Pt 3 Oa = E 2SE SI ,;•Se 25E CI S[ 2 E R u - ' SE 259 Pl �t - se 2 E Pt 25f h LEGEND SEPTEMBER 16, 199'1 ^^^*ram CITY LIMITS SR 6 SINGLE FAMILY 6.05 DU/ACRE ZONING BOUNDARY /� SR 8 SINGLE FAMILY 8.71 DU/ACRE CC COMMUNITY COMMERCIAL M R D DUPLEX MULTIFAMILY 10 DU/ACRE SR 1 SINGLE FAMILY 1 DU/ACRE III � rr� r MERIDIAN VALLEY LAND USE PLAN MAP LAND USE & PLANNING BOARD RECOMMENDATION 5i n if ya 5E 233 51 9< E 3 5T % 4 s ? E 234 PL 1E ue SE 235 PL [M. 51 SE 235 V� {' PL ¢' E 23� a o b x 5 1 ,[ E 232 5i K [I ill SF 8 f F8 _ a .1 SE 239 � i .+] 1 m — ]L ]]It „P111 v. rlllr. MD SF SF `A Yp 1 8 SE 241 5 - \ frol et e � � � Xiir H a } e ¢ SE 292 51 S F 1 �. ,t s LD F S[ - ; - m t„ y � 1 Sfry n It W it �Op [i43 y rF SS sP ays s �n S ut St SE 2Yl PL x Sl / SE 248 ST It l]9 n cn is t ] I� It ae ll ]]iye i ren, lY2 t2525T CIf Sf a S FSE 'S3 253 SisSE 25eIL SE 255 L91 'y" E 25l SE ts9 SE 256 PL $1 PL SE 257 Cl y a ,,, 5E 251 PL SE 258 Si it 2s9 PL a jsa _ se 259 9 Sp n SE 259 51 �x x 2S9 259 PL <1 - SE 2 9 PL 9. SE ^ = Pl• X - 259 h LEGEND SEPTEMBER 16, 1997 CITY LIMITS SF 8 SINGLE FAMILY 8 DU/ACRE ZONING BOUNDARY LD M F LOW DENSITY MULTIFAMILY I C COMMERCIAL MDMF MEDIUM DENSITY MULTIFAMILY [ SF 1 SINGLE FAMILY 1 DU/ACRE \ III CITY OF �,� r ,j ,Jim White. Mayor Planning Department (253) 859-3390/FAX (253) 850-2544 James P. Harris. Planning Director MEMORANDUM, August 25. 1997 MEMO TO: STEVE DOWELL, CHAIR AND LAND USE & PLANNING BOARD MEMBERS FROM: MATTHEWS JACKSON, PLANNER/GIS COORDINATOR SUBJECT: #AZ-97-1, CPA-97-1 - MERIDIAN VALLEY ANNEXATION ZONING AND COMPREHENSIVE PLAN AMENDMENT Introduction On April 15. 1997, the Kent City Council passed Ordinance No. 3344 approving the annexation ` of the Meridian Valley Area to the City of Kent. The annexation was prompted by a citizen petition which was one of several received by the Council in the past five years. The Meridian Valley Annexation Area encompasses approximately 1.39 square miles, or 891 acres. 4.665 persons and is generally located on the eastern edge of the existing city limits, east of 132nd Avenue SE to 148th Avenue SE and north of SE 256th Street to SE 235th Street. The annexation extends to the eastern edge of the City's Potential Annexation Area (PAA), which is designated in the Kent Comprehensive Plan. The Meridian Valley Annexation Area officially became a part of the Citv of Kent on July 1, 1997. Upon annexation, the area was given an interim zoning of SR-2, Single Family Residential, with a 2.18 units per acre maximum density. All lands annexed to the City are given an interim zoning of SR-2 per the Kent Zoning Code. The City has six months after an annexation becomes effective to establish zoning designations through a public hearing process. The first public hearing on zoning and a comprehensive plan amendment for the Meridian Valley annexation area will be held in front of the Land Use & Planning Board on August 25th. Following the Board's hearings, their recommendations will be forwarded to the City Council for consideration. Two hearings will be held by the City Council. and by state law, these hearings must be held 30 days apart from one another. The first Council hearing will occur in mid-September, while the second hearing will likely occur in mid to late October. The City of Kent adopted its Comprehensive Plan under the provisions of the Growth Management Act (GMA) in April, 1995. As mentioned above, the plan includes a potential annexation area (PAA) for the city. The Land Use Element of the plan includes a Land Use Plan "n llh U F V1 KI[Al. AC A5411A(i"rl7A nNl)`_zxi� TI-.11.f III i`b " ,_:: �..��:•: -::il Meridian Valley Annexation Zoning* and Comp Plan Amendment - AZ-97-1%CPA 97-1 August 25. 1997 Page Map which designates land uses for the entire PAA. including the Meridian Vallev annexation area. The land uses designated in the PAA for the Meridian Valley Annexation Area reflect the designations that King County had established to implement its 1994 Comprehensive Plan. The GMA requires that all development regulations adopted by a jurisdiction must implement. and be consistent with, the comprehensive plan (RCW 36.70A.120). This means that the zoning for the Meridian Valley annexation area must be consistent with the Land Use Plan Map in the Comprehensive Plan. While it is anticipated that the zoning being proposed for the area will be generally consistent with the Land Use Plan Map, it will be necessary to make some amendments. and also necessary to update the land use designations so that they are consistent with the designations for the rest of the City. Therefore, this project includes an amendment to the City's comprehensive plan, as well as, an amendment to the zoning map. This report outlines background information on the Meridian Valley Annexation Area, including a discussion of the previous King County comprehensive plan and zoning designations for the area, and how they compare to Kent's respective plan and zoning designations. The report will then outline two alternatives for both the Comprehensive Plan Land Use Plan Map and the City's zoning map for the Planning Boards's consideration. The Planning Board and City Council will be asked to review and adopt both an amendment to the Comprehensive Plan and zoning map designations for the annexation area. Background The comprehensive plan and zoning designations for the Meridian Valley Annexation Area have changed twice in the past five years. In 1991, the King County Council adopted the Soos Creek Communitv Plan and zoning, which included the Meridian Valley annexation area. In December. 1994, the County Council adopted the King County Comprehensive Plan, which was prepared pursuant to the Growth Management Act. The County also adopted new zoning designations at the same time that the plan was adopted, which became effective in February. 1995. The new zoning was most notable for designating residential areas based on density. as opposed to types of structures. The previous County zoning designations are described in greater detail later in this report. When the County adopted their comprehensive plan. housing and employment targets were established for each community planning area and for the County as a whole. They were also established for Kent in the City's comprehensive plan. The housing target for the portion of the Soos Creek area located within the urban growth area ranged from 8,600 to 9,600 households. The Meridian Valley annexation area represents a small portion of the urban land in the Soos Creek area. Staff has analvzed the Soos Creek household targets designated to each Small Analysis Zone (SAZ) by King County. It appears that the target for the Meridian Valley area would fall within the range of 370 to 400 households in the next twenty years. Staff feels that this interim target range is appropriate in light of past development patterns in the city, and the target range of 1,700 to 2.000 households estimated for the larger Meridian Meridian Valley Annexation Zoning and Comp Plan Amendment - AZ-97-1/CPA-97-1 August 25. 1997 Page 3 Annexation Area. Between 1990 and 1996, the number of housing units in the City of Kent has increased by 8,901 units. However. 6,389 of these units were added through annexations. leaving a total of 2,512 created through new construction. This means the city has been averaging a little more than 418 new housing units per year. The current city limits is approximately 29 square miles in area. Staff has also analyzed the existing County zoning with regard to building capacity. Using data from the King County Assessor for vacant and underdeveloped land, it appears that adequate zoning capacity currently exists to support a target of 370 to 400 units. Both alternatives described in this report would provide enough capacity to meet the interim housing unit target. As the city continues to grow through annexations, staff will need to update city-wide housing unit targets, employment targets, and building capacity to reflect current boundaries. Existing Land Uses The existing land use pattern in the Meridian Valley Annexation Area is typical of most suburban neighborhoods. The predominate existing land use is detached single family residential. There is one commercial node located at the intersection of SE 132nd Ave and SE 240th Street. This is anchored by a grocery store and is surrounded by professional offices and multifamily development. The recently completed census in the area indicates that 1,245 of the housing units located in the annexation area are single family detached structures, while 471 are multifamily residential. No mobile homes were counted in the area, and only one special unit was found. Approximately 72.5 percent of the units in the annexation area are single family residential, while 27.5 percent are multifamily. The split between single family and multifamily housing units in the Meridian Valley Annexation Area is similar to that of the Meridian Annexation Area annexed on January 1, 1996 which was approximately 74.5 percent single family detached. 18.5 percent multifamily, and seven percent mobile homes and special units. This annexation was located directly south of the Meridian Valley Annexation Area and covered approximately 5.27 square miles. As of April 1, 1996, the city limits exclusive of the Meridian Valley Annexation Area, was approximately 42 percent single family detached, 53 percent multifamily. and 5 percent mobile homes and special units. The most intense and dense land uses are clustered around the node located at 132nd Ave SE and SE 240th Street. Two multitenant commercial centers are located at this node, one on the northeast side of the intersection, and the other on the southeast side. The center to the north is anchored by a QFC grocery store with associated personal service development, while the center to the south is predominantly professional offices. A BP gas station is located at the northwest corner of the node, and a seven eleven and daycare center are located on the southwest section. ». Two large multifamily developments are located adjacent to this commercial area. The Wandering Creek Apartment Homes are located northwest of the intersection, and it is developed with 156 units on approximately 16.5 acres of land. The Meridian Gardens Apartments are located along Meridian Valley Annexation Zoning and Comp Plan Amendment - AZ-97-1/CPA-97-1 August 25, 1997 Page 4 SE 240th Street near the southwest side of the intersection is developed with 80 units on 3.45 acres. The largest single development in the annexation are is the Meridian Valley Country Club. The majority of lots within the country club range from 8.000 to 14.000 square feet. Lot sizes in the remainder of the single family subdivisions in the annexation area range from 5,700 square feet to 15,000 square feet. Lot sizes in these subdivisions are similar to those within subdivisions inside the existing city limits with a few exceptions. In some cases, subdivisions developed under county regulations which allow clustering, may have lot sizes smaller than those in a city subdivision within a comparable zoning district. While the single family development standards in the city have been amended to allow for more lot averaging within minimum lot size guidelines. there are no provisions for clustering development.. There are a few large tracts of land dispersed among the subdivisions in the annexation area. Most of these are located in the southwest and northeast portions of the annexation. A couple of these parcels are used for large farms including livestock grazing/exercising areas. Most are simply vacant or occupied by a single residence and accessory buildings. In many cases these large parcels are surrounded by developed single family subdivisions. These large vacant and underdeveloped parcels of land greatly contribute to what people perceive as rural character within this urban environment. Section 15.08.100 of the Kent Zoning Code outlines the Citv's regulations pertaining to nonconforming development. This section provides protection to uses, structures, lots, or signs which have been lawfully established pursuant to a county resolution in effect at the time of annexation which rendered it nonconforming. Generally, a use which was legal and/or legally established under the applicable county regulations, will continue to have a reasonable opportunity to continue its operations. This will be true regardless of what the new City zoning is. In addition, this section also states that any legally established residential uses located in any residential zoning district and in existence as of January 1, 1984, shall not be deemed nonconforming in terms of density provisions and shall be a legal use. This protection is not offered to uses which were illegally established or expanded in King County. Other potential nonconforming uses at the time of annexation are Planned Unit Developments previously located in single family zoning districts within the county. These developments, which contain attached and multiple dwelling units, are currently not allowed in City's single family zoning districts, but are likely to continue with single family zoning upon annexation. The Meridian Firs Nos. 1 and 2 located east of the Meridian Valley Country Club, and the Meridian Valley Condominiums and Meridian Valley Nine Condominiums located inside the country club are examples of this type of development. Meridian Vallev Annexation Zoning and Comp Plan Amendment - AZ-97-1CPA-97-1 August 25, 1997 Page 5 Description of Previous King County Zoning The previous King County zoning is predominantly residential. The breakdown of previous zoning in the Meridian Vallev annexation area is approximately as follows: Zone Acres Base Densitv NB, Neighborhood Business 9 N/A R1, Urban Residential 74 1 dwelling unit/acre R4, Urban Residential 715 4 dwelling units/acre R6, Urban Residential 25 6 dwelling units/acre R12, Urban Residential 21 12 dwelling units/acre R18, Urban Residential 34 1S dwelling units/acre R24, Urban Residential 5 24 dwelling units/acre R43, Urban Residential S 48 dwelling units/acre The Meridian Valley Country Club, the subdivisions surrounding the country club to the west, east, and south, and the subdivisions in the northwest corner of the annexation area were zoned R4. Two small areas on the northern border of the annexation area were zoned R6. The property located in the southeast corner of the annexation, and an area located on the eastern edge of the annexation along and south of SE 240th Street were zone R1. The commercial node at 132nd Ave SE and SE 240th Street was zone Neighborhood Business, and it was surrounded by a range of higher density residential zones. All of the areas previously zoned R12 - R48 were located surrounding this node. Finally, the majority of the Wandering Creek Apartment Homes was zoned R6, and a portion of the Puget Sound Energy substation located north of SE 240th Street was zoned R4. Comparison of King County and Kent Zoning Designations A list of existing County zoning designations assigned to the Meridian Annexation Area, and the most closely corresponding City of Kent zoning designations is attached to this report (see Key to Zoning Districts). Some characteristics of the Kent zoning alternatives proposed for the Meridian Valley annexation area are comparable to County zoning districts, and others are different. The King County Neighborhood Business zone compares generally to the Kent Community Commercial zone. The King County residential zones generally correspond to Kent Residential zones with the following differences: 1. Residential districts in Kent are separately distinguished as single family and multifamily zones. King County residential zoning is inclusive of detached single family and attached and stacked multifamily dwelling units. Attached and stacked units are only allowed in the RI - R8 zones with conditional use approval by the director or adjustor. Meridian Valley Annexation Zoning and Comp Plan Amendment - AZ-97-1/CPA-97-1 August 25. 1997 Page 6 2. The maximum number of detached single family dwellings which may be developed on a parcel of land in Kent is determined by a maximum density and minimum lot size. Ordinance numbers 3268. 3290. and 3327 approved in 1995 and 1996. revised development standards and maximum densities in order to meet intended lot yields in single family residential zoning districts. Minimum lot sizes range from 4,000 square feet in the SR-8 zoning district. to one acre in the SR-1 zone. The number of attached or stacked dwelling units which may be located on multifamily zoned property is determined by the overall area divided by a minimum area allotted for each unit proposed. A maximum density is also attached to all multifamily zoning districts except the MRD, Duplex Multifamily zone which only allows a single family house on a lot a minimum of 5.700 square feet and a duplex on a lot of 8,500 square feet. In contrast. The King County zoning code has a base density which determines the number of dwelling units to be developed on a specific property. In the R zones. no construction shall be permitted on a lot that contains an area of less than 2,500 square feet unless it is a townhouse development or zero lot line subdivision. This 2,500 square foot minimum is for all R zones regardless of density. However, base density can be increased to maximum density through the application of residential density incentives or transfers of density credits. 3. The King County Zoning Code contains provisions for residential density bonuses• based on open space preservation or other public benefits including low income housing. The Kent Zoning Code has no provisions for residential density bonuses. 4. The King County Zoning Code contains provisions for minimum density in urban residential zones. The minimum density as a percentage of base density is 85% in the R4, R6, and R8 zones: 80%o in the R12 zone: 75% in the RI zone: 70% in the R24 zone: and 65% in the R48 zoning district. There are no minimum density requirements in RI zoning districts. The Kent Zoning Code has no provisions for minimum density requirements. 5. Since Kent is an urban area, the Kent Zoning Code does not contain large lot zoning designations for natural resource lands, such as RA 5, Rural Area. one dwelling unit per 5 acres.. The Residential Agricultural or SR-1 zone. one dwelling unit per acre. is the designation used in the Kent zoning alternatives to assign the lowest available residential density. Meridian Valley Annexation Zoning and Comp Plan Amendment - AZ-97-1/CPA-97-1 August 25. 1997 Page 7 Environmental Characteristics The Meridian Valley Area is located on Kent's east hill plateau and can be generally characterized as rolling terrain. Elevations are approximately between 400 and 600 feet above sea level. There are significant environmental features in the area including Soos Creek and its tributaries, wetlands, and significant trees and habitat areas. The Kent Zoning Code and other City regulations provide protection to and guide development in sensitive areas. The City of Kent adopted a portion of King County's Soos Creek Basin Plan for the area on the east hill which is a part of the Soos Creek drainage. The Soos Creek Basin Stream Buffers Overlay zone was established pursuant to the larger Soos Creek Basin Plan in order to protect this significant and sensitive environment which crosses jurisdictional boundaries. Development on or near streams in this area will be subject to regulations which are similar if not the same as those previously applied in King County. In some instances, King County and City of Kent development standards differ within sensitive areas. Buffers, setbacks, and impervious surface standards vary between jurisdictions. Staff has mapped hazard areas, wetlands, streams, and lakes within the city using its Geographic Information System (GIS). Some information pertaining to the Meridian Valley area is currently available, but it is not as extensive as what is available within the established city limits. For example, there is limited wetlands information available from King County. The City is planning to update its database to include all relevant topographical and environmental data. This may require additional field work which is time consuming and restricted by our changing weather conditions. The City is working with King County to exchange data where available and compatible. Public Participation - Meridian Valley Open House An open house was held at Martin Sortun Elementary School on June 1 lth, 1997. Over 70 people attended the open house and of this 70, 52 filled out survey questionnaires covering land use planning and related issues. Of those who filled out the questionnaire, the majority were either property owners or residents of the area for more than 10 years, or have been property owners or residents for 1 - 5 years. Survey respondents mentioned "quality of schools" and "quality housing" as the two most important factors for living in the Meridian Valley area followed closely by proximity to shopping or employment. In terms of zoning issues, preservation of single family residential neighborhoods was the most important, with management of traffic congestion another big concern. Protection of environmentally sensitive areas also received a high number of responses. Asked to rank the most important factors for annexing to the City of Kent, zoning and land use issues were far and away the number one choice. Stormwater runoff and drainage issues, public _. safety, and traffic and road maintenance were also key factors for most responders. Meridian Valley Annexation Zoning and Comp Plan Amendment - AZ-97-1/CPA-97-1 August 25, 1997 Page 8 Survey respondants were asked about their opinions of King County zoning policy. Over 85%, of respondants indicated they had concerns regarding King County zoning. Most felt that there are too many opportunities for high density multifamilv developments in the area, and not enough preservation of single family neighborhoods. They also did not like the idea of density bonuses and minimum density requirements. Many respondants would like to see an expansion of commercial options in the area, and others want no new development without fixing• existing deficiencies in stormwater management. Description of Zoning Alternatives Staff has prepared two zoning alternatives for review by the Land Use and Planning Board and the public. Maps for both zoning alternatives are attached. Alternative 1 Alternative 1 shows what the zoning in the Meridian Vallev annexation area would be if existing King Countv zoning was converted to the most comparable Kent zoning designations. In this alternative, each parcel in the area is zoned based on the Kent zoning designation which most closely approximates the parcel's previous King County zoning designation. For example, properties zoned R6 in the county are shown as SR- 6 on this alternative. It is generally the policy of the Citv to follow lot lines when making zoning decisions. However, King County appears to have many more cases of split zoning on individual parcels, and this is reflected in alternative 1. The area of highest density in this alternative has a proposed zoning of MRH, High Density Multifamily, 40 units per acre maximum density. This area was zoned R48, Urban Residential. 48 units per acre maximum density by King County. The breakdown of zoning in alternative 1 is approximately as follows: Zone Acres Base Densitv CC, Community Commercial 9 N/A SR-1, Single Family Residential 74 1 dwelling unit/acre SR-4.5, Single Familv Residential 715 4.53 dwelling units/acre SR-6, Single Familv Residential 25 6.05 dwelling units/acre MRD, Duplex Multifamily 21 10 dwelling units/acre MRG, Garden Density Multifamily 34 16 dwelling units/acre MRM, Medium Density Multifamily 23 dwelling units/acre MRH, High Density Multifamily 8 40 dwelling units/acre Properties previously zoned for multifamily densities in the county are shown with the nearest Kent multifamily designations. However, the density in the nearest Kent zones is generally lower than the corresponding county zone. The area including the Meridian Valley Country Club which was zoned R4 in the county would be given a zoning of SR-4.5 in alternative 1. - Alternative 2 Meridian Valley Annexation Zoning and Comp Plan Amendment - AZ-97-1/CPA-97-1 August 25, 1997 Page 9 Alternative 2 encompass staffs' best recommendation on zoning in the Meridian Vallee annexation area based on information which has been discovered through our research. It generally reduces the number of potential multifamily dwelling units, but proposes a density which is consistent with the urban/suburban requirements of the GMA, and allows for a range of housing opportunities for existing and new Kent residents. It expands the commercial node around the intersection of 1=2nd Ave SE and SE 240th Street by incorporating one parcel surrounding the BP gas station on the northwest corner of the intersection, and four parcels located south of the existing office development along 112nd Ave SE. The northern parcel had a King County zoning of R48, while the four parcels on the south were zoned R18. This alternative proposes a zoning of MRD. Duplex Multifamily on the Wandering Creek Apartment Homes which were previously zoned R6 in the county. This site is developed at a density of approximately 9.5 units per acre which closet% corresponds with the density allowed under the MRD zoning district. Likewise, the Meridian Gardens Apartments, which were zoned R48 in the county, are shown with a proposed zoning of MRM, Medium Density Multifamily. This allows a maximum density of 23 units per acre which is the density at which the complex is currently developed. SR-8 zoning is proposed on 15.75 acres previously zoned R18 and R12 in the county. SR-8 zoning allows single family development on lots of a minimum of 4.000 square feet to a maximum density of 8.71 units per acre. This alternative also proposes a zoning of SR-1 on one parcel owned by King w_ County east of the commercial node located south of SE 240th, and a Puget Sound Energy substation located east of the commercial node located north of SE 240th Street. The breakdown of zonin, in alternative 2 is approximately as follows: Zone Acres Base Density CC, Community Commercial 17.5 N/A SR-1, Single Familv Residential 49.5 1 dwelling unit/acre SR-2, Single Familv Residential 27 2.18 dwelling units/acre SR-4.5, Single Familv Residential 686 4.53 dwelling units/acre SR-6, Single Family Residential 49.5 6.05 dwelling units/acre SR-8, Single Family Residential 15.5 8.71 dwelling units/acre MRD, Duplex Multifamily 35.5 10 dwelling units/acre MRG, Garden Density Multifamily 7 16 dwelling units/acre MRM, Medium Density Multifamily 3.5 23 dwelling units/acre Description of Land Use Plan Alternatives Staff has prepared two land use plan map alternatives which match the proposed zoning alternatives. Each land use plan alternative is designed to be consistent with its accompanying zoning alternative, so Zoning Alternative 1 would implement Land Use Plan Alternative 1. None of the land use map alternatives represents a radical departure from the existing Land Use Plan Map in the City's Comprehensive Plan. The main difference between these proposed alternatives and the existing plan map is that the existing plan map uses the County's land use designations, based on the policy direction provided by the City Council at the time the plan was adopted. The Meridian Vallev Annexation Zoning and Comp Plan Amendment - AZ-97-1,'CPA-97-1 August 25. 1997 Page 10 proposed alternatives use the same land use designations as are used in the existing city limits. These designations go into slightly more detail in terms of residential densities than do the County's designations. However, the overall land use pattern represented in these alternatives does not differ substantially from either the Citv's or the County's existing plan. The land use plan map alternatives can be seen as the long range policy, while zoning is the law currently in place. There can be more than one zoning designation under the corresponding land use plan map designation. For example, the areas with a proposed zoning of SR-4.5 and SR-6 have a corresponding land use plan map designation of SF-6. Property owners who have a zoning of SR-4.5 could apply for a future rezone to SR-6 without applying for a Comprehensive Plan Amendment. However, any rezone proposed with a higher density or different use than that allowed through the Comprehensive Plan Land Use Map would have to apply for a plan amendment as well. GMA limits Comprehensive Plan Amendments to once a year unless otherwise required by annexations. Maps for each alternative are attached. Alternative 1 Much of the area would be designated SF-6, which would be implemented by the SR-4.5 and SR-6 zoning designations shown on Zoning Alternative 1. The commercial area zoned CC, Community Commercial in Zoning Alternative 1 would have a land use plan map designation of C, Commercial. The proposed multifamily zoned areas around the commercial node with densities of 10-16 units per acre would be designated LDMF, Low Density Multifamily. while the areas with proposed zoning densities of MDMF, Medium Density Multifamily. The three areas with a proposed zoning of SR-1 in Zoning Alternative 1 would have a land use plan map designation of SF-1. Alternative 2 Alternative 2 is very similar to Alternative 1. Generally, the same areas designated as SF-6 in Alternative 1 are designated similarly in Alternative 2 with two exceptions. The Wandering Creek Apartment Homes would be designated as LDMF to reflect the proposed MRD zoning in Zoning Alternative 2 and what is built on the ground. One parcel just south of SE 240th Street across from the Wandering Creek development would be added to the SF-6 designation. This one lot is the Mackey property, and they have requested single family zoning in lieu of their previous R18 designation in the county. The lot is developed with a single residence. The parcels owned by King County and occupied by a Puget Sound Energy substation would be designated SF-1 to match the zoning as described above under Zoning Alternative 2. The areas recommended for SR-8 zoning as described under Zoning Alternative 2 would be given a land use plan map designation of SF-8. The expanded commercial node under Zoning Alternative 2 would be designated C in the Land Use Plan Map and the areas with proposed densities as described under Meridian Valley Annexation Zoning and Comp Plan Amendment - AZ-97-1/CPA-97-1 August 25, 199' Page 11 Land Use Plan Alternative 1 would be designed LDMF and MDMF. Finally, the two areas with a proposed zoning of SR-2 under Zoning Alternative 2 would be designated SF-1. Analvsis of Alternatives While Alternatives 1 for both zoning and land use reflect the previous designations in King County, these designations do not necessarily reflect existing constraints and development in the area. The property owned by King County south of SE 240th Street covers approximately 4.5 acres and will be used as a stormwater detention facility as a part of the current improvements to SE 240th Street: A large percentage of this site is encumbered by a wetland, and no portion of this site will be available for future development. A proposed zoning of MRM is inappropriate for this site because there is no potential for multifamily development. Likewise, the Puget Sound Energy substation is also encumbered by existing development and wetlands, and proposed zoning of MRD and SR-4.5 under Alternative 1 is inappropriate. Staff feels that the lowest single family residential density of SR-1 is most appropriate for these sites as reflected in zoning and land use Alternatives 2. Further, the Meridian Forest single family detached subdivision, located along SE 236th Place, was developed on property previously zoned by the county as R 12. This development, built within the last five or six years, should be zoned single family residential in the city to reflect its current status. In light of public comment and staffs' review of the potential impacts of new development under Zoning Alternative 1, staff feels that an expansion of the commercial node south along the east side of 132nd Ave and around the BP gas station on the northwest corner of the commercial node is warranted. There appears to be a need for more commercial development due to the population densities in the general area. However, too much commercial development would have the negative affect of overtaxing the already overutilized infrastructure in the vicinity. The expansion proposed under Alternatives 2 would allow for commercial growth, while limiting impacts to roads and storm facilities. Any new development will be required to mitigate for the expected impacts caused by its development. The City's Comprehensive Plan also contains policy language pertaining to residential density patterns. The plan outlines the following general policy: Provide in the land use plan adequate land and densities to accommodate both city and county housing targets with the Potential Annexation Area. Average net residential densities throughout the Potential Annexation Area should be at least four units per acre in order to adequately support urban services. (Policy LU-8.1) This policy, while encouraging single-family infill at urban densities, provides somewhat more flexibility in terms of plan densities throughout the City's PAA, particularly given that the plan contains areas for high density residential development in the downtown area and mixed use areas on the Valley Floor. Meridian Vallev Annexation Zoning and Comp Plan Amendment - AZ-97-1/CPA-97-1 Auuust 25, 1997 Pate 12 While Zoning Alternative 2 would reduce the amount of potential units in the Meridian Valley annexation area from the previous King County levels, it would still provide a density exceeding the four per acre required for urban services. While reducing the number of potential multifamily units, it expands opportunities for more single family development on a variety of lot sizes. A good amount of the potential multifamily development as shown under Zoning Alternative I would never be developed because of existing public facilities, and existing lower density development. Alternatives 2 reflects both what is likely to develop and what is already on the ground. For this reason, staff is recommending both Zoning Alternative 2 and Land Use Plan Map Alternative 2 for the Planning Board's approval. Staff Recommendation Staff recommends that the Land Use & Planning Board take the following actions: 1. Recommend to the City Council adoption of Land Use Plan Map Alternative 2 as an amendment to the Land Use Element of the City of Kent Comprehensive Plan. 2. Recommend to the City Council adoption of Zoning Alternative 2 as an amendment to the City's Official Zoning Map. MJ/tb:AZ97-1.MM2 cc: James P. Harris, Planning Director Fred Satterstrom, Planning Manager Kevin O'Neil, Senior Planner KEY TO ZONING DISTRICTS (Each zone is listed opposite the most similar zone in the other jurisdiction) Citv of Kent King County SR-1 Residential Agricultural R-1 Urban Residential I Dwelling Unit per Acre I Dwelling Unit per Acre SR-2 Sinele Family Residential NA 2.18 Dwelling Units per Acre SR-3 Single Family Residential NA 3.63 Dwelling Units per Acre SR-4.5 Single Family Residential R-4 Urban Residential 4.53 Dwelling Units per Acre 4 Dwelling Units per Acre SR-6 Single Family Residential R-6 Urban Residential 6.05 Dwelling Units per Acre 6 Dwelling Units per Acre SR-8 Sinele Familv Residential R-8 Urban Residential 8.71 Dwelling Units Per Acre 8 Dwelling Units per Acre MRD Duplex Multifamily Residential R-12 Urban Residential Approximately 10 Dwelling Units 12 Dwelling Units per Acre Per Acre MRG Garden Density Multifamily Residential R-18 Urban Residential . 16 Dwelling Units per Acre 18 Dwelling Units per Acre MRM Medium Density Multifamily Residential R-24 Urban Residential 23 Dwelling Units per Acre 24 Dwelling Units per Acre MRH High Density Multifamily Residential R-48 Urban Residential 40 Dwelling Units per Acre 48 Dwelling Units per Acre CC Community Commercial CB Community Business NCC Neighborhood Convenience Commercial NB Neighborhood Business O Professional and Office O Office N/A UR Urban Reserve 0.2 Dwelling Units per Acre For the purposes of this chart, "Dwelling Units" refers to principal dwelling units. Accessory - dwelling units and cluster housing, are not addressed in this definition chart, my a usasrdaci charC.wod MERIDIAN VALLEY ANNEXATION ZONING ALTERNATIVE 1 S R MRG s SR- 5 1 M C MRD — —R M H MR R i I f M M�R G G l SR Y 1� ,J a _.� 1L ry a, I if 247 _ s sF. 2nB STS IR 4o5 ' -I �r Esc uo n �T -- - SE 258 IF LEGEND SR 6 '`M;l f ANIll.7 6 Oi W1,ACRE AUGusT 25, 1997 CITY LIMITS MRD D1'I'I,IiY 411i IFIFAMILY 10 DU/ACRE h M� ZONING BOUNDARY MRG (;AH 1)FN I)F,`RI"1'Y MULTIFAMILY 16 DU;ACRF, Cc COMMUNITY COMM1IERI IAL MRM MCllll M DENSITY MULTIFAMILY 23 DU%ACRF SR 1 SINGLE FAMILY I Ul A( PC MRH lllcn PEN"'F1'Y MULTIFAMILY 40 DU/ACRE SR 4.5 SINGI.F FAMII,) I.;, W nrR[ ,„ II.,,.-. ' ,._,; ,.,,.r MERIDIAN VALLEY ANNEXATION ZONING ALTERNATIVE 2 --j SR 6- � s MR _ R mew _ SR SR - SR 2 s S Ra '-1MR MtD G _ of S 'IDA 4o5 .j 51 c2 5r SR �SoE _ 1 5F P9. <<5rtI_ — — _ cE 250 Sf - ---- -- -!E 259 PL q sr q LEGEND SR 4.5 IN'(;iI I ,vWL) 1 53 DU ACRE AUGUST 25, 1007 CITY LIMITS SR 6 �M,l.I I A%111,) (3.05 DU,/ACRE ZONING BOUNDARY SR 8 FINW I I',ANIM 9,71 DII/ACRE. CC COMMUNITY COMMEW I.v1 MRD I)I I'I I C v1111 IFANIILY 10 DI';ACRE 'I SR 1 SINGLE FAMH,ti I OI V PI MRG cv1nI N 107N�41I'Y N111I.TIFAnnIN Ir> DU/ACRE MERIDIAN VALLEY COMPREHENSIVE PLAN ALTERNATIVE I - _ EE 23V P_ E_- `di SE °^ LDMF s — --- -- MDMF F MDMF n I!=, LD M F IS[] LT _ n I 5F ST ei SF —( N S F � 1 I �E - i - I � 5F 257 r E 25' L IF 258 5i vi 5[ sa r a _ 259 P LEGEND AUGUST 25. 1997 CITY LIMITS LDMF IMN PFN�11I' MULTIFAMILY ... ZONING BOUNDARY MDMF ?IhDII'\t DENSITY MULTIFAMILY C COMMERCIAL SF 1 SINGLE FAMILY 1 1311 ACRE cP , . . , MERIDIAN VALLEY COMPREHENSIVE PLAN ALTERNATIVE 2 . .i SE 36 �L� 3 ' I LD-MF „ 9 MD SF SF �� MF e S F. 3 a1- ° SF, I F�l ISf n2IVl GL � � V Sv V 5t ' `Q p � — fiF 248 ST—. T / SF .I =� / 51 2=2 5T SF 1 S F SE 258 51 SF 25/ 11 - _ F L , P, - - ---.- �� 25a Sr F 2II I - c SE fl aL /k G LEGEND S e F 6 Vtll l 1 4111.1 DI',ACRE AUGUST 25, 199 CITY LIMITS SF��,{8 �INGII I A%I11,) 13 Ulu/ACRE ZONING BOUNDARY LDMF LDIti 11:N'I"TF Ml'1.9'I FA ILY C COMMERCIAL MDMF MFI)[11ki MULTIFAMILY SF 1 SINGLE FAMILY I 111' AI'RF SF 3 FAS111.'r Ill' ArrP1 CITY of L"L22 Jim White, Mayor Planning Department (206) 859-3390/FAX(206) 850-2544 James P. Harris, Planning Director LAND USE & PLANNING BOARD MINUTES Public Hearing August 25, 1997 The meeting of the Kent Land Use and Planning Board was called to order by Chair Steve Dowell at 7:00 p.m. on August 25, 1997, in Council Chambers of Kent City Hall. LAND USE & PLANNING BOARD MEMBERS PRESENT: Steve Dowell, Chair Brad Bell, Vice Chair Tom Brotherton Jerry Daman Ron Harmon David Malik Sharon Woodford PLANNING STAFF MEMBERS PRESENT: James Harris, Planning Director Fred Satterstrom, Planning Manager Kevin O'Neill, Senior Planner Matthews Jackson, Planner/GIS Coordinator Teresa Beener, Administrative Secretary APPROVAL OF MINUTES Board member Ron Harmon MOVED and Tom Brotherton SECONDED a motion to approve the July 28, 1997 minutes. The motion carried. ADDED ITEMS TO THE AGENDA None. COMMUNICATIONS None. NOTICE OF UPCOMING MEETINGS Planning Director Jim Harris explained that the September City Council Planning Committee meeting will consider the Downtown Strategic Action Plan and the changes to the Planned Unit _. Development Ordinance. The meeting will be held on Tuesday, September 16, 1997 at 4:00 p.m. in the City Council Chambers East. #AZ-97-1/#CPA-97-1 MERIDIAN VALLEYANNErATION ZONING _70 4th NVFNUF SOUTH ' KFNT WASHINGTON VR03'_-i Sl)�I TFI-FPHONF. '51i 450-1300 Land Use and Planning Board Minutes August 25, 1997 Page 2 #A -97-1 MERIDIAN VALLEY ANNEXATION ZONING - (M. Jackson) Planner Matthews Jackson explained that the City Council approved Ordinance No. 3344 on April 15, 1997 which annexed the Meridian Valley area into the City of Kent. The area is approximately 1.39 square miles in size and includes approximately 4,665 new residents. Mr. Jackson explained that the area is generally located east of 132nd Avenue SE to 148th Avenue SE and north of SE 256th Street to approximately SE 236th Place. Mr. Jackson explained that the area officially became a part of the City on July 1, 1997. At that time, the area was assigned an interim zoning of SR-2, single family residential 2.18 units per acre. Mr. Jackson explained that all unclassified newly annexed lands to the city are given an SR-2 designation regardless of the previous King County zoning. Mr. Jackson explained that the City has six months upon annexation to complete the zoning process. The 1990 Growth Management Act requires that a city's zoning and Comprehensive Plan land use map be consistent. Mr. Jackson explained that the Land Use and Planning Board will be considering both an amendment to Kent's official zoning map as well as the Comprehensive Plan land use map. Mr. Jackson explained that there will be a total of three public hearings. The first begins tonight before the Land Use and Planning Board. The Board will make a recommendation that will be forwarded to the City Council for their consideration. Two hearings will be held by the City Council, and by state law,these hearings must be held 30 days apart. The first Council hearing will occur in mid-September, while the second hearing will likely occur in mid to late October. Mr. Jackson explained that the majority of the area is developed single family residential detached residential units. He explained that the existing development in the area is fairly consistent with what the zoning was in King County prior to the annexation into Kent but there are some exceptions. In the City's Comprehensive Plan Land Use Element there is a potential annexation area. This area includes lands within the City's sphere of influence that will potentially be annexed but are currently outside of Kent corporate boundaries. The Meridian Valley area was included in the City's Comprehensive plan that was completed in 1995 so at that time staff took the appropriate applicable County zoning designations in the County's 1994 Comprehensive Plan and applied those to the Meridian Valley annexation area. The majority of the Meridian Valley area was given an Urban Residential land use designation(4-12 units per acre) under the County's Comprehensive Plan and Kent's existing Comprehensive Plan. Mr. Jackson explained that the area of multifamily development was given an Urban Residential land use designation of twelve plus units per acre and the commercial node was given a commercial designation. Mr. Jackson explained the differences between the County and the City's zoning designations. He explained that there was a key included in the staff report to compare the County's designations as to how they relate to the City's designation. #AZ-97-11#CPA-97-1,WERIDIANYALLEYANNEUTIONZONING Land Use and Planning Board Minutes August 25, 1997 Page 3 There are some key differences between the County and the City zoning. Mr. Jackson explained that the City's zoning is based on both a maximum density and a minimum lot size and the city's residential zoning designations are based on use. The areas that are zoned for single family are single family exclusively. Areas that are zoned for multifamily allows for both single family and multifamily development. In the County, residential development is not necessarily based on single family or multifamily development; rather, it is based on density. Attached units are allowed either through a conditional use process in some zones or they are principally permitted uses in others. In addition, there are no minimum lot sizes in the County; however, no lots of less than 2,500 square feet are allowed unless it is located within an attached development. The County also allows density bonuses based on providing a public benefit. Mr. Jackson explained that an example of a public benefit could be the inclusion of non-market or low income housing which would give a developer additional density above the base. There are also some minimum density requirements in the County which require a certain percentage of the base density to be developed. The City of Kent has neither a minimum density nor bonus density provision. Mr. Jackson explained that 72.5% of the residential units are single family detached, while multifamily represents about 27.5%within the annexation area. Mr. Jackson explained how staff determined the zoning alternatives. He explained that staff evaluated the previous County designations, current land uses, and public comments gathered through questionnaires from an open house held at Martin Sortin Elementary. Mr.Jackson explained that he received letters marked as Exhibit "A". 1. Pasko - supports the staff recommendation 2. Johnson- asked for consideration for different zoning 3. Galusha- asked to consider property for commercial development 4. Hebeler- zoning history and property value history Mr. Jackson explained that Alternative 1 tries to approximate the closest applicable City zoning to the previous King County zoning. He explained that the majority of the Meridian Valley Annexation Area is recommended for SR-4.5 which correlates to the previous County zoning of R-4. Alternative 1 maintains the same zoning boundaries designated with the most applicable City zoning based on the previous County zoning designations. Alternative 2 is staff s closest attempt at trying to zone the area to represent what is actually built on the ground,what is expected to be built, and what is consistent with the existing land use patterns. The majority of the site would be zoned SR-4.5 which would include the Meridian Valley Country Club and the surrounding area. Mr. Jackson outlined the staff recommended changes that took into consideration site constraints,current land uses,and property owner requests. Mr. Jackson explained that the Comprehensive Plan land use map designations are a long term land use policy while the zoning designations are the law. HAZ-97-110CPA-97-1,WERIDIANVALLEYANNEXATIONZONING Land Use and Planning Board Minutes August 25, 1997 Page 4 Board member Ron Harmon MOVED and Vice Chair Brad Bell SECONDED a motion to open the public hearing. Motion carried. Fred Lavering, 24430 140th Avenue SE. Mr. Fred Lavering lives in the Meridian Valley Annexation area and represents the Meridian Valley Maintenance Association which consists of over 400 property owners. Mr. Lavering explained that they supported the annexation into the City of Kent in hopes to eliminate the flooding in the area and to try to abolish the recent King County zoning changes to high density multifamily. Mr. Lavering supports the staff recommended Alternative 2 with a few exceptions. He does not support the proposed SR-8 designation. He commented that SR-8 does not seem compatible with the surrounding zoning of SR-4.5 and SR-1. He was also concerned with the MRD zoning designation at 132nd. He questioned why the MRD was on both sides of 132nd. He felt that 132nd was a significant road and it was not necessary for the zoning to be consistent on both sides. He also commented that the site designated for MRD had a significant wetland and that the MRD was inappropriate. Dee Swenson,24111 135th Avenue SE. Mr. Dee Swenson commented that it is a pleasure to work with the City of Kent as opposed to King County. He stated that he had attempted to work with the County but was not given any consideration. Mr. Swenson supports Mr. Lavering's comments. He suggested changing the SR-8 designation to an SR-6 zoning designation. Gerald Dulz, 13419 SE 240th. Mr. Gerald Dulz stated that he owns property that has a proposed zoning designation of SR-8. He stated that his property had originally been zoned for multifamily in the County. He asked the Board to consider his property for a zoning designation of MRG. Mr. Dulz stated that he was interested in developing a senior housing center. He commented that this type of development would have no significant impact on traffic and no impact on schools. He stated that if a senior housing development was not feasible then he would like to build condominiums. Board member Ron Harmon questioned what Mr. Dulz's previous zoning was in the County. Mr. Dulz explained that he had three separate zoning designations on his property R12, R18, and R24. Chair Steve Dowell questioned if any of his property was north of 240th. Mr. Dulz stated that all of his property was south of 240th. Board member Tom Brotherton questioned what the total size of his property was. Mr. Dulz stated that the total acreage is about four and three quarter acres. Mr. Brotherton commented that it was 9AZ-97-1/HCP.4-97-1,NERJDIAN VALLEYANNE,GITION ZONING Land Use and Planning Board Minutes August 25, 1997 Page 5 his understanding that the City Council is very much against any additional multifamily development on East Hill and questioned what benefit would this development have for the community. Mr. Dulz stated that he would like to give his assurance that there would not be any apartments built. He commented that he is against apartments himself. He would prefer to build a senior housing community or condominium homes. He commented that this type of development could help support the commercial node nearby. Mr. Harmon questioned that if Mr. Dulz had made an agreement with the adjacent property owners that he would not zone his property MRG,wouldn't his request go against that agreement. Mr. Dulz stated that MRG would be the best zoning designation for his property. Frank Wiemes, 13426 SE 240th Street. Mr. Frank Wiemes stated he owns the property just north of Mr. Dulz and supports Mr. Dulz's request for a higher density but feels that MRD would be sufficient. Mr. Wiemes commented that this location would be good for a senior housing project. Mr. Wiemes asked the Board to consider a higher density of MRD for his property. Jeff Chalfant, Barghausen Consulting Engineers, 18215 72nd Avenue S. Mr. Jeff Chalfant represents Bill Ruth and Jack Juan. Mr. Chalfant stated that his clients strongly oppose Alternative 2 and the proposed SR-8 zoning designation. He explained that his clients would like to preserve the previous County zoning of R18. He commented that the R18 zoning designation is an effective transition buffer between the commercial node at 240th and the single family residential area. He stated that current land use patterns in the area such as the commercial node support the higher density. Mr. Chalfant commented that the property in question in significantly restrained by low grade wetlands and development under the single family standards is not very practical. Craig Sears,2134 NW 204th,Shoreline,WA 98177. Mr. Craig Sears is a land use consultant and represents Finkbeiner Development. Mr. Sears explained that his client purchased approximately six acres in this area about three years ago. The property was zoned R18 by the County and they would like the property to maintain the MRG designation as shown in Alternative 1 for the entire parcel. Board member Sharon Woodford commented that Alternative 2 designates the property MRG. Mr. Sears remarked that the MRG designation does not include the Mackey property which the Finkbeiner company has an option on. Ms. Woodford questioned whether Mr. Sears would support Alternative 2 if the Mackey property was included in the MRG zoning. Mr. Sears stated that that would be acceptable. Mr. Brotherton questioned why Finkbeiner was requesting an MRG zoning designation if they want to build single family residents. Mr. Sears commented that his client would like to keep their options open. #AZ-97-I/#CPA-97-I,MERIDIAN VALLEY ANNE,YA77ON ZONING Land Use and Planning Board Minutes August 25, 1997 Page 6 George J. Burmeister, 13915 SE 241st Street. Mr. George Burmeister stated that he supports Mr. Lavering's position. Mr. Burmeister commented that he does not support increasing any densit}- higher than what is being recommended in Alternative 2. He supports the staff s recommendation. Pam Longston,23611 138th Avenue SE. Ms. Pam Longston commented that staff did a great job. She supports Mr. Lavering's suggestions. Jack Ottini, 14304 SE 256th Place. Mr. Jack Ottini commented that he supports the staff recommendation. Mr. Ottini stated that he was on the committee to annex into the City of Kent and commented that they had three main concerns for annexing into Kent: better police protection, road improvement and flooding problems, and the zoning problems. Mr. Ottini stated that there was a moratorium in King County for construction because of the flooding. He questioned whether the moratorium was still in effect. Mr. Ottini questioned what the City's stand was on wetlands. He questioned why the city was considering multifamily zoning designations if the city has a moratorium on new apartments. Mr. Ottini commented that the bus service in the area was not sufficient to support more new apartments nor were the schools capable of handling an increase in student population. Tom Sharp,24254143rd Avenue SE. Mr. Tom Sharp commented that he supports Alternative 2 with the exception of the SR-8 zoning designation. Mr. Sharp commented that he had lived in this area for 25 years and appreciates being a part of Kent. Mr. Sharp stated that he owns a few properties at 240th and 140th. A portion of his property is zoned SR-2. He commented that it is uneconomical for him to develop the property at only two units per acre. He asked the Board to consider changing the SR-2 zoning designations to SR-4.5. Vice Chair Bell questioned what Mr. Sharp's concern was regarding the SR-8 designation. Mr. Sharp stated that he felt that the SR-8 density was too high and that it was inconsistent for the area. He commented that the services are not there to support the SR-8 density. Dennis Hogan, 24307 129th Avenue SE. Mr. Dennis Hogan resides in the Meridian Valley Annexation area and represents the residents of the Chancellor Crest development. Mr. Hogan stated that residents supported the annexation in order to become a part of a government entity that would be more responsive to their concerns and objectives for the neighborhood. Mr. Hogan commented that the Chancellor Crest concerns center around the fact that apartments represent substantial increases in population, demand on services, and a direct impact on infrastructure in the surrounding communities. Mr. Hogan commented that he supports Alternative 2 with the exception that the Mackey property and the property owned by the Finkbeiner Corporation be designated single family residential. #AZ-97-1/#CPA-97-1,MERIDIAN