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City Council Meeting - Council - Agenda - 06/01/1999
inn III �I, I II � II IIII �I CI"ty <ent City Councii■ Meetiong II Age,r da CITY OF BIT II d II Mayor Jirr White counc/m bers Leona Orr, P msident San dy dy Amodt onnie Epperly Tom Brotherton udY Woods Tim Clark lico Yingling g 9 June 1199 Office of the Clerk I CITY OF SUMMARY AGENDA KENT CITY COUNCIL MEETING .a�,Cz,. 9 June 1, 1999 Mayor Jim White Council chambers 7 : 00 p.m. MAYOR: Jim White COUNCILMEMBERS : Leona Orr, President Sandy Amodt Tom Brotherton Tim Clark Connie Epperly Judy Woods Rico Yingling 1 . CALL TO ORDER/FLAG SALUTE 2 . ROLL CALL 3 . CHANGES TO AGENDA A. FROM COUNCIL, ADMINISTRATION, OR STAFF B. FROM THE PUBLIC 4 . PUBLIC COMMUNICATIONS A. Employee of the Month 5 . PUBLIC HEARINGS None 6 . CONSENT CALENDAR A. Approval of Minutes B. Approval of Bills C. Performing Arts Center Executive Director Funding Request - Authorization D. Chestnut Ridge Park Master Plan - Approval E. Chestnut Ridge Park Naming - Approval F. Mill Creek Trail Renovation IAC Grant Application - Resolution - 1541 G. Downtown Planter Box Donation - Acceptance H. Street Vacation, 32nd Avenue South - Resolution Setting Hearing Date - /54�a I . 1998 Asphalt Overlays - Accept as Complete J. Community Access Studio Agreement with TCI - Limited Extension of Time - Authorization K. Gambling Ordinance- 3q(-0 L. System Development Fee, Meridian Stormwater Capital Improvement - Second Amended Ordinance -3 116/ M. Horseshoe Acres Annexation - Set Hearing Date 7 . OTHER BUSINESS A. Resolution Authorizing Public Development Authority Bank Loan- 15413 8 . BIDS A. Traffic Signal Interconnect Installation on Kent- Kangley Road (continued next page) SUMMARY AGENDA CONTINUED 9 . REPORTS FROM STANDING COMMITTEES AND STAFF 10 . REPORTS FROM SPECIAL COMMITTEES 11 . CONTINUED COMMUNICATIONS 12 EXECUTIVE SESSION A. Labor Negotiations 13 . 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 Clerk' s Office in advance at (253) 856-5725 . For TDD relay service call the Washington Telecommunications Relay Service at 1-800-833-6388 . CHANGES TO THE AGENDA Citizens wishing to address the Council will, at this time, make known the subject of interest, so all may be properly heard. A) FROM COUNCIL, ADMINISTRATION, OR STAFF B) FROM THE PUBLIC PUBLIC COMMUNICATIONS A) Employee of the Month CONSENT CALENDAR 6 . City Council Action: Councilmembere9A4 move®Q, Councilmember�!/A ,o seconded Consent Calendar Items A through M be appEe*e4 . gpprova o F 'O&M flle q»vend,nent -Aor Discussion 'rto Action jY1raft. 6A. Avvroval of Minutes. Approval of the minutes of the regular Council meeting of May 18, 1999 . 6B. Avvroval of Bills. Approval of payment of the bills received through May 15 and paid on May 15, 1999, after auditing by the Operations Committee on May 18, 1999 . Approval of checks issued for vouchers : Date Check Numbers Amount 5/15/99 217031-217233 $1, 178, 512 . 31 5/15/99 217234-217713 2 , 011 , 143 . 77 $3 , 189, 656 . 08 Approval of checks issued for payroll for May 1 through May 15, and paid on May 20 , 1999 : Date Check Numbers Amount 5/20/99 Checks 235668-236036 $ 267, 128 . 17 5/20/99 Advices 79902-80474 823 , 474 . 55 $1, 090 , 602 . 72 Council Agenda Item No. 6 A-B Kent, Washington May 18 , 1999 Regular meeting of the Kent City Council was called to order at 7 : 00 p.m. by Mayor White . Present : Councilmembers Amodt, Brotherton, Clark, Epperly, Orr, Woods, and Yingling, Operations Director/Chief of Staff McFall, City Attorney Lubovich, Police Chief Crawford, Fire Chief Angelo, Planning Director Harris, Public Works Director Wickstrom, Finance Director Miller, and Parks Director Hodgson. Approximately 75 people were at the meeting. CHANGES TO THE Operations Director McFall removed the executive AGENDA session from the agenda, noting that the scheduled item is not ready at this time . PUBLIC Castlereagh Sister City Aareement Sianina COMMUNICATIONS Ceremony. Government Affairs Manager Dena Laurent pointed out the many things Castlereagh and Kent have in common, such as population, size, growth, proximity to airports, seaports, rail lines and highways, and major industries . She noted that their Council consists of 23 members and that they meet monthly. She then showed a video of the official tree planting ceremony which took place on May 17th, and encouraged anyone who is interested in joining the Sister City Association to contact the Mayor' s Office. Mayor Jack Beattie of Castlereagh expressed his thanks and agreed that the two cities have much in common, including the weather. He said Kent and Castlereagh can share information and help each other solve problems, and that the relationship is also about cultural exchange, commercial co- operation, and the establishment of friendly relationships which could flourish for generations yet unborn. British Counsul Michael Upton thanked Mayor White and his colleagues for their wonderful gestures, which is an important building block for Northern Ireland. John Ryan, President of the Chamber of Commerce, welcomed this opportunity to work together and congratulated the cities on their efforts to build relationships . 1 Kent City Council Minutes May 18 , 1999 PUBLIC Mayor Beattie and Mayor White then signed the COMMUNICATIONS proclamation declaring the Sister City relation- ship official . Mayor Beattie introduced the members of the delegation, after which the cities exchanged flags . National Public Works Week Mayor White read a proclamation noting that public works services are an integral part of citizens ' everyday lives, and that the health, safety and comfort of the com- munity depend on these services . He proclaimed the week of May 16-22, 1999, as National Public Works Week in the City of Kent and encouraged all citizens and civic organizations to recognize the contributions public works officials provide . He presented the proclamation to Public Works Director Wickstrom. Clark acknowledged Wickstrom and his department, noting that the City has huge projects under way which move smoothly because of the fine pro- fessionals and staff in the Public Works Department . Introduction of Aflflointees. Mayor White intro- duced George Billings, Carl Hart, Dick Dadey and Gary Tomlinson, his appointees to the Golf Advisory Board. CONSENT ORR MOVED that Consent Calendar Items A through I CALENDAR be approved. Epperly seconded and the motion carried. MINUTES (CONSENT CALENDAR - ITEM 6A) A=roval of Ninutes. APPROVAL of the minutes of the regular Council meeting of May 4 , 1999 . HEALTH & (CONSENT CALENDAR - ITEM 6H) SANITATION Lana Plat. ACCEPTANCE of the Bill of Sale for the Lang Plat submitted by Tom Wells, Lang Plat L.L.C. for continuous operation and maintenance of 1, 080 feet of watermain, 975 feet of sanitary sewer, 897 feet of street improvement and 1, 636 feet of storm sewer and release of bonds after the expiration 2 Kent City Council Minutes May 18, 1999 HEALTH & period, as recommended by the Public Works SANITATION Director. The project is in the vicinity of S .E. 244th Street at 101st P1 . S .E. PUBLIC WORKS (CONSENT CALENDAR - ITEM 6I) SXstem D*y& 23W t gee, Neridian Stormwater Cappital J=royement. ADOPTION of Ordinance No. 3459 relating to technical corrections to Ordinance No. 3453 which adopted the System Development Fee and Drainage Service Fee for the City' s storm utility service area based upon the newly developed Meridian Stormwater Capital Improvement Program for the Soos Creek Basin of the City' s storm utility service area. Ordinance No. 3453 was inadvertently adopted with a techni- cal error referencing connection charges on a per connection basis when those charges should have been based on equivalent service units (ESU' s) . TRANSPORTATION (BIDS - ITEM 8A) S. 277th Street Corridor Auburn Way N. - Kent Kangley Road. The bid opening for this project was held on May llth with seven bids received. The apparent low bid was submitted by M. A. Segale, Inc. in the amount of $4, 436, 286. 07 . The Engineer' s estimate was $5, 593, 895 . 04 . The Public Works Director recommends that the bid be awarded to M. A. Segale . Wickstrom noted that this is a milestone project which will open the 277th corridor. He added that it is scheduled for completion on September 30th. CLARK MOVED that upon the concurrence of the Public Works Director, the Mayor be authorized to award the S . 277th Street Corridor (Auburn Way North to Kent Kangley Road) contract to the most satisfactory responsible bidder. Brotherton seconded and the motion carried. Mayor White thanked the Council, the Public Works Director, the Public Works staff and everyone who was involved in this project . Woods suggested that previous staff be invited to the ribbon cutting ceremony. Orr added her thanks . 3 Kent City Council Minutes May 18, 1999 STREET (PUBLIC HEARINGS - ITEM 5A) VACATIONS S. 188th St. Street Vacation STV-99-2 . Resolution No. 1535 established this date for a public hearing on the application by Pacific Northwest Group A to vacate a portion of 188th Street South, a dedicated, unopened street lying between 80th Avenue South and 80th Place South. The staff report recommends approval with conditions . Planning Director Harris showed a map and described the location of the project . He explained that this was denied without prejudice one year ago, so that the parties could work out differences. Public Works Director Wickstrom explained that this is an open street, a narrow two-lane road which is not up to standards and is maintained by the city. He noted receipt of a letter from the drainage district and recommended that if the vacation is supported by Council, the condition regarding access to the drainage channel be added. Mayor White opened the public hearing. Marisa Lindell, attorney representing the property owner, said if the culvert is not improved, significant flooding will result, and that the property owner is willing to make the improvements, as well as to meet all other conditions staff has identified. She expressed concern about McDowell Northwest ' s 100, 000 lb. crane crossing the culvert, and stated that the requests by the Group Nine Partnership have changed. Lindell provided exhibits showing east-west access routes for use by property owners, and said that S . 188th Street is not needed for access . She stated that the issues being raised by property owners are far outweighed by the greater benefit the City would receive by granting this street vacation. Mike Hubbard, representing Trammell Crow Company, explained that this project started six years ago and that they expected that the development of the parcel would include the street vacation and proceeded on that basis . Hubbard noted that they . had agreed to the original concerns, but that the 4 Kent City Council Minutes May 18, 1999 STREET subsequent objections were not anticipated and due VACATIONS to the cost of the improvements, development is not feasible if the street cannot be vacated. John Rya}, attorney representing Toysmith, spoke in opposition to the vacation, noting that none of the traffic issues were addressed. He said that closing S. 188th will result in gridlock. George Adams, Senior Vice President of McDowell Northwest, voiced concerns regarding notification and objections to the street vacation. He added that extensive set back requirements were required of them when they developed the property twelve years ago, and said the developer has never discussed any of the issues with them as the property owner of the adjoining property. There were no further comments and ORR MOVED to close the public hearing. Woods seconded and the motion carried. CLARK stated that there is not agreement in the neighborhood and MOVED to disapprove the Planning Director' s recommendation to approve with condi- tions the application to vacate a portion of 188th Street South, as referenced in Resolution No. 1535, and included a friendly amendment to make the letters received this evening a part of the record. Woods seconded and the motion carried. (CONSENT CALENDAR - ITEM 6F) Street Vacation 40th Avenue South ADOPTION of Resolution No. 1540 setting July 6, 1999 as the Public Hearing date for the 40th Ave So. street vacation, as recommended by the Public Works/Planning Committee. COMMUNITY (OTHER BUSINESS - ITEM 7A) DEVELOPMENT 2000. CDBG Pass-Throuch Funds. This item was BLOCK GRANT approved by the Public Works and Planning Committee on May 3 , 1999 . The City Council is ✓ being asked to approve the Public Works and Planning Committee ' s recommendations for Year 2000 5 Kent City Council Minutes May 18, 1999 COMMUNITY Community Development Block Grant (CDBG) Funding DEVELOPMENT Levels, as follows : 1) Accept the year 2000 Pass BLOCK GRANT through funds; 2) Allocate the City' s maximum available year 2000 CDBG funds for Public (human) Services ($85, 597) ; 3) Allocate the City' s maximum available of year 2000 funds for Planning and Administration ($75, 139) ; and 4) Authorize the Mayor to sign the County form indicating the City' s desire for distribution of year 2000 funds . CLARK SO MOVED. Brotherton seconded and the motion carried. APPOINTMENTS (CONSENT CALENDAR - ITEM 6G) Golf AdyisoXy Board ts & Amointments. CONFIRMATION of the Mayor' s reappointment of George Billings and Carl Hart to continue serving as members of the Golf Advisory Board. Confirmation of the Mayor' s appointment of Richard E. "Dick" Dadey and Gary Tomlinson to serve as members of the Golf Advisory Board. Mr. Dadey, a Kent resident, is Marketing Manager at Shell Oil Company. He is familiar with golf through his service as Director of Pacific Northwest Golf Association, and his membership in Washington State Golf Association and Western Golf Association. He has also established caddie programs throughout the state . Mr. Tomlinson is a retired Army Officer and is currently a high school Physical Education Teacher. POLICE (CONSENT CALENDAR - ITEM 6E) Motorola $cui2ment P.O. Contract Acreemeat. APPROVAL and AUTHORIZATION for the Mayor to sign a sole source purchase order contract agreement with Motorola for 20 laptop vehicle radio modems and wave soft links that are needed to allow users to transmit and receive data messages from police vehicles via a laptop. Valley Communications advises that the current MDT' s will no longer be supported at the end of this year. The purchase order would be for approximately $60 , 273 plus 6 Kent City Council Minutes May 18, 1999 POLICE delivery charges. This purchase is a part of the project for updating the Police MDT-laptops which was approved through a CIP recently funded with Councilmanic bonds . The Mayor' s signature approval for a sole source vendor has been obtained. FIRE (CONSENT CALENDAR - ITEM 6C) Fire Department Promtic=1 Testing Consultant Services. APPROVAL and AUTHORIZATION for the Mayor to sign a contract for services with Oldani & Associates to assist with the Fire Department promotional testing process . Due to the workload, multiple promotional tests and other operational issues, it is necessary to retain the services of an outside consultant . Costs will exceed $25, 000, and include adver- tising, interviews, test development and administration and specific support costs . It is anticipated that costs for the consulting services will not exceed $50, 000 . PARKS (CONSENT CALENDAR - ITEM 6D) Bast Hill Park Ibmansion Art Proiect. ACCEPTANCE of the artwork created by artist Ellen Sollod for East Hill Park. Sollod has been selected to create artwork in East Hill Park, utilizing the existing hazelnut grove. The plan includes an ADA accessible crushed granite pathway through the existing hazel nut grove and a series of granite spheres, ranging from 12 to 36 inches, forming a serpentine line the length of the path. The project budget of $41, 000 was approved in the 1999 Art Plan. (BIDS - ITEM 8B) Rent Kemorial Park Building Renovation, The Kent Memorial Park building is in excess of 30 years old and does not meet ADA standards . This project was bid to bring it up to ADA standards, plus ten alternates . Staff recommends that the base bid ,ter, and alternates 2 , 6, and 7 be awarded to C.E. Skinner Construction in the amount of $158, 232 . 00 , plus Washington State Sales tax. 7 Kent City Council Minutes May 18, 1999 PARKS WOODS MOVED to enter into an agreement with C.E. Skinner Construction to make necessary ADA improvements to the Kent Memorial Park building in the amount of $158, 232 . 00, plus WSST. Epperly seconded and the motion carried. FINANCE (CONSENT CALENDAR - ITEM 6B) Avvroyal of Bills. APPROVAL of payment of the bills received through April 30 and paid on April 30 after auditing by the Operations Committee on May 4, 1999 . Approval of checks issued for vouchers : Date Check Numbers Amount 4/30/99 216289-216591 $ 889, 624 .60 4/30/99 216592-217030 2 , 911, 167 . 16 $3 , 800, 791 .76 Approval of checks issued for oavroll for April 16 through April 30 , and paid on May 5, 1999 : Date Check Numbers Amount 5/5/99 Checks 235327-235667 $ 262 , 585. 88 5/5/99 Advices 79289-79901 779, 394 . 32 Cancellation ($2 . 892 . 