VALLEY ANNEGITION ZONING Land Use and Planning Board Minutes August 25, 1997 Page 7 Mr. Harmon questioned how many residents were in the Chancellor Crest development. Mr. Hogan stated there were approximately 47 home owners. Katherine Gihm, 11914 Maplewood Avenue, Edmonds. Ms. Katherine Gihm owns property in the Meridian Valley annexation area. Ms. Gihm stated that her previous King County zoning designation was R24. She commented that she would prefer an MRG zoning designation rather than the recommended MRD. Pat Sitter, 14018 SE 238th Lane. Ms. Pat Sitter commented that gravel had been dumped in the drainage ditch near the Puget Sound Energy substation. She asked if the City could do something regarding this issue. Vice Chair Brad Bell MOVED and Brotherton SECONDED a motion to close the public hearing. Motion carried. (A five minute recess was taken). Mr. Jackson explained that the area being proposed for SR-8 zoning south of 240th originally was zoned at a much higher density in the County. He commented that there is definitely not a compatibility problem between an SR-8 and the SR-4.5 zone. Mr. Jackson explained that this is still a single family residential zone that allows for detached homes on a somewhat smaller lot. He explained that the Meridian Valley area contain a variety of uses which includes some condos, a PUD with attached homes, and existing multifamily developments. The SR-8 is a compatible use and is a compromise from multifamily zoning. Regarding the Wiemes property which was proposed for SR-8, Mr. Jackson explained that Mr. Wiemes brought in a preliminary sketch of duplex units built out at about six units per acre. Mr. Jackson explained that the SR-8 zoning designation would allow Mr. Wiemes to build out at a greater density but with single family detached units only. Mr. Jackson commented that retirement housing is allowed as a general conditional use in any residential zoning district in the city. He explained that Mr. Wiemes could apply for a retirement complex through the conditional use process regardless of the zoning designation and the density allowed is not tied to the underlying zoning designation. Mr. Jackson explained that the area proposed for SR-6 was zoned multifamily in the County and is currently being developed for single family homes. Mr. Jackson commented that the owner of the Mackey property indicated a desire to be zoned single family and unless the property owner comes forward with a different request staff maintains the recommendation for SR-4.5. Mr. Jackson explained that Alternative 2 greatly reduced the potential for multifamily development. He commented that the City as well as the County are required to establish housing targets as part of the Comprehensive Plan based on the projected growth rates. He explained that King County's 4AZ-97-1/#CPA-97-1 MERIDIAN VALLEYANNEYATION ZONING Land Use and Planning Board Minutes August 25, 1997 Page 8 projected growth for this area included approximately 370 to 400 new units. He stated that there is a need for some diverse housing in this area. Therefore, staff would continue to recommend the MRG on the parcel designated in Alternative 2. The Gihm property is proposed for MRD. The applicant stated that MRD was okay but would prefer an MRG designation. Mr. Jackson stated that staff stands by the original recommendation of MRD. Regarding the Sharp property, Mr. Jackson explained that there were two reasons this area was zoned different. One reason was the existing Bonneville right-of-way. The property was zoned R1(P) in the County. The(P) designated development restrictions and development standards that were going to be parcel specific for this area. Clustering was going to be required by the County in order to develop in this area and by doing so a developer would be eligible for density bonuses. Mr. Jackson stated that staff did not have a problem with zoning this area SR-4.5. Planning Director Jim Harris commented that any King County moratorium ended on July 1, 1997 when this area became a part of the City of Kent. Mr. Harris stated that the City does not have a moratorium on multifamily development. He explained that the City has a wetlands policy. He stated that wetlands are dealt with at the time of development. Mr. Jackson commented that wetlands are protected by a 25 or 50 foot buffer, depending on the class, and typically would go into a separate track that is protected from development. He stated that the City's policy is a no net loss of wetlands. Mr. Jackson commented that the City is aware of the current storm water issues in the area. He stated that this is not uncommon in areas that have been annexed from King County. In some cases, developers will be required to make improvements where deficiencies exist. Mr. Jackson explained that future development will have to provide on site and above ground detention and storage for a certain duration of storm. He commented that these are very tough standards to meet but a developer will need to address all of these issues prior to receiving approval for a development. Chair Steve Dowell commented that there was a lot of discussion regarding existing flooding problems. Mr. Dowell questioned whether there were any additional plans for this area that was not discussed tonight. Mr. Jackson stated that there has been discussions regarding the flooding north of 240th at 132nd. He commented that this will be an expensive fix. He stated that the County will continue with the 240th Street expansion and there will be some relief when this project is complete. Chair Dowell questioned the SR-2 zoning designation in the northeast comer of the annexation area. Mr. Jackson explained that the County had split the zoning on this particular parcel. The front portion was zoned for SR-4.5 and the back for SR-1. The staff recommended an SR-2 zoning designation as a compromise between the two zoning designations. Mr. Jackson commented that staff would not have a problem with an SR-4.5 designation. #AZ-97-I/4CPA-97-I.MERIDIAN VALLEY ANNE.GiTION ZONING Land Use and Planning Board Minutes August 25, 1997 Page 9 Dowell questioned whether the SR-6 zoning designation at the north end was consistent with current development. Mr. Jackson explained that this area is undeveloped. He explained that the City's recommendation was consistent with the previous County zoning. Mr. Jackson was unclear as to why the County had zoned these parcels at a slightly higher density. He stated that either SR-6 or SR-4.5 would be applicable. The difference between the two zones is not significant and the SR-6 is consistent with the previous County designation. Board member Tom Brotherton questioned the MRD located south of the commercial center. Mr. Jackson explained that this area had been zoned R18 in the County. The MRD designation would take away half the density and the ability to develop attached units beyond duplexes. He stated that the MRD is a good compromise. Mr. Harmon questioned whether an MRD designation would be more appropriate where the MRG abuts the SR-4.5. Mr. Jackson commented that they are both residential districts and not inherently incompatible. He stated that the MRG designation was the only opportunity for new multifamily development in the area. Mr. Jackson commented that the City requires multifamily design review for any new multifamily development. The design review process tries to integrate new development into existing neighborhoods. Mr. Harmon questioned whether an MRD designation would be more appropriate. Mr. Jackson stated that under the proposed land use alternatives all of the areas that are proposed for zoning of MRD or MRG would have a low density multifamily designation. Therefore,this would allow those properties that are designated as MRD to apply for a rezone to MRG without going through a future Comprehensive Plan amendment process. Mr. Brotherton stated that since the Finkbeiner Corporation commented that they were interested in single family development and comments from citizens in the area were basically against any new multifamily development, he suggested designating this area SR-8. Mr. Harris commented that the County had zoned this area at nearly twice the proposed density. He stated that there needs to be a place for apartment dwellers. The recommendation provides housing opportunities for all different individuals. Board member Ron Harmon MOVED and David Malik SECONDED a motion to approve the proposed Meridian Valley Annexation Zoning #AZ-97-1 and Comprehensive Plan Amendment #CPA-97-1 Alternative 2 as outlined in the August 25th staff report. Mr. Harmon suggested changing the following designations: the area designated as SR-2 to SR-4.5, the undeveloped area designated as SR-6 to SR-4.5, and the area designated for MRG to MRD. Mr. Brotherton stated that in general he supports Mr. Harmon's changes. Mr. Brotherton stated that because a retirement community is allowed through a conditional use permit he supports the staff s original recommendation of SR-8. MAZ-97-1/#CPA-97-1 MERIDIAN VALLEYANNEIC477ONZONING Land Use and Planning Board Minutes August 25, 1997 Page 10 Vice Chair Brad Bell commented that Mr. Jackson did an excellent job. He does not support Mr. Harmon's suggestions except to change the SR-2 to SR-4.5. Mr. Harmon commented that the MRD could be rezoned to MRG and asked if Mr. Bell still had any reservations about the MRD. Mr. Bell stated that he does not support changing the MRG designation. Mr. Harmon stated that it would be fair to leave the SR-6. Mr. Bell commented that he strongly supports the staffs attempt to come to a fair and equitable compromise and supports the staff recommendation. Vice Chair Bell MOVED to amend the motion to approve staff recommended Alternative 2 changing the SR-2 zoning designations to SR-4.5. Mr. Brotherton SECONDED the motion. Motion carried. Mr. Brotherton MOVED to amend the motion to approve staff recommended Alternative 2 changing the MRG designation to MRD. Mr. Harmon SECONDED the motion. Motion carried. Mr. Harmon called for the question. The motion was to approve the proposed Meridian Valley Annexation Zoning #AZ-97-1 and Comprehensive Plan Amendment #CPA-97-1 Alternative 2 as outlined in the August 25th staff report changing the SR-2 zoning designations to SR-4.5 and the MRG zoning designation to MRD. The motion carried. Mr. Harmon MOVED and Brotherton SECONDED a motion to adjourn. Motion carried. The meeting adjourned at 9:25 p.m. Respectfully Submitted, James P. Harris Secretary U ADOCILAND USEIMIN UTESTB MTG8.25 #AZ-97-1/#CPA-97-1,WERIDIAN VALLEYANNEYATION ZONING Kent City Council Minutes September 16, 1997 COMMUNITY services support. Jennifer Thunev, Elderhealth DEVELOPMENT Connection, thanked the Council for considering BLOCK GRANT their request for funding. Arthur Lee, Executive Director of the Emergency Feeding Program, expressed appreciation for the "City's continued funding and support. There were no comments and HOUSER MOVED to close the public hearing. Orr seconded and the motion carried. ORR MOVED to adopt the 1998 CDBG Program, including the contingency plans for estimated entitlement changes, as recommended by the Planning Committee. Woods seconded. Orr thanked the staff, Human Services Commission and agencies who participate and provide services. Her motion then carried. ANNEXATION (PUBLIC HEARINGS - ITEM 2B) ZONING Meridian Valleyo o and Area Comprehensive Plan Amendments.. AZ-97-1 and CPA-97-1. On August 25, 1997, a Land Use and Planning Board held a public hearing on both the Annexation Zoning Map Amendments and the Comprehensive Plan Amendments for the Meridian Valley area. This is the first of two public hearings to be held by the City Council pursuant to State law. The second hearing is scheduled for October 21, 1997. Matt Jackson of the Planning Department explained that when this area was annexed to the City, it was assigned an interim zoning of SR 2, which allows for single family development on about two units per acre. He noted that staff presented the Land Use and Planning Board with two zoning alternatives and two land use plan alternatives, and that considerable public comment was received. Jackson noted that two pieces of additional correspondence were received, one from Gerald Dulz requesting MRG for his property and one from Barghausen Consulting Engineers representing Bill Ruth and Jack Guinn who request MRG zoning for their property. HOUSER MOVED to make the corres- pondence a part of the public record. Woods seconded and the motion carried. Later in the meeting, ORR MOVED that a letter from the Haggard Law Office be made a part of the record. Johnson seconded and the motion carried. 7 Kent City Council Minutes September 16, 1997 _ ANNEXATION Jackson displayed a map showing the proposed ZONING zoning and noted that the majority of the annexation is recommended for SR 4.5, single family residential with about 4.53 units per acre density. He noted that this includes both the Meridian Valley Country Club, the subdivisions abutting it on all sides, and an area extending south of 240th. He explained that most of this property was zoned R4 in the County, which is a density of four units per acre, and is the closest match with the City's. Jackson said that there is an area which was zoned for approxi- mately one unit per acre in the County that is also shown on the map as SR 4.5, and a small area which was changed from a lower single family to a little higher density single family, and the Board felt that there was no significant dif- ference between the properties located in those two areas and the properties that they are located next to with proposed zoning of SR 4. 51 I noting that they felt it should be consistent. k He said the area with the lowest density is a large lot located in the southeast corner of the annexation and an area in the northeast side of the annexation which are encumbered by steep slopes, and that the Board recommended SR 1 zoning for them, allowing for single family residential one unit per acre. Jackson noted that there is commercial develop- ment. at the intersection of 132nd Avenue S.E. and S.E. 240th Street, and that the Board recommends keeping Community Commercial there. It was .zoned Neighborhood Business by the County, and Jackson noted that the one difference is that the Board recommends extension of the commercial zoning to include four parcels south along 132nd Avenue S.E. which was formerly multi-family (R 18) in i the County and extend it to a lot which is being used as a day care which also had multi family zoning in the County, and a lot which surrounds the existing BP gas station which had an R 48 designation which is shown in the alternative as Commercial. He noted that Wandering Creek Apartments and several parcels south and east of it are recommended for MRD which is duplex multi-family. _. He said it is about 10 units per acre density and that it allows for a single family house on a I 1 Kent City Council Minutes September 16, 1997 ANNEXATION minimum lot of 5,700 sq. ft. or a duplex on a lot ZONING of 8,500 sq. ft. He said that an existing apartment complex is proposed for MRM zoning, multi-family at 23 units per acre, which is built at 23 per acre. He noted that there are two parcels shown with an SR 1 recommendation, one of which is owned by King County and will be used as a detention facility. He pointed out the Puget Sound Energy substation which has no development potential. He said that the area which sur- rounds it, Mr. Dulz's property, and another area is recommended for SR 8 which is a good transi- tion from the higher intensity development around the commercial node. He said the general theme is to maintain a density which is urban in nature but provides for more opportunities for single family housing. Jackson explained that land use is the long range vision, and that it allows for some opportunities for rezones. He displayed a map and pointed out the area designations and recommendations. Dennis Hogan, 24307 129th Avenue in Chancellor Crest, said the people in the neighborhood request that the areas held by Finkbeiner Development and an adjacent area be held to SR 6. He said their feelings are focused on services, revenues to the City, schools and quality of life. He said the higher the density, the lower the revenues per person in the higher density areas. He also requested that the Council consider using a portion of the property for a jneighborhood park, and noted that there are no safe streets in the area. Mayor White noted that the public hearing is open. poll Mackey, 12859 S.E. 240th, said their property was zoned for apartments when it was in the county, but that the recommended zoning has lowered the value of the property. She requested that their property be rezoned back to MRG which is what is was when it was part of the county. Frank Wiemes, 13426 S.E. 240th, said his property was zoned R 12 with duplexes, and that it has been down zoned to R 8. He asked the Council to " review this and split the difference and zone his . property MRD or MRG. Jim Olive. 24331 129th S.E. , Chancellor Crest, urged the Council to 9 Kent City Council Minutes September 16, 1997 ANNEXATION consider SR 6 zoning and to consider another ZONING street entering the location. He stated that children in Kent schools are transferred from one to another because they are full, and said more parks are needed. Mayor White noted for Olive that the City is looking into lighting the fields at Kent Commons to increase usage. Upon a question from Fred Villaflor, 24323 129th Avenue S.E. , Chancellors Crest, it was clarified that the detention facility mentioned earlier is for storm water. Scott Hytrek, 24224 129th Avenue S.E. , voiced concern about densities, traffic, schools, property values, and storm drainage, and suggested that density be limited to SR 6. He also spoke in favor of a neighbor- hood park. Mike Levy, Attorney, 9403 44th Avenue SW, Seattle, representing William Finkbiener, said that Finkbiener is purchasing the Mackey property and owns other property in the area, all of which were multi-family. He said the recom- mendation is to lower the densities, and that he believes the Planning Board has made an error.He said both the Meridian Valley and Chancellor Crest communities seem to be opposed to multi- family, and wondered why. He said if there is any multi-family, the access would be through 240th and not through Chancellor Crest. He said reducing the zoning to duplex is an error, as duplexes are not built or sold today. He pointed out that the Soos Creek Community Plan was passed by the County in 1991 with public input, and that in 1994-95 after public input the Comp Plan was adopted. He said that the City's Planning staff recommended the area, with the exception of the Mackey property, for multi-family MRG, and that the Potential Annexation Area also recommended MRG. He urged the Council to return the zoning to MRG. Gary Clusserath, a resident of Chancellor Crest, noted that he had lived in an apartment in the area and that crimes occurred there regularly. He asked the Council to take that into considera- tion. Tudor Gherle, 12815 S.E. 240th, Chancellor Crest, requested that he be allowed to make an entrance on 241st, as he is considering subdivid- ing the lot and building a new house. He noted that he would be short approximately 1000 sq. ft. Rick Bowles, 24034 129th Court S.E. , Chancellor 10 Kent City Council Minutes September 16, i997 ANNEXATION Crest, agreed with most of his neighbors in ZONING regard to keeping development down and building a park. Dee Swenson, 24111 135th Avenue S.E. , Meridian Valley, spoke in opposition to apart- ments in the area and said the zoning should be R 6 or SR 4, and asked for a transition area. Will Kelly, 24332 129th Avenue S.E. , Chancellor Crest, asked that the zoning be SR 6. He noted that nice people live in apartments, but that apartments affect schools, crime rate, the neighborhood and the city. Jody Charlton, 24103 135th Avenue S.E. , Meridian valley, was opposed to apartments, stating that they will lower property values, increase her concern for safety, increase drainage and flooding, and increase traffic. She urged the Council to keep single family zoning. Martin Durkan. Jr. , 22401 Sweeney Road, Maple Valley, representing the Finkbiener Company, noted that currently the City. of Kent is approximately 53t multi-family and 42t residen- tial. He said the area being discussed tonight is 72.5$ residential and 27.5$ multi-family. He said that Kent's. Comprehensive Plan wants to ensure an equitable distribution of housing throughout the community and region,, and wants to promote a wide range of housing to meet the needs of the diverse population and insure this housing is available throughout the community for people of all income levels and special needs. He said that a decision was made to zone this property, multi family to serve as a buffer to the commer- cial development. He said that substantial funds were put into drainage in the area and substan- tial infrastructure is being built there now, based on the proposed densities that were on the land. He opined that multi family should go in the area, noting that bus lines and infrastruc- ture are there. He suggested working out a compromise. Bill Ruth, 12410 S.E. 248th, owner of properties north of the shopping center on the east side of 132nd, said that he and his partner believed they could develop the property into a multi family project with a density of R 18. He said the Planning Board's recommendation is that it be down zoned to R 8, which dictates a narrow lot. He noted that there are wetlands and a creek, and 11 Kent City Council Minutes September 16, 1997 ANNEXATION proposed to develop the property consistent with ZONING the 1995 Comp Plan. He said the zoning should be MRG and that they would limit the density to 48 units. He provided copies of a letter from Joel Haggard offering to meet with staff to go over the details. Susan Olive, 24331 129th Avenue S.E. , Chancellor Crest, said she would like zoning of SR 6, and was opposed to apartments being built in the area. Bud Hebeler, 24600 140th Avenue S.E. , Meridian Valley, said that the communities in the area were unhappy that the County had ignored their comments, and noted that they were required to invest large sums to improve the Meridian Valley tributary. He said that most people are opposed to higher density housing. Holly Cochran, 12808 S.E. 243 St. , said it is exciting to have a voice in this, and urged the Council to keep the property behind theirs zoned for single family. June Moody, 12824 S.E. 243, Chancellor Crest, voiced concern about traffic, the safety of children, school population, and parks, and asked for R 6 zoning. Pelly Chinn, 12834 S.E. 243, Chancellor Crest, reiterated the concerns of his neighbors in regard to SR 6 zoning and the need for another park. Ethel Marshall, 24324 129th Avenue, Chancellor Crest, spoke against apartments due to crime and lower property values. She voiced concern about school capacity and boundaries. Wayne Thurinaer, 858 1st Avenue North, said that apartments often change ownership, construction is not always adequate, maintenance is not always done, and that there are no warranties longer than a year. He said he would like to see a standard imposed ensuring that a developer who makes an investment in this community is obligated longer than one year. Dave Scholzen, 24216 129th Avenue S.E. , noted that he is concerned about property values regarding the Finkbiener property, the Mackey property, and a third development along 132nd. He said he would rather have a buffer of homes and trees than a buffer of apartments and condominiums. He said that he would like SR 6 zoning, that 132nd and 240th are packed during rush hour and that apartments would make it - worse, that development will increase flooding I 12 Kent City Council Minutes September 16 , 1997 ANNEXATION problems, and that a park is needed. Dave ZONING Lindgren, 12800 S.E. 241st, Chancellor Crest, said he is concerned with crime and requested zoning of R 6. Fred Lavering, 24430 140th Avenue S.E. , Meridian Valley, agreed with the comments made by Chancellor Crest residents, and pointed out that there has only been one speaker who lives in the area in favor of higher density. He said that all of the property which would be given higher density drains into a creek and that flooding will result. Michelle Gross, 12841 S.E. 242nd Court, Chancellor Crest, said she would like single family zoning and noted that there has been crime in the area involving an apartment complex nearby. She said that Finkbiener had promoted single family homes, but is now talking about apartments. Dan Deaver, 24114 129th Avenue, Chancellor Crest, said their neighborhood is unique and that higher density housing behind them would destroy it. He urged that the zoning be SR 6. Fred Anderson, 13462 S.E. 242 St. , Meridian Valley, noted that there are many apartments in the area, that additional high density housing would affect flooding, that there is a negative impact on schools, and that the issue is quality of life. Michael D. Atl.ey, 24121 135th Avenue S.E. , Meridian Valley, agreed that flooding would be affected by multi family housing, and that multi family would change the feeling of security that presently exists. Mark Deno, 24310 129th Avenue S.E. , Chancellor Crest, said his main concern. is the safety of children and noted that traffic in the area is dangerous. He also noted that many of the people in attendance tonight were active in annexation efforts because they would have better representation by the City of Kent. He asked that the quality of education be upheld and that the zoning be SR 6. George Burmeister, 13915 S.E. 241 St. , disagreed that duplexes are not a good investment and disagreed with the percentage of apartments in Kent quoted by Mr. Durkan. He said it is true that apart- 3 ments comprise 27.5% of this area, but that in the greater area there are many more apartments, and that there already is diverse housing in the area and he would not want to see it increased. 13 Kent City Council Minutes September 16, 1997 ANNEXATION He also said that the Planning Commission has ZONING made a compromise when they zoned R 8 and that it should be 4.5 or 6. Mike Lew, said that the place for apartments is near commercial areas, so that seniors can walk to the stores. He said that apartment builders and owners want to maintain a high quality complex in order to maintain property values and rents. He said that if the area is single family, traffic will come through Chancellor Crest, and if it is multi family it will enter from 240th and not be connected to Chancellor Crest. He said there must be places for people who work in Kent and cannot afford a $250, 000 house. Dennis Hogan, said that residents are not against anyone who lives in apartments, and that their concerns are with crowded schools. He said that at a ratio of renters to home owners, it takes ten to eleven apartments to equal the tax contri- bution of one single family home, but that all residents get the same level and quality of services, resulting in a 10 times ratio of what a single family home owner has to pay compared to what an apartment dweller pays. He said any more high density apartments or developments in that area would dilute the services, the quality of service and the revenue that the city has coming to it. He agreed that Kent already exceeds diversity requirements, and infrastructure would be overloaded. Ken Hartwigson, 12813 S.E. 241st, Chancellor Crest, said he is concerned about safety, noting that cars have been stolen and broken into numerous times. He said he supports SR 6 and feels a park would help the children. John Montecrarv, 24029 129th Court S.E. , shared the concerns of the neighbors and urged the Council to limit the density. Fred Anderson said there is already high density housing around the commercial area. There were no further comments and HOUSER MOVED to close the public hearing. Epperly seconded and the motion carried. Mayor White reminded the audience that a second hearing is scheduled for October 21, 1997, at which time new and additional information will be taken. 14 wrro.,..... . ....._......._ .... ........... CONSENT CALENDAR 3 . City Council Action: Councilmember moves, Councilmember seconds that Consent Calendar Items A through O be approved. Discussion Action L�� 3A. Approval of Minutes. Approval of the minutes of the workshop of October 7, 1997, and the regular Council meeting of October 7 , 1997 . 3B. AyRroval of Bills. Approval of payment of the bills received through September 30 and paid on September 30, 1997, after auditing by the Operations Committee on October 7, 1997 . Approval of checks issued for vouchers: Date Check Numbers Amount 9/16/97 189898-190145 $ 770, 673 . 13 9/30/97 190146-190533 1, 531, 885. 91 $2, 302 , 559. 04 Approval of checks issued for payroll for September 16 through September 30, 1997, and paid on October 3 , 1997 : Date Check Numbers Amount 10/3/97 Checks 222847-223203 $ 264, 560. 35 10/3/97 Advices 50340-50889 701,878 .48 $ 966,438 .83 Council Agenda Item No. 3 A-B Kent, Washington October 7, 1997 Regular meeting of the Kent City Council was called to order at 7 : 00 p.m. by Mayor White. Present: Councilmembers Bennett, Clark, Epperly, Houser, Johnson, Orr and Woods, operations Director/Chief of Staff McFall, City Attorney Lubovich, Police Chief Crawford, Assistant Fire Chief Aldridge, Public Works Director Wickstrom, Planning Director Harris, Parks Director Hodgson, Finance Director Miller, and Acting Information Services Director Mulholland. Approximately 85 people were at the meeting. The flag salute was led by Boy Scout Troop 237 from Totem Junior High. PUBLIC Employee of the Month. Mayor White announced COMMUNICATIONS that Jan Banister, his Executive Assistant, has been selected as Employee of the Month for October. He noted that Ms. Banister performs complex department-wide administrative support and makes time to serve on various City programs. He added that her ability to remain calm under stressful conditions is a true example of her character. Council President Houser thanked Ms. Banister for her help in keeping the Council on track. The Mayor then presented her with the Employee of the Month plaque. Fire Prevention Week. Mayor White read a pro- clamation declaring the week of October 5-11, 1597 as Fire Prevention Week in the City of Kent. He noted that this year's theme, "Know When To Go: React Fast To Fire! " emphasizes the impor- tance of escape planning at home and in public settings, and urged all citizens to participate in fire prevention activities at home, work, and school. The proclamation was presented to Assistant Fire Chief Aldridge. CONSENT HOUSER MOVED that Consent Calendar Items A CALENDAR through 0 be approved. Orr seconded and the motion carried. MINUTES (CONSENT CALENDAR - ITEM 3A) Approval of Minutes. APPROVAL of the minutes of the workshop of August 19, 1997 , and the regular Council meeting of September 16, 1997. HEALTH & (CONSENT CALENDAR - ITEM 3L) SANITATION Benson Short Plat Sanitary Severs. ACCEPT the bill of sale submitted by Hardeep Singh for con- tinuous operation and maintenance of 1, 033 feet of sanitary sewer line, and release of bonds after the expiration period, as recommended by the Public Works Director. The project is located at S.E. 244th Street, east of Benson Highway. 1 Kent City Council Minutes October 7 , 1997 _.. HEALTH & (CONSENT CALENDAR - ITEM 3M) SANITATION Plat of South Bend. ACCEPT the bill of sale submitted by Pacific Industries, Inc. for con- tinuous operation and maintenance of 532 feet of watermain improvements, 695 feet of sanitary sewers, 1, 320 feet of street improvements and 11021 feet of storm sewers, and release of bonds after the expiration period, as recommended by the Public Works Director. The project is located at SE 270th Street & 116th Avenue SE. (CONSENT CALENDAR - ITEM 3N) Kent Assisted Living. ACCEPT the bill of sale submitted by Westmont, Inc. for continuous operation and maintenance of 336 feet of water- main and 171 feet of storm sewers, and release of bonds after the expiration period, as recommended by the Public Works Director. The project is located at 112 Kennebeck Avenue North. WATER (BIDS - ITEM 5A) S. 262nd Street Water Main Improvements. The bid opening for this project was held on October 2nd with seven bids received. The low bid was sub- mitted by James Guess Construction in the amount of $92 , 179 . 68 . The Engineer's estimate was $115,227 . 01. This project consists of replacing an existing smaller watermain which has been leaking and has been a long maintenance problem. The Public Works Director recommends that the contract be awarded to James Guess Construction. CLARK MOVED that the South 262nd Street Watermain Improvements contract be awarded to James Guess Construction for the bid amount of $92 , 179 . 68 . Woods seconded and the motion carried. SEWER (CONSENT CALENDAR - ITEM 3G) Sever Reimbursement from Latecomers. AUTHORIZATION of a budget change of funds from the sewer connection charges receipted October 24, 1996, in the amount of $2,492 . 14 to be equally split and transferred to the Public Safety Bond expenditure accounts for both Fire and Police. During the construction of the East Hill Fire Station/Headquarters/Training Center facility, a 2 .,.. ... . _...� _.._ ....._ _ _ .....,. _.. ... _ .....1._. .. .._ .......... w, Kent City Council Minutes October 7 , 1997 SEWER sewer project was funded in this immediate area. The understanding was that monies would be coming in for "latecomers" onto the sewer system and these funds were to be split equally between Police and Fire. These funds are being receipted in as revenue when property owners develop their land, which happens very sporadically. Once the fees are collected as revenue, a "budget change" is required to transfer to expenditure accounts. TRAFFIC CONTROL (CONSENT CALENDAR - ITEM 3E) Speed Limit Revisions on Designated Streets. ADOPTION of Resolution No. 1497 repealing Resolution No. 1406, and establishing speed limits revisions on certain designated streets, as recommended by the Public Works Committee. STREET (PUBLIC HEARINGS - ITEM 2A) VACATION S 238th St. Street Vacation STV-97-1. This date has been set to consider an application to vacate a portion of South 238th Street, as referenced in Resolution No. 1496, and as shown on the accom- panying map and discussed in the staff report. Planning Director Harris pointed the area out on a map and noted that the applicants have re- quested this street vacation in order to expand their building. Mayor White opened the public hearing. There were no comments from the audience, and WOODS MOVED to close the public hearing. Orr seconded and the motion carried. ORR MOVED to approve the Planning Department' s recommendation of approval with conditions on an application to vacate a portion of South 238th Street, as referenced in Resolution No. 1496, and to direct the City Attorney to prepare the necessary ordinance upon compliance with the conditions of approval. Woods seconded and the motion carried. (CONSENT CALENDAR - ITEM 3D) S. 238th St. Street Vacation Funds. AUTHORIZATION to deposit any monies received as compensation for S. 238th St. street vacation into the School Pedestrian Walkway Fund .(R36) , as recommended by the Public Works Committee. This street vacation was approved by the Council after a public hearing this date. 3 Kent City Council Minutes October 7 , 1997 �. ANNEXATION (PUBLIC HEARINGS - ITEM 2B) ZONING Dal Mar Annexation Area Initial Zoning and Comprehensive Plan Amendments AZ-97-2 and CPA-97-2. On September 22 , 1997 , the Land Use and Planning Board held a public hearing on both the annexation zoning map amendments and the Comprehensive Plan amendments for the Del Mar Annexation area. This is the first of two public hearings to be held by the City Council pursuant to State law; the second hearing is scheduled for November 18, 1997 . Planner Matt Jackson explained that staff brought two alternatives to the Board, that there was considerable public testimony at their hearing, and that at the conclusion of the hearing the Board made its recommendation with one more revision as outlined in the memo dated October 7, 1997 . He showed the location on a map and pointed out the areas recommended for SR6, SR4 . 51 GC, and MRM zoning. He noted that there are several existing multi-family developments in the area and explained that they tried to zone the property to what is built in order to be consis- tent. He added that there is also a mobile home park which is recommended for MHP zoning. Jackson noted that there is an area set aside for open space which is recommended for the lowest density of SR1. He said there is an existing Circle K store which is recommended for Neighborhood Convenience Commercial and an exist- ing office complex and a lot north of it which is recommended for Professional and Office zoning. He explained that the reason for adding the additional lot into the office zoning is that the owner of the existing office project requested in writing that it be expanded to the northern lot for additional parking. Jackson displayed the Land Use Plan map and noted that a large percentage of the area is recom- mended for SF6. He noted that the commercial area, the lot recommended for Neighborhood Convenience Commercial and the Office zoning is recommended for Commercial land use designation. He said the mobile home park has a separate mobile home park designation and the existing multi-family developments would be given a medium density multi-family land use designation, and the one lot restricted for new development is shown for SF1 to reflect its encumbrances with the permanent open space status. 4 Kent City Council Minutes October 7, 1997 ANNEXATION Upon Houser' s question, Jackson noted that the ZONING open space area is approximately 4.5 acres and that there are wetlands in the area. He clari- fied for Clark that there is a gradual slope and that there is no road leading into the area. Mayor White opened the public hearing. Mel Kleweno, 601 S. 227th, #307 North, Des Moines, said he represents and is a partial property owner of approximately 36 acres within this area. He pointed out the location, noting that there are several apartments in the area, and said the property should be zoned as potential apartment. He said it meets all criteria for apartment zoning and that it is at least half wetlands. He said that in order to utilize the property for residential, a road would be necessary, for which there is adequate width and access. He added that water and sewer is available. He urged the Council to consider medium density potential for the property, and if not, then the highest under single family. There were no further comments from the audience and HOUSER MOVED to close the public hearing. Woods seconded and the motion carried. COMPREHENSION (CONSENT CALENDAR - ITEM 3F) PLAN Comprehensive Plan Amendments Declaration of Emergency (Meridian Valley and Del Mar Annexations) . ADOPTION of Resolution No. 1498 declaring an emergency in order to make amend- ments to the Comprehensive Plan other than once a year, due to the Meridian Valley and Del Mar annexations, as recommended by the Planning Committee. PLAT (CONSENT CALENDAR - ITEM 3K) Greenfield Park Final Plat FSU-97-9. APPROVAL of the Greenfield Park Final Plat and authorization for the Mayor to sign the final plat mylar. The Greenfield Park preliminary subdivision was approved by King County in September 1996. Upon annexation of the Del Mar area, the final plat came under Kent' s jurisdiction. This plat is 6. 65 acres, consists of 27 lots, and is located west of 28th Avenue South and north of South 270th Street. According to the interlocal agree- ment between the City of Kent and King County, this plat has been forwarded to the City for its approval. 5 Kent City Council Minutes October 7 , 1997 INFORMATION (CONSENT CALENDAR - ITEM 30) SERVICES ;TVA Land use and Permit Information System Contract. AUTHORIZATION for the Mayor to sign the KIVA Land Use and Permit System Contract. On March 19, the operations Committee approved the purchase of a permitting and land use infor- mation software system from KIVA Corporation, subject to approval of the final contract language by the City Attorney. After some time, the software vendor and the City have finalized all contract terms and the agreement is ready for the Mayor' s signature. GOLF COURSE (OTHER BUSINESS - ITEM 4A) Golf Course Management Proposals. The City conducted a Request for Proposal process to determine the golf management for the Riverbend Golf Course Complex beginning January 1, 1998 . Two companies have been selected as finalists: SSMD Enterprises and Golf Resources Northwest (GRI) . Staff has provided information from both companies to Council, and both companies made presentations at a recent Council workshop. Upon a question from Clark, Mr. Hagen of GRI stated that they currently maintain three golf courses. He noted for Orr that they could offer a discount to city residents, although that is not projected in their proposal and is negotia- ble. Johnson asked how GRI would propose to increase food and beverage services by nearly $100, 000 in one year, and Hagen responded that it would come from rounds of golf, and added that hours could be extended. He noted that they have extended food and beverage service on the golf course using two beverage carts during the peak season, and said they plan to use the snack bar that is on the golf course now for extended tournament play. He noted for Johnson that three of the teaching pros would be full-time year-round and three would be part-time, and noted that the staff on site would also be available for lessons. He said that the City would not be required to provide any money for capital improvements. Clark stated that the State Auditor' s Report referred to deposits that were not made in tact, in sequential order and on a timely basis, and 6 W Kent City Council Minutes October 7 , 1997 GOLF COURSE that Mr. Stone had explained that this was a temporary irregularity based on the fact that the Office Manager had been ill. Finance Director Miller said this is in regard to cash that goes into the bank, and upon Clark' s question said there have been instances when the deposits were not in sequential order or timely in 1994 , in last year's audit and in this year's audit. She noted for Orr that this occurred off and on over time and that the City followed through with memos. Orr said she does not recall being in- formed that this had happened in previous years and asked how it was addressed. Miller explained that a meeting is held to determine how to correct problems, and that the Auditor may or may not audit the same issue the following year. She noted that the most current audit was received last week. Orr said she had seen a newspaper article this year saying that there had been an audit and that there did not appear to be any major problems. Miller noted for Orr that staff has been working with Mr. Stone to improve this throughout the year, as they do with all r departments. She noted for the Mayor that the golf course was cited in 1994 and that there was a minor item in Public Works which was cleared up to the Auditor's satisfaction. Bennett asked when staff began date stamping the deposits, and Miller explained that golf course receipts were not date stamped until recently. Epperly said she had heard that errors had been made by the City, such as shorting SSMD's pay by $2500 and over-charging the phone bill by $8, 000 in the course of three years, which was re- imbursed. Miller agreed that human errors occur and that they are corrected as soon as possible. Upon Orr's question, Miller said some of the errors were found by the City and some by Mr. Stone. She explained that the audit is primarily for safeguarding of funds. McFall added that the Auditor does selective review of transactions in the City to ensure that pro- cedures are sound. It was noted that the report the Council received does not show a total dollar amount. Orr asked if there is information that would give a total dollar amount affected by the issues discussed in the audit and Miller said she can provide it later. She said there was one case in which a dollar amount was mentioned, and 7 Kent City Council Minutes October 7 , 1997 GOLF COURSE Orr agreed there was one for the small amount of $1300. Orr said with that type of operation, that kind of mistake would not be a critical mistake unless it happened on a daily basis and thousands of dollars a day were lost due to irregularities in reporting or depositing. Miller noted for Clark that a new tournament form will account for the number of players; and will ensure that money is accounted for. She noted that the auditor asked that the City audit tournaments and that that audit has not been completed. Miller noted for Clark that she doesn't believe there is a significant amount of money missing and said they are working with the contractor to ensure that all money goes into the bank. Bennett said $8, 000 is not a big issue and that the city auditor used to be the state auditor who found the first irregularities at the golf course. Upon Johnson' s question, Mr. Stone of SSMD ex- plained that all of the $550, 000 which could be made from merchandising would go to Nevada Bob's at this point, but noted that the subcontract has not been concluded. Johnson said that if 100% went to Nevada Bob's, then under SSMD's proposal that amount would have to be subtracted, which would result in $1.2 million rather than $1.7 million, or less than is needed to operate the golf course and pay off the bonds. He pointed out that $1. 2 million is less than what GRI is proposing. Stone responded that that is not the case and that the city would make enough money to take care of the maintenance costs, pay SSMD, have enough to pay for debt service and have some surplus money. He said the $550, 000 is a con- servative projection and that Nevada Bob's projected total for the first year is substan- tially more than $550, 000. Johnson asked how the money brought in by Nevada Bob' s would figure into SSMD' s proposal since it would be going to Nevada Bob' s. Stone responded that the money made must be used to take care of expenditures, and that it would take more than $150, 000 to make that much. Stone also noted for Johnson that he had proposed a minimum of 4 teaching pros and said they currently have six. He said one would be full time and the others, because of their 8 -a Kent City Council Minutes October 7 , 1997 GOLF COURSE commitment to the PGA program, would be trained in golf instruction. He noted for Johnson that there would be no city money involved in capital improvement proposals, and that SSMD proposes $350, 000-400, 000 for a multi service facility. He said that would result in their recommended option in $248, 000, which they would split with the City 50/50, or $124 , 000 each. He said money would have to be put back for capital improve- ments and suggested that the City and SSMD give back 50% of that $124, 000 toward paying for capital improvements. He said the City and SSMD would each have $62, 000 left, and the City' s would go into some type of surplus fund to be used at the golf course. Stone said that they can make enough money to pay maintenance and debt service in the amount of $1.74 million and also make money for themselves, as shown in their proposal. Johnson voiced concern that taxpayers will have to spend money to improve the golf course and SSMD will receive all the revenue. He spoke about the $550, 000 in merchandising, and the $1.7 million projection and said the numbers are not adding up. Johnson noted that he has been on the council for 20 years and that he has been in charge of the Operations Committee for the City. He reiterated that without the $550, 000 in merchandising, SSMD' s total is $1. 2 million, not $1.7 million. Stone said that staff has concluded that SSMD is the only contractor that demonstrated that they could take care of all expenses to their satisfaction. Johnson voiced concern that both contractors proposals are below the amount required to pay off bonds. Johnson asked about the stationary building which SSMD proposes to have on the course, and about concession carts. Stone explained that they could serve golfers and joggers by providing a snack bar and that it is located near the llth hole. He said they have a motorized golf cart which goes through the golf course and to the Par 3 . He noted for Johnson that the building was opened on one occasion this year for a tournament, and explained that bad weather and low revenues did not dictate opening it at other times. Stone explained for Johnson that the building was originally at the mini putt, and it may or may not be open depending on weather conditions. Johnson said golfers would like to 9 Kent City Council Minutes October 7 , 1997 GOLF COURSE have the golf course open earlier and asked if opening times are negotiable; Stone said they can be flexible, based on weather conditions, guide- lines, and what customers want. Stone noted for Johnson that they have improved the food service area and that they were recently able to put on a buffet for 60 at the last moment. Mr. Stone noted for Orr that the mini putt has a synthetic surface and the City preferred not to have people eating there, but that food can be taken on the golf course. He said it was not effective to leave the snack bar at the mini putt. Johnson voiced concern about the condition of balls and asked whether the City has purchased any to replace those at the driving range. Parks Director Hodgson responded that when the range was built in 1994 the City purchased 15, 000 balls and the contractor purchased 30, 000 balls, in order to avoid wearing out the synthetic turf by picking. He said balls were purchased on two other occasions and that in August he realized the problem was a combination of hot weather, synthetic turf and the picker. He said new balls _. have been purchased by both the City and the contractor, the City installed new mats and that there was vandalism outside the driving range involving cutting the cyclone fence to steal balls. He said both the City and the contractor are working on resolving those problems. He explained for Johnson and Orr whose responsi- bility it is to take care of and replace mats, balls and picker. JOHNSON MOVED to authorize staff to negotiate with GRI to develop a management agreement for the Riverbend Golf Complex that will begin January 1, 1998, and to submit the proposed agreement to the Council for approval. Woods seconded. Johnson noted that he had served on the selection committee which was established to narrow the contractors to finalists, and said there were originally four. He recommended going with GRI, based on their past history, their clean credit report and the fact that there have been no concerns or complaints about them. He said that SSMD did not have a clean credit check, that many accounts were more than 90 days old, and that the 10 -- Kent City Council Minutes October 7 , 1997 GOLF COURSE City should be concerned with that. He spoke about the Auditor's report which he said made it clear that discrepancies were found. He voiced concern that current problems will continue, and noted that both the men' s and women' s clubs had strong concerns about continuing with SSMD. Johnson said that GRI plans on paying for capital improvements themselves, and that SSMD wants to do a partnership which would require taxpayer money. He said SSMD' s figures don't add up and that they will be well short of meeting the City's financial needs, and urged the Council to negotiate with GRI. Upon Orr's question, Johnson explained that the evaluation task force listened to all four pro- posals and decided to vote for one through four. He said this resulted in two clear finalists, with SSMD having the most first place votes and GRI having two or three first place votes and two second place votes. He said they then voted on the two finalists, which resulted in a tie. He said that after discussion of the two proposals, w another vote was taken which also resulted in a tie and for that reason they decided to take both to Council. Houser pointed out that there were nine members on the task force, but that one was not in attendance, making it difficult for the City and the contractors. Johnson explained for Epperly that a second vote was taken because four votes is not a majority, and that because GRI had so many second place votes that their weighted vote total would be higher than SSMD. He said the group decided to vote between the two con- tractors since it was clear that they were far superior to the other two presenters. Orr said she has seen much support for the current con- tractor and that it makes sense to give them an opportunity to negotiate a new contract before terminating their contract and going on to someone else. She said that Johnson had said neither contractor meets the debt service, which is a concern to her. She said she had heard that GRI's proposal did not meet the strict specifi- cations of the RFP, and if that is the case, she would be concerned about going with someone who did not meet requirements in the beginning, but may have come up with a proposal that does meet - the requirements. Johnson explained that when the four initial presentations were made, SSMD 11 Kent City Council Minutes October 7 , 1997 _. GOLF COURSE did not meet the technical criteria because they did not submit a proposal on merchandising and should have been disqualified for that reason, but that the task force decided that in order for the Council to make a choice, that they be allowed to make a proposal. He said as far as he knows, GRI submitted all requirements. Johnson said SSMD was his third choice because he did not feel they could meet the bond indebtedness or the merchandising revenues they projected. He voiced concern that SSMD proposed a fixed management fee which means the City would assume all the risk and they would assume no risk. He said GRI pro- posed a fixed fee plus a percentage, thereby assuming a great deal of risk, and that they propose that the more money they make, the more money the City would get, which would provide an incentive to bring golfers into the community. Orr stated that the contractor with a higher fixed fee would probably work harder to be sure they get it. Johnson noted that the City is obligated to pay no matter what, and that cur- rently there is a small fixed fee and a large portion is based on percentages. Bennett said that no minutes were taken at the task force meeting and that no written instruc- tions were given regarding voting. Upon Epperly's question, McFall explained that the proposals are the basis for negotiating a contract and that both contractors have said they are negotiable on a number of items. He noted for Orr that if the City were unable to negotiate a reasonable contract, they would report back to Council for direction. Mayor White noted that Administration will enforce Council' s direction. Orr said she found GRI to be very open and receptive, but that she is concerned that the current contract was not a good contract for either party and said she feels the City owes the current contractor an opportunity to at least negotiate a new contract based on things all have learned. She said she received a phone call from the Mayor two years ago in which he said he was not inclined to renew the contract at the golf course but that she has never been able to get documentation that there were enough problems to eliminate the person who had the contract until the recent audit. She noted that when the City ran the golf course there were many complaints, 12 •- Kent City Council Minutes October 7 , 1997 GOLF COURSE but when SSMD took over she heard compliments. She said there have been letters in opposition and in support of renewing the contract, and that based on the fact that this was the first venture, the City owes SSMD a chance to negotiate a reasonable contract before turning it over to someone else. Woods called for the question. Upon a roll call vote, Johnson's motion to authorize staff to negotiate with GRI failed with Bennett, Epperly, Houser and Orr opposed. EPPERLY MOVED to authorize staff to negotiate with SSMD to develop a management agreement for the Riverbend Golf Complex that will begin January 1, 1998, and to submit the proposed agreement to Council for approval. Houser seconded. Epperly clarified that her motion includes Option Three. Upon a roll call vote, Epperly's motion carried with Clark, Johnson and Woods opposed. CABLE TV (OTHER BUSINESS - ITEM 4B) (ADDED BY COUNCILMEMBER BENNETT) Cable TV. Bennett said he had been approached by groups regarding candidate forums. He noted that one has been done by the Chamber of Commerce, and said in the interest of fairness to all groups who wish to sponsor candidates forums, that all should be taped. HE MOVED to direct that all forums be taped for broadcast on the City's cable channel if a request is made. Epperly seconded. Bennett clarified that this includes recognized groups such as the PTA and groups representing areas of diversity. McFall pointed out that there would also be school board and King County Council elections, and Bennett clarified that his intent is for those affecting the City of Kent, City Council and Mayor. Clark voiced concern that there are no restric- tions on the requests, noting the time required for taping and the potential financial obliga- tions. Epperly said she has also received inquiries and suggested giving candidates five minutes for their proposals. Orr noted that evening meetings and community events are taped, and said that since the Chamber' s candidates forum was taped, it would be unfair to other groups not to tape theirs. 13 Kent City Council Minutes October 7 , 1997 _. CABLE TV She said there would probably not be many requests and that funds are available in the budget. Houser said the number of forums could be limited, and noted that the election is only weeks away. She agreed that there should be more forums and pointed out that the Chamber' s forum was geared to businesses. Woods said she is in favor of the motion and called for the question. Bennett' s motion then carried with Clark opposed. POLICE (CONSENT CALENDAR - ITEM 3H) Jail Health Services Contract Extension. APPROVAL of a three-year Jail Health Services contract extension and of the four additional hours of care per week. Valley Medical Center Occupational Health Services provides medical care for the inmates at the corrections facility. As provided for in the current contract, they have requested a three- year extension. In addition, the contract addendum provides for four additional hours of care per week. (CONSENT CALENDAR - ITEM 3I) Jail Food Services Contract Extension. EXTEN- SION of the Jail Food Service Contract through December 31, 1998, due to the excellent service provided. The Kent Corrections Facility contracts with Consolidated Food Management to prepare meals for the inmates. As provided for in Section 11. 1 of the contract, they have requested a one-year extension. (CONSENT CALENDAR - ITEM 3J) Washington State Criminal Justice Training Commission Contract for Services. APPROVAL of the contractual agreement with the Washington State Criminal Justice Training Commission regarding Sgt. Knapp. The Training Commission has requested that Corrections Sergeant Sheila Knapp be an instruc- tor at the academy for two years. They will reimburse the City for all wages and benefits earned while she is at the academy. Sergeant Knapp's position will be back-filled during her absence. 14 Kent City Council Minutes October 7 , 1997 BUDGET. (CONSENT CALENDAR - ITEM 3C) Council WorkshOR on 1998 Budget. SET October 21, 1997, at 5:30 p.m. as the date and time for a Council Workshop on the 1998 Budget. FINANCE (CONSENT CALENDAR - ITEM 3B) Approval of Bills. APPROVAL of payment of the bills received through September 15 and paid on September 15, 1997, after auditing by the Operations Committee on September 22, 1997. Approval of checks issued for vouchers: Date Check Numbers Amount 8/29/97 189262-189529 $ 731,457 .29 9/15/97 186530-189897 1, 617 , 718.79 $2 , 349, 176. 08 Approval of checks issued for payroll for August 16 through August 31 and paid on September 5, 1997, with additional checks issued for September 1 through September 15 and paid on September 19, 1997 : Date Check Numbers Amount 9/5/97 Checks 222200-222531 $ 250,943 .07 9/5/97 Advices 49341-49842 655,938.92 $ 906, 881.99 9/19/97 Checks 222532-222846 $ 255, 716.79 9/19/97 Advices 49843-50339 705, 776. 75 $ 961, 493 .54 REPORTS Council President. Houser noted that the King Conservation District has inquired as to whether any Councilmember would be willing to serve on a Board, and asked anyone interested to contact her or Ms. Banister. Operations Committee. Johnson noted that the date of the next meeting has not been determined. Public Works Committee. Clark announced that the next meeting will be held at 3 : 30 p.m. on October 15, 1997, in the Council Chambers. Planning Committee. Orr noted that the next meeting will be held on October 21, 1997, at 4:00 p.m. 15 Kent City Council Minutes October 7 , 1997 _.. REPORTS Public Safety Committee. Bennett noted that there was a sunset clause in the jet ski ordi- nance, and said that people had called regarding being warned that they were going faster than 8 miles per hour. He said he has seen a tape which is not in concert with the ordinance. Jack Bielinski, 13835 S.E. 260th, said there has been a misunderstanding regarding restrictions as to dates and times of usage. He suggested that the issue be discussed and clarified by the commit- tee. JOHNSON MOVED to send this issue to the Public Safety Committee. Orr seconded and the motion carried. ADJOURNMENT The meeting adjourned at 9 : 10 p.m. aZ4I Z v Brenda Jacob r, CMC City Clerk 16 Kent, Washington October 7 , 1997 A workshop on the Riverbend Golf Course Management Proposals was called to order at 5:40 p.m. by Council President Houser. Councilmembers present: Bennett, Clark, Epperly, Houser, Johnson, Orr and Woods. Parks Director Hodgson explained that the contract for the management of the Riverbend Golf Course expires at the end of the year, and that it began in 1993 . He stated that many changes have occurred since then at the golf course and in the golf industry. He noted that the number of rounds of golf has gone down and that less revenue has been generated, and said that the City wishes to present an opportunity for contractors, including the current contractor, to give a proposal and recommendation as to what the golf course can do in terms of revenue and use in the next five years. He noted that two companies, SSMD Enterprises and Golf Resources Northwest (GRI) , will make presentations. Doug McArthur of GRI explained why they should be selected, noting their experience, commitment to customer service, integrity and performance. He named some of their other clients, and introduced the members of the GRI team. They discussed revenues, marketing, capital improvements, management, inventories, and merchandising. McArthur said Riverbend has 4w unlimited potential and that they would be honored be take it into the next century. John Duncalf spoke as a satisfied customer of the Riverbend Golf Complex, citing SSMD' s experience, staff, ability to meet financial obligations without subsidies, and merchandising proposal with the Nevada Bob's franchise. He then introduced the Riverbend team. Victor Sia, owner of a Nevada Bob's store, said they would provide high quality products and services at competitive prices. Brett Wilkinson, Head Golf Pro, explained the programs at Riverbend and said that SSMD is very innovative. Jim Stone of SSMD then explained how they can meet financial obligations, discussed capital improvements, and said they are ready and able to continue what they have started at Riverbend. The Parks Director and both companies then answered questions from Councilmembers on issues including tournament revenue, unrestricted play, the phone system, golf course maintenance, the State Auditor' s report, merchandise sales, lesson fees, and hours of operation. The meeting adjourned at 6: 53 p.m. Brenda Jaco e , CMC City Clerk Kent City Council Meeting Date October 21, 997 Category Consent Calendar 1. SUBJECT: 1998 BUDGET AND TAX LEVY - SET HEARING DATE 2 . SUMMARY STATEMENT: Set November 4, 1997 as the date for a public hearing on the 1998 Budget and the Tax Levy for the 1998 Budget. 3 . EXHIBITS: None 4 . RECOMMENDED BY: Finance Director (Committee, Staff, Examiner, Commission, etc. ) 5. UNBUDGETED FISCAL/PERSONNEL IMPACT: NO X YES 6. EXPENDITURE REQUIRED: $ SOURCE OF FUNDS• 7 . CITY COUNCIL ACTION: Councilmember moves, Councilmember seconds DISCUSSION• ACTION: Council Agenda Item No. 3C ......................... Kent City Council Meeting Date October 21, 997 Category Consent Calendar 1. SUBJECT: WILLIS ST. STREET VACATION - RESOLUTION SETTING HEARING DATE 2 . SUMMARY STATEMENT: Adoption of Resolution No. regard- ing vacation of a portion of Willis Street and setting a public hearing date. The Public Works Department has received a request for street vacation from Don and Judy Carswell to vacate a portion of Willis Street. It has been recommended by the Public Works Committee that November 18th be set for the public hearing on the Willis Street vacation. 3 . EXHIBITS: Public Works Committee minutes, Public Works Director memorandum, resolution and vicinity map 4. RECOMMENDED BY: Public Works Committee (telephone concurrence from Judy Woods) (Committee, Staff, Examiner, Commission, etc. ) 5. UNBUDGETED FISCAL/PERSONNEL IMPACT: NO X YES 6. EXPENDITURE REQUIRED: $ SOURCE OF FUNDS: 7. CITY COUNCIL ACTION: Councilmember moves, Councilmember seconds DISCUSSION• ACTION• Council Agenda Item No. 3D PUBLIC WORKS COMMITTEE October 15, 1997 PRESENT: Tim Clark Tom Brubaker Connie Epperly Don Wickstrom Christi Houser ABSENT: Judy Woods Watershed Action Grant Wickstrom explained that this is a $2,570 grant we received from King County Natural Resources to be used to help establish the Green River Arboretum. The students of the Kent School District will be helping with this landscaping program. In response to Clark, Wickstrom noted that this is part of the nursery that we are building at the Green River Natural Resource Enhancement facility. Committee unanimously recommended that staff accept the grant of$2,570 and establish a budget for same. West Value Highway Storm Drainage Repair- Accept as Complete w Wickstrom stated that this project is before the Committee because it went over 10% of the final contract amount and as such needs Committee concurrence before acceptance of full Council. This project ran over 13% primarily due to bad soil conditions. He said there is no problem with funding this overage. This project will relieve the West Valley Highway flooding south of the river that we continually get. Committee unanimously recommended that the West Valley Storm Drainage project be accepted as complete. Wickstrom noted that for the last several years there has been flooding from rainfall between Smith Brothers Dairy and the State Maintenance Yard . The farmers built a pipe that eventually collapsed and we replaced it to avoid loosing our road. We will still have flooding when the Green River backs up but we won't have the every day rain type of flooding. Willie St - Street Vacation Wickstrom stated that we have received an official petition for a street vacation and this is a request to put this item on the Council agenda for formal action to set the Public Hearing. Committee unanimously recommended adoption of a resolution setting a hearing date for the Willis St. street vacation. 1 DEPARTMENT OF PUBLIC WORKS October 15, 1997 TO: Public Works Comm�ittee FROM: Don Wickstrom 01_AJ RE: Willis St. - Street Vacation We have received a valid petition from Don and Judv Carswell to vacate a portion of Willis Street. In accordance with State law, a Public Hearing thereon must be held. As such, we recommend adoption of a resolution which sets the Public Hearing Date. ACTION: Recommend adoption of a resolution setting a hearing date for the Willis St. street vacation LANDING NAT .. z � WI W +(� 4" ^ NOVAC LN 1 m S 23VTN 9T r I r / W / / L '36TH ST - N OLE ST d / S� a ' ' � � /� .. rFrG 9 23BTH ST x N CLOUOT $T c N• BOULDRfN NRT r9 !� w m tlou ST I of a' er r z_ U GEORGE c� ' W 1¢ I W 3AMES ST = d z) a 'S 240TH STD �. W mi w o SAM ST Q W ff > w ¢ dF' ¢ (�� t ¢ CE R '¢ a r a w zN o PIONEER 51 ¢ z w z Io u ti PROJECT LOCATION jM;;C;W IL AN TEMP ANCE ST ¢ x SMITH ST SMITH ST s„ITH sr x F w s v ¢ +' ro N HARR ISBN o ¢ MRRR I60N ST ! NgRO ___- _ _ '~ 3Tu (S 246TH ST) MEEKER STME > GONE ST ¢ W > W . �� TACOMA PlC �j o ¢ ¢ TITUS ST i �KE $IA CHERRY z DEAN 9T i! HILL 1- z � z s o \ a SAAR rn ST d `W' = s=o �'"s W MACLTN ST SR 516 = ¢ o al F tl n c i t �o GUIBERSON ST z; ! I S ST x I z m! E SERTTIE --- x CROW`t � 0w 'w` ¢ SEATTLE ST � W w >a > E CHICAGO ST ' ZFy i ¢ ¢ ¢ CLEARVIEN Y ¢ o CH C > I I \t z I T ,�, re c d w LAUREL ST f l Do ! r i ff zN s v��`�ME.M_LOCK 5T i I I CARTER ST ¢ O1 ¢ m ''' FILBERT $T 1 / rn / 2 NRRION 3T MARION W W / o PL a /// rn r nE WALNUT II LL 11 t\ S 259TH ST ' S 262ND ST S 262ND r r / y _ `t t t s t1 I ar~ WILLIS STREET - STREET VACATION a s zssrH ST a N ;` s 2 RESOLUTION NO. A RESOLUTION of the City of Kent, Washington,regarding the vacation of a dedicated, unopened portion of Willis Street lying west of Scenic Way, and setting the public hearing on the proposed street vacation for November 18, 1997. WHEREAS, a petition has been filed by various property owners to vacate a dedicated, unopened portion of Willis Street lying east of Washington Avenue in the City of Kent. King County, Washington; and WHEREAS, these property owners own at least two-thirds of the property abutting that portion of Willis Street that is now being sought to be vacated; and WHEREAS, the petition is in all respects proper. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF KENT,WASHINGTON DOES HEREBY RESOLVE AS FOLLOWS: Section 1. A public hearing on the street vacation petition requesting the vacation of a portion of Willis Street shall be held at a regular meeting of the Kent City Council at 7:00 p.m., Tuesday, November 18, 1997, in the Council Chambers of City Hall located at 220 4th Avenue South, Kent, Washington, 98032. Section 2. The City Clerk shall give proper notice of the hearing and cause the notice to be posted as provided by state law, Chapter 35.79 RCW. 1 Section 3. The Planning director shall obtain the necessary approval or rejection or other information from the Public Works Department and other appropriate departments and shall transmit information to the Council so that the Council may consider the matter at its regularly scheduled meeting on November 18. 1997. Passed at a regular meeting of the City Council of the City of Kent, Washington this _day of , 1997. Concurred in by the Mayor of the City of Kent, this_day of , 1997. JIM WHITE, MAYOR ATTEST: BRENDA JACOBER, CITY CLERK APPROVED AS TO FORM: ROGER A. LUBOVICH, CITY ATTORNEY I hereby certify that this is a true and correct copy of Resolution No. passed by the City Council of the City of Kent, Washington, the _day of , 1997. (SEAL) STVAC#l.res BRENDA JACOBER, CITY CLERK 2 Kent City Council Meeting Date October 21. 997 Category Consent Calendar 1. SUBJECT: ARTS COMMISSION REAPPOINTMENTS 2. SUMMARY STATEMENT: Confirmation of the Mayor's reappoint- ments of Carol McPherson, Linda Denny, Doug Gesler, Sherri Ourada, and Joanne M. Schaut to continue serving as members of the Kent Arts Commission. Their new appointments will continue until 10/31/2001. 3 . EXHIBITS: Memorandum from Mayor White 4 . RECOMMENDED BY: Mayor White (Committee, Staff, Examiner, Commission, etc. ) 5. UNBUDGETED FISCAL/PERSONNEL IMPACT: NO X YES 6. EXPENDITURE REQUIRED: $ SOURCE OF FUNDS• 7 . CITY COUNCIL ACTION: Councilmember moves, Councilmember seconds DISCUSSION• ACTION• Council Agenda Item No. 3E MEMORANDUM TO: CHRISTI HOUSER, CITY COUNCIL PRESIDENT CITY COUNCIL MEMBERS FROM: JIM WHITE, MAYOR )� DATE: OCTOBER 15, 1997 \ SUBJECT: REAPPOINTMENTS TO THE KENT ARTS COMMISSION I have reappointed Carol McPherson, Linda Denny, Doug Gesler, Sherri Ourada, and Joanne M. Schaut to continue serving as members of the Kent Arts Commission. Their new appointments will continue until 10/11/2001. I submit this for your confirmation. JW:jb rAlf Kent City Council Meeting Date October 21, 997 Category Consent Calendar 1. SUBJECT: DEFERRED COMPENSATION TRUST PLAN - ORDINANCE 2 . SUMMARY STATEMENT: Adoption of Ordinance No. relating to the Deferred Compensation Trust Plan. The Small Business Job Protection Act of 1996 requires implementation of a Trust and updated Plan agreement and also allows the City to imple- ment a loan program for our ICMA 457 Deferred Compensation Program. The attached documents update the City' s ICMA 457 Deferred Compensation Program so that it is consistent with these new changes in the law. 3 . EXHIBITS: Operations Committee packet, ordinance, Trust document, Plan agreement and Loan agreement 4 . RECOMMENDED BY: Operations Committee (Committee, Staff, Examiner, Commission, etc. ) 5. UNBUDGETED FISCAL/PERSONNEL IMPACT: NO X YES 6. EXPENDITURE REQUIRED: $ SOURCE OF FUNDS• 7 . CITY COUNCIL ACTION: Councilmember moves, Councilmember seconds ` DISCUSSION: ACTION: Council Agenda Item No. 3F MEMORANDUM DATE: October 7, 1997 TO: Operations Committee THRU: Sue Visgh, Employee Services Directo.12(z) FROM: Becky Fowler, Senior Benefits Analyst SUBJECT: Deferred Compensation Trust, Plan Document and Loan Program The Small Business Job Protection Act of 1996 has mandated a number of changes to the Internal Revenue Code in the areas that affect public employee deferred compensation plans under IRC Section 457. The major changes are: 1. Plan assets must be held for the exclusive benefit of plan participants in a trust, custodial account, or qualifying insurance annuity contract. 2. The$7,500 maximum deferral limit will be indexed for inflation. 3. Allows a one-time change to the irrevocable election date regarding commencement of ' benefits. 4. Allows plan sponsor to distribute inactive account balances under$3,500. 5. Allows the plan sponsor to implement a 457 deferred compensation loan program The City offers two deferred compensation programs, ICMA and American Funds. Enclosed for your review,is the trust document, plan agreement and loan implementation agreement for ICMA. We anticipate finalizing the trust document,plan agreement and loan implementation agreement for American Funds by the end of the year. At this time we would like to request Operations Committee approval to adopt the ordnance for implementation of the ICMA 457 trust,plan document and loan program If you have any questions please give me a call at 859-6577. LOAN APPLICATION Plan Plan Number: Social Security Number: ............ ..a . cipant 'A, n orm-ado ....... Participant Name: bast First Initial Participant Address: Street City State Zip .. .... ..... K . .... . . . . ... ........ .. ... . I hereby apply for a loan from the vested portion of my account in the amount of$ minimum) for a term of years. The loan amount is to be deducted from the investments in my account using a predetermined source/fund hierarchy. Reason for Loan: I understand that: a. Loan Application. All Plan loans shall be administered by the Plan Administrator. I may only apply for one loan ea! "lam Year. However, I may not apply for a loan if I am an owner-employee or a shareholder-employee of-a subckap,.a S corporation. b. Loan Approval or Denial. The Plan Administrator is responsible for approving or denying a loan. If my loan is approved then I will receive and be asked to sign a Promissory Note and Security Agreement. If I am married my spouse's consent for the loan may be required and his/her consent must be witnessed by a notary public or a Plan representative. I will incur an annual fee for my loan unless the Employer pays it. C. Loan Amount. The minimum loan amount is $ The maximum amount is the lesser of one-half of my vested account balance or$50,000 reduced by the highest outstanding loan balance in my account during the prior 12-month period. One-half of my vested account balance will be used as collateral for my loan. d. Number of Loans. I may have only one loan outstanding at any given time. If I have an existing loan, I may not apply for another loan until the existing loan is paid in full. I may not refinance an existing loan or attain a second loan for the purpose of paying off an existing loan. e. Interest Rate. All loam shall bear a reasonable rate of interest as determined by the Plan Administrator based on prevailing interest rates charged by persons in the business of lending money for loans which would be made under similar circumstances. f. Loan Repayment. Repayments will be made through payroll deduction. I agree to make loan repayments by check to MY Employer in the event I am employed but do not receive compensation from my Employer. All loan repayments will be reinvested according to my current investment elections. Loan repayments will be made to the Trustee in consecutive equal 1:1 semi-monthly or D monthly. g. Maturity of Loan. All loans must be repaid in level payments on at least a quarterly basis over a five-year period. h. Default or Termination of Employment. The Plan Administrator shall treat a loan in default if any scheduled repayment remains unpaid more than 90 days or there is an outstanding principal existing on a loan after the last scheduled repayment date. Upon default, death, disability, retirement or termination of employment, the entire outstanding principal and accrued interest shall be immediately due and payable. The Trustee may reduce my vested account balance by the outstanding amount of principal and interest owed on my defaulted loan. Please sign the application on the reverse side of this form and return to the Plan Administrator. 9119195 40154098.WP PROMISSORY NOTE AND SECURITY AGREEMENT Plan Plan Number: Social Security Number: — — Par#rc�psnt lnfarmatran ` Participant Name: First initial 1 9lY 77, ...%< °. > h 1. Amount of Loan (Principal): $ 2. Loan Term: 3. Date of this Note: For value received, I promise to pay to the order of the Plan the sum of$ (hereinafter "Principal'), and to pay interest on the unpaid Principal at the rate of % per annum from the date hereof. I will make payments in consecutive equal [I weekly, Y,❑ bi-weekl [I semi-monthly, ❑ monthly,or ❑ quarterly installments of$ , 19_ and ending on , 19_ beginning on This note is being trade pursuant to and shall be governed by the terms of the Plan which are hereby incorporated herein by reference. The determination of whether or not a failure to timely pay any installment of the Principal and interest constitutes a default shall be Plan. To secure the full and prompt payment of my obligation under made by the Plan Administrator according to the terms of the this note, I hereby pledge, assign, transfer, deliver and grant to the holder a security interest in 50% of my vested account balance under the Plan. In the event of default or termination of employment all amounts owed under this Note shall become immediately due and payable, and I authorize the Trustee of the Plan to reduce my account balance under the Plan by the total amount of unpaid Principal and interest. I understand I have the right to prepay the whole amount of the outstanding Principal balance at any time without penalty or premium. I hereby waive presentment, demand, protest, and notice. Also I agree to pay the holder of this Note all reasonable costs of collection, including(without limitation)reasonable attorneys' fees after acceleration of the maturity date of this Note. Signatures h, u I hereby certify that the above participant information is true, accurate and complete. DATE PARTICIPANT Note: The Participant's spouse must consent to the loan on the reverse side. s ORDINANCE NO. AN ORDINANCE of the City Council of the City of Kent, Washington, amending and restating the City's I.R.C.Section 457 Deferred Compensation Plan with ICMA Retirement Corporation, confirming a Declaration of Trust, establishing the City of Kent as trustee, implementing plan and trust program loan guidelines, amending Ordinance 2541 relating to administration of the City's Internal Revenue Code Section 457 Plan and Trust Programs, and authorizing small balance account distributions. WHEREAS, the employees of the City of Kent ("City") render valuable services; and WHEREAS, the City has established a deferred compensation plan administered by ICMA Retirement Corporation("ICMA")for the benefit of its employees by providing increased flexibiltiy in its personnel management system, and by assisting in the attraction and retention of competent personnel; and WHEREAS,the City has determined that the continuance of the deferred compensation plan will serve these objectives; and WHEREAS,amendments to the Internal Revenue Code ("I.R.C.") require changes to the structure of the deferred compensation plan and allow enhancements of the benefits of the deferred compensation plan; and ICMA §457 Plan Amendments WHEREAS, ICMA has provided updated plan and trust documents that include participant loan features; and WHEREAS,the City desires to make participant loans available under the plan and trust. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF KENT,WASHINGTON,DOES HEREBY ORDAIN AS FOLLOWS: SECTION 1. Plan and Trust Amended The City adopts the Deferred Compensation Plan and Trust Document(the"Plan"),attached and incorporated as Exhibit A, as the amendment and restatement of its existing deferred compensation program administered by ICMA, and confirms the continuing appointment of ICMA to serve as Administrator under the Plan. Y� .SECTION Z Declaration of Trust Adopted. The City confirms the Declaration of Trust of ICMA Retirement Trust (the "Trust"), attached and incorporated as Exhibit B, for its existing deferred compensation program administered by ICMA. SFCCTM3. Plan Assets to be Hddin Trust.•City as Trustee. The assets of the Plan shall be held in trust,with the City serving as Trustee,for the exclusive benefit of the Plan and its participants and their beneficiaries, and the assets shall not be diverted to any other purpose. The Trustee's beneficial ownership of Plan assets held in the ICMA Retirement Trust shall be held for the further exclusive benefit of the Plan participants and their beneficiaries. The City confirms and agrees to serve as Trustee under the Plan. SECTION 4. Plan Executed. The City hereby executes the Plan. ICMA §457 Plan Amendments 2 SECTION 5. Participant Loan Program Established As of the effective date of this ordinance and acceptance of this ordinance, including all exhibits, by ICMA, the City elects to make loans available to participants pursuant to Article VIII of the Plan and adopts the 457 Plan Loan guidelines attached and incorporated as Exhibit C, subject to approval of those guidelines by the Plan Administrator. SECTION 6. MAy-or Authorized to Execute Necessary Documents. The Mayor is authorized to sign the Affirmative Statement,attached and incorporated as Exhibit D, as well as all other documents necessary to implement the Plan under this ordinance. SECTION 7. City Plan and Trust Administrator. Section One of Ordinance 2541, which amends Section Four of Ordinance 2361, is amended as follows: G___:..__ The Employee Services Division Director or her or his designate• shall administer the City's participation in the Deferred Compensation Plan, and the Deferred Compensation Plan Investments hereafter created, and the Deferred Compensation Plan and Trust employee loan program. and shall have the duties as defined in said Plan. -Pfte The Employee Services Division Director or her or his designate shall have the authority to sell, assign, and transfer units held under annuity contracts in the name of the City of Kent Deferred Compensation 457 Plan and Trust and to deliver any and all written instruments necessary or proper to effectuate such transactions. ICMA §457 Plan Amendments 3 SF.CLON y, Atithorization to Change Loan Pro ram Guidelines. The Employee Services Division Director,under the authority established in Section 8 of this ordinance, is authorized to effect changes to the Plan Loan Guidelines as are reasonably requested by ICMA or that the Employee Services Division Director determines appropriate to further the purposes of this ordinance. SFC'TION 10. Small Balance Account Distributions. The Employee Services Division Director,under the authority established in Section 8 of this ordinance, is authorized to execute the necessary documents to implement Section 457 Small Balance Account Distributions under the ICMA Plan, including the documents attached and incorporated as Exhibit E. SECTION ll. Plan and its Investments not Endorsed The City's continuance of the Plan does not constitute an endorsement of the Plan or of any investment options offered threw the Plan. SECTION 1 Z Rati&ation. Any act consistent with the authority and prior to the effective date of this ordinance is ratified and confirmed. SECTION Savings. All previous ordinances relating to the City's participation in the ICMA 457 Plan that are amended by this ordinance shall remain in full force and effect until the effective date of this ordinance. SECTION 14. Severability. If any one or more sections, subsections, or sentences of this ordinance are held to be unconstitutional or invalid, such decision shall not affect the validity of the remaining portion of this ordinance and the same shall remain in full force and effect. ICMA §457 Plan Amendments 4 SECTION 15, effective Date. This ordinance shall take effect and be in force five (5) days from its passage, approval and publication as provided by law. JIM WHITE, MAYOR ATTEST: BRENDA JACOBER, CITY CLERK APPROVED AS TO FORM: ROGER A. LUBOVICH, CITY ATTORNEY PASSED: day of , 1997. APPROVED: day of , 1997. PUBLISHED: day of , 1997. I hereby certify that this is a true copy of Ordinance No. ,passed by the City Council of the City of Kent, Washington, and approved by the Mayor of the City of Kent as hereon indicated. (SEAL) BRENDA JACOBER, CITY CLERK P:LLAW WRDINANCWS7LOAN.ORD ICMA §457 Plan Amendments 5 437 Plan Adoption P a c k a g r Retain Doctr Pit eitI Deferred Compensation Plan Dorn Piz ent and Trust , \"ove Piz brr 1996 DEFER IUM COMPENSATION PLAN 2.04 Beneficiary: The person or persons designated by &TRUST the Participant in his Joinder Agreement who shall receive any benefits payable hereunder in the event of Article 1 . Purpose the Participant's death. In the event that the Participant names two or more Beneficiaries, each Beneficiary shall -The Employer hereby establishes the Employer's De- be entitled to equal shares of the benefits payable at the ferred Compensation Plan and Trust, hereafter referred Participant's death, unless otherwise provided in the to as the "Plan." The Plan consists of the provisions set Participant's Joinder Agreement. If no beneficiary is forth in this document. designated in the Joinder Agreement, if the Designated Beneficiary predeceases the Participant, or if the desig- The primary purpose of this Plan is to provide retirement nated Beneficiary does not survive the Participant for a income and other deferred benefits to the Employees of the period of fifteen (15) days, then the estate of the Par- Employer and the Employees' Beneficiaries in accordance ticipant shall be the Beneficiary. with the provisions of Section 457 of the Internal Rev- enue Code of 1986, as amended (the "Code"). 2.05 Deferred Compensation: The amount of Nor- mal Compensation otherwise payable to the Participant This Plan shall be an agreement solely between the which the Participant and the Employer mutually agree Employer and participating Employees. The Plan and to defer hereunder, any amount credited to a Trust forming a part hereof are established and shall be Participant's Account by reason of a transfer under maintained for the exclusive benefit of eligible Employ- section 6.09, or any other amount which the Employer ees and their Beneficiaries. No part of the corpus or agrees to credit to a Participant's Account. income of the Trust shall revert to the Employer or be used for or diverted to purposed other than the exclu- 2.06 Employee: Any individual who provides services sive benefit of Participants and their Beneficiaries. for the Employer, whether as an employee of the Employer or as an independent contractor, and who has Article 11. Definitions been designated by the Employer as eligible to partici- pate in the Plan. 2.01 Account: The bookkeeping account maintained for each Participant reflecting the cumulative amount of 2.07 Includible Compensation: The amount of an the Participant's Deferred Compensation, including any Employee's compensation from the Employer for a income, gains, losses, or increases or decreases in market taxable year that is attributable to services performed for value attributable to the Employer's investment of the the Employer and that is includible in the Employee's Participant's Deferred Compensation, and further gross income for the taxable year for federal income tax reflecting any distributions to the Participant or the purposes; such term does not include any amount Participant's Beneficiary and any fees or expenses excludable from gross income under this Plan or any charged against such Participant's Deferred Compensation. other plan described in Section 457(b) of the Code or any other amount excludable from gross income for 2.02 Accounting Date: Each business day that the federal income tax purposes. Includible Compensation New York Stock Exchange is open for trading, as shall be determined without regard to any community provided in Section 6.06 for valuing the Trust's assets. property laws. 2.03 Administrator: The person or persons named to 2.08 Joinder Agreement: An agreement entered into carry out certain nondiscretionary administrative func- between an Employee and the Employer, including any tions under the Plan, as hereinafter described. The amendments or modifications thereof. Such agreement Employer may remove any person as Administrator shall fix the amount of Deferred Compensation, specify upon 60 days' advance notice in writing to such person, a preference among the investment alternatives desig- in which case the Employer shall name another person nated by the Employer, designate the Employee's or persons to act as Administrator. The Administrator Beneficiary or Beneficiaries, and incorporate the terms, -' may resign upon 60 days' advance notice in writing to conditions, and provisions of the Plan by reference. the Employer, in which case the Employer shall name another person or persons to act as Administrator. EXHIBIT .. . . . . . . .. .... . ... .. . .... . . . .... ....... ... .... . ..... . .. . . . . . . . . . . ... . . . .. .. . . . . . ... . . . ... . ... .. . .. . .. . . . ...... ICMA RETIREMENT CORPORATION 2.09 Normal Compensation: The amount of com- to have actually terminated. In the case of a Participant pensation which would be payable to a Participant by who is an independent contractor of the Employer,the Employer for a taxable year if no Joinder Agreement Separation from Service shall be deemed to have oc- were in effect to defer compensation under this Plan. curred when the Participant's contract under which services are performed has completely expired and 2.10 Normal Retirement Age: Age 70-1/2, unless the terminated, there is no foreseeable possibility that the Participant has elected an alternate Normal Retirement Age Employer will renew the contract or enter into a new by written instrument delivered to the Administrator prior contract for the Participant's services, and is not antici- to Separation from Service. A Participant's Normal Retire- pated that the Participant will become an Employee of ment Age determines the period during which a Participant the Employer. may utilize the catch-up limitation of Section 5.02 hereun- der. Once a Participant has to any extent utilized the catch- 2.15 Trust: The Trust created under Article VI of the up limitation of Section 5.02, his Normal Retirement Age Plan which shall consist of all compensation deferred may not be changed. under the Plan, plus any income and gains thereon, less any losses, expenses and distributions to Participants and A Participant's alternate Normal Retirement Age may Beneficiaries. not.be earlier than the earliest date that the Participant will become eligible to retire and receive unreduced Article Ill. Administration retirement benefits under the Employer's basic retire- ment plan covering the Participant and may not be later 3.01 Duties of the Employer: The Employer shall than the date the Participant will attain age 70-1/2. If a have the authority to make all discretionary decisions Participant continues employment after attaining age affecting the rights or benefits of Participants which may 70-1/2, not having previously elected alternate Normal be required in the administration of this Plan. The Retirement Age, the Participant's alternate Normal Employer's decisions shall be afforded the maximum Retirement Age shall not be later than the mandatory deference permitted by applicable law. retirement age, if any, established by the Employer, or the age at which the Participant actually separates from 3.02 Duties of Administrator: The Administrator, as service if the Employer has no mandatory retirement agent for the Employer, shall perform non discretionary age. If the Participant will not become eligible to administrative functions in connection with the Plan, receive benefits under a basic retirement plan main- including the maintenance of Participants' Accounts, tained by the Employer, the Participant's alternate the provision of periodic reports of the status of each Normal Retirement Age may not be earlier than age 55 Account, and the disbursement of benefits on behalf and may not be later than age 70-1/2. of the Employer in accordance with the provisions of this Plan. 2.11 Participant: Any Employee who has joined the Plan pursuant to the requirements of Article IV. Article IV. Participation in the Plan 2.12 Plan Year: The calendar year. 4.01 Initial Participation: An Employee may become a Participant by entering into a Joinder Agreement prior 2.13 Retirement: The first date upon which both of the to the beginning of the calendar month in which the following shall have occurred with respect to a participant: Joinder Agreement is to become effective to defer Separation from Service and attainment of age 65. compensation not yet earned. 2.14 Separation From Service: Severance of the 4.02 Amendment of Joinder Agreement: A Partici- Participant's employment with the Employer which pant may amend an executed joinder Agreement to constitutes a "separation from service" within the change the amount of compensation not yet earned meaning of Section 402(d)(4)(A)(iii) of the Code. In which is to be deferred (including the reduction of such general, a Participant shall be deemed to have severed future deferrals to zero) or to change his investment his employment with the Employer for purposes of this preference (subject to such restrictions as may result Plan when, in accordance with the established practices of from the nature of terms of any investment made by the the Employer, the employment relationship is considered Employer). Such amendment shall become effective as . ...... . ....... . . ... ... . . ... . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . .. . . . . . . . . . . . . . . . . . .. . . . . . . . . . .. .. . . . . .... . . .. .. Two 45 i Plan Adoption Package Retain Document Deferred Coeuprnsation Plan Document and Trust , November 1996 .of the beginning of the calendar month commencing Article VI. Trust and Investment after the date the amendment is executed. A Participant of Accounts may at any time amend his joinder Agreement to change the designated Beneficiary, and such amendment 6.01 Investment of Deferred Compensation: A shall become effective immediately. Trust is hereby created to hold all the assets of the Plan for the exclusive benefit of Participants and Beneficia- Article V. Limitations on Deferrals ries, except that expenses and taxes may be paid from the Trust as provided in Section 6.03. The trustee shall 5.01 Normal Limitation: Except as provided in section be the Employer or such other person which agrees to 5.02, the maximum amount of Deferred Compensation for act in that capacity hereunder. any Participant for any taxable year shall not exceed the lesser of$7,500.00, as adjusted for the cost-of-living in 6.02 Investment Powers: The trustee or the Plan accordance with Code section 457(e)(15) for taxable years Administrator, acting as agent for the trustee, shall have beginning after December 31, 1996 (the "dollar limita- the powers listed in this Section with respect to invest- tion"), or 33-1/3 percent of the Participant's Includible ment of Trust assets, except to the extent that the Compensation for the taxable year. This limitation will investment of Trust assets is directed by Participants, ordinarily be equivalent to the lesser of the dollar limitation pursuant to Section 6.05. in effect for the taxable year or 25 percent of the Participant's Normal Compensation. (a) To invest and reinvest the Trust without distinction between principal and income in any 5.02 Catch-Up Limitation: For each of the last three form of tangible or intangible property, real, per- (3) taxable years of a Participant ending before his sonal, or mixed, and wherever situated, including, attainment of Normal Retirement Age, the maximum but not by way of limitation, common or preferred amount of Deferred Compensation shall be the lesser of: stocks, shares of regulated investment companies and (1) $15,000 or (2) the sum of(i) the Normal Limitation other mutual funds, bonds, loans, notes, debentures, for the taxable year, and (ii) the Normal Limitation for mortgages, certificates of deposit, interest, or par- each prior taxable year of the Participant commencing ticipation, equipment trust certificates, commercial after 1978 less the amount of the Participant's Deferred paper including but not limited to participation in Compensation for such prior taxable years. A prior pooled commercial paper accounts, contracts with taxable year shall be taken into account under the insurance companies including but not limited to preceding sentence only if(i) the Participant was eli- insurance, individual or group annuity, deposit gible to participate in the Plan for such year (or in any administration, and guaranteed interest contracts, other eligible deferred compensation plan established deposits at reasonable rates of interest at banking under Section 457 of the Code which is properly taken institutions including but not limited to savings into account pursuant to regulations under section 457), accounts and certificates of deposit, and other forms and (ii) compensation (if any) deferred under the Plan of securities or investments of any kind, class, or (or such other plan) was subject to the deferral limita- character whatsoever and representing interests in tions set forth in Section 5.01 any form of enterprise, wherever it may be located, organized or operated within or without the United 5.03 Other Plans: The amount excludable from a States of America, whether such investments are Participant's gross income under this Plan or any other income producing or not, without being limited in eligible deferred compensation plan under section 457 any respect by statute or court rule or decision of of the Code shall not exceed $7,500.00 (or such greater any jurisdiction now or hereafter in force purporting amount allowed under Sections 5.01 or 5.02 of the to limit or otherwise affect such investments. Assets Plan), less any amount excluded from gross income of the Trust may be invested in securities or new under section 403(b), 402(a)(8), or 402(h)(1)(B) of the ventures that involve a higher degree of risk than Code, or any amount with respect to which a deduction investments that have demonstrated their investment is allowable by reason of a contribution to an organiza- performance over an extended period of time. tion described in section 501(c)(18) of the Code. ......... . . . ... . .. ..... . . . . . . . . . . . .. . . . . . . . . . . .. .. ... . . .. .. . . . . . . . . . . .. . . . . . . . . . .. . . .. . . . . . . . . .. . . . . .. . ..... . Three ICMA RETIREMENT CORPORATION (b) To invest and reinvest all or any part of the otherwise dispose of any such property, without assets of the Trust in any common, collective or regard to restrictions applicable to fiduciaries or commingled trust fund that is maintained by a bank others and without the approval of any court. or other institution and that is available to Em- ployee plans described under sections 457 or 401 of (g) To sell for cash or credit, redeem, exchange for the Code, or any successor provisions thereto, and other property, convey, transfer, or otherwise during the period of time that an investment dispose of any property held in the Trust in any through any such medium shall exist, to the extent manner and at any time, by private contract or at of participation of the Plan, the declaration of trust public auction or otherwise, and no other person of such common, collective, or commingled trust shall be bound to see to the application of the fund shall constitute a part of this Plan. purchase money or to inquire into the validity, expediency, or propriety of any such sale or other (e) To invest and reinvest all or any part of the disposition. assets of the Trust in any group annuity, deposit administration or guaranteed interest contract issued (h) To enter into contracts for or to make commit- by an insurance company or other financial institu- ments either alone or in company with others to tion on a commingled or collective basis with the purchase or sell at any future date any property assets of any other 457 plan or trust qualified under acquired for the Trust. section 401(a) of the Code or any other plan de- scribed in section 401(a)(24) of the Code, and such (i) To vote or to refrain from voting any stocks, contract may be held or issued in the name of the bonds, or other securities held in the Trust, to Plan Administrator, or such custodian as the Plan exercise any other right appurtenant to any securi- Administrator may appoint, as agent and nominee ties or other property held in the Trust, to give for the Employer. During the period that an invest- general or special proxies or powers of attorney with ment through any such contract shall exist, to the or without power of substitution with respect to extent of participation of the Plan, the terms and such securities and other property, to exercise any conditions of such contract shall constitute a part of conversion privileges, subscription rights, or other the Plan. options or privileges with respect to such securities and other property and-make any payments inciden- (d) To purchase part interests in real property or in tal thereto, and generally to exercise, personally or mortgages on real property, wherever such real by general or limited power of attorney, any of the property may be situated, and to delegate to a powers of an owner with respect to stocks, bonds, property manager.or the holder or holders of a securities, or other property held in the Trust at majority interest in such real property or mortgage any time. on real property the management and operation of any part interest in such real property or mortgages. (j) To oppose or to consent to and participate in any organization, reorganization, consolidation, (e) To hold cash awaiting investment and to keep merger, combination, readjustment of finances, or such portion of the Trust in cash or cash balances, similar arrangement with respect to any corporation, without liability for interest, in such amounts as may company, or association, any of the securities of from time to time be deemed to be reasonable and which are held in the Trust, to do any act with necessary to meet obligations under the Plan or reference thereto, including the exercise of options, otherwise to be in the best interests of the Plan. the making of agreements or subscriptions and the payment of expenses, assessments, or subscriptions (f) To retain, manage, operate, administer, divide, that may be deemed necessary or advisable in subdivide, partition, mortgage, pledge, improve, connection therewith, and to accept, hold, and alter, demolish, remodel, repair, and develop in any retain any securities or other property that may be manner any property, or any part of or partial so acquired. interest in any property, real'or personal, held in the Trust, to lease such property for any period of time, and to grant options to sell, exchange, lease, or .. . . . .... .. . ..... . . . . . . . . ... . . . . . .. . . . . .. . . . .. . . . . . . .. . . . . . .. . . . . . . . . . . . . . . . . .. . . . ... . . . . . . . . .. . .. . . . . . . . . .. . Four 45 i Plan Adoption Package Retain Document Deferred Compensation Plan Docurnent and Trust , November 1996 (k) To deposit any property held in the Trust with (o) To make, execute, acknowledge, and deliver any protective, reorganization, or similar commit- any and all deeds, leases, mortgages, conveyances, tee; and to delegate discretionary power thereto and contracts, waivers, releases, or other instruments in to pay and agree to pay part of its expenses and writing necessary or proper for the accomplishment compensation and any assessments levied with of any of the foregoing powers. respect to any such property so deposited. (p) To open and maintain any bank account or (1) To hold, to authorize the holding of, and to accounts in the name of the Plan, the Employer, or register any investment to the Trust in the name of any nominee or agent of the foregoing, including the Plan, the Employer, or any nominee or agent of the Plan Administrator, in any bank or banks. any of the foregoing, including the Plan Administra- tor, or in bearer form, to deposit or arrange for the (q) To do any and all other acts that may be deposit of securities in a qualified central depository deemed necessary to carry out any of the powers set even though, when so deposited, such securities may forth herein. be merged and held in bulk in the name of the nominee of such depository with other securities 6.03 Taxes and Expenses: All taxes of any and all deposited therein by any other person, and to kinds whatsoever that may be levied or assessed under organize corporations or trusts under the laws of any existing or future laws upon, or in respect to the Trust, jurisdiction for the purpose of acquiring or holding or the income thereof, and all commissions or acquisi- title to any property for the Trust, all with or tions or dispositions of securities and similar expenses of without the addition of words or other action to investment and reinvestment of the Trust, shall be paid indicate that property is held in a fiduciary or from the Trust. Such reasonable compensation of the representative capacity but the books and records of Plan Administrator, as may be agreed upon from time to the Plan shall at all times show that all such invest- time by the Employer and the Plan Administrator, and ments are part of the Trust. reimbursement for reasonable expenses incurred by the Plan Administrator in performance of its duties hereun- (m) Upon such terms.as may be deemed advisable der (including but not limited to fees for legal, account- by the Employer or the Plan Administrator, as the ing, investment and custodial services) shall also be paid case may be, for the protection of the interests of from the Trust. the Plan or for the preservation of the value of an investment, to exercise and enforce by suit for legal 6.04 Payment of Benefits: The payment of benefits or equitable remedies or by other action, or to from the Trust in accordance with the terms of the Plan waive any right or claim on behalf of the Plan or may be made by the Plan Administrator, or by any any default in any obligation owing to the Plan, to custodian or other person so authorized by the Em- renew, extend the time for payment of, agree to a ployer to make such disbursement. The Plan Adminis- reduction in the rate of interest on, or agree to any trator, custodian or other person shall not be liable with other modification or change in the terms of any respect to any distribution of Trust assets made at the obligation owing to the Plan, to settle, compromise, direction of the Employer. adjust, or submit to arbitration any claim or right in favor of or against the Plan, to exercise and enforce 6.05 Investment Funds: In accordance with uniform any and all rights of foreclosure, bid for property in and nondiscriminatory rules established by the Employer foreclosure, and take a deed in lieu of foreclosure and the Plan Administrator, the Participant may direct with or without paying consideration therefor, to his/her Accounts to be invested in one (1) or more commence or defend suits or other legal proceedings investment funds available under the Plan; provided, whenever any interest of the Plan requires it, and to however, that the Participant's investment directions represent the Plan in all suits or legal proceedings in shall not violate any investment restrictions established any court of law or equity or before any body or by the Employer. Neither the Employer, the Adminis- tribunal. trator, nor any other person shall be liable for any losses "-' incurred by virtue of following such directions or with (n) To employ suitable consultants, depositories, any reasonable administrative delay in implementing agents, and legal counsel on behalf of the Plan. such directions. ...... . .. . .... . . .. ... . . .. . . . . . . . . . . . . .. . . .. . ... . . . . . .. . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . .. . .. . . . . . . . .. . . . . .... . Five ICNIA RETIREMENT CORPORATION 6.06 Valuation of Accounts: As of each Accounting than cash, unless the Employer and the Administr- Date, the Plan assets held in each investment fund for agree to hold such other assets under the Plan. offered shall be valued at fair market value and the Any such transferred amount shall be treated as a investment income and gains or losses for each fund deferral subject to the limitations of Article V, shall be determined. Such investment income and gains except that, for purposes of applying the limitations or losses shall be allocated proportionately among all of Sections 5.01 and 5.02, an amount deferred Account balances on a fund-by-fund basis. The alloca- during any taxable year under the plan from which tion shall be in the proportion that each such Account the transfer is accepted shall be treated as if it has balance as of the immediately preceding Accounting been deferred under this Plan during such taxable Date bears to the total of all such Account balances as of year and compensation paid by the transferor em- that Accounting Date. For purposes of this Article, all ployer shall be treated as if it had been paid by the Account balances include the Account balances of all Employer. Participants and Beneficiaries. (b) Outgoing Transfers: An amount may be 6.07 Participant Loan Accounts: Participant Loan transferred to an eligible deferred compensation plan Accounts shall be invested in accordance with Section maintained by another employer, and charged to a 8.03 of the Plan. Such Accounts shall not share in any Participant's Account under this Plan, if(I) the investment income and gains or losses of the investment Participant has separated from service with the funds described in Sections 6.05 and 6.06. Employer and become an employee of the other employer, (ii) the other employer's plan provides 6.08 Crediting of Accounts: The Participant's Account that such transfer will be accepted, and (iii) the shall reflect the amount and value of the investments or Participant and the employers have signed such other property obtained by the Employer through the agreements as are necessary to assure that the investment of the Participant's Deferred Compensation Employer's liability to pay benefits to the Partici- pursuant to Sections 6.05 and 6.06. It is anticipated that the pant has been.discharged and assumed by the other Employer's investments with respect to a Participant will employer. The Employer may require such docu- -,. conform to the investment preference specified in the mentation from the other plan as it deems necessary Participant's Joinder Agreement, but nothing herein shall to effectuate the transfer, to confirm that such plan be construed to require the Employer to make any particu- is an eligible deferred compensation plan within the lar investment of a Participant's Deferred Compensation. meaning of section 457 of the Code, and to assure Each Participant shall receive periodic reports, not less that transfers are provided for under such plan. Such frequently than annually, showing the then current transfers shall be made only under such circum- value of his/her Account. stances as are permitted under section 457 of the Code and the regulations thereunder. 6.09 Transfers: 6.10 Employer Liability: In no event shall the (a) Incoming Transfers: A transfer may be ac- Employer's liability to pay benefits to a Participant' cepted from an eligible deferred compensation plan under this Plan exceed the value of the amounts cred- maintained by another employer and credited to a ited to the Participant's Account; neither the Employer Participant's Account under the Plan if(I) the nor the Administrator shall be liable for losses arising Participant has separated from service with that from depreciation or shrinkage in the value of any employer and become an Employee of the Em- investments acquired under this Plan. ployer, and (ii) the other employer's plan provides that such transfer will be made. The Employer may require such documentation from the predecessor plan as it deems necessary to effectuate the transfer, to confirm that such plan is an eligible deferred compensation plan within the meaning of Section 457 of the Code, and to assure that transfers are provided for under such plan. The Employer may refuse to accept a transfer in the form of assets other . ...... . . .... . . . . . . .. . . . .. . . . . . . . . . . . . . . . . . .. .. . . .. .. . . . . . . .. . . . . . . . . .. .. . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . ... . . Six 457 Plan Adoption Package Retain Document Deferred Compensation Plan Document and Trust , November 1996 Article VI1. Benefits (b) One lump-sum payment; 7.01 Retirement Benefits and Election on Separa- (c) Approximately equal monthly, quarterly, semi- tion from Service: Except as otherwise provided in annual or annual payments, calculated to continue this Article VII, the distribution of a Participant's for a period certain chosen by the Participant. Account shall commence as of April 1 of the calendar year after the Plan Year of the Participant's Retirement, (d) Annual Payments equal to the minimum distri- and the distribution of such Retirement benefits shall be butions required under Section 401(a)(9) of the made in accordance with one of the payment options Code over the life expectancy of the Participant or described in Section 7.02. Notwithstanding the forego- over the life expectancies of the Participant and his ing, but subject to the following paragraph of this Beneficiary. Section 7.01, the Participant may irrevocably elect within 60 days following Separation from Service to (e) Payments equal to payments made by the issuer have the distribution of benefits commence on a fixed of a retirement annuity policy acquired by the determinable date other than that described in the Employer. preceding sentence which is at least 61 days after Separa- rion from Service, but not later than April 1 of the year (f) A split distribution under which payments under following the year of the Participant's Retirement or options (a), (b), (c) or (e) commence or are made at attainment of age 70-1/2, whichever is later. Notwith- the same time, as elected by the Participant under standing the foregoing provisions of this Section 7.01, no Section 7.01, provided that all payments commence election to defer the commencement of benefits after a (or are made) by the latest benefit commencement separation from service shall operate to defer the distribu- date under Section 7.01 and that once a payment is tion of any amount in the Participant's Loan Account in made subsequent payments will be made in substan- the event of a default of the Participant's loan. tially nonincreasing amounts. —Effective on or after January 1, 1997, the Participant (g) Any payment option elected by the Participant may elect to defer the commencement of distribution of and agreed to by the Employer and Administrator, benefits to a fixed determinable date later than the date provided that such option must provide for substan- described above, but not later than April 1 of the year tially nonincreasing payments for any period after following the year of the Participant's retirement or the benefit commencement date under Section 7.01. attainment of age 70-1/2, whichever is later, provided (a) such election is made after the 61st day following A Participant's or Beneficiary's selection of a payment Separation from Service and before commencement of option made after December 31, 1995, under Subsec- distributions and (b) the Participant may make only one tions (a), (c), or (g) above may include the selection of (1) such election. Notwithstanding the foregoing, the an automatic annual cost-of-living increase. Such Administrator, in order to ensure the orderly adminis- increase will be based on the rise in the Consumer Price tration of this provision, may establish a deadline after Index for All Urban Consumers (CPI-U) from the third which such election to defer the commencement of quarter of the last year in which a cost-of-living in- distribution of benefits shall not be allowed. crease was provided to the third quarter of the current year. Any increase will be made in periodic payment 7.02 Payment Options: As provided in Sections 7.01, checks beginning the following January. The first cost- 7.04 and 7.05, a Participant or Beneficiary may elect to of-living increase will be based on the rise in the CPI-U have value of the Participant's Account distributed in from the third quarter of 1995 to the third quarter of accordance with one of the following payment options, 1996, and will be applied to amounts paid beginning provided that such option is consistent with the limita- January 1997. tions set forth in Section 7.03. A Participant's or Beneficiary's election of a payment (a) Equal monthly, quarterly, semi-annual or annual option must be made at least 30 days before the pay- payments in an amount chosen by the Participant, ment of benefits is to commence. If a Participant or continuing until his/her Account is exhausted; Beneficiary fails to make a timely election of a payment option, benefits shall be paid monthly under option (c) .... .. . ... . . . . .. .. ... .. . .. . . . . . . . . . . . . . . . . . . . .. .. . .. . . . . . . . . . . . . . . . . . .. . . . . .. . . . . . . .. . . . .. ... . . ..... . . . ... . .. Seven ICMA PETIREfv1E CUKPUF,A' ION above fora period of five years or such shorter period of (b) If the designated Beneficiary does not continue time necessary to ensure that the amount of any install- to live for the remaining period of payments under ment is not less than $1,200 per year, without the the payment option, then the commuted value of inclusion of a cost-of-living increase. any remaining payments under the payment option shall be paid in a lump sum to the estate of the 7.03 Limitation on Options: No payment option may Beneficiary. In the event that the Participant's estate be selected by a Participant under subsections 7.02(a) or is the Beneficiary, the commuted value of any (c) unless the amount of any installment is not less than remaining payments under the payment option shall S1,200 per year. No payment option may be selected be paid to the estate in a lump sum. by a Participant or Beneficiary under Sections 7.02, 7.04, or 7.05 unless it satisfies the requirements of 7.05 Pre-retirement Death Benefits: Sections 401(a)(9) and 457(d)(2) of the Code, including that payments commencing before the death of the (a) Should the Participant die before he has begun Participant shall satisfy the incidental death benefits to receive the benefits provided by Section 7.01, the requirement under section 457(d)(2)(B)(i)(I). A cost-of- value of the Participant's Account shall be payable living increase included as part of a payment option to the Beneficiary commencing within the 30-day selected under Section 7.02 shall not be considered to period commencing on the 91st day after the fail to satisfy the requirement under section 457(d)(2)(b) Participant's death, unless the Beneficiary elects a that any distribution made over a period of more than 1 different fixed or determinable benefit commence- year can only be made in substantially nonincreasing ment date within 90 days of the Participant's death. amounts. Unless otherwise elected by the Participant Such benefit commencement date shall be not later (or spouse, in the case of distributions described in than the later of(I) December 31 of the year fol- Section 7.05 below) by the time distributions are lowing the year of the Participant's death, or (ii) if required to begin, life expectancies shall be recalculated the Beneficiary is the Participant's spouse, Decem- annually. Such election shall be irrevocable as to the ber 31 of the year in which the Participant would Participant (or spouse) and shall apply to all subsequent have attained age 70-1/2. years. The life expectancy of a nonspouse Beneficiary may not be recalculated. (b) Unless a Beneficiary elects a different payment option prior to the benefit commencement date, death benefits under this Section shall be paid in 7.04 Post-retirement Death Benefits: approximately equal annual installments over five years, or over such shorter period as may be neces- (a) Should the Participant die after he/she has sary to assure that the amount of any annual install- begun to receive benefits under a payment option, ment is not less than $3,500. A Beneficiary shall be the remaining payments, if any, under the payment treated as if he/she were a Participant for purposes option shall be payable to the Participant's Benefi- of determining the payment options available under ciary within the 30-day period commencing with Section 7.02, provided, however, that the payment the 61st day after the Participant's death, unless the option chosen by the Beneficiary must provide for Beneficiary elects payment under a different pay- payments to the Beneficiary over a period no longer ment option that is available under Section 7.02 than the life expectancy of the Beneficiary, and within 60 days of the Participant's death. Any provided that such period may not exceed (15) years different payment option elected by a Beneficiary if the Beneficiary is not the Participant's spouse. under this section must provide for payments at a rate that is at least as rapid under the payment (e) In the event that the Beneficiary dies before the option that was applicable to the Participant. In no payment of death benefits has commenced or been event shall the Employer or Administrator be liable completed, the remaining value of the Participant's to the Beneficiary for the amount of any payment Account shall be paid to the estate of the Benefi- made in the name of the Participant before ciary in a lump sum. In the event that the the Administrator receives proof of death of the Participant's estate is the Beneficiary, payment shal' Participant. be made to the estate in a lump sum. . . ......... .. . ... . . . . . . . .. . . . . . . . . .. . . . .. . . . . . . ...... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . .. . . . . . . .. . . . . . . . . Eight 457 Plea Adoption Package Retain Document Deferred Co tit peitsarian Plan Document and Trust , aveinbrr 1996 7.06 Unforeseeable Emergencies: Article VIII. Loans to Participants (a) In the event an unforeseeable emergency occurs, 8.01 Availability of Loans to Participants: a Participant may apply to the Employer to receive that part of the value of his/her Account that is (a) Effective January 1, 1997, the Employer may reasonably needed to satisfy the emergency need. If elect to make loans available to Participants in this such an application is approved by the Employer, Plan. If the Employer has elected to make loans the Participant shall be paid only such amount as the available to Participants, a Participant may apply for Employer deems necessary to meet the emergency a loan from the Plan subject to the limitations and need, but payment shall not be made to the extent other provisions of this Article. that the financial hardship may be relieved through cessation of deferral under the Plan, insurance or (b) The Employer shall establish written guidelines other reimbursement, or liquidation of other assets governing the granting of loans, provided that such to the extent such liquidation would not itself cause guidelines are approved by the Plan Administrator severe financial hardship. and are not inconsistent with the provisions of this Article, and that loans are made available to all (b) An unforeseeable emergency shall be deemed to Participants on a reasonably equivalent basis. involve only circumstances of severe financial hardship to the Participant resulting from a sudden 8.02 Terms and Conditions of Loans to Participants: unexpected illness, accident, or disability of the Any loan by the Plan to a Participant under Section 8.01 of the Participant or of a dependent (as defined in section Plan shall satisfy the following requirements: 152(a) of the Code) of the Participant, loss of the Participant's property due to casualty, or other (a) Availability. Loans shall be made available to similar and extraordinary unforeseeable circum- all Participants on a reasonably equivalent basis. stances arising as a result of events beyond the -� control of the Participant. The need to send i (b) Interest Rate. Loans must be adequately Participant's child to college or to purchase a new secured and bear a reasonable interest rate. home shall not be considered unforeseeable emer- gencies. The determination as to whether such an (c) Loan Limit. No Participant loan shall exceed unforeseeable emergency exists shall be based on the the present value of the Participant's Account. merits of each individual case. (d) Foreclosure. In the event of default on any 7.07 Transitional.Rule for Pre-1989 Benefit Elec- installment payment, the outstanding balance of the tions: In the event that, prior to January 1, 1989, a loan shall be a deemed distribution. In such event, Participant or Beneficiary has commenced receiving an actual distribution of a plan loan offset amount benefits under a payment option or has irrevocably elected will not occur until a distributable event occurs in a payment option or benefit commencement date, then that the Plan. payment option or election shall remain in effect notwith- standing any other provision of the Plan. (e) Reduction of Account. Notwithstanding any other provision of this Plan, the portion of the 7.08 De Minimis Accounts: Notwithstanding the Participant's Account balance used as a security foregoing provisions of this Article, if the value of a interest held by the Plan by reason of a loan out- Participant's Account does not exceed S3,500 and (a) no standing to the Participant shall be taken into amount has been deferred under the Plan with respect account for purposes of determining the amount of to the Participant during the 2-year period ending on the Account balance payable at the time of death or the date of the distribution and (b) there has been no distribution, but only if the reduction is used as prior distribution under the Plan to the Participant repayment of the loan. pursuant to this Section 7.08, the Participant may elect to receive or the Employer may distribute the Participant's entire Account without the consent of the Participant. Such distribution shall be made in a lump sum. .... .. . . . .... . . . . . . . . ... . .. . . . . . . . . . . . . . . . . .. .... ..... .. . . .. .. . .. . . . . . .... . . . ... . . . . .. . ... . .. .. .. . . . . . . .... .. Nine (f) Amount of Loan. At the time the loan is made, (within such term) instituted at the end of such the principal amount of the loan plus the outstanding period of suspension. balance (principal plus accrued interest) due on any other outstanding loans to the Participant from the Plan (i) Prepayment. The Participant shall be permitted and from all other plans of the Employer that are to repay the loan in whole or in part at any time qualified employer plans under section 72(p)(4) of the prior to maturity, without penalty. Code shall not exceed the least of- (j) Promissory Note. The loan shall be evidenced (1) $50,000, reduced by the excess (if any) of by a promissory note executed by the Participant and delivered to the Employer, and shall bear (a) The highest outstanding balance of loans interest at a reasonable rate determined by the from the Plan during the one (1) year Employer. period ending on the day before the date on which the loan is made, over (k) Security. The loan shall be secured by an assignment of the Participant's right, title and (b) The outstanding balance of loans from the interest in and to his/her Account. Plan on the date on which such loan is made; or (1) Assignment or Pledge. For the purposes of paragraphs (0 and (g), assignment or pledge of any (2) One-half of the value of the Participant's portion of the Participant's interest in the Plan and a interest in all of his/her Accounts under loan, pledge, or assignment with respect to any this Plan. insurance contract purchased under the Plan, will be treated as a loan. (g) Application for Loan. The Participant must give the Employer adequate written notice, as (m) Other Terms and Conditions. The Employer determined by the Employer, of the amount and shall fix such other terms and conditions of the loan w desired time for receiving a loan. No more than as it deems necessary to comply with legal require- one (1) loan may be made by the Plan to a Partici- ments, to maintain the qualification of the Plan and pant in any calendar year. No loan shall be ap- Trust under section 457 of the Code, or to prevent proved if an existing loan from the Plan to the the treatment of the loan for tax purposes as a Participant is in default to any extent. distribution to the Participant. The Employer, in its discretion for any reason, may fix other terms (h) Length of Loan. Any loan issued shall require and conditions of the loan, not inconsistent with the Participant to repay the loan in substantially the provisions of this Article and section 72(p) of equal installments of principal and interest, at least the Code. monthly, over a period that does not exceed five (5) years from the date of the loan; provided, however, 8.03 Participant Loan Accounts: that if the proceeds of the loan are applied by the Participant to acquire any dwelling unit that is to be (a) Upon approval of a loan to a Participant by the used within a reasonable time (determined at the Employer, an amount not in excess of the loan shall time the loan is made) after the loan is made as the be transferred from the Participant's other invest- principal residence of the Participant, the five (5) ment fund(s), described in Section 6.05 of the Plan, year limit shall not apply. In this event, the period to the Participant's Loan Account as of the Account- of repayment shall not exceed a reasonable period ing Date immediately preceding the agreed upon determined by the Employer. Principal installments date on which the loan is to be made. and interest payments otherwise due may be sus- pended for up to one (1) year during an authorized (b) The assets of a Participant's Loan Account may leave of absence, if the promissory note so provides, be invested and reinvested only in promissory notes but not beyond the original term permitted under received by the Plan from the Participant as consid• this Subsection (h), with a revised payment schedule eration for a loan permitted by Section 8.01 of the Plan or in cash. Uninvested cash balances in a . . ... ... .. ... . . . . . . . . .... .. . . . . .. .. . . .. .. . . . . .... . . ... . . .. . . .. .. . . . .. . . . .. . . . . ... . . . .. . . .. . . . . .. .. . . . . . . . . ... Ten 457 Plan Adoption Package Retain Dorumenr Deferred Compensation Plan Dorumenr and Trust , November 1996 Participant's Loan Account shall not bear interest. payment. Nothing in this Section shall be construed - Neither the Employer, the Administrator, nor any to authorize any amount to be distributed under the other person shall be liable for any loss, or by reason Plan at a time or in a form that is not permitted of any breach, that results from the Participant's under Section 457 of the Code. Any Payment made exercise of such control. to a person other than the Participant pursuant to this Section shall be reduced by required income tax (c) Repayment of principal and payment of interest withholding; the fact that payment is made to a shall be made by payroll deduction or, where person other than the Participant may not prevent repayment cannot be made by payroll deduction, by such payment from being includible in the gross check, and shall be invested in one (1) or more income of the Participant for withholding and other investment funds, in accordance with Section income tax reporting purposes. 6.05 of the Plan, as of the next Accounting Date after payment thereof to the Trust. The amount so (b) Release from Liability to Participant: The invested shall be deducted from the Participant's Employer's liability to pay benefits to a Participant Loan Account. shall be reduced to the extent that amounts have been paid or set aside for payment to a spouse, (d) The Employer shall have the authority to former spouse, or child pursuant to paragraph (a) of establish other reasonable rules, not inconsistent the Section. No such transfer shall be effectuated with the provisions of the Plan, governing the unless the Employer or Administrator has been establishment and maintenance of Participant Loan provided with satisfactory evidence that the Em- Accounts. ployer and the Administrator are released from any further claim by the Participant with respect to such Article IX. Non-assignability amounts. The Participant shall be deemed to have released the Employer and the Administrator from 9.01 In General: Except as provided in Article VIII any claim with respect to such amounts, in any case -y and Section 9.02, no Participant or Beneficiary shall in which (i) the Employer or Administrator has been have any right to commute, sell, assign, pledge, transfer served with legal process or otherwise joined in a or otherwise convey or encumber the right to receive proceeding relating to such transfer, (ii) the Partici- any payments hereunder, which payments and rights pant has been notified of the pendency of such are expressly declared to be non-assignable and proceeding in the manner prescribed by the law of non-transferable. the jurisdiction in which the proceeding is pending for service of process in such action or by mail from 9.02 Domestic Relations Orders: the Employer or Administrator to the Participant's last known mailing,address, and (iii) the Participant (a) Allowance of Transfers: To the extent re- fails to obtain an order of the court in the proceed- quired under final judgement, decree, or order ing relieving the Employer or Administrator from (including approval of a property settlement agree- the obligation to comply with the judgment, decree, ment) made pursuant to a state domestic relations or order. law, any portion of a Participant's Account may be paid or set aside for payment to a spouse, former (c) Participation in Legal Proceedings: The spouse, or child of the Participant. Where necessary Employer and Administrator shall not be obligated to carry out the terms of such an order, a separate to defend against or set aside any judgement, decree, Account shall be established with respect to the or order described in paragraph (a) any legal order spouse, former spouse, or child who shall be en- relating to the garnishment of a Participant's ben- titled to make investment selections with respect efits, unless the full expense of such legal action is thereto in the same manner as the Participant; any borne by the Participant. In the event that the amount so set aside for a spouse, former spouse, or Participant's action (or inaction) nonetheless causes child shall be paid out in a lump sum at the earliest the Employer or Administrator to incur such ex- date that benefits may be paid to the Participant, pense, the amount of the expense may be charged unless the order directs a different time or form of against the Participant's Account and thereby reduce the Employer's obligation to pay benefits to the . ..... . . .. .... . . .. ... ... . . .. . . . ..... ... . .. ...... . . .. . .... . . . . . . . . . .. . . . . . . . . . . . . . .. . .. . ... . . .... . ... .... ..... Eleven I C M A RETIAENSEN : CU:I: 'U!:A _ UN Participant. In the course of any proceeding relating Except as may be required to maintain the status of the to divorce, separation, or child support, the Em- Plan as an eligible deferred compensation plan under _. ployer and Administrator shall be authorized to section 457 of the Code or to comply with other disclose information relating to the Participant's applicable laws, no amendment or termination of the Account to the Participant's spouse, former spouse, Plan shall divest any Participant of any rights with or child (including the legal representatives of the respect to compensation deferred before the date of the spouse, former spouse, or child), or to a court. amendment or termination. Article X. Relationship to other Plans Article XII. Applicable Law and Employment Agreements This Plan and Trust shall be construed under the laws of This Plan serves in addition to any other retirement, the state where the Employer is located and is estab- pension, or benefit plan or system presently in existence lished with the intent that it meet the requirements of or hereinafter established for the benefit of the an "eligible deferred compensation plan" under Section Employer's employees, and participation hereunder shall 457 of the Code, as amended. The provisions of this not affect benefits receivable under any such plan or Plan and Trust shall be interpreted wherever possible in system. Nothing contained in this Plan shall be deemed conformity with the requirements of that section. to constitute an employment contract or agreement between any Participant and the Employer or to give Article XI11. Gender and Number any Participant the right to be retained in the employ of the Employer. Nor shall anything herein be construed The masculine pronoun, whenever used herein, shall to modify the terms of any employment contract or include the feminine pronoun, and the singular shall agreement between a Participant and the Employer. include the plural, except where the context requires otherwise. Article XI. Amendment or Termination of Plan The Employer may at any time amend this Plan pro- vided that it transmits such amendment in writing to the Administrator at least 30 days prior to the effective date of the amendment. The consent of the Administrator shall not be required in order for such amendment to become effective, but the Administrator shall be under no obligation to continue acting as Administrator hereunder if it disapproves of such amendment. The Employer may at any time terminate this Plan. The Administrator may at any time propose an amend- ment to the Plan by an instrument in writing transmit- ted to the Employer at least 30 days before the effective date of the amendment. Such amendment shall become effective unless, within such 30-day period, the Em- ployer notifies the Administrator in writing that it disapproves such amendment, in which case such amendment shall not become effective. In the event of such disapproval, the Administrator shall be under no obligation to continue acting as Administrator hereunder. ... . . . .... . .. .. . .. . . . .. .. ... .. . . . ... . . . .. . .... ..... . .. . ... . . . . . . . . . . . .. . . ... ... . .. . .. . . . . . . .... . ....... . . . . .. Twclve 4 j 7 Plan AdapIion Package Retain Documenr Declaration of Trust of the ICd1A Retirement Trutt , January 1995 DECLARATION OF TRUST (k) Public Employer Trustees. Public Employers who serve OF ICMA RETIREMENT TRUST as trustees of the Qualified Plans. Article I. Nance and Definitions (1) Public Employer. A unit of state or local government, or any agency or instrumentality thereof, that has adopted a Section 1.1 Name: The Name of the Trust created hereby is Deferred Compensation Plan or a Qualified Plan and has the ICMA Retirement Trust. executed this Declaration of Trust. Section 1.2 Definitions:Wherever they are used herein, the (m) Qualified Plan. A plan sponsored by a Public Employer following terms shall have the following respective meanings: for the purpose of providing retirement income to its (a) By-laws.The By-laws referred to in Section 4.1 hereof, as employees which satisfies the qualification requirements of amended from time to time. Section 401 of the Internal Revenue Code, as amended. (b) Deferred Compensation Plan. A deferred (n) RC. The International City Management Association compensation plan established and maintained by a Public Retirement Corporation. Employer for the purpose of providing retirement income and (o) Retirement Trust. The Trust created by this Declaration other deferred benefits to its employees in accordance with the of Trust. provision of section 457 of the Internal Revenue Code of (p) Trust Property.The amounts held in the Retirement Trust 1986, as amended. on behalf of the Public Employers in connection with Deferred (c) Employees. Those employees who participate in Compensation Plans and on behalf of the Public Employer Qualified Plats. Trustees for the exclusive benefit of Employees pursuant to (d) Employer Trust. A trust created pursuant to an Qualified Plans.The Trust Property shall include any income agreement between RC and a Public Employer, or an resulting from the investment to the amounts so held. agreement between RC and a Public Employer for (q) Trustees. The Public Employee Trustees and ICMA/RC administrative services that is not a trust, in either case for the Trustees elected by the Public Employers to serve as members purpose of investing and administering the funds set aside by of the Board of Trustees of the Retirement Trust. such Employer in connection with its Deferred Compensation agreements with its employees or in connection with its Qualified Plan. Article 11. Creation and Purpose of the Trust; (e) Investment Contract. A non-negotiable contract Ownership of Trust Property entered into by the Retirement Trust with a financial Section 2.1 Creation: The Retirement Trust was created by institution that provides for a fixed rate of return on the execution of this Declaration of Trust by the initial investment. Trustees and Public Employers and is established with respect (f) ICMA. The International Ciry/County Management to each participating Public Employer by adoption of this Association. Declaration of Trust. (g) ICMA/RC Trustees. Those Trustees elected by the Section 2.2 Purpose: The purpose of the Retirement Taut Public Employers who, in accordance with the provisions of is to provide for the commingled investment of funds held by Section 3.1(a) hereof, are also members of the Board of the Public Employers in connection with their Deferred Directors of ICMA or RC (or in the case of RC, former Compensation and Qualified Plans. The Trust Property shall members of the RC Board). be invested in the Portfolios,in Investment Contracts, and in (h) Investment Adviser. The Investment Adviser that enters other investments recommended by the Investment Adviser into a contract with the Retirement Trust to provide advice under the supervision of the Board of Trustees. No part of the with respect to investment of the Trust Property. Trust Property will be invested in securities issued by Public (i) Portfolios. The separate commingled accounts of Employers. investment established by the Investment Adviser to the Section 2.3 Ownership of Trust Property: The Trustees Retirement Trust, under the supervision of the Trustees,for shall have legal title to the Trust Property. The Public Em- the purpose of providing investments for the Trust Property. ployers shall be the beneficial owners of the portion of the 0) Public Employee Trustees. Those Trustees elected by Trust Property allocable to the Deferred Compensation Plans. the Public Employers who,in accordance with the provision The portion of the Trust Property allocable to the Qualified of Section 3.1(a) hereof, are full-time employees of Public Plans shall be held for the Public Employer Trustees for the Employers. exclusive benefit of the Employees. . ... . . . . . .. .. . . . . . . . .... . . . . . . . . . . .. ... . .. . ..... .. . ... . . . . . . . . . . .. . . . ... . . . . . ... . . . . . . .EXHIBIT. . Thirteers 1CMA RETIREMENT CORPORATION Article III. Trustees unexpired portion of the term of the Trustee who has resigned Section 3.1 Number and Qualification of Trustees: or otherwise ceased to be a Trustee. The appointment shall be (a)The Board of Trustees shall consist of nine Trustees. Five of made by a written instrument signed by a majority of the the Trustees shall be full-time employees of a Public Employer Trustees. The person appointed must be the same type of (the Public Employee Trustees)who are authorized by such Trustee (i.e., Public Employee Trustee or ICMA/RC Trustee) Public Employer to serve as Trustee. The remaining four as the person who has ceased to be a Trustee. An appointment Trustees shall consist of two persons who, at the time of of a Trustee may be made in anticipation of a vacancy to occur election to the Board of Trustees, are members of the Board of at a later date by reason of retirement or resignation, provided Directors of ICMA and two persons who, at the time of that such appointment shall not become effective prior to such election, are members or former members of the Board of retirement or resignation. Whenever a vacancy shall occur, Directors of RC (the ICMA/RC Trustees). One of the until such vacancy is filled as provided in this Section 3.5, the Trustees who is a director of ICMA, and one of the Trustees Trustees in office, regardless of their number, shall have all the who is a director of RC,shall, at the time of election,be full- Powers granted to the Trustees and shall discharge all the duties time employees of Public Employers. (b) No person may imposed upon the Trustees by this Declaration. A written serve as a Trustee for more than two terms in any ten-year instrument certifying the existence of a vacancy signed by a period. majority of the Trustees shall be conclusive evidence of the Section 3.2 Election and Term: (a) Except for the Trust- existence of such vacancy. ees appointed to fill vacancies pursuant to Section 3.5 hereof, Section 3.6 Trustees Serve in Representative Capacity: the Trustees shall be elected by a vote of a majority of the By executing this Declaration, each Public Employer agrees voting Public Employers in accordance with the procedures set that the Public Employee Trustees elected by the Public forth in the By-Laws. (b) At the first election of Trustees, Employers are authorized to act as agents and representatives of three Trustees shall be elected for a term of three years, three the Public Employers collectively. Trustees shall be elected for a term of two years and three Trustees shall be elected for a term of one year.At each subsequent election, three Trustees shall be elected, each to Article IV. Powers of Trustees serve for a term of three years and until his or her successor is Section 4.1 General Powers: The Trustees shall have the elected and qualified. power to conduct the business of the Trust and to carry on its Section 3.3 Nominations: The Trustees who are full-time operations. Such power shall include, but shall not be limited employees of Public Employers shall serve as the Nominating to, the power to: Committee for the Public Employee Trustees. The Nominating (a) receive the Trust Property from the Public Employers, Committee shall choose candidates for Public Employee Trustee Public Employer Trustees or the trustee or administrator in accordance with the procedures set forth in the By-Laws. under any Employer Trust; Section 3.4 Resignation and Removal: (a) Any Trustee (b) enter into a contract with an Investment Adviser may resign as Trustee (without need for prior or subsequent providing, among other things, for the establishment and accounting) by an instrument in .uniting signed by the Trustee operation of the Portfolios, selection of the Investment and delivered to the other Trustees and such resignation shall Contracts in which the Trust Property may be invested, be effective upon such delivery, or at a later date according to selection of the other investments for the Trust Property the terms of the instrument. Any of the Trustees may be and the payment of reasonable fees to the Investment removed for cause, by a vote of a majority of the Public Adviser and to any sub-investment adviser retained by Employers. (b) Each Public Employee Trustee shall resign his the Investment Adviser, or her position as Trustee within si\ry days of the date on (c) review annually the performance of the Investment which he or she ceases to be a full-time employee of a Public Adviser and approve annually the contract with such Employer. Investment Adviser; Section 3.5 Vacancies: The term of office of a Trustee shall (d) invest and reinvest the Trust Property in the Portfolios, terminate and a vacancy shall occur in the event his or her the Investment Contracts and in any other investment death,resignation, removal,adjudicated incompetence or other recommended by the Investment Adviser,but not incapacity to perform the dudes of the office of a Trustee. In including securities issued by Public Employers, the cue of a vacancy, the remaining Trustees shall appoint provided that if a Public Employer has directed that its " ;uch person as they in their discretion shall see fit (subject to monies be invested in one or more specified Portfolios the limitations set forth in this Section), to serve for the or in an Investment Contract, the Trustees of the . .. .. ...... ...... . . . . . . .. .. . . . . . . . . . .. . . . . . .. . ..... ... . . ... . . . ... . . . . . . . . . . . . . . . . ... . . . . . . . . . . . .... . . . . . . ... Fourteen 457 Plan Adoption Package Retain Document Declaration of Trust of the ICMA Retirement Trust , January 1995 Retirement Trust shall invest such monies in accordance expenses from of the Trust Property; with such directions; (m)pay expenses properly allocable to the Trust Property (e) keep such portion of the Trust Property in cash or cash incurred in connection with the Deferred balances as the Trustees,from time to time, may deem Compensation Plans, Qualified Plans, or the Employer to be in the best interest of the Retirement Trust created Trusts and deduct such expenses from that portion of hereby without liability for interest thereon; the Trust Property to which such expenses are properly (f) accept and retain for such time as they may deem allocable; advisable any securities or other property received or (n) pay out of the Trust Property all real and personal acquired by them as Trustees hereunder,whether or not property taxes, income taxes and other taxes of any and such securities or other property would normally be all kinds which, in the opinion of the Trustees, are purchased as investment hereunder; properly levied, or assessed under existing or future laws (g) cause any securities or other property held as part of the upon, or in respect of, the Trust Property and allocate Trust Property to be registered in the name of the any such taxes to the appropriate accounts; Retirement Trust or in the name of a nominee, and to (o) adopt, amend and repeal the By-laws, provided that hold any investments in bearer form,but the books and such By-laws are at all times consistent with the terms of records of the Trustees shall at all tuna show that all this Declaration of Trust; such investments are a part of the Trust Property; (p) employ persons to make available interests in the (h) make, execute, acknowledge,and deliver any and all Retirement Trust to employers eligible to maintain a documents of transfer and conveyance and any and all Deferred Compensation Plan under Section 457 or a other instruments that may be necessary or appropriate Qualified Plan under Section 401 of the Internal to carry out the powers herein granted; Revenue Code, as amended; (i) vote upon any stock,bonds, or other securities; give (q) issue the Annual Report of the Retirement Trust,and general or special proxies or powers of attorney with or the disclosure documents and other literature used by without power of substitution; exercise any conversion the Retirement Trust; privileges,subscription rights,or other options, and (r) in addition to conducting the investment program make any payments incidental thereto; oppose, or authorized in Section 4.1(d),make loans, including the consent to, or otherwise participate in, corporate purchase of debt obligations, provided that all such loans reorganizations or to other changes affecting corporate shall bear interest at the current market rate; securities, and delegate discretionary powers and pay any (s) contract for, and delegate any powers granted hereunder assessments or charges in connection therewith; and generally exercise any of the power of an owner with to, such officers, agents, employees, auditors and respect to stocks,bonds, securities or other property attorneys as the Trustees may select,provided that the held as part of the Trust Property; Trustees may not delegate the powers set forth in paragraphs (b), (c) and (o) of this Section 4.1 and may G) enter into contracts or arrangements for goods or not delegate any powers if such delegation would violate services required in connection with the operation of their fiduciary duties; the Retirement Trust, including, but not limited to, (t) provide for the indemnification of the Officers and contacts with custodians and contracts for the provision Trustees of the Retirement Trust and purchase fiduciary of administrative services; insurance; (k) borrow or raise money for the purposes of the (u) maintain books and records,including separate accounts Retirement Trust in such amount, and upon such terms and conditions,as the Trustees shall deem advisable, for each Public Employer,Public Employer Trustee or Employer Trust and such additional separate accounts as provided that the aggregate amount of such borrowings shall not exceed 30'�0 of the value of the Trust Property. are required under, and consistent with, the Deferred No person lending money to the Trustees shall be Compensation or Qualified Plan of each Public Employer;and bound to see the application of the money lent or to inquire into its validity, expediency or propriety or any (v) do all such acts, take all such proceedings, and exercise such borrowing; all such rights and privileges, although not specifically (1) incur reasonable expenses as required for the mentioned herein, as the Trustees may deem necessary or appropriate to administer the Trust Property and to operation of the Retirement Trust and deduct such carry out the purposes of the Retirement Trust. .... .. . ..... .... . . . ... .. .. . ... . . . ... . . .. . . . .. ........ . . . . . . . . . . . . . . . . .. . .. . . . . .. . . . . .. . ... . ... ..... . . . ... ... . Fifteen ICNIA RETIREMENT CORPORATION Section 4.2 Distribution of Trust Property: Distributions Article VI. Annual Report to Shareholders of the Trust property shall be made to, or on behalf of, the The Trustees shall annually submit to the Public Employers v. Public Employer or Public Employer Trustee,in accordance and Public Employer Trustees a written report of the transac- Pvith the terms of the Deferred Compensation Plans, Qualified lions of the Retirement Trust, including financial statements Plans or Employer Trusts. The Trustees of the Retirement which shall be certified by independent public accountants Trust shall be fully protected in making payments in accor- chosen by the Trustees. dance with the directions of the Public Employers, Public Employer Trustees or trustees or administrators of any Em- Article VII. Duration or Amendment ployer Trust without ascertaining whether such payments are in compliance with the provisions of the applicable Deferred of Retirement Trust Compensation or Qualified Plan or Employer Trust. Section 7.1 Withdrawal: A Public Employer or Public Section 4.3 Execution of Instruments: The Trustees may Employer Trustee may, at any time, withdraw from this unanimously designate any one or more of the Trustees to Retirement Trust by delivering to the Board of Trustees a execute any instrument or document on behalf of all, including written statement of withdrawal. In such statement, the Public but not limited to the signing or endorsement of any check Employer or Public Employer Trustee shall acknowledge that and the signingof an applications, insurance and other The Trust Property allocable to the Public Employer is derived y PP contracts, and the action of such designated Trustee or Trust- from compensation deferred by employees of such Public ees shall have the same force and effect as if taken by all the Employer pursuant to its Deferred Compensation Plan or from Trustees. contributions to the accounts of Employees pursuant to a Qualified Plan,and shall designate the financial institution to Article V. Duty of Care and Liability of Trustees which such property shall be transferred by the Trustees of the Section 5.1 Duty of Care: In exercising the pourers herein- Retirement Trust or by the trustee or administrator under an before granted to the Trustees, the Trustees shall perform all Employer Trust. acts within their authority for the exclusive purpose ofprovid- Section 7.2 Duration: The Retirement Trust shall continue ing benefits for the Public Employers in connection with until terminated by the vote of a majority of the Public Deferred Compensation Plans and Public Employer Trustees Employers, each casting one vote. Upon termination, all of pursuant to Qualified Plans, and shall perform such acts with the Trust Property shall be paid out to the Public Employers, the care,skill,prudence and diligence in the circumstances Public Employer Trustees or the trustees or administrators of then prevailing that a prudent person acting in a like capacity the Employer Trusts, as appropriate. and familiar with such matters would use in the conduct of an Section 7.3 Amendment: The Retirement Trust may be enterprise of a like character and with like aims. amended by the vote of a majority of the Public Employers, Section 5.2 Liability: The Trustees shall not be liable for any each casting one vote. mistake of judgment or other action taken in good faith,and Section 7.4 Procedure: A resolution to terminate or amend for any action taken or omitted in reliance in good faith upon the Retirement Trust or to remove a Trustee shall be submit- the books of account or other records of the Retirement Trust, ted to a vote of the Public Employers if: (i) a rriajority of the upon the opinion of counsel, or upon reports made to the Trustees so direct, or; (ii) a petition requesting a vote signed by Retirement Trust by any of its officers, employees or agents or not less that 25 percent of the Public Employers, is submitted by the Investment Adviser or any sub-investment adviser, to the Trustees. accountant, appraiser or other expert or consultant selected with reasonable care by the Trustees, officers or employees of the Retirement Trust. The Trustees shall also not be liable for Article Vlll. Miscellaneous any loss sustained by the Trust Property by reason of any Section 8.1 Governing Law: Except as otherwise required investment made in good faith and in accordance with the by state or local law, this Declaration of Trust and the Retire- standard of care set forth in Section 5.1. ment Trust hereby created shall be construed and regulated by Section 5.3 Bond: No Trustee shall be obligated to give any the laws of the District of Columbia. bond or other security for the performance of any of his or her Section 8.2 Counterparts: This Declaration may be dudes hereunder. executed by the Public Employers and Trustees in two or more counterparts, each of which shall be deemed an original but all of which together shall constitute one and the same instrument. . . . . . .. . .. ... .. . .. . .. . .. .. . . .. .. . . . . .... . . ............ . . . ... . .. . . . . . . ..... . . . . . . . . . . . . . . . . .. . . . . . . .... .. . . .. . St xtttn 457 Plan Loan .Guidelines Name of Plan: City of Kent. Washingtnn 1. Purpose The purpose of these guidelines is to establish the terms and conditions under which the employer will grant loans to participants.This is the only official Loan Program Document of the above named Plan. 11. Eligibility Loans are available to all active employees.Loans will not be granted to participants who have an existing loan in default. Loans will be pro-rated among all the funds in which the participant is invested at the time the loan is made. Loans are available for the following purposes:' [select one] All purposes ❑ Loans shall only be granted in the event of a participant's hardship or for the purpose of enabling a participant to meet certain specified financial situations.The employer shall deter- mine,based on all relevant facts and circumstances,that the amount of the loan is not in excess of the amount required to relieve the financial need.For this purpose,financial need shall include,but not be limited to:unreimbursed medical expenses of the participant or members of the participant's immediate family,establishing or substantially rehabilitating the principal residence of the participant,or paying for a college education (including graduate studies) for the participant or his/her dependents. Ill. Frequency of loans [select one] 10 Participants may receive one loan per calendar year.Moreover,participants may have only one outstanding loan at a time. ❑ Participants may receive one loan per calendar year.Moreover,no participant may have more than five (5) loans outstanding at one time. EXHIBIT G ... ... . ...... ....... .... ... .... ..... .... ... ... .. . .... . . . .. . .. . .... . .. . ...... .. . .. . ... ...... .. .... 