84) $1, 039, 087 .35 REPORTS Council President. Orr thanked the delegation from Castlereagh, Northern Ireland, noting that this Sister City relationship is important to the Council . On behalf of the Council and the citizens of Kent, Orr thanked the department heads and staff for the support they provide Council . Operations Committee. Woods noted that the next meeting will be held at 3 :30 on June 1st . Public Safety Committee. Epperly noted that the next meeting will be held at 5 : 00 on May 25th. 8 Kent City Council Minutes May 18 , 1999 °w✓ REPORTS Administrative Ranorts McFall thanked Orr, Clark and all members of the Council for the support and recognition they have given staff . ADJOURNMENT The meeting adjourned at 8 : 00 p.m. Brenda Jaco e , CMC City Clerk 9 i Kent City Council Meeting Date 14ME 1 A4aV18• 1999 Category Consent Calendar 1 . SUBJECT: PERFORMING ARTS CENTER EXECUTIVE DIRECTOR FUNDING REQUEST - AUTHORIZATION 2 . SUMMARY STATEMENT: Authorization for the City to contribute $40, 000 in 1999 to hire an Executive Director for the Kent Civic and Performing Arts Center, and commit funding up to $90 , 000 for years 2000 and 2001 . The Kent Civic and Performing Arts Center is considering hiring an Executive Director. This person would assist with fund- raising, develop the private/public partnership agreement between the City and the Board, assist in design development of the facility and begin planning for the first year of opera- tion. The Board of Trustees is requesting funds for years 1999 to 2001 from the City of Kent . The funds requested would provide salary and benefits for the position. 3 . EXHIBITS: None 4 . RECOMMENDED BY: Staff & Operations Committee 5/18/99 (Committee, Staff, Examiner, Commission, etc . ) 5 . UNBUDGETED FISCAL/PERSONNEL IMPACT: NO X YES 6 . EXPENDITURE REQUIRED: $40 000 for 1999 already funded SOURCE OF FUNDS : Future funding from CIP 7 . CITY COUNCIL ACTION: Councilmember moves, Councilmember seconds DISCUSSION: ACTION: Council Agenda Item No. 6C WIN Kent City Council Meeting Date :XUA19 1 . °".-.�--;4, 19 9 9 Category Consent Calendar 1 . SUBJECT: CHESTNUT RIDGE PARK MASTER PLAN - APPROVAL 2 . SUMMARY STATEMENT: Approve the master plan proposed for development of the Chestnut Ridge Neighborhood Park. Staff held numerous community meetings in the Chestnut Ridge neighborhood to plan a future park. Staff completed the final master plan and seeks approval of the proposed plan. 3 . EXHIBITS: Proposed master plan will be displayed at the meeting 4 . RECOMMENDED BY: Parks Committee meeting 5/18/99 (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. 6D via Kent City Council Meeting Date _ru»ii 44&49-�' 19 9 9 Category Consent Calendar 1 . SUBJECT: CHESTNUT RIDGE PARK NAMING - APPROVAL 2 . SUMMARY STATEMENT: Approval of Chestnut Ridge Park as the name for the neighborhood park located at 203rd and 100th. Staff met with the community surrounding the proposed park at 203rd and 100th in north Kent to consider names for the future park. The citizens voted unanimously to name the park Chestnut Ridge Park. 3 . EXHIBITS: None 4 . RECOMMENDED BY: Staff and Parks Committee 5/18/99 (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. 6E Kent City Council Meeting Date 7"U4 1. 1999 Category Consent Calendar 1 . SUBJECT: MILL CREEK TRAIL RENOVATION IAC GRANT APPLICATION - RESOLUTION 2 . SUMMARY STATEMENT: Adoption of Resolution No. /_Sty/ authorizing submittal of an application to the Interagency Committee for Outdoor Recreation for Mill Creek Park. The Interagency Committee for Outdoor Recreation (IAC) is accepting applications for acquisition of parklands and renovation of local parks . On April 6 , Council approved 5 applications eligible for statewide grant funding for land acquisition. Staff now requests permission to apply for an additional IAC grant for funding the restoration and rehabilitation of Mill Creek Canyon Trail . 3 . EXHIBITS: Resolution 4 . RECOMMENDED BY: Staff (Committee, Staff, Examiner, Commission, etc . ) 5 . UNBUDGETED FISCAL/PERSONNEL IMPACT: NO YES X 6 . EXPENDITURE REQUIRED: $40 , 000 SOURCE OF FUNDS : IAC Grant 7 . CITY COUNCIL ACTION: Councilmember moves, Councilmember seconds DISCUSSION: ACTION: Council Agenda Item No. 6F RESOLUTION NO. A RESOLUTION of the City Council of the City of Kent, Washington, authorizing application to the Interagency Committee for Outdoor Recreation (IAC) for funding assistance pursuant to the Washington Wildlife and Recreation Program as provided for in Ch. 43.98A RCW. WHEREAS, the City of Kent has approved a comprehensive Park and Recreation Plan for the area that includes the restoration and rehabilitation of Mill Creek Canyon Trail; and WHEREAS, under the provisions of the Washington Wildlife and Recreation Program, state and federal funding assistance has been requested to aid in financing the cost of land and facilities for local public bodies; and WHEREAS, the City of Kent considers it in the best public interest to restore and rehabilitate the trail at Mill Creek Canyon; NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF KENT, WASHINGTON, HEREBY RESOLVES AS FOLLOWS: 1. The Director of Parks and Recreation is authorized to make formal application to IAC for funding assistance. 1 2. Any fund assistance received will be used for the restoration and rehabilitation of Mill Creek Canyon Trail. ;. The City of Kent anticipates that its share of project funding will be derived from Capital Improvement Program funds. 4. The City of Kent acknowledges it must support all non-cash commitments to the local share should they not materialize. 5. The City of Kent acknowledges that any property acquired or facility developed with IAC financial aid must be placed in use as an outdoor recreation facility or habitat conservation area and be retained in such use in perpetuity unless otherwise provided and agreed to by the City of Kent, IAC, and any affected federal agency. 6. This resolution may become part of a formal application to IAC. 7. The City of Kent will provide appropriate opportunity for public comment on this application. Passed at a regular meeting of the City Council of the City of Kent, Washington this day of , 1999. Concurred in by the Mayor of the City of Kent, this day of 1999. JIM WHITE, MAYOR ATTEST: BRENDA JACOBER, CITY CLERK 2 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 , 1999. (SEAL) BRENDA JACOBER, CITY CLERK P lCivi IUtaolution\LAC.res6.doc 3 Kent City Council Meeting Date ;ru N E ( -Me--+B, 1999 Category Consent Calendar 1 . SUBJECT: DOWNTOWN PLANTER BOX DONATION - ACCEPTANCE 2 . SUMMARY STATEMENT: Accept and appropriate two donations of $434 .40 each from the Kent Lions Club and the Soroptomist Club to purchase planter boxes for downtown Kent . The Council recently budgeted funds to begin replacement of the planter boxes in downtown Kent . Since then, the City has received donations from the Kent Lions Club and The Soroptomist Club to purchase two additional planter boxes . 3 . EXHIBITS: None 4 . RECOMMENDED BY: Staff and Parks Committee 5/18/99 (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. 6G Kent City Council Meeting Date MAIFF 1 , $, 1999 Category Consent Calendar 1 . SUBJECT: STREET VACATION, 32ND AVENUE SOUTH - RESOLUTION SETTING HEARING DATE 2 . SUMMARY STATEMENT: As recommended by the Public Works/ Planning Committee, authorization to pass Resolution No. rsga setting July 6th as the Public Hearing date for the 32nd Avenue So. street vacation. 3 . EXHIBITS: Vicinity map and resolution 4 . RECOMMENDED BY: Public Works/Planning 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. 6H RESOLUTION NO. A RESOLUTION of the City of Kent, Washington, regarding the vacation of a portion of 32" Avenue South, a dedicated, unopened street lying generally north of that street's intersection with South 240' Street, and setting the public hearing on the proposed street vacation for July 6, 1999. WHEREAS, a petition, attached as Exhibit A, has been filed by Highline Water District to vacate a portion of 32nd Avenue South, a dedicated, unopened street lying generally north of that street's intersection with South 240`h Street, in the City of Kent, King County, Washington; and WHEREAS, the petition is signed by the owners of at least two-thirds of the property abutting that portion of 32' Avenue South 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 32nd Avenue South shall be held at a regular meeting of the Kent City Council at 7:00 p.m., Tuesday, July 6, 1999, in the Council Chambers of City Hall located at 220 4th Avenue South, Kent, Washington, 98032. '�✓ 1 32nd Avenue South Vacation SECTIONZ. The City Clerk shall give proper notice of the hearing and cause the notice to be posted as provided by state law, Ch. 35.79 RCW. 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 July 6, 1999. Passed at a regular meeting of the City Council of the City of Kent, Washington this day of , 1999. Concurred in by the Mayor of the City of Kent, this day of 1999. 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, on the day of ' 1999. (SEAL) BRENDA JACOBER, CITY CLERK P:1CivillRnolution\STVAC.32n"veSouth.doc 2 32"d Avenue South Vacation I t r of L� ���V COPY RECEIVED APR 2 91999 'dITY OF KENT Kent City ANY APPLICANT: CITY CLERK CITY OF KENT NAME: , Property Management n,, 220 So. 4th Ave. Address: ru' go.sg-7 Kent, WA 98032 MA 9E032-3n7 Attn: ` cmy M,Ca�4Ar Phone: 6�efi)Y�y-o37S STREET AND/OR ALLEY VACATION APPLICATION AND PETITION Dear Mayor and Kent City Council: / We, the undersigned abutting property owners, hereby respectfully request that certain 32,!�P Ave, S, hereby be vacated. (General Location) Legal description (Must Contain Total Square Feet of Area Sought To Be Vacated) .SEE 47TAC*I h LEf.,fL DEsc121P?7VA1 - BRIEF STATEMENT WHY VACATION IS BEING SOUGHT SEE A-7TAGNEA Sufficient proof, copy of deed 'contract etc. supported by King County Tax Rolls shall be submitted for verification of signatures. Without these a "CURRENT" title report shalX be required. When Corporations, Partnerships etc. are being signed for, then proof of individual's authority to sign for' same shall also be submitted. Attach a color coded map of a scale of not less than 1" = 200' of the area sought for vacation. (NOTE) Map must correspond with legal description. ABUTTING PROPERTY OWNERS TAX LOT f SIGNATURES AND ADDRESSES LOT, BLOCK & PLAT/SEC. TWN. RG N/�Nf.WE Alk"K D/f1dKT Q -�T1�f rf t�: �-4cLcs iulbrwey rt-w arne,cr d7arf— ;0 3o f. 2Yosr. o�L..de ,(or-/.z $cocK �[ FAD.1(lwy.Aaa'M/Sf•/G .�T�Ji/A 9¢o ra v.. i $150.00 Fee Paid Treasurer's Receipt No. —41d Appraisal Fee Paid Treasurer's Receipt No. Land Value Paid Treasurer's Receipt No. Deed Accepted Date Tr@ Accepted _ Date _ 5224.33A sm ,&Odin 220 4Ih AYE SO, I KEN I.WASI IIW31ON 90032 58951 ENGINEEnING (2061859-33031 OPEIIAI IONS(206)1159 3395/PAX 8 859 3334 F:IHOMEIPATICIties-FD-%...cor.3ewer%Vacation-32 Ave.doc Street and/or Alley Vacation Application and P �j (32°d Ave. 3.) � 2 9 , y Legal Description CITY OF KENT CITY CLERK Starting at the SE corner of Section 1% Township 22N, 4E, W.M., proceed north 30 feet along Section Line to the TRUE POINT OF BEGINNING; Thence North along said Section Line approximately 391.77 feet; Thence North 88"38'46.3" West 30 feet to the West boundary of 32nd Ave. S; _ Thence South parallel to the Section Line to the North boundary of S. 240th St.; Thence East to the TRUE POINT OF BEGINNING [area = 119753.1 sq. ILl. WHY VACATION IS MEMO SOUGW This request to vacate the 30 foot wide 32ad Ave. S. will eliminate a substandard width in an unimproved right-cf-way, which is at the present time a refuge for illegal action. The vacation will reunite properties with common ownership and provide for future Improvements. }} ��, 61.64 I too - too + 75.36 ISo 619 v S19 - 30 TH A 101.�4 ca . VE'. S. N 31 N lam 2 .476 w LA lam m �N S NO S$ W 8 � - I > C OF KENT U) C ITY CLERK r ,ter O NW m rvl O O 8 O N co 30 191.77 100 100 100 100 --F 32ND AV Wff C" 1,ws on. 1091 r 0 10 I r HIGHLINE WATER DISTRICT RECEIVED ,". RESOLUTION 99-3-ISC APR Z 8 1999 Crry PRoP p7 of KEN7' RESOLUTION AUTHORIZING THE VACATION OF 32ND VE. S. MANAGEMENT DLu, Background APB 2 9 � �� The District is acquiring the property directly behind its CITY OF KENT headquarters building for materials storage. The vacatI0fCM 3&"-:RK Ave. S. will connect both parcels of land and the District will be able to put a security fence around the property. Action NOW THEREFORE, BE 1T RESOLVED: 1. The General Manager is authorized to sign the paperwork to complete the vacation of 32^d Ave. S. ADOPTED BY THE BOARD OF COMMISSIONERS at a Regular Meeting held this 15t+ day of March 1999. RANDALL TAY �R, resident VINCE E R, Secretary O LAND01f, Commissioner -iCi-dVirk.PffS, 6mmissioner THLE N Q ONG- RMEiRE, Commissioner MIDWAY SEWER DISTRICT . COMMISSIONERS MEETING MARCH 24, 1999 Commissioners Koester, Landon and Hendrickson were present. Also present: Mr. Grodt, Mr. Read, Mr. Taylor and Mr. Kase. 0 0 9 ER Q U 2 U The meeting was called to order by the President at 6:30 p.m. APR 2 9 1999 M/S/C approving the minutes of the regular commissioners meeting of March 8, XW OF KENT CITY CLERK VOUCHERS: M/S/C approving Maintenance vouchers#99.0358 through#99.0426 in the amount of $69,018.77 including special vouchers 999.0382 through#99.0385 in the amount of$21,693.58; Capital Improvement voucher#99.0015 through#99.0017 in the amount of$347,158.48; 1998 PWTF voucher 999.0007 through #99.0009 in the amount of$175,695.00. FILING OF LIENS: M/S/C approving filing of liens as presented. RF.T.F.ASE OF LIENS: M/S/C approving release of liens as presented. f - .............. -- - - 32"d AVENUE STREET VACATION: — -' - The Manager said a petition was initiated by Highline Water District to vacate 32'Avenue east of Midway's office building. M/S/C authorizing the Manager to sign the petition on condition no costs or fees that may be involved be borne by Midway. The Manager said he had reviewed the engineering services contract for the Marine Outfall design submitted by URS and recommended approving it. M/S/C accepting the recommendation. ENJEPLOYEE AUTOMOBELE REIMBURSEMENT POLICY: The Manager asked for a policy to be set on reimbursement to an employee for using his/her private automobile when a District automobile is available. M/S/C keeping the policy that each employee have the choice which mode of transportation to use and to be reimbursed for using his/her car. Midway Sewer District Commissioner Meeting Minutes � " DD,_,, March 24, 1999EEO Page 2 APR 2 9 iS99 FDLTCATIONAL.REQUESTS: CITY OF KENT CITY CLERK 1. Commissioner Koester said he thought approving educational requests should be left to the Manager's discretion without commissioner review. After discussion the suggestion was dropped. 2. The Manager asked for the following approvals: A. The Manager and Field Representative to attend a"Construction for Public Entities" course May 26', in Seattle. B. For one employee to attend a"Handling Excuses and Getting Results" course May 12', in Seattle. C. For 5 to 7 supervisory employees to attend a"Basics of Supervision" course June 25*, in Seattle. M/S/C approving the three requests. �y ENGINEER'S REPORT: Mr. Grodt reported on the following: 3. Contract 97-2. Digester walls and basement walls have been poured and digester equipment has started to arrive on site. 4. Contract 98-1. Most of the emergency generator building has been completed and the ._.w contractor has been working on the drainage structures. 5. Marine Outfall. Final design for the marine outfall is in progress. Continuing to work on the permits. The next meeting will be on Monday, April 12, 1999, at the Office of the District at 9:00 a.m. The meeting was adjourned at 7:13 p.m. EDWARD .t OR ATTEST: OR�Fi ON- SECRETARY . ' Kent City Council Meeting Date -11.uIF 1. 4W -¢e , 1999 Category Consent Calendar 1 . SUBJECT: 1998 ASPHALT OVERLAYS - ACCEPT AS COMPLETE 2 . SUN ARY STATEMENT: As recommended by the Public Works Director, accept as complete the 1998 Overlays/Central Ave. RT Lane/Russell Rd. Walkway contract and release of retainage to Lakeside Industries upon standard releases from the State and, release of any liens . The original contract amount was $536, 820 . 20 . The final construction cost was $518, 993 . 92 . 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. 6I �jfy �ll Kent City Council Meeting Date _Utjg t 44a*4 1999 Category Consent Calendar 1 . SUBJECT: COMMUNITY ACCESS STUDIO AGREEMENT WITH TCI - LIMITED EXTENSION OF TIME - AUTHORIZATION 2 . SUMMARY STATEMENT: Authorization for the Mayor to sign an Agreement that would be specifically limited to extending the time for performance of TCI ' s obligation under its current franchise to provide, maintain, and operate a public access studio (as extended on August 3 , 1997, by separate agreement) to September 1, 1999, in order to investigate implementation of a Community Access Facility in partnership with a local educational institution upon terms acceptable to the City. 3 . EXHIBITS: TCI letter 4 . RECOMMENDED BY: Public Works (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. 6J 05/26/99 09:39 FAIL 253 939 bl30 lei Auburt4 urri�t �TC I May 24, 1999 Tom Brubaker City of Kent 220 Fourth Ave S Kent, WA 98032 Dear Tom, This letter is follow up to our meeting on May 12th and phone conversation on Friday May 14`h, 19"rega3din$ an extension for the completion date for the community access facility required under our franchise with the city of Kent which will serve the r communities of south King County. At the meeting on May 12th we provided rep esientatives with proposed equipment lists for portable equipment, studio equipment, playback equipment and editing equipment. Based on these conversations, we are in the process of modifying the equipment lists to achieve the following: 1. Add a third studio camera to the studio equipment configuration. 2. Provide a consistent brand and model for editing and source deck equipment for efficiencies in repair and maintenance. 3. Develop pricing for two sets of three-point lighting and a grid assembly for the studio. 4. Add additional batteries and an additional tripod for the portable equipment configurations. 