0ne ICMA RETIREMENT CORPORATION IV. Loan amount The minimum loan amount is $1,000. The maximum amount of all loans to the participant from the plan and all other plans sponsored by the employer that are qualified employer plans under section 72(p)(4) of the Code is the lesser of (1) 550,000,reduced by the excess (if any) of: a. The highest outstanding balance of loans during the one-year period ending on the day before the date a loan is to be made,over b. The outstanding balance of loans on the date the loan is to be made; or (2) one half of the participant's vested account balance. If a participant has any loans outstanding at the time a new loan is requested,the new loan will be limited to the maximum amount calculated above reduced by the total of the outstanding loans. A loan cannot be issued for more than the above amount.The participant's requested loan amount is subject to downward adjustment without notice due to market fluctuation between the time of application and the time the loan is made. V. Length of loan A loan must be repaid in substantially equal installments of principal and interest,at least monthly,over a period that does not exceed five (5) years. Loans for a principal residence must be repaid in substantially equal installments of principal and interest,at least monthly,over no more than 15 [state number of years] years (maximum 30 years). Vl. Loan repayment process Loans for active employees must be repaid through payroll deduction.Repayment will begin as soon as practicable on a date determined by the employer's payroll cycle. Loans outstanding for former employees or employees on a leave of absence must be repaid on the same schedule as if payroll deductions were still being made unless they reamortize their loans and establish a new repayment schedule that provides that substantially equal payments are made at least monthly over the remain- ing period of the loan.All repayments must be made through the employer. Loan payments,including loan payments from former employees,are allocated to the participant's current election of investment options on file with RC. The participant may pay off all or a portion of the principal and interest early without penalty or additional fee.Extra payments are applied forward to both principal and interest as specified in the original repayment schedule,unless the additional payment is for the balance due. ......... .... ... ...... .. . ... .... .... ........ . . .. . .. . . . ... . .. .. . . ...... .. ...... ... ... .......... .. . tWo 457 Plan Loan Guidelines VI1. Loan interest rate The rate of interest for loans of five(5) years or less will be based on prime plus 0.5%. The rate of interest for loans for a principal residence will be based on the FHA/VA rate. Interest rates arc determined on the last business day of the month preceding the month the loan is disbursed.The interest rate is locked in at the time a loan is approved and remains constant throughout the life of the loan. The prime interest rate is determined on the last business day of each month using the Wall Street Journal as the source.The FHA/VA interest rate is also determined on the last business day of each month using the Telerate Information Service as the source. Loan interest rates for new loans may fluctuate upward or downward monthly,depending on the movement of the prime and FHA/VA interest rates. The employer may modify the manner in which loan interest rates will be determined,but only with respect to future loans. Vlll. Loan application procedure All loans must be requested in writing on an application approved by the plan administrator.The application must be signed by the participant.The employer must review and approve the application. The participant will be required to sign a promissory note evidencing the loan and a disclosure statement that includes an amortization schedule prior to receiving a loan check.Loan checks will generally be issued on the Friday following the receipt of a complete loan application.The loan check,promissory note,disclosure statement and truth-in-leading recision notice will be sent to the employer,who will obtain the necessary signatures and deliver the check to the participant.All executed documents must be returned to the plan administrator within 10 calendar days from the date the check is issued. 1X. Security/Collateral That portion of a participant's account balance that is equal to the amount of the loan is used as collateral for the loan.The collateral amount may not exceed 50 percent of the participant's account balance at the time the loan is taken. Only that portion of the account balance that corresponds to the amount of the outstanding loan balance is used as collateral. X. Acceleration [select one] ($1 All loans are due and payable in full upon separation from service. ❑ All loans are due and payable when a participant receives a distribution of all of his/her account balance after separation from service.The amount of the outstanding loan balance will be reported as a distribution in addition to the amount of cash distributed from the plan. ❑ All loans are due and payable when a participant receives a distribution of part of his/her account balance after separation from service.The amount of the outstanding loan balance will be reported as a distribution in addition to the amount of cash distributed from the plan. ... . . . . .. .... .. . .. . .. .. . . .. .. . .... ......... .. .. . ...... . ... ..... ... . .. . . .... ... . ..... . . .... ... .... three ICMA RETIREMENT CORPORATION XI. Reamortization Any outstanding loan may be reamortized.Reamortization means changing the terms of a loan,such as length of repayment period,interest rate,and frequency of repayments.A loan may not be reamortized to extend the Y length of the loan repayment period to more than five (5) years from the date the loan was originally made,or in the cue of a loan to secure a principal residence,beyond the number of years specified by the employer in SectionV above. A participant must request the reamortization of a loan in writing on a reamortization application acceptable to the plan administrator.Upon processing the request,a new disclosure statement will be sent to the em- ployer for endorsement by the participant and approval by the employer.The executed disclosure statement must be returned to the plan administrator within 10 calendar days from the date it is signed.The new disclo- sure statement is considered an amendment to the original promissory note,therefore a new promissory note will not be required. A reamortization will not be considered a new loan for purposes of calculating the number of loans outstand- ing or the one loan per calendar year limit. XII. Refinancing existing loans If a participant has one outstanding loan,that loan may be refinanced. If a participant has more than one outstanding loan,no loans may be refinanced.Refinancing means concurrently repaying an existing loan and borrowing an additional amount through a new loan.A participant may not refinance a residential loan. In order to refinance an existing loan,a participant must request a new loan in writing on an application approved by the plan administrator.Such request must be made at a time when the participant is eligible to obtain a loan as defined by the employer in Section III above.The amount of a new loan requested for the purpose of refinancing is subject to the loan limits specified in Section IV above. Because a refinancing is considered a new loan,only active employees may refinance an outstanding loan. XII1. Reduction of Loan If a participant dies prior to full repayment of the outstanding loan(s),the outstanding loan balance(s) will be deducted from the account prior to distribution to the beneficiary(ies).The unpaid loan amount is a taxable distribution and may be subject to early withdrawal penalties.The participant's estate is responsible for taxes or penalties on the unpaid loan amount,if any.The beneficiary is responsible for taxes due on the amount he/she receives.A Form 1099 will be issued to both the beneficiary and the estate for these purposes. . ...... . . . .. .. . .... . . .... . .. ... .. ... ... .. .. .. . .. . .. .... .. . . . . .. ... .. . . . . ... . .. ... . . .. .. . .. ... . . . . Jour 457 Plan Loan Cuidtlints XIV. Loan default If a required payment of principal and interest is not made within 90 days of the date such payment is due,the loan is considered in default.If a loan is in default,the loan will be foreclosed during the calendar year in which the participant separates from service.If a participant has separated from service and defaults on a loan, then the loan will be foreclosed during the calendar year in which the default occurs. If the employer has elected in Section X,and the promissory note so provides,a loan becomes due and payable when the participant separates from service.If the terms of the loan contain this provision,the outstanding loan amount is"deemed"in default as of the date of separation from service.The amount of the outstanding loan,including accrued interest,will be reported to the IRS as a distribution that may be subject to taxes. If the employer has so elected in Section X,and the promissory note so provides,a loan becomes due and payable when the participant takes a distribution of some or all of the balance in his/her account after separa- tion from service.If the terms of the loans contain such a provision and the outstanding loan balance is not paid prior to the distribution from the account,the outstanding loan amount will be considered in default upon issuance of the distribution check.The amount of the outstanding loan,including accrued interest,will be reported to the IRS as a distribution that may be subject to taxes.Participants who have an existing loan in default will not be eligible for additional loans. XV. Fees Fees may be charged for various services associated with the application for and issuance of loans.All appli- cable fees will be debited from the participant's account balance and/or from the participant's loan repayments prior to crediting the repayment of principal and interest to the participant's account.A schedule of fees applicable to this plan is available from the plan administrator. XVI. Other The employer has the right to set other terms and conditions as it deems necessary for loans from the plan in order to comply with any legal requirements.All terms and conditions will be administered in a uniform and non-discriminatory manner. In Witness Whereof, the employer hereby caused these Guidelines to be executed this day of , 19 EMPLOYER Accepted: ICMA RETIREMENT CORPORATION By: By: Title: Title: Attest: Attest: . ... .. . . . .... .. .... .. .. .. . .. .. . . . ... ... . .. . .. . . . .. . . .. . . . . .. . .. . .. . ... .. . .. . . . . ..... .... .. . .. . .. . five EXIMIT D AFFIRMATIVE STATEMENT FOR AMENDING A DEFERRED COMPENSATION PLAN Name of Employer: CITY OF KENT State: WASHINGTON 3 /0 / 1 /6 /5 15 / Employer Plan Number As a duly authorized agent of the above named Employer,I hereby amend and restate the Employer's Deferred Compensation Plan("the Plan")in the form of the ICMA Retirement Corporation Deferred Compensation Plan and Trust. Specifically,the assets of the Plan shall be held in trust, with the Employer serving as trustee, for the exclusive benefit of the Plan participants and their beneficiaries, and the assets shall not be diverted to any other purpose. The Employer's beneficial ownership of the Plan assets held in the ICMA Retirement Trust shall be held for the further exclusive benefit of the Plan participants and their beneficiaries; The above named employer stipulates that the Plan will permit loans; and affirms that the Employer hereby agrees to serve as trustee under the Plan. (Signature) (title of Designated Agent) (Date) EXHIBIT. Explanation of 457 Small Balance Account Distributions JCMAReNranentUrporatlon and Employer Checklist P.O.Box96220 Washington,DC 20090.6220 lass •RC Employer: To assist, you may complete both sides of this worksheet '`✓'OOR �pN to determine if the participant is eligible for a small balance account 202-962-4600 FAX 962-4601 distribution. Toll Free 1-e00-669•74W Explanation of 457 Small The small balance account distribution provision allows one-time employer-or employee-initiated distributions of 457 Balance accounts with balances of$3,500 or less that have not received contributions for at least two years.Transfers from another Account employer's 457 plan or from another plan offered by the current employer are not considered contributions.In addition,a Distributions participant may not have received any prior distribution from the plan other than an emergency withdr2w2L A small balance withdrawal may occur while a participant is employed or after termination of employment.To initiate such a withdrawal,the small balance account distribution provision must be included in the employers plan document. For employers with multiple 457 plan providers,a key issue in determining whether a participant is eligible for a 457 small account balance distribution is whether the employer considers these providers to be part of one 457 plan or as providing separate plans. If the employer considers these providers as par of one plan,the assets in the 457 accounts maintained by all providers for the participant must be aggregated for purposes of determining whether the participant is eligible for a small balance distribution. If the employer considers these providers as providing separate plans,the accounts under each provider may be considered separately for purposes of determining whether the participant is eligible for a small balance distribution. RC must receive requests by 12 noon Eastern Time on Wednesday in order to process a payment for Friday of that week. Payments may be too small to automatically generate taxes to be withheld.In all cases,the participant should submit the appropriate federal and/or state forms W-4 with this form. Employers RC Employer:To assist,you may use the following worksheet to determine if the participant is eligible for a small balance Payment account distribution(de minimis withdrawal). If you are able to check one box in each of the three categories below for a Determination particular participant,that participant is eligible for a small balance account distribution.Small balance account distributions Worksheet may be initiated solely b the employer;the participant does not need to consent nor can the participant prevent the employer Y Y YP P Pa P P For from initiating payment. Employer's Use Only 1.Account balance is$3,500 or less.Check the QU box next to the applicable situation: ❑ RC is sole provider for this plan and the participants current account balance is$3,500 or less. ❑ The employer offers a choice of providers,but RC is the only provider maintaining an account with a balance for the participant and the RC account balance is currently$3,500 or less. The employer offers a choice of providers and accounts with balances are maintained by multiple providers for the participant: 1 a) ❑ The employer considers these multiple providers as offering multiple plans;therefore,the amount in each plan is rn w considered separately.The balance in the RC plan is$3,500 or less. ri Y � LL The employer considers these multiple providers to be part of one plan;therefore,the assets in the 457 accounts for the O Z participant must be aggregated for purposes of determining whether the participant is eligible for a small balance 0 distribution.The total amount in all accounts of all providers is$3,500 or less.(The participant must withdraw the d 50 total amount from all other providers at the same time as the withdrawal from RC.) C 2.Account has been inactive for at least 24 months.Transfers from another employers 457 plan or from another plan offered by you are not considered contributions. Check the=box next to the applicable situation: ❑ RC is sole provider for this plan and the paricipant's current account has been inactive for 24 months or more. ❑ The employer offers a choice of providers,but RC is the only provider maintaining an account with a balance for the participant and the RC account has been inactive for 24 months or more. The employer offers a choice of providers and accounts with balances are maintained by multiple providers for the participant: ❑ The employer considers these multiple providers as offering multiple plans;therefore,contributions into each plan are _. considered separately.No contributions have been made to the account in the RC plan for 24 months or more. ❑ The employer considers these multiple providers to be part of one plan;therefore,contributions into the 457 accounts for the participant must be aggregated for purposes of determining whether the participant is eligible for a small balance distribution.No contributions have been made into any of the accounts for 24 months or more.(The participant must withdraw the total amount from all other providers at the same time as the withdrawal from RC.) EX H I I T (continued on back) 457 Small Balance Account Distribution Form ICMA Retirement Corporation •PLEASE READ ALL INSTRUCTIONS ON THE FRONT OF THIS FORM CAREFULLY BEFORE P.O.Box 96220 COMPLETING THIS FORM. Washington,DC 20090-6220 10A& Rrmtt-N a • Participants,after completing and signing this form,submit it to your employer for processing. 202-962-4600 FAX 9r1 ]1 tx>aroa�no� . RC must receive requests by 12 noon Eastern Time on Wednesday in order to process a payment for Friday of that week. - - Toll Free 1-800.669-7400 Em elo Zer Plan Number Em to 4r.;Vlan Name Participant 13101 Information Social Security Number Daytime Phone Number State All Informs- ��_ m_ F� m lion in this L—LJ �l�J Mu Code Box Must Always be Name of Participant Completed to Avoid a Delay in Last First M.1. Processing. —_ _P�r�anent Address _ -�-- Zp Code Mailing Address for Payments(If different from permanent address): For state tax purposes, please declare your residency state when receiving this payment: wlY If not completed, RC will use the state noted under the permanent address section. As required bylaw and under penalty of perjury"-I certify that the Social Security Number(Taxpayer Identificar'-z Number)I provided for myself is correct. Participant Signature: Date To the participant: Stop here after signing the form. Please submit the form to your employer, who will forward it to RC. 2 RC Employer: To assist,you may complete the worksheet on the front of this form to determine if the --- 1#mploy rt tparit ist bIt faYa's RF%lance a ccounc$isrrfbutios(fie=m'xt Ti—nis"with7irawal):`TheYt tnasf be oite"'" Auttlhlonzation check for each,of the two categories. For Employers I certify that the participant listed above is eligible to receive the one-time small balance account distribu- Use Only tiot}from this plan. Employer's Signature: Date Name of Employer Authorized Official (Please Print): Employer Authorized Official's Title: < .. fit tst • RC Copy 2nd • Employer Copy 3rd • Employee Copy FRM571-007-9612 i ORDINANCE NO. AN ORDINANCE of the City Council of the City of Kent, Washington, amending and restating the City's I.R.C. Section 457 Deferred Compensation Plan with ICMA Retirement Corporation, confirming a Declaration of Trust, establishing the City of Kent as trustee, implementing plan and trust program loan guidelines, amending Ordinance 2541 relating to administration of the City's Internal Revenue Code Section 457 Plan and Trust Programs, and authorizing small balance account distributions. WHEREAS, the employees of the City of Kent ("City") render valuable services; and WHEREAS, the City has established a deferred compensation plan administered by ICMA Retirement Corporation("ICMA") for the benefit of its employees by providing increased flexibiltiy in its personnel management system, and by assisting in the attraction and retention of competent personnel; and WHEREAS, the City has determined that the continuance of the deferred compensation plan will serve these objectives; and WHEREAS, amendments to the Internal Revenue Code ("I.R.C.") require changes to the structure of the deferred compensation plan and allow enhancements of the benefits of the deferred compensation plan; and dCMA §457 Plan Amendments WHEREAS, ICMA has provided updated plan and trust documents that include participant loan features; and WHEREAS, the City desires to make participant loans available under the plan and trust. NOW, THEREFORE. THE CITY COUNCIL OF THE CITY OF KENT, WASHINGTON,DOES HEREBY ORDAIN AS FOLLOWS: SECTION 1. Plan and Trust Amended The City adopts the Deferred Compensation Plan and Trust Document(the "Plan"), attached and incorporated as Exhibit A, as the amendment and restatement of its existing deferred compensation program administered by ICMA, and confirms the continuing appointment of ICMA to serve as Administrator under the Plan. SECTION 2. Declaration of Trust Adopted. The City confirms the Declaration of Trust of ICMA Retirement Trust (the "Trust"), attached and incorporated as Exhibit B, for its existing deferred compensation program administered by ICMA. SECTION 3. Plan Assets to be Held in Trust: City as Trustee. The assets of the Plan shall be held in trust, with the City serving as Trustee, for the exclusive benefit of the Plan and its participants and their beneficiaries, and the assets shall not be diverted to any other purpose. The Trustee's beneficial ownership of Plan assets held in the ICMA Retirement Trust shall be held for the further exclusive benefit of the Plan participants and their beneficiaries. The City confirms and agrees to serve as Trustee under the Plan. SECTION 4. Plan Executed. The City hereby executes the Plan. CMA §457 Plan Amendments SECTION 5. Participant Loan Program Established As of the effective date of this ordinance and acceptance of this ordinance, including all exhibits, by ICMA, the City elects to make loans available to participants pursuant to Article VIII of the Plan and adopts the 457 Plan Loan guidelines attached and incorporated as Exhibit C. subject to approval of those guidelines by the Plan Administrator. SECTION 6. Mayor Authori ed to Execute Necessary Documents. The Mayor is authorized to sign the Affirmative Statement,attached and incorporated as Exhibit D, as well as all other documents necessary to implement the Plan under this ordinance. SECTION 7. Q:V Plan and Trust Administrator. Section One of Ordinance 2541, which amends Section Four of Ordinance 2361, is amended as follows: Gemmifte I witielt _Lail ea ist of three-persons � IILG period Gll , Said ^---="-e The Employee Services Division Director or her or his designate, shall administer the City's participation in the Deferred Compensation Plan, and the Deferred Compensation Plan Investments hereafter created, and the Deferred Compensation Plan and Trust employee loan 12rogram. and shall have the duties as defined in said Plan. eke members of the 9eferred Gampensatiatt Plan Gatmni The Employ Services Division Director or her or his designate shall have the authority to sell, assign, and transfer units held under annuity contracts in the name of the City of Kent Deferred Compensation 457 Plan and Trust and to deliver any and all written instruments necessary or proper to effectuate such transactions. M CMA §457 Plan Amendments 3 I SECTION 9. Authorization to Change Loan Program Guidelines. The Employee Services Division Director, under the authority established in Section 8 of this ordinance, is authorized to effect changes to the Plan Loan Guidelines as are reasonably requested by ICMA or that the Employee Services Division Director determines appropriate to further the purposes of this ordinance. SECTION 10. Small Balance Account Distributions. The Employee Services Division Director, under the authority established in Section 8 of this ordinance, is authorized to execute the necessary documents to implement Section 457 Small Balance Account Distributions under the ICMA Plan, including the documents attached and incorporated as Exhibit E. SECTION 11. Plan and its Investments not Endorsed. The City's continuance of the Plan does not constitute an endorsement of the Plan or of any investment options offered through the Plan. SECTION 12. Ratification. Any act consistent with the authority and prior to the effective date of this ordinance is ratified and confirmed. SECTION 13. Savin All previous ordinances relating to the City's participation in the ICMA 457 Plan that are amended by this ordinance shall remain in full force and effect until the effective date of this ordinance. SECTION 14. Severability. If any one or more sections, subsections, or I sentences of this ordinance are held to be unconstitutional or invalid, such decision shall not affect the validity of the remaining portion of this ordinance and the same shall remain in full force and effect. CMA §457 Plan Amendments 4 SECTION 15. Effective Date. This ordinance shall take effect and be in force five (5) days from its passage, approval and publication as provided by law. JIM WHITE, MAYOR ATTEST: BRENDA JACOBER, CITY CLERK APPROVED AS TO FORM: ROGER A. LUBOVICH, CITY ATTORNEY PASSED: day of 11997. APPROVED: day of . 1997. PUBLISHED: day of 1997. I hereby certify that this is a true copy of Ordinance No. passed by the City Council of the City of Kent, Washington, and approved by the Mayor of the City of Kent as hereon indicated. (SEAL) BRENDA JACOBER, CITY CLERK P-%LAW\ORDINANC1457LOAN.ORD CMA §457 Plan Amendments 5 457 Piau Adoption Package Retsiit Document Deferred Co nip ettsatiott Plan Doru Pit eitt artd Trust , \'a veinber 1996 DEFERRED COMPENSATION PLAN 2.04 Beneficiary: The person or persons designated 1 &TRUST the Participant in his Joinder Agreement who shall receive any benefits payable hereunder in the event of Article 1. Purpose the Participant's death. In the event that the Participant names two or more Beneficiaries, each Beneficiary shall The Employer hereby establishes the Employer's De- be entitled to equal shares of the benefits payable at the ferred Compensation Plan and Trust, hereafter referred Participant's death, unless otherwise provided in the to as the "Plan." The Plan consists of the provisions set Participant's Joinder Agreement. If no beneficiary is forth in this document. designated in the Joinder Agreement, if the Designated Beneficiary predeceases the Participant, or if the desig- The primary purpose of this Plan is to provide retirement nated Beneficiary does not survive the Participant for a income and other deferred benefits to the Employees of the period of fifteen (15) days, then the estate of the Par- Employer and the Employees' Beneficiaries in accordance ticipant shall be the Beneficiary. with the provisions of Section 457 of the Internal Rev- enue Code of 1986, as amended (the "Code"). 2.05 Deferred Compensation: The amount of Nor- mal Compensation otherwise payable to the Participant This Plan shall be an agreement solely between the which the Participant and the Employer mutually agree Employer and participating Employees. The Plan and to defer hereunder, any amount credited to a Trust forming a part hereof are established and shall be Participant's Account by reason of a transfer under maintained for the exclusive benefit of eligible Employ- section 6.09, or any other amount which the Employer ees and their Beneficiaries. No part of the corpus or agrees to credit to a Participant's Account. income of the Trust shall revert to the Employer or be used for or diverted to purposed other than the exclu- 2.06 Employee: Any individual who provides services sive benefit of Participants and their Beneficiaries. for the Employer, whether as an employee of the Employer or as an independent contractor, and who h' Article 11. Definitions been designated by the Employer as eligible to partici- pate in the Plan. 2.01 Account: The bookkeeping account maintained for each Participant reflecting the cumulative amount of 2.07 Includible Compensation: The amount of an the Participant's Deferred Compensation, including any Employee's compensation from the Employer for a income, gains, losses, or increases or decreases in market taxable year that is attributable to services performed for value attributable to the Employer's investment of the the Employer and that is includible in the Employee's Participant's Deferred Compensation, and further gross income for the taxable year for federal income tax reflecting any distributions to the Participant or the purposes; such term does not include any amount Participant's Beneficiary and any fees or expenses excludable from gross income under this Plan or any charged against such Participants Deferred Compensation. other plan described in Section 457(b) of the Code or any other amount excludable from gross income for 2.02 Accounting Date: Each business day that the federal income tax purposes. Includible Compensation New York Stock Exchange is open for trading, as shall be determined without regard to any community provided in Section 6.06 for valuing the Trust's assets. property laws. 2.03 Administrator: The person or persons named to 2.08 Joinder Agreement: An agreement entered into carry out certain nondiscretionary administrative func- between an Employee and the Employer, including any tions under the Plan, as hereinafter described. The amendments or modifications thereof. Such agreement Employer may remove any person as Administrator shall fix the amount of Deferred Compensation, specify upon 60 days' advance notice in writing to such person, a preference among the investment alternatives desig- in which case the Employer shall name another person nated by the Employer, designate the Employee's or persons to act as Administrator. The Administrator Beneficiary or Beneficiaries, and incorporate the term, may resign upon 60 days' advance notice in writing to conditions, and provisions of the Plan by reference. the Employer, in which case the Employer shall name another person or persons to act as Administrator. EXHiBIT A .. . .. . . .. . . .. ... . . ..... . . . . . . . . . . . . . . . . . . . . ... . ... .. . . . . . .. . . . . . . . . . . . ... . . . . . . . .. . . . . . . . ... . . . . . . .. . . . . ... ... ICMA RETIREMENT CORPORATION Normal Compensation: The amount of com- to have actually terminated. In the case of a Participant pensation which would be payable to a Participant by who is an independent contractor of the Employer, the Employer for a taxable year if no Joinder Agreement Separation from Service shall be deemed to have oc- were in effect to defer compensation under this Plan. curred when the Participant's contract under which services are performed has completely expired and 2.10 Normal Retirement Age: Age 70-1/2, unless the terminated, there is no foreseeable possibility that the Participant has elected an alternate Normal Retirement Age Employer will renew the contract or enter into a new by written instrument delivered to the Administrator prior contract for the Participant's services, and is not antici- to Separation from Service. A Participant's Normal Retire- pated that the Participant will become an Employee of merit Age determines the period during which a Participant the Employer. may utilize the catch-up limitation of Section 5.02 hereun- der. Once a Participant has to any extent utilized the catch- 2.15 Trust: The Trust created under Article VI of the up limitation of Section 5.02, his Normal Retirement Age Plan which shall consist of all compensation deferred may not be changed. under the Plan, plus any income and gains thereon, less any losses, expenses and distributions to Participants and A Participant's alternate Normal Retirement Age may Beneficiaries. not be earlier than the earliest date that the Participant will become eligible to retire and receive unreduced Article Ill. Administration retirement benefits under the Employer's basic retire- ment plan covering the Participant and may not be later 3.01 Duties of the Employer: The Employer shall than the date the Participant will attain age 70-1/2. If a have the authority to make all discretionary decisions Participant continues employment after attaining age affecting the rights or benefits of Participants which may 70-1/2, not having previously elected alternate Normal be required in the administration of this Plan. The p -tirement Age, the Participant's alternate Normal Employer's decisions shall be afforded the maximum , ,iirement Age shall not be later than the mandatory deference permitted by applicable law. retirement age, if any, established by the Employer, or the age at which the Participant actually separates from 3.02 Duties of Administrator: The Administrator, as service if the Employer has no mandatory retirement agent for the Employer, shall perform nondiscretionary age. If the Participant will not become eligible to administrative functions in connection with the Plan, receive benefits under a basic retirement plan main- including the maintenance of Participants' Accounts, tained by the Employer, the Participant's alternate the provision of periodic reports of the status of each Normal Retirement Age may not be earlier than age 55 Account, and the disbursement of benefits on behalf and may not be later than age 70-1/2. of the Employer in accordance with the provisions of this Plan. 2.11 Participant: Any Employee who has joined the Plan pursuant to the requirements of Article IV. Article IV. Participation in the Plan 2.12 Plan Year: The calendar year. 4.01 Initial Participation: An Employee may become a Participant by entering into a Joinder Agreement prior 2.13 Retirement: The first date upon which both of the to the beginning of the calendar month in which the following shall have occurred with respect to a participant: Joinder Agreement is to become effective to defer Separation from Service and attainment of age 65. compensation not yet earned. 2.14 Separation From Service: Severance of the 4.02 Amendment of Joinder Agreement: A Partici- Participant's employment with the Employer which pant may amend an executed Joinder Agreement to constitutes a "separation from service" within the change the amount of compensation not yet earned meaning of Section 402(d)(4)(A)(iii) of the Code. In which is to be deferred (including the reduction of such neral, a Participant shall be deemed to have severed future deferrals to zero) or to change his investment Fits employment with the Employer for purposes of this preference (subject to such restrictions as may result Plan when, in accordance with the established practices of from the nature of terms of any investment made by the the Employer, the employment relationship is considered Employer). Such amendment shall become effective as . . .. .. . . . . . .. . . ... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. .. . . . . . . . . ... . . . . ..... . . . . .. Two 45 i Platt Atjapria I Package Retain Document Deferred Compensation Plan Document and Trust , November ] 9 9 6 of the beginning of the calendar month commencing Article VI. Trust and Investment after the date the amendment is executed. A Participant of Accounts may at any time amend his Joinder Agreement to change the designated Beneficiary, and such amendment 6.01 Investment of Deferred Compensation: A shall become effective immediately. Trust is hereby created to hold all the assets of the Plan for the exclusive benefit of Participants and Beneficia- Article V. Limitations on Deferrals ries, except that expenses and taxes may be paid from the Trust as provided in Section 6.03. The trustee shall 5.01 Normal Limitation: Except as provided in section be the Employer or such other person which agrees to 5.02, the maximum amount of Deferred Compensation for act in that capacity hereunder. any Participant for any taxable year shall not exceed the lesser of$7,500.00, as adjusted for the cost-of-living in 6.02 Investment Powers: The trustee or the Plan accordance with Code section 457(e)(15) for taxable years Administrator, acting as agent for the trustee, shall have beginning after December 31, 1996 (the "dollar limita- the powers listed in this Section with respect to invest- tion"), or 33-1/3 percent of the Participant's Includible ment of Trust assets, except to the extent that the Compensation for the taxable year. This limitation will investment of Trust assets is directed by Participants, ordinarily be equivalent to the lesser of the dollar limitation pursuant to Section 6.05. in effect for the taxable year or 25 percent of the Participant's Normal Compensation. (a) To invest and reinvest the Trust without distinction between principal and income in any 5.02 Catch-Up Limitation: For each of the last three form of tangible or intangible property, real, per- (3) taxable years of a Participant ending before his sonal, or mixed, and wherever situated, including, attainment of Normal Retirement Age, the maximum but not by way of limitation, common or preferred amount of Deferred Compensation shall be the lesser of: stocks, shares of regulated investment companies and (1) $15,000 or (2) the sum of(i) the Normal Limitation other mutual funds, bonds, loans, notes, debentures,, for the taxable year, and (ii) the Normal Limitation for mortgages, certificates of deposit, interest, or par- each prior taxable year of the Participant commencing ticipation, equipment trust certificates, commercial after 1978 less the amount of the Participant's Deferred paper including but not limited to participation in Compensation for such prior taxable years. A prior pooled commercial paper accounts, contracts with taxable year shall be taken into account under the insurance companies including but not limited to preceding sentence only if(i) the Participant was eli- insurance, individual or group annuity, deposit gible to participate in the Plan for such year (or in any administration, and guaranteed interest contracts, other eligible deferred compensation plan established deposits at reasonable rates of interest at banking under Section 457 of the Code which is properly taken institutions including but not limited to savings into account pursuant to regulations under section 457), accounts and certificates of deposit, and other forms and (ii) compensation (if any) deferred under the Plan of securities or investments of any kind, class, or (or such other plan) was subject to the deferral limita- character whatsoever and representing interests in tions set forth in Section 5.01 any form of enterprise, wherever it may be located, organized or operated within or without the United 5.03 Other Plans: The amount excludable from a States of America, whether such investments are Participant's gross income under this Plan or any other income producing or not, without being limited in eligible deferred compensation plan under section 457 any respect by statute or court rule or decision of of the Code shall not exceed $7,500.00 (or such greater any jurisdiction now or hereafter in force purporting amount allowed under Sections 5.01 or 5.02 of the to limit or otherwise affect such investments. Assets Plan), less any amount excluded from gross income of the Trust may be invested in securities or new under section 403(b), 402(a)(8), or 402(h)(1)(B) of the ventures that involve a higher degree of risk than Code, or any amount with respect to which a deduction investments that have demonstrated their investment is allowable by reason of a contribution to an organiza- performance over an extended period of time. tion described in section 501(c)(18) of the Code. . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. .. . . .. . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . .. . . . . . .. . . . . . . . . . . . . . . . . .. . Three IC%IA RETIREMENT CORPORATION (b) To invest and reinvest all or any part of the otherwise dispose of any such property, without assets of the Trust in any common, collective or regard to restrictions applicable to fiduciaries or commingled trust fund that is maintained by a bank others and without the approval of any court. or other institution and that is available to Em- ployee plans described under sections 457 or 401 of (g) To sell for cash or credit, redeem, exchange for the Code, or any successor provisions thereto, and other property, convey, transfer, or otherwise during the period of time that an investment dispose of any property held in the Trust in any through any such medium shall exist, to the extent manner and at any time, by private contract or at of participation of the Plan, the declaration of trust public auction or otherwise, and no other person of such common, collective, or commingled trust shall be bound to see to the application of the fund shall constitute a part of this Plan. purchase money or to inquire into the validity, expediency, or propriety of any such sale or other (c) To invest and reinvest all or any part of the disposition. assets of the Trust in any group annuity, deposit administration or guaranteed interest contract issued (h) To enter into contracts for or to make commit- by an insurance company or other financial institu- ments either alone or in company with others to tion on a commingled or collective basis with the purchase or sell at any future date any properry assets of any other 457 plan or trust qualified under acquired for the Trust. section 401(a) of the Code or any other plan de- scribed in section 401(a)(24) of the Code, and such (i) To vote or to refrain from voting any stocks, contract may be held or issued in the name of the bonds, or other securities held in the Trust, to Plan Administrator, or such custodian as the Plan exercise any other right appurtenant to any securi- Administrator may appoint, as agent and nominee ties or other property held in the Trust, to give for the Employer. During the period that an invest- general or special proxies or powers of attorney with ment through any such contract shall exist, to the or without power of substitution with respect to extent of participation of the Plan, the terms and such securities and other property, to exercise any conditions of such contract shall constitute a part of conversion privileges, subscription rights, or other the Plan. options or privileges with respect to such securities and other property and.make any payments inciden- (d) To purchase part interests in real property or in tal thereto, and generally to exercise, personally or mortgages on real property, wherever such real by general or limited power of attorney, any of the property may be situated, and to delegate to a powers of an owner with respect to stocks, bonds, property manager or the holder or holders of a securities, or other property held in the Trust at majority interest in such real property or mortgage any time. on real property the management and operation of any part interest in such real property or mortgages. (j) To oppose or to consent to and participate in any organization, reorganization, consolidation, (e) To hold cash awaiting investment and to keep merger, combination, readjustment of finances, or such portion of the Trust in cash or cash balances, similar arrangement with respect to any corporation, without liability for interest, in such amounts as may company, or association, any of the securities of from time to time be deemed to be reasonable and which are held in the Trust, to do any act with necessary to meet obligations under the Plan or reference thereto, including the exercise of options, otherwise to be in the best interests of the Plan. the making of agreements or subscriptions and the payment of expenses, assessments, or subscriptions (f) To retain, manage, operate, administer, divide, that may be deemed necessary or advisable in subdivide, partition, mortgage, pledge, improve, connection therewith, and to accept, hold, and alter, demolish, remodel, repair, and develop in any retain any securities or other property that may be manner any property, or any part of or partial so acquired. y interest in any property, real or personal, held in the Trust, to lease such property for any period of time, and to grant options to sell, exchange, lease, or .. . . . . . . .. . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . .... . . . . . . . . . . . . ... . . . . . . . . . . . . . ..... Four 43 i Plait A doption Park : a e R e t i i n Docu ru en t De (crred C , inpensarioit Plan Dorunient and Trust , Xovetaber 1996 (k) To deposit any property held in the Trust with (o) To make, execute, acknowledge, and deliver any protective, reorganization, or similar commit- any and all deeds, leases, mortgages, conveyances, - tee; and to delegate discretionary power thereto and contracts, waivers, releases, or other instruments in to pay and agree to pay part of its expenses and writing necessary or proper for the accomplishment compensation and any assessments levied with of any of the foregoing powers. respect to any such property so deposited. (p) To open and maintain any bank account or (1) To hold, to authorize the holding of, and to accounts in the name of the Plan, the Employer, or register any investment to the Trust in the name of any nominee or agent of the foregoing, including the Plan, the Employer, or any nominee or agent of the Plan Administrator, in any bank or banks. any of the foregoing, including the Plan Administra- tor, or in bearer form, to deposit or arrange for the (q) To do any and all other acts that may be deposit of securities in a qualified central depository deemed necessary to carry out any of the powers set even though, when so deposited, such securities may forth herein. be merged and held in bulk in the name of the nominee of such depository with other securities 6.03 Taxes and Expenses: All taxes of any and all deposited therein by any other person, and to kinds whatsoever that may be levied or assessed under organize corporations or trusts under the laws of any existing or future laws upon, or in respect to the Trust, jurisdiction for the purpose of acquiring or holding or the income thereof, and all commissions or acquisi- title to any property for the Trust, all with or tions or dispositions of securities and similar expenses of without the addition of words or other action to investment and reinvestment of the Trust, shall be paid indicate that property is held in a fiduciary or from the Trust. Such reasonable compensation of the representative capacity but the books and records of Plan Administrator, as may be agreed upon from time to the Plan shall at all times show that all such invest- time by the Employer and the Plan Administrator, and ments are part of the Trust. reimbursement for reasonable expenses incurred by the, Plan Administrator in performance of its duties hereun-" (m) Upon such terms as may be deemed advisable der (including but not limited to fees for legal, account- by the Employer or the Plan Administrator, as the ing, investment and custodial services) shall also be paid case may be, for the protection of the interests of from the Trust. the Plan or for the preservation of the value of an investment, to exercise and enforce by suit for legal 6.04 Payment of Benefits: The payment of benefits or equitable remedies or by other action, or to from the Trust in accordance with the terms of the Plan waive any right o-r claim on behalf of the Plan or may be made by the Plan Administrator, or by any any default in any obligation owing to the Plan, to custodian or other person so authorized by the Em- renew, extend the time for payment of, agree to a ployer to make such disbursement. The Plan Adminis- reduction in the rate of interest on, or agree to any trator, custodian or other person shall not be liable with other modification or change in the terms of any respect to any distribution of Trust assets made at the obligation owing to the Plan, to settle, compromise, direction of the Employer. adjust, or submit to arbitration any claim or right in favor of or against the Plan, to exercise and enforce 6.05 Investment Funds: In accordance with uniform any and all rights of foreclosure, bid for property in and nondiscriminatory rules established by the Employer foreclosure, and take a deed in lieu of foreclosure and the Plan Administrator, the Participant may direct with or without paying consideration therefor, to his/her Accounts to be invested in one (1) or more commence or defend suits or other legal proceedings investment funds available under the Plan; provided, whenever any interest of the Plan requires it, and to however, that the Participant's investment directions represent the Plan in all suits or legal proceedings in shall not violate any investment restrictions established any court of law or equity or before any body or by the Employer. Neither the Employer, the Adminis- tribunal. trator, nor any other person shall be liable for any loss, incurred by virtue of following such directions or with- (n) To employ suitable consultants, depositories, any reasonable administrative delay in implementing agents, and legal counsel on behalf of the Plan. such directions. . . . . . .. .... . .. . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ... . . . . . . . . .. . Five ICNIA RETIREMENT CORPORATION i Valuation of Accounts: As of each Accounting than cash, unless the Employer and the Administra- I ate, the Plan assets held in each investment fund for agree to hold such other assets under the Plan. offered shall be valued at fair market value and the Any such transferred amount shall be treated as a investment income and gains or losses for each fund deferral subject to the limitations of Article V, shall be determined. Such investment income and gains except that, for purposes of applying the limitations or losses shall be allocated proportionately among all of Sections 5.01 and 5.02, an amount deferred Account balances on a fund-by-fund basis. The alloca- during any taxable year under the plan from which tion shall be in the proportion that each such Account the transfer is accepted shall be treated as if it has balance as of the immediately preceding Accounting been deferred under this Plan during such taxable Date bears to the total of all such Account balances as of year and compensation paid by the transferor em- that Accounting Date. For purposes of this Article, all ployer shall be treated as if it had been paid by the Account balances include the Account balances of all Employer. Participants and Beneficiaries. (b) Outgoing Transfers: An amount may be 6.07 Participant Loan Accounts: Participant Loan transferred to an eligible deferred compensation plan Accounts shall be invested in accordance with Section maintained by another employer, and charged to a 8.03 of the Plan. Such Accounts shall not share in any Participant's Account under this Plan, if(I) the investment income and gains or losses of the investment Participant has separated from service with the funds described in Sections 6.05 and 6.06. Employer and become an employee of the other employer, (ii) the other employer's plan provides 6.08 Crediting of Accounts: The Participant's Account that such transfer will be accepted, and (iii) the shall reflect the amount and value of the investments or Participant and the employers have signed such other property obtained by the Employer through the agreements as are necessary to assure that the investment of the Participant's Deferred Compensation Employer's liability to pay benefits to the Partici- _ isuant to Sections 6.05 and 6.06. It is anticipated that the pant has been discharged and assumed by the other Employer's investments with respect to a Participant will employer. The Employer may require such docu- conform to the investment preference specified in the mentation from the other plan as it deems necessary Participant's Joinder Agreement, but nothing herein shall to effectuate the transfer, to confirm that such plan be construed to require the Employer to make any particu- is an eligible deferred compensation plan within the lar investment of a Participant's Deferred Compensation. meaning of section 457 of the Code, and to assure Each Participant shall receive periodic reports, not less that transfers are provided for under such plan. Such frequently than annually, showing the then current transfers shall be made only under such circum- value of his/her Account. stances as are permitted under section 457 of the Code and the regulations thereunder. 6.09 Transfers: 6.10 Employer Liability: In no event shall the (a) Incoming Transfers: A transfer may be ac- Employer's liability to pay benefits to a Participant ' cepted from an eligible deferred compensation plan under this Plan exceed the value of the amounts cred- maintained by another employer and ciedited to a ited to the Participant's Account; neither the Employer Participant's Account under the Plan if(I) the nor the Administrator shall be liable for losses arising Participant has separated from service with that from depreciation or shrinkage in the value of any employer and become an Employee of the Em- investments acquired under this Plan. ployer, and (ii) the other employer's plan provides that such transfer will be made. The Employer may require such documentation from the predecessor plan as it deems necessary to effectuate the transfer, to confirm that such plan is an eligible deferred compensation plan within the meaning of Section 457 of the Code, and to assure that transfers are provided for under such plan. The Employer may refuse to accept a transfer in the form of assets other . . . . . . . .. . .. . . . . . . . . . . . . . . . . . . .. . . . . . ... . . . . . . . .... .. . . . . . . . . . . . .. . . . . . . . . . . . .. . . . . . . . . . . . .. . . . .. . . . . . . . . . . . . Six 45 i Plan Adoption Package Retain Document Deferred Compensation Plan Document and Trust , November 1996 Article VII. Benefits (b) One lump-sum payment; V 7.01 Retirement Benefits and Election on Separa- (c) Approximately equal monthly, quarterly, semi- tion from Service: Except as otherwise provided in annual or annual payments, calculated to continue this Article VII, the distribution of a Participant's for a period certain chosen by the Participant. Account shall commence as of April 1 of the calendar vear after the Plan Year of the Participant's Retirement, (d) Annual Payments equal to the minimum distri- and the distribution of such Retirement benefits shall be butions required under Section 401(a)(9) of the made in accordance with one of the payment options Code over the life expectancy of the Participant or described in Section 7.02. Notwithstanding the forego- over the life expectancies of the Participant and his ing, but subject to the following paragraph of this Beneficiary. Section 7.01, the Participant may irrevocably elect within 60 days following Separation from Service to (e) Payments equal to payments made by the issuer have the distribution of benefits commence on a fixed of a retirement annuity policy acquired by the determinable date other than that described in the Employer. preceding sentence which is at least 61 days after Separa- tion from Service, but not later than April 1 of the year (f) A split distribution under which payments under following the year of the Participant's Retirement or options (a), (b), (c) or (e) commence or are made at attainment of age 70-1/2, whichever is later. Nonvith- the same time, as elected by the Participant under standing the foregoing provisions of this Section 7.01, no Section 7.01, provided that all payments commence election to defer the commencement of benefits after a (or are made) by the latest benefit commencement separation from service shall operate to defer the distribu- date under Section 7.01 and that once a payment is tion of any amount in the Participant's Loan Account in made subsequent payments will be made in substan- the event of a default of the Participant's loan. tially nonincreasing amounts. Effective on or after January 1, 1997, the Participant (g) Any payment option elected by the Participant may elect to defer the commencement of distribution of and agreed to by the Employer and Administrator, benefits to a fixed determinable date later than the date provided that such option must provide for substan- described above, but not later than April 1 of the year tially nonincreasing payments for any period after following the year of the Participant's retirement or the benefit commencement date under Section 7.01. attainment of age 70-1/2, whichever is later, provided (a) such election is made after the 61st day following A Participant's or Beneficiary's selection of a payment Separation from Service and before commencement of option made after December 31, 1995, under Subsec- distributions and (b) the Participant may make only one tions (a), (c), or (g) above may include the selection of (1) such election. Notwithstanding the foregoing, the an automatic annual cost-of-living increase. Such Administrator, in order to ensure the orderly adminis- increase will be based on the rise in the Consumer Price tration of this provision, may establish a deadline after Index for All Urban Consumers (CPI-U) from the third which such election to defer the commencement of quarter of the last year in which a cost-of-living in- distribution of benefits shall not be allowed. crease was provided to the third quarter of the current year. Any increase will be made in periodic payment 7.02 Payment Options: As provided in Sections 7.01, checks beginning the following January. The first cost- 7.04 and 7.05, a Participant or Beneficiary may elect to of-living increase will be based on the rise in the CPI-U have value of the Participant's Account distributed in from the third quarter of 1995 to the third quarter of accordance with one of the following payment options, 1996, and will be applied to amounts paid beginning provided that such option is consistent with the limita- January 1997. tions set forth in Section 7.03. A Participant's or Beneficiary's election of a payment (a) Equal monthly, quarterly, semi-annual or annual option must be made at least 30 days before the pay- payments in an amount chosen by the Participant, ment of benefits is to commence. If a Participant or continuing until his/her Account is exhausted; Beneficiary fails to make a timely election of a payment option, benefits shall be paid monthly under option (c) . .. . . ... . . . . ..... . . . . .. . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . Seven ICMA RETIIZEibtENT COKPOI:,{_ ION ve for a period of five years or such shorter period of (b) If the designated Beneficiary does not continue r"rie necessary to ensure that the amount of any install- to live for the remaining period of payments under ment is not less than $1,200 per year, without the the payment option, then the commuted value of inclusion of a cost-of-living increase. any remaining payments under the payment option shall be paid in a lump sum to the estate of the 7.03 Limitation on Options: No payment option may Beneficiary. In the event that the Participant's estate be selected by a Participant under subsections 7.02(a) or is the Beneficiary, the commuted value of any (c) unless the amount of any installment is not less than remaining payments under the payment option shall $1,200 per year. No payment option may be selected be paid to the estate in a lump sum. by a Participant or Beneficiary under Sections 7.02, 7.04, or 7.05 unless it satisfies the requirements of 7.05 Pre-retirement Death Benefits: Sections 401(a)(9) and 457(d)(2) of the Code, including that payments commencing before the death of the (a) Should the Participant die before he has begun Participant shall satisfy the incidental death benefits to receive the benefits provided by Section 7.01, the requirement under section 457(d)(2)(B)(i)(I). A cost-of- value of the Participant's Account shall be payable living increase included as part of a payment option to the Beneficiary commencing within the 30-day selected under Section 7.02 shall not be considered to period commencing on the 91st day after the fail to satisfy the requirement under section 457(d)(2)(b) Participant's death, unless the Beneficiary elects a that any distribution made over a period of more than 1 different fixed or determinable benefit commence- year can only be made in substantially nonincreasing ment date within 90 days of the Participant's death. amounts. Unless otherwise elected by the Participant Such benefit commencement date shall be not later (or spouse, in the case of distributions described in than the later of(1) December 31 of the year fol- Section 7.05 below) by the time distributions are lowing the year of the Participant's death, or (ii) if required to begin, life expectancies shall be recalculated the Beneficiary is the Participant's spouse, Decem- wally. Such election shall be irrevocable as to the ber 31 of the year in which the Participant would 'rdrticipant (or spouse) and shall apply to all subsequent have attained age 70-1/2. years. The life expectancy of a nonspouse Beneficiary may not be recalculated. (b) Unless a Beneficiary elects a different payment option prior to the benefit commencement date, death benefits under this Section shall be paid in 7.04 Post-retirement Death Benefits: approximately equal annual installments over five years, or over such shorter period as may be neces- (a) Should the Participant die after he/she has sary to assure that the amount of any annual install- begun to receive benefits under a payment option, ment is not less than $3,500. A Beneficiary shall be the remaining payments, if any, under the payment treated as if he/she were a Participant for purposes option shall be payable to the Participant's Benefi- of determining the payment options available under ciary within the 30-day period commencing with Section 7.02, provided, however, that the payment the 61st day after the Participant's death, unless the option chosen by the Beneficiary must provide for Beneficiary elects payment under a different pay- payments to the Beneficiary over a period no longer ment option that is available under Section 7.02 than the life expectancy of the Beneficiary, and within 60 days of the Participant's death. Any provided that such period may not exceed (15) years different payment option elected by a Beneficiary if the Beneficiary is not the Participant's spouse. under this section must provide for payments at a rate that is at least as rapid under the payment (c) In the event that the Beneficiary dies before the option that was applicable to the Participant. In no payment of death benefits has commenced or been event shall the Employer or Administrator be liable completed, the remaining value of the Participant's to the Beneficiary for the amount of any payment Account shall be paid to the estate of the Benefi- made in the name of the Participant before ciary in a lump sum. In the event that the the Administrator receives proof of death of the Participant's estate is the Beneficiary, payment shall Participant. be made to the estate in a lump sum. . . .... . .... . . . .... .. . . .. . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . .. . . . .. . . . . . . . . ... Eight 4 i 7 PI in A d o p r i 0 n P a c k a o ; Reta i it Docu tit eitt Deferred Co tit pettsatiitn Platt Dacument and Trust , Nove tit ber 1996 7.06 Unforeseeable Emergencies: Article Vill. Loans to Participants (a) In the event an unforeseeable emergency occurs, 8.01 Availability of Loans to Participants: a Participant may apply to the Employer to receive that part of the value of his/her Account that is (a) Effective January 1, 1997, the Employer may reasonably needed to satisfy the emergency need. If elect to make loans available to Participants in this such an application is approved by the Employer, Plan. If the Employer has elected to make loans the Participant shall be paid only such amount as the available to Participants, a Participant may apply for Employer deems necessary to meet the emergency a loan from the Plan subject to the limitations and need, but payment shall not be made to the extent other provisions of this Article. that the financial hardship may be relieved through cessation of deferral under the Plan, insurance or (b) The Employer shall establish written guidelines other reimbursement, or liquidation of other assets governing the granting of loans, provided that such to the extent such liquidation would not itself cause guidelines are approved by the Plan Administrator severe financial hardship. and are not inconsistent with the provisions of this Article, and that loans are made available to all (b) An unforeseeable emergency shall be deemed to Participants on a reasonably equivalent basis. involve only circumstances of severe financial hardship to the Participant resulting from a sudden 8.02 Terms and Conditions of Loans to Participants: unexpected illness, accident, or disability of the Any loan by the Plan to a Participant under Section 8.01 of the Participant or of a dependent (as defined in section Plan shall satisfy the following requirements: 152(a) of the Code) of the Participant, loss of the Participant's property due to casualty, or other (a) Availability. Loans shall be made available to similar and extraordinary unforeseeable circum- all Participants on a reasonably equivalent basis. stances arising as a result of events beyond the control of the Participant. The need to send a (b) Interest Rate. Loans must be adequately Participant's child to college or to purchase a new secured and bear a reasonable interest rate. home shall not be considered unforeseeable emer- gencies. The determination as to whether such an (c) Loan Limit. No Participant loan shall exceed unforeseeable emergency exists shall be based on the the present value of the Participant's Account. merits of each individual case. (d) Foreclosure. In the event of default on any 7.07 Transitional Rule for Pre-1989 Benefit Elec- installment payment, the outstanding balance of the tions: In the event that, prior to January 1, 1989, a loan shall be a deemed distribution. In such event, Participant or Beneficiary has commenced receiving an actual distribution of a plan loan offset amount benefits under a payment option or has irrevocably elected will not occur until a distributable event occurs in a payment option or benefit commencement date, then that the Plan. payment option or election shall remain in effect notwith- standing any other provision of the Plan. (e) Reduction of Account. Notwithstanding any other provision of this Plan, the portion of the 7.08 De Minimis Accounts: Notwithstanding the Participant's Account balance used as a security foregoing provisions of this Article, if the value of a interest held by the Plan by reason of a loan out- Participant's Account does not exceed $3,500 and (a) no standing to the Participant shall be taken into amount has been deferred under the Plan with respect account for purposes of determining the amount of to the Participant during the 2-year period ending on the Account balance payable at the time of death or the date of the distribution and (b) there has been no distribution, but only if the reduction is used as prior distribution under the Plan to the Participant repayment of the loan. pursuant to this Section 7.08, the Participant may elect to receive or the Employer may distribute the Participant's entire Account without the consent of the Participant. Such distribution shall be made in a lump sum. . . . . . . . . . . ... . . . . . .. . . . .. . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . .. . . . . . . . ... . . Nine 1CMA RETIREMENT CORPOF,A. ION !f) Amount of Loan. At the time the loan is made, (within such term) instituted at the end of such ' `the principal amount of the loan plus the outstanding period of suspension. balance (principal plus accrued interest) due on any other outstanding loans to the Participant from the Plan (i) Prepayment. The Participant shall be permitted and from all other plans of the Employer that are to repay the loan in whole or in part at any time qualified employer plans under section 72(p)(4) of the prior to maturity, without penalty. Code shall not exceed the least of: (j) Promissory Note. The loan shall be evidenced (1) $50,000, reduced by the excess (if any) of by a promissory note executed by the Participant and delivered to the Employer, and shall bear (a) The highest outstanding balance of loans interest at a reasonable rate determined by the from the Plan during the one (1) year Employer. period ending on the day before the date on which the loan is made, over (k) Security. The loan shall be secured by an assignment of the Participant's right, title and (b) The outstanding balance of loans from the interest in and to his/her Account. Plan on the date on which such loan is made; or (1) Assignment or Pledge. For the purposes of paragraphs (0 and (g), assignment or pledge of any (2) One-half of the value of the Participant's portion of the Participant's interest in the Plan and a interest in all of his/her Accounts under loan, pledge, or assignment with respect to any this Plan. insurance contract purchased under the Plan, will be treated as a loan. (g) Application for Loan. The Participant must give the Employer adequate written notice, as (m) Other Terms and Conditions. The Employer determined by the Employer, of the amount and shall fix such other terms and conditions of the loan desired time for receiving a loan. No more than as it deems necessary to comply with legal require- one (1) loan may be made by the Plan to a Partici- ments, to maintain the qualification of the Plan and pant in any calendar year. No loan shall be ap- Trust under section 457 of the Code, or to prevent proved if an existing loan from the Plan to the the treatment of the loan for tax purposes as a. Participant is in default to any extent. distribution to the Participant. The Employer, in its discretion for any reason, may fix other terms (h) Length of Loan. Any loan issued shall require and conditions of the loan, not inconsistent with the Participant to repay the loan in substantially the provisions of this Article and section 72(p) of equal installments of principal and interest, at least the Code. monthly, over a period that does not exceed five (5) years from the date of the loan; provided, however, 8.03 Participant Loan Accounts: that if the proceeds of the loan are applied by the Participant to acquire any dwelling unit that is to be (a) Upon approval of a loan to a Participant by the used within a reasonable time (determined at the Employer, an amount not in excess of the loan shall time the loan is made) after the loan is made as the be transferred from the Participant's other invest- principal residence of the Participant, the five (5) ment fund(s), described in Section 6.05 of the Plan, year limit shall not apply. In this event, the period to the Participant's Loan Account as of the Account- of repayment shall not exceed a reasonable period ing Date immediately preceding the agreed upon determined by the Employer. Principal installments date on which the loan is to be made. and interest payments otherwise due may be sus- pended for up to one (1) year during an authorized (b) The assets of a Participant's.Loan Account may leave of absence, if the promissory note so provides, be invested and reinvested only in promissory notes but not beyond the original term permitted under received by the Plan from the Participant as consid- this Subsection (h), with a revised payment schedule eration for a loan permitted by Section 8.01 of the Plan or in cash. Uninvested cash balances in a . . . . .. . . .. . . . . . . . . . . . . . . . .. . . . . . . . . . . . .... . . . .. . . ... . . . . . .. .. . . . . . . . . . . . .. . . . . . . . .. . . .. . ... . .. . . . . . . . . . . . . . .. Ten 43 7 Platt Adoption Package Rerain Document Deferred Compensation Plan Document and Trust , Nove tit Iter 1996 Participant's Loan Account shall not bear interest_ payment. Nothing in this Section shall be construr Neither the Employer, the Administrator, nor any to authorize any amount to be distributed under tlir other person shall be liable for any loss, or by reason Plan at a time or in a form that is not permitted of any breach, that results from the Participant's under Section 457 of the Code. Any Payment made exercise of such control. to a person other than the Participant pursuant to this Section shall be reduced by required income tax (c) Repayment of principal and payment of interest withholding; the fact that payment is made to a shall be made by payroll deduction or, where person other than the Participant may not prevent repayment cannot be made by payroll deduction, by such payment from being includible in the gross check, and shall be invested in one (1) or more income of the Participant for withholding and other investment funds, in accordance with Section income tax reporting purposes. 6.05 of the Plan, as of the next Accounting Date after payment thereof to the Trust. The amount so (b) Release from Liability to Participant: The invested shall be deducted from the Participant's Employer's liability to pay benefits to a Participant Loan Account. shall be reduced to the extent that amounts have been paid or set aside for payment to a spouse, (d) The Employer shall have the authority to former spouse, or child pursuant to paragraph (a) of establish other reasonable rules, not inconsistent the Section. No such transfer shall be effectuated with the provisions of the Plan, governing the unless the Employer or Administrator has been establishment and maintenance of Participant Loan provided with satisfactory evidence that the Em- Accounts. ployer and the Administrator are released from any further claim by the Participant with respect to such Article IX. Non-assignability amounts. The Participant shall be deemed to have released the Employer and the Administrator from 9.01 In General: Except as provided in Article VIII any claim with respect to such amounts, in any ca. and Section 9.02, no Participant or Beneficiary shall in which (i) the Employer or Administrator has bee"ff have any right to commute, sell, assign, pledge, transfer served with legal process or otherwise joined in a or otherwise convey or encumber the right to receive proceeding relating to such transfer, (ii) the Partici- any payments hereunder, which payments and rights pant has been notified of the pendency of such are expressly declared to be non-assignable and proceeding in the manner prescribed by the law of non-transferable. the jurisdiction in which the proceeding is pending for service of process in such action or by mail from 9.02 Domestic Relations Orders: the Employer or Administrator to the Participant's last known mailing address, and (iii) the Participant (a) Allowance of Transfers: To the extent re- fails to obtain an order of the court in the proceed- quired under final judgement, decree, or order ing relieving the Employer or Administrator from (including approval of a property settlement agree- the obligation to comply with the judgment, decree, ment) made pursuant to a state domestic relations or order. law, any portion of Participant's Account may be paid or set aside for payment to a spouse, former (c) Participation in Legal Proceedings: The spouse, or child of the Participant. Where necessary Employer and Administrator shall not be obligated to carry out the terms of such an order, a separate to defend against or set aside any judgement, decree, Account shall be established with respect to the or order described in paragraph (a) any legal order spouse, former spouse, or child who shall be en- relating to the garnishment of a Participant's ben- titled to make investment selections with respect efits, unless the full expense of such legal action is thereto in the same manner as the Participant; any borne by the Participant. In the event that the amount so set aside for a spouse, former spouse, or Participant's action (or inaction) nonetheless causes child shall be paid out in a lump sum at the earliest the Employer or Administrator to incur such ex- date that benefits may be paid to the Participant, pense, the amount of the expense may be chargeti- unless the order directs a different time or form of against the Participant's Account and thereby reduce the Employer's obligation to pay benefits to the . .. . . . . . . . . . . . . . . . . .. . . . . . . . . . . .. .. . . . . . . . . . . .. . . .. ... . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . .. . . Eleven ICNIA RETIREMENT CORPORATION „.I.articipant. In the course of any proceeding relating Except as may be required to maintain the status of the to divorce, separation, or child support, the Ern- Plan as an eligible deferred compensation plan under ployer and Administrator shall be authorized to section 457 of the Code or to comply with ocher disclose information relating co the Participant's applicable laws, no amendment or termination of the Account to the Participant's spouse, former spouse, Plan shall divest any Participant of any rights with or child (including the legal representatives of the respect to compensation deferred before the date of the spouse, former spouse, or child), or to a court. amendment or termination. Article X. Relationship to other Plans Article XI1. Applicable Law and Employment Agreements This Plan and Trust shall be construed under the laws of This Plan serves in addition to any other retirement, the state where the Employer is located and is estab- iension, or benefit plan or system presently in existence lished with the intent that it meet the requirements of Dr hereinafter established for the benefit of the an eligible deferred compensation plan" under Section Employer's employees, and participation hereunder shall 457 of the Code, as amended. The provisions of this not affect benefits receivable under any such plan or Plan and Trust shall be interpreted wherever possible in system. Nothing contained in this Plan shall be deemed conformity with the requirements of that section. to constitute an employment contract or agreement between any Participant and the Employer or to give Article XIII. Gender and Number any Participant the right to be retained in the employ of the Employer. Nor shall anything herein be construed The masculine pronoun, whenever used herein, shall to modify the terms of any employment contract or include the feminine pronoun, and the singular shall agreement between a Participant and the Employer. include the plural, except where the context requires otherwise. Article XI. Amendment or Termination of Plan The Employer may at any time amend this Plan pro- vided that it transmits such amendment in writing to the Administrator at least 30 days prior to the effective date of the amendment. The consent of the Administrator shall not be required in order for such amendment to become effective, but the Administrator shall be under no obligation to continue acting as Administrator hereunder if it disapproves of such amendment. The Employer may at any time terminate this Plan. The Administrator may at any time propose an amend- ment to the Plan by an instrument in writing transmit- ted to the Employer at least 30 days before the effective date of the amendment. Such amendment shall become effective unless, within such 30-day period, the Em- ployer notifies the Administrator in writing that it disapproves such amendment, in which case such amendment shall not become effective. In the event of such disapproval, the Administrator shall be under no obligation to continue acting as Administrator reunder. . .... . . . ... . . . . .. . . . .. .. . . .. . .. . . . . . .. . . .. . . . ....... . . . . . . . . . . . . . . . . . . .. . . . . .. .. . . . . .. . . . . ..... . . Twelve 4 J 7 P I a it A d o y r 1 o it P a c k a g e R e t a i n D o c u m e n t DecIaratioit of Trust of the IC11A Rerireinenr Truir , January 1995 DECLARATION OF TRUST (k) Public Employer Trustees. Public Employers who se OF ICMA RETIREMENT TRUST as trustees of the Qualified Plans. 0) Public Employer. A unit of state or local government, or Article 1. Name and Definitions any agency or instrumentality thereof, that has adopted a Section 1.1 Name: The Name of the Trust created hereby is Deferred Compensation Plan or a Qualified Plan and has the ICMA Retirement Trust. executed this Declaration of Trust. Section 1.2 Definitions: Wherever they are used herein, the (m) Qualified Plan. A plan sponsored by a Public Employer following terms shall have the following respective meanings: for the purpose of providing retirement income to its (a) By-laws. The By-laws referred to in Section 4.1 hereof, as employees which satisfies the qualification requirements of amended from time to time. Section 401 of the Internal Revenue Code, as amended. (b) Deferred Compensation Plan. A deferred (n) RC. The International City Management Association compensation plan established and maintained by a Public Retirement Corporation. Employer for the purpose of providing retirement income and (o) Retirement Trust. The Trust created by this Declaration other deferred benefits to its employees in accordance with the of Trust. provision of section 457 of the Internal Revenue Code of (p) Trust Property. The amounts held in the Retirement Trust 1986, as amended. on behalf of the Public Employers in connection with Deferred (c) Employees. Those employees who participate in Compensation Plans and on behalf of the Public Employer Qualified Plans. Trustees for the exclusive benefit of Employees pursuant to (d) Employer Trust. A trust created pursuant to an Qualified Plans. The Trust Property shall include any income agreement between RC and a Public Employer, or an resulting from the investment to the amounts so held. agreement between RC and a Public Employer for (q) Trustees. The Public Employee Trustees and ICMA/RC administrative services that is not a trust, in either case for the Trustees elected by the Public Employers to serve as members purpose of investing and administering the funds set aside by of the Board of Trustees of the Retirement Trust. such Employer in connection with its Deferred Compensation agreements with its employees or in connection with its Qualified Plan. Article 11. Creation and Purpose of the Trust; (e) Investment Contract. A non-negotiable contract Ownership of Trust Property entered into by the Retirement Trust with a financial Section 2.1 Creation: The Retirement Trust was created by institution that provides for a fixed rate of return on the execution of this Declaration of Trust by the initial investment. Trustees and Public Employers and is established with respect (f) ICMA.The International City/County Management to each participating Public Employer by adoption of this Association. Declaration of Trust. (g) ICMA/RC Trustees. Those Trustees elected by the Section 2.2 Purpose: The purpose of the Retirement Trust Public Employers who, in accordance with the provisions of is to provide for the commingled investment of funds held by Section 3.1(a) hereof, are also members of the Board of the Public Employers in connection with their Deferred Directors of ICMA or RC (or in the case of RC, former Compensation and Qualified Plans. The Trust Property shall members of the RC Board). be invested in the Portfolios, in Investment Contracts, and in (h) Investment Adviser. The Investment Adviser that enters other investments recommended by the Investment Adviser into a contract v.ith the Retirement Trust to provide advice under the supervision of the Board of Trustees. No part of the with respect to investment of the Trust Property. Trust Property will be invested in securities issued by Public (i) Portfolios. The separate commingled accounts of Employers. investment established by the Investment Adviser to the Section 2.3 Ownership of Trust Property: The Trustees Retirement Trust, under the supervision of the Trustees, for shall have legal title to the Trust Property. The Public Em- the purpose of providing investments for the Trust Property. ployers shall be the beneficial owners of the portion of the 0) Public Employee Trustees. Those Trustees elected by Trust Property allocable to the Deferred Compensation Plans. the Public Employers who, in accordance with the provision The portion of the Trust Property allocable to the Qualifit, of Section 3.1(a) hereof, are full-time employees of Public Plans shall be held for the Public Employer Trustees for the exclusive benefit of the Employees. Employers. . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . EX... ...IT, . Thirteen ICMA RETIREMENT CORPORATION Article III. Trustees unexpired portion of the term of the Trustee who has resigned lion 3.1 Number and Qualification of Trustees: or otherwise ceased to be a Trustee. The appointment shall be i)The Board of Trustees shall consist of nine Trustees. Five of made by a written instrument signed by a majority of the ne Trustees shall be full-time employees of a Public Employer Trustees. The person appointed must be the same type of (the Public Employee Trustees) who are authorized by such Trustee (i.e., Public Employee Trustee or ICMA/RC Trustee) Public Employer to serve as Trustee. The remaining four as the person who has ceased to be a Trustee. An appointment Trustees shall consist of two persons who, at the time of of a Trustee may be made in anticipation of a vacancy to occur election to the Board of Trustees, are members of the Board of at a later date by reason of retirement or resignation, provided '7irectors of ICNIA and two persons who, at the time of that such appointment shall not become effective prior to such erection, are members or former members of the Board of retirement or resignation. Whenever a vacancy shall occur, Directors of RC (the ICMA/RC Trustees). One of the until such vacancy is filled as provided in this Section 3.5, the rustees who is a director of ICMA, and one of the Trustees Trustees in office, regardless of their number,shall have all the ho is a director of RC, shall, at the time of election, be full- powers granted to the Trustees and shall discharge all the duties ime employees of Public Employers. (b) No person may imposed upon the Trustees by this Declaration. A written serve as a Trustee for more than rwo terms in any ten-year instrument certifying the existence of a vacancy signed by a veriod. majority of the Trustees shall be conclusive evidence of the Section 3.2 Election and Term: (a) Except for the Trust- existence of such vacancy. ,es appointed to fill vacancies pursuant to Section 3.5 hereof, Section 3.6 Trustees Serve in Representative Capacity: he Trustees shall be elected by a vote of a majority of the By executing this Declaration, each Public Employer agrees oting Public Employers in accordance with the procedures set that the Public Employee Trustees elected by the Public brth in the By-Laws. (b) At the first election of Trustees, Employers are authorized to act as agents and representatives of hree Trustees shall be elected for a term of three years, three the Public Employers collectively. Trustees shall be elected for a term of two years and three T—stees shall be elected for a tern of one year. At each _,.,,dequent election, three Trustees shall be elected, each to Article IV. Powers of Trustees serve for a term of three years and until his or her successor is Section 4.1 General Powers: The Trustees shall have the elected and qualified. power to conduct the business of the Trust and to carry on its Section 3.3 Nominations: The Trustees Nvho are full-time operations. Such power shall include, but shall not be limited mployees of Public Employers shall serve as the Nominating to, the power to: lommittee for the Public Employee Trustees. The Nominating (a) receive the Trust Property from the Public Employers, committee shall choose candidates for Public Employee Trustee Public Employer Trustees or the trustee or administrator in accordance with the procedures set forth in the By-Laws. under any Employer Trust; Section 3.4 Resignation and Removal: (a) Any Trustee (b) enter into a contract with an Investment Adviser may resign as Trustee (without need for prior or subsequent providing, among other things, for the establishment and accounting) by an instrument in writing signed by the Trustee operation of the Portfolios, selection of the Investment and delivered to the other Trustees and such resignation shall Contracts in which the Trust Property may be invested, be effective upon such delivery, or at a later date according to selection of the other investments for the Trust Property -he terms of the instrument. Any of the Trustees may be and the payment of reasonable fees to the Investment -emoved for cause, by a vote of a majority of the Public Adviser and to any sub-investment adviser retained by 'mployers. (b) Each Public Employee Trustee shall resign his the Investment Adviser; :)r her position as Trustee within sixty days of the date on (c) review annually the performance of the Investment .which he or she ceases to be a full-time employee of a Public Adviser and approve annually the contract with such Employer. Investment Adviser; Section 3.5 Vacancies: The term of office of a Trustee shall (d) invest and reinvest the Trust Property in the Portfolios, terminate and a vacancy shall occur in the event his or her the Investment Contracts and in any other investment death, resignation, removal, adjudicated incompetence or other recommended by the Investment Adviser, but not parity to perform the duties of the office of a Trustee. In including securities issued by Public Employers, tv case of a vacancy, the remaining Trustees shall appoint provided that if a Public Employer has directed that its sch person as they in their discretion shall see fit (subject to monies be invested in one or more specified Portfolios :he limitations set forth in this Section), to serve for the or in an Investment Contract, the Trustees of the . . . . . ... . .. . . . . . . . .. . . . . . .. . . . . . . . . . . . . . . . . ... . . . .. .. .. . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . .. .. . . . . . . . . . . . . Fourteen 45 i Plan Adoption Package Retain Docitmenr Declaration of T r u s r of the IC.11A Retiremenr Trust , Jan nary 1995 Retirement Trust shall invest such monies in accordance expenses from of the Trust Property; with such directions; (m)pay expenses properly allocable to the Trust Property (e) keep such portion of the Trust Property in cash or cash incurred in connection with the Deferred balances as the Trustees, from time to time, may deem Compensation Plans, Qualified Plans, or the Employer to be in the best interest of the Retirement Trust created Trusts and deduct such expenses from that portion of hereby without liability for interest thereon; the Trust Property to which such expenses are properly (f) accept and retain for such time as they may deem allocable; advisable any securities or other property received or (n) pay out of the Trust Property all real and personal acquired by them as Trustees hereunder, whether or not property taxes, income taxes and other taxes of any and such securities or other property would normally be all kinds which, in the opinion of the Trustees, are purchased as investment hereunder; properly levied, or assessed under existing or future laws (g) cause any securities or other property held as part of the upon, or in respect of, the Trust Property and allocate Trust Property to be registered in the name of the any such taxes to the appropriate accounts; Retirement Trust or in the name of a nominee, and to (o) adopt, amend and repeal the By-laws, provided that hold any investments in bearer form,but the books and such By-laws are at all times consistent with the terms of records of the Trustees shall at all times show that all this Declaration of Trust; such investments are a part of the Trust Property; (p) employ persons to make available interests in the (h) make, execute, acknowledge, and deliver any and all Retirement Trust to employers eligible to maintain a documents of transfer and conveyance and any and all Deferred Compensation Plan under Section 457 or a other instruments that may be necessary or appropriate Qualified Plan under Section 401 of the Internal to carry out the powers herein granted; Revenue Code, as amended; (i) vote upon any stock, bonds, or other securities; give (q) issue the Annual Report of the Retirement Trust, and general or special proxies or powers of attorney with or the disclosure documents and other literature used by without power of subscrution; exercise any conversion the Retirement Trust•, privileges,subscription rights, or other options, and (r) in addition to conducting the investment program make any payments incidental thereto; oppose, or authorized in Section 4.1(d), make loans, including the consent to, or otherwise participate in, corporate purchase of debt obligations, provided that all such loans reorganizations or to other changes affecting corporate shall bear interest at the current market rate; securities, and delegate discretionary powers and pay any (s) contract for, and delegate any powers granted hereunder assessments or charges in connection therewith; and to, such officers, agents, employees, auditors and generally exercise any of the powers of an owner with attorneys as the Trustees may select, provided that the respect to stocks, bonds, securities or other property Trustees may not delegate the powers set forth in held as part of the Trust Property; paragraphs (b), (c) and (o) of this Section 4.1 and may (j) enter into contracts or arrangements for goods or not delegate any powers if such delegation would violate services required in connection with the operation of their fiduciary duties; the Retirement Trust, including, but not limited to, (t) provide for the indemnification of the Officers and contracts with custodians and contracts for the provision Trustees of the Retirement Trust and purchase fiduciary of administrative services; insurance; (k) borrow or raise money for the purposes of the (u) maintain books and records,including separate accounts Retirement Trust in such amount, and upon such terms for each Public Employer, Public Employer Trustee or and conditions, as the Trustees shall deem advisable, Employer Trust and such additional separate accounts as provided that the aggregate amount of such borrowings are required under, and consistent with, the Deferred shall not exceed 30%of the value of the Trust Property. Compensation or Qualified Plan of each Public No person lending money to the Trustees shall be Employer; and bound to see the application of the money lent or to inquire into its validity, expediency or propriety or any (v) do all such acts, take all such proceedings, and exercise all such rights and privileges, although not specificalll such borrowing; w mentioned herein, as the Trustees may deem necessary (1) incur reasonable expenses required for the or appropriate to administer the Trust Property and to operation of the Retirement Trust and deduct such carry out the purposes of the Retirement Trust. . .... . ... . . . . . . .. . . . . .. . . . . . . . . . . . . . . . . . . . . ... . . . ... . . . . . . . . . . . . . . . . . . . . . . . . . . .. .. . . . . . . . . . . . . . . . . . . . . . . . . .. . Fifteen IC :MA RETIREMENT CORPORATION ion 4.2 Distribution of Trust Property: Distributions Article VI. Annual Report to Shareholders 611he Trust property shall be made to, or on behalf of, the The Trustees shall annually submit to the Public Employers Public Employer or Public Employer Trustee, in accordance and Public Employer Trustees a written report of the transac- with the terms of the Deferred Compensation Plans, Qualified lions of the Retirement Trust, including financial statements Plans or Employer Trusts. The Trustees of the Retirement which shall be certified by independent public accountants Trust shall be fully protected in making payments in actor- chosen by the Trustees. dance with the directions of the Public Employers, Public Employer Trustees or trustees or administrators of any Em- Article VII. Duration or Amendment ployer Trust without ascertaining whether such payments are of Retirement Trust in compliance with the provisions of the applicable Deferred Compensation or Qualified Plan or Employer Trust. Section 7.1 Withdrawal: A Public Employer or Public Section 4.3 Execution of Instruments: The Trustees may Employer Trustee may, at any time, withdraw from this Retirement Trust by delivering to the Board of Trustees a unanimously designate any one or more of the Trustees to written statement of withdrawal. In such statement, the Public execute any instrument or document on behalf of all, including Employer or Public Employer Trustee shall acknowledge that but not limited to the signing or endorsement of any check and the signing of any applications, insurance and other the Trust Property allocable to the Public Employer is derived from compensation deferred by employees of such Public concocts, and the action of such designated Trustee or Trust- Employer pursuant to its Deferred Compensation Plan or from ees shall have the same force and effect as if taken by all the contributions to the accounts of Employees pursuant to a Trustees. Qualified Plan, and shall designate the financial institution to Article V. Duty of Care and Liability of Trustees which such property shall be transferred by the Trustees of the Section 5.1 Duty of Care: In exercising the powers herein- Retirement Trust or by the trustee or administrator under an before granted to the Trustees, the Trustees shall perform all Employer Trust. acts within their authority for the exclusive purpose of provid- Section 7.2 Duration: The Retirement Trust shall continue benefits for the Public Employers in connection with until terminated by the vote of a majority of the Public l7-eferred Compensation Plans and Public Employer Trustees Employers, each casting one vote. Upon termination, all of pursuant to Qualified Plans, and shall perform such acts with the Trust Property shall be paid out to the Public Employers, the care, skill, prudence and diligence in the circumstances Public Employer Trustees or the trustees or administrators of then prevailing that a prudent person acting in a like capacity the Employer Trusts, as appropriate. and familiar with such matters would use in the conduct of an Section 7.3 Amendment: The Retirement Trust may be enterprise of a like character and with like aims. amended by the vote of a majority of the Public Employers, Section 5.2 Liability: The Trustees shall not be liable for any each casting one vote. mistake of judgment or other action taken in good faith, and Section 7.4 Procedure: A resolution to terminate or amend for any action taken or omitted in reliance in good faith upon the Retirement Trust or to remove a Trustee shall be submit- the books of account or other records of the Retirement Trust, ted to a vote of the Public Employers if: (i) a majority of the upon the opinion of counsel, or upon reports made to the Trustees so direct, or; (ii) a petition requesting a vote signed by Retirement Trust by any of its officers, employees or agents or not less that 25 percent of the Public Employers, is submitted by the Investment Adviser or any sub-investment adviser, to the Trustees. accountant, appraiser or other expert or consultant selected with reasonable care by the Trustees, officers or employees of the Retirement Trust. The Trustees shall also not be liable for Article Vlll. Miscellaneous any loss sustained by the Trust Property by reason of any Section 8.1 Governing Law: Except as otherwise required investment made in good faith and in accordance with the by state or local law, this Declaration of Trust and the Retire- standard of care set forth in Section 5.1. ment Trust hereby created shall be construed and regulated by Section 5.3 Bond: No Trustee shall be obligated to give any the laws of the District of Columbia. bond or other security for the performance of any of his or her Section 8.2 Counterparts: This Declaration may be r4l+des hereunder. executed by the Public Employers and Trustees in two or more counterparts, each of which shall be deemed an original but all of which together shall constitute one and the same instrument. . .. . . .. . . . . . . . . . . . .... . . . ..... . . . . . . . .. . . . . .... .. . . .. . . . . . . . . . .... . . . . . .. .. . . . . . ... . . . . . . . .. . .. . . . . ... . . . ... . Sixteen 457 Plan Loan .Guidelines Name of Plan: City of Kent athingtnn 1. Purpose The purpose of these guidelines is to establish the terms and conditions under which the employer will grant loans to participants.This is the only official Loan Program Document of the above named Plan. H. Eligibility Loans are available to all active employees.Loans will not be granted to participants who have an existing loan in default. Loans will be pro-rated among all the funds in which the participant is invested at the time the loan is made. Loans are available for the following purposes: [select one] All purposes ❑ Loans shall only be granted in the event of a participant's hardship or for the purpose of enabling a participant to meet certain specified financial situations.The employer shall deter- mine,based on all relevant facts and circumstances,that the amount of the loan is not in excess of the amount required to relieve the financial need.For this purpose,financial need shall include,but not be limited to:unreimbursed medical expenses of the participant or members of the participant's immediate family,establishing or substantially rehabilitating the principal residence of the participant,or paying for a college education (including graduate .. studies) for the participant or his/her dependents. Ill. Frequency of loans [select one] Participants may receive one loan per calendar year.Moreover,participants may have only one outstanding loan at a time. ❑ Participants may receive one loan per calendar year.Moreover,no participant may have more than five (5) loans outstanding at one time. EXHIBIT .... . . . ..... . .. .... .. ..... ...... . .. . . .. . . .. . .. .. . . ... . . . . . . . . .. . .. . . . .... .. . . .. . . . .. . . . .. . . . . . .. . 0ne ICMA RETIREMENT CORPORATION IV. Loan amount The minimum loan amount is $1,000. The maximum amount of all loans to the participant from the plan and all other plans sponsored by the employer that are qualified employer plan under section 72(p)(4) of the Code is the lesser of- (1) $50,000,reduced by the excess (if any) of a. The highest outstanding balance of loans during the one-year period ending on the day before the date a loan is to be made,over b. The outstanding balance of loans on the date the loan is to be made; or (2) one half of the participant's vested account balance. If a participant has any loans outstanding at the time a new loan is requested,the new loan will be limited to the maximum amount calculated above reduced by the total of the outstanding loans. A loan cannot be issued for more than the above amount.The participant's requested loan amount is subject to downward adjustment without notice due to market fluctuation between the time of application and the time the loan is made. V. Length of loan A loan must be repaid in substantially equal installments of principal and interest,at least monthly,over a period that does not exceed five (5) years. Loans for a principal residence must be repaid in substantially equal installments of principal and interest,at least monthly,over no more than 1 [state number of years] years (maximum 30 years). VI. Loan repayment process Loans for active employees must be repaid through payroll deduction.Repayment will begin as soon as practicable on a date determined by the employer's payroll cycle. Loans outstanding for former employees or employees on a leave of absence must be repaid on the same schedule as if payroll deductions were still being made unless they reamortize their loans and establish a new repayment schedule that provides that substantially equal payments are made at least monthly over the remain- ing period of the loan.All repayments must be made through the employer. Loan payments,including loan payments from former employees,are allocated to the participant's current election of investment options on file with RC. The participant may pay off all or a portion of the principal and interest early without penalty or additional fee.Extra payments are applied forward to both principal and interest as specified in the original repayment schedule,unless the additional payment is for the balance due. . ... .. ... .. . .. . . .. . .. . . . . .. . .. ... . .. . . .. ... . .. ... .. . .. ... . . .... . ...... ... ..... ... .. . .... .. ... ... . two 457 Plan Loan Guidelines VI1. Loan interest rate The rate of interest for loans of five-(5) years or less will be based on prime plus 0.5%. The rate of interest for loans for a principal residence will be based on the FHA/VA rate. Interest rates are determined on the last business day of the month preceding the month the loan is disbursed.The interest rate is locked in at the time a loan is approved and remains constant throughout the life of the loan. The prime interest rate is determined on the last business day of each month using the Wall Street Journal as the source.The FHA/VA interest rate is also determined on the last business day of each month using the Telerate Information Service as the source. Loan interest rates for new loans may fluctuate upward or downward monthly,depending on the movement of the prime and FHA/VA interest rates. The employer may modify the manner in which loan interest rates will be determined,but only with respect to future loans. VII1. Loan application procedure All loans must be requested in writing on an application approved by the plan administrator.The application must be signed by the participant.The employer must review and approve the application. The participant will be required to sign a promissory note evidencing the loan and a disclosure statement that includes an amortization schedule prior to receiving a loan check.Loan checks will generally be issued on the Friday following the receipt of a complete loan application.The loan check,promissory note,disclosure statement and truth-in-lending recision notice will be sent to the employer,who will obtain the necessary signatures and deliver the check to the participant.All executed documents must be returned to the plan administrator within 10 calendar days from the date the check is issued. IX. Security/Collateral That portion of a participant's account balance that is equal to the amount of the loan is used as collateral for the loan.The collateral amount may not exceed 50 percent of the participant's account balance at the time the loan is taken. Only that portion of the account balance that corresponds to the amount of the outstanding loan balance is used as collateral. X. Acceleration [select one] (P All loans are due and payable in full upon separation from service. Cl All loans are due and payable when a participant receives a distribution of all of his/her account balance after separation from service.The amount of the outstanding loan balance will be reported as a distribution in addition to the amount of cash distributed from the plan. ❑ All loans are due and payable when a participant receives a distribution of part of his/her account balance after separation from service.The amount of the outstanding loan balance will be reported as a distribution in addition to the amount of cash distributed from the plan. . .. .. . . .. ..... . .. . . .. . .. ...... ..... .. .. . . . . ..... . . . .. . . . . . .. . . . . . .. . . . . . .. . . . . . .. . .. ..... . . . . ... . t h r e e ICMA RETIREMENT CORPORATION XI. Reamortization V Any outstanding loan may be reamortized.Reamortization means changing the terms of a loan,such as length of repayment period,interest rate,and frequency of repayments.A loan may not be reamortized to extend the length of the loan repayment period to more than five (5) years from the date the loan was originally made,or in the case of a loan to secure a principal residence,beyond the number of years specified by the employer in Section V above. A participant must request the reamortization of a loan in writing on a reamortization application acceptable to the plan administrator.Upon processing the request,a new disclosure statement will be sent to the em- ployer for endorsement by the participant and approval by the employer.The executed disclosure statement must be returned to the plan administrator within 10 calendar days from the date it is signed.The new disclo- sure statement is considered an amendment to the original promissory note,therefore a new promissory note will not be required. A reamortization will not be considered a new loan for purposes of calculating the number of loans outstand- ing or the one loan per calendar year limit. XI1. Refinancing existing loans If a participant has one outstanding loan,that loan may be refinanced. If a participant has more than one outstanding loan,no loans may be refinanced.Refinancing means concurrently repaying an existing loan and borrowing an additional amount through a new loan.A participant may not refinance a residential loan. In order to refinance an existing loan,a participant must request a new loan in writing on an application approved by the plan administrator.Such request must be made at a time when the participant is eligible to obtain a loan as defined by the employer in Section III above.The amount of a new loan requested for the purpose of refinancing is subject to the loan limits specified in Section IV above. Because a refinancing is considered a new loan,only active employees may refinance an outstanding loan. XI11. Reduction of Loan If a participant dies prior to full repayment of the outstanding loan(s),the outstanding loan balance(s) will be deducted from the account prior to distribution to the beneficiary(ies).The unpaid loan amount is a taxable distribution and may be subject to early withdrawal penalties.The participant's estate is responsible for taxes or penalties on the unpaid loan amount,if any.The beneficiary is responsible for taxes due on the amount he/she receives.A Form 1099 will be issued to both the beneficiary and the estate for these purposes. ... . ... ..... . . . .. . ..... . . . . ... ... . .. . .. ... . . . . .. .... . . . . . . . . . . . . .. . .. . . . . .. .. ..... .. . .... .... . .. . f o u r 457 Plan Loan Guidelines XIV. Loan default If a required payment of principal and interest is not made within 90 days of the date such payment is due, the loan is considered in default.If a loan is in default,the loan will be foreclosed during the calendar year in which the participant separates from service.If participant has separated from service and defaults on a loan, then the loan will be foreclosed during the calendar year in which the default occurs. If the employer has elected in Section X,and the promissory note so provides,a loan becomes due and payable when the participant separates from service.If the terms of the loan contain this provision,the outstanding loan amount is"deemed"in default as of the date of separation from service.The amount of the outstanding loan,including accrued interest,will be reported to the IRS as a distribution that may be subject to taxes. If the employer has so elected in Section X,and the promissory note so provides,a loan becomes due and payable when the participant takes a distribution of some or all of the balance in his/her account after separa- tion from service.If the terms of the loans contain such a provision and the outstanding loan balance is not paid prior to the distribution from the account,the outstanding loan amount will be considered in default upon issuance of the distribution check.The amount of the outstanding loan,including accrued interest,will be reported to the IRS as a distribution that may be subject to taxes. Participants who have an existing loan in default will not be eligible for additional loans. XV. Fees Fees may be charged for various services associated with the application for and issuance of loans.All appli- cable fees will be debited from the participant's account balance and/or from the participant's loan repayments prior to crediting the repayment of principal and interest to the participant's account.A schedule of fees applicable to this plan is available from the plan administrator. XVI. Other The employer has the right to set other terms and conditions as it deems necessary for loans from the plan in order to comply with any legal requirements.All terms and conditions will be administered in a uniform and non-discriminatory manner. In Witness Whereof, the employer hereby caused these Guidelines to be executed this day of , 19 . EMPLOYER Accepted: ICMA RETIREMENT CORPORATION By: By: Title: Title: Attest: Attest: . ... . . .... .. ... . .. . .. . . . . .. . . . . . .. .. . .. .. . . . . . . . . . . . . . . .. . . . ..... . . . . ... . . . . .. . ... . . . ..... . . . . .. . five EXIMIT D ,AFFIRMATIVE STATEMENT FOR AMENDING A DEFERRED COMPENSATION PLAN Name of Employer: CITY OF KENT State: WASHINGTON 3 / 0 / 1 / 6 / 5 / 5 / Employer Plan Number As a duly authorized agent of the above named Employer,I hereby amend and restate the Employer's Deferred Compensation Plan("the Plan") in the form of the ICMA Retirement Corporation Deferred Compensation Plan and Trust. Specifically, the assets of the Plan shall be held in trust, with the Employer serving as trustee, for the exclusive benefit of the Plan participants and their beneficiaries, and the assets shall not be diverted to any other purpose. The Employer's beneficial ownership of the Plan assets held in the ICMA Retirement Trust shall be held for the further exclusive benefit of the Plan participants and their beneficiaries; The above named employer stipulates that the Plan will permit loans; and affirms that the Employer hereby agrees to serve as trustee under.the Plan. (Signature) (Title of Designated Agent) (Date) EXHIBIT Explanation of 457 Small Balance Account Distributions ICh"Retirement Corporation 1 and Employer Checklist P.O.Box96220 1CMA •RC Employer: To assist, you may complete both sides of this worksheet wasningcon,oc 20090-62 PXIn Mn;� to determine if the participant is eligible for a small balance account 202.962-4600 FAX 962-46b-• COM) distribution. Toll Free 1-800.669-7400 Explanation of 457 Small The small balance account distribution provision allows one-time employer-or employee-initiated distributions of 457 Balance accounts with balances of$3,500 or less chat have not received contibutions for at least two years.Transfers from another Account employer's 457 plan or from another plan offered by the current employer are not considered contributions.In addition,a Distributions participant may nor have received any prior distribution from the plan other than an emergency withdrawal.A small balance withdrawal may occur while a participant is employed or after termination of employment.To iniciace such a withdrawal, the small balance account distribucion provision must be included in the employer's plan document. For employers with multiple 457 plan providers,a key issue in determining whether a participant is eligible for a 457 small account balance distribution is whether the employer considers these providers to be part of one 457 plan or as providing separate plans. If the employer considers these providers as part of one plan,the assets in the 457 accounts maintained by all providers for the participant must be aggregated for purposes of determining whether the participant is eligible for a small balance distribucion. If the employer considers these providers as providing separate plans,the accounts under each provider may be considered separately for purposes of determining whether the participant is eligible for a small balance distribution. RC must receive requests by 12 noon Eastern Time on Wednesday in order to process a payment for Friday of that week. Paymenrs may be coo small to automatically generate taxes to be withheld.In all cases,the participant should submit the appropriate federal and/or scare forms W-4 with this form. Employer's RC Employer:To assist,you may use the following worksheet to determine if the participant is eligible for a small balance Payment account distribution(de minimis withdrawal). If you are able to check one box in each of the three categories below for a Determination particular participant, that participant is eligible for a small balance account distribution.Small balance account distributions Worksheet may be initiated solely b the employer;the participant does not need to consent nor can the participant prevent the employer Y Y YP P P P P For from initiating payment. Employer's Use Only 1.Account balance is$3,500 or less. Check the one box next to the applicable situation: ❑ RC is sole provider for this plan and the participant's current account:balance is$3,500 or less. ❑ The employer offers a choice of providers,but RC is the only provider maintaining an account with a balance for the participant and the RC account balance is currently$3,500 or less. The employer offers a choice of providers and accounts with balances are maintained by mulciple providers for the j parcicipanr. i ❑ The employer considers these multiple providers as offering multiple plans;therefore,the amount in each plan is LL M w considered separately.The balance in the RC plan is$3,500 or less. r t n LL - Z ElThe employer considers these multiple providers to be part of one plan;therefore,the assets in the 457 accounts for the LO O Z participant must be aggregated for purposes of determining whether the participant is eligible for a small balance 0 distribution.The coral amount in all accounts of all providers is$3,500 or less.(The participant must withdraw the d U U cocal amount from all ocher providers at the same time as the withdrawal from RC.) 2.Account has been inactive for at least 24 months.Transfers from another employer's 457 plan or from another plan offered by you are not considered contributions. Check the one box next to the applicable situation: ❑ RC is sole provider for this plan and the participant's current account has been inactive for 24 months or more. ❑ The employer offers a choice of providers,but RC is the only provider maintaining an account with a balance for the participant and the RC account has been inactive for 24 months or more. The employer offers a choice of providers and accounts with balances are maintained by multiple providers for the parcicipanr. ❑ The employer considers these multiple providers as offering multiple plans;therefore,contributions into each plan ar considered separately.No contributions have been made to the account in the RC plan for 24 months or more. ❑ The employer considers these multiple providers to be parc of one plan;therefore,contributions into the 457 accounts for the participant must be aggregated for purposes of determining whether the participant is eligible for a small balance distribution.No contributions have been made into any of the accounts for 24 months or more.(The participant must withdraw the total amount from all other providers at the same time as the withdrawal from RC.) EXHIBIT (continued on back) 457 Small Balance Account Distribution Form ICMA Retirement Corporation • PLEASE READ ALL INSTRUCTIONS ON THE FRONT OF THIS FORM CAREFULLY BEFORE P.O.Box 96220 COMPLETING THIS FORM. Washington,DC 20090-6220 tau ^•`axrlarN ES r • Participants,after completing and signing this form,submit it to your employer for processing. 202-962-4600 FAX 962.4601 txsnroRATION . RC must receive requests by 12 noon Eastern Time on Wednesday in order to process a payment for Friday of that week. Toll Free 1.800-669-7400 Em foyer Plan Number Em to e�lae Name Participant 3 0 Information Social Security Number Daytime Phone Number State All Informs- �_ r—T�_fTTTI _ � _ lion this t I I L_1 �L� Area Code Box Must Always be Name of Participant Completed to Avoid a Delay in Last First M.1. Processing. —= Permanent Address: Zip Code Mailing Address for Payments(if different from permanent address): For state tax purposes, please declare your residency state when receiving this payment If not completed, RC will use the state noted under the permanent address section. As required by law and under penalty of perl'ury;j certify that the Social Security Number(Taxpayer Identification Number) I provided for myself is correct. Participant Signature: Date To the participant: Stop here after signing the form. Please submit the form to your employer, who will forward it to RC. 2 RC Employer:To assist,you may complete the worksheet on the front of this form to determine if the -_�Erttpioy rt iparitgibf fi5i'a sm tF£alarit a accouncdisirffiuiion(fietfmis"ivithiiiaw'aI):~Tkere mtisr be one"- Authorization check for each of the two categories. For Employer's I certify that the participant listed above is eligible to receive the one-time small balance account distribu- Use Only tior;from this plan. Employer's Signature: Date Name of Employer Authorized Official (Please Print): Employer Authorized Official's Title: = ' tst• RC Copy 2nd • Employer Copy 3rd • Employee Copy FRM571407-9612 ............. Kent City Council Meeting Date October 21. 997 Category Consent Calendar 1. SUBJECT: 1998 CITY ART PLAN BUDGET AND 1998-2002 FIVE-YEAR ART PLAN - ACCEPT 2 . SUMMARY STATEMENT: Accept and Approve the 1998 City Art Plan Budget and the 1998-2002 City Five-Year Art Plan. To be in compliance with the general procedures of the City Art Program (Ordinance No. 2552) , the annual budget for all City Art Program projects, including the Five-Year Art Plan, necessitates acceptance by Council each year. 3 . EXHIBITS: Copy of 1998 Art Plan Budget and Five Year Art Plan 4 . RECOMMENDED BY: Staff and Parks Committee 10/7/97 (Committee, Staff, Examiner, Commission, etc. ) 5. UNBUDGETED FISCAL/PERSONNEL IMPACT: NO YES X 6 . EXPENDITURE REQUIRED: $187 , 000 - 1998 SOURCE OF FUNDS: City Art Program (Ordinance No. 2552) 7 . CITY COUNCIL ACTION: Councilmember moves, Councilmember seconds DISCUSSION• ACTION: Council Agenda Item No. 3G CITY OF KENT PARKS AND RECREATION DEPARTMENT KENT ARTS COMMISSION 1998 CITY ART PLAN FIVE YEAR - CITY ART PLAN Page 1 of 7 CITY OF KENT PARKS AND RECREATION DEPARTMENT KENT ARTS COMMISSION 1998 CITY ART PLAN PROJECTS East Hill Park artwork 30,000 Garrison Creek Park artwork 30,000 Refurbish 2 Major Works 5000 Reclamation Art Project (2) 101000 Collection Documentation & Ed/PKomo Material 1500 Portable Collection Purchases 3,000 Subtotal $138,000 OTHER EXPENSES -' Administration 31,000 Maintenance, Supplies 7,400 Insurance 11300 Design Fee, Honorariums, Prof. Services 6,400 Postage and Printing 2.900 Subtotal 495000 TOTAL $1879000 Page 2 of 7 CITY OF KENT PARKS AND RECREATION DEPARTMENT KENT ARTS COMMISSION 1998 CITY ART PLAN Proiect Title: Artwork for the East Hill Park expansion Project Descri t�ion: A professional artist would be hired to work with the landscape architects and staff to conceptualize, design, create and install/integrate an original artwork(s) in the new expansion area of East Hill Park. To facilitate the integration of the artwork. the artist will be hired through direct selection, thus allowing for more time for the artist to work on the project. Estimated 1998 Costs: $30.000 Funding Source: Cite Art Plan Background: The City's park system has been an ideal setting for placement of permanent public art. The highly used parks allow citizens to enjoy the artworks in a truly public area. The integration of the artwork into the design and construction of projects and parks has traditionally helped with maintenance. curbing vandalism and allowing budget dollars to be spent efficiently. Protect Title: Artwork for the Garrison Creek Park renovation Project Description: A professional artist would be hired to work with the landscape architects and staff to conceptualize, design, create and install/integrate an original artwork(s) in the renovation of Garrison Creek Park. To facilitate the integration of the artwork, the artist will be hired through direct selection, thus allowing for more time for the artist to work on the project. Estimated 1998 Costs: $30,000 Funding Source: City Art Plan Page 3 of 7 Background: The City's park system has been an ideal setting for placement of permanent public art. The highly used parks allow citizens to enjoy the artworks in a truly public area. The integration of the artwork into the design and construction of projects and parks has helped with maintenance, curbing vandalism and allowing budget dollars to be spent more efficiently. CITY OF KENT PARKS AND RECREATION DEPARTMENT KENT ARTS COMMISSION 1998 CITY ART PLAN Project Title: Refurbishment of two major artworks Project Description: Two major sculptures in the City's collection are in need of refurbishment. Sentinel Kent by Valdis Zarins is located at the front entrance of the Kent Library and "EARTH" by Barbara Grygutis is located in West Fenwick Park. The original artists will be hired to complete the refurbishment of their artworks. For "Sentinel Kent", the artist will work,to change the design of the pool to alleviate the debris build-up and resulting maintenance. For "EARTH", the artist will move the artwork to a more accessible area in the park and change the design to both aid future maintenance and have the work more integrated into the park. Estimated 1998 Costs: $50,000 r Funding Source: City Art Plan Background: The City's investment into public artwork includes the maintenance of the artwork. As the City's collection matures, artworks will need significant attention. A case by case decision is made on the degree and cost of the maintenance of the artworks. The Arts Commission recommends that since these two works are important and significant to the City's collection the investment should occur to keep them looking their best and remaining a popular and aesthetic City feature. Project Title: Reclamation Art Project (RAP) Project Description: This project is a continuation of the successful public art program that has area youth designing and producing artworks with a professional artist. Two projects are planned for 1998. One project will be in Linda Heights Parks and the other site will be determined. The overall design of the projects (mural, installation, environmental work, etc.) will be determined by the youth in cooperation with the artist and the Parks Department staff. Estimated 1998 Costs: $10,000 Funding Source: City Art Plan Page 4 of 7 Background: The first Reclamation Art Project, the "Dig It" mural in West Fenwick Park. was completed by students of Kent West High School in 1994. Following the success of that project. four works were completed in 1995, two in 1996 and three in 1997 throughout the City. The response from the youth and the community has been extremely positive. The projects have promoted the City's interest in working with youth. Vandalism has declined and money is saved in maintenance. CITY OF KENT PARKS AND RECREATION DEPARTMENT KENT ARTS COMMISSION 1998 CITY ART PLAN Project Title: Collection Documentation and Education/Promotional Material. Project Description: A graphic design artist or design studio would be hired to create printed material that would be used for documentation, education and promotion of the City's public art collection and Arts Commission. The project would include setting design standards to be used in-house for future public art publications. The project also allows for the needed photo documentation of the City's major artworks. Estimated 1998 Costs: $15,000 Funding Source: City Art Plan Background: The City of Kent Arts Commission has established one of the preeminent public art collections in the state. There has never been a printed publication that highlights and documents the collection. There has been an expressed interest from the public. including the schools, for such a document. As pan of proper collection management there is also a need for photo documentation. Project Title: Portable Collection Purchases FXrgject Description: Purchase high quality artworks from the Kent Canterbury Faire Juried Fine Art Exhibit. The artworks will be exhibited in publicly accessible areas of the City of Kent buildings. Estimated 1998 Costs: $3,000 FundingSource: City Art Plan Background: The City of Kent Arts Commission has established a collection of portable artwork that includes paintings, prints and other works. The purchase awards at the Canterbury Page 5 of 7 Faire Fine Art Exhibit bring a higher quality of artwork to the exhibit and allows the Citv to - lic buildings. This program also supports local artists and obtain artwork to enhance the pub promotes participation in City programs. CITY OF KENT PARKS AND RECREATION DEPARTMENT KENT ARTS COMMISSION 1998 - 2002 CITY ART PLAN 1998 PROJECTS COSTS East Hill Park artwork 30,000 Garrison Creek Park artwork 301000 Refurbish 2 Major Works 50,000 Reclamation Art Project (2) 10,000 Collection Documentation & Ed/ Promo Material 15,000 Portable Collection Purchases 31000 Administration/Maintenance 49,000 Approximate Year Total $187,000 1999 PROJECTS COSTS Millennium Public Participation Artwork 60,000 Reclamation Art Project (2) 10,000 Performing Art Center planning 10,000 Portable Collection Purchases 4,000 Administration/Maintenance 52,000 Approximate Year Total $1365000 2000 Page 6 of 7 PROJECTS COSTS Performing Art Center Artwork 70,000 Reclamation Art Projects (2) 12,000 Portable Collection Purchases 4,000 Administration/Maintenance 54,000 Approximate Year Total $140,000 CITY OF KENT PARKS AND RECREATION DEPARTMENT KENT ARTS COMMISSION 1998 - 2001 CITY ART PLAN 2001 PROJECTS COSTS Performing Art Center Artwork 70,000 Reclamation Art Project 8,000 Portable Collection Purchases 4,000 Administration/Maintenance 55,000 Approximate Year Total $137,000 2002 PROJECTS COSTS Capital project artwork 70,000 Reclamation Art Project 81000 Portable Collection Purchases 47000 Administration/Maintenance 55,000 Approximate Year Total $137,000 Page 7 of 7 >,r1 Kent City Council Meeting Date October 21. 997 Category Consent Calendar 1. SUBJECT: RUSSELL ROAD TOT LOT BUDGET - ACCEPT AND AMEND 2 . SUMMARY STATEMENT: Accept grant funds and amend the Playground Safety Equipment budget for the $48, 601 from the King County Youth Sports Facility grant to purchase new play equipment for Russell Road Park, and authorization for the Mayor to sign the project agreement. As reported and approved at the Parks Committee on October 7 , 1997, City staff applied for and received a King County Youth Sports Facility Grant for the Playground Safety Equipment budget in the amount of $48 , 601 to purchase, and with the help of Kiwanis Club volunteers, install new play equipment at Russell Road Park. 3 . EXHIBITS: Letter of grant award from King County 4 . RECOMMENDED BY: Staff and Parks Committee (Committee, Staff, Examiner, Commission, etc. ) 5 . UNBUDGETED FISCAL/PERSONNEL IMPACT: NO YES X 6. EXPENDITURE REQUIRED: $48 , 601. 00 SOURCE OF FUNDS: King County Youth Sports Facility Grant 7 . CITY COUNCIL ACTION: Councilmember moves, Councilmember seconds DISCUSSION: ACTION: Council Agenda Item No. 3H � I King County Executive RON SIMS September 19. 1997 Pam McFall Parks Development Coordinator City of Kent Parks and Recreation d110 - 4th Avenue Kent. WA 98032 Dear Ms. McFall: I am pleased to inform you that you have been awarded a 1997 Youth Sports Facility Grant in the amount of$ 48.601. This grant will be given to vour organization and the Kiwanis Club of Meridian to install a play area at Russell Road Park. _ Within the next couple of weeks the administrator of the Youth Sports Facilitv Grant Program will send out service contracts for completion. Funds will be available when the contracting procedures are completed, which usually takes five to eight weeks. Please do not incur anv costs against your project until you have received an "authorization to proceed" notification from the King County Department of Parks and Recreation. Thank you for vour commitment to improving recreational opportunities for todav's youth. and wish you the best with this project. Should you have anv questions about the Youth Sports Facilitv Grant Program, please call Kevin Brown. Program Administrator, at (2-06) 296-4289. Sincerely, Ron tms King County Executive RS:eh cc: Craig Larsen, Director, Department of Parks and Recreation Kevin Brown, Program Administrator, Department of Parks and Recreation DING COUNTY COURTHOUSE 516 THIRD AVENUE, ROOM 400 SEATTLE, OVA 98104.3271 (206) 296-4040 296-0194 FAX 296-0200 TDD E-mail: ron.sims@meuokc.gov .. ................. Kent City Council Meeting Date October 21, 997 Category Consent Calendar 1. SUBJECT: SENIOR CENTER PARKING LOT - ACCEPT AS COMPLETE 2 . SUMMARY STATEMENT: Accept the Senior Center Parking Lot Project as complete, and release retainage to Walsh Construction, upon release from the Department of Labor and Industries. Walsh Construction was contracted for mobilization, earthwork, asphalt, curbing and walks, site utilities, and landscaping for the Kent Senior Activity Center Parking lot, in conjunction with the construction of the new senior assisted living complex located directly across from the Senior Center. Final inspec- tion and acceptance of the project has been executed by City staff. 3 . EXHIBITS: None 4 . RECOMMENDED BY: Staff (Committee, Staff, Examiner, Commission, etc. ) 5. UNBUDGETED FISCAL/PERSONNEL IMPACT: NO X YES 6. EXPENDITURE REQUIRED: $ SOURCE OF FUNDS: 7 . CITY COUNCIL ACTION: Councilmember moves, Councilmember seconds DISCUSSION• ACTION: Council Agenda Item No. 3I .............. Kent City Council Meeting Date October 21. 997 Category Consent Calendar 1. SUBJECT: ADA BUS ZONE IMPROVEMENTS - ACCEPT 2 . SUMMARY STATEMENT: As recommended by the Public Works Director, accept the ADA Bus Zone Improvements project as complete and release retainage to TF Sahli Construction upon standard releases from the State, and release of any liens. The original contract amount was $64, 529.50. The final construction cost was $53 , 220. 00. 3 . EXHIBITS: None 4 . RECOMMENDED BY: Public Works Director (Committee, Staff, Examiner, Commission, etc. ) 5. UNBUDGETED FISCAL/PERSONNEL IMPACT: NO X YES 6. EXPENDITURE REQUIRED: $ SOURCE OF FUNDS• 7 . CITY COUNCIL ACTION: Councilmember moves, Councilmember seconds DISCUSSION: ACTION: Council Agenda Item No. 3J .............. Kent City Council Meeting Date October 21. 997 Category Consent Calendar 1. SUBJECT: FAIRWEATHER SEWER EXTENSION - BILL OF SALE 2 . SUMMARY STATEMENT: As recommended by the Public Works Director, acceptance of the bill of sale for Fairweather Sewer submitted by Robin Fairweather for continuous operation and maintenance of 258 feet of sanitary sewer .line, and release of bonds after the expiration period. The project is located at 94th Avenue South and South 228th St. 3 . EXHIBITS: Vicinity map 4 . RECOMMENDED BY: Public Works Director (Committee, Staff, Examiner, Commission, etc. ) 5. UNBUDGETED FISCAL/PERSONNEL IMPACT: NO X YES 6. EXPENDITURE REQUIRED: $ SOURCE OF FUNDS: 7 . CITY COUNCIL ACTION: Councilmember moves, Councilmember seconds DISCUSSION• ACTION• Council Agenda Item No. 3K m TN ^ yl I TH p a� PL a 205 PL "' s S 206TH J '" y 3 207T FF m a a -• 07TH 1� 209 ik 9S �' w p 5 /y� 20e vL SE 208TH 9T '_ A�•C W W O L yQ e SE 210TH tr� -I PL....... S 211TH ST .�4" o ¢ W 2111 v� --•__--. .._ S 212TH ST �'._.-- I' ,r4` ^ ��`'i,Y t,1,� SE 21r TH v SE 212TH ST PL Zt1 rPl SE 212TT .\ 9STN 1, 213 {�+py '^ , �W y < i SE.._213THy��„ _ __ 1? 213 PL Ca '¢> _-�`m� 2_-U_Ci 5213,�' 21 __ /,\�� 213 PL 213TH SE 213TH PL ST 9i \1 W I W RryTh I >i yr 'p� W s �214'PL � F:.2.LSH a N m mL216TX ST 1H ST i °i °' J.L SE I 216TH ST d N N 2 Jt a E?J7TH_5T _ m 2l6 S p md 218TM 5� 21 biH ST _ -SE 219THsr TH Pa - oj� ISE�2I BTH i ^ y O W SE 2201N 97 '��+ 22 2197N PVT 222 PL c o) Viz. SE x 220TT m OG•,�� a J W � N ,S 222NO ST zz26o sT T. . �.�. _T -�____"_ `•., pd %' 222N0 ST w11 -- SE 22R S 222N0 ST >1 Q a SE 2, a SE 224TH ST '1 _ t� " 23PgPL 224:PL Cp9 •`� �l 0 224 PL N ��•, 225'ST, SE `.- 249ST- i SE 225TH _ PL w r-_.r; � T� 225 P a' 226TH 31 p p jjJJ SE 227TH S 229TH I ST S 26 TH -- 02 77H L w-----{---� 228 LT 228TH ST SE 226TH ST SE 2261H LOCATION S-- PROJECT 229 4 t '" 230 ST SE 231 $7 _ 230 PLpL Q�O �06� arty 231S ST m 1 232M0 9T`On 32ND ST o IVRC LN j m S 232NO �� SE 232 ST -• 232N0 S' SE 232NO PL / Q m a p o \ W � .CT 11TN ` Z - 233 1 ? z PC o ' O SSSj 9 PL \ N Z W 1 95 ,_4 Im N ,Lnlh ,LA p ___. :_-_�_�/ " �AEEIy p `OHO SE 236TX S7 ty SE 236TH PL 236 cPt I W 237T —ST r BOULDRON NRT Y�lS� 237TH Q N F > ' PL �. SE 236TH ST`( y � W O GE6RGE SE S 240TH zi 239TH ST '� x 236 W ST oC o z Q m FVIEN CT 23 m ^� J,.— 21 ¢ W r y m y =( J STD s 9rH n PL m > W s zulsr sT FAIRWEATHER SEWER ¢ CE R Im Y 2 2 s J { 11ONEER STD ¢ c ,v -_S 242ND.__T_,- Kent City Council Meeting Date October 21. 997 Category Consent Calendar 1. SUBJECT: KENT COMMUNITY HEALTH CENTER - BILL OF SALE 2 . SUMMARY STATEMENT: As recommended by the Public Works Director, acceptance of the bill of sale for the Kent Community Health Center submitted by the Community Health Center of King County for continuous operation and maintenance of 150 feet of watermain improvements and 6 feet of sanitary sewer extension, and release of bonds after the expiration period. The project is located at 403 East Meeker Street. 3 . EXHIBITS: Vicinity map 4 . RECOMMENDED BY: Public Works Director (Committee, Staff, Examiner, Commission, etc. ) 5 . UNBUDGETED FISCAL/PERSONNEL IMPACT: NO X YES 6. EXPENDITURE REQUIRED: $ SOURCE OF FUNDS: 7. CITY COUNCIL ACTION: Councilmember moves, Councilmember seconds DISCUSSION: ACTION: Council Agenda Item No. 3L m S 228TH ST NI[[ _ s zzJtH ST S 276TH--•If- /� t W � 0 z w� r- W > a , o S 232ND s- NOVRC LN I m J i 2 YI0 CT S 234TH ST rj W 1 3�S1 24 FL � 95 O � , N -OLE N CLOUDT ST G N� BOULDRON NRT Pq��fr W1 237TH TM ST o�t ( P PL W m CLOU ST Z { 1 ¢f a> / 5 238TH >¢ z U GEORGE LLi m ¢ o z o. F W ST ci m z a y m �VIEW CT 2 T a =j I d J S 240TH STD s 2397H FL cn (' _F w c te W cSAM ST ¢ E- ' CE R ¢¢ z ' 7 N a PIONEER S7 PROJECT LOCATION U F a MCMIL AN TEMPEMANCE ST m >S J SMITH ST c SMITH ST 244TH W N w ¢'HARD X HRRRISON e. : 'a HRRRISON 9T :W J MEEKER 9Ta� z 4~ �b. GONE ST " ytir a d'e' WEILAND SE 24 x z i w I t TACOMA 14 �I a l fi = o ¢ 6 ¢ TITUS 5T - i ifh SIq co CHERRY u z Y p{t77 _ i -*N DEAN ST tf HILL ltl d a w i s� W MRCLTN 5T a SRAR m S7 GUIBERSON ST IS E SERTiIE j W x ST j � W SEATTLE ST now ST .`\ ti9� m W is a �I i E CHiCRGO ST CLEARV IEvi - �1 J Y CHJC W d LAUREL ST \ \ \ \ z i ` '-i HEMLOCK ST� a vi OD I ¢ w m : 2 V. ER CART sT V. FILBERT ST NARION STWALNUT ST WE ' J MAPLE ST II T\ y0o \ C S 262ND ST /'// APE S�262�NO SS\f� \ ' KENT COMMUNITY HEALTH CENTER Kent City Council Meeting Date October 21. 997 Category Consent Calendar 1. SUBJECT: KENT NORTH CORPORATE PARK EAST - BILL OF SALE 2 . SUMMARY STATEMENT: As recommended by the Public Works Director, acceptance of the bill of sale for Kent North Corporate Park East submitted by Pacific Northwest Group A for continuous operation and maintenance of 2 , 396 feet of watermain improvements, 33 feet of sanitary sewer extension and 2 , 065 feet of street improvements, and release of bonds after the expiration period. The project is located at 80th Avenue South & 80th Place South. 3 . EXHIBITS: Vicinity map 4 . RECOMMENDED BY: Public Works Director (Committee, Staff, Examiner, Commission, etc. ) 5. UNBUDGETED FISCAL/PERSONNEL IMPACT: NO X YES 6. EXPENDITURE REQUIRED: $ SOURCE OF FUNDS: 7 . CITY COUNCIL ACTION: Councilmember moves, Councilmember seconds DISCUSSION• ACTION• Council Agenda Item No. 3M (SW 43RD ST) S S80TH ST �. I i I91sT i g 182N0 f J a l y PROJECT LOCATION �'t+ i W tpOp > w 'A i u z t � A r W 1 � ✓+ o S 1881H ST L'S 5 188TH ST GLACIER 5T J iS Va 5 190TH ST S 190TH ST L�9FEA' 1 ST rn I S 192NO �ST •',,� ST -.. - -----------.�-•--ti y { R a x � ST { S 194TH ST rH ST J S 196TH ST M I-------- ------ / S l97 ST m Jll p 1 w� 00 r m 5 200TH ST- � o L ' -ST SS 9 2_02N0 ti; W x; > N (a+; S 204TH ST wL o x E'• 206TH ST S 206TH ST uTs. W; — !1 0) 5 r200TH ST W •� ?0' i 1 s 209TH i a x --.-Z12TH.-.ST- " -- -- - - S 212TH ST --- -- -- 1 z -- III KENT NORTH CORPORATE PARK EAST S 216TH ST i� IT i 5 216 Tn Kent City Council Meeting Date October 21, 997 Category Consent Calendar 1. SUBJECT: WATERSHED ACTION GRANT - ACCEPT AND ESTABLISH BUDGET 2 . SUMMARY STATEMENT: Accept grant funds and establish a budget for the Watershed Action Grant, as recommended by the Public Works Committee. This $2 , 570 grant is designated for the design and installation of a native plant arboretum by landscape horticulture class students in the Kent School District. 3 . EXHIBITS: Public Works Committee minutes, Public Works Director memorandum and Watershed grant 4 . RECOMMENDED BY: Public Works Committee (telephone concurrence from Judy Woods) (Committee, Staff, Examiner, Commission, etc. ) 5 . UNBUDGETED FISCAL/PERSONNEL IMPACT: NO X YES 6. EXPENDITURE REQUIRED: $ SOURCE OF FUNDS: 7 . CITY COUNCIL ACTION: Councilmember moves, Councilmember seconds DISCUSSION• ACTION: Council Agenda. Item No. 3N PUBLIC WORKS COMMITTEE October 15, 1997 PRESENT: Tim Clark Tom Brubaker Connie Epperly Don Wickstrom Christi Houser ABSENT: Judy Woods Watershed Action Grant `—y Wickstrom explained that this is a $2,570 grant we received from King County Natural Resources to be used to help establish the Green River Arboretum. The students of the Kent School District will be helping with this landscaping program. In response to Clark, Wickstrom noted that this is part of the nursery that we are building at the Green River Natural Resource Enhancement facility. Committee unanimously recommended that staff accept the grant of$2,570 and establish a budget for same. West Valley Highway Storm Drainage Repair - Accept as Complete Wickstrom stated that this project is before the Committee because it went over 10% of the final contract amount and as such needs Committee concurrence before acceptance of full Council. This project ran over 13% primarily due to bad soil conditions. He said there is no problem with funding this overage. This project will relieve the West Valley Highway flooding south of the river that we continually get. Committee unanimously recommended that the West Valley Storm Drainage project be accepted as complete. Wickstrom noted that for the last several years there has been flooding from rainfall between Smith Brothers Dairy and the State Maintenance Yard . The farmers built a pipe that eventually collapsed and we replaced it to avoid loosing our road. We will still have flooding when the Green River backs up but we won't have the every day rain type of flooding. Willis St - Street Vacation Wickstrom stated that we have received an official petition for a street vacation and this is a request to put this item on the Council agenda for formal action to set the Public Hearing. Committee unanimously recommended adoption of a resolution setting a hearing date for the Willis St. street vacation. 1 DEPARTMENT OF PUBLIC WORDS October I5, 1997 TO: Public Works Co mmi tee FROM: Don Wickstrom RE: Watershed Action Grant We are in receipt of a Grant from King County Natural Resources Division in the amount of $2,570 for the Green River Arboretum Program. The project/program consists of the City working with landscape horticulture class students in the Kent School District to design and install a native plant arboretum. The project is fully funded by the Grant. ACTION: Recommend that staff accept the grant of $2,570 and establish .a budget for same. GRANT NO. D2539OW DEPARTMENT NATURAL RESOURCES - WATER AND LAND RESOURCES DIVISION GRANTEE CITY OF KENT SERVICES PROVIDED WATERSHED ACTION GRANT AMOUNT $ 2,570 FUND SOURCE FUND 121 Date Contract Signed by DURATION the King County Executive TO JUNE 30, 1998 CONTRACT FOR ,RATl'i' SEg� S THIS CONTRACT is entered into by KING COUNTY "Grantee"), whose address is (the "County"), and nm ICITY of ENT , (the c/ itv of K nt Kent. WA 2=- n D 22 F Avenue South. The County is undertaldng certain activities related to community dac inyolvemenr ;n the Si e WarPr Man=M tit Program , and The County desires to engage the Grantee to render certain undertakings of the County, community services in connection with such NOW, THEREFORE, in consideration of payments, covenants, and agreements hereinafter mentioned, to be made and performed by the parties hereto, the parties covenant and do mutually agree as follows: I. �TTS The Grantee shall provide services and comply with the requirements set forth hereinafter and in the following attached exhibits which are incorporated herein by reference: Scope of Services Attached hereto as Exhibit A Terms anda Attached hereto as Exhibit Sample Lim B Pro'eot A Attached hereto as Exhibit C J g Attached hereto as Exhibit Disability liance Section 504 D Certificate Attached hereto as Exhibit Attached hereto as Exhibit Attached hereto as Exhibit P/FORMS/CSG_INS REV 620/97 -1 C/9 i-3:MI4R II. DURATION OF CONTRACT This Contract shall commence on the day it is signed by the King County Executive, and shall terminate on the 30th day of June , 192$, unless extended or terminated earlier, pursuant to the terms and conditions of the Contract. COMPENSATION AND OD OF PAYMENT A. The County shall reimburse the Grantee for satisfactory completion of the services and requirements specified in this Contract in an amount not to exceed $2.570, payable in accordance with Exhibit B, Section 3. B. The Grantee shall submit its final invoice and other such documents as are required pursuant to this Contract within ten (10) days of completion of the Scope of Services. Unless waived by the County in writing, failure by the Grantee to submit the final invoice and required documents will relieve the County from any and all liability for payment to the Grantee for the amount set forth in such invoice or any subsequent invoice. C. If the Grantee fails to comply with any terms or conditions of this Contract or to provide in any manner the work or services agreed to herein, the County may withhold any payment due the Grantee until the County is satisfied that corrective action, as specified by the County, has been completed. This right is in addition to and not in lieu of the County's right to terminate this Contract as provided in Section IV below. N• TERMNATTON A. This Contract may be terminated by the County without cause, in whole or in part, prior to the date specified above in Section II, upon providing the Grantee ten (10) days' advance written notice of the termination. B. The County may terminate this Contract, in whole or in part, upon five (5) days' advance written notice in the event: (1) the Grantee materially breaches any duty, obligation, or services required pursuant to this Contract, or(2) the duties, obligations, or services required herein become impossible, illegal, or not feasible. If the Contract is terminated by the County pursuant to this Subsection IV(B)(1), the Granter from another source. shall be liable for damages, including any additional costs of procurement of similar services If the termination results from acts or omissions of the Grantee, including but not limited to misappropriation, nonperformance of required services or fiscal mismanagement, the Grantee shall return to the County immediately any funds, misappropriated or unexpended, which have been paid to the Grantee by the County. C. The County may terminate this Contract in whole or in part upon written notice to the Grantee if expected or actual funding is withdrawn, reduced or limited in any way prior to the termination date set forth above in Section II or in any amendment hereto. P/FORMS/CSG INS -2 REV Frnnro^ 0 If the Contract is terminated as provided in this Subsection: (1) the County will be liable only for payment in accordance with the terms of this Contract for services rendered prior to the effective date of termination; and (2) the Grantee shall be released from any obligation to provide further services pursuant to the Contract. Funding under this Contract beyond the current appropriation year is conditional upon appropriation by the County Council of sufficient funds to support the activities described in this Contract. Should such an appropriation not be approved the contract will terminate at the close of the current appropriation year. D. Nothing herein shall limit, waive, or extinguish any right or remedy provided by this Contract or law that either party may have in the event that the obligations, terms and conditions set forth in this Contract are breached by the other party. V. ANCF nF uEr~ni+D A. The Grantee shall maintain accounts and records, including personnel, Property, financial, and Programmatic records and other such records as may be deemed necessary by the County to ensure proper accounting for all contract funds and compliance with this Contract. All such records shall sufficiently and properly reflect all direct and indirect costs of any nature expended and services provided in the performance of this Contract. B. These records shall be maintained for a period of six (6)years after won hereof unless Permission to destroy them is granted by the Office of the Archivist in accordance with RCW Chapter 40.14, or unless a longer retention period is required by law. VI. AUDITS A EVALUATTON A. The records and documents with respect to all matters covered by this Contract shall be subject at all times to inspection, review or audit by the County and/or federal/.state officials so authorized by law during the performance of this Contract and six (6) years after termination hereof. B. The Grantee shall provide right of access to its facilities, including those of any subconsultant, to the County, the state and/or federal agencies or officials at all reasonable times in order to monitor and evaluate the services provided under -this Contract. The County will give advance notice to the Grantee in the case of fiscal audits to be conducted by the County. C. The Grantee agrees to cooperate with the County or its agent in the evaluation of the Grantee's Performance under this Contract and to make available all information reasonably required by any such evaluation process. The results and records of said evaluations shall be maintained and disclosed in accordance with R 1 Chapter 42.17. P/FORMS/CSG_INS REV 6/20/97 _3_ C/97-3:MI49 VII. ASSIGNMRN1/11SUBCO gACTING. The Grantee shall not assign or subcontract any portion of this Contract or transfer or assign any claim arising pursuant to this Contract without the written consent of the County. Said consent must be sought in writing by the Grantee not less than fifteen (15) days prior to the date of any proposed assignment. VEIL HOLD aRMT.F4$ pND Ijyj� hTN�Tf'ATION A. In providing services under this Contract, the Grantee is an independent contractor, and neither.the Grantee nor its officers, agents or employees are employees of the County for any purpose. The Grantee shall be responsible for all federal and/or state tax, industrial insurance and Social Security liability that may result from the performance of and compensation for these services and shall make no claim of career service or civil service rights which may accrue to a County employee under state or local law. The County assumes no responsibility for the payment of any compensation, wages, benefits, or taxes by or on behalf of the Grantee, its employees and/or others by reason of this Contract. The Grantee shall protect, indemnify and save harmless the County and its officers, agents and employees from and against any and all claims, costs, and/or losses whatsoever occurring or resulting from (1) the Grantee's failure to pay any such compensation, wages, benefits or taxes; and/or (2) the supplying to the Grantee of work, services, materials, and/or supplies by Grantee employees or other suppliers in connection with or in support of the performance of this Contract. B. The Grantee further agrees that it is financiaUy responsible for and will repay the County all indicated amounts following an audit exception which occurs due to the negligence, intentional wrongful act and/or failure for any reason to comply with the terms of this Contract by the Grantee, its officers, employees, agents, and/or representatives. This duty to repay shall not be diminished or extinguished by the prior termination of the Contract pursuant to the Duration of Contract, or the Termination section. C. The Grantee shall protect, defend, indemnify, and save harmless the County, its officers, employees, and agents from any and all costs, claims,Judgments, and/or awards of damages, arising out of or in any way resulting from the negligent acts or omissions of the Grantee, its officers, employees, and/or agents The Grantee agrees that its obligations under this subparagraph extend to any claim, demand, and/or cause of action brought by or on behalf of any of its employees, or agents. For this purpose, the Grantee, by mutual negotiation, hereby waives, as respects the County only, any immunity that would otherwise be available against such claims under the Industrial Insurance provisions of Title 51 RCW. In the event the County incurs any Judgement, award and/or cost arising therefrom including attorneys fees to enforce the provisions of this article, all such fees, expenses, and costs shall be recoverable from the Grantee. Claims shall include, but not be limited to, assertions that the use or transfer of any software, book, document, report, film, tape, or sound reproduction or material of any kind, P/FORMS/CSG INS REV 6/20/97 -4 delivered hereunder, constitutes an infringement of any copyright, patent, trademark, trade name, and/or otherwise results in unfair trade practice. IX. INSURANCE RFO TTRFA��rTc By the date of execution of this Contract the Grantee shall procure and maintain for the duration of this Contract insurance against claims for injuries to persons or damages to property which may arise from, or in connection with the performance of work hereunder by the Grantee, its agents, representative, employees, and/or subcontractors. The cost of such insurance shall be paid by the Grantee or subcontractor. For all Coverages: Each insurance policy shall be written on an "Occurrence" form. By requiring such minimum insurance, the County shall not be deemed or construed to have assessed the risks that may be applicable to the Consultant under this contract The Consultant shall assess its own risks and, if it deems appropriate and/or prudent, maintain greater limits and/or broader coverage. I. Minimum Same of IDELr Coverage shall be at least as broad as: 4 a. General Liability: Insurance Services Office form number (CG 00 01 Ed. 11-88) covering COMWMMAL aaMRAL LTARIf TTy. b. Automobile Liability: Insurance Services Officer form number (CA 00 01 Ed. 12-90) covering $jZSNESS AUTO .ovjRArF, symbol I "any auto"; or the combination of symbols 2, 8, and 9. 2. Minimum Limits of Insurance The Grantee shall maintain limits no less than, for: a. General Liability: $LQ44.Q44, combined single limit per occurrence for bodilym' Property damage and for those policies with an aggregate Jam' P� injury and age gate limit, a S2•D00-�aggregate- b.b. Automobile Liability: $ QQQ, combined single limit per occurrence for bodily injury AY and property damage. P/FORMS/CSG INS -5- REV 6/20/97 C/97-3:1%G48 3. Deductibles and Self-Insured Retentions Any deductibles or self-insured retentions must be declared to, and approved by, the County. The deductible and/or self-insured retention of the policies shall not limit or apply to the Grantee's liability to the County and shall be the sole responsibility of the Grantee. 4. Other Insurance Provisions The insurance policies required in this Contract are to contain, or be endorsed to contain the following provisions: a. General Liability Policy: 1. The County, its officers, officials, and employees and agents are to be covered as additional insureds as respects: liability arising out of activities performed by or on behalf of the Grantee in connection with this Contract. 2. To the extent of the Grantee's negligence, the Grantee's insurance coverage shall be primary insurance as respects the County, its officers, officials, employees and agents. Any insurance and/or self-insurance maintained by the County, its officers, officials, employees or agents shall not contribute with the Grantee's insurance or benefit the Grantee in any way. 3. The Grantee's insurance shall apply separately to each insured against whom a claim is made and/or lawsuit is brought, except with respect to the limits of the insurer's liability. b. All Policies: 1. Coverage shall not be suspended, voided, canceled, reduced in coverage or in limits except by the reduction of the applicable aggregate limit by claims paid, until after forty-five (45) days prior written notice has been given to the County. 5. Acceptabilily of Insurers Insurance is to be placed with insurers with a Bests' rating of no less than A:VM, or, if not rated with Bests', with minimum surpluses the equivalent of Bests' surplus size VM. If at any time the foregoing policies shall be or become unsatisfactory to the County, as to form or substance, or if a company issuing any such policy shall be or become unsatisfactory to the County, the Grantee shall, upon notice to that effect from the County, promptly obtain a new policy, and shall submit the same to the County, with the appropriate certificates and endorsements, for approval. n T(1DA/e Veer T1Te 6. Verification of Coverage The Grantee shall furnish the County with certificates of insurance and endorsements required by this Contract. The certificates and endorsements for each insurance policy are to be signed by a person authorized by that insurer to bind coverage on its behalf. The certificates and endorsements for each insurance policy are to be on forms approved by the County and are to be received and approved by the County prior to the commencement of activities associated with the Contract. The County reserves the right to require complete, certified copies of all required insurance policies at any time. 7. Municipal or State A,gencv Provisions If the Grantee is a Municipal Corporation or an agency of the State of Washington and is self-insured for any of the above insurance requirements, a certification of self-insurance shall be attached hereto and be incorporated by reference and shall constitute compliance with this section. X. CONFLICT OF INTEREST King County Code Chapter 3.04 is incorporated by reference herein and the Grantee fully agrees to the conditions of said Chapter. Failure by the Grantee to comply with any requirements of this Chapter shall be a material breach of contract. A. The Grantee covenants that no officer, employee, or agent of the County who exercises any functions or responsibilities in connection with the planning and implementation of the program funded herein, or any other person who presently exercises any functions or responsibilities in connection with the planning and implementation of the program funded herein shall have any personal financial interest, direct or indirect, in this Contract. The Grantee shall take appropriate steps to assure compliance with this provision. B. If the Grantee violates the provisions of Subsection X(A) or does not disclose other interest required to be disclosed pursuant to King County Code Chapter 3.04.120, as amended, the County will not be liable for payment of services rendered pursuant to this Contract. Violation of this Section shall constitute a substantial breach of this Contract and grounds for termination pursuant to Section IV(B)(1)above as well as any other right or remedy provided in this Contract or law. XI. NONDISCRIMINATION King County Code Chapters 12.16 and 12.18 are incorporated by reference herein and the Grantee fully agrees to the conditions of said Chapters. Failure by the Grantee to comply with any requirements of these Chapters shall be a material breach of contract. A. During the performance of this Contract, neither the Grantee nor any party subcontracting under the authority of this Contract shall discriminate on the basis of race, color, sex, religion, nationality, creed, marital status, sexual orientation, age, or presence of any P/FORMS/CSG_R1S -7- C/97-3:NU48 sensory, mental, or physical handicap in the employment or application for employment or in the administration or delivery of services or any other benefits under this Contract. The Grantee shall comply fully with all applicable federal, state and local laws, ordinances, executive orders and regulations which prohibit such discrimination. These laws include, but are not limited to, RCW Chapter 49.60, Titles VI and VII of the Civil Rights Act of 1964, and Section 504 of the Rehabilitation Act of 1973, as amended. B. If the Grantee fails to comply with King County Code Chapter 12.16, such failure shall be deemed a violation of this Chapter and a material breach of this Contract. Such breach shall be grounds for cancellation, termination or suspension of this Contract, in whole or in part. C. During the performance of this Contract, neither the Grantee nor any party subconsulting under the authority of this Contract shall engage in unfair employment practices as defined by King County Code, Chapter 12.18. XII. MINORITY AND WOMEN'S BUSINESS ENTERPRISES King County Code Chapter 4.18 is incorporated by reference herein and the Grantee fully agrees to the conditions of said Chapter. Failure by the Grantee to comply with any requirements of this Chapter shall be a material breach of contract. XIII. PROPRIETARY RIGFITS The parties to this Contract hereby mutually agree that if any patentable or copyrightable material or article should result from the work described herein, all rights accruing from such material or article shall be the sole property of the County. The foregoing shall not apply to existing training materials, consulting aids, check lists and other materials and documents of the Grantee which are modified for use in the performance of this Contract. XIV. KING COUNTY RECYCLED PRODUCT PROCUREMENT POLICY The Grantee shall use recycled paper for the production of all printed and photocopied documents related to the fulfillment of this Contract. If the cost of recycled paper is more than fifteen percent higher than the cost of non-recycled paper, the Grantee shall notify the Contract Administrator, who may waive the recycled paper requirement. The Grantee agrees to use both sides of paper sheets for copying and printing, and to use recycled/recyclable products wherever practical. w XV. =F- CONTRACTIWAIVER OF DEFA= The parties agree that this Contract is the complete expression of the terms hereto and any oral representations or understandings not incorporated herein are excluded. Both parties recognize that time is of the essence in the performance of the provisions of this Contract. Waiver of any default shall not be deemed to be a waiver of any subsequent default. Waiver or breach of any provision of the Contract shall not be deemed to be a waiver of any other or subsequent breach and shall not be construed to be a modification of the terms of the Contract unless stated to be such through written approval by the County, which shall be attached to the original Contract. COUNTY: G FOR Signature - King County Executive Signaiuie V lA l i t Date Name (Please type or print) AAA,*oy- Title (Please type or print) Approved as to Form: ! _ 'I t--^ OFFICE OF THE KING COUNTY Date PROSECUTING ATTORNEY March 18, 1996 PIFORMS/CSG INS -9- C/97-3:MI48 EX—E11Brr A Watershed Action Grant (WAG) SCOPE OF WORK Group. City of Kent i�iG.ErogismlProje €ame Green River Arboretum Pmlect �ooator Robyn Bartell Phone dumber 859-6573 WAG $27570 Award. Date Signed by the Start Date King County Executive End:l3afe. June 30, 1998 A. Project Description 1. Design and install native plant arboretum. 2. Design and install interpretive signage to educate visitors about the value of native plants and alternative landscaping practices. 3. Design, produce and distribute educational brochures. 4. Invite students, community groups and the general public to visit the site. 5. Maintain native plantings and interpretive signage. B. Project Requirements 1. Develop a calendar/timeline for the project and related activities to review with your Community Stewardship grant liaison before beginning the project. 2. Involve Kent School District students throughout the project — in design, installation and maintenance of the arboretum and signage and production and distribution of educational materials. 3. Allow time for grant liaison to review and give input on signage and educational brochure. 4. Allow time for King County Wildlife Education Specialist at 296-7266 to review birdhouse and feeder design and placement. 5. Prepare and review with grant liaison a detailed plan for marketing/publicity of project through the media, contacts with existing community groups, and the Green River Basin Steward, and then implement it. C. Evaluation Method 1. Provide quarterly updates to your grant liaison on your progress. 2. At the end of the grant, prepare a written summary of the project including a summary of the project work plan, successes and ideas for improvement. Provide documentation of the number of brochures distributed, visitors to the r^rm_� vuo Exhibit A: Watershed Action Grant Scope of Work Page 2 site, volunteer hours, in-ldnd donations, and the benefits resulting from the project and estimated number of beneficiaries. 3. Photograph the project during its various phases and send copies to your grant liaison. 