5. Provide a consistent brand and model for character generator equipment for playback, editing and control room use. Although TO offers this equipment list and proposed facility to fulfill its public access studio obligations under its franchise with the City, TO recognizes and accepts that the City has not accepted or approved either the facility or the equipment list and may require additional equipment, facility, or operational elements before the City will approve the facility as acceptable. Such approval shall not be unreasonably withheld. During the meeting on May 12th we indicated that we have identified a site for the community access facility and are prepared to move forward with renovations and the purchase and installation of equipment. However, following our conversation on Friday, May 140', we have agreed to refrain from moving forward with facility renovations in order to provide the City with the opportunity to determine if a local college would be �-� interested in having the facility co-located at their location. By doing so,the facility may TCI CabWvision of Washington,Inc. Aubum Office 4020 Aubum Way N. Auburn.WA 98002 (253)286-7450 FAX(253)238-7500 An Equaf OAOonU*Employer better meet community needs by fulfilling both educational and public access community ._, programming needs. Council Member Clark has indicated that this is of interest to the City of Kent and that he would be willing to pursue this concept with other jurisdictions. To that end we are hereby requesting an extension of the requirement in our franchise to construct and operate a public access facility for the City of Kent by July 1,1999 pursuant to Section 5 of Ordinance No. 3108, as extended by previous agreement on August 3, 1997. We request that fulfillment of this obligation be extended through September 1, 1999. This extension request is specific only to the acxxss facility required under the franchise and in no way modifies other deadlines and obligations contained in our franchise agreement with the City, We are in the process of finalizing the equipment list pursuant to our discussions to date and will proceed to order the equipment and necessary rick components. Further, we are continuing to develop proposed operating guidelines for your review and consideration. Thanks you for your consideration of this extension. r Sincerely, l David J. General Manager cc: City Council Member Tim Clark Dea Drake Lon Hurd Janet Turpen Deb Luppold Kent City Council Meeting -� Date 7VA)F 1i —14, 1999 Category Consent Calendar 1 . SUBJECT: GAMBLING ORDINANCE 2 . SUbZLkRY STATEMENT: Adoption of Ordinance No. 35l60 prohibiting social card games conducted as a commercial stimulant . In 1997 , the Washington State Legislature amended the State ' s 1973 Gambling Act allowing for enhanced card room operations by food or drink establishments conducting social card games as a commercial stimulant . Enhanced card rooms have resulted in gambling facilities different from earlier social card rooms which typically were ancillary uses to other primary uses such as restaurants . A number of these establishments, commonly known as mini casinos, have opened in the South King County region. On February 2 , 1999, the City Council enacted a moratorium on the acceptance of applications for and issuance of any license, permit, or approval for food or drink establishments conducting social card games as a commercial stimulant . The proposed ordinance would prohibit these facilities in the City of Kent, except those establishments currently licensed by the Washington State Gambling Commission would be allowed to continue operating until March 1, 2004 in order to allow them to recoup their cost of investment . Also exempt would be social card games conducted by charitable or non-profit organizations . 3 . EXHIBITS: Ordinance 4 . RECOMMENDED BY: Public Safety 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. 6K ORDINANCE NO. AN ORDINANCE of the City Council of the City of Kent, Washington, relating to gambling; amending Chapter 3.21 of the Kent City Code prohibiting social card games conducted as a commercial stimulant;terminating the moratorium established in Resolutions 1525 and 1526; and further reducing the tax for bingo games and raffles pursuant to SSB 5745 recently passed by the Washington State legislature. WHEREAS, as a result of 1997 legislation by the Washington State legislature amending the State's 1973 Gambling Act, food or drink establishments conducting social card games as a commercial stimulant have established enhanced card rooms resulting in gambling facilities that are different from earlier social card rooms which typically were ancillary uses to other primary uses such as restaurants; and WHEREAS, a number of these establishments, also known as mini casinos, have opened in the South King County Region; and WHEREAS,the City Council enacted a moratorium effective February 2, 1999 on the acceptance of applications for and the issuance of any license, permit, or approval for food or drink establishments conducting social card games as a commercial stimulant, to allow the City to study their impacts in the community; and WHEREAS, that allowing establishments conducting social card games as a commercial stimulant in a city that is concerned about its image and trying to attract `' ' 1 Gambling residences, businesses, and investors to the City, as well as the City's investment in major capital program projects into the City to attract these residences and businesses, is not in the City's best interest; and WHEREAS, private investment needed for the City's planned development cannot occur if establishments conducting social card games as a commercial stimulant develop in the area; and WHEREAS, prohibiting social card games conducted as a commercial stimulant as an exercise of the Council's police powers and pursuant to legislative authority is in the best interest of the general health, safety, and welfare of the citizens of the City; and WHEREAS, the council believes it is inappropriate to prohibit existing establishments conducting social card games as a commercial stimulant immediately without giving the owners of such licensed gambling establishments a reasonable time to make plans for alternative uses of their property; and WHEREAS, allowing present licensees to remain in operation for a limited time would give such licensees a reasonable time to phase out card rooms and make plans to convert their properties to other uses; and WHEREAS, RCW 9.46.295 authorizes municipalities to prohibit certain gambling activities otherwise authorized under Chapter 9.46 RCW; and WHEREAS, the City Council deems it to be in the public interest and welfare to prohibit prohibiting social card games conducted as a commercial stimulant as defined in RCW 9.46.0282; and 2 Gambling WHEREAS,the Washington State legislature passed SSB 5745 during the 1999 legislative session reducing the maximum gambling tax for bingo games and raffles from 10%to 5%effective January 1, 2000; therefore, the council finds it appropriate to amend the City's gambling tax code to reflect this change, and minor language changes consistent with state law,NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF KENT, WASHINGTON, DOES HEREBY ORDAIN AS FOLLOWS: SECTION 1. Chapter 3.21 of the Kent City Code entitled "Gambling Tax" is hereby amended by amending Section 3.21.010 as follows: Sec. 3.21.010. Gambling activities and tax.ease& A. Tax imposed. In accordance with RCW4�-9.18 9.46.110, there is levied a tax upon all persons, associations,and organizations who have been duly licensed by the Washington State Gambling CommissionsWe sambli to conduct or _i operate certain gambling activities as follows: 1. A&ky-Until January 1, 2000, taxation of bingo games and raffles,at a tax rate of ten(10)percent of the gross receipts tee-received therefrom less the amount awarded paw-€e as cash or merchandise prizes. , Effective January 1, 2000, taxation of bingo games and raffles at a rate of five (5) percent of the gross receipts received therefrom less the amount awarded as cash or merchandise prizes; 2. Taxation of-amusement games;at a tax rate of eiex ., two (2) percent of the gross receipt Fevenue from any such amusement games less the amount awarded as prizes, which is an amount less than the actual amount of costs of enforcement by the City of the provisions of Ch. 9.46 RCW; 3. Taxation of peneMewds punch boards and pole 9 pull-tabs for bona fide 3 Gambling charitable or nonprofit organizations and for commercial stimulant operators at a tax rate of ten(10) percent is-based on the gross receipts from the operation-of the games less the amount awarded as cash or merchandise prizes Per-eent; 4. Taxation of social card games not prohibited by subsection (D) below at based open a tax rate of ten (10)percent of the gross revenue from such games-Feeeipts B. Definitions. For the purposes of this chapter,the words and terms used herein shall have the same meaning given to each pursuant to RCW Chapter 9.46, as same exist or may from time to time be amended; and as set forth under the rules of the Washington State Gambling Commission, Chapter 230, Washington Administrative Code, as the same exists or may hereafter be amended, unless otherwise specifically provided herein. C. Exemption from tax. No tax shall be imposed under the authority of this chapter on bingo, raffles, or amusement games when such activities or any combination thereof are conducted by any bona fide charitable or nonprofit organization as defined in Ch. 9.46 RCW, which organization has no paid operating or management personnel and has gross receipts from bingo, raffles or amusement games, or any combination thereof, not exceeding five thousand dollars ($5,000.00) per year less the amount awarded as cash or merchandise prizes. D. Social card games-Prohibited-Exceptions. Pursuant to RCW 9.46.295 and to the City's police power and legislative authority, the operation or conduct of social card games by any person, association, or organization as a commercial stimulant, as defined in Chapter 9.46 RCW, is prohibited within the City of Kent; provided, that those establishments licensed by the Washington State Gambling Commission, lawfully operating in the City of Kent and in compliance with the provisions of this chapter as of February 2, 1999, may continue to operate social card,games as a commercial stimulant under said license until March 1, 2004 after which date no such establishment may lawfully operate in the City of Kent, and further provided, that bona fide charitable or non-profit organizations, as defined in Chapter 9.46 RCW, may operate or conduct social 4 Gambling card games if said social card games have been duly licensed by the Washington State ,.: Gambling Commission and if they are otherwise operated or conducted in compliance with the provisions of this chapter. A violation of this section shall not be subject to Section 1.01.140 of the Kent City Code. SECTION Z Termination of Moratorium. The moratorium on the acceptance-of applications for and the issuance of any license, permit, or approval for food or drink establishments conducting commercial stimulant card games set forth in Resolution Nos. 1525 and 1526 shall terminate on the effective date of this ordinance SECTIONS. 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. �-% SECTION 4. Effective Date. This Ordinance shall take effect and be in force thirty (30) days from and after the date of passage and publication as provided by law. JIM WHITE, MAYOR ATTEST: BRENDA JACOBER, CITY CLERK �-'' 5 Gambling APPROVED AS TO FORM: �-- ROGER A. LUBOVICH, CITY ATTORNEY PASSED: day of 21999. APPROVED: day of 71999. PUBLISHED: day of , 1999. 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 AC ivi I\Ordinance\gam bhng.doc 6 Gambling QFRU®F THE A ... mEEM to: Public Safety Committee Members: Connie Epperly, Sandy Amodt, Tom Brotherton CC: from; Roger Lubovich, City Attorne re: Gambling Ordinance dolt®; I May 26, 1999 This memo is in follow up to the Public Safety Committee meeting of May 25, 1999. During that meeting, questions were asked about the assignability and/or transferability of existing gambling licenses. I contacted the Washington State Gambling Commission and was informed that any sale of a business with a license would require a new application for a license. Also any change of ownership of over 50% would require a new application for a license. Finally, any establishment with a license may transfer its existing license to another location upon approval of the Gambling Commission. As a consequence, I modified the language of subsection D of the ordinance set forth on Page 4 to reflect that an establishment may continue to operate under its"said license" (meaning its current license) rather than "as presently licensed." The phrase "as presently licensed" may appear to limit an establishment's ability to transfer its license from one location to another when, in fact, the State would allow it. As I indicated to you during the meeting, the City cannot modify State's licenses on these establishments. As establishment operating under its current license would be allowed to renew its license (renewed annually)until March 1, 2004. As a final note, I added a statement to the title of the ordinance and added a"whereas" to reflect the reduction in the tax for bingo games and raffles pursuant to recently passed state law. The body of the ordinance reflected the change, but no explanation was given in the heading or the "whereas paragraphs" as to why the change was made. P:\Civil\Atmrneys\ROGEP.\MEMOS\pub safety.man1doc Kent City Council Meeting Date 'TUAJF' 1 . -Ma*-44 , 1999 Category Consent Calendar 1 . SUBJECT: SYSTEM DEVELOPMENT FEE, MERIDIAN STORMWATER CAPITAL IMPROVEMENT - SECOND AMENDED ORDINANCE 2 . SUMMARY STATEMENT: Adoption of Ordinance No. 354/ relating to technical corrections to Ordinance Nos . 3453 and 3459 which adopted the System Development Fee and Drainage Service Fee for the City' s storm utility service area based upon the newly developed Meridian Stormwater Capital Improvement Program for the Soos Creek Basin of the City' s storm utility service area. Due to an omission made by the City' s code publisher, Ordinance Nos . 3453 and 3459 were inadvertently adopted without reference to basin specific charges for the "Valley Detention" portion of the Mill Creek Drainage . This ordinance corrects that omission. 3 . EXHIBITS: Ordinance 4 . RECOMMENDED BY: (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. 6L ORDINANCE NO. AN ORDINANCE of the City Council of the City of Kent, Washington, implementing technical amendments to Ordinance 3459, which changed the basin-specific rate and connection fee charged by the City storm and surface water utility within the Soos Creek Watershed, and which amended Sections 7.05.090 and 7.05.160 of the Kent City Code. THE CITY COUNCIL OF THE CITY OF KENT, WASHINGTON, DOES HEREBY ORDAIN AS FOLLOWS: SECTION 1. Section 7.05.090 of the Kent City Code is hereby amended as follows: Sec. 7.05.090. System of charges. A. There is hereby imposed a system of charges on each parcel of real property within the city served by or to which is available for service the storm and surface water utility established by this chapter. The charges are found to be reasonable and necessary to fund administration, planning, design, construction, operation, maintenance, repair, improvement, and replacement of all existing and future storm and surface water facilities, including the accumulation of reserves and the retirement of any associated debt. B. The following charges are hereby established for all parcels of real property in the city: . 1. Residential parcels. Effective January 1, 1998, the single-family residential rate shall be two dollars and forty-four cents ($2.44)per month for each parcel 1 Soos Creek Watershed Stormwater `-' Charges— Technical Corrections - having one (1) residential dwelling plus the basin specific charge of subsection BA below. 2. Agricultural and undeveloped parcels: Agricultural parcels shall be charged the monthly residential parcel rate. Undeveloped parcels shall not be charged. 3. Other parcels: a. The charge for all other parcels except residential parcels, agricultural parcels and undeveloped parcels shall be based upon: (1) The total amount of impervious surface as expressed in equivalent service units (an equivalent service unit has been determined to be two thousand five hundred (2,500) square feet of impervious surface or any fraction thereot); and (2) The percentage of impervious surface area on each parcel. b. The charge for all such parcels shall be computed: (1) By multiplying the total number of ESU's on each by the appropriate parcel impervious multiplier; and (2) Multiplying the results by the sum of the single-family residential rate and the appropriate basin-specific charge. C. Impervious multipliers are hereby established: (1) Percentage of impervious area per parcel Impervious multiplier (impervious surface/total surface x 100) 1 to 40 1 41 to 60 1.2 61 to 80 1.4 81 to 100 1.6 2 Soos Creek Watershed Stormwater Charges— Technical Corrections ., (2) Impervious multipliers correlate the hydraulic impact of a parcel to its percentage of impervious surface per parcel. The multiplier for the average single-family residence is established as one (1). The multiplier linearly increases as the percentage of impervious area increases. The final category has a multiplier of one and six-tenths (1.6) which reflects the hydraulic impact on the drainage system compared to that impact of the average single-family residence. 4. Basin-specific charges: The city shall have all lawful powers and authorities to fix, alter,regulate and control charges within specific basins and subbasins. The purpose of the power and authority granted in this section is to provide for charging parcels of one (1) basin or subbasin for improvements, studies or extraordinary maintenance which specifically and solely benefit the property owners thereof. The basin- specific charges are as follows: Charge in dollars per ESU per month Basin Effective date Effective date Effective date January 1, 1998 January 1,2000 January 1, 2001 Westside O 0.09 0.09 0.09 K, L, M, D, E, 0.13 0.13 0.13 F, P &N Eastside Mill Creek Upper(G) 4.07 4.07 4.07 Lower(A) 4.81 4.81 4.81 Valley Det.(0) 4.81 4.81 4.81 Garrison Creek 3 Soos Creek Watershed Stormwater �`—' Charges— Technical Corrections Lower (B) 2.02 2.02 2.02 Upper (J & I) 1.85 1.85 1.85 Direct (C) 2.12 2.12 2.12 Soos Creek(H) 0.09 2.20 4.14 The boundaries of the described basins are generally indicated on Attachment A to Ordinance No. . The boundaries of the basins and subbasins are generally defined and on file in the city clerk's office. The detailed definitions thereof are reflected on maps filed in the engineering division of the public works department. which are available to the public for review and/or copying during normal business hours. 5. Water quality charges: a. The city hereby authorizes and declares its intent to establish, within two (2)years of the adoption of this chapter,a water quality charge which may be added to any or all of the above rates. The purposes of such a charge will be to finance --' monitoring, testing, treatment and control of pollutant discharges into the storm and surface water system, including the exercise of all lawful enforcement powers of the city. A plan for developing such charges, and a schedule and budget for this project shall be submitted to the city council for review and approval within ninety(90)days of adoption of this chapter. A system of water pollution charges for storm and surface water run-off from all parcels of real property in the city shall be developed within two (2)years. b. Such charges should be based upon appropriate indices of pollutant discharges which approximate each parcel's contribution to the problem of water quality within storm and surface water facilities including all receiving waters. 6. Undeveloped parcels shall be subject to all charges established under this section upon development of a parcel. Development shall be determined by the date of issuance of a building permit or any other permit for development purposes or as otherwise established by the director of public works. 4 Soos Creek Watershed Stormwater ,.. Charges— Technical Corrections SECTION - 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. SECTION 3. -Effective Date. This Ordinance shall take erect and be in force thirty(30) days from and after 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 , 1999. APPROVED: day of ' 1999. PUBLISHED: day of , 1999. 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-\Civi I\Ordinance\SbrmDnin-Amend2.doc 5 Soos Creek Watershed Stormwater —' Charges— Technical Corrections NORTH 0 MILES 1.0 ... S;iADED AREA LIES OUTSIDE OF KENT DRAINAGE SERVICE AREA J'dr� yw' —,�*}r �'' — � ,�y� •AY nor -.., •.�� �r •"��.�Y.R.,�e'� e 1 .,�„ ' ha r S •96 S' o A ~• .icy '.+fN � i !r , +w��se !: —: — .ti �, i A`(aye. -44 71, j. a. -^ CITY OF K NT DRAINAGE BASINS _ � n i� AAL 7F Kent City Council Meeting Date .-rurjL=- 1999 Category Consent Calendar 1 . SUBJECT: HORSESHOE ACRES ANNEXATION - SET HEARING DATE 2 . SUMMARY STATEMENT: Set June 15, 1999, as the date for a public hearing on the Horseshoe Acres Annexation. The King County Auditor has verified the sufficiency of the 1160%" petition, and the King County Boundary Review Board has also approved the annexation boundaries . Accordingly, it is now appropriate to set the hearing date for the council to take final action on the proposed annexation. The City Clerk is also directed to cause notice of the hearing to be published and to post notice of the hearing in three public places within the proposed annexation area, all as provided by law. All notices must specify the time and place of the hearing and invite interested persons to appear and voice approval or disapproval of the annexation. 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. 6M p' Kent City Council Meeting i Date,-Tu r sr 1, 1999 Category Other Business 1 . SUBJECT: RESOLUTION AUTHORIZING PUBLIC DEVELOPMENT AUTHORITY BANK LOAN 2 . SUMMARY STATEMENT: Passage of Resolution No . , relating to the redevelopment loan for the new Kent Downtown Market site . The Downtown Market PDA has obtained a loan on acceptable terms with U. S . Bank for the redevelopment of the old Lumberman' s Barn site . The bank, as a condition of the loan approval, has asked the City to reconfirm its guaranty of the loan obligation, to approve the loan documents, to authorize the Assignment of Rents provision, and to authorize J. Brent McFall to sign all necessary loan documents for the City. 3 . EXHIBITS: Resolution 4 . RECOMMENDED BY: Operations (to be presented 6/2/99) (Committee, Staff, Examiner, Commission, etc . ) 5 . UNBUDGETED FISCAL/PERSONNEL IMPACT: NO X YES 6 . EXPENDITURE REQUIRED: $ SOURCE OF FUNDS : 7 . CITY COUNCIL ACTION: Councilmember ( 2&ftdQ move4 Councilmember seconded to pass Resolution No . I54_3 , relating to and authorizing the redevelopment loan to be entered into between the Kent Downtown Public Market Development Authority and U. S . Bank National Association. DISCUSSION: ✓Yln ACTION: WYyG,�_ 6441 aQ Council Agenda Item No. 7A RESOLUTION NO. A RESOLUTION of the City Council of the City of Kent, Washington, relating to the Kent Downtown Market Public Development Authority, approving the terms and conditions of the construction loan for the redevelopment of the Lumberman's Barn site, approving the City's guarantee of the loan, authorizing an Assignment of Rents provision in favor of the lender under the loan, and authorizing the City's Director of Operations to sign the loan documents on behalf of the City. WHEREAS, the Kent City Council created the Kent Downtown Public Market Development Authority("PDA") by its Ordinance No. 3396; and WHEREAS, the City of Kent created the PDA to provide a new location for the Kent Downtown Market by redeveloping the old Lumberman Barn site on Railroad Avenue; and WHEREAS, in order to accomplish the redevelopment of the site, the City granted the PDA its ownership interest in the Lumberman Barn site, along with the remaining budgeted funds dedicated for this project, and further declared its intention to guarantee any loan obtained by the PDA to reconstruct or redevelop the barn on the site if the City approved the terms and conditions of the loan; and WHEREAS, after creating the PDA, the City entered into a Development and Use Agreement with the PDA relating to the renovation, development, and subsequent leasing of that site; and 1 Kent Downtown Public Market '�--' Development Authority—Loan Authorization WHEREAS. under the Development and Use Agreement, the City also guaranteed the loan to be obtained by the PDA in order to reconstruct the site; and WHEREAS, on March 2, 1999, the City reaffirmed its promise to guarantee the PDA loan by its Resolution No. 1527; and WHEREAS. the PDA has now obtained a lender for the project. U.S. Bank National Association, which has prepared the necessary documents, attached and incorporated as Exhibit A, to finalize the loan transaction between the lender and PDA; and WHEREAS, in order to finalize this loan transaction, the lender has asked the City to: (1) approve the terms and conditions of the loan, (2) approve the City's guarantee of the loan, (3) approve the PDA's granting of Assignment of Rents (as allowed under certain limited conditions established in the loan document), and (4) authorize the City's Director of Operations, J. Brent McFall, to sign all documents necessary to complete the loan transaction on behalf of the City; NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF KENT, WASHINGTON DOES HEREBY RESOLVE AS FOLLOWS: SECTION 1. Pursuant to its motions, ordinance, resolutions, and agreement to establish and develop the Kent Downtown Public Market Development Authority for the purpose of developing a new site for the Kent Downtown Market, the City of Kent authorizes the following: 1. The terms and conditions of the construction loan proposed for issuance from U.S. Bank National Association are approved; 2. The loan guarantee referenced in the loan documents, and previously established by resolution, ordinance, and agreement, is approved- 2 Kent Downtown Public Market . Development Authority—Loan Authorization 3. The Assignment of Rents provision established under the loan documents, as limited by the terms and conditions of those documents, is approved; and 4. The City's Director of Operations, J. Brent McFall. is given the authority to sign any and all documents necessary to complete the loan transaction on behalf of the City. SECTION 2. Severability. If any section, subsection, paragraph, sentence, clause, or phrase of this resolution is declared unconstitutional or invalid for any reason, such decision shall not affect the validity of the remaining portions of this resolution. SECTION 3. Effective Date. This resolution shall take effect and be in force immediately upon its passage. PASSED at a regular open public meeting by the City Council of the City of Kent, Washington,this day of , 1999. CONCURRED in by the Mayor of the City of Kent this day of , 1999. JIM WHITE,MAYOR ATTEST: BRENDA JACOBER, CITY CLERK APPROVED AS TO FORM: ROGER A. LUBOVICH, CITY ATTORNEY 3 Kent Downtown Public Market Development Authority-Loan Authorization 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 , 1999. BRENDA JACOBER, CITY CLERK P X tvii\Resoluounlcable access.doc 4 Kent Downtown Public Market Development Authority-Loan Authorization RETURN ADDRESS: U.S.sank National Aaaodkdort con[mOrdal Loan S rvb.W.ot P.O.ea sm Portland,OR 97225-SM ASSIGNMENT OF RENTS Reference# (if applicable).- 797-0608708230 Additional on page r Grantor(s): 1. City of Kent Grantee(s)/Assignee/Sonsfidary: U.S. Bank National Association, Beneficiary U.S. BANK TRUST COMPANY, National Association, Trustee Legal Description: Lots 6 through 12r Inclusive. Block 16 Additional on page 2 Assessor's Tax Parcel I DP: 9179W 1470, THIS ASSIGNMENT OF REMTS IS DATED APRIL.V,•1"9, bobveen City of Kent, whose address Is 220 4th Avenue South, Kent, WA , s Waddiiiiii4on nwnidpai corporation (referred to below as "Grantor"N and U.S: BsA Nalbnd Assod:istlon, whose address k 655 W Smith Street, Kent, WA N32 (referred to below as "Lender'). 05/11/99 12:48 FAX 503 275 5473 CLS L6 002/006 04-27-1999 ASSIGNMENT OF RENTS Page 2 Loan No (Continued) ASSIGNMENT. For valuable consideration, Grantor "gnu, grants a continuing security interest in, and conveys to Lender all of Grantor's right, title, and Interest In and to the Rents from the following described Property located in King County, State of Washington: Lots 6 through 12, Inclusive, Blodc 16, Washington Central Improvement Company's First Addition to Kent, according to the plat thereof, recorded In Volume 3 of Plats, Page 97, in King County, Washitlgbon; EXCEPT the Southerly 15 feet of said Lot 6; TOGETHM WITH an easement for ingress and egress over the South 6 feet of Lot 13, Block 16 of said Plat The Real Property or its address Is commonly known as 206 Re>froacl Avenue North, Kent, WA 98032 The Real Property tax identification number is 9179W 1470. • DEFINITIONS. The Wowing words shall have the following meanings when used in this Assignment. Terms not • otherwise defined in this Assignnertl shall have the meanings attributed to such brehs In Ill Uniform Commercial Code. All references to dollar amounts shall mean amounts In lawful money of to United Shuns of America. AasignmeriL The word'Assignment" means tits Assignment of Rents between Grantor and Lander, and Includes without Imitation all assignments and security Interest provisions,skill lag to the Rents. Borrower. The word"Borrower'means Kent Downtown Public Malriat Development Authority. Event of Default. The words"Event of Default'mean and include htftwit nmblion any of the Events of Default set forth below in the notion tilled"Everts of Default! Grantor. The word"Grantor'means any and all persons and anus WUMAOO this A@d Ptmant.including without 8mitawn all Grantors named above. Any Grantor who signs this Ap� l doss not sign ft Not*.and greats is sign ig this Assignment only to grant and convey that Grp toes interest in the Grantors Interest In the Runts and Personal Property to Lender and is not personally liable under the Note except as otherwise provided by contract or law. Indebtedness. The word"Indabtedness'mme all principal and payable under the Nate and any amounts amended or advanced by Career to dAgAftm-vf, :or 009 w- mounted by Lander to enforoe obligations of Grantor under this AWV;ii nt,twgNlthaf.wNh it C on styah amounb as provided in this Assignment. Lender. The word"Lerider'means U.S.Sank Naflwid Associstion.Its suoeenon;and assigns. Note. The word"Note" means the promissory naik& credit agraentent dated April v. im, In the original principal amount of tj M.000.00 frota Borrower to Lander, togetthu wit an roeewals of. extensions of, modifications of,refinancirgs-oy;gonsMdations.of,and substitutions for the promissory note or agreement. Property. The ward "Property' means the real property, and as Improvements thereon, described above In the "Assignment"section. Real Property. The words'Pisa!Properly"mean the property,interests and rights described above in the"Property Deftnitlon•section. ReWed Documents. The words "Related Documents" Maori and Include without limilation all promissory notes. credit agreements.loan agreements.environmental agreements.gulwanties,security agreements, mortgages,leads of trust, and all other Instruments, agreements and documents, whether now or hereafter existing, executed In connection with the Indebtedness. , Rents. The word"Rents'means no rents.revenues,income,issues,pr�ofitt and proceeds from the Property.whether due now or later.Including without limitation all Rents under ism with Kent Downtown Partnership which was made on the following andpnditio Date of Leaeax S�/j f 9 3G— Loam Terms A 10 year term with the n to didertd the larm for 4 addflbral comsecuave terms of 5 years. (Rental Amounftsl: Monthly payments S6,'.f00.00 on the 10th dale of each calendar month of the lease term. Tenant's Address: W4 West Masker,Suite 204,Kant,WA 91IM THIS ASSIGNMENT IS GPM TO SECURE (1) PAYMENT OF THE IND93MUNESS AND M PERFORMANCE OF ANY AND ALL OBLIGATIONS OF GRANTOR AND BORROWER ullnM THE NOM INS ASSIGNMENT, AND THE RELATED DOCUMENTS. TENS ASSIGNMENT IS GIVEN AND ACCEPT ON THE FOLLOWING TEAMS: GRANTOR'S WAIVERS. Grantor waives all rights or delanses arising by reaskm of any one action"or'anti-deficls y' law,or arty other law which may prevent Lender from bringing any action against Grantor.including a claim for deficiency to the extent Lander is otherwise erniaed to a claim for defdency,before or after Lander's commencement or Completion of any foreclosure action.either judicially or by exercise of a power of sale. GRANTOR'S REPRESS TATiONS AND WARRANTIES. Grantor warrants that: (a) this Assignment is executed at Borrower's request and not at the request of lender; (b)Grantor has the full power,right.and authority to enter Into this Assignment and to hypothecate the Property; (c) the provisions of this Assignment do not ccnftlei with. or result In a default under anv agreement or other instrument binding upon Grantor and do not result In a violation of any law. uro crecawortniness_ of corrower). BORROWER'S WAIVERS AM SPONSIBILt ES. Lander need not toll Borrower. t any action or Inaction Lander takes In connection wtth this A&-wament. Borrower assumes the responsibn'ity for being ind keeping inkw&.d about the Property. Sorrower waives any defenses that may arise because of any action or Inaction of Lander,Includi without limitation any failure of Lander to realize upon the Property, or any delay by lender in realizing upon than Propnuty. Borrower agrees to remain Gable under the Note with Lender no matter what action Lender takes or tails to take under thisAssignment. PAYMIENT AM PERFORMANCE. Except as otiveewin pmo in This Assignment or any Related Document, Granter shad pay to gender as amounts secured by aft Assignment as Way become due.and shall strictly par ton o an of Gnntore ✓' cbUgatlons under this Assignment. Unless and until Lander ataereisse Its right to eonect the Rents as provided below and so long as them is no dakult under this Assignment. Grantor may remain in possession and control of and operate and manage the Property and Comet the Rents,provided that the granting of the right to coned the Reuss shall not constitute Landers consent to the use of cash collateral In a bankruptcy proosetift. GRANTOR'S REPRESENTATIONS AND WARRANTIES WITH RESPECT TO THE RENTS. With respect to the Rants, • O r 05/11/99 12:48 F.0 503 275 5473 CLS tEUU3/006 a - - s 04.27--1999 ASSIGNMENT OF RENTS Page 3 Loan No (ConUnued) Grantor represents and warrants to Lander that: Ownershlp. Grantor Is entitled to receive the Rents free and clear of all rights, loans, lions, encumbrances, and claims except as disclosed to and accepted by Lender In writing. Right to Assign. Grantor has the tun right, power, and authority to enter into this Assignment and to assign and convey the Rents to Lender. No Prior Assignment. Grantor has not previously assigned or conveyed the Rents to any other person by any instrument now in force No Further Transfer. Grantor