4. Send copies of any publicity efforts to your grant liaison (e.g., news articles, newsletters, flyers, announcements and information on distribution). D. Budget Irrigation supplies $541 Plant signage $217 Interpretive sign $682 Landscape materials $491 Benches made from recycled material $217 Brochures $422 Total $2,570 C197-7:MN9 - 9/19/97 E7HEarr B Watershed Action Grant TERAs Am CoNDmONs This Exhibit sets forth the conditions and requirements for the Watershed Action Grant (WAG) program between King County and the City of Kent (hereinafter called the Group). In administering the WAG program, King County has certain responsibilities and requirements set forth in federal, state, and county laws and regulations. This contract has been prepared to meet those requirements. The following terms and conditions are agreed to: 1. Program or Project: The program/project will consist of the volunteer services and projects outlined in Exhibit A attached to this contract. The program/project will be performed at the general direction and coordination of the King County Water and Land Resources Division. The program/project will begin immediately upon signature of the designated Group Representative and King County, and will be completed by the contract completion date specified in Exhibit A, unless extended by written agreement between King County and the Group. Administration: The Group agrees to obtain all necessary volunteers, services, materials, and permits required to perform the program/project outlined in Exhibit A. Any and all volunteers shall not be considered employees of King County while performing services for this program/project. King County's only obligation to the Group shall be the provision of payment for authorized expenses incurred in the performance of this program/project as outlined in Exhibit A. The group shall comply fully with all applicable federal, state, and local laws, orders, regulations and permits and shall provide assurance to King County of that compliance. If, at any time, the Group encounters problems, delays, or conditions that will hamper or significantly affect its ability to carry out the program/ project, the Group will immediately notify King County. Upon completion of the program/project, the Group agrees to prepare an evaluation with results, impacts, and recommendations related to the program/project as specified in Exhibit A.2 Evaluation Method. 3. Payment: In consideration of the group's satisfactory performance, King County agrees to provide payment for services and expenses actually incurred by the Group in the performance of the program/project up to an amount not to exceed the WAG award amount specified in Exhibit A. Such payment shall be made for the costs of supplies, materials, equipment, and/or its use, commercial services and postage, or other expenses (as agreed upon by King County and the Group) which are necessary and directly related to the performance of the program/project. A description of the WAG costs are included in Exhibit A. a Wv I Exhibit B: Watershed Action Grant Terms and Conditions Page 2 The Group must submit to King County an invoice that includes the following: • Name and address of Group (on letterhead or notarized copy) • Date • WAG Project name • List of items for payment • Total amount of payment request. Upon review and approval of the request, King County will pay the approved amount to the Group. The total for all payments shall not exceed the amount of the WAG award. In addition, no budget category/item listed in Exhibit A, Section 3 may be exceeded without written approval from King County. 4. Changes, termination, and amendment: Either party may at any time propose changes to the general scope of the program/project. If such changes are approved by both parties and will result in additional costs, the WAG will be amended by King County to reflect the new costs. This change must be set forth in a written amendment to this contract. cJm.2:EX-s.wst �� E7HIBrr C King County Department of Natural Resources LtwBIIzry WArvER I, the undersigned, being of lawful age or the parent or legal guardian of the volunteer involved in Green River Arboretum (hereinafter referred to as "Project"), in consideration of being allowed to participate in the Project, I hereby release, discharge and by these presents do for myself, my marital community, heirs, executors and assigns, release, acquit, and forever discharge King County, a municipal corporation, and its officers, agents, and employees from any and all actions, courses of action, claims or any other thing whatsoever on account of or in any way related to or arising out of my participation in the Project. Further, I assume liability for any non-participants who accompany me. PARTICIPANT's NAME (please print) AGE: SIGNATURE OF PARTICIPANT. OR LEGAL GUARDIAN: DATE: G77-2:EX C.wsi 6rAM E7EaBrr D King County Department of Natural Resources PROJECT AGREm= I am authorized to act on behalf of the City of Kent (hereinafter referred to as "Sponsor"). I have carefully read and understand the guidelines for the Project. In consideration of the Sponsor's participation in the Project, I hereby acImowledge and assume the following responsibilities: 1) Participants in the Project are solely under the supervision of the Sponsor. 2) Waivers of Liability will be signed for each participant prior to commencement of the Project. 3) Sponsor will traits each participant in pedestrian and other relevant safety rules. All participants will be evaluated by Sponsor to deter thine if they are responsible individu- als who will abide by the rules of the road and use due care and caution while partici- patina in the Project. p Date: % - - 7 -7 PxuaTED NAME Organization Office or capacity of individual signing agreement i Kent City Council Meeting Date October 21,_ 997 Category Consent Calendar 1. SUBJECT: COMMUTE TRIP REDUCTION INTERLOCAL AGREEMENT - AUTHORIZATION 2 . SUMMARY STATEMENT: Approval of and Authorization for the Mayor to sign the Commute Trip Reduction Interlocal Agreement; for staff to accept the funds, and to receipt the funds into the existing CTR project budget, as recommended by the Public Works Committee. The City has received from King County the Commute Trip Reduction (CTR) Interlocal Agreement which allows the City to receive its share of state technical assistance funds to be used for implementing Kent's Commute Trip Reduction Plan in accordance with the CTR law. The City' s first-year alloca- tion is $72 , 029 . 94 . 3 . EXHIBITS: Public Works Committee minutes and CTR Interlocal agreement 4 . RECOMMENDED BY: Public Works Committee (telephone concurrence from Judy Woods) (Committee, Staff, Examiner, Commission, etc. ) 5 . UNBUDGETED FISCAL/PERSONNEL IMPACT: NO X YES 6. EXPENDITURE REQUIRED: $ SOURCE OF FUNDS: 7 . CITY COUNCIL ACTION: Councilmember moves, Councilmember seconds DISCUSSION: ACTION: Council Agenda Item No. 30 - Ken springs Customer Removal Watermain Charge in Lieu of Assessment Wickstrom explained that on the main we built on 152nd south of Kent Kangley we had a pocket of City of Kent water customers even though it's situated in Water District #111 - they are all tied into our transmission main - we put in a distribution system there; turned it over to WD #111 and then as properties that weren't City customers connect to that system, we will want reimbursement. Wickstrom stated that we spent about $261,000 for those properties that were not previous customers and can now connect-we will recoup about $110,000. Of the properties that were large customers and could develop into smaller parcels, we expect to get another $57,000 in the near term. Over the long haul, the way their houses set, they may eventually re-develop and we should get reimbursement from that. He said that in the next 10 years we should be getting $168,000 back on our investment. In response to Clark, Wickstrom explained that because this is within Water District 4111, we turn the mains over to them, they will now be the District's watermains unless people come in want to connect-the District will get a release from us after they have paid the Charge in Lieu of Assessment and then they will be allowed to connect. These are all properties that were off our transmission main dating back to the 1930's. Committee unanimously recommended authorization for the Public Works Department to establish a Charge in Lieu of Assessment for the total amount of $261,829.47 distributed to the affected properties as calculated. Commute Trip Reduction (CTR) Interlocal Agreement Wickstrom said that we receive a certain amount of funds from the state to implement commute trip reduction. He said that every biennium the money is allocated from the state to the county and then to us. This is an agreement that is re-executed every two years between the City and County and this is the process by which we receive $72,000 for the first year. He stated that these funds are deposited into our Commute Trip Reduction fund and can only be used for that purpose. Committee unanimously recommended execution of the CTR Interlocal Agreement. Meeting adjourned: 3:45 p.m. 2 COMMUTE TRIP REDUCTION ACT INI'ERLOCAL AGREEMENT This Agreement is entered into by and between King County(the"County")and the City of Kent("City"). WHEREAS, the Legislature enacted RCW 70.94.521-.551, commonly known as the Commute Trip Reduction Act, to require local governments in those counties experiencing the greatest automobile-related air pollution and traffic congestion to develop and implement plans to reduce single-occupant vehicle commute trips;and WHEREAS, King County and the cities within King County having within their boundaries one or more "major employers" as defined by RCW 70.94.524(1) are required to develop and implement commute trip reduction plans; and WHEREAS, the local jurisdiction commute trip reduction plans are required to be coordinated and consistent with plans of adjacent jurisdictions and applicable regional plans;and WHEREAS, the Legislature appropriated finds to provide technical assistance funding to local jurisdictions required to develop and implement commute trip reduction plans; and pursuant to RCW 70.94.544, the Washington State Department of Transportation shall distribute these fiords to counties, which shall in turn distnbu to fiords to those cities within the county in proportion to the number of major employers and major worksites within each city;and WHEREAS,the Parties hereto are authorized to enter into this Agreement pursuant to RCW 70.94.527(6) and Chapter 39.34 RCW—the Interlocal Cooperation Act; NOW, THEREFORE, in consideration of the mutual promises and covenants herein, it is hereby agreed: SECTION 1.0 PURPOSES The purposes of this Agreement are: (1) To allocate to the City its proportionate share of the State technical assistance finding for reimbursing the City for its costs of implementing a commute trip reduction plan and (2)to continue a cooperative approach between the City and the County in order to address interjurisdictional issues and to meet the statutory requirements for coordination and consistency among the jurisdictions' respective commute trip reduction plans. 1 SECTION 2.0 DEFINITIONS The following definitions shall apply to this Agreement: "Administrative Representative" means a person responsible for being the central administrative contact for issues related to this Agreement as designated pursuant to Section 3.4 of the Agreement. ' "Affected Employer" means a private or public employer that, for at least twelve continuous months during the year, employs one hundred or more full-time employees at a single worksite who begin their regular workday between 6:00 a.m. and 9:00 a.m. on weekdays on two or more weekdays. "Commute Trip Reduction Act" means Chapter 202,Washington Laws of 1991, codified as RCW 70.94.521-.551, as amended. "Commute Trip Reduction Plan (CTR Plan)" means a plan designed to achieve reductions in the proportion of single-occupant vehicle commute trips and the vehicle miles traveled as described in RCW 70.94.527. "Commute Trip Reduction Program (CTR Program)" means a program designed by an affected employer to achieve reductions in the proportion of single-occupant vehicle Commute trips and the commute trip vehicle miles traveled as described in RCW 70.94.531, as amended. "CTR Funds" means state fiords authorized by RCW 70.94.544 to assist counties and cities implementing commute trip reduction plans. "State" is the Washington State Department of Transportation or its successor agency unless otherwise noted. SECTION 3.0 SCOPE OF WORK 3.1 Scope of Work: (a) The scope of work to be completed by the City in accordance with this Agreement is described in Exhibit A- Statement of Work, which by reference is made a part of this Agreement. Funds provided to the City under this Agreement shall be used solely to reimburse the Cite for its costs incurred in performing the work described in Exhibit A. (b) Upon written request from the City and subject to the parties entering into a written amendment to this agreement, the County may assume the City responsibilities described in Exhibit A and retain the City's CTR funding in payment for such work. At such time as the City desires to resume its responsibility for CTR administration as described herein, it shall 2 provide the County with written notification to that effect at least forty-five days in advance. Unless otherwise agreed by the parties, such change in City/County responsibilities shall occur at the end of the quarter in which notice was given or, if such provides less than forty- five days notice, at the end ofthe following quarter. 3.2 Separate Agreements for CTR Services: Consistent with applicable State and local laws and regulations, the City may enter into separate agreements with the County and other public agencies or consultants to perform the following CTR tasks under contract: (1) assist employers in developing CTR programs; (2) review and approve CTR programs, annual reports, requests for exemptions, modifications or other actions submitted by employers; and (3)establish and maintain records and produce required reports. 33 Evaluation and Monitoring: The City shall cooperate with and freely participate in any monitoring or evaluation activities conducted by the State that are pertinent to its performance of the Statement of Work and its responsibilities under the Commute Trip Reduction Act. 3.4 Administrative Representatives: Immediately following their execution of this Agreement, the County and the City shall each designate one person to be the central administrative contact for matters pertaining to this Agreement, and shall make such designation, as well as any subsequent changes in such designation, known to each other in writing, immediately after such designation. w" 3.5 King County CTR Coordinating Committee: The County shall establish and provide administrative support to a CTR Coordinating Committee—a staff-level committee with representatives from Metro and each city in King County required to develop a CTR Plan. Each entity will name its representative to the committee in its own manner. The purposes of the committee shall be to (1)provide a forum for efforts to coordinate the development of the CTR Plans, (2) address issues and share information related to implementation of the CTR Plans, and (3) address other transportation demand management matters as agreed to by the committee. SECITON 4.0 DISBURSEMENT OF CTR FUNDS. 4.1 Amounts Available. The total amount of CTR Funds available to reimburse the City during the Agreement period shall be calculated annually according to the method described in Exhibit B: Methodoloz%,for Allocating CTR Funds,which by reference is made a par of this Agreement. 4.2 Quarterly Invoice and Progress Report. The City shall submit to the County an invoice and progress report within thirty days of the end of each quarter which shall, in conformance with all requirements imposed by the State, set forth the costs for which the City seeks 3 reimbursement. An invoice for the final quarter shall be submitted to the County within twenty days of the end of the quarter and shall not be paid if it is untimely submitted. The County shall provide the City with instructions for the submittal of invoices and quarterh progress reports consistent with the requirements imposed on the County by the State. The City's invoice shall reflect the cost of actual work performed and costs incurred in performing the Statement of Word provided that the invoices and payments for the first seven quarters shall not exceed eighty-seven and a half(87.5) percent of the total allocation to the Cm' for ' the biennium 43 County Processing of City Invoices. Upon receipt of an invoice and progress report, the County shall forward same to the State. if an invoice and report are not provided by the City within thirty days of the end of a quarter, the County shall hold same for forwarding to the State with the subsequent quarter's. An invoice for the final quarter shall be submitted to the County within twenty days of the end of the quarter and shall not be paid if it is untimely submitted. 4.4 State Processing of City Invoices. The State shall be solely responsible for determining satisfactory performance of the Statement of Work by the City and determining the extent to which costs are to be reimbursed. Upon receipt of a quarter,reimbursement from the State, the County shall remit to the City a warrant for the amount, received from the State. 4.5 Under no cirmunstances shall the County be required by this Agreement to pay any of its own fiords to the City. SECTION 5.0 REPORTING. 5.1 Quarterly Reports. When requesting payment each quarter, the City (or its designee) shall submit a progress report to the County in accordance with the Statement of Work, attached. The County shall forward the City's quarterly progress reports to the State. 5.2 Auditing of Records, Documents, and Reports. The State Auditor, the County, or the City and any of their representatives shall have full access to and the right to examine during normal business hours and as often as the State Auditor may deem necessary, all the records ofthe City and the County with respect to all matters covered in this Agreement. Each Pam' to the Agreement shall have similar access and rights with respect to the records of the other Party. Such representatives shall be permitted to audit and make excerpts or transcripts from such records and to make audits of all contracts. invoices, materials, payrolls, and records of matters covered by this Agreement. Such rights last for three (3) years from the date final payment is made hereunder. 4 SECTION 6.0 RECAPTURE AND NONCOMPLIANCE PROVISIONS. Upon written notice that the State has determined to suspend or terminate reimbursment of the City, the County shall have no obligation to continue processing City invoices. In the event the State demands a refund of any amount paid to the County for distribution to the City, the City agrees to refund said amount within thirty days directly to the State or through the County as may be required by the State. The City further agrees to defend, indemnify and hold harmless the County against any and all claims, demands, lawsuits or liability of any kind which may be asserted against the County by the State for refired of amounts paid to the City and any costs incurred by the State in recovering same, including but not limited to attorney's fees. The provisions of this section shall survive the expiration or termination of this Agreement with respect to any event occurring prior to expiration or termination. SECTION 7.0 REDUCTION IN FUNDS. If there is a reduction of CTR Funds by the State, and if such funds are the basis of this Agreement,the County and the City agree to reduce their respective statements of work or budgets under this Agreement and/or the Parties may terminate the Agreement, as provided in Section 12.4. SECTION 8.0 NONDISCREMINATION. 8.1 General Nondiscrimination Statement: There shall be no illegal discrimination against any employee who is paid with CTR Funds or against any applicant for such employment because of race, religion, color, sex, marital status, creed, national origin, age, Vietnam era/di-abled veterans status, or the presence of any sensory, mental, or physical disability. This provision shall include but not be limited to the following: employment, upgrading, demotion, transfer, recruitment, advertising, layoff or termination, rates of pay or other forms of compensation, and selection for training. 8.2 Americans with Disabilities Act (ADA) of 1990, Public law 101-336: The City must comply with the ADA, which provides comprehensive civil rights protection to individuals with disabilities in the areas of employment, public accommodations, state and local government services, and telecommunications. SECTION 9.0 WAIVER OF DEFAULT. Waiver of any default shall not be deemed to be a waiver of any subsequent default. Waiver of breach of any provision of this Agreement shall not be deemed to be a waiver of any other or subsequent breach and shall not be construed to be a modification of the terms of this Agreement unless stated to be such in writing, signed by an authorized representative of the entity mating such waiver. 5 SECTION 10.0 SEVER4BILTT'Y. In the event any term or condition of the Agreement or application thereof to any person or circumstances is held invalid, such invalidity shall not affect other terms, condition or application. To this end the terms and conditions of this agreement are declared severable. SECTION 11.0 INTDEMT'Il''ICATION AND HOLD HARI•nXSS. 11.1 No Joint Venture; Indemnification: It is understood and agreed that this agreement is solely for the benefit of the Parties hereto and gives no right to any other entity. No joint venture or partnership is formed as a result of this Agreement. Each party shall defend, indemnify and hold harmless the other party, its officers, officials and employees from all claims, demands, suits, actions and liability of any kind which arise out of; are connected with or result from any errors, omissions or negligent acts of the other party, its contractors, employees or agents in the performance of the work of this Agreement; provided, however, that if any such liability is the result of the concurrent negligence of the parties, the obligations under this section shall be allocated in proportion to the percentage of negligence attributed to each party. Each party agrees that its obligations under this provision extend to any claim, demand or cause of action brought by its own employees. The foregoing indemnity is specifically and expressly intended to constitute a waiver of the indemnifying's immunity under Washington's Industrial Insurance Act, RCW Title 51, as respects the other party o4y, and only to the extent necessary to provide the indemnified patty with a full and complete indemnification of claims made by the indemn fying party's employees. The parties acimowledge that these provisions were specifically negotiated and agreed upon by them 11.2 State's Nonliability to Subcontractors: The City agrees that the WSDOT and the State of Washington are not liable for damages or claims arising from its performance or activities under this agreement. The City further agrees to include in each contract for services or activities utilizing fiords provided in whole or in part by this Agreement a provision in which the contractor agrees that the WSDOT and the State are not liable for damage or claims from damages arising from any subcontractor's performance or activities under the contract. 11.3 Survival of Indemnification: The provisions of this section shall survive the expiration or termination of this Agreement with respect to any event occurring prior to expiration or termination SECTION 12.0 TERM, DURATION, MODIFICATION AINTD TERMINATION. 12.1 Term of Agreement: This Agreement shall be effective July 1, 1997. The expiration date for purposes of performing substantive work and for incurring costs hereunder shall be June 30, 1999, and for final accounting purposes shall be August 31, 1999, unless terminated earlier or extended pursuant to the provisions hereof 6 12.2 Duration. This Agreement shall automatically expire on June 30 of odd-numbered years unless the Parties take action to extend it as provided in Subsection 12 3. The Parties may extend the agreement for an additional two (2) year period by executing an agreement substantially in the form of Exhibit C: Format for Agreement to Extend and/or ModiR, the CTR Interlocal Agreement(RA). 123 Modification. This Agreement may be amended or otherwise altered only by HTitten agreement of the County Executive or his/her designee and an authorized representative of the City. Exhibit C: Format for Agreement to Extend and/or ModiA,the CTR (ILA I may be used for such action. 12.4 Termination. (a) Each Party may terminate its obligations under this Agreement, upon thirty (30) days advance written notice of the termination to the other Party. (b) If at any time during the Agreement period the State acts to terminate,reduce, modify, or withhold the CTR Funds allotted to the County, then either Party may terminate this Agreement upon giving thirty (30) days written notice to the other Party. The County shall have the authority and responsibility to ensure that upon termination of this Agreement. any remaining CTR Funds are made available in the manner described in Section 4.0 of this Agreement or returned to the State. 12.5 Non-Appropriation of Funds: If sufficient funds are not appropriated or allocated for payment under an extension to this Agreement for any future biennium, the County wi71 not be obligated to make any payments after the end of the then current biennium and this Agreement will ex?ire. SECTION 13. CHANGE IN STATUS 13.1 Addition of Cities for Purposes of Allocation of Funds. Any city within the County that is not Party to an Agreement with the County for the distribution of CTR funds that (a) becomes sffected by Chapter 70.94 RCW and is required to implement a CTR plan and (b) enters into an Agreement with the County shall be allocated CTR Funds beginning with the next annual allocation period provided for in Section 4.1 of this Agreement. 13.2 Change in Status. If the City finds it is no longer affected by Chapter 70.94 RCW and is therefore no longer required to implement a CTR plan, it may continue to be a Party to this Agreement for purposes of participating in the CTR Coordinating Committee for information sharing, but shall not receive CTR Funds effective with the quarter following the change in status. 7 IN WITNESS WHEREOF, the Parties hereto have executed this Agreement by having their authorized representatives affix their signatures below. Approved as to form THE CITY OF By By Assistant City Attorney Director of Date: Approved as to form KING COUNTY: By By Deputy Prosecuting Attorney King County Executive Date: EXHIBIT A Statement of Work Attachment I -Format for Quarterly Reports Attachment 2-Memorandum of Understanding EXHIBIT B: Methodology for Allocating Funds EXHIBIT C: Format for Agreement to Extend and/or Modify the CTR ILA 8 EA"HIBrr A: STATEMENT OF WORK Implementation of Commute Trip Reduction Plans and Programs BACKGROUND: The 1991 Session of the Washington State Legislature found that automobile traffic in Washington's metropolitan areas is the major source of emissions of air contaminants and that increasing automobile traffic is aggravating traffic congestion. Further,the Legislature found that increasing automobile traffic is a major factor in increasing consumption of gasoline. Reducing the number of commute trips to work via single-occupant vehicles is an effective way of reducing vehiclesrelated air pollution,traffic congestion, and energy use. To address these problems, the Commute Trip Reduction (CTR) Act was enacted by the 1991 Legislature and signed by the Governor. This Act required cities and counties containing "major employers" in the eight counties experiencing the greatest vehicle-related air pollution, gasoline consumption and congestion problems to develop plans and programs to reduce single-occupant vehicle commute trips. A ninth county became affected by the Act in 1996. These counties and cities established and implemented comanrte trip reduction plans for all major employers within their jurisdiction. The comumie trip reduction plans were developed in cooperation with local transit agencies, regional transportation planning organizations, and major employers. Additionally, the trip reduction plans are required to be consistent with the guidelines established by the State's Commute Trip Reduction Task Force, King County and the sixteen cities affected by the CTR law(Algona, Auburn, Bellevue, Bothell, Des Moines, Enumclaw, Federal Way, Issaquah, Kent, Kirkland, Mercer Lslmd, Redmond, Renton, SeaTac, Seattle, and Tukwila) entered into the 1991-1993 CTR Interlocal Agreement (ILA) for the purposes of allocating State CTR grant funds for the initial development and implementation of CTR program Under this agreement the County and the cities passed local CTR ordinances, identified potentially affected employers, established comanite trip reduction zones and zone base year values and progress year goals, and conducted review of local parking policies as they related to CTR Beginning with the 1993-1995 allocation, the cities of Burien and Woodinville were added to the list of affected CTR cities in King County and began receiving their proportionate share of CTR funding. In the 1995-1997 biennium,the City of Shoreline was added, with proportionate allocation occurring in the second year ofthe biennium This CTR ILA involves on-going program administration, including, but not limited to: employer initial program descriptions, employer annual reports, and employee survey results, where and when available. It is intended that this CTR ILA will be administratively renewed each biennium with the scope of work modified as is necessary to accommodate changes in State technical assistance fund requirements or local conditions. 9 CITY TASKS: 1.0 General Tasks: The City or its designee will: 1.1 Maintain and administer a CTR ordinance and plan for affected employers in the incorporated area of the City according to the provisions ofRCW 70.94.521-551. 1.2 The City will provide WSDOT with a public hearing notice and copies of any proposed amendments to its CTR ordinance, plan, and/or administrative guidelines within the first week of the public review period, and final copies of such action within one(1)month of adoption. 1.3 Provide a written summary of the review of parking policies and ordinances as the relate to major worksites and any revisions necessary to promote the intent of the CTR law, ordinance and plan to the WSDOT prior to submitting to the County any invoices for reimbursement under this agreement, if a written summary has not been provided to the State as required in earlier agreements. 1.4 Establish and maintain books, records, documents, and other evidence and accounting procedures and practices, sufficient to reflect properly all direct and indirect costs of whatever nature claimed to have been incurred and anticipated to be incurred solely for the performance of this Agreement. To facilitate the administration of the work described in this agreement, separate accounts shall be established and maintained within the City's existing accounting system or set up independently. Such accounts are referred to herein collectively as the "CTR Account." All costs charged to the CTR Account, including any approved services contributed by the City or others shall be supported by properly executed payrolls, time records, invoices, contracts, vouchers, or products e-%ridencing in proper detail the nature and propriety of the charges. 1.5 Maintain an appeals process consistent with RCW 70.94.534(6)procedures identified in the Commute Try Reduction Task Force Guidelines whereby employers in the incorporated City may obtain a waiver or modification of the CTR requirements, nicluding establishment of ahemative SOV/VMT goals, if they would be unable to meet the requirements of a CTR plan or ordinance as a result of special characteristics of their business or location. 2.0. Surveying: The City or its designee will provide WSDOT or its designee any and all updated or new employer, jurisdiction, zone, or City CTR survey database information. CTR 10 survey database information must be submitted in WSDOT-specified format at least three weeks prior to submitting survey forms for processing. 3.0 Annual Progress Reporting: 3.1 The quarterly reports submitted as described below shall constitute fulfillment of the City's annual reporting requirements of RCW 70.94.527(8). 3.2 Employer Annual Progress Reporting The City or its designee will: 1. Use the state-provided "Program Description & Employer Annual Report: form or submit the City form(s) for review by the WSDOT for data compatibility and consistency with the state "Program Description & Employer Annual Report"form. 2. Submit to the WSDOT, as part of the quarterly report identified in Attachment 1, one (1) hard copy of each "Program Description & Employer Annual Report"approved by the City during the previous quarter. 4.0 Quarterly Reporting. The City or its designee will submit quarterly reports to the County with the invoice vouchers, in the format provided in Attachment 1, that adequately and accurately assess the progress made by the City in implementing RCW 70.94.521-551 within thirty (30) days of the end of each quarter for the first seven quarters and within twenty (20) days ofthe end of the final quarter. 5.0 Memorandum of Understanding. The City or its designee will pursue in good faith a memorandum of understanding with the County in substantially the same form as Attachment 2 regarding the provision to WSDOT of data and documents that will enhance the WSDOTs capacity to analyze and evaluate the effectiveness of the CTR legislation. Notwithstanding any other provision hereof;the tasks and activities specified in such Memorandum of Understanding shall not constitute additional City tasks under this Exhibit A - Statement of Work, and neither the inability of the Parties hereto to reach agreement with respect to such Memorandum of Understanding nor the Cites failure to perform any of the tasks and activities specified in sucb Memorandum of Understanding shall constitute a default or breach of this Interlocal Agreement. COUNTY TASKS: 1.0 Liaison: Serve as a liaison between WSDOT and cities, towns, transit agencies, and regional transportation planning organizations for the purposes of RCW 70.94.521-551. 2.0 Distribute the WSDOT-provided State Program Description &Employer Annual Report Form to local jurisdictions within the county implementing CTR plans and ordinances, as requested 11 Attachment 1 Quarterly Report Format • Name of the City Submitting Report • Submitted on behalf of following City • Contact Person Name • Contact Person Phone and Fax Number 1. Past Quarter's CTR events and projects: A detailed summary of implementation assistance provided to affected employers within the jurisdictions such as site visits, program review, training, networiong opportunities, products K services,publications and promotion materials. 2. Next Quarter's CTR events and projects: A description of scheduled events, projects, and implementation assistance to be provided to affected employers within the jurisdiction during the next quarter such as site visits, program review, training, networlang opportunities, products R services, publications and promotion materials 3. Expenditures This Quarter List actual total expenditures on the last line of the following table. Estimate expenditures by category as indicated. This Quarter CTR Fund Categories CTR Fund Expenditures Expenditures Year To Date Administration(Iia cow staff salaries, S $ bmdns.travel aDd uamm ) Public Information, Awareness,and (S $ Recognition Employer Services funded through S $ state CTR funds(GRH, Shuttles, Van 1,etc.) Emplover Assistance/Promotion S S Employer Training S Is Other S is Other Is Total S S 4. List of state certified CTR Program Reviewers Ex) John Who City of X CTR Office PO Box 1234 X, WA 98000 12 5. Jurisdiction (s) Contact Names,Address, and Phone Numbers Jurisdiction A John Who City of X PO Box 1234 X, WA 98000 Phone(206) 999-9999 6. Additions, Deletions, and Changes to the List of Affected Employers S Worksites in the Jurisdiction. City of X JCODE • E30100 • Employer Site Address • Site City, State Zipcode • ETC Contact Name • Address • City, State Zipcode • ETC's Phone • ETC's Fax • Affected Date • Unaffected Date(if applicable) • Annual Report Date • Zone Code Total Number of Affected Worksites in Jurisdiction Number of Affected lncrease/Decrease Affected Jurisdiction Worksites From Last Quarter Jurisdiction A 15 +1 S. List of Sites Which Have Applied for Exemptions or Goal Modifications Employer Name Request Granted or Denied Effective Date 9. Employer Annual Reports Approved During the Quarter Attach one hard copy of any employer annual reports approved by the jurisdiction during the quarter. 13 Attachment 2 Memorandum of Understanding Between King County and the City of Kent Regarding Commute Trip Reduction Program Implementation For the Period July 1, 1997—July 30, 1999 The Memorandum of Understanding establishes the intent of King County and the City of Kent to assist the Washington State Department of Transportation (WSDOT) and the Commute Trip Reduction Task Force in their evaluation of the effectiveness of CTR legislation. The City of Kent, by way of this memorandum, expresses its intent to: 1. Submit to the County within twenty (20) days after June 30, 1998 and fifteen (15) days after June 30, 1999, a report detailing costs not previously reported that were incurred b,, the City in implementing RCW 70.94.521-551 and providing further detail on costs previously reported Costs shall be reported in a format approved by the WSDOT. 2. Submit any requests for waivers or modifications, including requests for goal modifications, to the WSDOT technical assistance team for review and comment within five (5) days of receiving such requests. The City shall not approve or deny any such requests until five(5)days after receipt by the WSDOT. 3. Return all survey report forms to the employer(s) within the City within thirty (30) days of receipt from the State, and return all processed CTR Employee Questionnaires unaltered to the employers) within the City within ninety (90) days of receipt from the State. 14 EXMTr B: N ETHODOLOGY FOR ALLOCATING CTR FUNDS This exhibit describes the methodology for allocating CTR funds among the County and the affected CTR cities within the county that are required to plan and implement a CTR plan by ROW 70.94.521.-.551,including the City that is Parry to this Agreement. 1. Definition: For purposes of this exhibit, the following definition shall apply in addition to those in Section 2 of this Agreement: ' "Actual Affected Empiover Worksites" means a worksite of an affected employer for which the employer has, within the twelve month period ending June 30, (1) submitted a program description or received an extension of this deadline for this action if authorized by local ordinance, (2) submitted an annual or other report or requested an extension of the deadline for submitting such reports, (3)been exempted or otherwise excused from submitting annual or other reports but is still required to implement an employer CTR program by locally adopted ordinance, (4) been exempted from all or a portion of CTR program requirements, or(5)been identified as being an affected work site on as of June 30. 2. Annual Allocation: CTR Funds will be allocated annually based on the State's fiscal year (July 1 to June 30). 3. Amount to Be Allocated for Each Allocation Period. The amount to be allocated annually shall be (a) one-half of the total biennial amount of State CTR funds or (b), in the event that the State/County contract specifies other schedules for disbursements, the total amount to be disbursed to the County by the State for the State's fiscal year. 4. Allocation Method. State CTR funds shall be allocated annually. The allocation shall be in direct proportion to the number of actual affected employer worksites compared to the total number of affected employer worksites within the entire county effective March 31 of each year. The City shall submit a listing of actual affected emplover worksites to the County by April 5 of each year for purposes of calculating the allocation. 15 Ea'HIBIT C: FORMAT FOR AGREENIEN7 TO EX-MND AND/OR NIODrn' THE CTR INTERLOCAL AGREEMENT This general format shall be followed to carry out the provisions of Section 12.2 to extend the agreement and Section 12.3 to modify the agreement. The Honorable Mayor City of Address RE: Renewal/Modification of Commute Trip Reduction Act Interlocal Agreement Dear Mayor The Commute Trip Reduction Act (CTR) Interlocal Agreement (ILA), which allocates State CTR funds to local CTR .jurisdictions and describes required implementation activities, provides in ... (select one of the following paragraphs or combine as appropriate) . . . ... Section 12.2 that the Ii.A shall "automatically expire on June 30 of odd-numbered years unless the Parties to the Agreement initiate action to extend the Agreement for a two (2)year period." I propose that the Agreement be extended for a two year period beginning June 30, ,with modifications to Extublt A: Statement of W ork as attached. ... Section 12.3 that the ILA "may be amended, altered, or extended only by written agreement of the County Executive and authorized representative of the City." I propose that the ILA be amended as follows(or, as in Attachment). Please indicate your concurrence with this proposal by suing where indicated below and returning this to me. Sincerely, Name King County Executive I concur with the proposed action. Mayor, City of Date 16 Kent City Council Meeting Date October 21, 997 Category Bids 1. SUBJECT: GUIBERSON RESERVOIR SEISMIC UPGRADE 2 . SUMMARY STATEMENT: The bid opening for this project was held on October 9th with 4 bids received. The low bid was submitted by RDS Construction, Inc. in the amount of $61, 359. 00. The Engineer's estimate was $67, 657.80. A recent seismic study of all water facilities to withstand earthqual concluded that the Guiberson Reservoir was vulner- able in area. As a result of that study, reinforcement on the reservoir was done. The Public Works Director recommends that the Guiberson Reservoir Seismic Upgrade contract be awarded to RDS Construction, Inc. 3 . EXHIBITS: Public Works Director memorandum 4 . RECOMMENDED BY: Public Works Director (Committee, Staff, Examiner, Commission, etc. ) 5. UNBUDGETED FISCAL/PERSONNEL IMPACT: NO X YES 6. EXPENDITURE REQUIRED: $61, 359. 00 SOURCE OF FUNDS: Guiberson Reservoir Project Fund (W21) 7. CITY COUNCIL ACTION: Councilmember t moves, Councilmember seconds that the Guiberson Reservoir Seismic Upgrade contract be awarded to RDS Construction, Inc. for the bid amount of $61, 359 . 00. DISCUSSION• _ ACTION: Council Agenda Item No. 5A DEPARTMENT OF PUBLIC WORKS October 14, 1997 TO: Mavor &-City Council tee':>. FROM: Don Wickstrom�W RE: Guiberson Reservoir Seismic Upgrade Bid opening for this project was held on October I Oth with 4 bids received. The low bid was submitted by RDS Construction, Inc. in the amount of $61,359.00. The Engineer's estimate was $67,657.80. It is the recommendation of the Public Works Director that the Guiberson Reservoir Seismic Upgrade contract be awarded to RDS Construction, Inc. for the bid amount _. of $61,359.00. BID SUMMARY RDS Construction, Inc. 61 ,359.00 Seaboard Construction, Inc. 89,623.24 Diamaco, Inc. 100,998.00 EM Castillo Construction 139,458.69 Engineer's Estimate 67,657.80 MOTION: Councilmember moves, Councilmember seconds that the Guiberson Reservoir Seismic Upgrade contract be awarded to RDS Construction, Inc. for the bid amount of $61,359.00. V.<n' CONTINT N:CATIONS A. ti L R E P O R T S f � iY,( ILL V� Vv l '\ A. COUNCIL PRESIDENT - , a B. OPERATIONS COMMITTEE --tr` C. PUBLIC WORKS COMMITTEE D. PLANNING COMMITTEE �� !�'% ✓ zlnl E. PUBLIC SAFETY COMMITTEE F. PARKS COMMITTEE G. ADMINISTRATIVE REPORTS EXECUTIVE SESSION: (1) Pending Litigation (2) Property Acquisition 1 CITY OF KENT PARKS COMMITTEE MEETING OCTOBER 7, 1997 Council Present: Chair Judy Woods, Connie Epperly, Jon Johnson Staff Present: Roger Lubovich, John Hodgson, Lori Flemm, Cheryl Fraser, Dennis Higashiyama, Lori Hogan, Julie Stangle, D. Carter, Tamara Sevigny, May Miller, Justin McCarter, Chad McCarter, Teri Petrole-Stump Others Present: Maureen McCaughan, Sara Clilmer, Sandra Phillips, Kendrick Dreier, Ian Allard, Kimi Monroe, Barry Fretwell, Nicole Robbins, Jack Kamel, Mathew Erich, Cheryl Remininton, Shawn Sharper, Sean Griffin - Kristin Dearborn, Nocholas Wentworth, Jose Morales, Brain Meyer, Horizon Elementary, Lee Jones, Corinne Carlsen, David Hobbs, Chris Janvani, Clarissa Thorbjornsen, Tom Robinson, Ty Morrell, Keith Henry, Ben Phillips, Diane McCartin, Devin McCartin 1. Accept 1998 City Art Plan Budget and the 1998-2002 Five-Year Art Plan: Jim McDonald made the annual request for City Art Plan Budget and the _. proposed Five Year Art Plan. 1998 Budget breakdown: ♦ East Hill Park and Garrison Creek Park: a professional artist, staff and a landscape architect will work together to design and create an art piece at the new expansion area of East Hill Park and Garrison Park. ♦ Refurbish two major works: "Sentinel Kent' at the entrance of the Kent Library and relocation of the "EARTH" sign at West Fenwick Park. ♦ Reclamation Art Project: Kent youth will work on two projects scheduled for Linda Heights Park of West Hill and the second project will be scheduled at a later date. ♦ Collections Documentation & Ed/Prom Material: a Graphic artist would be hired to create printed material that would be used to educate the community, document the collection, and promote it. ♦ Portable Art Collection Purchases will continue. ♦ Other Expenses: insurance, maintenance and supplies, design fees, honorariums, professional services, postage and printing, and administration. Parks Committee Minutes October 7, 1997 Page 2 Five Year Art Plan: ♦ 5-year millennium interpretative theme for art project ♦ Continue Reclamation Art Projects and support the Performing Arts Center plan. Councilmember Johnson moved to accept the 1998 Art Plan Budget and the 1998 - 2001 Five-Year City Art Plan. Councilmember Epperly seconded; motion carried 3-0. 2. Accept and Amend the Playground Safety Equipment for Russell Road Park. Due to the decaying wood playground equipment at Russell Road Park, staff applied for and received a Youth Sports Facility Grant from King County to purchase new equipment through the Playground Safety Equipment Project. Meridian Kiwanis Club volunteers plan to assist in the installation sometime the summer of 1998. Council acknowledged Kiwanis Club for their crucial support of parks and recreation. Councilmember Epperly moved to accept the Youth Sports Facilities Grant and amend the Playground Safety Equipment for Russell Road Park play equipment. Jon Johnson seconded; motion carried 3-0. 3. Riverbend Golf Course Fee Increase: The Riverbend Golf Course Advisory Board evaluated a number of golf courses in the area and determined that the Riverbend 18-hole was underpriced for the same amenities. The Advisory Board recommended raising the fees at the golf course. The increase would be an average of $3.00 and would be in effect from April - October, commencing in April 1998. The other option is to raise 9-hole weekday rates. Council requested this issue be held until the new contract for operation of the Riverbend Golf Course has been established in November. 4. Target Issue: Youth/Teen Services: Coordinators from the Youth/Teen Program explained the impact the youth/teen programs have on teens in the Kent community. Tamara Sevigny explained Club Accelerate which is an after school program located at eight different schools sites, geared toward elementary grades 1 -6. This program encourages recreation, creativity, direction from caring and supportive staff and a safe place for kids to go after school. Each day - coordinators can be greeted by anywhere from 40-90 kids after school. Parks Committee Minutes October 7, 1997 Page 3 D' Carter explained the Kent Pro Club which is also an after school program which takes place in two apartment complexes, Washington Park Apartments and James Street Crossing Apartments. It is for the teens that can't get to a recreation center. It encourages positive recreation opportunities by giving 13-17 year olds a fun, creative and healthy way to spend their time, while staff guides, coaches and supports them. Julie Stangle described some of the trips the teens have gone on in the Outdoor Program from camping in the San Juan Islands to hiking Mt. Rainier. She explained the benefits are not only physical, but mental and emotional. One of the most important aspects the youth learn is to get along and work with each other. Julie also described the mobile recreation bus, which is a 38' mobile recreation bus providing youth and teens the opportunity to experience hands on sue of computer technology, as well as traditional park and recreation playground activities. Many of these teens would not have an opportunity to touch a computer or participate in recreation programs. Dennis Higashiyama defined the Youth/Teen employment program as a great - opportunity for teens to practice interview skills, and to learn how to complete employment applications, conduct job shadows, and write resumes. It also offers an opportunity for local teens and business owners to establish a relationship. It also opens the door for positions now or sometime in the future. Chief Crawford represented the Drinking Driver Task Force. He has been working with many of Kent's youth for the past ten years and he enjoys working one night a month at Lighthouse. He shared first-hand knowledge of the benefits these programs provide the youth of Kent. Council Chair Judy Woods praised the youth teen coordinators and stressed the importance of having these teen programs for the youth of Kent. She asked for any public comment. Horizon.Elementary Principal Meyer recounted the outstanding partnership the school has with the Youth/Teen Program staff, and what a positive influence they have had on their kids 1-6 graders. Teens who participate in the programs shared that the programs give them a chance to meet other kids and to go places they've never been before. They enjoy learning the buddy system and how to take care of themselves. They commented on what a positive influence the programs and staff have had on their lives. Meeting adjourned 5:25 p.m. PUBLIC WORKS COMMITTEE October 15, 1997 PRESENT: Tim Clark Tom Brubaker Connie Epperly Don Wickstrom Christi Houser ABSENT: Judy Woods Watershed Action Grant Wickstrom explained that this is a $2,570 grant we received from King County Natural Resources to be used to help establish the Green River Arboretum. The students of the Kent School District will be helping with this landscaping program. In response to Clark, Wickstrom noted that this is part of the nursery that we are building at the Green River Natural Resource Enhancement facility. Committee unanimously recommended that staff accept the grant of$2,570 and establish a budget for same. West Valley Highway Storm Drainage Repair - Accent as Complete Wickstrom stated that this project is before the Committee because it went over 10% of the final contract amount and as such needs Committee concurrence before acceptance of full Council. This project ran over 13% primarily due to bad soil conditions. He said there is no problem with funding this overage. This project will relieve the West Valley Highway flooding south of the river that we continually get. Committee unanimously recommended that the West Valley Storm Drainage project be accepted as complete. Wickstrom noted that for the last several years there has been flooding from rainfall between Smith Brothers Dairy and the State Maintenance Yard . The farmers built a pipe that eventually collapsed and we replaced it to avoid loosing our road. We will still have flooding when the Green River backs up but we won't have the every day rain type of flooding. Willis St - Street Vacation Wickstrom stated that we have received an official petition for a street vacation and this is a request to put this item on the Council agenda for formal action to set the Public Hearing. Committee unanimously recommended adoption of a resolution setting a hearing date for the Willis St. street vacation. 1 Kent Springs Customer Removal Watermain Charge in Lieu of Assessment Wickstrom explained that on the main we built on 152nd south of Kent Kangley we had a pocket of City of Kent water customers even though it's situated in Water District 4111 - they are all tied into our transmission main - we put in a distribution system there; turned it over to WD 9111 and then as properties that weren't City customers connect to that system, we will want reimbursement. Wickstrom stated that we spent about $261,000 for those properties that were not previous customers and can now connect-we will recoup about $110,000. Of the properties that were large customers and could develop into smaller parcels, we expect to get another $57,000 in the near term. Over the long haul, the way their houses set, they may eventually re-develop and we should get reimbursement from that. He said that in the next 10 years we should be getting $168,000 back on our,investment. In response to Clark, Wickstrom explained that because this is within Water District #111, we turn the mains over to them, they will now be the District's watermains unless people come in want to connect-the District will get a release from us after they have paid the Charge in Lieu of Assessment and then they will be allowed to connect. These are all properties that were off our transmission main dating back to the 1930's. Committee unanimously recommended authorization for the Public Works Department to establish a Charge in Lieu of Assessment for the total amount of$261,829.47 distributed to the affected properties as calculated. Commute Trip Reduction (CTR) Interlocal Agreement Wickstrom said that we receive a certain amount of funds from the state to implement commute trip reduction. He said that every biennium the money is allocated from the state to the county and then to us. This is an agreement that is re-executed every two years between the City and County and this is the process by which we receive $72,000 for the first year. He stated that these funds are deposited into our Commute Trip Reduction fund and can only be used for that purpose. Committee unanimously recommended execution of the CTR Interlocal Agreement. Meeting adjourned: 3:45 p.m. 2