will not son,assign,encumber,or otherwise dispose of any of Grantors rights in the Rents except as provided in this Agreement. LENDER'S RIGHT TO COLLECT iRENTL Lender shag have the right at any time'and even though no default shall have occurred under this Assignment,to called and receive the Rents. For this purpose,Lander is hereby given and granted the following rights,powers and authority: Notice to Tenants. Lander may send notices to any and as tenants of the Property advising them of this Assignment and directing all Rents to be paid directly to Lander or Landers agent Enter the Property. Lender may enter upon and take possession of the Properly;demand.eodect and receive from the terwets or from any other persons liable therefor, an of the Ron4: inalluts and carry on all legal proceedings `, necessary for the protection of the Property.including such prooeerangs as may be necessary to recover possession of the Property;collect the Rents and remove any tenant Or ttnanfs or attar persons from the Property. Maintain the Property. Lender may enter upon the Property to matr4min the Property and kow the name in repair, IQ pay the costs thereof and of all services of ail employees.khditldirty thou agdptngni.and of all continuing cn%and expenses of maintaining the Properly In proper repair and eorWRon, and also to pay an farce. assessments and water utilities,and the promiums on tiro and eater insurance silo m wl by Lander on the Property. Compliance with Laws. Lander may do any and all u*W to eiroWe and comply with the taws of the Slate of Washington and also all other laws,ndea,orders. ordinances and r+epulranenh of all other governmental agencies affecting the Property. Lease the Property. Lender may rent or lease the whole or any part of the Property for such term or terms and on such conditions as Lender may dears appropr fB. Employ Agents. Lander may engage such agent or agents as Lander nay deem appropriab, Other in Lender's name or in Grantors name.to rent and manage the Property.khdudin01e activation and application of Rents. Other Acts. Lender may do all such other things and sc%Vq w iwsp of to the Property as Lander may deem appropriate and may act exclusively and sot*In 1 stead of Grantor and to have all Of the powers of Grantor for the purRosas stated above. , ; No ReQulremhenf to Act Lender shalt not be required 10 do arty of#0 foragotng acts or things,and Use fact that Lender shall have performed one or more of.the f ftoing ads or things shall not require tender to do any other specific act or thing. APPLICATION OF RIMS. All coals and expenses Incurred by Louder In connection with the Properly shad be for Grantor and Borrower's account and Lender nay pay such coils and omtpenass from tine Rents. Lander, in Its sole discretion,shad determine the application of any and all Rents NOW No by it;hawover,any such Rants received by Lender which are not applied to such costs and expenses shall be applied to ifs Indebtedness. AN eosperedltureo made by Lerida Under this Assignment and not reimbursed from the Rents 40 tacos a pent Of the Indebtedness secured by thls Assignment,and shall be payable on demand.with interest at the Note rate from data of vxpanditm until Paid. FU:L. PERFORMANCE. It Grantor pays all of the Indebtedness when due and otherwise Performs ad the obligations Imposed upon Grantor under this Assignment,the Note,and the Related Documents.Lander shall axeeub and deliver to Grantor a suitable satisfaction of this AsWment and suitable stabmenb of tarminalfen of any financing statement on flit eviderncing Lender's security interest in she Rents and the Property. any termination tea required by law shad be paid by Grantor.if perm itled by applicable,Law. EXPENDITURES BY LENIML If Grantor falls to comply with any provision of this Assignment. or if any action or proceeding is commenced that would mamially ethic Landers intervals In the Property,Lander on Grantors behalf may. but shag not be required to,Wee any action that Lender deans the appreprialy. Any amount that Lander stponds in so doing will bear Interest at the rate provided for In the Nob te'om e dab ktaured Or Paid by Lender to the date of repayment by Grantor. As such expenses,at Condors option,will (a)be payable an demand, (b)be added to the balance of the Nets and be apportioned among and be payable with any Installment paymorft to btlooma duo during either (1)tha term of any applicable insurance policy or 00 the remaining term of the Na*or (c)be treated as a balloon payment which will be due and payable at the NcWs maturity. This Assignment also will acorn payneent of these amounts. The rights provided for In this paragraph shag be in addition to any other rights or any remedies to which Lender may be entited on account of , +. the detault. Any such ad en by Lender shall not be construed as curing the default so as to bar Lander from any remedy that it otherwise would have had. DEFAULT. Each of the following,at the option of Lander,shall constitute an event of default("Event of Defauttl under this Assignment: Default on indebtedness. Failure of Borrower to make any payment when due on the indebtedness. Compliance Default. Failure of Grantor or Sorroww to comply with any other term,obligation,covenant or condition contained in this Assignment,the Note or in any of the Related Documents. ..:..}.�.....i.111 ...,w -i t,.— ..fi.a +.. id VI {uRliAneo. Defecrive Copsterallatk fhls Assignment or arty of the Related Documents ;a to be in full fares and effect (Including failure of any cowwal documents to create a valid and perfected secw..y interest or pen)at-any tuna and for any reason. Other Defaults. Failure of Grantor or Borrower to comply with any term,obligation,covenant,or condttlon contained in any other agreement between Grantor or Borrower and Umder. Insolvency. The dissolution or termination of Grantor or Borrovnes existence as a going business,the irsdvency of Grantor or Borrower,the appointment of a raeeiver for any part of Grantor or Borrowers property,any assignment for the benallt of creditors,any type of credflor workout,or the commencement of arty proceeding under any bankruptcy or insolvency laws by or against Grantor or 9onnwer. Fonwaomm, Fortetture, etc. Commencement of forsdomos or forbilua proceedings, whether by judicial proceeding.sefi•-help,roposse ssion or any other method.by any media*of Grantor or by any governmental agency against any of the Property. Wowe%mr,this subsection step not apply in the event of a good faith dispute by Grantor r t ' 4 05/11/99 12:49 FAK 503 275 5473 GLS �LUU4/006 04_27_1999 ASSIGNMENT OF RENTS Page a Loan No (Cot> Mad) as to the validity or reasonableness of the claim which is the basis of the foredosuve or forefaiture proceeding, provided that Grantor gives Lander written notice of such claim and furnishes reserves or a surety bond for the claim satisfactory to Lander. Events Affecting Guarantor. Any of the preceding evWts occurs with respect to any Guarantor of any of the Indebtedness or any Guarantor dies at becomes incompatant,or revokes or disputes the validity of,or liability under, any Guaranty of the Indebtedness. Adverse Change. A material adverse change occurs in Borrowers financial condition, or Lender believes the prospect of payment or performance of the Indebtedness is impaired. insecurity. lender in good faith deems itself insecure. RIGHTS AND REMEDIES ON DEFAULT. Upon the occurrence of any Event of Default and at arty time thereafter,Lander may exercise any one or more of the following rights and remedies,In addition to any other rights or remedies provided by law: Accelerate Indebtedness. Lander shei have the right at its option without notice to Borrower to declare the entire Indebtedness irnmedately due and payable,Including any prepayment penally which Borrower would be required to pay. Coiled Rents. Lander shall have the right,without notice to Grantor or Borrower,to take possession of the Property •, and dxtged the Rants,including amounts past due and unpaid,and apply the net proceeft over and above Lender's costs, against the Indebtedness. In furtherance of this right, Lotdar shill have of the rights provided for In the Lender's tight to Collect Section,above. If the Rents are cofeoted by Lender,then Grantor Irrevocably designates Lender as Grantors altorrwp-in-fact to andase Instruments moehved In payment thereof in the name of Grantor and to negotiate the same and truest the proosads. Payments by tenable or other users to Lander in response to Lender's demand shall satisfy the obligations for which the payments are made.whether or not arty proper grounds for the demand cdsted. Lander may exercise Its rights under this subparagraph either in person. by agent. or through a receiver. Appoint Receiver. Lander shall haw the right to have a moslvsr appointed to take possession at all or any part of the Property,with the power to protect and preserve the Prop".to operate the Property preceding foreclosure or sale,and to tolled the Rants tam time Property and apply the proceeds.ova and above In coat d the receivership. against the Indabladnaes. The receiver may'saw wtiltout bond If permitted by law. Lender's right to the appointment of a receiver shah addst whether or not the apparent venue of the Property e000eeds the Indebtednesss by a substantial amount. Employment by Leander shall not dlsquelly a pstson from serving as a receiver. Other Remedies. Lander shall have ate other rights and rem ';provided in this Assignment or the Note or by law. Waiver, Election of Remedies. A waiver by airy party M;iiiibietach of a provision of this Assignment stall not constitute a walwr of at prejudice the partes rightsiblhrwisa to demand strict compliance with that provision at any other provision. elecWn by Lander.to pursue any rwnady stall not exduda pursuit of any other remedy,and an election to make expenditures;or left action to perform an obligation of Grantor or Borrower under this Assignment after failure of Grantor or Borrmwer to porfohir tihall not ailed Lender's right to declare a default and exerese its remedies under this Assignmenr Attorneys'Fees; Expensed.•If Lander institutes arty suit or acilon to enforce any of the tarmac Of-this Assignment, Lander shall be entitled to recover such sum as the court may edge reasonable as attorneys'fees at trial and on any appeal. Whether or not any court action In involved.ar reasonable expenses Incurred by Lender that in Lender's opinion am necessary at any time for the protection of Us irtMeat or the enforcement of tie rights shag become a part - _ of the Indebtedness payable on drnand and shall beer Itin N from the date of atgaertditmk until repaid at tea rate provided for in the Note. Expenses covered by this paragraph hviuda,without imk*m. however subject to any limits under applicable law, Lender's attdxftega•ass and Landers Ipd arpartses whether or not there Is a IawsuiL including attorneys' toes for bankruptcy proceedings pneluding aft to to modify or.vocals any automatic stay or Ir4undbn).appeals and any antiaDayad posHudgment collection services.the coat at searching rwwds, obtaining title reports (including foreclosure reports).surveyors' report.and appraisal tees. and 11%insurance. to the extent permitted by applicable law. Borrower also will pay any court casts,In addition to all other sums provided by law. MISCELLANEOUS PROVISIONS. The following miscallaneous provisions are a part of this Assignment: Amendments. This Assignment, together.with any Related Documents, constitutes the entire understanding and agreement of the pares as to the matters set font In this Assignment. No alteration of or amendment to this Assignment shag be Naotive unless given in writing and signed by the party or parties sought to be charged or bound by the alteration or amendment. Applicable Law. This A I rwemt has been delivered to Lander and accepted by Lender In the State at Washington. Subject to the provislats on arbitration,this A=4pw em shah be governed by and construed In accordance with the laws of the State of Watift9ton. Arbitration. Lander and Grantor and Borrower agree tint all dlaputee, claims and controversies between them,whether Individual.joint,or deers In nature.arising/rout this Aae1111ranent w COMwis,including without firnlWoon contract and tort disputes, shall be arbitrated pursuant to the Rules of the American Arbitration Association,upon request of either party. No act to take or dispose of any Collateral shag constitute a waiver of this arbitmfon agreement or be prohibited by this arbitration agmament. This Includes,without Ilmitation, obtaining injunctive relief or a temporary restraining order. invoking a power of sale under any dead of trust or mortgage obtaining a writ of attachment or imposition of a nscdver, or exwclstng any rights relating to personal property. including taking or disposing of such property with or without judicial process pursuant to Article 9 of the Untfarrn or the power to enjoin or ro--3in any act of any party. Judgment upon any award--idered by any arbitrator may be entered in any court havir isdiction. Nothing In this Assignment shall precluc y party from seeking equitable relict from a court of competent jurisdiction. The statute of Gmitafions,estoppel,waver,lachas,and simdQr doctrines which would otherwise be applicable in an action brought by a party shall be applicable in any;40htration proceeding,and the commencement of an arbitration proceeding shall be dawned the commencement of an action for these purposes. The Federal Arbitration Act shah apply to the construction.Interpretation,and anforeemant of this arbitration provision. nnttfttple Partles; Corporate Authority. All obligations of Grantor and Borrower under this Assignment shall be joint and several,and all references to Grantor shal mean each and ovary Grantor,and an references to Borrower shall mean each and ovary Borrower. This means that each of the persons signing below is responsible for all obligations in this AsslgnmenL Where any one or more of the Grantor or Borrowers are corporations. partnerships or similar entities.it is not necessary tar Lender to inquire into the powers of any of the Grantor or Borrowers or of the offices, directors,partners, or agents acting or purporting to ad on their behalf.and any indebtedness made or created in reliance upon the professed exercise of such powers shag be guaranteed under this Assignment. r r `4� 05/11/99 12:50 FAX 503 275 5473 CLS Q 005/006 04-27-1999 ASSIGNMENT OF RENTS Page 5 Loan No (Continued) No Modification. Grantor shop not enter Into any agreement with Noholster of any mortgage.dead of trust,or other security agreement which has priority area title Assipnmerrt by which that agreement Is modified,amended.extended. or renewed without the prior written a "hod of Lander. Grantor shd neither request nor accept any future advancts under any such security agreement without the prior written consent of Lawler. Saverability. If a court of competent juftdWw Ands any provision of this Assignment to be invalid or unenforceable as to any person or circurnstanee.such finding shop not render that provision krveid or unenforceable as to any other persons or circumstances. If feasible.any such ollending provision shop be deemed to be modified to be within the limits of enforceability or vafid1r.however.If the otlrnding provision cannot be so modified,it shall be stricken and all other provisions of this Assignment in ai corer respects shall remain valid and enforceable. Sueoesoors and Assigns. Subject to the firnfiations stated in this Assignment On transfer of Grantors interest, this Assignment shall be binding upon and inure to the benefit of the pw*&their successors and assigns. If ownership of the Property becomes vested in a person other than Granter. tender,without notice to Grantor, may deal with Grantors successors with r leniii to halo Assignment and the Indebtedness by way of forbearance or extension without releasing Grantor from the ob"oas of this Assignment or lability under the Indebtedness. Time Is of the Essence. Time is of the assence in the performance of this Assignment. Waiver of Homestead Exemption. Grantor hereby releases and waives all rights and benefits of the homestead exemption laws of the State of Washbglon as to all Indebtedness secured by this Assignment. •y Walters and Consents. Lander shalt not be deemed to have waived any rights under this Assignment(or under the Related Documents) unless such waiver is In writing and signed by Lander. No delay at omission on the part of Lander in exercising any right shop opgoill a ss a waiter of such tight or any ether right. A waiver by any party of a provision of this Assignment shell not oonsguM a writer of or PnyWIoe the Parity s right otherwise to demand strict compliance with that provision or any other prwAsion. No prior welvr by bander,nor any course of dealing between Lander and Grantor or Borrower,steep Coosa"a waiver at any of Looks's rights or any of Grantor or Borrowers obligatiuons as to ch nsent by L n e granting consent by Lander is m*Aed in this Assignment,the Lander in shall oonstituts continuing consent to subsequent inatanees where such consent is required. GRANTOR ACKNOWLEDGES HAVING READ ALL THE PROVISIONS OF THIS ASSIGNMENT OF RENTS, AND GRANTOR AGREES TO ITS TERMS. GRANTOR: , ;r City of K By: ` . J. ail, fy ,- US.Bank Association car CORPORATE ACKNOWLEDGMENT STATE OF ISi COUNTY OF K1 N4 I Or INS I Z 'day of MAY 19 4 9 . baI n me.the undniQ ened Noayry Pubic. personally appea ud.r.&v—A. City AdminialrOw of city of Keaa,and peraon mill►known to me or proved to me on On basis of satidactory eviler" to be an autt►ertood agent of the Corp" de that executed the Assignment of Rents and ac u"adppd- to Assignment to be the his and volunFary act and dead of the corporation.by authartly of its Bylaws or by resoiutlon of ib board of directom for the uses and purposes thaNln .,WON ed. and on oath stated that he or she is suit,~to execute this Aaaignment d in fad executed the Assignment On behalf of the corporation. By �.- � RoeWing at -yl.1 F anti C.. 2 20d I Notary Public In and for the State of WASIA• My commission expires 1 Z- w✓ 04-27-1999 ASSIGNMENT OF RENTS Page 6 Loan No (Care CORPORATE ACKW W'LEDGMENT STATE OF ) )S8 COUNTY OF On this day of . 19 , bdw am rite uadersiprted N(tfary PWWlc, personetty appeared J.8rent McFall,t;ay AdtrNtlls VQW of OWat Karr,and prtd'or10% known to me or Proved to me on the basis of satWactory evidence to be an r aillmo med agent ofb l-to -0 pl Mist a RWAld Na Aaftnment of Rants and aclrnowiadW the Assignment to bo dw brae and vab jfty ad wW dead of MM p n por mg- by authority of its Bylaws or by resolution of its board of dream, for ttte uaea and puma ee tttrfalwlllerO rAd and on calh stated that he or she is authorized to execute this Assipnamu and in fret a mouled the Aodp me d on behalf of the caperatlon. By Rm"m.g el Notary Public in and for the Sbfe of tlA)r co!m�t eapiras LAGER PRO.Rep,U.E.far.A T.A.Ott.,ver.loft(al im cm mmarmaL AV. A-614KENTr.LN Co,OWI r mzismm- DISBURStMENT REQUEST AND AUTHORIZATION P ncipal` Loan: ate. _tu Loftn . Ca i Ilatenll Account Officer Initials 160 .:.. ..•l0iOd709230.. EAI00 $700,000.00 ' 042i-1999 05-01.2009 icular loan«rem+ I Rderences n the snarled are an r«Lerrdars use arw area co not Im,the aaplreaWay d uw dorvrw+t b parr Borrower: Kent Downtown Public Market Development Lender: U.S.B KinSouthg Association W Authority as W Sam Street 206 Railroad Avenue North Kent,WA 911M Kent,WA 99= LOAN TYPE. This is a Fixed Rate(7.125%Initial MIS),Irrquisr Payment Loan to a Corporation for$700.000.00 due an May 1,2009. PRIMARY PURPOSE OF LOAN. The primary purpose of tide loan is for 0 Personal,Family,or Household Purposes or Personal Investment. ©Business(Including Real Estate Investment). SPECIFIC PURPOSE The specific purpose of this ban is: To finance the renovation of the Kent S&kxd& MarkN Buldimg(formerly known es the Lumberman Sam)' kwated in King REAL ESTATE DOCUMENTS. City of Kent Is gNkq b Lender an Asd9rrrrMa Document(-Rev Estate Vre 1psruab Borrower agree Courtly,Stan d Waehirglar b scare SonowWS kWsbtedness b LMnbr. kr eanaidars Ada artd M"Or6mMIr•- This tnrMrlr tlorrawr to perform and comply with the Rd Estate Doar+twas Neat es M Borrower trod trt9rrb b and=V%sulcity�r agree b all me rspranaadora and warranties made in the Red Estate De"W". N sitd6a+,Bsnmoersr aft f>M a1 the terms,obligations and covenants b be Pofmrnsd try ei6rsr Bdrrowsr or 0lramtbr,a bmar.a wive ttr MrM L9IM Deumrtsrrls• Bonowel an I*term Larder need not tea Borrower about any mom or Yao6sn F. alsodso wda6 any dstan tee that rosy arise bsosuee d any &stoma the responsbW for being and keeping krlonusd�e Lender lob rssY:e upon 11te Prslparty.or any delay by LardW in MIlli g UPOn are action at inaction 01 Lender,including wil"A wrYMbn any ply. Borrower agrees to remain liable under tine Note wive Lender no matter what action Lender takes or b take under Vre pad fate Documents. for F dated `^DOD urre"lloUanniis not located In an was a on s that has idenood Map No. tified by Oireo�lor�of to Federal ffMSPONICY ilrOgema d AQKW as an exam community ol KENT.CrTy OF.the Property h vk+g special Rood hazards. Therelore,although flood ktsurarwe may be ankible for the Pf0P0rty,no spwMt flood hazard insurance IS MOW by law for loan. Ws bean. Borrower understands that no a DISBURSEMENT INSTRUCTIONS. ban Proceeds will be disbursed until as of Lendmes ocrxians for making the ban have been satisfied. Please disburse the ban Proceeds d$700.000-W as follows: Amount paid to others on Borrower's behalf: $700.000.00 $700.000.00 As Muscled by Borrower Nob Principal: $700.000-W CHARGES PAID IN CASH. Borrower has paid or will pay In cash as agreed Vm folbwkq charges: Prepaid Finance Charges Paid In Cash: $0.00 Other Charges Paid In Cash: $69.00 $12.50 UCC Fang Fee of Rent 8 pipe O S6.00 for the ' $13.00 Recorded Assignment first pope and$1.00 br each adAoehpske $24.00 Pre4Jsn Search ' $16.60 Post Lien Such $21.00 Flood Detemwatlon Total Charges Paid In Cash: $69.00 LIEN RELEASE FEES. In addition b aY other charges,Borrower agrees.to the extent not prohibited by law,10 PRY all gpvsnner"tea for rdasse d LIEN RE LEASE FEES, tI b option to securktg Urts ben. Borrows will pay.tfeas fees at the time the Hen or liens are released. The estimated amount aty of Vase ftdurs Yen release tau Is S75.00. DOCUMENT PREPARATION. In connection with time Lon tender ha selected,prepared,�stted"own ritMs M in 6rs traresclbn• R which will a6ect Borrower's legal rights. lender has dorm ills solely Jar its own btenalk and b protect HAS BEEAI ADVISED BY LENDER THAT BORROWER SHOULD CONSULT WITH BORROWER'S OWN LEGAL COUNSEL TO PROTECT BORROWER'S INTERESTS AND TO ANSWER ANY QUESTIONS BORROWER MAY HAVE ABOUT THE INSTRUMENTS,DOCUMENTS OR THE TRANSACTION. 1 04-27-1999 DISBURSEMENT REQUEST AND AUTHORIZATION Page 2 Loan No (Condnuod) °INANCUIL CONDITION. BY SIGNING THIS AUTHORIZATION, BORROWER REPRESENTS AND WARRANTS TO LENDER THAT THE INFORMATION PROVIDED ABOVE IS TRUE AND CORRECT AND THAT THERE HAS BEEN NO MATENIAL ADVERSE CHANGE IN BORROWER'S FINANCIAL CONDITION AS DISCLOSED IN BORROWER'S MOST RECENT FINANCIAL STATEMENT TO LEN . THIS AUTHORIZATION IS DATED APRIL 27,1999. BORROWER: Kent Davestown Public Market Development Authority s RNherd w.LaotoW.send uM .ynpyc IAIEII U.e.HL� .M. ,YW. �� YIL M/�w ww+rri RMInAI/tX.OVLI PROMISSORY NOTE Principal Loan Date t Maturlty Loan No Call '. Collateral Account Ofttcer I Initials 1� D606 0 EAI00 $700 0=00 04-27-1999 05-01.2009 a I-dn�rnnent RNerarws in the shaded area are for L,rd,re use told do to,Irre 9a t00�blf Borrower: Kent Downtown Public Market Development Lender: SouthUA �9 aC�y Su skness Banking Authority 655 W Smo Street 206 Railroad Avenue North Kent,WA 99032 Kent,WA 96032 Date of Note: April 27, 1999 Principal Amount: $700,000.00Bank PROMISE TO PAY. Kant Downtown Public Market Development AuthorhY(-S°rrovhr-)a°^�10 pay n ed hour National AssociationDollars ('LwmW),«order, lawful of of principal Afrommerica,the WI 27, geld ie tali Hundred Thousand i 1101100 Dollus (=7t10,000.00),together, t schedule: PAYMENT. Borrower will pay this loan In accordance with the following paymnn 4 consecutive monthly Interest payments. baghntrng June 1, 199% with Interest calculated on eh unpaid principal balances at an Interest rate of 7.125%per wunan;115 consecutive monthly principal a"Interest payments of 99 OSS.27 each,beginning October 1,1999,with Ink~calculated on the unpaid pdnc4W bahnees at an links rsN rate of 7.125%per annul and 1 principal and Interest payment of S694,11s2.f1a an May 1,20f19,wton co eN aid optiont�� balances at an interest rate of 7.125% per annual This esumptedtfinal will by for Is base and the8accrued Interest not yet payments will be made exactly as scheduled:the ealuai final PaYmco paid,together with any other unpaid amounts under tbh Note ifN retio a to annual Interest rah over a year a 3eo days. The plied interest roe for eta Note b dance.ad On a 3by g o�tha� off daby ys he P��1 b . Borrower will pay Lander multiplied by the outstanding principal telarnce,mtltipited by at Lender's address shown above or at such other place as Lwdar may designsh in writing. PREPAYMENT. - not hype agreed a by Lacer In Borrower may Bo without PesaiH all ora portion to f a nuke PaY�s order Payment ad*&". Rather,they will reduce tat phi l*W wrlfkq,relieve Borrower a Borrowers atigationcondinus bfhnoe due and may result In Borrower making fewer Psymente. psymwit when dare. (b)Borrower weeks NY DEFAULT. Borrower we be In default N any a 90 follovwtrn0 happens: (a)e«wotrio what0edue� rm.Olm I obilgedcn.c�'wd•orcondition pronyse Sons has weds a Lender.orro Borrower bit a dantpli covet«a aM» (c)Any fep « 0A contained In this Note or any agreement rested a this Nola,or In any other agreerrnent«Ioan eonows No wtlt L&Wrepresentrepresentationor War now Of at the time Statement wade or furnished to Lander by Borrower or on Ilomawwers behalf a false amtstea a property,Borrower cu co es assignment for ea made or tdl a relosivilir is Sc appointed«what Borrower under any bsnkn4lcy,or insolvency laws.•(4)Borrower Is a cred80111 itors.«any proceeding se or aese schedule.low+apreernwH at other agreemwt,whether now existing or in dol"under coy other note,security agreemwM ba hw"hw made, between Borrower and U.S. Bancorp of any dine«Yx9rea subeldisrY a U.S. Basnoor ( accounts�Lender has (9) Of Borrowers property an or In which Lender has a Nan«security interest. This Includesa germs a rib Note. (h)A material adverse Any guarantor dip or any a the other everts described In this do"aetdbn O=n with respect to coy gmuftf ea Irnd,btedraes is irnPalred• (i) change Occurs h.Sorower on.s financial conditi or lender believes tie prospect a payment or Pie Laden in good faith deems Itself insecure. LENDER'S RIGHTS. Upon default,Lender may declare the entire unpaid principal a on his Nola and all accrued unpaid Interest lrrnadishN due.wkhoul notice,and then B«rower we PAY that wnounl Upon dafwlt including teiwe a pay upon NnM maturity.Lertder.at 1h°alb^'may ateO N pertrttied under applicable lave,kw""the irtenest rah on lab Nee 6.000 percentage Points. The rnhrest rah will not exceed ea"XIMMIn rah pwrtylad by appNsabls law. Lender may hire or pry someone else a help driest 1fNs Noe a Borrower does not pay. Borrower also era pay Lander is that wnounL This Includes.subject o any limits under OPP�law,I tiler's atiomeYs'bin and Larders legal eapsraee wheel Or not Here is a low"Including sltwnsys'Ices and too expenses for bankruptcy p�InOn(inc «bra a modtiy or vacsh any,automatic court shy or i�u+eti nl. appws•and any anticipated post-judgment collection services. 9 not prohytlfhrl by applicable law.B«rower coo veil per any chat coats,It Cher Is s o all other sums provided by law. This Note has heart dsevered to Lender and accepted by Lander In the Stt1e of Washington. _ basalt.Borrower egress upon Lender's request to submit to toe jut strusd In secordsnde wi11n odMtim of the courts of line laws of Itte dw SUM of Washington.of Meet to the provisions on arbitration,this Note shall be governed by and trarstere to OF SETOFF. Borrower grants to lender a oaaracMtal security Interest In,and hereby assigns.conveys,delivers.pledgee. Larder all Borrowers right.titin and Interest in and a,Sorrower'a Soeaxts with lender may(wh era it%lubure.ex #A IRA and Keogh without NmNation all accounts held jointly with sams«e Nee and 41 accounts 86rower rosy Open law. Borrower authorizes Lander,o he extant accounts.and ail trust acchxta kx which as grant a a security Interest would be prohibited by pewnieed by applicable law, to chwge or sell all sums owing an this.Note against any and ail such a Oft ccounts, arid, at Larders option, o aanun istraNvely freeze all such accounts o allow Leni to prdtetl Lenders charge and wolf rights Provided COLLATERAL This Nob is secured by.in addition to any odes 0100aterei,an Assignment of Rents dated April 27. 1999,to Lender on red property located in King Coul Slate of Washwngon,all the forme and conditions of which are hereby roorporated and wade a pan of this Note. ARBITRATION. Lender and Borrower agree that all dbPtdsa,claims and controversies between than,wheeher indivldus,joint.Or class in wavers,arfelng from this Note or otherwise,Including without pmitaeon contract and tort disputes,shell be arbitrated pursuant to the Rules of the American Arbitration Association upon ~PwtY. No act a lake or dispose a thout any coNaNral aesecuringthis Note shah a a waiver 8f this arbitration agrewnenl this arbitration agreement. This vv:i des,w NmNaeom,obtaining hitMW O Mail of rw@Ww.or temporary restraining order;Invoking a power a$oh under any deed a trust«wongegs;alltetrnirng a writ d aeecMwN o imposition of to Artiste 99 a exwcbIng tom s retelkg b personel property.hcadinp fakIn9 or disposing a such property with«wrenout judicial Process Pursuant the ciskvUniforn right vet Code. Any disputes,chYte,«carrtrovereles concerning the lawfulness or reasonableness of any act,or exercise a any right, conceming any colateral securing this Note,including any tielm a rescind. Worm,«otherwise wnotWy any agreement rarestrtailing o the collateral OW securing his Note,shall Woo be arbitrated,provided however that nq arbWear shelf have the right«ea Power a enjoin«restrain eery act of coy party. Judgment upon any award rendered by any arb*Mw may be ereered In any court having juesai Noel h this Note shah Preckds coy pony from Iwo"equaabb relief from a court a compMerd pxisdicem• The stead,of limits" .estoppel,waiver.latches,aid ski iar docWrws which would otherwise be applicable in an action brought by a Party am be opWAM In any arbitrstien proceeding and the conarwncement of n arbitration proceed shall m be deemed he eenwncwtsnt a an action for these purposes. The Federal Arbitration Act shelf apply a this on. ing interpretation.and enforeanent of this arbitration provision. LATE CHARGE If a Pay""is 15 days or m0re Past due.Borrower will be charged a late charge of 5%Of the delinquent payment DISCLOSURE ORAL AGREEMENTS OR COMMITMENTS TO LOAN MONEY EXTEND CREDIT OR FORBEAR FROM ENFORCING REPAYMENT OF A DEBT ARE NOT ENFORCEABLE UNDER WASHIN(iTON LAW. YEAR 2000. Borrower has reviewed and assessed or will review and assess its bill °persuche and computer syshma and apes-atl0ns to address the year 200D problem'teat Is.eat campuler spplfeatlors end equlpr"'"L'x+ad by Borrower,directly o YwMee9y h Boertilgi curd pares. lop be cede to Property Perform data-senstivo functions bears,during and alt1 January 1,2000),toed based upon that review Borrower veto develop ' and irrownera a plan.Including expense estimates.to address he year 200D problem and to rennedhte any rtaterW yew 2000 Problem•and campbn . In"with respect"woo,as soon as practicable and In any event by June 30, 1999.Borrower we Pmml deliver to Lender such Information relating to this covenant as Lender requests from time to time. 04-27-1999 PROMISSORY NOTE Page 2 Loan No (Contlnued) GENERAL PROVISIONS. Lancer may dsby or ktrgo erdoreitp any of b d"or errsdn under•Mt Now wow belle IhsrR so OWN and any other Parson who signs,guarantees or andoreas tlda Nola.Io de same slowed by low,wMre peeMdaNld,danarrd M pilr"K Pal and rrollce d dishonor. Upon any cftsrtg*In Ins tame d the Not*,and ulnas odo abs sapsNly ateted In waft no pent who sloe Oft Nos,wheler a maker, jwrenlar,acco m odslon maker or wxbrsar,ahal be relassed from ld ty. Al such parUN agree tltd Lander may maw or*rdend(epsesdly and x or of tIna►ft kan,or raises*any parry or guerardor or col•Ie*or bleak,el to tvals ua e upon or pwbd UmWs suavity Interest In ft:olS> lake any other aclon deemed necessary by Lender witlW the consent of or nodia to anycrl*. Al such partlss abo ages Ihet Lender mey ova loan without the consent of or notice to anyone otter than Me Party with whore ft nrod1, ion is made. PRIOR TO SIGNING THIS NOTE,BORROWER READ AND UNDERSTOOD ALL THE PROVISIONS OF THIS NOTE. BORROWER AGREES TO THE TERMS OF THE NOTE AND ACKNOWLEDGES RECEIPT OF A COMPLETED COPY OF THE NOTE BORROWER: Kent Do;,?XF,uboc Markel Development AuthoHty ByCOP By an ch, o Mont Richard W.Lackey.Soeffl 01sonviaeraealnr*r LENDER: U.S.Bank Nat bms Iatlon ay: Authorised O . Rw.NuWv. t,Atam tmQ IMo.ua.►et•T.ra ql»vr. Iwl 1 reties«wwww,Via M��wu. 1Lr navy 7 r t r COMMERCIAL GUARANTY Principal' Loan Date to Loan o Co at�C Aaeorrfnt Off err initials ;:'FAI00 References In the shaded area ere for L"Oes use and do not amlt the of We document b ban or item. S. Borrower: Kent Downtown Public Market Development Lender: South King�National Business Banking Authority 655 W Smith Swat 205 Railroad Avenue North Kent,WA 96= Kent.WA ON32 Guarantor: city of Kent 220 4th Avenue South Ksnl,WA 98032 AMOUNT OF GUARANTY. The amount of this Guaranty is Unlimited. of Kent ('Gtrarantof') fbsolrtsly and unconditionally copenNUING UNLIMITED GUARANTY. For geed and valuable oenldetNbrh, City guarantees and promises to pay to U.S.Bank National Association('Lander')or Ina order.b Au lthority t Ow �to Lander SWISS the farAmerica,m the s hmmmeIness(as that term Is defined below)atMa Kent Dowm Publlo Market Development and conditions set forth In this Guaranty. Under this Guaranty,the If My of Guarantor Is unlimited and the obligations of Guarantor are continuing. DEFINITIONS. The following words shall have the following"camps when used In this Guaranty: Borrower. The word'80frowar means Kent Downtown Public Market Developrt+ent Authority. Guarantor. The word"Guarantor*means City of Kent Guaranty. The word'Guaranty'means Oft Guaranty made by Guarantor for the benefit of Lender dead Apt!27,tfle9. Indebtedness. The word'Indebtedness'is used n fte most oomprshsrse"e sensor and rnew and Includes any and at of Borrower's uwmkios. obligations,debts,and kdebtedrass to Lender,norm exietkg or hersinshef incurred or created,Including,withotR WrAMbn.aN tow,advances' interest,cash,debts,overdraft Indebtedness, card indebtedness.boa obligations,other abm'IM'N r,ON tabNtss o BOffOwwar,a any of them,and any present or future ludgmenu against ftonowev,or any of them:and whether any such lndewednees a wonowof r t incurrod, due or not due, absolute or OWAVeM.liquidated or utguidood, determined or und@Mmtktsd:vrMtlee Borrdwa nay be lfable khdividually or phtly with othd a.a prkn rtly or serondargr,tx es ttt+arsntor or stray;wmhathar recovery an may m be or may become band or tranfarceabitu opi at Borrower for any rum whatsoever,and whether ON indebtedness arias Mom trwac0ons which may be voidable on account of infancy,hsanity,urea vine,or of orwise. Lendar. The word'Lender"means U.S.Banc NatfarW Association,its suooesI1=and assigns. credit agresnanla, ban r Related Documents. The words 'Related Doax security F a deatls of tna6 and t Wn"m off �kabl .m—.agniern nts and a9iesmsnts.arwiforanantel oWeenanle.guafeniss. dactxreMs,whether now or hersalNr eruslkg.executed In connection with tlw Indebtedness. ng as this Guaranty remains In twos. NATURE OF GUARANTY. Guarantor's aablfaY erhdar this Gwraty stall be n mant when 'whether d maturity ar safer by resaan d acceleration a Gwfarhbr Intends b gwranles at sty tirhes tlhe petownce and prompt Day otherwise,o all i dabtedrtas. Accordingly.no payments made upon the i emblodneos wit discharge or dimiteh ea aanew+ig kabasY°f Guarantor in contraction with any remaining poAlons of the Indebtedness Indebtedss or any 012110 inkolodness which subsequently arises or a therselter Inured or cdrtractod. Any married person who story t*Gtar"hereby asp f aaN'Wham that recourse under 0*aparnelt moy be had against both his or her separate property and community property,whether now ovrned or harm"acquired cagpeffinc Lender without the 01 ttoURATION OF GGarahbr or Borrower.bo and continue in kart force until all l eRANTY. This Guaranty we take affect when received d as khctwW or oorwa�oled bowsreceipt_fob el by of any noLando �tce of e , have been P011011 od in lug. 0 revocation shah have been key rev art is Guaranty.11y tied atlafiednto and aN do so in wfkk er obitifficne of Guarantor under this Gusainly GLwwdors wntwn reotar W revocation must bebe ria�iMd to fare. I Guaa *11 ale al to rwoke OtisofLen Guarantor 81110 mat such ti Written revocation o Oft Lawler,by oetllted met.at Ill sddnsa of Lender Natsd above or studh other glade a Lender mat designate wtttnp. Guaranty we apply only to advances or new kdsbW*wm cm"alter aoaW reco"by Lsldw of Gwrsrdoes wrtNn nvoeatlon. For tfa pexpose and without Imitation,to farm new kdabtedfness'does not kultdo kxMbMOIM which at Via lims of notice of desermined or due. limb Guaranty M vGmWn�b bWhd� r3w �aM wxWo r ned or not due and which later becomes absolute,Mquldatet. Indeb ednese incurred by Borrower or commiltsd by Lefler puler to receipt 01 Guarantor's written nonce of feveeetiah, itoludig any extensions, rwwA*S,substitution or modilicatbns o to indsbtedn ess. Aar re owels,exaraiors,sutndl+tans.and modlicatlans of the ktdsbMdrass Wanted after Guarankr's revocation,are contemplated under this Guee*WA spaalloaty wN not be coresidarad b be new lndebexins". mardless of I~$ shelf bind the esurte of Guarantor as to Indebtedness created both Belo Brand alforages executor or .ler.go death or kwapoety o Guaranwr. teOPPsOwdOw may mnate Ina Guaranty actual coo saro nor s death Guuardortort9ght have wnGraus it surge Nleel Raises*dy notice of 11110 ng afthalor or other IsW11 ny other gusionfor forms steon of any other guaranty of the Indebtedness shelf not affect to tWrNly of Gearw W under oft Gam• A Moro n0 by Lender from any one or more Gueranbn shelf not aaect Ill Qebtay of any rwktig Guera INS under ttds Gwfaty. it Is ehtwIpsMd � may rrid�lons In aggregate amount of Indebtedness covered by this fivararNy,aM it Is spodn" acknowledged and Wow to written o �Maf Guaranty by Guerartor shall not constitute a the amount of Indebtedness.even to zero dollars(tI0^PriorGuarantor and Guarantor's Mks, dollars and aaslgns so long as any of the termination of this Guaranty. This Guaranty Is fain-- 9 upon guaranteed Indebtedness ranothe unpaid and even though tho Indebtedness guaranteed may from time to time be zero dollars($0 00) or GUARANTOR'S AUTHORIZATION TO LENDER. Guarantor andhadzes Leda, either helors or Stier any revocationoaa w sat forth ithout notice a make denand and without Masoning Guarantor's liability under this Guaranty,from time to area (a)prior one or more sddltkmW secured or unsecured loans to Borrower,to Mae equipment or other goods to Borrowerone or . or teda d additlonal'aodlt to Borrower, (b)to alter.eomprenlee,renew,extend,separsle, or odnetwiss aharhga payment or other tams of the Indebtedness or any part of the Indabledness,including Increases and eecreaas of the rate of th eesl on the Indebtedness;extensions may be repeated and nay be for bngar than she original loan term: (c)to take and hold security far the payment of this Guaranty or the Indebtedness, w and exchanga,anfor ,waive,subordinate,fall or tteelda not to psrloot,and release any such security. with or without the substitution of now colateal. (d)to ralsasa.subslbMe,ogroo no to sue,or deal with any one or more of Borrower's sureties.endorsers.or other guarantors on any to or In any niennOr Lender may ehooss; (s)lo determiner how.when and what application of payments and crests shall be mace on the kdsbtednser. It)to apply such security and dkeat the order or manner of saw thereof, Including without 0milsuon,any non)udida ad*permitted by the terma of the controlling security agreement or dead of trust,as Lefler In lls discretion may dfknvW u; (9)to NO.transfer.2ss19n.or grant participation*In all or any pall Of the Indebtedness;and (h)to assign or transfer this Guaranty In whole or In pact U N any kind have be mall to Guarantor which would IMt or query y a way Oa fors of Guaranty; (b) of en Y representations Its executed at Borrower's request and no a the request of Larder. (c)Guarantor hes has power.right and authority b WW into the Guaranty: (d)the provisions,of e"Guaranty do root conflict with or result in a del"under any apearraM or otar iralruxnent bid, upon Guarantor and do not resin in a violation of any law,reputation, e or court decree order applicable b r:GUW (a)Guarantor has not and will not vrftbut the prior written consent at La up sea,lease.assign, umber.hypothecate.transfer.or otheM os se dispose Of as or substantially all d Guarantor's sssaM.a any iMeest"main: (9 orh encumber, Lander's request.Guaarsor will provide to Lender*w cW and oredit Igo goof don in form a ceptobts b Lender,and at such financial Wornration which currently has been.and W inure IkhancW INomatan which we be presided b Condor a and hhNli be true and ccaect n elf areal respects and fairy present the IkwcW condition o GuareMor ss of the does the financial IntOmmlion Is Pfovlded (0)no mate W adverse change has occurred in Guw&nW$financial condition since On data of the moo recent financial satsmeMs provided b Leda and no evert Ores o W A ton wwt"c may tic _*I*&&wally affect Guarento s fkanciti condition: (h)no tt0ta M chin.kwestbstcn.adnatlekatvs preaMdi+O or aMW ae (khdudin9 those for unpaid taxes)sgenst Gumantor Is perditg or treobnsd: (1)Lender has Trade no represonabon to Guarantor as to the cmftvor Wms of Bonower,and N Guarantor has established adatgeaa mans of Obtaining from Borrower an a continuing basis Igo Tian regarding Borrower's financial condition. Guarantor agrees to keep adequately inbmhed from such means of any facts,everts,or circuffwumces which-ghi in any way affect Guarantor's risks under this Guaranty.and Guarantor katar&grass that,absem a request for nbnrration.Lender shall have no obligation to disclose to Guarantor any nkxmstion or documents acquired by Lefler in the course of its relationship with Borrower. GUARANTOR'S WAIVERS. Except as prohibited by applicabla law.Guarantor waives any right to require Lender (a)to continue lending moray or to extend otter credit to Borrower (b)to make any Pf Is sphl,protosl,demand,or notice of any kind.including notice of any nonpayment of the Indebtedness or of any nonpayment feWed b any colfsarak or notice of any-doll or nonscllon an the pan of Bw wsf,Lender.any surety.anAorear, or other guarantor in correction with Ill indebtedness or In correction wish the creation of new or additional bans or obligations: (c)to root for nav nt or to oroceed directly or at once against any person.krciuding Borrow. or any other guarantor: (d)to proceed directly against Of exhaust any 04-27-1999 COMMERCIAL GUARANTY Page 2 Loan No (Continued) ,,onateral held by Lender from Borrower,any other guarantor.or any other person; (e)to pursue any other nerdy within Lender's power,or (f)to commit any act or omWfon of any kind,or at any time,with respect to arty matter whatsoever. tI now or hereafter (a)Borrower shell be or become insolvent.and (b)the Indsbtedne s Shall not at all sans urd paid be W secured by collateral fledged kv Borrower,Guarantor hereby forever waives and rogngtthMs in favor of Lender and Borrower.and tMir respective summura,any Balm or right arrant Guarantor may Crow have or hereafter have or acquire against Borrow« by subrogation or coww".as that at no time shelf 3uar,�or became a'creditor'of Borrower within the tnoanig of 11 U.S.C.sectors 547(b),or any successor provision of the Federal bankruptcy ores. guarantor also waives any and at rights or defenses arsing by reason of (a)any'ona actor'or'an$-deftWcY'law or any older few which may .,revert Lander from bringing any action.Including a claim for dolicksy,against Guarantor,below or char Loosits s OeraxlxMpaMMMt o►on ifil horn of any foreclosureint selim. er Judcwly at by exercise of a power of sass: (b)any.I cdo,of row"as by Lender whkh ant-y or etlnarwls adverse attects Guerarna's subrogation rights or Guarantors rights to proceed against Borrower for reimbursement,Including vo&M Antiltolon,any loss of rights Guarantor may suffer by reason of any law tlmting.qualiying.or dbdargig the Indebtedness: (c)any du bitty or aster defense of Borrower,of any other guarantor,or of any other person.or by reason of the cessation of Borrower's liab+ily from any Cartse wlhabcever,odor Mart pay-w In fun n too tender,of Me Indebtedness: (d)any right to claim discharge of to Indebtedness on one basis of unAnOW 6 gMnot of any catatersl for the indebtedness: (a)any statute of IYritalions.if at any Ilme any action or suit brought by Lender against Guarantor is Comrnertoad two Is orfslardng Indebtedness of Borrower to Lender which Is not barred by any applicable olabfe of limitations;or M any delanass given b gwadora at taw or in equity other than actual payment and performance of the Indebtedness. If payment b made by Borrower,wisher voluntarily or otherwise.or by any third party,on tha Indebtedness and thereafter Larder is forced to remil the amount of that payment to Sonowwers trustee In bw*nptcy or to any similar person under any federal or state bankruptcy law or law for the relief of debtors,the Indebtedness shall be considered unpaid for the purpose of enforcement of this Guaranty. 3118ranror further waives and agrees not to assort or claim at any time any deducticns to the amount guaranteed under tihb Guaranty for any claim of setoff, couterclain, counter demand, recoupnent or similar right, whether such claim, demand or right may be asserted by to Borrower, the Guarantor,or both. GUARANTOR'S UNDERSTANDING WITH RESPECT TO WAIVERS. Guarantor warrants and agrees that each of the welves set forth above is mode .with Guarantors full knowledge of its significance and conseq harms and tat,under the circutatanon,thte vrakrert are reaaeraa.. and not contrary to public Policy or low. If any such waiver Is detennii to be contrary to arty applicable law or public policy.such wall ar shah be effective only to the axtent Permitted by few or public policy. LENDER'S RIGHT OF SETOFF. In addition to at tens upon mid rights of setoff against to moneys,sectLr n or other property of Guarantor given to ender by low, Larder shelf have, with respect to Guarantors obligations to Lender under eta Guan only and b t e eawt pertrated by law,a :onuacUuf security I dos In and a right of setoff against and Guarantor hereby assigns,conveys,delivers.pief in,end hoteliers to Lander all of auaronlor's right,We and interest In and to.all deposits.moneys.seeurkin and other property of Guara nbr raw or husneMbr in to possession of or on deposit with Lender, whether hold In a general or special account or deposit wlhodw held Jointly with someone dos,or whether held for afekesping or otherwise,excluding however all IRA.Keogh,and trust accounts. Every such security Interest and right of seloll may be exercesed - •ntW dermid upon or notice to Guarantor. No security interest or right of selofl shelf be downed to hew been waived by any so or conduct on the part of Lender or by any neglect to exercise such right of setoff or to enforce such security Interaskor by any delay in so doing. Every right of stldf and security interest shall continue In lull force and effect until such right of setoff or security Interest Is Specifically waived or released by an instrument in writing executed by Lender. SUBORDINATION OF BORROWER'S DEBTS TO GUARANTOR. Guarantor agrees that to Mdabtedrmw of Bariower b Lander, wholher now 9xlatrg cr hmsmhw ao*W.shag be prior to any claim tat Guarantor may now law or hersaher acquire agakw Bartowsr,mMaatner or ria Borrowrer ,9eomes insolvent. Guarantor hereby*Was*Subordinates any claim Guarantor may haw against Borrower upso any motion whe"wer,to any -'atm that tendw may now or heteelar have against Borrower. In the evert of Insolvency and coesquael Ighfdation of lho+Weis of Wrowei ;rough bw*npioy,by an aasigrnamt for the benefit of creditors.by voluntary fiqufdation,or otherwise,the Seattle of Barrowar applicable to the payment of the claims of both Lender and Guarantor shelf be paid to Lender and shag be first applied by Lander to to Inesbtedlhese Of Borrower to _ender traitor does hereby assign I*Lender all claims hi which it May have gai Inor acquire against Sorrows or sod any allows or tnstee trait Borrower;provided however.that such assign merit Shall be effective only for the purpose of assuring to Lender fug pay.xx in legal ,rder Indebtedness. If Larder so requests,any notes or craft sgrsemuts now or hwo0w evidencing any debtor a ctMpagors of Borrower to 3usf~Stall be marked with a legs d that the same are sutbjsal to this Guaranty sM shag be delivered to Lender. Gwontor agrees,and Lender Iereby is sulhofted.In the name of Guarantor,from Ilene to time to execute and Be finiricing statements and cordimation stakinwts and 10 execute such other docunenb and to take such otter actions as Lender deems necessary or appropriate to parted preserve and anloree is rights under this 3uwanty. ,11SCELLANEOUS PROVISIONS. The following miscellareap provisions are open of this Guaranty: Amendments. This Guaranty.together with writ Rotated Dochrnio ts,.consfaues to entire understanding and agreement of Me p artas as to to matters met forth in its Gus". No alteration a or amendment to tfa t)esranty shag be flowe unless given it writing and signed by to party or parMes sought to bs charged or load by the ateradon or one dm w* Applicable Law. This Guaranty has beer,delivered to Lender and accepted by Larder in to sate of Washington. If than is a laasu,I.Guarantor agrees upon Lenders request to submit to the Jurisdiction of the courts of fig County,Sate of Wafhiglon. SLOW to to provision on arbitration.this Guaranty Shag be governed by and construed In accordance with the laws of to State of Washington. Arbitration. Latufar and Guarantor agree that all disputes,clabns and•cerrtrove►ses between tint,whether IndlWdual,Joint or class In nature,arising from this Guaranty or otherwlse,Including without Ilmpatlon contract and tort disputes,shall be arbitrated pursuant to the Rulas of the AMarlm Arbitration Assot:letlon,upon request of attor party. No act to take or dispose of any Collateral shelf constitute a waiver of Mtb arbitration agreed I or be prohibited by the arbitration agreement. This includes.without W"b#on.obtaining iiunctive refill or a temporary restraining order Invoking a power of sole under any reed of trust or mortgage;oble rrrg a writ of atodwwo or irposilbn of a receiver:or exercising any rights rotating to persorol property, including taking or disposing of such property with or w0out judicial preeess pursuant to Article 9 01 the Uniform Commercial Code. Any dispulee,claims.or controversies concemitg the lawfulness or reaaabiwoss of any act.or exercise of any right.concerning any Collateral.incla:16 any Cain to rescind,reform.a vMerwiss nnod ly any ag owimt retafirg to the COIIMW;ol,slag also be arbitrated,provided however that no arbitrator shelf have the right or the power to eryoin or restrain any ad of any party. Judgment upon any award tendered by any arbitrator MIRY be entered in any court having jurisdiction. Nothing in tits Guaranty shaft preclude any Party from Seoldng Squiteble relief from a Court Of competent jurbdcton. The salute of lineations,estoppel.waiver.Inches,ord minftar dactrios which would otherwise be applicable in an action brought by a party shelf be applicable in any arbitration prccoo ft,and the commencement of an arbitration procesdig shall be deemed the commencement of an action for Vase purposes. The Federal Arbitration Act shaft apply to Mo construction,interpretation,and enforcement of ids arbitration Provision. Attorneys'Fees;Expenses. Guarantor agrees to pay upon demand all of Lender's costs and expense.inAdig aaomays'lees and Lenders Ie901 expenses,Incurred in connection with the anfinesment of its Guaranty. Lender may pay someone else to hell ertorce v*Guaranty.and Guarantor shall pay to costs and expenses of such enforcement Comb and expenses include Landers attorneys'less and legal expenses whether or not Mare is a awsuit including sMarrwys'fees and legal expenses for bw*r pley proceedings(and Ire'-d cools to muddy or vacaa any automatic say or 11*mlion),appeals,and any anticipated post-judgment collection services. Guarartor also Shia pay am court costs aril such addtonol lees as may be directed by the court. Notices. AN noaces required to be given by either party to to eter udder this Guaranty shelf to in writ ft may be serf by aalacsinie(urfess otherwise required by law),and,except for revocation restless by Guarantor.shag be effective when actually dsftvered or when deposited with a natbnsfty recognized ovemlght courler.or when deposited in the United States mom,IIW class postage prepaid,addteeefid to on party to whom the notice Is to be give,at this address shown above or to such star addresses as ether Party may doigrbte to the other in waiting. AN revocation rlatlees by Guarantor shag be in writing and shall be effective only upon dewery to Lender as prorfded above In the ser& filled 'D"-'TfON OF GUARANTY.- If there is more than one Guarantor,notice to any Guarantor we constitute notice to sit Guarantors. For notice per Guarantor agrees to keep Lender informed at all times of Guarantors current address. in ft u re Ion. In all where the Is more insn than one Borrower or Guarantor.than of words used Oft Guaranty in Mo gufar shaft be de an behave been used In the pgaal where Me context and construction so require:and where Mare Is more than ors Bomowu in in this Guaranty or wean this Guaranty is executed by more then one Guarenior,the words'Borrower and-Guwww respectively or mean an h aft d any ens or more of them. The wards'Guarantor,''Borrower.'and'Larder•Include the nets,successors.aealpre,anof and sarh ofolsreee of each of them. Caption head"in oils Guaranty are for convsr*me purposes only and we not to be used to nterpret or deMa Mo prorbions of its Guaranty. If a court d competent jurisdiction lids any provision of fhb Guaranty to be iwagd or unwfineeobie as to eny Person or dreurretarnee. such finding shah not render that provision it or uenforceabe as to any other persons m ciehxnslances.and all in all other respects shall remora ,slid and enforceable. If any ons or more of Borrower or Gus cuffs are corporations �d ifs Guaranty Inquire rats the partnerships.t ls riot necessary for Lender to powers of Borrower or Guarantor or of the otk:ete,dkeclot .paters.or agents aatinp or purporting to act on their behalf,and arty Indebtedness made or created In reliance upon the professed exercise of such powers shrill be gwr"awl under this Guaranty. Waiver. Lrrnrinr chllt nM ho Nna,.,,,.,r......, ..._..._a........_,.,_ 04-27-1999 COMMERCIAL GUARANTY Page 3 Loan No (Continued) No dslsy or omission an ar put of La dw In axeretsatp wri right sw opma+•as a waiver of such or oars riptA. A waiver by LwWer of a provision of mis Gum"shall not voidice or oamukdo a weiwr of LWKWS right oarrwiae to d$rrW any$rid oarnpiwce with art provision or arty oltw Provision of this Guaranty. No prior*OWN by LsrWsr.nor arty MISS of d@Wft tratween LWOW and GaararAor.WW corrstitwe a waiver of any of I.~s rights at of any of Guuaraors ol>Ypatlarrs as W May bAurs Vanadlorr. Wlrnewr rho conem Of L$Wsr is tsquwsd wxW such Guaranty.asnquaired and h uu such cent byoment may be Ww W or w��taeW in of L�iraNro 10 srArsequent instances EACH UNDERSIGNED GUARANTOR ACKNOWLEDGES HAVING READ ALL THE PROVISIONS OF THIS GUARANTY AND AGREES TO ITS TERMS. IN ADDITION,EACH GUARANTOR UIiDERSTANt THAT THO GUARANTY IS EFFECTIVE UPON GUARANTOR'S EXECUTION AND DELRY OF THIS GUARANTY TO LENDER AND THAT THE GUARANTY WILL CONTINUE UNTIL TEfRMINATED IN THE MANNER SET FORTH TYE IN THE SECTION TITLED'DURATION OF GUARANTY.' NO FORMAL ACCEPTANCE BY LENDER IS NECESSARY TO MAKE THIS GUARANTY EFFECTIVE. THIS GUARANTY IS DATED APRIL 27.1999. GUARANTOR: Cfly of K By ' J, , Adm Into LEN U.S.Bank Assoetatlon By: Aulfiotls (flea PhaL RK U.a.Pat t T.Y.01f»Vr.1100 kt rsM CFl Prof .Ye.N pnM ws«wQ IMIAiaD KfNTUN CILM4 1 r r f V� NLtP^ TYPE FORM-[FAN ERROR IS MADE,CORREC" '_L COPIES TM.UOC•I FWNCINO STATEMENT ;mad for wk. AMW to Me WASHINGTON UNIFORM COMMERCIAL CODE,aMp .A.a RCW to pedax a..aary YIle,aa Inrr b. isne 1..n.I11W.rrerf.. F%A9F..;$12.00 1. OESTOR(a) D.uer 1 i FOR OFFICE USE ONLY-DO NOT WRITE IN THIS BOX ►ERSON&Mu.W wrd.Iwn..W adds...) SSN: ❑ WSINESS pow WNI.W8 M Nw MW&O eu) FEW: 91-1 91 3 21 4 Ker rtown Public Market Davelopmant D.Otor2 Au'�.,,/ 83W. 200'Gbvod Avenue North FEft Ken;WA 99(W TRADE NAME.D"A" 2.SECURED PMTYOES)ywm ak wet...) !. )a SECURED PARTY093)r.dplkabM ywneaM ) r U.S.Balk National Association South King County Business Banking US W Smith Strest Kent,WA 99032 L S CNECKONLYIFAPIWAIMA:Owd.Millar.rTPAN$M fMUrR1NAMPAMCTSCFMLATULM smkwuucMnww$LI ❑OMrrr.T-Wvmptmky ® PmhmwcarY.Yaw.NaSwand L NUMMOPACCRONALWEMPO19WEQ u 7.TNN F1 WOM ITATEAIENTmnM rr r-- , aleaaat~&deraWe lax11'err.lt.►eneeder.) All of DabWa now owned and hw"W ao*&Id:(a) flxtlrree and egWpennt~ere now or ha ksr eN Iocabd on or used in 00rdOCOM with ON real property dembsd as: Lob;Baiou 1% irtelu M Block 10.Washbglon On"hap-IRBI E CompWW*Firm Addition to Kent,according to the plat tiareof,recorded In Volume S of Plat,Page 67,In Kkg 0ou nly,lMbhMpton;WKWl tho Southerly 15 feet of Bald Lot 0;TOGETHER WITH an EuMem ent for' - and green OW the South 0 NO of Lot 13,Blesk 10 of said Plat('Properly')or any DuskNss OPWO ed thereon)(b)right, 0 apd kd~In,to and under ail existing and future teems Inswing but not lhv*W to that Income In that certain lease dated between Kent Downtown Public Market Devsbpnent Authority and Kent Downtown Partnership all of any part of the Property;(a)accounts,general Intangibles,inetrarrnonb,ranks,revenues,Incatne,Nestles,royalties,proflts and- COW.bsrnettts arlsing from or relating to the Property or any business operated thereon; (d) accessions, additions, replacements and subodkdkm s relating to any of the foregoing;(a)all records of any kind relating to any of the foregoing;and(f)all proceeds retaking to any of the foregoing.' aREmaWApp101MkD0adENTooPYTC Own.agaWMn) L FLAWF M: U.S.Bank National Association D�A f aROE r Commercial Loan Service West P.O.BOOT ONO P.O.Box SM OLYMPUI,WA 9NW4M Portland,OR 97220-LWS N MAKE CHI CKS PAYABLE TO THE DEPARTM&fT OF LICENSING L J lo. FOR OFFICE USE ONLY:es�To 11, rarerrlMd..We.d below.rft sawraM wry be WWW brrraaxrW PW wAMW WIII6OMlmft"@arak rr apPtarewbeL eagl.M me If enr.NOeals ralso" ' L❑axeedn.xe(ea r a.eaabr br..a b ar0wwf4dCd.n Arlen 11,M a 00,I Me dim ace orwm dlarf.Nerrarwee)al- 102.eWLix III raeaC.nt"lowle r anrese�LraLrNO NUeNER IL❑MO..er.III rr�coe.laa dmftd stew inW".r.sally YII.eM w MA.elrl palgM. 2 c. ege.aM Mee l aNQ FIL ING WHERE FLED 4l.e.n.rMr..rdflw riaaL l.ewpl.I.a4w wene.tewn & 0.8 alerMr.w a.flfxlee a n.s,merit.aearyaM.sasses all.d.blsf(e),(o.a9l.b ages�M rnw 1, FORMER%AME OF DEBTORS) 2.D®Tdn NAMEM)ANO e101NATUAII : 10. COMPLEMCLNMPAR NAOMANDSIONA1UMMAREREOUSIF.DPKIXIIMSSM TEDKent Downtown Pubk Mae�*'Devolopmsnt Authority: U.S.Bank dedonall Association De/TOR(e) 1. TYra RARTYOEa)ASrt jQsrAsox3on4. OF Vir, aONA (S)OF SECURED PARTYAES). OF DEaTOR(S) aDNATURISM)OF SECURED PARTY(IES} ;OrY 1•FLING OFFICE FORM APPROVED FOR USE W TNk STATE OF WASHaIOTOMWAM WASHMTONUC61 AG'-EMENT TO PROVIDE INSU '4NCE Principal Loan Date Maturity Loan No Call I Collateral Account Officer Initials $700 000.40 04.27-1899 05-01.2008 • 160 0508706230 EA100 References in the s:aded area are for Lenders use Oily and oo not iarA:he appueabrlrly c}this Coo xna<t io any wrucWer ban or hem Borrower: Kant Downtown Public Market Development Lander: U.S.Bank National ion South King County Busines s Banking Authority 655 W Smith Street 200 Railroad Avenue North Kent,WA 96032 Kent,WA 950;i2 INSURANCE REQUIREMENTS. Kent Downtown Public Marker DWAMPhenl AulhodlY(-Granbr')understands that ishrafrce coveraW b required in with the axt NWQ of a loan or tire pmvkffnp of cow ftrtartel rm al accoadalbns to Grareor by Lender. These requfrensnts are set bin in tiu security documents. The following minimum Insurance cov+rapes must be provided an tiu fONowing described callaid ef(the TAO& &IT Collateral: All of Debtor's now owned and hereafter acquired:(a)funribbhgs,fixtures and equipment which am now or hereafter located on err used in connection with the real property described as: The NE OLmW,Section 24,Township 22.Range 04 Lots 6 through 12 of Block 16 of Washington Central Improvement Centpeny's Fkst Addition Sltuale In Kent.WatlNnglon(-Property')or any business operated thereon;(b)right,title and prep and order all existing and fubui laeee Dewding but not limited to t Income specified In that certain lease dated betwom Kent Downtown Public Markel Development Authority and Kent Downtown Partnership covering all of any part of on Property; (c) accounts, general Intangibles, Instruments, rents, revenues,Income,Issues,royalties,profits and and whits arising relating r rany of to thetin t foregoproperty per;y or(�any basiness of any thereon; (d)accessions,additions,replacements relating to any of the foregoing;and(0 all proceeds relating to any of the foregoing. Type. AN risks,including fire.theft and liability. Amount. Full Insurable value. Basis. Replacernant value. Endorsements. Lender's loss payable do a with stipulation that coverage will not be canceled or diminished without a minim mr of ten (10)days'prior written notice to Larder. INSURANCE COMPANY. Grantor may obtain istearhbe from any fnarrance Oer++Dany Grantor 1roY cf10Oae that is reasonably acceptable b Lander. Grantor urdentards that credit may not be dente0 surely became Inrerrance was not purchased through Lender. INSURANCE MAILING ADDRESS. AN documents and Otim malarlsh relating to insurance for ttls low shouid be mailed.delivered Or dkected to the kAowing address: U.S.Bank National Association Commercial Loan Service West P.O.Box 530E ` r Portland,OR 97226.5308 FAILURE TO PROVIDE INSURANCE.Grants agrees b deliver to Lander,ten(10)days from On� tiut N dranlor inch evidence of this Agreeirmil. a�a^tr Ysnaance as provided above,with an effective day of April 27,1996,or earlier. Grantor acknowMdOee as h N»fob 1 P O Any required Irotrartce or fats b cdnlh ie such haurance In force,Larder may do so at Gm*Ws 00inae provided document. TM cost of any such insurance,at tin option of Larder.shin be payable an demand a alnell be added b gins indsblednHE I s provided inVine security dor:rrrMrht. GRANTOR ACKNOWLEDGES THAT IF LENDER SO PURCHASES ANY SUCH 6NSURANCE. THE pf�URANCE WILL PROVIDE LIMITED PROTECTION AGAINST PHYSICAL DAMAGE TO THE COLLATERAL, UP TO THE BALANCE OF THE LOAN; HOWEVER. GRANTOR'S EOUITY W THE COLLATERAL MAY NOT BE INSt1RED. IN ADDITION.THE INSURANCE MAY NOT PROVIDE ANY PUBLIC LIABILITY OR PROPERTY DAMAGE INDEMNIFICATION AND MAY NOT MEET THE REQUIREMENTS OF ANY FINANCIAL.RESPONSIBILITYauthorizes Lander to Pcvift 10 any LAWS' AUTHORIZATION. For purposes of Insurance coverage a whom Cd Grantor CoMaNry tine loan or other financial accommodations,or both Insurancecluding arty agent or compwry)ea k ormallon Lander deems apprapria " GRANTOR ACKNOWLEDGES HAVING READ ALL THE PROVISIONS OF THIS AGREEMENT TO PROVIDE INSURANCE AND AGREES TO ITS TERMS. THIS AGREEMENT IS DATED APRIL 27,1999. GRANTOR: Kent Dovjhtgwn Public Market lopme nt Au ty .. K� /�,- B Steph s Klappenbaeln, (dent By Richard W.Lackey,Board t>wereteryrtreaerrer FOR LENDER USE ONLY _ INSURANCE VERIFICATION PHONE DATE: ' — AGENTS NAME: G INSURANCE COMPANY:^Xi//�'a POLICY NUMBER: EFFECTIVE DATES: COMMENTS: LASER PRO.nine.U.S.Pat&T.AL Oa..Y*r.2.2eb lo)n09e CFI ProSankw.tie.M d"urwmd.IwAa10 F32e K8 I.LN CCOVLI AG'' =EMENT TO PROVIDE INS[' 'ANCL Principal -Loan'Date-- to oan N Csil collateral Account I Officer Initials 00 000.00 04-27-191 05-01.2M" "`160 06W06230 ': EAI00 References in the shaded area are for Lender's use only and do not limit the applicability of this document to any particular ban or item. War: Kent Downtown Public Market Development Lender: U.S.Bank National Association Authority South King County Business Banking 206 Railroad Avenue North 6SS W Smith Street Kent,WA 9=2 Kett.WA 98032 Grantor: City of Kent 221)Nh Avenue South Kent,WA 96032 INSURANCE REOUIREMENTS. City of Kent(*Or~)understands that insurance coverage is required In connection with the exisnding of a loan or the providing of other flrtanclal accommodations to Kent Downown PUM Market Development Authority(' orrowsr`)by Lender. The"requirements are set lodh in the seem*documents. The following mfrlkrsrtl Insurance coverages must be provided on the following described collateral (the 'Cdlawar): Collateral: Real Estate at 206 Railroad Avenue North,Kent,WA 911M �J n Type. Fire and extended coverage. ¢ Amount. Full insurable vane. AD-� y, ZXX 2 ad 7vv�0v4 Basis. Replacement value. Endorsements. Standard mortgagee's clause with stipulation that coverage wed not be cancetied or dkruluished witicuI a minknum of ten (10)days'prior written nodes to Lander,and without disclaimer of the insurer's liability for taflurs to give such notice. INSURANCE COMPANY. Grantor may obtain Insurance horn any Insurance company Grantor may choose that is reasonably acceptable to Lender. Grantor understands that credit may rat be deriled solely because Insurance was not purchased through Lender. FLOOD INSURANCE. Flood Insurance for property given as security for finis ban Is described as follows: Real Estate at 206 Railroad Avenue North,Kent,WA 911M Should the Collateral at any time be deemed to be located in an area designated by the Director of the Federal Emargerncy Manage rent Agency es a special mood hazard area and should Federal Flood Insurance covering the Collateral ever 090MIS available.Grantor agrees to obtain and maintain Federal Flood Insurance,for the full unpaid principal balance of Me ben,up to the maximum poncy dads set under Me National Flood Insurance Program,or as otherwise required,and to maintain such insurancs for the term of the ban. INSURANCE MAILING ADDRESS. AN documents and other materials relating to insurance for this loan should be mailed,delivered or directed to the tdlowkq address: U.S.Bank National Association Conarwdal Loan Service West P.O.Box S306 Pordand,OR 9722"M FAILURE TO PROVIDE MISURANCL Granby agrees to purchase and rnitsin any required Flood knsurarm willtn♦S days WMowing nodes given by Lender. Additionally,Grantor agrees to deliver to Lender.Ion(10)days from the dale of tits Agreeivmt,evidence d all sans required insurance as provided above,with an effective due of Apra 27, 1999,or mile- Granby acknowledges and agrees 00 If Oran ales to Provide any required Insurance or fails to continue such Insurance in knee,Lender may do to at Gran Ws expert" are povided In ft aPlBorble security documerk The r--u of any such ksurance,at the option d Lander.shall be payable on dell- or shall be added to the iMreelet- as provked in the security GRANTOR ACKNOWLEDGES THAT IF LENDER SO PURCHASES ANY SUCH HNjRANCE,THE W6URANCE WILL PROVIDE LIMITED ECa- ON AGAINST PHYSICAL DAMAGE TO THE COLLATERAL,UP TO THE BALANCE OF THE LOAN:HOWEVER.GRANTOR'S EOUITY IN COLLATERAL MAY NOT BE INSURED. IN ADDITION,THE INSURANCE MAY NOT PROVIDE ANY PUBLIC LIABILITY OR PROPERTY DAMAGE INDEMNIFICATION AND MAY NOT MEET THE REOUIREMENTS OF ANY FINANCIAL RESPONSIBILITY LAWS. AUTHORIZATION. For purposes of insurance coverage on the Codsteral.Grantor authorizes Larder to provide to any person(including any klsurance agent or company)all Information Lender deems appropriate.whether regarding the Catialeral,the ban or other finis 0 accom modadons,or both. GRANTOR ACKNOWLEDGES HAVING READ ALL THE PROVISIONS OF THIS AGREEMENT TO PROVIDE INSURANCE AND AGREES TO ITS TERMS. THIS AGREEMENT IS DATED APRIL 27,1999. GRANTOR: City of Kent ey r J.OrFall,Cliff A&WIslFaUk FOR LENDER USE ONLY DATE: — 9 9' INSURANCE YEWCATION PHONE:,��—lla& AGENTS NAME INSURANCE COMPANY: - POLICY NUMBER: EFFECTIVE DATES: COMMENTS: LASER PPA Rp.U.S.Pr.i T.M.ON..Vr.32116 ter)IM CFI PmSer4Wm Inc.AM Aen4 nwene4 IwM10 F9.26 KENTI.LN C&OVLI Kent City Council Meeting Date -mAJE /1 lei$ , 1999 Category Bids 1 . SUBJECT: TRAFFIC SIGNAL INTERCONNECT INSTALLATION ON KENT- KANGLEY ROAD 2 . SUMMARY STATEMENT: The bid opening for this project was held on May 12th with four bids received. The apparent low bid was submitted by Transtech Electric in the amount of $33 , 860 . The Engineer' s estimate was $76, 360 . The Public Works Director recommends that this contract be awarded to Transtech Electric . 3 . EXHIBITS: Public Works Director memorandum 4 . RECOMMENDED BY: Public Works Director (Committee, Staff, Examiner, Commission, etc . ) S . UNBUDGETED FISCAL/PERSONNEL IMPACT: NO X YES 6 . EXPENDITURE REQUIRED: $33 , 860 SOURCE OF FUNDS : R43 7 . CITY COUNCIL ACTION: 11 Councilmember moved, Councilmember![/ ,o seconded that the Traffic Signal Interconnects - Kent Kangley contract be awarded to Transtech Electric . DISCUSSION: ACTION: Council Agenda Item No. 8A DEPARTMENT OF PUBLIC WORKS May 25, 1999 TO: Mavor & City Council FROM: Don Wickstrom RE: Traffic Signal Interconnects — Kent Kangley(l 16`h to 152nd) Bid opening for this project was held on May 12, 1999 with 4 bids received. The apparent low bid was submitted by Transtech Electric in the amount of $33,860.00. The Engineer's estimate was $76,360.00. The Public Works Director recommends that this contract be awarded to Transtech Electric. Bid Summary Transtech Electric 33,860.00 Signal Electric 49,860.00 D.W. Close 73,860.00 Phantom Corp. 79,390.00 Engineer's Estimate 76,360.00 MOTION: Councilmember moves, Councilmember seconds that the Traffic Signal Interconnects — Kent ICangley(116`h to 152n1) contract be awarded to Transtech Electric. l REPORTS FROM SPECIAL COMMITTEES ......... CONTINUED COMMUNICATIONS A. EXECUTIVE SESSION l A) Labor Negotiations